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Kandiyohi County approves lease with Tepatanka Hospitality LLC for county property; rent set at $100,000
Summary
The county approved a lease with Tepatanka Hospitality LLC for a property south of the landfill with a $100,000 annual rent (quarterly payments starting April 1) and clarified move‑in payments, insurance obligations and indemnity language.
Kandiyohi County approved a lease agreement on Dec. 16, 2025, with Tepatanka Hospitality LLC for a county‑owned property south of the landfill. County administrator Kelsey Baker summarized the lease: Tepatanka proposed $100,000 a year in rent with quarterly payments beginning April 1 and a move‑in/renovation period from December through March during which the tenant performs minor updates and maintenance.
“On this property... the rent proposed to the county is $100,000 annually with quarterly payments beginning April 1,” Baker said in her presentation, adding that the lease would permit limited interior work during the December–March move‑in period provided the tenant carries out required maintenance and obtains landlord consent for alterations.
Board members sought clarity on an upfront payment listed in section 2.1.1. County attorney Shane Baker advised the language as drafted read as a lump‑sum covering that interim period; he calculated the three‑plus‑week interim payment as equivalent to $1,500 per month over the period, or a total of $5,220 for Dec. 17–Mar. 31. The board directed technical edits to make monthly intent explicit in the lease language.
Commissioners also discussed insurance and indemnification. Kelsey Baker said the county carries liability insurance for the property and the tenant would be required to carry general public‑liability coverage; county attorney Shane Baker confirmed the lease contains tenant indemnification language covering suits, damages, and personal injury connected with tenant operations.
After clarifying repairs performed since purchase and confirming that the administrator would act as landlord designee, the board voted to approve the lease with the clarified language and minor technical edits.
Next steps: staff will make the requested language corrections and finalize the lease for signatures; the tenant’s move‑in period and April 1 rent schedule will proceed per the agreement.
