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Hillsdale County OKs MDHHS lease despite concerns about state cancellation clause
Summary
The Hillsdale County Board approved a renewed lease with the Michigan Department of Health and Human Services after staff confirmed an earlier addendum corrected the lease term. One commissioner objected to a clause letting the state cancel with 90 days' notice; the lease passed on a 4–1 roll-call vote.
HILLSDALE, Mich. — The Hillsdale County Board of Commissioners voted to approve a renewed lease agreement with the Michigan Department of Health and Human Services (MDHHS) after staff located a previously signed addendum that corrected the lease end date.
County facilities staff said a historical addendum altered the termination date; the draft before the board reflects that correction. "The lease the current lease we’re proposing has the correct date in it," Randy, the county facilities representative, told commissioners during the discussion.
At least one commissioner voiced a substantive objection to the agreement’s termination language. "My concern is the state of Michigan can cancel the lease at any time for any reason and give us 90 day notice," a commissioner said during debate, arguing the county should have comparable rights to terminate. County staff said the language largely mirrors previous contracts and that other financial and operational terms were improved compared with the prior agreement.
Randy also outlined the county's rental assumptions and projected revenue: the renewed lease is based on a leased area of 14,222 square feet, which county calculations show should yield roughly $92,000 above cost in the first year under the proposed rates.
Despite concerns about the asymmetry of the cancellation clause, the board approved the lease by roll call, 4–1. Commissioners who supported the lease emphasized the county will retain an occupied tenant and steady revenue for the facility, and staff described the new contract as materially better on financial terms than earlier agreements.
The board directed staff to follow up with a resolution and place the finalized lease on the consent record for official filing. The lease is effective under terms in the executed draft; staff said they would circulate the addendum and final signed documents for the county record.
