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Committee approves moving forward with updated 10-year CCRC lease language and termination protections
Summary
The county attorney and staff briefed commissioners on a proposed CCRC lease renewal; the committee approved advancing a lease that would be 10 years with one optional 10-year renewal at CCRC—s election and includes a six-month termination provision and license-loss termination triggers.
The county attorney updated the Property Management Committee on negotiations to renew the longstanding lease with CCRC. The current lease expires in June; CCRC sought a 10-year renewal with two unilateral 10-year renewal options. Staff said they had negotiated an acceptable compromise of an initial 10-year term with one optional 10-year renewal at the lessee—s election and reduced CCRC—s requested termination notice from 24 months to six months.
Members debated whether the county should retain authority to deny a renewal and whether performance standards should be built into the lease. The county attorney said the proposed language preserves an immediate-termination trigger for loss of any required license, insolvency or dissolution as well as language indemnifying the county from nursing-home operational liabilities. Staff also added more specific insurance requirements, including cyber coverage, and agreed to consult the county—s insurance office about umbrella limits.
After discussion, a motion to approve proceeding with the suggested lease language and for staff to finalize remaining legal provisions was seconded and passed on a roll call vote.
The committee approved forwarding the updated lease framework for continued negotiation and for submission to the full commission as appropriate.
