Commissioners defer vote on five‑year lease for Codington County Health Department space

The Codington County Board of Commissioners on Dec. 30 discussed and then deferred final action on a proposed five‑year commercial lease between landlord Michael Cole and the county health department.

Michael Cole, who identified himself to the board, said he bought the building about three weeks earlier and requested a rent increase to cover higher insurance costs and rising property taxes. "In 2019, the taxes on that property was $1,951. And now to date is actually $4,003," Cole said, explaining one reason for the rent increase and the request for a five‑year contract.

County staff noted a conflict between the lease’s stated monthly due date and the county’s claims/payment schedule; staff asked that penalty language and the due date be adjusted. Commissioner Gable moved to approve the lease with an amendment to the payment due date and the five‑year term, but commissioners subsequently asked for clearer language about how the county could exercise a break or termination option if the health department outgrew the space.

Commissioners expressed concern about committing to a long term if the department’s staffing or state program changes require relocation. One commissioner asked whether a three‑year term might be more appropriate; Cole said he preferred five years to provide stability. "I would like to stick with the 5 year if I can," Cole said.

Rather than vote, the board asked the auditor and staff to prepare a new draft that (1) clarifies the monthly payment timing and any penalties, (2) spells out notice and termination/option language, and (3) be reviewed by the state's attorney before returning to the commission for final action.

Next steps: Staff will return a revised lease draft after making the agreed changes and obtaining legal review.