In a split decision Tuesday, the Sherburne County Board of Commissioners voted, 3-2 to approve a lease agreement with the Sherburne County Agricultural (Ag) Society for the county fairgrounds site.

 

Under the agreement, the Ag Society will pay the county $1 per year for 10 years for the use of the property.

 

ble for the structural portions of the buildings, while any improvements and internal maintenance is the responsibility of the Ag Society.

 

Any repairs or improvements must have approval from the county board.

 

The lease agreement is the result of discussions between the county and the Fair Board and Ag Society that took place over the past year. With the old lease expiring, all parties involved wanted to know if and when the county intended to move the fair to the Oak Savanna in Becker, or keep it at the current site in Elk River. 

 

Members of the Fair Board and Ag Society wanted some assurances before they made any new time and monetary investments at the existing site.

 

Last November, most members of the Fairgrounds Taskforce were in favor of making some type of agreement, but were divided about the length of the lease.

 

Tuesday’s decision was also a split vote, but not because of the terms of the lease.

 

Commissioner John Riebel questioned whether the Ag Society should be named on the lease, since he felt the Fair board was actually making decisions for the Ag Society members.

 

“Now we have the Fair board actually running the Ag Society,” he said. “It just doesn’t make sense to have everything leaning on the Ag Society when it’s a non-functioning entity. It should be a functioning entity because that’s who the original lease was with.”

 

Administrator Steve Taylor said by statute, the county had to make an agreement with the Ag Society, not the Fair board.

 

“My understanding is the authority is vested in the Ag Society,” he said. “From a lease agreement standpoint we have to follow the statute. It says very specifically that it’s the Ag Society that does these kinds of things.”

 

Riebel said he had questions as to whether the Ag Society was still a legal entity.

 

“I could see the original intent was the Ag Society was supposed to be like a board of directors for the corporation, but it isn’t anymore,” he said. “That’s what worries me if we make this (agreement) with the Ag Society.”

 

County Attorney Kathleen Heaney said it was up to the Ag Society to identify how they’re going to be operational. 

 

“I think what’s happened is by default, the Fair board  is really the board for the Ag Society it’s basically merged with itself,” she said. “But if there’s a question of the legality of the entity that were entering into the lease with, then we should be placing this lease on hold and asking from the Ag Society their information as to their legal standing.”

 

Commissioner Ewald Petersen said the discussion has been going on for years. He felt it would be better to make sure before signing an agreement.

 

“I’d be inclined to table this and make them come here and tell us that they’re legal,” he said.

 

But Commissioner Bruce Anderson said it was time to move ahead.

 

“We had a lot of discussions. We hashed this thing out and did a lot of work on this,” he said. “I’d just hate to see this drag on. People want some vision and want to know where this is heading.”

 

He made a motion to approve the agreement. Commissioners Felix Schmiesing and Rache Lenard also voted in favor. Commissioners Riebel and Petersen voted against.

 

The lease can be terminated early for a number of reasons. If the Ag Society is unable to operate the fair in any year of the lease, the lease shall automatically terminate Sept. 1 of the year the fair was no held.

 

If after five years, the county gets a valid purchase agreement for economic development on the property, the county shall provide 120 days written notice of the end of the lease.

 

The lease goes into effect June 1, 2015.