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Lyon County approves agreement for Cottonwood shop

October 24, 2012
By Deb Gau , Marshall Independent

MARSHALL - Members of the Lyon County Board approved an agreement with the city of Cottonwood to lease space for a highway shop after a special meeting Tuesday morning. The new agreement would address concerns voiced by county commissioners earlier this month.

The city of Cottonwood is working with North Star Mutual Insurance to finance a lease-purchase agreement on a building in the Cottonwood industrial park area.

The building would have room for both a municipal shop - something the city has been pursuing for some time - and a county highway shop. The county has been looking at a new shop in Cottonwood since the old shop was severely damaged in a fire early this year.

Tuesday's special meeting was called after an earlier county board meeting, when commissioners expressed concerns about some of the terms in a proposed sublease agreement with the city for one-third of the building space. Lyon County Administrator Loren Stomberg said the new proposal removed the cost of telemetry equipment for the city from the terms of the agreement.

The telemetry equipment purchase was be unrelated to the purchase of the shop building.

Stomberg said the new proposal also gave the county the opportunity to purchase an interest in its third of the shop building after the end of the lease.

"It's a complicated way to go about it," Stomberg said of the agreement.

"It's creative, though," said Commissioner Steve Ritter.

Stomberg said his main concern about the lease was its 27-year term. It's hard to tell what the county's needs for the shop space may be that far into the future, he said.

Commissioners had a positive reception of the proposal, however, and voted to approve it.

In other business, board members approved a proposed contract to lease land for a gravel pit.

The county has mined out its current gravel source, Lyon County Public Works Director Suhail Kanwar said.

Kanwar presented board members with a proposal to lease about 83 acres of land in Lyon County, located north of the current gravel mine. Kanwar said the owners of the property were willing to provide the county with gravel at a cost of 55 cents per ton and crush the gravel as well. The total cost for gravel, including crushing, would come to $2.15 a ton, Kanwar said. The county would have exclusive rights to material mined on the property, he said.

"It's quite a savings for us," Kanwar said, because the county wouldn't have to do as much work.

Kanwar said the lease would have a 20-year term, with the option to be open for review every 10 years.



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