Minot Aviation, also known as the “Aeroport Hobby Shoppe”, leases real estate from the Minot International Airport (MOT). The City Council elected not to renew their lease at their August 5th meeting, and the City Attorney’s Office mailed notification of the City’s election to not renew the lease to Minot Aviation and their Attorney on August 9, 2019. The lease will terminate on January 31, 2020.
On December 13, 2020, City Staff received a proposed Concurrent Use Agreement and Ground Lease from Minot Aviation and the Aeroport Hobby Shoppe’s attorney, Robert Martin. Their proposed lease agreement (Agreement) proposes the following:
The Aeroport Hobby Shoppe is added as a party to the Agreement, while the prior agreement was only between Minot Aviation and the City of Minot.
The Agreement has a base term of 12 months, and gives the Lessees options to renew on an annual basis.
Rent during the base term will be $0.40/square foot per annum. The total square footage of the Premises is 10,000 square feet, for a total of $4,000/year. Rental rates on the renewal option must be negotiated prior to each renewal.
In addition to the rental rate based upon square footage, the Aeroport Hobby Shoppe will also pay a sales commission to the City in the amount of 2% of their Gross Revenues each month.
City Staff finds these lease terms to be a reasonable and higher/better use for the property than in the past, and recommends that the City Council consider accepting these essential terms, allowing City Staff to draft an agreement memorializing these essential terms, and authorizing the Mayor to enter into a Concurrent Use Ground Agreement.
1. City Staff recommends that the City Council authorize City Staff to accept the essential terms of the contract as set forth in this memo; and
2. Direct City Staff to draft an agreement memorializing these essential terms; and
3. Pending regulatory approval, authorize the execution of a Concurrent Use Ground Agreement; and
4. Authorize the Mayor to sign any applicable documentation.