RATIFICATION OF AMENDMENT TO AIRPORT CONCESSIONAIRE AGREEMENT
The current COVID-19 pandemic has resulted in a dramatic decrease in the number of flights and passengers on both a national and local level. These decreases in turn have had a negative financial effect on the Airport’s business partners as well. At the Minot International Airport, food and beverage services are provided through a contractual agreement with Oakwells Commuter Rail (dba The Trestle Tap House). The Airport is paid by a percentage of sales, or a minimum annual guarantee (MAG), whichever is greater. By amending the agreement, the Airport is allowing Oakwells to pay a straight percentage of sales for the months of April, May, and June and temporarily abate any MAG that may be due. From July through December, Oakwells will return to paying their agreed to MAG/Sales amount. In addition, they will be required to pay back the abated amount, prorated over six-months.
1. Recommend that the City Council ratify the Mayor’s approval of an amendment to the agreement between the Airport and Oakwells allowing a temporary abatement of the Minimum Annual Guarantee (MAG).