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Hibbing approves five‑year lease with XR Events for Hibbing Speedway, city and operator to each commit $50,000
Summary
Council approved a 60‑month lease with XR Events for Hibbing Speedway with two one‑year renewal options, a move to per‑ticket rent revenue and a $50,000 minimum capital contribution from both the city and XR Events; council described the term as a long‑term commitment to support the racetrack.
City staff outlined a proposed lease and event agreement with XR Events for operation of the Hibbing Speedway and the council approved the measure on Jan. 8.
City service staff said the lease term would be 60 months (five years) with two additional one‑year renewals. Under the agreement the city and XR Events each would commit a minimum capital contribution of $50,000 toward facility improvements—structured as about $10,000 per lease year—and the rental structure would shift to a per‑ticket revenue model rather than a flat fee.
"It would be 50,000 each for both the city and for XR to put back into the facility," the city service director said, describing a change from the prior flat fee arrangement. City staff said the new structure is intended to align operator incentives with facility improvements and event revenue.
Councilors asked clarifying questions about the minimum contributions and the multi‑year commitment; the city noted an intention to seek additional outside funding to multiply the initial capital. The council voted to approve the lease and event agreement; staff will move forward with the contract and implementation details.
