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Council sets airport lease rates, notifies leaseholders of default and approves MnDOT grant agreements
Summary
Council adopted staff‑recommended airport lot lease rates for July 2026 and July 2027, authorized staff to notify three hangar‑lot leaseholders that they are in default and to negotiate construction agreements, and approved execution of state airport grant agreements with MnDOT.
The City Council approved a package of airport items that included setting land‑lease rates, directing default notices to three hangar‑lot lessees and approving state grant agreements.
Airport staff presented the airport commission’s recommendation to apply a two‑year Consumer Price Index rate to land‑lease rates and recommended staff’s alternative; the council ultimately adopted staff’s recommended rates for July 2026 and July 2027 after discussion about fund balances and recent runway work.
On defaults, staff said three leaseholders have not constructed required hangars within the two‑year build window and recommended sending a notice of default that would require the lessees to contact the airport manager and enter a construction agreement within 30 days; if compliance does not follow, staff said the city could terminate the lease and retake the lots. The council authorized staff to send notices and negotiate construction agreements.
The council also approved execution of state airport grant agreements with the Minnesota Department of Transportation (MnDOT) (contract numbers and resolution numbers were read into the record) to permit the city to accept grant funds previously approved in principle.
What happens next: Staff will implement the new lease rates, send default notices and negotiate construction agreements with the lessees; staff will also complete and sign MnDOT grant agreements to secure the awarded funds.
