Council declines immediate approval of Bigwood event‑center lease, sends options to Committee of the Whole

City of Fergus Falls council members on Feb. 2 declined to approve a proposed lease that would allow the new owner of the Country Inn & Suites to continue using front‑desk and lobby space inside the Bigwood Event Center.

The lease, presented by city staff and explained by Andrew Grama, would either let the buyer assume an existing agreement or enter a new lease on identical terms. Grama said staff prepared a new lease “with identical terms to the existing lease, to allow the hotel to keep their front desk and lobby space within the footprint of the city's event center.”

Supporters urged the council to avoid jeopardizing a pending sale. “I don't wanna see the deal go bad,” one council member said, arguing the city should not undercut a multimillion‑dollar transaction over a relatively small annual amount.

Opponents said the current arrangement likely undercompensates the city when utilities and groundskeeping are included. One council member noted that finance data show city utilities for the property roughly $45,000 and that the hotel's share—about 16% of the facility—amounts to roughly $7,200 in utility reimbursement. The same speaker recommended further study and a Committee of the Whole review to “bring this a little bit more towards a commercial lease.”

Several council members also warned that converting in‑kind services into a monetary lease could create unintended tax consequences for the facility. “If we get into a situation where we say, we're not being compensated enough and we put a number on this, you could quickly find yourself in a situation the facility becomes taxable,” a council member said, arguing the city could then face broader tax implications for the parcel.

Given those concerns and a tight closing timeline for the buyer, the council voted on the hour on competing proposals. The original resolution to approve the lease failed. The body then approved a motion to bring back the matter to the Committee of the Whole with instructions to explore alternative lease incentives and in‑kind marketing agreements that could help the event center’s operations while protecting city financial interests.

Next steps: staff will draft options for the Committee of the Whole meeting scheduled for Feb. 11; any amendments would then return to the full council for final action at the Feb. 16 meeting.

Who said what: the lease was presented by Andrew Grama (city staff). Multiple council members debated the financial assumptions; Jim Fish moved forward at points in the discussion. No formal amendment was adopted tonight; the council’s direction was procedural—return with options rather than immediate approval.