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Council flags unclear lease and tax-forfeit status of PUC building
Summary
Councilors said a long-term tenant has occupied a city PUC building while paying only utilities, but council and staff reported the one-page lease is thin, the roof leaks and mapping suggests the structure may sit on tax-forfeited land — complicating any effort to sign a formal lease or charge market rent.
Biwabik City Council members raised concerns about the status of a PUC-owned building after staff and councilors described a long-term occupant who pays utilities but not rent, a minimal one-page lease and reported roof leaks.
A council member who pulled the PUC building update said the tenant "has been using this building for 18 years" paying utilities only, and noted the written lease appeared to be a single, short page. Staff confirmed roof leaks and said the tenant has performed some maintenance work. The council asked for clarification on who is contractually responsible for repairs and whether a rent charge or a more complete lease should be pursued.
Members also said preliminary mapping and a staff review suggested the building may not sit on city-owned land. "We know it's not sitting on city land," a council member said, and staff described the parcel as potentially tax-forfeited. Councilors warned that if the property is on tax-forfeited land that raises legal and administrative hurdles to executing a standard municipal lease.
Mayor Bondic and others asked staff to follow up with county officials and bring precise property-title information back to council. The item was pulled for additional attention and the council accepted the pulled report for follow-up.
Councilors directed staff to determine: whether there is a signed and enforceable lease, what the lease obligates the tenant to do on maintenance and repairs, whether the parcel is tax-forfeited and what county rules apply, and options the city has if it wants to charge rent or secure funding for repairs. The council requested a status update at an upcoming meeting.
