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Lewistown council approves 15-year lease amendment for Honda shop on rails-to-trails property
Summary
The council approved a 15-year amendment to the Honda shop railroad lease that converts a month-to-month arrangement into a long-term lease with cause-based exit clauses; one commissioner abstained because of a family relationship.
The City of Lewistown council on July 20 approved an amendment converting a month-to-month lease for the Honda shop to a 15-year lease, while retaining short-notice exit provisions for cause.
The motion, introduced after a presentation by city staff and comments from a representative for the lessees, was supported by language that preserves the city's ability to terminate the lease quickly if federal or trail-related obligations require it. A representative for the lessees said the longer term was requested so the tenant could secure financing and continue operations despite a building that partially encroaches on rails-to-trails property.
City staff explained the property is encumbered by prior railroad conveyance rules and that leases on similar trail parcels are typically annual; this lease is the only one with an existing structure. Commissioners asked whether 15 years was longer than other leases and were told the structure and financing needs drove the proposed term.
The council approved the amendment on a roll call vote: Commissioners Bowser, Bueller, Day, Hewitt and Shaver voted yes; Commissioner Warren abstained, citing a relationship with the family of the tenant. Chair called the motion passed with the single abstention.
Next steps: staff will finalize the lease amendment language and return any execution documents to the council as needed.
