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AGENDA RECOMMENDATION |
Consent Calendar 6.K.
City Council Regular Meeting
- Meeting Date:
- 09/08/2025
Agenda Item:
Resolution authorizing the City Manager to execute an amended ground lease at Mankato Regional Airport
Recommendation/Action(s):
Adoption of the attached resolution.
Summary:
On August 9, 2021, the City Council authorized the City Manager to execute a ground lease with North Star Aviation, Inc., for construction of a hangar identified as Building 3120 North Airport Road, which is now complete and adjacent to their existing hangar, Building 3100 North Airport Road.
On August 22, 2022, the City Council authorized the City Manager to amend the ground lease, adding a legal description of the leased premises, which was previously referred to as an exhibit with no legal description. In addition, KMKT LLC and North Star Companies were added as tenants with KMKT LLC the mortgagee (borrower).
Now, at the request of the tenants, the second amendment removes the parent organization, North Star Companies and its affiliate North Star Aviation Inc., leaving KMKT LLC as tenant. KMKT LLC is working with the Small Business Administration (SBA) to term finance the recent office addition to Building 3120 North. The SBA requests the agreement identify KMKT LLC as tenant. Financing the construction of the hangar through mortgages and loans is permitted under the original lease. The Severance Agreement adds Midwest Business Finance Corporation and U.S. Small Business Administration (SBA) as lenders in addition to Frandsen Bank.
On August 22, 2022, the City Council authorized the City Manager to amend the ground lease, adding a legal description of the leased premises, which was previously referred to as an exhibit with no legal description. In addition, KMKT LLC and North Star Companies were added as tenants with KMKT LLC the mortgagee (borrower).
Now, at the request of the tenants, the second amendment removes the parent organization, North Star Companies and its affiliate North Star Aviation Inc., leaving KMKT LLC as tenant. KMKT LLC is working with the Small Business Administration (SBA) to term finance the recent office addition to Building 3120 North. The SBA requests the agreement identify KMKT LLC as tenant. Financing the construction of the hangar through mortgages and loans is permitted under the original lease. The Severance Agreement adds Midwest Business Finance Corporation and U.S. Small Business Administration (SBA) as lenders in addition to Frandsen Bank.