MINOT, N.D. — A North Dakota city is alleging its intermodal facility breached its lease as landlord by failing to maintain the property that may now be foreclosed upon.
First Western Bank is seeking to foreclose up North Dakota Port Services, the Minot Daily News (http://bit.ly/2tox0EL) reported.
Minot is claiming the operator breached its lease by failing to pay $92,500 in rent and falling behind on taxes.
But in a complaint filed in June, North Dakota Port Services says the city failed to return the leased property to its original condition after construction occurred on the property.
“Subsequent to entering into the lease with North Dakota Port, the City utilized a portion of the leased property in wholesale disregard of the rights of North Dakota Port and in a manner that prevented North Dakota Port from obtaining any economic benefit from said property,” the complaint stated.
The operator also alleges it wasn’t allowed to exercise its right to purchase portions of the leased property and wasn’t able to convey title when requested. They said those failures led to damages to the company.
“Additionally, the City has no right to claim rent with respect to the property that North Dakota Port sought to purchase,” the complaint stated.
Minot will have until July 19 to respond to the crossclaim.
The city has requested the court to order North Dakota Port Services to pay the amounts the city says it’s owed as well as its legal costs.
Information from: Minot Daily News, http://www.minotdailynews.com