Marshall approves new airport lease

Agreement to renew lease for Enterprise rentals at airport

MARSHALL -- The Marshall City Council took steps this week to approve an updated lease for a rental car business operating at the Marshall airport.

On Tuesday, council members voted to authorize executing a new long-term lease with Enterprise Leasing Company of Minnesota.

"This proposed lease agreement doesn't really change much with the space that they're using at the airport," said Marshall Public Works Director Jason Anderson.

However, the new lease agreement would change from being based on square footage to a concession fee arrangement, he said.

Enterprise's current lease for space at the Marshall airport has been in place since 2021, and expires Oct. 31.

"Enterprise has occupied space at our airport since 2006, and they've typically done it under five-year agreements that need to be renewed," Anderson said.

Agenda packet materials for Tuesday's city council meeting said under the new lease, Enterprise would keep its office space in the arrival/departure building at the airport, maintain 10 reserved parking spaces in a lot near the building, and maintain use of vehicle wash and vacuum space in a hangar building area.

The new lease would have a five-year term, with an option for an additional two years.

"The big substantive change with this agreement is changing from a per square-foot monthly lease to a concession fee type of arrangement, which is pretty common with rental carriers at airports," Anderson said. Under the new lease agreement, Enterprise would pay a 10% concession fee on gross sales, aside from a few different types of sales. Anderson said that would include things like insurance claims.

Anderson said the concession fee arrangement should generate four to six times more income for the airport than the lease based on square footage.

Anderson said Tuesday that there were still some minor changes to the agreement that would need approval from Enterprise. He was recommending that the city authorize staff to execute the proposed agreement, subject to any adjustments approved by the city attorney.

Council members voted to authorize the agreement.