North Dakota Port Services has been ordered to pay back rent to the City of Minot in a cross-claim filed in a foreclosure case in North Central District Court last year.

The city alleged NDPS, which operated an intermodal shipping facility, breached its lease by failing to pay rent and taxes. The court recently awarded the city $248,216.

The City and NDPS entered a lease agreement in January 2009 for city-owned property on the east side of town. The city also entered a subordination agreement with the State Bank of Kenmare, in which the city agreed NDPS could use its interest in the lease as security for one or more loans. A subsequent subordination agreement was signed in 2013 to amend the loan vender from the State Bank of Kenmare to First Western Bank & Trust of Minot.

In May 2017, First Western claimed ND Port Services had defaulted, and the bank sought foreclosure and sale of the real estate and property owned by NDPS to recover the outstanding loan. The city had been included in the foreclosure but later was removed as a defendant.

The court ruled in favor of the bank earlier this year and recently ordered NDPS to advertise and sell collateral property as necessary to raise the sum due. The court awarded more than $9 million to the bank in principal, interest and late fees on debt.

– Jill Schramm