Jill Schramm/MDN The Aeroport Hobby Shoppe carries a variety of aviation-related craft and hobby items as well as radio-controlled planes and drones.

A hobby shop owner who previously sued the city over a lease is battling the city again to hang onto her business located on airport land.

Eva Lucke and her attorney, Bob Martin, argued unsuccessfully before the Minot City Council Monday to continue the lease beyond its expiration at the end of January. Lucke operates the Aeroport Hobby Shoppe at the airport. The city owns the land, and Minot Aviation, owned by Eva Lucke and Stewart Lucke, possesses the airplane hangar and attached commercial space. The operation has had an airport lease for 37 years.

The council unanimously voted to give notice of the city’s intention to not renew the lease based on non-aviation use of the property. However, the council indicated a desire to find a way to bring the business into compliance so it can stay.

Airport Director Rick Feltner said Minot Aviation does not comply with FAA rules that establish eligibility for an airport lease.

“The bottom line is this,” Feltner said. “A hobby shop, whether it sells model airplanes and drones and radio-controlled cars and boats or models or whatever, is not an aeronautical purpose as determined by the FAA.”

The hobby shop handles radio-controlled aircraft, rocketry and drone operation and teaches a Federal Aviation Administration-sanctioned drone program.

Hobby shop enthusiasts pleaded on behalf of the business, and Martin played a video showing that planes kept in the hangar do run. The Luckes reported a plane was last flown last fall. Martin noted the building is used to manufacture airplane parts, and five of seven planes stored there currently are operable.

“I submit to you that every aspect of the business in this facility is aviation-related,” Martin said. “To terminate this lease on the basis of non-aviation related activity would be arbitrary, capricious and unreasonable.”

Feltner said the only way to allow a non-aeronautical business in an aeronautical space would be to do so at market rent, with the airport taking a percentage of the profit, similar to how rental vehicle and fuel companies operate. The Luckes lease the land on which the building sits for $250 a month. Feltner explained lease rents on airport land are kept low to promote aviation activities.

Eva Lucke said the business has been engaged in airplane rental, crop spraying, experimental air shows and other aviation-related activities over the years. It supports a drone camp and school-related projects.

“Through the years we promoted aviation,” Lucke said. “We had a really good business. We have a clean record.”

Members of the Minot Aircraft Modelers came to back Lucke.

“To say that model aviation and drones are not an aviation-specific activity is somewhat short-sighted and I believe is an old way of thinking and it is changing,” said David Kolnes, president of the club. “And to put it bluntly, if this lease is not continued, you are probably going to push the hobby shop out of business. It’s the only business of this type in the Minot area.”

“If you close this business down, which is a tax-paying outfit, that means I’ve got to go out of state or out of town,” said Joseph Charles Perry, an 88-year-old modeler from Minot. “Why would we want to close a taxpaying business?”

Wayne Marshall, a club board member, said he would rather spend his money locally than online or in other parts of the state.

“Clearly, we need to have a hobby shop,” council member Shannon Straight said. “The larger question is whether we need a hobby shop right here at this location.

“I just think being stewards of our tax dollars, and what’s happening with the future of aeronautics and at our state-of-the-art new airport, this one has to change, and it’s sad, tough vote,” he added.

“We have a very important Minot business,” council member Josh Wolsky said. “I am always conscious of actions up here that discourage business or discourage entrepreneurs or discourage passionate individuals from seeking opportunities available in this community. And so I want to use this moment as sort of an all-call to people in Minot. If this vote is ultimately successful, we have a long-standing business here and I’m very hopeful. I will work to knock on doors and see if we can find a location for it somewhere here because I do want it to survive. But I do believe it’s time to modernize the operations at the airport.”

Council member Stephen Podrygula voiced concern about violating FAA rules because it could cost the airport future federal grants.

“What I’m leaning toward is seeing if they can come to a deal on this,” he said. “I just feel uncomfortable about ending a relationship that existed for 37 years without giving people an adequate chance to try to fix it, and they’ve expressed their willingness to fix it.”

Council member Lisa Olson said a vote to give notice still allows time for discussion and an opportunity for Minot Aviation to come into compliance before the end of the lease so the business can be considered for renewal.

In approving the motion, the council directed staff to work with Minot Aviation to see what steps can be taken to bring the business into compliance with FAA standards for an aeronautical operation.

The city had entered litigation in 2005 against Minot Aviation to evict them, but the case was dismissed after a year, Martin said. Minot Aviation then leased month to month until 2016 when a one-year lease was offered. Typically leases are long term. In March 2016, Eva Lucke sued in federal court, alleging discriminatory commercial lease terms by the city. Lucke is a naturalized American citizen, born in Chile. Her lawsuit failed to convince the court of racial discrimination.

On Monday, the council also voted to terminate the lease of Aviation Services, owned by Fred Andersen. Aviation Services holds a monthly lease on land for a hangar for $32.33 a month. Feltner said the facility is being used for storage.