Posted: August 25, 2017
Rapid City
Agenda Item Summary

Agenda Item Ref. #: LF083017-10

Agenda Item Title:

Authorize Mayor and Finance Officer to Sign Lease Agreement Between the City of Rapid City and Black Hills Visitor Information Center Development Corporation

Origination Group:
Legal & Finance Committee
Origination Meeting Date:
City Council Hearing Date:
Staff Contact:
Wade Nyberg
Agenda Item Summary:
Black Hills Visitor Information Center Development Corporation d/ba Black Hills and Badlands Tourism Association, currently leases what is commonly known as the Visitor Information Center at 1851 Discovery Circle. The current lease’s 20-year term is set to expire at the end of the year. A new lease has been negotiated, which will run until December 31, 2037. The basic terms of the lease are that the Association pays no rent in exchange for operating the visitor information center and keeping the building maintained. The new lease contains only a few variations from the initial, expiring lease. The changes include the following: • The leased property description has been updated to reflect recent platting at the VIC site. • Use of the property was updated to include using the building for business offices for the Association. (The initial lease included only operating a visitor information center.) • The current lease requires the Association keep money deposited with the Finance Office. The money was to be used for capital improvements, but the arrangement has been more problematic than useful. The remaining money in the capital account will be returned upon execution of the new lease. • Maintenance responsibilities of the Association have been clarified to include infrastructure, parking, building systems, and structural repairs. • The Association will be insuring the building (property casualty insurance). Otherwise, the lease is under the same terms and conditions as the past 20 years.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center
No fiscal impact is expected.


Origination Recommendation Action:

Attachments & Links to Download:

pdf LF083017-10 Lease Agreement (396 KB)

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