Posted: December 04, 2017
Rapid City
Agenda Item Summary

Agenda Item Ref. #: LF112917-07

Agenda Item Title:

Authorize the Mayor and Finance Officer to sign an Agreement Between the City of Rapid City and the Rapid City Area Schools for the Purchase of the School District’s Ownership Interest in the City School Administration Center

Origination Group:
Legal & Finance Committee
Origination Meeting Date:
City Council Hearing Date:
Staff Contact:
Joel Landeen, City Attorney
Agenda Item Summary:
The City agrees to purchase the RCAS ownership interest in the CSAC for $2,904,450. This price is based on the average of two appraisals and a concession for some deferred maintenance items. This purchase is being made to facilitate the RCAS moving into the former Black Hills Corp. building which will allow the City to accommodate additional employees and future growth at the CSAC. Both organizations are running out of space for future growth and this purchase will help the City address this issue. The agreement calls for an initial payment of $1,500,000 within 60 days with the balance to be paid off in four years. The City can pay off the balance at any time without penalty. If the City has not paid off the balance annual payments of $260,000 are required.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center
The City has several options for funding sources. The anticipated funding sources are the City’s undesignated cash balance, undesignated cash in the CIP Account, undesignated funds in the Vision Account, or a combination of all three. The Council does not need to decide the specific funding sources at this meeting. If approved by both entities the first payment of $1.5 million is due within 60 days. The balance can be paid off over the next several years.


Origination Recommendation Action:
Origination Recommendation Notes:
The RCAS needs to know if the City is buying the building so that it can proceed with its agreements with the YMCA. By approving this agreement you are locking in the City’s commitment to purchase the property and the total cost of the purchase.
City Council Options:
Approve or deny. If you deny, the agreement between the RCAS and YMCA may be negatively impacted.

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