Agenda Item Title:
Approve Resolution No. 2021-107 A Resolution To Enter Into A Lease Agreement From City To Downtown Business Improvement District Board For Main Street Square
Origination Group:
Legal & Finance Committee
Origination Meeting Date:
12/29/2021
City Council Hearing Date:
01/03/2022
Staff Contact:
Carla Cushman, Deputy City Attorney; Just Williams, Assistant City Attorney; Pauline Sumption, Finance Director
Agenda Item Summary:
In 2010, the City entered into a lease agreement with the Downtown Business Improvement District (BID) Board for a lease of the area now known as Main Street Square. The lease had a 10 year term with equivalent renewal terms. After Main Street Square was constructed, the Downtown BID Board entered into an operations and management agreement and a sublease of the square with Downtown Rapid City Economic Development Corporation (now Main Street Square, Inc.). The Downtown BID Board inadvertently missed its window to renew the 2010 lease agreement at the end of 2020 for several reasons, including transitions in staffing. This lease agreement was drafted with the cooperation of the Downtown BID Board and Main Street Square, Inc., to reflect the terms of the original agreement as well as to include subsequent amendments (for example, an amendment providing for City payment of utilities at the Square). This latest lease agreement also reflects the expanded footprint of the square to include the entire alley as well as the enclosed portion of the ground level of the parking garage. The new lease has a 5 year term with two renewal terms of 5 years each. The Downtown BID Board approved this lease agreement at its meeting on December 7, 2021.
Funding Source & Fiscal Impact (if applicable):
| Funding | Cost Center |
|---|---|
| Estimated annual City cost for utilities at Main Street Square is $70,000 | |
Recommendations:
Origination Recommendation Action:
Approve