Council considers approving 30-year lease for new Corn Palace Stampede Rodeo location

Mitchell City Council will consider approving a 30-year lease with the Corn Palace Stampede Rodeo organization on Monday for its plan to move the annual Mitchell Rodeo to a new location along Airport Road, less than a mile away. north of its current location north of Highway 37. Council will vote on the lease at the 6 pm Monday meeting at Town Hall.

As part of the lease, the city would lease 20 acres of land to the Corn Palace Stampede Rodeo group, located at 5951 Airport Road, where the organization would host the Mitchell Rodeo which attracts approximately 8,000 to 10,000 people each summer.

Over the past year, the Corn Palace Stampede Rodeo group – which hosts the Mitchell rodeo which draws an estimated 8,000 to 10,000 people each summer in late July – has been in the midst of an ongoing legal battle with its owners over issues at present arena, known as Horseman’s Sports Arena. The dispute between the two entities prompted the rodeo organization to seek a new location on the north side of Mitchell, approximately half a mile from the existing rodeo grounds along Highway 37.

Scenes from the last night of the 50th Annual Corn Palace Stampede Rodeo on July 18 at Horseman’s Sports Arena. (Matt Gade / Republic)

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Under the terms of the lease, the Corn Palace Stampede organization would enter into a 30-year lease with the town of Mitchell, running from January 1, 2022 to December 31, 2051, if the council approves the agreement. Under the deal, the rodeo group would lease the land for $ 7,500 per year. Currently, Corn Palace Stampede pays Horsemen’s Sports $ 2,000 per year.

Notable stipulations in the rental agreement include the process of improving the rodeo grounds and maintaining the arena, which are some of the issues the Mitchell-based rodeo group and Horseman’s Sports Arena have been fighting over. .

With regard to maintenance, the rental agreement states that “with the exception of general maintenance, repairs and required replacements, the tenant shall not make or cause to be made or permit any construction, modification, installation or improvement on or on the premises. without the prior approval of the owner’s mayor, ”who would be Mitchell’s interim mayor. In addition, the rodeo group would be solely responsible for the construction, installations and improvements to the rodeo grounds.

The city also requires the rodeo organization to purchase insurance at the expense of the group, including commercial liability insurance, flood insurance, workers ‘compensation and builders’ risk insurance.

In order to avoid potential legal action, the agreement states that the rodeo group will “indemnify” or hold the city harmless from “liabilities, claims, demands, damages, lawsuits, judgments, expenses and costs of any kind.”

The Corn Palace Stampede’s ongoing lawsuit with Horsemen’s Sports Inc. alleges that its owners committed “intentional” property damage to Corn Palace Stampede property and breached the contract, among other things. The complaint also alleges unjust enrichment and seeks a permanent injunction and declaratory judgment.

Corn Palace Stampede alleged that his group made all the improvements to the property and alleged that Horsemen’s Sports defendants entered the property and damaged it without cause, not allowing Corn Palace Stampede to use the land as planned.

The lawsuit does not specifically list property that was damaged and destroyed. The complaint seeks a jury trial in the case and seeks damages and costs for the property being destroyed.

The claim states that the claimant – Corn Palace Stampede Inc. – “created, provided and made all improvements to the property, at its own expense and effort.” The lawsuit says there is no separation agreement between Corn Palace Stampede and Horsemen’s Sports over these improvements.

Both parties have a lease that runs until 2031, but the rodeo group continues to seek a new location. Despite the ongoing legal dispute, the 50th annual Corn Palace Stampede rodeo went ahead as planned in late July at Horseman’s Sports Arena after a judge granted redress in April at the request of the local rodeo organization.

Consent agenda

The following items will be considered as part of the consent agenda:

  • Approve the minutes and reports of the following meetings: municipal council meeting of September 9; August 23 Meeting of the Planning and Zoning Commission.

  • Approve departmental reports.

  • Approve the amending grant with the South Dakota Department of Transportation.

  • Approve the following special event request: September 25 Dakota Wesleyan University Blue and White Days, which will cause Main Street to close at 10:00 a.m.

  • Approve the following raffle permits: Mitchell Main Street & Beyond (Fur Get Me Not Animal Care) with the draw taking place on October 9; LB Williams PTO with the draw on October 23; First Presbyterian Church for which the draw will take place on May 1, 2022 or when tickets run out; Jean-Paul II School with the drawings that will take place on January 21, January 28, February 4, February 11, February 17 and February 25, 2022.

  • Approve the following appointments to the Board of Directors: Jean Koehler to the Board of Directors of Corn Palace Events & Entertainment for a term from October to September 2024; Carol Cersosimo of the Corn Palace Events & Entertainment Board for a term from October to September 2024; Giovanni Lanier at the Corn Palace Events & Entertainment Board for a term from October to September 2024.

  • Approve Change Order # 7 for the Boulevard Sanborn Project, Phases II and III to H and W Contracting.

  • Set the date for the following liquor licenses: October 4, Corn Palace Shrine Club’s application for a liquor license for a special event located at Masonic Hall for an event on October 29; On October 4, Overtime Properties Inc. carrying on business as Overtime Steakhouse and Sports Bar applied for the transfer of a retail alcohol license (on-site sale) from 716 N. Rowley St., to Hohn Partnership, LLC, making business as Platinum Players Club III, located at 719 N. Sanborn Blvd. Suite n ° 3.

  • Approve the salary estimates for September 20.

  • Approve invoices, payroll, salary adjustments, hires of new employees, authorization of recurring payments and other expenses.

Other business

  • Recite the Pledge of Allegiance and receive the Salvation Army invocation.

  • Listen to citizen comments.

  • Meet as an adjustment council.

  • Hold hearings on the following: Brooke Hartman’s application for a conditional use license to operate a family residential day care center in her home at 317 E. Fourth Ave., legally described as Lot 2, Block 27, original addition , in the town of Mitchell. The property is zoned residential single family R2; Stacy Nettinga’s request for a 0ft to 3ft backyard gap as required for the construction of a garage addition at 204 W. 11th Ave., legally described as Lot 11, Block 29, Capital Addition, in the town of Mitchell. The property is zoned residential single family R2; Request from George Morgan for a 0ft to 3ft side yard deviation as required to fence an existing non-conforming carport at 414 N. Davison St., legally described as Lot 6A and the western half of Lot 5A , block 30, cooley and guernsey addition, in the town of Mitchell; Faith Missionary Church’s request to construct a 38 by 57 building addition crossing parcel lines located at 1025 E. Sixth Ave. legally described as lot 4, except in block 3 of the Gleeson addition in the northeast quarter of section 22, township 103 north, range 60 west of the fifth principal meridian, in the town of Mitchell, in Davison County, South Dakota and Lots 3 and E 33 ‘of Lot 4 in Block 3 of the Gleeson Addition in the Northeast Quarter of Section 22, Township 103 North, Range 50 to west of the fifth prime meridian, in the town of Mitchell. The property is zoned R4 High Density Residential District.

  • Set the date for the following hearings: October 4, Jason Bates’ request for a 0ft to 3ft North Side Yard Deviation as required for an addition located at 1112 N. Rowley St., legally described as Lot 16, Block 4, DA Scotts Addition, in the Town of Mitchell. The property is zoned residential single family R2.

  • Reconstitute as city council.

  • Approve streetlights for Phase I of Ethan Co-op Lumber’s Lakeridge housing development near Mitchell Lake. The request aims to install three street lights for the first phase of the ongoing development.

  • Approve the exchange of land on North Harmon Drive.

  • Hold a hearing and consider approving a resolution to collect a special assessment for construction projects in 2020.

  • Hold a hearing and consider approving tax levies certified by the Davison County auditor.

  • Approve the resolution to declare surplus property between 109 and 115 North Main Street.

  • Approve the resolution to create Tax Increase Funding District # 26 for neighboring lots around the old Crafty Fox building in downtown Mitchell. The TIF relates to a plan by a California developer to renovate the building at 223 N. Main St.

  • Hold a public hearing on the request for state revolving credit funds to be used for upgrades to Mitchell’s water supply system.

  • Endorse the resolution to use FSR funds for upgrades to Mitchell’s water supply system.

  • Approve the first reading of the emergency ordinance amending the city’s medical marijuana by-laws.

  • Approve the golf course master plan with Norby Golf Course Design.

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