CITY of RAPID CITY Agenda Item Summary
Meeting Date: 11/10/2015		Downtown BID Board: TBD
Staff Contact: Wade Nyberg		L&F Committee: 11/10/2015
Petitioner: Alderman John Roberts		City Council: 11/16/2015
Agenda Title:
Authorize Mayor and Finance Officer to Sign Second Amendment to Lease Agreement for Main Street Square
Summary:
The Main Street Square property is owned by the City.  It is leased to the Downtown Business Improvement District, which in turn subleases the Square to Destination Rapid City (“DRC”).  DRC also entered into an Operations and Management Agreement with the BID Board.  This Amendment to the Lease Agreement between the City and the BID Board would change the maintenance and utilities sections to address which party pays for each utility service.  Currently, the Lease provides that the City is to collect the garbage, and the lessee/sublessee (DRC) is to pay for other utilities.  DRC has purchased a trash compactor and contracted for garbage services.  This amendment would put garbage collection responsibility with DRC, and make water, sewer and electricity the responsibility of the City. DRC would remain responsible for gas, cable, internet & phone services. If this is approved, the Parks Department budget for 2016 will need to be supplemented.
Funding Source & Fiscal Impact (if applicable):
2016 Projected Utility Expenses – Main Street Square · City Finance: Water Total:  $26,528.33 · Black Hills Power: Electric Total:  $37,203.06 · Montana Dakota Utilities: Gas Total:  $3,104.00 Total 2016 Utilities: $66,835.39 Funding Source – Parks Department Budget
Recommendation:
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Options:
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Attachments & Links:
Second Amendment to MSS Lease	Original Lease		First Amendment to MSS Lease
Proposed First Amendment to Sublease	MSS Sublease
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