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CITY of RAPID CITY Agenda Item Summary |
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Meeting Date: 5/9/2013 |
Commission, Board or Committee: Legal & Finance Committee |
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Staff Contact: Joel Landeen |
PW Committee or L&F Committee: |
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Petitioner: City Staff |
City Council 1st Reading: N/A |
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Location: N/A |
City Council 2nd Reading: N/A |
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Agenda Title: |
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Request the City Council authorize that the payment received from Cabela’s for the sale of its interest in land that was formerly owned by the City be designated for use on the North Elk Vale Rd. soccer field project. |
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Summary: |
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In November of 2007, the City entered into an agreement with Cabela’s to transfer City owned land surrounding the Visitor Information Center to the Rapid City Economic Development Partnership which would then transfer the land to Cabela’s as part of the inducement to get Cabela’s to locate a store within Rapid City. One of the provisions of this agreement required Cabela’s to pay the City 5% of the net proceeds from the sale of any of the land that was transferred as part of the agreement. There was also a provision in the agreement (and an amendment thereto) that the City use the money it received for the “development of outdoor recreational facilities within Rapid City for use by the public.”
Cabela’s has sold the property to Moyle Petroleum. According to the settlement statement from closing that was provided by Cabela’s, the sales price was $1,850,000 and the net proceeds paid to Cabela’s was $1,637,719.02. Per the terms of the agreement, Cabela’s has remitted to the City a check for $81,885.95. After consulting with Jeff Biegler, the Mayor has requested that the money be designated for use on the proposed soccer field project. |
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Funding Source & Fiscal Impact (if applicable): |
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$81,885.95 |
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Recommendation: |
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Action: Staff would recommend that the Council authorize the use of these funds on the above project. |
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Options: |
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You can approve the proposed use of the funds or you can designate that the funds be used on a different project. Any project or use that you use the money on must involve the development of outdoor recreational facilities within Rapid City for use by the public. |
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Attachments & Links: |
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