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

·8 min read

Sep. 19—The Corn Palace Stampede Rodeo organization is inching closer to moving its annual rodeo event to a new location next to Mitchell's airport.

The Mitchell City Council will consider approving a 30-year lease agreement on Monday with the Corn Palace Stampede Rodeo organization for its plan to move the annual Mitchell rodeo to a new location along Airport Road, less than a mile north of its existing location off north Highway 37. The council will vote on the lease agreement during the 6 p.m. meeting on Monday at City Hall.

As part of the lease agreement, 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 that draws around 8,000 to 10,000 people each summer.

Over the past year, the Corn Palace Stampede Rodeo group — which hosts the Mitchell rodeo that draws around 8,000 to 10,000 people each summer in late July — has been in the middle of an ongoing legal battle with its landlords over matters at the current 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, about a half mile from the existing rodeo grounds along Highway 37.

According to the terms of the lease agreement, the Corn Palace Stampede organization would enter a 30-year lease with the city of Mitchell, stretching from Jan. 1, 2022 to Dec. 31, 2051, should the council approve the agreement. Under the agreement, the rodeo group would rent the land for $7,500 per year. Currently, Corn Palace Stampede pays Horsemen's Sports $2,000 a year.

Among the notable stipulations in the lease agreement are the process of making improvements to the rodeo grounds and maintaining the arena, which are some of the matters the Mitchell-based rodeo group and Horseman's Sports Arena have been disputing over.

On the maintenance side of things, the lease agreement states, "except for required general maintenance, repairs, and replacements, the tenant shall not make or cause to be made or allow any construction, alterations, installations, or improvements to or on the premises without prior approval of the landlord's mayor," which would be the acting mayor of Mitchell. In addition, the rodeo group would be solely responsible for construction, installations and improvements at the rodeo grounds.

The city also is requiring the rodeo organization to maintain insurance at the group's own expense, including commercial general liability insurance, flood insurance, workers' compensation and builders risk insurance.

In an attempt to avoid potential lawsuits, the agreement stipulates the rodeo group "shall indemnify," or hold the city harmless from "liabilities, claims, demands, damages, lawsuits, judgements, expenses and costs of any kind or nature."

The Corn Palace Stampede's ongoing lawsuit with Horsemen's Sports Inc. alleges its landlords committed "intentional" property damage to the Corn Palace Stampede's 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 has alleged that its group has done all of the improvements for the property and alleged that the defendants from Horsemen's Sports have trespassed on the property and damaged it without cause, not allowing Corn Palace Stampede to use the grounds as intended.

The lawsuit doesn't specifically list what property was damaged and destroyed. The complaint seeks a jury trial in the case and requests damages and costs for the property being destroyed.

The claim says the plaintiff — Corn Palace Stampede Inc. — has "created, provided and done all improvements on the property, at its own expense and efforts." The suit says that there is no severance agreement between Corn Palace Stampede and Horsemen's Sports about those improvements.

The two sides have a lease that runs through 2031, but the rodeo group is still moving forward with seeking a new location. Despite the ongoing legal dispute, the 50th annual Corn Palace Stampede Rodeo went on as planned in late July at Horseman's Sports Arena after a judge granted a relief in April at the request of the local rodeo organization.

Consent agenda

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

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Approve the minutes and reports from the following meetings: Sept. 9 City Council meeting; Aug. 23 Planning and Zoning Commission meeting.

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Approve department reports.

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Approve amending grant with the South Dakota Department of Transportation.

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Approve the following special event application: Sept. 25 Dakota Wesleyan University Blue and White Days, which will entail closure of Main Street at 10 a.m.

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Approve the following raffle permits: Mitchell Main Street & Beyond (Fur Get Me Not Animal Care) with the drawing to be held on Oct. 9; LB Williams PTO with the drawing to be held on Oct. 23; First Presbyterian Church with the drawing to be held on May 1, 2022 or when the tickets are sold out; John Paul II School with the drawings to be held on Jan. 21, Jan. 28, Feb. 4, Feb. 11, Feb. 17, and Feb. 25, 2022.

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Approve the following board appointments: Jean Koehler to the Corn Palace Events & Entertainment Board for a term to run Oct. to Sept. 2024; Carol Cersosimo the Corn Palace Events & Entertainment Board for a term to run Oct. to Sept. 2024; Giovanni Lanier to the Corn Palace Events & Entertainment Board for a term to run Oct. to Sept. 2024.

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Approve change order No. 7 for Sanborn Boulevard project, Phase II and III to H and W Contracting.

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Set the date for the following alcohol licenses: Oct. 4, the Corn Palace Shrine Club's application for a special event liquor license located at the Masonic Hall for an Oct. 29 event; Oct. 4, Overtime Properties Inc. doing business as Overtime Steakhouse and Sports Bar's application to transfer retail (on-off sale) liquor license from 716 N. Rowley St., to Hohn Partnership, LLC, doing business as Platinum Players Club III, located at 719 N. Sanborn Blvd. Suite No. 3.

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Approve Sept. 20 pay estimates.

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Approve bills, payroll, salary adjustments, new employee hires, authorization of recurring payments and other expenses.

Other business

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Recite pledge of allegiance and receive invocation from Salvation Army.

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Hear citizens input.

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Meet as Board of Adjustment.

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Hold hearings on the following: Brooke Hartman's application for a conditional use permit to operate a family residential daycare center in her 317 E. Fourth Ave. home, legally described as lot 2, block 27, original addition, in the city of Mitchell. The property is zoned R2 single family residential; Stacy Nettinga's application for a rear-yard variance of 0 feet vs. 3 feet as required for construction of a garage addition at 204 W. 11th Ave., legally described as lot 11, block 29, capital addition, in the city of Mitchell. The property is zoned R2 single family residential; George Morgan's application for a side-yard variance of 0 feet vs. 3 feet as required for enclosing an existing non-conforming carport at 414 N. Davison St., legally described as lot 6A and west half of lot 5A, block 30, cooley and guernsey addition, in the city of Mitchell; Faith Missionary Church's request to construct an addition of a 38 by 57 building crossing parcels lines located at 1025 E. Sixth Ave. legally described as Lot 4 except in Block 3 of Gleesons Addition in the northeast quarter of Section 22, township 103 north, range 60 west of the fifth prime meridian, in the city of Mitchell, Davison County South Dakota and Lot 3 and E 33' of Lot 4 in Block 3 of Gleesons Addition in the northeast quarter of Section 22, township 103 north, range 50 west of the fifth prime meridian, in the city of Mitchell. The property is zoned R4 High Density Residential District.

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Set the date for the following hearings: Oct. 4, Jason Bates' application for a north side-yard variance of 0 feet vs. 3 feet as required for an addition located at 1112 N. Rowley St., legally described as lot 16, block 4, D.A. Scotts Addition, in the city of Mitchell. The property is zoned R2 single family residential.

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Reconvene as City Council.

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Approve street lights for Phase I of Ethan Co-op Lumber's Lakeridge housing development near Lake Mitchell. The request seeks to install three street lights for the first phase of the development that's in motion.

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Approve land exchange on North Harmon Drive.

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

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Hold hearing and consider approving tax levies certified by the Davison County Auditor.

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

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Approve resolution to create Tax Increment Financing District No. 26 for the surrounding lots around the former Crafty Fox building in downtown Mitchell. The TIF relates to a California developer's plan to remodel the 223 N. Main St. building.

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Hold public hearing on the state's Revolving Loan Fund application to be used on Mitchell's water system improvements.

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Approve resolution to use SRF funds on Mitchell's water system improvements.

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Approve first reading of emergency ordinance amending the city's medical marijuana regulations.

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Approve golf course master plan with Norby Golf Course Design.

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