Posted: August 15, 2025
Rapid City
Agenda Item Summary

Agenda Item Ref. #: CC081825-04.3 Hold a Public Hearing regarding the proposed 2nd Hotel Business Improvement District (BID) and direct staff to prepare an ordinance to implement the 2nd Hotel BID

Agenda Item Title:

Hold a Public Hearing regarding the proposed 2nd Hotel Business Improvement District (BID) and direct staff to prepare an ordinance to implement the 2nd Hotel BID

Origination Group:
City Council
Origination Meeting Date:
08/18/2025
Agenda Item Summary:
At its June 12, 2025 meeting, the Hotel Business Improvement District (BID) Board voted to recommend the establishment of a new Hotel BID. This proposed BID would apply to all hotels within city limits with 55 or more rooms. Each paid, non-complimentary room night would be assessed an additional $2.00 fee, projected to generate approximately $1.5 million annually. The Board recommends that these funds be dedicated exclusively to marketing and developing sporting events, covering capital costs for the indoor fieldhouse, and supporting its staffing and operations. This funding model is expected to contribute approximately $20.6 million toward construction and $300,000 annually for operations—substantially offsetting the costs of this major quality-of-life initiative. Importantly, the financing structure is designed to avoid any negative impact on local property taxpayers. On July 7, the City Council adopted a resolution of intent. This resolution and an explanatory letter was mailed to every potentially affected property owner notifying them of a Public Hearing regarding this proposal to be held on August 18, 2025. The Council should hold a Public Hearing to receive comments from interested parties. Following the hearing, the Council may direct staff to prepare an Ordinance for future adoption to authorize the proposed 2nd Hotel BID during a future Council meeting.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center

Recommendations:

Origination Recommendation Action:
Approve

Attachments & Links to Download:

  pdf Letter

 

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