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Posted: July 28, 2023
Rapid City
Agenda Item Summary

Agenda Item Ref. #: LF080223-24

Agenda Item Title:

Provide Direction to Staff Regarding a Request from the South Dakota Stockgrowers Association (SDSGA) to be provided a Non-Revocable, No-Build Easement on the Adjoining City Property along with an Easement to Protect the Stairwell that Currently Provides Access to the Basement of its Building at 426 Saint Joseph Street

Origination Group:
Legal & Finance Committee
Origination Meeting Date:
08/02/2023
City Council Hearing Date:
08/07/2023
Petitioner:
South Dakota Stockgrowers Association
Staff Contact:
Joel Landeen, City Attorney
Location:
426 St. Joseph Street
Agenda Item Summary:
The SDSGA own the building at 426 St. Joseph Street. On the east side of the building are windows and a stairwell that would potentially need to be removed if the City were to sell the adjoining parking lot and the purchaser of the lot wanted to build up to the property line. The City granted the Stockgrowers a revocable no-build easement in 2000. This allowed the windows to remain, but a subsequent owner could revoke the easement which would require the owner of the Stockgrowers’ building to remove the windows and stairwell. The Stockgrowers are requesting that prior to any sale of the property the City make the no-build easement non-revocable and also specifically provide an easement that protects the location and continued existence of the stairwell. The Stockrowers are requesting that the City do this at no, or at least very minimal cost to them. This easement would significantly burden the western end of the City owned lot and reduce the parcels overall value to subsequent purchasers. The City did grant a non-revocable no-build easement to the property owner on the east side of the lot in 2020 for $24,000 (Approx. $17 a sq.ft.). The City recently valued the property at approximately $32.28 a sq.ft. Based on this valuation the outright purchase of this area would cost approximately $45,571.76. Since it is an easement rather than a complete purchase the actual value of the easement would likely be somewhere in between the two numbers.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center
Funding Source & Fiscal Impact Notes:
Approval of an easement, or other similar solution, would not require an expenditure of funds. If the City were to charge for the granting an easement staff would recommend that the proceeds be placed into the City’s parking fund. While granting of an easement does not require an expenditure of funds, it would reduce the value of the City owned lot adjoining the Stockgrowers’ property.

Recommendations:

Origination Recommendation Action:
Approve
City Council Options:
You can 1) decide to take no action on the SDSGA request; 2) provide the SDSGA the easements protecting the windows and stairwell at no cost; 3) provide the easements to the SDSGA at a price you believe is fair.
Published in 2023 - LF Agenda Items

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