Posted: June 26, 2025
Rapid City
Agenda Item Summary

Agenda Item Ref. #: LF070225-18 Resolution No. 2025-079

Agenda Item Title:

Resolution No. 2025-079, a Resolution of Intent to Establish the Business Improvement District 2

Origination Group:
Legal & Finance Committee
Origination Meeting Date:
07/02/2025
City Council First Reading Date:
07/07/2025
Staff Contact:
Daniel Ainslie, Finance Director
Location:
Council Chambers
Agenda Item Summary:
During the June 12, 2025 Hotel Business Improvement District (BID) Board meeting, the Board voted to recommend to the Council that a new Hotel BID be established. The new BID would include all hotels within the City limits with 55 or more rooms. Any occupied, non-complimentary night, would be assessed an additional $2.00 per occupied, paid, room night. This is anticipated to generate approximately $1.5 million on an annual basis. The Board recommends that the funds be used solely to fund marketing and development of sporting events, capital costs associated with the indoor fieldhouse and staffing and operations of the fieldhouse. This is anticipated to provide approximately $20.6 million for the capital costs associated with the construction and approximately $300,000 per year for annual operations of the center. This would fund a significant part of the initial and ongoing operational costs associated with this significant quality of life project which will also significantly enhance the local economy. It is important to note that the financing of this project is specifically designed to not have a negative impact on local property tax payers.

In order to discuss and determine if a new Hotel BID should be established, the Council must approve a resolution of intent (attached). The City Finance Office will mail this resolution along with a letter explaining the purpose and process to every hotel/motel impacted. Then the Council will hold a public hearing on August 18, 2025. Following the public hearing, the Council will be able to determine if a second Hotel BID would be established.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center

Recommendations:

Origination Recommendation Action:
Approve

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