Rapid City considers new hotel fee to support indoor field house construction

In a recent meeting of the Rapid City Legal & Finance Committee, discussions centered around the proposed establishment of Business Improvement District (BID) 2, aimed at funding a new indoor field house. This initiative, driven by local hotel owners and the sports commission, seeks to impose an additional $2 fee per occupied hotel room to generate approximately $15 million for the construction and operational costs of the facility.

Director Ainsley emphasized that the funds raised would specifically support the field house, ensuring that it does not become a financial burden on the city's general fund. The proposal aims to enhance Rapid City's appeal as a tourist destination, particularly during winter months, by providing a venue for various sporting events and activities for families and individuals of all ages.

The committee highlighted that this initiative is not unique to Rapid City, as other communities in South Dakota, such as Deadwood, have successfully implemented multiple hotel BIDs to fund civic and sporting facilities. The hotel owners believe that the additional fee will not only help finance the field house but also attract more visitors, ultimately benefiting the local economy.

However, the proposal sparked a debate among committee members. Councilman Maher supported the initiative, noting that the fee would primarily be paid by visitors rather than local taxpayers. In contrast, Alderman Evans raised concerns about the narrow focus on sports facilities, arguing for a more holistic approach to funding that encompasses cultural attractions and other community needs. He expressed skepticism about the long-term implications of dedicating funds solely to one type of facility, suggesting that a broader strategy would better serve the community's diverse interests.

The committee plans to hold a public hearing on August 18, where stakeholders and community members will have the opportunity to voice their opinions on the proposed BID. The outcome of this discussion could significantly shape the future of Rapid City's recreational and tourism landscape, as well as its approach to funding community projects.