Aberdeen City Council approved first reading of Ordinance 25-10-03, which creates the legal framework for the voluntary annexation of the Brown County Fairgrounds and implements an annexation agreement between the city and Brown County.
Under the agreement described to the council, if the fairgrounds are annexed the municipal sales tax collected on fairground transactions will be remitted to the county for fairgrounds improvements and operations rather than retained by the city. The county agreed not to seek municipal services for the property; in exchange, the county will use sales tax proceeds for fairgrounds capital and operational needs and at least one-third of remitted revenue must be applied to capital improvements. The agreement contains a de-annexation mechanism allowing the county to reverse annexation under conditions spelled out in the agreement.
City counsel explained the ordinance also clarifies definitions in the zoning code, adds an exemption for fairgrounds operations from certain city ordinances, and disallows the fairboard from obtaining liquor licensing that would expand video lottery placements beyond current limits. Planning and Zoning recommended approval at a special meeting on Sept. 30. The council indicated it expects the county to take its actions in short order and anticipated completing formal annexation steps and any required referral periods before the end of the year, with taxable transactions anticipated to begin April 1, 2026.
Discussion vs. decision: This was a first reading and public hearing. The council voted to approve the ordinance on first reading; subsequent steps include county approval of the annexation agreement, any referral period, second reading and final adoption, and formal annexation process. Council members emphasized improved intergovernmental cooperation and the expectation that sales-tax remittance will fund needed fairgrounds capital projects. The council recorded roll-call aye votes on the first reading.
Ending: Council members said the arrangement had been years in the making and expressed optimism that the partnership will allow required investments at the fairgrounds without adding municipal service burdens to the city.