Commission approves six-month lease for Lils Coffee at Manual Brothers Park after heated public hearing

The Lead City Commission voted May 19 to approve a six-month lease for Lils Coffee to operate a drive-through coffee hut in Manual Brothers Park, setting a monthly rent of $200 and several conditions recommended by planning and zoning.

Robin, the city administrator, summarized the proposal and the planning and zoning review, saying the lease was advertised under state lease rules and that planning and zoning had recommended approval by a 5‑2‑2 vote with two members opposing a bid process. Robin noted the planning and zoning commission’s recommendations that the operator carry a $1 million insurance policy naming the city as additionally insured, not store cash on site overnight and have a clearly posted notice to that effect, and be limited to three parking spaces so the unit could not expand into other uses.

Commission discussion highlighted competing priorities: encouraging entrepreneurs and generating sales tax and foot traffic versus ensuring fair competition for existing downtown businesses. Commissioner (unnamed) said the lessee had pursued multiple sites and that the proposed Manual Brothers Park location had been vetted in an on‑site meeting with school, visitor center and city representatives to mitigate safety and traffic concerns. The city will not charge additional maintenance for the lessee beyond existing upkeep of the city-owned lot but will retain the right to close the lot for city events with seven days’ notice.

Several residents and business owners spoke during the public hearing. Colin Greenfield, a longstanding Main Street business owner, urged the commission to require an open bid process and argued a single lease could create unequal competition and effectively subsidize the private operator, noting the $200 monthly rent is small relative to potential impacts on established businesses. Joe Wilson, planning and zoning vice chair and Chamber of Commerce president, said no other parties had expressed interest in the spot during the P&Z process and emphasized the lease is temporary with no automatic renewal. Starla (last name not recorded) and others spoke in favor of allowing the entrepreneur an opportunity, noting past city practices leasing city land and the difficulty small operators face finding affordable locations.

After extended public comment and internal discussion, Commissioner (unnamed) moved to approve the lease as presented; the motion passed after voice vote with at least one recorded opposition. Commissioners instructed staff to monitor traffic during the trial period and asked Economic Development to continue assessing alternative permanent locations if appropriate.