Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Property Lease topic
No spam. Unsubscribe anytime.
Council advances resolution of intent to renew land lease for Phillips Avenue Diner; staff reports 22% rate increase
Summary
The council adopted a resolution of intent to renew the city’s land lease with Phillips Avenue Diner and directed staff to prepare the ordinance containing the updated lease. Planning staff described the change as a 22% increase over the current lease rate for a 6,500-square-foot land lease.
The Sioux Falls City Council on March 18 adopted a resolution of intent to enter into a renewed lease for city-owned land occupied by the Phillips Avenue Diner in downtown Sioux Falls. The vote was 7–0.
Dustin Powers of Planning and Development Services said the diner’s current land lease covers 6,500 square feet and that the city based the proposed rent on the amount the diner is paying now, with a 22% increase applied to the new agreement. Powers described the action before the council as the notice step; he said staff will return with an ordinance that attaches the proposed lease for final council consideration.
Councilor Spellerberg requested historical context for the proposed rate and asked why the city was offering a below-market rate to a for-profit operator; Powers replied the lease is a land lease rather than a building lease and that staff used the existing rate as a base and negotiated a 22% increase that the diner owners accepted.
The council’s vote authorizes staff to proceed with the public-notice and ordinance steps required for a lease of municipal property. No final lease was executed on March 18; the resolution begins the public-notice and ordinance process.
Staff identified the next procedural step as returning with an ordinance that will include the updated lease for council consideration.
