Commission approves liquor-license renewals but holds off on Dakota Gold after legal questions

The Lead City Commission voted on Nov. 18 to approve a slate of liquor-license renewals but deferred a decision on Dakota Gold Corporation’s license after commissioners raised questions about whether the business met South Dakota’s statutory requirements.

Commissioners reviewed paperwork for several establishments and moved to approve renewals for Silver Star Lounge, Louie’s Burgers and Brews, Roundhouse Liquors, Dakota Mart locations, Homestake Opera House, and others. At the meeting, one commissioner said, “I do not believe that they have actually met the requirements of state codified law 35 2 dash 2 dash 5.3,” citing the requirement that a licensee either be open for regular business hours at least 60 days in the previous two years or be open for a special event that draws at least 25,000 visitors. That commissioner urged the city to seek documentation of Dakota Gold’s event or sales records if necessary.

Jerry Aberle, the owner associated with the Dakota Resource property, said the space has been made available at no charge to nonprofits and that the business model emphasizes community events rather than daily bar operations: “We make that space available for nonprofits for no charge to benefit the community,” he said, noting the venue hosts roughly two events a month and that staff are trained to protect the license.

City staff and the city attorney’s earlier guidance were discussed. Commissioners asked the city attorney (to appear at the next meeting) to clarify how the statute applies when the qualifying special event is held regionally (the Sturgis motorcycle rally was cited as an example) rather than inside city limits. One line of legal interpretation the attorney provided, as recounted at the meeting, was that being open during a qualifying regional event can satisfy the special-event requirement without additional promotion, provided the venue was open to the public during the event.

After discussion, the commission amended the motion to approve all renewals except Dakota Gold’s and voted by roll call to approve the amendment. The motion passed 3–1. The commission directed staff to request documentation and to have the city attorney attend the next meeting to advise on whether Dakota Gold meets statutory criteria.

The commission’s action left the remaining renewals in place and scheduled follow-up on Dakota Gold’s application and the city attorney’s clarification at the next commission meeting.