Mitchell council weighs $6 million reserve designation and phases for Corn Palace seating, ice‑arena repairs and drainage projects

Mitchell City Council members on the city’s work session reviewed a preliminary list of capital needs and discussed how to fund near‑term projects, including a staff proposal to designate $6,000,000 of general‑fund reserves for future capital work.

Stephanie, a city staff member, told the council the handout on members’ desks lists 2025 capital improvements that were cut from the 2025 budget and stressed the dollar figures are "very, very rough estimates" compiled from discussions dating back to 2014. She said sales‑tax collections to date suggest between $1.1 million and $1.6 million above the 2025 appropriation, but cautioned that sales tax is only one part of total revenue.

Why it matters: council members said they want a clear method to prioritize projects and a funding plan that does not undermine reserve goals. Staff recommended designating $6 million of general‑fund reserves to demonstrate capacity for major projects while preserving flexibility to reassign that designation later.

The council identified several near‑term capital priorities. Members generally supported a modest, short‑term upgrade to the Corn Palace seating — replacing or improving the current soft seats — as a lower‑cost, immediate step to improve audience experience. A schematic presented by a consultant showed an option to remove the stage and install push‑back bleachers on the east side that could increase flexible floor and seating capacity. Council members raised potential revenue ideas such as sponsorships and a seat‑naming program.

Freight elevator safety also drew attention. Staff said the elevator lacks required gates and safety features that discourage contractors from servicing it; one rough estimate provided to staff put elevator work and related building repairs in the mid‑hundreds of thousands (staff cautioned those numbers were preliminary).

On the ice arena, members reviewed a consultant’s prior findings that the newer addition to the rink is poorly suited to extended year‑round ice because of the building envelope and roof configuration. Council members discussed hiring an architect to draft a permanent roof solution; one estimate offered in the meeting put architect fees around 10% of construction, with a ballpark of $100,000–$120,000 for design work, though members agreed a detailed cost estimate would be required.

Funding context: staff said the city budgeted $13.4 million in sales tax for 2025 and noted 2023 collections were $14.5 million, so current receipts are running about 6% above 2023. Councilmembers discussed using one‑time overages and entertainment‑tax debt service to phase work, while recognizing that major projects will require formal appropriations, possible SRF loans for utility‑related work, and careful timing of debt service beginning in the mid‑2020s.

Next steps: staff said it can schedule a formal action to designate the $6 million in reserves at an upcoming regular meeting; members asked staff to return with refined cost estimates, architect scopes of work for the ice arena, and more detailed options for staged Corn Palace improvements. The work session ended without any formal vote on funding set aside.