JackpineGypsies Inc. Consideration to approve Resolution 2020-18 - - PowerPoint PPT Presentation

JackpineGypsies Inc.

Consideration to approve Resolution 2020-18 Annexation June 1, 2020

1216 Short Track Road

Conditions where Annexation is considered

 In accordance with State law, the City’s policy is to consider annexation under the following conditions:

 When a tax inequity exists because of the provision of urban services to a developing area;  When it is necessary that the City be allowed to exercise proper municipal powers to ensure orderly growth and development;  When the City is willing and able to provide urban services from which an adjacent area would benefit;  When the development of an area may adversely affect the health and safety of the residents of the City; and  When there exists a mutual interest between the City and a developing area.

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(1) Tax Inequity

“When a tax inequity exists because of the provision of urban services to a developing area”

 Fire Protection: The majority of the Sturgis Volunteer Fire Department budget is funded by the Sturgis taxpayers through General Fund appropriations.  Roads: The properties’ impact on municipal roads is fully borne by the residents of Sturgis.

 This property is only accessible by municipal roads.  This is not equitable to the taxpaying property owners of Sturgis.

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Property Access

 From Exit 30: ~.9 miles of City maintained roads  From Exit 32: ~2 miles of City maintained roads

Source: https://jpg.clubexpress.com/

City streets are more than pavement

(2) Orderly growth and development

“When it is necessary that the City be allowed to exercise proper municipal powers to ensure orderly growth and development”

 Understanding that the property owner has no intention of selling or developing the property, it is still important that, should any development occur, this development must be in line with the City’s codes for growth and development.  Annexation will allow the continued operation of the property to be orderly. There have been continued state MS4 violations

• f debris on City roadways originating from this site, however,

without the site being in the City limits, the City is not able to enforce these issues.

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(3) Provision of Urban Services

When the City is willing and able to provide urban services from which an adjacent area would benefit;

 The City already provides or can provide the following urban services:

 Fire protection are already provided by the Sturgis Volunteer Fire Department.  Law Enforcement: In the event of a major incident or at the request of MCSO, the Sturgis Police Department, through mutual aid, would respond in support of Meade County Sheriff deputies.

 Further, given the geographic area that MCSO is required to patrol, the City is uniquely positioned to offer law enforcement support to this property.  As an example, in 2018 and 2019, there were 2 calls for service at the property that the Sturgis Police Department responded to.

 EMS service are already provided

 Although the property owners often uses both Spearfish Ambulance and Sturgis Ambulance for onsite stand-by, it is only the Sturgis Ambulance which actually transports from the property to a hospital.  For example, in 2018 and 2019, there were 3 transports from the property.  The property is ~1.7 miles from the hospital and a mere .9 miles from the Fire Station.

 Domestic water: Availability as there is a main line that crosses the property  Sanitary sewer: Two sewer main and one stub are available should the property owner wish to develop the connection.  Solid Waste: Available upon annexation  Streets: Access to the property is only available via City streets.

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Site Plan

(4) Health and Safety of City residents

“When the development of an area may adversely affect the health and safety of the residents of the City;”

 The stormwater from the property flows into a natural drainage along Short Track Road (north side of the property). This drainage ties into the municipal stormwater system.  Further, once within City limits, the Planning & Permitting Department would ensure floodplain development compliance as required by FEMA.

 This would help prevent erosion of sediments onto Moose Drive from the property.

 Looking at the challenges that Pennington County faces with septic systems within the Hills, it is prudent to have a future path to bringing the property onto City sanitary sewer.  The annexation would ensure that any potential future development would be planned to limit the impact it would have on neighboring properties

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“When there exists a mutual interest between the City and a developing area”

 The property and the City have a “mutual interest” in being a part of the Sturgis community.  The City would benefit from the success of the property in sales tax and property tax revenue to offset costs to provide municipal

• services. Additionally, its events during the tourism season have the

potential to bring visitors to the community.  The properties already benefit by capitalizing economically on being immediately adjacent to City limits.

 During the Rally, visitors to the City can be attracted to the properties’ events.  The visitors to downtown Sturgis during the tourism season are potential visitors to the Jackpine Gypsies sponsored events and races.  As a side note, the properties benefit from the City’s provision of passive marketing support at its Info Booths during the Rally.

(5) Mutual Interest

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Summary

 The City’s annexation of the properties owned by Jackpine Gypsies Inc. are in the best interest of the City.  This annexation target meets all five goals for identifying annexation targets.  In summary, this annexation would provide:

 Fair sharing of the local tax burden

 Roads, fire protection

 More orderly process to plan and continue future growth and development  More efficient delivery of municipal services

 Garbage, sewer, water  Public safety

 Health & Safety

 Ensuring FEMA floodplain compliance

 Mutual Interest

 Proximity to downtown – Sturgis as an economic hub

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Proposed Current Uses to Continue

Activities include but are not limited to:  Flat track racing  Hill climbs  Motocross  Snowmobile  Go-kart  Mini-sprint cars  Lawnmowers  Verticross  ATV racing City regulations shall not prohibit these and other similar events which may be open to the public or may be private events.

Proposed Activity and Sound Limits

 During the 9-day Rally period – events and activities from 6 am to 2 am.  From April 1 to November 1  Sunday –Thursday, 8 am to 10 pm  Friday and Saturday, 7 am to 1 am

Noise should be limited to the times of operation described herein.

Proposed Dust Control

Owner shall continue to maintain a dust mitigation system. City shall not issue a nuisance violation for dust control efforts as long as the system is properly operational and is

• used. Should the system not function properly,

a warning shall be provided and the property

• wner shall be provided 14 days to make

necessary repairs before a citation is issued. Should dust create a safety issue on any roadway, repairs shall be required to be made immediately or events shall be postponed until mitigation can be made. Should individuals use the facility when it is not during an event hosted by the Owner and the dust control mitigation not be used, a citation may be issued to the individual and not to the Owner.

Proposed Fire and Ambulance Services

City can provide standby Ambulance service at JPG events, with a timely request and at the standard reimbursement rate under City Policy, as part of this agreement.

Proposed FREE Prime Vending Space

City can provide a 10 x 10 space at Armory as part of this agreement, and Owner will notify City by January 15 of each year of this agreement by signing an Exhibit Lease Agreement if Owner chooses to use that space. Failure to provide such timely notification, or failure to use and staff the space fully during the Rally period, shall eliminate City’s obligation to provide that space for Rally events during the remaining Term of this agreement.

Proposed Camping Guests

City shall authorize an overnight occupancy of dry camping units camping before an event, not to exceed 100 individuals during a scheduled racing event. As a part of this agreement, however, both parties understand that any future enforcement of state law or Administrative Rules by the South Dakota Department of Health or other state government agency is not limited by this agreement of the parties.

Proposed Zoning

The subject property shall be zoned HIGHWAY SERVICE upon recording of the Resolution for Annexation for the subject property. Thereafter any change in zoning shall be subject to the requirements of Title 18 of City Ordinances. Owner would be allowed to maintain unscreened outside storage as a prior non- conforming use under Title 18.

Proposed City Support for Owner On-Site Activities

 City will cooperate with Owner through another agreement to establish the agreeable terms and policies for the sales of Event tickets at the subject property to be available on the City website.  Consistent with City policy, use of City portable bleachers will be available for public events at the subject property.  Owner will have use of eight (8) City portable bleachers, without charge, for public events during the Rally at the subject property.

Proposed Cooperative Support for Owner Marketing and Sponsorship Sales

 City will cooperate with Owner through another agreement to establish the agreeable terms and policies for the sale of Owners merchandise to be made available through the City’s website.  City will cooperate with owner ibn marketing its promotional assets on the subject property.  City will cooperate with Owner through another agreement to establish the agreeable terms and policies to assist Owner in marketing any Sponsorship assets for Owner events within the City.

Continued

Proposed Cooperative Support (continued)

 City will cooperate with Owner through another agreement to establish acceptable practices by which the City will assist Owner to implement Owner’s plans to bring national-level moto-cross races and events to the subject property.  City will cooperate with Owner through another agreement to establish the acceptable methods by which the City may assist Owner to find a buyer for the subject property as part of Owner’s plans to develop a new facility in the City.  City’s support of these goals shall largely be completed through cooperation with the Rally & Events Department.

Continued

Proposed Term

The term of this agreement shall begin following execution by both parties and shall continue for a period

• f ten (10) years from that date, unless otherwise legally

terminated.

Items of Importance

 Between 2001 and 2017 City Finance Office records indicate payment to the Jackpine Gypsies in excess of $130,000 to events sponsored by the Jackpine Gypsies and other Rally-related activities primarily directed by the Jackpine Gypsies.  The Annexation Study prepared for the property identifies the manner in which the property already receives some City services paid for primarily by taxpayers in the City of Sturgis.  In addition to a few telephone calls, City representatives met with Jackpine Gypsie representatives on February 24, March 5, March 13 and April 29, 2020.  On March 31 the first proposed agreement based on those meetings was sent to Gypsies Representatives.  On May 2nd the second, updated proposed agreement, based on the last meeting on April 29th, was also sent to the Gypsies’ representatives.  After the public hearing on March 2nd, the Council had moved consideration of the Resolution to May 4th, and on May 4th moved it again to June 1st.  There was no formal response to the City regarding the audited proposal sent to the Jackpine Gypsies on May 2, 2020.  On June 1, the City Council approved Resolution 2020-18 for annexation.