STURGIS, S.D. – Sturgis Council passed first reading of an ordinance Monday night that will raise the per linear foot annual fee that business pay in the Downtown Business Improvement District.
The district was formed in 2013 to come up with ways to enhance and grow the downtown corridor.
The new ordinance will raise the current $2 per linear foot annual fee that businesses pay to $6 per linear foot. In addition, the current $600 cap on the annual fee per parcel would be lifted. The low cap was initially set to get the initiative to pass 8 years ago. Now that the foundation has been established, the council is considering the removal of that cap.
Sturgis City Manager Daniel Ainslie says “the idea behind that is the funds raised then go in to the downtown fund. I want to make sure everyone is aware of that. It does not go in to the city’s general fund. Then, the downtown BID board makes recommendations on how to use those funds.”
Ainslie says usually they use a third of the funds for marketing efforts and in addition, they use a third of the funds for various additional events and another third goes to capital improvement downtown, like Christmas decorations.
Ainslie says businesses that are open year-round in the downtown corridor can work with the Sturgis Economic Development Corporation to get a 40-percent rebate.
Ainslie says with the changes, they are hoping to raise $60,000 annually.
Second reading of the ordinance is scheduled for next month.
