S.D. Admin. R. 41:13:03:01

Current through Register Vol. 51, page 71, January 6, 2025

Section 41:13:03:01 - Duration of concession lease or agreement

The concession lease or agreement, except for existing concession leases or agreements under negotiation, amendment, or renegotiation on the effective date of this article, may be issued for a term that the commission determines is required to allow the concessionaire a reasonable opportunity to realize a profit on the concessionaire's operations commensurate with the concessionaire's capital invested and the obligations assumed for the planned and negotiated investments by a concessionaire.

If, during the term of a concession lease or agreement, the commission and concessionaire agree that an authorized major addition, renovation, repair, or replacement should be made to the concessionaire's facilities or governmental facilities, to be provided by the concessionaire at the concessionaire's expense, the commission may extend the lease or agreement as provided in this section. At such time, all terms and conditions of the lease shall be reevaluated. This paragraph does not apply during the last 18 months before the expiration of the concession lease or agreement.

During the term of the concession lease or agreement, but not during the last 18 months before the expiration of the concession lease or agreement, the concessionaire may present to the commission for authorization a proposal for a major project that the concessionaire believes warrants an extension to the lease or agreement. This proposal shall include the following:

(1) A description of the proposed project, including consistency with park goals, and a description of why the improvements are in the public interest;

(2) An independent assessment of the market and financial viability of the proposed project;

(3) An independent cost estimate of the proposed project; and

(4) An analysis of the number of additional years required as part of the extension of the lease or agreement.

The commission shall review the proposal within 60 days and evaluate the proposal using the criteria listed above.

If determined by the commission to be in the public's best interest, the commission may at least 12 months prior to the termination of an existing concession lease or agreement negotiate with the concessionaire new lease terms and conditions. If the commission determines not to negotiate or the concessionaire does not accept the commission's terms and conditions, the existing agreement shall terminate according to the terms of the agreement. The commission shall select and award a new concession or lease agreement as provided in § 41:13:03:09 and this chapter. Nothing in this section is intended to provide a concessionaire with any expectation of concession lease or agreement extension or renewal.

S.D. Admin. R. 41:13:03:01

16 SDR 148, effective 3/21/1990; 32 SDR 55, effective 10/17/2005.

General Authority: SDCL 41-17-1.1(6).

Law Implemented: SDCL 41-17-1.1(6).