Watertown City Council to Consider Derby Downs Lease Renewal
- Steve Jurrens
- 4 days ago
- 2 min read
Northeast Radio SD News – Watertown, SD - The Watertown City Council is set to meet Monday, March 16, 2026, with a key renewal for the Derby Downs Fairgrounds Facility on the consent agenda. If approved, the agreement would extend the partnership between the City and K&H Rodeo Company LLC for an additional two years.
Shift in Management and Maintenance
The proposed lease aims to address limited resources within the Parks & Recreation Department regarding the specialized maintenance needs of the arena. By establishing a dedicated leaseholder closely involved in equestrian and livestock events, the City intends to transfer the operational load and maintenance responsibilities to experts in the field.
Rent Through Improvements
In a unique arrangement, the agreement replaces traditional monetary rent with required site improvements valued at approximately $26,000. Under the terms for the period ending December 31, 2027, K&H Rodeo Company LLC is tasked with constructing:
· A Round Training Pen (Estimated value: $8,000).
· A Horse Stall Holding Area (Estimated value: $18,000).
All improvements will become the sole property of the City of Watertown immediately upon installation.
Alcohol Sales and Regulations
The City is expected to receive revenue from malt beverage sales during special events. For the first year of the lease, the Lessee will pay the City $0.20 per unit sold.
To maintain a family-friendly environment, the lease includes specific restrictions on alcohol:
· Youth Events: No malt beverages may be sold while youth competitive events, such as 4-H programs, are in progress.
· Curfew: Sales must cease by 11:00 p.m..
· Consumption: No off-premises consumption is permitted.
Additional Terms
The lease also requires the Lessee to maintain $1,000,000 in general liability and liquor liability insurance, naming the City as an additional insured. Furthermore, this new agreement officially terminates and replaces the previous "Facility Updates Agreement" from 2022.
The City Council meeting is scheduled for tomorrow night, March 16, at 5:30 pm at City Hall.
