WATERTOWN, S.D.(Press Release)- The Watertown City Council discussed the future of the city-owned Thunder Road property at Monday night’s meeting. The current lease agreement is set to expire. The property, which includes a building originally constructed in 1996, has been leased for commercial operations since its development.

City staff explained that the new lease agreement would require substantial revisions to the original terms to account for the changes in the property and its use over the past few decades. The original lease agreement included provisions for the city to contribute to the construction costs of the building on the property.

The council will negotiate the final lease terms with MADJIK LLC, the prospective operator. The new agreement will outline the responsibilities for maintaining, repairing, and improving the property.

Councilman Mike Danforth inquired about responsibility, and City Attorney Lisa Carrico responded.

The city anticipates that MADJIK LLC will cover most operational costs, with the city remaining responsible for major structural and infrastructure-related expenses.

Councilmember Bruce Buhler wondered whether selling the land might be a more financially advantageous option for the city.

City Manager Amanda Mack said that selling city-owned land requires a formal surplus declaration and bidding process, which doesn’t guarantee a favorable outcome. It was acknowledged that selling the property is an option, but it pointed out that the current lease agreement provides a steady stream of revenue for the city.

The council voted to approve the resolution of intent, authorizing city staff to proceed with negotiations with MADJIK LLC. The final lease agreement will be presented to the council for approval in upcoming meetings.