Informational Meeting

MINUTES Informational Meeting Tuesday, June 7, 2022 at 4:00 PM Carnegie Town Hall, 235 West 10th St., Sioux Falls, SD 57104 1. Call To Order Council Chair Curt Soehl called the meeting to order at 4 p.m. 2. Councilor Remarks Soehl noted that he provided the keynote address at the Fire Cadet Graduation this past week. 3. Presentations A. Experience Sioux Falls BID Ordinance Revisions by Shawn Pritchett, Director of Finance; and, Teri Schmidt, CEO Experience Sioux Falls Presentation: Approximately 15 minutes followed by discussion Pritchett provided background on the current Convention and Visitors Bureau Business Improvement District (CVB-BID), which will be renamed to the Experience Sioux Falls (ESF) BID (the CVB has already been renamed to ESF). In general, the district began in 2011 and provides for a $2 per room per night occupational tax at all hotels with over 40 rooms. The tax is administered and collected by the City of Sioux Falls and paid to the ESF, formerly CVB, for the promotion and marketing of the community and generates about $2M per year. There is a BID Board with members appointed by the Mayor and an annual budget approved by the City Council. The ordinance is being updated to: change the name and corporate status from Convention and Visitors Bureau to Experience Sioux Falls; remove the list of hotels subject to the tax from ordinance; and, provide for the electronic submission of BID Occupational Tax submissions by hotels. There are also proposed changes to the BID Board which include revisions to: its composition, eligibility requirements, and term limits. In 2021 the proposed ordinance revisions were approved by the BID Board and it is expected the changes will come before the Council on June 21st and July 5th. Pritchett also reviewed the corporate transition of ESF. Previously, the organization was a division of the Chamber of Commerce, but is anticipated to transition to independent operations around October of 2022. If passed, a revised Lodging Tax and Visitors Center Use Agreement will be prepared and there will be a potential transfer of assets through the City. Pritchett concluded with a review of Occupancy and Revenues. Discussion followed about: new hotel construction; how boards are composed; the BID appeals process; and why there is a threshold of 40 rooms for the tax.  B. Chapter 121 Medical Cannabis Regulations Update by Stacy Kooistra, City Attorney; Jamie Palmer, Licensing Specialist Presentation: Approximately 15 minutes followed by discussion Kooistra reviewed the timeline surrounding medical cannabis in the state and the City, the number of approved medical cannabis establishments, Sioux Falls- approved dispensaries, and recent revisions to state statutes regarding medical cannabis. Because of the changes to state law, several changes are proposed for the City's Medical Cannabis ordinances. He explained each law and how it impacts the City's ordinance. SB 23 provides additional details and requirements for the practitioner-patient relationship; SB 19 lists the facilities in which a designated caregiver can assist more than five qualifying patients; SB 26 changes the definition of a "practitioner"; SB 4 eliminates the representation of a "likely benefit" from the use of medical cannabis; SB 10 revises identification requirements; and, SB 5 adds vaping to the smoking prohibition (of medical cannabis) on public transportation, adds testing facilities to advertising limitations, and adds possession, transfer, display, or transportation to potential employer prohibitions. For each statute, he explained how the code of ordinances may change. Kooistra concluded the presentation with a review of the status of City Medical Cannabis Licenses. Discussion followed about: identification requirements; the locations of dispensaries; the timeframe for dispensaries to open; the license renewal process; how violations are handled; whether medical cannabis is taxed differently; and, the enforcement of the state laws and city ordinances governing medical cannabis. 4. Public Comment There was none. 5. Executive Session A. Consulting with legal counsel or reviewing communications from legal counsel about proposed or pending litigation or contractual matters pursuant to SDCL 1-25- 2(3) A motion was made by Council Member Jensen and seconded by Council Member Barranco to enter Executive Session at 4:50 p.m. Roll call vote to enter Executive Session. 7 Yes: Barranco, Cole, Jensen, Merkouris, Neitzert, Soehl, Starr; 0 No: (None). Motion Passed. A motion was made by Council Member Jensen and seconded by Council Member Cole to exit Executive Session and adjourn at 5:18 p.m. Voice vote to exit Executive Session. 7 Yes: Barranco, Cole, Jensen, Merkouris, Neitzert, Soehl, Starr; 0 No: (None). Motion Passed. 6. Adjournment The meeting adjourned at 5:18 p.m. Thomas M. Greco, City Clerk