The city’s historic Japanese Gardens will be in private hands of a developer who plans to renovate the dance hall.
Flandreau’s city council on May 3 approved a 99-year lease with Parlly Group, managed by Kyle Haug. The lease payment is $250 a year and the requirement that he carry property and liability insurance.
Because Haug intends to invest hundreds of thousands of dollars in the deteriorating building that has been a dance hall, the city agrees to pay $200,000 if it terminates the lease early. That amount declines by $10,000 a year for 10 years.
The lease also requires Haug to invest a minimum of $300,000 into the building in the first three years of taking possession, and he is charged with the responsibility of maintaining the building once it is renovated.
Haug, who also is restoring buildings downtown, has said he wants to preserve the only dance hall left in Eastern South Dakota and plans to upgrade it so that people will want to rent it again. He has fond memories of going to the pavilion over the years, a Flandreau tradition.
The city has had minimal requests to rent the building in the last few years, meaning it has not generated money. The building is in need of structural repairs and renovations that would allow it to be attractive for events again, the city has said.

The council unanimously approved the lease. Alderman Karen Tufty said it is hard to let go of the control, but it will provide a future for the building. “Thank you for taking this over for us. I know it would probably crumble (otherwise).”
Alderman Brad Bjerke said he likes Haug’s approach. “I think it’s a good way forward for that structure to remain an historic, important part of the park.”
In other council business,
•The city approved an off-sale liquor license transfer from Haug to Carleen Wild Wilson, who has purchased Wind Street Station, 105 N. Wind St. The business will be called Sioux River Spirits.
•Summer aquatic center employees will be paid more this season to keep up with rates being paid in nearby communities. The council approved a 10 percent pay increase, meaning a first-year lifeguard would make $10 an hour instead of $9, for example.
The pay had not been modified since 2017.
The aquatic center still needs additional lifeguards before it opens May 31, will be training staff and is looking for guards, in particular, who are certified to teach swimming lessons. The aquatic center, which was not open last year because of COVID-19 restrictions, teaches about 250 children lessons during the summer.
•Council members heard a summary of the annual financial report which shows the city has a net position of $13.66 million.
•Council members approved a concession stand bid to Tom Hansen, for the summer use in the park. He will pay $334 for the season.
•Council members elected Bjerke as the council president and Bob Pesall as the vice president.