S.D. Admin. R. 41:13:03:02

Current through Register Vol. 51, page 67, December 16, 2024

Section 41:13:03:02 - Procedure to determine compensation to a concessionaire upon expiration of lease or agreement

Prior to the expiration of a concession lease or agreement, the following procedure shall be used:

(1) At least 12 months before expiration of a concession lease or agreement the commission shall determine the fair market value of the possessory interest of the concessionaire in the concessionaire facilities or government facilities pursuant to the end date of the contract and subdivision 41:13:03:04(1). The fair market value shall be determined by an appraisal performed by a qualified appraiser. A copy of the appraisal shall be provided to the concessionaire upon its completion. The department and the concessionaire shall each pay 50 percent of the cost of the appraisal. Upon recommendation of the department, the department and concessionaire shall mutually select the qualified appraiser. If agreement cannot be reached within 15 days, the commission shall have the final determination of the qualified appraiser;

(2) If the department or the concessionaire is not satisfied with the appraised fair market value, either party may request in writing, within 30 days after receipt of the appraisal value, that the fair market value be determined by binding arbitration as provided in § 41:13:03:03; and

(3) Upon receipt of the appraisal or the valuation determined by arbitration, the commission shall prepare and publish a prospectus containing the valuation of the possessory interest of the concessionaire facilities or government facilities in an attempt to find a qualified successor concessionaire.

S.D. Admin. R. 41:13:03:02

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).