The Sturgis City Council has postponed a decision on whether to extend a lease for city property after questions arose over confidential contract terms.
On Monday, council members considered granting Dixxon Supply, LLC a 13‑month extension on its Main Street location, allowing the flannel retailer to operate through 2026. The city subleases the building to Dixxon Supply for $50,000 annually, but some council members questioned how much the city itself pays to lease the property.
Councilmen Terry Jensen and Jesse Blakeman said they were reluctant to approve the extension without knowing whether the city is losing money. Rally Sponsorship Director Lance Scherer told the council the city’s lease terms are confidential and could not be discussed publicly.
City Administrator Aaron Jordan has previously criticized confidential contracts, saying they violate state open records laws. City Attorney Eric Davis advised the council to table the matter until more information is gathered. The public hearing will be rescheduled for Dec. 15.
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