Pirate’s Pointe Mini Golf could be staying in private hands for years to come — but Storm Lake officials still have questions to resolve before a new lease can move forward.
The Storm Lake City Council voted unanimously Monday night to set a public hearing on a proposed 15-year lease with Severson Properties LLC to operate, manage and maintain the miniature golf course on city-owned property.
The hearing is scheduled for 5 p.m. Monday, Nov. 2, in the City Council Chambers at City Hall. The public will have an opportunity to comment on the proposal before the council considers whether to approve it, make changes or abandon the agreement.
City Development Services Specialist Lee Dutfield said the proposed public-private partnership would keep the attraction operating while placing responsibility for its upkeep and improvements on the private operator.
Under the proposed agreement, Severson Properties would be responsible for the course’s operation, maintenance and capital improvements. The city says the arrangement would preserve a family-friendly recreational attraction without creating a financial burden on city tax revenues.
But council member Don Piercy Jr. raised questions about the lease’s terms, including how the city would ensure it receives a sufficient public benefit in exchange for leasing its property.
One concern involved the proposed $1 a year lease and whether the agreement adequately guarantees benefits for Storm Lake residents. Piercy emphasized that simply identifying economic development or recreational benefits may not be enough, noting that the lease should include measurable commitments, potentially involving operating hours, discounts or school field trips.
Dutfield said the city had consulted an attorney specializing in the issue and believed the agreement met public-purpose requirements by supporting recreation, community health and tourism.
Piercy also questioned the lease’s financial provisions, including whether a percentage of earnings designated for maintenance should be calculated from gross earnings rather than net earnings. Staff said they would follow up on the language and indicated the course’s finances and upkeep would be monitored.
Council member Maggie Martinez said she has already seen noticeable progress at the property.
Pirate’s Pointe — located at 1520 E. Lakeshore Dr., adjacent to the Sunrise Pointe Golf Course clubhouse — is an 18-hole, pirate-themed miniature golf course featuring a shipwreck, waterfall and cave. The city owns the underlying land, while Reel Time Rentals previously owned the miniature golf improvements under an existing lease.
Earlier this month, the council approved the transfer of Reel Time Rentals’ interest in the facility to Severson Properties and terminated the former lease, clearing the way for negotiations on a new agreement.
