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Council approves $12K sale of Main Street parking lot for Mitchell bar owner's patio addition

With the City Council's approval to accept the only offer on the parking lot, the owner of Jades Bar is set to purchase the lot next to the business for $12,000.

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Shown here is the parking lot where the owner of Jades Bar is seeking to purchase from the city of Mitchell to construct a patio next to the 107 N. Main St. building in downtown Mitchell. (Sam Fosness / Republic)

A small lot on the south end of Mitchell's Main Street will be changing hands after a local bar owner’s $12,000 offer on the property was accepted on Monday.

The Mitchell City Council approved the offer on the city-owned lot that sits to the north side of Jades Bar, which Mayor Bob Everson previously indicated will be transformed into an outdoor patio. Anisa Deinert, owner of Jades Bar, made the lone offer on the property that was previously a public parking lot in downtown Mitchell.

“It would be a nice addition, and it would put it back on the tax rolls,” Everson said during the September council meeting when the property was declared surplus to position the city to sell the parking lot. “It would be nice to let them use it for business versus the city having it as just a parking lot.”

While parking has become a commodity in downtown Mitchell for some Main Street business owners and apartment managers, Council President Kevin McCardle said there are plenty of public parking options available in the area surrounding the south end of Main Street, pointing to public parking lots along the west side of Jades Bar, including the lot across the street from the Department of Public Safety building next to Zesto and the lot neighboring Veteran’s Park.

“I’ll make a motion to accept the offer. We have plenty of parking available in that area,” McCardle said.

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The city listed the parking lot on the market with realtor, Colleen Hunt, of Mitchell Realty. Although a council-approved appraisal board made up of independent local residents determined the appraised value of the lot was $40,000, Hunt said she assessed it on her own as well. In the end, the lot will go to Deinert for $12,000, less than half of the appraised value that three-person board determined.

“I did my own current market analysis by using courthouse information. She (Deinert) is the only offer that has come in, and I had several people contact me but never put down an offer,” Hunt said, noting she’s had the parking lot listed for about three months.

For council member Jeff Smith, any opportunity to get property back on tax rolls “makes sense.”

“There is a public parking lot on the east side of Main Street as well, and to me it doesn’t make any sense to hang onto additional parking right on Main Street when there is access within a half-block of the area,” Smith said.

Considering the portion of the parking lot that Deinert is purchasing sits next to a vacant lot where Palace City Pawn Shop used to be located before the century-old building was demolished two years ago, City Attorney Justin Johnson said some of the adjacent property will revert back to the owners of the lot, which property records show is Austin McPeek. According to Johnson, the decision to eliminate the parking lot by selling it to Deinert is why the remaining portion of the neighboring vacant lot will revert back to McPeek.

"It will revert back per the deed restriction that stipulates when the city stops using the area as a parking lot, it automatically reverts back to the owner of this lot," Johnson said.

Since the former Palace City Pawn Shop was demolished roughly two years ago, the lot has sat bare. Prior to the demolition, McPeek and the city worked out an agreement for McPeek to cover the costs of razing the former Main Street staple over the next several years.

Related Topics: BOB EVERSON
Sam Fosness joined the Mitchell Republic in May 2018. He was raised in Mitchell, S.D., and graduated from Mitchell High School. He continued his education at the University of South Dakota in Vermillion, where he graduated in 2020 with a bachelor’s degree in journalism and a minor in English. During his time in college, Fosness worked as a news and sports reporter for The Volante newspaper.
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