STURGIS, S.D. – The Sturgis City Council Monday night voted to approve a resolution on how to go forward regarding a $501,694 bill from American Flat Trackers or AFTE.
A letter sent earlier this month from AFTE continues to demand money from the city for what it says is the remaining deficit from the 2024 Sturgis TT Race, which lost half a million dollars in its inaugural year. AFTE alleges the city has failed to uphold its contractual obligation found in the co-host agreement. Furthermore, AFTE says the council’s cancellation of this year’s race is a breach of the contract and they gave the city 30 days to remit the payment.
Sturgis City Attorney Eric Davis wrote Resolution 2025-32, which recommends the council do not pay that amount.
Davis says it’s his understanding AFTE is open to engaging into settlement discussions despite the fact they set a 30-day deadline to receive the city’s payment.
Ward 3 alderman Mark Chaplin wanted to remove a section in the resolution that had the city continuing to have “good-faith negotiations” regarding AFTE seeking use of the half-mile track at the Sturgis Fairgrounds.
Alderman Jim Thompson joined Chaplin in a motion to approve the resolution as long as it included no discussions with AFTE regarding the fairgrounds while this dispute continues.
Davis says he will provide AFTE a copy of the resolution and update the council on what he gets back.
If the matter goes to litigation, Davis says attorney Mike Wheeler of DeMersseman, Jensen, Tellinghuesen and Huffman L.L.P. of Rapid City will represent the city in the matter.
Davis says Mr. Wheeler has been kept updated on the progress of the matter.
