July 9, 1984  

Mr. C. A. (Chuck) Schuknecht 
South Dakota State Fair Manager 
Post Office Box 1275 
Huron, South Dakota 57350

OFFICIAL OPINION NO. 84-29

Authority to lease State Fair property

Dear Mr. Schuknecht:

You have requested an official opinion from this office in regard to the following factual situation:

FACTS: 

The state fair commission has been asked by a Huron resident to enter into a lease of state fair property in order to construct and operate a water slide and related concessions during the summer months as well as at fair time.  The Huron resident proposes that the lease be five years in duration and that she receive three five-year options to renew the lease.

Based on the above facts, you have asked the following questions:

QUESTIONS: 

1.  May the state fair commission enter into such a five-year contract? 

2.  If a five-year contract is issued, can it include five-year options in any number?

IN RE QUESTION NO. 1:

SDCL 1-21-6 gives the state fair commission complete authority to supervise and control the state fairgrounds.  SDCL 1-21-7 gives the state fair commission the power to enter into contracts.  In view of these statutory provisions, it is clear that the state fair commission has the legal authority  to enter into a five-year contract to construct and operate a water slide on state fair property.  The answer to question No. 1 is, therefore, YES.

IN RE QUESTION NO. 2:

Based on the analysis set out above, the answer to question No. 2 is also YES.

Respectfully submitted,

Mark V. Meierhenry
Attorney General