The Black Hills Playhouse has moved -- but only as far as circuit court. 

The 63-year-old theater group is suing the state Game, Fish & Parks Department and Gov. Mike Rounds over a disputed lease at its historic location in Custer State Park.

Jerry Wheeler of Custer, president of the Black Hills Playhouse, said the suit, filed in Custer County, asks the court to declare that the playhouse has a renewed 10-year-lease with the state at its current location. It also asserts that the state, not the playhouse, is responsible for a sewer upgrade that GF&P officials estimate could cost $300,000.

That much-disputed sewer project, which would tie in with a new system planned for the nearby Center Lake campgrounds in the park, has been a key point of dispute between the state and the playhouse.

Playhouse officials have said they couldn't afford the $300,000 bill and believed they could find solutions for much less. Now, in the legal action, they contend that the sewer upgrade should be the state's responsibility anyway, under the terms of a 10-year lease that ended this year, Wheeler said.

"The current lease says we're responsible for the buildings and the state is responsible for the infrastructure, including sewer, water, lift stations," Wheeler said. "We're saying that not only do we have the right to another 10-year-lease but that they're responsible for taking care of that $300,000, not us."

State parks director Doug Hofer of Pierre declined comment on the lawsuit. Joe Kafka, press secretary for Gov. Mike Rounds, said the governor doesn't comment on litigation.

But Wheeler had quite a bit to say, after a season with 14 sold-out performances, compared to two in 2008, and growing frustration by playhouse board members about what they see as inflexible negotiating positions by the state.

In mid-September, playhouse officials said they had received notice from the state that playhouse was in default on its lease, which was set to expire at the end of that month. Playhouse officials contend that the state hadn't given proper notice of default and that the 10-year lease automatically renewed because of it.

After negotiations with the state continued to drag, court actions seemed justified, Wheeler said. 

"We've been in negotiations with the state for about a year, and it just didn't seem to be progressing," he said. "So we filed this to get a move on. We've got to get moving on next season."

The governor and parks officials have asked for a better business plan by the playhouse and improvements to the facilities. The playhouse has tried to respond to those demands, Wheeler said. The playhouse made $200,000 in improvements to the facility in recent years and plans to make more.

But it needs a lease and some assurance that it will be allowed to remain where it is, Wheeler said. That remains an issue. The governor told the Journal earlier this year that he wants the playhouse to remain in the park but also believes it would be better at another location.

"I don't see how it works there," he said, pointing to the existing sewer problems, aging buildings and relatively isolated location.

Wheeler says it has worked for a long time and can work better with cooperation from the state. 

"The governor says it's not sustainable, but it's been there for more than 60 years," Wheeler said. "If you walk up a main street in South Dakota and there's a business that's been there for more than 60 years, it's doing pretty well."

Contact Kevin Woster at 394-8413 or kevin.woster@rapidcityjournal.com