During the summer months, Veterans Park on Main Street is a great place to set up and Jam. There is even electricity that can be arranged through the city. Don't let your idea die. It does take a lot of work but MC needs a place for local talent to perform and grow.
Paid venues have a place but every musician that gets paid for performing, started someplace.
Be prepared though. Your friends will be excited and willing at the onset but most will fall along the wayside. Hopefully, if you are fortunate, a handful of dedicated individuals will stick with you.
I wish you every success with this endeavor. There are talented people in custer county. You should try and find them an furnish them a place to find.
Advice I would offer, for what it is worth; Don't make it exclusionary. Welcome all skill levels, all genres and encourage new people to participate.