Agenda Item Title:
17TI002 - Resolution Creating the Village on Monroe Tax Increment District and a Resolution approving the Project Plan
Origination Group:
Planning Commission
Origination Meeting Date:
05/04/2017
Stage 2 Group Name:
Legal & Finance Committee
Stage 2 Meeting Date:
05/31/2017
City Council Hearing Date:
06/05/2017
City Council First Reading Date:
05/15/2017
Petitioner:
NeighborWorks Dakota Home Resources
Staff Contact:
Patsy Horton, Long Range Planning Manager
Location:
612 Dilger Avenue
Agenda Item Summary:
The purpose of this proposed Tax Increment District is to convert an empty residential lot into five new housing units. The anticipated listing price for the Village on Monroe units is $109,900 for the one-bedroom homes and $139,900 for the two bedroom homes. These prices will allow for housing costs ranging from 18% to 25% of total income for households at $46,966, 80% median income. A purchase price of $109,900 would allow a household with an income as low as $28,500 to afford a home with an expected housing cost of 30% of total income. The proposed district will provide funding for the land acquisition costs, appraisal and associated financing expenditures for a total district cost of $97,400.
Funding Source & Fiscal Impact (if applicable):
| Funding | Cost Center |
|---|---|
Funding Source & Fiscal Impact Notes:
The applicant will fund the Project Plan. If approved, property owners within the Rapid City Area School District will pay that portion of the increment needed to fund the School District’s $4,992.58 portion of the increment generated from this TID. The additional tax levy estimated for the life of this district is 0.000742 per $1,000 in valuation. The estimated cost for a $200,000 home is $0.15 per year or $2.00 for the 13 year life of the proposed TID.
Recommendations:
Origination Recommendation Action:
Approve
Origination Recommendation Notes:
Planning Commission determined that the proposal meets the criteria identified in SDCL 11-9-8 regarding blight and/or economic development and recommends approval of creating the Village on Monroe Tax Increment District and approval of the associated Project Plan to provide five workforce housing townhomes as revised and linked: 5/4/2017; Legal Finance Committee recommended approval (4-1): 5/31/2017
City Council Recommendation Action:
Approve