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Posted: December 04, 2017
Rapid City
Agenda Item Summary

Agenda Item Ref. #: 17TI004 - Promise Road

Agenda Item Title:

17TI004 - Resolution to Create Promise Road Tax Increment District and Approve Project Plan

Origination Group:
Planning Commission
Origination Meeting Date:
11/09/2017
Stage 2 Group Name:
Legal & Finance Committee
Stage 2 Meeting Date:
11/29/2017
City Council Hearing Date:
11/20/2017
City Council First Reading Date:
12/04/2017
Petitioner:
KTM Design Solutions, Inc for North Atlantic Developers, LLC
Staff Contact:
Patsy Horton, Long Range Planning Manager
Location:
Northwest of the intersection of Catron Boulevard and Mt. Rushmore Road
Agenda Item Summary:
The Tax Increment District will capture incremental tax funds in order to construct and connect a proposed collector road in lieu of using the outdated current road alignment. The realignment of the existing road will create a community-desired alignment through the vacant property on a highly visible gateway corridor. The proposed district will stimulate economic development by the construction of new professional offices and retail facilities. Anticipated employment at these proposed facilities will add 300 new full time jobs, with an annual payroll of more than $16 million. The Tax Increment Funds will construct Promise Road, adjust existing utilities and road alignments located at the northern connection of Promise Road, and adjust signal alignments at Promise Road and Catron Boulevard as necessary. The proposed district overlays TID 70; TID 70 will receive all incremental payments generated by the proposed district until TID 70 certified expenditures are fully repaid. Thereafter, the incremental tax revenue is then directed to the proposed district expenditures.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center
$2,262,470 Promise Road Street Improvements
$500,000 Promise Road/Golden Eagle vertical realignments
$100,000 Catron Boulevard Traffic signal adjustments
$572,494 Professional fees/Contingencies
$2,087,076 Financing (6%)
$5,522,040 Total TIF Financed Expenditures
Funding Source & Fiscal Impact Notes:
$20,000 City of Rapid City – Imputed Administrative Fee

Recommendations:

Origination Recommendation Action:
Approve
Origination Recommendation Notes:
On September 27, 2017, the Tax Increment Financing Committee recommended to create the district and develop the Project Plan. Planning Commission recommended to approve: 11/09/2017; Legal and Finance Committee recommended to approve (3-1 with Armstrong, Drury and Drew voting yes and Scott voting no): 11/29/2017
City Council Recommendation Action:
Approve
City Council Recommendation Notes:
City Council approved (7-2 with Scott and Laurenti voting no): 12/04/2017