Agenda Item Title:
22TI001 - Resolution to create a Tax Increment District and approve a Project Plan for the Block 5 Project
Origination Group:
Planning Commission
Origination Meeting Date:
02/10/2022
City Council Hearing Date:
02/22/2022
City Council First Reading Date:
04/04/2022
Petitioner:
C.R. Lloyd Associates, Inc for Block 5, LLC
Staff Contact:
Sarah Hanzel, Planning Projects Division Manager
Location:
525 St. Joseph Street
Agenda Item Summary:
The proposed Block 5 project is a mixed-use development focused on the prominent corner of 6th Street and Saint Joseph Street in downtown Rapid City. The Project includes a mix of commercial space, residential units, and hotel components to bring excitement and activity to an underutilized site currently used as a surface parking lot. The purpose of the proposed district is to encourage redevelopment, stimulate economic growth, and stimulate private investment leading to significant additional tax revenues in the long-term. The applicant is requesting up to $8,750,000 in Tax Increment District funding for Project Costs, and interest costs estimated at a maximum $5,954,052.95. The amount of interest paid will depend on the timeline of the project being paid off. The TIF proposal is structured as a grant pursuant to South Dakota Codified law 11-9-15; however, many of the project components qualify in the traditional TIF policy
Funding Source & Fiscal Impact (if applicable):
| Funding | Cost Center |
|---|---|
Recommendations:
Origination Recommendation Action:
Approve
Origination Recommendation Notes:
Planning Commission approved (7-1-1): 2/10/2022
City Council Recommendation Action:
Approve
City Council Recommendation Notes:
City Council continued to 4/4/2022 City Council meeting: 3/7/2022; City Council approved (9-1 with Evans voting no): 4/4/2022