Posted: April 21, 2022
Rapid City
Agenda Item Summary

Agenda Item Ref. #: 22TI002 - Black Hills Industrial Center

Agenda Item Title:

22TI002 - Resloution to Create a Tax Increment Finance District and a Resolution to adopt a Project Plan for the Black Hills Industrial Center

Origination Group:
Planning Commission
Origination Meeting Date:
04/21/2022
Stage 2 Group Name:
Legal & Finance Committee
Stage 2 Meeting Date:
05/11/2022
City Council Hearing Date:
05/02/2022
City Council First Reading Date:
05/16/2022
Petitioner:
Dream Design International, Inc for Black Hills Industrial Center, LLC
Staff Contact:
Sarah Hanzel, Planning Projects Division Manager
Location:
SD Highway 79 and Old Folsom Road
Agenda Item Summary:
The applicant has submitted a TIF Application to support the development of an Industrial Center to be known as Black Hills Industrial Center. The purpose of this Tax Increment District is to extend and develop a regional economic center for the community and provide expanded City infrastructure into the south side of Rapid City. Following review by the TIF Committee on March 1, 2022 the applicant received additional comments from City Staff with recommendations regarding infrastructure pricing estimates, and the likely need for looping and other infrastructure to ensure the soundness of the City’s water system as a result of the development within the proposed District. The applicant responded to those comments with a revised application to account for the comments. At the same time, the applicant updated the cost estimates to respond to price changes in the market as a result of current inflation. As a result, the total project cost has increased from about $46 million to about $78 million; however, the overall scope of the project has not changed substantially despite the nearly 70% increase in costs.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center

Recommendations:

Origination Recommendation Notes:
If the Planning Commission recommends approval, approve with Stipulations ----------------------------------------------------- Planning Commission continued to the April 21, 2022 Planning Commission Meeting: 4/7/2022; Planning Commission approved with stipulations: 4/21/2022
City Council Recommendation Notes:
City Council Set for Hearing: 5/2/2022; City Council approved with stipulations: 5/16/2022

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