Agenda Item Title:
24TI004 - Resolution for Amendment #1 to Project Plan for TID No. 88 - Country Road West Extension
Origination Group:
Planning Commission
Origination Meeting Date:
08/08/2024
Stage 2 Group Name:
Legal & Finance Committee
Stage 2 Meeting Date:
08/28/2024
City Council Hearing Date:
08/19/2024
City Council First Reading Date:
09/03/2024
Petitioner:
Indigo Design LLC
Staff Contact:
Mike Dugan, Tax Increment Finance Planner
Location:
Western terminus of Country Road, west of the intersection of Brooke Street
Agenda Item Summary:
The purpose of this Tax Increment District was to construct a collector street at the current terminus of Country Road. The proposed tax increment district is 23 acres in size. The Project Plan includes one phase with total expenses of $1,332,000.29. Capital Costs represent up to $743,846.50 in project costs to construct approximately 900 lineal feet of a collector street and associated costs including public utilities, private utility extension fees, paving, sub-grade preparation, minor grading and street lighting. This Tax Increment District is to support development of residential lots comprised of (7) 2-unit lots, (33) single family lots, and (72) multi-family units. The project is proposed to occur in one phase. This Tax Increment District is classified as Local.
Amendment #1 to the Project Plan will increase project costs by 33% from $1,332,000.29 to $1,773,086.1. South Dakota Codified Law 11-9-23 provides for plan amendments, including additional project costs, provided the proposal does not exceed thirty-five percent of the original project plan costs and the additional project costs are incurred before the five-year time limit. When the project was bid in 2024, the project costs were higher than the original 2023 engineer’s estimate.
The applicant intends to use most of the 35% allowable increase per SDCL 11-9-23 by increasing contingency costs and interest expense. The contingency costs increased despite the project being bid and costs nearly fixed. Interest expense increased by $292,634.40. Only interest actually accrued will be paid by the TID and interest expense cannot be reallocated.
**UPDATE**It was the verbal desire of the 08/28/2024 Legal and Finance Committee to add a $15,000 admin fee payable to the County for this amendment. An updated Project Plan is attached that reflects this admin fee on Page 9.**
Funding Source & Fiscal Impact (if applicable):
Funding | Cost Center |
---|---|
Recommendations:
Origination Recommendation Action:
Approve
Origination Recommendation Notes:
Planning Commission Approved: 8/8/2024
Legal and Finance Committee want to add a $15K Admin Fee payable to the County for this amendment. An updated Project Plan is attached that reflects this admin fee on Page 9.
City Council Recommendation Action:
Approve
City Council Recommendation Notes:
Set for Hearing to be heard at the September 3, 2024 City Council meeting: 8/19/2024; City Council Approved: 9/3/2024