Posted: July 26, 2016
Rapid City
Agenda Item Summary

Agenda Item Ref. #: PW072616-08

Agenda Item Title:

Authorize Mayor and Finance Officer to Sign a Purchase Agreement for Well Lot between Terracotta Estates Homeowners Association and City of Rapid City.

Origination Group:
Public Works Committee
Origination Meeting Date:
City Council Hearing Date:
Engineering / Terracotta HOA
Staff Contact:
Wade Nyberg / Stacey Titus
Mondo Street / Prairiefire Subdivision
Agenda Item Summary:
Terracotta Estates HOA owns and operates a water system for the Prairiefire Subdivision, which is southeast of Rapid City, near the Water Reclamation Facility. As part of the East Rapid City water expansion, the City plans to construct a water main to serve this subdivision. The current water source (the well on this property) has serious water quality issues, and the State DENR approached the City to provide water. The funds for the project are included in the State Revolving Fund loan that the City received. The purchase of the well lot was not initially planned, but the HOA has received notice that a tax sale certificate holder is intending to take tax deed to the lot. The unpaid property taxes for the well lot were from a time before the HOA took ownership. (The HOA is a nonprofit corporation that is tax exempt.) Third party ownership of the lot would force the HOA to either purchase the poor quality water from the new owner or find another water source on short notice. If another source was found (i.e. a neighboring sanitary district), the need for the City project and the City’s SRF funding package may be jeopardized. As such, the Engineering Division is asking for approval to purchase the lot for the amount of back taxes, with a portion of the cost to be recouped from selling the lot after the project has finished.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center


Origination Recommendation Action:
Origination Recommendation Notes:
If approved, an addition will need to be made to the bill list, so that a check may be issued following the meeting.

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