Agenda Item Title:
17TIF003 - Request to create an economic development tax increment district
Origination Group:
TIF District Review Committee
Origination Meeting Date:
06/27/2017
Stage 2 Group Name:
Planning Commission
Stage 2 Meeting Date:
07/27/2017
City Council Hearing Date:
08/07/2017
City Council First Reading Date:
08/21/2017
Petitioner:
Erik Braun, Creek Drive Apartments LLC
Staff Contact:
Patsy Horton
Location:
Southwest Quadrant of E. St. Charles Street and Creek Drive
Agenda Item Summary:
The purpose of this proposed Tax Increment District is to convert an empty industrial lot into a 91-unit workforce housing apartment complex. The applicants are also seeking, but have not received approval to date, Community Housing Development Program financing through the South Dakota Housing Development Authority. The 43 one-bedroom apartment units are expected to rent for $681 per month and the 48 two-bedroom apartment units expected to rent for $905 per month. The expected rent includes in-unit washer and dryer accommodations for all 91 units. The applicants have indicated that 50% of the targeted tenant income level will be below 120% of the 2017 Area Median Income (AMI) for the Rapid City HUD Metro Area.
Funding Source & Fiscal Impact (if applicable):
| Funding | Cost Center |
|---|---|
| $360,000 | Land Acquisition |
| $5,000 | Appraisal |
| $120,000 | On site Professional Fees |
| $245,000 | On site Drainage, Utilities & Sidewalk Costs |
| $928,574 | Financing Costs |
| $20,000 | Imputed Administrative Fee |
Is Funding Budgeted?:
Not Budgeted
Funding Source & Fiscal Impact Notes:
The Project Plan will be funded by the applicant.
Recommendations:
Origination Recommendation Notes:
Determine if application meets the intent and purpose of Rapid City’s TIF Policy
Options:
Yes: Motion to approve creating district and associated project plan. Committee task complete.
Yes: Motion to approve creating district and associated project plan with changes to allowable costs. Committee task complete.
No: Motion to deny
Applicant may appeal motion to deny creating the district to the Planning Commission. If Planning Commission votes to deny creating district, request fails. (Not appealable to Council.)