Posted: September 21, 2017
Rapid City
Agenda Item Summary

Agenda Item Ref. #: 17TIF004 - Promise Road - Creation of an Economic Tax Increment District

Agenda Item Title:

17TIF004 – Request to create an economic tax increment distric

Origination Group:
TIF District Review Committee
Origination Meeting Date:
09/28/2017
Stage 2 Group Name:
Planning Commission
Stage 2 Meeting Date:
11/09/2017
City Council Hearing Date:
12/04/2017
City Council First Reading Date:
11/20/2017
Petitioner:
The North Atlantic Developers LLC
Staff Contact:
Patsy Horton
Location:
Northwest Quadrant of US Highway 16 and Catron Boulevard
Agenda Item Summary:
The Tax Increment District will capture incremental tax funds in order to construct and connect a proposed collector road in lieu of using the outdated current road alignment. The realignment of the existing road will create a community-desired alignment through the vacant property on a highly visible gateway corridor. The proposed district will stimulate economic development by the construction of new professional offices and retail facilities. Anticipated employment at these proposed facilities will add 300 new full time jobs, with an annual payroll of more than $16 million. The Tax Increment Funds will construct Promise Road, adjust existing utilities and road alignments located at the northern connection of Promise Road, and adjust signal alignments at Promise Road and Catron Boulevard as necessary. The proposed district overlays TID 70, 76 and 77. TID 70, the original underlying district will receive all incremental payments generated by the existing districts and the proposed district until TID 70 certified expenditures are fully repaid. The incremental payments from the proposed district will also repay TID 76 and TID 77, before any incremental payment is directed to the proposed district expenditures.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center
$2,262,470 Promise Road Street Improvements
$100,000 Catron Boulevard Signal Adjustments
$500,000 Promise Road / Golden Eagle Road Adjustments
$574,494 Prof Fees, Cont Costs, Nec/Conv Costs
$2,445,340 Financing / Interest (5.0%)
$5,882,304 Total TIF Financed Expenditures
Funding Source & Fiscal Impact Notes:
.

Recommendations:

Attachments & Links to Download:

Committee Task:
Determine if application meets the intent and purpose of Rapid City’s TIF Policy.

Options:
1. Motion to approve as submitted. Committee task complete.
2. Motion to approve with modifications. Committee task complete.
3. Motion to deny.
Applicant may appeal denial motion to the Planning Commission. If Planning Commission
votes to deny creating district, request fails (not appealable to Council.)

Next step: If approved, staff will develop a project plan for consideration by Planning Commission and City Council.

17TIF004 Proposal - Attachments & Links:
17TIF004 Preliminary Review
  pdf 17TIF004 Vicinity Map (1.66 MB)
pdf 17TIF004 Aerial Photo (1.08 MB)
pdf 17TIF004 Proposed TIF Boundary  (8.97 MB)
pdf 17TIF004 Public Improvements Map (855 KB)
pdf 17TIF004 Master Plan (w/o TIF) (2.42 MB)

17TIF004 Financial Data - Attachments & Links:
  pdf 17TIF004 TIF Project Costs (493 KB)
  pdf 17TIF004 TIF Cash Flow (497 KB)

17TIF004 Application Information - Attachments & Links:
  pdf 17TIF004 TIF Application (4.77 MB)
  pdf 17TIF004 TIF Checklist (846 KB)
  pdf 17TIF004 TIF Application Exhibits (3.81 MB)

Other Resources - Attachments & Links:
  pdf TIF Guidelines (232 KB)
  pdf SDCL 11-9 – Tax Increment Financing (41 KB)
  pdf 2016 Tax Valuation Spreadsheet (36 KB)
  pdf US16, Catron, Promise Road Study Alignment – 2004 (2.12 MB)  
  pdf US16, Catron, Promise Road Study Alignment - 2016 (739 KB)

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