Building Permits and Sale Tax Receipts: City Issues Latest Reports

The City issued the 2022 Building Permit Report and also received the September and October sales tax receipts reports from the State of South Dakota.  Here are City releases on both items:

CITY ISSUES 2022 BUILDING PERMIT REPORT

**Valuation total reaches second-highest level ever;

**Activity slows in second half of year

**10 projects valued over $5 million

RAPID CITY, SD—Building permit valuation totals for 2022 reached the second-highest level in the City’s history.  The City issued 2,866 building permits last year with a combined valuation total of $364.6 million ($364,635,584).

            Most of the higher-valued permit activity was issued by the City’s Building Services Division in the first six months of the year.  The permit and valuation total for last year compares to 4,166 permits issued in 2021 with a record valuation total of $393.5 million.

            The City has achieved $300 million or more in building permit valuation in six of the past seven years, with the exception of 2020 which was impacted by the COVID-19 pandemic.  Since the City first surpassed the $300 million mark in building permit valuation in 2016, the City has issued 27,488 permits with a combined valuation total of nearly $2.3 billion ($2,298,707,746).

            “The overall valuation total was solid for last year,” said Community Development Director Vicki Fisher.  “Activity leveled off during the second half of the year, with the impacts of inflation, supply costs and availability as some of the main reasons.

            “We will be monitoring those impacts as we move into 2023.  There are many projections for huge growth in our community in the years ahead and with it is the continuing need for housing, retail and commercial development.  The opportunities are there and we look forward to working with developers, contractors and residents on meeting the needs of our growing community.”

            The City issued 45 building permits last year with a valuation total exceeding $1 million, including 10 over $5 million in valuation.  By comparison, the City issued 61 permits in 2021 with a valuation total exceeding $1 million, including 10 over $5 million in valuation.

Below is a list of the top 10-valued permits issued in 2022.

1. SOUTH MIDDLE SCHOOL: Rapid City Area School District with Scull Construction as the contractor for the new South Middle School at 2 Indiana Street.  Permit valued at $61 million.
2. MONUMENT HEALTH: Monument Health with MJ Construction as contractor for the Rehab and Critical Care Hospital at 2115 Promise Road. Permit valued at $24,655,300.
3. CATHEDRAL ADDITION: Cathedral of Our Lady of Perpetual Help with Rangel Construction Company as contractor for the Cathedral addition at 520 Cathedral Drive. Permit valued at $8,378,000.
4. THE RADIANT: CB Rapid City Holdings with RCS Construction as contractor for The Radiant at 28 Racine Street.  Permit valued at $8.3 million

5/6/7)  TALLGRASS APARTMENTS: Tallgrass Apartments II LLC with Mountaintop Construction Inc. as contractor for three of the projects Tallgrass apartment buildings located at 2246, 2258 and 2270 E. Philadelphia Street. Permits valued at $7.5 million each

8)   SURGERY EXPANSION: Monument Health with Layton Construction as contractor for phase two surgery expansion at 353 Fairmont Boulevard.  Permit valued at $7,463,000.

9)  HEARTLAND HEIGHTS APARTMENTS:  CR Lloyd Associates with Lloyd Companies as contractor for the Heartland Heights Apartments at 413 Degeest Drive.  Permit valued at $5,416,035

10)   MIDCONTINENT ALTERATIONS: Midcontinent Communications with Sunkota Construction as contractor for facility alterations.  Permit valued at $5.4 million

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CITY’S LEGAL & FINANCE COMMITTEE

RECEIVES SALES TAX REPORTS

FOR SEPTEMBER & OCTOBER

Sales tax receipts reach record levels

for both months;

Rates hold steady with inflation

RAPID CITY, SD—Rapid City’s sales tax receipts for September and October came in at record levels and are holding close to the consumer price index numbers for the Midwest region.

           The City’s tax receipts for October came in at $3.15 million, a record for the month, eclipsing the previous mark set in October 2021 of $2.99 million.  September receipts came in at $3.42 million, also a record.  The previous September record was set the previous year with $3.17 million in sales tax receipts in September 2021.

          Through 10 months of 2022, City sales tax receipts total $31.76 million ($31,769,316), a 7.39 percent increase over the first 10 months of 2021 when City sales tax receipts totaled $29.58 million ($29,582,094).  The consumer price index for the Midwest Region, which includes South Dakota, was set at 7.4 percent for October.

           “The sales tax receipts continue to hold steady against the rate of inflation,” said the City’s interim finance director, Tracy Davis. “Spending in the city remained solid as we moved into the fall months. We continue to experience good numbers and are currently holding the line with the inflationary numbers.”

           Davis said the final two months of receipts will determine how the city fared in overall sales tax receipts, especially when taking into account the rate of inflation.

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