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Posted: April 05, 2024
Rapid City
Agenda Item Summary

Agenda Item Ref. #: LF041024-02

Agenda Item Title:

Authorize Mayor and Finance Director to Sign Second Amendment to Contract for Construction of Public Improvements by Private Developer for Tax Increment District Number Eighty-Four between Yasmeen Dream, LLC and the City of Rapid City

Origination Group:
Legal & Finance Committee
Origination Meeting Date:
04/10/2024
City Council First Reading Date:
04/15/2024
Staff Contact:
Kinsley Groote
Location:
Council Chambers
Agenda Item Summary:
On January 4, 2021, the City approved Resolution 2020-089 creating Tax Increment Financing District Number Eighty-Four. The purpose of the tax increment financing district is to assist in the development of commercial, industrial, and residential property located between E. North Street and Elk Vale Road north of Omaha Street (SD Highway 44). On March 19, 2021, Developer and City entered into a Contract for Construction of Public Improvements by Private Developer for Tax Increment District Number Eighty-four (“Original Contract”). Developer then assigned its rights to payment to Black Hills Community Bank. A First Amendment to the Original Contract was approved on November 9, 2023. That Amendment added some improvements to the list of improvements in Phase 1.

This Second Amendment allows certification of Phase 1 of TIF 84 to happen in two different stages because most of the improvements in Phase 1 have been completed. The TIF funded project costs for Phase 1 are anticipated to be $24,893,248.01. As of January 31, 2024, there was $636,169.75 in the TIF Fund. Once Phase 1-Stage 1 certification is complete, Black Hills Community Bank (Developer’s assignee) will be eligible to receive any money accumulated in the TIF Fund until December 31, 2024. Black Hills Community Bank will not be eligible to receive any money that is deposited in the TIF Fund after December 31, 2024 until such time as Developer receives the City’s Acceptance of all of the improvements in Phase 1-Stage 2.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center

Recommendations:

Origination Recommendation Action:
Approve
Published in 2024 - LF Agenda Items

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