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Posted: January 10, 2025
Rapid City
Agenda Item Summary

Agenda Item Ref. #: LF011525-15

Agenda Item Title:

Presentation by Mike Dugan TIF Planner and Consideration to Approve City of Rapid City Loan Funding for TIF #87 in the Amount of $3,068,000

Origination Group:
Legal & Finance Committee
Origination Meeting Date:
01/15/2025
City Council Hearing Date:
01/21/2025
Staff Contact:
Mike Dugan
Location:
Council Chambers
Agenda Item Summary:
The City is proposing providing the financing for the Tax Increment District #87 loan. The loan will be in the amount of $3,068,000 and will have a personal guarantee from the Developer. An Assignment of the Tax Increment funds will be taken for repayment. Interest rate of 7% fixed. Invoices will be collected to verify expenses. This tax increment district was approved 11/21/2022 by the City Council. The TIF loan will be for Phase I and Phase II of the development. The purpose of the project is to extend sewer mains north of Seger Drive to the Dakota Fields Soccer and west of N. Elk Vale Road. Connecting the soccer fields to sanitary sewer would eliminate the need to pump holding tanks, reduce oversize costs payable out of the City’s funds, and install sanitary sewer in anticipation of additional development in the area. The Project Plan includes two phases with total expenses of $6,235,330. Capital Costs represent up to $2,913,640 in project costs. The Plan also includes up to $150,000 in Professional fees, up to $291,363 in Contingency Costs, and up to $2,880,327 for interest expenses at a 7% interest rate.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center

Recommendations:

Origination Recommendation Action:
Acknowledge

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