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Posted: March 06, 2025
Rapid City
Agenda Item Summary

Agenda Item Ref. #: LF031225-12

Agenda Item Title:

Request for Mayor and Finance Director to Sign Loan Documentation between the City of Rapid City and Eastern Slope Land Corp.

Origination Group:
Legal & Finance Committee
Origination Meeting Date:
03/12/2025
City Council Hearing Date:
03/17/2025
Petitioner:
Finance Office
Staff Contact:
Mike Dugan
Location:
Council Chambers
Agenda Item Summary:
The City of Rapid City will be providing the tax increment financing district #88 loan in the amount of $951,682.59. The City Council approved the Country Road West Tax Increment District (“TIFD 88”) on May 22, 2023 by adopting Resolution 2023-032. The City Council also approved the Project Plan at its May 22, 2023 meeting by passing Resolution 2023-033. The purpose of this TIFD is to construct approx. 900 lineal feet of a collector street (Country Road) and associated costs including public utilities, private utility extension fees, paving, subgrade preparation, minor grading and street lighting. On 09/03/2024, the City Council approved Amendment #1 to the Project Plan. Amendment #1 increased the project costs by 33%. With interest, the TIFD total amount is $1,773,086.13. The project was bid and the original costs approved came in higher than the original estimates. There is a new developer, Daene Boomsma, that has taken over this project and LLC associated with it from the original developer. The transfer of the LLC documentation has been provided to the City. The developer, Daene Boomsma, will personally guarantee this loan. The estimated interest the City will collect is $786,403.54. Interest rate of 7% fixed.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center

Recommendations:

Origination Recommendation Action:
Approve
Origination Recommendation Notes:
Action: Approve authorizing Mayor and Finance Director to Sign Loan Documentation Between the City of Rapid City and Eastern Slope Land Corp.
Published in 2025 - LF Agenda Items
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