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Posted: March 28, 2025
Rapid City
Agenda Item Summary

Agenda Item Ref. #: LF040225-06

Agenda Item Title:

Authorize Mayor and Finance Director to Sign Development Agreement for Tax Increment Financing District Number Ninety-Two with Ennen Development LLC

Origination Group:
Legal & Finance Committee
Origination Meeting Date:
04/02/2025
City Council Hearing Date:
04/07/2025
Petitioner:
Finance Office
Staff Contact:
Mike Dugan
Location:
Council Chambers
Agenda Item Summary:
This TIFD was originally approved by City Council on 09/16/2024. The TIFD boundary is made up of the Hillsview Estates, future Hillsview, and future Ennen Subdivisions. In total there are 211 new lots proposed within the TID boundary; 156 of which are associated with the future Ennen Subdivision. The development within the Ennen Subdivision will consist of 156 total lots comprised of 72 single-family homes and 84 scaled down homes. Reservoir Road will be extended to the future intersection of E. Anamosa Street. A portion of the future E. Anamosa Street; along the section line within the TIFD boundary, will be graded. Total project costs, including financing, is $7,817,989. The TIFD boundary is 79.7 acres. Amendment #1 was approved for this TIFD on 02/18/2025 by City Council. Original approval of Tax Increment District #92 was to be classified as Affordable Housing. It has been identified that not all homes within the district boundaries are meeting the terms of the Affordable Housing Classification, as originally intended. The updated classification of this District will now be Local. This change in classification changes how the TIFD will be treated for state-aid to education purposes. Local TIFD increment valuation is included in the calculation of school district local effort, meaning the county auditor will be required to impose an additional school levy on all real property within the impacted school district. There will be a total of 211 single-family residences built within the TID boundaries. 156 are Developer controlled, as demonstrated in the Project Plan, and will be priced at or below the first-time homebuyer purchase price limit being used by the South Dakota Development Authority as of the date the house is sold. The remaining 55 single-family residences are not 100% controlled by the Developer and will now be priced above the South Dakota Development Authority first-time homebuyer purchase price. There will no longer be a Guarantee of Affordable Housing for all homes to be built within the TIFD boundaries. There will be a requirement that the 156 homes that are Developer controlled will be at or below the first-time homebuyer purchase price limit being used by the South Dakota Development Authority as of the date the house is sold.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center

Recommendations:

Origination Recommendation Action:
Approve

Attachments & Links to Download:

pdf LF040225-06 TIFD No 92 Developer Agreement

Published in 2025 - LF Agenda Items
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