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Posted: April 25, 2025
Rapid City
Agenda Item Summary

Agenda Item Ref. #: LF043025-08

Agenda Item Title:

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

Origination Group:
Legal & Finance Committee
Origination Meeting Date:
04/30/2025
City Council Hearing Date:
05/05/2025
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 single-family 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. 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 request is for the first amendment to the Developer Agreement for TIFD #92. On April 8, 2025 the developer entered into a Contract for Construction of Public Improvements by Private Developer for tax increment financing district number ninety-two. The Developer bid the improvements in the project plan prior to the Public Works department approving the construction plans for the improvements. Rebidding the improvements after City approval of the improvements would delay the completion of the improvements until 2026, which would not be in the best interests of the parties. The Developer agrees that any increases related to additional work or cost differences between the plans bid on April 1, 2025 and any City-approved plans shall not be considered as an expenditure eligible for reimbursement from the TIFD fund.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center

Recommendations:

Origination Recommendation Action:
Approve

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