Posted: July 30, 2025
Rapid City
Agenda Item Summary

Agenda Item Ref. #: LF073025-010 - 25TI009 - Resolution 2025-081

Agenda Item Title:

LF073025-10 - 25TI009 - Resolution 2025-081, a Resolution Creating Marshall Heights Tract Tax Increment Financing District

Origination Group:
Planning Commission
Origination Meeting Date:
07/24/2025
Stage 2 Group Name:
Legal & Finance Committee
Stage 2 Meeting Date:
07/30/2025
City Council Hearing Date:
08/04/2025
Petitioner:
AMM Rapid City LLC and City of Rapid City
Staff Contact:
Mike Dugan, Tax Increment Finance Planner
Agenda Item Summary:
The Marshall Heights Tax Increment Financing District (TIFD), will aid in helping bring four new fast-food restaurants and commercial retail space to North Rapid City. Three of the fast-food restaurants will be new to the Rapid City market. The project will be located at 1902 North Lacrosse St. Total estimated cost of construction is $27,375,000. All existing structures currently on this property will be demolished and removed for the new development. The TIFD will provide funding for the removal of all structures from this location and also provide funds for public improvements; including a possible right turn lane on North Lacrosse Street. Construction is estimated to be completed by fall/winter of 2026. The TIFD will support expanded economic opportunities via new employment opportunities and increased property and sales taxes with the new development. The applicant for this project is AMM Rapid City, LLC, hereafter known as developer 1. Developer 1 total TIF request, with interest, is $5,130,220. The capital costs of the request total $2,750,000. The developer has provided an itemized breakdown of what they believe is TIF eligible that totals $3,869,771.46. Also, to be included in this TIFD request is the purchase of 120 Knollwood Dr. in North Rapid City. The purchase price of this property is $1,800,000 and will be used as a City of Rapid City police station. The building will be purchased by the City of Rapid City, hereafter known as developer 2. Developer 2 will be reimbursed up to $1,150,000 of the purchase price of the property and improvements to be made. Developer 2 total TIF request, with interest, is $3,615,622. The total TIFD request, with interest and administrative fees, is $8,785,842

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center

Recommendations:

Origination Recommendation Action:
Approve
Origination Recommendation Notes:
Planning Commission recommend approval of the resolution to create a Tax Increment Financing District to the City Council Option #2: 7/24/2025 (6-3)
City Council Recommendation Action:
Approve
City Council Recommendation Notes:
City Council Approved (8-2): 8/4/2025

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