In a recent government meeting, officials approved two resolutions aimed at establishing a tax increment financing (TIF) district to support the development of Camden Heights, a new affordable housing project in Rapid City. The project, which will consist of 252 apartment units, is strategically located west of East North Street and north of East Anamosa Street, an area identified as critically in need of affordable housing.

The TIF district, covering approximately 48.77 acres, will not only provide housing but also include a solar field designed to reduce utility costs for residents. Of the total units, 51 will be dedicated to senior living, addressing the diverse needs of the community. The average rent for these units is projected to be $1,255, inclusive of utilities, with a focus on affordability for those earning 60% of the area median income (AMI).

Mike Dugan, the city’s TIF planner, presented the project details, highlighting that the planning commission had thoroughly vetted the proposal prior to the meeting. The total estimated cost for the project is around $80 million, with the city proposing to finance approximately $12.4 million through TIF. This financing is expected to be recaptured by the city for future infrastructure projects, including road and utility maintenance.

Construction is anticipated to begin in late 2026, with full stabilization and leasing expected by 2028. The TIF district is projected to have a payoff period of 19 years, with an anticipated base value of over $9.5 million once completed. The approval of this project marks a significant step towards addressing the urgent need for affordable housing in the area, while also promoting sustainable energy solutions through the integration of solar power.