Yankton City Commission evaluates $1.7M sales tax rebate for mall redevelopment

During the February 10, 2025, Regular Commission Meeting in Yankton, South Dakota, city officials engaged in a robust discussion regarding the ongoing development of the local mall and the financial incentives tied to attracting new retailers. The meeting highlighted the complexities and challenges of revitalizing the mall, which has seen significant changes over the past year.

A key topic of discussion was the proposal for an additional $1.7 million in sales tax rebates to support the recruitment of new national retailers. City Commissioner Ryan raised concerns about the potential impact on existing local businesses, questioning whether the new retailers would compete with established stores and lead to further economic leakage. The city manager and development officer responded that the negotiations with potential retailers are still in progress, and they cannot disclose specific names or details due to confidentiality agreements.

Commissioner Sartre expressed skepticism about the precedent being set by repeatedly increasing financial incentives for the mall project, noting that the initial agreement had already set a significant benchmark. He emphasized the importance of ensuring that taxpayer dollars are used judiciously and questioned whether the city should continue to fund a project that may not yield the anticipated returns.

Supporters of the project, including local business owners and community members, voiced their optimism about the mall's revitalization. They highlighted the positive changes already seen, such as the reopening of the movie theater and the addition of popular retailers like Hobby Lobby and Marshalls. Proponents argued that the investment in the mall is crucial for long-term economic growth and community development.

The meeting also touched on the broader implications of public-private partnerships in economic development. While some commissioners expressed concerns about the risks associated with taxpayer-funded incentives, others pointed out that such investments are necessary to attract businesses to a market like Yankton, which may not be appealing to retailers without financial support.

As the commission deliberated, it became clear that the decision to approve further funding would require careful consideration of both the immediate benefits and the long-term impact on the community. The discussions underscored the ongoing balancing act between fostering economic growth and protecting the interests of local businesses and taxpayers.

In conclusion, the meeting highlighted the complexities of economic development in Yankton, with city officials grappling with the challenges of revitalizing the mall while ensuring that taxpayer funds are used effectively. The outcome of the proposed incentives will likely shape the future of retail in the community and set a precedent for similar projects in the region.