City Council approves TIF District 11 and developer agreements for housing project

During the recent Vermillion City Council meeting held on May 6, 2025, significant steps were taken towards enhancing local housing infrastructure and community safety through a series of resolutions and agreements.

One of the key discussions centered around the second reading of Ordinance 15-29, which involves the rezoning of a property located at 2532 East Main Street from the Natural Resource Conservation District (NRC) to a Residential District (R2). This change, requested by landowner Will Roth, received unanimous support from the council, reflecting a growing commitment to address housing needs in the area. The council's approval of this ordinance is a crucial step in facilitating residential development, which is increasingly important given the rising demand for housing in Vermillion.

In addition to the zoning changes, the council reviewed a resolution to adopt the project plan for Tax Increment Financing (TIF) District Number 11. This plan, which encompasses a $6 million request for infrastructure improvements, aims to support a new development on Lot 3 of Madison Park Addition. The project is expected to include the construction of approximately 118 housing units, comprising studio, one-bedroom, and two-bedroom apartments. The TIF funding will be utilized for essential site preparations, including paving, drainage, and utility connections, which are vital for the successful development of the area. The anticipated completion of Roosevelt Street and the associated water and sewer connections are expected to significantly enhance local infrastructure.

Furthermore, the council supported the Stencil Group's application for funding from the South Dakota Housing Development Authority. This funding, part of a $100 million initiative aimed at improving affordable housing infrastructure, will assist in covering a portion of the costs associated with the development. The loan, which carries a low interest rate, is designed to facilitate the construction of necessary infrastructure that will ultimately benefit the city.

The meeting also included discussions on a developer's agreement with Stencil Group, ensuring that all infrastructure improvements are completed prior to the construction of the new apartment buildings. This agreement outlines the responsibilities of the developer and the city, ensuring that the necessary public infrastructure is in place to support the new housing units.

Lastly, the council renewed its agreement with the University of South Dakota to provide law enforcement powers to the university police department through the Vermillion Police Department. This updated agreement, which extends the partnership for five years, aims to enhance safety on campus and in the surrounding community by fostering collaboration between the two departments.

Overall, the council's decisions during this meeting reflect a proactive approach to addressing housing shortages and enhancing community safety, laying the groundwork for future development and collaboration in Vermillion. As these projects move forward, they are expected to have a lasting positive impact on the community, particularly in meeting the housing needs of residents and students alike.