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Council awards construction contract for BOC housing project, approves TIF plan and greenlights ball‑field paving
Summary
The council accepted the low bid for the BOC residential development, approved a related tax‑increment financing plan and awarded a separate paving contract for the ball‑field parking lot, moving forward on infrastructure for a planned new neighborhood.
The City of Beresford moved forward on a multi‑part development plan, awarding the main construction contract for the BOC residential development, adopting a tax‑increment financing (TIF) plan for the project area, and approving a separate paving contract for the ball‑field parking lot.
Council action: At the meeting the council accepted Metro Construction’s low bid of $2,355,079.26 for the BOC residential development project. The contract covers mass grading, sanitary, water and storm sewer installation, curb and gutter, street construction, and associated site work; it also includes reconstruction/upgrading of Gun Club Road from Third Street to the ball field entrance. Council members said the bid was substantially below the engineer’s estimate and recommended proceeding once Metro provides standard bonds and insurance documents.
TIF plan: Planning and zoning had previously approved the city’s TIF plan for “Block 4” (the development area); councilors then approved the formal TIF plan required by state statute. The adopted plan uses grant funds from South Dakota housing and a loan from First Dakota to pay upfront infrastructure costs and anticipates lot sales and incremental property‑tax revenues will repay the loan over time.
Ball‑field parking: Merle Royce Paving was awarded the paving contract for the ball‑field parking lot at $134,420 after a separate competitive bid opening. The contract includes asphalt placement and pavement markings and has a May 31 substantial‑completion date so the work can be available for summer events.
Why it matters: Together, these decisions convert engineering and planning steps into construction commitments that will create new lots for affordable housing, complete street and utility access, and provide improved community recreation parking. Council discussion stressed that actual timing depends on lot sales, the developer’s pace, and delivery of bonds/insurance by the contractor.
Follow up: Staff will execute contracts once Metro and Merle Royce furnish required bonds and insurance. The city’s finance staff will continue to coordinate with First Dakota and South Dakota Housing on the grant and loan paperwork that underpins the TIF repayment structure. Councilors indicated they expect the infrastructure work and lot releases to accelerate home building within 12–24 months if market conditions hold.
Ending: The council’s approvals mark a transition from planning to construction for a multi‑lot housing project and related community improvements; city staff will return with finalized contracts and a timeline for lot sales and street openings.
