Planning Commission approves reclassification of TID No. 92; staff says school-district taxpayers will carry some cost

The Rapid City Planning Commission on Jan. 23 approved an amendment to the project plan for Tax Increment District (TID) No. 92, changing the district classification from “affordable housing” to “local.” The change was presented by Mike Dugan, the city’s TIF planner, during the commission’s meeting. Mike Goller made the motion to approve the amendment and Kelly seconded; the motion carried.

Why it matters: The reclassification alters how tax increment is calculated for parcels inside the TID boundary and shifts the mechanism that makes school districts whole for lost property-tax revenue. Staff said that under the local classification, some of the difference that would otherwise be covered by state affordability programs will instead be borne by Rapid City school-district residents.

City presentation and numbers: Mike Dugan told the commission the TID was originally set up to extend Reservoir Road and grade a section of the future East Anamosa to open a subdivision planned for 156 single-family homes. According to Dugan, the…