Rapid City acknowledges revised TIF policy and approves city loan for youth soccer infrastructure TID 87

The Rapid City Legal and Finance Committee on Jan. 15, 2025 acknowledged a revised draft tax increment financing (TIF) policy and approved City loan funding for Tax Increment District (TID) 87, described in the agenda as the youth soccer field infrastructure project.

TIF planner Mike Dugan presented a draft of the revised TIF policy and described proposed changes, saying, "This is a draft, working copy right now." Dugan summarized key updates: elimination of the separate TIF committee so applications would be reviewed by the Planning Commission and City Council; formal inclusion of a process for written comments from county and school district officials to be attached to staff reports; a provision to allow a portion of TIF proceeds to be used to purchase land to incentivize infill development; and revised fees and loan terms.

Dugan outlined fee and loan changes included in the draft: raising the application fee from $2,500 to $5,000 for requests up to $10 million in capital improvements and charging 0.1% of costs above $10 million (not to exceed $15,000); increasing the city's imputed administration fee from $20,000 to $25,000; and setting the maximum TIF loan interest rate to the Wall Street Journal prime rate plus 0.75 (the draft replaces a prior fixed 9% rate). He also said the draft includes a clearer definition and length of affordability for housing projects (rental projects must…