Planning commission approves Amendment No. 3 to TIF No. 84 to extend Homestead Street and add drainage work
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Summary
The Rapid City Planning Commission approved Amendment No. 3 to TIF District No. 84 on Oct. 23, reallocating existing district funds to extend Homestead Street to Valley Drive and construct regional drainage improvements including Detention Pond 221.
The Rapid City Planning Commission on Oct. 23 approved Amendment No. 3 to Tax Increment Finance (TIF) District No. 84 — the East Anamosa Street water-main extension district — to reallocate unused funds and add Homestead Street extension and regional drainage work, including construction of Detention Pond 221.
Mike Dugan of the finance department outlined the proposal, saying the amendment does not expand the district boundary or request new funds but reallocates roughly $459,000 of previously identified developer-interest financing to cover Homestead Street pavement, utilities, street lighting conduit and associated grading and drainage work. He said the district has performed ahead of conservative estimates and that previously certified 2024 values were used to model amortization conservatively.
The amendment will finance pavement, curb and gutter, utilities along the Homestead extension to Valley Drive, and construction of the detention pond and drainage improvements identified in the project plan. Staff said there are no new funds requested; instead the change reallocates unused budgeted elements within the existing TIF plan. Staff also noted the amendment will fully allocate the district’s authorized financing so no further projects can be added within the district.
Dugan walked commissioners through the updated amortization schedule. Using the certified 2024 valuations and a conservative 3% growth assumption, staff anticipate developer 1’s portion paid off in 2031 and developer 2 (the city) beginning to collect increment after that, with an estimated payoff in 2034 under the conservative assumptions; staff noted actual district valuation is expected to exceed the conservative projection.
Commissioners and county reviewers who saw the proposal praised the proposed Homestead connection for improving local traffic connectivity and reducing pass-through on local streets such as Diamond Ridge Boulevard. The county also endorsed the drainage improvements as beneficial to downstream properties. Commissioner Eric (chair) moved approval; Jeff seconded. The commission approved Amendment No. 3.
