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Planning commission approves Amendment 1 to Black Hills Industrial Center project plan, reallocating roads and rail phases
Summary
Commission approved Amendment 1 to the Black Hills Industrial Center project plan, reallocating some phase 1 infrastructure (removing Acer Boulevard and moving rail work to phase 2) and reducing the requested TIF amount by about $6 million.
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The Rapid City Planning Commission on Aug. 21 approved Amendment 1 to the project plan for the Black Hills Industrial Center tax increment financing (TIF) district, reallocating several infrastructure components among project phases and reducing the overall phase‑1 cost estimate.
Mike Dugan of the City Finance Department presented the amendment and explained that Acer Boulevard — originally planned to intersect Highway 79 with a traffic signal — would be removed because the South Dakota Department of Transportation would not allow two closely spaced traffic signals on Highway 79. The amendment replaces Acer Boulevard with a roadway labeled “Capacitor Boulevard” and alters access to Highway 79 via Old Folsom Road. Dugan said the amendment moves rail switches and some utility work from Phase 1 to Phase 2 and shifts some Old Folsom Road utility improvements to later phases, but that no additional funding is being requested; total estimated costs have dropped by “approximately $6,000,000” from original approvals.
Hany Shafi of Grama Design, the applicant’s representative, told the commission the mix of prospective users for the industrial park has changed since the original 2022 approval, noting a previously proposed battery plant did not secure equipment funding but that the applicant is working with “a major one” and that purchase agreements are in process. City staff and the applicant said the Phase 1 water supply and fire‑flow needs are adequate for the known Phase 1 users, and that remaining Phase‑2 and Phase‑3 elements would be triggered if larger industrial users sign commitments.
Fire Department staff and city finance representatives addressed questions about water supply technology for large users such as data centers and battery plants; the Fire Department noted newer closed‑loop cooling approaches can reduce water usage compared with older designs.
Commissioner Eric Hykas moved to approve Amendment 1 to Tax Increment District No. 86; Vince seconded. After discussion and public comment, the commission voted to approve the amendment.
Votes at a glance: Motion to approve Amendment 1 to the Black Hills Industrial Center project plan (TID 86) — mover: Eric Hykas; second: Vince; outcome: approved.

