Vermillion council approves Dakota Days permits, dissolves TIF 6, OKs new TIF funding and park contract

The Vermillion City Council approved a series of event permits, tax-increment financing actions and capital projects during its regular meeting.

The council granted the Dakota Days executive committee a special permit to exceed permissible noise levels by up to 50% for the Dakota Days street dance and approved a street closure for the event. City staff said the dance is scheduled for Thursday, Oct. 2, with the permitted noise window from 7 p.m. to 10:30 p.m. and a street-closure window from 3 p.m. to midnight to allow setup and cleanup. Caitlin Stobner, speaking for the applicant, was listed on the permit application packet. A councilmember who noted continuing constituent concerns about bass and sound travel but said last year’s event improved moved to approve the permit; the motion carried.

The council also approved a public-display fireworks permit for a July 4 event near the South Polaris parking lot, with a rain date of July 5. The council approved the fireworks permit after staff confirmed insurance and fallout-zone notifications and said property owners in the fallout zone had been consulted.

On development finance, the council adopted a resolution to dissolve Tax Increment Financing District No. 6 (the Bliss Point development TIF), returning roughly $30.4 million of taxable value to the general tax rolls. City staff described the district as paid off earlier than its statutory maximum term; the payoff enabled reimbursement of early-city advances and distribution of unused tax proceeds to other taxing entities. Council members said the early payoff saved on interest costs.

The council also approved a developer agreement to pass through up to $6 million in TIF revenues for the Stencil Group project (Tax Increment Financing District No. 11). Staff said the agreement establishes that payments to Stencil Group are solely from taxes generated by the project and do not create city general-obligation debt. The project plan presented earlier calls for more than 230 multifamily units on an 8.4-acre site on the south side of Roosevelt Street and includes construction of public infrastructure, including completion of Roosevelt Street between Norbeck and Crawford. The council approved the agreement after staff confirmed the city’s role is a pass-through and that payments are limited to actual TIF receipts or a 20-year term, whichever comes first.

For local capital projects, the council awarded the Jolly Park improvements contract to LT Companies (South Dakota) for a base bid of $189,116. Staff described the park as a small “pocket” park at the former Jolly School site, with a 20-by-24 shelter, a playground sized for 2–5 year olds (wood/pine structure), synthetic turf play surfacing (infill-free), a bike rack and decorative shelter elements. Construction cannot commence prior to June 30 and must be completed by Sept. 30, staff said. Staff recommended the award and noted the project is included in TIF No. 8 project funding.

Other items the council approved included the second reading and adoption of Ordinance No. 15-32 (rezoning three parcels on Adams Street from R-2 to R-3), the award of multiple fuel quotes (low bidders: New Century FS for several items and Stern Oil for one item), and adoption of the 2025–2029 Capital Improvement Plan. The council postponed the second reading of Ordinance No. 15-34 to the June 16 meeting after staff raised a potential conflict with the city’s home-rule charter and asked the city attorney to review.

Routine administrative actions included approval of an airport hangar lease assignment from Chuck Donnelly to Oracle Enterprises LLC (no cost to the city), award of fuel contracts as noted, and approval of invoices payable (one councilmember abstained on a payment to an organization that posed a potential conflict). City staff said police, fire, EMS and street departments were notified of event permits and had no objections.

Public comment included a petition from a local property owner, Don Rykoff of Alvarado Properties, who raised ongoing safety concerns about a deteriorated temporary barrier and a steep sidewalk ramp on East Main Street near several downtown businesses; the council said staff would follow up.

The council did not allocate additional funds during the meeting but placed items on future agendas, including appointments to commissions and the postponed ordinance hearing, and staff said the capital plan will inform the 2026 budget process.

Votes at a glance (selected): - Ordinance No. 15-32 (rezoning, second reading): adopted (roll call reported as 5 yes, 0 no) - Noise permit for Dakota Days (special permit to exceed sound levels up to 50%): approved (voice vote) - Dakota Days street closure (Main Street and Market Street, Oct. 2, 3 p.m.–midnight): approved (voice vote; mover: Councilmember Cheeseman; second: Councilmember Price) - Fireworks public-display permit (July 4, South Polaris parking lot): approved (voice vote; mover: Price; second: Julia) - Airport hangar lease assignment (Donnelly → Oracle Enterprises LLC): approved (voice vote) - Resolution to dissolve TIF District No. 6 (Bliss Point): adopted (voice vote) - Developer agreement for Stencil Group (TIF No. 11, up to $6,000,000 pass-through): approved (voice vote) - Jolly Park improvements contract (LT Companies): awarded ($189,116, completion by Sept. 30) - Capital Improvement Plan 2025–2029: adopted (voice vote) - Ordinance No. 15-34 (second reading): postponed to June 16 (motion to postpone approved)

Council members present at roll call included Taylor, Lever, Price, Holland, Helwig, Cheeseman and Murrah; staff presenters included City staff member Jose and City Manager John (city staff).