Council creates Tax Increment Financing district for 'Peaceful Pines' senior housing project

The Mitchell City Council approved a resolution creating Tax Increment Financing (TIF) District No. 43 and accepted the project plan submitted by the developer for a proposed senior living complex, referred to in materials as "Peaceful Pines."

City staff described the planned development as including 21 assisted living units, 18 independent living units and 16 memory care units; staff said the developer projects roughly $1.5 million in payroll related to the development and the creation of more than 30 jobs. Staff told the council the application materials and project plan were reviewed by the TIF review committee and meet the city’s TIF handbook and state statute criteria; staff also said the state provided a preliminary classification proposing the project be treated as an economic development TIF.

Staff presented an eligible project cost summary the packet described as totaling approximately $2.89 million (project figures in the packet include the developer grant and administrative fees). The project plan in the packet included a projected increment calculation indicating projected taxable increment above the requested TIF amount. The TIF agreement terms presented to council included a 20‑year term (or until increment is paid), no interest applied to the TIF, developer reporting requirements and city administrative fees of $375,000 as described in the project budget summary.

Council members moved and approved the resolution establishing TIF No. 43 and authorizing the project plan; staff said the county will hear related county notices the next day and that the developer will proceed with the timeline provided in the project plan.

Ending

Staff said project documents will be finalized with developer agreements; no additional council action was reported at the meeting beyond creation of the TIF and acceptance of the project plan.