Proposal for TIF-backed climbing gym at former Fountain Springs site fails after commission split

The Rapid City Planning Commission on April 24 considered, and did not recommend, a tax-increment finance (TIF) request to provide a $300,000 grant to help construct an indoor rock-climbing facility on a parcel that was formerly part of the Fountain Springs golf course.

City staff described the project as an approximately 18,685-square-foot indoor climbing gym with fitness rooms, classes, retail and leagues. The applicant proposed a TIF‑style economic-development grant of $300,000 to help bridge financing; staff’s analysis projected the full project would cost about $6.3 million and that the property-tax increment over the allowable district life could produce about $1.4 million in property taxes. The staff projection showed the applicant’s TIF request (with interest and administration) would total about $472,000 and estimated an eight-year payback based on the property tax increment.

The Opportunity Capture Fund Committee had recommended a TIF route to avoid drawing on the committee’s remaining grant funds; committee members told staff they believed a TIF structure would be a better match for repayment. Staff also described that the site uses existing infrastructure and did not require new long-range utility extensions.

Commission discussion focused on whether the project merited public subsidy. Commissioners questioned job-creation metrics (the applicant estimated four full‑time and four part‑time positions), the facility’s destination-style location (outside major retail corridors), and whether the project met local TIF policy goals for job creation and broader public benefit. Commissioner Vince Faddoll cited the TIF policy metric tying principal-value to job creation and said the project did not meet that threshold.

A motion to create a district and approve the project plan was made and seconded; a roll-call vote was taken. The motion failed (roll-call result: 1 in favor, 7 opposed). As a result, the commission did not recommend TIF support and the applicant would need to pursue private financing or alternative grant sources if it wishes to proceed.

What was proposed: A medium-sized climbing facility (50-foot high wall), expected to add community recreation options and modest employment, with applicant financing plans that included a primary lender and potential SBA involvement. What the commission decided: Commissioners were unconvinced a public subsidy via TIF produced sufficient public benefit or job creation to justify the reimbursement risk.