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Planning Commission approves rezoning for Black Hills Area Habitat townhomes with plan-development designation

3112226 · April 24, 2025
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Summary

The commission rezoned two parcels at 1727 Creek Drive to medium-density residential with a plan-development overlay to enable a 41–townhome owner-occupied affordable housing project proposed by Black Hills Area Habitat for Humanity.

The Rapid City Planning Commission voted April 24 to rezone two parcels at 1727 Creek Drive to Medium Density Residential (MDR) with a plan-development designation to enable a proposed affordable homeownership project by Black Hills Area Habitat for Humanity.

Planning staff presented the rezone request without a recommendation, noting the site is currently split between General Commercial and Office Commercial zoning and the city’s future land use map shows Mixed Use Commercial. Staff highlighted that the comprehensive plan encourages flexible application of future land use categories to support affordable infill housing, and noted a transit stop is within a quarter-mile, a relevant proximity for housing projects.

Scott Engman, executive director of Black Hills Area Habitat for Humanity, spoke for the applicant and described plans for approximately 41 townhome dwellings intended for owner occupancy and priced to reach first-time buyers and core workers. Engman said the organization has a $3,000,000 federal grant through the office of U.S. Senator Mike Rounds that is earmarked for the project.

Commission discussion addressed compatibility with surrounding industrial and commercial uses, management and maintenance of common areas, homeowner association (HOA) governance, lot-size requirements for townhome lots (staff noted a standard townhome lot minimum of 4,000 square feet), and whether a plan-development designation should be added to ensure detailed review of lot lines, landscaping and open space. Habitat representatives said they intend to stand up an HOA, that Habitat would help to “stand up” the HOA for a three- to five-year transition but not remain the long-term HOA manager, and that covenants have been updated to address past maintenance problems.

Commissioner Karen Bowman moved to approve the rezones (RZ008 and RZ009) to Medium Density Residential with a plan-development designation; Commissioner Vince Faddoll seconded. The commission approved the motion; staff recorded that Commissioner Mike Kwasney voted no.

Key points recorded in the hearing: - Applicant: Black Hills Area Habitat for Humanity plans roughly 41 townhomes designed for affordable ownership; Habitat described a $3,000,000 federal grant to support the project. - Zoning change: From Office/General Commercial to MDR for the subject parcels; the plan-development overlay will require subsequent review of lot sizes, landscaping, driveway locations and open space when a plan development application is submitted. - Governance: Habitat said it will establish an HOA to maintain common areas and will phase out direct management over several years.

The commission’s action was a recommendation to the Rapid City Council (per standard process for rezonings); the plan-development designation will require the applicant to bring further plans for detailed review prior to final plat/building permits.