Yankton commission approves $3.3 million sales-tax rebate cap for mall redevelopment

The Yankton City Commission voted 8–1 to raise the cap on an existing, performance-based sales-tax rebate for the Yankton Mall from $1,700,000 to $3,300,000 over the same 10-year term, keeping the rebate at the city’s 2% portion of eligible sales tax.

City Manager Amy Leon explained to the commission that South Dakota state law lets municipalities offer sales-tax rebates to encourage retail development and that the city’s portion of sales tax from eligible retailers would be rebated only after the tax is generated and verified. “The sales tax rebate is a tool that the South Dakota codified law makes available for cities to utilize,” Leon said during staff remarks.

The rebate increase was requested by mall owner Matt Evans and his representatives to cover additional build-out and tenant improvements needed to recruit national retailers. Community economic development director Dave Mingo told the commission the mall is currently about 71% leased and that the new anchor tenants under development — including Hobby Lobby, Marshalls and 5 Below — are expected to open by the holiday season. Staff recommended…