Planning commission approves TIF overlay for Homestead area to fund fire station, park and possible street work

The Rapid City Planning Commission on April 10 voted to create a tax increment financing district overlaying the existing Homestead (TID 83) area and approved a project plan that would use increment revenue to fund a new fire substation with limited police office space, a city park and potential improvements to Homestead Street.

Finance staff presented the proposal as an overlay to TID 83, which staff said is ahead of original development projections and estimated to pay off in 2027. "Today we're going to discuss, a new proposed tax increment financing district that would overlay the current, Homestead Street ex extension district, TIF 83," Finance staff member Mike Dugan told the commission during his presentation.

The proposal allocates approximately $7,000,000 toward construction of a fire department substation that includes a small amount of office space for the Rapid City Police Department, and $2,000,000 toward a new city park. Staff said remaining eligible project costs, including potential…