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Committee approves amendment to TIF district 92, reclassifies project and flags school-district levy effects
Summary
The committee approved Amendment No. 1 to the project plan for Tax Increment Financing District No. 92, changing the district classification from affordable housing to local and confirming inclusion of Reservoir Road work; staff presented estimated levy impacts for school-district taxpayers.
The Rapid City Legal and Finance Committee approved Amendment No. 1 to the project plan for Tax Increment Financing (TIF) District No. 92 on Feb. 12, changing the district’s classification from “affordable housing” to “local.” Committee members and staff reviewed what the reclassification means for project scope and for Rapid City School District levies.
Community Development Director Fisher and TIF planner Mike Dugan described the amendment as necessary because the project’s boundary includes higher-priced homes that exceed the statutory price threshold for an affordable-housing classified TIF. The amendment keeps the TIF’s eligible costs — including completion of a section of Reservoir Road and grading for future East Anamosa — and maintains an estimated total eligible project cost just over $7.8 million with an amortization period intended to pay off by about 2039.
Dugan said the boundary contains a mix of housing: a developer-controlled area planned for 56 single-family homes (84 of which are smaller homes priced around $220,000) and an adjacent section where 55 homes are expected to exceed the state affordable-housing price limit, which by statute ties affordable classification to a maximum sale price of $385,000 for first-time homebuyers in this application.
Because the district’s classification will be local rather than statewide affordable housing, Dugan said the Rapid City School District must be “made whole” locally for general and special education levies. He presented an illustrative estimate for school-district levy effects: for 2024, roughly $0.81 per $100,000 of assessed owner-occupied value (and about $1.52 per $100,000 for commercial/industrial); a 2031 projection offered about $3.25 per $100,000 of owner-occupied value. He emphasized those are estimates and that exact impacts are difficult to calculate.
Dugan confirmed the local classification affects city and county residents who live within the Rapid City School District, including portions of Meade County. Council members asked staff to clarify the geography of the school district and how many parcels or residents in Meade County might be affected; staff said they would provide additional maps and numbers.
A motion to approve Amendment No. 1 to the TIF project plan (Resolution No. 2025-005) was moved, seconded and carried by the committee. Staff said the change preserves TIF funding for Reservoir Road completion, other infrastructure within the approved boundary and a financing plan amortized over the approved term.
