Planning commission approves TID 83 amendment to buy lots for future fire station and park

The Rapid City Planning Commission on Nov. 7 approved an amendment to Tax Increment District 83 that reallocates project funds and adds roughly $951,000 in project costs to enable the city and developer to purchase three lots for future civic uses.

Mike Dugan, finance, told commissioners the amendment increases project costs by about 35% (from roughly $2.7 million to $3.6 million). The city and the developer would co‑apply to purchase three lots — one at approximately $600,000 intended as a future fire station site (with a small police office area) and two lots totaling about $585,000 for a future city park and park improvements. The presentation said appraisals and a nearby comparable sale informed negotiated prices and that surplus TID funds would be reallocated; the purchases must be made and funds used by October 2025 per TIF timing rules.

Dugan said the city would finance approximately $2.4 million at a fixed 7% interest rate, and staff projected the TID would still pay off in about 2029 given current performance. Commissioners asked whether the park funds would be for capital development (not long‑term operations), whether the 7% rate is fixed (yes) and how the city/developer relationship changes; staff said the city would hold the loan and act as co‑developer until the loan is paid off.

Commissioners voted to approve the amendment with the staff‑recommended timeline and stipulations. Staff said the amendment will allow the city to secure land now and pursue design and incremental park/facility work next year, while later council action will be required to finalize the loan and co‑developer arrangements.