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Council approves two TIF resolutions for Palace City Brewery and Mad Garage
Summary
Council approved Resolution R2024-69 (Palace City Brewery) for a $500,000 grant-pass-through TIF and Resolution R2024-70 (Mad Garage) for a $330,206 TIF; both are structured as 20-year grant pass-throughs with developers required to certify costs and waive discretionary formulas.
The Mitchell City Council approved two tax-increment financing (TIF) resolutions intended to subsidize local development projects. Staff said both proposals meet the city’s TIF handbook and state statute requirements and presented project cost breakdowns and projected increment revenues.
Palace City Brewery sought a $500,000 grant-pass-through TIF. Staff reported the application originally was submitted in February and that the developer had worked with the railroad on boundary issues; staff said the project shows eligible expenses above the requested amount and projected increment expected to cover the request. Supporters described restoration of a dilapidated building and the project’s contribution to downtown tourism. Council voted to approve R2024-69.
The council also approved R2024-70 to create TIF District No. 39 for Mad Garage, a new-construction project at the bypass and Main Street. The developer requested $330,206 in a 20-year grant structure; staff said the project expects to expand services and double employment. Public commenters raised concerns about whether some projects are economically infeasible without subsidies and whether TIFs shift tax burdens to schools or counties; applicants and counsel responded that TIFs are intended to attract investment, create jobs and broaden the tax base. The Mad Garage resolution passed with one abstention.
What happens next: Developers must certify eligible costs, waive discretionary formulas and proceed with required documentation. Staff noted that if Department of Revenue classification changes (e.g., local vs. economic-development TIF), the TIF could dissolve per city policy.
