Vermillion council approves variances, annexation and authorizes notice to electric cooperative

The Vermillion City Council on Feb. 17 approved a series of land‑use actions that clear the way for housing development and expanded city boundaries while also authorizing the city to notify the local electric cooperative of its intent to serve newly annexed properties.

Setback variance (1619 East Main) Staff presented a variance request to reduce a west side yard setback from 8 feet to 7 feet so owners Robin and Michelle Moore could build an attached garage. Jose, a city staff member, told the council the requested 4‑inch change was the minimum variance needed to accommodate the 24‑foot garage plan and that staff recommended approval. After brief questions about neighbor notification, the council approved the variance by voice vote.

Parking variance and affordable housing (Madison Park) The council then considered a petition from GA Hahn Development to reduce required off‑street parking from 89 spaces to 81 for a three‑building multifamily development in the Madison Park addition. Jose told the council the applicant had previously reduced its shortfall from 17 to 8 spaces by changing the site plan and that staff believed the reduction would comply with the ordinance’s intent. Jim Peterson of the Vermillion Chamber told the council the project involved tax‑credit housing and supported the variance. Staff later confirmed the development plan includes 34 dwelling units. A council motion to approve the variance carried by voice vote.

Annexation and electric service The council approved a resolution to annex Bunker Track 1 (and related Munger tracks) north of Highway 19 and south of the Vermillion River into the city’s Natural Resource Conservation (NRC) zoning. Jose said that while annexation would increase the city’s property tax base and allow future utility extensions, the city has no cost estimates yet for extending utilities north of Highway 19.

Following the annexation vote the council considered an item to notify Clay Union Electric (referred to in materials as CUE) of the city’s intent to serve the annexed area and to offer to purchase electric distribution properties as permitted by state law. Chris Larson, general manager of Clay Union Electric, opposed the city’s notice and said the cooperative would lose tax revenue for the schools if the city took service; he also described the presence of existing electric service and called the move a duplication of services. The council voted to authorize the notice to the cooperative.

What it means Taken together, the actions advance several projects and a municipal boundary change that will require later engineering, utility planning and, for the Madison Park tax‑credit project, coordination with the South Dakota Housing Development Authority on awarded tax credits if unit counts or site plans change.

Next steps and caveats Annexation will require utility extensions if development occurs; the city did not provide cost estimates on Feb. 17. Staff noted that changes to the Madison Park unit count could require coordination with state housing authorities. Clay Union Electric’s objections were entered into the record; the city will follow the statutory process for notifying and negotiating with the cooperative.