Madison approves TIF district to support 28-unit affordable housing project

Madison commissioners on April 20 approved Resolution 2026-05 to establish Tax Increment Financing (TIF) District No. 8 and to approve the related project plan and developer agreement for an affordable housing development proposed by IAP in partnership with Lloyd Companies.

Jameson, the staff presenter, said the project will be a 28-unit multifamily development made up of three studio units, 15 one-bedroom units, six two-bedroom units and four three-bedroom units, and includes a 2,287-square-foot commercial kitchen. Jameson said the kitchen would allow IAP to expand meal services "from what they're currently doing at 250 meals per day" to as many as 700 meals per day, serving older adults and others in eastern South Dakota.

The project uses low-income housing tax credits and a partnership structure so the development will be a taxable entity while the credits are in place. Staff and project representatives said the TIF would reimburse property taxes paid by the partnership for eligible infrastructure and public-improvement costs tied to the project. Kellen Urpbach of Lloyd Companies explained that the partnership, once formed with an equity syndicator, will pay real estate taxes and that the TIF, if approved, will reimburse those taxes under the project plan.

Quinn Rymer of Collier Securities told the commission the TIF plan is structured as an affordable housing TIF and emphasized there is "no liability to the city itself," and that the finance projections assume approximately $637,000 is the total increment the TIF will produce. Luke Quick of Lloyd Companies summarized rents and income targeting: studios as low as about $540 per month, three-bedrooms up to about $1,245, with units targeted between 30% and 80% of area median income.

Stacy of IAP described the project's meal program and said meals are offered as a suggested donation for eligible residents and that the program generally does not collect sales tax for recipients over 60; she said the organization already serves multiple counties and expects the kitchen will expand capacity and provide congregate dining space.

After discussion and questions about parking, finances and the TIF term (staff described an approximate 18-year revenue capture for practical planning), the commission voted to approve the resolution, which combined district formation, the project plan and the developer agreement into a single action.

The commission approved the resolution; staff said the TIF, if implemented as proposed, would reimburse eligible infrastructure costs while project debt is outstanding and that the property would revert to nonprofit ownership once financing obligations are satisfied.