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Planning commission forwards $510 million Black Hills Marketplace TIF plan to county commissioners
Summary
Pennington County staff recommended, and the Planning Commission moved to forward, a proposed tax-increment financing district (TIF No. 8) and project plan for the 192-acre Black Hills Marketplace, a mixed-use center with about 400,000+ sq ft of retail and an estimated $510 million project value; the recommendation will go to the Board of County Commissioners for action.
The Pennington County Planning Commission on May 26 voted to forward a request to establish Pennington County Tax Increment District No. 8 and the associated Black Hills Marketplace project plan to the Board of County Commissioners with staff’s recommendation.
Planning Director Britney Hand presented the project as a roughly 192-acre mixed-use development at the southwest corner of Catron Boulevard and 5th Street that would include more than 400,000 square feet of retail, restaurant and commercial space, roughly 130 single-family homes across more than 40 acres and an approximately 500-unit multifamily development, plus public infrastructure. Staff estimated a total project value of approximately $510,000,000 and said the TIF is proposed pursuant to South Dakota Codified Law chapter 11-9.
Developer Mitch Holohan, a principal at Woodsonia Real Estate, said the team is modeling project financing using a fixed 6% interest rate for the TIF-backed financing. Commissioners asked about the TIF boundary, the maps and the effects of the assumed interest rate on long-term financing. Mitch said the 6% rate would be established for the project financing and would not change as the project proceeds.
Commissioners discussed the project plan’s scope, traffic and the project’s role in providing public infrastructure, including extension of Black Hills Boulevard, extension of 5th Street, turn lanes on Catron Boulevard, water and sanitary sewer infrastructure, regional stormwater controls and two regional detention ponds. Staff noted the project plan includes dedication of a 6–9 acre site intended for a future Pennington County maintenance facility. After discussion, the commission moved, seconded and carried a motion to forward the TIF district and project plan to the Board of County Commissioners for their consideration at an upcoming meeting.
Next steps: The planning commission’s recommendation will be considered by the Board of County Commissioners; staff identified SDCL chapter 11-9 as the statutory basis for establishing the TIF.
