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Board approves Tax Increment Financing District for Black Hills Marketplace project
Summary
Commissioners approved creation of TIF District No. 8 for the Black Hills Marketplace development, a mixed‑use project that developers estimate could add ~$214.6M in assessed value at full buildout and requests roughly $68.86M in TIF financing for public infrastructure.
The Pennington County Board of Commissioners on June 3 approved the creation of Tax Increment Financing (TIF) District No. 8 to support the proposed Black Hills Marketplace, a mixed‑use development planned at the Catron Boulevard/Fifth Street area in the Rapid City extraterritorial jurisdiction.
Planning Director Britney Han described the district and project plan: the developer projects roughly $214.6 million in assessed value at full buildout, about $13 million in new property tax revenue over 30 years, and an anticipated sales tax projection that could generate additional revenue over time. The TIF proposal seeks to finance public improvements — including road extensions, turn lanes, water and utility infrastructure, stormwater detention, and regional drainage — with a total proposed project financing of $68,858,115; Han stated the principal portion is a little over $34 million and the remainder covers financing costs and interest.
Why it matters: county and city officials said the area has chronic drainage and transportation constraints that the project’s public improvements would address. Commissioners and staff emphasized that the developer also proposed donating 6–9 acres to the county for a future facility and that annexation into Rapid City is expected when the final plat is filed, after which the city would assume maintenance of public improvements.
Board discussion and public vetting: commissioners and staff described an extended review and negotiation process; the planning commission recommended approval and staff reported one written opposition from a neighbor. Developer representatives attended and fielded detailed questions about infrastructure milestones, annexation, and the county’s administrative fees. Mitch, a developer representative, said the team will include project milestones and development schedules in the developer agreement and expressed confidence the proposal has been vetted: “I think we’ve got a decent recipe for success here.”
Action taken: following discussion and staff clarifications, Commissioner Dur moved to create the TIF district and accept staff findings; the board voted in favor and adopted the resolution to create Pennington County TIF District No. 8 and its project plan. The board directed staff to include a developer agreement with milestones and to return with contractual language covering the county’s 15,000 administrative fee and the specific acreage conveyance terms.
Limits and next steps: the approval creates the district and authorizes the project plan but the developer agreement (detailing milestones, timeline and any conveyance to the county) will return to the board as a separate, binding resolution. Commissioners noted the TIF proceeds will cover infrastructure costs and that the county’s future revenue and exact fiscal impacts depend on buildout and annexation timing.
