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Council approves TIF for 123 North Main to support renovation into short-term rentals and commercial space
Summary
The council approved creation of Tax Increment Financing District No. 47 and a project plan that includes a requested TIF of $190,787 toward a roughly $2.5 million renovation at 123 North Main; the meeting also approved updates to the city’s TIF handbook to comply with new state review requirements.
The Mitchell City Council approved a resolution establishing Tax Increment Financing (TIF) District No. 47 to support renovation of the 123 North Main building into approximately five to six air‑bed‑and‑breakfast units and commercial space.
City staff outlined the project plan, saying the total project costs are about $2.5 million with eligible costs of roughly $785,000; the developer's requested TIF amount was listed as $190,787. "The developer request amount, which is 190,787," a city planner said while walking council through the project-cost table and fiscal-impact estimates.
Staff described standard developer agreement terms, the requirement that the developer dedicate improvements to the city once completed, and noted the project has preliminary state classification as economic development. The presentation included a fiscal-impact statement, an economic-feasibility study and photos of existing deterioration in the building.
Developer representatives and local supporters spoke in favor of preserving and renovating the historic Main Street structure. "We fully support this project," a local TIF supporter said; the developer, John Adamo, was present and council members thanked him for investing in Main Street.
Separately, staff summarized changes to the Mitchell TIF handbook to align with new state statutes. The most significant statutory change requires an independent fiscal feasibility review to be completed and made public at least 14 days before council consideration and that the applicant pay the cost of that review (which the applicant may later claim as an eligible cost if the TIF is approved). Staff reported soliciting contract templates from qualified entities, including Dakota Resources and qualified municipal advisers.
Council members discussed the project’s costs and assumptions and then approved the resolution to create TIF District No. 47 and to adopt the project plan. Council also approved the administrative updates to the TIF handbook to implement the new state requirement for independent reviews.
Staff said the independent review requirement will change application timing and that applicants will be required to fund the independent review up front; staff identified prospective reviewers and described the public‑notice timeline required by statute.
