The Rapid City Planning and Zoning Commission has approved a Tax Increment Finance, or TIF, district at its most recent meeting. The near 50-acre space focuses on the Camden Heights neighborhood.
A TIF district is a designated area that uses bonds or private financing to pay for infrastructure improvements like power, water, sewer and building developments.
There are currently 19 TIF districts across the community, including Sagebrush Flats, the Black Hills Industrial Center, Block 5 and Homestead Street.
The step represents a move closer to a major residential development in the North Rapid area, but local TIF planner Mike Dugan said it will be a mixed-use space.
“This actual piece of property that’s going to be the subject piece that’s going to be developed has sat undeveloped for quite some time," Dugan said. "Future land use categories – the majority will be mixed-use commercial and then to the side of the slide will be light industrial. Then, there will be six total structures on this property – once again there will be 252 units, 51 dedicated to senior living.”
In total, the Camden Heights project would also include a solar energy system, trail network and housing units for both families and senior citizens.
Current estimates put the price tag just shy of $80 million. The TIF district would come at a cost of $12.4 million and funding would be sourced from municipal government.
Dugan explained how funding will be secured.
“The sources of this permanent debt financing, (Low-Income Housing Tax Credit) LIHTC Equity, solar equity, they have a housing infrastructure grant, and then it’s highlighted there the tax increment financing loan, the deferred development fee and other gap fees as the sources to pay for this project,” Dugan said.
The project is expected to begin next year with completion coming before 2030.