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Rapid City Presidents Plaza Project 2006-2016 Jim Scull

Rapid City Presidents Plaza Project 2006-2016

Timeline

 2006  The Presidents Plaza project, including a 15 story mixed-use building and a parking garage on St. Joseph and Sixth Streets, is first proposed.  
 2007  Rapid City Council approves TIF No. 62 to pay for parking improvements and soil decontamination on the site. 
 2008  Dream Designs withdraws from the project. 
 2009  Rapid City Council requested a second round of proposals for the project. The St. Joe Investment Group’s proposal was selected. The Master Development Plan for the project was signed in September of 2009.
 2010  The St. Joe Investment Group was granted an extension to secure funding for the project, which was received in August 2010. 
 2011  Dream Designs is announced as a partner in the St. Joe Investment Group. In November, the development corporation, known as Presidents Plaza LLC, requested and received a cap from the city council that had been originally granted in 2007.
 2012  Rapid City Council approves a new TIF for the project. 
 2013  Developer announces that New Market Tax Credits can be used for the project, with construction anticipated to begin later that year. 
 2014  Rapid City Council dedicates $5 million toward the project with the agreement 150 parking spaces would be allocated to the city. 
 2015  Project developers provide a written notice to the Rapid City Council of their plans to move forward without New Market Tax Credits. 
 2016  Rapid City Council terminates agreement with Presidents Plaza in September. 


History

The Presidents Plaza project was first proposed in 2006 with the proposal to build a 15 story mixed-used building and parking garage on St. Joseph Street between Fifth and Sixth Streets.6. In  2007, the Rapid City Council approved TIF No. 62 to pay for parking improvements and soil decontamination on the site. Dream Design, the local engineering firm that designed the building, initially withdrew its proposal for the project but later resubmitted. The Rapid City Historic Preservation and the state Historic Preservation Office came to different conclusions about the impact of the project on the downtown historic district.

In 2008, Dream Design's President decided to not continue with the project. [more]

In 2009, the Rapid City Council accepted a second round of proposals for the Sixth and St. Joseph Street project. St. Joe Investment Group's proposal was selected.

In 2010, the St. Joe Investment Group was granted an extension by the City Council to secure funding for the project. In August, the group announced they have secured the funding and will proceed with the project.

In 2011, the Rapid City Council asked for proof of funding from the St. Joe Investment Group. In February, it was announced that Dream Design is a partner in the St. Joe Investment Group. In November, the development corporation, now known as Presidents Plaza LLC, requested and received from City Council a release from the cap that had originally been granted in 2007.

In 2012, the Rapid City Council approved a new TIF for the project. This replaced the TIF approved five years ago. The Rapid City Historic Commission approved the design of the Presidents Plaza. In June, the state's Historic Preservation Office ruled that the building project would negatively impact the downtown historic district. The Rapid City Legal and Finance Committee voted to overrule the decision and proceed with the project. In July, construction was delayed while the developers waited for approval of a New Markets Tax Credit allotment.

In 2013, the developer announced that he expected the project would receive NMTC, allowing construction to begin later in the year. The project was not awarded the credits. In November, the developer asked the Rapid City Council to sign a Fourth Addendum to the agreement on President's Plaza. The addendum gave the developers until December 1, 2014, to obtain sufficient NMTC for the project. If these could not be obtained, the developer then had until January 31, 2015, to either cancel the project, or move forward with available financing. The final project plan and construction agreements would have to be in place by December 31, 2015, with construction starting within six months. The Rapid City Council approved the addendum in their December 16, 2013 meeting.

new agreement was brought forward in February 2014. The new agreement would add $5 million from the city to the project, including money pledged by Destination Rapid City for more downtown parking. The city would receive 150 parking spaces in Presidents Plaza. With the infusion of city funds, the developers announced that they would not be seeking NMTC. City staff started looking into making a new agreement, but the deal fell apart in March. The City Finance Officer had sent the developers a request to have an independent account review the project's financial projections. The developers backed out, citing the audit request and other issues. They would continue working under the current agreement.

In February 2015, developers for the project offered written notice of their intent to continue moving forward, although the New Market Tax Credits were no longer an option. At the time, $2.8 million from the Vision Fund had been allocated to the project as well as $23 million in TIF funding to complete the project.

Rapid City's agreement with President's Plaza LLC. came to an end on a hopeful note in 2016. The Rapid City Council voted 8-1 to direct staff to terminate the agreement with the developer, reported the Rapid City Journal. However, even as council members spoke about their reasons for voting against the agreement, they were also open to another developer coming forward with a new plan.

Rapid City's agreement with President's Plaza LLC. came to an end on a hopeful note. The Rapid City Council voted 8-1 to direct staff to terminate the agreement with the developer, reported the Rapid City Journal. However, even as council members spoke about their reasons for voting against the agreement, they were also open to another developer coming forward with a new plan.

Master Development Plan

Presidents Plaza was first proposed to be a mixed-use facility in downtown Rapid City. The Master Development Plan for the project was signed in September of 2009. Since then, the Rapid City Council has approved four addendums.

  1. The first addendum, signed November 16, 2009, set up city funds to place in escrow.
  2. The second addendum, signed November 7, 2011, expanded the Tax Increment District for the project from $5 million to $23 million.
  3. The third addendum, signed June 4, 2012, dealt with the change of Tax Increment Districts.
  4. The fourth addendum, signed December 16, 2013, set deadlines for acquiring financing and starting the project.

The fourth addendum is the most recently approved change to the Master Development Plan.

All articles, documents and presentations on the Presidents Plaza are available Black Hills Knowledge Network's online news archive. 

 

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