On Wednesday, Rapid City's Legal & Finance Committee approved using Tax Increment Financing (TIF) for two residential projects. The Rapid City Journal reports that the projects would provide elderly housing in the Park Hill subdivision and create affordable apartments on East Saint Charles Street. The full city council will need to approve the use of TIFs at their meeting on Tuesday, January 17th.
TIFs are used for development projects by pledging the difference between pre- and post-development property taxes to pay off bonds; the Park Hill developer estimated property taxes for the area would go from $2700 to $100,000 a year, with the $97,300 going to the bonds, then to the city after the bonds are paid off.
Past stories on TIFs can be found in the Black Hills Knowledge Network's online news archive.