Rapid City Council approved the creation of a $90,000 tax increment financing district for the Village on Monroe development project reports the Rapid City Journal. Tax increment financing (TIF) was approved in 1978 for use in South Dakota. This TIF was approved in order to help build a five unit townhouse being created north of Rapid City Plaza Civic Center. This property was determined blighted, which is one criterion for a TIF. This TIF will be used to cover the land costs; which brings questions about the public impact of this project.
This TIF would use $60,000 for land acquisition costs; traditionally not covered by TIF. This was approved unanimously at a Rapid City Council Meeting in April. This would allow the townhome cost to drop. In addition to this more affordable price, NeighborWorks Dakota Home Resources will provide each owner with a $12,000 interest free down payment. They indicate that when a home is sold, this savings will be passed on to future owners.