Rapid City Council to consider $78M TIF District for new industrial complex

RAPID CITY, S.D. — Dream Design International is asking for Rapid City’s help in funding a new industrial complex in the outskirts of town.

The proposed TIF – tax increment finance – district would fund a 900-acre complex off Hwy. 79 and Old Folsom Road.

“It’s one of Rapid City’s only economic development tools,” says Sarah Hanzel, the planning projects division manager. “It works by capturing, just for a short time, the future value of property to help pay back public improvements, and in this case, other development costs as well.”

Screenshot 2022 05 11 160321Dream Design says more than 600-acres of that space would be used for value-added agriculture.

The Black Hills Industrial Complex would also bring in more than 2,000 jobs.

The original TIF request was around $48 million, but with inflation, that has jumped by nearly 70%.

“Over this last 12-month period, we’ve seen an incredible inflation in the cost of construction materials, and that’s been across the board,” says Dream Design International Vice President Kyle Treloar. “We’ve got spots where we’re seeing tripling in prices from what we had even less than a year ago.”

The TIF district agenda item will now go to Monday’s council meeting for final approval.

If approved, dirt-work and grading is set to begin in early June.

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