RAPID CITY, SD — Though conflict has been intense in days prior, Mayor Jason Salamun today signed off on the creation of two TIF districts for the Libertyland project as well as the proposed Catalyst district.
This approval comes off of a miscommunication voiding a previous vote. According to state law, TIF votes must be printed in advance, however after correct publication the TIF was once again strongly approved.
Mayor Salamun referred to both projects as “Major opportunities for growth,” and was quick to reassure concerned citizens that such growth was of minimal risk to the city or its populace, instead focusing on the factors of increased spending by visitors to the city, a drastically increased property tax revenue, and more entertainment venues for children and families. “Those of us that have raised kids here know we want them to have fun things to do, we want them to have productive things to do, and this won’t solve all of our problems, but this is a great thing.”
“Right now it is a cow pasture, it generates about $5000 a year in property taxes,” Salamun said, “When this TIF pays off, it is estimated that it will be over 9 million dollars a year.”
A TIF (Tax Increment Finance) district is a complicated and at times divisive tool in the hands of public officials, and confusion over what exactly a TIF is, is completely understandable– in essence, they restrict the use of the increased property taxes of a development, diverting them over a period to public improvement projects (such as roads and utilities) within a set district as a means of incentivizing private investment in the area. It is, in a sense, forgoing the contribution an increased tax would provide for a time, such that private organizations can proceed knowing that their projects will be supported by city infrastructure.
A timeline for both projects is in development, but is not public at this time. At the moment, the city has little concern surrounding the increase in property value of surrounding residences nor the potential environmental impact of either development.