Pennington County commissioners have cleared the way for one of the largest mixed-use developments Rapid City has seen in years, approving a Tax Increment Finance district for the Black Hills Marketplace project.
The board approved the creation of TIF District No. 8 at its June 3 meeting, a move that backers say will unlock hundreds of new homes, sweeping commercial growth and long-overdue infrastructure fixes at one of the fastest-growing corners of the county.
The development is planned at the intersection of Catron Boulevard and Fifth Street. As designed, it would bring roughly 500 multifamily housing units, 130 single-family homes and more than 400,000 square feet of retail, hospitality and restaurant space, along with future employment and industrial sites. County estimates peg the project at about 900 permanent jobs and more than 2,000 construction jobs.
For a region wrestling with a tight housing market, the residential piece may be the headline. But the TIF dollars are aimed squarely at public infrastructure. The financing will help pay for the extension of Fifth Street and Black Hills Boulevard, new turn lanes on Catron Boulevard, water and utility lines, regional drainage work and detention ponds. County officials note many of those upgrades address drainage and infrastructure headaches that have lingered in the area for years.
Tax Increment Financing lets a government earmark future property tax revenue generated by a new development to pay for the public improvements that make the development possible. It is a tool Pennington County uses sparingly. Black Hills Marketplace is only the eighth TIF district the commission has ever approved.
“This was not a decision the Commission made lightly,” said Brittney Hand, Pennington County Planning and Zoning Director. “Tax Increment Financing is a tool that the Board evaluates very carefully, and throughout this process, the Commissioners took the time to thoroughly review the proposal, and ensure the public benefits justified the investment. This is only the eighth TIF district approved by the Pennington County Commission, which speaks to how selective the Board is when considering these requests. Ultimately, the Commissioners recognized the value this project brings through new housing opportunities, critical infrastructure improvements, job creation, and long-term economic growth for our community.”
As part of the deal, the development team has committed to donating roughly six to nine acres to Pennington County for potential future county facilities and services.
Officials described the project as a joint effort between the county, the City of Rapid City and the developers to tackle infrastructure needs while preparing the Highway 16 and South Dakota Highway 79 corridors for growth that serves both South Dakota residents and the visitors passing through the Black Hills.
Residents who want a closer look can watch the June 3 commission meeting and Hand’s presentation on the county’s recorded meeting video.
