- Associated Press - Monday, April 11, 2016

MITCHELL, S.D. (AP) - Two local businesses are set to expand with the help of a new tax increment financing (TIF) district.

On April 4, the Mitchell City Council unanimously approved TIF No. 22 to make infrastructure improvements along four gravel streets in south central Mitchell. The council held its regular meeting at Mitchell City Hall.

The city-financed TIF will support curb and gutter, storm sewer and paving on North Lawler and North Kimball streets and East Hackberry and East Juniper avenues, The Daily Republic (https://bit.ly/1WajZd6 ) reported.

With the $1.6 million in infrastructure improvements, five new developments will be introduced to the area. If the new developments are built, funds generated from future taxes within the district would be used to repay the city of Mitchell.

The new developments are expected to create a total of 11 new jobs and add a $600,000 stand-alone addition to Klock Werks, a $300,000 addition to Patzer Woodworking and more than $7 million for a 62-unit townhome project. There will also be space for six new twin homes and three Habitat for Humanity homes.



If all of the projects develop to their fullest potential, the city could add $8.8 million to the city’s tax base.

Attorney Don Petersen, who represented the developers throughout the approval process, reiterated that the TIF funds would not be used on any private developments.

“None of the developers are asking for a dime of the TIF to be used on their own property,” Petersen said.

At a previous meeting, Petersen indicated Klock Werks would not build their new building if the city did not approve the TIF. Currently, a heavy rain washes gravel from the roadway into the catch basins near Klock Werks and leads to flooding of the company’s property. Petersen said the issue was costing the city $14,000 annually to pump gravel out of the basins.

After the meeting, the TIF made it through three city committees without a vote against the project. At no point during the three-week-long discussions about the project did the any member of the public offer one word of dissent.

Despite a lengthy presentation about the TIF Monday night, the council held little discussion about the unanimously-approved project.

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Information from: The Daily Republic, https://www.mitchellrepublic.com

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