The Pierre City Commission is considering whether or not to establish a new Tax Increment Financing (TIF) District for the redevelopment of the old City Hall lot.
Last spring, Hegg Companies, a development firm out of Sioux Falls, rolled out a plan to build an apartment complex, hotel, and commercial building at the site. To aid in that development, Hegg Companies is requesting a TIF.
That request, including the project plan and district boundaries, has been approved by the City’s Planning Commission.
“This is exactly the type of project TIF’s were created for,” said Pierre Mayor Steve Harding “They’re taking a somewhat underutilized area of town and revitalizing it to bring progress and additional financial benefit to the community.”
Mayor Harding went on to say that the City Commission will bring the proposal back to the commission next week for further consideration and action.
The proposed TIF district would encompass the old City Hall redevelopment project and be bordered on the north by Sioux Avenue and on the south by Dakota Avenue; it’s east and west borders would be between Highland Avenue and the alley to the east of Chapelle Street.
The estimated $33.4 million project is a private development. To make the project financially feasible, Hegg Companies is requesting $5.4 million be set aside through the TIF district. The economic development tool allows a portion of the property tax collected within the district to be used for a limited amount of time to help finance the project improvements.
Mayor Harding says that TIFs can be difficult to understand.
“It’s important to remember, at no point during the lifespan of a TIF does any government entity ever lose existing property tax revenue,” said Mayor Harding.
The TIF request is posted at CityofPierre.org.