The city has approved a resolution that would create a new Tax Increment District in Southtown.
A tax incremental district is an area created within a municipality where improvements are made and paid for through an increment in property taxes.
David McGirr, CEO of Greater Huron Development Corporation, said Tax Increment District (TID)#6 will help make two projects happen. TID #6 would encompass all of what was originally Tax Increment District #3 and #5, totaling 114 acres in Southtown.
The projects include the new Iverson Dealership and the second phase of the apartment complex, Wheatgrass Village.
When Phase 1 of Wheatgrass Village was being done, the developer said that if the apartments were 85% full within one year they would consider proceeding with Phase 2.
McGirr said the apartments were completely full in the first nine months. The apartment complex will encompass an additional 10 acres of land adjacent to the other apartments and town homes.
McGirr said the plans for phase 2 were recently modified.
McGirr said will be some unique aspects to the Iverson Chrysler/Ford dealership.
McGirr said without the Tax Increment District, neither of the projects would happen.
Total project costs for both the auto dealership and the apartment complex will exceed $12 Million, with the maximum eligible costs available from TID #6 being approximately $4.8 Million.
The state of South Dakota must sign off on the new TID, but according to McGirr the state has seen the proposal and has indicated they anticipate quick approval.
McGirr says the goal is to begin work on phase 2 of Wheatgrass this fall and have the complex ready for occupancy next fall.