ABERDEEN, S.D.(Aberdeen American News)- The Aberdeen City Council approved the formation of a Tax Increment Financing district that will help with restoration plans for the Citizens Building, but denied a second TIF request.
The TIF request that was turned down would have been for the development of storage buildings north of The Village Bowl.
The council considered both requests at Monday’s regular meeting.
TIF districts are often created to help cover some of the up-front expenses for public infrastructure. The funds received are paid back through the property taxes collected on the improvements made within the district. Once those expenses are paid off, the higher property taxes collected go to local governments.
City Manager Joe Gaa said while most TIFs that have come before the city recently have been for the installation of public infrastructure, the goal of the Citizens Building request is historic preservation.
The $9 million renovation plan for the building on South Main Street would create two commercial spaces, 40 apartments, a basement storage area for apartment tenants and a rooftop patio. That was approved on a 7-1 vote(only Councilman Ron Ronayne oppose).
TIF 34 sought $200,000 in infrastructure needs for the construction of three 1,200-square-foot cold storage unit buildings north of the bowing alley. Lee Park Storage, LLC. proposed the $1.34 million project..
Aberdeen attorney Rod Tobin said the storage units are part of a two-part development plan, which includes a second lot to the west along U.S. Highway 281. While the proposed TIF would have allowed for the development of the storage units, he said, the revenue collected would have also benefitted development of adjacent property to the west. That was defeated on 6-2 vote(Councilmen Ronayne & Mark Remily supported it).
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