The Mitchell City Council has voted to offer a tax grant incentive program for retail business.
This is in hopes to attract an unnamed retail business to the city, officials said at this week's council meeting.
The north side of Mitchell has attempted to lure multiple businesses over the years without success. So, the city is trying something new.
Stephanie Ellwein is the Mitchell City Administrator. She presented the tax incentive program to the council.
“A minimum increase in sales or new sales of at least $2 million. The grant would be limited to 2% of the documented annual sales, because that’s what the city receives back at sales tax. The grant cannot exceed the identifying funding grant gap needed for the new or expanding business," said Ellwein. "The grant period can not exceed five years. The retailer would be required to verify the sales on an annual basis before the incentive is paid out.”
Ellwein said the tax grant incentive program is based on similar city programs already active in Pierre, Sturgis and Vermillion.
Bob Everson is the Mayor of Mitchell. He said the idea stemmed from direct communication he received.
“We’ve been asked for this previously and we haven’t had anything in place. So, currently we have somebody who is interested in bringing a large retail chain to Mitchell on the north side of town. Which, we know we need something on the north side of town," said Everson. "They need some kind of incentive to move forward with it. That’s how this all came to be.”
Everson was asked during the council meeting to name the "large retailer" that approached him. He declined to answer.
The council voted unanimously in favor of adopting the tax grant incentive program.
