Special taxing regulations are being approved to bring new businesses to Rapid City with help from the taxpayer dime. However, the proposal did see opposition at city council.
The plans would utilize taxpayer dollars to develop areas that would surround or directly benefit new fast-food locations as a draw to expand into Rapid City.
It’s partially funded through an incentive mechanism called taxing increment, or TIF, districts. Some, like the proposal’s supporters on the council, view them as useful tools to encourage development. Others, like public commentor Mark Millar, oppose and instead call them poor use of taxpayer dollars.
“I’m gonna lay five bucks on the deal that some of those little shops in those buildings will never be occupied by retail,” Millar said in Monday's council meeting.
Supporters of the plan say it could bring new development to the area near the Lacrosse Street exit south of I-90.
Rapid City Republican state Sen. Taffy Howard voiced strong opposition in the comment period.
“At its core, a TIF is a mechanism that captures a portion of property taxes from new developments and redirects them to subsidize the infrastructure costs of those very developments," Howard said. "The problem is this – TIFs don’t generate new revenue. They divert much needed funds from essential services like schools, police and fire departments while padding the pockets of wealthy developers. Does anyone see any of these developers struggling to stay in their home? No.”
That was echoed by Councilmember Bill Evans, who said it’s a foolish use of money.
“In my six years on the council I can say I think this is absolutely the worst, most useless TIF that’s come before us," Evans said. "I don’t see how tearing down a 300-room hotel and replacing it with three fast food joints is going to increase our tax base, nor do I see those places generating anywhere near the kind of income a retro, restored hotel would generate.”
Despite these concerns, Evans was joined by Councilmember Rod Pettigrew as the only no votes, and the proposed TIF passed easily.