After approving a reduction in lot size in Phase 2 of the Bliss Pointe housing development (see related story) the Vermillion City Council approved a resolution Tuesday calling for the creation of a Tax Increment Financing (TIF) District to help the Vermillion Chamber and Development Company (VCDC) finance that development.
The VCDC started construction on the infrastructure for the first phase of Bliss Pointe in 2014 to provide additional housing opportunities for the community. The first phase of development predominantly took place on the western portion of the 30 acres of developable land.
Phase Two will take place on the undeveloped portion of the land, which is approximately 15 acres north of Rockwell Trail, east of Joplin Street, and west of Stanford Street.
“They (the VCDC) have requested a TIF District to help fund those public improvements such as the water, the street, fire hydrants and all of those public infrastructure improvements that need to be paid for and established,” City Manager John Prescott said.
The City provided notice to other taxing entities that would be impacted, such as Clay County, the Vermillion School District and the Vermillion Basin Water District, he said.
A public hearing to consider the request was held last September by the Vermillion Planning and Zoning Commission.
“This resolution only establishes the boundaries. From there, we will submit the appropriate information to the state to help establish the base value that is used as we move forward with any increment if the plan is adopted,” Prescott said. “The TIF plan that I reference will be presented to the planning commission. Right now, our target date is March 8 and then it would appear before the city council on March 15.”
The TIF plan, he said, will establish the amount of funding that will be provided and the appropriate use of the revenue.
“The first step in the TIF process is to establish the boundaries for TIF District #7, which Prescott had described earlier during the discussion.
The state laws on Tax Increment Financing Districts are as follows: 11-9-3. Planning commission hearing on creation of district--Notice. In order to implement the provisions of this chapter, the planning commission shall hold a hearing at which interested parties are afforded a reasonable opportunity to express their views on the proposed creation of a tax incremental district and its proposed boundaries. Notice of the hearing shall be published once, not less than ten nor more than thirty days prior to the date of the hearing in a legal newspaper having a general circulation in the redevelopment area of the municipality. Prior to publication, a copy of the notice shall be sent by first class mail to the chief executive officer of all local governmental entities having the power to levy taxes on property located within the proposed district and to the school board of any school district which has property located within the proposed district. 11-9-4. Recommendation by planning commission for creation of district--Designation of boundaries. In order to implement the provisions of this chapter, the planning commission shall designate the boundaries of a tax incremental district recommended by it to be created and submit the recommendation to the governing body.
The legal description of the proposed Tax Increment Financing District is as follows: Outlot A, Bliss Pointe Addition to the City of Vermillion, Clay County, South Dakota.