Planning Commission - Regular Meeting

i think that's one of their rules

morning everyone welcome to the may 21st 2026 zoning board of adjustment meeting starting at 7 00 a.m if any member of the audience wishes to speak to an item on the agenda today there are speaker request forms on the table along the left wall please fill out the request of the agenda number of the item you wish to speak to and hand it to the staff seated on that side of the room The public hearing on item number one, the approval of the May 7th, 2026 Zoning Board of Adjustment meeting minutes is hereby opened. All right, Vince made the motion to approve those minutes. And Jeff seconded that motion. Any discussion on the motion to approve? All those in favor, please say aye. Aye. Any opposed? Motion carries. Item number two.

Good morning. Good morning. This item was a variance request that was continued at the last zoning board of adjustment meeting. It was a variance to reduce the parking requirement and to reduce the landscaping requirement and to reduce the front yard setback for a detached storage shed. So the applicant has revised the proposed floor plan to reduce the size of the eating area or the seating area for the coffee shop. They're going to be reducing that from 920 square feet down to 160 square feet in size. So this building will have a similar occupant load to the previous antique store. So therefore parking and landscaping compliance is no longer required. And then they're also going to be removing this partially constructed storage shed. So a variance to the front yard setback requirement is no longer needed. So the applicant has withdrawn this variance application and is going to be proceeding with this revised floor plan. So therefore, variances are no longer needed and staff is recommending that the Zoning Board of Adjustment acknowledge the applicant's withdrawal of this variance request. So I'll stand by for any questions.

All right. Excuse me, Haven made the motion to acknowledge the withdrawal. Vince seconded that motion. Any discussion on this motion to withdraw or acknowledge the withdrawal? All those in favor, please say aye. Aye. Any opposed? The motion carries. That's our last item on Zoning Board of Adjustment today. I'd look for a motion to adjourn that meeting to move to Planning Commission. All right, Karen made the motion to adjourn and Vince seconded that motion. All those in favor, please say aye. We will now commence the Rapid City Planning Commission meeting for May 21st, 2026. Getting into that at 7.03 a.m. If any member of the audience wishes to speak to an item on the Planning Commission agenda, just another reminder, grab a speaker request form from that table on the left wall, fill it out with the agenda number of the item you wish to speak to, and hand it to the staff that's seated along that side of the room. items one through five have been placed on the consent calendar today and may be approved as a group action will be taken on all consent items in accordance with staff's recommendation by a single vote any item may be removed from the consent calendar by any planning commissioner staff member or audience member for separate consideration at this time The findings of this Planning Commission are recommendations to the City Council. The City Council will make the final decision with the exception of the following item. Item 4, 26 PD 007. The Rapid City Planning Commission action on this item is final unless any party appeals that decision to the Rapid City Council. All appeals must be submitted in writing to the Department of Community Development by close of business on the seventh full calendar day following action by the Planning Commission. Are there any items one through five that staff would like removed for separate consideration? Okay. Any items one through five that any Planning Commissioner would like removed for separate consideration? And are there any items one through five that any audience member would like removed for separate consideration today? Seeing none, the chair would entertain a motion to approve items one through five in accordance with staff's recommendation. All right, Eric made the motion to approve one through five with staff's recommendation and Jeff seconded that motion. Pat, Pat seconded that motion. All right, any discussion on the motion? All those in favor, please say aye. Aye. Any opposed? Motion carries. Item number six.

So item number six is a final plan development overlay, and it's to allow a townhome development with 12 dwelling units on the property currently addressed as 1247. Pinnacle Court and to adjust to the common lot lines of two existing single family lots, addresses 1243 and 1250 Pinnacle Court. So the townhome development is zoned medium density residential districts within a planned development designation. And these two existing single family lots are zoned low density residential district two. So the future land use is low density neighborhood. Properties are located north of Catron, which is classified as Principal Arterial Street on the city's major street plan. So this is the proposed master plan for the Whisper Ridge subdivision. Last month, city council did approve an exception to allow 54 residential lots with one point of access in lieu of that maximum 40 lots. The maximum is 40 that's permitted with one point of access. But this is the proposed plat. So the townhome development is going to be accessed by a 34-foot wide access and utility easement that's going to be extending west from the Pinnacle Court cul-de-sac. And then proposed lot 23R is going to be accessed by an existing dedicated 25-foot wide access easement that runs through the east adjacent property. So all lots do have to abide public right away, a minimum distance of 25 feet. So none of these lots meet that minimum requirement except for proposed lot 24L and proposed lot 20R. So the APCN has requested an exception as part of this application to reduce the minimum frontage. And the purpose of this requirement is to ensure that each residential lot has legal access and then also access to utilities. So legal access to the townhome development, it's being provided by this access easement, this private street, along with the water and sewer. So staff is recommending that this exception be approved. This exception does not appear to impair the purpose and intent of the zoning requirement. So this is the proposed site plan. The applicant is proposing three plex on the left side, four plex here on the south side, and then five plex here on the north side. So the Pinnacle Court called this act will have to accommodate 12 garbage cans along with 12 recycling containers. Those containers are gonna have to be separated four feet apart from one another. 36 parking spaces are required as part of this development and 48 are being provided with the resident parking spaces and the visitor parking spaces. So this is the proposed elevations of the three plex. Each one of these townhome dwellings is gonna have a front attached two car garage. And then these are the elevations of the proposed four plex. And then finally the proposed five plex. So public notice was posted on the property. This is looking into the property, west into the property from the Pinnacle Court cul-de-sac. And then this is looking east along that pinnacle court. So staff is recommending that this item be approved subject to the stipulations outlined. And I'll stand by for any questions. Applicant is in the audience as well.

Thank you. Excuse me. Can't speak today. Any questions or comments from the commission on this item? Other thoughts? Perhaps a motion?

I'll make a motion to approve.

All right. Vince, do I need the motion to approve with the stipulations listed?

With the stipulations listed in the staff report.

All right. Second. Jeff seconded that motion. Any discussion on the motion? All right. All those in favor, please say aye. Aye. Any opposed? Any opposed? Aye. Okay. Motion carries with Eric in opposition. All right, item number seven.

So this item is another final plan development overlay. It's to allow 40 townhome dwelling units on the property currently addressed at 1747 Creek Drive. So this project is going to include 10 three-plexes and two five-plexes, and the APKIN has indicated that it's to support affordable and workforce housing. So the property is owned medium density residential district. It's located within a planned development designation. The future land use is mixed use commercial. Property is located adjacent to Creek Drive, which is classified as a minor arterial street on the city's major street plan. So there's a number of exceptions that are being requested as a part of this final plan development. The first is to reduce the minimum front yard setback at five different locations on the site plan, which have been highlighted in red. The setback along East Creek Drive, which is this new east and west right-of-way is 20 feet. That's the minimum requirement. And then the requirement from Creek Drive, which is this north and south right away, is 25 feet. So the setbacks proposed are going to range from 8.3 feet to 24.9 feet. And those setbacks only affect the side and the rear elevations. So the front elevations remain unchanged or unaffected. So the driveways are going to be sufficient length to accommodate the required parking needed for this proposed development. So staff is recommending that the setback to the second front yards here be approved. And then the second set of exceptions being requested is to reduce the minimum 12 foot side yard setback requirement at 16 different locations on this site plan So these setbacks are gonna range from seven point nine feet to ten point five feet and these buildings are gonna be fire sprinkler protected so there does there's not a concern with the separation between the buildings and Staff is also recommending that this exception to the side yard setbacks be approved.

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And then the third set is to reduce the minimum rear yard setback, which is 25 feet at four different spots here on the site plan. These setbacks, rear yard setbacks that they're proposing for these four properties are going to range from 17.7 feet up to 24.9 feet. And when we took a look at this, we thought that these setbacks that they're providing provide an adequate amount of amenity space for the tenants. They also provide sufficient buffering to the adjacent land uses. I believe the bank is directly to the south here. So staff is also recommending that this exception to the rear yard setbacks be approved. So again, same as last time, residential lots have to about public right away a minimum distance of 25 feet. And there's 14 of these lots that do not meet that minimum requirement. They're highlighted in orange there. So the lot frontages that they're proposing for those 14 lots are going to range from 20 feet up to 24.1 feet. Same reasoning as before, they all have legal access off East Creek Drive and there's room for water and sewer connections. So staff thought that this exception did not impair the purpose and intent of the zoning requirement. So townhome dwellings, townhome projects require a maximum density of 4,000 square feet. The density that is being proposed as part of this project is 3,676, so they're just short on the density. They're requesting an exception for that as well. If they were to comply with the density, Target that's in the code. They would have to lose four of the dwelling units here and napkin has indicated that 40 40 dwellings is the minimum possible for this project for them for this project to be financially feasible Also the density that they're proposing at that three thousand six hundred and seventy six square feet does appear to provide You know adequate area for open open area and recreation space so staff is also recommending that this exception be approved and And then the last exception being requested, this is proposed elevations that are showing the three different styles of buildings that are being proposed. And the last exception that's being requested is to increase the maximum height requirement. So for townhome dwellings, the maximum height is 2.5 stories. And these are going to be three story townhomes. So this property is surrounded by, commercial and industrial land uses and staff felt that the increase in height to three stories did not negatively impact those those surrounding land uses So this is the proposed site plan they are proposing a common area in the southwest corner of this property so that common area is going to have a green space shelter and a playground area and They will have to install no parking signs within 50 feet of interior curves. And as a result, some of the street parking that they are street parking and visitor parking that they're showing here will have to be removed to accommodate those no parking areas. So as part of a building permit, the applicant will just have to verify that this project can meet the visitor parking requirement, which is one space per dwelling unit. If not, they'll have to seek a design exception to reduce that minimum requirement. So these are two neighborhood entrance signs are being proposed, one at the Creek Drive entrance and one at the East St. Charles entrance. These signs are currently shown within the public right of way, so the applicant's just gotta be aware that these signs have to be located within private property and be located within a dedicated sign easement. So it's just gonna be a shift of these signs outside of the public right of way. So they're just showing up here, and I believe the other one is down here. So public notice was posted on the property. This is looking north and looking south along Creek Drive and then looking west along East St. Charles Street. So staff is recommending that this item be approved subject to the stipulations outlined and stand by for any questions.

Thank you. Haven.

Thank you. Could you explain the parking a little bit? You indicated that one space per house. Is that in addition to the driveway garages? And just explain that a little bit so clear it up in my mind.

Yeah, so the parking requirement is two spaces per townhome plus one visitor parking space. So there's three parking spaces. The required two parking spaces have to be located on the same lot, whereas the visitor parking space just has to be located within 300 feet of the primary entrance is how the IDCM reads for that. So three parking spaces per townhome, if that makes sense.

Eric?

Thank you, Mr. Chair. I'll be abstaining from voting on this item.

Okay. Kelly.

Thank you. Just a quick question on the parking. Other than the radius, no parking areas, is street parking allowed anywhere on the street runs or those designated hashed areas, are those and will those be marked if that's where you're supposed to park?

Yeah, so those hash areas, they're just showing the available spaces to park here. There's really not a whole lot of room because there's a lot of driveways coming onto East Creek Drive. So other than the interior curves, the 50 feet from interior curves, and obviously where there's not driveways is where I believe street parking could be. Gotcha. Thanks.

All right, Jeff, we can go to you.

Quick question. The signage was posted regarding the request for variance. Was there any public comments received by the planning office, planning staff?

Yeah, there was no public comment that I received. I know the bank manager called me, and he was just for the property to the south, and he was just asking me general questions on it, but he didn't have any concerns, so that was the only call that I got on this one. Vicky?

Thank you, Mr. Chair. So the visitor parking, it is fortunate that this applicant is attempting to provide that visitor parking out in the right of way. We've seen some other very tight residential developments where the visitor parking is actually in the driveway, and that can become problematic. So let's say that one family out here has a child that's graduating from high school, and they're trying to throw an event. If your visitor parking is in your neighbor's driveway, who feels comfortable doing that? So there is a benefit that even though this density is very tight, having that visitor parking out in the street to the greatest degree possible, it just gives us all the feeling that anyone can use it. So I think this is a benefit over what we have seen in other denser residential developments that really lean into that affordable housing.

Thanks, Vicki. I just had a few questions on common space versus owned space on this. It looks like most of the units have a fenced area, which I would assume would be each unit's responsibility, and then outside those fences would be the community responsibility, like the HOA responsibility. Is that correct?

Yeah, I'll pass that question over to the applicant, but yeah, they will set up an HOA for the maintenance of the common areas, but I don't know if the applicant has anything else to add.

If there's someone willing to respond, that would be great from the applicant. If you could identify yourself once you're up to it.

I'm Dion Lowe with Respec. I'm the civil engineer on the project. Thanks. Yes, the common area with the shelter, will be set up through the HOA to be taken care of. Otherwise, the rest of the areas will be privately owned by each unit and will be their responsibility.

Okay. The road going through the development, is that a private road?

No, it'll be a public road.

Okay. And then along East St. Charles and Creek, there's some common area there that will also have to be maintained by the HOA?

Yes, it'll be the right-of-way. It won't need to be maintained. I guess it'll just be right away on each road with a required sidewalk that will be, I guess I'm not sure if that's maintained by the HOA or not, that part.

OK. All right. I was really gratified to see that this is coming in with a mix of incomes expected for the housing. That takes away some of my concerns. I struggled initially when we saw this way back when with the idea of a HOA full of first-time homebuyers attempting to make sense of running an HOA. I've never been a part of an HOA, and I resist it to this day. I think that this is a great adjustment to the plan. I guess I would just make a request. I don't think there's any way to require it, but make a request that Black Hills Habitat does put in the work up front to make sure that HOA gets off to a good start. Because there's going to be some adjustment period to... I mean, there's... a limited amount of land here that needs to be taken care of, thankfully, but there will be some, and that'll need to be dealt with by an HOA that starts from zero. Anything else on this from the commission? All right, look for a motion. If nobody else, any other comments?

I'll make a motion to approve.

Okay. Vince made the motion to approve item seven with the stipulations listed.

With the stipulations listed, I see. And Pat seconded that motion.

Any discussion on the motion to approve? All those in favor, please say aye. Aye. Any opposed? The motion carries with Eric Heikes abstaining. Item number eight. Alright Mike, I expect you to read out this legal description.

I've been practicing all night. Word for word. I've been practicing all night. I apologize, I don't think my slides are linked to this. But I brought mine, so we're OK. I apologize if you give me two seconds. always be prepared. Good morning, Mike Dugan with Finance and I have a presentation, a brief presentation for you for a new tax increment financing district called the East Rapid City Transportation Improvement District. So the purpose of this district would be East Anamosa as shown on the major street, major future street plan as a major arterial road creating Critical transportation utility connection in East Rapid City. This project will construct a portion of East Anamosa, completing the connection of East Anamosa to Elkvale Road and to Highway 44 through the construction of Valley Drive. The project will also construct a connection to the school parcel serving North Rapid City's growing area and population. Project will also reconstruct a portion of Valley Drive south south of Homestead Street to Highway 44 And lastly this will add additional water mains and a water reservoir to the area So there's three applicants Yasmin dream is developer one city of Rapid City developer to elevate and elevate Rapid City total TIF request this is capital costs administration costs and financing costs of 73 million and And the proposed classification of this district is economic development. So with this project, this project and the construction of the infrastructure will allow housing units, employment opportunities at the industrial and commercial properties. As you'll see in an upcoming future land use slide, according to the Rapid City Comprehensive Plan, the undeveloped eastern portion of the proposed boundaries lists as employment. So employment is intended to provide concentrated areas of employment combined with the mix of complimentary commercial uses. Elevate Rapid City as a part of this application, they don't have the responsibility for any infrastructure improvements. They're showing support for this project in an upcoming slide. They do own properties along this future connection that they will start developing right away if the Planning Commission and City Council do approve this district. And so also the, the, the extension of diamond Ridge Boulevard is a needed, uh, and welcomed part of this project by the rapid city area school district, because this is needed for the construction of a property that they own for elementary school. So with the proposed improvements, this will improve the efficiency and safety of the city's transportation system. to improve the capabilities, redundancy in the water distribution system to improve fire protection, reduce existing issues relating to stormwater flooding downstream, improve the quality of life. This will add, as we'll see in an upcoming slide, many housing units, many commercial and industrial and employment opportunities. And this will also greatly improve the needed infrastructure in this part of Rapid City. So this application, Um, or so this, the staff report, I did know a preference that, um, before the, in the beginning part of that, that the staff report differs from the, the application. Do the fact is as city staffers are viewing this application, there was an opportunity to add two major improvements. One is the reconstruction of Valley drive. That's south of home shed street down to highway 44. The city has been looking for going through the grant process because there's just not the CIP available. That connection there is needed to get up to city standards. It's in pretty poor shape. Also, water, with the amount of development that I'll show here in an upcoming slide that's happening currently with TIF 84 that's underneath this TIF, Water is beginning to be an issue, so this will add a water reservoir and some additional water mains. that will help with the water in that area. They're also, through the city, the city was looking for a funding source for that. There's just no room in the CIP. So it was looking to be more on the bond side of things. And if this was to be a bond project to add that water reservoir and the water main needed, that would mean a raise in utility rates. And no one wants that. So adding that project to having the growth within this development pay for that. takes that responsibility off the bonds, that will just keep utility rates as is, as they currently are. So there would be no need to raise utility rates if that's included in this project. So that's just once again, growth paying for growth and taking the burden off the CIP or bonding requirements. And also with these road connections, this will reduce the traffic on Diamond Ridge Boulevard. If you remember, I think there's been a council meeting here in the recently or two, that the residents of Diamond Ridge Boulevard were expressing concerns about the level of traffic using that. And I'll show you the upcoming improvement slide. These connections will help ease the traffic on Diamond Ridge Boulevard. So this is the proposed boundary. I have an overlaying map that I'll show you in an upcoming slide. But this, as you can see, this is East Rapid City. And a lot of this boundary is undeveloped. that was done purposely. The underlying TIF 84 has a high current value, so those were left out. So this is mostly undeveloped property that we'll anticipate to develop pretty quickly once these infrastructure improvements are made. So future land use categories, so the orange there is urban neighborhood, and then off to your left would be the employment, and then there's also little sections here on the corners of industrial. So the major street plan, so a little difficult to see, but I got some better slides upcoming. East Anamosa is a principal arterial. So you can see these dash blues right here. This will make the connection to be able to take East Anamosa all the way out to Elkvale Drive with these improvements. Also Valley Drive, you can kind of see in here the dash green. That connection is not made. So this will make the connection up to, so you can get from Valley Drive off of 44 up to East Anamosa. Also, through TIF 84, the underlying TIF, there was an amendment made to that one. This connection right here, this is Homestead Street. So this connection is currently going in the process of being constructed. So this will get you from Homestead to Valley Drive. And then The last part of this reconstruction of the streets would be Valley Drive here. This is a need of improvement south of Homestead Street down here to Highway 44. And those are collector streets. So this is how they overlay. So the red is the current TIF 84 East Anamosa Street extension. So as you can see within here, There's a large amount of development in here that occurred with TIF 84. Those were left out of the new TIF that will sit on top of it. And per South Dakota Codified Law 11-9, TIFs can overlap with the current legislation. So they just can't exactly overlap. So as you can see here, they do overlap in areas, but it's not exact. So the 2025 equalized tax valuation per the state of TIFF 84 is 257 million. So the original base value of that when it started in 2021 was 37 million. So there's been substantial growth of approximately 220 million through that development in a short amount of time. With that, you'll see an upcoming amortization With the new growth anticipated from this new district and the current payout of the underlying TIF, the underlying TIF is anticipated to pay off around 2031. And with that, when that pays off in full, all of these, this majority of this 257 million plus will go back, flow back through to the title or to the taxing entities so they will not be tied up in this new district, the existing stuff as it sits today. So the project costs, the capital cost of $27 million, the financing costs of $42 million. So also per South Dakota codified law 11-9, financing costs are an eligible expense to be reimbursable. Financing costs are included. So with tax increment financing, development money, developer money is all up front. We have city council, planning commission approve this. There's no funds giving to a developer to make these improvements. The developer creates their destiny with this that they have to, with these improvements, drive that development to create that increment in order for So typically a developer will go out and get a bank loan, a financing loan, and the interest up to a certain point is reimbursable. So the Rapid City TIF policy, with the update in March of last year, the city does limit the interest rate. On these so we do Wall Street prime plus three quarters Wall Street prime is currently Six and three quarters so the max rate reimbursable is seven and a half as it stands today So that'll change with prime, you know, so when these are calculated these are calculated up to that amount so a bank can charge nine percent the city's only going to reimburse you up to that seven and a half whatever's Prime is plus three quarters of that time and the city does monitor that the interest. Along with the cost, the city does monitor that interest. So these are the developer one and developer two responsibilities. So Yasmin Dream, developer one, they are responsible for the Valley Drive extension to East Anamosa. That includes street grading, street lights, sidewalk, and utility improvements. They will be responsible for the extension of Diamond Ridge Boulevard for the school access. They are responsible for the grading and construction of the detention pond 300. The intersection improvements at Highway 44 and North Valley Drive. Then also the financing costs, contingency costs, professional fees are included. Developer 2 is the city of Rapid City. The city's responsibility in this request would be the East Anamosa extension to Elkvale, which includes the street, grading, lights, sidewalk, utility improvements. Utility improvements, water reservoir improvements, and Pond 303 improvements. And then the intersection improvements at East Anamosa Street, Elkvale Road, and North Valley Drive and East North Street. So then the reconstruction of Valley Drive. And I'll show you an upcoming slide. There is an opportunity here for a nice large park. And then so with the... There also was a line item for land acquisition and RO and right-of-way acquisition. The reason being there's going to have to be some potential land purchase and right-of-way acquisition for the extension of East Anamosa Street. And there would be funds available to purchase land for a new park in this area of Rapid City. And so then also financing costs, contingency, and professional fees are also included in the request. These are specific costs to each one of those line items, developer one with financing. Their costs are approximately 15.6 million. The city of Rapid City's with the line items there listed as previously discussed is a little over 58 million with financing costs. So the total developer one and two of this request is approximately $73.7 million to make these improvements. So this is the improvement map of the improvements that are going to be proposed to be made. So right here would show the East Anamosa connection to Elkvale Road. This would be made. Also, there would be two water mains and utility improvements that would be put in with this. And before I forget, I do want to mention, so a big reason that this area of Rapid City right here, just outside of the east of the boundary, has not been developed, Is getting water there So with this these improvements that would get water out to this area to where this this area could now be developed and it's anticipated that it probably would and So with that, the two ponds to help with the downstream water issues. So an intersection improvement here at Elkvale and Anamosa, intersection improvement here at Valley Drive and Highway 44, and an intersection improvement here at East North Street and Valley Drive. So this would also make this extension of Diamond Ridge Boulevard north up to, I believe this is Philadelphia. And with that, normally a residential street city staff does not recommend including these in tips. I did reach out to the school district. Uh, they are very supportive of that connection being made. I don't know of their time schedule to develop this school site right here, but I know it is, uh, uh, important to them. So this would be a cost that would be put onto half of that. Those improvements would be on the school district to make included in here would be a huge benefit. And I'm just kind of a city school kind of partnership there, including that cost in this TIFF, having the girls pay for girls that the funding is available to make that improvement for the school district and take the burden off them to make that connection there. So it's their access to their school site. Also, this pink, I believe that is, this right here, this is the connection of Valley Drive to East Anamosa. That connection does not exist, so that would be put in. And then also right here on the underlying TIF, this is that Homestead Street extension. Once again, those two connections right there are important to alleviate the traffic off Diamond Ridge Boulevard. And then also here, this blue line, that would be the reconstruction of... Valley Drive going south to Highway 44. Included in here having growth pay for growth with this alleviates the CIP funding so that that CIP would be freed up because that's approximately a six million dollar project that can be used on existing infrastructure improvements that can be happened throughout the city so that would free up that funding source. And then lastly, also as we talked about with the issue of trying to find a funding source for the water reservoir, this would be the water reservoir next to the existing one here, also one of the water main improvements. Once again, the importance of having that growth pay for growth, the development in this area, having this water source, having this district pay for that frees up having to go out to find a bonding, which bonding needs a repayment source, which would be a raise in utility fees. this would take care of that issue so we wouldn't even have to go down that route. The city wouldn't have to go down that route. This is the proposed master plan for the project. As you can see, if you remember before, a large section of this overlying district was undeveloped. As you can see here in the yellow with the residential being developed, Elevate owns properties along the proposed connection of East Anamosa. They have committed to start developing those properties right away if this was approved. This shows currently is general egg, but this does on the future land use as employment. So having and I have spoken and I'm sure they're watching, but there are land owners that are very interested in this project that are interesting and developing. They were just kind of waiting for this animosa and the water and the utility improvements to be made. These portions that aren't shown on the master plan as developed, these were not included in the calculation of repayment to be super conservative, meaning if these were developed, that's only going to greatly increase the increment generated to repay back this district quicker. So this is the proposed development that is known at this time. Once again, those areas in the previous slide, they're undeveloped. This doesn't include that. So as you can see, oops. I'm sorry, I'll have to read it to you. So with the residential development, it's proposed 540 new apartment units and then 452 new housing units. Then you can see in here there's a build out proposed with Elevate that may happen quicker with their properties. But as you can see with some of these housing kind of prices, so some of these will be in that affordable housing classification. And according to the South Dakota Housing Authority, to be classified as affordable housing, it's got to be under the first time home buyer's first time purchase price, which is currently, that can change annually, but currently it's $410,000. So you can see here, I believe there's about 85 units of the single family homes that would be under that affordable housing in that first time home buyer. And then there's also possibilities of that commercial industrial areas to be developed in the future with these improvements. So this is the projected increment with the known development. So it's anticipating about $86 million in increment to be generated with these improvements. So you can see the first six years, I put two TIF 84. To be conservative, when I calculated the repayments for developer one and developer two for this new TIF, I backed that income out. Is this showing it going strictly to TIF 84? Because that'll help this one, or help the underlying TIF pay back quicker. So this is TIF 84. So this was anticipated to be paid off as today, approximately 2035, 2036, 2037 area. So the calculation of this, this TIF was established in January of 2021. The base value at that time was 37 million. The current value was at 2025, the last time it was certified by the state, is 257 million. Those were for that TIF was also for street and utility improvements. And then also the city was added as developer two to construct a booster station. So what you're seeing here is as far as the repayment, it shows that with these new improvements added to this, this TIF would pay off approximately four to five years quicker in 2031. So this would be developer one, which is Yasmine Dream. So it's going to be a 50-50 proposed split as far as the increment. The developer one received 50%, developer two being the city would receive 50%. As you can see, this one wouldn't be capitalized interest. Up until 2032, since anticipated, TIF 84 will be paid off in 31. So the 50% interest increment generated would show this would pay off in year 12 of the district, which would be 2037. And so this is the performa for developer one. So they're showing, and this doesn't include the numbers here, the original land acquisition, the holding costs of this. So they're showing without these improvements, if they were to add this, these improvement costs to their development, it would show an approximately $700,000 loss based upon the infrastructure improvements that developer one is providing. obligated to, I guess, as part of this TIF. So for this is for the city developer too. So once again, the city would receive 50% of the generated increment. So the city is anticipated to take, there's more responsibilities in the infrastructure. take longer than developer 1. So it's showing 50% up until 2037 when developer 1 is to be paid in full. Then the city would start receiving that full increment in 2038. So it's anticipated that the city would be paid off in year 19, which would be 2024. So it would pay off within the 20 years. That's even capitalizing the interest for the first five years. as waiting for the underlying TIF to be paid in full. There is some areas of this district that are outside of TIFF 84. If they were improved, would, could we go straight to, uh, this new district? I didn't include that cause that's not known. So to kind of, um, end here, there's 20, uh, active TIF districts in the city as of year end 2025, the state is reporting 277 active TIF districts throughout the state. The TIF base valuation percent total of Rapid City Taxable Income valuation that is with the new Healing Way TIF that was just approved April 20th is 2.20%. As legislation stands today, a max of 10% total valuation is allowable. July 1st, that changes. The 10% changes to 7.5% after July 1. As you can see, the city is still way underneath with the new edge of legislation rules making it stricter on the base valuation. So the city has still got plenty of room. So the breakdown, 12 economic districts, one industrial, three affordable housing, and four local districts make up those 20. And kind of the last slide I always end on. The city council sees this annually. It's a requirement they need to adhere to. to acknowledge it and see this and be able to ask questions about this. I included is it's very important for the Planning Commission to see this as well to make sure these are within that allowable valuation. One thing I if I could just take an extra minute here that I really haven't gone in depth about the importance of this too. You can see over here this is the 2025-2026 increment coming in. So as you can see the East Anamosa which is the underlying TIF There's 3.1 million of increment coming in of these. So then also from 85 down to the new Healing Way 102, these are all created within the last five years. So as you can see, these valuations haven't jumped per SDCL 11-9. Developers have five years to make those improvements after five years of improvements those infrastructure wherever the improvements that are identified in the project plan If they don't get made during that five years, they're just not reimbursable So it takes time for the increment to build and a lot of these these right here haven't been certified yet Which means they're still under construction. So as you can see the this number right here will continue to increase as You know as long as you know block five is the big is the project downtown? As you can see, it was completed. It was certified last summer. It made us jump from zero up to $34 million. And now that that's completed and it's anticipated, that'll probably double that value again next year. So these will start increasing as time. They're relatively new. Uh, with that, um, so there'll be two, two motions, um, eight and nine on the agenda is to a motion to, uh, approve the district, and then the second, item nine, would be to approve the project plan. That concludes my presentation. And Mr. Chair, if it's allowable, the applicant is in attendance with like a couple minutes at some point just to kind of briefly discuss their responsibilities with this request. But with that, I will stand for questions.

Alright, if the. Commission would like to hear from the applicant that might address some of our questions.

Maybe we'll go with that now. Mr Shafi, is that you?

You still have to identify yourself once you're up at the mic though.

Good morning Mr Chairman and members of the Commission. My name is Hany Shafi with dream design and. We're really proud and honored to be part of this true partnership to expand our community's infrastructure into an area that is really a donut hole in the middle of the city. And that can be a great asset to our community and that will allow future expansion. You know, in 2021, we partnered with the city to do an extension of East Anamosa, and I remember when I was at the city 1992 you know that was a dream to us as a community to really do that connection and uh you know unfortunately with the diversity and the land ownership and what have you it was difficult to acquire the right away and it was a challenge to do the grading and the mass grading and of course funding to do all of that and with the i remember actually when i quit the city hall That was one of the first project I did a master plan for is the area behind Menard and you know almost 20 years later it was fortunate enough to really make that dream come through since 2021 as Mike mentioned, you know, I WE WERE ABLE TO CREATE ALMOST, YOU KNOW, LIKE $3 MILLION WORTH OF TAXES, REAL ESTATE TAXES IN THAT AREA WHICH ALLOWED US TO CONSTRUCT EAST AND EMOSA. TO DO THAT, WE ACTUALLY HAD TO DO A LOT OF PRIVATE INFRASTRUCTURE. Valley Drive, we actually connected Valley Drive from east-north all the way to basically Philadelphia, and portion of east NMOSA north was constructed. By the end of July, hopefully we will connect Valley Drive all the way from east NMOSA to Rushmore Crossing. you know which is a huge improvement for our community to allow that access it's a major collector street within the community and to really uh i always push the city to really change the classification of that street to an arterial and that was not successful but now we are beginning to find out that it is really would have been a great connection THERE IS, AS MIKE MENTIONED, THERE IS A SMALL COMPONENT OF ABOUT 1200 FEET SOUTH OF EAST NEMOSA THAT IS NOT CONSTRUCTED. AND THEN THE STREET FURTHER SOUTH ABOUT 2500 FEET IS IN POOR SHAPE. IT'S ABOUT TWO INCHES OF ASPHALT. AND IT'S FALLING APART. With this project, we will continue to construct those which will create a connection from Highway 44 to Rushmore Crossing. As a matter of fact, the day that we submitted this application, there was a major accident at the intersection of Highway 44 and Valley Drive. IF YOU GO TO THAT INTERSECTION, THE ANGLE OF THE INTERSECTION WHERE VALLEY DRIVE CONNECTS TO HIGHWAY 44 IS NOT A 90 DEGREE SO IT'S REALLY HARD TO MAKE IT THROUGH THAT INTERSECTION WITHOUT A TRAFFIC SIGNAL. THAT'S WHY THAT TRAFFIC SIGNAL WAS INCLUDED IN THE DEF. AS FAR AS THE MASTER PLAN, FROM VALLEY DRIVE WEST, Almost, I believe, almost close to $50 million worth of infrastructure was done without a TEF for all the private streets, the water system, the storm sewer system, and what have you. So it's not really that the TEF is just paying for all the growth and all the development. I want to make sure that is clear to all of our taxpayers. 84 was done to construct eastern emosa did major grading at the for valley drive you know and top of the hill to make that feasible because that was a challenge and built two detention ponds we built two other detention ponds at our cost without having the tiff pay for them as far as this project that is currently the tiff being proposed currently for valley drive that is not constructed We own the east side of it, and it's mostly drainage. The west side is owned by somebody else. So if we constructed that street, we really don't have any benefit from it ourselves. But we realize the importance of it, and it will allow that major connection to happen within the community. On the east Anamosa side, we own the north side of east Anamosa. And on that north side, majority of the land that is bordering the street will be actually utilized for a huge detention pond. It's one of the largest in the city, actually. You know, 46 acre feet, which is a lot of area. The south side of the street is owned by somebody else, and I believe the city is acquiring that property so we could secure the right-of-way, or the city could secure the right-of-way. We are going to donate the right-of-way that is needed for East Anamosa and our property. The south side, I believe the city is working with the landowner. We will be paid for the area that is being utilized for the detention pond because it's a regional detention pond. For Diamond Ridge, which will go along the property line between us, this blue area is area where the school is you know a property is located we sold them part of the land and we donated part of it and so that road we will gain benefit on one side to construct the road at our own expense and not recover some of that cost or at least half of it will be difficult and for the school to come up with that funding for their half will be difficult for them. So that road cannot really be built without a TEF. We're working with city staff as far as locating a park. In our plan and our intention is all the green area that we show in this You know, as you look at the west side of Rapid City, there is Skyline Drive Wilderness Area where a lot of our members of the community enjoy walking trails within that area. And we don't have something like that on the east side of town, and the east side of town deserves something like that. So our goal is to actually donate the green area, which is sloped area, to the city and we were hoping to throw in some, you know, either pine tree seed or some other trees so we could have in the future have some greenway that is a true greenway with some walking trails for our community to enjoy. You know, that does not constitute a park and the staff requested that we add a park in that area which is which makes a lot of sense so we're going to work with the park department and with the city staff to identify a flat location not just a slope location maybe like in the tone of 10 to 20 acres to really serve as a community park in which you know playing you know fields you know regardless if it is a basketball hoop similar to the one that we've done at red rock meadows you know or something like that that will serve the community And hopefully that will be located close to the school so the kids from the school could also utilize that. In our master plan, there is a power line as you see going through the property. We added to the easement of the power line to create, I think we added like 25 feet to create a walking trail that connects the community to the school and connects them to hopefully to a future park. You know, this master plan, you know, of course, you know, Mike mentioned the water tower in this area. We actually, that was also another dream that we had as a city in the past since I was working at the city and the master plans that we had in 1992. We had two reservoirs. One is a tank on the ground, you know, about elevation 3400 for overflow, somewhere around there. And an elevated tank that had an overflow elevation of about 3550, 3560, which will match the one that is in the hillside, you know, ground elevation tank in North Rapid, you know, just at Bunker Street. You know, those two tanks will cooperate together and will work together to feed North Rapid and open other areas for growth, regardless if it is east of here and provide better fire flow or areas to the north side of town. Those two tanks will be fed with a booster station that is a $5 million booster station that is at the intersection of Philadelphia and east Anamosa that the city has JUST FINISHED WITH THE PARTNERSHIP WITH TIFF 84. YOU KNOW, WE'RE REALLY PROUD AND HONORED TO BE PART OF THIS, AND WE HOPE TO CONTINUE TO GROW OUR COMMUNITY. THANK YOU, AND IF YOU HAVE ANY QUESTIONS, I'LL BE MORE THAN HAPPY TO ANSWER THEM. THANK YOU.

THANK YOU. WE'LL GO TO ERIC.

Thank you, Mr. Chair. Thank you, Hany. In 1993, my mother introduced me to Hany. You were a restaurateur and a city engineer. I'm not sure if you slept back then, but he had a great little restaurant downtown. And that's when I interned. So I'm really excited to see all this and these dreams coming together. So I'm excited for this. I think it's comprehensive planning. great a solid plan I love the amount of single-family and mixed multifamily together this this really has a nice feel to it and the trails are great I'll remind us all that schools are infrastructure it's not just streets and sewer and water that's infrastructure in a community a school is and that's a that's a huge need for us as we grow I'm also going to remind you some of the soapbox a little here and You know as we are building all these parks. We have to keep our partners at parks Fed meaning you know we have to grow their budget I've continued to harp on this in the past But as parks is growing and their acreage is growing in there and their needs are growing then we need to make sure we keep them in mind as their budget grows to I see Melissa's here for that so I'm going to be supporting this. I'd like to see the future streets plan, if we could. Mike, please. Out of curiosity, I wanted to see that. OK. Thank you. Appreciate it. That's all.

All right, Vince. Thank you, Chair. Mike, you mentioned early on in the presentation that the TIF is going to provide restrictions on increasing utility rates. Which utility rates are you talking about?

So that would be tight. Maybe Director Ainsley can give you a more comprehensive answer.

Dan, introduce yourself. Sure, I'm sorry. Daniel Ainslie, finance director. The council reviewed a water rate analysis, I believe about 18 months ago, 24 months ago, that included several different five years actually of water rate increases of 10% a year. That was to support a variety of projects, this being one of them. as well as a couple other water well projects that we're doing, all sorts of projects. Essentially by taking some of these projects out so that the existing rate payers would not be paying for it, some of those future increases that have already been approved can be readdressed. And so what we're looking at doing in addition to this, but we've secured some more favorable financing for some of the wells, other things like that. It will take us probably 12 more months to finalize kind of this package, but we are looking at revising those rates probably within the next 12 months. There still will need to be the increases that were anticipated, but hopefully they will not be as high as what was already anticipated. And so this is allowing the new growth areas to truly pay for this. Instead, what's been our history is that we've had the existing rate payers pay higher rates to pay the bonds off to pay for this growth. And instead, we're trying to shift it so that new areas of growth are truly paying for their own infrastructure. Okay. Thank you.

Thank you. Karen?

Thank you, Mr. Chair. First, I want to say this is an outstanding project that you've put forth. And Mike, you did a great job of putting all that information into one spot. So I really appreciate that. I don't know who did all the legal description, but that's a handful right there also. This project will obviously make a huge difference to our community, so I think that's outstanding. I do have a couple little questions, I guess. My question on the first one was the bond that you guys are gonna go out for, is that for the whole 58 million that is a city which includes interest or is it something smaller?

So there's no bond. No. So what that was addressing was the importance of having the water reservoir and the water main included with that in this TIF. If those project costs were included in this TIF, having the new development pay for it, that would be a responsibility of the existing you know, residents of Rapid City, the utility payers, that would have been in the form of a bond in order to make those improvements. That's not needed anymore if this TIF was to be approved today and then by the city council. So those costs would actually, the new development would pay for that rather than outside financing.

Okay, so you are going to go out for a bond or not?

No, there would be, all those costs, that would have been for the reservoir are now included in this for the new development to pay for that instead of an outside bond. So that would be, if this was approved, there'd be no need for this project to be included in a bond. So that would be taken out of that and just included in here so there'd be no need for the bond.

Okay, so where's the money come from?

From the new development. So this would be included as a project cost to include the new increment, the new development would pay for the water reservoir. But the upfront, I guess you're saying upfront cost, that would be the city. And then just be reimbursed through the increment.

Okay. I apologize for the misunderstanding.

No, I'm sorry. I think I misunderstood.

I just thought if the city doesn't have any money and you're a CIP, you can't use that funding, where does the funding come from? So I assumed you were going to go out for a bond to pay for the upfront costs.

No. Mr. Anthony?

Mr. Chair, thank you. That's a very relevant question. So with that, the city does have about a quarter billion dollars of cash that we have in our various different pooled accounts. With that, we make various investments, short-term, long-term investments in treasuries as well as in CDs, other instruments like that. we can internally finance some infrastructure projects. That way we capture the interest that would otherwise be going to banks and we can capture that interest for the underlying funds. So essentially we're returning a higher interest back to the residents. And so for this case, it would probably end up coming from some of our utility reserves that we have available that would actually pay for this infrastructure and then the utility accounts would be reimbursed through the TIF process. They would be reimbursed the principal as well as the interest that would be earned from this project. Okay.

I know that you've done that other TIFs that we've had or other projects. So I understand what you're saying. I just got confused with the language and the bond. Okay. That was the question. Second question would be when we're going out to purchase land, I assume that there'll be an appraisal for that land and so it'll Everybody will know what it's worth.

Yes.

OK. The other question I have is I'm pleased to see that half the money will be given to the city and the developer. That sometimes doesn't happen. Sometimes we take the short end. But I'm curious to know how you arrived at the breakdown between what the city is going to pay and what the developer is going to pay and how that breakdown, how did you figure that out? Like the city has 80% of the costs and developer has 20%, which is okay. But I just didn't know how you broke that down to say who's going to pay for this. And so if you can give me an idea of how that worked.

So that was just conversations with the city and the developer. as far as how much generation, the increment generation. So that was just going back and forth, the 50-50 split. As you're right, the healing way was more the previous TIF that was just approved was a 75-25 split between the developer and the city, because the city had 25% of the costs. The 50-50 split seemed appropriate based upon the generation. Increment generation is still going to show the cities and receive its its capital cost plus the the interest back in full within 20 years of that So it was just negotiation back and forth. The city was comfortable with that and past projects. You're right. The city was at the end for example the TIFF 84 for the booster station when the city was added on as developer number two for that the city's at the end and of that, but the city is still going to get repaid in full on that. So this, it was agreed upon that this was an appropriate split and it still protected the city that the city is going to, you know, as it is development occurs, would still be paid in full within those 20 years.

Okay. I just assumed that there were certain things like the water reservoir, which is a large piece, would be something the city would do, and obviously East Anamosa Street. So I was just curious to know, so what you're saying was just negotiation between the two.

On the increment, sorry.

the the the project as a whole started to increase as we were starting to look at this more holistically we were identifying additional projects that would otherwise that are needed to facilitate growth in this area but would that were being identified as being paid for by rate payers or by the cip or by the school district and so that's when we started to look at this and say if there is capacity and if this project is actually going to facilitate growth in this area and other growth then truly we should be having the growth pay for growth and protect the current rate payers as well as protecting our cip and so when we were doing that we started to add the additional projects that were necessary for it and that you know helped save the school district money the rate payers as well as the cip fund but in doing so the overall project cost started to increase so originally We were looking at about 50% developer, 50% city, but then as additional projects came in, it ended up being closer to an 80-20 split. But with that, since truly the developers are the ones that are coming up with the increment, the city's not doing anything really to generate the increment other than doing the infrastructure, it seemed fair to say, okay, let's continue with the 50-50 split we had originally discussed.

That helps a lot. I think that clarifies for me and probably other people who are looking at this tip. It's a huge tip and it has a lot of potential. And it is the developer's responsibility to build all the infrastructure, not infrastructure, but the things that will bring in that cash. And I think that's a heavy load on that developer also. think this is going to be a wonderful addition to our city once it's completed and and so i just applaud you guys for working together i'm sure this took a while to put it all together so and thanks mike for your your project plan that was great thank you kelly

Thank you, Mr. Chair. My question has nothing to do with financing. It looks like John wants to piggyback on the finance. You can go first if you want to respond to that. It's totally up to you.

John?

I might take a minute. Go for it, absolutely.

I've got a whole day. So I can hear the questions that are going to be asked right now about this 50-50 on the financing, and people are going to say that that the developer is getting more money. Well, that's not true. The 50-50 is only being paid off quicker to the developer, and the city is going to get paid off a little, you know, it's going to take a little bit longer. But with the 80-20, because it gets confusing, because you have 80-20, but you have 50-50 on the interest. But the developer is just getting paid off quicker on the 20% than the city is getting paid off on the 80%. But on the 80-20, the reason that it went that way is because, really, 80% of the huge capital costs are outside of the developer's property. And he's probably paying more on that 20% than what he really needs. should be but the tiff is is paying off so quickly and this is great because i absolutely love our finance director these are conversations we've had ever since he has got into place because this is something i've wanted to do for a decade I hate the fact that we have had these successful TIFs in Rapid City and we are paying the banks all this money when we could be getting it back ourselves. Because that money we can use for other capital investments and we can put into this infrastructure that we need. So I'm going to go back a little further. I think everybody here knows that I voted against these water rates. These water rates have been very, very difficult for a lot of people in Rapid City. This is a way that we can capture some of that money back. We can use our growth. This is the second time in six months that we've used our growth positively in that area. I mean, we're also building a new fire department. We're also building, you know, we're using this money now Could it go back into the taxes? Absolutely it could. But then the city is going to have to come up with that money up front, which somehow is going to have to be paid for. So we're pushing that off while that tax coming back in. But I would tell the citizens, if you have questions on this, you know give me a call give daniel call whatever but if you look at what we've done with tips over especially over the last ten years look at what's paid off look at how much we've added into that tax pool and it just increases every year so we've been using the in my opinion tips appropriately i've been a huge fan of them for years and i think that we finally have a method to where we can help take away some of that tax burden on the taxpayers and use this growth to finance these things that we need to do. Because it's hard for the city to come up with $58 million for a project. When you have a capital improvement budget of, I think it's what, 24 million a year now is all it is? This is two full years of our capital improvement budget. And as a city, unless you raise fees and you raise taxes and you raise utility fees, you have to find a way to come up with that money. And I think that's great that we found a way to come up with it, plus make money in the future for the city. So I'm excited. This is something we should have done 10 years ago. So anyway, I'll quit now. Otherwise, I'll talk all day.

Finally.

Thanks, John. I really appreciate that. Mr. Shafi, did you have something to add to that?

Thank you. Thank you, Mr. Chair. You know, people say, you know, negative things about tests. And as John mentioned, you know, we've done a lot of tests, you know, with the city of Rapid City. And if the impact was negative on the city, I guarantee you we would never do a single one. and the impact is always in the numbers. You have to look at the mill levy for Pennington County, compare it to other communities who use less thefts than we do in Pennington County. You take Brown County, you take Lincoln County, you take Minnehaha County, and compare their mill levy, which is their tax rate, compared to Pennington County, and that tells you where we stand and what is the impact of TEFS. So far, our mill levy in Pennington County, due to the growth that is happened in Pennington County in the last 20 years was kept at a lower rate than any of those counties despite of the fact that they don't use TIFs. If the TIFs were going to cause negative impact on our taxpayers, existing taxpayers, then our mill levy would be higher than any one of them because in the last 20 years we have used more TIFs than anybody else. So that gives you one thing. As far as the other questions, I think Daniel answered, him and Mike did a great job. Thank you.

Thank you. Kelly?

It has nothing to do with the tips. I'm sorry. I'm sorry.

To echo Eric. Yeah, I think it's a great application of a TIF. I love the school, the parks, and that light at the intersection of 44, that's been a sketchy intersection for as long as I can remember. This is just a question about how this, I'm talking 10 years into the future, but this development combined with any development on the east side of Elkvale, all the ins and outs to this TIF district are established. I'm assuming Philadelphia will eventually tie into Elkvale. When development happens east and west of Elkvale, what's that going to do to the flow of Elkvale? Because right now, the beauty of it is to go 65 miles an hour to point A to point B. Long term, and this is a city question, how is all of this development going to impact Elkvale, and will that change the function of that vein? Does that make sense?

Kip, we're going to drag you into this one.

Thank you, Mr. Chair. To answer your question, Kelly, Philadelphia Street is currently anticipated to be an overpass over Elkvale Road and not have any direct access to Elkvale Road. And if you look at the topography out there, it's kind of where that big hill is, so it would be very difficult to make any sort of connection to Elkvale. So Philadelphia Street will continue east and west over Elkvale Road, but will not have a direct connection to Elkvale.

All right.

Appreciate it.

Just to add, Kip, before you go, Elkvale is a state highway, correct? Correct. So any new access, changes to access, have to go through the state DOT for approval or redesign?

That is correct. Okay.

All right, Eric Hikas.

Thank you, Mr. Chair. I think there was a little bit of maybe a negative connotation in the past year about TIFs. And we've seen that pushed onto the state capital a little bit. I'm really glad that we're back on track with these kind of projects. I was a little bit disappointed to see the kind of political blowback over the past year of some of the TIF misconstrued, misunderstandings, that sort of thing. With that said, I'm going to move approval of the TIF project. We have to create the boundary first? Yeah. Okay. We'll create the boundary and then approve the plan. Do I need to do it in two separate motions or can I do it in one?

Two separate, please.

Okay. First motion is a creation of the boundary of this TIF project.

Karen seconded Eric's motion to create the district. Discussion on the district. I'm just gonna chime in with my usual question. This time I'm just gonna go to the city. I counted seven districts now where the city has a developer role and on a lot of those, I think this split is better than some of the deals we've made in the past, frankly. But there's still a deferred portion. I just want to make sure that the analysis has been done, that the city has the money to cover those carrying costs. Because I agree with John. We are getting paid back. I just want to make sure that we get to that point without any heartache.

Yep, absolutely. Director Ansley and I have discussed that in great detail as far as what the city's I guess threshold is and I and so this this definitely fits within that. Yep, and absolutely there are several projects right now. Some of them are city led will get the 100% increment, but no, absolutely that has been analyzed and we I actually go through all these these amortizations monthly and then with the income the state sends or the county sends us increment reports monthly. So we update these and then It goes through an annual audit process when, as long as the city, along with the city goes through its annual audit, the CPAs also look through these amortizations to kind of make sure everything's in check. So we are, it's a great question. We are keeping a very close eye on it.

Okay. All right, motion on the floor is to approve creating the district. Any other comments, questions on it? All those in favor, please say aye. Aye. Any opposed? Motion carries. That takes us to item number nine, which was the project plan. I assume we've pretty much heard it from Mike. Yes, Mr. Chair. Any questions on item nine, which is 26TI005? All right, Vince. Vince made the motion to approve the project plan. And Jeff seconded that motion. Any discussion on the motion to approve the project plan? Oh, Eric, sorry.

Can you two quiet down while we're voting? You guys okay out there? Okay, good. Making sure.

All right, motion on the floor is to approve the project plan for this East Rapid City Transportation Improvement District. All those in favor, please say aye. Aye. Any opposed? Motion carries. End of the regular agenda. Any staff items today, Vicki?

One quick thing, just a reminder that we are getting set to launch our future land use plan update where we do an outreach into each of the wards. Those will start the first week in July. We will keep the Planning Commission and the City Council abreast. We've coordinated with the school district. They have been very gracious to work with us and open up their facilities. So within each ward, we will hold a neighborhood meeting. And remember, even though this is a land use designation, this is the tool that we use to ensure that that sense of community is preserved throughout every area of Rapid City. So the more participation we have, the better end product we will get.

Vicki, does that include open houses and that? This was a long ago project that I was part of way back when. Absolutely.

And that's exactly what we do. We go out into each ward. We let the public know when the event will be. We typically get a pretty decent turnout. and see what's missing from those that live in that area. What do they need to secure that sense of community, those services that are still lacking? And through that zoning designation, we can help fill that gap as we move forward.

All right. Thanks. Anything from the commission for discussion today?

Eric.

Eric. Thank you, Mr. Chair. Can we get back to the HOA thing? I think that was a good conversation we had. So the HOA aspect, and I think the comments that were made by this commission about having this mixed income approach, I think they'll bring some seniority onto that group's board. And that's an astute comment made by you, Eric. And I know that the planning department knows that we do not enforce HOA's regulations, and we don't send the police if somebody's got the wrong color of fence, that sort of thing. But they're tricky, and I think there's a bit of trust that goes into those. There's always that one person having formed a couple of them and then kind of got them jump started. There's always that one person who really takes their role on the HOA very seriously. And sometimes that abuse of power can be a little bit tough on a neighborhood too. So I'm excited to see this habitat thing work. Hopefully it does work well.

So just throwing that out there.

All right. Anything else from the commission? Okay, Karen made the motion to adjourn. Vince seconded that motion. All those in favor of adjournment, please say aye. Aye.