SPEARFISH — City officials have approved a new tax increment financing district, (TIF) TIF 6, to help offset the cost of constructing the infrastructure that will form the base for Sky Ridge.
“The city will construct the road and utility infrastructure (water and sewer lines and arrange for the dry utilities of electricity, natural gas, internet/phone) and once they are finished, the city will sell the individual house lots to Dream Design International (DDI) at a set price per contract,” Michelle DeNeui, Spearfish finance officer explained.
Construction has recently begun on the site, which is located on Colorado Boulevard near Exit 17. TIF 6 was approved by the city council for up to $17,764,919 of spending. As infrastructure is completed and individual lots are sold, the increased valuation of each lot will be applied to repaying the TIF 6 debt.
“Once the city sells the lots to DDI, they become taxable property and are added back onto the property tax rolls maintained by Lawrence County,” DeNeui said.
DDI will be responsible for the property taxes until the individual takes ownership of the property. TIF 6 is set for a maximum of 20 years; once that debt is repaid DeNeui said the city estimates receiving around $321,644 in additional property taxes annually.
The first homes scheduled for construction at Sky Ridge will show up in 2021-2022.
The city recently approved agreements with Vast Broadband and Montana Dakota Utilities Company, which will allow the two companies to install their own hook-up and infrastructure support systems on the property at no cost to the city.
During the council’s Oct. 5 meeting, city administrator Mike Harmon said the progress of the Sky Ridge project has been incredible, with 40 people on the waiting list for houses of the approximately 140 in development as of the time of that meeting.
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