Sioux Falls City Council votes for $90 million Foundation Park TIF
SIOUX FALLS, S.D. (Dakota News Now) - The Sioux Falls City Council is set to make a decision Tuesday on an agreement that the Sioux Falls Area Development Foundation is proposing for Foundation Park.
The agreement would help with building infrastructure and fulfilling other needs as more businesses come to the fast-growing industrial hub near the intersection of I-29 and I-90.
The Sioux Falls Area Development Foundation says the TIF, or Tax Increment Financing, would help them with infrastructure needs, especially the building of roads on the north side of Foundation Park.
“The issue that we’re up against is we don’t have infrastructure to that Northern sight, and that’s why we did this because we have to extend infrastructure to accommodate CJ Foods in that Northern piece. Amazon gave us the ability to collect some increment for us to start that process, so over the next five years we have to install all of that infrastructure. Without the TIF, we wouldn’t be able to do that we’d have to borrow lots and lots of money and we don’t have enough collateral basically to back that,” said Sioux Falls Area Development Foundation President Bob Mundt.
The Development Foundation is asking for a TIF of just over $90 million, and like most things, there are positives and negatives.
“What’s really happening is the development foundation is going to have an additional tool to recruit businesses to town that maybe pay a living wage,” Sioux Falls City Councilor Pat Starr said. “The negative side is we are in a boom-type of economy right now and the real question is, do we need to incentivize additional growth? We already have a housing shortage.”
Foundation Park has about 270 acres on the Northern edge still available, which this TIF could help with bringing more tenants to the area.
“We hope that we can go forward with this because there are not many other options that we have,” Mundt said.
The Sioux Falls City Council passed the agreement Tuesday 7-1.
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