NewsJune 27 2018

County Commissioners establish Tax Increment District Number One

Posted by Lucy

County Commissioners establish Tax Increment District Number One
 
Angela Eves/LCH 
 
   With the construction of the Dakota Mill and Grain load-out facility located east of Presho, the Lyman County commissioners have identified the need for road and bridge repairs necessary to accommodate the increasing amount of traffic near the facility. These infrastructure improvements are estimated to cost approximately $3 million. 
   Brian McGinnis, Planning and Development District III Community Development Specialist, of Yankton recently met with the board and explained the options for financing these improvements. One option would be to create a Tax Increment Financing (TIF) District.  
   McGinnis explained that a TIF District is a way for a city or county government to finance infrastructure improvements to a particular area. The county sells bonds to finance infrastructure improvements. The money generated from the taxes of the increment value, or the difference between the value of the unimproved land and the finished property, is used to pay off the bonds. 
   All levels of local government, with the exception of the school district, continue to receive the same amount of property taxes that they have received previously until the bonds are paid in full. TIF districts do not result in the loss of property tax revenue for the entities that collect them, it merely delays the increase to them. 
   The commissioners established the boundaries of this district during their monthly board meeting held Tuesday, June 19. While the commission has not determined whether they will utilize this type of financing, establishing the district was necessary to determine land valuations and to consider the option. 
   The boundaries include the road right-of-ways and lots from 308th Avenue from SD Hwy 248 north to County Road 14, County Road 14 from east Presho city limits to 309th Avenue, and 306th Avenue from SD Hwy 248 to County Road 14. 
   These boundaries are sent to the Department of Revenue and Regulation in order to establish a base value for the land, which will be assessed based on bare agricultural land.  
   Other options for financing included an Agri-business grant, Bridge Improvement Grant, which the county is not eligible for two years, and a State Infrastructure Bank loan at zero percent interest.  
   The county will apply for the Agri-business grant in July. The Agri-business grant provides up to $600,000 with an 80/20 cost share for road improvements. 
   For more details on the meeting see County Commissioner minutes on page 9 in this week's Lyman County Herald.

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