Rapid City plans 38-unit affordable senior housing project on North Street
July 04, 2025 | Rapid City, Pennington County, South Dakota
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The Rapid City Planning Commission recently discussed a significant new Tax Increment Financing (TIF) application aimed at developing affordable senior housing in the city. The proposed project, located on the 300 Block of North Street, will consist of 38 apartment units designated for seniors aged 55 and older, with a focus on income-qualified tenants earning 60% or less of the Area Median Income (AMI).
The project is set to offer one-bedroom units at approximately $955 per month and two-bedroom units at around $1,001.45 per month, making it a viable option for low-income seniors. The total estimated cost for the development is over $10.6 million, with the TIF request amounting to approximately $4.6 million. This funding will cover site improvements and financing costs, including administrative fees for both the city and county.
During the meeting, concerns were raised regarding the size of the TIF subsidy, which is significantly higher than previous projects. For instance, the subsidy for the recently approved Canham Heights project was just under $50,000 per unit, while this new proposal would exceed $120,000 per unit. The planning staff recommended denying the request due to these financial concerns, particularly the anticipated shortfall in TIF income over the 20-year repayment period.
The developer, Blue Line Development, defended the proposal, emphasizing their commitment to ensuring the project remains financially viable without burdening taxpayers. They highlighted their previous successful projects in Rapid City and assured the commission that they would provide corporate guarantees for the repayment of the TIF loan, aiming for full repayment by year 18.
If approved, construction is expected to begin later this fall, with completion anticipated by November 2026. The project aims to address the pressing need for affordable housing options for seniors in Rapid City, contributing to the community's overall housing strategy. The commission's decision on the TIF application will play a crucial role in determining the future of this important development.
The project is set to offer one-bedroom units at approximately $955 per month and two-bedroom units at around $1,001.45 per month, making it a viable option for low-income seniors. The total estimated cost for the development is over $10.6 million, with the TIF request amounting to approximately $4.6 million. This funding will cover site improvements and financing costs, including administrative fees for both the city and county.
During the meeting, concerns were raised regarding the size of the TIF subsidy, which is significantly higher than previous projects. For instance, the subsidy for the recently approved Canham Heights project was just under $50,000 per unit, while this new proposal would exceed $120,000 per unit. The planning staff recommended denying the request due to these financial concerns, particularly the anticipated shortfall in TIF income over the 20-year repayment period.
The developer, Blue Line Development, defended the proposal, emphasizing their commitment to ensuring the project remains financially viable without burdening taxpayers. They highlighted their previous successful projects in Rapid City and assured the commission that they would provide corporate guarantees for the repayment of the TIF loan, aiming for full repayment by year 18.
If approved, construction is expected to begin later this fall, with completion anticipated by November 2026. The project aims to address the pressing need for affordable housing options for seniors in Rapid City, contributing to the community's overall housing strategy. The commission's decision on the TIF application will play a crucial role in determining the future of this important development.
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