BlueLine secures TIF approval for 40-year affordable senior housing project in Rapid City
July 04, 2025 | Rapid City, Pennington County, South Dakota
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The Rapid City Planning Commission convened on July 10, 2025, to discuss a significant affordable housing project aimed at seniors earning 60% of the area median income (AMI) or less. The meeting highlighted the project's reliance on Tax Increment Financing (TIF) to ensure its feasibility and long-term affordability.
The project, managed by BlueLine, is set to maintain affordability for 40 years, with projections indicating that the TIF will be fully repaid within 20 years. The city stands to gain $2.4 million in interest payments, alongside an initial investment of $2.2 million in capital improvements. The project is positioned on a long-vacant infill site, utilizing existing infrastructure, which proponents argue represents the best use of the land.
During the meeting, a representative from BlueLine emphasized the critical need for TIF funding, noting that without it, the project would not be viable due to a lack of alternative funding sources. The representative also shared that the demand for affordable housing is evident, citing over 300 applications received for a similar project, Sagebrush Flats, which has seen a steady influx of interest despite a slower-than-expected rental process.
Commission members raised questions regarding the impact of the TIF on existing businesses in the area. It was clarified that the TIF would not alter the tax rates for current businesses, whether they are tax-exempt or on the tax rolls. Any increase in property values would contribute to the TIF repayment rather than affecting existing tax obligations.
Concerns were also voiced about the substantial subsidy required for this project compared to previous developments. The staff noted that the project's smaller scale results in higher per-unit costs, necessitating a larger subsidy to make it financially feasible.
The meeting concluded with a recognition of the pressing need for affordable housing in Rapid City, particularly for seniors, and the potential benefits of the proposed project for the community. Further discussions and evaluations are expected as the commission continues to assess the project's implications and funding strategies.
The project, managed by BlueLine, is set to maintain affordability for 40 years, with projections indicating that the TIF will be fully repaid within 20 years. The city stands to gain $2.4 million in interest payments, alongside an initial investment of $2.2 million in capital improvements. The project is positioned on a long-vacant infill site, utilizing existing infrastructure, which proponents argue represents the best use of the land.
During the meeting, a representative from BlueLine emphasized the critical need for TIF funding, noting that without it, the project would not be viable due to a lack of alternative funding sources. The representative also shared that the demand for affordable housing is evident, citing over 300 applications received for a similar project, Sagebrush Flats, which has seen a steady influx of interest despite a slower-than-expected rental process.
Commission members raised questions regarding the impact of the TIF on existing businesses in the area. It was clarified that the TIF would not alter the tax rates for current businesses, whether they are tax-exempt or on the tax rolls. Any increase in property values would contribute to the TIF repayment rather than affecting existing tax obligations.
Concerns were also voiced about the substantial subsidy required for this project compared to previous developments. The staff noted that the project's smaller scale results in higher per-unit costs, necessitating a larger subsidy to make it financially feasible.
The meeting concluded with a recognition of the pressing need for affordable housing in Rapid City, particularly for seniors, and the potential benefits of the proposed project for the community. Further discussions and evaluations are expected as the commission continues to assess the project's implications and funding strategies.
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