Urban3, a geospatial finance firm, presented an economic analysis to Rapid City’s Public Works Committee on Dec. 9 that found downtown mixed‑use properties and some medium‑density residential typologies generate substantially more revenue per acre than big-box retail and low‑density single‑family neighborhoods.

Heather (Urban3 presenter; introduced by the committee) explained the firm’s “value‑per‑acre” approach and showed examples comparing a downtown building that produces hundreds of thousands of dollars per acre in tax value and jobs to large retail sites that consume many acres but return far less per acre in taxes. Urban3 estimated the city‑to‑county productivity ratio at about 1:28 and called Rapid City a regional economic driver because of high downtown productivity and large surrounding exempt federal lands.

The presentation also included a fiscal and infrastructure audit. Urban3 estimated Rapid City currently spends roughly $24 million a year on roads but would need nearer $81 million to maintain a higher pavement standard—an apparent annual shortfall of about $57 million. Similar shortfalls were identified for pipes and stormwater in the presenter’s model. Urban3 attributed some low productivity of higher‑density parcels to off‑street parking areas and recommended reconsidering parking requirements where appropriate.

On tax increment financing (TIF), Urban3 explained South Dakota’s 20‑year TIF lifecycle and said revenue generated inside a TIF is dedicated to that geography during the TIF term and then rolls back to the general property tax base when the district dissolves. The firm recommended rebalancing Rapid City’s TIF portfolio toward higher‑density mixed‑use development and using its development‑evaluator tool to compare municipal net returns per acre when negotiating with developers.

Councilmembers thanked Urban3 and discussed using the analysis to guide zoning, TIF decisions and CIP planning. Vicki Fisher and other council members noted the analysis can help make the case for allowing duplexes, triplexes and other 'missing middle' housing types more broadly to improve fiscal sustainability.