By Dave Baumeister, County Correspondent
SIOUX FALLS – When the Minnehaha County Commission met this week, members got a thorough briefing on the development for a TIF district to house the new Amazon distribution center.
Bob Mundt of the Sioux Falls Development Foundation and Dustin Powers with the City of Sioux Falls talked about the 540-acre Tax Increment Funding District No. 23, also known as Foundation Park North.
This industrial park will be located within Sioux Falls boundaries to the north on the land slightly north of I-90 and west of I-29.
Mundt pointed out that Sioux Falls is no longer competing with Brookings, Watertown and Fargo for business, but instead, competes with Kansas City, Omaha and Des Moines.
The Amazon distribution center and new Foundation Park North allow for that competition and development.
While the park is slated for 540 acres, Amazon will only be requiring 80 acres of that area, leaving the remaining land available for other projects.
Commission chair Dean Karsky directed “knowing” questions about TIF districts to Mundt and Powers to help explain what those were and how taxpayers are affected.
Mundt said that the way things work for tax increment funding, the land in question is frozen at the current taxing level, in this case, $70,000.
However, as the park grows, much more money will be available for taxing, and the eventual amount of $94 million will still be collected, but with the TIF district, that money is earmarked to be put back into the industrial park for the development of roads, water, sewers, retention ponds, grading, and other needed infrastructure.
Powers explained other TIF districts developed by Sioux Falls in the past come with a 20-year timeline, as set by state law, but the designated monies for those projects are often used up early.
As soon as they are used up, property taxes on the lands and business in question go back into the general fund coffers.
According to Mundt, those taxes are estimated to be around $24 million annually.
The overall tax base is estimated at $1.4 billion, with the potential of bringing in thousands of permanent jobs when completed, plus the addition of the temporary construction jobs prior to completion.
One of the problems Mundt discussed was the lack of housing, but that is one area where other Minnehaha municipalities, like Crooks, Hartford, Brandon, Garretson, etc. might see an influx of people in the future.
The commission finished up their meeting with some other routine business, and their next meeting is scheduled for Tuesday, Feb. 16, 9 a.m., in the county administration building at 6th and Minnesota in Sioux Falls.
The public is encouraged to attend any meeting, and time for public comment is always allotted.
