Planning commission approves TIFF District 47 boundaries and project plan for 123 North Main

The Mitchell Planning Commission voted to set boundaries and approve the project plan for Tax Increment Financing (TIFF) District 47, a downtown renovation proposal for 123 North Main Street. The commission approved two motions: one to set the TIFF boundary and a second to recommend approval of the TIFF project plan.

Staff said the project covers a basement and three floors and will be renovated in approximately five phases to stabilize the building and convert the upper floors into five to six short‑term rental units with commercial space on the first floor. The staff presentation listed total project costs of $2,526,855.30 and noted TIFF‑eligible expenses of roughly $785,000; the developer requested discretionary costs and grants of $190,787. The staff memo and counsel said the city would act as a grant pass‑through and would have no obligation to pledge city funds; the TIFF would not exceed 20 years. The commission also noted a provision reserving the right to apply a future county administrative fee to TIFF proceeds should state law authorize that fee.

Don Peterson, attorney for the developer, said the owner would invest substantially in the property: “He’s putting about $2 million into it,” Peterson said, adding that the TIFF request represented a small portion of the total investment. Developer John Adamo was named in the project plan as the project lead.

Staff and counsel reminded the commission that the TIFF remains subject to state classification; if the South Dakota Department of Revenue does not preliminarily classify the district as economic development, the TIFF would not be finalized. Staff also noted statewide limits on TIFF exposure and said the city’s current total taxable value exposure is below the percent cap cited in the staff presentation; staff referenced a reduction in the statutory cap from 10% to 7.5% effective July 1.

The motions carried. The commission approved setting the TIFF boundary and approving the project plan by voice and roll‑call, and the project will proceed to the next administrative steps described in the developer agreement and TIFF documents.

The commission did not commit city funds; staff emphasized that eligible costs must be certified by the developer and that any pass‑through payments will be limited to eligible project costs identified in the approved project plan.