South Dakota Gov. Larry Rhoden issued $1 million Tuesday from an economic development fund under his control to support an industrial and business park in Rapid City.
The money comes from the Future Fund, which is built up through fees submitted by employers when they pay taxes to support unemployment benefits.
The governor awards the dollars at his discretion, although a state law that took effect July 1 places new restrictions on the fund, including a more detailed description of acceptable uses and a requirement that awards must be recommended by the Governor’s Office of Economic Development.
The grant to benefit Rapid City comes atop a $7.5 million loan approved by a governor-appointed board in May from the state’s Revolving Economic Development and Initiative Fund, known as the REDI Fund. It offers low-interest loans to startup firms, businesses that are expanding or relocating, and local economic development corporations. Of that, $2 million is allocated for purchasing land and $5.5 million is for infrastructure.
Another $1 million is coming from the city’s economic development partnership, Elevate Rapid City, which is overseeing the project and was awarded the state funds. The project is part of Rapid City’s Catalyst Tax Increment Financing District. TIF districts capture new and higher property tax revenue to pay off initial financing needed to develop a site.
Elevate Rapid City will use the money to help prepare 128 acres of land near Haines Avenue and Mall Drive in the northern part of the city. That infrastructure is meant as an incentive for businesses considering expanding or locating in Rapid City, according to Jack Valentine, president and CEO of Elevate.
“This investment in Northline Business Park will give local businesses room to grow and help Rapid City compete for new employers,” Valentine said.
Elevate hopes to have sites ready to build on in 2027.
In a press release on the Future Fund award, Rhoden said the money will help “ensure Rapid City can compete for tomorrow’s jobs, businesses, and investments.”
Rhoden has awarded Future Fund dollars to several projects this year, including a $1 million grant last week for Mitchell to develop a business and industrial park.
Originally published on southdakotasearchlight.com, part of the BLOX Digital Content Exchange.
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