HomeMy WebLinkAbout2025_02_18 CC Study Session PacketCity Council
City of Brookings
Meeting Agenda - Final
Brookings City Council
Brookings City & County
Government Center
520 3rd St., Suite 230
Brookings, SD 57006
Phone: (605) 692-6281
"We are an inclusive, diverse, connected community that fuels the creative class, embraces sustainability
and pursues a complete lifestyle. We are committed to building a bright future through dedication,
generosity and authenticity. Bring your dreams!"
Community Room, Room 3006:00 PMTuesday, February 18, 2025
Study Session
The City of Brookings is committed to providing a high quality of life for its citizens and fostering a diverse
economic base through innovative thinking, strategic planning, and proactive, fiscally responsible municipal
management.
6:00 PM STUDY SESSION
1. Call to Order / Pledge of Allegiance.
2. Record of Council Attendance.
3. Action to approve the agenda.
4. Open Forum.
At this time, any member of the public may make a brief announcement or invitation, or
request time on the agenda for an item not listed. Items to be added to the agenda will
be scheduled at the end of the meeting. Individuals will state their name and city of
residence for the record. Public Comment is limited to a maximum of three minutes per
person. The comments and views expressed by the public are those of the speakers
and do not necessarily reflect the views or positions of the City of Brookings or City
Council.
5.ID 25-0005 Presentation: Development Districts & Overlays
Memo
Presentation
Municipal Code - Overlay Districts
State Code - Tax Increment Financing Districts
Attachments:
Page 1 City of Brookings
February 18, 2025City Council Meeting Agenda - Final
6. City Council member introduction of topics for future discussion.
Any Council Member may request discussion of any topic at a future meeting. Items
cannot be added for action at this meeting. A motion and second is required which
states the topic, requested outcome, and time frame. A majority vote is required.
7. Adjourn.
Brookings City Council: Oepke G.Niemeyer, Mayor; Nick Wendell, Deputy Mayor
Council Members Wayne Avery, Holly Tilton Byrne, Bonny Specker, Brianna Doran, Andrew Rasmussen
Brookings City Council Staff:
Paul M. Briseno, City Manager Steven Britzman, City Attorney Bonnie Foster, City Clerk
Public Comment is limited to a maximum of three minutes per person. Individuals will give their name and city of
residence for the record. Public Comment may be submitted prior to the meeting by the following means: 1) Email
comments to the City Clerk (cityclerk@cityofbrookings-sd.gov), or 2) participate remotely. Comments provided will
become part of the official record and subject to review by all parties and the public. The comments and views
expressed by the public are those of the speakers and do not necessarily reflect the views or positions of the City
of Brookings or City Council.
Meetings are broadcast live and recorded. Go to www.cityofbrookings-sd.gov for more information. Government
Channel Rebroadcast Schedule: Wednesday 1:00 pm / Thursday 7:00 pm / Friday 9:00 pm / Saturday 1:00 pm
(Swiftel Channel 20 / MediaCom Channel 9)
Upon request, accommodations for meetings will be provided for persons with disabilities. Please contact the City
ADA Coordinator at (605) 692-6281 at least three (3) business days in advance of the meeting.
Page 2 City of Brookings
City of Brookings
Staff Report
Brookings City & County
Government Center, 520
Third Street
Brookings, SD 57006
(605) 692-6281 phone
(605) 692-6907 fax
File #:ID 25-0005,Version:1
Presentation: Development Districts & Overlays
Summary and Recommended Action:
In October 2024, City Council requested a study session on zoning and the difference between
several development districts. This presentation will give an overview of the Commercial Corridor
Overlay District, Planned Development Districts, and Tax Increment Financing Districts.
Attachments:
Memo
Presentation
Municipal Code - Overlay Districts
State Code - Tax Increment Financing Districts
City of Brookings Printed on 2/13/2025Page 1 of 1
powered by Legistar™
City Council Agenda Item Memo
From: Samantha Beckman, Assistant to the City Manager
Council Meeting: February 18, 2025
Subject: Presentation: Development Districts & Overlays
Presenter: Mike Struck, Community Development Director
Summary and Recommended Action:
In October 2024, City Council requested a study session on zoning and the difference
between several development districts. This presentation will give an overview of the
Commercial Corridor Overlay District, Planned Development Districts, and Tax
Increment Financing Districts.
Item Details:
The City of Brookings’ Future Land Use Map provides the long-term vision for how land
in the City should be developed to support growth and quality of life. Zoning Districts
establish the types of uses and specific land regulations to ensure compatibility in
neighborhoods. Overlay Districts build upon this by adding targeted regulations to
specific areas, enhancing aesthetics, functionality, and economic vitality. Together,
they guide Brookings’ development from broad vision to detailed implementation.
Commercial Corridor Overlay (CCO) Districts are an additional zoning overlay district
applied to the City’s main commercial corridors to boost economic vitality and create an
inviting community appearance. This overlay district works at attracting businesses,
improving property values, and aligning with the City’s brand as an accessible and
vibrant community. CCO Districts are located along 1) 6th Street from Western Avenue
to 34th Avenue, 2) 20th Street South from Main Avenue to 34th Avenue, 3) Main Avenue
from the Railroad Tracks to 32nd Street South, and 4) 22nd Avenue from 6th Street to
32nd Street South. CCO Districts aim to regulate building aesthetics, parking, and
building placement to promote cohesive architectural themes, and improve pedestrian
and vehicular safety.
A Planned Development District (PDD) is a zoning overlay district that allows for more
flexible, comprehensive planning and development than traditional zoning regulations.
It is typically used for large, complex, or mixed-use developments where standard
zoning requirements might not accommodate the desired layout or land use mix. PDDs
are implemented to encourage innovative and efficient land use planning and provide
developers flexibility while still requiring the submission of detailed plans.
A Tax Increment Financing (TIF) District is a financial tool for developers and
municipalities to leverage future year’s anticipated property tax revenues to fund
infrastructure and community improvements within a specific TIF District. TIF Districts
can help developers overcome initial cost barriers for projects. A TIF can also help fund
public improvements such as streets, utilities, and drainage improvements. The State
of South Dakota gives municipalities the authority to create a TIF District and def ines
eligible expenses. The City applies a rigorous evaluation process to TIF applications to
ensure alignment with City policies.
Legal Consideration:
None.
Strategic Plan Consideration:
Fiscal Responsibility – The City of Brookings will responsibly manage resources
through transparency, efficiency, equity, and exceptional customer service.
Safe, Inclusive, Connected Community – The City of Brookings will create an
environment for inclusive programs, gathering places, and events where the
community can safely live, work and come together to participate in opportunities
for learning, recreation and enjoyment.
Service and Innovation Excellence – The City of Brookings will provide an
accessible environment committed to ongoing innovation and outstanding service
through listening and engagement.
Sustainability – The City of Brookings will meet environmental, community and
economic desires and needs without compromising future generations’ quality of
life by strategically planning, implementing and maintaining infrastructure and
facilities.
Economic Growth – The City of Brookings will support effective diversified
community investment and equitable opportunities for prosperity.
Financial Consideration:
None.
Supporting Documentation:
Presentation
Municipal Code – Overlay Districts
State Code – Tax Increment Financing Districts
Development Tools
Planned Development Districts (PDDs)
Commercial Corridor Overlay Districts
Tax Increment Financing (TIF) Districts
•Future Land Use
•Zoning
•Overlays
Overview
Future
Land Use
Zoning
Overlays
Commercial Corridor Overlay
•What Is It?
‣Additional zoning layer applied to
commercial corridors to enhance
aesthetic, functional, and economic
aspects
•Where Is It?
•Key Features:
‣Regulates landscaping, and building
aesthetics
‣Promotes cohesive architectural
themes
‣Aims to improve pedestrian and
vehicular access
•Examples in Brookings
Commercial Corridor Overlay
Starbucks –2008 22nd Ave S
BWell –2118 Main Ave S
•What Is It?
‣Customized Zoning Tool for Flexible Land Use & Design Regulations Tailored
to Specific Developments
•Key Features:
‣Site Specific Zoning Agreements
‣Flexibility in Permitted Uses & Development Standards
‣Encourages Innovative Design
Planned Development Districts (PDDs)
PDD Examples
Trails Head –1130 Main Ave S
Lofts @ Parkhill –1116 6th Street
•What Is It?
‣Financial tool that uses anticipated
property tax revenue increases to
fund infrastructure and community
projects
•Key Features:
‣Helps overcome initial development
cost barriers
‣Reinvestment in the designated
area without increasing taxes
citywide
Tax Increment Financing (TIF) Districts
•Base Value (Current Assessed Value) = $200
•Taxable Valuation (Completion of Project) = $1,000
•Increment = $800
Increment is available to reimburse the eligible project
costs
TIF Example
$0
$200
$400
$600
$800
$1,000
$1,200
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Revenue
Year
TIF Revenue Production
Base Revenue Increment
Ramp up period
to reach
maximum value
typically over five
$14,200 of
increment generated
over 20 years to support
TIF eligible expenses
•TIF # 5 –32nd Avenue
‣Economic Development
‣$1.7M Total Increment
‣Street construction, drainage improvements
•TIF # 10 –15th St S/7th Ave S
‣Workforce Housing
‣$3.3M Total Increment
‣Street construction, drainage improvements
TIF Examples
Questions?
Chapter 94 - ZONING
ARTICLE IV. - DISTRICT REGULATIONS
DIVISION 2. OVERLAY DISTRICTS
Brookings, South Dakota, Code of Ordinances Created: 2024-11-12 08:15:18 [EST]
(Supp. No. 18)
Page 1 of 11
DIVISION 2. OVERLAY DISTRICTS
Sec. 94-163. Planned development district ("PDD").
(a) Intent. It is the intent of this planned development district ("PDD") to provide flexibility from conventional
zoning regulations with increased public review for PDD projects in order to:
(1) Encourage well-planned, efficient urban development.
(2) Allow a planned and coordinated mix of land uses which are compatible and harmonious, but were
previously discouraged by conventional zoning procedures.
(3) Encourage more creative, higher quality and more ecologically sensitive urban design with special
consideration given to projects which incorporate desirable design features such as underground
parking, orientation or design to take advantage of passive solar energy, environmental preservation,
historic preservation, handicapped accessible structures, unique use of open spaces, or other desirable
design features.
(4) Improve communication and cooperation among the city's land developers and interested residents in
the urbanization of new lands and the renewal of existing deteriorated areas.
(b) Scope of section provisions. The regulations set forth in this section are the district regulations in the planned
development district, hereafter sometimes referred to as "PDD".
(c) Compliance with the comprehensive plan. The development within the planned development districts (PDD)
shall comply with the policies and design standards of the existing comprehensive plan of the city. Planned
developments within the PDD and adjacent projected developments shall be compatible with each other.
(d) PDD application, zoning. Applications for a change of zoning to a planned development district are subject to
the requirements of section 94-7.
(e) Initial development plan. A request for a rezoning to a planned development district shall be accompanied by
an initial development plan. The plan shall be submitted at least 20 days prior to the planning commission
meeting in which it is to be heard. The planning commission shall review the initial development plan and
forward its recommendation, with or without modifications, to the cit y council. The following information
must be specified on the initial development plan:
(1) Project name and legal description.
(2) A preliminary subdivision plan in compliance with all applicable subdivision regulations.
(3) The proposed development scheme showing the following information:
a. The proposed land uses including the number and type of proposed residential buildings, the
proposed number of dwelling units per building, the number and type of any proposed
nonresidential buildings, and their square footage.
b. The proposed maximum density of the development. Where unique physical, environmental or
design characteristics exist or are proposed, lesser densities may be desirable.
c. The proposed maximum height. Where unique physical, environmental or design characteristics
exist or are proposed, lesser heights may be desirable.
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(Supp. No. 18)
Page 2 of 11
d. Proposed design features illustrating compatibility with the surrounding environment and
neighborhood.
e. Anticipated sub-area development sequence.
f. The proposed setbacks and buffer zone regulations.
(f) Final development plan. Prior to obtaining building permits for construction on any lots in the PDD, a final
development plan shall be submitted to the planning commission, which shall have sole authority to
approve, amend, or deny said plan. The final development plan may be submitted in conjunction with the
initial development plan for concurrent approval on any subareas the developer is ready to commit to a final
plan. All the information required for both an initial and final development plan shall be shown for the areas
submitted for concurrent approval. The final development plan shall be a scaled, reproducible drawing
showing the following information:
(1) The subdivision name, the legal description, and individual project name (if any).
(2) Boundaries of any sub-area or sub-areas submitted for approval superimposed on the map of the initial
development plan.
(3) A subdivision plan of the sub-area or sub-areas submitted for approval in compliance with all
applicable subdivision regulations.
(4) The development standards for the sub-area or sub-areas based on the requirements in one or more of
the traditional zoning districts.
(5) The size, location and elevation of all proposed structures including height and number of units.
(6) The calculated floor area for each structure and each use within each structure.
(7) Off-street parking lot arrangement designating all parking and stacking spaces, off -street loading
spaces, and any outdoor trash container space.
(8) Any sidewalks, bikeways or other paths and any areas reserved for recreation activities, such as
basketball and volleyball courts.
(9) Any outdoor lighting type and location, except for standard street lights provided by the city.
(10) A landscaping plan showing the type and location of any walls, fences or berms, the placement, size,
and species of any trees or shrubs, and areas that will be sod or seeded.
(11) All existing and proposed utilities, drainage ways and watercourses.
(12) All curb cuts and private drives.
(13) Adjacent existing and proposed uses.
(g) Rezoning of PDD's and amendments. Requests for amending the underlying zoning district or to allow a use
that has been specifically removed by the ordinance establishing the PDD, shall follow the process outlined in
section 94-7. Other changes within a PDD shall be submitted as an overlay on the initial or final development
plan. Amendments shall be classified as follows:
(1) Initial development plan amendments. The following changes are considered amendments to an initial
development plan:
a. Any change in the proposed use(s) of land or buildings that results in a 20 percent net increase in
the balance of residential or commercial square footage.
b. A major change in the street plan.
c. An increase of 20 percent or more in the total density of the development.
Created: 2024-11-12 08:15:17 [EST]
(Supp. No. 18)
Page 3 of 11
d. Any decrease to the setbacks or buffer zones.
e. An increase of ten percent or greater in the building height.
(2) Final development plan amendments. The following changes are considered amendments to a final
development plan:
a. Any adjustment exceeding ten percent in the dimensions of a building (length, width) or location.
b. Any change in the number or location of access drives.
c. Any decrease exceeding ten percent in required landscape areas, or other open areas.
d. A minor change in the street plan.
e. Any increase of less than 20 percent in the density of any area or subarea.
f. Any major change in the exterior design features of a building.
g. A change in the size or location of freestanding signs.
h. Any change in the proposed use(s) of land or buildings that results in less than a 20 percent net
increase in the balance of residential or commercial square footage.
i. Any increase or decrease of ten percent or greater in the number of parking spaces.
(3) Minimal amendments. The following changes are considered minimal amendments to a final
development plan:
a. Any minor adjustment within a building which involves a more intensive use.
b. Any change in the location of outdoor lighting, sidewalks or bikeways, recreation areas or loading
docks.
c. Any adjustment less than ten percent in the dimensions of a building (length, width) or location.
d. An increase or decrease of less than ten percent in the number of parking spaces.
(h) Procedure for amendments. Amendments to the PDD shall be subject to the following review procedures.
(1) Initial development plan amendments. Amendments to the initial development plan must be reviewed
by the planning commission and approved by a motion of the city council at a h earing for which notice
has been published in the legal newspaper of the city at least one week prior to the city council
hearing.
(2) Final development plan amendments. Amendments to the final development plan must be approved
by the planning commission at a hearing for which notice has been published in the legal newspaper of
the city at least one week prior to the planning commission meeting.
(3) Minimal amendments. Minimal amendments to the final development plan shall be submitted to the
community development department on a reproducible development plan showing the requested
changes. The community development department may then approve these proposed changes in
writing if the proposed changes are appropriate.
(Ord. No. 21-03, 8-26-2003; Ord. No. 19-020, § 1, 12-10-2019)
Sec. 94-165. Commercial corridor design review overlay district.
(a) Intent and scope. The following standards are established to improve the appearance, quality, and function
of commercial structures along key corridors of the community and is intended to enhance the safety of
pedestrians, bicyclists, and motor vehicles traveling these corridors while enhancing the visual
Created: 2024-11-12 08:15:17 [EST]
(Supp. No. 18)
Page 4 of 11
interest/appeal. These standards shall apply to new commercial, industrial, and mixed -use construction,
renovations exceeding 50 percent of the equalized assessed value of the structure at the time of
reconstruction/renovation, and additions or alterations that significantly change the exterior facade and
penetrations of a building. This does not include nonstructural repairs or ordinary maintenance repairs, such
as internal and exterior painting, decorating, paneling and the replacement of doors and other nonstructural
components. The property owner of an existing structure that is being remodeled or renovated for use as a
commercial structure shall satisfy the requirements of this ordinance and obtain planning commission
approval for building design and site plans as a condition of obtaining any rezoning or building permit. These
regulations shall not apply to structures that have been approved by the city council as a part of a
developer's agreement or planned development district rezoning so long as the developer's agreement or
rezoning was completed prior to issuance of a building permit. These regulations shall not apply to building
renovations using the secretary of interior standards for historic buildings.
(b) Scope of regulations. The regulations set forth in this ordinance when referred to in this chapter are the
regulations for the commercial corridor design review overlay district. These regulations are not intended to
interfere with, abrogate or annul any other rules or regulations of this chapter. Except as provided herein, if
the commercial corridor design review overlay district imposes a greater restriction than the underlying
zoning district regulations, the commercial corridor design review district regulations shall control.
(c) Boundaries of districts. The boundaries of the commercial corridor design review overlay district shall consist
of:
(1) 6th Street and a corridor along 6th Street which is 150 feet north of the north right-of-way and 150 feet
south of the south right-of-way from Western Avenue to 34th Avenue;
(2) 20th Street South and a corridor along 20th Street South which is 150 feet north of the north right-of-
way and 150 feet south of the south right-of-way, from Main Avenue to 34th Avenue;
(3) Main Avenue and a corridor 150 feet east of the east right-of-way and west of the west right-of-way
from the Railroad tracks to 32nd Street South; and
(4) 22nd Avenue and a corridor 150 feet east of the east right-of-way and west of the west right-of-way
from 6th Street to 32nd Street South.
This design review overlay district is shown upon a map that is made a part of each overlay district by
reference. The map shall have the same force and effect as if it were fully set forth herein.
(d) Uses permitted. A building or premises may be used for the purposes permitted in the underlying zoning
district provided it is in conformity with the conditions required in the commercial corridor design review
overlay district.
(e) Accessory uses. Accessory uses and buildings which are permitted as accessory buildings and uses
customarily incidental to any of the permitted uses in the underlying zoning district are not prohibited by the
commercial corridor design review overlay district.
(f) Sign regulations. Signs shall be regulated in accordance with Division 5. Signs, and any regulations imposed
by this commercial corridor design review overlay district.
(g) Parking regulations. All parking, loading and stacking shall be regulated by the underlying zoning district and
in conformance with the provisions of this commercial corridor design review overlay district.
(h) Density, area, yard and height regulations. Density, area, yard and height regulations shall be regulated in
conformance with the underlying zoning district and any regulations imposed by this commercial corridor
design review overlay district.
(i) Landscaping and buffer yards shall conform with the regulations provided in sections 94-399 and 94-399.1.
(Ord. No. 21-017, § 1, 5-11-2021)
Created: 2024-11-12 08:15:17 [EST]
(Supp. No. 18)
Page 5 of 11
Ord. No. 21-017, § 1, adopted May 11, 2021, repealed the former section 94-165, and enacted a new section 94-
165 as set out herein. The former section 94-165 pertained to SDSU campus edge neighborhood design
review overlay district and derived from Ord. No. 03-13, § 1, 4-23-2013.
Sec. 94-165.1. Review procedures.
(a) These design standards will be administered as part of the building permit process and the documents
required by these standards must be submitted to the community development department at or prior to
the time an application is made for a building permit.
(1) The applicant is encouraged to meet with city staff at the concept stage, the design stage, and at the
submittal stage.
(2) A pre-application meeting with the community development department is required prior to submittal
of building and development plans for the purpose of reviewing the requirements of this district.
(3) One complete set of plans as described in the submittal requirements shall be submitted to the
community development department as part of the application. Electronic copies of plan sheets shall
also be submitted. Incomplete submissions will not be accepted.
(b) Submittal requirements.
(1) All architectural and engineering plan sets typically required for a building permit application,
including: site plan including the size and location of building, drive-through facilities, parking lots with
access points defined, utilities, connection points, stormwater facilities, signage locations, bicycle
parking areas, pedestrian sidewalks, trash receptacles, outdoor refuse and recycling receptacl es,
landscaping, fences, exterior lights, parking lot snow storage areas, garages and accessory buildings,
and any other improvements the applicant intends to make within the district.
(2) Exterior light fixture locations and specification sheets in accordance with section 94-165.5.
(3) Photos of at least four nearby buildings and four street views of nearby blocks.
(4) Building elevations, including materials.
(5) A completed design standards checklist.
(6) A landscaping plan.
(7) Nothing in these design standards is intended to prevent the use of materials, systems, methods, or
devices of equivalent or superior quality, strength, effectiveness, attractiveness, durability, and safety
in place of those prescribed by this district that demonstrate equivalency, where the materials,
systems, method or device are approved for the intended purpose.
(c) Design review process and review timeline. All requests shall be reviewed within ten business days. The
review timelines shall be provided in instructions to applicants. Developers/applicants are required to attend
a review meeting with the Community Development Director prior to any submission to the Planning
Commission. Exceptions to the standards required by this district may be allowed on a case -by-case basis,
consistent with the overall purpose of this district. All requests for exceptions to the standards required by
this district shall be requested in writing with the submittals as provided in 94-165.1(b), with requests for
exceptions considered during the review and approval process set forth in 94-165.1(d) and (e).
(d) Planning commission review and recommendation. Upon receipt of an application, the planning commission
shall schedule a hearing for which notice has been published in the legal newspaper of the city at least ten
days prior to the planning commission meeting. The planning commission shall forward its recommendation
with or without modification, to the city council.
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(Supp. No. 18)
Page 6 of 11
(e) City council approval. Upon receipt of a recommendation from the planning commission, the city council
shall schedule a hearing for which notice has been published in the legal newspaper of the city at least ten
days prior to the city council meeting.
(Ord. No. 21-017, § 1, 5-11-2021)
Ord. No. 21-017, § 1, adopted May 11, 2021, repealed the former section 94-165.1, and enacted a new section 94-
165.1 as set out herein. The former section 94 -165.1 pertained to campus edge neighborhood standards and
derived from Ord. No. 03-13, § 1, 4-23-2013.
Sec. 94-165.2. Parking lot design and parking standards.
(a) The intent of this section is to encourage buildings to be placed close to and facing the street for the
following reasons:
(1) To enhance customer and tenant use of transit;
(2) To reinforce the building setback pattern;
(3) To minimize the visual impact of parking areas as seen from the street;
(4) To enhance pedestrian access, circulation and safety by reducing curb cuts and parking lot conflicts;
(5) To minimize the volume and maximize the quality of stormwater runoff;
(6) To provide adequate but not excessive parking for customers and tenants;
(7) To prohibit the use of satellite parking lots (unless it can be demonstrated that shared parking will be
beneficial to multiple property owners and does not result in a gap effect on a block face);
(8) To prohibit parking in side or front yards;
(9) To provide for adequate snow storage;
(10) To discourage the reliance on single occupant vehicles;
(11) To encourage the use of transit and other alternative means of transportation;
(12) To reduce the reliance on petroleum based paving materials and methods; and
(13) To reduce the "heat island" effect of traditional paved parking lots due to lack of trees or plants.
(b) No parking stall may be closer to the street than the building setback line or the primary building located on
the same parcel, whichever is further from the street, unless the applicant can demonstrate that there are
no practical alternatives related specifically to the site. An exception to this requirement may be made for
corner lots in which parking may be located within the front yard of the street of the lower street
classification according to the Major Street Plan.
(c) The minimum setback for parking stalls and drives is ten feet along a street right -of-way, and five feet from
all property lines with the exception of the alley. Parking for adjacent properties may be combined into
continuous paved lots, and eliminating the required setback at the shared property line, provided that 100
percent of the lost green space is replaced elsewhere on the parcel.
(d) Buffers, setbacks, and planting islands are encouraged to be used for stormwater infiltration.
(e) All approaches, parking, pedestrian and vehicular circulation areas shall be paved and graded for proper
stormwater management. The use of pervious pavement for stormwater infiltration is encouraged.
(Ord. No. 21-017, § 1, 5-11-2021)
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(Supp. No. 18)
Page 7 of 11
Sec. 94-165.3. Building and mechanical service elements.
(a) The intent of this section is to minimize the negative visual impacts of service elements on adjoining streets,
public spaces and adjacent properties; to minimize noise, odor, and litter; and to provi de adequate amenities
for building users.
(b) The design and location of the following items shall be indicated on building and/or site plans, illustrated
with specification sheets as appropriate, and submitted with the design standards checklist:
(1) Utility meters.
(2) Building mechanicals.
(3) Trash and recycling containers.
(4) Bicycle parking.
(5) Outdoor seating areas.
(6) Solar and wind facilities.
(7) Dish antennas.
(8) Transformers.
(9) Back-up generators.
(c) Service areas, utility meters, and building mechanicals shall not be located on the primary street side of the
building, nor on the side wall closer than ten feet to the primary street side of the building. The location of
emergency back-up generators and transformers shall be coordinated between the city, the developer and
the utility company. Screening of meters, generators, transformers, and mechanicals is required when visible
from the primary street with an approved screen device or vegetation. Rooftop mechanical units shall be
located and appropriate screening utilized to minimize visual impact on adjacent properties.
(d) Trash and recycling containers, including cans and dumpsters, shall have covers and be screened so as not to
be visible from the street or from neighboring properties. Screening shall be one foot higher than the
container, but no higher than six feet. Roofed enclosures may exceed the six -foot limit.
(e) If a building owner chooses to provide a trash receptacle and/or a smoking materials receptacle, it shall be
decorative if located at the entrance that faces a public street. These receptacles shall be screened from
street view and/or designed to fit with the architecture and materials of the building.
(f) Bicycle parking.
(1) Bicycle parking using bike racks specifically designed for bike parking shall be provided, with a
minimum of one space per ten automobile parking spaces or one space per 20 employees, whichever is
greater, and should be located near building entries, shall not interfere with pedestrian circulation and
shall be well-lighted. Bikes are not permitted to be stored, locked or chained to fences or any other
exterior location other than a bike rack specifically designed for bike parking.
(2) Bicycle parking (to accommodate four bicycles) shall be at least nine by six feet or 54 square feet, with
increases in dimension at the same ratio to accommodate greater numbers of bicycle parking spaces.
(3) The base for bike racks should be concrete to ensure their stability, however the remaining bicycle
parking area shall utilize porous paving materials (paving blocks with decorative gravel or wood mulch,
or properly spaced cobbles, brick, and natural stone with grass planted in between in small clusters) to
reduce stormwater runoff, but shall not result in standing water. If an area for bike parking is designed
using these standards, then up to 100 percent of the space taken for the bike parking shall count as
green space.
Created: 2024-11-12 08:15:18 [EST]
(Supp. No. 18)
Page 8 of 11
(Ord. No. 21-017, § 1, 5-11-2021)
Sec. 94-165.4. Walls and fences.
(a) The intent of this section is to provide for the coordination of design and location of walls and f ences to
maximize the positive interrelationship of buildings and public streets, and to avoid the predominance of
long, unarticulated walls or fences, and to prevent pedestrians from walking through plantings. Ordinance
Section 94-398, in addition to the following standards, shall apply:
(1) The design and materials for walls and fences shall be coordinated with the design and materials of the
principal buildings, and should have substantially the same detail. This is not intended to require
identical materials and design.
a. Pressure treated lumber fences shall not be permitted unless stained or painted.
b. All chain-link fences must be plastic coated and shall only be permitted in side yards and the
backyard, and shall not extend nearer to the street t han the front of the building, nor used in the
secondary front yard on a corner lot.
c. Smooth faced concrete (CMV) blocks or non-architectural poured walls used to construct a wall
shall be covered with brick or some other decorative block or dimensional material such as a
stained block product. Painted or colored smooth faced concrete bricks or blocks shall not be
considered decorative block.
(2) Walls and fences shall provide variety and articulation at each end and at intervals not exceeding 25
feet through at least one of the following methods:
a. Changes in plane of not less than one foot;
b. Expression of structure, such as post, column, or pilaster;
c. Variation of material; or
d. Landscaping.
(Ord. No. 21-017, § 1, 5-11-2021)
Sec. 94-165.5. Exterior lighting.
(a) The intent of this section is to enhance daytime and night time appearances; to establish a safe environment,
and to minimize light pollution, glare and light trespass onto adjacent properties. The use of solar, LED or low
watt compact florescent lights that decorate the property and are located and directed where people need
to see in the dark are encouraged.
(b) All exterior lights shall be designed for commercial use. A lighting plan showing lighting levels on-site and at
the property line as well as specification sheets with pictures must be submitted with the design standards
checklist for each exterior light to be used.
(c) Pedestrian lighting shall clearly indicate the path of travel, shall minimize dark spots along that path, and
shall utilize coordinated light fixtures.
(d) The maximum height of wall mounted parking lot light fixtures shall be 16 feet above the ground. Pole-
mounted fixtures are acceptable, but not required. The maximum height of pole-mounted fixtures is 30 feet
from the ground to the top of the fixture. Fixtures shall be of full-cut-off (FCO) design to minimize glare and
spillover.
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(e) Ornamental lighting to light the building facade is permitted, provided that the light source is not visible from
the property line and is designed to minimize glare and spillover.
(f) No overhead light source (i.e., the lamp or reflector) shall be visible from the property line. Shields may be
employed, if necessary, to satisfy this requirement.
(g) Each exterior entry to structures on the property shall have an exterior light.
(h) For properties adjacent to residential uses, motion sensor flood or spot lights shall have shrouds, be limited
to two bulbs pointed at least 30 degrees downward and not directly into windows or doors of neighboring
building, and the light sources shall not be visible from the street.
(Ord. No. 21-017, § 1, 5-11-2021)
Sec. 94-165.6. Patios, porches, decks, and rooftop gardens/decks.
(a) For commercial developments that include a residential component, the intent of this section is to increase
resident safety, comfort and privacy by providing individual outdoor spaces for each unit.
(b) Every residential unit is encouraged to have its own patio or balcony and shall be incorporated into the
architectural facade of the building and may encroach into the building setback area defined in Ordinance
[subsection] 94-166.7(e), but not more than 25 percent. Commercial structures are also permitted to have
exterior balconies. No patio or balcony shall extend over a sidewalk.
(c) For commercial developments, ground level patios or decks for customer seating are permitted in the
setback areas and should include screening for noise.
(Ord. No. 21-017, § 1, 5-11-2021)
Sec. 94-165.7. Building design; form, scale and context.
(a) The intent of this section is to encourage building design (forms, scale and context) that will result in high
quality, orderly, and consistent street spaces, compatible relationships to adjoining sites, and an urban
character; to create buildings that provide human scale, interest, and are architecturally cohesive, yet varied,
in their overall form, scale and context; and to protect the architectural character and cohesiveness of
surrounding buildings.
(b) Buildings shall be designed to provide human scale, interest, and variety. The following techniques ma y be
used to meet this objective:
(1) Variation in the building form, such as recessed or projecting bays, shifts in massing, or distinct roof
shapes.
(2) Emphasis of building entries through projecting or recessed forms, detail, color, or materials.
(3) Variation of material, material modules, expressed joints and details, surface relief, color, and texture
to break up large building forms and wall surfaces. Such detailing could include sills, headers, belt
courses, reveals, pilasters, window bays, and similar features.
(4) Building height shall be limited to four stories when located along an arterial or collector street.
(c) For all nonmanufacturing and retail buildings, where the allowable building is more than 50 percent wider
than adjacent buildings, one of the following techniques shall be employed to minimize the apparent width
of the primary facade:
(1) Articulate the facade with projections or bays.
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(2) Use architectural elements such as columns, canopies, glass, changes in materials, and covered entries
to interrupt the facade.
(d) The first floor facade shall include windows to provide visual interest and visual connection to the street. The
total area of windows and doors on the street-facing facade, including trim, shall not be less than 20 percent
of the total area of the facade, excluding gables.
(e) Buildings shall be built to the front yard setback line. One story buildings, and the first story of multi -story
buildings, provided upper floors are recessed, may project ten feet into the front yard setback when adjacent
to an arterial or collector street. No parking is permitted in the front yard setback area. Exception:
(1) Corner lots, provided a 15-foot landscape area is provided along the right-of-way.
(f) Commercial buildings within Historic Districts or adjacent to any designated historic building must first
receive staff review and recommendation prior to submittal to the Brookings Historic Preservation
Commission for their review and recommendation to the Planning Commission.
(Ord. No. 21-017, § 1, 5-11-2021)
Sec. 94-165.8. Roofs and roof lines.
(a) The intent of this section is to provide visual interest and architectural character.
(b) Any roof style such as hip, gambrel, mansard, colonial, flat or another roof style is permitted so long as the
roof pitch is appropriate to the architectural style of the building and the roof element contains additional
architectural elements such as dormers, long overhangs, windows or other features.
(c) Flat roofs are permitted, and must incorporate a parapet wall on all sides, unless the rear side of the building
is sloped for drainage. The parapet should include architectural details appropriate to the building design
that creates a positive visual termination for the building (a "top").
(d) A minimum of 50 percent of a building's linear roof drip edge should fall to ground surfaces that do not
contain an impervious surface. If gutters or stormwater drain towards neighboring properti es, then water
shall be directed to rain garden(s), bio-swales, or other best management practices to minimize drainage
onto neighboring properties.
(Ord. No. 21-017, § 1, 5-11-2021)
Sec. 94-165.9. Exterior materials.
(a) The intent of this section is to maintain architectural character and to encourage the use of att ractive and
high quality materials with low life-cycle costs.
(b) The use of identical materials on all sides of the building is encouraged; however, higher -quality materials on
street-facing facades and complementary materials on other facades are accept able.
(c) Use of decorative accessories and trim is highly encouraged.
(d) Vinyl, plywood, chipboard, T1-11, asphalt siding, non-architectural metal siding and smooth-faced concrete
block are prohibited as exterior finish materials unless the applicant's architect can demonstrate that the
materials are appropriate to the design of the building. Treated wood shall be painted or stained.
(e) Natural wood shall be painted or stained, unless it is cedar, redwood or some other naturally weather
resistant species and is intended to be exposed.
(Ord. No. 21-017, § 1, 5-11-2021)
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Sec. 94-165.10. Garages and accessory buildings.
(a) The intent of this section is to improve the visual impact of garages and accessory buildings facing the street,
to prevent storage doors and overhead doors from facing the street, and to maximize pedestrian safety.
(b) Street-facing overhead doors on garages are not permitted on lots served by an alley. Corner lots shall have
overhead doors facing the street of the lowest classification according to the major street plan.
(c) The cumulative length of all garage doors facing the street shall not exceed 50 percent of the total length of
the street-facing elevation, unless architecturally justified.
(d) All accessory buildings shall be architecturally compatible and be constructed of the same materials as the
primary building.
(Ord. No. 21-017, § 1, 5-11-2021)
CHAPTER 11-9
TAX INCREMENT FINANCING DISTRICTS
11-9-1 Definition of terms.
11-9-2 Powers of political subdivision.
11-9-3 Planning commission hearing on creation of district--Notice.
11-9-4 Recommendation by planning commission for creation of district--Designation of boundaries.
11-9-5 Governing body resolution creating district--Boundaries--Name.
11-9-6 Districts with overlapping boundaries permitted.
11-9-7 Repealed.
11-9-8 Required findings in resolution creating district.
11-9-9 Areas conducive to disease or crime defined as blighted.
11-9-10 Developed areas impairing growth defined as blighted.
11-9-11 Repealed.
11-9-12 Determination of tax increment base on creation of district or amendment of plan.
11-9-13 Project plan for each district--Contents.
11-9-14 Project costs defined--Administrative fee required.
11-9-15 Items included in project costs.
11-9-16 Additional contents of project plan.
11-9-17 Governing body resolution approving project plan--Findings.
11-9-18 Amendment to project plan--Procedure.
11-9-19 Tax increment base defined.
11-9-20 Determination of tax increment base of district.
11-9-20.1 Aggregate assessed value for district not in compliance with § 10-6-121.
11-9-21 Indication on assessment rolls of parcels within district.
11-9-22 Presumption as to property recently acquired or leased by municipality.
11-9-23 Redetermination of tax increment base when project costs increased by amendment of plan.
11-9-24 Annual notice by department of assessed value of real property and tax increment base--Change in laws not to result in lower
assessed values--Conditions.
11-9-25 Allocation to municipality of tax increments--Duration of allocation.
11-9-26 Tax increment defined.
11-9-27 Taxation of property in district.
11-9-28 Payment to political subdivision of allocable tax increment.
11-9-29 11-9-29. Repealed by SL 1983, ch 37, § 9
11-9-30 Methods of paying project costs.
11-9-31 Tax increments deposited in special fund--Appropriations to fund--Investment of moneys in fund.
11-9-32 Permissible uses of special fund.
11-9-33 Bonds authorized for payment of project costs.
11-9-34 Bonds or contracts authorized by resolution.
11-9-35 Maximum amount of bonds--Maturity--Redemption--Bearer or registered--Denominations.
11-9-36 Bonds payable only from special fund.
11-9-37 Pledge of special fund to bonds--Restrictions on use of fund--Lien.
11-9-38 Bonds to be negotiable and payable only from tax increment.
11-9-39 Other security and marketability provisions.
11-9-39.1 State pledge not to alter rights vested in bondholders until bonds fully discharged.
11-9-40 Sale of bonds.
11-9-41 Procedure for condemnation under power of eminent domain.
11-9-42 Tax increments not to be used for residential structures.
11-9-43 Performance bond required of purchaser or lessee of property.
11-9-44 Notice to purchaser or lessee and surety of noncompliance with contract--Taking possession of work site.
11-9-45 Disposition of funds remaining after payment of project costs and bonds.
11-9-46 Termination of district.
11-9-47 11-9-47. Repealed by SL 1982, ch 16, § 14
11-9-48 District reports published on department website.
11-9-1. Definition of terms.
Terms used in this chapter mean:
(1) "Department," the Department of Revenue;
(2) "District," a tax increment financing district;
(3) "Governing body," the board of trustees, the board of commissioners, the board of county commissioners, or the common council
of a municipality;
(4) "Grant," the transfer of money or property to a transferee for a governmental purpose that is not a related party to or an agent of
the political subdivision;
(5) "Planning commission," a planning commission created under chapters 11-2 or 11-6, a planning committee of a governing body
of a political subdivision that does not have a planning commission, or the governing body of a political subdivision that does
not have a planning commission or planning committee;
(6) "Political subdivision," a municipality, as defined in § 11-6-1, or county of this state;
(7) "Project plan," the properly approved plan for the development or redevelopment of a tax increment financing district including
all properly approved amendments to the plan;
(8) "Tax increment financing district," a contiguous geographic area within a political subdivision defined and created by resolution
of the governing body;
(9) "Taxable property," all real and personal taxable property located in a tax increment financing district;
(10) "Tax increment valuation," the total value of the tax increment financing district minus the tax increment base as determined
pursuant to § 11-9-19.
Source: SL 1978, ch 91, § 1; SL 1991, ch 114, § 1; SL 1992, ch 60, § 2; SL 1996, ch 69, § 16; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL
2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011; SL 2011, ch 73, § 1; SL 2018, ch 70, § 7; SL 2024, ch 45, § 1.
11-9-2. Powers of political subdivision.
A political subdivision may:
(1) Create one or more districts and define each district's boundaries;
(2) Prepare project plans, approve the plans, and implement the provisions and purposes of the plans, including the acquisition by
purchase or condemnation of real and personal property within the district and the sale, lease, or other disposition of property
to private individuals, partnerships, corporations, or other entities at a price less than the cost of the acquisition and of any site
improvements undertaken by the political subdivision pursuant to a project plan;
(3) Issue tax increment financing bonds;
(4) Deposit moneys into the special fund of any district; and
(5) Enter into any contract or agreement, including an agreement with bondholders, determined by the governing body to be
necessary or convenient to implement the provisions and effectuate the purposes of a project plan. A contract or agreement
may include conditions, restrictions, or covenants that run with the land or otherwise regulate the use of land or that establish a
minimum market value for the land and completed improvements to be constructed by a specific date, which date may not be
later than the date of termination of the district pursuant to § 11-9-46. Any contract or agreement that provides for the payment
of a specific sum of money at a specific future date must be made pursuant to the provisions of chapter 6-8B.
Source: SL 1978, ch 91, § 6; SL 1983, ch 37, § 6; SL 2011, ch 73, § 2; SL 2018, ch 70, § 8; SL 2024, ch 45, § 2.
11-9-3. Planning commission hearing on creation of district--Notice.
The planning commission shall hold a hearing at which interested parties are afforded a reasonable opportunity to express views
on the proposed creation of a district and the district's proposed boundaries. The planning commission shall publish notice of the hearing
at least once, not fewer than ten nor more than thirty days before the date of the hearing, in a legal newspaper having a general circulation
in the redevelopment area of the political subdivision. Before publication of the notice, the planning commission shall send a copy of the
notice to the chief executive officer of each local governmental entity having the power to levy taxes on property located within the
proposed district and to the school board of any school district that has property located within the proposed district by first class mail.
Source: SL 1978, ch 91, § 7 (1); SL 1982, ch 60, § 13; SL 2018, ch 70, § 9; SL 2024, ch 45, § 3.
11-9-4. Recommendation by planning commission for creation of district--Designation of boundaries.
The planning commission shall designate the boundaries of a district that the planning commission recommends be created. The
planning commission shall submit the recommendation to the governing body.
Source: SL 1978, ch 91, § 7 (2); SL 2018, ch 70, § 10.
11-9-5. Governing body resolution creating district--Boundaries--Name.
To establish a district, the governing body must adopt a resolution that:
(1) Describes the boundaries of a district with sufficient definiteness to identify with ordinary and reasonable certainty the territory
included. The boundaries may not split a whole unit of property that is being used for a single purpose;
(2) Creates the district on a given date;
(3) Includes a finding that the assessed value of the taxable property in the district plus the tax increment base of all other existing
districts does not exceed ten percent of the total assessed value of all taxable property in the political subdivision; and
(4) Assigns a name to the district for identification purposes. The first district created in each political subdivision must be known as
"Tax Increment Financing District Number One, City (or Town, or County) of __________." Each subsequently created
district must be assigned the next consecutive number.
Source: SL 1978, ch 91, § 7 (3); SL 2018, ch 70, § 11; SL 2024, ch 45, § 4.
11-9-6. Districts with overlapping boundaries permitted.
Subject to any agreement with bondholders, a district may overlap with one or more existing districts if the boundaries of the
districts are not identical.
Source: SL 1978, ch 91, § 26; SL 2018, ch 70, § 12.
11-9-7. Repealed.
Source: SL 1978, ch 91, § 7 (4) (c); SL 1991, ch 115, § 1; SL 2018, ch 70, § 13; SL 2024, ch 45, § 21.
11-9-8. Required findings in resolution creating district.
The resolution required by § 11-9-5 shall contain the following findings:
(1) Not less than twenty-five percent, by area, of the real property within the district is a blighted area or not less than fifty percent,
by area, of the real property within the district will stimulate and develop the general economic welfare and prosperity of the
state through the promotion and advancement of industrial, commercial, manufacturing, agricultural, or natural resources
development; and
(2) The improvement of the area is likely to significantly enhance the value of substantially all other real property in the district.
It is not necessary to identify the specific parcels meeting the criteria. No county may create a district located, in whole or in part,
within a municipality, unless the governing body of the municipality has consented to creation of a district by resolution.
Source: SL 1978, ch 91, § 7 (4) (a), (b); SL 1991, ch 114, § 2; SL 1992, ch 60, § 2; SL 2004, ch 126, § 2; SL 2011, ch 73, § 3; SL 2018,
ch 70, § 14.
11-9-9. Areas conducive to disease or crime defined as blighted.
Any area, including slum area, in which the structures, buildings, or improvements, by reason of:
(1) Dilapidation, age, or obsolescence;
(2) Inadequate provisions for ventilation, light, air, sanitation, or open spaces;
(3) High density of population and overcrowding;
(4) The existence of conditions which endanger life or property by fire and other causes; or
(5) Any combination of such factors;
are conducive to ill health, transmission of disease, infant mortality, juvenile delinquency, or crime, and which is detrimental to the public
health, safety, morals, or welfare, is a blighted area.
Source: SL 1978, ch 91, § 2 (1).
11-9-10. Developed areas impairing growth defined as blighted.
For the purposes of this chapter, the term "blighted area" means an area that substantially impairs or arrests the sound growth of
the political subdivision, inhibits housing development, constitutes an economic or social liability, or is a danger in its present condition
and use to the health, safety, morals, or welfare of the public because of:
(1) The presence of a substantial number of substandard, slum, deteriorated, or deteriorating structures;
(2) A predominance of defective or inadequate street layouts;
(3) Faulty lot layout in relation to size, adequacy, accessibility, or usefulness;
(4) Insanitary or unsafe conditions;
(5) The deterioration of site or other improvements;
(6) A diversity of ownership, tax, or special assessment delinquency exceeding the fair value of the land;
(7) Defective or unusual conditions of title;
(8) The existence of conditions which endanger life or property by fire and other causes; or
(9) A predominance of open space with obsolete platting, diversity of ownership, or deterioration of structures or site improvements.
Source: SL 1978, ch 91, § 2 (2); SL 2024, ch 45, § 5.
11-9-11. Repealed.
Source: SL 1978, ch 91, § 2 (3); SL 2024, ch 45, § 22.
11-9-12. Determination of tax increment base on creation of district or amendment of plan.
On the creation of a district or adoption of any amendment subject to § 11-9-23, the tax increment base of the district shall be
determined as provided in §§ 11-9-20 to 11-9-25, inclusive.
Source: SL 1978, ch 91, § 10; SL 2018, ch 70, § 15.
11-9-13. Project plan for each district--Contents.
The planning commission shall adopt a project plan for each district and submit the plan to the governing body. The plan shall
include:
(1) The kind, number, and location of all proposed public works or improvements within the district;
(2) An economic feasibility study;
(3) A detailed list of estimated project costs;
(4) A fiscal impact statement that shows the impact of the district, both until and after the bonds are repaid, on all entities levying
taxes on property in the district; and
(5) A description of the methods of financing all estimated project costs and the time when related costs or monetary obligations are
to be incurred.
No expenditure may be provided for in the plan more than five years after a district is created unless an amendment is adopted by the
governing body pursuant to § 11-9-23.
Source: SL 1978, ch 91, § 7 (5); SL 2011, ch 73, § 4; SL 2018, ch 70, § 16.
11-9-14. Project costs defined--Administrative fee required.
For the purposes of this chapter, the term "project costs" are any expenditures made or estimated to be made, or monetary
obligations incurred or estimated to be incurred, by a political subdivision that are listed in a project plan as grants or costs of public
works or improvements within a district, plus any incidental costs diminished by any income, special assessments, or other revenues,
other than tax increments, received, or reasonably expected to be received, by the political subdivision in connection with the
implementation of the plan.
Source: SL 1978, ch 91, § 3; SL 2011, ch 73, § 5; SL 2018, ch 70, § 17; SL 2024, ch 45, § 6.
11-9-15. Items included in project costs.
For the purposes of this chapter, the term "project costs" means:
(1) Capital costs, including the actual costs of the construction of public works or improvements, buildings, structures, and
permanent fixtures; the demolition, alteration, remodeling, repair, or reconstruction of existing buildings, structures, and
permanent fixtures; the acquisition of equipment; the clearing, over-excavation, and grading of land, including use of
engineered fill and soil compaction; and the amount of interest payable on tax increment bonds issued pursuant to this chapter
until the positive tax increments to be received from the district, as estimated by the project plan, are sufficient to pay the
principal of and interest on the tax increment bonds when due;
(2) Financing costs, including all interest paid to holders of evidences of indebtedness issued to pay for project costs, any premium
paid over the principal amount thereof because of the redemption of obligations prior to maturity, and a reserve for the
payment of principal and interest on obligations in an amount determined by the governing body to be reasonably required for
the marketability of obligations;
(3) Real property assembly costs, including the actual cost of the acquisition by a political subdivision of real or personal property
within a district, less any proceeds to be received by the political subdivision from the sale, lease, or other disposition of
property pursuant to a project plan;
(4) Professional service costs, including those costs incurred for architectural, planning, engineering, and legal advice and services;
(5) Imputed administrative costs, including reasonable charges for the time spent by a municipal or county employee in connection
with the implementation of a project plan;
(6) Relocation costs;
(7) Organizational costs, including the costs of conducting environmental impact and other studies and the costs of informing the
public of the creation of a district and the implementation of project plans; and
(8) Payments and grants made, at the discretion of the governing body, that are found to be necessary or convenient to the creation
of a district, the implementation of project plans, or to stimulate and develop the general economic welfare and prosperity of
the state. No payment or grant may be used for any residential structure pursuant to § 11-9-42.
Source: SL 1978, ch 91, § 3; SL 1983, ch 37, § 7; SL 2011, ch 73, § 6; SL 2018, ch 70, § 18; SL 2022, ch 34, § 1; SL 2024, ch 45, § 7.
11-9-16. Additional contents of project plan.
The project plan for each district must contain:
(1) A map showing the existing uses and conditions of real property in the district;
(2) A map showing the proposed improvements and uses;
(3) A map showing the proposed changes of zoning ordinances;
(4) A statement listing changes needed in the master plan, map, building codes, and ordinances of the political subdivision;
(5) A list of estimated nonproject costs; and
(6) A statement of a proposed method for the relocation of persons to be displaced.
Source: SL 1978, ch 91, § 7 (5); SL 2018, ch 70, § 19; SL 2024, ch 45, § 8.
11-9-17. Governing body resolution approving project plan--Findings.
The governing body shall approve a project plan for each district. The approval by resolution must contain findings that the plan is
feasible and in conformity with the master plan, if any, of the political subdivision.
Source: SL 1978, ch 91, § 7 (6); SL 2018, ch 70, § 20; SL 2024, ch 45, § 9.
11-9-18. Amendment to project plan--Procedure.
The planning commission may at any time adopt an amendment to a project plan which shall be subject to approval by the
governing body in the same manner as an initial project plan.
Source: SL 1978, ch 91, § 8.
11-9-19. Tax increment base defined.
For purposes of this chapter, the term, tax increment base, is the aggregate assessed value of all taxable property located within a
district on the date the district is created, as determined by § 11-9-20.
Source: SL 1978, ch 91, § 5; SL 2018, ch 70, § 21.
11-9-20. Determination of tax increment base of district.
Upon receiving an application by the county auditor or municipal finance officer, as applicable, on a form prescribed by the
department, the department must determine the aggregate assessed value of the taxable property in the district, which aggregate assessed
value, on certification to the county auditor or the municipal finance officer, as applicable, is the tax increment base of the district. The
application must be accompanied by a detailed parcel list of the included legal descriptions, property ownership, and value, as provided by
the director of equalization office, of the affected corresponding county. Except as provided in § 11-9-20.1, the department shall use the
values, as last previously certified by the department, adjusted for the value to the date the district was created, for any completed
buildings or additions and without regard to any reduction pursuant to §§ 1-19A-20, 10-6-137, 10-6-137.1, and 10-6-144.
Source: SL 1978, ch 91, § 11; SL 1991, ch 115, § 2; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff.
Apr. 12, 2011; SL 2018, ch 70, § 22; SL 2020, ch 39, § 14; SL 2020, ch 43, § 1; SL 2021, ch 44, § 44; SL 2022, ch 29, § 6; SL 2024, ch
45, § 10.
11-9-20.1. Aggregate assessed value for district not in compliance with § 10-6-121.
For the purpose of aggregate assessed value in § 11-9-20, the department shall, for any district located within a county not in
compliance with § 10-6-121, determine the aggregate assessed value in order to reflect an aggregate assessed value as if there had been
compliance with the requirements in § 10-6-121.
Source: SL 1991, ch 115, § 3; SL 2021, ch 44, § 44.
11-9-21. Indication on assessment rolls of parcels within district.
The director of equalization shall indicate on the assessment roll required by §§ 10-3-28 and 10-6-153 each parcel of real property
located within a district, including the name of the district the parcel is located in.
Source: SL 1978, ch 91, § 14; SL 2018, ch 70, § 23; SL 2021, ch 44, § 44.
11-9-22. Presumption as to property recently acquired or leased by municipality.
There is a rebuttable presumption that any property within a district acquired or leased as lessee by a municipality, or any agency
or instrumentality of the municipality, within one year immediately preceding the date of the creation of the district was acquired or leased
in contemplation of the creation of the district. The presumption may be rebutted by the municipality with proof that the real property was
leased or acquired primarily for a purpose other than to reduce the tax increment base. If the presumption is not rebutted, for purposes of
determining the tax increment base of the district, the taxable status of the real property is determined as though the lease or acquisition
had not occurred.
Source: SL 1978, ch 91, § 13; SL 2018, ch 70, § 24.
11-9-23. Redetermination of tax increment base when project costs increased by amendment of plan.
If the municipality adopts an amendment to the original project plan for any district that includes additional project costs for which
tax increments may be received by the municipality, the tax increment base for the district shall be redetermined pursuant to § 11-9-20.
The tax increment base as redetermined under this section is effective for the purposes of this chapter only if it exceeds the original tax
increment base determined pursuant to § 11-9-20. The provisions of this section do not apply if the additional project costs are thirty-five
percent or less than the amount approved in the original project plan and the additional project costs will be incurred before the expiration
of the period specified in § 11-9-13.
Source: SL 1978, ch 91, § 12; SL 2016, ch 74, § 1; SL 2018, ch 70, § 25.
11-9-24. Annual notice by department of assessed value of real property and tax increment base--Change in laws not to result in
lower assessed values--Conditions.
The department shall annually give notice to the auditor or finance officer of all governmental entities having the power to levy
taxes on real property within a district of both the assessed value of the real property and the assessed value of the tax increment base. The
notice shall also explain that the taxes collected in excess of the base will be paid to the municipality as provided in § 11-9-28. No change
in the laws of this state affecting taxation of real property may result in a lower assessed value of the real property and the assessed value
of the tax increment base if the district is in force and until bonds issued pursuant to this chapter are retired.
Source: SL 1978, ch 91, § 15; SL 1989, ch 125, § 1; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff.
Apr. 12, 2011; SL 2018, ch 70, § 26.
11-9-25. Allocation to municipality of tax increments--Duration of allocation.
Positive tax increments of a district shall be allocated to the municipality that created the district for each year from the date when
the district is created until the municipality has been reimbursed for expenditures previously made, has paid all monetary obligations, and
has retired all outstanding tax increment bonds. However, in no event may the positive tax increments be allocated longer than twenty
years after the calendar year of creation.
Source: SL 1978, ch 91, § 16; SL 1989, ch 125, § 2; SL 2011, ch 73, § 7; SL 2018, ch 70, § 27.
11-9-26. Tax increment defined.
For purposes of this chapter, the term, tax increment, is that amount obtained by multiplying the total county, municipal, school,
and other local real property taxes levied on all taxable real property within a district in any year by a fraction having a numerator equal to
that year's assessed value of all taxable real property in the district minus the tax increment base and a denominator equal to that year's
assessed value of all taxable real property in the district. In any year, a tax increment is deemed positive if the tax increment base is less
than the aggregate assessed value of taxable real property. A tax increment is deemed negative if the base exceeds the aggregate assessed
value.
Source: SL 1978, ch 91, § 4; SL 2018, ch 70, § 28.
11-9-27. Taxation of property in district.
With respect to the municipality, the county, school districts and any other local governmental body having the power to levy taxes
on real property located within a district, the calculation of the assessed value of taxable real property in a district, for purposes of
computing the dollar and cents rates of such taxing units, may not exceed the tax increment base of the district until the district is
terminated. The dollar and cents rates of all taxing units shall be assessed and extended against all taxable real property in the district at its
current assessed value. However, no change in the laws of this state affecting taxation of real property may result in a lesser rate for the
tax increment base until the district is terminated pursuant to this chapter.
Source: SL 1978, ch 91, § 27; SL 1983, ch 37, § 8; SL 1989, ch 125, § 3; SL 2018, ch 70, § 29.
11-9-28. Payment to political subdivision of allocable tax increment.
Notwithstanding any other provision of law, each officer charged by law to collect and pay over or retain local real property taxes
shall first, on the next settlement date provided by law, pay over to the county treasurer or municipal finance officer, as applicable, out of
all taxes collected, that portion that represents a tax increment allocable to the political subdivision.
Source: SL 1978, ch. 91, § 17; SL 2018, ch 70, § 30; SL 2024, ch 45, § 11.
11-9-29. Repealed by SL 1983, ch 37, § 9
11-9-30. Methods of paying project costs.
Payment of project costs may be made by any of the following methods or by any combination of methods:
(1) Payment by the political subdivision from the special fund of the district;
(2) Payment out of the funds of the political subdivision;
(3) Payment out of the proceeds of the sale of municipal bonds issued by the municipality under chapter 10-52 or 10-52A, or both;
(4) Payment out of the proceeds of revenue bonds issued by the political subdivision under chapter 9-54; or
(5) Payment out of the proceeds of the sale of tax increment bonds issued by the political subdivision under this chapter.
Source: SL 1978, ch 91, § 20; SL 2011, ch 73, § 8; SL 2018, ch 70, § 31; SL 2024, ch 45, § 12.
11-9-31. Tax increments deposited in special fund--Appropriations to fund--Investment of moneys in fund.
The county treasurer or municipal finance officer, as applicable, shall deposit all tax increments received in a district into a special
fund for the district. The county treasurer or municipal finance officer, as applicable, may deposit additional moneys into the fund
pursuant to an appropriation by the governing body. Subject to any agreement with bondholders, moneys in the fund may be temporarily
invested in the same manner as other funds of the political subdivision.
Source: SL 1978, ch 91, § 18; SL 2018, ch 70, § 32; SL 2024, ch 45, § 13.
11-9-32. Permissible uses of special fund.
Moneys may only be paid out of the special fund created under § 11-9-31 to pay project costs or grants of the district, to reimburse
the political subdivision for the payment of project costs or grants of the district, or to satisfy claims of holders of tax increment bonds
issued for the district.
Source: SL 1978, ch 91, § 18; SL 2011, ch 73, § 9; SL 2018, ch 70, § 33; SL 2024, ch 45, § 14.
11-9-33. Bonds authorized for payment of project costs.
For the purpose of paying project costs, the governing body may issue tax increment bonds payable out of positive tax increments.
Source: SL 1978, ch 91, § 21; SL 2011, ch 73, § 10; SL 2018, ch 70, § 34.
11-9-34. Bonds or contracts authorized by resolution.
Tax increment bonds, contracts, or agreements shall be authorized by resolution of the governing body without a requirement of
voter approval.
Source: SL 1978, ch 91, § 22; SL 2011, ch 73, § 11; SL 2018, ch 70, § 35.
11-9-35. Maximum amount of bonds--Maturity--Redemption--Bearer or registered--Denominations.
Tax increment bonds may not be issued in an amount exceeding the aggregate project costs. The bonds may not mature later than
twenty years from the date the district was created. The bonds may contain a provision authorizing the redemption of the bonds, in whole
or in part, at stipulated prices, at the option of the political subdivision, on any interest payment date and must provide the method of
selecting the bonds to be redeemed. The principal and interest on the bonds may be payable at any time and at any place. The bonds may
be payable to the bearer or may be registered as to the principal or principal and interest. The bonds may be in any denominations.
Source: SL 1978, ch 91, § 23; SL 2011, ch 73, § 12; SL 2018, ch 70, § 36; SL 2024, ch 45, § 15.
11-9-36. Bonds payable only from special fund.
Tax increment bonds are payable only out of the special fund created under § 11-9-31. Each bond must state that the bond is only
payable out of the special fund and that the bond does not constitute a general indebtedness of the political subdivision or a charge against
the general taxing power of the political subdivision.
Source: SL 1978, ch 91, §§ 21, 24; SL 1983, ch 37, § 10; SL 2011, ch 73, § 13; SL 2018, ch 70, § 37; SL 2024, ch 45, § 16.
11-9-37. Pledge of special fund to bonds--Restrictions on use of fund--Lien.
The governing body shall irrevocably pledge all or a stated percentage of the special fund created under § 11-9-31 to the payment
of the bonds. The special fund or designated part may be used only for the payment of the bonds and interest until the bonds have been
fully paid, and any holder of the bonds or of any coupons related thereto shall have a lien against the special fund for payment of the
bonds and interest and may either at law or in equity protect and enforce the lien.
Source: SL 1978, ch 91, § 24; SL 2011, ch 73, § 14; SL 2018, ch 70, § 38.
11-9-38. Bonds to be negotiable and payable only from tax increment.
Each bond issued pursuant to this chapter and all interest coupons related to the bonds are negotiable instruments. Bonds issued
are not general obligation bonds and are payable only from the tax increment of the project as provided in this chapter.
Source: SL 1978, ch 91, § 21; SL 2011, ch 73, § 15; SL 2018, ch 70, § 39.
11-9-39. Other security and marketability provisions.
To increase the security and marketability of its tax increment bonds, a political subdivision may do either or both of the
following:
(1) Create a lien for the benefit of the bondholders upon any public improvements or public works financed by the bonds or the
revenues from the bonds; or
(2) Make covenants and do any and all acts, not inconsistent with the South Dakota Constitution, necessary, convenient, or desirable
in order to additionally secure bonds or to make the bonds more marketable according to the best judgment of the governing
body, including the establishment of a reserve for the payment of principal and interest on the bonds funded from the proceeds
of the bonds or other revenues, including tax increments, of the political subdivision.
Source: SL 1978, ch 91, § 25; SL 1983, ch 37, § 11; SL 2011, ch 73, § 16; SL 2018, ch 70, § 40; SL 2024, ch 45, § 17.
11-9-39.1. State pledge not to alter rights vested in bondholders until bonds fully discharged.
The State of South Dakota does hereby pledge to and agree with the holders of any bonds issued under this chapter that the state
will not alter the rights vested in the bondholders until such bonds, together with the interest thereon, with interest on any unpaid
installments of interest, and all costs and expenses in connection with any action or proceeding by or on behalf of such holders, are fully
met and discharged.
Source: SL 1989, ch 125, § 4; SL 2011, ch 73, § 17.
11-9-40. Sale of bonds.
Tax increment bonds may be sold at public or private sale at a price that the governing body deems in the best interests of the
political subdivision.
Source: SL 1978, ch 91, § 23; SL 1983, ch 37, § 12; SL 2011, ch 73, § 18; SL 2018, ch 70, § 41; SL 2024, ch 45, § 18.
11-9-41. Procedure for condemnation under power of eminent domain.
The exercise of the power of eminent domain in connection with a district shall proceed in the same manner as a condemnation
proceeding is conducted by the Department of Transportation pursuant to the provisions of chapter 31-19.
Source: SL 1978, ch 91, § 29; SL 2018, ch 70, § 42.
11-9-42. Tax increments not to be used for residential structures.
No tax increments shall be used for the construction of residential structures.
Source: SL 1978, ch 91, § 29A; SL 1985, ch 102.
11-9-43. Performance bond required of purchaser or lessee of property.
As security for its fulfillment of the agreement with the governing body, a purchaser or lessee of redevelopment property shall
furnish a performance bond, with such surety and in such form and amount as the governing body may approve or make such other
guaranty as the governing body may deem necessary in the public interest.
Source: SL 1978, ch 91, § 9.
11-9-44. Notice to purchaser or lessee and surety of noncompliance with contract--Taking possession of work site.
If the governing body finds that the redevelopment is not being carried out or maintained in accordance with the contract terms
and conditions, or there is a failure to perform the work with diligence, or to assume the work's completion on time, the governing body
shall notify the purchaser or lessee and the surety in writing of the noncompliance. Unless the purchaser or lessee complies with the terms
of the agreement within twenty days from the date of the notice, the governing body may take over the work and may cause the work to
be done, and the cost of the work shall be paid by the surety. The governing body may take possession of the site of the work and utilize in
completion of the work the materials, appliances, and plant on the site of the work and necessary to complete the work.
Source: SL 1978, ch 91, § 9; SL 2018, ch 70, § 43.
11-9-45. Disposition of funds remaining after payment of project costs and bonds.
After all project costs and all tax increment bonds of the district have been paid or provided for, subject to any agreement with
bondholders, any moneys remaining in the fund must be paid to each taxing district in the amount belonging to each respectively, with due
regard for what portion of the moneys, if any, represent tax increments not allocated to the political subdivision and what portion, if any,
represents voluntary deposits of the political subdivision into the fund.
Source: SL 1978, ch 91, § 18; SL 2011, ch 73, § 20; SL 2018, ch 70, § 44; SL 2024, ch 45, § 19.
11-9-46. Termination of district.
The existence of a district shall terminate when:
(1) Positive tax increments are no longer allocable to a district under § 11-9-25; or
(2) The governing body, by resolution, dissolves the district, after payment or provision for payment of all project costs, grants, and
all tax increment bonds of the district.
Source: SL 1978, ch 91, § 19; SL 1983, ch 37, § 13; SL 2011, ch 73, § 19; SL 2018, ch 70, § 45.
11-9-47. Repealed by SL 1982, ch 16, § 14
11-9-48. District reports published on department website.
The department may publish annually on its website a report of each tax increment financing district in the state. Any political
subdivision that has created a tax increment financing district shall provide the department with any information requested to compile the
report.
Source: SL 2018, ch 70, § 5; SL 2024, ch 45, § 20.