Aberdeen City Council approves TIF that will benefit Primrose development, new park

Elisa Sand, Aberdeen News
·3 min read

The Aberdeen City Council has approved its first Tax Increment Financing agreement that includes the development of a park.

The council approved the TIF for a Primrose senior living development at Monday's regular meeting.

A TIF allows a developer to use the anticipated increase in property tax revenue to cover the costs of public infrastructure. As taxes are paid on the property, bonds that were issued for the development are repaid.

This TIF allows $4.5 million to help with the construction of 10 residential retirement villas, 48 assisted living units, 26 memory care units and a central facility housing a library, theater, fitness room, therapy room, whirlpool rooms and gathering areas.

Public infrastructure includes streets, water, sewer and storm sewer as well as a public park. Of the proposed financing, $500,000 is set aside for the development of the park on 15th Avenue Northeast.

According to the TIF proposal, the development is expected to cost $30 million to $40 million, depending on rapidly increasing prices.

More: Primrose announces new combined-service retirement community plans for Aberdeen

Councilmen Clint Rux and Rob Ronayne both approved of the inclusion of the park in the development. According to the plan, six acres are set aside for the park.

"This is one of the first TIFs we've done with money set aside for a park, and that is a really neat and interesting idea," Rux said, noting that that part of Aberdeen doesn't have a park.

Ronayne said that with the loss of nursing homes in the area, it's good to see this coming to town.

"To bring that to Aberdeen is huge. This is a great location, I love the park and I’m excited about this project," Ronayne said.

Primrose announced its planned development in December.

According to the development plan, the senior living development will be south of 15th Avenue Northeast and west of North Roosevelt Street.

The TIF received unanimous approval.

More: $51.3M available for Aberdeen, $6.52M for WEB to help fund water-related projects

In other action, the council:

  • Approved an $18.89 million grant award from the South Dakota Board of Water and Natural Resources for improvements to the wastewater treatment plant. The grant was announced by the state in April. That funding package also included a $32.4 million loan. City Manage Joe Gaa said $5 million of the grant matches a city funding contribution. The balance covers 30% of projected project costs.

  • Approved an employment agreement for the hiring of Jordan McQuillen as city finance officer. The agreement includes a starting salary of $102,045 and severance of three months pay if employment is terminated without cause. McQuillen must also live within the city limits.

  • Gaa asked council members to have their promotion fund recommendations for the 2023 budget returned by the next city meeting in two weeks. He said $1.7 million in requests were submitted this year, and $1.2 million is available. The promotion fund is the revenue from the city's 1% tax on restaurant meals, hotel and motel stays and alcohol sales.

This article originally appeared on Aberdeen News: Aberdeen City Council approves TIF for Primrose development, park