The City of Yankton has been approached by a commercial developer concerning the development of a stand alone “big box” retailer and that without the City's financial participation and support, the land would not be developed nor would the retailer locate there. An essential component of the City’s participation is funding for certain costs needed to support the project (or any comprehensive redevelopment of the site), all of which is currently estimated to cost a maximum of $6,421,360.00. The plan identifies nearly $26,000,000 in private investment for the project.

It has been made made clear that City funding for these public improvements must be supported by the tax revenues generated by the Project, and not by the general revenues of the City. The vehicle through which this can be accomplished is “tax increment financing” under South Dakota Tax Increment District Law (South Dakota Codified Laws Chapter 11-9). Tax increment financing is an indispensable self-financing tool used throughout the United States to help local governments successfully develop and redevelop areas and encourage economic development.

In tax increment financing, the current real property tax assessed value of all properties in a designated project area is identified as the “base value”. As development in the tax increment financing district increases the assessed values of the redeveloped properties, a portion of the additional tax revenue generated by the increase in assessed value over the base value is set aside and committed by the City for debt service on tax increment bonds, the proceeds of which would be used for the construction of the project costs.

Tax increment financing is permitted only in connection with a “Project Plan” duly adopted by the City.

The plan for the district was reviewed and approved by the Yankton City Commission on February 23, 2009. The plan was presented by Jeff Dozier, Kessinger Hunter. Parties interested in the site can contact him at (913) 754-1499