Rapid tops the TIF charts

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RAPID CITY, S.D. (KOTA TV) - Rapid City stands alone at the front of the pack for the most tax increment financing districts in the state.

Officials in Pierre compiled a list of all the Tax Increment Financing - or TIF - projects in the state and its shows Rapid City leaders have issued more TIFs than the next three cities combined. A TIF is a partnership between the city and a business to help spur economic development.

"The bulk of the risk falls on the developer," said Ken Young with Rapid City. "Should they completely fall away and nothing works out for them then there could be a slight risk for the city."

Some of the more successful development projects include the Black Hills Energy Corporation's headquarters, Cabela's, and the Rushmore Shopping Center.

"What we always need to assess is what is the risk that they may or may not stay or may or may not come," Young said.

He also says Rapid City has a lot of TIFs because it is the only large town in the area.