Call it a sign of the times. Because development plans in the area did not materialize, city councilors have decided to dissolve Tax Increment District No. 2 in Brookings

Councilors voted 7-0 to approve Resolution No. 08-10 last Tuesday. The action was part of the council's consent agenda.

It marked the end of high hopes at least for the present time for a major retail development east of the I-29-U .S. Highway 14 intersection.

The city created TID No. 2 in May 2007. The more than 60 acres on the northeast side of the Interstate 29-U .S. Highway 14 intersection includes the state Department of Transportation property that the city hoped would become part of a commercial or retail development.

In tax increment districts, cities can build infrastructure, like new roads, curb and gutter, or sewers within predetermined boundaries.

After the improvements are in place, the taxes from the increased value of that property can be used to pay off the bonds that initially paid for construction.

Ideally, the improvements will help attract new businesses to town that are looking for places to build, or can create room for existing businesses to expand.

The purpose of TID No. 2 "was to offer tax increment financing as a tool to stimulate and leverage private-sector development and redevelopment in an area at a much faster pace than might otherwise occur," according to a memo in the Jan. 26 city council packet.

Once the tax increment district was created, the city had five years to expend funds for infrastructure improvements. TID No. 2 was set to expire in May 2012. No costs incurred

The city did not incur any project costs or issue any obligations by pledging tax increment revenues. All money held in the TID No. 2 fund will be paid to the Brookings County Treasurer and apportioned to the respective tax levying agencies.

If officials want to, the city will be able to create a new tax increment district in the same area if and when development is ready to proceed. 2006 plan

The idea for a retail/commercial development near the Swiftel Center surfaced in 2006 The development plan imagined for the interchange includ ed retail shopping with at least one major retailer restaurants, a movie theater, a hotel and other facilities.

The council struck an agreement with a Minnesota company to develop the property , and when that deal fell through, councilors traveled to a Las Vegas business convention in an attempt to personally recruit prospects for the project. DOT land critical

An integral part of the development plan was the 26-acre parcel of land occupied by the state DOT. Several years ago, the city council asked to buy the property, which has frontage on Highway 14, and offered land and other amenities so the DOT could relocate to a new building north of the business park.

Despite their interest in the land, councilors rejected the $4 million purchase option in December 2008 due to the high price and the economic climate.

City officials still want to see the property developed.

Contact Jill Fier at jfier@brookingsregister .com.