Editor’s note:This Speakout was submitted by Tim Reed of Brookings.
Im writing this letter as a citizen, former city of Brookings council member and mayor not as the CEO of the Brookings Economic Development Corporation.
Last week, The Brookings Register published two Speakout columns that criticized the Brookings City Council for its efforts to bring requested retail development to Brookings. The criticism is off base in many ways. I was on city council when the property was originally purchased from the state of South Dakota. The city was notified that the S.D. Department of Transportation planned to demolish the shop and rebuild on the same site. The City offered a different location for the DOT shop and to purchase the land now commonly known as the Marketplace. While local developers would have liked to have that land unavailable to make their land more profitable, the city recognized that it was a major location for future retail development.
The current market value of the land is nowhere near the amount stated in one of the Speakout columns. This land is not developed and will need water, sewer, roads, and storm drainage. Once the land is developed with infrastructure it will be worth a much higher price. The city has done its due diligence having the land appraised and is offering it to Ryan Companies at market rate. The state initially tried to use developed-land comparable sales when it requested a price of five times the value. The city said no and the state realized that it was not a fair price and offered it at a lower price. The city purchased the land at that time for a premium, knowing that it was important for future retail. If that decision had not been made, who knows what would have been developed there.
It is important to point out that there are several economic development programs that are used by most developers in this community. For example, many of the individuals listed in one of the Speakout columns have taken advantage of what is called Tax Increment Financing (TIF). For 20 years, instead of paying full property taxes they are allowed to use those funds to pay for infrastructure for their development projects. These programs help many of the housing and retail developments you see in Brookings and are available to all developers.
Lowes is the perfect example of how a public-private partnership can provide retail choices for Brookings. The city got involved with that project when Lowes was not able to come to an agreement with the developer for the land where it sits today. Lowes would not have been built if it wasnt for the citys intervention.
During my time on the city council and as mayor, constituents were always asking for retail development. I focused on it, as did mayors and councils that followed me.
The recent action of the current city council will bring retailers that citizens of Brookings have requested and will provide sales tax revenue to help fund our roads, parks, and public safety.
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