BROOKINGS Should a fee be charged on tax increment financing districts in Brookings County? That was the question on officials minds at Tuesdays Brookings County Commission meeting, and the answer leaned toward yes.
That said, no decision was made by commissioners the discussion was just that, discussion. Still, a variety of questions, concerns and positions were heard, including from Brookings County Director of Equalization Jacob Brehmer, who advocated for an upfront, one-time fee for simplicitys sake.
In an effort to not give us another task that we have to collect a fee or reach out to individuals that are developers of TIFs on an annual basis, I would advocate for an upfront fee for the TIF and then thats it, he said. Dont have a recurring annual fee because that just gives us another task and something to track as far as collecting the funds and that sort of thing.
Brehmers office, along with Finance Officer Lori Schultz and her office, teamed up to provide commissioners with information and options for possible fees. That included language for resolutions that would allow for either a one-time application fee or a one-time application fee packaged with an annual administrative fee.
Commissioner Shawn Hostler inquired as to what other counties are doing regarding TIF fees, including if theyre focusing on upfront fees or using other approaches.
Its kind of a mixed bag when you look across the state, Brehmer said. I think theres some cities that charge a TIF fee up front and then they have recurring fees annually. Theres some I know Pennington County and Rapid City somewhat overlap. So if you would create a TIF in Rapid City city limits, theres a fee to Pennington County thats recurring and theres a fee to (the city of) Rapid City thats recurring.
He continued, Theres several out there that charge basically just an administrative fee up front and then thats it, and I think that would be the route that I would advocate for.
If the county did start charging a fee for TIFs, it would be in good company in the sense that the city of Brookings already does so.
The citys fee, which is one-time in nature, is $10,000, according to Community Development Director Mike Struck. He pointed out that the fee used to be $1,000, but was increased in January with the idea behind that being twofold:
- One, that the applicant for the TIF was serious regarding the project.
- Two, to help the city recoup of its administrative costs.
That second part is the biggest reason why the county is exploring the idea of a TIF fee. After all, a one-parcel TIF isnt all that complex to manage but that simplicity can go out the window when a TIF contains multiple parcels; the more there are, the more complex it is for the county to administer it.
For example, Brehmer said there are TIFs that range from one parcel to several hundred parcels and both extremes are found within Brookings city limits.
Hostler said that the proposed fee isnt designed to make money on the deal, its just for administrative purposes a point that can hit with a little more force after listening to the complexities dealt with by Brehmer and Schultz.
There might also be other considerations even if a one-time TIF fee comes to fruition. Commissioner Larry Jensen said the size of the project might be a factor in the dollar amount charged, using examples such as a TIF with 10 to 20 houses, a TIF with 100 to 200 houses and a TIF with a large business within it. Meanwhile, Commissioner Dave Miller wondered the if the proposed fee could be based on a percentage of the value of a TIF project.
The county currently has 18 TIFs. If a fee is added, the plan is it wouldnt affect the existing TIFs. As for the type of fee, the one-time approach appeared to have the most verbal support, including from Commissioner Kelly VanderWal.
The one-time fee makes the most sense, he said. Were not looking to create more work for our department. The one-time fee I think would be a good idea.
As for how much it should be, Commissioner Doug Post posed that question to Brehmer, who noted that a one-time fee in the $2,500 to $5,000 range would likely be ideal.
I think that would be sufficient I think that falls in line with what other counties are already doing as well, he said.
The TIF fee discussion and possible action will continue in the weeks and months ahead. In other business on Tuesday morning, commissioners:
- Heard from Highway Superintendent Brian Gustad, who informed commissioners that Sir Lines A Lot had the low bid for road striping in the county as part of 16-county bid that totaled $1,044,250.25. Brookings Countys share of that portion is $117,439.25. Commissioners are expected to vote on the plan later this month.
- Schultz informed commissioners of difficulties her office is having with the new 605Drive system the South Dakota Department of Revenue has implemented in terms of how time-consuming its been. With that in mind, Schultz said title transfers will no longer be done after 4:30 p.m., although the office itself will still be open until 5 p.m. She pointed out that other counties including Codington, Brown and Grant are taking similar measures.
- Approved, on a 5-0 vote, a resolution to purchase a 2025 Freightliner 114SD Plus. The cost of roughly $145,000 is just for the truck and doesnt include hydraulic- or snow-related equipment components.
Contact Mondell Keck at [email protected].
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