Home » Legals » City of Aberdeen – Notice of Resolution 26-04-01R

City of Aberdeen – Notice of Resolution 26-04-01R

By Aberdeen Insider  -    April 9, 2026 in Legals   Reading Time: 5 minutes

RESOLUTION NUMBER 26-04-01R

RESOLUTION CREATING

TAX INCREMENT FINANCING DISTRICT NUMBER 45

 

WHEREAS, a public hearing was held before the Planning Commission of the City of Aberdeen, South Dakota, on March 17, 2026, at 7:00 p.m., in Council Chambers in the Municipal Building, 123 South Lincoln Street, Aberdeen, South Dakota, pursuant to notice of such hearing, for the purpose of considering the creation of Tax Increment Financing District Number 45 (hereafter “TIF 45”) and its proposed boundaries, such public hearing also being the time and place for its regular meeting; and

 

WHEREAS, the Planning Commission at such regular meeting did establish the boundaries of TIF 45 and did recommend the City Council of the City of Aberdeen, South Dakota, create TIF 45; and

 

WHEREAS, the Planning Commission at such regular meeting did recommend to the City Council that it approve and adopt the Project Plan; and

 

WHEREAS, such action by the Planning Commission was done in accordance with SDCL Chapter 11-9 at a regular meeting of the said Planning Commission after notice properly given and after due hearing and being appropriately and properly advised.

 

NOW, THEREFORE, BE IT RESOLVED by the City Council of Aberdeen, South Dakota, as follows:

 

  1. District Necessity.  Pursuant to SDCL §§ 11-9-4 and 11-9-8, the City Council hereby declares the necessity to form TIF 45 in the City of Aberdeen and finds that not less than fifty percent, by area, of the real property within TIF 45 will stimulate and develop the general economic welfare and prosperity of the City of Aberdeen and State of South Dakota through the promotion and advancement of industrial, commercial, and manufacturing in TIF 45 enhancing the area and improving the tax base of the City of Aberdeen, and the improvement of the area is likely to enhance significantly the value of substantially all other real property within TIF 45 and immediately adjacent thereto.

 

  1. District Boundaries.  The boundaries of TIF 45 shall be and the same are hereby designated as:

 

Lots 1, 2, and 3, Wagner Holdings Third Addition to the City of Aberdeen, in the W½ of Section 17, Township 123 North, Range 63 West of the 5th P.M., Brown County, South Dakota (Parcel IDs #30698, 30699, 30700); and

Lot 2, Wagner Holdings Second Addition in the W½ of Section 17, Township 123 North, Range 63 West of the 5th P.M., Brown County, South Dakota (Parcel ID #26954).

  1. Creation and Conditions.  TIF 45 is hereby created with an effective date of April 6, 2026, and upon the following conditions:

 

(a)       Term of District.  The term of TIF 45 shall be  twenty (20)  years from the date of the creation of TIF 45, therefore, positive tax increments may not be allocated to the City longer than  twenty (20)  years after the calendar year of creation of TIF 45.

 

(b)       Payment of Project Costs. 

 

(1)       Project costs eligible for reimbursement by the City from positive tax increments shall not exceed the aggregate sum of $4,137,000, which sum is the maximum total reimbursement for the project capital costs, financing costs, and other TIF-eligible expenses described in the Project Plan.

 

(2)       No project cost incurred after five (5) years following the creation of TIF 45 may be paid from positive tax increments unless an amendment to the Project Plan is adopted.

 

(3)       All outstanding indebtedness for project costs financed by Aberdeen Development Corporation (the Owner and Developer of land which has been designated the “Roosevelt Business Park Development”), and its successors and assigns, shall be paid or retired no later than the term of TIF 45.

 

(4)       Reimbursement of Developer’s project costs or payments to holders of indebtedness issued to pay project costs shall be made solely from the special fund for TIF 45 created under SDCL § 11-9-31. Each instrument of indebtedness shall contain such recitals as are necessary to show that the instrument is only so payable and that the instrument does not constitute a general indebtedness of the City or a charge against its general taxing power. TIF 45 will be designated as an Annual Appropriations TIF to ensure that it does NOT count against constitutional debt.

 

(5)       City, unless otherwise instructed by Developer in writing in its sole discretion may prioritize payments from the special fund to one lender over any other and may allocate payments among lenders on other than a pro rata basis.

 

(c)       No Claim to Discretionary Formula. Developer will not claim, and shall impose covenants upon any direct transferee of land to permit no claim to, any portion of the discretionary formula of all of the assessed valuation for tax purposes for the applicable period following construction of new retail, commercial, or industrial structures on any of the lots developed by Developer. As a local industrial development corporation, Developer, pursuant to SDCL § 10-4-8.1, may not receive a property tax exemption on real property owned by Developer and located in the District.

 

(d)       No Remittance Upon Default.  No Tax Increment Revenues for reimbursement of eligible project costs will be remitted by the City to Developer or to holders of indebtedness issued to pay for project costs if Developer is in default of the Tax Increment Financing District Number 45 Development Agreement as fully-executed by and between Developer and the City of Aberdeen (hereafter the “Development Agreement”).

 

  1. District Name.  TIF 45 shall be named and designated as “Tax Increment Financing District Number 45, City of Aberdeen, South Dakota.”

 

  1. Project Plan.  Pursuant to SDCL 11-9-13, the Project Plan submitted by Developer includes information satisfying each of the five requirements contained therein.  Pursuant to SDCL 11-9-16, the Project Plan includes information satisfying each of the six requirements contained therein.  The Project Plan is feasible and in conformity with the master plan of the City.  Except as otherwise amended by this Resolution, the Project Plan shall be and the same is hereby approved and adopted.

 

  1. Development Agreement.  The Development Agreement shall specify the conditions for development of the owner’s property in TIF 45 and for financing and payment of the project costs, except that no tax increment bonds may be issued.  The Development Agreement when fully-executed shall be expressly incorporated herein and adopted by reference.  The Development Agreement may be amended from time to time by mutual agreement of the parties.

 

  1. Aggregate Valuation.  The aggregate assessed valuation of the taxable property in TIF 45 plus the tax increment base of all other existing tax increment financing districts does not exceed 10% of the total assessed value of taxable property in the City of Aberdeen, South Dakota.

 

  1. General Conditions for Termination of District.  TIF 45 shall terminate upon the earliest date of any of the following occurrences:

 

  1. Positive tax increments are no longer allocable to TIF 45;

 

  1. The Council, by resolution, dissolves TIF 45, after payment or provision for payment of all project costs and grants of TIF 45; or

 

  1. Developer is in default of the Development Agreement and fails to cure such default within the time specified therein.

 

  1. Execution of Documents.  The City Manager and Finance Officer are authorized to execute those documents necessary to create and certify TIF 45 as of the effective date of its creation.  The City Manager is authorized to finalize the execution of the Development Agreement and to enter into such amendments thereto from time to time as the City Manager determines to be in the best interests of the City of Aberdeen.

 

  1.        Acceptance by Developer.  Developer may accept this Resolution by executing and acknowledging the same within 20 days of the date of adoption of this Resolution.  Upon timely acceptance of this Resolution, Developer shall be bound by all terms and conditions contained herein.  If Developer timely accepts this Resolution, it shall become effective 20 days after the completed publication, unless the referendum is invoked.

 

  1. Severability.  The provisions of this Resolution are severable.  If any provision of this Resolution or the application thereof to any person or circumstance is held to be invalid, such invalidity shall not affect other provisions or applications of this Resolution which can be given effect without the invalid provision or application.

 

The foregoing Resolution was considered at a regular meeting of the Aberdeen City Council on the 6th April, 2026, and upon Roll Call vote the Resolution was adopted.   Number of AYES:  4, Number of NAYS: 3, Members abstaining: Councilman Ward,

/S/Travis Schaunaman, Mayor,

ATTEST: Jordan McQuillen, Finance Officer,

Published once on April 9, 2026, at the total approximate cost of $94.79 and may be viewed free of charge at www.sdpublicnotices.com and www.aberdeeninsider.com