Special tax district OK'd for County Fair Food Store
March 26. 2013 1:17PM
The Dell Rapids City Council approved a special tax district for County Fair Food Stores at its March 18 meeting, paving the way for a new store at the corner of 10th Street and Highway 77.
County Fairís proposal for a tax increment finance district includes diverting about $689,000 of property taxes from the new store and the development of the nine-acres of property toward the cost of infrastructure improvements in the area.
Site preparations include installing retaining ponds, water and sewer, lot entrances and sidewalks surrounding the property as well as grading work.
An additional $250,000 was included in the plan to allow the city to upgrade its drainage system along the east side of Highway 77 from 10th Street to Eighth Street.
The proposal had unanimous support from the council.
John Clarke, owner of County Fair Food Stores, said heís pleased with the councilís support of the project and hopes to get started with construction by late spring or early summer, with hopes of having the new $2.88 million, 30,000 square foot store open and operating by yearís end.
Throughout the TIF proposal process, which received approval from the planning and zoning board March 12, Clarke has made the case that establishing the TIF district is in the cityís long-term interest.
Clarke told the council the new, bigger store will add 15 to 20 more jobs to his Dell Rapids payroll as well as a wider variety of services and products.
On top of more jobs at his store, Clarke said the city would see a significant increase in sales tax and liquor sales tax revenue, estimated to be as much as $59,500 each year above what is garnered from store sales now.
Clarke expects the city to also see one-time revenue increases from equipment purchases during the construction of the project, which he estimates to be around $36,000.
Clarkeís plans also call for a 3,500-square-foot out lot building and a 20,000 square-foot retail office on the property to come a few years later.
In all, Clarke expects about $5.3 million worth of construction on the lot.