The Mitchell City Council will consider approving a resolution on Tuesday to levy a special assessment tax for downtown properties that are in the Business Improvement District (BID) No. 3 boundaries.

According to the BID guidelines, every downtown property located within the boundary of the BID is subject to an annual special assessment tax based on the assessed valuation of the property. Broken down further, the BID calls for property owners who own commercial buildings located within the boundaries to pay a special assessment tax of $5 per $1,000 of the assessed valuation. The council will vote on the proposed 2021 special assessment tax levy during the 6 p.m. meeting on Tuesday at City Hall.

For example, if a property in the BID boundaries has an assessed valuation of $75,000, the respective property owner would pay $375 per year for the special assessment tax. If all of the property owners in the BID are paying their special assessment tax, it should generate roughly $48,000 per year. However, Mitchell Main Street and Beyond Board President Dan Beukelman said not all have paid.

In an attempt to revitalize an aging downtown, Mitchell Main Street and Beyond orchestrated the creation of the special assessment tax roughly four years ago. Since then, just over 70 properties located within the BID boundaries have been subject to pay a special assessment tax that is being redistributed to those properties with the goal of improving the downtown area.

According to the city's records, in 2019, the first full year the BID was in effect, the tax generated just over $39,443, roughly $9,000 shy from the anticipated $48,000 that was projected in the scenarios that all the property owners were up to date on the payments.

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While the BID tax narrowly passed in May 2018 with just over 50% of the downtown property owners within the boundaries of the BID voting in favor, some business owners are opposed to the BID tax and have spoken out against it in recent years.

According to the city’s records of the BID, some of the largest annual tax amounts in the BID boundaries range from $1,400 to $2,800, while some are as low as $120 to $300. For example, the 2021 assessment amount shows the Navin Apartment Complex on the corner of First Avenue and Main Street is looking at a $2,743 assessment tax, while the Midtown Plaza building on Main Street sits at $2,883, which are among the highest amounts in the BID boundaries.

As several downtown properties have been awarded funds for aesthetic improvements they have made to their buildings, such as The Collective and the former Cherrybees buildings on Main Street, more properties that haven’t been delinquent in paying their taxes within the BID boundaries will be awarded funds throughout each year. A board made up of Mitchell residents and business leaders select the properties that are awarded funds from the BID tax.

Consent agenda

The following items will be considered as part of the consent agenda:

  • Approve the minutes and reports from the following meetings: Aug. 16 City Council meeting and Aug. 30 special meeting; Planning and Zoning Commission’s Aug. 9 meeting and Community Service Board’s August meeting.

  • Approve acceptance of West Nile grant funds.

  • Approve acceptance of section 5310 CRRSAA grant funds.

  • Approve automatic supplement of $550 to Parks and Recreation Center provided by the South Dakota Department of Health for blood pressure cuffs.

  • Approve leg press machine donation from city to Bridgewater/Emery School District.

  • Approve fireworks permit for the Kernel Bowl to be held on Sept. 11, 2021.

  • Approve 2020 property tax abatements that are payable for 2021.

  • Approve the following raffle permits: 301 Rodz with the drawing to be held on Sept. 25; DWU Volleyball with the drawing to be held on Oct. 20; Mitchell Technical College Mavericks Rodeo with the drawing to be held on Nov. 20; Mitchell Skating and Hockey with the drawing to be held in Jan. 2022; Department of South Dakota’s VFW with the drawing to be held on June 10.

  • Approve change order No. 1 to Schoenfelder Construction for 600 block North Davison Utilities project No. 2021-38.

  • Set the date for the following hearings: Sept. 20, for tax levies to be certified to Davison County Auditor; Sept. 20, for the Mitchell Water System Improvements SRF application.

  • Set the date for the following bid opening: 1:30 p.m. on Oct. 14, for bid opening for cemetery three year Hayland lease, stretching from 2022 to 2024.

  • Approve gas and fuel quotes.

  • Approve Sept. 7 pay estimates.

  • Approve bills, payroll, salary adjustments, new employee hires, authorization of recurring payments and other expenses.

Other business

  • Recite pledge of allegiance and receive invocation from New Home St. Mary’s Church.

  • Hear citizens input.

  • Meet as Board of Adjustment.

  • Hold hearing on the following applications: John and Lisa Mentele have applied for a front-yard variance of 21 feet vs. 25 feet as required for construction of a house addition at 1206 W. Hanson Ave., legally described as Lot 9 of Western Heights Addition in the W half of Section 21, township 103 north, range 60 west of the fifth prime meridian, in the city of Mitchell. The property is zoned R3 Medium Density Residential District; Faith Missionary Church’s request to construct an addition of a 38 by 57 building crossing parcels lines located at 1025 E. Sixth Ave. legally described as Lot 4 except in Block 3 of Gleesons Addition in the northeast quarter of Section 22, township 103 north, range 60 west of the fifth prime meridian, in the city of Mitchell, Davison County South Dakota and Lot 3 and E 33’ of Lot 4 in Block 3 of Gleesons Addition in the northeast quarter of Section 22, township 103 north, range 50 west of the fifth prime meridian, in the city of Mitchell. The property is zoned R4 High Density Residential District; Timaysha Enfield has applied for a conditional use permit to operate a family residential daycare center in her home located at 1318 W. Ash Ave, legally described Lots 7 & 8 Block 6 of Potters Addition in the southwest quarter of Section 21, township 103 north, range 60 west of the fifth prime meridian, in the city of Mitchell. The property is zoned R2 single family residential.

  • Set the date for the following hearings: Sept. 20, Brooke Hartman’s application for a conditional use permit to operate a family residential daycare center in her 317 E. Fourth Ave. home, legally described as lot 2, block 27, original addition, in the city of Mitchell. The property is zoned R2 single family residential; Sept. 20, Stacy Nettinga’s application for a rear-yard variance of 0 feet vs. 3 feet as required for construction of a garage addition at 204 W. 11th Ave., legally described as lot 11, block 29, capital addition, in the city of Mitchell. The property is zoned R2 single family residential; Sept. 20, for George Morgan’s application for a side-yard variance of 0 feet vs. 3 feet as required for enclosing an existing non-conforming carport at 414 N. Davison St., legally described as lot 6A and West half of lot 5A, block 30, cooley and guernsey addition, in the city of Mitchell.

  • Reconvene as City Council.

  • Hold hearings and take action on the following alcohol license applications: Corn Palace Shrine Club’s application for a special event liquor license located at the Masonic Hall for weddings on Sept. 11 and 18; Palace City Lions’ application for a special event liquor license located at the DWU Sherman Center for Sept. 24 for DWU Blue and White Unite.

  • Approve awarding bid for sidewalk, curb and gutter project for the South Dakota Department of transportation utility project No. 2021-55.

  • Approve acceptance of 5339 grant funds.

  • Approve agreement for Mitchell Municipal Airport applicator.

  • Approve agreement for an easement with Northwestern for underground utility work.

  • Approve agreement for coronavirus local fiscal recovery fund financial assistance agreement and assurance of compliance with title IV of the Civil Rights Act.

  • Approve agreement for Corn Palace renovation study with Schemmer Associates, Inc.

  • Approve accepting solid waste management program grant from the state for expanding landfill cell No. 4.