BROOKINGS – Brookings County commissioners approved the creation of TIF District No. 2, a key move in allowing Brookings start-up Prairie AquaTech to greatly expand its production and distribution capabilities with a $45 million facility on 8.2 acres located on the east side of Volga.
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Editor's note: Prairie AquaTech CEO Mark Luecke has clarified information presented in documents attached to the Aug. 21 Brookings County Commission agenda and used in the Thursday, Aug. 23, article “County creates new TIF district.” Prairie AquaTech’s new facility in Volga will cost $45 million and will be 45,000 square feet. Its current facility spans 30,000 square feet.
BROOKINGS – Brookings County commissioners approved the creation of TIF District No. 2, a key move in allowing Brookings start-up Prairie AquaTech to greatly expand its production and distribution capabilities with a $45 million facility on 8.2 acres located on the east side of Volga.
A TIF (tax increment financing) district is a way for local governments such as cities and counties to help subsidize the designated area for redevelopment, infrastructure and other community improvement projects.
As described in the attached document, “money for improvements and other incentives comes from the growth in property valuations and the corresponding property tax revenues – the tax increment. A tax increment is the difference between the amount of property valuation present within the TIF district before TIF district designation and the amount of property valuation increase due to the creation of a TIF district.”
While the property taxes within the district continue to be collected at the normal rate, “property taxes collected as a result of the incremental increase in the value of these properties after formation of the TIF district are available for use by the counties or cities to fund project costs in the TIF district.”
The base value of the taxable property in the TIF district is $27,000 as ag land, and Prairie AquaTech has $2.547 million in eligible improvement projects that the tax increment will go towards paying off within a span of no more than 20 years.
Founded in Brookings in 2012, Prairie AquaTech makes a protein-rich ingredient that’s used in fish feed. Business has been good, however, and they’ve outgrown their current 30,000-square-foot facility.
Their plan is to construct a new 45,000-square-foot facility outside of Volga, near one of its key partners, South Dakota Soybean Processors. The $45 million project will allow them to increase production and distribution, and as a result, they expect to hire another 35 employees beyond their current staff of 30 people.
Once all their construction plans, which include future development of administration buildings onsite, are complete, the estimated annual property tax increase will be up to $150,000.
The next step, according to Dougherty & Company Senior Vice President Toby Morris, is the finalization and approval of a developer’s agreement, which he expects to have before the Brookings County Commission for their Sept. 4 meeting.
Contact Eric Sandbulte at esandbulte@brookingsregister.com.
