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Sturgis council approves 3 new TIF districts

Sturgis council approves 3 new TIF districts

Sturgis Public Library City Hall building

Sturgis City Hall/Public Library building

STURGIS | Major development projects are in the works for the city of Sturgis after the City Council approve the formation of three tax increment financing districts to support new modular homes, a senior living facility and another neighborhood that could also include the city's second-largest park.

City Manager Daniel Ainslie presented the plans to the council Monday. A tax increment financing (TIF) district is formed when unfunded improvements are necessary within the district's boundaries to grow the property tax base.

Essentially, the property tax levy will be set at a certain level prior to the improvements. As the property value increases, that additional revenue from the increased value would be used to pay for the infrastructure improvements. Once the TIF is paid off, the full value of the property would be allocated to the taxing entities, the city, the county and the school district.

The first district approved Monday was TIF No. 16, which will encompass a plat of land along Vanocker Canyon Road, north of Pine View Drive. Ainslie said the TIF dollars will be used to fund water and sewer infrastructure, and road, bicycle path and storm water improvements along Vanocker Canyon Road.

In return, the developer, PSI Family LLP, will construct 23 new modular homes and a storage facility.

The second district, TIF No. 18, was established to assist development for a planned senior living center near Moose Drive and Dolan Creek Road. The boundaries of the TIF district meanders down Meadowlark Drive to Hurley Drive before circling back to Dolan Creek Road and Moose Drive.

Ainslie said Gustafson Development and some other parties are planning to build a three-story, 50-unit senior living center that will also include a mix of apartments and townhomes.

The TIF District would finance a portion of storm water management, new sidewalks, road improvements and earthworks.

The third district approved Monday was TIF No. 19, for a portion of the Marcotte Tract that the city purchased and annexed in 2012.

The Marcotte Tract is a former wildlife production area along Elk Road. Plans call for Dream Design International to build a new 94-lot single family housing development. The lot would include Sturgis' second-largest public park with recreational trails.

The TIF dollars would be used to fund a portion of the costs for storm water drainage, sidewalks, road improvements, a bike path extension, park infrastructure and improvements to Otter Road.

TIF Nos. 16 and 18 passed the City Council unanimously. TIF No. 19 also passed, but with Ward 3 Councilor Jason Anderson abstaining.

Contact Nathan Thompson at

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