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Rapid City Council a measure Monday night granting the Rapid City Collective Impact the full $5 million in Vision Funds it had originally requested for the purchase of two properties along the 100 and 200 blocks of Kansas City Street for its OneHeart campus. The nonprofit plans to redevelop the property into a campus that would house area social service organizations seeking to assist the city's homeless.

Rapid City Council will consider a measure Monday night that would reroute Vision Fund dollars from the renovation of Floyd Fitzgerald Stadium to a proposed downtown homeless resource center.

Councilman Steve Laurenti, who could not be reached for comment, is proposing the amendment. It would grant the Rapid City Collective Impact the full $5 million in Vision Funds it had originally requested for the purchase of two properties along the 100 and 200 blocks of Kansas City Street for its OneHeart campus. The nonprofit plans to redevelop the property into a campus that would house area social service organizations seeking to assist the city's homeless.

In February, the city council allocated $3.9 million for the campus. It will decide Monday whether to make up the million-dollar difference with money originally awarded to Fitzgerald Stadium. Collective Impact has said the project would cost a total of $16 million, $11 million of which city Finance Director Pauline Sumption said has already been raised.

Black Hills Sports, Inc. would receive the full $5 million it had originally requested for the renovations under the new proposal, mostly through the use of city capital improvement funds. Renovations stand to get a boost of $1.3 million between 2019 and 2020, according to city documents, but wouldn't receive additional capital funds until 2023.

In an email exchange with Laurenti, Sumption said that the Vision and capital funds would each still maintain a reserve balance of $1 million under the proposal. By investing in the campus, Sumption said, the city would own the property and lease it back to Collective Impact.

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"From the city’s perspective, it makes sense to own the property to protect our investment," City Attorney Joel Landeen wrote in an email Friday. "If OneHeart fails or ceases to function as anticipated, the city could re-purpose the property or declare it surplus and recoup our investment."

The proposed site of the campus, which is the former National American University location, was purchased in 2013 by developer Hani Shafai for $4.75 million. It generated $80,247 in property tax revenue in 2018, 19 percent of which went to the city.

City ownership would strike the property from the tax rolls, Landeen wrote, but would save Collective Impact the money necessary for getting the project off the ground.

Members of the city's Legal and Finance Committee planned to discuss the proposal last week, but the meeting was cancelled when city offices closed for the duration of the blizzard that swept through the region. It passes now to council without a recommendation.

The council meeting is scheduled to start at 6:30 p.m. at the city/school administration building in downtown Rapid City. 

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