The City of Pierre and Stencil Group have entered into an agreement to formalize the development plan for a new apartment complex in northeast Pierre.
The agreement outlines the responsibilities of both the City and Stencil as it relates to the TIF (Tax Increment Financing) that will be used for the development. Specifically, it states that the City will set aside up to $1,237,543 of the new property tax collected on the complex to help finance the project. In turn, Stencil will develop the property in a lawful and responsible way and shall bear all the financial risk.
At the request of the South Dakota Department of Revenue, the Commission also amended the previously approved TIF resolution with Stencil to indicate the primary purpose of the TIF is for housing development; the TIF previously listed the primary purpose as economic development.
In late September 2023, Stencil Group, a Sioux Falls based developer, announced plans to build a 100-plus unit apartment building just off Abbey Road. Construction is expected to begin this coming spring and take 14-16 months to complete.
Stencil Group has existing housing developments in Aberdeen, Brookings, Mitchell, and Watertown, as well as several like-sized communities in Minnesota.
The 112 units will include studio, one, and two-bedroom apartments. The complex will also include a sky lounge, theater, and workout room.
The undeveloped land’s estimated worth is $80,609; once the apartment complex is complete, the property value is estimated to increase to $21,300,000.