MITCHELL — In addition to recommending approval for a tax-increment financing district, the Mitchell Planning Commission, during its meeting on Monday, June 23, recommended approval for a conditional use permit for a VanBuskirk Homes LLC townhouse development in the 900 block of West Norway Avenue.
The development calls for two buildings with four townhouse units each, and is located in an empty lot behind the Meadows condos on West Norway Avenue. Parking for the townhomes will be in garages in front of the units and the townhomes will be accessible via a west entrance at the Wheatridge Apartments. Construction is planned for late summer.
The commission fielded concerns from locals about the proposed townhouse development on West Norway Avenue, citing concerns for drainage, fencing, and construction traffic driving through the Meadows condo parking lot.
Several residents who live in the Meadows condos addressed the commission, some citing snow removal and foot traffic concerns.
Jordan Hefner, who represents VanBuskirk Homes, told the Mitchell Republic that he will talk to the VanBuskirk owners about what he’s heard from neighboring residents.
A letter to the commission from neighbors David and Cynthia Driscoll, whose backyard abuts the proposed townhouse development, stated concerns about water drainage, entry and exit point for tenants, and concern for a privacy fence.
Hefner plans to put up a fence on the south and east sides of the empty lot, but not on all sides around the property. Constructing a fence around the entire property would cost about $60,000, according to Hefner.
Neighbor David Driscoll addressed the board, stating that heavy rainfalls bring a lot of water to the area and that weed control has been an issue on that property, but that the property had been mowed well this year.
There is an undersized storm sewer in the area, according to Mitchell Public Works Director Joe Schroeder.
Condo resident Ann Morris suggested that the drainage ditch, which is owned by VanBuskirk, needs to be cleaned out.
“I got a lot of feedback,” Hefner said, “So it was a positive outcome.”
Hefner told the commission that he did not want to do a water-modeling hydraulics study. However, the city will evaluate the drainage on the property as part of the building permit process.
“The city is saying there’s going to be a drainage study done here. I would hope that some of your concerns with the backing up of the water to that property is going to be alleviated because this will be designed properly,” Planning Commission Chairman Kevin Genzlinger told the neighboring residents during the meeting.
Senior living facility gets approval
The Mitchell Planning Commission approved recommendation for Tax Increment Financing District (TIF) No. 43, which is for the proposed Peaceful Pines Senior Living center at the JTZ Properties Lakeshore Development on Lake Mitchell west of the National Guard Armory.
The primary purpose of TIF No. 41 is to finance infrastructure costs and calls for a maximum of $2.5 million in discretionary costs and grants, and $375,000 in city administrative reimbursements. The TIF is not to exceed $2.89 million.
The city of Mitchell will receive $375,000 in administrative reimbursements for its infrastructure expenses related to the project after the developer has been fully reimbursed for all certified eligible costs.
The 59,000-square-foot senior-living facility has plans for 21 assisted living units, 18 independent living units, and 16 memory care units. The plan also states the facility will offer a common dining room, lounge, exercise room, a pub, hair salon, and resident laundry.
HME Companies vice president of development Lane Warzecha gave credit to the city for all the support on sanitary sewer access.
Doing this kind of development with a TIF are challenging from a cost, financing and fundraising standpoint, according to Warzecha.
“We strongly believe in providing senior housing care for rural South Dakota, and that’s one of the main reasons we’re here,” Warzecha said.
Courtesy of city of Mitchell
Courtesy of the city of Mitchell
Pending council approval, construction will start in the fall, according to Warzecha. The senior center will take an estimated 14 months to complete, and the project calls for the creation of 30 jobs with $1.5 million in expected payroll.
An engineer’s estimate of probably costs states excavation costs of $570,00, storm sewer costs of $240,000, pavement costs of $165,000, erosion control at $55,000, water and sewer services at $100,000, asphalt and base at $233,100, professional services for $60,000, design for $385,000, and land cost of $473,000.
The TIF plan showed the completion of three other South Dakota Peaceful Pines locations in Madison, Fort Pierre, and Millbank, with a combined 222 total units and two locations with valuations of more than $9.1 million.
Warzecha also thanked Justin Thiesse, who owns the tract, for being a champion on the local level and gathering support for the senior living center.
The tax district plan states that Kirk Simet of SLH Holdings, a Brookings-based real estate development company, will lead the construction project.
These recommendations will go before the Mitchell City Council on Monday, July 7 at City Hall.