Vantage Point TIF gets first go-ahead from committee

May 02--One step down, two to go.

A $655,000 tax increment finance (TIF) district to support a 25,000-square-foot expansion to Mitchell-based Vantage Point Solutions received a recommendation from Mitchell's TIF Committee on Tuesday at City Hall, now requiring a recommendation from the Planning and Zoning Commission and City Council before it can receive final approval.

The plan would support design and construction of improvements associated with ingress, egress, project costs and infrastructure to support a $2.5 million capital investment from the telecommunications engineering and consulting firm's addition to the north side of its existing 30,000-square-foot facility. If approved by the council, the city investment of $655,000 would be repaid by capturing the increased tax revenue created as a result of the expansion.

The plan was unanimously recommended Tuesday, and could ultimately become the city's 23rd TIF district. If approved, the TIF would be repaid within 16 years, but with an added $48,000 estimated in new taxes at the location, it could be repaid sooner.

"You can see that even though we're putting it at 16 years, it's quite possible it's paid off earlier than that," said City Administrator Stephanie Ellwein.

Vantage Point Solutions intends to extend its existing building northward, approaching West 23rd Avenue, across the street from Mitchell's city-owned cemetery. And the project is expected to add 40 new employees to the company that already employs 179 people and served 480 clients in 2016, according to city documents.

If the city moves forward with the plan, construction is expected to kick off in the summer of 2017 and be completed by April 2018. And according to the TIF Committee, the plan meets the legal criteria needed to allow the city to approve the TIF.

To be approved, a TIF district must comply with two of six additional criteria, and the committee determined the plan meets three:

--The expansion would not be economically feasible without the use of the TIF;

--The plan will not provide direct or indirect assistance to retail or service business competing with existing Mitchell businesses;

--And the project would bring expanded employment opportunities to Mitchell.

The committee also determined the plan meets three discretionary criteria by involving an expansion to an existing business, project costs are limited to typical construction costs and the developer agrees to waive the five-year tax abatement.

According to Vantage Point's plan, the new jobs would pay approximately $50,000 to $100,000, including benefits, and the company's North Carolina location was discussed occasionally as another possible option for expansion if the Mitchell project can't move forward.

"This really makes it possible for them to expand here in Mitchell versus their other locations," Ellwein said.

The TIF is expected to be discussed at Monday's Planning and Zoning Commission meeting. If recommended by the commission, the plan would still require City Council approval.

If approved, this would be Vantage Point's second TIF, having been approved of a TIF to cover up to $650,000 in assistance to acquire land and make infrastructure improvements ten years ago.

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