A proposed new sewer main along Catron Boulevard between Fifth Street and Highway 16 would help eliminate some backflow problems in the Robbinsdale area and also allow the city to eliminate two lift stations, but the Rapid City council is hesitant about using tax increment financing to get the job done.

A number of property owners along Catron and Highway 16 south of Catron to the Hyland Park development worked together to propose the TIF.

Originally, the project included a sewer extension all the way to Hyland Park but it has since been pared down to cover only the sewer main along Catron and elimination of two lift stations near the Catron/Highway 16 intersection.

Creating sewer infrastructure would help alleviate residential sewer problems in South Rapid and would also open up thousands of acres south of Catron for development.

"This project is crucial for the growth of the community," said Hani Shafai, president of Dream Design International, one of the entities involved in applying for the TIF.

Kent Hagg, one of the property owners within the proposed TIF district, said the sewer line has been talked about for at least 10 years.

"It's long overdue. That sewer needs to be there. This is the way to get it done now," he said.

But some council members are skeptical about using a TIF for the project, though they do agree a new sewer main along Catron is needed.

The proposed TIF has been changed and revised several times over the past few weeks, so much so that Alderman Ron Weifenbach is not entirely certain what improvements and costs are included in the proposal.

"When we make decisions on TIFs we have to make sure we have all the facts," he said. "I feel strongly that Highway 16 needs new sewer and water because I do represent Ward 1. I do understand their concerns that the sewer is directed through Robbinsdale. It all runs downhill and runs through South Rapid."

Last week, the council approved the TIF boundaries but sent the project plan back to the TIF review committee for more work. Weifenbach hopes what returns will be a final, clear message of what's being proposed, but he also thinks the city probably could do the project using capital improvement funds.

According to the public works department, the city has $1.85 million in its five-year capital improvement program to build the project in 2009-2010. Doing the project sooner would mean delaying other projects.

Alderman Sam Kooiker questions whether 25 percent of the project area includes blight, a requirement to for a project to qualify for tax increment funding.

"I have some real concerns about that. I asked two weeks ago for the city attorney's opinion on this item and was told it could not be provided to me publicly because of potential violation of attorney-client privilege," Kooiker said.

That's strange, Kooiker said, because the city attorney later gave his opinion in public about another matter during the same meeting.

And after receiving an e-mail from the city attorney sent to the council group, and reviewing the TIF committee minutes in which the assistant city attorney and finance officer both voted against the TIF, Kooiker said his conclusion is the project does not meet the definition of blight, although it is a broadly defined concept under law.

"I find it unfair to the taxpayers we represent that that opinion was not released publicly," Kooiker said. "I'm concerned about the process. It casts a further shadow on tax increment financing in Rapid City, and puts the council in an awkward position regarding the appropriate use of tax increment financing."

Alderman Bill Okrepkie thinks the council has wrestled with the issue but it's important to recognize how important the project is for removing an impediment to growth and development, and also to relieve sewer issues for the south Robbinsdale area.

"It makes sense if we can have a developer put this in, let them use their money, make their own commitments and take the risk to put this thing together," Okrepkie said. "More importantly, rather than waiting until 2010, we can have this done quite quickly."

Contact Scott Aust at 394-8415, or scott.aust@rapidcityjournal.com.