Ask the average person to define a "blighted" area, and invariably, the discussion will turn to crime-infested, broken-down slums.

But blight can also mean an open area that impairs a city's growth, according to South Dakota's tax increment financing statutes.

The committee studying how Rapid City uses tax increment financing adopted minor changes to the city's guide for TIF applicants Thursday, replacing a list of mandatory criteria with the actual state statutes governing TIFs.

"Rather than try to explain to someone or offer a legal opinion about what the statutes are, I think it's easier to simply insert them," City Attorney Jason Green said.

Under state statute, to use the economic-development tool, an applicant must show at least 25 percent of the area within the TIF district is blighted and that improvements will significantly enhance property value within the district. The next three ordinances define blight, which includes the common "slum" understanding but also refers to areas where growth is inhibited for reasons such as obsolete platting or diversity of ownership.

"The city has the ability to adopt more restrictive criteria, but these are the minimum," Green said. "I don't think the committee needs to talk much about blight because the state has already told us what it is."

Alderwoman Karen Gundersen Olson, a committee member, said that in the past, the city attorney's office has occasionally disagreed about a TIF proposal meeting the blight criteria, but the TIF was approved, anyway.

That raises concerns in the public's mind about the legitimacy and legality of TIFs, something she hopes the committee addresses.

"I find that distressing. That does not contribute to building public confidence in what we're doing," she said. "Having said that, I do believe it is a tool that's important to the community. I wouldn't want to lose it, but on the other hand, it's heavily reliant on public trust."

Green said he can offer his legal opinion about statutory criteria, but ultimately, it is the city council that makes the final determination about blight.

Task force member Bob Brandt said one statute clearly states that an open area that restricts growth can also be considered blighted.

"That gives all the authority right there to develop, and you don't need a burned-out factory to declare something blighted," he said.

The task force also discussed, but did not reach consensus about, requiring more specific information from people applying for TIFs about project costs, development-financing plans, conceptual project plans, development time schedules and disclosure statements identifying financial or personal interests in financial institutions.

Two weeks ago, the task force voted to abolish the TIF committee and let all TIF applications follow the same procedure as every other project going through the city approval process.

Those projects are reviewed by the development-review team, then sent to the planning commission. The team includes representatives of the city attorney's office, growth management and public works. The finance office, normally not a part of project review, would likely be included in TIF project reviews because of the financial nature of TIFs.

Another task force meeting is scheduled for 11:30 a.m. Jan. 9 at the City/School Administration Center.

After the committee finishes its work, it plans to hold a public hearing about all recommendations. Eventually, the group's recommendations will go to the city council for consideration.

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