Sioux Falls Mayor Paul TenHaken this week unveiled a proposal for what would be the city’s first ever accessible housing tax increment financing (TIF) package.

City councilors Tuesday got their first look at what’s being called the East Ridge District TIF, a $2.1 million incentive for Nielsen Construction to build 65 housing units near Madison Street and Veterans Parkway. The project calls for more than $20 million in private investment, but would help the developer offset the cost of building out infrastructure to the site, including roads, water and sewer.

In return, Nielsen Construction is promising to offer the housing units – 39 single-family homes and 26 twin homes – at or below first-time homebuyer prices.

Dustin Powers, a community development coordinator at City Hall, said based on current market rates, the housing units would be sold between $204,000 and $340,000.

The 9.7 acres the TIF district would encompass is only a portion of a 95-acre housing development planned in the area, said Kelly Nielsen, owner of Nielsen Construction.

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