MITCHELL – A local auto dealership is eyeing to expand by adding a new line of powersports inventory.
Austen Iverson, owner of Iverson Auto, is planning to open a new powersports dealership in Mitchell that hopes to create 12 jobs. The costs associated with opening the powersports dealership next to Iverson Auto amount to roughly $2.3 million.
To help offset the costs of remodeling a building and other work needed to create the powersports dealership, Iverson is seeking to utilize Tax Increment Financing, more commonly known as a TIF. A little over $715,000 of the project costs to create the new dealership are eligible to receive funding from the TIF district.
A new 15,000-square-foot building will be constructed next to the existing building that sits atop a hill along Burr Street, overlooking Iverson Auto. The existing building would also undergo major improvements and become part of the powersports dealership.
According to the project plans submitted to the city, the new building would provide an additional 15,000 square feet of showroom and shop space for the powersports dealership. The new dealership would be named Iverson Powersports.
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The buildng is planned to be constrcuted in the fall.
The powersports dealership would sell a wide range of motorsport vehicles, including all-terrain vehicles, utility vehicles, snowmobiles and motorcycles. As part of the expansion, Palace MotoSports, located at 600 S. Sanborn Blvd., would move its operations to the new Iverson Powersports facility. Iverson recently acquired Palace MotoSports.
For 75 years, Iverson Auto has been an automotive staple in the region. The local car dealership has expanded to other territories in recent years, including Huron.
The planned powersports dealership would be the auto business’ first expansion into the powersports realm.
Business expansion TIF
Most of the TIF districts that have been created in Mitchell over the past few years were to help fund infrastructure costs for future housing developments. Iverson’s TIF centers around business expansion and economic development, which is what TIFs were initially created for before housing developments became eligible for tax increment financing.
Iverson’s TIF is subject to approval by the Mitchell City Council. The city’s Planning and Zoning Commission will also determine on Monday whether to recommend approval of the TIF, which is intended for the council to consider prior to making its decision.
For a TIF district to be approved in Mitchell, the proposed project in the TIF boundaries must stimulate and develop the economic welfare and prosperity of the state through promotion and advancement of commerce.
In addition to the job creation that will result from the project, Iverson noted in the TIF documents that the expansion of a powersports dealership will bring customers into Mitchell from around the region and help boost the local economy.
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The taxable value of the entire TIF boundaries, which entails the building and the large parking lot surrounding it, is $927,053. When the improvements to the building are completed and the porject wraps up, the taxable value of the land in the TIF boundaries is estimated to increase to $2,021,084.
A TIF helped spur the existing development next to the planned powersports dealership. Over a decade ago, a developer utilized a TIF to develop the area where Pizza Hut, Verizon and a bank building.
Sam Fosness joined the Mitchell Republic in May 2018. He was raised in Mitchell, S.D., and graduated from Mitchell High School. He continued his education at the University of South Dakota in Vermillion, where he graduated in 2020 with a bachelor’s degree in journalism and a minor in English. During his time in college, Fosness worked as a news and sports reporter for The Volante newspaper.
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April 06, 2024 at 12:03AM
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Local auto dealer owner planning to open new powersports dealership in Mitchell with help of TIF - Mitchell Republic
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