As Rapid City continues to grow, the city hired North Carolina-based consulting firm Urban3 in 2024 to analyze how land use and development patterns impact long-term financial sustainability.
The study found that large land uses such as Target and Uptown Mall generate relatively low revenue compared to other commercial properties. Urban3 COO Heather Worthington noted the mall’s land value is just $0.2 million per acre, largely due to extensive parking areas, suggesting cities should rethink how parking is regulated and repurposed for future development.
The report also examined tax increment financing (TIF) districts, showing mixed results: the Main Streets Program TIF produced a $33,000 net gain, while Red Rock Meadows recorded a $13,000 loss. Worthington emphasized that higher-density, compact development tends to deliver greater long-term value than lower-density single-family projects.
The findings provide Rapid City with new tools, including 3D revenue and cost models and a development evaluator, to guide more financially sustainable growth decisions.
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