This story has been updated.
PIERRE, S.D. (KELO) — Lincoln County has received approval of a $15 million loan from the South Dakota Transportation Commission to help pay for a major highway project planned on the south side of Sioux Falls.
The state commission gave its OK on Thursday after an hour of presentations, questions and answers from two members of the Lincoln County Commission and various other local officials. Sioux Falls Mayor Paul TenHaken also spoke by telephone in support.
The money will help pay for construction of a new interchange on Interstate 29 at 85th Street, the boundary between Sioux Falls and Tea.
State Transportation Secretary Joel Jundt said the project has been on the drawing board for a decade and there’s no current estimate of total cost.
The loan request document presented to the state commission put the total at $66.4 million, with $30 million to come from federal funding, $21 million from a variety of local sources and $15 million from Lincoln County.
The Lincoln County Commission plans at its July 9 meeting to approve a tax-increment financing district to raise the money necessary to repay the 10-year, 1.5% loan.
The $21.4 million of local funding includes $9.1 million from the city of Sioux Falls, $6 million from the state Department of Transportation, $2 million from the city of Tea, and $4 million from other sources.
One of the state panel’s members, Mike Vehle of Mitchell, said he had “some qualms” about the the 1.5% interest rate. “That’s in our guidelines now. So in just my way of looking at things, if it’s in our guidelines, it’s hard for me to say no,” Vehle said. He added, “It is a good project. There is no — I have no question about that.”
Vehle, who served 12 years as a state lawmaker and chaired the Senate Transportation Committee, said Lincoln County officials need to keep in mind their obligation on the state loan as they spend an estimated $15 million they currently have in county reserves. “If we do this at one-and-a-half percent, that’s a heckuva deal,” he said.
The original memorandum of understanding for the project was signed in 2014 by then-Transportation Secretary Darin Bergquist. The MOU left open the terms and duration of the loan.
Secretary Jundt said the details will be worked out with the local government entities if the low construction bid comes in higher than the rough estimate of $66.4 million. “And if it’s above and beyond what we’ve discussed today, we’ll bring that back to you,” Jundt told the state commissioners.
They voted 8-0 for approval of the loan.
“Thank you,” Lincoln County Commissioner Jim Schmidt told the group.
“Good luck,” responded Transportation Commission chair Lynn Jensen of Lake Preston.
“We want you to come down,” Schmidt continued, “and appreciate what you made happen.”
