New Black Hills Rate Increase is an Improvement

Great news for Black Hills homeowners; especially those with multiple residences! The South Dakota Public Utilities Commission has approved a settlement to increase electric rates to 6.4 percent. Ok, so think I’m crazy for calling that “great news?”

In December 2012, Black Hills Power, a subsidiary of Black Hills Corp., filed a request to increase rates by 9.94 percent which was implemented on an interim basis beginning June 16 2013. Since the approved increase is lower, rates billed to customers will be reduced on October 1 and all charges for service between June 16 and September 30 will be recalculated. Homeowners can expect to see bills credited with the refund starting in November, just in time for some holiday saving!

“Our customers depend on safe and reliable electric service,” said Vance Crocker, vice president of operations for Black Hills Power. “Since our last rate filing in 2009, we have invested more than $50 million to extend service to new customers, replace and upgrade our distribution and transmission systems, install advanced metering systems, and ensure environmental compliance.”

The 6.4% increase is expected to be a revenue increase of $8.8 million per year and is the result of an agreement involving Black Hills Power, PUC staff and other parties.

If you are ready to buy a vacation or investment property; or just have questions on if it’s the right choice for you – I’d love to talk with you. Our expertise in the Black Hills or Rapid City markets will ensure you a stress-free experience. Contact me, Jim Peterson, at (605) 574-4444 or email me to discuss how I can help you with all your real estate needs. My office is in the heart of Hill City and as a tourist spot, restrooms are hard to find – mine are always open for your convenience

Commercial Real Estate Growing in Black Hills Region

The Black Hills, South Dakota area may be known for its millions of acres of beautiful forest, premier vacation spots and great towns such as Hill City or Rapid City, but commercial real estate is making an emergence as well. A recent article from Mortgage News Daily shows that many of the Black Hills area towns are making a comeback in population while prices are still low.

Commercial real estate in South Dakota is among the best priced real estate in the country. It certainly has the land available to be developed into affordable housing developments, retail complexes and industrial spaces. While many young adults seem to be flocking to more metropolitan areas of the country, studies have shown that young South Dakotans are staying true to their roots; many obtaining a higher education and moving to local cities gaining in population such as Sioux Falls and the Black Hills region.

With tourism bringing in over $2 billion a year in our area, there is great potential in reviving the lodging, restaurants, and retail stores already standing in tourists cities such as Deadwood, Hill City, and Sioux Falls. While prices are still low, now is a great time for new business owners to buy-in before prices begin to rise significantly.

There are also great incentives, including tax policies, for opening a business in the Black Hills area:

• No personal income tax levied on your business or employees.
• For smaller business owners, South Dakota does not have a state levied property tax.
• There are plenty of vacant lots already zoned to be developed into commercial real estate at reasonable prices.
• The Black Hills Region is a rapidly growing area; there will be a need for more lodging, restaurants and stores as the population grows.

If you are interested in looking to purchase commercial real estate in the Black Hills area, I can help! If you are ready to purchase a home in the Custer Area, look at investment land in Hot Springs, or a vacation home in Hill City, I’d love to talk with you.  Our expertise in the Black Hills or Rapid City markets will ensure you a stress-free experience. Contact me, Jim Peterson, at (605) 574-4444 or email me to discuss how I can help you with all your real estate needs. My office is in the heart of Hill City and as a tourist spot, restrooms are hard to find – mine are always open for your convenience!