Leading the way
Lead sees a resurgence in sales tax revenue and looks forward to more new growth.
For more than 100 years, Lead was the economic engine in the Northern Black Hills. When the Homestake Mine closed, that all changed. Businesses closed and families moved away. As the years passed, hope for a recovery began to fade.
But today, the city is seeing a resurgence. With the birth of the Sanford Underground Research Facility, a focus on tourism and investment, and the new Sanford Lab Homestake Visitor Center (SLHVC), Lead has seen consistent growth over the past 10 years.
“Lead has much to offer,” said David Vardiman, a city commissioner and geotechnical engineer at Sanford Lab. “It’s a gateway to all northern hills attractions and outdoor recreation opportunities and one of the main portals for tourist traffic. The new visitor center makes a great starting point and helps make the gateway more attractive.”
Mike Stahl, city administrator for Lead, agrees. “The visitor centers in both Lead and Deadwood were great investments for our communities, for the people and for the groups who made them happen. Both are really pulling people into the area.
“Things are looking up,” Stahl said. “July saw the highest monthly sales tax receipts in over 10 years. It was a great month.”
Most communities in the region receive about 80 percent of their revenues from sales tax, with the remaining coming from property taxes, Vardiman said. Lead is the reverse, with just 30 percent of revenues coming from sales tax and the remainder primarily from property taxes.
“That’s a burden on property owners,” Vardiman. “The more revenue we can get from sales, the lower we can get the mill levy, which would allow us to become more competitive and attractive to home owners and investors.”
Vardiman attributes the increase in sales tax, at least in part, to the SLHVC, which opened in June 2015 and saw an increase of 32 percent in gross sales over this time last year.
“Certainly, other businesses make up the majority of the sales tax revenue and, more importantly, provide a broad spectrum of services and retail for the community and seasonal tourist trade,” Vardiman said.
“But the Visitor Center is a centerpiece—partly because of its location, partly because of its newness and intrigue. It tells the story of our past, but it’s also a living demonstration of things to come. That opens a whole different facet for tourists coming through Lead. And the community can benefit from this.”
For more information about Lead: https://leadmethere.org