modify requirements to create a tax increment financing district.

SB 109 modifies South Dakota's rules for creating tax increment financing (TIF) districts, which are areas where increased property tax revenue from development is used to fund improvements. The bill requires that at least 50% of a district's area must be designated as "blighted" (meeting specific criteria like deteriorated structures or unsafe conditions) or serve economic development purposes. It also adds new consent requirements: counties need municipal approval to create districts within city limits, and municipalities need county approval for districts in unincorporated areas. The bill clarifies the definition of "blighted area" to include factors like substandard structures, inadequate infrastructure, or safety hazards. These changes directly affect local governments (municipalities and counties) seeking to establish TIF districts for redevelopment projects.