The handouts are ending and the crying begins;
A city program that helps historic building owners spruce up downtown storefronts is the latest casualty of Sioux Falls’ sales tax slump.
Rich Brue had planned to used the city’s façade easement program to help pay for improvements to his property at 212-216 South Main Avenue.
Now that he’s ready to start a $2.8 million renovation project, he was disappointed to learn the program’s funding is zeroed out in Mayor Mike Huether’s 2018 budget.
“It’s not something promised, but it’s something that’s been available for renovation of these old historic buildings in downtown Sioux Falls,†Brue said.
Exactly, NOT PROMISED. Besides the fact that it is a handout from taxpayers to developers, one of the bigger arguments against the program is it only applied to downtown historic buildings and not other older structures in Sioux Falls.
But as we already know, developers can AFFORD to make these upgrades themselves;
Brue can’t delay his project in hopes of getting city dollars, so he’ll go without.
“I’ve got obligations to my tenants for timelines in which to finish it,†Brue said. “The façade easement is not going to make or break the project, but it would have helped soften the blow. Construction costs are not cheap.â€
If you can’t afford to redevelop a building you bought, maybe you should not have bought it? Why should taxpayers bail out your bad investment decisions?
I’m not totally against government ‘helping’ with these projects though. There are other ways to help besides a handout. Through community development they could get a low interest loan to help with the historical aspects of the building. When I got my community development loan it came with a low interest and after the loan was secured and work was finished the loan was sold to a bank who administered the repayment. We can still have a façade program, we just need to change the way it is paid for.
There are distinct signs the city is broke. Huether exceeded the credit card limit and he’s barely got minimums till the end of his term. There was so much foolish spending that bare essentials can’t happen. It’s time for a complete audit and plan for cutbacks and employee furloughs.
In addition to developing multiple DT properties (including leading the investment group for the DM&E building), Rich Brue is also a Sanford physician.
Seriously, why is he whining about the loss of a facade easement gift from the taxpayers!?
Anon, for the same reason Lloyd thinks he needs a $4 million dollar tax discount on a $44 million dollar development, because they have ALWAYS gotten these deals. They don’t give sh*t if the economy stinks or if the city can afford to fix the streets, as long as they get their perks first. Selfish, greedy, rotten scondrels.
The article was written from the standpoint of “the City program is discontinued in the 2018 budget because of budget restrictions.”
Later in the story it is revealed that there may well be funds for this program, remaining unused from the current budget and which might be carried forward to the 2018 budget year.
Even later, it is revealed that the real reason the Mr Brue’s project is not currently in consideration, is the fact that he failed to meet a deadline for filing an application. This failure to adhere to an administrative deadline is the real reason why this project is not under consideration.
BTW, did Mssrs Drake and Hultgren and others in Wallbanger Development receive facade funds for the Copper Lounge project ? And can they keep those funds for a facade which is no longer in existence ?