So a couple of months ago a developer insider told me that Jeff Scherschligt was looking to do Cherapa II on one of Warren Buffet’s biggest scams on Federal taxpayers in at least a couple of years, the RR Redevelopment project. Mayor Bowlcut & Bucktooth coined it as one of his greatest achievements of his administration. I guess moving Beluga Sturgeon Caviar from it’s original jar to a ziploc bag is considered an ‘achievement’. Who knew?
As we know, it has floundered and the city has been looking to pass off these thrift store 501 Levis onto any takers.
They found a buyer in Jeff.
This should be no surprise as Jeff has been looking to build his Buffalo Palace II for awhile now. He of course got a heckuva deal from the Munson administration with the River Greenway project and now the Golden Arches of Sioux Falls built right in front of his palace thanks to the generosity of rich donors and taxpayers. But with any ‘gift’ the receiver always asks for more.
While the planning department of the city is being quiet about the deal until Tuesday, Detroit Lewis has gotten some rumored details.
The original offer was HALF of the appraisal price.
Mind you, not sure how this land can be appraised anyway? We paid too much for it, and the railroads are still railroading thru the center of the town. But I did a little digging.
Undeveloped land in Downtown Sioux Falls goes for about $15 dollars a square foot. So if you do the math, that would mean Jeff offered about $7 a square foot (and asked for NO TIFs or tax rebates). The rumor is they met half way, so he probably is going to pay about $10 a square foot.
Personally, I could care less, just sell it already. But here is the other ‘Kicker’; Cherapa II is rumored to put in the deal an ‘option’ to buy the rest with a TIF option.
Of course, this is all slobber and gossip from my mouth at this point, and we will hear more details on Tuesday. But if you think for a second the developer is going to take it in the shorts while the taxpayers come out smelling like roses, you are mistaken, unless you think roses in Sioux Falls smell like renderings from a packing plant, then hey, we are doing just fine.