2019

UPDATE: I told you so! Downtown Sioux Falls Parking Ramp mixed use – BAD IDEA!

UPDATE: So now everyone is back peddling like crazy. Village on the River went over to the ‘Safe Room’ to tell their side of the story to a content marketing website. I’m actually surprised they didn’t take out some google ads. But even if the deal is to be saved, it’s NOT going to turn out well for the taxpayers;

“Adjustments to the design and size of the hotel/retail structure have been analyzed by the project team to ensure that it is the best possible project,” Village River Group said in a statement.

“Once approved by the city, the group will finalize the design details and related construction, architecture and bond requirements and move forward with construction.”

Here lies the problem, the design was ALREADY approved, heck, the most important part, the parking structure and it’s foundation is near completion. Shouldn’t these design changes have taken place before ground was even broken? It would be like building a one-story house and telling your builder after he finishes the roof that you want a second floor. But besides over building the foundation (which taxpayers put in around $6 million for) they want an even bigger incentive;

Village River Group has looked at multiple funding options to offset its private investment, it said. That included use of city tax increment financing and new market tax credits, but those incentives “did not materialize,” it said.

So now that is the fault of the city and taxpayers who upheld their part of the deal?

The project is planned to be funded privately, and “the city has offered the project BID tax rebate incentives and a real estate tax reduction incentive,” Village River Group said.

How is this any different then a TIF? It isn’t, it’s just packaged differently. More HUGE tax breaks and developer welfare for a project that now is smaller? You have got to be F’ing kidding me!

According to its development agreement with the city, a second development fee payment and performance bond are due to the city when phase one of the private improvements begin, the developers said.

Which was pretty much ‘yesterday’ in lack of a better term. The developer broke a promise with the taxpayers of Sioux Falls and it is time to shut down the building site and find a NEW partner and sue the pants of the one that screwed us over.

Here is a link to several blog posts about this topic; LINK.

From the beginning, the warning signs were there;

Bad location

Not enough spaces

Expensive spaces (to offset foundation costs)

Using 2nd Penny as collateral

Investing with a developer (still) being investigated by the Feds for the Copper Lounge collapse

And now we have a whole new set of problems;

However, the city says a start-date for construction on the private portion of the project hasn’t been determined. That’s because the city has yet to receive proof of a performance bond and a $350,000 fee spelled out in the development agreement.

City officials repeatedly did not answer whether the developers are in default of their contract on the project.

I find it ironic, that a former city councilor who supported this project would be chastising councilor Stehly for being negative when she was virtually a one-person army fighting this project. The height of negativity would be supporting this ignoramus project.

On top of all this, it seems the city council will be appropriating another $50K in legal fees for the project Tuesday night in the contract approvals.

I often talk about ‘common sense’ government. Nothing about this project made any sense, and at the end of the day the citizens may be holding the bag. I think any current city councilor that voted for this project should resign in shame. It’s one thing to make a bad decision (like voting against a movie theater beer license or approving ax throwing in bars) but this decision by a majority of councilors and BOTH mayors to move forward is beyond a ‘bad decision’ – it’s gross negligence and they should be removed from office.

 

 

UPDATE: Argus Leader ED board holds back important details in their attack on councilor Stehly

It’s often easy to attack someone when you leave out the important parts.

UPDATE: After talking to a few folks about this editorial tonight, I think a better approach would have been to write the article about the dysfunction of the council as a whole. They all have their faults and strengths. Not one single councilor is to blame for the breakdown. While some are louder than others, sometimes inaction can be just as harmful as too much of it.

Ever since Mr. Myers took over the helm at the AL the place has been on a steady decline and it culminates in their attack on a city councilor. It’s funny how he has so many choice words for a person with a high level of integrity, like Stehly, but doesn’t have the courage to call out one of his key staffers or even fire them after they majorly screwed the pooch. And better yet, it didn’t even make the pages of his fine paper, worthy of a front page story, he just put the person back on their beat like nothing happened. Of course this person never committed a heinous crime like calling someone on a Saturday before Easter . . . the SHAME! The Shame!

I first want to apologize to city councilor Theresa Stehly, I feel bad she has to take the full weight of this diatribe even though she has had support from other city councilors and most importantly citizens on these issues. I’ve known Theresa long enough to know that she just doesn’t wake up in the morning and decide to be on the wrong side of an issue. She listens to her constituents and even reaches out to those with a differing opinion. I can’t say that about the rest of them. She’s an AT-LARGE elected representative of the citizens FIRST! The news media, developers and any other whiny ass, give me, give me, give me organizations in this town should be at the back of the line. The lion’s share of taxes and fees that fund this government come from the citizenry as a whole. We support this community through Federal income taxes, sales taxes, property taxes and ever increasing fees. She represents us more then any city councilor has since the council form of government was formed under the Home Rule Charter.

What makes the attack even more suspicious is it comes out just hours after the paper put up a story about the failing parking ramp. Another story Cameraman Bruce had to give the paper on a silver platter, just like the EC siding and the EC secret settlement. All along the way, it has taken us ‘unqualified’ journalists to light a fire under these paid ‘qualified’ journalists. I was actually laughing when recently Mr. Myers wrote about the SNAP suit and mentioned how hard the paper went after the EC secret settlement. He failed to mention that it took Bruce and I weeks to convince them that the settlement stunk, and they fought us along the way, yet now Myers is playing ‘We are the Champions’ on the headphones in his brain.

Why do I bring up the Parking Ramp? While councilor Starr did support Stehly on trying to stop the project, Theresa was the only one vocal enough to say this was a bad deal, many citizens agreed. So instead of praising Theresa for standing against this colossal f’k up, they write an editorial lambasting her about not voting for an unqualified candidate for the Internal Auditor.

But let’s review all the things Mr. Myers and his prestigious ED board left out to make a more compelling argument against Stehly;

Two days after the call, councilors Neitzert, Christine Erickson, Marshall Selberg and Rick Kiley issued a press release condemning Stehly’s automated call and rebutting her claims that the months-long hiring process was being “ramrodded” through.

It may have been a ‘months long’ hiring process (which it wasn’t), but magically after only 3 weeks of online ads and 15 unqualified applicants they decided to pick Mrs. Nelson instead going back to the drawing board. They also were so proud of the selection they posted it on the agenda without a BIO or background of Mrs. Nelson 4 days before a special council meeting over a holiday weekend. But, you know, that’s not ramrodding . . . WTF? It is also interesting that there has never been a stated reason why the last auditor left so quickly after being appointed and whether the administration is going to replace Mrs. Nelson. The three councilors had a very good reason to be skiddish.

Stehly accused Neitzert of calling her a liar.

Listen to the interview for yourself, Neitzert does call her a liar and being slanderous, an actual violation of the city council’s ethics code, but notice how the ED board twists it. Not only was it an ethics violation, it was also untrue. Nelson’s husband was one of the players behind the VERY controversial parking ramp (as we are finding out) Shana has NO experience as an internal auditor or supervisor and has several conflicts. Please, identify these ‘LIES’ for us. NO one in the media or on the majority of the council has been able to prove what Stehly was saying was a lie(s).

As pointed out in the editorial, the city council has been dysfunctional, and it started way before councilor Stehly came aboard, she has just shined a light on the dysfunction of the rubber stampers and the big wheels that fund their campaigns and it has them really pissed off, and now they apparently have the ear of the ED board.

I told Theresa to wear this as a badge of honor, it must have been a slow week at the paper to have to attack an individual like this. Apparently Bruce and I need to step up our game and give them more things to investigate.

I freaking knew it! 24/7 parking fees Downtown Sioux Falls

A couple of weeks ago I warned a couple of city councilors that this was coming down the pipeline;

Free parking at night and on weekends in downtown Sioux Falls could soon expire.

Once the pay stations were put in, and the phone apps I knew the city was moving in this direction. I have been putting up with this crap in larger cities like Minneapolis for years. It’s annoying. It reminds me of paying to take a crap in bus station.

I have often said that DTSF should have FREE parking in the ramps 24/7 and only meter Phillips Ave. during the day, this would encourage business DTSF, but they seem to think they know better;

Two years ago, downtown business owners heard from a consultant who changed their way of thinking.

“If you get parking turnover 12-15 per space a day each year that could be hundreds of thousands of dollars for retailers in terms of profit,” Downtown Sioux Falls president Joe Batcheller said.

But that turnover hasn’t been happening when its free to park.

“It is a bit of an issue, particularly in evenings and weekends, someone can come and park at 5 p.m. on Friday and leave their car there until Monday morning, and if that’s right in front of a business that hurts their bottom line,” Batcheller said.

BULLSH*T!

I can count the number of cars on one hand that do that. And so what?! Who pays to maintain those parking spots – I do, through the 2nd penny CIP.

If someone comes DT at night they most likely will go to several places before leaving, spending money. How long would they stay if they had to pay for parking? If I come downtown at night I will go to 4-5 places before leaving. Last Saturday Night I went to 8 places during Jazz Crawl. How is that any different then multiple people coming DT and only shopping at one place? It’s NOT. The problem with DTSF is that they don’t have any zoning that requires diversification of businesses. If you want more people coming DT and spending money, boot all the boutiques out that close at 7 PM and put in businesses that actually entertain folks late into the night. Maybe retailers DT are suffering because they are in the wrong location?! Yah think McFLY!?

I have argued over the past decade DTSF has turned into snob-ville, and if they do this, it will continue to just be a playground for those that can ‘afford’ it. It’s really becoming quite pathetic.

Sioux Falls Ethics Board Chair warns Councilor Neitzert about his FB joke

Tonight the city council was invited to a presentation and an after party for the Sioux Steel project. I know for sure that 3 city councilors did not attend the after party (you can guess who they are). Stehly asked an advisory opinion last week about accepting drinks and ‘HEAVY’ apps from the developer. The ethics commission couldn’t rule on the opinion because Stehly didn’t present evidence of the possible TIF request. Chairman Greg LaFollette was absent from the meeting, but in the past he has frowned on this kind of gift giving. Neitzert decided to make a joke about it earlier today and LaFollette warned him that it probably isn’t such a good idea. It will be interesting to see how many of the other 5 attended and chowed down on their ‘Heavy’ Tifilicious Snacks. Awaiting photos.

In other ‘Neitzert’ news, I guess he requested that all of the councilors sign a document of confidence in the new Internal Auditor that he would frame and present to Mrs. Nelson. He pretty much admitted that the document wasn’t an ‘official’ but would help in mending bridges. That bridge could have been solid if they would have hired someone with no conflicts.

Oh, and still no word if Shana will be replaced in the finance department . . .