2020

We would accrue more property taxes if Sioux Steel project doesn’t receive TIF

We have heard the argument already, if we give the $21.5 million dollar TIF the property will have a tax worth of $1.6 million a year. But folks those tax payments don’t occur until 20 years from now as Joe Sneve’s story pointed out.

So if we give them the TIF, for the next 20 years they will be paying $56K a year. So in 20 years they will be paying a total of $1.12 million in taxes for a $185 million dollar facility. Hardly anything.

BUT, if we don’t give them the TIF, the value of the project would be approximately $163.5 million (flat parking lot) with an annual tax bill that they must pay on day one of about $1.4 million a year with no rebate, a value of $28 million in collected taxes in 20 years.

Common sense would tell us that getting $28 million over the next 20 years in property taxes as opposed to $1.12 is a better deal for city coffers.

Also look at the economic impact argument. They said they would have to forgo the parking ramp if they don’t get the TIF. How many jobs does a parking ramp provide? ZERO. Whether they build flat parking or a ramp, there really isn’t a economic impact either way.

Not only could this project still be successful without the TIF, the property tax revenue is over 20X more if we forgo the TIF. On top of that, the owner and developer of this project could sell at the end of TIF and get all the benefits of the tax rebate without ever paying a 100% of the tax bill. It is a windfall for them, and little else.

Not sure who is doing the math at the Planning Department, but this TIF is anything but an economic impact. They will be voting on the first hurdle tonight at the 6 PM Planning meeting.

Wall Lake Bike Trail idea has very little buy-in from residents

When this was first proposed to the Minnehaha County Commission, it sounded like a great idea. But, as we all know, great ideas die really fast when you don’t get buy-in from the residents. I was actually pretty surprised when I watched the MCC meeting on Tuesday that the group proposing this trail never got buy-in from the residents of Wall Lake.

Huge Fail!

Let this be a lesson that when you have a good idea (I still think it is) that you do your research and get everyone on board, or at least a majority on board.

Let’s face it, most people don’t like change, but I think this has more to do with privacy. People live on Wall Lake for a reason, they like the solitude, that’s a given. I wish this would have been more thought out and planned so the residents could still get their privacy while having a great quality of life project around the lake.

Sioux Falls City Councilor Stehly was on the attack yesterday, and it was the ‘Good Fight’

First, the obvious – The First Amendment DOES not protect free speech when comes to using tax dollars to promote a political candidate. This doesn’t even take a Constitutional scholar to figure it out. This is why Trump was impeached in Congress. He was withholding tax dollars to help his presidential candidacy.

While I understand a local entrepreneur casually mentioning a city council candidate he is helping out in an article funded by two institutions that receive some tax funding (state and city) may seem not as grand as what our president did, it is still worth talking about and correcting.

I was extremely irritated that some elected officials on the council chose to defend this obvious violation of free speech rights and state law.

Just because you violate campaign rules ‘a little bit’ doesn’t make it alright. That essentially was their argument.

While what councilors Brekke, Stehly and citizen Bruce Danielson said may have been uncomfortable, it was very appropriate to say and the right time to say it, in a public meeting. No one was advocating to arrest anyone, no one was going to throw some one in jail or fine them. This was simply an effort to ‘nip it in the butt’ before it became common place. People make mistakes, we get it.

Over the past day, I have told several people that Matt Paulson (Alex Jensen’s quasi-campaign manager, treasurer and fundraiser) did nothing wrong, neither did Siouxfalls.business. Stehly wasn’t attacking them, she was simply telling the Sioux Falls Development Foundation (and I guess DSU) that moving forward they should not promote certain candidates because they receive public money.

This isn’t an attack, it’s a fact, and many journalists and citizens agree.

We know what’s going on here, and we have been seeing this across the state for several years. The Republican establishment (a very small elitist group) has controlled our State House for almost 50 years, and they are trying to take control of our County Commissions, State’s Attorney offices and other non-partisan government entities like city councils and school boards. I want to clarify, I have voted for ‘good’ Republicans (like Stehly, Brekke, Staggers and Jamison) on these non-partisan bodies, because they have integrity and want to keep party affiliation out of politics. The group I am referring to is a very small group of ‘know it all’ elitist, establishment Republicans that want to control their business interests, and they see an opportunity here, though their actions look more like ‘amateur hour’.

I have said it already, they are using candidates like Jensen for city council, Cynthia Mickelson for school board and State’s Attorney candidates like Haggar and Bengford to stack the deck and implement their pro-corporate welfare of government, these are NOT Republicans in the sense of tradition, these are elitist greed mongers that only pray to one God; money. Don’t believe me? Why else would the South Dakota GOP Chair, a Jewish Iowa businessman lobby for an Islamic theocratic government? Because party doesn’t matter, only money and greed.

So yes, Stehly was on the attack yesterday. She was attacking greed, corruption, partisanship, lack of integrity and lack of open government. And not just ‘a little bit’ but a lot.

UPDATE: Just How does the Sioux Falls Development Foundation use our money?

Just for clarification on the video below, it may have been Rick Kiley who actually said ‘More Fabrication’ and NOT Neitzert, but we are uncertain.

UPDATE: Stehly questioned the head of the Development Foundation today at the informational meeting about this. It was a good discussion. I think Brekke and Danielson explained the reason why this isn’t protected speech;

Councilor Janet Brekke as well as civic watchdog Bruce Danielson countered, though, saying because the Sioux Falls Development Foundation receives public funds, it is held to a higher standard when it comes to political speech.

State Law on this is also very clear;

Universal Citation: SD Codified L § 12-27-20

12-27-20. Expenditure of public funds to influence election outcome prohibited. The state, an agency of the state, and the governing body of a county, municipality, or other political subdivision of the state may not expend or permit the expenditure of public funds for the purpose of influencing the nomination or election of any candidate, or for the petitioning of a ballot question on the ballot or the adoption or defeat of any ballot question. This section may not be construed to limit the freedom of speech of any officer or employee of the state or such political subdivisions in his or her personal capacity. This section does not prohibit the state, its agencies, or the governing body of any political subdivision of the state from presenting factual information solely for the purpose of educating the voters on a ballot question.

Source: SL 2007, ch 80, § 20.

I was happy to hear the head of the Development Foundation say that the board will look into this.

The taxpayers of Sioux Falls have donated millions of tax dollars to the SFDF for supposed workforce development. So how do they spend their money? They buy an article on Siouxfalls.business about the treasurer of Alex Jensen’s council campaign, Matt Paulson. Can you say possible conflict of interest?

This paid piece is sponsored by the Sioux Falls Development Foundation.

While I don’t take issue with them paying for an article about Paulson, he has many achievements, I take issue with an organization who receives tax dollars from us (even if it is coming out of a different ‘pool’) on a person who is currently engaged with at least one city council race (maybe two).

The SFDF should have steered clear of this possible conflict. I do think they are a decent organization that does some good in our community, but when you are receiving tax dollars and other special incentives from the city and citizens, this just looks bad.

It is extremely unethical for public employees to recommend approval of a TIF

As I have complained about in the past, it rubs me the wrong way that the Sioux Falls Planning staff recommends approval or denial of items on their agenda. It is the job of the Planning Commission to study the merits of a proposal from the information staff provides, it is NOT the job of public employees to recommend approval. Layout the plan, show the compatibility than let the Planning Commission decide based on the information.

While zoning and development in general is one thing, a massive 20 year, multi-million dollar tax rebate is totally different.

The Planning Commission can deny this proposal simply based on the fact that we don’t really know if the TIF will be beneficial or not. Denying the TIF would simply mean the PRIVATE developer would have to go back to the drawing board, the citizen taxpayers would not be harmed one iota if this was denied. In fact I would go step further and say that approving this TIF would be harmful to the 100% property tax paying citizen of our city because we would have to pay more in taxes to prop up this private venture.

I still think the city council needs to pass an ordinance forbidding planning staff or any public employee (that is hired, not elected) from recommending approval of endeavors that benefit private business. It’s unethical, if not highly suspect.