As I suspected yesterday, an announcement was made that a settlement was reached in the Bunker Ramp debacle.
But was it a good settlement for the taxpayers? Hardly.
Fortunately the only good thing to come from today’s announcement is that it is finally over and it took a mayor almost his entire first term to write a check from our bank account to a failed developer who defrauded us.
The developer(s) didn’t do it on their own, they had the help of two mayors and several former and current city councilors who have yet to apologize to us for the terrible decision they made based on fraudulent information and even obvious information that investing with this group was a bad idea.
I remember sitting in the council chambers listening to citizen (item #44) after citizen come to the podium and plead with the city council to not do this. But even after that initial approval, a second mayor had an opportunity to undue the bad decision of the last mayor and councilors.
He chose to steam ahead because the banksters and bondsters involved needed to make their buck from the bonds. We could have refused the bond and paid a fine and moved on.
Councilors Starr and Stehly tried to do just that and were scoffed at. I told Starr today if any taxpayer asks you about why this sloppy settlement was done this way all he has to say is, “I didn’t vote for it. Go talk to the councilors that did.”
But what makes this announcement even more egregious is listening to what the city attorney and mayor said about the settlement;
“For that reason, the settlement agreement includes reimbursement of $500,000 from the city of Sioux Falls to VRG for a portion of the hard costs it’s leaving on-site, and reimbursement of the $150,000 developer fee previously paid to the city,” TenHaken said.
What about the additional costs to taxpayers to seal off empty floors with cinder block since the developer never finished the project?
Also our litigations costs of $300K.
And why are we paying those costs and the cost of the settlement out of, I am assuming, the general fund? Shouldn’t it come out of the Parking Enterprise funds?
Like I said, glad this is finally kind of over with (we still need to find someone to complete it) but the way this was handled says tons and tons about how the majority of the city council and this mayor has ran this city the past four years . . . on perpetual cruise control and little else.