Billion dollar permit record in Sioux Falls happened by pouring gasoline on a fire and massive property tax increases
As I have been saying for years, we are breaking these records by ignoring affordable housing, handing out millions in tax rebates and TIFs and including publicly funded projects while raising property taxes a record amount.
If you read the article you see that two large chunks of permitting were projects that received millions in TIF money and another large chunk was public projects like the water treatment plant and the public safety center.
I have often argued that permits should be separated into PUBLIC PROJECTS and COMMERCIAL PROJECTS.
Private Commercial projects build economic growth, but when they are propped up by massive tax rebates it’s just putting gasoline on the fire. As for Public Projects, those are funded by the taxpayers as investments in infrastructure and should NOT be considered towards the permitting financials as part of economic growth. Sure, we have to build these facilities because of growth, but it also means our taxes are going up to do so while handing out tax breaks to the very developers fueling the uncontrollable growth. It is counter productive and simply growth for growth sakes instead measured, calculated slower growth.
I would love to see the city stop giving TIFs for Korean owned egg roll factories and parking ramps and start applying them to neighborhoods. Or better yet abolish TIFs all together and simply invest tax dollars in neighborhoods by encouraging the construction of more affordable housing through other tax incentives. Instead recently the city code enforcers bombarded neighborhoods in the central district with pink spray paint and violation notices for city owned sidewalks. What a great way to prop up our central neighborhoods by fining citizens to fix city owned property (more on this story in the near future).
Recently CountCilor Alex ‘Expert Economist’ Jensen suggested on CityLink that the way to solve our workforce and housing issues is by inviting people to work in Sioux Falls but to live in towns around us like Tea, Hartford, Dell Rapids, etc. Yeah, that’s an awesome way to build a solid tax base 🙁 and this guy works at a bank!
I would also like to see separating commercial and public permits. They don’t represent the same thing and shouldn’t be held up together. It’s like saying you are the championship BBQ’r in your own backyard and buying yourself a trophy. The city saying they broke records by including infrastructure projects they approved and we are paying for through higher taxes is putting the thumb on the scale.
Don’t get me wrong, economic development is good, but let’s be honest about the numbers and where the money is coming from (mostly taxpayers) and let’s start investing in neighborhoods, local businesses and people – then you will see true economic development we can be proud of because you can’t live in a parking ramp, police firing range or an egg roll.