The deputy mayor is coming out of hiding at Tuesday’s informational;

Downtown Ramp – Next Steps by Erica Beck, Chief of Staff

There are NO attached documents, so this mean several things;

• They found an interested party for developing the property

• They are looking for interested parties

• They want to consult the council on how to move forward

I have suspected for a while that there are several developers in the hopper waiting to pounce on the project and all they needed the city to do is handle the legal part.

Since the city doesn’t do RFPs anymore, the administration and planning can pick anyone they want to develop the property with ZERO input from the council and the public. I think they already have an interested party and this presentation is just smoke and mirrors to make it look like they are going thru a transparent process.

With the economy the way it is, I guarantee who ever wants the ramp is going to be asking for all kinds of tax incentives from the city to develop this property.

I also don’t have much confidence in this administration or council to do the right thing since they have been doing the wrong thing for so long when it comes to this disaster of a project. Two councils, two mayors, and a payout to the scammers says all we need to know about how the project will be handled moving forward.

Maybe when it is all said and done we will finally get a public apology from the public officials for this major f’up . . . followed by pigs flying from my ass.

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.


I was a little puzzled by this story they posted yesterday;



The I-Team has learned that the city of Sioux Falls has hired an outside attorney to represent the city in a lawsuit against the Village River Group.



I am assuming the I-Team means investigative team. Besides the fact that I posted about this on January 18, it wasn’t some secret since it was on the public agenda at the January 18 meeting in the consent agenda in which Councilor Starr pulled and asked the city finance director and city attorney where the money was coming from.

They both kind of fibbed a bit (the real story here).

Still wondering why it took supposed investigative journalists 6 weeks to figure something out that was posted on a public agenda?

We will start with the regular council meeting last night. It was a very short meeting with virtually zero questions or discussions. The only fireworks were the expected obstruction from Lead City Attorney Stacy Kooistra, who likes to make things up when he doesn’t want to answer questions. I call it (I didn’t sign up for this) lying. It’s like he doesn’t want to lie, but he has to because the mayor made him accept an appointment because he was childhood friends with Mrs. Poops, or something like that.

Councilor Starr pulled the legal agreement for the Bunker Ramp from the consent agenda and asked Kooistra where the $150K is coming from? Stacy said it was coming from the project budget. Pat asked how much was remaining in the budget, and Stacy couldn’t answer the question without input from finance (who were in the lobby at the time) but the $150K could be covered, than chastised Starr for not giving the question in advance (their normal excuse). Than Pat asked how do you know if there is enough in the budget to cover the $150K if you don’t know how much the total budget is? Stacy then changes gears and says he can’t say publicly out of the best interest of the city and pending litigation, into which Starr replies, what about the best interest of the public and citizens and is the budget really that big of a secret?

It’s not.

The irony is that all of the information is publicly available because it is in the budget book from last year. I guess the fund started at around $1.2 million and now because of all the counseling and lawyering we are whittled down to around $800K and some change. The rumor from the developer is that he was made an offer and declined. Some officials on both sides think this will go to trial, which I welcome. I could care less of the outcome, it will just be nice to hear how this all fell apart in a court of law and the public will truly see how poorly negotiated this was on both sides.

During the last agenda item at the meeting, the finance director (you know the guy that wasn’t supposedly there earlier) presented the delinquent accounts for the year. Starr asked him what the total was since it wasn’t on their presentation. Shawn said he didn’t add it up, then Pat says, “Do you know how much is in the Bunker Ramp budget?” You can guess the answer.

HISTORICAL LED LIGHTING?

During the city council information meeting they discussed all the splendid savings we are receiving for the Pavilion roof repairs. We are actually saving quite a bit of money because we are using $6 million of Covid relief funds we budgeted last year. The consultants said that the roof would cost $3.6 million without the spindles and $4.2 million with them and a little extra for LED lighting. What I found humorous is that they want the spindles to keep the historic look of the building, but they want to add LED backlighting? Is that historic? NOT. It seems like since the kitty is full of Federal money we should just go whole hog, I agree, but we should spend the money on something else, like affordable housing opportunities. I personally don’t think we need the spindles or the LED lighting, fix the cornice cap and more importantly fix the roof and move on already.

Maybe I should put LED backlighting on my roof vents so people notice their architectural beauty ðŸ˜Š

Either they have or it’s very close. In the consent agenda (Item #7 – Sub Item #12);

City Attorney, Engagement Agreement for Legal Services for Village on the River, Fuller, Williamson, Nelson & Preheim, LLP., $150,000.00

I do have a few concerns with this 1) It seems like a very large dollar amount for legal services to just draw up a settlement agreement and 2) I’m not sure the city has ever used this local law firm before.

So what is this? I have a couple of guesses;

• This was the developer’s law firm and they are getting a cut of the settlement OR the city has agreed to pay the developer’s legal fees as part of the settlement?

It will be interesting to see how much of this plays out in the public and media. Will we ever know what the settlement amount is to the developer? Will there be some kind of announcement? NOT HOLDING MY BREATH.