Development

Downtown Sioux Falls organization wants to increase the bid tax

Thank goodness we have a new media source in Sioux Falls covering City Hall, otherwise I would not have had any idea DTSF was planning this;

Downtown Sioux Falls, Inc. (DTSF) this month will ask the Sioux Falls City Council to get behind a proposal to get rid of a decades-old cap on the amount of revenue it can collect on parcels within the boundaries of what’s known as the Main Street Business Improvement District (BID). 

However, not everyone is on board. 

Duff Robinson, owner of a pair of properties in the northern end of downtown, said he’s not opposed to lifting the cap. But he said DTSF could capture additional revenues with a more modest change to the special assessment.

Rather than leaving the base rate of the special assessment at $1.50 per $1,000 of valuation for downtown buildings and adding a 50-cent tax on valuation beyond the $1 million value, Robinson said DTSF could capture additional dollars by lowering the base rate and relying on the overall valuation increases assessed on downtown properties by the county equalization office and a reduced base rate for the BID.

“With an 18 percent increase in valuations, they’re going to get an increase anyway even if they don’t approve this,” Robinson said, referring to average assessment increases placed on downtown properties in 2021. “I’ve come to terms with removing the cap, but I just think they should flatten it out.”

Here’s a better idea, STOP HANDING OUT $50 MILLION DOLLAR TIFS FOR PARKING RAMPS DOWNTOWN.

Isn’t it ironic that DTSF is the first to hit the podium at Carnegie talking about all the TIFilicious benefits of Tax Increment Financing then turns around and asks for a tax increase to fund its organization. Make the organization DTSF and its employees a division of the city and fund it thru the general fund and parking fund.

When disgruntled, angry developers and bondsters look me straight in the face and tell me I am lying when I point out TIFs only raise taxes on the rest of us I gladly point to this proposed increase which is a prime example of how we give massive tax cuts to very top developments downtown then turn around and increase taxes on everyone else.

Duff is correct, the increase in valuations on properties over $1 million could cover the spread, if only they were paying 100% of property taxes on day one instead of 20 years down the road.

Just further proof that TIFs don’t spur true economic development just higher taxes for the rest of us.

Downtown Sioux Falls Crane Collapse accident(?)

As reported after the incident, the developer claimed that it wasn’t an accident. This is the definition of the word;

an unfortunate incident that happens unexpectedly and unintentionally, typically resulting in damage or injury.

Seems the canary is singing a different tune today;

Following a 200-foot crane collapse at The Steel District in downtown Sioux Falls, the project is back on track, according to Lloyd Companies. 

The front counterweight separated from the crane and we had the crane tipped over, fortunately, that’s all that really came of it. (There was) very little damage to any precast,” Lloyd Company’s Chief Operating Officer Jake Quasney said. “As you can see now, the building is moving right along.”

As I mentioned before OSHA doesn’t show up to a work site to investigate NOTHING or to be CAUTIONARY. On top of that one of OSHA’s main duties is inspecting cranes before they can be used on a work site;

Companies, supervisors, and workers may not be fully aware of the hazards of operating cranes.  As a result, they may not have implemented proper policies and procedures to minimize risks.  One mechanism to safely evaluate and prepare for risks is through the use of a Job Safety Analysis (“JSA”) or Risk Assessment, which is standard in the industry.  When this does not occur, it can result in catastrophic personal injury or death.  In a JSA, each step of the job is examined to identify potential hazards and to recommend the safest way to perform the work in order to minimize those risks.  According to OSHA:

A job hazard analysis is a technique that focuses on job tasks as a way to identify hazards before they occur. It focuses on the relationship between the worker, the task, the tools, and the work environment. Ideally, after you identify uncontrolled hazards, you will take steps to eliminate or reduce them to an acceptable risk level.

Folks, this appears to be an accident caused by mechanical failure. I await the results of the OSHA report.

UPDATE II: Will OSHA investigate the Crane Collapse in Sioux Falls?

UPDATE II: Looks like it is lot easier to tip a crane than to turn it back over.

The developer really needs a communications person reviewing these statements before releasing them;

“We know what happened with the equipment, and it was not anything to do with our building,” said Jake Quasney, chief operating officer of developer and general contractor Lloyd Cos. “We had a failure when it came to that piece of equipment.”

And why would it have anything to do with the structure itself? Am I missing something here?

“OSHA came in even though it wasn’t a workplace accident but out of an abundance of caution,” Quasney said.

So was it a morning donut break gone awry? Using caution is what you are supposed to do BEFORE using the crane, not after the fact. OSHA is investigating because it was AN ACCIDENT. Good thing the crane wasn’t lifting BS, could have been a lot worse,

UPDATE: A reliable source told me this afternoon that OSHA is investigating the crane collapse.

I first want to say I am grateful no one was injured or killed today at the Sioux Steel project crane collapse.

But if you do a little digging, you will see this happens across the United States.

No one was injured in the incident and Lloyd Cos. said it is continuing to investigate the incident alongside local authorities.

I rode my bike by tonight and the crane was in the same position it was this morning. This of course could mean that OSHA will be on site to investigate. I hope so. This is NOT the duty of the local FD or PD, this is a work safety issue that needs to be thoroughly investigated by the FEDS.

As a person who worked construction as a teen and have had many interactions with OSHA we cannot depend on city officials to make a judgement of what happened. There could be a thousand different reasons, but most likely the crane was NOT set up properly or put on ground that was NOT stable. There also could have been mechanical failures. At this point speculation is useless until it is fully investigated.

Homeless advocates email council to vote against Task Force

While I support the task force to combat homelessness, I do agree with a couple of aspects from the people who emailed the city council to oppose it. The data and research has been done for several years, you just need to act and I think the TF should consist of stakeholders in the neighborhood, not friends of the mayor and council. Michelle makes some good points about the opportunity to act over the years. Mayor TenHaken promised in his 1st campaign he would make it a priority, the problem has only gotten worse. It will be an interesting debate tonight.

The first email is from former city councilor Michelle Erpenbach;

Good afternoon, City Council members.

Thank you for your service, and for taking a few minutes to review my reasons for asking you to vote no tomorrow on item 76 — against yet another Homeless Task Force. I would be there in person Tuesday, but I will be working in a neighborhood where Thrive’s Kid Link initiative is supporting programming that seeks to help prevent homelessness among children in our schools.

Homelessness is a complex topic that does not have a single silver-bullet solution. It takes many individuals and organizations with like minds and missions, working collaboratively! Your proposed new task force would splinter existing efforts while ignoring work that has been done recently — and continues to be done – by city staff, Helpline and other local non-profits, members of the Thrive Housing Action Team, and by the city/county Accessible Housing Advisory Board.

It’s time to stop studying and start doing, friends. I’m happy to schedule time to help you catch up with this important topic. In the meantime, please review these links and my comments:

  1. Thrive Housing Action Team (including city, county, and federal staff!) created a Housing Retention Specialist in 2021. Pilot program at East River Legal Services has successfully prevented eviction for 9 families and their children in just a year of operation. The real need? City partnership to take this from pilot to sustainability. Read more: https://siouxfallsthrive.org/children-families-secure-housing/. These conversations are already in the works.
  2. The Accessible Housing Advisory Board, city staff Amos Abu, and a variety of housing stakeholders including Helpline Center and Thrive are working on a Housing Navigation Portal that will help connect tenants with potential housing that meets their existing needs and budget. The real need? Council support and funding to help make the portal a reality.
  3. Former city housing staff (Chellee Unruh) met with clients of the St. Francis House and others to learn more about specific needs from that unique community. The real need? I would recommend reviewing this existing data, so you get a better understanding of this topic from the people living it every day.
  4. Thrive Housing Action Team (again, including city, county, and federal staff) created the OneRoof project that is providing wraparound services for those families who are most difficult to house. This is no longer a pilot and is thriving inside The Community Outreach. Read more: https://siouxfallsthrive.org/oneroof-evaluation/The real need? City support for the unmet needs that some of these folks continue to have.
  5. City/county project Just Home is tackling homelessness for those people impacted by the justice system. The real need? Council members to become well-versed in this important project and ready to support proposals that will come your way within months.
  6. Key non-profits are providing services for our unhoused neighbors. The real need? City council members to acknowledge the important work of St. Francis House, Bishop Dudley and UGM, and encourage them to work together in a stronger spirit of collaboration.
  7. Finally, the biggest need is for more local money without state/federal strings attached for building housing that is affordable to the poorest of our neighbors. Those in the 30% of AMI range. This comes in the form of a Housing Trust Fund. Even Rapid City has an HTF now and it is fully funded while the city of Sioux Falls didn’t grasp the idea when it was proposed 10 years ago. Thrive’s Housing Action Team is taking the challenge and will have a presentation for you in the coming months.

Again, please don’t splinter ongoing work and collaborations. Please encourage the city to instead join these organizations in building a better partnership and collective impact.

Stop studying and start doing.

Michelle Erpenbach

President

Sioux Falls Thrive

The second email is from Anny Libengood from Minnehaha County Human Services;

Hi, I am a social worker and was a front line worker at Human Services for 18 years. Most recently I was the Housing Navigator. During this time, I became closely and extensively involved in the lives of many vulnerable people in addition to learning the inner workings of community resources. 

The first thing elected leaders need to do is educate themselves on what work and research has already been done. They need to know what programs are out there, have been out there, and what programs need to shift and what programs need to stop duplicating services/resources. About 15 years ago, we had a 10 year plan to end homelessness as did many communities. We also had the Homeless Advisory Board that did extensive work and research. Did we implement anything? No. Fast forward 15 years and we now have TWO Augustana research studies telling us what the community needs to do. The research was extensive and included perspectives of front line staff and those experiencing homelessness. What have we done with these studies? Checked the box that we did them, I guess. “We” just keep creating groups because “we” can’t figure out what to do. (Thrive, Forward SF, Empower, AHAB, Sioux Empire Leadership Council, etc. etc.) and then none of them talk to each other. Stop studying the problem over and over again. It’s time to start the work. 

A couple of reasons the Bishop Dudley police calls have tripled is because the former director was a former police officer. It was easy for the calls to not be “logged”- and yes this is true. He told me this himself when I was providing case management to the homeless families staying there. He didn’t want the neighborhood or powers above him to see the calls and start complaining. Also, his no trespass list was longer than my arm. The current director has to go through regular police call protocols and she is trying to respect the mission of the BDHH which is Open Doors, Open Arms.

Please reconsider this Task Force and Study idea. I am willing to help educate. All you have to do is ask.

Thank you. I plan to be at the council meeting tomorrow.

UPDATE: Sioux Falls Developers want to use trickle down economics to build affordable housing

It didn’t work when Reagan proposed it, and it won’t work now. IRAB (INFRASTRUCTURE REVIEW ADVISORY BOARD) is proposing waving platting fees for new housing developments;

INFRASTRUCTURE REVIEW ADVISORY BOARD (IRAB) MEETING IS SCHEDULED FOR JUNE 1, 2022, AT 8:00 A.M. LOCATED AT THE DOWNTOWN LIBRARY, 200 N DAKOTA AVE, SIOUX FALLS, SD

AGENDA:

1.     Approve June 1, 2022 Agenda

2.     Approve May 4, 2022 Meeting Minutes

3.     Light and Power Update – Developer Procured Street Light Materials

4.     Proposed Revisions to 96.220 – Arterial Street Platting Fee

5.     Proposed Revisions to 51.065 – Water Distribution Platting Fee

6.     Proposed Revisions to 51.118 – Recovery of Cost of Storm Water Drainage System

It seems developers want tax breaks for building new homes, and they will supposedly pass those savings on to homeowners. That will NEVER happen. The demand for housing is at such a high level right now developers have ZERO reason to pass on those savings, they will likely pocket the savings.

DOCS: Agenda, Distribution, Drainage, Streets, Minutes of last meeting.

UPDATE: This story lays out why housing is so expensive. WAGES!