This is how we do ‘business’ in Sioux Falls

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The Argus Leader reported today that the RFP for the mixed use parking ramp downtown was awarded to a joint venture which includes Ramkota Companies and Bender Real Estate.

These companies are lead by Robert Thimjon and Michael Bender.

Both men have donated in the past to the mayor and his campaigns;

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Nothing nefarious here, it is perfectly legal in South Dakota to ‘pay to play’. A certain Ad Agency in Sioux Falls has been doing it for years with the state.

So it is NO surprise who got awarded the RFP. The bigger question here is if any city officials or family members are or will be investing in the project? A good question to ask at the presser tomorrow.

Mayor Huether in a Huff?

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I found this on Steve Hildebrand’s FB page;

I bet I’ve spoken to more than 100 people about this project – all who believe it’s important and a great step forward for downtown and Sioux Falls in general.

I’ve also spoken directly to Mayor Huether about it. He’s absolutely got his heels dug in on this one and says “they will not get a TIF.” When I asked him why he was opposed to a TIF for this $29 million project with tremendous economic impact for our city, he literally stormed off in a huff. Really? Seems like when a taxpayer asks a public official to explain their position, the could do just that – without getting all uptight.

For the life of me, I can understand why Mayor Huether would oppose this important project for Sioux Falls. If you believe this project is important, please call, email or talk to Mayor Huether in person. Please also share your thoughts with members of the SF Planning Commission and the City Council. We need their support to make this project possible.

 

For the record, I am against this TIF, but I am bias, I don’t believe in TIF’s. Over the past two years we have had record building permits, and NO TIF’s were granted. Are they needed? Or can private enterprise roll on it’s own? Playing the Devil’s advocate, let’s say I am for TIF’s, the biggest issue with this one is it is too large. I think if they scaled it back by 75% they would have a better chance.

As for the mayor, he doesn’t play well with others, and that is becoming more evident.

Foundation Park, why the 3 year secret?

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I will be the first to say I think this project is wonderful, and I don’t give a flying monkey who gets credit. It will be a shot in the arm for jobs in Sioux Falls and the region, and a perfect location for the project.

But while this project was in the works for 3 years, why so many secrets?

“I can’t believe they didn’t tell us.” Homeowner Angie Mulder sighed, exasperatedly.

So while land sale deals were being done, state, city and development organizations were wheeling and dealing, no one thought it would have been a good idea to clue people in?

So while the officials involved took their sweet ass time working on this (I heard it was closer to five years) they now are expecting the Sioux Falls City Council to make a decision on annexation as soon as June 9, a decision that would ultimately cost us millions in infrastructure costs for years to come.

What’s the rush?

I highly suggest and recommend the city council studies the annexation proposal thoroughly before making a decision.

Why TIF financing just doesn’t add up

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Today in the Argus Leader, they did a story about the Washington Square developers applying for a $4.6 million dollar TIF. They contend they deserve the TIF based on the fact that they will provide FREE public parking of 189 spaces (at night and weekends ONLY).

This is where the TIF funding does not add up. As of right now they pay about $7K a year in property taxes, after the project is completed they assume the property tax bill will be $500K per year. What they don’t tell you is when you subtract the TIF rebate value from that tax bill, the government entities will NOT be receiving these taxes until 9 years after the project is completed (around 2025-26).

We can talk tax benefits all we want, but when we don’t provide TIF’s and private investors figure out how to build these projects with their own money (remember last year we had record building permits with NO TIF’s issued), the community benefits from the property taxes immediately after the project is completed, not 8-9 years later.