Sioux Falls

Several Reasons why the Sioux Steel TIF should be voted down

Last night at the Sioux Falls City Council meeting it was the first reading of the Sioux Steel TIF proposal (2nd reading is on  February 3rd). I spoke for my whopping 3 minutes about why it is a bad idea, I was able to run thru these points (FF video to 1:30)

• Planning Staff (Public employees) SHOULD not be recommending tax cuts or rebates to publicly elected officials (city councilors). While it is their job to lay out the pros and cons and basic criteria, employee salaries funded by our tax dollars should not be cheerleaders for private business. It goes against our free enterprise system and frankly is unethical.

• The property does not provide affordable housing OR clean up blight (The blight that does exist on the property is from the current property owner who is going to redevelop the property). We have known about environmental issues with this kind of manufacturing since the 1960’s. We were not born yesterday, you blighted this land, it is your responsibility to clean it up.

• Very little new economic growth will be produced, it will only be diverting development from other parts of the city, as well as diverting lodging from other parts of downtown. We know that over the past 5-6 years the city has seen a decrease in lodging taxes and stays do to a popularity in Air BNB, and the fact that people are not spending the night in Sioux Falls. The Events Center is a great example of how NEW economic growth and taxes will not come rolling in due to this project. In fact it competes with our current taxpayer subsidized convention center. Since the EC has been in existence, sales tax revenue has been at it’s normal snail pace until last year.

• We really don’t need more parking ramps downtown. We already have one waiting for a hotel to be built on top of it. Why are we not focusing on fixing that fiasco?

• The 20 year TIF will only produce $1.1 million in property taxes. If we forgo the tax and the project is scaled back, we would bring in around $10 million in the same time period. And if we also forgo the river greenway improvements of $10 million and just gift the development the property, it would be a $20 million dollar windfall for taxpayers instead of $1.1 million. I actually believe the development is bluffing about scaling it back, they would find the financing elsewhere, and even if they canceled the whole project (which I think they won’t) it wouldn’t harm us one bit.

• Most of the jobs created by the project will be hospitality, most of which are part-time and with few benefits.

• THERE HAS NEVER BEEN AN ACTUAL TIF ECONOMIC IMPACT STUDY IN SIOUX FALLS. This is one of the main reasons why this should be voted down. A comprehensive study would show us that there has been very little economic impact to citizens, in fact, it has probably forced individual property owners to pay higher taxes.

TIFs that don’t address real blight and affordable housing are really only a handout. It is unfortunate that the public is very ignorant about TIFs and the effect it has on their personal taxes while providing very little benefits. I can’t blame the developers for asking for this. What if your banker said to you one day, “There is this tax incentive program that will refund your property taxes for 20 years so you can improve your personal property.” Wouldn’t you jump at it? I would. Damn right I would. This is why I have argued to any city official that would listen for well over a decade that TIFs should be used to cleanup personal properties in low income working class neighborhoods instead, this would be real economic impact to the residents of Sioux Falls. But, hey, shiny things are fun to look at when the business elite are laughing all the way to the bank.

I’m excited about the new Sioux Falls Arts Task Force

https://www.youtube.com/watch?v=zQ3PL_tTmxs

Once again, the mayor is interjecting himself on ‘POLICY’ instead of solving the bread and butter issues of Sioux Falls through his staff and public employees, but I like where his heart is;

“The performing and visual arts scenes in Sioux Falls has matured greatly over the past few decades. Multiple organizations and individuals have made incredible contributions and there is an appetite for more,” said TenHaken. “For our arts programming to move forward in a collaborative, unified, and focused direction, I believe now is the time to investigate how the City can more effectively and efficiently interface with community needs as it pertains to arts and culture.” 

As a person who has participated in the Sioux Falls ‘Arts Scene’ for a zillion years, I have always had a simple answer to how you make the arts strive in Sioux Falls; FEED LOCAL ARTISTS!

I made this simple argument for years to the groans of our business elite in Sioux Falls with no avail. A great example was the Arc of Dreams, while a nice shiny thing to stare at when the Vikings lose another playoff game, it really doesn’t have much impact. My vision was to spend that $2 million+ on hundreds of mini art projects throughout the city employing local artists, artisans, contractors and landscape professionals. Let’s face it, you don’t have cupcakes without a baker and you don’t have art without artists. I’m hoping the task force (in which I know and respect many of them) comes out with a vision and plan that employees our local artists in shaping a vibrant art scene. My experience in the past is that members of these special groups often recommend an investment in local arts means an investment in local artists, and than the business elite step in and piss on the parade because they won’t be receiving accolades or profits from such a vision. There are several members on this task force that have the guts to tell it like it is, hopefully this time they won’t back down when the elites tell them no dice.

Mayor TenHaken still unaware of his duties under the city charter

I am often amused that when this mayor or even past home rule charter mayors think their role under the charter is to create initiatives, ordinances and legislation. In the charter, it clearly shows that job is the job of the city council, and the mayor’s job is to run the city, it’s departments and it’s employees as the day to day operations manager.

In this interview the mayor chastises residents for calling and emailing councilors about snow removal issues, talks about his missionary work in a 3rd world country and his initiative for mentorship. While valid things, I’m wondering when PTH is going to plant his ass in his office chair in city hall and get the city running up to snuff? Besides poor street maintenance and snow removal, poor communications about disaster and flood cleanup, low morale in our police force due to understaffing with drug and violent crime on the rise, homelessness out of control and a bunker ramp deal falling through the cracks, maybe our mayor needs to concentrate on running the city, you know, the job outlined in the city charter. I sometimes wonder if he even knows his job description? Someone said to me the other day, “Why does Mayor Paul act like the youth pastor of Sioux Falls?” Good question.

I had to chuckle a bit when the mayor sent out an email yesterday telling councilors to stop bugging city directors in emails. Funny how he chastises councilors for trying to do his job (because he isn’t) yet doesn’t sweat it when he tries to do their job. Implementing policy.

Paul, take off the trucker hat, put on your big boy pants and start solving the problems we have going on in the city, and let the policy making and citizen representation lie with those charged with it in the charter; the city council.

Sioux Falls School District 1st Boundary Task Force meeting

UPDATE: So when I posted this, I had not watched it yet, so being the government nerd I am, I decided to wade thru it. It got good at the end where golden parachute boy, Doug Morrison started allowing public input. People asked poignant questions about enrollment and effects on private education, there was even some laughter about it, to which Mr. Doug ‘Oblivious’ Morrison blew off the laughter and pretended the sarcasm and irony did not exist, and admitted he was awaiting the data. When I pay taxes I expect services, when I see these kind of reactions I feel like I just paid for a $50 hamburger that tastes like, looks like, and probably is goat sh*t.

UPDATE: Project TRIM pilot program proves that the city can affordably trim city owned trees

UPDATE: I wanted to add that the Denny Sanford Premier Center probably costs taxpayers about $6 million a year (after sponsorships, profits, sales and sales tax revenue offset) that comes to $31.58 per year, per resident. Ironically, not everyone attends the EC and on top of that, you still have to buy a ticket to go there. I would say, Project TRIM at no cost would be a lot more bang for our buck.

I was surprised that the number was so low. $58 per property. If you are in violation in it’s current form, the city could charge you $150-$300 to trim THEIR trees, even though in reality we pay frontage fees/taxes to take care of these things. As Stehly points out in the meeting, it could be even lower if we contract the work with private contractors (creating local jobs) or using inmate labor.

I would also like to point out that these costs will get lower each year because the city will be doing this on a regular basis and keep it managed. I also think the price tag is a pittance for the trimming, $688K per year, compared to other expenditures in our city. That comes to about $3.62 per resident, per year. Half the price of a value meal at Mickey D’s. We can afford this.