Sioux Falls

UPDATE: Downtown Parking Ramp a bad deal. Yah think?!

We have all heard the story tonight, and Detroit Lewis saw this coming. I predicted early on “There will never be a hotel built at that site.” Trust me, I hate being the ‘I told you so’ guy, but this was obvious from the beginning. I will leave you with my public scolding tonight at the city council meeting.

UPDATE: The city just sent this out;

CLARIFICATION: The City of Sioux Falls has not ruled out private development at this site in the future. At this time, we are focused on the completion of the parking ramp portion of the project.

Today, the City of Sioux Falls provided the Village River Group (VRG) with a notice of termination of their development agreement and ground lease for the Village on the River project.

On December 29, 2017, the City entered into a development agreement for construction of a mixed-use development including a public parking ramp and private hotel with leasable retail space.

The City has invested significant time and resources working with VRG in furtherance of performance of the development agreement.

On April 1, 2019, the City notified VRG that it was in default on the Village on the River project. In accordance with the development agreement, VRG had 30 calendar days to cure multiple defaults. VRG has failed to cure these defaults within the development agreement’s cure period or at any time thereafter.

The project can and will proceed as a stand-alone parking ramp which will alleviate parking challenges within downtown Sioux Falls.

Consistent with protecting taxpayer interests, the City has reserved any and all of its legal remedies available to it under the terms of the development agreement.

In other news, at the Informational meeting, councilor Brekke read her letter to the editor that Cory Myers, News Director of the Argus Leader refused to publish;

May 6, 2019

Letter to the Editor

From: City Councilmember Janet Brekke

I am writing in response to the recent letter to the Editor by Former Councilmember Rex Rolfing and the May 5th Argus Leader Editorial. In my opinion both articles missed the point.

In today’s environment of good versus evil, winners versus losers, or us versus them, frameworks it is plain to see that the Sioux Falls City Council is suffering from the same ultra-polarization that is immobilizing our Federal Government.

The problem that arose with the City Council’s hiring of an Internal Audit Manager has very little to do with the candidate that was ultimately selected. Ultimately the failed discussions and subsequent actions are symptoms of a larger problem.  The larger problem is the City Council’s inability to discuss any divisive problem in a deliberative open minded manner.

Since I joined the City Council last year I have tried to promote and adhere to good government procedures and practice: Decorum, Ethics, Roberts Rules of Order, Open Meetings and Open Records laws. So why does process matter? I believe good process matters because solving complex problems calls for creativity and collaboration, in ways that us versus them, winners versus losers, and good versus evil, do not. In a political context the idea that the good need to simply destroy the evil as we were taught in the movies of our childhood simply does not apply. Affixing blame and demonizing individual councilmembers is counterproductive.

We all have a role to play in our dysfunction. Ron Brownstien, CNN Sr. Political Analyst spoke at the National League of Cities about Congressional polarization on the health care issue. He said both sides claimed they could not talk about the issue because they were too far apart.   Brownstein’s suggestion, “Being far apart on an issue is not a reason to refuse to discuss an issue. Rather being far apart on an issue is the very reason you begin discussions.”  The City Council needs to engage in a deliberative process where we interact and listen to each other. I believe each of us has a valuable perspective to bring to the discussion. We need to work on our ability to collaborate and compromise. If we cannot take the time and effort to work to achieve consensus on hiring an Internal Audit Manager how can we expect to solve the complex problems facing the City. This us versus them mentality serves no one well, least of all the residents of Sioux Falls.

What amazes me is that our soul daily in town had to come after the only councilor (besides Starr) to oppose the parking ramp. The chickens are coming home to roost.

Why wasn’t the Sioux Falls City Council in on the Pavilion/Orpheum contract negotiations?

First I want to say that I am NOT opposed to the Pavilion running the Orpheum, if you look at the financials of SMG running it over the past 5 years (DOC: Orpheum Theater Mgmt Transition Presentation – Council.pdf) you will see that the place has lost almost a cool half-million a year. Not sure why it is so expensive to run a place that is empty two-thirds of the year? I also find it funny that the operating losses come out now that the Pavilion is running the joint, go figure*.

But what has me puzzled is why wasn’t the City Council in on this? Shouldn’t they have either initiated this contract change or at least approached by the Pavilion instead of the Mayor’s office? They could have had open discussions about it at work sessions or in the public services committee meetings. What bothers me is that this contract negotiation was cooked up behind closed doors with the mayor with only the city council being aware of it. With SMG and the Pavilion running publicly funded facilities, this should have been an open negotiation. Instead it was pre-packaged behind the scenes to receive the council’s rubber stamp.

I’m still wondering when our council will start acting like a real legislative body?

*Makes you wonder how badly the Events Center is bleeding money if they allowed the Orpheum to take such a big hit for years.

Was Mayor TenHaken handed a turd sandwich?

While there are many things the PTH administration needs to work on within their own philosophies of leadership, I think Paul was handed a lot of problems caused by the last mayor and rubber stamp city council. Unfortunately he seems to be eating the sandwich and liking it. Here is a list of things Paul is battling on those fronts;

ROADS. Let’s face it, while the weather hasn’t been the best for our pothole situation, some question what progress was done over the past 9 years? When Munson left office, our roads rated 7 out of 10, when the last guy left, the rating was identical. There was NO progress made (I’ve even argued that neighborhood streets in central SF have gotten much worse). I have contended that it’s not just a matter of money, it’s a matter of engineering the streets better.

THE BIRDCAGE. This facility has been losing money for well over a decade, and it really is just a money pit. It’s time we bulldoze the facility and find a better use for the property. I think another hotel with retail center surrounding it would be the best use. As for a new baseball stadium, I think the big wheels in town can fund that on their own or they can play at Harmadon Park.

THE EVENTS CENTER MONEY VACUUM/CAMPUS CASASM. As I mentioned above with SF stadium, we have issues with the area, it simply was built in the wrong location. It’s easy for visitors to pop off the interstate, go straight to the show, and leave right afterwards. The approximately $55 million in sales at the facility last year go straight out the door to promoters, artists and other vendors without recirculating in our community. This needs to be addressed.

DOWNTOWN PARKING RAMP. This project is the mother load of sh*t sandwiches. Paul had the chance to halt the project before ground was even broken, but moved forward anyway. Now we are faced with the unknown of a possible lawsuit, a new developer and RFP and Gawd knows what else. The administration should really be OPEN and TRANSPARENT about the process. I know they are acting like they don’t want to scare off the developer, but last I checked that may not be such a bad idea. If someone doesn’t have the money, that means they don’t have the money. It would be like feeling guilty for NOT giving a lazy panhandler money.

BUILDING COLLAPSE. The city really should have done their own investigation of this disaster. Furthermore, PTH doesn’t seem to concerned about it either. Not only should there have been an independent investigation by the State’s Attorney’s office, but there should have been a full audit of the building services department for ignoring repeated complaints about what was going on there. The illegal asbestos removable should have been the first red flag.

TRANSPARENCY. Speaking of the DT Parking Ramp fiasco, the last administration ran city hall like a cold war dictatorship. While Paul has been trying different things with getting more information out to the public, it’s very select, and the important things are still done behind closed doors, something we like to call ‘smoke and mirrors’. Sorry, Paul, we learned all the tricks from Bowlcut, they are NOT going to work this time around.

RAILROAD REDEVELOPMENT. This of course was the worst negotiated deal in the history of the city. Just the other day, after giving BNSF millions for land that Federal taxpayers essentially owned anyway in easements and reversion rights, the State has to take them to court over a $50K piece of land. Paul needs to cut the city’s losses on this banana shaped plot and sell it to the highest bidder ASAP.

ADMINISTRATION BUILDING. What did we say all along? We didn’t need the extra space. In fact, after building the new City Center we are finding out we have so much space that we are putting the IT department there and clearing out an entire city building for the Triage Center. Don’t get me wrong, the Triage Center is a worthy cause, but the taxpayers are really being taken to the cleaners on the city center and we still haven’t heard whether or not we are footing the bill for the defunct HVAC system.

MIDCO AQUATIC CENTER. Still not really at capacity, and worse yet, customer service reports from the facility are less then favorable. This will be another money pit for years to come. If I was PTH I would try to sell the facility to a private organization and wash our hands of it. Maybe the VA would be interested, they already own the land . . .

MASSIVE FLOODING. We know how the last guy thought about massive growth and development. If it was up to him he would have paved the entire city including all the public parks. Paul needs to slow this down, it is resulting in a lot of pavement and very little runoff and drainage. The action they are taking in the Rose/Lotta neighborhood is a good move, but more needs to be done by dedicating more of the 2nd Penny to drainage upgrades.

Like I said, Paul was really handed a plate of poo, but besides trying to re-polish it, he really isn’t tamping out the fires of closed government and corruption, but if you looked at his campaign donor list, you would know why. Follow the money folks.