City asking taxpayers to pay $40,570 per parking spot in proposed ramp

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While it is fine to get excited about a new $50 million dollar, 120 room, 13 story hotel downtown, that excitement quickly deflates when you consider the private developer is asking taxpayers to pony up $21.3 million toward that figure for 525 public parking spots.

While there is nothing wrong with a public/private partnership, we are definitely getting hosed.

Stalls in a typical parking ramp range in value from $20-25,000. Paying $40,570 per stall is freaking ridiculous if not ALMOST criminal. The airport recently proposed a parking ramp in front of their terminal that came in at that $25,000 stall range.

I’m curious if we are paying for a parking ramp or a hotel? This wreaks of corruption from the developer who toppled the Copper Lounge.

https://www.youtube.com/watch?v=uKw0FMSEavA

Posted in: Downtown Sioux Falls, SF City Council, Sioux Falls

It seems a majority of Sioux Falls city councilors are still moving forward with Legacy developing DT parking ramp

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Councilors Starr and Stehly are not buying it though, and questioning investors;

“There will be zero conflicts of interest. They’ve made a commitment since day one and it was part of the request for qualifications that they can’t have any conflicts with city employees,” Ketcham said. “They will not accept any city participation.”

There is also a partnership between Legacy Development and Aaron Hultgren, whose company, Hultgren construction was fined roughly $100,000 by OSHA on Monday for the downtown building collapse, which killed 24-year-old Ethan McMahon, where the new mixed use parking ramp would be built.

Hultgren is an employee at Legacy and the site of the building collapse, which Hultgren Construction, LLC had been working on at the time of the collapse, had been sold to Legacy by Tim Kant, the owner of the Copper Lounge, in 2015.

When asked whether there was any sort of reconsideration about the partnership between the City and Legacy Development as a result of the building collapse in December 2016, or in the past 24 hours as a result the fines imposed by OSHA, Ketcham only said Hultgren Construction wasn’t involved in the project.

Besides the fact that Legacy has financial ties to Hultgren construction and has used them on several projects, somehow they seem to think they can wash their hands of the tie with the new parking ramp because they are using a different construction company.

Hey, I say, use the different construction company, the engineers and architects, but DO NOT allow a development company with such poor judgment to manage the project.

Also, the FINAL judgment and REPORT from OSHA does not get released until June, and that’s when the civil suits could rear their head. Could Legacy be on the hook for damages? We don’t know, and this ‘not knowing’ is a good enough reason for the city to find a different RFQ for this project.

Posted in: Developers, Development, Downtown Sioux Falls

Why are we considering Legacy Development for Parking Ramp RFP?

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We have a few questions to ask, see how many you can answer.

If someone goes to building code enforcement and files a concern, why does no one follow-up?
Do building and code enforcement only show up to arrest someone for having a pile of shingles in the wrong spot?
What are building permits good for?
If you have a building permit, does it allow you to do what you want?
Why do we need this parking ramp so badly?
If a building falls down, are we allowed to ask why?
Should we care?
If there is a death, shouldn’t someone from the county/state investigate?
Isn’t it strange there has been no grand jury convened to find out why a tragedy happened?
What does a contract allow you to do?
Where were the engineered drawings and permits to allow a load bearing wall to be taken out?

The Copper lounge collapse in downtown Sioux Falls leaves the public with so many questions. Scott Ehrisman asked many during the Sioux Falls City Council Public Input on February 14, 2017.

When you are done with the video, write down your questions and maybe send a few of them to the Minnehaha County State Attorney. Maybe he can help us get answers.

Posted in: Developers, Development, Downtown Sioux Falls, SF City Council, SFFD, SFPD, Sioux Falls

Parking Ramp Announcement w/o funding

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The city council pulled the funding for a DT parking ramp last year, yet the city administration and mayor decided to announce their ‘pick’. And as far as I know, the council hasn’t even been let in on who has been chosen, not even in executive session (how is that for transparency) let alone no funding approval.

But it gets even more complicated. Three companies submitted bids;

After soliciting potential partners through what’s called a request for qualifications in May 2016, the city received three submittals — all from developers with local ties.

Legacy Development in 2015 started a $12 million, 82-unit downtown loft complex. Called “Third Avenue Lofts,” the four-story housing complex at 13th Street north of Sunshine Foods benefited from $1.5 million worth of tax increment financing to see the project through.  It also owns the property abutting the parking ramp site to the east where a building collapsed in December, killing a construction worker.

Lloyd Companies in recent years has added more than 100 residential units to the downtown neighborhood with Phillips Avenue Lofts, the Uptown Exchange Lofts and Good Samaritan’s City Centre lofts.

Trans Atlantics was established in 2008 and has another office in Ethiopia. It specializes in partnering with other business, organizations and governments on real estate, manufacturing, agriculture, trading and technology projects.

Lloyd has already said they were not picked, so it is between the other two. Also remember, Legacy was involved with business partners in Hultgren Construction, which has a pending investigation against them. Would the city be foolish enough to pick them with this investigation that is ongoing? The press conference ought to be a real sh*t show.

Posted in: Developers, Development, Sioux Falls

Is it time to change the parking structure of Downtown Sioux Falls?

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When I travel, I try to make it to downtowns to see how their parking is setup for visitors. This is what I found on my last trip.

In Rapid City, they allow 3 hours free parking on their main street. I talked to downtown gallery owner Joe Lowe about it (we mostly talked politics :) and he said that they do monitor it, and you can move your car after 3 hours if you want more time.

In Deadwood I walked from my hotel, but it seemed there was plenty of public parking available for free in flat lots.

In Cody, WY I didn’t see a time limit on the main drag (Sheridan Ave?) and NO parking meters.

In Fort Collins there was 2 hours free parking in the Downtown area, plus 2 hour free flat lots.

While downtown Sioux Falls does allow free parking on Main Avenue, Phillips Avenue does charge on the meters from 9-5, weekdays. I have often argued if we want even more activity downtown we should remove the parking meters on Phillips Avenue from 14th to 6th Street, leave them everywhere else, and still charge for the ramps. I think the Phillips Avenue parking should be a 2 hour time limit, and monitored.

We consistently hear that since the parking system is an enterprise fund, we need the revenue to support it. I think with the possibility of a new ramp, and all the other ramps available and side street meters we could easily afford to give FREE parking on Phillips to visitors. The economic boost would be worth it. I would even implore we charge additional property taxes to Phillips Avenue businesses to offset the meter loss.

I am just baffled how I can visit four other Midwestern communities who have figured out free parking for their visitors, but for some reason this boomtown can’t.

Posted in: Downtown Sioux Falls, Sioux Falls