City of Sioux Falls plan to expand indoor pools has been in the works for years

This is no surprise, before the doors of the Midco even opened there were plans to expand the indoor facilities;

South Dakota’s largest community is readying to spend tens of millions of dollars overhauling its pool system, which could include a pair of brand new indoor aquatic centers.

The plan to expand indoor facilities has been talked about for a long time. In fact, the bonds they are proposing have been on the table for years.

I am NOT against building indoor rec facilities that have multiple uses, but when we are losing $700K a year on just one indoor pool we have to ask ourselves some serious operating expense questions. If these community centers are meant to help those who can’t afford private fitness clubs why not have certain hours where they are FREE to use by anyone?

Leon Younger, President of PROs Consulting, reviewed the alignment with the Park System Master Plan, with the following main points: replace aging aquatic facilities; renovate and update aquatic facilities to extend their useful life; adult fitness and wellness programs; year round programming; maintain the level of service with population growth; address the shortage of indoor recreation space. Younger also stated the following recommendations: prioritize indoor multi-generational recreation center with aquatics at Frank Olson or Kuehn Park, ideally both; follow Master Plan for McKennan Park with replacement of wading pool; add shade and upgraded concessions at Terrace and Laurel Oak parks.

We can’t say on one hand we are here to help the less fortunate then turn around and charge an entrance fee like we do that already at many city owned facilities.

You will also find that the largest number of people who filled out the survey were from the SE district in North Harrisburg. It makes you wonder if that district is more targeted online to participate in the survey. The SE district is what shaped the last city election, and now we are letting them shape policy.

It will be interesting to see what kind of operating expenses the Parks Department comes up with.

Does the City of Sioux Falls vet credit when handing out goodies and TIFs?

Well we know the answer to that question when it came to the Bunker Ramp, but have we learned from that experience? Apparently not;

A planned housing development backed by a first-of-its-kind tax break from Sioux Falls City Hall is on track despite market uncertainty placing challenges on the project developer.

The Sioux Falls City Council in mid-October awarded a $2.1 million tax increment financing package to Nielson Construction in support of a 65-unit residential development. In exchange, the company promised to sell the home at “accessible” pricing that reflects first-time homebuyer levels.

But an email sent days later by the company to dozens of its vendors and subcontractors alerting them of cash flow issues raised questions about whether the project would happen.

“Unfortunately, with that, cash flow is short and there is going to be some delays on being paid for invoicing,” the correspondence read. “We promise that we will pay you for work completed but getting that payment in a timely manner like you are accustomed to won’t be the same.”

I was made aware of this email over a week ago and was also aware that Joe and Jon were digging around on it. While all businesses seem to endure some cash flow issues from time to time, you wonder what kind of financial vetting the city did? If any? Maybe the director of finance is too busy running multiple departments?

Mayor Paul TenHaken’s chief of staff, Erica Beck, said Tuesday that City Hall isn’t concerned that Nielson won’t be able to deliver on the project. The city is not on the hook if it doesn’t happen though, either, she said.

“We have no reason at this time to be concerned with Mr. (Kelly) Nielson’s ability to advance the project in which he was approved for tax increment financing,” she said. “Additionally, it is important to note that this is a developer funded TIF, meaning he is using private financing to fund the project.  There is no financial risk to the city.”  

Yes there is! If the city is using the TIF to build up infrastructure in the affected development, and the developer bails after the infrastructure is in place and before a house is built, we would be on the hook as taxpayers for it, just like the unfinished Bunker Ramp.

With all the six figure+ staff we have working for the city, you would think we could get at least one of them to do credit checks for these projects.

Besides being tipped off about the email, I was also told that Nielson construction was the ONLY developer willing to do this project. It wasn’t a matter of the city vetting multiple construction companies and multiple ideas and sites (like building density in the core) but a matter of picking the cheapest beer on the lowest shelf.

It would be enlightening to see if any councilors ask the planning department if anyone else bid on this project.

Lazy South Dakota PUC allowing a 6 month increase of electricity rates

During the run-up to the mid-terms, PUC incumbent Chris Nelson threw around wild claims that the PUC couldn’t limit imminent domain, BUT they can limit electric rates, if only they decided to research it and make a decision;

Xcel Energy will increase its electricity rates by 17.9 percent, starting Jan. 1. That’s a jump of $19.60 per month on an average residential customer’s bill. The proposed changes affect 97,500 customers. 

The PUC had six months to investigate and make a decision about the rate request before the company implemented it, but the three-member commission will not declare its decision in that timeframe.

That window closes at the end of December. Commission Chairman Chris Nelson said the PUC rarely completes its investigations in six months. 

“Once that rate increase was filed with us, our staff immediately began working through the evaluation process,” Nelson said. “That is a very lengthy and complex process.”

SIX MONTHS! C’mon! It is probably a difficult decision to make and takes awhile to research, but while you are dragging your feet thousands of customers are paying a higher rate.

The commission will subsequently have another six months to make a retroactive decision, but meanwhile, the requested rates will go into effect as an interim rate hike.

Seems convenient, doesn’t it?

Sioux Falls City Council Tidbits

During the regular city council meeting last night the council touched on several topics;

WASHINGTON PAVILION’S DARRIN SMITH CLAIMS THEY NEED $5 MILLION IN RESERVES

The director/president/CEO of the Pavilion told councilors during the contract renewal last night that they needed a $5 Million dollar ‘reserve’ in case they have some struggles. While I would agree they do need a slush fund, most of those reserves should be in an endowment fund that earns money thru it’s investment. It is insane that the city continues to dump millions each year into the Pavilion for maintenance and operating while the Pavilion stuffs private and Federal contributions into a savings account. Councilors defended the reserve. Of course they did.

DOWNTOWN SIOUX FALLS BID TAX INCREASE HITS A SNAG

I do support the increase, which is actually very minimal to even the largest property owners DTSF;

Druley did not specify what Raven’s new assessment would be, although a 377% increase over the assessment’s current cap of $1,700 would come to $8,109.

I’m glad our local paper hasn’t taken away their reporters calculators . . . yet.

I find it shocking that TWO properties (Raven and Sunshine/Norberg Paints-which are in the same building) can have this sort of deferral control over the council. This was vetted by DTSF and after it was explained to me it is easy to understand and why NO OTHER downtown property owners that have valuations over $1 million have come out opposed to this;

Batcheller has said the change would affect 88 buildings in the district and bring in another $160,000 per year, and estimated that Cherapa Place’s expansion and the Sioux Steel district could account for another $115,000.

It’s really not that much money, but that didn’t stop the threats;

And she floated the threat of the company leaving the downtown area as well.

“Raven is accountable to its shareholders and its board, and it’s harder to justify its presence in downtown Sioux Falls as expenses increase relative to the benefit they get,” Druley said.

See yah later!

What was NOT mentioned by the council or Raven’s legal counsel is that Raven is no longer a locally owned business. It is now owned by a very, very, very, wealthy Italian family. I have assumed after the purchase that the new owners will look to consolidate and possibly leave Sioux Falls anyway and there is very little the city can do to stop it. I hope that doesn’t happen, but we have NO guarantees it won’t.

Also not factored into their crocodile tears is that Raven has benefitted from the millions of dollars taxpayers have invested in the River Greenway making more of an attractive workplace downtown. The promotion of DTSF has also benefitted Sunshine Foods, the only FULL SERVICE grocery store in the center of downtown. I have been shopping there for 30 years, and I have seen how the store has improved it’s image in step with DTSF improving it’s overall image.

Funny how the council will keel over when ONE hired gun lawyer makes veiled threats but when dozens of citizens show up to the meetings to oppose rezones, bunker ramps, etc., they ignore the warnings.

The council should have just voted YES last night to the increase and thanked Raven for their concerns. Talk about cutting off your nose to spite your face.

EFFORTS CONTINUE TO CLEAN UP THE BIG PIOUX

While I applaud the efforts, we can’t ignore the 700 pound turd floating down the river;

Entenman notes that 78 percent of the stream miles of the Big Sioux watershed – which is the size of New Jersey – are impaired, meaning the water quality doesn’t meet certain standards, either through contamination with E. coli or other issues, primarily from runoff – from agricultural practices to city streets and residential yards.

Unless you can get the property owners (mostly ag) along the Big Pioux to actively stop that runoff, you will NEVER be able to clean up that river.

“What is the point in putting multimillion-dollar buildings on the shores of the river if it’s polluted,” Entenman said.

I have asked that question for decades.

THE STATE LEGISLATURE AND CITY COUNCIL NEED TO PASS COMPREHENSIVE GUN CONTROL

After Noem and the state legislature’s right wing radicals approved open/concealed carry laws there has been a large increase in gun violence in the state’s largest city. I don’t think that is a coincidence;

Court records indicate Billion was shot with one of four stolen guns from the McKennan Park neighborhood. They were all taken from the same truck.

And there are ZERO consequences for the incredibly irresponsible gun owner, but they do have to live with the guilt, poor fella;

It’s something people have to live with and I’d say that’s one of the unintended consequences if you happen to leave your gun in an unlocked garage, car, house whatever it may be and it ends up stolen,” Sioux Falls Police Information Officer Sam Clemens said.

While I don’t think this reckless gun owner should go to jail, I do think they should face a very heavy fine and be banned from ever owning a gun. While the city has had ordinance bans on tobacco and alcohol use in our public parks, fines for not trimming your trees or scooping your sidewalks and bans on texting and driving the state legislature and city council seem to lack the courage to punish irresponsible gun owners when their stolen property is used to murder our citizens.

I am hoping with the influence the Billion family has in our community they would pressure the legislature, the governor and the city council to implement reasonable gun control laws so there is a least some consequences for not securing a deadly weapon.