https://www.youtube.com/watch?v=m9clehpI2XE

Lamont’s reassurance today didn’t do much for me to quell the public’s frustration over this project;

Lamont mentioned media reports tying the hotel-parking ramp project to others involving Legacy Developments, including the collapsed former Copper Lounge building and stressed that they are separate from Village on the River.

“They’re a small partner in this project and have no control,” Lamont said. “They can’t make any decisions on this project.”

He estimated Legacy’s ownership in the limited liability company at less than 10 percent. Legacy has no involved in the construction and is not doing the leasing.

While it’s great that Legacy may not be making the decisions, it still doesn’t change the fact that Legacy will get some kind of commission from this project and ultimately paid for by the taxpayers. You don’t negotiate a $50 million dollar project RFP and not get paid. Legacy should have ZERO ownership, should get ZERO commission and the investors should be made public.

At the end of the press conference today councilor Stehly voiced concern that Legacy is still involved and should not be, she also questioned the privacy of the investors. We have no idea what other clowns are involved.

Todd Epp from KELO AM set Lamont straight after he said this (Read Epp’s take on this HERE);

Lamont mentioned media reports tying the hotel-parking ramp project to others involving Legacy Developments, including the collapsed former Copper Lounge building and stressed that they are separate from Village on the River.

Todd asked if somehow the media was getting it wrong? Lamont had to admit they were not. Legacy has their finger prints all over this project. They need to be cut loose with NO commission or we need to kill this thing all together and actually build a parking ramp that fills the needs of downtown and Legacy can go back to building pop up dog parks, hopefully no artificial turf will collapse on anyone.

Talk about a difference of opinion. One councilor is under some kind of delusional spell and one is so angry they could spit nails. You can figure it out.

First Neitzert puts on his best sombrero and gets to dancing;

But Neitzert would not have voted differently on the project even if he knew then what he knows now.

“The optics though – they are undeniably awful because of the perception and the ties of various individuals to both the project – if even fleetingly – and the entity involved in the terrible tragedy that occurred.” The terrible tragedy Neitzert mentions is, of course, the downtown building collapse. Hultgren was remodeling the old Copper Lounge building before it came down in a pile of rubble, killing a young construction worker.

It’s not just bad OPTICS it’s a bad DEAL. We should have not gone into business with these crooked clowns;

Neitzert says Council can’t really reverse its decision on the mixed- used parking ramp because the bonds have been sold and construction is ongoing.

Not so sure about that. He is basically trying to spin that the ‘train has left the station’. Actual construction HAS not started. The bonds could be put on hold and the a new RFP could be presented. As far as I see it, this is a breach of contract and gives the city the right to request a court order to stop construction. At the very least they could even nicely ask the construction company to HALT operations until they figure out the legality of the situation;

“Its just too bad this issue is hanging over this otherwise impressive project and will at least for the foreseeable future cast a cloud of controversy and doubt over it.”

There was NEVER anything ‘Impressive’ about this project. It was overpriced and underutilized. Even without the basket of snakes involved with the development, it’s NOT that good of a deal for the taxpayers.

Stehly sets it straight;

“This thing is being built on deceit and deception, in my opinion,” Stehly said. “It’s not what our citizens want from us as Council members or from City government.”

“This project has the second penny tied to it,” Stehly said. “This project is immensely expensive for a parking ramp. This project is going to raise fees for any person who is parking in a City-owned parking lot. It’s been problematic from the get-go.”

Like I said above, it wasn’t a good project to begin with, now add the deception and the already poor luster on this turd is beginning to fade even more. The city needs to put at least a temporary hold on it. The bonds will be fine in the bank collecting interest.

UPDATE II: Daren is sooooo awesome and cool.

The AL reported last night that Ketchum was in negotiations with Legacy since April. Should this be any surprise? Let’s look at previous employees that pulled this;

Erica Beck left the planning office of the city after being forced to write the Sanford Sports Complex Mega-Tif that had nothing to do with blight, setting a precedent moving forward with TIFs. Beck was at least smart enough to bounce around at a couple of little known non-profit agencies before landing at Lloyd Companies. She did a full circle and returned to the city.

Kendra Siemonsma who was the project manager for the Events Center and the Midco Aquatic Center suddenly quit the city and went to work for Midco right after inking the sponsorship deal with them (which included two very ugly signs in Spellerberg Park advertising a Cable Company that has a virtual monopoly in Sioux Falls). Ironically, she is no longer with Midco, and works for Sanford now.

Kevin Smith (who I believe was forced to resign from the city after taking a demotion) took a job with AE2S who does consulting for the city.

While there isn’t much the city can do legally to stop the parking ramp from being built (the bonds have already been sold). They can refuse to do anymore PPPs with Legacy over the next two years as long as Ketchum is VP.  We’ll be watching.

Well, we have known it for a long time, Developers run our city and it’s planning office and it couldn’t get more blatantly obvious;

Daren Ketcham, the former Sioux Falls city official who was paramount in picking Legacy Developments to lead a $50 million parking ramp project in downtown Sioux Falls, began his role as vice president with that same company Monday.

UPDATE: This couldn’t get any richer;

Ketcham won’t be working on one of Legacy’s largest projects, however. The company is involved in the Village on the River mixed-use development under construction along 10th Street east of Phillips Avenue.

The city’s conflict-of-interest ordinance prohibits Ketcham from representing Legacy before the city or any public body for two years involving any project he worked on while employed there.

“It shouldn’t be an issue,” said Drake

LMAO. I’m sure he won’t be asked ANY questions behind closed corporate board room doors about the project. Hey Norm, I’m pretty sure the ‘conflict of interest’ refers to employment as well.

Besides the obvious conflict of interest of going to work immediately for Legacy after just handing them a $20 million dollar parking ramp with taxpayer money, some are questioning what Mayor TenHaken was told, when he was told it, and what he told us. The story goes that when Ketchum handed in his resignation he said who he was going to work for, or at least said it was a major developer in town. After that, he was NOT allowed access to any city computers/data, etc. Big whoop. Who knows what he took on thumb drives before his announcement. But according to the mayor’s office, Ketchum said he wouldn’t go to work for his new employer until late summer/early fall, after finishing up some Guard duties. So was Ketchum completely honest with Paul and his intentions and Paul wasn’t giving it to us straight? I don’t know. My guess is that both of them stretched the truth a bit.

The Erica Beck deal after just working for Lloyd Companies is just as shady. Supposedly she signed some kind of ‘financial disclosure’ yet I have not seen the document, and if it exists, it needs to be for public display on the city website. It should also include at least a 24 month waiting period before she can go back to work for any developer doing business with taxpayers after she quits the city (such as TIF’s or public/private partnerships).

I think it is time a Grand Jury get involved with investigating the DT parking ramp with Legacy. I also think that if TenHaken had at least one ounce of integrity, he would use his power to put the project on HOLD until the rats can be ferreted out.

This wreaks of corruption!

You can accomplish anything when you have your parents credit card.

UPDATE: I thought I would re-post this today (form January 2018) after reading the Argus Leader’s analysis of Huether by reporters Whitney and Sneve.

I often hear it from friends and enemies,

“Why do you pick on the mayor so much Scott? He has gotten a lot of things done.”

I often agree, he has accomplished a lot. And if you don’t believe me or them, just ask the mayor himself. But when you really look at what has been ‘done’ it was done using other people’s money or borrowing other people’s money. The problem with that is that it’s the taxpayer’s money, OUR money, not the little dictator’s at 9th & Main.

These ‘accomplishments’ or ‘WINS’ as the mayor likes to call them, are not really wins at all, but just expenditures that I believe could have been done in other ways to save taxpayers millions while providing those services better. They were nothing more than playthings built to attract more overpaid doctors to town.

While Huether says our debt is the same amount as it was in 2010, what he fails to mention is that he created NEW debt at the tune of almost $250 million while the debt that was paid off was already scheduled for repayment or paid off early due to over 50 fee and tax increases over the past 8 years. There have also been repercussions over these fee and tax increases. Sale tax revenue has continued to go down percentage wise even though we have has an explosive population growth. I believe this has to do with a couple of factors. Wages have not stayed in line with these increases in taxes, healthcare costs, housing inflation and the widening gap between rich and poor. In fact a majority of the middleclass in Sioux Falls has seen no growth or negative growth over the past 8 years. Even with all the quality of life projects, financially the middleclass isn’t doing much better or even worse than we were in 2010, the numbers don’t lie.

Our roads are also still at the same rating they were 8 years ago, 7 out of 10. Which is still good compared to other South Dakota municipalities, but ZERO improvement. One reason may be because our roads fund, the 2nd penny CIP is being robbed by mortgage payments to new entertainment facilities that don’t pay for themselves.

But when it comes to Huether really expanding services to ALL of our residents, what really has he done in 8 years?

The massive annexation Huether has implemented has only pissed off neighborhoods, cost millions in infrastructure upgrades (handouts to the corporations that asked for these annexations) and caused a riff with un-annexed islands that were created after the intentional urban sprawl while our core has become a meth crime haven.

Speaking of that, Huether has done little to combat crime. He hired an un-experienced police chief, a fire chief who lives in Canton (because, as he says, it is safer to raise his kids) fired the former fire chief for allegations of child pornography (but let him keep his pension). Screwed the Police union on raises while giving corporate like raises to directors who have followed marching orders like spiking the Finance Director’s salary over the past two years by $16K right before his retirement.

He has done little to improve project trim to become either free or more affordable to taxpayers. Has cut back street cleaning and snow removal, cut bus and paratransit routes while insisting on charging more and offering ZERO solutions over the past 8 years how to improve service and make it more equitable. I actually look at the do nothing attitude of public transit by Huether as one of his biggest failures as mayor.

He has cost us AND the citizens of SD (Public Assurance Alliance) millions in legal battles that we didn’t have to fight because of the incompetent and non-transparent administration he runs.

Water rates and regulations have only gone up in numbers while sales tax revenue has tumbled, only to take this extra money and put it in a savings account.

But besides the ‘WINS’ he decided to pass up, as I said above, let’s look at the things he called accomplishments by spending our money and borrowing in our good name;

The Denty. This project started on a bad note to begin with. Instead of bonding the entire building we had other options. I think we should have used a combination of private investors, cash reserves and state revolving funds to bond remainder. The vote was also a sham. It was an advisory vote which wasn’t legally binding, ultimately the council had to approve the bonds. In reality, with that much bonding it should have been a legal bond vote which would have required a 60% threshold from voters. It was also built in the wrong place. While Downtown would have been more ideal, I think anyplace but next to the Arena would have been better. The location has only contributed to the money vacuum the Denty has become, sending millions out of town. Than there was the cost saving measure to put flat siding on a curved building that caused a SD Supreme Court case and troublesome siding that will cost us millions to replace over the years. He also lied about the settlement, a lie the very media that sued him continues to peddle. They still claim we got at least $480K, which we did not, that money came from a savings account that was supposed to be protected for future repairs to the facility. Essentially we got ZERO. Proof of this is in the pudding and the reason the money could never be used to fix the siding, because it doesn’t exist. I think we could have built an Events Center, but Huether’s plan has been a complete disaster because of several bad decisions by hizzoner.

The Railroad Redevelopment project has cost Federal Taxpayers (and local taxpayers) well over $27 million. In return we got dirty land for $62 a square foot. The trains are still switching downtown and running more frequent. This boondoggle, while expensive, has done nothing to improve downtown. I consider this one of the biggest failed negotiations of the Huether administration. And if we see another derailment like we just recently did and it’s something other than corn (like ethanol or a chemical) it will take a heck of a lot more than $27 million to clean up.

The city administration building was a gigantic middle finger to the taxpayers of Sioux Falls that was decided by one person who manipulated his executive powers and crapped on 6,400 petition signers. The irony is this $25 million building wasn’t needed. We exchanged a $100K a year lease payment for a $1 million a year mortgage that doesn’t include maintenance costs. There is nothing in city charter that requires the city to invest in office space capital. In fact, the city’s finance director Turbak said it was more equitable to lease space. This is a lie that also continues to be peddled by the mayor. During yesterday’s ribbon cutting he claimed their was ‘collaboration’. There was no collaboration, not with the public, the city council or other government entities.

The indoor aquatic center was poorly planned and based on a campaign of lies and confusing ballot language. The location can not be expanded and built on land the Federal government has the quit claim deed on. We also robbed millions from a repayment of Federal levee bonds that should have been used to repay the bonds. We could have built a larger facility at the Sanford Sports Complex with a public/private partnership with Sanford. It would have also been located by all the other special interest sports clubs. We now have a facility we will have to subsidize up to $400k a year or more in a bad location.

Huether allowed the city to go into a parking ramp agreement with a developer that is facing Federal criminal charges and that has illegally dumped asbestos into our landfill with a penalty that was waived. But even if we picked a good developer, the deal doesn’t add up. We are paying over twice as much for fewer parking spots and a lease agreement that wasn’t based on any appraisals. This deal should have never been penned.

Choosing Paramedics Plus for our ambulance contractor was troublesome for many reasons. Not only their pending legal issues nationally, conflicts of interest with the consultant that recommended them and the ‘Phantom’ ambulances, we could have saved consumers $$ while helping to fund our Fire Department. Since the Fire Department already shows up to medical emergencies, sometimes faster than PP, I think a more prudent decision would have been implementing a public ambulance service. While the initial up front costs would be expensive, the fees charged to consumers would help pay for itself, and help to subsidize the Fire Department. As taxpayers we are already paying for the FD to respond to these emergencies, why not get reimbursed for it?

As you can see, the Mayor likes to talk about ‘dreaming big’ and ‘getting things done’ but he has done all this recklessly and by racking up our credit card. The next mayor and city council will be battling these bad fiscal decisions for years to come, and at the end of the day the taxpayers will be footing the bill for all of these ‘WINS’.

Nope, you read the headline correct. Only Mike is capable of spinning this one;

1) The future $50 million mixed-use parking ramp captures even bigger dreams for downtown Sioux Falls, above and beyond the long awaited need for more public parking.

That’s right, the same developer that has a partner who is being criminally investigated by the Feds and dragged asbestos through our city without paying a fine is considered our Top Win of 2017. Talk about setting the bar. Surprised he didn’t bring up our rising drug problem as win #2.

But the list does have some more interesting tidbits;

4) Our finances are rock solid regardless of the challenge, and by the way, Sioux Falls saves $25 million in interest payments with prudent debt management.

Yes, continuing to overcharge and raise rates on water to pay off debt. Seems appropriate? Doesn’t it? Since play things like the indoor pool and Denty will never produce enough revenue to ever pay for themselves we have to take money from the water enterprise fund to pay debt off.

Which brings us to the building that was approved by ONE person only, Hizzoner himself;

8) Our new City Administration Building , a first since 1936, is being built on time, under budget, and will dramatically enhance service to our employees and residents for decades.

He couldn’t resist to peddle the 1936 lie, again. The city has built dozens of buildings since the 30’s that house administrative support. Besides that, it was not needed. We were getting a good deal on leasing space.

While I have rolled my eyes in the past over the mayor’s Top 10 Wins list, this one has to be the most ridiculous I have ever seen. Notice no mention of affordable housing, fighting crime, or livable wages and employment. Oh, because we are losing on all fronts with those items.

I also find it ironic that while in #4 he mentions our great finances we have yet to see the year end financial report. Why are you and Tracy sitting on this important information Mayor? Are you afraid your puppet candidate for mayor, Entenman, may have to answer some difficult questions about budgeting?