Argus Leader writes a poignant editorial about the Downtown Parking Ramp investors

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Like most of us who follow city hall politics, the AL has written off this current council and mayor;

It’s a shame that city leaders – for reasons at worst nefarious and at best simply tone-deaf – seem determined to dig in their heels and undermine public confidence.

We call on current city councilors to insist on a framework of transparency.

We call on the future members of the council to make open dealings a top priority, to act as a check against the worst impulses of the executive.

And we call on the future mayor and his or her administration to learn from the lessons this administration refuses to accept, paving the way for a new era of accountability.

They also bring up the 700 pound gorilla in the room;

— Legacy guarantor Aaron Hultgren’s construction company was heavily fined by OSHA for workplace safety violations after last year’s downtown building collapse, which killed a construction worker at a property owned by Norm Drake and Legacy.

This is a huge red flag, especially after reading this story today in the AL;

Both Hultgren and Command Center appealed the penalties. The appeals mean that OSHA’s investigation isn’t closed. Which in turn means that the investigation isn’t available to the public or lawyers representing various parties who might have a claim because of the accident – whether it’s the family of McMahon, Emily Fodness, the young woman who firefighters rescued, or downtown business owners who lost sales when parts of the city were closed.

The two most serious citations against Hultgren were classified as “willful,” the most serious OSHA levies. Willful violations are given to employers who knowingly failed to comply with legal requirements or acted with indifference to employee safety.

As they point out, Mr. Hultgren could be sued for millions once the smoke clears. Why would the city want to sign an 80 contract with this guy? If the lawsuits ARE filed and are successful the city could be holding the bag on this project. It is likely we could have a very expensive parking ramp with an unfinished hotel attached to it. The blatant ignorance of the city’s legal counsel is astounding on this part of the deal.
Posted in: Developers, Development, Downtown Sioux Falls, SF City Council, Sioux Falls

If I were to compromise on the Downtown Parking Ramp

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Let’s face it, the Downtown Parking Ramp probably has the 4 votes (plus mayor) to pass. But let’s pretend for a moment you or I were on the council. What would it take to change our minds?

I’m totally against the project personally, but let’s say I was sitting on the council and my fellow peers asked me what it would take to get my vote. Here is a list of things I think needs to change in the agreement before I would consider supporting it.

#1) Cut the parking ramp construction costs by $1 million. I think there is plenty of room to tweak the current plan. For instance, why does a bare concrete structure need a sprinkler system?

#2) Share the $6 million in soft costs with developer. I think the developer should have to pay $3 million of those costs which include upgraded utilities and a reinforced foundation.

#3) Change the lease to a 5 year lease with an opportunity for automatic renewal in 5 years. Base that lease on actual appraisals of similar leases. Right now the lease comes to $1,000 a month. That is highway robbery by the developers. It is ridiculous to sign a 80 year, one time payment lease with the developer.

#4) Take Aaron Hultgren’s name OFF of the contract guarantors and off the investor list. Legal counsel should know better signing a contract with a construction company owner who has been fined thousands of dollars for safety violations by OSHA for a building collapse just feet away from the new development. Until Mr. Hultgren clears his name (he is contesting the fines) NO city money should benefit him. If anything he probably owes us for all the issues he has caused for our city’s first responders and private downtown business owners. He is the LAST person that should be involved.

Like I said, personally I am against the project, but if I was on the council I would propose these amendments.

Posted in: Developers, Development, SF City Council, Sioux Falls

Downtown Parking Ramp; Let the Ramrodding Commence

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Here we go again, the mayor’s administration and his enormously talented and very transparent team has farted around for 9 months on a parking ramp that hasn’t gotten city council funding approval yet. Now they want to lay it on the council right before the end of the year and ramrod it through;

The City of Sioux Falls is excited to unveil the design and announce project details for what will be an iconic and striking landmark for the downtown skyline. With City Council approval, the mixed-use parking ramp project will break ground in spring 2018.

We still have some questions about this proposed ‘iconic’ landmark.

Will we still be using the 2nd Penny as collateral though this is an enterprise fund project?

Who are the investors?

What will be the cost per parking space? If the city is investing $18 million on this ramp, will we get our money’s worth on the spaces?

While we could go on and on about a lot of issues with this project, the biggest is the lack of transparency. The administration has been working on this for 9 months and they spring it on the council like some surprise early Christmas gift.

I don’t trust the Liar in Chief and his shady directors with their back door deals. The council needs to vote down this project based on that alone.

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

Sioux Falls City Council should vote against Downtown Parking ramp based solely on what we learned from secret siding settlement

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Last night at the city council meeting councilor Pat Starr chastised community development and parking for keeping the council in the dark about the proposed downtown parking ramp. The administration asked for an additional $30K for legal fees before the council has even approved the funding. (FF: 44:00)

This project continues to get delayed, and no one knows why, the public or the council. But they continue to ask for more and more money.

Councilor Starr complained about the secrecy involved, and rightfully so. I think with all of the kerfuffle yesterday about the secret siding settlement this should set a precedent moving forward that the council votes NO on all RFPs they are left in the dark about, as they have with the backroom negotiations with this project.

I think moving forward if the council and public are NOT receiving information about these projects before approving them, they should vote them down and demand transparency.

As I have said, if you are doing business with the public, that becomes public information, whether you are a private developer or not. This secrecy cannot continue, and we can’t wait for a new council and mayor to remedy this massive problem, the council must act TODAY.

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