It seems they already had their eyes on our university and cows;

Published reports when Bel Brands announced its decision to build in Brookings indicated that the company was particularly taken with things like a robust dairy industry in South Dakota that will provide the raw materials needed to manufacture cheese and the world-class dairy facilities and dairy research at South Dakota State University where there sits a $9.5 million brand new dairy processing and research facility. Only one other university in the country has a similar facility. Could it be that Bel Brands would have selected Brookings without up to $10 million in South Dakota taxpayer incentives? We will never know.

In addition, what is the process for determining who gets money and how much from this new Large Project Development Fund? Apparently, the process is whatever deal companies can negotiate with Dennis Daugaard behind closed doors and with no post-deal transparency.

Is this how our state intends to do business in the future? The iron-handed, no checks and balances, no transparency one-party Republican Governor with his rubberstamp lemming legislature can cut whatever deals he wants with whomever he wants, with taxpayer money and we are supposed to just shut up and be grateful for his actions? And by the way, what if Dennis Daugaard is a horrible negotiator? What if he gave away $10 million in tax dollars when $1 million might have done the trick? We have no way of knowing because there is absolutely no oversight of his actions.

Like I have said in the past, we need to end this practice of handouts to corporations in order to attract them here. 1) Because we already have other incentives and 2) It’s OUR tax money they are giving away. Wouldn’t investing in education be a wiser use of the money?

 

8 Thoughts on “Did the governor really have to promise millions to Bel Brands to get them to come here?

  1. Apparently, the process is whatever deal companies can negotiate with Dennis Daugaard behind closed doors and with no post-deal transparency.

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    This is not only happening at the state level, but right here in our own community. At the City Council’s last work session, Darrin Smith, Director of Public Parking and Community Development, spoke about the use of cash incentives for economic development…..

    talk about a slippery slope!!!!!!

    AND, BTW, this meeting was held at Carnegie, it was not recorded on SIRE, and when I requested a copy of the minutes from the City Clerk’s office, I was told there were none!!!!!

  2. Did you also catch the council meeting in reference to the DT Hilton? The city would have to ‘reimburse’ the developers (Hegg and Lloyd) if financing fell thru. How is that our f’ing problem? You agree to purchase the river ramp and tear it down. You own it, why should we pay for it’s destruction. I smell a rat on that deal, and we already know his name.

    This cash incentive bizzo is starting to irk me. They have to raise my water rates to fix pipes, but then we turn around and want to already stinky rich developers to develop? Last I checked, development is like investing in the stock market, there is a risk. If you are smart, it pays off, if you are not smart, it doesn’t. But it seems in this town, developers want taxpayers to buy their parachutes. Bullshit.

  3. What’s the return on investment? How long will it take for the State to recoup that $10M through taxes due to the new economic activity produced through this new plant?

    If we’re going to use public money to lure private companies to provide jobs here, how is that fundamentally different from the government itself just using the $10M to hire government employees? How is this not big government intervening in the free market? Talk about hypocrisy.

  4. Tom – Didn’t you know that it is okay to give bailouts and kickbacks to corporations but not okay to provide services to taxpayers.

  5. Call it what it is -corporate welfare; socialism for the rich; government picking winners; kleptocracy; fascism.

  6. And they think welfare for the poor should end or be cut. Shame on them!!!

  7. Pathloss on February 17, 2012 at 7:56 am said:

    Hilton passed on downtown before. To many payoffs and kickbacks. In the 80’s it was politicians and lawyers not developers.

  8. Pathloss on February 17, 2012 at 8:01 am said:

    Taxpayers should not have to cover wealthy developer bets. We’re responsible for political kickbacks only.

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