UPDATE: Events Center Settlement Released

9/22/2017 – 1ST POST: 1:30 pm, 1ST UPDATE: 2:29 PM, 2ND UPDATE: 3:01 PM, 3RD UPDATE 4:03 PM

I just did a quick read of the settlement, because I was a little surprised it was released this early. (FULL DOC: Events-Center-Settlement-Agreement).

My  impressions by a NON-LAWYER, Speed Read of the document is;

  • If the siding ever goes bad, we can never go back and sue any of these parties for the repair. The taxpayers of Sioux Falls will be fully responsible moving forward with the repair UNLESS it refers to the general warranties (of materials) that were set in place before the settlement.
  • As I predicted last night, about half of the settlement (coming from Mortenson) is money coming from the constingency fund that Mortenson planned to keep for a bonus. There promised portion of the contingency fund was SHORTED to $514,996 and Mortenson had to pay a $160K settlement.
  • MJ Dalsin was actually fined/agreed to settle more for a roofing issue than the siding. It had to do with a new membrane on the Convention Center and connecting the roof of the EC to the CC. In return of paying their settlement* of $125K, they received full payment on the work they did on the EC/CC and the Liens against them were dropped. *As I understand it, Dalsin’s insurer actually paid the settlement, not Dalsin.
  • The rest of the settlement was paid for by architects and suppliers.
  • McGrath (who I think actually installed the panels) was at no fault. Mortenson assumed responsibility for their work.

As you can see from a quick look, the taxpayers were poorly represented on this. We really only got about $444K which doesn’t even come close to an amount to fix the siding if it were to leak and needed repaired. The ‘Good Folks’ of Sioux Falls were left in the dark on this settlement, because quite frankly, we got SCREWED!

I find it a little strange that a man who says he ‘Gets things Done’ and calls himself a leader has made NO statement about the settlement. That figures.

So what do the actual numbers look like? Besides the fact this seems to be about a roofing project/disagreement and NOT about botched siding, it seems we didn’t even get half of the million dollars.

IMETCO (siding OR roofing provider?) paid $40K

Dalsin (actually their insurer) paid $125

SCD (Sink Combs Dethlefs)/Koch Hazard paid $118,719

Mortenson paid $160,000 (not from contingency fund)

Total of $443,719

Mortenson did pay $160K from pocket but they were ALSO actually SHORTED on the contingency fund balance which was $1,071,277. Mortenson was shorted $556,281 of that fund to make up the $1 million dollar settlement balance and still received the remainder in that fund of $514,996 (That is if you do the math, because none of this is laid out in the settlement agreement).

As you can see, we never really got the entire $1 million, and the settlement wasn’t even about siding. And you wonder why they wanted to keep this secret?

This of course is still developing and I hope to give you a better idea over the weekend. **As a disclaimer, these are my educated guesses on the figures since many of the figures were left out on the remaining balance.



15 comments ↓

#1 T on 09.22.17 at 3:01 pm

Yea. We hold press conferences on everything around here…but not this?! Oh yea…that would require an admission that someone did something wrong. Yea, not gonna happen.

#2 anonymous on 09.22.17 at 4:01 pm

So, Mortenson is required to replace the siding on the Minnesota Vikings Stadium for the same reason, but Sioux Falls receives a $160,000 settlement?!!?

And, Huether, Turbak and Pfeifle want it kept secret. I guess we now know why.

This should spell the end of Mike Huether’s political career.

#3 l3wis on 09.22.17 at 4:06 pm

He should resign, and he should take any city directors involved with this settlement with him (Dave Pfelie, Tracy Turbak and Mark Cotter).

#4 The D@ily Spin on 09.22.17 at 7:19 pm

One good moment is this matter is resolved. It could have been another 5 years in court with major contracted legal representation and even less a settlement in the end. Agreed, Huether should somehow get blame for his mismanagement and collusion. No doubt this subject will come up if/when he runs for another office. There’s to much executive privilege at city hall. Huether must also be blamed for the incompetence of the city attorney, city finance, and building inspections. These were new appointments and he made inferior if not incompetent appointments.

#5 LJL on 09.22.17 at 7:42 pm

I strongly agree. All involved in this lie and cover up need to be out Monday. The language that keeps the city councilors in the dark is reason enough for the mayors removal.

#6 scott on 09.22.17 at 7:52 pm

this sounds almost criminal.

#7 MK on 09.22.17 at 8:16 pm

Huether is too busy shoving 20 gallons of $hit into a 10 gallon hat, filming awkward promos for Garth Brooks to release any sort of spin on the settlement.

#8 Judy Judy Judy on 09.23.17 at 2:37 am

Is the settlement even valid? Doesn’t the city council have to approve every contract? This sure seems like a separate contract to me. Since the council was not allowed to review the settlement, let alone approve it, why can’t the Council revisit the entire issue again?

#9 l3wis on 09.23.17 at 3:53 am

Another scenario I have heard is since this was supposed to be undisclosed, now that it isn’t anymore, does that make it null and void?

Hey, but is it really a lie if you are telling it about something that is secret? 🙂

#10 Emoluments Clause on 09.23.17 at 4:47 am

Or, you could argue that the settlement contract is null and void because it requires a stipulation, which now is not legal given the Supreme Court decision – which is that the settlement was suppose to be kept secret….. Because a contract which requires an illegal act is thus an invalid contract.

#11 The Guy from Guernsey on 09.23.17 at 8:10 am

More fuzzy math from Huether the Huckster.

#12 The Guy from Guernsey on 09.23.17 at 8:29 am

With his participation in this deception [allowing this small settlement to be represented to taxpayers as one which “totals $1 million”], the City Finance Director breached his fidiciary duty to his employers, the taxpayers of the City of Sioux Falls.

Termination should be immediate.

Trust and integrity are important components in public accounting and finance. Were there to be continued employment, Mr Turbak would claim neither of these. He can no longer be trusted as an accounting professional.

#13 Bruce on 09.23.17 at 8:31 am

When is a roof repair, a disagreement on siding? Let’s ask Mikey.

When is steel siding a rubber roof? Let’s ask Mikey.

When do we believe a reputable local contractor over a fraud created by of a subprime credit card salesman? Let’s ask Mikey.

When is a million dollars not a million dollars? Let’s ask Mikey.

When do we, as a town raise up and demand changes to our Home Rule Charter to take down the strong mayor form we now have and suffer under? Let’s ask Mikey.

Now we need the change orders on this building and the other contracts under Construction Manager at Risk. Let’s ask Mikey.

We have a YouTube playlist of videos where we have been fighting for openness and truth. Check out the almost 3000 videos we have on Sioux Falls governments. They are out there so you can see for yourself the questionable behaviors of a few of our “leaders”.

The South Dakota Supreme Court has helped us determine who is to blame for this question but we have so many more even needing to be asked (answered).

Some of us were shouting from every tree top we could to get to so the problems with this building and all the secrets and most laughed at us, excusing the mayor. Why should it be a secret? Now we know for sure. We have only months before there will be a new mayor of Sioux Falls. Will we end up with another version of SubPrime Mike or have someone who will help us through the pain we must be ready to suffer cleaning up his mess?

We’re not done.

This ruling was sunshine on a cloudy day.

Thank you Argus Leader, Jon Arneson, Joe Sneve, Jonathan Ellis and the entire media who finally woke up to this mess to help us get our contract answer.

Let’s ask Mikey.

#14 anonymous on 09.23.17 at 9:32 am

This revelation may be why the mayor has not announced a run for a higher political office.

He knew there was a chance his past misdeeds were about to be revealed.

I wonder how much other —- will be revealed in the future about his under-the-table dealings over the past 7 1/2 years!

#15 LJL on 09.23.17 at 6:38 pm

Notta peep from Kelo Land. Not sleezy enough for ol Angie.

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