Don’t believe the platting fee ‘Ruse’

We were told a decade ago that when we increased our 2nd penny to a full penny (.092 to .100) that developers would kick in another 50-60% in platting fees to help build arterial roads. That never happened. In fact taxpayers have kicked in around 8 to 10x more (from the .08 increase) than developers have. It really doesn’t generate much at all. When you consider we spend well over $40 million a year on roads in Sioux Falls (it may even be higher than that) platting fees only kicked in around $2.4 million in 2017, most of which came from US in that tax increase.

But there are some that think developers are literally paying to build our arterial roads, they are not, they are contributing, but not paying 100%. That’s why I really don’t understand this statement;

Sioux Falls real estate developer Darrel Viereck was one of the early backers of platting fees a decade ago.  Many developers didn’t want to pay the additional cost.  But Viereck saw the city was poised for a building boom, despite the recession.

When in reality, developers are not really contributing much of anything to our roads fund. But they can keep telling that same old lie.

Makes you wonder if TenHaken’s new COS gently nudged Stormland TV to do this story, or if Darrel was just bitching about something again. Who knows?



7 comments ↓

#1 anonymous on 05.24.18 at 5:32 am

The Council needs to request an internal audit and then a public informational meeting.

Show the taxpayers with actual numbers just how much or how little local developers have contributed to roads in SF.

Local sales tax was increased for this reason, let’s see the proof that developers have paid their share as promised.

#2 D@ily Spin on 05.24.18 at 7:30 am

Outside developers realize they shouldn’t do Sioux Falls projects. Especially when the city Chief of Staff is from the principal developer for most construction. There’s a double standard. One to facilitate Lloyd Construction and one to impose enough interference that other developers stay out of town.

#3 l3wis on 05.24.18 at 8:23 am

Anon- Back in 2015 Anderson asked why the breakdown disappeared from the financial reports. Before that they used to split up how much the .08 was putting in and how much the developers were. At one point taxes were contributing 13x more than the actual fees.

http://www.southdacola.com/blog/2015/10/sioux-falls-city-council-informational-meeting-parking-hikes-cell-phone-ban-platting-fee-disappearance-and-calling-a-spade-a-spade/

#4 l3wis on 05.24.18 at 8:28 am

Here is all my stories on it;

http://www.southdacola.com/blog/?s=platting+fees

This is the most interesting;

http://www.southdacola.com/blog/2014/09/city-government-time-machine-platting-fee-boondoggle-91508/

#5 l3wis on 05.24.18 at 8:30 am

Here is a KELO interview Stehly & I did;

http://www.keloland.com/news/article/other/sf-sales-tax-increase-not-meeting-projections

#6 anonymous on 05.25.18 at 5:42 am

l3wis,

Anon- Back in 2015 Anderson asked why the breakdown disappeared from the financial reports. Before that they used to split up how much the .08 was putting in and how much the developers were.

Those numbers are still available, they just do not want the taxpayers to see them. This is why the City Council must demand an internal audit.

#7 l3wis on 05.25.18 at 8:59 am

anon – you know this is just a push to get the 85th street interstate exchange project paid for by the taxpayers so the developers can cash in on developing this swampland.

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