Entries Tagged 'Development' ↓

This place would have made a great apartment complex for nuns

A few weeks ago when Avera came to the city council for permission to bulldoze a block of affordable housing to build a retirement apartment for nuns, I thought to myself ‘Why doesn’t Avera just rehab the house across the street for apartments?” Remember when Avera said the house was in to bad of shape to rehab?

I walked by today to see that was NOT the case. It seems a private builder is working on the house to convert it into a 4 or 5 plex (by looking at the electrical box). A parking lot has also been already poured.

Wouldn’t this have made a great place for retired nuns volunteering their time at the Hospital?

85th Exchange Meeting

Taxpayers, get ready to get bent over the barrel, this is going to cost us. This project will be getting not only State and Federal money, but also money from Tea, Lincoln County and Sioux Falls. Tea has already raised taxes in order to save up for this. I guess I really struggle with growth for growth sakes, especially when the core of our city needs a major re-hab and more density. Do we really need another retail center or could we diversify our core? More money dumped into developers who want to turn up cornfields and swamp land instead of investing in our core.

UPDATE: Is Sioux Steel Development looking for a ‘Massive’ Record Breaking TIF?

UPDATE: Big Thanks to Snevelicious for following up on this story!

So this is taking place next Thursday, April 11 (City Council Meeting Calendar)

4 PM Architecture Ideas and Presentations

Held at the receiving building of Sioux Steel Company, 196 1/2 E. 6th St.

Please park on the west side of the Sioux Steel Building or in The Market

5 PM Heavy appetizers and drinks at The Market, 196 E. 6th St

The Sioux Steel Development folks have already mentioned they want to build a 900 stall parking ramp (or around that size) they have also mentioned using TIF. What they haven’t said is how much. I believe the largest TIF ever given out in Sioux Falls was for the Sanford Sports Complex (I can’t remember the actual dollar amount, but I think it was $9 million and I believe 20 years). The rumor going around is that the Sioux Steel will be asking for a TIF in the amount to cover the construction costs of the parking ramp a number that could range between $20-30 Million dollars. The largest TIF ever given out in the history of the city. It also seems the event next week is away to smooze the city council into this.

Some would look at this as an ‘opportunity’ for the city to get out of paying for a parking ramp like we did Downtown already, but as I look at it, we shouldn’t be contributing anything. TIFs are the largest form of corporate welfare. We should be focusing tax incentives on rebuilding our neighborhoods.

Oh, but it gets even better. Another developer is rumored to be offering the city to buy some of the RR redevelopment land. He said he doesn’t want any TIFs or tax reductions, but he is only willing to pay HALF of the appraised value. They always have to have something. This developer has already raked the city over the coals for other DT developments along the river greenway.

I think it is ironic that all these FREE market, ant-socialist Republican developers in town are the biggest socialists of them all. Maybe we should rename the area ‘Karl Marx Greenway’.

As I predicted, Sioux Steel site wants to get TIFilicious

And they are partnering with the King of TIFs, Lloyd Companies;

The steel manufacturer is partnering with local developer Lloyd Companies to redevelop the company’s nearly 11-acre property along the Big Sioux River north of East Sixth Street, it announced Thursday afternoon.

Rysdon said future parking needs will likely include the need for a parking ramp on the site for both visitors to the hotel and convention center as well as nearby attractions, and will likely involve asking the City of Sioux Falls for tax-incremented financing (TIF).

“The city talked about 3,500 parking spaces within a five-block area, but I just don’t think, without a ramp, that Levitt Shell is going to see the same volume of traffic that it could,” Rysdon said. “The success ultimately depends on us working together to build those cultural, iconic experiences and in that way, we’ll build an engine for growth here in this city.”

As I have said in the past, I take serious issue with giving Sioux Steel a TIF to clean up land they polluted for almost 100 years. You created the mess, you clean it up on your own dime. If the city needs your parking, we can lease it from you.

As for parking why not WALK or RIDE BIKE to an outdoor summer concert? We have a bike trail from two directions that go into the Levitt as well as several streets. There really is no reason you need to drive your car to events there, since you won’t be able to cart your own beer cooler in anyway.

Important meeting Wednesday about 26th street interchange

Are Developers paying too much in Platting Fees? Absolutely NOT!

If anyone has been paying too much for NEW infrastructure and development, it has been the tax payers of Sioux Falls. When the 2nd Penny sales tax was raised to a full penny over a decade ago to fund infrastructure expansion, the promise was developers would put in 40-60% into that fund in platting fees. That hasn’t happened, not even close. In fact, taxpayers at one point were putting in over 10x more into that fund then the developers.

Well apparently some developers are now crying the platting fees are too much (about $20K per acre on vacant lots in undeveloped areas). Sioux Falls City Councilor Greg Neitzert talked about it in a recent post on his Facebook page. He seemed to be sympathizing with the developer because they used the tired old excuse that they pass those prices to the consumer of the new development. Well duh. The consumer is getting brand new sewer, water, and roads, why shouldn’t they pay the cost? How is charging me extra in sales taxes fair? What do I get out of it except higher taxes and water/sewer rates?

In about 50% of US cities with populations of 25K or more they charge the developer a 100% of the cost of new development infrastructure, so current users are not subsidizing new growth. This makes sense, because as I have often argued, new growth without a plan to pay for it, makes no sense. Slow growth that is properly funded is fiscally responsible to taxpayers. When developers don’t have enough workers to build their developments, that should tell us that maybe the ‘growth’ isn’t needed. Who are you building and expanding for?

I think we should eliminate platting fees all together and have developers instead pay for the entire cost of new infrastructure. If the NEW development is really truly needed, it will pay for itself. That’s just common sense.

Is the Lloyd Companies using city property as staging grounds?

I took the screenshots below of the construction site of Lloyd’s project, Cascade. It looks as though they are using Falls Park East as staging grounds. I wonder if they are leasing the property? Maybe they are?

While they did give us leftover dirt for the Levitt project (so they wouldn’t have to pay to haul it off). They also got a massive TIF for the project, and the taxpayers sat on the land for over a decade with NO property tax revenue coming in, and no good faith money, just a promise and a song. Hopefully they will re-seed before they pull up.

Cooper’s retirement is no surprise, and neither will be his replacement

There has been plenty of public and private conversation about Mike’s retirement;

After a 32-year career with the city of Sioux Falls, Director of Planning and Development Services Mike Cooper Monday announced plans to retire from municipal government next spring.

Before the TenHaken was even elected, there were plenty of people saying Mike would retire in 2019. You can’t blame him, he put in his time. I also don’t think he was forced out. I think this was a planned process that Mike had full control of.

His retirement isn’t the grand mystery surrounding the announcement, this is;

The city will conduct a national talent search to fill the Cooper’s position as director of Planning and Development Services. The director is appointed by the mayor with advice and consent of the City Council.

Why waste the taxpayer’s money? I have said all along that former city planner and now COS, Beck, was going to replace Cooper. Maybe I am wrong, maybe she likes signing Paul’s executive documents and baby sitting TJ NelsOver, but I’m guessing someone who has spent a lifetime in planning and development and went to the same school Cooper did (Metli-Lloyds Planning Academy) is gearing up to take the job. The planning/community development re-org, the rah-rah sessions about TIFs and various other policy decisions Beck has been behind make it pretty clear who is ‘seeking’ that position.

Of course, the administration will put on a big show, but seriously, just spare us the smoke and mirrors, appoint Beck in April when Cooper leaves, and save us the drama.

Further proof TIFs produce NO economic growth

Once again, we are probably going to break building permit records;

With one month left in the year, the valuation of building permits in Sioux Falls is $4 million shy of the 2017 record.

Permits through November totaled just less than $735 million. At the same time in 2017, it was $663 million. That year ended with a total of $739 million. In 2016, the total was $702 million, which also was a record.

As I have pointed out, further proof that the development community doesn’t need tax incentives like TIFs, they are flourishing on their own. Some would even argue our fast growth may hurt us in the long run.

So another TIF study, this time in Missouri (St. Louis and Kansas City) shows there is very little economic impact from TIFs;

Overall, the analysis conducted in this study finds no support for the claim that TIF generated tangible economic development benefits in either Kansas City or Saint Louis. In other words, we do not find evidence that the use of TIF generated economic development opportunities that would not have arisen in the absence of TIF.

This article I think says it best;

Until cities and states adopt meaningful reforms, we can expect developers to continue asking for taxpayer subsidies whether the need is real or imagined. And as long as politicians are willing to oblige the developers, taxpayers will be all the poorer.

I couldn’t agree more.

Was the RR Relocation project really the biggest accomplishment of the last mayor?

As we have been seeing, there have been some kinks in process. The only prospect to bid on the property so far is having issues with the quartzite and may either pull out all together or drastically change the project.

I have NO information on either.

But recently it has come to light that Bucktooth & Bowlcut may have killed it all together by asking for impossible demands from the Railroad. Of course, as I am finding out, the RR does whatever they want to.

The project was pretty much dead until some other big shots intervened and all the demands were dropped.

Maybe B & B getting the project totally killed would not have been so bad after all? Nothing really has changed for DTSF residents. Still tons of train traffic and noise and questionable storage of cars by the river and parks.

I still maintain that the RR Relocation project was one of the worst negotiated projects in the history of our city.