“A lot of the on sales we do, we have some of the highest grossing, out-of-the-gate sale of just about any building around the country of our size,” Torkildson said.
Ever notice when we ever hear anything about the EC it’s always about breaking records, but we never hear how all that record breaking is benefitting the community, in the form of revenue coming back into the town.
Don’t get me wrong, I’m sure there are some positive numbers somewhere, but why are we not seeing them?
As a tax paying resident of Sioux Falls, sorry to say, I just don’t see much sense on paying the mortgage on a building that I will never use because I still have to pay another $100 dollars for a ticket just to walk through it’s doors. From my perspective, I have to take VALUE in the Events Center in how much it’s existence benefits my community as a whole, and that means in dollars and cents.
We do know some things. The EC’s mortgage is around $9 million a year. The EC operations are covered and then some, a net of over $2 million this past year. We also know that we paid (mostly the state) $1.5 million in taxes.
But here is what we don’t know or only speculate on. Where does the net revenue go? Back to the city to help pay the mortgage or in a secret SMG fund they get to play with for promotions, etc.
If the EC had approximately $20 million in sales last year, how much got redistributed in the community, and how much went straight out of town?
When will the CVB give us an educated estimate of how much money is spent in Sioux Falls by out of town concert goers? And how much tax revenue is generated?
While there are some positive things going on at the EC, I just don’t see how the city is benefitting financially from building the facility? Some would say ‘quality of life’. Sorry, but my life hasn’t gotten any better in respect to entertainment due to the EC, just more expensive.
I think it is time the city and SMG show the citizens just how much we are getting reamed while SMG and it’s associates are raking in the dough which never get’s redistributed in our community.
District 12 Rep. Greg Jamison’s House Bill 1166, introduced on the House floor Wednesday, aims to bolster South Dakota’s open records laws by making it more difficult for municipalities, school districts and any other governmental entity in the state to keep settlements of civil or criminal proceedings confidential and shielded from the public.
In 2015, the city of Sioux Falls did that when it agreed to keep secret a $1 million settlement it entered with contractors involved in the construction of the Denny Sanford Premier Center after some exterior paneling began to warp before the facility’s opening in October 2014.
“The bill is reflective of that,” Jamison said Thursday. “Clearly that was a problem and I saw an issue that needed to be addressed and here’s my chance.”
Stormland TV tried to polish the turd called the Events Center tonight, but still left us with more questions;
• The GM of the EC said tonight that people coming to SF for shows generate (private business) revenue and sales tax revenue throughout the community besides what is generated at the EC itself, but could not give us a solid number of what that revenue is, only saying it is a lot. There are formulas to determine these kind of things, in fact the Convention and Visitors Bureau has produced these numbers in the past. Have they been stifled because of the BID tax fiasco?
• The EC admitted they had a net operating revenue of $2.1 million, which is great, BUT;
Who gets this money? Does it go back to the city, put in the general fund to help pay the almost $10 million dollar mortgage each year? Does it go to help pay for maintenance of the building? Assuming the EC is ran like the Washington Pavilion (city owned building – privately managed) that all maintenance expenses come from the CIP not from the net revenue. And if the money doesn’t go back to the city (and citizens) where does it go? Who has control of it? SMG or the tax payers of this city?
• The EC paid in $1.5 million in sales taxes (assuming) that is from the 7.5% total tax rate that is almost $20 million in sales from the EC. Where did this money go? Promoters? SMG? Artists? Out of state suppliers? How much recirculated in the community or did it go straight out the door of SF? Can we get the breakdown of these sales?
While I am very pleased the place is entertaining people and is not sucking us dry on operations, I’m concerned the money the EC is generating is leaving our community while lining the pockets of a lot of people who couldn’t even pick SF out on a map of the United States while the citizens foot the bill for the mortgage.
No matter how you look at it, the EC did not finish in the black. Even if you add the $2.1 million with the tax revenue, you still come about $6 million short on the mortgage, that gets sucked out of our 2nd penny (meant for roads and infrastructure, not mortgage payments on play things).
Net operating income, which is revenue minus expenses, came in at $2,145,904 for the venue. Attendance increased by about 25,000 over the previous year to 671,098.
Besides the fact that the center can’t even cover a 3rd of the mortgage each year, I found this little tidbit a bit alarming;
The venue also wrote a check for almost $1.9 million for sales tax from the entire complex and Orpheum Theater Center. Of that amount, $1.5 million came from the Premier Center.
Now let’s assume that is total taxes (state + city + entertainment, 7.5%), that means the EC had about $20 million in sales last year! $20 million! and they only had $2.1 million left over after paying for operations? Where the F’CK is the money going? How big of a cut is the promoters, SMG and Ovations taking? And is that money staying in our community? Most likely NOT!
I told people before the vote, this venue is being built to make promoters, contractors and SMG a lot of money while we are stuck with the mortgage payment.
Giving away a very valuable and useful City asset to any organization, even a nonprofit organization, is setting a very bad precedent for Sioux Falls City government, and I will not support it.
I wonder if that means we will get our $500K back from the Huether Tennis Center, or $2 million back from the Development Foundation, or monies back from Children’s Inn, Compass Center and Bishop Dudley house?
ArtMaze, one of the better parts of Sioux Falls life in 2016
2016 has been a rough year for citizen activism. While it has been up and down here in Sioux Falls with many successes and failures to boot, it seems Washington DC has gone into full collapse as we allowed racist, sexist, hillbillies to elect our president.
But locally there were three things that stood out;
• Governor Daugaard claiming that voters were ‘hoodwinked’ into voting for IM 22, then getting the Pierre (in)justice system to go along with it. Funny how for over 40 years voters have been voting his party into power, and no word about ‘hoodwinking’ but once that corrupt power will be challenged, all the voters are idiots. As one official told me that used to work for Dennis, it’s not the public that are idiots, it’s Dennis. And his idiocy has been shining through.
• The South Dakota Democratic Party’s bottom completely fell out, and the people in charge patted themselves on the back. Insanity I tell you! Insanity!
• But one of the greatest achievements of the year is the Sioux Falls City Council’s change of power. The four new councilors have been flexing their muscles with a little help from Councilor Erickson, and while they have had a few missteps to start out, they have been learning from the battle scars. While ‘leadership’ of the council (Rolfing and Kiley) seem to be on a two man mission to rubberstamp all things Huether, shut down public input, and concoct false ethics charges against a fellow councilor (until they got caught lying like the snakes they are) they are becoming more and more in check. The city council has many big plans for 2017, and I have a feeling their agenda will push through easily as our lame duck mayor melts.
Let’s take a look at some the finer high and low points of 2016;
• The Huether Tennis center continues to block parking from other event attendees at the Sanford Sports complex though they basically stole $500K from taxpayers for the facility. Throughout the year there was several reports on cones and signs blocking the lot with not cars in it. But hey Mike’s Bride won an award this year and seemed surprised she did, without commenting that her check to the organization that gave the award wasn’t returned.
• The Sioux Falls City Council leadership and mayor’s HR department pulled a military retiree out of their asses for city clerk, a person who will be in charge of our city elections and hasn’t been registered to vote for years. He also proved his knowledge of official stamps when he stamped a petition without even bothering to read it. While Mr. Greco has gotten better over the year, the city clerk position should not be a $80K+ a year job as an apprentice, sadly being trained by one of his assistant clerks who has ten times the qualifications and applied for the position but was turned down. I’m sure it had nothing to do with the council chair’s view of women in the work place.
• Speaking of letting the mayor’s HR department and Leadership’s Mutt and Jeff pick the next internal auditor, the council barked loud enough that they did not want another ‘Greco’ pick. Not sure if the barking worked, but the person who was set to take the job saw the writing on the wall and turned it down. Hopefully the person who ultimately gets the position won’t be turned down because they shave their legs.
• The city continues to blow money on the Winter Wonderland Display, but the way the mayor has been cutting budgets these days, I expect next year’s display to be a couple of homeless barrel fire pits, sponsored by the Dudley House of course.
• After posting about the ridiculous corporate like raises the mayor has been giving to his management team, he turns around and still screws the minions with dismal raises again this year. I think in a special note to the city employees on their Christmas paystub he wrote, “I don’t care.”
• The city continues the FREE condom distribution program at area bars, and for some reason Monk’s is always emptied the quickest. Coincidence that is also a favorite watering hole of city managers . . .
• The Tuthill shooting case becomes ‘inactive’ and a tree branch shadow gets off scott free.
• The Erp wrongfully calls out local massage therapists as prejudice because they pointed out the ‘shower massages’ that were taking place around town. Apparently someone got a bad fortune cookie that day.
• The car rental tax and BID tax grabby-grabby fails in Sioux Falls, but the state legislature passes one of the most idiotic tax increases ever so our teachers are now just tied for last instead of dead last in pay. Out hoodwinking governor already has plans to rob the pot only one year after its passage.
• Hartford’s city government was in a state of collapse. Who really cares?
• The Levitt Pavilion is moving forward in Sioux Falls. It will be nice watching outdoor concerts sitting in the grass while battery acid is boiling beneath our asses.
• The Boulevard ordinance changes went into effect. Now stop worrying about rocks and plant a garden.
• The Washington Pavilion got a change of leadership after Darrin Smith takes over as President. So far he has only eliminated one director, but I hear the blood-letting has just begun. Now let’s throw another couple of million at the place to fix the poor construction to begin with. That will never happen with the Events Center . . .
• The Events Center cracks down on outside snacks and guns at events. We are all now safe from cheap fat people shooting us, but not in the parking lot.
• The Pottie Room war starts in Pierre and is guaranteed to return in 2017.
• A city council candidate throws a hissy fit over a post I wrote about his wife’s involvement with the Jesus plows and after threats to my employer I pull the post. He ends up taking last place in the at-large race. How’s Jesus working out for you now?
• Due to health reasons, Kermit Staggers decides not to run for a 4th term on the city council. His endorsement of Stehly puts her over the top.
• One of the youngest candidates in city history runs for city council. I apologize to Briggs for all the shitty things I said about him during the campaign.
• The Argus Leader sues the city for the details in the secret events center siding settlement. The Argus loses the first round but it is headed to the SD Supreme Court.
• On a similar note, the SON neighborhood is also awaiting a judgement in their Walmart suit with the SD Supreme Court.
• The Mayor and Q-Tip Smith screwup the DT parking ramp development by flapping their traps to soon, and the council later on in the year returns the favor and defunds the ramp all together for 2017. I still think the fiasco is what got Smith to seek refuge at the Pavilion.
• City officials throw a hissy-fit over Bruce’s camera at a city meeting we were invited to by then city councilor Kenny Anderson. Looking back on it now, I just chuckle.
• Bruce and I do a presentation on voter turnout in Sioux Falls at Democratic Forum and one of the mayor’s buddy developers in Sioux Falls tries to shut us down. When he fails, he walks out. Another casualty to transparency.
Yes, that’s right kids, the same contractor and siding installer is having all kinds of fun with their handy work over in Minneapolis. Notice the images below? Looks like their famous ‘design feature’ is popular, unless you use it outdoors.
Both moisture and wind have previously caused trouble for the $1.1 billion building that opened in August. The zinc panels on the exterior have been the focus of a couple of concerns on the building.
Thousands of zinc panels line the exterior of the building. They are 12 inches high and range in length from 6 to 12 feet.
Initially, the panels were only bolted down along the bottom edge. After heavy storms last summer, some panels came loose and flapped in the wind. Mortenson workers then reinforced the panels along the top edge so they wouldn’t stay down.
The movement of the panels was attributed at the time to unexpectedly strong wind pressure on certain angles of the building.
In an unrelated problem, Mortenson had to remove and reinstall some of the rectangular zinc panels to access and replace a faulty moisture barrier on the building. More than a year ago, workers noticed dampness on a parapet wall and pooling of water in a gutter.
Mortenson executive John Wood said the replacement of the barrier was expected to cost the company up to $4 million.
And what did we do with our settlement money? We bought beer coolers.
Strong winds Sunday night caused part of the soffit on the building’s north side to peel off. Wind gusts reached up to 55 mph, according to the National Weather Service.
I think it is time to take former councilor Jamison’s idea and start peeling back the siding in certain spots and taking a look of what is underneath. Of course, we may have to hold back on the new beer coolers.
From Cameraman Bruce: The panels were installed on light gauge 2 x 4 metal studs with maybe light sheet metal screws. The weight of the soffit metal panels was whipped up and down during the storm breaking the sheet metal screws, thus releasing the framing. This is on the north Side between dock doors and west door.
BTW, look at the insulation laid in the framing. Looking up in the hole I did not see where there was much other insulation or ways to hold it up. You can see the sheetrock for third floor?
What I don’t understand is how does soffit come loose that is hidden underneath a concrete barrier from wind? The only time I have seen soffit come loose like that in the construction business is when there is water damage from above causing pressure on the soffit to come loose. Be interesting to see how the city covers this one up.
Just another casualty of the EC entertainment district
All of Chucky Doll’s crying aside, doesn’t anyone else find it ironic that if he ultimately decides to close his buttrocker palace, that once again, we have proved nothing can survive at this area of town?
Sure the city is subsidizing a hotel and pub at a public golf course, but other then that, what is happening at this site? NOTHING!
Downtown was always the best place for an Events Center. Isn’t it ironic that the gentleman that pushed for a DT Events Center may behind the closure of an Arena area entertainment venue.
Funny how these things work.
I heard Hildebrand will be reading palms next week at Josiah’s coffee.
As the mayor is set to chew all of our butts (no pun intended) about smoking, he is taking the EC siding settlement money and building more beer coolers and expanding the junk food kitchens at the facility (Item #1, Consent Agenda).
First off, it is hypocritical to expand drinking at the EC while banning smoking. And secondly, we should have used the settlement money for what it is for, fixing the P.O.S. siding.
Still waiting for the City’s Risk Management department to tell us tearing out a 90 foot load bearing wall was an ‘Act of God’.
When is this mean streak towards us from God gonna end? She must still be mad we didn’t vote for Hillary.
UPDATE: It seems that not only can the entertainment facilities propose and stipulate their own smoking ban, it seems our libraries already have a ban on their property;
The following actions are examples of conduct not allowed on Library property:
Smoking, chewing, and other tobacco use on Library property.
So the bigger question is what exactly would a city council total ban on smoking entail? The ban already existed in parks and on library property, it CAN be stipulated at the EC and Pavilion. So what does that leave? The sidewalk in front of Carnegie and City Hall? Seems a lot of time an effort was put into a ban that technically already exists.
Especially a big thank you to Councilor Erickson for spearheading this effort. Her concerns were quite simple. She didn’t want a fine or criminalization of using a legal product, she wanted to keep children safe in our parks and she wants to further look at this ban, but she wants council involvement and do it in a studied, incremental way, not a ram-rod approach our mayor and his administration takes on these issues.
But there was a bigger question lurking in the shadows. Why hasn’t our entertainment facilities that are privately managed already implemented these changes? The Events Center already has a ban on concealed weapons.
Ironically, managers from both SMG (Events Center/Orpheum) and the Pavilion were at the meeting last night asking for the policy changes. So if they want them, why not implement themselves?
There is nothing stopping either one of them from posting signage and having a management policy that restricts smoking, say, 25 FT from the entrances to their buildings. Since they are privately managed, they can make these policy changes without the assistance of executive order, council direction or health department direction.
Maybe they wanted the council to do all of their dirty work for them? Funny how two managers that make well over a 1/4 million a year combined are not capable of making this decision, that they clearly support, but depend on our part-time council to make a decision based on something that was handed to them on a turd sandwich.
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