Data Center will get approved tonight

This is just the re-zone. The company will have to have final plans approved by the planning commission and city council. As I have told advocacy groups and individuals, this is getting approved and the only way to stop this is with a petition drive, but I still question the legal authority of the Sioux Falls city council to pass this. This is NOT within city limits. In other words, the folks that live in this district (likely a township and NOT residents of Brandon or Sioux Falls) will have officials NOT elected by them making decisions about land use. It would be like the township board voting on a gas station re-zone within the northern most city limits of Sioux Falls. Not their jurisdiction, just like this is NOT. It is called the joint-jurisdiction area that still needs to be annexed in Sioux Falls. Until that annexation happens, the county and the township should have the final authority on this re-zone. I think there could be legal challenges to this as well as a petition drive. I know it would be complicated, but I think the petition drive could reflect a special election within the township this rezone resides. Probably only need 100 valid sigs.

WE WILL SEE ON WEDNESDAY MORNING

I’ll be waiting for all of these ‘supposed’ advocacy groups to present their petition Wednesday morning, but I am not holding my breath. I think they continue to beat their heads against the wall for job security reasons.

I think the thing that bothers me the most besides all the shady legal authority surrounding this rezone is our water and energy costs going up and our elected officials don’t seem to care. It is pretty sad.

So that took awhile

I let the cat out of the bag in December that Gage had sold, but I knew about the sale months in advance and was waiting to see if the local media would report on it. SF Bizzo was the first to report on the sale (which I am assuming she was PAID to print the article). My suspicions were correct;

The acquisition of Gage’s assets came amid significant financial challenges for the company. Gage became employee-owned when its ESOP was formed in 2007, and the value of that ESOP had dropped to 1.5 cents per share, which went to zero after necessary administrative and professional expenses were paid, according to a letter sent to shareholders.

It communicated that Gage “has navigated significant financial challenges” over the past several years, including “persistent cash-flow constraints, the general slowdown across the construction industry and the company’s broader financial trajectory,” which ultimately required pursuing an investor “to ensure the long-term stability of the business and protect the interests of its shareholders.”

The letter continued: “We know this is not the outcome anyone hoped for and sincerely regret the impact this has on you.”

The Gage real estate in northeast Sioux Falls was owned separately. Part of it was purchased in November for $14.4 million, according to Minnehaha County records, though it’s not clear what that includes. The property includes a highly automated 200,000-square-foot production facility that opened in 2019 at an estimated cost of $40 million and a two-story office building.

So why hasn’t the media touched this? Well, there is the obvious screw job to employees there is also the involvement of cemetery fraud). I found it funny that the company that BOUGHT* them was the one to pay a news service to break the story, this tells me the heat in the kitchen hasn’t been good.

*Talk about a misleading headline;

Gage Brothers becomes part of Minnesota-based concrete company

If I sell my house to another family, I don’t get to move back into the house I just sold them and become a PART of their family. The business SOLD to a competitor because they were facing bankruptcy, this isn’t a partnership.

UPDATE: Stormland is also reporting on it, after what appears to be a press release sent to the media. The the new owners are giving former Gage employees who stayed on with Molin a ESOP option with their company, but I am assuming those investments will start from scratch because if you were to bring in hundreds of employees in it would reduce the value of the ESOP stock for current Molin employees.

One Great City!

I LOVE this song;

I just replace ‘Winnipeg’ with ‘Sioux Falls’ and it makes soooo much sense. The last line in the song nails it;

And up above us all, leaning into sky
A golden business boy will watch the North End die
And sing I love this town
Then let his arcing wrecking ball proclaim

I hate Winnipeg (Sioux Falls)

So a foot soldier who actually reads regional news sent me this article about TIFs. Talking points are always the same and I encourage you to read the entire piece;

Politically, TIF is seductive. It allows elected officials to claim they are “doing something” about development without raising taxes today. The costs are deferred, opaque and spread across future taxpayers. But the long-term consequences are real: higher property taxes, underfunded schools, distorted development patterns and growing dependence on subsidies for projects that should stand on their own.

Pretty common sense stuff. Right? And the folks who wrote this article are not a couple of jokesters;

Julie Risser is an Edina City Council member. She previously served on Edina’s Planning Commission and Energy and Environment Commission. David Schultz is Hamline University Distinguished Professor of Political Science. Previously he served as a city director of planning, zoning and code enforcement and also as a housing and economic planner.

I have read hundreds of articles over the past decade about the destructive nature of TIF’s and have never understood why local governments get sucked in, besides the fact they are getting their personal palms greased, but I have never heard the word ‘SEDUCTIVE’ used. It makes SOOO much sense now. Not only are our national politics ruled by money and power (The taxpayers of this country just paid for a military operation to take the oil resources of an independent nation, wrap your F’ing head around that!!!) but now our local politics are now too. I think the upcoming city election is an opportunity for citizens to stand up this money machine and elect folks who won’t tolerate it any more. Don’t be ‘seduced’ by snake oil salespeople.

MY HOPES FOR THE NEXT ADMINISTRATION (Mayoral)

Somebody asked me last night what would be my ideal outcome of the next city election, and I gave a longer answer then I expected;

Greg Jamison as mayor, Christine Erickson as Public Information Officer, Joe Batcheller as his Planning Director and Jamie Smith as his Housing and Community Development director AND I would hire a trained monkey to be the city attorney. Notice I said ‘trained’.

What did I tell you about the ‘Rich Party’? (H/T-MZ)

So check this out;

Isn’t it interesting the city is cutting funding to several struggling NGO’s in Sioux Falls but not the Development Foundation, even after receiving $15 million from the state just 2 years ago they magically still got around $500K from the taxpayers of Sioux Falls this year. Disgusting. Oh and the over $100 million in TIFs and other tax rebates.

I can guarantee you the reason funding was cut from the MCC was because DHS and the Feds threatened ALL Federal Funding to the city if they didn’t cut immigration services funding to orgs like LSS. This has nothing to do with making ‘tough choices’ this is just blatant racism from Sally and his cohorts and the city could have lost millions in Federal grants for infrastructure projects. Will the city ever tell us this? Highly unlikely.

I’m telling you, the RICH PARTY in Sioux Falls stays on TOP because they control the money and they take the money.