February 2014

More property tax cuts for the rich in Sioux Falls

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The Baker House, formerly Scott Heidepriem’s residence (I believe this photo, to your far left, was taken while Scott still owned it).

I guess if you can’t get a TIF to fix up your mansion, you can always get a historical designation;

A 98-year-old house and two other buildings constructed in the 20th century in Sioux Falls have received eight-year property tax moratoriums to help with maintenance and rehabilitation (through the South Dakota State Historical Society).

A home in the McKennan Park Historic District also received a property tax moratorium. The Baker House at 503 E. 21st Street is a Tudor Revival style of architecture that needs replacements.

While I think the State Theatre could use it, I am struggling with a private residence. Not only is it a behemoth three-story mansion, but besides being worked on (for over a year now) it is also been added onto. I think it is great that someone is ‘fixing up’ a historical home (for the record my house is 125 years old and could use some repairs) but to ask for a property tax cut? Seriously?

The wealthy already enjoy low taxes in South Dakota and NO income tax, now when they buy (an already well-kept) mansion, they want a tax break?

Oh, I can hear it already, I’m a hypocrite because I posted in the past about TIF’s for cleaning up older homes in the central part of the city. Trust me, when I talk about fixing up homes in the core of the city, this place DOES NOT come to mind. I live about a mile from the home and walk past it weekly with the dog. When Scott owned it, it was well taken care of, and after he sold it, I noticed the new owners doing a massive rehab on it. Don’t believe me, just drive by. It is straight EAST of the Tennis courts at McKennan Park on 21st Street.

Wonder who the new owner knows on the Historical Society’s board of trustees 🙂

Shouldn’t we be making the TIF application process less easy?

Before the first reading of the amended TIF application process was even presented, city councilors were already buckling (video) including mayoral candidate and city councilor, Greg Jamison (article);

Councilor Greg Jamison presented an amendment to the TIF ordinance but is planning a few changes before the next reading.

Instead of requiring each investor to list his or her name on the application for TIF financing, he’s asking that those with a stake of 10 percent or more disclose that they’re invested in the project.

Basically, if it is a $3 million dollar project and you invest $299,999.99 to the project, your name will be left off of the investor list. What’s the point of doing it at all? While I don’t think the legislation had much of a chance of passing the entire council anyway, this watered down version, even if it passes, will accomplish little of the original goal; TRANSPARENCY to THE PUBLIC of who is asking for government assistance through a tax rebate program. This isn’t about the developers, it’s about the public knowing who is benefitting from the programs. Jamison mentions in the meeting that the developers have told him that their investors are their ‘intellectual property’ and they don’t want to give that up. Well guess what? You don’t have to in a private development, but once you ask to borrow or take away from the citizens ‘intellectual property (our tax dollars)’ then it is no longer a ‘private deal’.

Obviously it is no secret that Huether and his wife have made property investments in this community. It is also no secret that Erpenbach is personal friends with some of these developers (Mike Crane comes to mind) and has received buckets of money in campaign donations from them (even though she doesn’t have a challenger). Some have asked me what kind of property investments her or her husband may have, heck people have asked me about the other councilors. Maybe this isn’t about protecting the ‘intellectual property’ at all but about protecting the council’s private investments in property?

Also, I am getting tiresome of the lip service the council keeps giving us on amending city ordinance. It reminds me of the ACA and the stripping of the most important part of the legislation, Single-Payer option.

Why does this council continue to propose amendments then bail or water down those amendments at the second reading? Lip service. It makes them appear they are ‘making changes’ when all they really are doing is shuffling papers.

Besides the investors being listed, the bigger, better change would be limiting TIF’s for their intended purpose, affordable housing and cleaning up blithed areas. That intention has been thrown by the wayside a long time ago.

Not to mention the money taken away from the tax rolls for specifically the county;

The growing number of criminal cases in Minnehaha County is putting a strain on the county budget and could lead to higher taxes.

It’s one of the biggest issues Minnehaha County Commissioners face right now with a county jail that’s bursting at the seams and a state’s attorney’s office that is overloaded with cases.

The county will likely have to build a new multimillion dollar jail in the next few years but the growth in property taxes isn’t keeping up with the rise in crime on the county level.

At the same time, city resources are increasing as sales tax revenues rise. This means more spending on police officers who are arresting criminals and putting them in the crowded county jail.

So while we are giving property tax rebates to the already sickly rich developers and their investors, while proposing property tax increases on the rest of us. Enough of the Insanity!

Shortage of professional jobs in Sioux Falls?

I didn’t find this story surprising, but just a reminder that there are not a lot of ‘professional management’ jobs in Sioux Falls (this person actually had to go to a corn field in Iowa to get that kind of job). I hear it a lot from friends with college degrees, people are not hiring professionals, and if they are, the wages are not there or the hours don’t match the salary.

She freshened up her resume, sent out numerous cover letters to countless companies and left no website unturned.  She was expecting a relatively low-maintenance process, given the Sioux Falls job market continues to thrive and outshine many similarly-sized cities across the nation.  According to the South Dakota Department of Labor, Sioux Falls’ unemployment rate currently sits at 3.1 percent.  Despite the low number, Orsack quickly learned not everyone finds the job they are looking for.

“I just came to learn it was very difficult to get anyone’s attention and to get a call back, to get an interview,” Orsack said.  “It felt like when they saw Las Vegas as my home address, they didn’t want to try because I wasn’t technically in Sioux Falls yet.”

The companies that did get back to her would not fly her in for an interview unless she footed the bill.  Faced with few job prospects, and positions that would bring severe pay cuts, Orsack felt exhausted and unwanted.

“I wanted to get home, and when you sit and you wait for months on months to figure out if you’re even going to get an interview for a job, it feels like you don’t have it,” Orsack said.

What I often see is that local companies try to get by with hiring fewer professionals (to save wages) and stretch the resources of their lower paid and qualified employees to the max.

Companies in Sioux Falls are not here, or didn’t come here to pay ‘high wages’ and to ‘hire’ multitudes of professionals. That is not how SD or SF recruits companies. CHEAP LABOR!

Doesn’t surprise me the runaround this person got. Had a friend looking to move back to Sioux Falls after going to college in Texas. She had trouble getting interviews because #1. She had an Austin, Texas address and #2. Though she grew up in Sioux Falls, and is very much white, she has an African American name (First and Last) and she didn’t start getting interviews and callbacks until she started putting her photo on her resumes, she joked, “Almost instantly.” And it’s not like she was a schlump, she was on her college’s honor roll in her field of study. She eventually got a decent job at an international  agri-business company, the pay and bonuses were good, but they also expected her to work 50-60 hours a week on a 40 hour a week salary.

She moved back to Texas. The only positive experience she had while living in Sioux Falls was buying a house here on foreclosure, fixing it up and using it as a rental for extra revenue.

Sioux Falls needs to make a decision. Do we want to continue to be the wasteland of call centers and low-paying professional jobs, or do we want to start sharing the wealth with the hardworking South Dakotans? The mayor can continue to talk about the low unemployment and high building permit numbers all he wants, but I wouldn’t consider these ‘Big Wins’ or ‘Successes’ until about 99% of the workforce in this community are benefitting, otherwise, it is just more smoke and mirrors from the administration.

Why doesn’t Central District City Councilor Michelle Erpenbach have a challenger?

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It was sure nice of Michelle to moderate a coffee for citizen advocate Cheryl Rath

We will get to the video in a moment.

Let’s first talk about Michelle’s record over the past four years on the city council. I am amazed when I see the other crowded council races and Erpenbach not having a challenger.

There is a lot of factors involved. Maybe some voters don’t know who she is, or what district she represents (Central) maybe they don’t know she is up for re-election? Either way, let’s look at her record;

• She has approved countless TIF’s for things like luxury hotels, condos and big box retail, taking money not only out of the city coffers but public education and the county’s judicial system.

• She has vehemently opposed transparency in the TIF application process (listing investors) Her donor list is full of TIF grantees*

• *She has taken donations from not only people who don’t even live in her district, but are clearly the top tier of ‘Special Interests’ in Sioux Falls.

• As the city council representative on the affordable housing board, she approved a loan to developer Ken Dunlap, the Planning Commission Chair, a clear conflict of interest.

• City debt has jumped almost $125 million in the past 4 years (sits at about $400 million), the council has to approve all expenditures the mayor’s office proposes (to put it in perspective the total city debt when Hanson left office was $99 million, when Munson left office it was $277 million).

• Erpenbach ignored her fellow councilors and put a $60,000 film projector expense on the agenda without consensus of the rest of the council for a private non-profit that has already received over $100K from the city. She often made decisions as council chair without input from the rest of the council.

• Erpenbach CENSORED and limited public testimony on a snowgate joint election with the school district (which would ironically only cost HALF of what a film projector does.) and postponed the vote for another year (if snowgates would have passed in the proposed election, they would be in full use this winter).

• She was the driving force behind the termination of city clerk Debra Owen, which resulted in having her replaced with three full-time employees. Ironically the reason Owen was fired was because they felt she wasn’t performing her duties as a ‘manager’ ironically, the people she ‘managed’ are still employed by the city. This was a clear witch-hunt and should have been discussed in the public square, to which the Open Meetings commission reprimanded the city attorney and city council for their actions.

• Erpenbach pushed for the Sioux Falls texting ban ordinance even after the state highway patrol and city police chief advised against it. Why? While it is blatantly obvious that texting and driving should be banned, #1 The state laws already existed (if you get in an accident while texting, you are charged with distracted or reckless driving, even without a texting ban) #2 This is clearly a state law issue and something a municipality should stay out of due to uniformity in state police reports, etc.

It is clear that Michelle has little knowledge of how to be a city legislator, and works strictly from her ‘personal agenda’. Special Interests and ‘feel good’ ordinances that only sugar coat the real job of a city councilor; representing the public’s best interests and doing it while being prudent with their tax dollars.

If anyone wants to run against Michelle, you will have my FULL support and expertise (I have followed city government for about 12 years and blogged about it for almost 10 years, I don’t think I have missed a public meeting in those 10 years.)

THE VIDEO

This is from almost two years ago (March 2012). Ironically, Rath had to jump in several times and correct Erpenbach on many issues, remember, Rath is a citizen advocate, not an elected official, or city employee. At one point, Michelle gave her her own microphone and told her to ‘hold on to it.’ Also remember that this was two years into Michelle’s term, Michelle wasn’t NEW to city business, she assisted with Community Gardens and sat on the Parks Board prior to being city councilor. There hasn’t been a ‘Coffee’ since with Erpenbach.

Some highlights from the video;

They got into a discussion about the ‘consent agenda’ on the city council meeting’s agenda, Michelle claimed that “You will see EVERY contract for the Event Center construction on that list.”

Of course we know that, that was side stepped by hiring a construction manager who keeps all those ‘little things’ secret.

Admits that TIF’s are a “Sweet Deal” for developers, referring to the soil remediation of the Hilton/CNA, parking ramp demolition by Lloyd.

Says that she tends to “Ignore the Planning Commission.”

She admits that while she was on the Community Gardens board that they were in violation of city ordinance and were unaware of it.

Claims that the EC contractors will be responsible for any cost overruns when it comes to the rock borings for the footings and any miscalculations. Ironically, the EC’s expansion was scaled back to 14,000 seats instead of 15,000 like promised in the campaign, due to rock borings.

She says as a council they MUST approve the mayor’s agenda, contracts, etc.

Admits the council doesn’t bring forth much legislation. Huh?! Isn’t that the job of the council? To be the legislative body?

Erpenbach famously calls the river the ‘Big Poo’ in one breath (in reference to the sewer backup problems) then in another breath justifies using the Morrell’s EPA fine/penalty money for environmental cleanup of the river to use for brick and mortar for the river greenway instead of actual cleanup.

Michelle has been more then a seat warmer on the council (Rolfing & Karsky come to mind) she has been damaging to our community’s reputation as a fair, transparent and fiscally prudent government, she has worked against all of these things over the past 4 years, and has taken her marching orders from big development and special interests.

It’s time we hand her her walking papers.

2013 Code Enforcement breakdown, Reward the Rich – Punish the Poor

You can look at the entire document here: code-numbers

By the numbers

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The map is interesting. Look where most of the investigations/violations are? In the ‘older’ and ‘poorer’ neighborhoods in Sioux Falls. While the city is consistently promoting more annexation and new development, they continue to ignore the core and older neighborhoods. Sure, some of these properties are run down, but just look at the streets and curb and gutter in these neighborhoods. The city can harass the personal property owners all they want about cleaning up their properties, BUT what’s the point of fixing up a property that sits on a street that looks like it was hit by a mortar round? The properties in these neighborhoods are a reflection of the PUBLIC property in these neighborhoods. Don’t believe me? Just take a drive around the areas in these maps, and tell me the roads are not crumbling. If the city wants the residents of these neighborhoods to clean up there act, instead of sending out code enforcement goons, they should send out public works employees to work on the infrastructure.

This administration’s attitude towards zoning and code enforcement seems to be Reward the Rich, Punish the Poor.

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