2017

UPDATE II: Legacy certainly has a Legacy

Guest post by Bruce Danielson;

UPDATE II: Seems a Legacy development got denied a state loan, and nobody is talking;

Seldom does this happen.

But, earlier this month, it did.

The credit committee for the South Dakota Board of Economic Development recommended a loan be made to a company.

Eight days later, the full board refused it.

When I emailed Erickson, who is board chairman, to ask about the loan denial, Erickson referred me to Stern.

When I talked with Stern on the telephone Wednesday, Stern said he was limited on what he could publicly say.

This post lays out several points I would like you to consider following the Wednesday December 27, 2017 press conference. This press conference was the first time the citizens of Sioux Falls actually were able to ask question of two city employees deeply involved in the parking ramp project. It now appears more employees should be brought forward to answer  questions. Here is the press conference link for you to watch:

I recently filed my 5th Board of Ethics complaint, I may be filing a few more shortly.

The Sioux Falls parking ramp proposal is a very curious proposal and so is the connection to Les Kinstad, Norm Drake, Larry Canfield as business partners. To calm the fears of a great many Sioux Falls citizens, there is a belief a grand jury investigation is needed into the building collapse. There seems to be a pattern of getting things done without permits and going until caught. This Board of Historic Preservation meeting is another time this group pushed the legal and ethical limits to just get something done. I guess this is what we do just to get things done or make it look like it. Now we have a dead worker and a missing downtown building. Once the parking ramp is under way, what’s to stop the guarantors from changing the work orders they gave their contractor when putting their building up with of our parking ramp?

BTW, during the construction of the hotel, will the ramp be open for public use? There is a growing concern around the country about issues related to parking ramp or building construction when connecting them together. Here are some results:

https://www.youtube.com/watch?v=tLiHsIk1RNQ

https://www.youtube.com/watch?v=uQdtqVe1Rpc

https://www.youtube.com/watch?v=BONh6oMN13k

https://www.youtube.com/watch?v=03ldg-M8jUc

https://www.youtube.com/watch?v=2aQMuhGleNA

https://www.youtube.com/watch?v=A2P1zCqbmKU

https://www.youtube.com/watch?v=XPe7c3Gpl7c

https://www.youtube.com/watch?v=3Y5nYkrti3A

Are these videos enough to question anything about our current concerns?

Think about this situation (PDF DOC: bohp_minutes_041311):

Norm Drake and Les Kinstad went to a Board of Historic Preservation after Ron Bell issued a Stop Work on the Security Building in 2011. They were just pushing ahead without approvals required. Work until they are stopped.

 Security National Bank Renovation

Les Kinstad, Scott Abdallah, and Norm Drake presented detailed information about renovation work at the Security National Bank building located at 101 S. Main Avenue. Interior building permits were granted prior to the start of construction but no exterior

building permits have been pulled even though work has begun on exterior window replacement. Because of this, Building Services placed a Stop-work Order on the project until the Board reviews the project and Building Services can review structural plans.

The Security Bank project representatives presented the Board members with some visuals of the building as originally built, to show what the exterior windows used to look like. The owner intends on replacing the window areas with something very similar. Keith Thompson made a motion to approve the work as presented and then to have the Board review the project again as it relates to the façade easement agreement, when the project is complete. Dixie Hieb seconded the motion. Motion passed with five members voting in favor of the motion and Anita Kealey abstaining.

So what is the full connection between all of these boards, people and events? I record these meetings so they can be studied and used for further proceedings. Sioux Falls city government has stopped the Council, boards and commissions from taking detailed minutes to limit the exposure, this appears to be why the administration fought so hard to prevent public recordings. There are several members of the public and press who are watching your actions, the administration processes and the curious connections with several outside entities.

As a side note, Norm Drake discussed his displeasure having to follow rules when building downtown Sioux Falls during this 2016-11-29 – Downtown Design Standards presentation I recorded.

On December 2, 2016 at 10:33 a.m. less than 60 hours after Mr. Drake was complaining about standards we lost a man and a historic building with a SiouxFalls owned façade easement. This happened one day after a curious property transfer happened and now we have their confession of insolvency. The Federal EPA has the ability to fine previous property owners for criminal wrong doing. Sioux Falls appears to say, let’s just get it done and damn the consequences. Remember, we lost a man and a historic building with a SiouxFalls owned façade easement.

What’s wrong with this? There is a reason for ethics. There is proper process. Where are the ethics and open process we must have to not let these things happen again. Why does the city continue to do the same thing over and over again thinking they will never be caught?

RELATED STORIES

Legacy gets sued by Irish Franchise;

Dublin-based Epcon, a condominium builder with 127 franchisees in 29 states, sued a Sioux Falls, S.D., franchisee whose projects never gained ground despite plans to build in one of the fastest-growing cities in the Plains states. Epcon said the owners, Norman Drake, Lynn Hinckley, Lester Kinstad, Bryant Soberg and Darrel Viereck failed to make scheduled franchise payments. It is asking a federal court to award it $200,000 in back payments and interest.

There was also a very familiar proposed parking ramp project in Rapid City, in 2009 (DOC: 0727_July27SpC)

UPDATE: This is what was used to stop Harsma Construction from further contracts with the city this past year. Pay attention to point 8 below and see how Legacy can be doing further business with the city?

GENERAL CONDITIONS FOR PUBLIC IMPROVEMENTS

Section 2. Bidding Requirements and Conditions

 2.10 DISQUALIFICATION OF BIDDERS:

The following reasons will be considered sufficient for disqualifying a bidder and rejecting the proposal or proposals:

A.    Submittal of more than one proposal for the same work from an individual, partnership, limited liability company, firm, corporation, or joint venture by the bidder or its affiliates.

B.    Evidence of collusion among bidders. Participants in collusion will not receive recognition as bidders for future work with the City until they are reinstated as a responsible qualified bidder.

C.   The bidder has been determined to be a non-responsible bidder by the City. A bidder may be determined to be a non-responsible bidder for any one or more of the following reasons:

1.    The bidder has inadequate experience, lack of organization resources, or technical resources to complete the project;

2.    The bidder or its affiliates have other incomplete projects which the City believes may hinder or prevent prompt completion of the project;

3.    The bidder or its affiliates are in default of contracts for previous or other current projects;

4.    The bidder or its affiliates have not satisfactorily performed, for the City or other owners, previous projects or other current projects including, but not limited to, the items listed below in this paragraph. Determinations of unsatisfactory performance on work for other owners will be based on written documentation unless the other owner is associated with the project to be awarded.

a.    Noncompliance with project requirements or the directives of the owner or its agents;

b.    Repeated or substantial failure to complete projects on time;

c.    Substantial corrective work required prior to final acceptance or during the warranty period;

d.    Instances of work or materials that failed to meet the specifications of the contracts but were accepted by the City with a price adjustment;

e.    Failure to provide adequate safety measures or appropriate traffic control measures that endangered the safety of the workforce or the public;

f.     Submitted false documents or misrepresented the quality or quantity of materials used or work performed in the bid or on other projects.

5.    Subcontractor or supplier claims against the payment and performance bond and/or the project proceeds on bidder’s or its affiliates’ other current or previous projects that may impede the ability of the bidder to complete the project to be awarded.

6.    Any other facts or circumstances showing a reasonable likelihood of the bidder’s inability to properly complete the project in accordance with the contract requirements.

7.    The bidder, its affiliates or their respective officers, directors, members, partners, shareholders, or resident general managers in arrears to the City in excess of 90 days, including any situation where the bidder was a party to a joint venture and the joint venture failed to reimburse the City for monies owed.

8.    The bidder, its affiliates, or their respective officers, directors, members, partners, shareholders, or resident general managers has violated Environmental Laws of any state or the United States (as defined above in General Conditions) which violation has resulted in a fine of $10,000 or more or has had any permit or contract revoked based on the Environmental Laws of any state or the United States.

Sioux Falls City Council Agenda, Jan 2, 2017

Fiscal Committee

City council will review non-profit contracts. This is important because they are trying to determine how much and who they will continue to give to in 2019.

City Council Meeting

Item #1, Consent Agenda, Seems we spent $10K on outside counsel for the golf contract. I guess there is no one talented enough in our city attorney’s office making 6-figures that could have crafted the document. Sad.

We are also giving the SF Arts Council $32K and putting $32K towards arts maintenance. While I don’t take issue with this or the amounts I have often suggested a different approach. I think the city council should craft an ordinance that stipulates a percentage (not a dollar amount) of the 3rd penny goes towards public art and services in Sioux Falls. Currently it is getting gobbled up by the Pavilion for maintenance and brick and mortar projects. The 3rd penny was originally created to pay of off the Pavilion bonds (they have been paid off for several years). It’s time to repurpose the money (since it is NOT going away).

Items#28-29, Repeal of the Parking Ramp contract and bond sales (1st Reading). Not sure how this will go, but hopefully it will get the 5 votes needed to move to a 2nd reading. I have heard rumblings that at least three other councilors besides Pat and Theresa are unhappy with the recent revelations over the Federal investigation and absestos dumping. There is also still new information coming out in the media. I have also been contacted by citizens who have been doing their own research on Legacy and their past business adventures. I will be putting up a guest post later tonight by cameraman Bruce and some of his findings.

Item#30, 1st Reading, Councilors Starr and Stehly are proposing to let voters decide if they want a majority or plurality in council elections. Rex ‘Walter’ Rolfing should have never proposed this to begin with.

Item#31, Resolution, ‘Siouxperhero’ award. Sorry kids, Bruce and I cannot be nominated, they have a ‘DaCola’ clause;

and nominations on matters of political controversy, events/organizations with no direct relationship to Sioux Falls, or individuals focused on political campaigns/events contrary to City policies will not be eligible.

LMAO! Sorry citizen advocates, you are to negative for our award.

Augustana plans major developments including a street vacation in 2020

Augie wants to close Grange Avenue between 33rd and 37th in 2020 (Item #11);

Traffic – Grange Ave. closure (2020): Applicant has indicated on the plan, their

request for closure of Grange Ave. between 33rd St. and 37th St. The Applicant,

Engineering and Planning Staff reviewed the closure at the time of the IDP

Amendment and provided the following comments regarding the street closure in

the future:

1. Reroute storm water from Grange to BMP

2. Combine un-platted parcels on Grange.

3. Properties addressed on Grange would have to be readdressed to 33rd or

37th St.

4. Any Xcel or MidAmerican Energy lines would be have to be relocated.

5. Must provide a route from 33rd to 37th (see amended plan)

6. Applicant doesn’t anticipate closing Grange until 2020.

As you can see, they have many developments in the hopper in their Initial Development Plan Amendment. It will be interesting to see how the street closure goes.

 

There is a School Board Election this Spring also

The Sioux Falls school district is teaming up with the April 10, 2018 municipal election. There are two seats up for grabs on the school board. They are currently held by Todd Thoelke and Kate Parker. Not sure what either plans are for re-election, but I have heard Parker may NOT run again.

So if it becomes an open seat, how money will be spent this time? $25,000? $50,000? Just to win a seat that pays $75 per meeting. As my friend’s son would say, ‘Diculous!’