There was a couple of stories today that show when developers in the Sioux Falls area want something, they suddenly have the money to pony up.
First the 85th exchange;
The project got through the IJR at the speed it did because the area landowners upfronted the money to pay privately for the report to be compiled.
They are committed to investing $4 million to get the project through federal approvals and initial design.
“You have a consolidated group of motivated businesspeople who own a massive piece of ground that’s going to open for commercial development,†said Jake Quasney, vice president of real estate and investments at Lloyd Cos.
Isn’t it funny, when there are millions to be made, the developers have all kinds of upfront cash to get what they want done and pushed through.
Just look at Journey’s $1 million land ‘Donation’ to the SFSD;
The district’s school board made the decision Wednesday for about $4.3 million and accept a $1 million donation from the company, bringing the total cost closer to $3.3 million.
Was this a ‘donation’ or just incentive to secure building a $90 million dollar High School (and possibly other facilities?).
With record building permits again this year, and all this CAPITAL the developers have to help secure future projects, one has to wonder if TIFs are even needed anymore in Sioux Falls?
Short answer; NO.
TIFS have become merely a spiff so that the City can have a seat at the table of development.
It is no longer about “blight,” rather it is now about attempted influence mirrored as insight.
#TIFs&Spiffs
Developers have gotten used to robbing taxpayers for seed money. TIFs are down payments on bank loans such that private entities are not at risk. The TIF process reminds me of the ‘Savings and Loan Debacle’. It’s dangerous when white collar criminals can capture and finance money without investing capitol. Drive through the Sanford Chernobyl on the northwest side of town. There’s streets without traffic, a vacant hotel, and a restaurant that closed soon after opening. We, the people, paid for this infrastructure with our taxes.
The guy that steals a gallon of milk for his baby gets 5 years in prison. The developer that steals millions walks away with a million dollar salary looking for another TIF deception.
That school, and who will profit from it, is already a DONE deal. This only seals the deal.
Warren Phear, how could you say that! Haven’t you heard the SFSD telling us about transparency?