I’m going to break his comment up into pieces since it is kind of long, and I will add my commentary. This is from Planning Commission member Larry Luetke responding to a post Councilor Stehly had on FB about the Bunker Ramp;
Larry LuetkeÂ I really think there is more to this story. The city cuts off communication with their partners two weeks before their deadline of 30 days to respond to changes with the project. It is stated in the contract that the city must respond within the 30Â days. Either ok with the change, a modification or build what they were supposed too. There was no response back to them and contract was cut. It is fine if you don’t agree with the company that got it but there was a contract that was signed. Which puts us at citizens liable. Reading through the contract I don’t see where the city will win this one (I am not a lawyer). Which will put us liable for a lot of stuff beyond the 1.5 million that is short.
I’m with Larry on this one (I am also not a lawyer) but I do agree that modifying a contract is NOT unheard of, and when you cut off communication early, some wonder if something else was going on behind the scenes (not like that ever happens in city government 🙂
I think what is best for us is to allow the modifications to the project and allow the developer to start building. The lawsuit will cost us so much more.
He is absolutely correct, but we should have never taken out the bonds to begin with, and we should have halted this until we had substantial proof that the investment dollars were there from the developers. All we got was a lousy piece of paper that basically amounted to a IOU note in your piggy bank similar to when one of your older siblings stole from you.
Once finished it will bring in sales tax revenue and property tax to the city and county. Currently as a parking ramp it will pay no sales tax, no property tax and we will collect a minimal amount of parking fees.
As taxpayers, I never thought we would make much on this anyway, completed or NOT. This is why the city needed the 2nd Penny for collateral, because like most other projects we have bonded for over the past 20 years, we have had to have the 2nd Penny pay the mortgage. We have a very solid track record of multiple projects that will NEVER pay for themselves, such as the Pavilion, Events Center, MAC, Orpheum, etc.
I feel that it is our best interest in allowing the developer to move forward with their project. Some questions I would ask our city officials. If there was a meeting at one of the country clubs about another downtown hotel project in which a person said that we need to keep this quiet for a couple of weeks (which is the same time frame of when the city was not responding to their partner). Also a rumor is that the hotel project that I was just talking about was also in question of not being done because of the Village on the River project would be finished first and the other hotel would saturate the downtown hotel market. So because of that a certain project downtown would not move forward. The information I just stated is third hand but really has made me question what the real issue of why the city did not respond to their partner Village on the River.
I have no idea what project Larry is talking about, but if I was going to bet my ass on a guesstimation it would be the hotel and convention center Sioux Steel in partnership with Lloyd is proposing on that redevelopment project. But at this point, just pure speculation.
Also based on the contract the contractor is the one responsible for the performance bond. What I have heard from a partner of the developer is that this project is still a go with the modifications once the city agrees to their modifications. With the modifications they have more hotel rooms then proposed even without the extra two stories. Just as a disclaimer I have nothing to do with this project but feel based on my research and hear say we as citizens will be the burden of costs if we don’t allow this project to move forward.
Well, I hate to break it to you Larry, but the taxpayers were and are getting stiffed on this project either way. We were never going to get the parking spots we needed publicly, we paid too much for the spaces and foundation, the lease was a steal, and it is being built in the wrong place.
I will stay with my original emotions on this project – it was a bad idea out of the gate and should have NEVER even made it to a city council agenda. Thanks to Mayor Bucktooth & Bowlcut, another money sucking project he cooked up that is screwing over the constituents.