UPDATE: City of Sioux Falls Financial Director reveals how remodel will be paid for

UPDATE: If you looked at the finance reports I posted a link to earlier in the week you will see that Matt Paulson and Craig Lloyd were the top two donors to candidates. Heck, even Councilor Nutzert donated a $1,000 to a candidate to challenge incumbent Brekke. Which I find strange considering 1) Janet has more qualifications than anyone sitting on the council and 2) Has voted with the rubber stampers 99% of the time. As I have mentioned in the past, this is why you can’t get regular people to run, because the money elite will donate to the rubber stampers that will do their bidding. Also notice there is a lot of talk from Paulson when it comes to remodeling the new building, but once again nothing in writing and only days after council approval the dollar amount they were floating around has suddenly disappeared from the discussion;

Earlier this week, the Sioux Falls City Council approved a deal that will allow Startup Sioux Falls to move into the former Parks and Recreation Department building at Sixth Street and Phillips Avenue. The agreement provides a 10-year lease for Startup Sioux Falls at the rate of $1 per year. The space will be completely renovated at Startup Sioux Falls’ expense, creating offices for its staff, a modern co-working space and an event space for startup community events. This move will place the center of activity for new business formation directly in the heart of downtown.

As usual, follow the money, the rich give out their tokens and they receive the goodies from the taxpayers.

I had no doubt the city council would vote 8-0 to approve the new Zeal/Startup Center last night, but it didn’t stop me from testifying about the lack of transparency in the contract that should mandate they HAVE to spend $1 million or more on the remodel.

Of course several board members walked to the podium (after I testified) and talked about all the wonderful things . . . blah, blah, blah, but none of them, any city employees or councilors counterpointed what I said about having it in the contract in writing.

One councilor asked the finance director about the naming rights deal in the contract. Shawn admitted that the remodel plans haven’t been drawn up yet so they don’t have a price tag yet (even though they are fine with renting the facility for $1 a year). Then he explains that the money needed for the remodel will be likely generated by naming rights. In other words, there is the possibility Matt Paulson will likely front the money for the remodel in return for hanging his MarketBeat sign on the building.

I don’t care what kind of charitable giving people do in their personal and business lives, but it always pisses me off when that gift has strings attached when it involves public/private partnerships. Can’t these people just write a check and be done with it? Of course not, they need something in return, as if the $1 a year lease for 10 years isn’t enough? I understand naming rights when it comes to the Events Center and other facilities like that, but now we are doing it in parks and buildings that we should just liquidate. Why does the public have to be involved with this very scrupulous deal to begin with?

When Shawn said that the council ‘Will have to approve any naming rights.’ I just laughed, as if they would vote anything down at this point. What a bunch of Clowncilors.

Once again, another handout with the taxpayers holding the bag.



12 comments ↓

#1 freebies on 01.12.22 at 9:24 pm

i’m wondering if one of the first lessons taught to aspiring entrepreneurs at start up sioux falls is:
“here’s one way to keep your overhead low…get the taxpayers to pay your rent.”
also, if the city wants to give money away…as neitzert alluded to…they can give it back to me…and every other taxpayer

#2 Very Stable Genius on 01.13.22 at 5:38 am

I have a suggestion for the naming rights, how about the Institute of Meeting Law Violations Proximity? Maybe embedded inside there, there could also be a small closet office for the Taupeville Housing Society of Conformity as well.

( and Woodstock adds: “I think these names are too British”… “How about just: ‘Collusion605’?”… )

#3 Mike Lee Zitterich on 01.13.22 at 12:41 pm

As a small business owner myself, having been part of a family who has been actively involved in small business, I can assure you, “YOU’ are always doing everything possible to keep your costs as low as possible, whether that is managing your tax liability, maintaining operational costs of that lifestyle, to yes, managing your employees to be as most sufficient as possible.

My dad started his REPAIR SHOP in 1979, we taught each of us kids how to manage ourselves in such ways to always watch that bottom line, to best manage the business to maximize that profit, so we can achieve our goals, and have a decent life.

MY mother at one time had her own In House Daycare Service, we had nearly 15 kids at one point, each of us siblings were responsible to take charge to help operate that small home business, It taught me how to be responsible for others, and probally what has paved the way for me personally in being mentors, role models for children today.

Again, NO ISSUE here, I thank Mayor Paul TenHaken for partnering with START UP SIOUX FALLS to help the Small Business Community, with the goal to maximize our businesses, to create a great economy for tommorrow. The real benefit here will be to the residents as we attract more and more self employed workers to Sioux Falls which builds, as the Mayor likes to say “GROWTH”. And he is correct.

Stop Complaining, Relax, Enjoy Life, Have Fun.

#4 "Woodstock" on 01.13.22 at 1:39 pm

“Say, unrelated, but did you guys see where the Argus is no longer going to print on Saturdays starting on March 12th?”…. “I say the next day to go will be Tuesdays”…. “Eventually, where are the old people going to get their news, and they tend to vote more heavily in city elections, too?”…

#5 l3wis on 01.13.22 at 2:58 pm

Mike, just like the board members you are deflecting from the issue. Just because Zeal does wonderful things doesn’t require the citizens to be involved especially with a non-contract. You always assume that because I don’t like one aspect of something that I hate the whole thing. That complete BS. I just think there was a better way to do this. And if you want to start your own business more power to you.

#6 D@ily Spin on 01.13.22 at 3:48 pm

Call it ‘Ravenite’. It’s near Raven but was also the name of John Gotti’s social club.

#7 freebies on 01.13.22 at 3:53 pm

i, like scott, agree that zeal/start up is a good thing for our community. however, they are a business…i get they’re a non-profit business, but they are still a business. i don’t think my/our tax dollars should pay the apprx 1.5 million in rent value they’ve been handed. i had the same issue with the state theatre and with virtually every tif that’s been awarded to craig lloyd. sink or swim on your own. i might add, i don’t believe voicing an opinion is complaining.

#8 Mike Lee Zitterich on 01.13.22 at 8:08 pm

To be honest, I have never said anything about anyone nothing about you hating one aspect or not. I would not stoop to that level, cause we all have opinions. My comments above were simply me explaining my personal reasons why I like the concept, and how those of us in the small business community wish to begin engaging thru thru these kind of partnerships. Contracts come in many different forms, and dont always revolve around exchange in dollars and cents, I have have seen leases/rents drawn up where two people simply swapped labor for labor in order to work together as a form of payment. I have seen contracts drawn up where a person agrees to work for this guy, while instead of a monetary exchange, they accepted a ‘barter’ exchange for labor in pace of services. So, this is why I have no issue with this, and just cause there is no ‘promise’ to do something in this lease, does not mean the RENTER is agreeing not to spend his money or not. There is no guarantees in life, and I think the best benefit from this partnerhsip will be economic growth in the future.

#9 Fear & Loathing in Sioux Falls on 01.13.22 at 9:12 pm

Zeal sounds just like Zil. Zil was the once Soviet luxury car. Yes, the Soviets had a luxury line. It was the car of their political elite, who reigned over a rubber stamp legislature (Soviet Supreme), had an executive politburo which knew no open meeting laws, built dark and gray cylinder cement block walls, demanded allegiance to the state as an oneness, vodka was their chicken sandwich, and expected most to live in Soviet style housing (apartments). Strangely, this all sounds too familiar. Does it not?

#10 Blasphemo on 01.14.22 at 2:18 pm

…and just last May 2021 PTH was saying, ““At times we have to make sure it’s not growth at any cost,” TenHaken said. “We have youth crime challenges, we have some aging infrastructure to deal with, and we don’t have enough housing, and that’s what keeps me up at night. It’s not the excitement side of it. I’m nervous about crime and housing and the issues that come with growth.”

But then, there’s the inimitable wisdom of ML Zitt – “The real benefit here will be to the residents as we attract more and more self employed workers to Sioux Falls which builds, as the Mayor likes to say “GROWTH”.

Obviously, ignorance is bliss. The village idiot has both in spades.

#11 D@ily Spin on 01.14.22 at 4:04 pm

I still think this is just a mafia-like social club for the city criminal network. If it’s called a club and not a city council meeting, public transparency isn’t required. Business such as protection money, construction kickbacks, and inflated noncompetitive bid projects can be handled covertly. There’ll be no questions, interference, or ethics challenges.

#12 Further Fear & Loathing on 01.14.22 at 6:36 pm

DS is correct. It’s as if Taupeville has found a feather to stick in its cap and call it macaroni.

What does it say when government builds shelters for the homeless and the business elite?….: It means the middle man is stuck with a chicken sandwich.

MP and Thunehaken are into quasi. It’s not a new trend, but it makes things tight, and that’s how they like it.

Will the place be run like Antiques Roadshow? Will anyone be allowed to show-up with their treasured idea?

Is there really still room for another chicken sandwich?

Isn’t the Minnehaha Country Club good enough anymore?

The Elks became a jail. A depot has become a club. I prefer the Macamba Club, however. It was once a Sunshine. A boutique grocer in its day.

“boutique grocer” now that’s an innovation, or is it merely a play on words. And whose really being played here through all of this?

Clubbing is a new term for developing. It sounds better than tooling. Will a club fit in a toolbox? I guess we’ll find out.