Thank goodness we have a new media source in Sioux Falls covering City Hall, otherwise I would not have had any idea DTSF was planning this;
Downtown Sioux Falls, Inc. (DTSF) this month will ask the Sioux Falls City Council to get behind a proposal to get rid of a decades-old cap on the amount of revenue it can collect on parcels within the boundaries of what’s known as the Main Street Business Improvement District (BID).
However, not everyone is on board.
Duff Robinson, owner of a pair of properties in the northern end of downtown, said he’s not opposed to lifting the cap. But he said DTSF could capture additional revenues with a more modest change to the special assessment.
Rather than leaving the base rate of the special assessment at $1.50 per $1,000 of valuation for downtown buildings and adding a 50-cent tax on valuation beyond the $1 million value, Robinson said DTSF could capture additional dollars by lowering the base rate and relying on the overall valuation increases assessed on downtown properties by the county equalization office and a reduced base rate for the BID.
“With an 18 percent increase in valuations, they’re going to get an increase anyway even if they don’t approve this,” Robinson said, referring to average assessment increases placed on downtown properties in 2021. “I’ve come to terms with removing the cap, but I just think they should flatten it out.”
Here’s a better idea, STOP HANDING OUT $50 MILLION DOLLAR TIFS FOR PARKING RAMPS DOWNTOWN.
Isn’t it ironic that DTSF is the first to hit the podium at Carnegie talking about all the TIFilicious benefits of Tax Increment Financing then turns around and asks for a tax increase to fund its organization. Make the organization DTSF and its employees a division of the city and fund it thru the general fund and parking fund.
When disgruntled, angry developers and bondsters look me straight in the face and tell me I am lying when I point out TIFs only raise taxes on the rest of us I gladly point to this proposed increase which is a prime example of how we give massive tax cuts to very top developments downtown then turn around and increase taxes on everyone else.
Duff is correct, the increase in valuations on properties over $1 million could cover the spread, if only they were paying 100% of property taxes on day one instead of 20 years down the road.
Just further proof that TIFs don’t spur true economic development just higher taxes for the rest of us.
All forms of welfare raise our taxes…. Or, add to the deficit. But, since Sioux Falls doesn’t have their own monetary policy, or capability, it’s probably the former.
I guess DTSF hasn’t issued a press release on this, henceforth the ‘press release media’ sources in town are left without material.
Imagine, if Sioux Falls had its own currency. It would probably work like Hobo Dough. But we would call it the Sioux Falls One, Five, Ten…. I think you get my drift. Our triathlon mayor would most likely be pictured on the front of it with some strange Mason/Chinese/Smithfield insignia or marker on the backside. I am sure that Citibank would have its hands on it somehow as well. Maybe Denny could be on it, too, but his would be the 100 bill. AND, when the Potsdam officials come to visit, they could exchange their Euros for some Sioux Falls Ones, and then pay a visit to our tribute Berlin Wall, which the locals call the Bunker Ramp. There would also be an elitist form of this currency, which is only accepted south of 57th in Nord Hari-bourgeois, that would be called Premier One, or would that be First Premier?
Another sophisticated con? The general population shouldn’t have to support downtown with subliminal funding.
“Make the organization DTSF and its employees a division of the city and fund it thru [sic] the general fund and parking fund.”
There are several issues with this idea. 1) Many don’t like the idea of growing the size of government, especially in the areas beyond its purview. 2) Salaries and benefits would likely increase which would drive up costs. 3) Delivery of service could become unpredictable as municipal priorities change.
There’s a reason there are thousands of BIDs around the world, and more are established each year—they are effective and provide a great ROI.
“When disgruntled, angry developers and bondsters look me straight in the face and tell me I am lying when I point out TIFs only raise taxes on the rest of us I gladly point to this proposed increase which is a prime example of how we give massive tax cuts to very top developments downtown then turn around and increase taxes on everyone else.”
The BID assessment is for properties in the downtown district. It is NOT a tax that citizens pay, and does NOT generate tax increases. BID and TIF are 100% mutually exclusive. The two should not be conflated.
“Duff is correct, the increase in valuations on properties over $1 million could cover the spread, if only they were paying 100% of property taxes on day one instead of 20 years down the road.”
The issue is that the BID assessment has a cap. A $1,000,000 building pays the same assessment as a $30,000,000 building–$1500. Only the first $1 million of property is assessed. The rest is untouched. Most properties with TIF are at the cap from day one.
If you’d like to learn more, visit dtsf.com/bid-growth-plan. I’d be happy to grab coffee with you, Scott, and discuss. I will present the BID Growth Plan to the City Council on September 13 at 4:00. Council will consider an ordinance later this year. Thanks.
– Joe Batcheller
Thanks for the explanation. Don’t you think a better way to go is to base on total valuation?