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.