September 2022

Downtown Sioux Falls Bid Tax increase has no explanation on the agenda

As discussed earlier in the week, DTSF wants an increase to their special tax. But if you read the agenda item (Resolution #64). You will notice there is NO mention of an increase, just a renewal;

Section 1. That the 2022 special assessment roll for the Main Street Business Improvement District in the City of Sioux Falls, SD, is hereby approved. The assessment as set out in said special assessment roll approved this date is hereby levied against the property described therein and becomes a lien against such property upon filing of said special assessment roll in the City Finance Office.

I find it curious that The Dakota Scout brought this story forward with NO prior presentation or explanation from the city. So will there be an increase? And if so why is it NOT on the agenda?

DTSF has been trying to convey that need to its members who are subject to the special assessment. And earlier this year, the Main Street BID Board, made up of property owners and other downtown stakeholders, unanimously recommended the proposal be carried forward to the City Council.

Okay. So when was the public going to be told? One minute before the vote? Ridiculous.

City of Sioux Falls website needs $175K in furniture

I have heard some pretty funny explanations from city staff over the years as to why certain consent items need passed, but this one takes the cake (Item #6, sub item #26) (Allie is explaining why a web development company needs additional funding to build the city’s website);

One way to think about the difference between the initial agreement and amendment is if the initial agreement is building the house, the amendment is ensuring we have the right, high?quality and functional appliances, fixtures and furniture for each room.

I always heat up the blog in the microwave before posting 🙂

The city has already allocated $425K to rebuild the city’s website, this is additional funding. The price tag should be concerning. I have worked with web developers over the years and initially when the WWW was introduced there was a lot of manual coding that was very time consuming and expensive. That is really no longer the case. Charging per page to build this site is like buying a couch and getting charged extra for the cushions (see what I did there 🙂

I would understand if you were a small business asking a developer to build a website from scratch that included videos, an online store, etc. Many small businesses use outside IT services because it is just more affordable. But the city of Sioux Falls has 28 employees in the technology department with combined salaries of around $2.4 million. There is absolutely no reason why the city can’t rebuild the city website without outside consultation. It may have to do with the fact that after 3 directors have left they currently have no one running the department.

Mayor TenHaken pens rare Op Ed

Imagine my surprise when I found this Op Ed by the Mayor in the Argus today. I can’t remember the last time he wrote an Op Ed in the Argus (or should we say one of his minions). I suspect there has been some push back by VIPs in the community about crime prevention;

Our per-capita violent crime rates have been largely flat for the past decade, and that is true again for 2022.

While this is true when you compare to population growth, the crimes have become more violent and drug related. I’m not putting this entirely on PTH, even though he has had 4 years to do something about it. The past two police chiefs essentially hid in their offices doing little to address the drug related crimes. Chief Thum has decided to tackle it with 1,000 times more transparency than the last couple of guys but he does need the mayor, his boss, to step up.

The Sioux 52 Mentoring Initiative was set up to intentionally begin addressing challenges we were seeing with juvenile crime. 

I commend this program. Mentoring is essential to help keep youth out of trouble. After winning re-election PTH handed the program over to the HelpLine Center. I’m fine with that except when an elected official starts an initiative they need to stick with even after leaving office. It’s one thing to applaud mentoring programs but on the other hand turn them over to a private entity.

Crime largely has to do with economic status. I don’t believe middle class and lower middle class individuals in Sioux Falls ever fully recovered from the 2008 recession in which wages were frozen for several years. While businesses complain they can’t find workers and can’t afford to pay more, the problem is they never kept up to begin with, wages were stagnant for over a decade while the cost of housing has skyrocketed. The math just doesn’t add up.

It’s the tale of two cities. Over the summer I have decided to ride my bike through neighborhoods (logging almost 3,000 miles since last November) and came to the conclusion that 18th street (west to east) is the dividing line. The further South you go the better the residential neighborhoods, the further North, not so much. While there are pockets like extreme NE and NW for the most part the city is divided in economic status, infrastructure upgrades and housing.

When Janet Brekke was on the council she pushed hard for a pilot program to fix up some of these neighborhoods which would have required a heavy lift from the city when it comes to infrastructure. The solution the city offered was slab on grade tract homes between Brandon and Washington HS. Hardly what Brekke was envisioning. If we don’t address building density in our core for affordable housing in this community ASAP I’m afraid crime is only going to get worse.

Fighting crime means fighting for a more sustainable economy in Sioux Falls, FOR EVERYONE! As that line on 18th street gets wider crime is only going to rise.

Downtown Sioux Falls organization wants to increase the bid tax

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.

Sioux Falls Chamber admits Shape Places screwed the pooch on Wholestone Foods project

I am opposed to anymore packing plants in Sioux Falls and think a better approach would be chiding Smithfield to leave downtown Sioux Falls for good. But I also don’t believe in fairytales.

Since the beginning of this process I have been adamant that there is little the city council and mayor can do to stop this, and the Chamber pretty much simplified the reasons why;

The people of Sioux Falls approved our city’s current zoning ordinances by 65% in April of 2014.

This was AFTER the city council had already approved it and the citizens referred it to a vote. I voted against Shape Places because it removed many crucial conditional use directives the council used to be able to apply to projects. I believe that if Shape Places was never implemented, we may not have seen a council approval of a new packing plant because there would have been public meetings to address the conditional uses.

You get what you ask for.

Unlike Noem, I applaud the initiative process in this matter (even though this should have been a Charter Amendment that would have forced a special election within in 90 days of certification of signatures). It would have given WF little time to react with a grandfather trick.

I expect, even with the passage of this measure, that there will be some court challenges.