2025

Major Manufacturer in SF bought out

I reported about this a few months ago, but held back on the name of the company before I saw more online activity. I found it today;

Anybody know what happened to Gage Brothers in the last year? Looks like they were bought out by Molin Concrete and now their ESOP is worth nothing as a result of the sale.

An ESOP (Employee Stock Ownership Plan) is a retirement plan that gives employees ownership in their company, often using a trust fund to buy company stock, aligning employee and shareholder interests for better performance, and serving as a valuable benefit or an owner’s exit strategy, providing tax advantages for both the company and seller, though it’s distinct from a 401(k) and involves complex governance by a trustee. 

This confirmed to me that Gage Brothers was bought out, which I knew, but didn’t really know the details of the buy out, including most of the employees getting screwed on the sale. As I understand it when the company was bought they were in serious financial straights and facing bankruptcy, basically their competitor bought the place on a fire sale, so if you had ESOP stock, it was greatly reduced in value. Some employees told me they got $0 from their investment after the sale.

It goes to show that leadership is important;

Their president and part owner died suddenly 5 years ago.  He had been with the company for decades and was the main visionary that oversaw their growth.  After that it’s been a sad fall from where they were.  They’ve been plagued by qc issues and the recent hudderite competition.  Sucks for the employees and sucks that a company that used to lead the industry has fallen so far.

Pretty crazy that a signature company in Sioux Falls can fall so fast when one of their leaders dies. I tell people, strong leadership is important, and why I have pushed for a city manager instead of an elected mayor. I also think open government is important to TRAIN the leaders of the future.

I’m surprised this hasn’t been a bigger story in the news. And what’s up with the Hoots in the concrete bizzo?

‘We got turkeys, watermelons and precast walls. And if you buy a precast wall today we will throw in a free drumstick a whole watermelon and three 10 year old hoot boys to clean your garage for an afternoon.’

Who can beat those prices!!!!!???

UPDATE: What should Mayor TenHaken work on that was neglected by his predecessor?

UPDATE: The original post was from May 23, 2018. It was my ‘wish list’ for the new mayor. I responded to my original post with CONCLUSIONS.

ORIGINAL POST;

Obviously, Paul has a pretty big agenda of his own that he needs to work on. But besides what he wants to accomplish (which we will include in the following list) what else should he focus on?

Transparency. This is a given that Paul promises to work on. It WAS the #1 issue in the last campaign. As I have mentioned besides more communication with the council and public, he must also focus on opening more contracts up to the public for review. This includes anyone applying for TIFs or other government grants and partnerships.

CONCLUSION: Not only did Paul do none of the above, he actually made open government worse. A lot worse. It is almost North Korea level.

Crime/Meth epidemic. Paul will get a little help in this department from the counties with the triage center. But he will also have to look at how our police department is handling arrests. With an overcrowded jail and a new one a couple of years away, the SFPD needs to focus on handling situations in the field, like I said, the triage center will help with this. Paul also MUST have a better relationship with the police union.

CONCLUSION: Drug crimes have gone down, but homicides were up and some of them involved drugs. The LINK was opened but it seems to be losing private funding and the next mayor is going to have to deal with that mess (if I were a candidate I would try to get that info before the election). He also started the Sioux 52 Mentorship program, which I applauded, then after a year, Paul bails on it and hands it over to the HelpLine center and takes our taxdollars to pay them. I would love to see a report from the HelpLine center and see where they are at with recruitment. I heard it hasn’t been good lately. I also don’t think this should be a city program, it should be administered by the school district. But that would make sense.

Reducing Homelessness/Hunger. I was impressed with what TenHaken said in a Million Cups debate, he said in 8 years he wants to put the Banquet and Bishop Dudley house out of business. While he may not attain that goal, he should really focus on getting more people off of assistance and on their own feet, this starts with . . .

CONCLUSION: Utter failure. Problem has gotten much worse.

Workforce development. This is a sticky issue for city government. They can’t really force local businesses to pay living wages, BUT moving forward when attracting new business to Sioux Falls they can ask, very forcefully to provide good wages. The council can even go as far as to shape policy around it.

CONCLUSION: I don’t think Paul’s work on this is a positive or a negative. Some good businesses did come here that provide hundreds of jobs, like Amazon, but Amazon was coming whether Paul wanted it or not. While I think it is important for a mayor to put on the charm offensive when trying to attract business, his main duty is running the city. Like I said earlier this week, we give millions to the Development Foundation to do this work. While the mayor should be in the loop, he shouldn’t be the lead salesperson.

Public Ambulance Service. While Paul hasn’t really taken a stand on it, that may be a good thing. I think the council could move forward with exploring the possibility and the costs involved. I think it would pay off in the end and would make our community much safer.

CONCLUSION: It never happened, but it is moving in that direction. I think when our current contract runs out the council will move to city owned with a local backup provider. Citizens right now are paying for ambulance pickups with SFFD mutual aid and receiving NO compensation from the ambulance provider. Taxpayers are assisting a for profit business and it is ridiculous. I knew this wasn’t going to be sustainable and the council finally sees it, at least some of them do.

Improving Public Transit. This was virtually ignored by the last administration. Not only do we need to make regular service better and more frequent, we need to get costs under control and look at privatizing Paratransit while keeping it affordable.

CONCLUSION: I have actually been impressed with the new transit provider, they seem willing to make significant changes, and ridership is up. But this contract should have changed in Paul’s first year, or at least an RFP and search put out there. It only took Paul 6 years to basically sign a new contract. So yes, mission accomplished, but took too long.

Revitalizing core neighborhoods. This can be done through revamping community development. One of those hurdles took care of itself yesterday when the director quit. Not only will this help to clean up our core neighborhoods it will help with the affordable housing issues we have.

CONCLUSION: COMPLETE AND UTTER FAILURE! Our more affordable neighborhoods are in shambles and the city hasn’t lifted a finger in 16 years (Mike and Paul). Paul just pretended the problem didn’t exist. This is why it took me 20 years to get MX torn down, and they didn’t even do it ALL!! This administration wouldn’t know rehabilitation if it hit them like a fart from our president.

Updating the city website. This could include a whole host of changes including being able to download city documents, improving transparency and having all the city board meetings available for review with at least audio recordings.

CONCLUSION: This task was completed and cost over $1 MILLION. Nothing has really changed and it is even harder to navigate, which I think was done intentionally because of the militant closed government attitudes. The next mayor needs to sue the last contractor and get our money back, then we need to hire a local firm to gut it and change it into an actual functioning transparent government website. I think the SD SOS’s website works better, and that’s saying A LOT!

Public Art Funding. I really think the city is missing out on a huge opportunity by not tapping into the entertainment tax fund to use towards public art. Public art promotes tourism and really defines a city’s quality of life. It also promotes local business by using local artists, artisans and contractors to work on the projects. And if nothing else, it makes our city more beautiful and cultural.

CONCLUSION: Yes and NO. When suggested these items 8 years ago, I would have never guessed that our mayor would have turned out to be an ART CENSOR. And that is NOT a badge of honor. If anything, that move actually damaged our local art scene and broke a lot of trust between the local artists and the city. They also consolidated a bunch of crap at the Pavilion and hired a Full-Time arts coordinator (still waiting to see her cultural plan that she contracted out). Paul knows about as much about public art as I know about rhinoplasty. He needs to stop.

Build a Skatepark with a public/private partnership!

CONCLUSION: This happened but not after the skate park association had to beg for private donations for 7 years! Paul could have funded this on day one and not make the volunteers beat down people for a city owned park but since none of his buddies were on that committee it wasn’t a priority for him. I still think the council and mayor looked like complete jerk offs for dragging their feet for so long on public funding. We piss away in operations at the Midco in 2 years what that skate park cost us, there is also $80 million in reserves. I think the only reason the association eventually got city money was because of a pass thru with ARPA Covid funding. So I guess if Covid never happened, the association would still be beating the streets for donations.

On a separate note, recently, Joe and Jennifer Kirby donated $1 Million to Frank Olson pool, which I assume would bear their names (thank you). But this donation took an interesting twist. When Don Kearney, Parks director was asked if this would reduce the $47 Million dollar bond to $46 Million (which would seem logical) he said NO. And when asked what the money will be spent on he said ‘Construction’. So instead of using this donation to offset the cost of the bond, they are just going to spend it as additional money. Oh, and it gets even better. This is NOT a yearly donation for sponsorship, this is a ONE-TIME gift. Which is usually NOT how it works. The sponsor would make a donation each year over a period of time. So the Kirby’s basically paid $1 Million for a permanent sign on the pool. That’s how the city handles transparency in this town. Jokesters. 

Some have asked why the Kirby’s are doing it this way instead of yearly payments. Because it is the end of the year and accountants have ‘suggestions’.

Support for Trump. How is that working out for you?

When our national nightmare ends the pundits will be digging up all the rats that defended Trump. If some of them don’t end up in a Federal Prison, their reputations will certainly be destroyed. And I am NOT shedding one tear over it. I hope to never see a Republican president elected in my lifetime after Trump’s term is up. And my wish may come true. A doctor today on Democracy Now predicted Sally Tomato is getting treatments for Alzheimer’s and that is why he is dosing off. If true, Trump really is living up to Reagan’s Legacy!

I bring this up because I found a post from May 2018 from Poops’ former deputy COS, TJ Nelson on FB;


Well TJ, us Libs think the same thing about you MAGAtts, who think inflicting pain on the lesser of us a positive world view.

Before this post I predicted that Paul would hire TJ and Beck, which he did. I believe both were terminated, which I also predicted. I ‘think’ I know why they were both fired, but we will never get access to the information since it is personnel stuff, so it remains a rumor at this point. Let’s just say that the mayor would have been justified in terminating them, and with one of them he wouldn’t of had a choice (it involved a citizen, and right after they me told about the incident, this staffer resigned because I believe the citizen filed a formal legal complaint).

UPDATE: Mayor Huether a finalist for the 2018 Golden Padlock Award

UPDATE: I have been reviewing the past 8 years of city government (2,800 posts) because I want to post about the highlights and lowlights and I found the below post. I found it funny that the city council is considering changes to public meetings, all meetings, when just 8 years ago when the council attempted to make this change in ordinance, which I have encouraged this council to do, Mayor Huether vetoed the transparency ordinance and it has gotten worse since. You can’t fix transparency in baby steps. The next council needs to pass a series of ordinances that address transparency and if they want to form a citizen committee on it I would be willing to serve. We need to stop the corruption and bleeding.

He may not win, but I’m guessing there won’t be a press release about this honor on the city’s website;

Sioux Falls Mayor Mike Huether: For going beyond even state law to shroud public business in secrecy. In early 2017, the city council passed an ordinance to require meetings of a city board to be recorded and published on the city website. Huether vetoed the bill and said: ‘Here’s the way (transparency) works: It protects you one minute. It stabs you in the back the next.’ The Argus Leader newspaper filed a lawsuit in 2015 against the city that went all the way to the South Dakota Supreme Court to get a simple contract detailing what the city called a $1 million refund from a settlement over flawed siding installed on a $115 million event center. After the court ruled in the newspaper’s favor in September 2017, the documents showed city officials weren’t telling the truth: The city received less than half of what Huether claimed. After the drowning of a 5-year-old girl in a park in March, the city defended its safety protocols by citing a 2016 audit officials said was conducted on the park. City officials denied the Argus Leader’s request for a copy of the audit, claiming it belonged to the insurance company. When the newspaper contacted the insurance company, reporters confirmed no such audit exists. Huether is term-limited but has indicated he’d seek public office in the future.

Surprised he wasn’t a finalist every year of his administration.

Charter Revision meeting was very entertaining

It is rare I watch an entire city meeting and am thoroughly entertained throughout. I highly recommend it.

The first thing I will say is it seems the chair of the meeting, Anne Hajek was the only one who knew what was going on as she had to tamp down the rhetoric from the city attorney and Rick Kiley and as other members said things that made no sense.

Right out of the gate, Kiley decides to take on Anne, um . . . mistake. But he is so arrogant he really took a go at it. First he thot he could just propose crap on the fly since he is a member of the CRC (he thinks the mayor should get paid $200K and councilors $40K. Zylstra thinks the mayor should get $250K, we will discuss in a moment).

Hajek reminded him that he needed to bring his proposal forward like the public and the attorneys office by sending a written proposal in advance of the meeting. Kiley realizing he couldn’t win the argument tried to get Fiddle-Faddle to defend him, he tried and also failed. Then Kiley pulled the ‘former councilor’ card and said ‘well this is how we did it when I was on council.’ and Anne quickly quipped ‘The council and commission have different procedures and duties.’ I always knew that Kiley wasn’t the sharpest knife in the drawer and he didn’t disappoint tonight.

CRC DOESN’T EVEN BRING A FLOOR VOTE ON TWO CITIZEN PROPOSALS

To add insult to injury the two proposals by citizens didn’t even get a second motion for a floor vote. I’m sure it had to do with Fiddle’s tired old advice he gave again today that basically proposals from citizens that make major changes to the charter should be voted down by the CRC. Yet Fiddle is proposing a change in the charter (next meeting) to eliminate the mayor’s salary from the charter which is a parlor trick that gives the council and mayor the ability to give themselves raises without citizen approval. Kind of sounds like a major change Fiddle? He basically said only UNELECTED staff can put proposals on the ballot.

The two proposals that were voted down were removing the mayor from council meetings and advanced TIF rules. I supported both of them, but I told Zitterich on his TIF proposal it may be a little early since the legislature is probably going to implement new TIF rules this session, then we can fine tune them to Sioux Falls next year and that was the exact reason the CRC voted down the proposal. But I will give props to Mike, all of rule changes are in line with what the legislature is proposing. It wouldn’t eliminate TIFs but they would only be for very specific projects like affordable housing and not 5-star hotel parking ramps.

CRC APPROVES CITY ATTORNEY PROPOSALS w/A FUTURE MEETING ON SALARIES

There was some language changes to the charter that have to do with budgeting and election dates due to the change in state law.

But Fiddle has another proposal, he wants to take the Mayor’s salary off of the charter. Like I said above, this will let them decide their salary instead of the folks who pay them. There are also other proposals. Joe Kirby proposed a 20% increase as a course correction, Kiley wants to pay even more as does Zylstra. I told Anne tonight after the meeting they should just do a COLA that matches the COLA of the city employees (non-public safety). Problem solved.

I also told Anne that in the middle of a recession this is HORRIBLE time to ask voters to approve raises, it will fail miserably like it did last time. They really are that TONE DEAF! If you don’t think council and the mayor get paid enough then why did you run for office? You knew what it paid, it was clear in the charter.

Zylstra brought up the argument of the CEO running the city. So tired of that stupid f’ing argument. The city is NOT a for profit business that designs over-priced square space websites or a predatory credit card company, it is non-profit, taxes in, taxes out in services. It’s NOT hard accounting. He felt that the mayor (elected) should be paid like a CEO or the School District Super (they are extremely overpaid BTW). Here’s why his argument is silly. When we elect a graphic designer to be mayor, he doesn’t have the expertise of a public administrator. This is WHY hired administrators like city managers or supers get paid more, they likely have a PHD in public administration. They get the job and that is why they get the salary they do. Since an elected mayor doesn’t have the knowledge or experience of a Public Administrator they rely heavily on staff and directors, which is fine. In other words, delegating the work instead of actually doing it. I think the mayor’s salary is just fine where it is at. The financial opportunities the mayor receives thru business relationships make him more coin then a silly salary ever would (you know, like getting $1 millon over appraisal on a building you sold). I also think we need to move to a city manager form of government and have a professional run a town of this size while the council is free to form policy with the cooperation of the city manager instead constantly fighting the mayor.

I also find the argument for a raise tone deaf because of this chart;

If you recieved those kind of scores in your yearly review do you think your boss would give you a raise? They would probably sh!t can you on the spot.