Denny Sanford Premier Center

The Denty bonds have never been paid for with user fees

Remember former Mayor Bucktooth & Bowlcut’s mantra? Facilities/services should be paid for through user fees.

This has been the argument for raising sewer and water rates to pay the treatment plant bonds.

Yet, all of these facilities have NEVER been paid for through user fees;

Indoor Pool, Admin building, Huether Tennis Center and most famously the Denty.

The idea was certainly pitched that every ticket purchased at the Denty would have a fee attached to it to help pay down the $9 million a year mortgage. The former mayor responded something like this, “We will certainly look at it.”

While the Denty has done a good job covering operating expenses and management fees, it has contributed very little to capital improvement or paying the mortgage, both which come from the 2nd Penny (we all pay it when we purchase something in Sioux Falls).

A $5 ticket fee or more could easily be attached to the ticket price to help pay down the mortgage, other facilities across the nation do it, but SMG has said that artists and promoters set ticket prices and are opposed to it. Phooey!

How much did the city make from the Garth Brooks concert?

Yeah, I know, DaCola asked this question months ago, but I guess it takes a cute reporter from KSFY to get the answers (well not really);

The state made about $810,000 dollars on sales tax alone from Garth’s performances at the PREMIER Center.

The city’s take would be around $540K (1st penny, 2nd Penny and 3rd penny entertainment). As mentioned throughout the story, most of the money made went to Brooks and the promoters, which went straight out the door. This is why I have encouraged SMG and the city to start promoting it’s own concerts and keeping that revenue in Sioux Falls.

Maybe our Health Care Mega-Plexes should partner with Paratransit instead?

While it’s nice that Sanford has money for liquor licenses, suite’s at the Denty, Sports Bars, Basketball arenas and now a tourist trolley, shouldn’t Sanford & Avera be looking at a private/public partnership with Paratransit?

“We’re always proud to support services in our communities,” said Paul Hanson, Sanford Health executive vice president. “We know how much visitors love the Sioux Falls trolley service and couldn’t be happier to support it.”

While that’s great, I just wish our health systems would focus on ‘health’. I think a partnership with the hospitals and paratransit could be inked. Besides, I think the Trolley should be paid for out of the CVB’s BID Tax, but I guess they refuse. Well at least Sanford is fulfilling one empty promise from the former mayor and the CVB;

The trolleys also will be available as a shuttle service between downtown and the Denny Sanford Premier Center for major events throughout the year.

Premier Center entertainment district here we come!

Who signed off on the Events Center Siding?

I know what you are thinking. Haven’t we been down this road already Detroit? Yes. But while we have our suspicions as to who probably signed off on it, we have never had confirmation.

If I was a betting man, it was probably signed off by the head guru, Mayor Huether. That large of a change order would have had his approval in some form or another.

But did he actually sign off on a document or directed one of his minions to do it verbally?

I don’t know. But I have to wonder if it will appear before the runoff election.

While council candidate Brekke was digging through city documents there was no inkling if she came across such a document, doubt she was even looking for it. But I also think her access and finding the confidentiality order has led OTHERS to start digging around.

I know that some in the media and even within city government have gotten rather curious after Brekke’s press conference and I wouldn’t doubt some other documents will appear, soon. Will the change order suddenly rear it’s ugly head?

Even if we do find the smoking gun, I’m sure none of us will be all that surprised that it was the butler in the billiard room using the candlestick.

Dykhouse brags about taking down the naysayers

I guess after 4 years, the gloating continues;

Campaign donations from local business leaders, luck disguised as misfortune, excellent timing and smart advertising — those were the keys to winning public approval for a new arena in Sioux Falls, according to Dana Dykhouse, one of the facility’s boosters.

Dykhouse said those efforts were necessary to overcome a contingent of 6,000 to 7,000 people in Sioux Falls who, in his words, “will vote ‘no’ on everything.”

“We kind of knew that this was our one shot,” Dykhouse said, “and that if we got all the positive people out to vote and could overwhelm them, we could do it.”

And there is a lot of irony in the things Dana is saying. He is right, they had to get a high voter turnout to win this thing. People who have never voted before or who rarely vote in municipal elections.

Ironically, many of those first time voters who cast their vote in the EC election HAVE NEVER VOTED AGAIN in a city election. That’s right, a shiny new dented up building was and has been more important to them than actually electing people who represent us on local issues, like taxes and fees, infrastructure repair, clean water and public safety.

Oh, and the other irony in all this;

Dykhouse said he was part of four task forces and many fits and starts leading up to the 2011 election in which Sioux Falls residents voted 58-42 percent to approve the construction of a $115 million arena.

Voters never really ‘approved’ anything. It was a vote of the city council that authorized the bond sale for the Denty. If it would have been an actual bond vote, it would have had to pass by over 60% of the public vote. That was the ‘trick’ played by Dana and his little promotion group. It was an advisory vote that had no legal standing, that is why the council had to approve the bond sale.

Oh, but what about all the success?

Dykhouse said the arena was immediately successful and sold out 23 shows in its first year.

While that is true. Most of the money pulled in from those shows went straight to the artists and promoters, out of town. The Denty has acted as an entertainment revenue vacuum. It also doesn’t pay for itself, not by a long shot. After operating expenses, maintenance, and the mortgage, taxpayers lose between $6-7 million a year, that comes straight from our roads fund. I guess I would measure success with a building that at least would break even while generating tax revenue. And we don’t even want to go into the problems with the siding and secret settlement that we will be paying for dearly for decades.

My ONLY advice to Rapid City is when you vote on this, make sure it will be 1) equitable to your city 2) be a legal bond vote and 3) Find a different contractor than the one we used.