Entries Tagged 'Developers' ↓

UPDATE: Sioux Falls Developers want to use trickle down economics to build affordable housing

It didn’t work when Reagan proposed it, and it won’t work now. IRAB (INFRASTRUCTURE REVIEW ADVISORY BOARD) is proposing waving platting fees for new housing developments;

INFRASTRUCTURE REVIEW ADVISORY BOARD (IRAB) MEETING IS SCHEDULED FOR JUNE 1, 2022, AT 8:00 A.M. LOCATED AT THE DOWNTOWN LIBRARY, 200 N DAKOTA AVE, SIOUX FALLS, SD

AGENDA:

1.     Approve June 1, 2022 Agenda

2.     Approve May 4, 2022 Meeting Minutes

3.     Light and Power Update – Developer Procured Street Light Materials

4.     Proposed Revisions to 96.220 – Arterial Street Platting Fee

5.     Proposed Revisions to 51.065 – Water Distribution Platting Fee

6.     Proposed Revisions to 51.118 – Recovery of Cost of Storm Water Drainage System

It seems developers want tax breaks for building new homes, and they will supposedly pass those savings on to homeowners. That will NEVER happen. The demand for housing is at such a high level right now developers have ZERO reason to pass on those savings, they will likely pocket the savings.

DOCS: Agenda, Distribution, Drainage, Streets, Minutes of last meeting.

UPDATE: This story lays out why housing is so expensive. WAGES!

My New Coloring Book!

It’s going to be an interesting Friday in Sioux Falls

There has been a rumor floating around today that Mayor TenHaken plans to have a news conference tomorrow afternoon at around 2 PM at City Hall concerning a new development downtown.

I guess a deal has been in the works to finish off the rest of the Railroad Redevelopment site just east of the 8th and RR Building. The two proposals floating out there are workforce housing (market rate apartments) and luxury condos. I can’t tell who the competing developers are or if this is what the rumored press conference is about, but the timing of this supposed press conference is interesting considering the council suddenly posted today they are having a 1 PM working session on Friday, that has NO public agenda items except public input and they go directly into executive session. Maybe they should have just called a City Council Poetry Reading since I find it laughable they are calling a faux working session so they can be told something privately.

These folks are so sloppy.

Councilors and council staff are not allowed to tell the public what goes on during the session, but I can make some guesses. It could be about the development Poops may announce (sneakily telling council only a few minutes before he announces a proposal to the public) or it could be a settlement has been reached with the Bunker Ramp and that could be the ultimate announcement?

My head has been spinning for weeks while watching Paul pack 4 years of his do nothing term (that he didn’t sign up for) into a few weeks of getting something done. Maybe he will announce he is cancelling the election because his opponents don’t have a snowball’s chance?

At this point nothing would f’ing surprise me.

HB1033 Amended to block Developer Welfare Cookie Jar


Not everything that happens in the legislature this year is a total toilet flush. HB1033 which provides $200 Million towards housing passed after being amended to leave the welfare developers hands out of the cookie jar.

Section 6. The executive director of the South Dakota Housing Development Authority shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this Act.

Originally the private contractors and developers wanted a portion of this fund to carte blanche build whatever they wanted  whether it was affordable housing or not. Now the SDHDA has the power to make sure the funding goes towards worthy accessible housing projects. The private developers still get a piece of the pie if they are willing to help build affordable housing.

Failures of the RR Redevelopment negotiations rear their head again

And here we go, throwing more Federal money at the project and it’s an EMERGENCY even though the trains have tooting their horns through SF for over 100 years!

While I don’t oppose creating quiet zones throughout the city (even though we know this is probably for DTSF exclusively) it is pretty obvious we have to do this because we failed to remove the RR tracks from downtown during the negotiations. While it will make DTSF safer with the crossbars, the only noise it eliminates is the sirens from the trains, you will continue to hear them barrel down the track and cause traffic interruptions.

I have NO DOUBT the Feds will probably reimburse the state, but you have to admit since we didn’t successfully remove the tracks from this area to begin with, we are just playing a game of whack a mole and this is the latest.

So far the developer in this area has received millions in improvements to the River Greenway, a significant discount on the land, multiple TIFs (to build condos) and now another $5 million to create quiet zones next to those condos.

Here’s a concept DON’T BUILD CONDOS AND APARTMENTS NEXT TO A RAILROAD TRACK, or better yet work with our Washington delegates to get the tracks torn out. Nope, let’s just keep throwing tax dollars at small bandaids that doesn’t fix the bigger problem TRAINS RUMBLING THROUGH DOWNTOWN FOR NO DAMN GOOD REASON!

City of Sioux Falls Finally gets it together on housing, maybe?

So after our unemployment rates drops to almost zero, and we have more warehouse jobs than workers, the city finally engages on a housing plan, read it HERE.

While Director Matt Tobias’ (not sure what his title is since the Poops Admin likes to make up fancy titles every 3 months) presentation was the best I am not sure why it took a decade and a massive board to finally implement a plan just a couple of months from a city election. Matt made great points that I have been harping about for years like promoting the community development programs, increasing the income level of qualification and pushing for up to $30K loans at 0% interest.

Like I said, glad to see the wheels turning, but I am also wondering why it took so long. We have known for over a decade that the city was growing at an enormous rate and density in our core was crucial. Many administrations, private non-profits, councilors and developers have talked about it. In fact I attempted to bring in the Strongtown’s founder over 10 years ago to speak on it, but I couldn’t get enough people to help donate to his gas money and hotel room. When he eventually came, I had to chuckle when people said to me if I had heard of him.

I will tell you why it has taken so long to get the ball rolling; GREED and the cornfields are running out.

Just listen to what Greg Neitzert said about it, once again defending the developers and contractors and how gosh darn it, they need to make money or the plan won’t work. I agree, anyone in business for themselves needs to make a profit and they need to eat, but I have rarely met a large developer in this town that is living in central Sioux Falls in a 900 sq ft home. With their profit margins, no state income tax, low labor costs and multiple tax incentives, they do ok. There is absolutely NO reason why they can’t do projects in the core building density and NOT make money.

I also look at this as LOCAL economic development. Most of the smaller contractors that do this kind of work are local, they live here, their workers live here and likely they buy materials and tools here. That all gets recirculated into the economy.

Don’t fool yourself, these policies have been researched for a long time, but like most things in this city and even country, if someone can’t figure out how to gouge the consumer the feckless leaders don’t act. This is one of the main reasons it infuriated me that they are asking for a raise. I guess they think they need to be paid more for doing less.

Sioux Falls Developer trying to get TIFilicious in Rapid City

It shouldn’t be a surprise that this developer is asking for a TIF for a project that doesn’t supply ANY affordable housing;

The apartments will start at around $995 for studios, $1,295 for one bedrooms and $1,895 for two bedrooms.
Luke Jessen, senior director of development at Lloyd, said the company will ask the city for an $8.75 million TIF, although a hearing date has not yet been scheduled.


$995 for a hole in the wall apartment in Rapid City, seems reasonable? Notice how many groups it must go through before approval;

The project will soon appear on the Tax Increment Finance District Review Committee, Planning Commission and Historic Preservation Commission agendas.

We may be served well if we had such a committee;

The committee is comprised of two Rapid City Council members, two Pennington County Commissioner members, one Rapid City Planning Commissioner, one Rapid City Area School District representative, and one Economic Development Partnership representative.

If we had a committee like this, there might be transparency in the process, they actually meet in council chambers and members of the public can attend to see how the TIF is negotiated. What a concept! In Sioux Falls they are negotiated in the basement of the planning office then rubber stamped by the Planning Commission and City Council.

City of Sioux Falls puts out video bragging about spending tax dollars on private development

You would think normal public officials would be putting out videos about road improvements and cleaning up neighborhoods, nope, they like to brag about TIFs and giving tax rebates to wealthy developers to build parking ramps and condos.

Sioux Falls City Councilor Curt Soehl plays an interesting game tonight

At the council meeting tonight, Soehl recused himself on Item #45, which is a rezone of an historic building in Pettigrew Heights to be converted into a coffee shop. I’m am not sure why he recused himself because he never told the council and the public, but my guess is he may be investing in the project but I do not know for sure. Let’s just say he has a conflict and admitted to it, whatever it is.

After coming back he co-sponsored item #53, a resolution to pull $120K from streets to re-establish the core facade program. He claims he has NO idea who would want to use it but has heard several people are interested.

So imagine my surprise when the main developer of Item #45 was interested in applying for the program after his rezone was approved.

Coincidence? I think not.

So how is it that Soehl walked out on the coffee shop project because of an assumed conflict, then turns around and sponsors a program that MAY benefit the project he has a conflict with?

Hey Curt, we can connect the dots . . . unfortunately you cannot. This will be brought up time and time again when your re-election campaign heats up.

UPDATE: Apparently the Developer of the Coffee Shop is Curt’s re-election campaign treasurer

Sioux Falls CountCilor Jensen continues to push useless trickle-down policies when it comes to housing

You know what they say, even if you know your are wrong, never admit it, just dig in deeper. During the latest episode of Inside Town Hall in which Councilor Brekke tells us to eat more vegetables and drive electric cars, Jensen continues to push the narrative that if we just give contractors and developers even more tax breaks we will get more housing (he supports legislative proposals that would create entire neighborhood TIFs, instead of individual homeowners and a rebate of excise taxes to contractors). While at the same time promoting (low-wage) workers to live someplace else. When it comes to affordable and accessible housing, it starts at the bottom, not at the top. But not in Sioux Falls, hand all the TIFilicious goodies to the ones at the top hoping they will throw us some crumbs while spray painting the poorer neighborhoods sidewalks.

And why would we NOT think Alex’s plan wouldn’t work? He works at the number #1 bank in the Nation, and he had no problem advertising the place while appearing on a tax payer funded program. Actually surprised me because every time he sits on the dais at Carnegie he has no problem flaunting his SF City Council logo wear puffy vest we all paid for (even though I suggested they just all get magnetic badges instead). It must have been at the cleaners when he recorded this show so he had to wear his primary employer’s vest instead.