Developers

The DT SF 2025 committee, A Stacked Deck?

Image: siouxfalls.org

First let’s talk about the mysterious announcement of this top secret committee, the first press release put out about the group was on Monday, September 30, 2013 12:16 PM by Q-Tip Smith. The next press release was put out Tuesday, October 1, 2013 11:32 AM, about 2 hours before the press conference. I guess they felt a need to spring this on the citizens of SF like it is some grand surprise.

In all fairness, the city did say they want our input (just not on the sooper-secret committee);

Over the next 12 to 15 months, numerous opportunities will be available for the citizens of Sioux Falls to provide their input on the future vision of downtown. A wide variety of public meetings, community-wide events, and a number of committees will be established to seek input for the vision of downtown.

Let’s look at the committee the MAYOR has appointed;

Brendan Reilly, Attorney

Daniel Doyle, Attorney

Eric McDonald, co-founder of a medical document company

Gene McGowan, venture capital

Glen Koch, Owner of DT restaurant

Jennifer Schmidtbauer, Director of Development for major DT SF manufacturer

Jerry Nachtigal Public affairs for major SF CC company/bank

Jessie Schmidt, Co-Chair of SF Planning Commission

Joe Kirby, He’s a Kirby (He’s the guy who lives here part-time and tried to sneak a provision in through the Charter Revision Commission to give the mayor more power)

Larry Toll, Co-President of Washington Pavilion

Terri Schuver, Owner of DT gallery

Michelle Erpenbach, City Councilor (I heard she never informed the rest of the council she was going to be on the committee, or at least some of them were unaware of her appointment)

Paul Ten Haken, owns a media company (his company is the one that came up with the new DT parking concept and the motto, “Look for the Gold P.” He also has a problem with his employees talking about political affiliations on their personal FB pages.

Don’t get me wrong, the committee needs to be comprised of SOME community leaders, but it is lacking actual ‘Downtowners’ – people who live, work and own businesses DT (tri-fecta). When a community wants to develop a ‘vision’ about a sector of it’s town, they really need people who have the best interest of all citizens and a deep knowledge of history and the past, moving forward you always want to avoid the mistakes of the past. I would think one of the owners of Minerva’s or the owners of Zandbroz and Vishnu Bunny would have made fantastic members of this committee. Remember a developmental ‘vision’ needs to include ‘the little things’ not just major projects like hotels, condos and insurance buildings. The secret of making our DT even more successful will be by connecting the whole community to this ‘vision’. I am just not sure how many of these members have a connection with downtown as a whole and the kind of people it attracts. IMO this is about making a small amount of people lots of money developing the DT vision, which is fine if the whole community will share in this richness.

The findings will be very interesting, but I have a feeling the rest of us will be left out – maybe they will tell us about it in a press conference.

Do developers in Sioux Falls really need taxpayer incentives?

So what do the ‘poor’ developers in town think about this?

Sioux Falls building permits continue on record pace.

As predicted, total construction value for the year has already topped more than half a billion dollars. From January through September, the total construction value of permits issued came in at $502,143,850.

New manufacturing accounts for $23 million and commercial construction for nearly $36 million. The number of apartments also outpaces single family homes. New residential housing totals $208.7 million.

The largest year for construction activity was in 2007 with $523 million in building permits issued. Sioux Falls is on track to break that record by the end of the year.

Don’t get me wrong, I think this is fantastic news for our city and developers. It seems the economy has bounced back, for them. So as a city government we need to ask some important questions since development is doing so well.

• Should we raise platting fees so developers are putting in the 40-50% they promised originally? (Taxpayers have put in almost 13x more then developers since the 2nd penny got raised to a full penny).

• Should we limit TIF’s to affordable housing, instead of for luxury condos, big box stores and luxury hotels?

• Should there be a public amenity tax implemented on development that benefits from publicly funded frontages (River Greenway) As Don Kearney, Parks Director recently said about the RG, “The public/private property lines are virtually seamless (sic).

• Should we continue to annex land and expand our infrastructure when there is already a lot of land within the city limits that needs to be developed or redeveloped?

• Do our zoning laws really need to be drastically changed to Shape Places, but instead be broken up in to smaller zoning laws?

It seems development is moving along swimingly in Sioux Falls, now let’s tweak it so ALL of the citizens in SF can benefit from this economic development, not just the developers.

Platting Fee Surplus!? LMAO!

One reason I often shake my head at our local media is because they never tell the whole story, this story about platting fees is a prime example;

In 2009, the city added development fees when it raised the second penny sales tax to a full penny. So far the city has collected $750,000 more than they thought they would be getting in 2013.

What they leave out is that the taxpayers of Sioux Falls have contributed almost 13x times more to the arterial roads fund since it’s inception. And while I think it is wonderful that they have taken in more money this year (about fricking time!) I still contend that the developers have never held up their end of the deal by contributing 50% to the fund like they promised. Mayor Munson and the developers suckered the council at the time and have taken the taxpayer’s of SF for this money and have contributed very little.

That should have been the real story. Scroll down after clicking on this link to read my extensive posts about platting fees.

I see Lloyd Companies is trying to play the TIF game in Madison now

Cory points out something I have known about Lloyd Companies for a long time, they don’t need TIF’s to develop, but hey if they CAN get them, they will use them;

But when we look at the big picture, TIF is a free ride. Go east on Eighth Street two blocks. You find apartment buildings there. I don’t know who built them or when, but the developer of those buildings didn’t get a TIF district to help make those apartments happen. That developer managed to cover his own construction bills and still pay regular taxes to support the city, school district, and county. TIF removes half of that burden from new developers, giving them an unfair advantage as they enter a tight Madison housing marketplace that ought to be drawing hordes of builders and buildings without taxpayer help.

I also find it interesting that Lloyd Companies tried to keep this a secret from the public;

Funny thing was, neither that resolution nor that night’s agenda packet nor any other online document I could find told us where that TIF district would be, or who was asking for it, or what they were going to do with it. Also funny was that the Lake County Commission hadn’t taken any formal action on any proposal to create a TIF district.

A little digging revealed that the proposal for TIF district #2 comes from Lloyd Companies in Sioux Falls. Lloyd prefers that their proposal not circulate until they finalize it.

As Lloyd said on the ‘100 Eyes’ show the other day, (SIC) “A TIF is when we (Lloyd co.) get a percentage of our property tax payment refunded to us, then we use that refund to pay off our bank loan that funded the project.” Can you imagine if you could put 80% of your property taxes paid each year towards your mortgage? For the next 10-14 years? But Lloyd doesn’t think it is a handout? LOL.

PLAN TO ATTEND THE ‘SON’ PETITION SIGNING & NOTARY NIGHT THIS EVENING!!!

Petition Circulators:  Please turn in all signatures that you have collected so far so that we have an estimate of where we are at!

Notary’s will be present from 5 – 8:30 pm - PLEASE BRING YOUR PHOTO ID!!

All Sioux Falls registered voters are encouraged to stop by to sign the official petition and show their support of smart growth in the city.

When: TODAY (8/20/13) from 5:00 pm – 8:30 pm

Where: 7601 S Audie Ave (on the corner of 85th & Audie Avenue)