Event Center

$150 Million for a new Events Center? Yeah right.

We have heard this song and dance before;

The parking fee is among emerging details as promoters seek support for a
$150 million entertainment and sports complex next to the Arena and Convention Center.

Remember the $18 million dollar renovation of the Washington Pavilion that has costed taxpayers $40 million to date and we are still not done with the building (this is construction costs NOT subsidies). Or the $1.5 million for Phillips to the Falls that ended up costing twice that (after the mayor broke city ordinance to approve the 100% increase in spending). Not sure where this number is coming from, but I can guarantee $150 million won’t build us a 12,000 seat facility.

Here are my cost estimates (based on the South DaCola Sioux Falls entertaintment facility calculator, where you basically take everything your told by politicians and take that times two)

• New EC: $180 million

• Arena upgrades: $10 million

• Convention Center upgrades and expansion: $20 million

• New Howard Wood (which taxpayers will have to foot the bill for one way or another): $26 million (this was a number Darin Daby was throwing around)

• Destruction of HW and Parking: $15 million

TOTAL COST OF PROJECT: $251 MILLION

I will be curious how the Task Force spins these numbers. There was one positive part to the column though;

It also depends on City Council endorsement this fall, permission from the Legislature to raise the city sales tax, then voter approval in November 2010 and two years for construction.

I don’t think it will make it to voter approval, but I was glad to here that is still a part of the plan. We all know our rubber stamp council will approve it, any opportunity to raise our taxes they are front and center.

The Gargoyle Leader gives the EC Task Force a big ol’ Atta-Boy!

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Well, this of course is not a fricking surprise;

The group, headed by Terry Baloun and Jim Woster, should be congratulated for its work so far. This already has been a successful exercise in community diplomacy as the task force navigated a delicate balance between divergent community interests and the wise stewardship of public money.

Huh? They basically are telling us what they want, without securing funding or public support. If that is what you call ‘Diplomacy’ and ‘Wise Stewardship’ no wonder you don’t know the definition of progressive.

Sioux Falls Event Center Task Force had final meeting today

I attended the last EC Task Force meeting today. They will have another informal meeting to go over a few minor changes before presenting their recommendations to the council and public, but it is pretty much a done deal.

Before I go over the recommendations, I want to point out three glaring items I got out of the meeting today;

• There will not be enough hotel rooms to accommodate the new facility for several years after it’s completion

• Not only do they want to fund it with a retail tax increase, but the CVB wants a $2 additional hotel room tax (councilor Pat Costello was quick to point out that this is a ‘FEE’ not a ‘TAX’ not sure if he was being sarcastic or not).

• There was no talk about putting it to a public vote anymore, they seem to be steering away from that idea. But instead of just saying that they avoided the topic all together – so that is up in the air.

Here are the likely recommendations to the council and public;

• They want the new EC, Convention Center and Arena all in one location

• It will seat 12,000 but can be expandable in the future for 15,000

• They will encourage redevelopment of the surrounding area (hotels, restaurants, etc.)

• They want affordable or even free trolley and transportation options from the site to downtown, the mall, etc.

• They want to expand the Convention Center by 75%

• Relocate Howard Wood field (Darin Daby, president of the school board admitted that they have already been in the planning stages of what the new HW wood look like, which surprised me).

• Another private Hotel/Restaurant attached to the CC needs to be built at the same time as the project and have 150 rooms (at least).

• It will be funded with a retail tax increase with a sunset provision. (but this is wishy washy, because a future city council and mayor can find other projects to spend the money on once the EC is paid off. I am not buying it. I am also weary about not mentioning the public vote)

• They will pursue private sponsorships

Other interesting moments in the final CSL consulting presentation;

1) The Skyforce and Storm don’t seem interested in moving from the Arena. 2) Local and State colleges would NOT hold events there 3) Not big enough to support NCAA BB tourneys 4) Sioux Falls considered to be ‘Hit or Miss’ when it comes to concert bookings 5) SF can only expect 10 concerts a year 6) They want to build about 26-32 box suites 7) It is expected to bring in about 3.1-3.6 million in revenue a year and cost about 3.2 – 3.4 million to operate per year. 8) The reason they oppose a BBB tax is because it will be hard to sell convention events here. Omaha’s room tax is double what SF is now. 9) Rapid City’s CVB spends 3 times what SF does and has more hotel rooms 10) CSL felt having all the facilities in one location is a good idea.

After the presentation, J & L Harley-Davidson co-owner Jim Entennmen(sp?) gave a ‘Quality of Life’ speech, you know, the one about how this isn’t about money, blah, blah, blah, the same BS speech we heard before the Rec Center vote and the Indoor pool vote. It’s like these guys keep doing the same thing over and over and expect different results.

Two things I took from the meeting;

• CSL basically said our current Arena and CC is adequate and serving the needs of the community just fine right now. Which adds to my argument that we do need a new EC, but let’s not break ground for another 7-10 years.

• They claim that the EC will pretty much break even on operating expenses but will have a $30 million dollar economic impact on the community.

I’m sure it will have an economic impact on the city, mostly the people sitting on the EC task force, but not joe six-pack.

The Rapid City Journal gets it, I wonder if the Gargoyle Leader will?

South DaCola made the FIVES again;

Regressive taxation, in graphic detailA few years ago, the Journal Editorial Board took exception to the state’s efforts to force cities to raise taxes, particularly because the tax increase would include staple items such as food.

The state heard similar complaints from folks all over South Dakota, and in response, offered up a program by which individuals who met a certain income level could apply for relief.

Still, no matter how it’s explained, taxes on food are regressive, i.e., it most adversely affects the people who are least able to deal with it, the poor.

That’s blogger Scott Ehrisman’s argument against a current plan being floated by Sioux Falls officials to increase taxes to pay for an events center.

While Ehrisman’s conclusion that such a move is plain and simple discrimination may be hard from some people to swallow, he makes an extraordinary case against regressive taxation by offering up a graphic that shows by income bracket what percentage individuals must pay of their total earnings to such taxes.

Another case of a picture — or a line graph — is worth a thousand words.

Raising taxes on food to build an Events Center is discrimination

Let’s face it, taxing poor people to pay for an events center they will never be able to afford to visit is discrimination, plain and simple, yet it doesn’t stop our city leaders from pushing this stupid idea. This letter to the editor says it all;

Unfortunately, the current and proposed sales taxes already impact poor and moderate-income folks disproportionately. They pay a significantly higher percentage of their already strained incomes on food and other necessities. This includes baby food and food for older children.

As of May, Sioux Falls had 37 percent of its school children on free and reduced-price lunches. That percentage probably is higher now. South Dakota is 49th in hourly wages.

The Food Pantry in Sioux Falls is reporting a 70 percent increase in requests for food during the past 18 months. We need to eliminate the sales tax on food altogether. To consider raising it again is unthinkable and immoral.

This chart shows the percentage of income paid in taxes compared to what you make. As you can see most of South Dakotans are submitting over 10% of there income to local taxes. Couple that with Federal income taxes and you are looking at a staggering amount of taxes. We must stop the retail tax increase to build the events center, especially on food (Thanks to Bread for the World for the Chart)

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