Event Center

Vernon Brown must be living in a different city then the one I live in

As president of the SD Municipal league Vernon is promoting the silly 1 cent sales tax increase city option. He had this to say about it on his website;

South Dakota Municipal League will be asking lawmakers for a major philosophical shift: a temporary sales tax option for special projects. The League’s success in unlocking the state’s financial handcuffs on cities will largely come from the effectiveness of your community’s story. In this case, the smaller the town, the bigger the impact will be, especially when it comes to necessary infrastructure. Here are a few things to consider as you develop your local story:

Handcuffs? Besides last year, the city of SF has enjoyed RECORD sales tax revenue. With that much money coming in you would think we would be driving on streets of gold. It is estimated that in just 7 years the city has spent over $100 million on ‘quality of life’ projects. Or as I like to call them ‘wants’. If city leaders would have been a little wiser over those 7 years we could have put millions in the bank to pay for things like an events center, but instead the city engaged in reckless spending, and now they want to continue their spend fest by increasing taxes. I have often commented that people are not against an Events Center, they just want the city to spend within their means and show some fiscal restraint, especially with a project of this magnitude. I hope the 1 cent sales tax increase has a fast death in Pierre.

Councilor Staggers says the solution to building a new events center is simple, don’t do it by increasing taxes;

No increase in the city sales tax. Most City Council members want to raise the sales tax in Sioux Falls to 7% for an events center. This tax increase would take an additional $50 million out of the pockets of citizens and give it to the city government to spend. The citizens would have less money to spend at a time when economists are calling for consumers to spend more money in order to get the economy out of recession. Furthermore, since the sales tax is a very regressive tax, any increase in the sales tax would further impoverish the poor and low income families in the midst of a recession.

No increases in taxes and no annual operating subsidy for a new events center.Common sense and fairness dictate that a new events center should be paid for by those people who use it. Likewise, if you do not use the facility, you should not pay for it. A new events center should only be supported if there are no increases in taxes and no annual operating subsidy.

He also comments on what our current taxes should be paying for;

Increase spending on city streets and highways. The city is playing catch up in its street maintenance program. The city’s promise of the 1980s that the second penny sales tax would be used for streets must be reaffirmed and honored. This means more of the second penny sales tax must be spent on streets and highways.

Guest Post: Event Center Proposal

By Carter Christensen

The one key word of the current Events Center plan: Big mistake. I think it is ridiculous that the current Task Force filled by mostly conservative older folk thinks that they are planning the most ‘profitable’, most ‘ economically responsible’ Events Center that they can. It is so sad that the tax vote is going down in November if the legislature lets it pass to a vote. It is obvious that this ‘temporary tax’ that they want will not stay temporary and will easily be forgotten about in the coming years. There are a lot of people who just want the thing to be built, and there are also a lot of people who don’t want it to be built. But why don’t they want it built? Because either they don’t think Howard Wood should be torn down, they don’t want to be taxed another penny, or they just think it is an absolute waste of money to pay for it and we could easily find something else more meaningful to spend $200 Million Dollars on. It’s true! We could easily find something to shove $200 million dollars towards that would help the homeless or help the schools or something like that, but it just doesn’t make sense at least to me that Sioux Falls, the Heart of America with two Target’s (Munson in the LA Times), should lack in anything besides any other city in the region. Why should we have that image put on Sioux Falls?

As much as I love having event goers come into town to go to the Arena and Convention Center and drive down historic Russell Street with its industrial warehouses and patchy divided highway, it’s just that I think it is absolute crap that the Task Force and our out of clue City Council who works “SO DAMN HARD” to make sure that we have nice parks and make sure we leave Downtown as the last to plow for snow, that they think we should build a brand new 15,000 seat Events Center out by the current Arena. The only reason the plan is for out there is because the Big Mistake Convention Center that was built out there, which we all know should have been Downtown in the first place. The Task Force thinks by building a center out there we can add more convention space not only with the Events Center, but also by converting the current Arena into Convention space, and adding even more convention space onto that. WE DO NOT NEED ALL THAT CONVENTION SPACE. The Convention Center people say that we will get more events if we expand our Convention Center because we need more room to compete with Omaha and Minneapolis. Sorry, that’s bull, you know why? Because when convention’s look at cities, they look at where their Convention Center is, and what is around it for the event goers to do, and the hotel’s by it and the experience they will get by going to the Center. Call me out on it, but that’s even what Teri Ellis-Schmidt said at a meeting. She said that a convention was going to come to Sioux Falls but decided not to because there was nothing around our current Convention Center to do, not enough hotel space on site, and just a lack of entertainment in general up there. Is that not sending a message to the Task Force?

Here is my proposal, and call me out on anything you want and I will defend it: Build the EVENTS CENTER Downtown. By building the Events Center Downtown we don’t need to waste $15-30 Million Dollars just tearing down Howard Wood Field and moving it, which will probably cost even more. The funds are already in place for moving the rail road tracks, and by putting the plan to build it next to Cherapa, it will get that plan going and move the railroad tracks up by Rice Street which will benefit the railroad center in Sioux Falls. By building it in Downtown, we can use Private funding and sponsorship to pay for half of it. By building it downtown it will be cheaper, why? Because your only building the Events Center and surface parking, it will only cost about $120 Million to build it downtown which is $75 Million dollars cheaper than the current plan. If you sell sponsorship on everything, and I mean everything at this Events Center, you could easily pay for half of it right there. For the rest of the $60 Million use a Bed & Booze Tax, it is a very simple way to bring money in for the city because of the increase in hotel use not only Downtown but down by the mall to when people come in just for the mall. There are so many cities that use that.. I also believe that we should charge for parking in the first few years.. And last but not least, use a TIF. Tax Incremental Financing. By using a TIF only the businesses, BUSINESSES, that benefit from the center will get taxed, now it might not be a happy thing for some of the stores and restaurants Downtown, with the added business that they would get from this, they could easily help pay for it, since it will benefit them. Any other option would most likely have to go to a Bond. Now if anybody is still complaining about traffic and parking. STFU. There is over 1,000 more spaces downtown then there is out by the Arena, plus the extra 1500 spaces of surface parking they would build right next to it with the open land Downtown. Traffic is easy, not everyone is parked in the same place like the current Convention Center spot right now. People are parking on streets, in parking garages, in different surface lots, at hotels. And by being centered in the city, you have so many options of leaving Downtown. People will be going north, people will be going south, east, west, not everybody is leaving at the same time or same direction.

Mike Huether responds to my Event Center post

Mike sent me two press releases posted on his site December 10 & 14.

12/10 • Huether Supports Events Center, Announces Opposition To Events Center Task Force Plan

Proposal Is Too Expensive, Broad in Scope

SIOUX FALLS, SD – At a press conference this morning, mayoral candidate Mike Huether reiterated his support for a new events center in Sioux Falls, but announced his opposition to a plan proposed by the Sioux Falls Events Center Task Force.  Huether made clear that while he believes the city needs a new events center, the task force proposal is too expensive and goes beyond what is needed.

“We all can agree that without the support of the public, a new events center will never be built.

I wholeheartedly believe that Sioux Falls needs a new event center as it will certainly enhance economic development and our quality of life,” said Huether.  “However the proposal as presented by the Events Center Task Force is too broad in scope and some of the recommendations amount to an irresponsible use of taxpayer money.”

Huether detailed his specific objections to three aspects of the task force proposal:

Tearing down Howard Wood Field to make room for parking and spending millions to rebuild the structure elsewhere.

Spending additional tax dollars to expand the current convention center.

The overall cost of the project, estimated at $150 million to $200 million.

“We can build a new events center at the current location for a much more reasonable price that what has been proposed,” Huether continued.  “Taxpayers want to invest in our city, but they are not frivolous – spending must be based on practicality and realistic needs.”

Despite disagreements with the final product, Huether praised the work of the Events Center Task Force.

“I truly commend the Task Force members for their sacrifice and vision.  Many of the members on the Task Force are my friends and yes, a couple of them are my neighbors.  The time and effort they put into this process needs to be recognized.  We just don’t agree on the solution this time.”

12/14 • Huether Statement on City Council Event Center Vote

SIOUX FALLS, SD – Following a 6 to 2 vote by the Sioux Falls City Council to pass a resolution adopting the plan put forth by the Events Center Task Force, Mayoral Candidate Mike Huether restated his strong support for an events center while expressing disappointment with the Council’s action.

“This vote demonstrates how out of touch city government has become with the citizens of Sioux Falls,” Huether said.  “Citizens want progress, but they want responsible progress.  Without the support of the public, a new events center will never be built.”

Huether announced his disapproval of the Task Force plan last week.  He supports building an events center but is opposed to the task force’s recommendation to razing Howard Wood Field for parking, an expansion of the existing convention center, and millions of dollars of improvements to the Sioux Falls Arena.