TIFs

UPDATE II: Data Center Petitions Due

Wednesday, January 28
12:00 PM – 7:00 PM
The Painted Lady (HQ)

We’re in the home stretch of the Let Sioux Falls Vote petition campaign and need your help with a critical task: validating petition signatures.

What we’re doing:
As petition sheets come in, we need volunteers to verify that signatures match voter registration records. You’ll look up voter information on the Secretary of State’s website and confirm addresses and details are accurate. This verification work is essential to ensure our petition has the strongest possible validity rate when we submit to the city.

What you need:
Bring your laptop or computer. If you have an extra device you can share, even better. The work is straightforward and we’ll show you exactly what to do.

Why this matters:
The city will likely challenge this petition. Every signature we validate correctly strengthens our case and demonstrates that Sioux Falls voters want this on the ballot. We need as many validators as possible to process the incoming sheets efficiently.

Other ways to help:
We also need people at the front desk to assist circulators dropping off sheets, notaries for extended coverage, and drive-up team members to help with traffic flow.

Can you give us a few hours tomorrow? This is how we get across the finish line.

Questions? Comment below or stop by.

UPDATE: Love this video of Chris with Jordan. The irony is I disagree with both of them on politics, but they are spot on about the petition drive! Thank YOU! Hey Chris, I need a new bed, can we work something out 🙂

I also found this interview with ‘Hot Wings Ryan’ skeptical;

“We’re excited to see people pay attention to what’s happening in Sioux Falls. But I think there was a lot of misinformation there,” said Ryan Spellerberg, a city councilor.

YES! And it all of that misinformation is coming from the city.

Let Sioux Falls Vote will be collecting circulator sheets starting tomorrow with a deadline of Thursday to turn in the petitions. I have no idea how many sigs they have, because they decided to collect signatures in what I call the ‘chaos’ style. Now, this is NOT bad, just chaotic because you are depending on hundreds of volunteers (not paid circulators) to collect the sigs for you and you come in at the end with the booty. If I had to guess, they have the sigs, maybe more, but there is NO way of knowing until Thursday. All that aside, even if they don’t make the mark, this petition drive has united many folks across the political landscape. Dems, Repubs, Indies and all stripes are working together on this. With all the horrible political division going on in this country, it makes me smile that EVERYONE in the community is working on this together, and it is what I envisioned anyway; CITIZENS UNITED AGAINST A CORRUPT CITY GOVERNMENT And even if they get the valid sigs, the city and developer will likely challenge in court; language, active voters, etc. It will be a sh!t show. But let’s pretend for a moment this makes it to the June ballot, the rezone will go down 70/30. And even if the petition drive isn’t successful, it will reveal the true colors of our city government, and that sends the best message.

I also want people to know Sam Scarlata who is organizing the petition drive is also running for At-Large City Council against the incumbent Rich Merkouris. We may not be able to kill the Data Center, but we can kill his council seat! I want Sam to know, there is a grassroots network in this town that will destroy the Matt Paulson money machine, we are going to change city hall in June, and I mean it this time 🙂

Speaking of the Developer Welfare Queens, I was awaiting Jodi’s article defending the grifter class in Sioux Falls with all the Data Center resistance;

Rapid City voters last week made a clear statement about the guardrails they believe should exist around tax increment financing. Without delving too deep, Rapid City also historically has used tax increment financing to fund growth in ways that fundamentally are different from Sioux Falls.

Sioux Falls generally has taken what I would call a conservative approach with structuring TIFs, focusing on some of the most basic qualifying costs allowed under state law: things like site preparation, infrastructure and parking. I can point to numerous downtown redevelopment projects that would not exist at the scale they do or exist at all without this economic development tool. They have done what they were intended to do: driven additional economic activity well beyond the increment in property tax growth they were able to use to support their projects.

This statement is on it’s head. Rapid City has actually used TIFs more, but for smaller infrastructure and housing projects, that is why the Libertyland TIF was so ridiculous to RC voters. Sioux Falls has NOT used them CONSERVATIVELY. Massive tax breaks for parking ramps ($100 MILLION) that mostly residents of the expensive condos use, which drive up our personal property taxes and forces residents across the state to fund our school district with sales tax revenue. In other words when the SF city council gives a TIF (property tax break) the school district has to make up that property tax revenue from state sales tax collection. So when you buy a loaf of bread in Milbank you are funding the tax cut for millionaire condos in Sioux Falls. I know, not fair. At all.

Economic development incentives aren’t giveaways. They’re more like investments.

I would agree 100%. When we use tax dollars to fight a fire, build a road or give us clean drinking water, that is an INVESTMENT, in EVERYONE. When we give that to rich developers that just creates a wealth gap and raises taxes on the rest of us. If anything it is a DI-VESTMENT in our citizens.

Every time I hear a journalist or some other talking head talk about the benefits of TIFs, I ask the same question, ‘What is the benefit to the average tax payer?’ I usually get crickets and the reason there has never been an independent state or city audit of TIFs is because there is NO benefit, and they know it. TIFs are really the emperor with no clothes.

If TIFs really work, why not an audit?

I hope Jodi had a nice dinner from the revenue she made from this article, because you are the only one benefiting from TIFs. Just sayin.’

Libertyland TIF gets Slaughtered

It is no surprise to me this failed, I predicted a 70/30 split;

RAPID CITY, SD — Results have been finalized by Rapid City Officials, who have declared the citizens of Rapid City have voted against the establishment of the “Destination” TIF District, with a final tally of:

All 25 precincts in:

Yes 3,415 (30%)

No 7,965 (70%)

22.32% Turn Out (11,380 out of 50,995 Voters in Rapid City)

Absentee results

Yes 961

No 2,479

It surprised me there was so many absentee, seems a lot of snowbirds voted 🙂 which is ironic considering some of the people behind the petition drive are against mail in voting.

The success of this vote doesn’t surprise me, I think if citizens have an opportunity to vote on ‘economic development’ TIFs they will vote them down, they just don’t have any payback to the average Joe and actually cost us in higher property taxes and retail taxes. Notice our legislature keeps trying to shift tax burdens onto the consumer, it is regressive and idiotic and for every penny paid in retail taxes one penny gets taken out of the local economy. Horrible way to fund government.

So with the petition drive going on with the Data Center, it may be time to keep those clipboards warm for another one.

Yesterday at one of the City Council meetings there was a gentle mention that this development was coming back. If you read what I posted, you will notice that the TIF for this development was ONLY approved by the Planning Commission and that was in July of 2024. The project got stalled so the city council NEVER approved a TIF or final development plan, that means if they are resurrecting this project it will have to go thru the same process as it did 2 years ago. They will have to present a new development plan and TIF proposal. If the TIF proceeds are for any NON infrastructure upgrades we could challenge the TIF with another petition drive and I think we should. Citizens really should be deciding on their own property tax increases and not letting a vote by a meaningless board decide. So I hope the new development doesn’t include a TIF, but if it does, I smell a petition drive.

Oh, and the developer is from out-of-state, so we would essentially being subsidizing an out-of-state developer welfare queen. We can’t even launder money locally anymore 🙁

One Great City!

I LOVE this song;

I just replace ‘Winnipeg’ with ‘Sioux Falls’ and it makes soooo much sense. The last line in the song nails it;

And up above us all, leaning into sky
A golden business boy will watch the North End die
And sing I love this town
Then let his arcing wrecking ball proclaim

I hate Winnipeg (Sioux Falls)

So a foot soldier who actually reads regional news sent me this article about TIFs. Talking points are always the same and I encourage you to read the entire piece;

Politically, TIF is seductive. It allows elected officials to claim they are “doing something” about development without raising taxes today. The costs are deferred, opaque and spread across future taxpayers. But the long-term consequences are real: higher property taxes, underfunded schools, distorted development patterns and growing dependence on subsidies for projects that should stand on their own.

Pretty common sense stuff. Right? And the folks who wrote this article are not a couple of jokesters;

Julie Risser is an Edina City Council member. She previously served on Edina’s Planning Commission and Energy and Environment Commission. David Schultz is Hamline University Distinguished Professor of Political Science. Previously he served as a city director of planning, zoning and code enforcement and also as a housing and economic planner.

I have read hundreds of articles over the past decade about the destructive nature of TIF’s and have never understood why local governments get sucked in, besides the fact they are getting their personal palms greased, but I have never heard the word ‘SEDUCTIVE’ used. It makes SOOO much sense now. Not only are our national politics ruled by money and power (The taxpayers of this country just paid for a military operation to take the oil resources of an independent nation, wrap your F’ing head around that!!!) but now our local politics are now too. I think the upcoming city election is an opportunity for citizens to stand up this money machine and elect folks who won’t tolerate it any more. Don’t be ‘seduced’ by snake oil salespeople.

MY HOPES FOR THE NEXT ADMINISTRATION (Mayoral)

Somebody asked me last night what would be my ideal outcome of the next city election, and I gave a longer answer then I expected;

Greg Jamison as mayor, Christine Erickson as Public Information Officer, Joe Batcheller as his Planning Director and Jamie Smith as his Housing and Community Development director AND I would hire a trained monkey to be the city attorney. Notice I said ‘trained’.

Libertyland TIF should go to a vote of the entire state!

While the petitioners did the right thing by putting this to a vote of the people of the affected area, the TIF should really be voted on by the entire state. Why?

So this is how TIFs work in SD; The developer’s property is valued at a new higher rate once the project is completed, this rate is used to fund city, school and county government, except that new valued tax revenue goes back to the developer for improvements (in other words he gets a tax refund to build his personal project). So while these values are up, the money isn’t coming in so the county and school district must make that revenue up by taking it from the state which is funded by sales taxes paid for by the entire public body of the state. So while there may be a TIF in Pennington County, Minnehaha County residents are funding this TIF thru sales taxes to make up for the lack of school and county funding. TIFs are not only BAD for the effected communities but they hurt every resident in this state! Some would argue we pay these taxes anyway, and you are correct, but instead of bailing out school districts and counties we could use the revenue to improve state infrastructure. What a f’ing concept!!!!!!

Screenshot

TIFs get first major electoral challenge in Rapid City

I have been watching this with intrigue.

This is the first time a TIF has been put up to a vote EVER in the state. I think any TIF over $10 Million should get voter approval, it should also get county approval. I find the coalition of right/left leaning folks who gathered the 5K sigs in 20 days remarkable. If they can get that many sigs in RC in 20 days, that tells me the voters will kill this by a large margin. The astonishing thing is EVEN if the $125 million dollar TIF is eliminated by the voters, this f’ing amusement park will still receive over $60 million in other tax incentives, yet the state couldn’t figure out SNAP or TANF. TIFs have gotten ridiculous, but they have always been. Where were these lawmakers 10 or 20 years ago? The research was out there that they don’t work, yet you let taxpayers get rolled for decades while bailing out developer welfare queens. I guess I am happy there is FINALLY opposition to TIFs statewide, but what took yah so damn long!!!!!!?????