TIFs

Downtown Sioux Falls organization wants to increase the bid tax

Thank goodness we have a new media source in Sioux Falls covering City Hall, otherwise I would not have had any idea DTSF was planning this;

Downtown Sioux Falls, Inc. (DTSF) this month will ask the Sioux Falls City Council to get behind a proposal to get rid of a decades-old cap on the amount of revenue it can collect on parcels within the boundaries of what’s known as the Main Street Business Improvement District (BID). 

However, not everyone is on board. 

Duff Robinson, owner of a pair of properties in the northern end of downtown, said he’s not opposed to lifting the cap. But he said DTSF could capture additional revenues with a more modest change to the special assessment.

Rather than leaving the base rate of the special assessment at $1.50 per $1,000 of valuation for downtown buildings and adding a 50-cent tax on valuation beyond the $1 million value, Robinson said DTSF could capture additional dollars by lowering the base rate and relying on the overall valuation increases assessed on downtown properties by the county equalization office and a reduced base rate for the BID.

“With an 18 percent increase in valuations, they’re going to get an increase anyway even if they don’t approve this,” Robinson said, referring to average assessment increases placed on downtown properties in 2021. “I’ve come to terms with removing the cap, but I just think they should flatten it out.”

Here’s a better idea, STOP HANDING OUT $50 MILLION DOLLAR TIFS FOR PARKING RAMPS DOWNTOWN.

Isn’t it ironic that DTSF is the first to hit the podium at Carnegie talking about all the TIFilicious benefits of Tax Increment Financing then turns around and asks for a tax increase to fund its organization. Make the organization DTSF and its employees a division of the city and fund it thru the general fund and parking fund.

When disgruntled, angry developers and bondsters look me straight in the face and tell me I am lying when I point out TIFs only raise taxes on the rest of us I gladly point to this proposed increase which is a prime example of how we give massive tax cuts to very top developments downtown then turn around and increase taxes on everyone else.

Duff is correct, the increase in valuations on properties over $1 million could cover the spread, if only they were paying 100% of property taxes on day one instead of 20 years down the road.

Just further proof that TIFs don’t spur true economic development just higher taxes for the rest of us.

City of Sioux Falls planning affordable housing development in Southwest Brandon

Well not quite Brandon, but almost. (FF 1:30)

As I understand it the development is in between Washington HS and the city of Brandon on a current empty lot. They will use a TIF to help pay for the roads and utilities. The most affordable houses will be slab on grade (NO basements, not even unfinished), 1,000 sq ft, single stall garage, $250K.

I think a better approach would be building NO attached garage and putting in unfinished basements with egress windows so the basements could be finished later and a garage.

What is silly about this is that when we have talked about building density in our core and providing more affordable housing this was NOT what people were asking for. But it should be NO surprise since the public had ZERO input and the councilors were met with privately about the plan. This video is the first time anyone from the public has heard about it.

I think doing a pilot program in central Sioux Falls would have been a better way to go. You pick a 8 block area that needs some help. The city could use a TIF to rebuild the roads, sewer, water, sidewalks, curb and gutter and street lighting. Community Development could provide loans to fix up the homes in the affected area and Affordable Housing Solutions could demo and buy up empty lots for new housing in the area. Building slab on grade houses next to Brandon with no apparent public transit service will do little to solve our affordable housing issues in the core of Sioux Falls.

Mayor TenHaken’s Budget Address

During his address today there were a couple of interesting tidbits;

• He is proposing hiring an Art Specialist. He didn’t give many details but it sounded like a full time position. While I am somewhat supportive, (I think this idea has been floated by Mayor Huether and maybe even Mayor Munson) as someone said to me tonight, it seems like more of an authoritarian move to control the arts advancement in Sioux Falls (tourism). Not sure if I see that, so I will keep an open mind about the job duties. I think this will be a controversial addition and there may be dissenters on the council. I remember when TenHaken asked for a cultural officer and she quit. He may have a fight on his hands.

• Paul said there will be an announcement soon about a TIF being granted for an affordable housing project. Like the Art Specialist there were few details. I have felt that TIFs for affordable housing is a reasonable use of them, but I want to see if the TIF will benefit the dwellers or the developers.

While the meeting WAS posted in advanced on the city website, the PPT was not included. When the meeting started there was NO link to the live feed on the city website for at least 10 minutes at the beginning. Fortunately, Dakotanews was streaming the meeting on FB with their own cameras. I just find it ironic that Mr. TechNology was so concerned about his PPT being posted in advance they had to delay the live feed so it would NOT appear until after the meeting started.

The Tifilicious Welfare Downtown Developers want to buy up the homeless shelters

I didn’t know whether to laugh or cry when I read this article about the DTSF developers behind Cherapa XXX;

And concerns about Cherapa Place colliding with Bishop Dudley Hospitality House or Union Gospel Men’s Center have not made developers wary. Although there might be the possibility that rising values could cause the shelters to sell, overall Pendar Properties hopes to work on a solution that works for all parties.

“I think what we do is we make this work together. There is a division, but it can be something we make positive,” Scherschligt told the Argus Leader.

Gee, like putting them somewhere else to begin with? It reminds me of the quiet zones. This stuff should have been negotiated to begin with, now we are going to throw even more tax dollars at the problems (that is who is paying for the quiet zones and eventually the relocation of the shelters).

I don’t expect our leaders to have a ton of vision, well maybe I do, but common sense would be nice.

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!