Washington Pavilion

Sioux Falls City Council Tidbits

During the regular city council meeting last night the council touched on several topics;

WASHINGTON PAVILION’S DARRIN SMITH CLAIMS THEY NEED $5 MILLION IN RESERVES

The director/president/CEO of the Pavilion told councilors during the contract renewal last night that they needed a $5 Million dollar ‘reserve’ in case they have some struggles. While I would agree they do need a slush fund, most of those reserves should be in an endowment fund that earns money thru it’s investment. It is insane that the city continues to dump millions each year into the Pavilion for maintenance and operating while the Pavilion stuffs private and Federal contributions into a savings account. Councilors defended the reserve. Of course they did.

DOWNTOWN SIOUX FALLS BID TAX INCREASE HITS A SNAG

I do support the increase, which is actually very minimal to even the largest property owners DTSF;

Druley did not specify what Raven’s new assessment would be, although a 377% increase over the assessment’s current cap of $1,700 would come to $8,109.

I’m glad our local paper hasn’t taken away their reporters calculators . . . yet.

I find it shocking that TWO properties (Raven and Sunshine/Norberg Paints-which are in the same building) can have this sort of deferral control over the council. This was vetted by DTSF and after it was explained to me it is easy to understand and why NO OTHER downtown property owners that have valuations over $1 million have come out opposed to this;

Batcheller has said the change would affect 88 buildings in the district and bring in another $160,000 per year, and estimated that Cherapa Place’s expansion and the Sioux Steel district could account for another $115,000.

It’s really not that much money, but that didn’t stop the threats;

And she floated the threat of the company leaving the downtown area as well.

“Raven is accountable to its shareholders and its board, and it’s harder to justify its presence in downtown Sioux Falls as expenses increase relative to the benefit they get,” Druley said.

See yah later!

What was NOT mentioned by the council or Raven’s legal counsel is that Raven is no longer a locally owned business. It is now owned by a very, very, very, wealthy Italian family. I have assumed after the purchase that the new owners will look to consolidate and possibly leave Sioux Falls anyway and there is very little the city can do to stop it. I hope that doesn’t happen, but we have NO guarantees it won’t.

Also not factored into their crocodile tears is that Raven has benefitted from the millions of dollars taxpayers have invested in the River Greenway making more of an attractive workplace downtown. The promotion of DTSF has also benefitted Sunshine Foods, the only FULL SERVICE grocery store in the center of downtown. I have been shopping there for 30 years, and I have seen how the store has improved it’s image in step with DTSF improving it’s overall image.

Funny how the council will keel over when ONE hired gun lawyer makes veiled threats but when dozens of citizens show up to the meetings to oppose rezones, bunker ramps, etc., they ignore the warnings.

The council should have just voted YES last night to the increase and thanked Raven for their concerns. Talk about cutting off your nose to spite your face.

EFFORTS CONTINUE TO CLEAN UP THE BIG PIOUX

While I applaud the efforts, we can’t ignore the 700 pound turd floating down the river;

Entenman notes that 78 percent of the stream miles of the Big Sioux watershed – which is the size of New Jersey – are impaired, meaning the water quality doesn’t meet certain standards, either through contamination with E. coli or other issues, primarily from runoff – from agricultural practices to city streets and residential yards.

Unless you can get the property owners (mostly ag) along the Big Pioux to actively stop that runoff, you will NEVER be able to clean up that river.

“What is the point in putting multimillion-dollar buildings on the shores of the river if it’s polluted,” Entenman said.

I have asked that question for decades.

THE STATE LEGISLATURE AND CITY COUNCIL NEED TO PASS COMPREHENSIVE GUN CONTROL

After Noem and the state legislature’s right wing radicals approved open/concealed carry laws there has been a large increase in gun violence in the state’s largest city. I don’t think that is a coincidence;

Court records indicate Billion was shot with one of four stolen guns from the McKennan Park neighborhood. They were all taken from the same truck.

And there are ZERO consequences for the incredibly irresponsible gun owner, but they do have to live with the guilt, poor fella;

It’s something people have to live with and I’d say that’s one of the unintended consequences if you happen to leave your gun in an unlocked garage, car, house whatever it may be and it ends up stolen,” Sioux Falls Police Information Officer Sam Clemens said.

While I don’t think this reckless gun owner should go to jail, I do think they should face a very heavy fine and be banned from ever owning a gun. While the city has had ordinance bans on tobacco and alcohol use in our public parks, fines for not trimming your trees or scooping your sidewalks and bans on texting and driving the state legislature and city council seem to lack the courage to punish irresponsible gun owners when their stolen property is used to murder our citizens.

I am hoping with the influence the Billion family has in our community they would pressure the legislature, the governor and the city council to implement reasonable gun control laws so there is a least some consequences for not securing a deadly weapon.

Sioux Falls City Council Informational Meeting

Next week the city council has decided to tackle three big topics all in one game;

• Washington Pavilion Management Agreement Renewal by Shawn Pritchett, Finance Director

(two questions councilors need to ask; 1) what is the current compensation of the CEO, Darrin Smith & 2) Why is there $5.2 million dollars in the management companies savings account? Also curious is how that savings account jumped $2.2 million in one year? I will be honest with you, I think it is wonderful the Pavilion is building such an account, but it should be an endowment. And why do we continue to subsidize them operationally? I don’t take issue with maintenance costs, because as taxpayers, we own the joint, but after over 20 years, when will it become the place for ‘EVERYBODY’?)

• Homeless Task Force Report by Council Member Rich Merkouris Here is a simple breakdown from The Dakota Scout (and me);

• $500,000 – Homeless engagement

The recommendation calls for entering into a contract with a third party on a two-year pilot project referred to as a street outreach team.

The cost estimate of $500,000 includes $300,000 in the first year and another $200,000 the second.

(This is a good step forward, BUT, the SFPD also needs to have officers on follows to learn from this. I guess it has been successful in Rapid City.)

• $125,000 – Public education

The task force wants to tap into the existing nonprofits already working in the social services arena to develop a public education campaign that teaches area residents about the challenges of homelessness, how it can be addressed and how to deal with panhandling.

(I personally think it is ludicrous to have to educate people about panhandling and homelessness, BUT, before I lived in a NW coastal city in my teens, I knew very little about these things so it is merited, BUT, the local media, print, radio and TV need to step up and just do this out of the goodness of their hearts.)

•$352,000 – Rally around Network of Care

A grant program could be created to help more nonprofits and other social service agencies become partners in the Helpline Center’s Network of Care, which was created in 2015 to give social service agencies a mechanism to connect with each other in aiding clients.

Of that $352,000, $250,000 would specifically be used to fund the grant program, while the task force is calling for an additional $102,000 directly for the Helpline Center “for HIPAA compliance,” the recommendation reads.

(This is a wonderful software(?) program, the issue I have is the cost. If every service registered with this program used it, wouldn’t that bring the cost down? A good question to ask.)

• $500,000+ – ‘Housing First wraparound services’

The City Council will be asked to create a joint committee with the Minnehaha County Commission to explore grant funding opportunities for new properties and partnerships that could lead to additional housing stability with associated programming for employment and substance abuse recovery support.

While there’s no finite estimate on what it might cost, Merkouris speculated it could be anywhere from $500,000 to as much as the Council and county might be willing dedicate to the plan.

(I have argued from the beginning that this would be costly, BUT we need a plan to look at before throwing money at it. There are zoning laws and regs we could change to force developers to provide this kind of housing which would cost taxpayers $0.)

• SiouxFalls.org Website Redesign by Allie Hartzler, Communications and Culture Officer; and Justine Murtha, Digital Communications Manager;

• siouxfalls.org was last redesigned in 2016.
• Each month, the website has more than 70,000 monthly users, with 60% of users visiting on mobile devices.
• More than 4,800 pages, 9,000 documents, and 6,000 images* exist today.
• In June 2022, the City selected Granicus as a partner for the redesign.

(This is long overdue, and I feel sorry for Allie for getting this dumped in her lap, and the newly hired(?) Digital Communications Manager. But I also argue that this isn’t rocket science. The internet has been around for 30 years, web programming is mostly on auto-pilot and we can learn from other cities, like Omaha, who has a great city website. And we certainly should NOT be hiring a company that has f’kup our website and council agendas for years. It could be done internally by a very capable IT department (would have been a great work at home Covid project) but once again we are jobbing it out.)

With Non-Profit Mergers you wonder what they have in the bank

This week was busy with another non-profit merger;

The Butterfly House & Aquarium has raised $4.2 million toward its capital campaign to expand aquarium exhibits, which can be applied toward the project, Otto-Pepper said.

Of course the Butterfly House is merging with the Zoo and it seems they have raised a lot of money.

LSS is also merging with the Multi-Cultural center, which I fully support, and probably is long past due.

But you have to wonder what is going on with their bank accounts.

As you know, the Levitt has yet to release numbers from their 2021 season even as their 2022 season has been finished for over a month.

The Denny Sanford Premier center is up for contract renewal and they are taking in millions in profits and commissions.

According to the Pavilion’s annual report in 2021 they had over $5 million in the bank. This is after basically skipping a year due to Covid. You also have to remember that we not only give the Pavilion a yearly operational subsidy but we give millions each year fixing the building due to the poor construction of the facility to begin with (windows, roofs, etc.)

Maybe it is time the city council takes a hard look at how much we are subsidizing these facilities taking into consideration how much is in their bank accounts. Do we really need to subsidize the Pavilion, the Zoo, the Denty and other facilities when they may have millions in their bank accounts. I don’t think so.

UPDATE: Levitt Sioux Falls had a stellar 2022 season, still wondering what happened in 2021

UPDATE: I wanted to note that ALL the arts non-profits in Sioux Falls that receive city taxpayer funding should be giving the public their full financials each year. I was told today that the Pavilion hasn’t done this for a long time. One of the reasons is that they are rumored to have millions in endowment and savings (not under the city umbrella but under the management company) which means if the management company was ever terminated they would take the money with them.

I will admit, putting on 50 FREE outdoor concerts in SoDak and not having one single cancellation is quite an accomplishment. I also enjoyed seeing Lee Rocker from the Stray Cats (pics below) for the finale.

But after wrapping up a successful 2022 season, the Levitt has yet to tell us the financials from last year’s season. I find this even more ironic considering the Director of Levitt, Nancy Halverson ripped the city council a new one at the last meeting (they deserved it) for wanting to contract the Pavilion to do an arts study and running the municipal duties of the arts in Sioux Falls. Nancy stated that it was a huge conflict of interest since the Pavilion already receives arts funding from taxpayers. It is. But has that ever stopped the Pavilion before?

First off, government needs to stay out of the planning and implementation of arts programming in the city and just cut the checks.

Secondly, it is easy to complain about different organizations when you have hardly been transparent.

ALL of the arts programs and arts non-profits we have partnerships with should do a very public presentation of their annual reports in a very timely manner.

Is there any reason why we have never seen a 2021 annual report from the Levitt? It’s almost October 2022.

While they all want taxpayer money, they seem to struggle with telling us how that money is being spent. I’m all for my tax dollars going towards the arts and I have had incredible experiences at the Levitt, who have a dedicated staff that goes above and beyond, and a director that knows her sh!t!

If any thing, they ALL have conflicts of interest if they can’t tell us the financials.

The brother and sisterhood we have with our arts community is essential, but that love and trust comes from telling us where our money is going towards. It’s NOT a heavy lift.

Washington Pavilion, Transparency and FREE youth bus rides

During the Informational meeting yesterday I spoke about the Pavilion’s slow growth in concert revenue and memberships as well as charging to attend regional art shows. (FF: 49:20) Below is a graphic of the current annual report.

During the city council regular meeting I talked about transparency in government (FF: 7:00) and the FREE youth bus rides (FF: 15:10). For clarification, several advocacy groups have been pushing for this for over a decade. Last Fall a couple people from those groups reached out to me to blog about it. I then reached out to former SF School board president Cynthia Mickelson who currently still serves on the board. She thought it was a good idea since the school district has been struggling with their own bus system and she reached out to councilor Curt Soehl and they have been working diligently to get it pushed through the transit board. A big thank you to both of them for their diligence.