The Irony of the Ethics Board Decision

The Ethics Board has rendered its decision and it is time to put the issue of Entenman's conflict regarding his building at Burnside behind us. This has been a very heated debate in the public, sometimes not very civil.  However, this issue needed to be addressed by the proper governmental body and it was - so be it.

This is what an Ethics Board member stated:  "Whatever we've done in that area hasn't necessarily had a good financial outcome for area businesses," board member Bill O'Connor said.  The Argus Leader reported the board based its decision in part on the fact that land values didn't go up after the Sioux Falls Convention Center was built in the mid-1990s and after upgrades were made to Sioux Falls Stadium in 2000.
 
There is great irony in the Ethics Board decision.  Entenman is cleared of a conflict of interest so he can now vote with the mayor on putting the biggest economic engine this city will see in decades in a place that even the Ethics Board sees as having no land value potential.

Although Entenman argued that a new events center wouldn't do much for landowners in the area, he did maintain that it still would be good for the city. "That's where the power of having it there is going to be," he said.

The mayor and his team of 4 councilor followers are hell bent on not changing their position regarding the Arena/Convention Center site. I just don't get the mentality that once you make a decision, you can't change it. It's like they have adopted a stance of "don't confuse me with the facts."

The irony of it all. This would all be funny if it weren't so sad for the city.

What Shall We do with the CIP Money Left Over?

It seems everyone has an opinion on how to use the $3.8 million that is unreserved and undesignated in the sales and use tax fund. 

The mayor's administration has suggested that maybe the $3.8 million  be used as a down payment for the Event Center.  The city council asked the administration to identify uses for this money related to the city's infrastructure and equipment needs.

The city's finance director outlined how to best utilize the excess funds in the capital program in 2011:

• .8 million at the Arena for a scoreboard lighting system. This item was not identified in the 2010-2014 CIP project needs, nor was it programmed in the 2011-2015 CIP. This is a new expenditure need and has been discussed at city council meetings earlier this year after the Summit League Tournament.

• 1.2 million for street improvements, specifically 41st Street from Western to Minnesota, Minnesota Avenue from 22nd Street to I-229, and Marion Road from Madison to 60th Street. The Street Department lists two projects in the 2011-2015 CIP related to street improvements, one for overlay and seal coating of asphalt streets and one for concrete pavement restoration and joint replacement. The program dollars for the asphalt road repairs in 2011 are $6,127,500 and $1,960,000 for concrete pavement restoration. Have all these dollars been expended or obligated already which is requiring the additional 1.2 million to be identified as a need?

• .1 million for the Fire Department's Headquarters Parking Lot. This project need was not identified or programmed in the 2011-2015 CIP.

• .2 million for Siouxland Libraries, specifically the Ronning Branch library parking lot and the Caille Branch HVAC. The Ronning Branch parking lot repair is not programmed as a project need in the 2011-2015 CIP. However, there is a project programmed in 2011 for $26,000 to replace the HVAC unit at Ronning that is 16 years old. The 2011-2015 CIP lists a project for 2011 in the amount of $26,600 to upgrade the Caille Branch HVAC so why this is identified as a use for the undesignated sales and use tax is confusing.

• .3 million for Carnegie Town Hall to replace the roofing system, window lintel repair, and tuck pointing. It is interesting to note that $79,000 for this project was programmed in the 2010-2014 CIP for plan year 2011 but this money was cut for 2011 in the 2011-2014 CIP.  The majority of this improvement project was programmed in 2012 in the 2011-2015 CIP. If this project is already programmed 2012 why is it being suggested now?

• 1.1 million for City Hall HVAC repairs. This repair project was originally programmed at $595,000 for 2012 in the 2010-2014 CIP. This project was cut all together in the 2011-2015 Capital plan.

The sales and use tax fund accounts for the second penny sales tax and is used to fund general capital projects including highway and streets, parks and recreation and other capital infrastructure and equipment needs of the city.

In my opinion, the first priority for these dollars should be to take care of current infrastructure and building maintenance needs and secondly to plan for future infrastructure needs related to growth that impact streets, parks & recreation, future fire stations, etc.  "Wants" come third after those needs are met.

At the end of 2010, the city's financial report stated that the sales and use tax fund experienced a positive $.8 million change in the fund balance, ending with a balance of $27 million. $8.4 million of that balance was unreserved. Of that unreserved $8.4 million balance, $4.6 million was designated for capital projects that will be carried forward into 2011. That left the $3.8 million unreserved and unobligated that everyone is talking about how to spend.

Spend this unreserved, unobligated money on current needs related to general capital projects. Preserving current buildings and taking care of facilities maintenance needs should never be compromised for "wants." It is a very short sighted approach to maintaining the city's current building and maintenance needs.

Deteriorating streets need to be fixed. If all the money programmed in the CIP for 2011 is not enough to fix these deteriorating streets, then unreserved, unobligated reserve money should be used for this purpose.

The city needs to care for existing infrastructure and maintenance needs before it starts dreaming how to use the money for something that is not even built yet.

A Trip to Fort Snelling

Once a year, around the time of the Memorial Day holiday, my sister and I drive to Fort Snelling National Cemetery in Minneapolis, Minnesota to place flowers on my Mother's grave. Thursday was the day and my sister's daughter came with us. We used to take my father with us but he is 92 years old and no longer able to make the trip from Mankato.

 It was a beautiful day, full of sunshine and blue sky. My mother is buried there because my father is veteran. When he dies his casket will be placed on top of her casket in the same burial plot. His name, rank and dates of birth and death will be one side of the headstone and her name will be on the other. For now, only one side of the headstone is engraved with her name.

The cemetery is filled with people this time of year - young people, middle aged people, old people, and children. We all have something in common. We come to honor a loved one who was either a veteran or was married to a veteran. My father served in the Army as a Captain during World War II and has earned the right to be buried at the national cemetery. It is very important to him that he be buried at Fort Snelling. It was important to him that my mother was buried there when she died in 1983.

Those of us who come to honor our loved ones place flowers and flags at the headstone of our beloved mother, father, wife, husband, brother, sister, son or daughter. We are all reflective in our thoughts. We may laugh and tell stories or reflect on a special memory or two. Some have a picnic at the grave site of their loved one. Some stand silently or sit touching the headstone. Some weep softly.

Today as I was walking away from my mother's grave, I watched a man painstakingly unwrap two flags and place them on either side of one of the white marble headstones. He stood there before the headstone for a moment, head bowed. Then he smartly saluted, drank a toast and silently turned and walked away. Honor, love, and respect for someone obviously very dear to him. I just witnessed a very personal and lonely moment in that man's life and my heart ached for him.

Fort Snelling is an awe inspiring, reflective place. It is especially awe inspiring this time of year. United States flags are flying everywhere and line the streets of the cemetery. There are acres and acres of white marble headstones lined perfectly straight, row upon row. This is but one national cemetery in this country. To contemplate the multitude of men and women who have served their country and given their lives so we can live free is overwhelming. On Memorial Day, there will be a celebration and the cemetery will be filled to overflowing with people and cars.

I like to go to Fort Snelling before the big celebration on Memorial Day. It is a peaceful, private time. A trip to Fort Snelling - a bittersweet but yet heart filled visit filled with love for a mother I miss dearly and gratitude for the many men and women who bravely served our country.

Questions Still Unanswered

1.Answers about convention/events in the AECOM report – the mayor needs to back up their numbers and get the questions answered. The dog and pony show at the convention center didn't do it.

2.If McCart Fields isn’t an option for parking at the arena site, what is the preferred alternative and what will it cost? Those costs should be discussed by the city council before a final vote on location preference.

3.What makes Sioux Falls different than virtually every other city in the country that build their events centers and convention centers in the downtown?

4.Event experience – repeat business – why don’t we want to highlight the best and most unique aspects of Sioux Falls when attracting outside visitors – the Falls, River Greenway, Historic Downtown with great restaurants, bars and unique shops?

5. What happened to the River Greenway Project excitement and commitment in this entire process?

6. Why is flat floor space expansion at the Convention Center the leading argument for building the event center at the arena site when the increase in events is just a guess?

7. If this is a great business decision, why don't we hear more vocal support from community business leaders?

8. How are we going to finance the construction costs?

9. Can the General Fund support the operating costs after it is built? How much are the projected annual operating costs?

10. Can Councilor Entenman vote on anything related to the Event Center until a decision is rendered by the Ethics Board and formally acted on by the City Council?

Talent Right Here in River City

I went to see the Sioux Empire Community Theatre's production of Annie Saturday night and it was pure delight. I am amazed at the excellent local talent and the quality of productions produced by the Sioux Empire Community Theatre.

The Sioux Empire Community Theatre's home is at the Historic Orpheum Theater in downtown Sioux Falls. The Orpheum has been remodeled and restored and it is beautiful.  The theater seats around 700 people and it sure looked like it was a full house on Saturday night.

The individual performances were flawless right down to the ensemble cast. The orphans stole the show, especially the character Molly. Such a little girl who packed a punch with her personality and spunk.

The young performer playing the lead role of Annie is a seventh grader and she belted out songs that made me think of the young contestants on American Idol. I wondered if the parents of all these child actors came to each and every performance to watch their children, how proud they must be of their children, and how emotional it must be for them to sit in the audience and listen to the audience respond to their childrens' performances night after night.

The actors playing the roles of Miss Hannigan, Grace Farrell, and Oliver Warbucks have been in other SECT performances but I think their performances in Annie were just flawless. Their acting made the story come alive and I found myself going from smiling, to outright laughter and clapping with enthusiasm after each scene.

What a pleasant evening. A standing ovation to Artistic Director Larry Etten for his direction of the production of Annie and his directorial leadership for SECT. This play was so professional. I left with the feeling of awe at the talent I witnessed that night.

Another excellent opportunity for people in the area to visit the Orpheum Theater in the heart of historic downtown Sioux Falls. This community is so fortunate to have so many volunteers who have the passion for the arts and are willing to donate their time to provide us with this most marvelous form of entertainment.

A Sprint View or a Mile View to the Finish Line

Anybody watch the May 2011 Ask the Mayor? The second part of the segment dealt with the Event Center. The mayor said there was much to consider regarding his location recommendation and what made the most economic sense to him was:

• the Arena Convention Center site will generate more sales tax dollars.
• Greater return for our dollars
• More people coming into town.
• Utilize existing infrastructure.
• Bigger events, more events, simultaneous events.
• Common sense played a roll in the decision.
• Consideration of what we already have - 4 lane roads, good supply of parking, a 15 year old convention center, an arena.
• What the people want - he was told flat where the people wanted it to be during the campaign and since he was elected. The vast majority prefers it at the arena.
• 6 out of 10 people will be coming from out of town. We have to cater to the customer.
• The arena site is more prudent and cheaper to built there. We will get a return a lot quicker.

The mayor said the Build It Downtown group is a minority and they have to realize what the majority want. They want it at the Arena/Convention Center location.

When asked to define the difference between commercial and economic development, the mayor said:

• There is a distinct difference between commercial development and economic development.
• The reason you build it there is for total economic return - that's sales tax dollars.
• You don't build an event center to bring new restaurants, hotels and shops. They are not the main indicator of success.
• You create a powerful economic engine when you build an event center connected to a convention center because major, major events as well as major, major conventions will occur.

I am still a little fuzzy on the mayor's definition between commercial and economic development. I have yet to hear a really good answer to the difference as he sees it and he has been asked about it a number of times now. He makes no mention of the opportunity for private development at his favorite site. Really, how much private land is available for development adjacent to the arena site? Shouldn't expanding property tax revenue be part of that economic development discussion?

I know I am probably beating a dead horse to death but let's be realistic if you want to talk about commercial or economic development. An event center along the river greenway at Cherapa Place has more adjacent land for private development than the Arena/Convention Center site. There is land along the river and in the uptown area of Falls Park. When the relocation of the railroad out of downtown happens, almost 16 acres of prime real estate will open up for parking and development opportunities. 

To me, this mayor does not see the value (or maybe he doesn't understand the value) in planning for the future. He is only interested in what he can make happen quick and cheap just to get it done. We shouldn't be focused on getting a return "a lot quicker." The city should be focused on a return that will be sustaining for 50 years or longer. Contrary to what this mayor thinks, there is value in long term planning.

The mayor is banking his return on investment forecast mainly on more major, major events and more major, major conventions. Estimates made by a consultant. Estimates made by consultants 15 years ago when the convention center was built and still haven't materialized.

I hope the city council has the long view instead of the short view. The city's future in terms of economic development and return on investment is dependent on it. It's the mayor's job to convince the voting public that this thing is doable. I wonder if he will make it to the finish line.

Event Center Envy Across the Border

KELO-TV did a story last night regarding Lincoln, Nebraska's process in deciding the location of their new event center. It seems the city faced a similar location struggle Sioux Falls is currently facing - where to put it that makes sense for the entire city.

Lincoln was faced with organizations supporting 5 different locations, no one wanting to budge and all locations in more remote areas of the city with limited hotel, restaurants, or shopping nearby.

The story states former mayor Coleen Seng knew it was her responsibility to bring all of the parties together for the benefit of the entire community.

Key points outlined by the former Lincoln mayor, council member and Lincoln business leader:

• The task force agreed and recommended the downtown location because of its overall benefit to the entire community. 
• "The facilities that have been built to date on the outskirts of a community do not pay for themselves. That brought about the conclusion very quickly that it needs to be down in the core of the city where the tax revenue will help pay it off," Campbell said.
• They go to a game and they go home or they get back on the interstate. That's what we're trying to avoid.
• “It's really just the vibrancy that you create for an area. People coming in, going out to eat before the show, taking in a show, and then maybe spending the night here in Lincoln. That's the ancillary vibrancy that we think you get from location," Marvin said.
• "How you pay for it is a critical, critical element," Campbell said.

What more can you say about a community with leadership like that? A mayor who did not dictate the position but allowed the community to drive the process and bring it to a vote. A process that allowed input, that required listening to all factions in the community, that fostered consensus and ultimately support for an event center.

I think Yvonne Hawkins said it best today in her column: Sioux Falls could use a good politician right about now.