Event Center Investment - Is it Gamble?

The SF Business Journal just released an article on the investment predictability at the Event Center site at the Arena/Convention Center. If you haven't read this article in the SF Business Journal, take a moment and read it here.

Good grief! Where were all these developers when the debate on the Event Center was going on? The one thing people may not have understood in the massive campaign to "sell" the Event Center  was that all the information was just "estimates and assumptions." There were no real hard facts to support all those figures of generating revenue. Now that the citizens have voted, we hear from the very people who will develop those investment spin offs from the Event Center.

“I think the new events center will add a whole new dynamic to the area because of its massiveness and newness,” said developer Craig Lloyd of Lloyd Cos. “Will that attract development and entrepreneurs to go out there? I don’t know."

AECOM estimated the events center could attract $6.7 million in new investment, which would result in $30,000 in additional property taxes. “The existing visitor-serving facilities within the complex have had little impact on business attraction to the area,” the report concluded, noting that financing projects might be difficult because the area has not shown a record of many successful developments.
“It’s all true,” Lloyd said. “You’re not surrounded by residential. Rooftops drive restaurants, retail and offices. It’s just going to be tough to go out there. The first couple people are going to have to be real pioneers.”

Developer Jim Dunham of The Dunham Co. agreed. “I think the events center, long term, will be good for Sioux Falls and good for the economy,” he said. “But it’s unfortunate that due to the location it will not drive other development. It will have no impact on the immediate area. It’s not an area where you’d go build a spec strip mall or office building because you’re not going to get anybody to move out there.” The former Oaks hotel site along Russell Street might be redeveloped, but other opportunities are minimal, Dunham said.  “It’s just an area nobody drives on a daily basis,” he said. “I can’t imagine what you would build out there, maybe a convenience store, maybe a liquor store. I can’t imagine what you can add that would survive on just the events center alone.”

Councilor Entenman is optimistic.  Let's hope he can put on his developer hat and help Darrin Smith and Mike Cooper in encouraging developers, hotel and restaurant owners to build or expand out there. No one has wanted to even after the Convention Center was built out there decades ago.

The City is committing a lot of taxpayer dollars to this enterprise. Without their success in transforming that area into an economic and commercial success, it will just become another building in an area of economic desolation. That would be very disappointing and would be a BIG broken promise to the tax paying public who will be paying for it for the next 22 years. Let's hope the Mayor, Smith and Cooper are up to the task. They got the people to vote yes. Now, get to work and transform that area so it will bring in the revenue necessary to pay for it. That would be exciting!

The endless GOP audition for president

Posted byCNN Chief Political Analyst Gloria Borger

Washington (CNN) - It's an audition without end, because the Republicans still can't figure out how to cast the lead role.

Here's how the internal discussion goes: We need someone who is a true conservative. We need someone who is right on the matters we care about - the deficit, immigration, cultural issues. We need someone we can trust, who won't betray us. And, by the way, we also need someone who can win.

It is painful to watch this GOP audition. Is this group of candidates the best the Republicans could produce? Talk about a political party in disarray. They can't even come to an agreement on who their leader should be. I don't know why that is surprising considering the group. Romney and Huntsman are the only two credible candidates and the two of them can't seem to get any traction. Why? Because Romney is not conservative enough and Huntsman won't sign Norquist's tax pledge so he is dead on arrival.

What you have left is a bunch of wannabees who are not ready for prime time and who show it by their "oops" moments and moral dilemmas. A flavor of the month that cannot sustain a lead. It would be hilarious if it wasn't so pathetic. The far right has ruined the Republican Party and disenfranchised the moderates.

Snow Gates - Are They Worth It?

It is that time of year when everyone seems to have an opinion on the use of snow gates. I have never been a supporter of snow gates. It has always seemed to me to be a stupid idea. This idea that government must take care of every little need and want of its citizens is what got us to the federal deficit today.

I picture those big  motor graders going down residential streets having to lift and lower that special equipment every so many feet to accommodate all those driveways. Really, do we have to have an argument about shoveling out one's driveway? Sure, it is a pain in the you know what, but Winter is a pain in the you know what. Shoveling snow off sidewalks and at the end of the driveway is a task that homeowners must do each Winter in South Dakota. If the City is going to do our driveways, maybe they should take care of our sidewalks too. Driveways aren't city streets, nor are sidewalks. Same, same.  Sure it would be nice to have the city take care of my driveway but is it a necessity?

How many single family houses and driveways are there in this city? A lot. How many miles of streets are there in the city?  There are approximately 780 miles of streets maintained by the City. The number of miles grows every year at about 14 miles per year on the average per the city's website.  All I know is that I want my residential street plowed right away and not two or three days after more than 2 inches has fallen from the sky. I also want it plowed curb to curb so I can still travel down the street without going through an obstacle course with all the parked cars on the street. 125 people showed up for a town hall meeting on snow gates and people loved them. The thing is, that test was an ideal situation. Those test areas got preferential and immediate treatment. Two very isolated tests versus the entire city - a little different scenario.

The 2010-2011 Snow Gate Analysis conducted by Public Works has some interesting information regarding the testing of snow gates that occurred from October 2010 through March 2011:

• Total operational time increased 23% with the use of snow gates.
• Fuel consumption increased 31% with the use of snow gates.
• Annual plowing cost impact increased 33% with the use of snow gates.
• Streets are narrower using snow gates - street width was reduced by 7 feet limiting on-street parking, and increased snow in front of mailboxes and fire hydrants for residents to remove.
• Storm Water Inlets are covered with the use of snow gates.
• Snow accumulation of greater than 30 inches poses safety issues and public concerns were expressed at a higher level.

The operational challenges for the Street Division of Public Works were:

• Snow gates need to be removed for snow pick up, cutting ice, pulling sidewalks, and opening storm water inlets.
• Removing or installing snow gates takes an extra 45 minutes each time.
• For snowfalls of five inches or greater, snow gates were not as effective.
• Wider streets take two passes - can't use a sander plow.
• Wet snow doesn't clear the moldboard - need to backup.

The Street Division is going to do another test this season and they are going to use a different manufacturer of snow gates. They are also going to use private contractors this go around. Who knows, maybe this other manufacturer makes a better piece of equipment. We will see.

People in support of snow gates say it is a quality of life issue. People in support of snow gates say they already pay for the public service of plowing streets. People who support snow gates don't want to have to shovel out their driveways. I say fine, just accept the fact that it is going to cost more money, make your streets narrower, and it will take a little longer to plow the snow off of all the city streets. The extra costs and the operational challenges are worthy of consideration by the city council.

I still say they are not worth it. I don't want narrower streets. I don't want to wait longer to get my street plowed. I don't want to earmark more money to the millions already earmarked for snow removal. I want that money to go to fixing and maintaining the streets. A quality of life issue for me is well maintained city streets. A quality of life issue for me is no snow.  But then I chose to live in South Dakota, not Florida or California.

Don't send me ugly comments just because I don't agree with all of you who want snow gates. Personally, I think the City Council will cave and vote yes on the snow gates. Then everyone can start complaining that the city is not getting the streets plowed fast enough and too much money has to be spent on snow removal.  At least everyone will be happy that their personal driveways are taken care of and they can stay in the house, sit in their chair and watch TV.

After all, that is what government is for -  to take care of our every wish and desire, right? When they take care of things we should take care of ourselves, don't complain about your taxes.

Driveways are not streets.  Driveways and sidewalks are personal responsibilities. Snow gates are a want, not a need.

Happy Thanksgiving!

As I gather with my family on this Thanksgiving Day, I am grateful that I am surrounded by people who are caring and compassionate people. We have so much to be thankful for this year. We still have our 93 year old Father with us. We are blessed with young children in our family who bring the joy and wonderment of the holiday season into our lives and we have the anticipation of another new baby girl coming into our family. This Thanksgiving Day we will share fellowship, eat foods that remind us of our dear Mother who passed away, talk fondly of her and enjoy being together again on this day of thanksgiving.

I wish for all of you joy and happiness and love on this Thanksgiving Day. And a piece of apple pie and ice cream.

Should We Vote All the Incumbents Out?

This week has been disappointing. The country's hope that the Super Committee would be able to come to a compromise on the federal deficit was dashed by our elected representatives to Congress who can't seem to come to an agreement on anything. Washington has become so dysfunctional that you wonder if any of them deserve their seats in Congress. No one seems to have the will to solve the problems of our country; they only have the will to save their party's hard line.

Of course, there are those out there who are applauding the Republicans for sticking to their principles and saying no to any tax increase for the highest 1-2% in this country. After all, they signed the Taxpayer Protection Pledge designed by an egomaniac libertarian who runs Americans for Tax Reform which threatens politicians of being targeted at that their next re-election campaign if they either don't sign the pledge or they break the pledge.

Well, here's a thought. Maybe we should adopt the philosophy of KSOO Radio Host Rick Knobe and think twice about re-electing people who can't seem to find common ground and compromise that serves everyone. Knobe read this letter on his radio program yesterday afternoon and I reprint it here without edit. I believe Lauck is a senior advisor/counsel to Senator Thune.

From: Rick Knobe
To: Jon Lauck
Sent: Tuesday, November 22, 2011 2:11 PM
Subject: beyond disappointed


jon,

realize you and i are not close friends. however, i need to vent someplace where it might make a difference........sending something directly to the senators and congresswoman will get lost......

this is a thought process more than anything......

as a citizen, taxpayer, voter, i am tired of hearing,,,"we can't cut this, or that, or the other thing...."   i understand "protecting your base." nobody has to change, altar their course, or even think about traveling the down road differently.......damn the potholes, full speed ahead....

we are now at a "t" intersection....we can't keep going straight ahead....the sharp turn left, raising taxes, will not give us the long term results the country needs.....the sharp turn right, cutting everything, will not give us the results we need either........

i was praying somehow middle ground could be found and we would begin creating "the road less traveled."(at least by the federal government) neither the "left nor the right road people" wanted to create a new road.

we are a poorer country, in all senses of the word, because of it........

this is what i want from john and chrisite.......i want them to stand up and say "in south dakota we can get by without, this, this and this(specific cuts they know could and should be made).....and make them happen....who knows some other senator or congress person might get a conscience and say the same thing.........

jon,  this country needs "leadership." we elect people to lead us....our track record of late is electing people to protect our special interests and hence the problem......

i don't think i voted incorrectly when i voted for john....however, it feels as if he is becoming a parrot, and not a true leader........

i am not sure about my vote for christie.....going to give her a few more months before i decide.........

if congress has not made real and substantial progress on fixing the deficit and debt, my vote will not go to christie, nor will it go to johnson(or his son-don't like family dynastys) nor to john thune....

not ready to throw my tv out the window(network) but am becoming increasingly sad, disappointed, frustrated, and angry about the lack of getting even simple things done...

not one budget resolution done on time...........if this were the private sector.........when the shareholders have their annual meeting, all the board of directors would be fired for lack of competence...........and maybe personally sued for mismanagement.......

i hope you pass these comments on to the senators and congresswoman.......i am not the "enemy." i am a person with some political experience. i know it is not easy to lead. but that is the job......so start leading by specific example..

we know one person can make a difference. we know one person can start a "movement."

i want john, tim,  and christie to make that difference and start the movement.....the consequences for the country if they don't is dire...and so is their political future and legacy....

thanks,

rick knobe

I just don't think Thune, Noem and Johnson have the personal conviction to start a movement. They have their party positions and have been espousing those party positions over and over again. The problem is no one in Washington does.  The public approval rating of Congress has sunk to 9%. The public does not hold Congress is high esteem and yet Washington does not seem to care. They care about their own agenda, their party's agenda.

And that's why we are in the mess we are in. Maybe it is time to throw everyone out and start over. How much worse can it get?

Grover Norquist's Legacy

It is just unconscionable what Congress members are doing to this country. The Republicans are thwarting any effort to come to an agreement on debt reduction because it goes against their number one agenda which is to get Obama out if the White House. They blame the President for massive spending and say cuts should come before tax increases. Democrats say the Republicans are not representing the 99% and that the rich are just getting richer and need to pay more of their fair share. They both are willing to sacrifice the economic condition of this country. The Republicans, however, have a Svengali in their midst that is pulling their strings.

I watched Grover Norquist Sunday night on 60 Minutes and my thought was here is another  man with narcissistic behavior traits who is almost evil in his glee over his control of Republicans in Congress. He is the driving force in pushing the Republican Party toward a  rigid position of opposing any tax increase, of any kind, at any time. The 60 Minutes episode  claimed that Norquist has been responsible for rewriting the dogma of the Republican Party. He wants to reduce the size of government to the size of a bathtub and then drown it.  What is wrong with these elected Republicans who willingly allow this man to control who they are and what they stand for?

When you do something for fear of losing an election it means compromising your integrity and personal character. It is shameful that Norquist has never held elective office and yet his stranglehold on power and pulling the strings of the Republican party is unprecedented . They say there are cracks in his powerful intimidation but it takes courage to stand up to powerful bullies. There are plenty of cowards who are willing to sell their souls to win an election, it seems. His pledge has a strangle hold on Republicans and it is strangling Congress and its ability to come to a compromise on debt reduction.  

When you compromise your principles by letting someone else control who you are and what you think or believe in then you are no longer effective as a leader or believable. Signing a pledge under a threat of being unseated in an election is pure bribery and intimidation.

It was shocking to watch Norquist's glee over how much power he has over the Republicans

in Congress. I wonder how they all feel about being his bitch? I wonder how Speaker Boehner feels about some unelected guy who actually controls the men and women of his party in Congress? Oh, that's right, Speaker Boehner signed the pledge. So did Senate Minority Leader Mitch McConnell, 270 members of Congress and all of the Republican Presidental candidates except Jon Huntsman. He likes to play his little game where he says his pledge of no tax increase is not a pledge to him but to America and their constituants but he says it with the smile of a deceiver while he gleefully talks about the power he wields in the country.

However, the most shocking thing he said in that interview Sunday night was when he talked about his role as simply protecting the Republican brand just as Coca-Cola ensures the quality of its signature product:

Norquist: 'Cause let's say you take that Coke bottle home, and you get home, and you're two thirds of the way through the Coke bottle. And you look down at what's left in your Coke bottle is a rat head there. You wonder whether you'd buy Coke ever again. You go on TV, and you show 'em the rat head in the Coke bottle. You call your friends, and tell them about it. And Coke's in trouble.
Republicans who vote for a tax increase are rat heads in a Coke bottle. They damage the brand for everyone else.

It takes a rat to know a rat.  

2nd Reading of An Ordinance to Authorize Event Center Debt

The ordinance  authorizing the issuance of sales tax revenue bonds to pay the costs to design, construct, equip, and furnish the event center and associated site improvements and the cost of issuance of the bonds is up for second reading and passage tonight at the City Council meeting.

It is a rather large and complex ordinance in that it is a sizable debt authorization for a venue that has been contemplated and controversial for over a decade. The ordinance addresses two areas. First, the ordinance will address all the debt amendments that have been authorized since 1988 into this one document. Second, the ordinance authorizes the issuance of Series 2012 bonds and spells out the most important details relating to the new sizable debt:

• The bonds may be issued as tax exempt bonds, taxable bonds, or any combination thereof.
• The overall true interest cost shall not exceed 4.75% issued on a tax exempt basis or 6.50% issues on a taxable basis.
• The maturity date shall be no later than November 15, 2037. 

Once the Council acts, the bid process shall begin. We should know in January what kind of bonds will be issued, what the true interest cost will be and what the maturity date will be. I know one thing that is probably a sure bet. Before this construction debt is paid off, every council member who authorizes this debt will be long gone too.