Building a Revenue-Generator

A Downtown Events Center Will Create Good Jobs, Help Fund Sioux Falls Schools & Benefit the Entire Community by Keeping Property Taxes Down

Expanding Property Tax Revenue
Property taxes, which are the basic funding component for the schools, drawing 67% of the property tax revenue, must be a major consideration for Mayor Huether and the City Council.

The land associated with the Arena site does NOT provide the opportunity for extensive private development. A review of all land adjacent to the Arena site indicates there is very little private land available for development at the Arena. The result is a loss of additional property tax revenue that could be generated by private development associated with this $100 million public investment.

From the Sioux Falls Business Journal:
One Developer’s Perspective of the Arena Site: An Area 'Still Kind Of Limping Along' -- Doug Brockhouse grew up in the neighborhood, which has been known through the years as West Sioux. He also owns a business, Arena Storage, on West Second Street. Some of the streets are at unusual angles - such as the diagonal Burnside Street - because they were built around a huge military base. Remains of some of the barracks still are visible in the neighborhood.

Today, the area "is still kind of limping along and nothing has really ever taken flight out there," said Brockhouse, a principal with Bender Commercial Real Estate. Brockhouse doesn't envision much more development if an events center is built there. "I really don't see much growth out there because of it," he said. "I really don't." (Sioux Falls Business Journal, Dec. ’10)

Conversely, building the new events center along the river greenway at Cherapa Place will spur development in a way out city hasn’t seen since the opening of the Empire Mall. Much land has opened up for private development in the downtown area – especially along the river and in the uptown area of Falls Park. Additionally, with the re-location of the railroad out of downtown, 16 acres of prime real estate will open up for parking and development opportunities. Developers and entrepreneurs are looking for the city to spark their plans with a new events center, which will bring upwards of 500,000 additional visitors to the downtown area. Possibilities for public and private partnerships will be extensive.

Collecting More Sales Tax RevenueThe sales tax impact is equally important, and an important consideration in locating the events center is the amount of increase in city sales tax it will generate. After all, any financing will most likely be secured by sales tax revenue bonds, regardless of the location.

Recently, local television stations interviewed out-of-city residents about their preference for an Event Center. The consensus of the brief report was something to get in and out of easily. We want the center to be convenient for out of town visitors. But we must be careful to not make it too convenient --- we need visitors to see the best of Sioux Falls, have a great event experience so they come back again and again – and we want them to stay and spend money. This does two things: (1) it generates economic activity, which generates jobs, and (2) it generates sales tax revenue, which helps pay principal and interest on the bonds borrowed to build the events center.

Locating the EC on a site that allows visitors to easily flee Sioux Falls will continue to be very costly to Sioux Falls taxpayers. If the location causes SF to miss other opportunities for development, it will sacrifice economic activity, additional property tax revenue and jobs.

Source: Build It Downtown Facebook Page

Leadership, A Learned Skill

I got the following joke from a conservative friend of mine the other day. You know how jokes, etc. float around on the Internet and Facebook and go viral.  I tried to track down the source for credit but to no avail as is usually the case when you receive such forwarded stuff. Who knows if it is true or not. It doesn't really matter.  It is pretty humorous and indicative of a lot of people we probably know in our daily lives who may exhibit the same kind of "leadership" traits.

It never ceases to amaze me the number of people who don't listen first or get the facts before acting. Human nature, lack of security in one's self, a grandiose sense of importance, call it what you will, those traits or characteristics can wreck havoc in our daily lives and in the workplace. This joke might be an over the top, hilarious exhibition of those traits, but somehow, I am sure it will hit home to anyone who works or has worked for a boss who acts before having all the facts. Here it is:

If you've ever worked for a boss who reacts before getting the facts and thinking things through, you will love this!

Arcelor-Mittal Steel, feeling it was time for a shakeup, hired a new CEO.  The new boss was determined to rid the company of all slackers.

On a tour of the facilities, the CEO noticed a guy leaning against a wall.  The room was full of workers and he wanted to let them know that he meant business. He asked the guy, "How much money do you make a week?"

A little surprised, the young man looked at him and said, "I make $400 a week. Why?"
The CEO said, "Wait right here." He walked back to his office, came back in two minutes, and handed the guy $1,600 in cash and said, "Here's four weeks' pay. Now GET OUT and don't come back."

Feeling pretty good about himself, the CEO looked around the room and asked, "Does anyone want to tell me what that goof-ball did here?"

From across the room a voice said, "Pizza delivery guy from Domino's."

There were two people in my professional life who made an impact and always suggested ways to improve one's abilities. They both gave me excellent suggestions on reading material about leadership. I don't care who you are or what you think of yourself. The day you stop learning and the day you stop trying to be something better than who you are is the day your skills in the workplace stop being effective. Just because you are in charge or are the top dog, doesn't mean you know everything.

Professional speaker, author and consultant DeeDee Rapp (JourneyWorks), who specializes in communications and customer service suggested the book, The Leadership Challenge by James M. Kouzes and Barry Z. Posner, to me. It is an excellent book for self awareness and personal growth.

T.J. Reardon, businessman, banker and consultant specializing in identifying and developing strategies to remove obstacles limiting one's success in the workplace, suggested the following books as a training tool for the city management team back in my work days. These are excellent books and good reading as well when you are in positions of leadership in any organization. There are 4 in the series and all of them are must reading: The Five Temptations of a CEO, The Four Obsessions of an Extraordinary Executive, The Five Dysfunctions of a Team, and The Death by Meeting.

Good leaders are never smart enough or good enough and should constantly listen, learn and work to improve their skills. The learning process never stops no matter how old you, what your position is in an organization, or where you are in life.

MIA - State of the City Address

One of the many duties of the mayor, as spelled out in the City Charter is the duty that the mayor communicate with the city council on the affairs of the city. The City Charter states:

Section 3.03.  Mayor's duties and responsibility.

The mayor shall, at the beginning of each calendar year, and may at other times give the council information as to the affairs of the city and recommend measures considered necessary and desirable.

This duty was dubbed "The State of City Address" way back in former Mayor Hanson's term of office. It was presented every year of former Mayor Munson's term of office.  

It was an exercise of information gathering for all departments.  It was used to communicate information on an annual basis to not only the city council but to the citizens of Sioux Falls on the accomplishments and the status of affairs of the city . It was a big deal. It was considered an important speech by the mayor. It was given serious attention.

It is now March 29, 2011. I think the State of the City Address is MIA.

Reel Dakota Film Society

Tonight I went to Reel Dakota Film Society's showing of the Swedish box office hit "Simple Simon" at the Belbas Theater, Washington Pavilion. I was not even aware of the Society until my niece's store, Holsen Hus, became a sponsor for this Swedish film. The theater was practically full and it was wonderful to see so many people take advantage of this alternate movie offering.

I have never been intimidated by watching a foreign film with sub-titles. I find it fascinating, actually. It is amazing how easily one adjusts to watching the subtitles and listening to the foreign language spoken by the actors. You become so lost in the story telling that the foreign language almost becomes a melodic backdrop to the story. This was a sweet and sad comedy about an 18 year with Asperger's who wanted to find a girl friend for the brother he loved and lived with. It was just a fabulous movie and I was so glad I ventured out on this cold March night.

Reel Dakota has a number of film offerings over the next 6 months and will be hosting a film festival in October of this year. Not all the film offerings are foreign films with subtitles. Actually, in April,  Reel Dakota Film Society will host the world premiere of YOU DON’T KNOW BERTHA CONSTANTINE directed by Andrew Kightlinger, a Pierre, South Dakota native and an Augustana College graduate.  Go to their website for more information on their April film offering. 

The Society is offering an outstanding opportunity for those who love to go to movies to view films that are not normally offered to the general public in Sioux Falls.  I feel fortunate to live in a community that offers it's citizens a multitude of events in the areas of  music, theater, sports, and arts. You can't say there is nothing to do here.

 Reel Dakota Film Society is a non-profit organization. Check out their website and their Facebook page. Kudos to the people who started this organization and are committed to bringing these movies to the general public.

Is the Railroad Relocation Project Still a Top Priority for the Mayor?

On November 5, 2010, I wrote a blog titled Downtown Development/Railroad Relocation Project (City Business label).  I cited the following in part: 

In the Mayor’s first Ask the Mayor segment on Citilink/Channel 16 one of his priorities coming into office was the railroad relocation project. He said, “We believe strongly that we can get that accomplished pretty quickly and we need to.  It’s money sitting out there that can help us grow jobs, grow the economy as well as get us prepared for development in downtown Sioux Falls, so let’s take advantage of it.”

Mayor Huether made another comment on the first Ask the Mayor program about not knowing why former Mayor Munson hadn’t got this done but that it was a priority for him. He said it should have been done a few years ago because it will develop Sioux Falls, develop downtown and that we needed to take advantage of the dollars by the Federal government. He said he tasked Cotter and his team to get this done.


On November 15, 2010 the mayor and staff gave a presentation to the city council in which they laid out a plan and timeline whereby the tracks would be removed by 2014.  http://siouxfalls.org/~/media/documents/publicworks/engineering/projects/rr_relocation/rr_reloc_council_presentation_111910.ashx

The architect from Denver recently said  the tracks won't be moved in time for the Event Center project. Has the timeline for this project changed from the target date of 2014 for the removal of the railroad tracks?

Where are those quarterly updates promised last year? It's the end of March 2011 and nothing yet from the administration. What is the status of that congressional earmark of $40 million? What about that Environmental Assessment?  It would be nice to hear a status update from the consultants and staff on this project soon.

This railroad relocation project impacts the parking criteria related to the site evaluation for an Event Center. Between 800 to 1200 parking spaces are in question because of these railroad tracks. There is speculation of some feet dragging on this project in order to cement the parking issue for an event center location.

A lot of questions about a project that the mayor said was his top priority when he began his term as mayor. I think the good folks of Sioux Falls need an explanation on this railroad relocation project.

Women’s rights and the never ending battle over abortion.

Abortion…is there any other subject that evokes such vitriol and division in this county, in our states, in our communities and yes, even within families?  Sometimes I wish Roe v Wade would just be overturned so that this fringe of the Republican Party no longer has a bully pulpit to spew their rhetoric. 

I would venture to guess that most people who are on the side of “Pro Choice” are not in support of  abortion and would  never want to be faced with an unwanted pregnancy and the thought of ever having to contemplate such a procedure in their personal life.  

This debate, however, is about freedom of choice and individual rights for WOMEN.  It is ironic to me that this is the same group that is always citing the importance of individual freedom and limiting government intervention in our financial and personal lives and yet wants to involve themselves in limiting the individual health freedoms for women.  

This is about the rights of a woman whose body is transformed by pregnancy, the one who must labor in birth, the one who becomes in most cases the primary caregiver.   We all wish for the rosy scene of an intact family, a loving husband who provides support both emotionally and financially, but reality sometimes paints another entirely different picture. 

What is a girl to do when faced with the prospect of raising a child on her own without any support from the child’s father, from her family and yes, even the government and general public who look at her in disdain for being a single mother and berate her for being lazy, for not getting a job as she uses food stamps at the local grocery store or pulls out her Medicaid card at the clinic.  We taxpayers love to hate these freeloaders, these mothers and their babies. How do we reconcile these contradictory actions?

We look down on the poor and lower income class.  We decry the use of tax dollars for programs to help women and children.  We moan in disgust at those single women with 2, 3, 4 children with no father in the household to help out.  We sit by and do nothing for homeless families.  We decry that our tax dollars are used for education, for programs that support families and children, for school programs that provide hot meals so kids get at least one or two hot meals a day.  We don’t step up and adopt any of those unwanted children languishing in foster care most of their lives.  We don’t want to fund WIC or Head Start for the economically disadvantaged or Medicaid for the lower income class. How did we become this uncaring nation? 

People don’t want to talk about birth control, contraceptives, or give education to young people to prevent unwanted pregnancies.  Families aren’t involved enough with their children providing information about risky behavior to prevent unwanted pregnancies.  Goodness, half the time parents are so busy working two and three jobs to support their families; they don’t seem to even know where their kids are or what they are doing.  We give them everything, but our time and attention or an education in morals. Not every family is like this, of course, but not every girl is facing an unwanted pregnancy either. 

Is abortion the answer? I hope not.  Is abortion the alternative to birth control?  I fervently say no.  Will abortion go away after we pass all these laws to restrict it?  No, it won’t.  And it won’t go away when you overturn Roe v Wade either.  It will just be done in secret like it was before.  Let’s just go back to the way abortions were performed prior to Roe v Wade.  Let  the wealthy women who can afford them travel to where ever it is they can easily get one in privacy and let the poor women get them in the back alleys or at home with coat hanger like they used to. Let’s just kill off the mothers instead from botched abortions and infections.

The SD Legislature and Governor Daugaard did a disservice to the citizens of SD who have spoken through the ballot box that they did not support legislative action to restrict women’s rights.  They aren’t listening to the majority.

Half of all states, including SD, already require a 24 hour waiting period. I personally don’t have a problem with that 24 waiting period. SD is the first to require a 3 day waiting period and a trip to a pregnancy help center.  She must now see a physician, then a pregnancy crisis center and then back to the physician again. There is no argument that having an abortion is a gut wrenching decision for any woman.  There is no argument that counseling is important. But, this new law seems to be the personal agenda of Roger Hunt and Leslee Unruh who just happens to have a vested interest in the very pregnancy crisis center women in SD must now be sent to. 

SD is still fighting a lawsuit from the 2005 legislation passed that required a provider to tell a woman that abortion ends a human life and that abortion raises the risk of the woman to suicide.  The AG’s office won’t say how much defending that lawsuit is costing SD, citing “attorney/client” privilege. That statement is so baffling, considering it is being funded by tax dollars, OUR dollars, so aren’t we the client and aren’t we as citizens of the State of SD entitled to know how much of our tax dollars are being spent to defend ANY law that is being challenged in Court and defended by the State of SD Attorney General’s Office!!!!

Leslee Unruh, owner of the Alpha Center, says now that she got this new law passed and signed into law, her next goal is to raise money to defend it in Court.  The SD legislature and Governor passed a law for its citizens knowing it was going to face legal challenge on the premise that Leslee Unruh and Roger Hunt would find private money to defend it?  Does this not seem right to ordinary citizens of this State?

How did we get to the point where religious fanatics have somehow taken over to interfere in our legislative and private lives?  The citizens of SD have voted down these over the top attempts to project their religious beliefs on ordinary citizens and still this legislature passes more laws and the Governor signs the bill against the will of the majority populace. 

This law is a contradiction to the State's majority party position of protecting individual freedom and limiting government intervention in our personal lives.

If the legislature and the Governor believe this law is constitutional, then they should not rely on private money to defend it.  Hypocrisy and poor government at the highest level.

The Ongoing Saga called Event Center

I went to the the Information Meeting on Monday, March 21st at Carnegie Town Hall. It was the first time I actually went to hear the Event Center Update Report in person. I usually just catch it online. The place was pretty much full of people which was good to see. People actively participating in their city government. I just wish people would get out and vote at city elections, but I digress.

The important people of the Event Center Update are the consultants. No doubt about it. They did a nice job. Why then do we have to start every update session with inane bullet points and comments that sound like a sermon or lecture on how it takes time, we still won't all agree, communication strengthens confidence, the city council is doing their part and providing leadership, the insatiable demand for more, we need to remain professional and respectful, we are continually learning and we are getting smarter, Sioux Falls, bla, bla, bla.

I just wish the mayor would get up and introduce the consultants and let them give their progress report. I don't think I am the only one who is tired of his meaningless introduction and endings which essentially provides nothing more than the sound of his own voice with no facts and meaningful information related to the progress of the project.

The Site Evaluation Criteria gave Cherapa the nod as the best downtown site with two problem areas: available parking and the ability to share amenities and space. The consultant looked at sites all over town including the mall area. Cherapa and Arena sites are still the best two sites after all the studies that have been completed over the years. So, I guess the people that still want the Event Center out by the interstate or out at the mall need to come to terms that those sites aren't viable for an Event Center.

The consultant said the traffic issues related to the Cherapa site have been laid to rest by the consultant. They do not believe there are traffic issues for the downtown location. All this talk about retailers wanting it downtown so they can make money is a bunch of bunk. The retailers are not the drivers of the downtown location, they are supporters of the downtown location. Sure they will benefit from the Event Center being downtown. At least there are shops and restaurants downtown in which to frequent. There is nothing out at the Arena/Convention Center. This cockimamy idea of driving in and driving out in 15 minutes is unrealistic and finally, we hear that traffic is not an issue with a downtown site.

What else did I hear at the meeting?  Well, I heard that the building, whether built at Cherapa or the Arena/Convention Center, will be comparable. The Convention Center provides additional floor space but otherwise the building built on either site would be pretty similar.  Parking will be the difference in identifying the best site for the Event Center.

Both sites require adding additional parking. Walking 5 blocks in the winter is not a positive for either site. Unfriendly walks at both sites. The Cherapa site needs 800 to 1200 spaces and the railroad tracks are a problem. The Arena/Convention Center site needs to add parking spaces as well in order to make it work. Options there are taking green space (McCart Park), maybe Legion building, buying houses, etc. in order to build additional surface parking. It seemed to me that the consultants felt the options to add parking spaces at the Arena/Convention Center were easier to solve than at Cherapa. Those darn railroad tracks.

The consultant said we need the right amount of parking on the first day it opens. Well, that just about sums up the decision on parking to me. Those darn railroad tracks. Sounds like a done deal to me.

What would happen if a major concert sold out to capacity at the Arena/Convention Center site and there were other events going on out there? I was told the consultant said it would max out parking and they would have to limit other events. That doesn't quite make sense to me. Most sporting events, conventions, etc., are booked in advance. Concerts usually get booked based on tour dates. Sometimes with not a lot of lead time. So if they get an opportunity to book a big concert and there are already events scheduled at the Arena or Convention Center are those other events going to get bumped because it would create a parking problem?

Everything you read about Event Centers is that each one has a major anchor. Who is the major anchor for our Event Center? When asked, the consultant said, the main anchor is basketball, football, hockey,  but no, they haven't talked to any of the sports teams yet. Why not? Will they come to the event center or will they stay at the Arena? When will those discussions take place? Will it happen before the public vote? Will the answers be included in the final report presented in April? If these sports teams go the Event Center, who is going to use the Arena?

Consultant says that construction costs are escalating and there needs to be continued momentum to keep the focus on a November vote. The longer this goes on, the more millions it will cost to build the Event Center. Well, we all know that this has been a long process, and the more we talk and no action the more it is going to cost. Still, rushing to a decision without all the information is not the answer either. I hate it when government moves forward on a project without thinking through all aspects. That usually costs more money too. You usually miss something big or you do something on the cheap because you didn't plan the costs right. So all you people out there who keep asking questions and slowing down the process just stop it. You are costing the project money. I guess we should just be quiet and accept what we are told by the mayor and his team, no questions asked.

Two big things are going to happen on April 18th: the economic and develoment analsis will be completed and the city will present the final report.

Councilors asked what next after that and what would the ballot look like? I had a hard time following the mayor on that answer. First I thought he said the Council would decide, then he said if they couldn't decide he would decide. I am not sure who is going to finally decide. Who knows what the ballot will look like, we just know there will be ballot in November.

And I am really interested in hearing what those short-term "nice to haves" are that conflict with longer term, more expensive needs of Sioux Falls. He says,"It is unrealistic to build a new events center for Sioux Falls without sacrifing somewhere else." What exactly are we going to give up in order to complete the mayor's vision for an event center? I think that needs to be brought out in the open, quantified, listed out, whatever so we know exactly what we are giving up to get this vision of his completed. I look forward to hearing that at the final report the week of April 18th.

I am still waiting for the financing plan. Saying the city should allocate the $3.8 million in unobligated funds from the CIP as a downpayment to the $15 million cash component of the financing plan seems like a pebble in a huge lake to me. A $100 million project and we talking about a $3.8 million downpayment at this late stage. I am thinking we need something more substantial that that little bit of information.  We've got a long way to go, good folks of Sioux Falls, to see a finance package before the November vote.

As the mayor pointed out in his slides:

•  I know it seems slow, but hang in there!
• Thank you for your time.
• Good things to come, Sioux Falls!