Informational Meeting

MINUTES Informational Meeting Tuesday, January 26, 2021 at 4:00 PM Carnegie Town Hall, 235 West 10th St., Sioux Falls, SD 57104 1. Call To Order Council Members Present: Janet Brekke (via telecom), Alex Jensen, Rick Kiley (via telecom), Greg Neitzert, Marshall Selberg, Curt Soehl, Pat Starr Council Members Absent: Christine M. Erickson Council Chair Greg Neitzert called the meeting to order at 4 p.m. A roll call vote was taken at this time for acknowledgement of Councilors calling in. 2. Committee/Commission Reports A. Tuthill House Resource Group: Thursday, January 21, 2021 (Council Member Brekke) Councilor Janet Brekke provided an update of the meeting. She spoke about the Finance Committee, final design, a garden area, and of bringing a presentation to the Council in February. 3. Councilor Remarks Councilor Rick Kiley recognized City Clerk Tom Greco for his fifth anniversary with the City. 4. Presentations A. TIF 23 - Foundation Park North Update by Bob Mundt, President, Sioux Falls Development Foundation; and Jeff Eckhoff, Director of Planning and Development Services Presentation: Approximately 20 minutes followed by discussion Eckhoff provided opening remarks. He spoke about the recently released 196,000 population estimate for Sioux Falls and how that takes the City to another level. The City is now in competition with cities like Omaha, Lincoln and Kansas City. He explained that this TIF (Tax Increment Financing) request is different as it is for more than 460 acres of unimproved land. This is a public/private partnership with the Sioux Falls Development Foundation. Eckhoff said one of the keys for this  project is the $30M Economic Development Competitiveness Fund, which will be used for future identifiable cost on a case-by-case basis. Mundt began the presentation by mentioning previous development parks; the first one began in the 1970s. Proposed TIF #23 borders north of I-90 and west of I-29, on 540 acres of the 820 acres of Foundation Park. Amazon will be located in the park. Mundt provided a brief history of Foundation Park and summary through 2021 of Foundation Park South (FPS). Currently in FPS: 176 acres sold; 188 (primarily railroad) acres remaining; 4.73M sq. ft. built; $309M assessed value; 1,319 jobs; $6.17M property taxes generated; $3.52M platting/sewer fees paid; and $3.76M platting/sewer fees on remaining acres. Mundt spoke about the projected businesses and jobs for the TIF. The projections are: 5-8 businesses, depending on the size and scope; up to 6,000 direct jobs; up to $300M in annual payroll; more than $2.5B in Cap X; more than $1.2B tax base; $24M taxes generated annually; construction jobs; and support jobs. Drone video was shown of Foundation Park and Mundt provided an update on the activity. A comparison was made between Downtown Sioux Falls' 450 acres to the Park's 820 acres. Mundt then provided an overview of the $94.4M TIF Project Plan. The funds would be used to make the area shovel ready by: providing roads, water, sewer, grading, regional detention, and an additional rail site on 460 acres. The 80 acre Amazon site is not included in this project. Mundt provided a breakdown of the total eligible project costs of $132.7M; and explained the $30M Economic Development Competitiveness Fund. The projected total investment for the park is $2.63B. Mundt concluded his presentation by reviewing the next steps for the TIF, which includes it being presented before the City Council in February and March. Discussion followed regarding: the EDC fund; the $94M for the TIF, where does it come from and how long will it take to acquire; excitement for the project; ag taxes compared to the potential taxes generated; where the next Foundation Park might be located; an explanation of TIFs; platting fees; the minimum amount of land that can be purchased in the park; reimbursement of the TIF funds; available acreage in the park; a review by the City regarding the expenses. B. Marion Road Improvements at Foundation Park by Mark Cotter, Director of Public Works Presentation: Approximately 10 minutes followed by discussion Cotter provided an overview for the five projects. Project 1: Marion Road and I-90 Interchange improvements will include widening the ramp and adding two signals; the project will begin in the Spring and will be completed in the Fall of 2021, with a projected construction cost of $566,000. Project 2: Marion Road widening at Foundation Court will begin in the Spring and will be completed in the Summer of 2021, with a estimated construction cost of $350,000. Project 3: Turn lanes and Traffic Signal for Project Stampede, site construction is underway; Marion Road construction to begin in the Spring with completion in the Summer of 2021; site completion is in early 2022; the construction cost are part of Project Stampede. Project 4: Foundation Court Construction, the road has been upgraded; construction will begin in the Spring/Summer with project completion in the Fall of 2021; the Sioux Falls Development Foundation is covering construction cost. Project 5: Marion Road Paving, the preliminary design work will begin soon; the work will begin at the end of the existing asphalt at 258th Street; a study will be done to see if there is a need for a railroad overpass; a study is being done of  Highway 130 from I-29 to Crooks; and construction timeline and costs are to be determined. Discussion followed regarding: the need for a railroad overpass; costs concerns; the significant improvement of Marion Road; the use of the Arterial Expansion Fund; Marion Road being in the upcoming CIP; and annexation for city, county and state. C. Naming Ordinance by Pat Starr, City Council Presentation: Approximately 15 minutes followed by discussion Starr began by presenting a brief background on the ordinance. The 2013 ordinance was described as being written very broadly and designed to protect the City's assets. A Naming Committee was established and managed by Planning and Development Services. Starr said this has been a collaborative effort. It included the following City departments: Finance, Planning and Development Services, Parks and Recreation, and the Siouxland Libraries; the Washington Pavilion of Arts & Science; the Great Plains Zoo & Delbridge Museum; and the Denny Sanford PREMIER Center. The proposed changes to the ordinance would allow for flexibility with the public/private sponsorship. It would also distinguish between Naming agreement vs. Sponsorships; require a naming agreement when a significant donation is made; and states naming agreement requirements. The revisions also allow for the City to rename any City property not bound by an agreement: eliminates the need for a unanimous vote and allows for a majority vote. Also removed is the five year deceased requirement; and prohibition on titles, rank and religious designations. Discussion followed regarding: how many people worked on the ordinance revision; how long it took; what the overall changes mean; reasons for the five year wait; and a brief history on the formation of the original ordinance. 5. Public Comment Scott Ehrisman spoke about his concerns regarding the proposed $94M for TIF #23. 6. Executive Session A. Discussing the qualifications, competence, performance, character or fitness of any public officer or employee or prospective public officer or employee. The term "employee" does not include any independent contractor pursuant to SDCL 1-25- 2(1) A motion was made by Council Vice-Chair Soehl and seconded by Council Member Selberg to enter Executive Session at 5:30 p.m. Roll call vote to enter Executive Session. 7 Yes: Brekke, Jensen, Kiley, Neitzert, Selberg, Soehl, Starr; 0 No: (None). Motion Passed. A motion was made by Council Vice-Chair Soehl and seconded by Council Member Jensen to exit Executive Session at 5:55 p.m.  Voice vote to exit Executive Session. 7 Yes: Brekke, Jensen, Kiley, Neitzert, Selberg, Soehl, Starr; 0 No: (None). Motion Passed. 7. Adjournment A motion was made by Council Vice-Chair Soehl and seconded by Council Member Jensen to adjourn at 5:55 p.m. Voice vote to adjourn. 7 Yes: Brekke, Jensen, Kiley, Neitzert, Selberg, Soehl, Starr; 0 No: (None). Motion Passed. Denise D. Tucker, MMC, Assistant City Clerk