The Liberty Land destination district in Rapid City, which promised to bring millions of new dollars in sales tax revenue to South Dakota’s second largest city, will not have access to Tax Increment Financing after the city ordinance approving the measure was struck down at the ballot box on a nearly 2-1 basis.
And odd bedfellows are sometimes made as members of the ultra-right snuggled right up with Rapid City Democrats to defeat this opportunity for economic development for the community, as related in the Rapid City Journal:
The “no” vote won the Destination District TIF vote on Tuesday, Jan. 20. The “no” side received 7,965 votes, compared to 3,415 “yes” votes.
Voter turnout was 22.32% — of the city’s 50,995 registered voters, 11,385 cast a ballot.
and..
The project will not go forward.
“Absolutely not,” said Joel Brannan, project leader for Libertyland USA and chairman of Citizens for Responsible Growth, which spearheaded the “yes” campaign. “The community spoke loud and clear, they don’t want this project, and so we’ll honor that. We’ll move on with our lives. And I wish everyone here the best, but I’m very disappointed with this outcome.”
and..
According to its respective communication expenditure reports: Citizens Action political action committee spent $1,468 on radio ads promoting a “no” vote, the Pennington County Democratic Party spent $2,358 on advertising in favor of a “no” vote and (Toby Doeden’s) Dakota First Action political action committee spent $2,750 to advocate for a “no” vote.
Not sure if this should shock anyone, as this new Democrat coalition has been forming for some time now with members of the ultra right and democrat organizations. Such as the anti-pipeline movement including the left-leaning Dakota Rural Action in their amalgamation of howls for NIMBY as they draw funding from groups affiliated with the Jane Fonda Climate PAC.
This is what Republicans are up against in South Dakota; Far-right populists colluding with far-left activists to choke off the new tax dollars that comes from new industries and development.
Leaving the rest of the people in the middle wondering why their taxes go higher and higher with no relief in sight.
There’s no difference between the far right and the far left. South Dakota is screwed until we can get normal people in office.
Wrong.
Care to elaborate? Currently they have been working hand-in-hand to shut down every economic growth opportunity across the state. Often pooling their resources to do so.
Correct. They shut it down by saying “it is a free ride” or “your taxes will go up”. Both are lies told by the leaders of the loon groups. It’s not a free ride. But when you have low IQ voters out there… this is what you get
“Wrong” as in I don’t agree that the far right and far left have no difference. The state’s main problem at this time is rampaging emotional populism on the right.
This vote failed more on the project’s own declining merits, than an unfair coalition of greedy revenue-hoarding luddites as you might term the opponents. I’m sure a Libertyland plan sounded like a no-brainer home run in the heady pre-Covid freedom-land that we were purported to be living in. Time and events wait for no one. We must live in the “now.”
Rapid City may want to think about working on something that offers job opportunity with living wages year round before throwing money at another thing that offers temp jobs and short term tourist income.
I think the theme park etc is a good idea but permanent jobs with sustainable income is needed out there and should be a priority.
Just my humble opinion
This was a year-round operation. The amount of wrong information out there on this is sad.
Yeah but not the way you think it is.
Then please explain how it’s not how I think it is? And how a TIF spends taxpayer money, as the opposition argued.
One thing is obvious: The crazies, the stupidz and the loons who have no clue on how a TIF works are motivated. Shutting down growth and development is becoming their hobby.
This isn’t about the TIF. It was about whether it was wise to apply it to a combination shopping restaurant and entertainment destination, with nearby “housing development” added on to sweeten the TIF blight deal. And about whether it was WISE to pre-load the project with the mission of “celebrating Liberty” with MAGA connections implied, or whether the Libertyland theme was chosen to play to the local political emotions and cynically leverage the support which it didn’t end up getting. Just calling it a NIMBY situation or whatever, does not capture the realities. These kind of facilities are having a rough time of it now and it’s getting rougher.
I kind of wonder if those who are critical of others who dont want this in Rapid and throw around the term NIMBY would actually want this in their backyard?
A company that needs a $125 million subsidy to make a profit is pretty shaky.,
I hope it gets built right across the border in WY.
Similar wing nuts are trying to get the data center in sioux falls to go away with lies and ignorance being spread.
This would not reduce taxes. Most likely increase them. The employees bring costs. But the taxes paid to cover those costs are paid right back to the business. The taxpayers are left holding the bag.
So this is just an anti growth argument then.
Were the votes hand counted because if they weren’t hand counted then there’s no way those results are correct.
Dakota Rural Action helping to kill this project. That likely will be happening here in the Northeast. They were in Ipswich Monday night talking about their concerns along with citizens in Edmunds County about permits for a 25,000 head dairy near Mina Lake. The Edmunds County Commission has granted the permit to them and the next step is with the DANR.
There’s a lot of us who thought this was going a bit too far in terms of development in the Black Hills. Having said that, I am also open to a free market and if the developers desire to pursue this then I believe they should be free to do so. But this TIF at $125 million was over the top. It’s one thing to request funds for infrastructure purposes, but this TIF proposal in particular went above and beyond that to include more than infrastructure costs — Dakota Scout reports that it also included $47million in discretionary grants and $54million in reimbursable interest expenses. Why would it make sense to include all of these extras in the TIF? — essentially it’s a deal for the developer to not pay taxes for a very long time so they can finance their own project.
TIF’s have a place in development in South Dakota, but they can also be abused. Desperate cities will often give away the farm for any chance at development. But often times they are giving it away to companies who don’t need it to get their project done. And if they do need it, are they in good enough shape to proceed anyway?
The vote was more nuanced than simply rejecting a pipeline. The TIF would have gone to to a group (family) that spent ~$700K on a deceptive campaign. Their campaign implied the TIF would be directed to a youth sports complex, when if fact that was 100% not true. As mentioned in another comment, the Black Hills lives off tourism and low-wage seasonal jobs; the TIF development would have perpetuated that. Some believe that the best future for Rapid City is one that compliments tourism with tech-based economic development (e.g., additive manufacturing, autonomous systems etc.), and the higher paying jobs such an economy would enable. A TIF directed toward that future would most likely have passed.
Several years ago the city had a chance to get a locally owned high tech business, with high paying jobs, located here but would not work with the company or honor promises made, so the company located elsewhere, along with the jobs. And no, no TIF involved. These type jobs are what is needed, not more touristy attractions or restaurants.
Legalize recreational cannabis and tax the hell out of it already, come on! We don’t need any more money from tourism, we can generate it right here in our own state by ourselves. South Dakotans don’t rely on out of staters! We rely on ourselves!
Correct.
I was actually being ironic.
– because South Dakotans are so proud that we are self reliant (whether that is true or not). If we want to be more self reliant… here’s your answer! Tax recreational cannabis- Fund the schools/cut the property taxes. Solution is right in front of us!
A diverse group of citizens voted 2 to 1 to reject the public financing of Pete Lien’s vanity project.
Pete Lien is free to pout, take his ball and go home, or continue his project without the TIF.
He probably will go somewhere else. Somewhere that won’t shut down incentives for businesses opportunities. Somewhere that will then reap the benefits of new jobs, economic growth, increased sales tax, and eventually a much larger base for property taxes which will benefit everyone. Everyone wants property tax reductions. Without a substantial cut to counties, schools, and first responder services, the best way to lower property taxes is building new stuff.
If we want a true free market, let’s get rid of state and local government entirely and privatize everything.
The Liens aren’t going anywhere. You can’t just pack up a huge gravel pit and a giant cement plant and relocate. And if they approach another community, how is that going to fly for an outsider to come in and ask the city/county for a huge tax break that almost assures a profit on the backs of the citizens.
viable strong business plans don’t need handouts to succeed
The no vote for me derived from the language that clearly stated even after Liberty Land received the TIF that they didn’t have to follow through on what they stated they intended with the project. It literally said that the financial backers could do more, less or anything different they wanted.
The question to me was, shall we buy a pig in a poke. NOPE. Give the City guarantees of what the land will be used for, completed by when…maybe I vote different. Until then suck eggs.
viable strong business plans should not need handouts to succeed
Do you expect businesses to develop city owned infrastructure on the businesses dime? With that being said, it appears the RC destination district and sports complex might also be a no-go now. That’s OK, we have 3 trips planned to Sioux Falls this Spring for HS sports events and will gladly give them our tax dollars. Sioux Falls has done an outstanding job on the Howard Wood/Sanford/Premier complex. Now we are hearing that the Premier Center is completely booked next year around State HS Basketball time and won’t be able to host the SDHSAA for the first time in 65 years based on Summit League Tournaments and a Division II national event. Good for them.
Glad it got voted down. I rarely agree with Toby Doeden but he was right I never this one it is corporate welfare. However To-me only approves of TIFs and corporate welfare as long as the check is written out to him.