SIOUX FALLS, S.D. (KELO) — Plans for two new aquatic centers and a health and recreational facility in Sioux Falls are being put on hold for now.
As the city finalizes its budget for next year, community leaders claim there’s too much uncertainty right now and it all has to do with Initiated Measure 28.
People get to vote on Initiated Measure 28 this fall which would repeal the sales tax on consumable items, which include groceries.
While there are questions about what that exactly means, Sioux Falls city leaders say if IM 28 passes it’s going to cost them millions in revenue, so now the city wants to wait until after the general election before moving forward with three major projects.
The city had big plans for two city parks.
It was going to issue a bond worth $77 million, some of which would cover the total redesign of Frank Olson Park.
It would have, among other things, a new indoor recreational aquatic center, a gymnasium and an outdoor park with pickleball courts.
Some of the funds would also be used to redesign the Kuehn Park swimming pool and $9 million would be used to buy the Sanford Wellness Center on the city’s west side.
“As we’ve had more conversations, we decided it would not be prudent for us to bring this forward until after the general elections in November,” City Finance Director Shawn Pritchett said.
City Finance Director Shawn Pritchett says the decision to delay the projects stems from an uncertain bond market and Initiated Measure 28.
The measure would repeal the tax on consumables, including groceries, but city officials from across the state have expressed concern over the language as it’s now written.
“Irrelevant of what people’s concerns are I think everybody agrees that the confusion around it is significant enough it’s going to require judicial clarification or additional action by the legislature,” Pritchett said.
If voters approve the measure, Sioux Falls city leaders say the city stands to lose millions of dollars in sales tax revenue.
“And if that happens it’s going to create a period of uncertainty for us, because we will not know what will happen as far as the revenue side,” Pritchett said.
Even without I-M 28, last month the city of Sioux Falls saw nearly a 4-percent decrease in sales tax revenue.
KELOLAND News reached out Rick Weiland with Dakotans for Health.
He claims I-M 28 is directed at the state sales tax and would not affect the city’s ability to collect a local sales tax.
