By Gary Dickson garydickson@siouxlandobserver.com
It was a busy, long meeting for North Sioux City’s City Council this last Monday evening as they addressed a variety of issues from the ongoing McCook Lake canal to a dog daycare owner unhappy with the several proposed Northshore bypass options to a new housing development in the works west of Sioux Point Rd. and south of Quinella Drive, and approved the renewal of a slew of liquor licenses. Then there was the issue of rocks too close to the street. It was these matters and more that filled the councilors’ agenda on Nov. 6.
Every council meeting has a segment devoted to input from members of the community of North Sioux City. This feedback may pertain to current or past agenda items or it might be a time when someone wants to bring an issue to the councilors’ attention. It is supposed to be limited to three minutes per person.
Adam Kuiken, co-owner of the Dogwood Pet Hotel, a boarding, daycare and grooming business for pets at 1200 Northshore Dr. used the community time to object that the Oct. 30 Bypass Meeting informational meeting didn’t allow for community feedback. He also complained that one of the options — a repaving of the current Northshore Drive — wasn’t presented.
“A point about the project is that repaving the current Northshore Drive is an option,” said North Sioux city administrator Eric Christensen after the meeting. “It just won’t be covered under the grant. This option is a requirement from the Federal Highway Administration (FHWA) and must be presented. However, since our funding came from Congressionally directed spending and not FHWA, the grant money cannot be spent on repairing the existing Northshore. So that option is a requirement, but not possible.”
Kuiken said he received accident statistics at the informational meeting that there had been 21 accidents on Northshore Drive in the last five years. He questioned whether that was enough to warrant spending the money to redirect traffic the way it’s being proposed.
Kuiken said he talked to the South Dakota Department of Transportation (SDDOT) and said there was confusion about which government entity was going to be the deciding group on which bypass option was chosen.
“I talked to her (Paula Huizinga, project administrator at SDDOT) and she told me the city decided.”
North Sioux City city administrator Eric Christensen responded, “We do get to have an impact on the decision. We applied for the grant funds – but DOT took it over. I think we’ve got to have DOT come to the council meeting.”
Jon Brown, president of Stockwell Engineers whose company is the project manager for the bypass project under the direction and administration of SDDOT, talked about the possibility of a roundabout intersection that would go 23 feet into Kuiken’s property versus a “T” intersection.
Twenty-one accidents in five years is nothing.
Adam Kuiken,
co-owner of Dogwood Pet Hotel
Kuiken suggested the intersection be moved east to where it cut into the Dakota Valley School District’s property.
“But I know, I’m not gonna win on that decision,” Kuiken told the councilors. “They (SDDOT) will want to cut into my property, rather than the school’s.”
Brown said, “A decision hasn’t been made to go either way.”
There were questions regarding the environmental study that needed to be made for the project. It appeared that councilors weren’t sure whether or not the study had been made.
“I think it would be good for the city to weigh in before any environmental study is made,” councilor Greg Meyer said.
Brown added that there was more than just a basic environmental study involved. He referred the councilors to the presentation piece that was used during the informational meeting to explain the environmental study. It delineated there were reviews of wetlands and waters, regulated sites and hazardous materials, threatened and endangered species, floodplains and drainage, cultural resources and historical sites, recreational resources and prime farmland.
Councilor Tena Carpenter asked, “If we decide to go a different way than is recommended, does that hurt us in funding?”
“I want to add,” said Councilor Dan Parks, “that the whole reason we doing this is to get traffic off the (Northshore Drive) curve. The farm traffic, combined with regular traffic is too much. It causes accidents.”
“Twenty-one accidents in five years is nothing,” Kuiken said.
The council decided to see if they could get SDDOT to come to the next meeting to clarify questions about the bypass. They also assured those present that the Oct. 30 meeting was meant to be informational only and it wasn’t meant to be a meeting where the public could express agreement or disagreement. No decision has been made regarding which bypass option to use and the general agreement was that it will likely be impossible to please everyone.
Union Crossing Development Moves Ahead
An alliance of a couple of large housing, commercial property and apartment contractors in the area was ready to progress to the next step in building a large residential, multi-family, and commercial project in North Sioux City when it sought the support of the council for their endeavor Monday night.
PBR Capital Group, LLC presented a memorandum of understanding (MOU) for their Union Crossing project to the council. An internal memo from city administrator Christensen to the counselors that served as a cover letter to the MOU, stated, that the MOU, “sets forth (PBR’s) expectations from the City in support of their project. The concept of the proposed project has been presented to both the Council and the Planning & Zoning Board at previous meetings.
This MOU has also been presented to Planning & Zoning for comments and discussion. Administration recommends approving the MOU with PBR Capital Group, LLC.”
The MOU is a non-binding clarification of terms and parameters done prior to the execution of any future agreement between the City of North Sioux City and PBR that would be legally binding. The goal, according to verbiage in the MOU, is to ensure that both parties are proceeding according to a mutually agreed set of expectations to avoid any miscommunication and maintain a development process free from delays.
PBR Capital Group, LLC was represented by Rick Wegher, the organization’s managing partner. He was joined by former Dakota Dunes Community Improvement District Manager, Jeff Dooley, who apparently is working as a consultant to PBR. Besides Wegher, PBR is made up of Paul Koskovich and Ben Murphy of Koskovich & Murphy Developments of Sioux City. Their website states they do residential, apartment, commercial, and agricultural building construction as well as dumpster rentals.
Another person involved in PBR is Ryan Callaghan, CEO of RP Construction in North Sioux City, a heavy civil and industrial contractor. Their main focus is underground utilities, concrete paving, industrial processes (water, wastewater, food manufacturing, etc) construction but they also act as a general contractor for other types of work such as rail, buildings and grading, excavation shoring, bypass pumping, etc.
Wegher has been the co-owner of Brown Wegher, a residential construction company. It recently merged with MBW of Sioux Falls with Wegher continuing to be involved in a portion of that company called Brown Wegher Residential. Wegher’s homebuilding talent is well-known around Siouxland for custom and high-end homes.
As for the project, PBR says it intends to build approximately 226 residential units, including workforce housing, apartments, multi-family dwellings, single-family dwellings and seven commercial tracts.
The emphasis is affordable housing. That means pricing at around $340,000 per unit. We also want to target first-time home buyers in our workforce housing.
Jeff Dooley
consultant to PBR Capital Group LLC
Tract 1 of the Union Crossing Addition was rezoned from Residential (R-1) to a Planned Development District (PD) when the city council approved the second reading of Ordinance 2023-19 on Sept. 18.
“The emphasis is affordable housing,” said Dooley. “That means pricing at around $340,000 per unit. We also want to target first-time home buyers in our workforce housing.”
The MOU outlined six points for the city and PBR to agree to. They included:
- Platting. PBR has replatted the 80.125-acre property in three separate tracts to correspond with Phases 1 and 2 of workforce housing and Phase 3 – commercial development. Commercial lots will be platted within larger lots to accommodate customer specifications.
- Transfer of Property. PBR will convey part of its real estate to the City for the purpose of the city’s construction of a public park on the real estate in exchange for a small city-owned parcel. The city will purchase two lots for possible future infrastructure, following approval of the final plat for Phase 2, on mutually agreeable terms.
- Zoning Plan. To accomplish the goals of workforce housing PBR intends the zoning of Tract 1 and Tract 2 to be planned development districts to accommodate smaller workforce housing units, and will rezone Tract 3 to accommodate apartment units and commercial development. PBR and the city will follow all procedures necessary to implement the zoning needed for the project.
- Tax Increment Financing (TIF) – The city will create one or more tax increment financing district(s) for the purpose of generating tax revenue to be used for eligible costs and expenses under the South Dakota Tax Increment Financing Districts law codified at SDCL §§ 11-9-1 et seq. to support the project in an estimated amount up to $11.6 million. It is anticipated that three separate TIF districts will be established.
- Sanitary Sewer Recovery Fee. The city will assess cost recovery fees for sanitary sewer in
accordance with city ordinance 3.36.030 and will refund sanitary sewer cost recovery fees paid by PBR on the workforce housing units within planned development districts based on initial sales price not to exceed $340,000, as adjusted by inflation or other amounts as agreed upon by the parties in the final development agreement. This refund provision only applies to workforce housing lots. - Further Assurances/Approvals. The parties agree that this MOU sets forth the general outline of the city’s assistance to the project and that additional actions and documents may be necessary to bring about the transactions described in the MOU.
The council agreed on all the points, with the exception of number 5. The representatives from PBR said they could agree with that as well. The council voted to accept the MOU with the exception of point 5. Councilor Greg Meyer voted against accepting.
The MOU states it “is intended to establish each party’s understanding and intentions regarding the development of PBR’s property in North Sioux City and further provide a non-binding clarification of terms and parameters prior to execution of any agreements that would contractually bind either party.”
According to city administrator Christensen, the developers will still need to submit their preliminary plat and drainage study for review.
“‘Then it will need to be reviewed by Planning & Zoning and approved by Council,” Christensen said in an email to The Observer on Friday. “Then they will have permission to proceed. They have talked about submitting a drainage and excavation plan so they could at least get started with some site preparation work this fall, but they have since decided not to.”
Rocking along the street
People like to do things to make their property look nice. They plant flowers, bushes and trees. They keep the lawn mowed. Some even try special landscaping effects to give the home a special curbside appeal.
That may have been what North Sioux City homeowner Matt Vanderpool had been aiming for when he hauled in several large rocks and placed them in a line along the front of his property along the street.
Then again, maybe not. Maybe it was because he was having a feud with his neighbor who kept parking his car in front of Vanderpool’s house and sometimes on the grass. If you look at the rocks in the photo, you certainly couldn’t drive over them . . . or get too close to them if a person planned to open the passenger side door.
But then again, maybe that’s how artistic landscape design works. Spontaneous rock placement it could be called.
No matter what it’s called, the City Public Works Department and the Police Department thought Vanderpol needed to move those rocks away from the street. They figured it was a potential vehicle safety hazard — not to mention what might happen if a city snowplow hit one of those large pieces of stone.
So Police Chief Rich Headid talked to Vanderpool and asked him for a written plan for what he wanted to do with his rocks — or landscaping stones. But according to Headid, Vanderpool never sent him a plan. The rocks just continued to sit there until the city of North Sioux City decided enough was enough and brought the matter before the city council Monday night.
As stated in an issue background memo to the councilors from the city administrator:
“Per City Municipal Code 8.08.010 ‘The city council shall have the authority to declare, pursuant to SDCL 9-29-13, what shall constitute a nuisance, to prescribe procedures for the prevention, abatement, and removal of such nuisance and to prescribe a penalty for the existence of a nuisance that is not addressed by a separate ordinance.’ After consulting with the Chief of Police, the Public Works Director, and the City Attorney, the Administration has
determined that these rocks pose a potential hazard to the traveling public due to their proximity to the street. In addition, the rocks are clearly located within the City’s right of way.”
If someone hit a rock with a city plow, who pays for it? The homeowner?
Greg Meyer
North Sioux City Councilor
With that information in hand, the councilors listened to Vanderpol’s story about how he drove around town and looked at and measured rocks on other properties that appeared to be like his. He also shared that he was going to order a special type of drought-tolerant grass to plant in the right-of-way because it “currently isn’t anything but weeds. I’m going to order the grass seed from the Internet.”
Vanderpool also told the group that he was putting in a sprinkler system. “I’ve widened my driveway, too. I’ll move my rocks back 18 inches if you want, but I need some guidance.”
Vanderpool said he didn’t think he was being treated fairly and gave the councilors photos of the properties he’d surveyed with the rocks he said he had measured.
“You know, I only found out about this (meeting) because I just happened to look on the city’s website, he said. “I think it’s dirty and underhanded of you. I’m just asking to be treated fairly here.”
At least one of the city councilors wasn’t buying Vanderpool’s argument. “I don’t see anything in these pictures that are the size of your rocks,” councilor Joan Christiansen said peering at the photos in her hand.
The councilors realized that there might not be any city ordinances regulating things like how far mailboxes needed to be away from the street and what kind and how much landscaping could be around them.
“If someone hit a rock,” wondered councilor Meyer, “with a city plow, who pays for it? The homeowner?”
After more discussion, the councilor Kodi Benson made a motion to table the item until the next session. The motion was approved unanimously.
Just how many liquor licenses does a casino need?
The city council reviewed and approved applications from the following businesses requesting to renew their alcohol licenses for 2024. The city fees have been paid and the sales and unemployment taxes are current. The businesses were: Commonwealth Gaming & Holdings Corp (Dueces Casino); MG Oil Company (Corner Pantry); Brown Aces (Sugar Daddy’s); Casey’s Retail Company (Casey’s General Store #3589); Dakota Rose, Inc. (Dakota Red’s); Dolgen Midwest, LLC (Dollar General); Four Horsemen, LLC (Triple Crown Casino); The Glass Palace/Glass Slipper, Inc. (The Glass Palace/ Glass Slipper); Intrepid Ventures Operating LLC (Casino Monaco Ste 1); J & U Inc. (Jim’s I29); Miller Liquor, Inc. (Miller Liquor); She Be, Inc. (Beano & Sherry’s Saloon); Sky JC Inc. (Skyline Bar); Waddy’s LLC (Waddy’s Whistlestop Casino); and World Wide Holdings Inc (VIP Gaming Lounge.
Interesting items found among the applications included the high number of license renewals requested by some establishments for a single location. For instance, John and Sharon Nilges, co-owners of Dakota Rose, Inc., the parent company of Dakota Rose Casino and Miller Liquor renewed seven alcoholic beverage licenses – five retail beer, one retail wine and one package liquor license. Why does the company need seven licenses when you’d think three would suffice?
Not to be outdone in the category of alcoholic beverage license accumulation, let us present for your inspection She Be Inc. They are better known as Beano & Sherry’s Saloon at 200 Military Rd. in North Sioux City. On their license renewal application, company president Kimberly Luken listed 13 different alcoholic beverage licenses needing to be renewed! Twelve of the licenses were for retail beer and just one was for retail liquor.
One of the most puzzling license renewal applications belonged to the VIP Gaming Lounge at 107 River Dr. Their parent company, World Wide Holdings, Inc. sort of shuffled the deck when it came to listing addresses for their alcoholic beverage licenses. Two — one each for a retail beer and a retail wine — at I assume the 107 River Dr. location but under something called Interactive Holdings, Inc. Then, to make things more confusing, the parent company lists six more licenses: five retail beer and one retail wine, underneath another company called Intrepid Ventures Operations at 210 Military Rd., North Sioux City.
Wasn’t there a TV show on the A&E network one time called Hoarders? Is it possible that some of these casino owners might be able to be featured on it? Sheesh!
Nonetheless, all the applications for alcoholic beverage license renewal were given unanimous approval by the city council. There was just one catch. City councilor Joan Christiansen voted to approve the renewals as well. The trouble is, Christiansen is listed as president and manager of Sky JC, doing business as the Skyline Bar, 103 N. Hwy 15 in North Sioux City, one of the establishments seeking renewal of their alcoholic beverage licenses. She probably should have recused herself from any discussions or voting about approving the license renewal for her own bar. It’s called a conflict of interest.
There was more that was discussed and acted upon
In other business Monday night the city council:
- Reviewed and discussed the ongoing saga of the McCook Lake Canal project. The city’s engineers are in possession of a set of construction standards and are in the process of reviewing them. Based on legal advice the city believes that construction standards could be enforced as a “reasonable condition” as part of the process to get an excavation permit. However, there was no current update on this. As has been the case in the past, developer Mike Chicoine has not rescheduled a meeting with the city’s engineers. As a result, there was no update on the project.
- Kent Ode, transportation engineer for HDR, Inc. gave a bike trail project update. Ode presented an amendment to the engineering services contract for council approval. The amendment is to cover the acquisition of the necessary easements and other real estate-related matters connected to the project. The council approved the amendment with the cost not to exceed $21,500.
- There were two seats up for reappointment to the library board. Current board member Darcie Kistner was seeking reappointment to another 3-year term on the board. New candidate Helen Coury had submitted a letter of interest in filling the other seat for a 3-year term. The council voted to appoint both women to 3-year terms on the library board.
- Contracted with Stockwell Engineers to provide zoning administration services to the city until it can hire someone at a cost of $35,000 a year.
- Stockwell Engineers presented their recommendation to the council for the Streeter Drive water treatment plant upgrade project. The lowest bid was from Christiansen Commercial Contracting, Inc. in the amount of $6,028,712.29. The bid amount was $263,712.29 above the final engineer’s estimate but $479,504.55 below the initial estimated construction costs submitted for financing. Stockwell Engineers’ president Brown said he called three different construction companies and received excellent recommendations for Christiansen Commercial Contracting. The council voted unanimously to approve the bid.
- Approved a pay request presented by Stockwell Engineers for RP Constructors, LLC in the amount of $812,692.56. This is for work on the southwest lift station project.
- Approved the second reading of city ordinance 2023-22 Property in Disrepair. The city has received several complaints from tenants of apartment buildings and rental properties concerning non-working plumbing, mold, and other health and safety-related issues that are not being addressed by their landlords. This ordinance will give the city the authority to enforce corrective measures in order to protect its citizens.
- Gave first reading to an ordinance that will set the city’s sanitary sewer rates for the calendar year 2024. These rates have been calculated by Stockwell Engineers as the minimum rates necessary to maintain a healthy balance in the sanitary sewer fund. This rate calculation will result in a rise in rates for residential, commercial and industrial users.
- The city administrator presented Resolution 2023-13 which will set the city’s garbage rates for calendar year 2024. The city’s garbage fund is finally generating enough revenue to cover its expenses after years of operating in the red. This is an inflationary adjustment designed to keep the garbage fund operating in the black.
- Heard a presentation from city administrator Eric Christensen regarding this summer’s statistical count of bike trail users. This year the counter was placed at the corner of River Drive and Merrill Drive. In total, there were 157 days of data collected with the average daily usage being 37.318 users.
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CORRECTION: An earlier version of this story stated that Adam Kuiken of Dogwood Pet Hotel had said there had been 21 accidents on Northshore Drive in one year. That was incorrect. Kuiken had actually said the 21 accidents occurred over five years.
The Siouxland Observer 