Sioux Falls Council authorizes entertainment-tax funds to pursue River Line land purchase amid public anger over transparency

The Sioux Falls City Council on Tuesday approved an ordinance authorizing the use of entertainment-tax funds to pursue purchase of property in the River Line District as the city explores a potential convention center or other public uses.

Councilor McCurris, a sponsor of the ordinance, told the council the action authorizes use of entertainment-tax funds—likely through rollovers—and that any actual purchase would most likely take place in 2025. He said a steering committee the council recently encouraged will oversee recommended uses of the funds and work toward a public vote in 2025.

The move drew sharp public criticism. An unidentified resident who spoke during the public-comment period said the River Line effort was “a done deal” and accused council members of working behind citizens’ backs. Another commenter said the items represented “corruption at its best” and vowed to challenge council members in the 2026 elections.

Councilors voted 6–0 to approve the ordinance on second reading and later approved a related resolution amending the 2024–2028 capital program to add a land-acquisition project. Councilor McCurris described the capital amendment as a technical action to recognize when funds may be expected and said the committee will have authority to recommend how and when funds are spent.

McCurris said the resolution passed last week encouraged the mayor and council to establish an eight-member steering committee; he said leadership and the mayor would appoint members and that a public announcement of appointments was expected within 7 to 10 days. "We're moving forward and bringing the community to the table," he said.

Supporters and skeptics both urged clarity on how the committee will operate and when a public vote might occur. Mike Zierich of Sioux Falls thanked council leadership for establishing the committee and asked whether the committee could recommend shifting the timing of capital-plan funding.

The council also voted to withdraw a separate Parks & Recreation consultant agreement (item 30) and approved a package of liquor-license items earlier in the meeting. The River Line ordinance and capital amendment both passed 6–0. The steering committee is expected to begin selecting members and start meeting with a goal of a fall 2025 public vote, according to council comments.

Next steps: the city will publicly announce the steering-committee appointments in the coming days and the committee will begin work toward recommendations for public consideration and any ballot language the city determines appropriate.