Why the Catholic diocese stands to win big with city lease

Megan Raposa -

Simplified: In a heated public meeting Monday night, residents pushed back against the city's plans to lease, and then fence in, a vacant parking lot adjacent to the Bishop Dudley Hospitality House. But beyond concerns about the efficacy of a $70,000 fence in deterring crime, conversations Monday evening also revealed key details in how the proposed agreement came to be and why, if approved, it has potential to be a win for the lot's owner: the Catholic Diocese of Sioux Falls.

Back up. How did we get here?

This all rose to the public consciousness a few weeks back when the Sioux Falls City Council advanced a proposal to enter a five-year lease agreement with St. Joseph Catholic Housing – a subset of the diocese.

Why it matters

  • Initial conversations started between the city and St. Joseph Catholic Housing began out of a shared desire to address the high number of police calls to the parking lot. Planning Director Jeff Eckhoff said one of the first ideas was for the city to purchase the property, but the diocese wasn't ready to sell.
    • That's in part because, as Eckhoff notes, they know the property "will become more valuable" as new development continues to move east of downtown – including the potential Riverline District just south of the shelter.
  • Chancellor Thad Pals also said the diocese wants to keep the lot, though the lease would give the city first dibs if the lot and/or the Bishop Dudley Hospitality House ever go up for sale – something Pals said he doesn't see happening any time soon, but is "always a possibility."
    • He also told Sioux Falls Simplified after Monday's meeting that he also doesn't foresee the diocese paying to put up a fence around the parking lot.
"In a nutshell, we're a nonprofit," Pals said. "Putting up a fence there isn't really part of our mission."
  • City Councilor Rich Merkouris also noted that he'd "love if the Catholic diocese would build the fence tomorrow," but seeing as they won't, he said the city has "no choice" but to take some sort of action to reduce crime in that spot.
"They have more leverage than we do," Merkouris said.

So, what exactly are the wins for the diocese?

Well, if the City Council moves forward with this lease and subsequent fence-building plan, there are wins on a few fronts:

  • First, the diocese doesn't have to foot the bill for a $70,000 fence around its property.
  • Second, the diocese (including the staff at the Bishop Dudley Hospitality House) would no longer have to constantly field calls about disruptive or criminal behavior on the property because the police department could deal with it directly if the city was the lessee, Police Chief Jon Thum said.
    • This is a particularly big benefit for Bishop Dudley employees, who spend hours each day picking up garbage in that parking lot.
"When we're talking garbage, we're talking queen-sized beds," said Madeline Shields, executive director of the shelter. Shields added that she's also worried for the safety of her staff given the number of people who congregate in that parking lot.
  • And third, in the event that the diocese does ultimately want to sell the lot and/or relocate the shelter, they've got a potentially interested buyer in the city – not to mention reaping any benefits if land values go up over the next decade.

When asked why the diocese doesn't just sell the vacant parking lot right now, Pals responded:

"Who's gonna buy it? We have not had a single inquiry."

Does the city win too?

Depends on how you define "win."

For the few dozen people who were at Monday's meeting calling for a more compassionate approach to interacting with unhoused folks or a more defined space with trees, shade, etc., the lease and fence will probably not feel like a win.

For the police department, the fence will likely be a win if it's effective in keeping people off private property.

For the city as a whole, the lease could be a win by saving money it would otherwise spend on the 2,700 police, fire and emergency service calls to that parking lot in a year's time.

"If I put a dollar amount on that, it's staggering," Chief Thum told Sioux Falls Simplified.

And, for future city leaders, having first dibs on a sizable property essentially across the street from a new downtown convention center (if voters approve it) could provide both wins and challenges as the city looks to help support unhoused people moving forward.

So, is this ultimately about the Riverline District?

Eckhoff said no.

From a city planning perspective, conversations about affordable housing, addressing chronic homelessness, etc. date back far longer than any conversations about a new convention center, he added.

"(The Riverline District proximity) is an easy narrative draw," Eckhoff said, adding that he sees why people would think this lease is related. "But, independent of that, this is an issue we've been looking at and struggling with for a long time."

What happens next?

The City Council is expected to make a final decision on the lease agreement during Tuesday's regular meeting.

Councilor David Barranco said he plans to ask the city to bring more proposals related to the vacant lot to start a conversation on "thoughtful, positive ideas that help disadvantaged people and demonstrate our commitment to change."