A $33 million Sioux Falls revenue bond issue has been put on hold following a successful petition drive to place the issue before voters.
Dan Alexander, the city's accountant, said that two Sioux Falls residents who oppose the issue gathered the 3,100 signatures necessary to place the bond issue on a ballot. A referendum probably would be held sometime in October, he said, adding that city officials had originally hoped to sell the bonds in September.
The Sioux Falls City Commission last month passed the bond issue to finance the construction of a convention center and the renovation of an abandoned high school for an arts and science center.
Alexander said that if voters reject the issue, the city would consider scaling back the project.
Organizers for the petition drive could not be reached for comment. However, the organizers reportedly oppose the bond issue because they believe that city residents have a right to vote on the issue and that costs for the project could exceed city projections.
If sold, the bonds would be retired with proceeds from the city's entertainment sales tax, which raises about $2.3 million annually. The bonds also would be backed by the city's general sales tax if the entertainment revenues fall short.