City: Lawsuit relies on 'sky-is-falling' rhetoric

A lawsuit seeking to unveil documents from a Denny Sanford Premier Center construction dispute relies on "sky-is-falling" rhetoric, according to attorneys representing the city.

Argus Leader Media filed a lawsuit against the city in December for not releasing details of a $1 million settlement between the city and event center contractors.

In a response to the lawsuit filed Wednesday, the city said it has a right to keep contracts secret from the the media and public.

The Legislature "did not intend every document involving a public entity to be open to the public," the city's response said.

At issue are documents related to installation of metal paneling on the exterior of the building. The city had threatened to sue construction companies over the bulging paneling but reached an agreement with contractors before a lawsuit was filed.

Argus Leader Media attorney Jon Arneson has argued that details of the settlement should not be confidential because it was negotiated out of court and was not part of formal legal proceedings.

But attorney James Moore in the city’s reply said Argus Leader Media’s argument is "full of sky-is-falling sentiment” and it is without merit.

"The Argus Leader’s entire argument is premised on the idea that all the parties had to do to make the Confidential Settlement Agreement indisputably confidential was file and serve a civil lawsuit. The plain language of the statute, however, does not require the filing of a civil lawsuit for a contract to be confidential," Moore wrote.

Argus Leader sues city over $1M event center settlement secrecy

Moore declined to comment Friday, deferring questions to city attorney David Pfeifle.

"State law and the city’s proactive efforts have ensured transparency and access for citizens," Pfeifle said in an email. "The city website contains approximately 20,000 pages of public documents at any given time. However, state law also recognizes that it is in the public interest to authorize a government entity to agree to maintain confidentiality of a contract or a settlement for certain situations."

Pfeifle said agreeing to make the settlement confidential saved Sioux Falls taxpayers thousands of dollars in potential legal costs. The total financial package of $1 million was publicly disclosed, something the city pushed for during negotiations, he said.

"The city specifically requested and was allowed to disclose the total financial package, while maintaining the confidentiality of the settlement agreement itself," Pfeifle said.

Second Circuit Court Judge John Pekas heard arguments Monday in the Minnehaha County Courthouse. He'll file a written opinion in the coming days.

Read the city's response to Argus Leader Media's lawsuit below: