Mixed-Use Parking Ramp Design Unveiled: Proposed $50 Million Investment in Downtown Sioux Falls
Today, City of Sioux Falls officials unveiled the design and project details of the mixed-use parking ramp at 110 South Mall Avenue. The project will instantly transform downtown and will be an iconic and striking landmark for the city’s skyline.
At 13 stories, the structure at Tenth Street and Mall Avenue will be one of the tallest buildings in downtown Sioux Falls (and all of South Dakota) and will include 525 public parking spaces, 120 hotel rooms, and more than 37,000 square feet of commercial space. The total project investment is estimated at $50 million.
“This is such a big win for Sioux Falls and specifically downtown Sioux Falls. This $50 million investment will allow us to meet the city’s parking needs for the next decade, create exciting new shopping and hospitality options, and bring in millions of dollars of new property tax revenue for local governments,” says Daren Ketcham, Director of Community Development for the City of Sioux Falls.
Since 2014, the City has been working toward constructing a new parking ramp in the core of downtown, where demand for parking is very high and growing. In planning for the ramp, the City’s goal was to partner with a private entity to provide a mixed-use element to the parking ramp that would enhance the scale of the project and maximize private investment activity at the site. The project team includes the City of Sioux Falls, Legacy Development, Journey Group Companies, JLG Architects, Tegra Group, and Walker Parking Consultants.
“JLG is honored and excited to be a part of one of the most impactful projects in downtown Sioux Falls in decades. It is our privilege to work with the City of Sioux Falls and Legacy Development to create a place that will dramatically impact the Sioux Falls skyline,” says Dave Van Nieuwenhuyzen, Architect at JLG Architects.
Through an 80-year lease with the City, Legacy Development will invest approximately $30 million of private funds into downtown. Tax increment financing is not being utilized by the City or Legacy as part of this development.
“Legacy Development is honored to have been selected as the City’s private development partner in this monumental and iconic downtown development project. We believe this to be the largest private/public development in Sioux Falls history and look forward to the benefits it will provide to the citizens of Sioux Falls, the downtown community, and visitors to our great city. We are extremely proud of the teamwork, vision, and dedication from the City of Sioux Falls, JLG Architects, and Journey Group that have enabled this project to become a reality,” says Norm Drake, CEO of Legacy Development.
The City of Sioux Falls will invest approximately $20.6 million to design and construct the public parking ramp in the project. This will be funded with $4.1 million in parking system cash and $16.5 million in bonds repaid by parking system revenue. This funding plan will allow for continued operation and maintenance of the existing assets in the parking system, a healthy Parking Fund reserve, and the funding needed to build the parking structure. The project is expected to be paid for entirely by revenues generated by parking system operations. The funding plan does not rely on any tax dollars to fund the project or repay the bonds.
The project requires City Council approval on several items before it can proceed. Final Council consideration is planned for December 5. With approval, the bond sale and groundbreaking would occur in spring 2018. The public parking ramp is expected to be complete by fall 2019 and the private development by fall 2020.
To see renderings of the project, and for more information, go to www.siouxfalls.org/parkingramp.