November 15th, 2017
A long-sought mixed-use parking ramp in downtown Sioux Falls will cost City Hall more than expected. City officials unveiled details for a 13-story public-private parking ramp development with 525 spaces and an attached hotel and commercial space at 110 S. Mall Avenue. Plans were unveiled Tuesday in front of the City Council and revealed the previously anticipated budget of $18 million isn't going to be enough. According to documents provided at the meeting, the total cost will be about $50 million, with the city covering about $20.6 million of the costs. The development will be called Village on the River.
Of that, $4.1 million would be paid for with existing parking funds on hand at City Hall, the city would bond for the remaining $16.5 million. The city has already spent about $700,000 pursuing the project. "This project had never made it to this point," Community Development Director Daren Ketcham said. "Any previous pricing...was all based off of a concept that was never vetted. Now we’ve made it to having a schematic design in our hands."
$30 million of the total project budget will be covered by Legacy Developments, the private partner selected for the project in February. The developer will pay for design and construction of the non-parking elements of the project like the hotel, retail and commercial space. In return for the rights to build on city-owned land, Legacy Developments will make a one-time payment of $1 million to the city that will provide for an 80-year lease of the property. The facility's hotel will feature 120 rooms encompassing six levels. What hospitality company will occupy the hotel isn't yet know, though Legacy Developments is expected to make an announcement soon, Ketcham said.
The proposal is contingent on the approval of the City Council. A vote on the bonding package on Dec. 5. Council Chairman Rick Kiley lauded the project as a win for all of Sioux Falls, not just City Hall and the developer. "40 percent of this is public, 60 percent is private, but 100 percent of this is for the community of Sioux Falls," he said. "Sioux Falls is going to continue to benefit from this project for many years ahead."