March 16, 2020

Unless something changes, Jeff Scherschligt is planning to appear at Tuesday’s City Council meeting, where a tax increment financing district established nearly 13 years ago to support the development of Cherapa Place downtown will be dissolved.

That’s because the financial tool has done its job. The tax increment has been paid out, supporting demolition of the former Zip Feed Mill and new public improvements, and property tax being paid on the project now will be fully distributed to the city, county and school district.

“It’s successfully been paid down in 12 years,” said Scherschligt, the developer of the six-story office building. “We couldn’t be prouder that Cherapa was developed locally, designed locally, built by local people. The cornerstone outside dedicates it to the community and the citizens of Sioux Falls, and if it has had some small part helping downtown grow and succeed, we couldn’t be happier.”

The building has been essentially fully occupied since it opened, he said. It also helped accelerate development of the adjacent River Greenway and other area projects such as the Lumber Exchange building and Hilton Garden Inn Downtown and improvements at Raven Industries.

“I want to thank the community for allowing Cherapa and that project to be involved in a TIF,” Scherschligt said. “I’ve always believed big things and impactful things get done in a joint public-private partnership, and I think Cherapa was the perfect example of it.”

Scherschligt isn’t done developing, either. He’s planning to begin construction this year on Railyard Flats, a $13 million project that will bring office, retail and 42 apartments next to the East Bank Depot along East Eighth Street.

“We’re long-term thinkers. I’m not frightened to go forward,” he said. “We’re going to be able to get very attractive interest rates and more competitive bidding. Lumber costs have gone down 30 percent in the last month. So we believe very strongly we will proceed with Railyard Flats. But our next meeting with the contractors is going to be Skype.”

The capital for the project is raised, he added. And while that project doesn’t involve a TIF, it will include public and green spaces designed to beautify the community.

“Railyard Flats will take 12 to 14 months to build, so I think we’ve got a little runway,” Scherschligt said.

“So we certainly intend to move forward and not let the pandemic change everything that’s going on in the world. It’s our responsibility as far as I’m concerned. Those who have the wherewithal need to step forward. They need to continue with projects like Railyard Flats. They need to step forward and go to our local businesses and go out and continue to support these people because we all have to get through this together.”

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