City: Developers show strong interest as downtown ramp site becomes available
Nov. 7, 2022
The city of Sioux Falls has started accepting development proposals for its downtown parking ramp site — and officials are expecting there could be a number of them.
The ramp at 140 E. 10th St. includes 525 parking spaces on six levels, plus vacant property along 10th Street that’s currently a pop-up park.
The city’s real estate listing shows the property can accommodate up to a 15-story project, which previously was proposed, and 240,000 square feet between building on top of the ramp and adjacent to it.
“We really want to let developers come up with their ideas,” said Jeff Eckhoff, the city’s director of planning and development services. “Our intent, the goal, No. 1 is to maximize the site, and we’re really interested in what other ideas come forward without being too preconceived about it.”
The previous private proposal would have integrated two hotels, restaurants and retail space within the site. It never materialized, and after years of legal proceedings, the city now is cleared to make the land available again.
“The site in general being a half-block off 10th and Phillips, one of the major activity centers of downtown, this creates an opportunity to bridge the gap between Phillips Avenue, the River Greenway and connect us to the East Bank,” said Dustin Powers, the city’s business development manager. “That’s one of the goals and objectives of this is to really create a walkable environment and pull that activity from Phillips to the East Bank.
“I would say this is the most development-ready site in Sioux Falls or possibly the state or nation, frankly,” Powers said.
“All underground work has been completed, there’s utilities to the site, footings and foundations in, so as long as someone can work within those parameters, there’s no unknown risk associated with this project at this point in time. You can bring a concept forward and not have to worry about some of those risks associated with downtown development that we typically run into.”
And developers appear to be taking notice. The city held multiple industry meetings and site tours to get a sense for the market, and “they’ve been well attended with a lot of follow-up,” Eckhoff said. “We’ve had at least a couple companies come in after the fact that heard about it and wanted to have meetings and introduce themselves and clarify they were interested. They recognize the opportunity and how developable it is, and it’s a recognition of the momentum downtown has right now.”
Powers and chief of staff Erica Beck also have updated the City Council multiple times, answered questions and solicited feedback.
“It’s important to note that some of the interest is because of the confidence we’ve been able to share with the industry and because of the collaboration between the administration and council,” Beck said. “We’ve been transparent that we’re conveying the questions, concerns and comments … and I think that will lead to a process and ultimately applications that may be more than what we first thought we might receive. We’ve received a lot of good feedback both internal and external of the city and state for that matter.”
Councilor Marshall Selberg, who will represent the council on the committee reviewing proposals, said he has sat in on all the discussions.
“Everyone has been doing the due diligence, and it’s been at a nice pace,” he said. “You could tell there was an appetite and a lot of excitement about it, and I heard that ever since we started the project. People are anxious to bring their ideas and what they can do.”
The city plans to use a negotiated sale process to either sell or lease all or part of the site, including potentially the ramp itself.
A committee of city and community representatives will lead the evaluation process and make a recommendation. The team will start reviewing submissions in January, but there’s no hard deadline yet.
It could be sometime in the first half of the year when a project will be brought forward, Powers said. That likely would mean a construction start in early 2024.
The city also isn’t in a hurry to make a deal, Eckhoff said.
“Our intent would be to get a special project there,” he said. “Obviously, we want to see something happen, but I don’t think we’re anywhere close to doing something for the sake of doing something. It’s clear from conversations with the council that they want the highest and best use to really leverage the investment that’s been made there.”
In the meantime, artists are being encouraged to submit mural ideas to temporarily beautify the outside of the ramp.
Proposals are due Wednesday to the Sioux Falls Arts Council. Click below for details.
