Mixed-Use Parking Ramp Project
The future mixed-use parking ramp at 110 South Mall Avenue will instantly transform downtown and will be an iconic and striking landmark for the city’s skyline. At 13 stories, the structure will be one of the tallest buildings in downtown Sioux Falls, and all of South Dakota, and 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.
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.
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.
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.