Downtown Mixed-Use Parking Ramp Project Breaks Ground
Construction of the future mixed-use parking ramp at 110 South Mall Avenue in downtown Sioux Falls will begin this week, and public officials and project partners broke ground on the project today.
This project raises the development bar in Sioux Falls,” says Daren Ketcham, Director of Community Development. “This public/private partnership is a great example of what can be accomplished when public and private sectors unite toward a common goal.”
The future mixed-use parking ramp will transform downtown and will be an iconic and striking landmark for the city’s skyline. The structure will be one of the tallest buildings in downtown Sioux Falls (and all of South Dakota) and will include more than 500 public parking spaces, hotel rooms, event center meeting space, restaurants, and commercial space. The total project investment is estimated at more than $50 million.
Village River Group, LLC, led by Jeff Lamont of Aberdeen, South Dakota, is the private development partner in this project. Through an 80-year lease with the City, they will invest more than $30 million of private funds into downtown and pay the City $1 million in lease payments. Tax increment financing is not being utilized by the City or Village River Group as part of this development.
“We are extremely excited to partner with the City of Sioux Falls on this project. This dual branded hotel will feature around 220 guest rooms and will be a great addition to the downtown area. Our company has over 20 years of experience in the hospitality industry, with over 10 years of hotel management in the Sioux Falls market,” says Jeff Lamont, CEO of Lamont Companies and manager of Village River Group.
The City of Sioux Falls will invest approximately $20.6 million to design and construct the public parking ramp in the project, including $4.1 million in cash. On April 18, $16.5 million in bonds were sold. The City received bids from six underwriting firms, and the winning bid of 3.51 percent was submitted by J.P. Morgan. The 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.
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. Both the public improvements and the private improvements will be designed by JLG Architects and constructed by Journey Group Companies.
The project is expected to be complete by fall 2020. To see renderings of the project and for more information, go to http://www.siouxfalls.org/police/public-parking.