- Real Estate
- Food & Drink
May 3, 2019
The downtown mixed-use parking ramp project known as Village on the River is planning to start construction this summer with a plan that will be smaller than most recently proposed and likely after a few months of delay.
The project along 10th Street east of Phillips Avenue has gone through multiple iterations since developers Aberdeen-based Lamont Cos. and Sioux Falls-based Legacy Developments, formed Village River Group and the entity was chosen to partner with the city on a mixed-use parking ramp project.
The plan shared earlier this year valued the 15-story development at $70 million and called for 215 rooms between two hotels – a Residence Inn by Marriott and AC Hotel by Marriott. It was set to include four bars and restaurants, office and additional retail. That would have required about $50 million in private investment.
That was an increase from the plan originally proposed, which was near $30 million and called for three stories of office and retail along with about 140 hotel rooms.
A revised project now being brought to the city is estimated at $65 million with $40 million in private funds and likely will land somewhere in between the two versions. The developers wouldn’t say whether the building will be fewer stories, whether it will remain two hotels or whether it will remain either of the brands previously announced.
“Adjustments to the design and size of the hotel/retail structure have been analyzed by the project team to ensure that it is the best possible project,” Village River Group said in a statement.
“Once approved by the city, the group will finalize the design details and related construction, architecture and bond requirements and move forward with construction.”
The group is still planning to build what it calls an iconic structure “that creates a first-class experience for tourists, business travelers, shoppers, employers and employees in downtown Sioux Falls,” Village River Group said.
“While the project scope has changed from initial concepts, it will still exceed the requirements of the development agreement and will be the one of the largest, single public/private partnerships in Sioux Falls history.”
Construction on phase one of the private side of the development is expected to start this summer and last about 18 months. It had been scheduled to start this month.
The city-owned parking ramp is under construction and on schedule. The ramp is scheduled to open its first parking spaces in March 2020 and be done a few months later with a total of 525 spaces.
Village River Group has looked at multiple funding options to offset its private investment, it said. That included use of city tax increment financing and new market tax credits, but those incentives “did not materialize,” it said.
The project is planned to be funded privately, and “the city has offered the project BID tax rebate incentives and a real estate tax reduction incentive,” Village River Group said.
According to its development agreement with the city, a second development fee payment and performance bond are due to the city when phase one of the private improvements begin, the developers said.
The downtown mixed-use parking ramp known as Village on the River is planning to start construction this summer, with a plan that will be smaller than most recently proposed and likely after a few months of delay.