Lloyd Cos. chosen to redevelop Sioux Steel site

March 28, 2019

Sioux Steel Co. has chosen Lloyd Cos. to develop its longtime downtown Sioux Falls property.

The Sioux Falls company will serve as developer and general contractor for the first phase of development, representing 7.5 acres of the approximately 11-acre century-old site along East Sixth Street and south of Falls Park.

“Ultimately, we felt very responsible for both the benefit of being on a landmark site and the burden at the same time,” Sioux Steel president and CEO Scott Rysdon said.

“We said to ourselves that we need to reach out as far as we can for some of the best talent possible, and we did that.”

Ultimately, though, the yearlong process led the Sioux Falls company back home, and a decision to work with Lloyd – a company whose corporate office is blocks away and that has redeveloped numerous other downtown sites, including the former Schoeneman Building Materials and Uptown properties.

“We went over a lot of regional and local developers to try and find somebody we felt fit the site, fit the family and the city – somebody that has been invested in the city and had a vested interest in wanting to see it grow. But we also wanted iconic architecture. We wanted things that established cultural diversity that were maybe things we hadn’t seen here,” Rysdon said.

“Not only did they have some new ideas, but they also were invested in the community, and they wanted it. They worked really, really hard. They worked harder than any other developer we interviewed to try to get the business and win our trust, so we felt comfortable in making them our choice for the first phase of the development.”

Development will start on the north end of the property. Sioux Steel plans to phase out its industrial operation on the site through a series of moves over the coming years but hasn’t announced where the approximately 200 people who work there eventually will operate.

“We recognize that this is a once-in-a-generation opportunity and are honored that the Rysdon family has entrusted us with a shared vision to create a place unlike any in Sioux Falls,” Lloyd Cos. CEO Chris Thorkelson said in a statement.

While details of the proposed development will be announced in the coming months, Lloyd Cos. described the plan as “a location that is inviting to all – a place where people will live, work, visit, shop and dine at all times of the day along the Big Sioux River and at the footsteps of Falls Park.”

The plan is to anchor the development with a hotel and conference center, along with a significant amount of office space, street-level retail, restaurants and unique residential options, the company said.

“There will never be another site like this in Sioux Falls,” said Jake Quasney, Lloyd’s executive vice president of development.

“Uptown has been building up for the last decade, the Levitt and the enhanced riverfront are coming together, and it’s going to create a level of activity, energy and community at this property unlike anything the city has experienced.”

Lloyd’s plan calls for the extension of SculptureWalk through the Sioux Steel development and a connection to Falls Park West, where Levitt at the Falls will hold 50 free concerts annually. It’s also expected to include a parking ramp.

“We understood from the Rysdon family very early on that they want this property to deliver something people in Sioux Falls didn’t even know they needed – a combination of public and private space that really creates a sense of community,” Quasney said.

“The streets will be designed with an urban feel for sidewalk dining and retail concepts that can take advantage of the outdoors. You’ll be able to come down and sit in a coffee shop or sit in a park, and it will all flow together in a way that feels natural, much like you’d see in more progressive urban communities.”

Lloyd Cos. will announce its project team in the coming weeks and will unveil an initial design for the project later this spring or early summer.

“For this site to fulfill its promise and potential for our community, we have to work in partnership with the city as we redevelop the site and add public amenities, including parking and riverfront development,” Thorkelson said.

“We are committed to being open, transparent partners that this community can trust as we work to build a better Sioux Falls for all of us.”

If necessary city approvals move forward, Lloyd plans to begin construction in early 2020.

“Some of the most rewarding achievements for us after more than 45 years in business involve how we’ve helped multiple Sioux Falls families continue to leave a positive legacy as we’ve guided their longtime properties into new phases of life,” Thorkelson said.

“We keep that top of mind in every decision we make, and we will again this time, both for the Rysdon family and for our Sioux Falls neighbors who deserve the best development possible adjacent to our namesake park. We can’t wait to get started.”

Sioux Steel is going to emphasize high-quality finishes and design, Rysdon said.

“We want to add a lot of art and iconic architecture to the site to help make it a hub,” he said. “We’re focusing on what other urban communities … have had success with and that Sioux Falls in our opinion still lacks. But we’ve also not had an open slate to be able to create that, and that’s a big responsibility to hammer it out.”

He’s hoping to attract unique entrepreneurs from across the state with business ventures that will create unique experiences, he added.

“We’re not looking for mega-chains. We may have a chain hotel but with a boutique experience,” Rysdon said. “We do understand we’ve just been inhabiting this for 100 years. It belongs to the people of Sioux Falls. We’re not asking the city to buy it, but we feel responsible to the citizens of this city to help create an experience they want. It’s been our home for 100 years, and now it’s going to be theirs.”

Lloyd Cos. chosen to redevelop Sioux Steel site

Sioux Steel Co. has chosen Lloyd Cos. to develop its longtime downtown Sioux Falls property.

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