City: Developers could propose projects for parking ramp starting next month
Oct. 12, 2022
The city of Sioux Falls plans to open up applications in November for developers interested in pursuing a project around a downtown parking ramp.
The ramp along 10th Street east of Phillips Avenue is finished, but a private development originally proposed for the site never came together.
In looking to restart a project at the site, the city has met with downtown and economic development organizations about the potential development as well as held informational discussions with real estate, development and hotel industry leaders.
The city has given three tours of the site, business development manager Dustin Powers said.
“Ultimately, the goal was really to get to an early November announcement of how we were going to move forward with solicitation,” he said, adding the idea was to remain flexible and learn from conversations with industry leaders about the marketability of the site.
“What we don’t know, we don’t know, and ultimately getting the expertise in the room and having these conversations has been helpful.”
The property is “a build-ready site,” he added, noting the city’s goal is “to maximize the existing investment the city has put into the property.”
A team of eight representatives will consider proposals, Powers said. In addition to city staff, that includes a representative of the City Council, the public parking advisory board and the 2035 downtown advisory committee.
The city is looking for a team with experience in urban, high-rise construction that will leverage the site and existing parking to create density and provide activity to activate the site with a mix of uses, he continued.
Downtown currently has a number of “missing teeth,” Powers explained, areas of “nonactivation” such as surface parking lots and empty lots that “just don’t provide connectivity and walkability. … Filling this gap would be one step in the right direction.”
Proposals also will be considered based on how they use quality and lasting materials and align with the community’s vision for downtown.
“Our goal is to have multiple proposers as part of this process,” Powers said, adding the team will interview proposers and then identify one to enter into an exclusive negotiation phase.
Then, once there has been agreement on the terms, the council will be notified the city is ready to enter into the agreement, and information about the proposal will be made public. If at any point negotiations fail, the city can go back to the original proposers or reopen the process.
The negotiated sale process has been used since early 2019 and resulted in property sales for Railyard Flats, Cherapa Place and the First Avenue parking lot. Information about the property and applying will be listed on the city’s website.
The City Council is being asked to approve a resolution of intent to lease and list the property Nov. 1. The solicitation itself will be announced Nov. 7, and application review will start after Jan. 7, 2023.
“Releasing for solicitation today does not mean a project is here tomorrow,” Powers said. “It’s going to be a couple years before a final product is actually completed on this property.”
