Jan. 13, 2025

Before anyone spent a single night at the Canopy by Hilton hotel, it already had set a standard for occupancy.

Developer Lloyd Cos. learned from Hilton that more weddings had been booked there before opening than any other Hilton property — not just the Canopy brand, but any Hilton.

The “little Canopy” at The Steel District in downtown Sioux Falls, with its 216 rooms, also had more bookings pre-opening than a 976-room Hilton in a much larger city.

“It felt like the city was really pulling around it,” said Scott Rysdon, CEO of Sioux Steel Co., which had owned and operated on the land the hotel now stands on since 1918.

“We’re really a city, not a town anymore.”

For almost a decade, Rysdon and his family had a vision for what their downtown property adjacent to Falls Park could become, meeting with multiple developers, touring reuse areas in other cities and soliciting public input.

“It elevated the level of what was going to happen there,” he said. “We just kept saying, no, we can put more in.”

While he envisioned a mix of office, residential, retail and restaurant uses, Rysdon credits Lloyd Cos. for landing the hotel and meeting space that will drive even more activity to the area.

“The feedback from so many people has been so positive, and I think they’re genuinely saying good things and sharing their experiences and creating an additional sense of community,” Lloyd Cos. CEO Chris Thorkelson said. “Just a lot of commentary as a whole as far as what this can be for our community and seeing something that hasn’t been open to the community for more than 105 years.”

From the family’s perspective, “I just couldn’t be more proud,” said Joelle Johnson, CEO of the family enterprise office for Sioux Steel and its foundation.

“It’s been very amazing. I like seeing other people’s reactions, bringing my friends there, and they’re just in awe. They’re like, ‘Wow, I didn’t know Sioux Falls could be something like this.'”

While the downtown redevelopment occupies about 7 acres, Sioux Steel still operates on just over 3 acres to the south. About 60 of its 350 employees work there, largely in administrative roles, with some of the property used for storage.

And, in a fitting twist, BronzeAge Art Casting moved into the manufacturing side of the facility and will play a role in one of the finishing touches for The Steel District development.

“We commissioned a really cool sculpture … and the artist is going to be using our manufacturing space for some of the work,” Johnson said. “It’s a very large impactful piece … we feel is going to bring people in and people are going to be talking about it.”

More detail about the piece will be released soon, with installation scheduled for early this summer.

That reflects a broader commitment to the arts throughout the development, Rysdon said.

“We said, ‘OK, let’s put our money where our mouth is’ and let’s put $1 million to the arts, so both our families (the Rysdons and Lloyds) put that in. … You don’t want to forget the arts and just make a commercial enterprise, so we have all these other locations where we have yet to put art.”

One recent installation inside The Steel District’s office tower brings a unique perspective on Falls Park with “Currents,” a blend of photography and light in this piece by Wes Eisenhauer.

Elsewhere throughout the development, other final pieces are coming together.

The office space is approaching 90 percent full, another restaurant — a second location for Jack Rose Social Club — will open later this year, the first residents are moving into The District Lofts, and condominiums are selling.

The development still has room to build more apartments around the parking ramp and bring some additional retail, but for the most part, it’s built out.

It’s now part of Johnson’s role to help determine the next steps for the balance of the downtown property.

“I think it’s really spurred on a lot of inspiration in others, and hopefully we’ll continue to build that area as well as maybe move to the east,” she said, acknowledging the city’s broader vision for the Weber Avenue corridor and adjacent Whittier neighborhood.

“We’re not moving super-fast, but I’m open to people coming in and seeing if they’re interested. I don’t want to kick Scott out.”

Rysdon, who jokingly calls the remaining team “squatters,” acknowledges that the time to plan for next steps is arriving.

“We’re back to the same status we were before as an eyesore, and now people will want to get rid of us badly enough to buy us and get us out of here,” he said with a laugh. “But we’re committed as we were in the first (phase) with what is the highest and best use for the city. What does the city need?”

From Sioux Steel’s perspective, though, “I’d like to be out of the downtown area only because we’re not close to the plants anymore,” he added. “The future looks good. We’re more of an innovative company in our space. We do a lot of R&D with new products for our industries, and we’ve done a good job maintaining our manufacturing space.”

The company also continues to grow its presence in Lennox, where it now does most of its manufacturing out of multiple buildings on the south end of town.

Sioux Steel has done business in Lennox since 1976 and gradually has grown its operation there manufacturing grain bins, buildings, livestock equipment, paddle sweeps and garden beds.

“The environment in Lennox is good. We’ve done a lot to move into the community and be part of the community,” Rysdon said, adding that the company has invested in the construction of housing nearby for employees.

The company owns additional land for another building, though maybe not enough to meet all its long-term needs, he said.