City officials and developers are planning another major project for downtown Sioux Falls.
The Sioux Falls Development Foundation obtained purchase agreements for two parcels along the Big Sioux River, the group announced Tuesday.
The announcement comes as construction is underway on several major development projects in downtown Sioux Falls, including two mixed-use developments costing over $420 million.
The new development, called the Riverline District, would be located near the intersection of 10th St. and Cliff Ave, east of downtown Sioux Falls.
Architect Tom Hurlbert said there are several options on the table for the new project, noting leaders are open to “whatever the community dreams up.”
“Development could include year-round recreation access, could include housing, business development, and it could include opportunities for professional or amateur sports,” he said. “There’s all kinds of opportunities, but what’s most important is that there are family-friendly opportunities.”
The project could reignite interest in moving the stadium of the Sioux Falls Canaries, a minor league baseball team, to a downtown location.
Hurlbert said developers want the project to fuel economic revitalization in the Whittier neighborhood, directly north of the project area.
Mayor Paul Tenhaken said the development could take the form of a multi-season recreation center.
“That’s something the community has asked for and, quite honestly, is demanding,” he said.
Within the next 18 months, the Sioux Falls Development Foundation can buy the land or assign it to another entity. Tenhaken said it’s “very likely” the city will be the ultimate buyer, but specific costs will depend on evolving economic conditions over the next 18 months.
“We’ll be in a different build climate, and we’ll assess at that point [if] we can afford to bond this,” he said.
Park land owned by the city also makes up a large portion of the area, which historically housed a pool, sports arena and sunken garden.
Land that would be purchased under the agreements houses offices for state agencies, including South Dakota Social Services. The building, formerly a Sears department store, is currently owned by Ernst Capital Group through a limited liability corporation. The other parcel is owned individually by David Rubin.
One organization leading the project is Friends of the Riverline District, co-chaired by Natalie Eisenberg, CEO of a local marketing agency, and Lynne Keller Forbes, executive director of Dakota BUSINESS Finance.
The organization is seeking input on the project until mid-March.
Eisenburg said the area was “identified as an opportunity zone” during a 2022 process that evaluated the future of Sioux Falls’ downtown.
Five organizations — Forward Sioux Falls, Downtown Sioux Falls, Experience Sioux Falls, the Southeastern Development Foundation, and Dakota Business Finance — have contributed about $250,000 for the project’s deposit, website and future consulting fees.
According to Tenhaken, the project is important for South Dakota because Sioux Falls drives state sales tax revenue and plays a large role in the labor market.
“We have to continue to look at ways that we’re attracting people to want to work here, to want to live here, to want to stay here,” he said. “That means investing in opportunities like this for people to take advantage of.”
