Developer backing off Lacey Estate project, for now

A Sioux Falls developer is tabling plans to turn a century-old urban farmstead into an apartment complex after protests from neighbors.

The Sioux Falls Planning Office this week notified the City Council that Lloyd Companies will ask that a hearing to rezone six-acres of urban ag land at Sixth Street and Bahnson Avenue be pulled from next week’s meeting agenda.

The project, unveiled by the developer earlier this summer, has faced heavy opposition from the neighborhood group Shape Oakview, concerned about traffic safety, density and storm water run-off.

Initially, Lloyd Cos. wanted to build a 143-unit apartment complex, but amended the project down to 112-units after the City Council in June delayed action on the rezone request. But the smaller scope only stoked opposition from Shape Oakview members, who said the new plan exacerbated drainage concerns.

“We will take (Lloyd Cos.’ request) to the City Council meeting and ask for a motion to withdraw the rezoning petition,” Planning Director Mike Cooper said.

A withdrawal, if granted by the Council, would allow the developer to make another run at rezoning the parcel in the coming months. An outright defeat of the rezone request, in contrast, bars an applicant from pursuing another rezone of the parcel for six months.

Tony Burke, the de facto leader of Shape Oakview, cautioned that a withdraw does not mean the neighborhood’s work is finished. Rather, he said the group plans to work with the property owners Lloyd Cos. planned to acquire the land from to find an agreeable path to development.

“Now the work begins on how do we get this developed in a way that is a win-win for everybody,” Burke said.

Erica Beck, vice president of development for Lloyd Cos., did not immediately respond to requests for comment Thursday.