Despite concerns with private partner, Village on the River gets go-ahead from Council
Joe SneveSioux Falls will soon have a 13-story mixed use parking ramp facility in the core of its downtown after City Councilors Tuesday night signed off on the $50 million project.
But before giving their blessing to the 525-space ramp with an attached 120-room hotel and commercial space, they listened to more than an hour of testimony from citizens on both sides of the issue and squabbled with each other late into the evening.
Project supporters said the facility, being called Village on the River, would address a parking shortage downtown and be a boon for downtown development and additional sales tax revenue.
Critics, though, zeroed in on the city's private partner in the project, Legacy Developments, and questioned why City Hall would do business with a firm tied to a building collapse in 2016 that left one person dead and another trapped in rubble for hours.
"Make sure corners aren't cut, rules aren't bent and things aren't overlooked," said Dan Fritz, attorney for a family injured in the building collapse, minutes before the Council voted 6-1 in favor of the development agreement with Legacy Developments.
More:Sneve: A look back at Sioux Falls' pursuit of a mixed-use parking ramp
With votes all along the same 6-1 line, the council also approved a $16.5 million bonding package needed to finance the pubic portion of the project, naming Sioux Falls-based Journey Group to be the lead contractor on the project, vacating a portion of Mall Avenue where the ramp will be built, and amending the city's five-year capital plan to provide for bond payments in future city budgets.
Councilor Theresa Stehly was the lone dissident on record, though Councilor Pat Starr tried to cast an abstention vote before being told by the City Clerk that Charter prohibits that. Rather, councilors must leave the room if they choose not to vote.
So that's what Starr did — and he didn't return to the Council chambers for another hour as a form of protest.
That didn't sit well with Mayor Mike Huether.
"City of Sioux Falls, an elected official has not been willing to perform his role," Huether told the room.
Despite all the commotion and political fireworks, City Hall's long-sought mixed-use parking ramp won the approval of the majority.
The city and Legacy Developments are expected to break ground on the 525-stall parking ramp and the attached hotel and commercial space this spring. The city's total portion of the project is expected to be $20.6 million, including the $16.5 million that will be bonded.
"This is a historic $50 million investment in our downtown," said Daren Ketcham, Sioux Falls Community Development Director. "Our team is committed to delivering this project in the highest and most ethical manner possible."
By the numbers - Parking Ramp Project costs
$50 million - Total project cost for Village on the River
$30 million - Private developer's portion of the project
$21.3 million - City's portion of the project budget
$16.5 million - Amount city will bond for the project
$13.8 million - City's estimated construction costs
$4.6 million - Estimated costs for site improvements, administration
$4.1 million - Cash city will direct to project
$2.2 million - Estimated cost for professional services and contingency fund
$1 million - Amount Legacy Developments will pay for the rights to build on city land
$700,000 - Amount already spent by city for parking ramp
80 years - Length of the lease agreement between the city and Legacy Developments
More:Sioux Falls City Hall unveils parking ramp designs, $20.6M price tag to city