The owners of a neighboring building just east of the Sioux Falls parking ramp, which was supposed to become a mixed-use facility, are serving notice to the City that they may sue because the project fell through.
River Centre at 200 E. 10th Street has several owners. Earthbend Properties, LLC and Riverview Holdings, LLC, which both have interest in the building, claim the City’s failure to complete the mixed-use portion of the project has caused them a loss in business and the value of their property to go down.
In May, the City of Sioux Falls terminated a development agreement and ground lease for the Village on the River project with the Village River Group. The developers were supposed to build a private hotel and retail space on top of the City-funded ramp. The City says the developers defaulted on the project.
Trent Swanson, attorney for Earthbend Properties and Riverview Holdings, also said the City didn’t warn the property owners at River Centre of a delay in the parking ramp’s opening, causing them further financial damage.
Earthbend Properties is owned by Brent Bargmann of Sioux Falls, who is on the advisory board of Earthbend, a technology company in Sioux Falls. His partner is Rob Beyer of St. Paul.
The South Dakota Secretary of State’s Office list Kenneth Karels as Riverview Holdings’ registered agent and manager. Karels is CEO of Great Western Bank.
In 2017, Great Western Bank sold its stake in the property to Earthbend Properties for $2.4 million. It now houses American Bank and Trust.
KELOLAND News reached out to the city. T.J. Nelson with the City of Sioux Falls gave us this statement:
“Due to potential litigation, the City is not commenting at this time.”