Update provided on development of downtown Sioux Falls rail yard

Local News

For years Sioux Falls city leaders worked on repurposing the rail yard in downtown Sioux Falls. But progress has been slow. In 2018, city leaders selected a $70 million development for the area; however, that project fell through. Now new plans are surfacing for the roughly 10 acre site.

The City of Sioux Falls owns tracts of land on the east bank of the Big Sioux River that are labeled parcels A through E. Jeff Scherschligt, who developed Cherapa Place in downtown Sioux Falls, is looking to buy parcels B and C.

Both Scherschligt and Jeff Eckhoff, director of planning & development services with the City of Sioux Falls, spoke in front of the City Council on Tuesday. There is already an agreement between the city and Scherschligt, Eckhoff explained.

“It’s a two-part agreement where we close on parcel C by the end of the year, and Jeff will start development right away next spring,” Eckhoff said. “And then he has two years to pull the project together for project B, which will be a larger, more substantial kind of working title of Cherapa II.”

Scherschligt says the general plan for Cherapa II would be mixed use. Railyard Flats would have apartments, office, retail and parking spaces.

“You’re going to see when you get to Railyard Flats that we’re adding the green component- so that’s grasses and trees and native grasses and walking paths and those type of things,” Scherschligt said.

“Parcel C where Railyard Flats would be constructed, we’d be looking at bringing that part of the project forward to you here in the next couple months, and looking at trying to close on that property by the end of the year,” said Dustin Powers, urban planner with the City of Sioux Falls. “That would give Jeff enough time to start the project in the spring of 2020.”

“The Railyard Flats project will happen, the ground will be broken in the spring, and we’ll get this baby done,” Scherschligt said.

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