SIOUX FALLS, S.D. (KELO) — A new $160 million development will transform the Eastbank of downtown Sioux Falls.
Three new buildings are planned next to the current Cherapa Place, adding 180,000 square feet of office and retail space along with 150 apartments, 12 luxury condos and 1,000 parking spaces.
“We wanted something that was going to be visionary and big and this is going to be very big for downtown and for the city,” Sioux Falls City Councilor Greg Neitzert said.
It’s a major step in the railyard redevelopment project now years in the making.
“I bought this land over 17 years ago and we had a vision to deploy this land for the betterment of the community,” Cherapa Developer Jeff Scherschligt said.
It’s a goal developer Jeff Scherschligt that began with the opening of Cherapa Place in 2008.
“It followed up by the city doing the River Greenway, the Arc of Dreams, the Hilton Garden Inn and all of the other things that have come along with it,” Scherschligt said.
Now his new vision for Cherapa looks to spur even more development downtown.
“This is a once in a lifetime project, probably the biggest thing to happen in Sioux Falls this year, ” Sioux Falls City Councilor Alex Jensen said.
Cherapa two will be the largest building in the development.
“We’re looking at a 9-story building, this is only six, so we’re talking about three stories higher,” Scherschligt said.
It includes retails space on the ground floor with 130,000 square feet of office space above and 12 luxury condos on the top two floors, along with a unique new wedding and event space.
“A large 5,000 square foot interconnect between building one and two that will be three stories high overlooking the river and the Ampitheater and back across our courtyard,” Scherschligt said.
On the east side of the courtyard will be Cherapa 3 and 4.
“Retail on the main level and apartments are way up high because they’ll be on top of the two- and three-story parking ramps,” Scherschligt said.
These two buildings will add another 150 apartments, along with 1,000 new parking spaces thanks to a public private partnership.
“This project will support a $25 million TIF, that’s over a 20 year period,” Scherschligt said. “That will be used to pay for those parking ramps and a little bit of the underground work on the site.”
An investment city officials believe this new development will quickly cover.
“It’s going to add a major, major amount of property tax, sales tax and that’s going to give us money that we can invest all around the city,” Councilor Neitzert said.
Work on all three buildings is planned to start this fall, but Scherschligt said the continued rise in construction costs and supply chain issues could impact the timeline.
“I’ve had to add millions and millions and millions of dollars to this project because of construction costs,” Scherschligt said.
All three buildings should be complete in 2023.