Lloyd Companies Announces Sioux Steel Development and Canopy Hotel

Lloyd Companies Announces Sioux Steel Development and Canopy Hotel
Projects

A seven-story Canopy by Hilton hotel, a nine-story mixed-use building and a parking ramp surrounded by apartments, office and retail will be the first phase of Lloyd Companies’ redeveloped Sioux Steel site in downtown Sioux Falls.

“We’re thrilled to see this plan moving closer to a groundbreaking,” Lloyd CEO Chris Thorkelson said. “To secure a Canopy hotel speaks volumes about this location and our community, which has triggered our next steps to bring this concept forward and truly begin creating a new, one-of-a-kind destination for Sioux Falls.”

Part 1: Canopy by Hilton

Sioux Steel Development Canopy Rendering

The 217-room Canopy and convention space will include a bar overlooking the falls, a restaurant activating the pedestrian alley, along with a ballroom that will seat up to 500 people and multiple smaller meeting spaces to host conventions or corporate events.

Canopy by Hilton hotels have a local, boutique-style feel. Guests can expect a casual yet upper-upscale atmosphere, access to an orange Canopy bike to explore Sioux Falls, an emphasis on art and an energizing lobby with areas to dine, have a drink or work.

The closest Canopy to Sioux Falls is in the Mill District of Minneapolis. The brand launched in 2014 to appeal to travelers seeking locally inspired stays and wishing to immerse themselves in the culture and history of the neighborhood.

“We are excited to introduce Canopy by Hilton to Sioux Falls, a destination full of adventures,” said Gary Steffen, global head, Canopy by Hilton. “The property will enable guests to explore the city’s many outdoor wonders, growing food and beverage scene and unique local boutiques.”

The hotel is scheduled to break ground in the summer of 2020 and open in 2022.

“We are so proud to be working with Canopy and can’t wait to introduce this brand to Sioux Falls,” said Jennifer Seifert-Brenna, who leads the Lloyd Hospitality division. “There are less than 12 Canopy hotels open in the world right now. This brand is developing in markets such as Washington, D.C., Chicago, London and Reykjavik, so to have their leadership decide that the Sioux Steel site was a fit says so much about our community and the fantastic opportunity that awaits us.”

Part 2: Parking and Wrap

SiouxSteel Site Plan Phase 1

The hotel will connect via a skywalk to a 900-stall, eight-story parking ramp, which will be wrapped by 100 apartments and 30,000 square feet of retail or office space. The parking ramp will be owned and maintained by Lloyd. This phase of the development is scheduled to open in late 2022.

“With the density we’re proposing on this site, parking of this volume is required,” said Jake Quasney, executive vice president of development for Lloyd “But we’re maximizing our development by integrating collaborative commercial spaces focused on experience-driven culinary and retail venues and offices as well as residential space. Our apartments will be next in the evolution of our loft apartments in Uptown following the success experienced at Phillips Avenue Lofts and The Cascade.”

Part 3: Office and Retail Space

Sioux Steel Development Rendering

The third element of phase one is a nine-story building that includes 150,000 square feet of office space and 10,000 square feet of retail space. It’s scheduled to open in the spring of 2022.

“We’re extremely encouraged by the interest being expressed by a wide range of office users and hope this announcement will garner even more,” Quasney said. “The community can anticipate this mixed-use building will have unique turn of the century architecture, with an emphasis on clean, comfortable quality design and materials.”

Lloyd is honored to work with a project team including:

  • Box Interior Design
  • Confluence
  • ESG Architects
  • Koch Hazard Architects
  • Norman Engineering
  • VanDeWalle Architects

Sioux Steel Involvement

Sioux Steel will continue to operate on a portion of the property as construction begins on the first phase of the redevelopment. Over time, they will transition the manufacturing operations to their Lennox Campus.

“We’ve been operating on this site for 100 years and are now honored to make it available to the community,” said Hugh Dodson, Sioux Steel’s development director. “Our hope is to draw people from all walks of life to share in this destination and build on the inclusiveness that began with the Levitt.”

Financing

Lloyd Companies intends to request $21.5 million in tax increment financing from the city of Sioux Falls to support the proposed parking ramp in the first phase of development. The TIF district and development agreement are expected to appear on the city planning commission and the Sioux Falls City Council agenda in the coming months.

If approved, phase one construction will start as early as possible in 2020.

“We appreciate the city agreeing to bring our proposal forward and are committed to being exemplary partners,” Thorkelson said. “We look forward to opening up this site for the public to enjoy and we are grateful to be involved in redeveloping this once-in-a-generation opportunity that will transform our downtown forever.”