A 7-0 vote of the Sioux Falls City Council on Feb. 3 is serving as a sound endorsement for Lloyd Companies’ redevelopment of the downtown Sioux Steel property. The City Council approved $21 million in tax increment financing for the estimated $187 million mixed-use development anchored by a Canopy by Hilton hotel. It will support construction of a multi-use 900-stall parking ramp that will support the development.
“We’re so appreciative of the support. It was a great experience working with the city, but we invested the time to make sure everyone was comfortable with the project,” said Jake Quasney, executive vice president of development. “The next day, we were back to work with design and are moving full steam ahead toward a groundbreaking in August.”
Lloyd is working with Canopy on the next steps of the project including the design of the hotel. The hotel will feature 217 rooms and include a bar overlooking Falls Park, a coffee shop, a restaurant connected to a pedestrian alley, a ballroom that will seat up to 500 people along with multiple smaller meeting spaces.
“We’re at the point where we’re discussing things like fabrics, so it’s definitely moving along,” Quasney said. “We’ll even be developing model guest rooms so that we can ensure that the property will deliver exactly the best-in-class experience we all are striving for.”
The hotel will be attached to the parking ramp with a skywalk, and the ramp will be wrapped by 100 apartments along with 30,000 square feet of retail or office space. There’s also tenant interest in a nine-story office building included in the development, with two floors already leased.
“We have a lot of people who are very interested, but it takes a lot of vision to see it at this stage,” Quasney said. “It’s a big decision for a business to relocate, and it’s class A office space on the absolute best site in South Dakota, so it’s priced accordingly and we recognize it’s a decision that has to be made deliberately.”
The building offers 152,000 square feet of office space and 10,000 square feet of retail space which is scheduled to open next year.
Lloyd is actively working with five potential tenants, “so ideally, we’d get that filled up, but there is a long way to go before we cross that finish line, and we invite any interested tenant to reach out so we can begin that conversation,” Quasney said.
Food and beverage offerings will be a draw at the development. Lloyd is working with Edina, Minnesota-based Parasole Restaurant Holdings to develop unique bars and restaurants that will attract and keep people at the property.
“We’re working on concepts for the bar and restaurant in the hotel, and we’re excited about the concept that’s coming together in the office building,” Quasney said. “It will be multiple restaurant concepts from the same operator, so it will create a variety of atmospheres.”
The hotel and parking ramp all are scheduled to open in 2022, he said.
“It’s really a sprint to breaking ground.”
Learn more about the Sioux Steel redevelopment here.