Sioux Falls, S.D. - The city of Sioux Falls recently announced a new multi-million dollar mixed-use parking ramp near 10th and Philips just behind PAve. Tuesday, the city council will hold its first reading to discuss the project. It’s something never before seen in Sioux Falls. City leaders call it P3: a public private partnership for the mixed use ramp. While they agree more parking is needed, some have brought up concerns about what this project will really do for the parking situation.
“We are looking at building a $20 million ramp approximately and a $30 million development that a private developer will put on top of the ramp that will be 13 stories high,” Sioux Falls City Councilman, Greg Neitzert said.
This $50 million building would be one of the tallest in downtown Sioux Falls.
“100 percent will come from the parking enterprise. It’s making about a $4 million down payment in money that they have saved,” Neitzert said.
Those enterprise funds are user fees from parking and fines. City leaders said the mixed-use parking ramp will feature 525 public parking spots, 120 hotel rooms, and more than 37,000-square-feet of commercial space.
“When you look at it the sheer size of it and the fact that we'll have 500 spaces. You'll almost not even know that there’s a parking ramp there because it’s going to be fronted by private development. It’s just going to be a game changer and then you’re going to be talking about millions of dollars in sales tax revenue, the hotel taxes, and the property taxes,” Neitzert said.
Some city councilors said this ramp won’t offer that many spots.
“This deal has 525 spots but it’s replacing 135 that already exist. We’re down to 390 spots net of what we're going to do. The development is going to take at least 100 if not 150 spots. So now you're into the 200 range that will be a net plus to the downtown,” Sioux Falls City Councilman, Pat Starr said.
Councilman Starr said he doesn’t think that’s enough to solve the parking problem.
“One thing that really concerns me is that this ramp won’t give us the ability to expand if Sioux Falls grows and I plan on Sioux Falls growing immensely in the next 80 years,” Starr said.
Other concerns include who's investing in the project. The city council will be able to ask questions of the developer and the community development department at Tuesday’s meeting.