SIOUX FALLS, S.D. - The City of Sioux Falls provided the Village River Group (VRG) with a notice of termination of their development agreement and ground lease for the Village on the River project Tuesday.
On April 1, the city notified VRG that it was in default on the Village on the River project. In accordance with the development agreement, VRG had 30 calendar days to cure multiple defaults. VRG has failed to cure these defaults within the development agreement’s cure period or at any time thereafter.
The project will proceed as a stand-alone parking ramp which will alleviate parking challenges within downtown Sioux Falls. The city has not ruled out private development at the site in the future, but right now, officials are focused on finishing the parking ramp portion of it.
Consistent with protecting taxpayer interests, the city has reserved any and all of its legal remedies available to it under the terms of the development agreement.
On Dec. 29, 2017, the city entered into a development agreement for construction of a mixed-use development including a public parking ramp and private hotel with leasable retail space.