Dave Baumeister | County Correspondent
SIOUX FALLS – “I believe in public/private partnerships. They work!”
At the Tuesday, June 1, meeting, Jeff Scherschligt of Pendar Properties said this to the Minnehaha County Commissioners about future plans for Cherapa Place in downtown Sioux Falls.
As Scherschligt explained, this overall project began 17 years ago, and the first the community knew of it was soon after, with the failed implosion of the old Zip Feeds mill, formerly located near 6th St., northeast of the downtown area.
Part of that area now is the current Cherapa Place, which is referred to as a “business center.”
According to Scherschligt and Dustin Powers, Community Development Coordinator with the City of Sioux Falls, Cherapa place was only the first building in this project.
Now, the Cherpa II Place Railyard Redevelopment is scheduled to begin this year, with different phases.
Schelschligt reminded commissioners that the start of this project, the original Cherapa Place, was the first development to “put its front door to the (Big Sioux) River.”
Today, 16 years later, Scherschligt added that the river greenway space has converted more of downtown into what the city had envisioned for population density and walkability.
Besides just Cherapa Place, there are now several hotels, restaurants, offices, and even a dog park that neighbor on a river in an area that was once not viewed as “prime space.”
These newest plans call for construction to begin this year and finish in phases between 2022 and 2024, and while the county was briefed on the project, the main request is going to Sioux Falls.
Unlike the “if you build it, they will come” approach taken by the City of Sioux Falls with the defunct Village on the River development in 2017, Pendar Properties is only looking for the area to be made a TIF district for $25 million.
In 2017, the majority of the Sioux Falls City Council agreed to spend $21 million on a parking ramp to go with what was to be a premiere business space called Village on the River, which fell through in 2019, after the city had already built the parking ramp.
A TIF district does not pay out anything to help build a project, but it earmarks taxes collected to be used just on the infrastructure for that project.
The normal length of a TIF district is 20 years, and after that time, taxes collected go back into general use.
Scherschligt said that the taxes on this property are currently around $50,000, but in 20 years, with this development, projections show that number could exceed $2.6 million.
After a very positive, upbeat presentation from Scherschligt, Commissioner Jeff Barth told him, “We are lucky to have you as a developer.”
He said Scherschligt was a “visionary,” and his “infectious exuberance” is what makes these projects work.
“I want Sioux Falls to be known as ‘the little town that could,’” Scherschligt said. “We’re going to show the ‘big towns’ that this can be done (in Sioux Falls).”
And one to grow on
To be reminded of another project for which commissioners approved a TIF district in January 2020, Lloyd Properties talked to them about redoing that district due to COVID delays.
The Sioux Steel development was supposed to begin last year in Sioux Falls, and would be located on the former Sioux Steel property between the Levitt Band Shell and the Falls of the Big Sioux River.
Like the Cherapa II project, this would also be a TIF district that would apply to the parking ramps they need to build.
Like so many things, the project was put on hold during the pandemic, and they are looking at the timeline being “reset” to accommodate the new schedule.
As explained at the meeting, the previous TIF would need to be eliminated so a new TIF district could be established.
Luke Jessen with Lloyd Properties said that plans were about the same as in 2020, but that they now were looking at adding another story to their residential building to accommodate the expected increase in the downtown population.
A family affair
Marlin Sejnoha, Jr. thanked commissioners when they voted to extend the contract for Summit Food Services for the Minnehaha County jail.
While best know for their Marlin’s Restaurant locations, the family developed the food service industry CBM (Catering by Marlin’s) for South Dakota correctional facilities.
Last year, CBM merged with Summit Foods, a national company for correctional food service and commissary needs.
Barth talked about when the Sejnoha family first came to the commission many years ago to ask for the jail contract.
He said that at the time, the entire family was at the meeting and lined the first row.
While there is usually no meeting during the second week of the month, there will be a special commission meeting next Tuesday, June 8, on the second floor of the Minnehaha County Administration Building at 6th and Minnesota in Sioux Falls.
As always, everyone is welcome to attend, and there is time allotted for any public comments.