Hotel, Parking Ramp, Retail Project Downsized to Just Parking
According to a release issued by Deputy Chief of Staff T.J. Nelson on Tuesday, 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.
On December 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.
The City has invested significant time and resources working with VRG in furtherance of performance of the development agreement.
On April 1, 2019, 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.
Nelson sites, the City of Sioux Falls has not ruled out private development at this site in the future. At this time, we are focused on the completion of the parking ramp portion of the project.
The project can and will proceed as a stand-alone parking ramp which will alleviate parking challenges within downtown Sioux Falls.
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.