Sioux Falls, SD (KWSN) - The Washington Square project, an exciting mixed-use building proposed for construction adjacent to the Washington Pavilion, plans to begin construction in fall 2015. The project is designed as a seven- to eight-story building that will contain a mix of retail, office, residential, and parking components in a single structure. It will be constructed along Main Avenue for a total cost of approximately $30 million.
The project developers have applied for tax increment financing (TIF) from the City to offset some of the extraordinary costs and public improvements associated with the project. After a series of meetings over the past three months, City officials and representatives of the Washington Square project have mutually agreed to support the creation of a TIF District in the amount of $2.5–2.9 million to support the project and ensure it moves forward. The amount of TIF support recommended is less than the $4.7 million amount originally requested in the developer’s application but adequate to assist in closing the project’s financial gap.
“This will really be a first-of-its-kind project in downtown Sioux Falls mixing residential units with office and retail space, as well as significant parking for both private and public uses,” says Darrin Smith, Director of Community Development for the City of Sioux Falls. “It will be another great addition to our downtown, and one we are really excited about supporting.”
Specific project expenses recommended for reimbursement through the TIF District include site cleanup and environmental remediation, stabilizing the surrounding streets and sidewalks, and contributing to a portion of the costs to construct approximately 125 parking spaces that will be made available to the public.
Washington Square is the ninth downtown area project since 2010 to receive support from the City for tax increment financing. Seven projects have been previously approved and another project is currently under consideration by the City Council. The Washington Square project will be reviewed by the Planning Commission on August 5and by the City Council in August and September, at which time approval will be requested.