SIOUX FALLS, S.D. (KELO.com) -- The Sioux Falls City Council has given the initial OK for the sale of bonds to help fund a chunk of their $20 Million commitment to a new downtown parking ramp development.
Councilors voted 5-1 on Tuesday with Theresa Stehly provided the lone no and Christine Erickson and Rex Rolfing absent.
Community development director Darren Ketchum confirmed that the city's investment in the project is $21.3 Million.
Finance director Tracy Turbak says the city is aiming to sell $16.5 million worth of bonds. Additionally, $4.1 million cash from the parking fund will be put down in cash. Turbak adds that bond proceeds would also be used for the cost of issuing the bonds, and capitalized interest payments. The city still need to iron out a few details, such as if the bonds will be issued in tax exempt form.
Additionally, Legacy Developments will retain the rights to develop the retail portion of the structure for the next 80 years. Legacy will pay the city $1 million for those rights up front, and will be responsible for the completion of the private property.
The city also wrote a completion guarantee into the agreement with Legacy, giving each party 18 months to complete their portion of the project. The city plans to begin work on the parking ramp in April of 2018, which means Legacy would need to begin work on their portion of the project by September of 2019.
The second reading of the bond sale ordinance is set for December 5th.
