SIOUX FALLS, S.D. (KSFY) - For 15 years, a Sioux Falls developer has been eyeing the property between 8th Street and 6th Street in downtown.
At Tuesday's city council informational meeting, Jeff Scherschligt, managing partner and founder of Pendar Properties, gave his proposal for the property.
Last year, a developer backed out of a deal to build a multi-use building in the Railyard Development.
The city-owned redevelopment area is split into several acres ranging from A through E. Scherschligt hopes to purchase B and C.
"So, we're really creating a place where they talk about live, work, and play," he said.
Scherschligt has also developed and restored several buildings in downtown Sioux Falls, including Cherapa Place. He is hoping to continue his vision to complete what he says is a gap on 8th Street.
"We believe by putting the stake in the ground of quality, it's something people can really be proud of," he said.
The multi-use building called "Railyard Flats" will include 7,500 square feet of office space, outdoor decks, dining areas, a courtyard, and even 42 apartments.
Railyard Flats is just phase one of a two-part phase. They will start construction on Cherapa II once they find a tenant, and it would cost more than $900,000 to buy and $40 million to build.
Railyard Flats will cost more than half a million to purchase from the city and $13 million to build, Which Scherschligt says is a realistic project done by people who have a history of getting things done. He says this is an excellent start and hopes it'll be a catalyst for getting other developers interested in the area.
Many city council members seemed to be supportive of the development. Councilor Pat Starr says this is something they have been talking about for years.
"He brought us a great project that really makes sense for our community," Starr said. "And is doing it the right way because that's been our concern the entire time we've gone through this railroad redevelopment process."
Starr says there is demand for more office space downtown, and this will only add to the already growing area.
If approved by the city council, construction on Railyard Flats could begin as soon as next spring. For Cherapa II, Scherschligt has two years to find someone interested in the space.