City to Offer Prime Downtown Property for Redevelopment
Published on November 06, 2025
The City of Sioux Falls is listing for sale one of its downtown surface parking lots to be redeveloped. The lot is located at 113 East 13th Street, just north of 14th Street, and between Phillips and First Avenues, near the south end of downtown Sioux Falls.
Through a negotiated sale process, the City is seeking proposals to redevelop the property that align with the City’s vision for a dynamic, walkable downtown that supports density, accessibility, and economic vitality.
“This property is a blank canvas in one of the most desirable areas of downtown,” said Dustin Powers, the City’s Business Development Coordinator. “The elevation of the site provides opportunity to capture sweeping views of downtown. We are optimistic this opportunity will attract interest in developing this location, which presents a unique opportunity for visibility, density, parking access, and site readiness. It is ideally situated within walking distance of many amenities that downtown has to offer. We look forward to viewing proposals that bring energy, innovation, and long-term value to downtown Sioux Falls.”
The 1.09-acre site is development-ready and offers excellent access to existing infrastructure and parking.
Property highlights include:
- Current use: City-owned public parking lot with 118 existing stalls.
- Located in an opportunity zone.
- Zoning: Downtown Planned Unit Development (DTPUD).
- Site size: Approximately 47,400 square feet (1.09 acres).
- Dimensions: 158 feet by 300 feet (not surveyed).
- Proximity: Walking distance to downtown amenities, restaurants, retail, and entertainment.
The project goals were developed from the City’s 2035 Downtown Plan, which was adopted in 2023 and is used to guide downtown development for the next decade.
- Consistent with the vision and objectives within the 2035 Downtown Plan.
- Leverage the site to create density, activity, and uses that contribute to the vibrancy of downtown.
- Create a mix of uses within the development.
- Activate street frontages and increase connectivity and walkability.
- Complements the public parking needs of the area.
- Development and construction teams shall have experience specific to downtown urban development.
- Use quality design and materials that create a long-term investment.
The City will use a negotiated sale process to facilitate the sale of this property. Through a negotiated sale, parties interested in purchasing the property must submit a proposal that demonstrates the purchaser’s financial ability and experience necessary to complete the purchase and the proposed development and shows how the proposal will meet the City’s redevelopment goals for the property. Proposals are reviewed by Planning and Development Services (PDS). If a purchaser is selected by PDS, the sale and redevelopment plan is subject to approval by the Sioux Falls City Council.
If the City does not receive proposals that meet the property’s desired redevelopment goals, the City can delist the property and maintain it as public parking.
Current parking leaseholders at the property would not be expected to relocate until after a sale is complete. The Public Parking team will work directly with leaseholders to find alternate public and private lease options within a one- to three-block area of the current location.
The property is currently listed, and the City is accepting proposals. PDS will begin reviewing proposals in January 2026.
Additional project details and information on the negotiated sale process and application are available at siouxfalls.gov/business/real-estate.