What projects will the city of Sioux Falls tackle next? Here’s the $931M plan

The next five years will bring major road projects, new or improved swimming pools, the completion of the city’s massive water reclamation plant expansion and upgrades to the park and bike trail system.

Mayor Paul TenHaken delivered his proposed five-year capital improvement program, or CIP, to the City Council this morning.

It totals $930.7 million over five years, with $187.2 million of that coming in 2023.

“We’re trying to do this in an incredibly tense and volatile economic climate,” TenHaken said. “This is a little more conservative than we typically would have done because of that economic uncertainty.”

For instance, the Finance Department is projecting a 4 percent increase in sales tax revenue in 2023 and 2024, and is budgeting the current year at 8 percent, despite the fact that revenue is currently ahead of that.

“Obviously, inflation will drive a lot, but we’re also hedging a little bit against a slowdown in the economy,” finance director Shawn Pritchett said.

The city also has layered in a 20 percent increase in project costs, which reflects what the Public Works Department in particular already has experienced this year. It has forced some projects to be delayed, though most are still scheduled to be done this year.

“We’re trying to get ahead of supply chain issues,” public works director Mark Cotter said, noting the city bought ahead and bought more in bulk with certain materials early in the season. “We tried to adapt. And our efforts have been successful.”

TenHaken said the recommended projects reflect his overall “One Sioux Falls” framework for the city, which includes elements of foundational growth, innovation, health, safety and accessible housing and has expanded in his second term to place a greater emphasis on kids and families.

“As kids and families go, so goes a healthy community, so goes the rest of the city,” he said. “The themes for me are balancing repair and maintenance work with the fact that we continue to grow at a record pace.”

Here’s a look at some of the key projects planned for 2023 and beyond:

Expanding roads

When it comes to major road projects in Sioux Falls, get ready to see more work that is taking two seasons to complete instead of one.

That’s the case with the “diverging diamond” interchange at 41st Street and Interstate 29 and the adjacent improvements around 41st and Marion Road. It started this year and will wrap up in 2023.

The next diverging diamond interchange project will start next year at Benson Road and Interstate 229 in partnership with the state of South Dakota. That’s also a two-year project.

“There’s a lot of activity in that area this year,” Cotter said. “The Development Foundation is improving Bahnson Avenue between 60th and Benson, and that will open up another 200 acres of industrial land, and this year Sycamore Avenue is being improved between Benson and 60th Street North to really frame up that industrial area and take advantage of some of the linkage over to Veterans Parkway.”

The city also will build on its North Marion Road project from this year, further extending the road to support Foundation Park and will continue into year two of its work on Arrowhead Parkway and the realignment of Six Mile Road.

To the south, 57th Street will be built out between Veterans Parkway and Six Mile Road in 2023.

“Last year, we did grading and utilities. This year, we’re doing additional utility work, and next year our intention is to hard surface that to support growth and development,” Cotter said.

The coming year also will be a big one for the long-awaited south end of Veterans Parkway. The plan is to construct the road between Western and Cliff avenues, which is a two-year project, “and our intention is to bid a project (on South Veterans Parkway) every year, and each one will take two years,” Cotter said.

The city also will widen nearby Cliff Avenue south from 85th Street for a half-mile to support the Harrisburg Freshman Academy and eventual full high school.

On the repair and maintenance side, there are more than 800 blocks scheduled to be improved in 2023. Major reconstructions include the next phase of Minnesota Avenue, which would be Second Street south to at least Sixth or Seventh streets, as long as the city can secure the 42-inch water main pipe it needs for the project, Cotter said.

A major project for 2023 will be the rehabilitation of the Sixth Street bridge, where design is underway and construction will go out to bid late this year to start in 2023 and finish in early 2024.

“It’s coming along very nicely, and we’ve got the same design team that put together the Eighth Street bridge,” Cotter said.

The city had to delay its planned improvements to Phillips Avenue between Eighth and Ninth streets this year and subsequently has redesigned and expanded that project to go to 10th Street, plus a section east on Ninth.

“We essentially tripled the scope,” Cotter said, adding that while it’s not locked into a future year yet, it is part of the five-year plan.

Upgrades to the city’s water reclamation plant also have started, but it’s a 38-month construction project, so there will be a lot of work done in 2023. The Sioux Falls Regional Landfill also will make upgrades, with a new three-lane scale house and expanded public drop-off area.

Park upgrades

The coming year for the parks department will be dominated by conversations about the future of aquatics. The CIP includes a bond issue that will allow for replacement of aging pools, including Frank Olson, Kuehn and McKennan, updates to Laurel Oaks and Terrace Park, along with potentially a south-side pool.

While a total amount for the bond will be established after community input, the city is factoring in debt payments for it beginning in 2024.

“There will be a community engagement component,” Pritchett said. “And with all the increased activity and use at the Midco Center and efficiency it provides, we’ll certainly look at what that looks like versus an outdoor pool.”

A replacement clubhouse at Elmwood Golf Course is also structured into the pool bond, which would allow construction in 2024.

The city also is partnering to provide $800,000 to complement private funds raised to construct a community skate park across from the Drake Springs Family Aquatic Center, which will allow that project to be built next year.

The bike trail will see expansion in 2023, too, with a new segment planned from Lien Park at 2000 N. Cliff Ave. east to Bahnson Avenue.

“People have been asking for that for a long time, and there’s a continued commitment to bike trail expansion,” TenHaken said.

What’s next

You’ll hear more about the city’s budget in the coming months, including July 21 when TenHaken delivers his budget address and unveils the 2023 operating budget, which is separate from this CIP.

Budget hearings will be held in August with further detail on the plan, followed by a vote of the City Council this fall.