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Published September 23, 2025 at 8:00 PM
Updated September 24, 2025
Site work and paving for a sidewalk / parking lot in Sioux Falls, South Dakota. Conceptual plans call for site work for a sidewalk / parking lot; and for paving for a sidewalk / parking lot.
https://pigeon605.com/citys-newly-proposed-5-year-capital-improvement-program-is-heavy-on-roads/ Sales tax growth is slowing in Sioux Falls, forcing spending on city projects to hold steady with it. The newly proposed five-year capital improvement program is almost identical in size to this year’s, reflecting a heavy emphasis on street projects and other infrastructure work. “It is a step back from where we were previously, so overall that means about a $20 million reduction on the sales tax portion year over year, which is the second year in a row we’ve shrunk the size of the sales tax program,” director of finance Shawn Pritchett said. The CIP was provided Friday to the Sioux Falls City Council. It represents part of the full budget, which Mayor Paul TenHaken will deliver July 24. The five-year plan totals $1.1 billion, with $229 million in spending slated for 2026. The plan is based on the city achieving 3 percent growth in sales tax this year — so far it’s at 1 percent — and growing by 4 percent each year from 2026 through 2028 and 5 percent in 2029 and 2030. “We do expect when the economy starts to move along more quickly we’ll make up ground from these lackluster years,” Pritchett said. In public safety, the key project is a new fire station — the city’s 13th — scheduled to open in late 2026 at a site to be determined on the northwest side of town. “They’re just continuing to watch growth patterns across the community and where the greatest need is,” Pritchett said. Funding also is included in 2030 for potential land acquisition to support an east-side report-to-work station for the Sioux Falls Police Department. Road, infrastructure projects The historically large construction projects underway across the Sioux Falls interstate system and on Veterans Parkway will continue through 2026 and beyond. The Public Works Department counts $431 million in planned investments in the five-year plan. “The general theme for us still since 2022 is we’ve been working closely with the DOT (South Dakota Department of Transportation), and we’re both seeing about a 15 percent cost escalation year over year,” director of public works Mark Cotter said. “The benefit right now, 2025, is we’re starting to see prices level off, and there’s a fair amount of capacity in the contracting arena right now, so we’re seeing that with some very competitive prices.” The coming year will bring the second one of construction on South Veterans Parkway from Cliff Avenue to the northeast, the second year of intersection construction at Veterans and Arrowhead parkways and the first year of construction for the new interchange at 85th Street and Interstate 29. “It’s very rare to build a brand-new interchange and gateway interchange, and it’s going to be terrific for the whole region,” Cotter said. The final segment of South Veterans Parkway from Western Avenue to I-29 also is slated to start in 2026 and be finished two years later. In central Sioux Falls, the plan is to complete the second phase of reconstruction on Minnesota Avenue from Second Street south to Eighth Street, similar to how it was done from Second Street north to Russell Street in recent years. There’s also a project to construct a railroad crossing overpass at Marion Road just north of Interstate 90, “which in the near term is to support Foundation Park and long term to build out that northwest transportation network,” Cotter said. The capital plan also includes “a very robust maintenance program again,” he added. “Our annual program is about 700 blocks a year. We’ve taken no budget reductions on the maintenance side. We want to make sure the roads people drive on throughout the city are well maintained.” Beyond 2026, the capital improvement plan’s subsequent years show several major projects, including the reconstruction of Minnesota Avenue and Interstate 229 beginning in 2027, the reconstruction of the intersection at 41st Street and Louise Avenue, and the long-awaited extension of 49th Street from Western to Duluth avenues. Benson Road also is scheduled for improvements from I-29 to Westport Avenue because “there’s just a lot of activity,” Cotter said. “You’ve got DSU and Sanford, and we need to start improving those roadways.” In the enterprise funds — water, water reclamation, light and power, and landfill — which are funded by user fees, October will bring completion of the expanded wastewater treatment plant. A pump station project is underway on the west side of Sioux Falls that initially will open up 3,000 acres of development, “but ultimately, it’s the backbone to open up just over 32,000 acres to service the west side for the next 100 years,” Cotter said. There’s also a wastewater expansion coming in the southeast, with construction starting next year and continuing for several years. “We’ve secured land for the future pump station and are actively working with property owners to secure the necessary easements,” Cotter said, adding it ultimately will open 8,000 acres of development. The water division is wrapping up a high-volume collector well this year and will have its third connection coming to the Lewis & Clark Regional Water System on West 12th Street. Park, entertainment projects Much of the city’s funding for parks and recreation is coming through bonds to replace the pools at Frank Olson and Kuehn parks, with Kuehn scheduled to open for the swim season of 2028 and the replacement indoor recreation center at Frank Olson in 2029. The next new neighborhood park to be funded will be Wild Meadows in northeast Sioux Falls, scheduled for design in 2026 and construction in 2027. The next stretch of city recreation trail will be in the northwest from Songbird to Madison streets, with design in 2026 and construction in 2027. Park investments reflect ongoing public surveys, director of parks and recreation Don Kearney said. “Adult health and wellness is off the charters, and neighborhood parks and trails are always at the top of the list,” he said. “Indoor recreation, swimming, running and walking tracks, fitness and then large community parks are the top priorities that arose out of the system plan.” There’s also funding later in the five-year plan for additional improvements to Frank Olson Park as the recreation center is complete — “programming the north side to take the pool out, playground, pickleball and restroom and do two fields,” Kearney said. And there’s $4.2 million for the Sioux Falls Zoo & Aquarium spread throughout the CIP to address master plan improvements. In the capital portion of the entertainment tax, the projects are fairly standard improvements: HVAC and digital upgrades at the Denny Sanford Premier Center, lighting improvements at multiple city entertainment facilities and upgrades at the Orpheum Theater Center to include part of the marquee and renovations to the south lobby and concession area. Farther out, the Washington Pavilion is slated for a stage and seat replacement project in 2029. “That will be a major overhaul for that facility,” Pritchett said. There’s also $11 million spread throughout the plan for upgrades to Sioux Falls Stadium, though most of it comes from 2028 to 2030. That includes replacing the field lighting and control system, replacing the visitor and umpire locker room, new retaining walls in left field and the outfield, a new green space berm and drink station, and energy-efficient lighting improvements. “We had a structural assessment completed … and wanted to understand whether the bones were good or not and what improvements to the stadium might look like and potential costs associated with that,” Pritchett said. “We put in a first phase, a placeholder, because it’s a couple years out — knowing it’s not a given we’re going to do it, but we wanted to model it into the entertainment tax. We wouldn’t move forward with anything until we do a full master plan for the event center campus, which wouldn’t come until at least the end of 2026 when we have a new administration — if they choose to move forward with it.” ------------------------------------------------------------------------------------- Update:https://issuu.com/siouxfalls/docs/fin24_007_cip_book-final The development of greenways, trail corridors, and neighborhood connections in the park system and the systematic reconstruction of existing trail. Big Sioux River Trail Corridor (Lien Park to Bahnson), construct (25); Cherry Creek Trail Corridor (Songbird St. to Madison St.), design (26), construct (27), (Madison St. to Maple St.), design (29); Arrowhead Park Trail, design (28), construct (29); Trail reconstruction (25-29) Project is included City of Sioux Falls Fiscal Year 2025-2029 Page no 49 ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- The development of greenways, trail corridors, and neighborhood connections in the park system and the systematic reconstruction of existing trail. Cherry Creek Trail Corridor (Songbird St. to Madison St.), design (25), construct (26), (Madison St. to Maple St.), design (27), construct (28); Dawley Farm Trail, design (26), construct (27); MJW Arboretum Trail, construct (25); Arrowhead Park Trail, design (26), construct (27); Neighborhood trail connections, design (27), construct (24, 28); Trail reconstruction (24-28). As of August 31, 2023, this project is currently in the FY 2024-2028 CIP. Information regarding a design team and the contractor selection has not been disclosed. A firm timeline for construction has not been established. *Project information has been obtained through a public capital improvement plan (CIP). A CIP is a financial schedule for short- and long-range projects which is updated regularly. Information listed in the CIP often evolves based on funding availability and the project details, including timeline and value, are subject to change. The content management team will continue to pursue additional details as they become available.
Conceptual
Sidewalks / Parking Lot
$7,490,000.00
Public - City
Paving, Site Work
Plans and Specifications are not available for this project. If that changes, they will be made available here.
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