Council Approves $21.9 Million Administration Building

The 70,000 square foot City administration received the green light for construction at last night’s Sioux Falls City council meeting on Tuesday April 5, 2016.

Money to pay for the bond would come from the half penny city sales tax.

City finance director Tracy Turbak says it’s a savings to build rather than lease from a third party by nearly $400,000 over the expected lifetime of the building.

The building would be constructed just west of the Downtown Public Library on Dakota Avenue.

Dennis Breske of NAI leasing said there are alternatives, including purchasing the 300 building, saving 12 million in his estimate.

Realtor George Hahn suggested further review of other options for office space in the city and a full comparison of available properties.

Jeff Hazard with Koch Hazard architects says the 300 building does have a drawback, more levels, it only meets short term, and can’t be expanded.

City council then voted on the project:

Council members who voted for the project were Michelle Erppenbach, Kenny Anderson Jr, Rick Kiley, and Rex Rolfing while those against the were Christine Erickson, Greg Jamison, Dean Karsky, and Kermit Staggers.  Mayor Mike Huether voted to break the tie 5 to 4.

The spending cap for the new city administration building is set at $21.9 million dollars.

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