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Sioux Falls council clears way to redevelop downtown parking lot at 113 E. 13th
Summary
The council voted 8–0 to discontinue use and declare surplus a city‑owned surface parking lot at 113 E. 13th Street, initiating a negotiated sale process to solicit redevelopment proposals aligned with the 2035 downtown plan while relocating existing monthly parkers to nearby ramps.
The Sioux Falls City Council unanimously approved Nov. 4 a resolution to discontinue municipal parking use at 113 E. 13th Street and declare the property surplus to pursue negotiated sale and redevelopment.
Dustin Powers, Planning and Development Services, said the surface lot contains about 118 stalls with roughly 87% leased on a month‑to‑month basis. City staff told council there is sufficient capacity to relocate most monthly users to nearby ramps—particularly the Washington Pavilion Ramp less than a block away—and that the negotiated sale would require prospective developers to address parking needs and contribute to downtown density and street‑front activation in line with the 2035 downtown plan.
Public Parking manager Matt Nelson said the city could relocate at least 75 of the lot’s monthly lessees to the Pavilion Ramp; staff also described opportunities to lease unused private church parking and coordinate shared use where feasible.
Council and staff emphasized the discontinuance and surplus resolutions are the first steps in a multi‑stage process; any negotiated sale would come back to the Public Parking Advisory Board and full council with a purchase and development agreement. Staff said they will notify current leaseholders when the solicitation is announced and aim to review proposals in January with decisions later in 2026 if agreements proceed.
Councilors asked about outreach to the El Riad Shrine (adjacent to the lot) and to existing tenants; staff said they had begun conversations and would continue coordination with the Shrine and affected downtown property owners. Councilor Sale asked for evidence about capacity at other ramps; Public Parking staff confirmed ramp capacity to accommodate the majority of tenants.
The council approved both the discontinuance (item 33) and the surplus declaration (item 34) by unanimous vote, authorizing staff to begin a negotiated sale process to solicit redevelopment concepts and proposals.
