Sioux Falls council advances rezoning, supplemental spending and $5M airport loan to second reading

The Sioux Falls City Council on Tuesday moved multiple first-reading ordinances to a second reading scheduled for Jan. 20, 2026, including a rezoning for future heavy industrial development, supplemental appropriations for street and transit projects and land to site Fire Station 13, and a $5 million interest-free loan to the Sioux Falls Airport Authority.

Council set the second reading for an ordinance to rezone 13.5 acres in Foundation Park North from AG Cultural to I-2 Heavy Industrial (parcel number 0220532025). Jason Bieber of Planning and Development Services described the parcel as 13.5 acres east of North Marion Road, west of I-29, and north of West Memory Circle, and said the applicant (Sioux Falls Development Foundation) plans to combine it with adjacent property for future heavy industrial use. The Planning Commission recommended approval, 5-0. The council voted 8-0 to send the ordinance to a second reading.

City staff presented a separate first-reading ordinance seeking supplemental appropriations in three areas. City staff member Tim said the first supplement adds about $600,000 in the sales tax fund—planning fees earmarked for arterial street projects, including planning for the Marion Road overpass. The second supplement would recognize a federal grant of $1,993,408 for bus pads and shelters; those federal transit funds are reimbursement-based and, according to staff, will replace locally planned spending on that project, keeping the total project cost in the roughly $2.0–$2.5 million range pending design and bids. The third proposal would transfer $2,000,000 from the centralized facilities internal service fund (reported in the November financials as having an available balance of roughly $10.7 million) into the sales tax fund to support land acquisition for Fire Station 13 and potential future station needs. Council voted to set the supplemental appropriations ordinance for second reading on Jan. 20 by an 8-0 voice vote.

Chief MacKerrabe of the Fire Department told the council the land acquisition is needed to keep pace with growth in the 60th Street North corridor and to provide coverage for Foundation Park 1 and 2; he said a previously proposed lease with the Discovery District was declined by the Board of Regents, which prompted staff to pivot to purchasing an identified parcel that would allow the station to be built and staffed this year if acquisition proceeds. Resident Catherine Rippel spoke during public comment in support of backing the fire department.

On Item 13, Councilor Thomason characterized a proposed $5,000,000 interest-free loan to the Sioux Falls Airport Authority as part of a larger airport expansion to add up to five gates; he said the city would provide the loan on the condition that state matching funds be made available and that the governor's office has proposed support. The council voted 8-0 to move the loan ordinance to second reading.

Council also approved a motion permitting councilors in their final year to attend the South Dakota Municipal League’s Municipal Government Day at the Legislature and the associated dinner in February. All votes noted in the meeting were unanimous, 8-0.

The items will return for a second reading and final action on Tuesday, Jan. 20, 2026.