Planning commission recommends approval of 92‑unit apartment plan at former city hall site

The Pierre City Planning Commission on April 27 voted unanimously to recommend approval of a Conditional Use Permit for a multifamily development at 302 E. Dakota Avenue, the site of the former city hall. The proposal, advanced by Stencil Group (purchasing from Chapelle Investments, LLC), would create 92 units: eight studio units, 35 one‑bedroom units and 49 two‑bedroom units. Utilities including water, sewer and storm sewer were installed in 2024 as part of TIF District #8, staff said.

During the public hearing, adjacent property owner Boice Hillmer objected to the application, saying, "I did not receive notice of the meeting," and alleging prior notification problems. Hillmer also questioned the sale price of a municipally owned parking lot conveyed to the developer and warned that loss of that public parking could hurt nearby businesses. Sonja Johnson, director of the South Dakota National Guard Museum, said the museum has limited parking and asked how increased demand would affect visitor access. Resident Debra Hillmer raised concerns about building in a floodplain and asked how underground parking would be accommodated and whether traffic would be routed through the alley; she also urged improved alley maintenance if it would be used for access.

Developer representatives and economic development staff defended the proposal. Jim Protexter of the Pierre Economic Development Corporation said the project responds to a demonstrated local housing need and cited prior developer success. Toby Morris of Colliers Securities, representing Stencil Group, framed the change from an earlier hotel proposal to multifamily housing as market‑driven and said the developer has tried to communicate with adjacent owners. Morris clarified that the proposed parking "would be partially underground and partially above grade" and that engineering would address applicable code requirements; he also provided rent estimates for comparable units, saying rates may "range from approximately $1,050 to $1,450" and that the project would meet income restrictions at 80% of Area Median Income though those rent levels may not match some perceptions of affordability.

After discussion, Commissioner Dave Templeton moved to recommend approval of the CUP and Commissioner Laurie Schultz seconded; the vote to recommend approval to the City Commission was unanimous. The Planning Commission record notes a parking covenant and a replat of Lots 1, 2 and 3 of Tract 1 (Center Point Addition) as part of the project's parking solution and references Section 12‑3‑102 of the city ordinance related to shared‑use parking.