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Sioux Falls settles lawsuit with developer for $500,000

Sioux Falls Mayor Paul TenHaken.
Jordyn Henderson
Sioux Falls Mayor Paul TenHaken.

The city of Sioux Falls is settling a multi-year dispute with a developer.

The settlement is with Village River Group. Mayor Paul TenHaken says the city will pay the company $500,000.

The city and the company were in court over a downtown development project. The city built a seven-story parking ramp downtown at Mall Avenue and 10th Street in 2020. The company was supposed to build an adjoining commercial development, but the deal fell apart.

TenHaken says the new agreement allows the city to seek a different partner for the project.

“To move forward with the private development opportunity on this site, we will begin working to clearly define expectations for a future developer and development," TenHaken says. "And ultimately we will select a partner who will use this site to add to the exciting growth that is already taking place downtown.”

Both parties are waiving all further damage claims as part of the settlement.

Jordyn is a videographer with SDPB.