Lloyd Companies announced plans Wednesday to build a $60 million hotel, retail and apartment complex where the city previously attempted to develop President's Plaza.
The company hopes to break ground by next spring.
The development called Block Five will feature a 117-room Hyatt Place hotel and 131 loft apartments. It will also have 5,000 square feet of first-floor retail space and 330 parking spaces, according to a news release.
"We believe this is the right development at the right time for downtown Rapid City," said Jake Quasney, Lloyd's executive vice president of development. "The combination of building activity, housing demand, and visitor industry resurgence makes us very excited to deliver this project."
Lloyd was selected to develop the property at the intersection of Fifth Street and St. Joseph Street by Elevate Rapid City after a competitive process in 2019.
Tom Johnson, president and CEO of Elevate Rapid City, said this project will fulfill a broader vision for the community.
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“The community identified how we needed a mixed-use plan that accommodates retail, as well as a high-end business travel-oriented hotel and downtown living,” he said in the press release. “This just hits all three out of the park and is going to contribute to bringing Rapid City into a new era where downtown is a place to live, a place for business travelers, and a bigger part of a thriving community.”
The apartments will start at around $995 for studios, $1,295 for one bedrooms and $1,895 for two bedrooms.
Luke Jessen, senior director of development at Lloyd, said the company will ask the city for an $8.75 million TIF, although a hearing date has not yet been scheduled.
The apartments, hotel, conference center and parking structure will all stand independently but be connected for free movement within the building, he added.
"There's a lot of interest in Rapid City," Jessen said. "The hospitality industry in Rapid City and just the region as a whole has been very strong for the last year. Bringing a project forward for much needed housing and a new hotel in downtown is pretty exciting as well."
The company is now working through the final design phases and approval process for Block Five. The goal is to open in 2024. The project will soon appear on the Tax Increment Finance District Review Committee, Planning Commission and Historic Preservation Commission agendas.
The site was previously planned for the $40 million President's Plaza project, a 15-story development proposed by Dream Design International developer Hani Shafai in the late 2000s. It included condominiums, office space, a conference center, a restaurant, a hotel and a 500-stall garage.
The project was rejected by the City Council in 2016.
Mayor Steve Allender said in a statement Wednesday that there has been a commitment in recent years to develop the downtown area with an emphasis on residential living, retail experience and visitor accommodations.
"Block 5 will greatly enhance these opportunities and underscores the work invested in development not only in our downtown core area, but also in helping to influence our efforts to renovate the east of Fifth Street area, the corridors leading to South Dakota Mines, and connecting The Monument to the downtown area," he said.
Lloyd Companies is based in Sioux Falls with a Rapid City office.
— Contact Siandhara Bonnet at email@example.com —