Major Development Planned for Downtown Pierre

On Tuesday, May 24, Pierre Mayor Steve Harding rolled out a partnership with Hegg Companies to redevelop the former city hall property located along Sioux Avenue. It involves an apartment complex, a hotel, an office building, retail space and the closure of one block of Chapelle Street.

"This development is a game changer for our community and especially our downtown area," said Pierre Mayor Harding. "We have been working on this development since before the pandemic; this will be awesome!"

The development will be bordered on the north by Sioux Avenue and on the south by Dakota Avenue; it's east and west borders will be between Highland Avenue and the alley to the east of Chapelle Street.

"To allow for the necessary development space, the City will vacate that block of Chapelle between Sioux and Dakota Avenues," said Mayor Harding. "To make this deal happen, we'll also purchase a small piece of county property and work with PEDCO to sell it and the city-owned property that houses old city hall."

The City Commission took action to put that land deal into motion by approving the purchase of the county-owned building and parking lot located at the northeast corner of Chapelle and Dakota.

"We are very excited to be in the Pierre market," said Paul Hegg, Hegg Companies President and CEO. "We think this urban infill project will enhance the Central Business District and be a catalyst for future development."

Hegg will serve as the project developer and owner of the 80-room hotel and 60-unit apartment complex set to be built on the property.

"There's some land sales that need to happen, some additional financial pieces that will require commission action, but this project is mature and ready to get started," said Mayor Harding. "I'd expect you'll start to see work at the site by the end of the year."

In 2018, Pierre City Hall relocated from 222 E. Dakota Avenue to 2301 Patron Parkway, leaving a large lot along Sioux Avenue available for redevelopment.

"When we moved City Hall, I had a vision to use the old City Hall space to revitalize the downtown area and create a sales tax producing space," said Mayor Harding. "We have talked to a number of developers over the last couple years, and I'm pleased to say we have now found the right fit."

PECDO COO Jim Protexter is calling the project a big win!

"Housing and downtown revitalization are two challenges that are tough for many communities," said Protexter. "This development addresses both those issues and is a giant shot in the arm for Pierre."

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