Stockwell Engineers Inc. is the latest tenant to move into a historic downtown district that's being redeveloped into a retail, office and residential hub.

 

The company relocated the first week of December to Larson Square, one part of the Uptown at Falls Park project. Stockwell occupies 6,000 square feet on the main level. Its neighbor is a restaurant, A Taste of The Big Apple, which opened Oct. 15.

 

Larson Square, along North Main Avenue near Fourth Street, also has 20 apartment units, all of which are leased, said Raquel Blount of Lloyd Cos. The Uptown project is a collaborative effort of Lloyd Cos., Legacy Real Estate, Cirrus Commercial Realty Services and Koch Hazard Architects.

 

"It's coming together as we hoped it would," Blount said. "We're really capitalizing on the trend to be in a historic, renovated building."

 

Larson Square has 1,000 square feet of commercial space still available.

 

At the nearby Tri-State Creamery building, which also is part of the Uptown project, the Muscular Dystrophy Association recently signed a contract to lease nearly 2,000 square feet and move in before the end of the year.

 

"We just were ready for a different location, one that fits our needs a little better. We're really excited about it," district director Heather Fortin said. "Here, we had a blank slate; we could design it the way we want. We also like the downtown area."

 

The Tri-State building has 2,200 square feet of commercial space available. After Larson Square and Tri-State buildings are filled, the DeKalb building at 522 N. Main will be the next renovation project, Blount said.

 

The biggest part of the Uptown project will be The Arches, two new seven-story towers that will have apartments as well as retail and office space. Construction of the first tower is expected to begin in spring.

 

Developers have applied for federal tax credits that are earmarked for projects in "minor urban" areas. If approved, tho9se tax credits would help with The Arches project.

 

Pursuing anchor tenant

Blount said that project, which will be near Phillips Avenue, is in the planning and marketing phases. Developers have held several meetings with local businesses that might be interested in locating there.

 

"We're pursing our anchor tenant," she said. "Once we have an anchor, we'll break ground."

 

The Arches buildings will have 86,600 square feet of office space and more than 12,000 square feet of retail space. The energy-efficient buildings will have 75 loft apartments and condominiums. Amenities will include a conference room and fitness center.

 

Blount said there's growing interest among people who work downtown and also want to live there. Some don't own cares.

 

"We're glad it's part of the latest trend," she said. "We're very excited."

 

The city of Sioux Falls has promoted downtown development and wants to establish more residential property there, said Erica Beck, an urban planner for the city.

 

"In our 2015 plan, we identified that as something we need to work on, whether it's rehabilitation of historic property or new construction," Beck said.

 

Residential development is needed to support and retain services and commercial endeavors downtown, she said.

 

Nearly 1,300 people live downtown, according to a 2007 survey commissioned by Downtown Sioux Falls Inc. A University of South Dakota business research group identified a downtown residential population of 1,270 at that time. The population has grown in the past year.

 

For Stockwell Engineering, the move to Larson Square was a matter of finding more space and having a downtown location.

 

The 25-year-old company had run out of room in the building it had occupied for 19 years at 14th Street between First and Second avenues, President Jon R. Brown said.

 

"I'm a big fan of the downtown area. We were looking at four places in the area that were for lease," Brown said. "Here, we had more flexibility with our floor plan. The other big thing is I like that area. I like the idea of what could happen here with the Uptown project.

 

Building plans on hold

Stockwell owns land at 14th and Minnesota Avenue, and Brown said he still plans to construct a multitenant building there some year, but now isn't a good time.

 

"The only reason is because of the uncertainty of the economy," Brown said.

 

When Stockwell bought the 14th and Minnesota property, Brown said he received frequent inquiries from people interested in leasing space there. Now, he gets one inquiry every four months, "if I'm lucky."

 

He decided to lease downtown instead of build and said Larson Square offered what he was looking for. The company signed a five-year lease.

 

The location is a short distance from two of Stockwell's most significant projects, Falls Park and Phillips to the Falls.

 

It's also close to the city's newest pizza restaurant, Big Apple manager Andrew Meier said he and owner Karen McParland were intrigued by the Uptown project when they looked for a location.

 

Blount said she expects Big Apple's outdoor seating and patio to be popular in spring and summer. Businesses that lease space in the buildings have inconspicuous signs, which is part of preserving the historic look.

 

"We want to tie into the historical district," Blount said. "The signs are consistent with the way things were when the buildings were built."

 

In the early stages of the renovation project, developers worked with historians and incorporated ideas from renovated historic districts in other cities, such as Omaha.

 

"We're just very excited to have this type of project and cooperation among developers," Blount said. "It gives Sioux Falls a definite advantage having these types of property."