A $5.6 million expansion project under way at The Children's Home Society will provide enough space that therapists no longer will have to work in closets.

The 117-year-old nonprofit's project includes a $2.3 million renovation of the Loving School education facility and a $3.3 million renovation of the Van Demark Building, the school's residential complex, said Bill Colson, Children's Home Society executive director.

"Right now, we have therapists that are serving the needs of parents and families in closet space," he said. "Our campus was built for a much smaller number of children than exist here now."

While the project will provide much-needed space for the Children's Home Society, it also will be a shot in the arm for the local economy, said Jeffrey Schmidt, assistant director of planning and building services for the city of Sioux Falls. His office considers any nonresidential construction projects of more than $1 million significant.

"Any construction project of this size has a lasting benefit to Sioux Falls," he said, referring to the amount of people it takes to facilitate the work. "They're living in Sioux Falls, and they are shopping in Sioux Falls. That's a good thing for Sioux Falls."

More than 90 children use Children's Home Society services every day, Colson said.

There are 62 children in residential treatment and about 30 day students - children who receive schooling at the facility and then go home to be with their families at night.

The Children's Home Society won't take on any more clients as a result of the project but will be better able to provide for the number of children it now serves, Colson said.

The two-story renovation and addition project will include a link between the two buildings, and in the Van Demark Building will be an activity area, offices, a library, a family visit room, a laundry room and a waiting area, according to the Sioux Falls Planning and Building Services.

Renovations to the school are under way. Work will start on the residential facility in mid-August. The expected completion of the entire project is spring or summer 2012.

In total, about 6,000 square feet of new space will be added to the campus at 801 N. Sycamore Ave., as well as 94,000 square feet of remodeling.

"That's going to take us awhile to get all that done," he said.

Colson said the Children's Home Society soon will release information about who contributed money to the project.

"We need to make sure that they don't mind that we release any of that information or if any of them would like to remain anonymous," he said.

The Children's Home Society began as an orphanage in 1893 but started on its current mission of education and therapy in the early 1970s.

The project "illustrates that we are in the business of serving the kids that need us, and we're doing the best we can at that," Colson said.

Reach reporter Joe Sneve at 331-2370.