Sioux Falls, Sanford Health strike $9M deal on westside wellness center
City Hall wants indoor space to be included in $77M aquatic bond package
Sioux Falls City Hall wants to borrow $77 million to pay for a series of new indoor and outdoor aquatics and recreation centers on the east and west sides of town.
The city of Sioux Falls announced Wednesday that it intends to purchase a 70,000-square-foot wellness center at 32nd Street and Tea-Ellis Road from Sanford Health, which has agreed to sell the complex for $9 million.
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The acquisition is part of the Sioux Falls Parks and Recreation Department’s vision for creating new indoor recreation programming opportunities for users of all ages, and dovetails on plans to build a new outdoor aquatics facility at Kuehn Park and an indoor recreation center at Frank Olson Park in the coming years.
“When we survey our Sioux Falls residents about their recreation facility needs and priorities, they tell us that their priorities are indoor playgrounds, indoor running-walking tracks, and indoor fitness and exercise facilities,” Parks Director Don Kearney said during a morning press conference announcing the intent to purchase the property. “Acquiring this facility from Sanford Health will be a great step toward meeting those needs. I can’t be more excited about this opportunity.”
Pending approval of the City Council, the purchase would be finalized no later than Jan. 1, with the $9 million being included in a broader indoor recreation and aquatics bond that councilors will vote on in May.
Beyond the purchase price, the bond will include $3 million for “day one” improvements to the wellness center — a new roof, parking lot surfacing, and aesthetic enhancements will be necessary. Kearney said the complex’s potential opportunities include indoor aquatics, court sports, multi-generational fitness activities, indoor walking/running, a variety of recreational programs and classes, and community gathering spaces.
Mayor Paul TenHaken said the property was appraised at about $15 million, but the city is getting a discount because Sanford Health had a desire to offload the facility and the city’s intended use for the wellness center will bring health benefits to the community. The $6 million the city is saving on the deal is also an indirect show of support by Sanford Health for the City Hall’s ambitions to redevelop what’s being called the Riverline District east of downtown.
“The additional dollars that the city could have spent on acquiring this, Sanford Health is using as a token of support for what’s going on with the Riverline District and that project,” TenHaken said. “That allows us to have $6 million less in debt service.”
The overall bond package will be $77 million, which includes $47 million that the Frank Olson Park project is estimated to cost, as well as $18 million for the Kuehn Park pool.
According to the Sioux Falls Finance Department, it’s estimated the yearly payment on the bond for the city will be around $5.5 million.
