East River real estate company gives update on Rapid City’s Block 5 project and construction begins
RAPID CITY, S.D.– With construction crews beginning work on clearing the area near the intersection of St. Joseph and Fifth Street in Rapid City, Vice President of Development for Sioux Falls-based Lloyd Companies Luke Jessen explains more about the work being done.
Photos of the construction being done
Delays to the project
According to Jessen, financial delays to the project caused things to get pushed back months after the original proposed construction date of Fall 2022. Inflation combined with supply chain issues, he explains. “We had projected it was roughly a $60 million project. But, you know, as we’ve all experienced, inflation has really driven costs up both from an income level for the project. What we projected as the income, but also the expenses, the cost to build it. Fortunately, we were able to make a workable project and you will see construction starting here this spring.” As a result, the projected cost is now around $80 million, up around 30 percent from the previous amount.
Length of time
In total, the project is expected to take around 24 months before completion in the Summer of 2025. Currently, the plan for construction crews is to clear the fenced-off areas of any old utility lines, asphalt, trees, and any other structures or things that might get in the way. “And that’ll continue over the next couple of weeks, getting that site cleared off and ready for construction. But then into April, you will start to see all of the new utilities going. There is a big power line that goes through the alleyway, that will move underground,” he said. By May and June, he says that footings and signs of a foundation will start to be visible before the building goes vertical by late summer.
What is the Block 5 project?
The project will consist of a 10-story building with over 200 units for both residential space and as part of a new Hyatt Hotel location. Also included will be retail space and a parking garage with over 300 spaces.
