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Nov 05, 2026
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Downtown Sioux Falls Business Owners Voice Concerns Over Proposed Parking Rate Changes

Sioux Falls, SD – At a Tuesday City Council meeting, downtown business owners and residents gathered to discuss a proposed amendment to the city’s parking ordinance that would raise the allowable cap on parking rates. While the ordinance does not automatically increase every rate, officials hope the higher cap will encourage turnover and make more spaces available for shoppers and diners.

Business owners stress customer access

“People still are confused about where the ramps are and how that works,” said Tami Brown, co‑owner of Spice and Tea Exchange. “The biggest thing is that customers don’t understand why they have to pay to park right in front of a store that wants them to patronize it. We need those cars to turn over because if someone parks for eight hours, we lose seven or eight customers throughout the day who might have otherwise shopped here.”

Brown’s comments reflect a broader concern among merchants that higher parking fees could deter both local residents and out‑of‑town visitors from spending time downtown. Many small businesses rely on short‑term parking turnover to attract foot traffic, especially during lunch hours and weekend events.

Parking revenue operates as an enterprise fund

The downtown parking system is funded as an enterprise fund, meaning it is self‑sustaining through the fees it collects rather than through general city taxes. City officials argue that the proposed cap increase is a prudent fiscal measure designed to keep the system solvent while also addressing the growing demand for parking as downtown Sioux Falls becomes a more popular destination.

“The ordinance is meant to give the city flexibility to adjust rates when necessary, without automatically raising every spot,” explained a council spokesperson. “Our goal is to balance revenue needs with the community’s desire for accessible parking.”

Merchants note rising popularity of downtown

Jill Jorgensen, store manager of Matchbox Candle Co., echoed the sentiment that downtown traffic is on the rise. “Once in a while, somebody will be in here, we’ll be yapping it up or something. They’ll be like, ‘yeah, I gotta hurry up and get going. I gotta go plug my meter again.’ I haven’t heard of anybody yet saying, ‘oh, it was so hard to find a place to park.’”

Jorgensen’s observation suggests that, despite occasional frustrations, many patrons are still able to find parking, though the increasing volume of visitors may soon strain the existing supply.

Public input encouraged

The council will revisit the ordinance at a later meeting, scheduled for 6:00 p.m. on a forthcoming date. Downtown Sioux Falls encourages residents and business owners to submit comments via email to the City Council, ensuring that a wide range of perspectives are considered before any final decision is made.

Community members who wish to weigh in can send their thoughts to the council’s official email address, which was provided in the meeting agenda. The city has pledged to keep the process transparent and to publish any revisions to the ordinance after the public comment period closes.

What’s at stake?

Should the cap be raised, downtown merchants fear that higher fees could reduce spontaneous visits, especially from families and seniors who rely on affordable parking. Conversely, city officials maintain that a modest increase could fund needed maintenance and improvements to the parking infrastructure, ultimately benefiting both drivers and businesses.

As the debate continues, the balance between fiscal responsibility and maintaining a vibrant, accessible downtown remains the central focus for Sioux Falls leaders and the business community alike.


Original reporting: Dakota News Now KSFY Sioux Falls (local) — read the source article.

OBBM Network Editorial Staff

[email protected]

Editorial team behind OBBM Network — independent, hyper-local journalism syndicated through HyperLocalLoop and OBBM Network TV.

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