PIERRE, S.D.(DRGNews)- Adjustments are being made to the plans to redevelop the area where Pierre’s old city hall building used to be.

While giving a budget request presentation during Tuesday’s Pierre City Commission meeting, Commissioner Vona Johnson asked Pierre Economic Development Corporation COO Jim Protexter for an update on the Hegg Companies project.

Johnson then asked about the rest of the development space along Sioux Avenue, to which Protexter replied that Hegg Companies is reworking their plan.

Protexter said the Sioux Falls-based Hegg Companies project is “fully intended to proceed.”

The original plan, unveiled in spring 2022, included an 80-room hotel, 60-room apartment complex and a commercial building. The development agreement also includes creation of a Tax Increment Financing District where the City of Pierre will set aside up to $5.45 million of the new property tax collected on the hotel to help finance the project. In alignment with City policy, up to $200,000 of the new sales tax collected at the hotel property would be rebated back to Chapelle to assist with financing the construction of the hotel.

TIFs are economic development tool that are used throughout the state. They have been used successfully in Pierre for the Menard’s development, Clubhouse Inn and Suites development and the strip mall that houses Arby’s and Papa Murphy’s.