After a redevelopment project announced in the spring of 2022 for the site of the former Pierre City Hall building never turned into reality, town officials announced this week (March 31, 2026) that a new, similar project is in the works.
Pierre Mayor Steve Harding says the downsized project by a different company will still be an improvement for the empty space next to First Dakota National Bank.
Harding says Stencil– the company that built the Abbey Road apartment building near City Hall– intends to begin construction this year. He says Pierre will also be selling Stencil an additional piece of property nearby.
City Commissioner Jamie Huizenga says adding any type of housing to the community is a good thing.
City Commissioner Todd Johnson asked about Tax Increment Financing (TIF #8) associated with the 2022 project and City Administrator Kristi Honeywell provided the response.
Construction is tentatively expected to begin in July 2026, with completion anticipated in late 2027. A detailed site plan is expected to be released in the near future.
The news release from City of Pierre is below.
Pierre Mayor Steve Harding is pleased to announce renewed progress on a long-anticipated downtown redevelopment project, with Stencil Group set to purchase and develop the remaining property formerly owned by Chapelle Investments.
The project site includes the former City Hall property, which relocated to the Eagle Creek building in 2018. Following the move, the City issued a Request for Qualified Developers to encourage redevelopment that would enhance economic activity and increase local sales tax revenue.
Initial interest came from Hegg Companies, with plans advancing until the COVID-19 pandemic paused development due to rising inflation and construction costs. Discussions resumed in 2022, the former City Hall property, along with Hughes County and Pryntcomm parcels, were sold and repackaged under Chapelle Investments.
Since that time, progress has included the successful development of a northwest parcel now occupied by First Dakota National Bank, which has been operating for over a year.
Due to continued economic challenges, Chapelle Investments worked with Mayor Harding to identify new development partners capable of moving the project forward.
The Stencil Group will construct a new apartment building featuring approximately 92 units, including a studio, one-bedroom, and two-bedroom options. The development will include 68 underground parking spaces and will be situated along Dakota Avenue.
In addition, discussions are underway to potentially construct a hotel on the eastern portion of the site.
To support the project’s parking needs, the City plans to sell the municipally owned parking lot at the corner of East Dakota Avenue and Coteau Street to the developer with the help of the Pierre Economic Development Corporation. This strategic move supports Mayor Harding’s broader housing initiatives while reducing future taxpayer costs associated with maintaining and reconstructing the lot.
“I know the community has been frustrated, and I share that frustration with the pace of this project,” said Mayor Steve Harding. “We appreciate everyone’s patience as we worked through significant economic challenges. We are now moving forward, and this development will expand housing opportunities, increase future sales tax revenue, and help revitalize downtown Pierre.”
Developer Perspective Nate Stencil of Stencil Group noted the success of previous housing developments in the community.
“Our Abby Road project experienced a strong lease-up and stabilized within approximately six months of opening,” said Stencil. “Due to continued demand, we believe there is room in the market for additional units.”
Stencil added that Pierre’s collaborative approach made the investment decision clear.
“The City’s proactive approach to development and the ease of working with City officials made Pierre an attractive place to invest. Mayor Harding and his staff have been incredible to work with.”
Project Timeline Construction is tentatively expected to begin in July 2026, with completion anticipated in late 2027. A detailed site plan is expected to be released in the near future.
Additional updates will be shared as the project progresses.
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