If you have walked through downtown Sioux Falls anytime in the past five decades, you have probably passed the Wells Fargo building at 101 North Phillips Avenue without giving it much thought. It has been one of those permanent fixtures, the kind of building that seems to have always been there and always will be. But here is the thing about cities: they change, sometimes slowly and sometimes all at once. Right now, Sioux Falls is standing at one of those moments where everything is about to shift.
The Wells Fargo branch downtown is closing its doors for good on May 7, 2025, and by the end of this year, the bank’s lease on the entire property will expire. That might sound like bad news at first—another bank leaving downtown, another empty building, another sign of trouble. But that is not the story here. Not even close. The real story is what comes next, and it is big. Like, 18-to-20-story big.
Local real estate broker David Shelton, who has been working behind the scenes on this for years, finally has the green light to move forward with plans that could completely transform not just this one block, but the entire future of downtown Sioux Falls. We are talking about a mixed-use tower with residential units, modern office space, a hotel, ground-floor retail, including a much-needed grocery store, and public spaces that actually make you want to stick around. The Federal Aviation Administration has already given initial clearance for a building up to 220 feet tall, which would make this one of the tallest structures in the city and fundamentally change how downtown looks and feels.
So yes, the Wells Fargo building as we know it is coming to an end. But what is rising in its place could be the catalyst that takes downtown Sioux Falls from a nice place to visit to a place where people genuinely want to build their lives.
The History: From Northwestern National Bank to Wells Fargo
To understand why this redevelopment matters so much, you have to understand what this building has meant to Sioux Falls for the past 52 years. The building first opened its doors in 1973 as the Northwestern National Bank building. Back then, downtown Sioux Falls was a very different place. The city was smaller, the economy was more focused on agriculture and regional banking, and this building represented something important: confidence in downtown’s future.
I remember my grandfather talking about banking at Northwestern National. He would drive in from the farm, park right on Phillips Avenue, and walk into that building like he owned the place. That was the relationship people had with their banks back then—it was personal, it was local, and the building itself was designed to project stability and permanence. You can still see that in the architecture today. It is solid, substantial, and has that mid-century modern banking aesthetic, all about conveying trust.
Of course, the banking industry went through massive consolidation in the 1980s and 1990s. Northwestern National became part of Norwest Bank, which eventually merged with Wells Fargo in 1998. The building kept operating, kept serving customers, but the world around it was changing. In 2013, the property and the surrounding plaza were officially renamed RH Johnson Plaza, a nice gesture toward the building’s history but also a signal that changes were coming.
What is interesting about this building is that while it has been a reliable anchor for downtown, it has also become increasingly outdated. The office spaces are not what modern companies want. Retail at street level has never really been activated as it could. And that massive parking ramp next door? It takes up prime real estate in the heart of downtown without contributing much to the street life that makes urban areas vibrant. For years, city planners and downtown advocates have looked at this 2.6-acre block and seen missed potential. Now, finally, that potential is about to be unlocked.
The Transition: Why Wells Fargo is Leaving
Let us be honest about something: when a major bank announces it is closing a downtown branch, the initial reaction is usually concern. Is downtown dying? Are businesses fleeing? Is this a sign of economic trouble? I had those same thoughts when I first heard the news. But after digging into what is actually happening here, I can tell you that this is not a story about decline. It is a story about evolution.
Wells Fargo is not leaving Sioux Falls. In fact, they are investing in a new office space at 6100 S. Old Village Place, right off 69th Street and Western Avenue in the growing southwest part of the city. They are taking over the former Bancorp building and doing a complete gut renovation to create a modern workspace for their wealth management and commercial banking teams. Some of the employees currently working in the downtown building will move to this new location, while the branch staff and certain operations teams will remain downtown until the May closure.
This move is part of Wells Fargo’s larger corporate strategy to consolidate its real estate portfolio. They have been doing this in cities across the country—evaluating every property, determining what they actually need versus what they have inherited through decades of mergers and acquisitions, and making tough decisions about where to invest. According to company spokesperson Staci Schiller, this is about “building a stronger, more efficient Wells Fargo” and ensuring they are “managing our costs responsibly” while still meeting customer needs.
Here is what actually happened with the timeline: Wells Fargo moved their corporate offices out of the second floor of the downtown building some time ago. The first-floor branch will close on May 7, 2025, and its lease on the entire property expires at the end of 2025. That lease expiration is the key date because it finally allows the property owner and developer, David Shelton, to move forward with redevelopment plans that have been in the works for nearly a decade.
I think it is worth noting that this transition has been handled pretty thoughtfully. The bank is not just abandoning downtown—they are consolidating their footprint in a way that makes business sense while allowing one of the most important redevelopment opportunities in the city to move forward, finally. Sometimes you need to clear the deck to build something better, and that is exactly what is happening here.
The Developer: David Shelton’s Vision
Now we need to talk about David Shelton, because understanding who is behind this project tells you a lot about whether it will actually happen and be done right. Shelton is a broker with Century 21 Advantage here in Sioux Falls, and he has been working on this block for years. This is not some out-of-town developer who showed up last year with big promises and no track record. This is a local guy who knows this market, knows this property, and has been patiently waiting for his moment.
Here is a detail that tells you everything about Shelton’s long-term thinking: back in 2015, he actually responded to the city’s Request for Proposals for this area. The city was looking for ideas to enhance parking and improve the block, and Shelton submitted a proposal. He did not win that competition, and you know what he said about it? He told KELOLAND News that he was “pretty grateful” because losing gave him “a chance to reimagine the block.” That is the kind of perspective you want from a developer—the ability to step back, learn from experience, and come back with something better.
Since then, Shelton has been quietly assembling what he calls a “world-class team” and thinking deeply about what downtown Sioux Falls actually needs. He has not been rushing to announce flashy renderings or make promises he cannot keep. Instead, he has been doing the hard work of planning, securing approvals, and waiting for the right moment. That moment is now.
When I listen to Shelton talk about this project, what strikes me is his genuine enthusiasm for what this could mean for the city. He is not just talking about building a tower and making money, though obviously that is part of it. He is talking about “leveling up” Sioux Falls so the city can attract people who “are not yet here” but who would be a “natural fit” for what downtown could become. He wants to create density, a sense of place, and enjoyment—all those things that make downtowns vibrant places to live rather than just places to work.
The other thing that gives me confidence here is that Shelton has already secured initial clearance from the Federal Aviation Administration to build up to 220 feet. Getting FAA clearance is not a simple process, especially in a city where the airport is relatively close to downtown. The fact that he has this approval in hand tells me the project is further along than many realize.
The Plans: What We Know So Far
Let us get into the specifics of what is actually being planned, because this is where things get exciting. While Shelton has been appropriately cautious about releasing detailed renderings or making firm commitments before the deal is fully finalized, we know enough to understand that this will be a game-changer for downtown.
First, the height: we are talking about an 18- to 20-story tower. To put that in perspective, the current Wells Fargo building is maybe 5 or 6 stories. This new structure would be three to four times taller and would instantly become one of the tallest buildings in Sioux Falls. It would change the skyline in a way we have not seen since the Zip Feed Tower was built decades ago, except this time the building will actually be fully occupied and contributing to the city.
The mix of uses is what really makes this project interesting. We are not just getting another office building or another apartment complex. Shelton has talked about bringing together offices, residential units, a hotel tower, and ground-floor retail, including a grocery store. That combination matters because it creates activity throughout the day. Office workers during the day, residents coming home in the evening, hotel guests on weekends, and people shopping for groceries throughout the week. That is how you create real urban vibrancy instead of a dead zone after 5 p.m.
The grocery store component deserves special mention because downtown Sioux Falls has been crying out for this for years. If you live downtown right now, you know the struggle. You either have to drive out to the suburbs for a real grocery store or make do with convenience stores and limited options. Having a full-service grocery store as part of this development would be a massive quality-of-life improvement for downtown residents. It would probably convince more people to consider downtown living.
Then there is the parking situation. The current parking ramp next to the Wells Fargo building is likely the first thing to go, possibly as early as next year. That might sound alarming if you are worried about parking downtown, but the plan includes replacement parking as part of the overall development. The idea is to integrate parking more efficiently into the new structure rather than having this massive, underutilized ramp taking up prime real estate.
Shelton has also mentioned creating plaza space as part of the redevelopment. Downtown Sioux Falls actually has some great public spaces—Falls Park is obviously the crown jewel—but we could use more gathering spots right in the heart of the commercial district. A well-designed plaza with seating, maybe some outdoor dining, public art, and greenery could become a real destination and could connect this development to the rest of Phillips Avenue in a meaningful way.
The Context: Horizon 2035 and Downtown Planning
One of the reasons I am optimistic about this project is that it aligns perfectly with the city’s identified priority. In the Horizon 2035 Downtown Sioux Falls Plan, the city’s official long-term vision for downtown development, the Wells Fargo Block is specifically identified as one of the largest opportunities in the entire downtown area.
The plan describes the Wells Fargo Block as a “2.6-acre site with residential, office, or mixed-use potential” that is “not currently on the market, as the bank and offices are operational, but the building is outdated, and the site as a whole is underutilized.” It goes on to say that “this entire block is one of the largest and underutilized properties in the heart of downtown” and that revitalization could take the form of “rehabilitation, adaptive reuse, or full demolition and redevelopment of the site.”
That is exactly what Shelton is proposing: full redevelopment to unlock the site’s true potential. The city has done extensive market analysis showing that downtown Sioux Falls needs more housing—specifically market-rate housing that appeals to young professionals and empty nesters. The analysis projects annual demand for 24,000 to 35,000 square feet of office space and 15,000 to 22,000 square feet of retail and dining space. This one project could help satisfy a significant chunk of that demand.
The plan also talks about creating a “second wave of development” in downtown. The first wave was the initial revitalization of Phillips Avenue, the creation of the Arc of Dreams, the development of Cherapa Place, and the ongoing work at the Steel District. Those projects have been successful, but they have also raised the bar. To keep momentum going, downtown needs bigger, more ambitious projects that can attract new investment and new residents. The Wells Fargo redevelopment is exactly that kind of project.
I also think it is worth noting that the city’s plan specifically mentions the need for grocery retail downtown, improved parking, and more mixed-use development that creates “village-like environments.” Shelton’s project hits every single one of those priorities. This is not a developer trying to force something on the city that does not fit. This is a developer proposing exactly what the city has said it wants and needs.
The Impact: What This Means for Sioux Falls
So let us step back and consider what this project could mean for Sioux Falls if it is built as planned. I have lived in this city long enough to remember when downtown was basically empty after dark, when the only reason to go downtown was if you worked at a bank or needed to visit City Hall. When Falls Park was nice but disconnected from the rest of downtown, and when there was no reason to walk from one end of Phillips Avenue to the other.
We have come so far from that reality, but we still have a way to go. Downtown Sioux Falls today is pleasant, safe, and has some good restaurants and shops, but it still lacks the density and energy of a truly vibrant urban core. It still feels more like a nice small downtown than a real city center. The Wells Fargo redevelopment could be the project that pushes us over the threshold into being a place that competes with Omaha, Des Moines, or Minneapolis for young talent and corporate investment.
Think about what an 18-story mixed-use tower says about Sioux Falls. It says we are confident enough to build big. It says we believe people want to live downtown, not just visit. It says we are serious about creating the kind of urban amenities that attract companies looking to relocate or expand. In a competitive landscape where cities are fighting for jobs and residents, having a signature downtown development like this is a powerful statement.
From a practical standpoint, this project addresses real needs. We need more housing downtown, especially housing that is attractive to people who can afford market rates and want an urban lifestyle. We need a grocery store. We need to use our parking resources more effectively. We need more hotel rooms to support conventions and tourism. We need reasons for people to stay downtown after the workday ends. This one development meets all those needs.
I also think about the psychological impact. When you build the tallest structure in your downtown in decades, it changes how people see the city. It creates a new landmark, a new point of pride, a new reason to bring visitors downtown and show off what Sioux Falls has become. The Arc of Dreams gave us a signature sculpture. This tower could give us a signature building.
Challenges and Considerations
I would not be giving you the full picture if I pretended this project was guaranteed or without challenges. There are real hurdles that Shelton and his team will need to clear, and it is worth being honest about those.
First, the FAA clearance he has received is preliminary. That is not the same as final approval, and there could be conditions or limitations that affect the final design. Building tall near an airport is always complicated, and the process needs to be carefully monitored.
Second, Shelton himself has said that any future development will need to involve the city of Sioux Falls, and he described it as a “heavy lift.” That suggests there will be zoning changes, infrastructure improvements, or financial arrangements to negotiate. The city and the developer will need to be partners in this, and that takes time and compromise.
Third, we are looking at a challenging economic environment for real estate development. Interest rates have been high, construction costs have been volatile, and the office space market has been uncertain since the pandemic changed how people work. Shelton will need to secure financing, find anchor tenants, and pre-sell or pre-lease residential units before lenders will fully commit. That is a heavy lift in any market, and it might take longer than optimistic projections suggest.
Finally, there is the question of timing. The parking ramp might come down next year, but the full tower could be several years away from completion. Big projects like this often face delays, and residents should be prepared for a construction zone in the heart of downtown for an extended period.
None of these challenges is insurmountable, but they are real. The difference between a project that gets announced and a project that gets built often comes down to how developers and cities navigate these obstacles. Based on what I have seen from Shelton so far—his patience, his planning, his willingness to wait for the right moment—I am cautiously optimistic that he has the temperament to see this through.
Conclusion
The Wells Fargo building at 101 North Phillips Avenue has been a fixture of downtown Sioux Falls for over half a century, and watching it come down will feel like the end of an era for many of us. But cities are not museums. They are living, evolving organisms, and sometimes you have to let go of the old to make room for the new.
What David Shelton is proposing to build in its place—a mixed-use tower rising 18 to 20 stories with housing, offices, hotel rooms, retail, and public space—represents the future that downtown Sioux Falls has been working toward for decades. It is ambitious, it is necessary, and if it gets built, it will change how we think about our city.
The closure of the Wells Fargo branch on May 7, 2025, is not a loss for downtown. It is the first domino falling in a chain reaction that could transform the heart of our city. I, for one, will be watching closely, attending any public meetings where this is discussed, and getting ready to celebrate when the groundbreaking finally happens because this is not just about one building. It is about what kind of city Sioux Falls wants to become.
Frequently Asked Questions
When is the Wells Fargo downtown branch actually closing? The Wells Fargo branch at 101 North Phillips Avenue will close permanently on May 7, 2025. The bank’s lease on the entire property expires at the end of 2025, which is when full redevelopment can begin.
Who is developing the Wells Fargo building site? Local real estate broker David Shelton of Century 21 Advantage is leading the redevelopment effort. He has been working on plans for this property since at least 2015 and has assembled a team of architects, engineers, and consultants to advance the project.
How tall will the new building be? The developer has received preliminary clearance from the Federal Aviation Administration to build up to 220 feet, which would allow for an 18-to-20-story tower. This would make it one of the tallest buildings in Sioux Falls and significantly alter the downtown skyline.
What will be included in the redevelopment? Plans call for a mixed-use development including residential apartments, modern office space, a hotel tower, ground-floor retail, a grocery store, replacement parking, and public plaza space. The exact mix and design are still being finalized.
Why is Wells Fargo leaving downtown? Wells Fargo is consolidating its real estate portfolio as part of a corporate efficiency strategy. The bank is moving some operations to a renovated office building at 69th Street and Western Avenue, while closing the downtown branch. This is not a reflection on downtown Sioux Falls specifically, but rather a national real estate optimization effort.
When will construction actually start? The parking ramp adjacent to the current building may be removed as early as 2026, but full construction of the tower will likely begin after the Wells Fargo lease expires at the end of 2025. A specific groundbreaking date has not been announced and will depend on final approvals and financing.
How does this fit into the city’s downtown plan? The Wells Fargo Block is specifically identified in the city’s Horizon 2035 Downtown Plan as one of the most significant redevelopment opportunities in downtown. The 2.6-acre site is described as underutilized and ripe for mixed-use development that could catalyze further growth.