RAPID CITY, S.D. (AP) — Rapid City officials unveiled a major downtown development plan Wednesday, announcing the donation of nearly 23 acres of land by Pete Lien & Sons for a proposed indoor sports complex aimed at bolstering athletic opportunities and economic growth in the Black Hills region.
Mayor Jason Salamun, joined by representatives from Pete Lien & Sons, Black Hills Energy and the Rapid City Sports Commission, disclosed the land gift at a press conference held at Seger Drive and 143rd Avenue. The site, totaling 22.78 acres, will host Phase 1 of “Project Catalyst,” an indoor facility designed to accommodate basketball, volleyball, soccer and sports performance training.
Salamun said he will ask the City Council to allocate $5 million from the city’s unused Vision Fund to initiate development of the sports complex . The complex is expected to sit on about 12 acres, featuring eight basketball courts convertible into 16 volleyball courts, an indoor turf field, training areas and approximately 5,000 square feet of leased medical or flex space.
Domico Rodriguez, executive director of the Rapid City Sports Commission, described the project as transformative for the region, noting it will help Rapid City compete more effectively in youth sports and sports tourism markets.
Initial cost estimates for Project Catalyst range between $50 million and $91 million, depending on facility phases and land development requirements.
City leaders are exploring several funding options beyond Vision Fund resources, including public-private partnerships, a proposed hotel occupancy tax, private donations and the creation of a five-mile Tax Increment Financing (TIF) corridor. The proposed “Catalyst District” would span from Interstate 90 near Exit 55 eastward toward downtown and include a new 99-megawatt Black Hills Energy natural gas power plant as a corridor anchor.
The power plant, with an estimated $280 million price tag, is expected to bolster infrastructure and revenues supporting multiple development projects in the district .
Rapid City’s population has grown by about 10,000 since 2020, creating increased demand for indoor sports venues. Local teams and families currently rely on private school gyms and community leases, sometimes resulting in limited availability.
Project champions are drawing inspiration from the success of Sioux Falls’ Sanford Sports Complex, which hosts more than 2.7 million visitors annually and has stimulated local tourism, hotel stays and retail growth.
The proposal for the Catalyst District’s TIF structure is scheduled for review by the Planning and Zoning Commission. If approved and the funding is secured, officials have said groundbreaking could begin in late 2026.
By anchoring Project Catalyst near the Interstate corridor, officials intend to enhance northeast Rapid City’s connectivity to the downtown core while nurturing economic vitality throughout the Black Hills region.
