Sioux Falls Prepares for $65 Million in Street Construction Projects in 2026
The City of Sioux Falls is gearing up for another busy construction season, with $65 million budgeted for street, highway, and accessibility projects across the community. These projects aim to enhance street conditions, improve traffic flow, and upgrade infrastructure for all residents.
Overview of the 2026 Construction Program
Each year, Sioux Falls undertakes a mix of preservation, rehabilitation, expansion, and full reconstruction efforts to support its growing transportation network. Beyond pavement improvements, projects often include utility upgrades, updated traffic signals, and accessibility enhancements for pedestrians, bicyclists, and individuals with disabilities.
“Ensuring our transportation network remains in fine condition is a key focus for our team and several planned projects this year will provide meaningful upgrades throughout the community,” said Brad Ludens, principal engineer. Drivers are encouraged to reduce speed in work zones, consider alternate routes, and allow extra travel time.
Projects are funded through the city’s Capital Improvement Program (CIP). Prioritization is based on utility conditions, resident feedback, and a citywide pavement survey conducted every four years. Residents can find individual project details at SiouxFalls.gov/Construction and subscribe to monthly newsletters for updates. The city also shares construction information on YouTube, Instagram, Facebook, and X.
Key 2026 Street Construction Projects
Arrowhead and Veterans Parkways Intersection
Work on the reconstruction and widening of the Arrowhead and Veterans Parkways intersection, which began in 2025, will continue into 2026. The project includes underground utility improvements, a stormwater detention pond, pedestrian underpasses, retaining walls, and updated traffic signals.
Traffic shifts will occur throughout the project. Arrowhead Parkway will experience closures east and west of Veterans Parkway at different times. Veterans Parkway will remain open to one lane of traffic in each direction. Drivers are advised to apply Madison Street or 41st Street as alternate routes. Work is expected to continue until November 2026, with minor site restoration in spring 2027.
Veterans Parkway from Maple to 57th Streets
This project focuses on concrete pavement restoration, new pavement markings, and updated traffic signals along Veterans Parkway between Maple and 57th Streets. Work includes concrete joint and panel repairs, curb and gutter repairs, and a soy-based penetrating sealer. Updated lane striping will add a travel lane and dual left-turn lanes at select intersections.
Temporary lane closures are expected. The project is anticipated to be completed in October 2026.
Russell Street Concrete Pavement Restoration
Russell Street, from North Louise Avenue to Minnesota Avenue, will undergo concrete pavement restoration, including full-depth and partial-depth repairs, curb and gutter repairs, and joint re-sealing. At least one lane of traffic will remain open in both directions. All lanes will be open during the air show on July 18-19. Work is expected to conclude in October 2026.
Marion Road from 259th Street to Memory Lane
This project will reconstruct a portion of North Marion Road, transforming it from a gravel road to an urban concrete pavement section with an overpass at the BNSF railroad crossing. Improvements include storm drainage, water main utilities, retaining walls, and a four-barrel box-culvert drainage structure. Marion Road will be closed to traffic for the duration of the project, with work anticipated from late March/early April through November 2026, resuming in 2027 for substantial completion in late 2027.
Bridge Preservation Project on W. 12th Street
The 12th Street bridge near Grange Avenue will receive preservation work, including concrete repairs, a polymer chip seal, joint replacements, and barrier curb repairs. At least one lane of traffic will remain open in both directions. Work is expected to be completed by late October 2026.
Louise Avenue from 49th to 53rd Streets
This project will improve ADA accessibility along Louise Avenue between 49th and 53rd Streets, including accessible sidewalks, driveway restorations, and concrete curb and gutter repairs. Intermittent lane closures are expected, with completion anticipated by the end of November 2026.
City and South Dakota Department of Transportation (SDDOT) Projects
Interstate 229 and Cliff Avenue Interchange
The full reconstruction of the Cliff Avenue and I-229 interchange, which began in 2025, will continue in 2026. Cliff Avenue will be reconstructed between 38th Street and the Spencer Park entrance, and the 41st Street intersection will be realigned. Work includes utility improvements, pedestrian underpasses, and updated traffic signals. Southbound lanes of I-229 and the southbound off-ramp are already complete.
This spring, traffic will shift to the southbound lanes as work begins on removing the northbound I-229 bridge. Cliff Avenue will be restricted to one lane in each direction. The project is expected to continue through November 2026, with work resuming in 2027 for completion in summer 2027.
South Veterans Parkway from Cliff to Sycamore Avenues
Construction on South Veterans Parkway between Cliff and Sycamore Avenues includes underground utility installation, grading, concrete and asphalt surfacing, and updated traffic signals. The parkway will feature three lanes in each direction, a raised median, and a shared-use path. Work began in April 2025 and is expected to be completed by the end of 2026, with the final segment to 57th Street slated for completion in 2029.
Interstate 29 and 85th Street Interchange
The City of Sioux Falls, in collaboration with the City of Tea, Lincoln County, and the SDDOT, is constructing a diverging diamond interchange at 85th Street and I-29. Work includes grading, bridge abutments, and utility installation. 85th Street is closed to traffic between Tallgrass and Sundowner Avenues, with access maintained for local residents. Completion is anticipated by 2027.
Interstate 29 and 49th Street Bridge
The 49th Street bridge over I-29 is undergoing a low-slump, dense-concrete bridge deck overlay. The bridge is closed to traffic during construction, and completion is expected by late October 2026.
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