Crime ridden 'Mercato Block' sold in $3M deal, owner vows to clean up property

Mayor Paul TenHaken says move signals hope for progress in central Sioux Falls neighborhood

Days are numbered for the central Sioux Falls slum known as the Mercato block.

The 600 block of West 11th Street that’s been plagued with crime for decades has new ownership that’s vowing to clean up the Pettigrew Heights neighborhood.

Kelly Family Properties earlier this fall acquired three separate parcels on the south side of 11th Street between Duluth and Summit Avenues where a liquor store, restaurant, a barber shop and apartments are located.

What’s next for the property? KFP’s Rory Kelly told The Dakota Scout Wednesday that no decisions have been made about the future of the Mercato block but “obviously we’re not going to have that.”

“It won’t be a bar and it won’t be a casino, I guarantee that,” he said.

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Movers load trucks amid the closures of the Lucky Lady Casino and the Lucky Lady II on May 10. (Jonathan Ellis / The Dakota Scout)

The deal — worth more than $3 million — comes as the former owner faced increasing pressure from City Hall to address habitual police calls in the neighborhood.