Revitalizing Retail in Rapid City

by Michelle Pawelski

In its heyday, Rapid City’s Kmart, located at the busy intersection of Campbell and East North streets, attracted thousands of locals and visitors with its affordable products and aisles of offerings. Opened in the mid 1960s, Kmart was one of many big-box stores popping up all over the country. Not long after Kmart was built, two more expansions were added to the west making the total plaza nearly 200,000 square feet. The strip mall included the Northgate Theatre, which opened in 1973, as well as a restaurant and arcade. “It was really a big thing at the time,” said Kyle Treloar, vice president of Dream Design International, the company renovating Dakota Market Square, the plaza’s new name. “Big-box stores were up and coming and the Kmart development was right at the forefront of revitalizing retail at the time.” Several other retail areas in the city also flourished during the 1960s and 1970s, but changes in consumer behaviors and an increase in online shopping left many of these large discount stores and strip malls vacant.

Kyle Treloar

Andy Greenman

But now local developers are transforming several of these retail centers throughout the city into new, modern community-centered spaces by replacing large asphalt parking lots with landscaping and walking paths, featuring coffee shops, new eateries, and quaint boutiques. “We want it to feel like a place where people want to go; where people want to sit out and eat and stay for a while,” Treloar said about the future of Dakota Market Square “We are bringing this whole area back to life.” Dream Design purchased the property in 2018 prior to Sears Holdings closing the Kmart in March 2019. Renovations began last spring focusing on the western portion of the property including a total remodel of the former Northgate Theatre. The finished space, previously leased by Decory’s Entertainment Center, has a modern feel while keeping the character of the building, Treloar said adding that with a full kitchen it is ideal for a restaurant. The new façade of the building, featuring rock columns and large flower planters, will be complete by the end of the year. Dream Design will remodel the inside to meet each users’ needs, Treloar said.

Dakota Market Square

Andy Greenman

The majority of the 185,000-square-foot property is leased with new tenants including the South Dakota Archaeological Society, Monument Health dialysis clinic, and the Salon Professional Academy, an academy of cosmetology. The salon will be moving from its current downtown location. “We are beyond excited to be a part of the revitalization of the area,” said Wendy Beaumont, owner and director of operations for the Salon Professional Academy. “This has been a dream in the making for a long time. We are excited to bring to Rapid City something they have not seen or experienced before.” The salon, which plans to open in, will have classrooms but also an area where students will be able to perform various services on guests. They will offer full hair, nail, and skin care along with massage therapy services. “I really wanted my business to be a part of the community and to be able to give back as well.”

Aside from the complete remodel of the former Kmart building, Dream Design is also building a new 10,000-square-foot strip mall at the northern end of the parking lot, the location of the former Hardee’s and most recently a Mexican restaurant. Possible tenants include a coffee shop, fast food eatery and a tax agency. Treloar said it has been fun reinventing one of the city’s iconic shopping areas. “There were certain things we targeted that we thought would bring this area back to life. You are never going to find that 180,000-square-foot Kmart – that kind of commercial retailer is gone. You have to think of what you can bring to draw people back here.”

Koyote Koffee

Andy Greenman

Across town, two more of the city’s historic shopping centers are also taking on new life. April and Kelsey Wenzel are excited to bring some new offerings to West side residents with the transformation of the former Family Thrift Express on Sturgis Road. The motherdaughter team purchased the property, which included the two buildings on either side, in April 2020 with a goal of opening a coffee shop, a longtime dream of Kelsey’s. “I worked at (a coffee shop) as my first job and it just stuck with me that I loved it,” said the 24-year-old who also spent many afternoons studying at Dunn Bros. The Wenzels moved from Wyoming to Rapid City in 2006 seeking a better opportunity for their three daughters. “We wanted a change and better weather,” April said of the move. The Koyote Koffee name comes from the family’s roots in both Wyoming and South Dakota.

April and Kelsey decided on the Sturgis Road property after it sat vacant for a few years. The 6,400-square-foot building opened in 1957 as a Sooper Dooper grocery store. In 2005, it became a Family Thrift, now Family Fare, store transitioning into a FTC Express before closing in 2017. “We saw the property wasn’t selling for a while, and since I’ve always wanted to do a coffee shop, we saw this as an opportunity and decided to go for it.”

They originally envisioned using the building to the south for the coffee shop, however, the space could not accommodate a drive through. “We knew there was an interest in the other buildings, so we sold those off right away,” April said. The building to the north is now the Iron Phnx, a beer and wine bar with a steam punk theme. Demolition on the strip mall began in September, and April and Kelsey hope to open Koyote Koffee in the beginning of July. “We are finally to the point where we see our walls and where our register will go… now it feels real,” April said. While the strip mall has a new modern feel with its sleek white and grey façade accented with ocean blue, Kelsey and April wanted to keep some of the nostalgia of the area by naming it the Sooper Dooper Plaza. They also kept the old lights off the building and may utilize them in some fashion in the future. “We were going to try to use them on our patio, but they are too big and replacement parts would cost more than new lights.”

Koyote Koffee will have a western, homey feel, and April and Kelsey hope it turns into a gathering spot for locals. “We want those old gentlemen that love to sit and drink a pot of coffee,” April said. The mother and daughter partners also want to get involved with the community hoping to host fundraisers for organizations such as the nearby dance studio or the humane society. They are finishing some details before their July opening including getting staff hired and trained and finalizing their coffee menu. April and Kelsey are using Daily Adventure Coffee Co., a local roaster out of Hisega, for their coffee. “We like that she is local, and if we want to change one of our blends, we can run out there and she will work with us,” April said. They plan to have a small menu featuring a few breakfast and lunch sandwiches as well as grab-and-go items.

The retail center has three additional suites that are available for lease through Kelly Howie with Remax. April hopes to get an eatery in one unit which will add to the offerings available for the West side neighborhoods. Like Treloar, April and Kelsey hope the Sooper Dooper Plaza attracts people who want to sit on the patio and stay for a while.

Then: Baken Park

One of the city’s oldest and most recognizable shopping centers is also getting a complete facelift. Baken Park is undergoing a major renovation by owners M.G. Oil Company who purchased the property in the fall of 2019. Prior to its life as a retail hot spot, Baken Park looked more like an actual park than a shopping center with modern, tourist cottages lining the banks of Rapid Creek. The area also had a small lake with an island, according to Dave Kulish, general manager of M.G. Oil. The retail area, built in 1957, has been home to many retailers and professional offices over the years including Red Owl, Piggly Wiggly, TCBY Yogurt, and Three Sisters clothing store. Family Fare, Boyds Drug Mart, French’s Cleaners, and Buffalo Wild Wings are among tenants that have been at Baken Park for many years, and several new businesses are moving in such as Weathered Vane, Rare Finds and Luxe Haircare and Skincare. “We only have a few spaces left at this time,” Kulish said. While it has been through several transformations throughout the decades, including repairs made after damage from the 1972 flood, the current renovations will completely modernize the 200,000-squarefoot historic center. Design features include patios, landscaping, new parking lot and lighting, and a breeze way creating ease of parking on both sides of the plaza, Kulish said. Renovations on the plaza, which began early last year, are scheduled to be completed by the end of the summer. M.G. Oil will then finish The Park, a 30,000-square-foot bar, restaurant, casino, patio, and entertainment venue. The Park will play host to a variety of events from live music and comedians to weddings and business functions. “This venue is designed for optimum sound acoustics, video wall and many more features unlike anything in Rapid City,” Kulish said. The Park should be completed late 2021 or early 2022.

NOW: The Park

Andy Greenman

Like the founders of large discount stores and strip malls of the ‘60s and ‘70s, local developers know their new vision with unique offerings, green space, sidewalks, cafes, and community-focused businesses is creating a whole new era of the retail experience. “There really has been a shift in how we look at retail,” Treloar said. “It is the same thing that happened back in the 60s.”