The BlockFive Story: Pioneering Urban Development in Rapid City

The Mission:

The mission of the Block Five project centers on revitalizing downtown Rapid City, transforming it into a vibrant, mixed-use area that stimulates economic growth. Aimed at introducing a high-end hotel and convention center, the project seeks to create a dynamic "live, work, play" environment, attracting a diverse demographic of young professionals, tourists, and local residents. This development is designed to meet the city’s growing needs, drive local business success, and establish Rapid City as a destination for both commerce and community.

The Outcome:

Luke Neely significantly impacted the Block Five Rapid City project as its development team director. He not only participated in pre-construction design meetings but also led the creation of a key financial model for city negotiations. His advocacy and problem-solving strategies during the design phase were crucial, as was his leadership in the capital campaign, successfully securing investors and lenders. Neely skillfully managed tax increment financing, contributing to the project's financial success. His negotiation of the public/private partnership over 3.5 years and extensive political advocacy on behalf of the Lloyd Company were instrumental in realizing this innovative and first-of-its-kind project in Rapid City.

The Impact:

The ROI of the Block Five project is projected to be substantial, considering both its direct financial returns and broader economic impact. By introducing key amenities and revitalizing the area, it's expected to significantly boost local business revenues and property values. The project is poised to not only recoup its investment but also catalyze lasting economic growth and enhance the overall appeal of downtown Rapid City.

The Challenge:

The Block Five project faced significant challenges, including navigating political pressures and addressing environmental concerns at the development site. Additionally, the COVID-19 pandemic introduced major delays, further complicating the project’s timeline and execution.

The Visionary Ambition

In the heart of Rapid City, at the strategic corner of St Joseph Street and 5th Street, a pivotal development unfolded. Integral to this ambitious vision was Luke Neely, who served as a director on the development team. His strategic insight and leadership were key in steering this project towards its groundbreaking potential.

The Hurdles Along the Way

Initially, the project faced formidable challenges. Amidst political pressure and a lack of administrative support, Luke Neely's advocacy proved crucial. He actively participated in the design phase, creatively coming up with innovative problem-solving strategies that significantly shaped the project’s direction. As a result, his ability to navigate and mitigate these early challenges set the stage for the project's eventual success.

The project contended with fierce competition and environmental challenges at the site. Plus, the onset of the COVID-19 pandemic compounded these difficulties, causing a significant delay in the project. Despite these hurdles, the team, bolstered by Neely's contributions, remained steadfast in their commitment.

The Turning Point

At this critical juncture, a decisive factor emerged. The development team, under Luke Neely's leadership, was the only group proposing a hotel capable of competing with the local monopoly. This vision included the introduction of the Hyatt Place hotel and a substantial convention center; elements crucial in distinguishing the project from competitors and ensuring its viability. Neely's role in this strategic decision was pivotal, emphasizing his significant efforts on the project.

Additionally, Neely's leadership in the capital campaign was instrumental. He successfully secured the necessary investors and lenders, providing a solid financial foundation for this ambitious project. His expertise in financial strategy and commitment to the project’s vision were evident throughout this phase.

The Fruits of Perseverance

Luke Neely's continuous advocacy in the political arena played a substantial role in aligning the interests of the Lloyd Company with the city’s development goals. His efforts were key in navigating the intricate dynamics of public-private partnerships and in garnering essential support for the project.

A New Dawn for Rapid City

As the project nears completion in Q4 of 2025, the significance of Luke Neely's past contributions becomes increasingly apparent. The development is set to be a transformative force in downtown Rapid City, with his past leadership and advocacy being integral to its realization.