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What’s Rising Near Mitchell’s Highway 37 and Commerce Street

If you drive north on the Highway 37 bypass this month, somewhere past Little Learners you will notice a new road cut where there wasn't one before. Fresh dirt piles. Curb forms. A sign with a number on it that most people scroll past. That number is Tax Increment District 44, and the road is the northward extension of Commerce Street. Until this spring, it stopped short. Now it is being built out 600 feet with underground utilities, and once the work is inspected it will be turned over to the city at no cost to Mitchell taxpayers.

That single stretch of asphalt is the thread. Pull on it and three separate projects come into view: a legendary supper club coming back after four years dark, a four-story apartment building starting to rise a couple of miles away on the lake, and a quieter shuffle of developers, families, and TID paperwork that ties them together. This is the story that is easy to miss if you are just glancing at the orange cones on your way to Menards.

The road nobody had a name on their tongue last summer

Commerce Street sitting where it does isn't a coincidence. The city annexed the property in May 2025, then approved TID No. 44 that fall, then approved the developer's agreement for the road itself in mid-June 2026. Public Works Director Joe Schroeder walked the council through the review process at that meeting: pressure tests on water lines, an airtight-and-straight check on sewer, compaction testing, curb testing, a one-year warranty on any settling from trenches. Same playbook the city used for the 15th Avenue extension through TID 31, the Fiala Road development on Woods Circle, and the Ridgeview on Foster and Southlake Estates streets.

The developer footing the road bill is Chuck Mauszycki Sr., 82, working under Commerce Marketing Group II LLC. He is also the reason Chef Louie's is coming back.

The Chef Louie's site, and why the address matters

The new Chef Louie's Steakhouse and Lounge broke ground on Wednesday, May 20, 2026, at 1600 N. Commerce Street, north of the Little Learners childcare center at the intersection of the Highway 37 bypass and West 15th Street. The building's front and parking lot face Highway 37; road entry is off Commerce.

A few numbers worth setting against each other:

  • 319 seats in the new dining room, lounge, banquet hall, board room, and casino area
  • 136 parking spaces, which is 19 more than city code requires
  • More than 27 trees planned around the site
  • $9.2 million total project cost, $2.9 million requested in TID financing over a 20-year maximum lifespan
  • $78,000 liquor license fee approved by Davison County Commissioners in November 2024

The old Chef Louie's stood at the southeast corner of South Burr Street and East Havens Avenue from 1946 until January 2022. A 1960 gas tank explosion took the first building; the 1961 rebuild ran until the Fredericksen family, who had owned it since 2001, sold the corner to Plains Commerce Bank and the structure was demolished in 2022. What is being rebuilt now is not that building. It is 319 seats and a casino instead of the old supper-club footprint, on the opposite side of town, on a road that had to be extended to reach it. Cary Fredericksen is on board with Mauszycki after what he described as eight months of phone calls; he signed the operating agreement at the groundbreaking. Chris Mauszycki and John Claggett stood with them.

The stated menu goal is to recreate the old room in a bigger new one: aged-in-house Black Angus prime rib, hand-cut steaks, seafood fondue, and the house sauces regulars remember. Mauszycki has said the target is late 2026 or early 2027, and that he wants the staff hired before the doors open.

What sits next to Chef Louie's on that road, and what doesn't yet

TID 44 covers 6.26 acres over three platted lots. Chef Louie's is one. The other two are set aside for a hotel and a fast-food restaurant that have not been announced. At the October 2025 planning commission meeting, chair Kevin Genzlinger asked what happens if those two never come. City Administrator Stephanie Ellwein and City Attorney Justin Johnson answered plainly: increment funds are pass-through from the city to the developer only after they are collected, so if the hotel and fast food never materialize, the developer simply doesn't receive that portion of the increment. No city bailout, no shortfall to cover. That is a detail worth knowing if you live nearby and want to know whether the whole corner will fill in or whether Chef Louie's ends up alone on a spur road for a while.

Mauszycki himself noted at the groundbreaking that the steakhouse will be built first. The other two lots are on their own timeline.

Two miles east, a different developer, same summer

Now leave Commerce Street, drive across town, and pull up on North Harmon Drive at Lake Mitchell. A four-story building is starting to come out of the ground on 3.35 acres of Justin Thiesse's 25-acre lakeshore project. This is Legacy Pointe: 38 apartment units, developed by HME Companies, greenlit by the planning commission on May 11, 2026 and approved by the city council on May 18. Ground broke in June, with a completion target of spring 2027.

The unit mix is one-, two-, and three-bedroom. What Thiesse pointed out at the public hearing is the piece Mitchell renters don't usually see: attached parking garages, which he called uncommon in Mitchell apartments. There is also a fitness center, a community lounge with an outdoor patio, a conference room, a coffee bar, interior mailboxes, and an indoor trash chute.

The South Dakota Department of Revenue Property Tax Division gave the project a preliminary classification of affordable housing under the state aid to education formula. If the state office does not confirm that classification, TID 46 dissolves. That is a hard contingency written into the deal, not a talking point.

Thiesse's stated reason for the location is practical. The Peaceful Pines Senior Living Center, developed by the same HME Companies, is already under construction next door and will employ roughly 40 people. An industrial park and the National Guard Armory sit close by. Legacy Shores, an event venue also from HME, is planned for the same lakeshore development. So the apartments are, in effect, a workforce housing bet placed on a corner of Lake Mitchell that HME is building three ways at once.

The through line: two developers, one summer, one filing habit

Look at how these projects are financed and you see the same instrument used twice with different partners:

District Project Developer Approved Target open
TID 44 Chef Louie's + 2 future pads on Commerce St Chuck Mauszycki Sr. / Commerce Marketing Group II Fall 2025 Late 2026 / early 2027
TID 46 Legacy Pointe apartments on N. Harmon Dr HME Companies / Legacy Pointe LLC May 2026 Spring 2027

Two districts, two summers apart, two neighborhoods, same tool. If you have watched Mitchell's north-side growth over the last few years, this pattern is not new. Public Works cited three prior road-and-utility handoffs from private developers to the city that used the same review process. What is new in 2026 is the density: both TIDs breaking ground in the same 30-day window.

What that means if you live in Mitchell right now

You will feel the northwest corner change first in traffic patterns.

  1. Commerce Street traffic north of West 15th will pick up in fits and starts through fall as underground utilities get pressure-tested and paving is scheduled. Expect the road to look finished before it is officially accepted by the city; final permitting on the surrounding lots is held back until the road passes inspection.
  2. Chef Louie's exterior work will be visible from the bypass through winter. The 27-plus trees are landscaping, not screening, so the elevation you see from Highway 37 in six months is close to the elevation you will see permanently.
  3. Legacy Pointe will be the tallest new residential building on the lake side of town when it tops out. Four stories on 3.35 acres reads differently on a lakeshore than it does on a downtown block.
  4. Peaceful Pines opening ahead of Legacy Pointe means the senior living staff will be looking for housing before the apartments are ready. That is a real short-term rental question for anyone with a spare unit near the north end.

Why any of this matters for a home in Mitchell

Restaurants and apartments are not comparable sales. They do not move a single-family median. What they do move is the answer to the question buyers actually ask when they tour a house on the north or northwest side: what is going in over there. For the last four years the honest answer on the Commerce Street corridor was "not much yet." For the last two years on the north end of Harmon Drive it was "senior living and event space." Those answers change this fall.

If you own a home within a mile of either site, the specific facts above are the ones your neighbors, your buyer, and your buyer's inspector are going to be Googling in the next twelve months. Knowing the road extension is 600 feet, that TID 44 covers three lots and not one, that Legacy Pointe is state-classified affordable and not market-rate, that Peaceful Pines is opening first — those are the details that separate a confident conversation from a shrug at the kitchen table.

Let's Connect

If you have been driving past the Commerce Street cut and wondering what it does to your home's value, or watching the Harmon Drive cranes and thinking about whether to sell before or after Legacy Pointe opens, that is exactly the kind of question worth talking through with someone who lives here. Reach out to Chris Foster and we can look at your block, your timeline, and the specific projects on your side of town. No pressure, just a plain conversation.

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Whether working with buyers or sellers, Chris provides outstanding professionalism in making his client’s real estate dreams a reality. Contact Chris today to discuss all your real estate needs!

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