Winning bidder details plans for 3 of city’s 4 new on-sale liquor licenses

Sept. 18, 2025

Three of the city’s four available new on-sale liquor licenses went to the same bidder — who has plans for new restaurants across Sioux Falls.

Entrepreneur Kevin Tupy and business partners Erica Mullaly and Michelle Gilberts submitted the top three winning bids for the licenses and plan to put them to use at locations on the east side, west side and downtown Sioux Falls. The city received a total of six sealed bids for the licenses.

“I’m ecstatic that we got these liquor licenses because our goal is to expand LKN — liquor, kitchen, nightlife — which includes Lucky’s restaurants,” Tupy said. “I believe these unique concepts bode well in their locations and complement our team’s strengths and abilities.”

The top bid of $406,000 is at 5701 E. 41st St. for a future sports bar not far from Harmodon Park and the Diamond Commons Apartments and Townhomes where Tupy also is an owner. The working name for the restaurant is Tilted Trophy, he said.

“It’s a sports bar with a great selection of food — family-friendly and pet-friendly,” he said. “The restaurants from Dawley (Farm Village) on south do a great job, and we just wanted to provide something more sports-oriented with our signature style, providing great food and beverages and an accessible price.”

While the plan is still being finalized, the concept calls for a 5,000-to-6,000-square-foot restaurant that would open next summer.

“We’ll have one of the biggest patios in the city adjacent to the ballfields,” Tupy said.

The next bid, $396,000, is at 220 S. Phillips Ave., a historic building Tupy owns downtown in a space that used to be a boutique. The ownership group is planning to open Velvet Thunder, which Tupy describes as “bringing something to downtown they don’t currently have. We want it to be something completely opposite from Lucky’s and PAve and just provide more of a chill vibe.”

While he’s still honing the concept, it’s designed to be beverage-heavy with everything from energy drinks to espresso martinis, craft cocktails, “a nice selection of wine … and a bunch of mocktails and caffeinated drinks.”

He’s working through city permitting and once approved expects it will take six to eight months to renovate and open.

The third bid, $386,000, is at 5219 W. 26th St. for another location of Tilted Trophy in a retail center at 26th Street and Marion Road that Tupy owns. It’s in a space that previously was a vape shop.

“I felt that location beckoned for something higher and better,” he said. ” We’ll have over 50 TVs like we do at Lucky’s and a great sound system, darts and other recreational activities throughout.”

The restaurant will be about 4,200 square feet and include a patio. The hope is to open in six to nine months.

In determining what to bid for the licenses, Tupy said the group looked at recent successful bids.

“The last one we bought was for $385,000, so we understand the market floats between that and something with a ‘4’ in it, so we hedged our bids based on historical activity that we’ve bid and we’ve seen,” Tupy said.

“We bid what we felt was market … and I certainly feel that although everybody says Sioux Falls is very saturated with restaurants and bars, I feel the concepts and areas are unique and geographically will resonate with the neighborhoods.”

The fourth available on-sale license went to Commonwealth Gaming & Holdings for $379,900. The group is planning to use it at 5409 W. 41st St., which is the Clock Tower retail center at 41st Street and Marion Road. No details on the concept are available yet.

Bidders have two years to put their licenses into operation.

The city received 13 sealed bids for six available off-sale liquor licenses. The winning bidders were:

• Kwik Trip Inc.: $81,000 for a Kwik Star at 6301 E. 41st St.
• Kwik Trip Inc.: $76,000 for a Kwik Star at 901 N. Ebenezer Ave.
• Circle K: $75,000 each for 5400 N. Cliff Ave., 5212 W. 12th St. and 1918 W. 41st St.

Last year’s two on-sale winners were Second Session LLC, which bid $450,001 for a license that now supports Hook & Ladder Kitchen & Bar on the northeast corner of 12th Street and Ellis Road, and Magic Number LLC with a bid of $382,081. That’s a partnership between Brandon De Jong and Patrick Nelson, who also own The Hello Hi on Phillips Avenue. They still plan to use it to open another bar in central Sioux Falls next year, De Jong said.

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