Category: Directions Newsletter

By: Kent Cutler, 2025 Sioux Falls Development Foundation Board Chair

First and foremost, thank you to last year’s Chair of the Board Ryan Boschee. Ryan led the Foundation Board throughout 2024 and made sure we met and exceeded the goals and objectives we set for ourselves. Completing the grading of Foundation Park, completing road and infrastructure work, leveraging the TIF to maximize funding, and investing our available funds for maximum return. In addition, Ryan pushed hard for tangible results in our workforce initiatives leading to a record year for workforce development numbers and recruitment of new talent to the region. Our hats are off to Ryan for a job well done and for setting the stage for additional growth in Foundation Park and the region.

It’s an honor for me as the incoming Chair for 2025 to pick up where we left off in 2024. As we enter 2025, we’ve started strong.

• Over 300 acres under option – Projected sale of 120 acres
• Prospect activity up 15%
• Final option on land north of Memory Lane set to close in May
• Final grading for land north of Memory Lane ready for bid
• Owens & Minor/Avera set to open
• One 37-acre prospect set to close in April
• New company to begin construction on 14 acres
• CJ Foods to begin going vertical this summer – completion 2027
• Supercharging our INTERN Sioux Falls program
• Increasing the numbers of Talent Tours for onsite experiences for students
• Increasing our focus on local university alumni as talent prospects
• Completing our spring Career Connections program and planning for the fall class
• Organizing our summer STEM Camp program
• Retargeting our WORK Sioux Falls programs to be laser focused on our top job needs
• Developing the next version of the Forward Sioux Falls campaign and beginning the capital campaign

The Development Foundation is also working closely with the City to begin redevelopment of identified areas including the Riverline District, North Minnesota Avenue, and other potential redevelopment sites.

As we move into 2025 with some of the uncertainty from federal and state government, the Development Foundation is laser focused on making our community and its commercial and industrial base strong. A renewed emphasis on business retention and expansion efforts are designed to help our existing businesses grow and prosper by connecting them with resources and assistance. Growing what we have is top priority.

The Sioux Falls Development Foundation is proud of the work we’ve done in the past, and we are confident in what we can achieve in the future with your help. I am proud to work with the Foundation staff under the direction of the Board of Directors to continue building our community. Thank you to all of you for being here in Sioux Falls. We appreciate all you do, and wish you the best in 2025.

By: Bob Mundt, President and CEO

I recently attended the International Site Selectors Guild Conference in Orlando where site selectors from around the world gathered to discuss the latest factors influencing corporate relocations and expansions. The timing of the President’s tariff talks highlighted much of the discussion, but to my surprise, most of these professional site selectors, real estate brokers, and corporate relocation specialists were very upbeat and positive about 2025.

While tariffs are top of mind now, they have been a part of corporate culture for years and have always leveled with market dynamics. Many suggested these tariffs as political game playing and should be short lived. Most of the discussion centered around the import cost of raw materials used in much of our manufacturing and processing as opposed to our exports. Professionals indicated there are a few products that cannot be sourced somewhere other than the tariffed countries. General consensus…wait it out and see what sticks.

Kent Cutler’s column accurately spells out what we expect at the Development Foundation. Our pipeline for prospects is strong and we have land available for expansion. Companies are looking for alternative places to do business, targeting lower costs states over those on the coasts and in the South. The plains states are beginning to emerge as places with low-cost energy, available/affordable land, high quality of life, and lower operating and labor costs.

As our current Administration encourages reshoring/onshoring, these companies will be looking for options. Our marketing efforts through these professionals and our relationships with their companies are important in opening the door for South Dakota and the Sioux Falls region.

In addition, we will be working closely with our existing industries to make sure they have what they need to be profitable through our business retention and expansion programs. Our workforce initiatives will continue to recruit talent to the region through our high schools, universities, tech schools, alumni, and those families looking to return to their roots.

I look forward to working with our staff and our Board to continue our momentum as we launch into a new year and a new Forward Sioux Falls capital campaign. Sioux Falls has always been the example of excellence in business development and growth in South Dakota, and we will continue our efforts to support you and your business.

Thanks for supporting us.

Sioux Falls is once again embracing its future with Sioux Falls Tomorrow 4, a forward-thinking, community-driven plan designed to guide the city’s growth over the next decade. This fourth iteration builds on past successes while focusing on four key areas: Economic Development & Corporate Responsibility, Quality of Life, Social Services, and Regional Collaboration.

Unlike plans developed by individual organizations, Sioux Falls Tomorrow 4 takes a broader perspective, encouraging leaders to come together to shape a shared vision for the entire region. This approach creates a lasting impact that no single organization could achieve alone.

“The Sioux Falls Development Foundation values the opportunity to be part of this tradition,” Bob Mundt, President and CEO of the Sioux Falls Development Foundation, said. “Coordination and collaboration like this effort has been the hallmark of our community’s success for decades, and this iteration of Sioux Falls Tomorrow continues that legacy.”

The planning process, which began in 2023, involved extensive community input through surveys and stakeholder meetings. Led by a Steering Committee and facilitated by the National Civic League, the result is a roadmap that builds upon previous efforts while anticipating future challenges and opportunities.

As a key stakeholder in the plan, the Sioux Falls Development Foundation will use the plan to guide our work for the next 10 years. Below is a brief overview of the plan’s areas of focus, and the complete plan document can be found by clicking ‘Read the full plan’ below.

Economic Development & Corporate Responsibility

Sioux Falls has established a thriving business environment that is committed to recruiting and retaining major businesses that align with its values. Sioux Falls Tomorrow 4 encourages preserving the unique corporate culture our community is known for, urging businesses to invest in workforce and leadership development, engage in corporate philanthropy, and take an active role in shaping the community’s future to ensure a resilient and dynamic economic ecosystem.

Quality of Life

Recognizing the importance of livability, the plan outlines investments in public transportation, expanded indoor recreation facilities, and advancing the Falls Park Master Plan. Extending recreation trails throughout the region further promotes a vibrant, active, and healthy community.

Social Services

Affordable housing and essential social services remain top priorities. Sioux Falls aims to become a national leader in addressing affordable housing by identifying opportunities and launching innovative programs. The plan also seeks to improve coordination and a continuum of care among mental health and substance abuse service providers.

Regional Collaboration

A regional mindset will be crucial for fostering collaborative growth and mutual benefit. For years, the Sioux Falls Development Foundation has worked to align with our neighboring communities for our region’s benefit. We’re excited to see this included in Sioux Falls Tomorrow 4 and to have more partners included in this important work.

“As Sioux Falls looks to the future, regional cooperation will be crucial in maintaining our status as one of the best places to live, work, and raise a family,” said Tyler Tordsen, President & CEO of the Sioux Metro Growth Alliance.

The Sioux Falls of Tomorrow

Sioux Falls Tomorrow 4 serves as both a roadmap and a call to action. “Just as it was written collaboratively, its success depends on all of us,” said Brittany Hanson, Program Director for Forward Sioux Falls. “By working together across businesses, government, and community organizations, we will build the Sioux Falls we want for tomorrow.”

By: Ryan Boschee, Sioux Falls Development Foundation Board Chair

As I end my year as Chair of the Development Foundation Board, I want to thank my fellow Board members and the staff of the Development Foundation for their work over this past year. 2024 marked the 70^th Anniversary of the Sioux Falls Development Foundation. We were “Shining the Light” on recent successes at our Annual Meeting in November, including:

• 156 acres sold in Foundation Park
• 92 meetings with existing industry resulting in 35 action items
• Saw CJ Foods begin construction on their 750,000-square-foot facility
• Saw Avera/Owens & Minor begin construction on their 350,000-square-foot building
• Saw Presidio Manufacturing begin construction of their 200,000-square-foot facility
• Optioned almost 300 acres of property for 2025
• Helped create over $800M in new capital investments and over 1,000 jobs
• Completed all infrastructure buildouts in Foundation Park North to create site-ready property for future development
• Moved the Riverline development project forward to include City control of the site
• Began moving houses on North Minnesota Avenue to make room for new developments north of the Good Samaritan complex
• Connected over 21,000 potential workers to 259 unique employers in the region
• Hosted over 300 interns in Sioux Falls in 2024
• Hosted over 800 high school students in Career Connections programming
• Completed construction and opened the Health Sciences Clinical Simulation Center
• Implemented several marketing programs promoting Sioux Falls to site selectors, corporate brokers, and targeted industries
• Implemented the “Wish You Were Here” campaign to bring former students, family, and friends back to Sioux Falls

I want to thank our retiring Board members, Dr. Brett Bradfield, Steve Watson, and Steve Kolbeck, for the years of service to the Foundation. Their skills and talents will be missed. I also want to welcome three new Board members, Chris Daugaard, Jason Kjenstad, and Marla Meyer to the Board.

2025 will be another busy year for the Foundation and our partners with the beginning of the next Forward Sioux Falls campaign, several options coming due, and our continued work in talent and workforce development. I look forward to working with our incoming Chair, Kent Cutler, to transition responsibilities and continue moving this organization forward. Thank you for a great year and a memorable experience leading this organization.

By: Bob Mundt, President and CEO

Recently, the Development Foundation Board of Directors laid the groundwork for 2025 with some key directives. We will begin working on these as we move through 2025.

Developing future land inventory

• Work with City to align possible locations based on existing and planned infrastructure development timelines
• Develop financial feasibility and modeling similar to Foundation Park
• Develop a timeline for acquisition over the next three years

Explore regionalism as it relates to economic development

• Work with SMGA to identify potential partnership opportunities for land development in surrounding communities
• Work with SMGA to market the region more holistically

Talent & workforce development

• Implement workforce development initiatives on a more regional basis
• Continue focus on retention and attraction of talent
• Innovate programs with universities and tech schools to ensure more graduates stay here
• Continue to grow internship programs through higher education programs and business collaboration

Build a community land bank directed at workforce housing initiatives

• Develop a sustainable funding mechanism
• Develop a sustainable program to perpetuate annual housing growth in this space

Leverage Falls Area Development Corporation for redevelopment of targeted areas

• Riverline
• Identify additional redevelopment sites
• Develop an on-going funding source for acquisition

Develop and refine a true progress dashboard

• Define critical measures
• Assemble data
• Create a dashboard we can use for Board and Investor reports

The Sioux Falls Development Foundation made significant strides in 2024, focusing on what truly matters to employees: work-life balance, career growth, and community support. The Foundation’s efforts centered on attracting talent for key industries like construction, financial services, healthcare, law enforcement, manufacturing, and retail while also developing the next generation of skilled workers among middle and high school students.

2024 Highlights: Connecting People and Opportunities

In 2024, the Foundation connected 20,882 people to Forward Sioux Falls partners through its comprehensive workforce initiatives, creating tangible, long-term value for talent pipelines and businesses:

• Connecting nearly 3,000 college and high school senior students with employers through Talent Tours and Talent Draft Days aimed at building relationships with potential employers early in their careers.
• Building the career and educational readiness for over 1,600 high school and middle school students through hands-on experience through job shadows and internships via Career Connections and Your Future STEM in partnership with 16 regional school districts, colleges and universities.
• Engaging and immersing 378 college students into the Sioux Falls community through INTERN Sioux Falls, helping build a skilled workforce.

These initiatives not only enhance talent pipelines but also solidify our role as a leader in workforce development. This leadership ensures strong returns for investors and sustainable growth for our community, instilling confidence in our stakeholders.

Looking Ahead to 2025: Building on Success

In 2025, the Development Foundation is poised to build on its success and expand its impact. The plan is to continue attracting talent and strengthen partnerships with educators. Key initiatives for the year include:

Bringing Talent Draft Day programming to college campuses to engage more college students in employment and internship opportunities at on-campus career fairs.

Upcoming spring 2025 events include:

• University of South Dakota’s Internship Fair on January 15
• Dakota State University on February 19
• Augustana University on February 26

Employers interested in participating are encouraged to connect with Riley Johnson at rileyj@siouxfalls.com to register.

Launching the inaugural INTERN Sioux Falls Best Practices Luncheon on February 6 to support employers interested in hosting internships. College internships provide a crucial opportunity for employers to build a sustainable talent pipeline and serve as a key differentiator for college graduates when selecting employment. Space is limited, so employers are encouraged to reach out and contact Denise Guzzetta at deniseg@siouxfalls.com for details.

Partnering with higher educational institutions to enhance employees’ digital, construction and transportation competencies with UPSKILL Sioux Falls. This program, created in 2022, continues to provide funds to support Forward Sioux Falls partners with employee training and development needs.

The Sioux Falls Development Foundation remains unwavering in its commitment to fostering a vibrant workforce. The Foundation’s focus on opportunities for growth, connection, and meaningful work-life balance continues to be the driving force behind its efforts.

The fourth quarter is busy for many reasons, but particularly for groundbreakings! Businesses are working to start construction on their new locations and expansions before the snow flies. The fourth quarter of 2024 was no different, and the Foundation helped several businesses celebrate the start of construction on new projects.

See photos and recaps of each groundbreaking that took place!

By: Dean Dziedzic – Vice President of Economic Development

Trade shows, conferences and site consultant forums are just a few ways that the Sioux Falls Development Foundation strategizes to attract and recruit new business opportunities to the Sioux Falls region. In the past few months, we’ve attended and participated in the Area Development Site Consultant Forum and the Logistics Development Forum.

At these events there’s a diverse audience of industry leaders, potential investors, and influential decision-makers under one roof. For economic developers, these events offer a unique platform to highlight the strengths and opportunities of their regions. Beyond the surface-level exposure, the true value lies in the chance to engage directly with site consultants—individuals who hold significant sway over corporate relocation and expansion decisions.

Site consultants play a pivotal role in guiding businesses through the complex process of selecting new locations. Their recommendations can lead to substantial economic benefits for the regions they endorse. By attending these events, we strive to establish and nurture relationships with these consultants, showcasing the Sioux Falls region’s unique selling points and addressing specific queries or concerns.

At both the Site Consultants Forum and Logistics Development Forum we were able to engage consultants in face-to-face meetings. This type of marketing is more impactful than traditional marketing methods. These interactions allow for immediate feedback, deeper discussions, and the ability to tailor pitches to the needs and preferences of each consultant. This personalized approach helps build trust and rapport, increasing the likelihood that a consultant will consider or recommend Sioux Falls in their future projects.

Over the years the Development Foundation has engaged with site consultants on many fronts. We view this as more than just a networking opportunity—it’s a strategic move for our community to elevate Sioux Falls. By investing time and effort into these events, we can build meaningful connections, gain critical insights, and position Sioux Falls as a top contender for new business investments. In a competitive economic landscape, the relationships and knowledge gained at these events can make all the difference in achieving long-term success and growth.

 

By: Bob Mundt, President and CEO

Oftentimes we as economic developers struggle with balancing the resources of our communities with the benefits of an economic development project. The Sioux Falls Development Foundation works closely with city, state and utility officials to determine those limitations and stay within those parameters to balance residential, commercial and industrial growth. In short… smart growth.

As an organization, we have developed an “economic impact scorecard” to help us analyze whether a potential industrial prospect or an expansion project is a fit for our resource allocations. The form breaks down the critical elements and needs of the project and measures them against critical measurements to determine overall impact.

Variables we consider:

• Total Expenditures: CAPX for building and equipment to determine potential tax revenues.
• Job Creation: Overall wages and individual salaries (the higher the better).
• Benefits Package: Health and dental insurance, 401K plans, flex benefits.
• Property Tax Revenue: Projected assessed value for the building for tax purposes.
• Community Impact: Impact on infrastructure, schools, housing, support services.
• Risk Assessment: Market and labor stability over time.
• Environmental Impact: Air, water, wastewater, noise, and visual presentation.
• Energy: Balance of energy usage between renewables and traditional; how much are we willing to allocate to a project?
• Current Business Impact: Local suppliers, services and cross business utilization.
• Sustainability: Is it a growing business or a declining business?
• Community Give Back: Will they participate in the “Sioux Falls Way”?

The higher the prospect scores on the assessment the more likely we may be to offer incentives and assistance to locate in the community.

As we see across the country, natural resources including land, water, energy and the workforce are at a premium. Those communities who take a calculated approach to sustainable development will reap the benefits. We believe Sioux Falls and our region are on the right track, and must continue to work together to meet the critical needs of the future.