Category: Directions Newsletter

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.

By: Ryan Boschee, Sioux Falls Development Foundation Board Chair

In 1954, a group of community leaders had the foresight and vision to create the Sioux Falls Development Foundation in an effort to grow our economy through the recruitment and retention of business and industry. The main driver behind the effort was the availability and control of land that could be used as an incentive to bring new companies to Sioux Falls and allow existing companies to expand. Creating new tax base and growing employment was the goal.

This year at our annual meeting on November 21 at the South Dakota Alliance, the Foundation will be celebrating 70 years of pursuing and meeting that mission, as well as our expanded role into talent and workforce development, and urban redevelopment. The Foundation continues to develop industrial park land to grow the tax base and expand employment, including our latest 1,000-acre Foundation Park, Sioux Empire Development Park 8, and seven others. The Foundation, through Forward Sioux Falls, has expanded our role to include talent and workforce development and urban redevelopment, also focusing on expanding the tax base and growing employment.

As the current Chair of the Board for the Sioux Falls Development Foundation, I am proud to continue a strong tradition of leadership in building our economy and growing our workforce. 70 years of planning, risk taking, and community cooperation has resulted in Sioux Falls becoming one of the fastest growing and most admired communities in the country.

This growth doesn’t happen by accident and continued growth will need to be carefully planned and executed. Taking into account our accelerated growth, available resources and maintaining a high quality of life will take vision, planning and smart policies to make sure we grow while maintaining our high standards and community values.

I invite you to attend our Annual Meeting on November 21 at the Military Alliance and help us celebrate our past and plan for our future. We’re proud of our past and excited about our future. Thank you for being a part of both.

It is with great sadness that we mark the passing of our friend and former Chairman, Lyle Schroeder. Lyle served as the longtime President of Sioux Valley Hospital and a leader within our corporate community. He shared his time and talent with numerous organizations and non-profits throughout Sioux Falls and South Dakota.

As general chairman of the inaugural Forward Sioux Falls campaign in 1987, Lyle organized volunteers and raised over $1.9 million to create new jobs, stimulate capital investment, and propel Sioux Falls into the ‘90s against increased competition from major cities.

Lyle served on the Forward Sioux Falls Joint Venture Management Committee for a number of years and was elected to the Development Foundation Board. He served on the Executive Committee and as Chair in 1995. In 1996 we honored him with the Spirit of Sioux Falls Award in recognition of his service to the Development Foundation, Forward Sioux Falls, and our community.

Our condolences to Lyle’s family and friends.

The Spirit of Sioux Falls Scholarship endowment was established by the Sioux Falls Development Foundation and more than 100 businesses and individuals to honor the memory of Roger Hainje, Angus Anson, and David Birkeland, each of whom were Sioux Falls business and economic development leaders who lost their lives along with Governor Mickelson and four state officials April 19, 1993. They were on an economic development mission to retain one of the state’s largest employers.

Annually, the Sioux Falls Development Foundation awards scholarships to Sioux Falls residents or students who have completed at least one year of post-secondary work in business-related areas of study.

The student selected for the 2024 Spirit of Sioux Falls Scholarship is Andy Van Surksum. Van Surksum is a recent graduate of Southeast Technical College pursuing a bachelor’s degree in Accounting at the University of Sioux Falls.

The Foundation congratulates Van Surksum on his achievements as he continues to pursue his academic and career goals.

By: Mike Lynch

After nearly 11 years working in the Commerce Center building, I will be resigning from my role as program director for Forward Sioux Falls later in July. My wife Brenda and I will be moving to the Twin Cities as our daughter is planning to relocate from Atlanta and Brenda will be working in St. Paul. On a personal and professional level, it has been an honor to have worked with so many Forward Sioux Falls investors to help make this community economically stronger.

When I’ve had conversations with people from around the country asking about the intricacies of what makes Forward Sioux Falls successful, it’s not a difficult question for me to respond. I’m humbled by how leaders tirelessly come together, place their competitive differences aside and pursue objectives that benefit the entire Sioux Falls area. Collectively, we are stronger and were it not for this dynamic, the success of the program—and the community—would look much different.

325 investors support the current five-year program and there’s little doubt that the number will continue to rise. When we embarked upon the current campaign during the onset of the pandemic, there was reasonable skepticism as to what the future would hold. We wanted to be respectful of the business community before making any campaign timeline decisions. With so many uncertainties, we held conversations with dozens of investors, asking them if this was the right time to conduct a capital campaign. Unequivocally, they responded yes. There was a trust factor and profound respect for what Forward Sioux Falls continues to do to navigate the rising tide.

Though I’m very excited about the next chapter of life, leaving my position and Sioux Falls is bittersweet, for sure. I was born here and have spent much of my life here. Like so many, I’ve seen it grow from a very nice, yet relatively ordinary community well over 35 years ago, to one that is growing exponentially and catching the eye of so many throughout the country. People have realized this is a phenomenal place for those of all ages, with varying aspirations and intentions.

On many levels, I will miss living and working here and yet, I plan to return often and expect to be impressed, but not surprised of the continued evolution and expansion of this city. I appreciate so much, all who have crossed my path over the last decade; it’s been a rewarding ride!

The melting of the snow and the warming of the temperatures signals the long-awaited arrival of spring and summer. With that comes an exciting opportunity for businesses to start construction on new locations and expansions. The Foundation helped several local businesses and organizations celebrate the start of some exciting new building projects, hosting seven groundbreakings in the second quarter of 2024.

See photos and recaps of each groundbreaking that took place!

By: Ryan Boschee, Chairman

The Sioux Falls Development Foundation traces its origins back to the mid-20th century when a group of forward-thinking individuals recognized the untapped potential of the region. Fueled by a collective vision of transforming Sioux Falls into a hub of economic activity, these pioneers laid the groundwork for what would eventually become one of the most influential economic development organizations in the Midwest.

Formally established in 1954, the Sioux Falls Development Foundation embarked on its mission to attract new businesses, foster job creation, and stimulate investment in the community. Officially incorporated in the late 1960s, its first President, Dave Stenseth, was hired in 1969 to lead the efforts to land the EROS Data Center in Sioux Falls and initiated the development of the first Sioux Empire Development Park, providing essential infrastructure to support industrial growth and diversify the local economy. This strategic move set the stage for future expansion and cemented the Foundation’s reputation as a catalyst for progress.

Over the decades, the Sioux Falls Development Foundation has achieved numerous milestones, propelling the city to new heights of prosperity and opportunity. In the early ’80s, the Foundation played a major role in attracting Citibank, now Citi, to establish its regional headquarters in Sioux Falls. This landmark achievement not only brought jobs and investment to the community but also solidified Sioux Falls’ reputation as a financial services hub. In the late ’80s the Foundation, under the direction of Roger Hainje, initiated the first Forward Sioux Falls Campaign, setting the stage for a multitude of successes over the next several years including the establishment of nine development parks.

In subsequent years, the Foundation helped establish the regional development group known as MCEDA/LCEDA and in 1991 was named Money Magazine’s Best City to Live. The Foundation continued to spearhead initiatives aimed at driving economic growth and enhancing the city’s competitive edge. From supporting small businesses and entrepreneurs through Startup Sioux Falls to promoting workforce development and infrastructure investment, the Foundation remained steadfast in its commitment to advancing the interests of Sioux Falls and its residents.

As the economic landscape evolved and new challenges emerged, the Sioux Falls Development Foundation demonstrated remarkable adaptability and resilience. Whether navigating periods of economic uncertainty, leveraging emerging technologies, or addressing workforce needs, the Foundation remained agile in its response, continuously seeking innovative solutions to propel Sioux Falls forward. In 2015, land was acquired to establish the state’s first Mega Site, Foundation Park, to attract major industry, tax base and quality jobs to the community.

Today, the Sioux Falls Development Foundation stands as a beacon of progress and possibility, charting the course for the city’s future growth and prosperity. With a diverse array of industries, a talented workforce, and a supportive business environment, Sioux Falls continues to attract investment and opportunity from around the globe. Companies including Amazon, CJ Foods, FedEx, Owens & Minor, Burwell Enterprises and Presidio Manufacturing now call Sioux Falls home. In addition, existing companies including Citi, Raven, POET, Showplace, Grand Prairie Foods and a host of other local grown companies continue to prosper here. And at the helm of this ongoing transformation stands the Sioux Falls Development Foundation, dedicated to realizing the full potential of this vibrant community.

The history of the Sioux Falls Development Foundation is a testament to the power of vision, collaboration, and perseverance in driving economic growth and prosperity. From its humble beginnings to its present-day achievements, the Foundation has remained steadfast in its commitment to enhancing the quality of life for all who call Sioux Falls home. As the city looks to the future with the new opening of the Dakota State University DARC Labs and the development of cyber industries in the region, the Sioux Falls Development Foundation will continue to provide cutting-edge assistance to these companies and the businesses who support them.

We’re just getting started, and the future looks bright. Thank you for your continued support as we embark on the next 70 years!

By: Bob Mundt, President/CEO

As a long-time member of the National Site Selectors Guild, I was able to join their leadership conference in Nashville recently. The Site Selectors Guild is the only association of the world’s foremost professional site selection consultants. Guild members provide location strategy to corporations across the globe and for every industry, sector, and function. Founded in 2010, the Site Selectors Guild is dedicated to advancing the profession of international corporate site selection by promoting integrity, objectivity, and professional development. Guild membership is the highest standard in the site selection industry.

What I learned in talking to these professionals puts Sioux Falls and South Dakota in a good spot, highlighting several of the major issues influencing corporate site decisions.

• Availability of Industrial Land – Larger markets on the Coasts and in the South are tight for available, affordable, build-ready property, especially in larger tracts. Sioux Falls is positioned with Foundation Park and other available land to attract attention.
• Availability and Costs of Electricity – Hot markets in the South and West are reaching their maximum capacity for electrical power. Data centers and other high-use energy users are clamoring to find new markets for their operations. Sioux Falls and the Midwest are able to meet their energy needs.
• Availability of Water – Again, the availability and cost of water and water reclamation are negatively affecting the Coasts and the South. Manufacturing and processing operations that use water in their production are looking to the Midwest and South Dakota for expansion.
• Taxes and Operational Costs – Companies are looking to low-tax states and states with lower operating costs including transportation, labor, housing, and general quality of life initiatives. Sioux Falls and the surrounding communities check the box on all those.
• Quality of Life/Political Environment – More site selectors and companies are ranking quality of place as a key factor in determining location decisions. Education, political stability, recreational opportunities, cultural options, and quality environmental practices are playing a greater part in relocation decisions. Sioux Falls has these traits as well.

The feedback from over 50 site selectors puts Sioux Falls in a good position to capitalize on these trends. The Development Foundation will continue to market our product to these selectors and the companies they represent. We know we can compete, and we offer more than financial incentives. We offer a quality workforce in a quality environment conducive to more profitable operations and a quality of life for employees that is equal or better than our competitors. What better reason to consider Sioux Falls?