Category: Directions Newsletter

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?

By: Ryan Boschee, 2024 Board Chair

I am honored to serve this year as the Chair of the Board for the Sioux Falls Development Foundation. Our organization has served as the catalyst for economic development efforts since the 1950s and will continue to be a valuable partner in development efforts moving forward.

As we enter 2024, Foundation Park continues to be the right decision for Sioux Falls. Conceived in 2015 as a partnership effort to lure a large manufacturing project to Sioux Falls, the Development Foundation worked with the City, the State and Forward Sioux Falls to develop the 1,000-acre industrial park. The purpose was to attract new companies and help existing companies to grow and expand, which would raise the tax base and create jobs and opportunities in the region. In 2017, we were able to attract our first tenant and the growth continued.

Today, Foundation Park generates over $6 million in property taxes annually, has contributed over $12 million in development fees and is home to over 2,500 jobs. With over 500 acres remaining to sell and with CJ Foods and Avera/Owens Minor preparing to build this summer, the growth and development continues, promising to double the jobs and continue adding tax base and fees for the community.

In addition, the Foundation continues to work with existing businesses in helping to grow their businesses; assisting 21 companies with growth and expansion plans last year. This has led to Site Selection Magazine ranking Sioux Falls #1 in the country per capita for new and expansion projects.

Workforce development has also been a key element of our efforts. Since 2018, the Development Foundation has led efforts to recruit and retain talent in the Sioux Falls region. Working with employers, universities, tech schools and local high schools, the Foundation has created a pipeline of talent for local employers and helped grow our labor and talent pool.

What our forefathers started over 60 years ago is thriving today, making Sioux Falls a growing and thriving metropolitan area now recognized nationally for responsible growth. The Development Foundation is in a good position to continue our progress and will look for new and creative ways to help the Sioux Falls region thrive. I look forward to leading the Board this year and to working with staff and community leadership to seek new solutions to our challenges.

By: Mitch Rave, Greater Sioux Falls Chamber of Commerce Vice President of Public Policy

During the 2024 South Dakota Legislative Session, the Greater Sioux Falls Chamber advocated on several exciting issues that continue to promote the business community by advocating for economic growth, education, workforce, and so much more. Below, you can read about a handful of initiatives that were passed by the 2024 Legislative body that the Chamber was actively engaged on this session.

Economic Growth

Infrastructure

One of the biggest wins for the Chamber this year was securing $10 million in funding for a grant program that will allow airports across the state to access dollars to improve and expand their current facilities. This is an exciting step, as the Sioux Falls Regional Airport is currently planning to expand their terminal and gate space to accommodate a continuously growing volume of flights.

There were also exciting developments regarding water and wastewater. Over $130 million in American Rescue Plan dollars were appropriated to update and expand wastewater and freshwater infrastructure across South Dakota. Thanks to this major investment, communities across South Dakota will be able to continue to accommodate the growth we are seeing both in the business community and with our increased number of residents.

Carbon Pipelines, Corn Producers, and Landowner Rights

During the session, there were over a dozen bills introduced on each side of the issue, and at the end of session three major pieces of legislation were passed and signed by Governor Noem. SB 201, HB 1185, and HB 1186. Together, these three bills create curbs and gutters around surveying regulations, landowner and county compensation for the project, and protections for private property owners as well. The goal of these pieces of legislation is to ensure that South Dakota remains open for business for large scale linear projects, especially ones that provide such a benefit to our agriculture industry, but also gives our private property owners the rights and protections they deserve. Thanks to these compromises, the agriculture industry may be able to see considerable increases in their products at market if the project goes through as planned.

Education and Workforce

A 4% increase in funding for our K-12 education system was approved for Fiscal Year 2025, along with SB 127 which provides a targeted ongoing benchmark for teacher salary increases. Together these two initiatives show continued support for both our educators and children in South Dakota.

SB 45 provides an appropriation to create a new curriculum for quantum computing at some of our South Dakota regental universities. This will allow our students to step into an emerging industry and be on the cutting edge of the next generation of computer sciences.

On the topic of the workforce, this year the legislature passed some additional licensure compacts in the healthcare industry to help garner more workforce in the long-term care space. Also, a deep dive into the issues surrounding available and affordable childcare will be addressed this legislative offseason. Legislators and stakeholders will get together to determine what steps can be taken to help alleviate this issue felt across the state and in every industry.

Closing

I want to thank all our members for being so vocal and engaged with our public policy team here at the Greater Sioux Falls Chamber during this legislative session. It is only with your continued input, engagement, and support that we can be effective advocates for the business community at every level of government.

By: Bob Mundt, President/CEO

According to the results of Area Development’s 38th annual Corporate Survey, the availability of skilled labor is still the number-one priority for corporate executives when looking to locate a new facility or expand an existing one. What has, however, increased dramatically in importance over the 38-year course of the survey is quality of life. This may be responsible for many companies choosing smaller cities with a good quality of life for their next location project rather than larger metro areas.

In fact, quality of life considerations, which are so important in attracting skilled labor, rank higher in this year’s Corporate Survey when compared to universally important factors such as labor costs and occupancy and construction costs. The focus on quality of life is likely to continue as companies reimagine their workplaces and seek to cater to a much more mobile workforce. Quality of life and “quality of place” are seen as an indicator of whether a new location will be a match for a company’s existing corporate culture and values.

The proposed Riverline District and the development of a new “City Center” anchoring downtown at that location combined with the proposal to transition the existing convention center into an indoor recreation space for children and families is truly visionary. This forward-thinking plan for the future addresses multiple factors in building that quality of life that is so important to corporate expansions and locations as well as helping to recruit more talent and skilled labor to our region.

The Sioux Falls region is ideally positioned to take advantage of these new trends as our communities do an excellent job of building quality of place while controlling other costs of development. With the creation of Foundation Park and the ability to live in the community of your choice, we are finding these new selling points to be in our favor. Keep up the great work everyone.

Since its inception in 2021, UPSKILL Sioux Falls has been at the forefront of addressing workforce challenges in our community. In a strategic partnership with Southeast Technical College, this initiative rolled out specialized training programs for Class A and Class B Certified Drivers Licenses, significantly bolstering the local talent pool to meet the evolving needs of Sioux Falls businesses.

As we navigate through 2024, the results of these efforts have been nothing short of transformative. Nearly 300 drivers and managers have benefitted from this targeted training, enhancing their skills and advancing their careers. Moreover, the program’s financial incentives have been a game changer for local enterprises. Eligible businesses can receive up to 50% reimbursement for the costs associated with both internal and external training programs. “The reimbursements have enabled us to cross-train our staff more effectively, allowing us to serve our customers with greater efficiency,” commented a local small business owner.

Expanding on its success, UPSKILL Sioux Falls has broadened its horizon to encompass additional critical sectors such as healthcare, construction, and building trades in 2024. This expansion not only diversifies the skill sets within our workforce but also opens up new avenues for employee development and business growth.

Denise Guzzetta, Vice President of Talent and Workforce for the Sioux Falls Development Foundation, emphasizes the program’s strategic importance. “By supporting our employers in their efforts to retain and enhance the skills of their workforce in key areas like construction, healthcare, and transportation, we are laying a solid foundation for the sustainable growth of our local economy.”

**A Call to Action for Sioux Falls Businesses**

We encourage local businesses to leverage this unique opportunity to upskill their employees, foster a more dynamic workforce, and contribute to the economic vitality of the Sioux Falls region. Together, we can achieve remarkable milestones in workforce development and ensure a prosperous future for our community.

For more information on how to participate in UPSKILL Sioux Falls and take advantage of training reimbursements, please contact Denise Guzzetta at 605-595-4355 or deniseg@siouxfalls.com.

By Mike Lynch, program director

In 2023, Forward Sioux Falls joined nearly 30 organizations, along with the State of South Dakota to provide funding for South Dakota Trade (SDT), which focuses on export education, STEP Grant hosting, international trade consulting and trade missions.

In its inaugural year, SDT has achieved several key milestones including:

• Procuring $375k in federal grants
• Providing continuing education to 70+ trade practitioners
• Hosting delegates from over 10 countries
• Providing over 400 hours of free and confidential consulting to small businesses
• Conducting the state’s first trade mission in 10 years which generated more than a 60x return on investment (over $1.5 million in direct sales). In total, SDT has directly supported more than $3 million in sales for South Dakota companies this year

If any Forward Sioux Falls investors desire assistance with any aspect of international trade, we encourage them to utilize the services SDT provides. Click here for contact information and to learn more about SDT programming.