President’s Report: 2020 in Review

I’ve asked myself the question several times about how such a strange year could be such a good year. While the Development Foundation has experienced the same challenges as most in 2020, I have been proud of the way City, State, civic and business leadership has stepped up to the challenge. Despite the environment, many of our businesses and our city have seen significant growth and the Development Foundation has moved forward with several key initiatives while also responding to the business community and the challenges of COVID. While I certainly understand that several sectors of our economy including retail, restaurants and hospitality are still feeling the pain, I believe recovery and renewal is on the way.

In 2020 the Development Foundation continued to market, promote and develop Sioux Falls and has been successful in selling over 165 acres in our industrial parks, creating over 1,300 jobs and expanding the tax base of the region. Work continues on grading of additional land to create build-ready sites and working with our partners to finance and construct needed infrastructure. Our work with Corson Development Park has concluded and we now look to begin the development and build out of North Foundation Park. In addition, we have worked with our existing industries to assist with expansion plans and in accessing assistance through the PPP program, the CARES Act, and State programs to get through these difficult times.

Our talent and workforce development efforts continue as we have adapted to virtual recruitment strategies gaining access to over 80 universities, colleges and tech schools to recruit new talent. In addition, we have created a talent pipeline through STEM Initiatives in our area middle schools, Career Connection in our high schools, and various talent recruitment for our higher education contacts. Over 6,000 contacts have been engaged through our Talent Development programs connecting with over 80 businesses.

We will continue to respond to the needs of the business community in building Sioux Falls and look forward to a great 2021. Thank you to all our Forward Sioux Falls investors, Foundation members and community partners for making our progress possible. Your commitment is appreciated.

Bob Mundt
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Bob Mundt

President/CEO

Chairman’s Report: A Salute and A Vision

It is a great time to be taking the chair position with the Sioux Falls Development Foundation. Despite the challenges brought on by the COVID-19 pandemic, the decisions of past chairs, board members and Development Foundation leadership have set the table for our continued success. We have much to be proud of when reflecting on 2020, and we are in a position to capitalize on significant economic opportunities in 2021.

Thank you to Todd Ernst for his leadership as chair during 2020. The board and Foundation staff have had to respond to many unique challenges, and Todd was an excellent resource. Whether helping to shape office protocols related to the pandemic, overseeing personnel changes, or his continued management of our financial model, the Development Foundation would not be in the position of strength it is today without him.

Thank you also to Pam Hanneman, Paul Hanson and Jay Rasmussen, who retired from the board in December. These board members, along with Tom Kelley who we lost in October, helped guide the Development Foundation through an extremely exciting and somewhat risky time. They made the decision six years ago to move forward with Foundation Park and initiated one of the biggest and most complicated investments in our history coordinating with several partners and investors to provide what we have today. It is because of their vision and foresight that we have Foundation Park and are now seeing the product of their vision. Thank you to all board members, past and present, that have paved the way for where we are today.

As we move into 2021 with a focus on recovery and growth, the Foundation is poised for success and is laying the groundwork for next level development. Working with the City and our partners, we will expand our efforts to ready Foundation Park North and Sioux Empire Development Park VIII for new development and opportunities while focusing on our mission of job creation and property tax base expansion. Our workforce development efforts will continue to expand to meet the growing needs of our employers through the recruitment of professionals, skilled laborers, and production workers. New programs will strive to connect our employers with the employees they need, the resources needed to get them here, and will help accommodate them when they arrive.

I am predicting 2021 will be a great year for Sioux Falls and I look forward to leading the Development Foundation as we capitalize on our opportunities. As always, thank you for your membership in and support of the Foundation. We could not accomplish great things without you, and I sincerely appreciate your involvement and dedication.

I wish you all the best in 2021 and Happy New Year.

Pat Costello

Pat Costello

Board Chairman

CJ Foods USA to Build World-Class Asian Food Production Facility in South Dakota

Major project to bring 600-plus new, full-time jobs to Sioux Falls, S.D.

(Los Angeles, Calif. — Jan. 11, 2021) CJ Foods USA Inc. (CJ Foods), a U.S.-based affiliate of global lifestyle company CJ CheilJedang (CJCJ), today announced its plans to build a new 700,000-square-foot Asian food production facility in Sioux Falls, S.D.

The new facility, planned for Foundation Park in Sioux Falls, will result in more than 600 new full-time jobs by 2025 and include automated state-of-the-art food production lines, a warehouse and distribution center, shipping and receiving docks, and office space. The project will represent an overall investment of several hundred million dollars over the course of construction and will be funded through operating cash flow. Further investments in the facility’s capabilities will be made as demand increases over the next several years.

All foods made at the production facility will be sold and distributed by CJ Foods and Schwan’s Company, a fellow U.S.-based affiliate of CJ Foods. Once complete, people working at the facility will focus on making a broad range of Asian-style meals, sides, snacks and appetizers in the shelf-stable and frozen categories. The new South Dakota facility will represent an expansion of CJCJ’s Asian food production capabilities in North America, with CJ Foods already operating five Asian-style food plants in California, Ohio, New York and New Jersey and Schwan’s Company operating two in Texas.

“This strategically important new investment represents an extremely exciting time for both CJ Foods and Schwan’s Company,” said Executive Chairman of CJCJ Food, Americas and Schwan’s Company CEO Dimitrios Smyrnios. “Adding this world-class Asian food plant in South Dakota will help us lead the fast-growing Asian food category in North America and achieve our long-term growth plans. Ultimately, this plant will meet the increasing needs of our retail and food-service customers by creating significant production capacity, fueling Asian food category growth, and enabling future innovation.”

“We thank state and local officials in South Dakota for helping to bring this project to Sioux Falls. We look forward to building a long-lasting relationship that will be mutually beneficial for CJCJ’s family of businesses and the residents of South Dakota,” added Smyrnios.

 

This strategically important new investment represents an extremely exciting time for both CJ Foods and Schwan’s Company

Dimitrios Smyrnios, Executive Chairman of CJCJ Food, Americas and Schwan’s Company CEO

Investing in Asian Food Marketplace Growth

CJ Foods is investing in the new Asian-food facility to support it and Schwan’s Company’s growth initiatives in the retail and food-service markets in North America. The two companies offer several Asian-style brands in both the food-service and retail sectors, including Bibigo®, Pagoda®, Kahiki®, Minh® and Annie Chun’s® foods.

Asian food is extraordinarily popular in the United States alone, representing a more than $38 billion industry across retail stores and food-service venues, which includes 70,000 Asian-style restaurants. Worldwide, the cuisine’s popularity is growing rapidly as consumers increasingly embrace more global flavors. In a recent study by Technomic®, a leading consulting and research firm, 23 percent of global food consumers say they are preparing more global flavors at home than two years ago. This rate was at 39 percent with millennials, according to the study.

“The growth and popularity of Asian cuisine is something we expect to continue unabated over the coming years, especially as consumers have the opportunity to increasingly experience high-quality, authentic global foods when dining out or preparing meals at home,” said Smyrnios. “We are excited to work with our retail and food-service customers to expand the Asian food category and create great consumer experiences.”

Working with South Dakota Public Officials

To help facilitate the project, company leaders from CJ Foods and Schwan’s Company worked with state and local public agencies and officials in South Dakota, including: Gov. Kristi Noem; Governor’s Office of Economic Development (GOED) Commissioner Steve Westra; Sioux Falls Development Foundation CEO & President Bob Mundt; and Sioux Falls Mayor Paul TenHaken.

“South Dakota is open for business, and we’re excited for this tremendous investment in our state. The Sioux Falls community will benefit greatly from the new full-time jobs that this facility will provide,” said South Dakota Governor Kristi Noem. “I want to thank Dimitrios and everyone at CJ Foods and Schwan’s who worked with us to make this happen.”

Groundbreaking Event in Sioux Falls Planned for Spring 2021

More details about the specific products and brands that will be made at the facility, as well as renderings and more specific construction timelines, are expected to be shared at an event at the Sioux Falls site of the future plant in the spring. Event attendees will include CJ Foods and Schwan’s Company leaders as well as South Dakota public officials.

About CJ Foods

CJ Foods USA Inc. is a U.S. affiliate of global lifestyle company CJ CheilJedang. Since its opening in 1978, CJ Foods has quickly become a major manufacturer and distributor of Asian food products with a focus on Korean food. Through brands like Bibigo® and Annie Chun’s®, the company offers an extensive range of packaged food products, including dumplings, noodles and sauces. Backed by a global company with more than 60 years of experience in the food industry, CJ Foods’ mission is to drive awareness of Asian food, especially Korean food, and provide only the best quality products to U.S. households across the nation. To learn more about CJ Foods, visit www.cjfoods.com.

About Schwan’s Company

Based in Minnesota, Schwan’s Company is a leading U.S.-based manufacturer and marketer of quality foods offered through retail-grocery and food-service channels. Its many popular brands include Red Baron®, Tony’s®, Big Daddy’s®, Villa Prima™ and Freschetta® pizza, Mrs. Smith’s® and Edwards® desserts and Pagoda® Asian-style snacks. The company is an affiliate of global lifestyle company, CJ CheilJedang. To learn more about Schwan’s Company, visit www.schwanscompany.com.

About CJ CheilJedang

CJ CheilJedang is the core subsidiary in charge of the food and bio business sectors of the CJ Group. It has led the development of the Korean food industry for the past 60 years and contributed to the development of the bio industry as the nation’s top food company. Launched in 1953 as a food ingredient company, CJ CheilJedang has expanded its business to processed foods. CJ CheilJedang has achieved outstanding growth, quantitatively and qualitatively, in food processing and food ingredients in the food business sector, as well as in the bio business sector. The company is striving to go beyond being the No. 1 in Korea to becoming a global leader in each business sector. CJ CheilJedang will continue to grow and evolve in the food & bio sectors by practicing the spirit of OnlyOne and develop into a global lifestyle company. To learn more about CJCheilJedang, visit www.cj.co.kr.

Media Contact: Mike Smith, VP of PR & Communications, 507-537-8550, questions@schwans.com

CARES Act Grant Assists in Road Completion

A $1.9 million CARES Act Recovery Assistance Grant from the U.S. Department of Commerce Economic Development Administration will support water, wastewater and roadway infrastructure to support the development. The EDA grant will be matched with $478,830 in local funds and is expected to create 1,000 jobs and generate $200 million in private investment.

“This investment comes at a crucial time for Sioux Falls’ and South Dakota’s economies to come roaring back and provide hard-working Americans with new opportunities,” said Dana Gartzke, Performing the delegated duties of the Assistant Secretary of Commerce for Economic Development. “EDA is pleased to invest this CARES Act funding to improve infrastructure to create an industrial mega-site to aid the region’s recovery. The project’s location near a Tax Cuts and Jobs Act Opportunity Zone will drive additional investment to the state.”

This grant will allow us to complete the Foundation Court loop connecting all available lots to Marion Road and opening up a number of new lots for development

Bob Mundt, President/CEO

“This grant will allow us to complete the Foundation Court loop connecting all available lots to Marion Road and opening up a number of new lots for development,” said Bob Mundt, President/CEO of the Development Foundation. “These funds will help us to complete the main entrance/exit to the site and proved vital in our efforts to further market Foundation Park. We sincerely appreciate the EDA’s assistance and look forward to continued success”.

Forward Sioux Falls on Track for 2021

The 8th Forward Sioux Falls campaign is moving forward with the blessings of the Sioux Falls Development Foundation Board of Directors, the Greater Sioux Falls Chamber of Commerce Board of Directors and the Joint Venture Management Committee. Board and committee members have given the green light to NCDS to begin the process of raising the necessary funds for our next five-year campaign.

The five-year campaign includes specific funding for the areas of Business Development & Retention, Talent & Workforce Development, Airport and International Trade services, Innovation and Entrepreneurship through the Zeal Center and the Discovery District, and Advocacy and Community Development.

Campaign organizers are forming the leadership structure of the campaign and are looking for leaders to participate in the fundraising efforts. NCDS will begin organizing these leaders into teams who will canvass Sioux Falls businesses for their participation in the campaign set to begin in early 2021.

Groundbreakings: Sunnycrest Village

September 1, 2020

Sunnycrest Village Groundbreaking

Sunnycrest Village broke ground September 1st on a 60-unit addition to their current 223-unit apartment complex. This building will include modern, well-designed one- and two-bedroom apartments with attached garages, two elevators, and six resident lounges for independent seniors. The expected opening date is late 2021/early 2022.

Process Begins to Establish Foundation Park North TIF

At the City Council meeting on September 15th, the Sioux Falls Development Foundation began the process of establishing a Tax Increment Financing (TIF) District for Foundation Park North.

The purpose of creating the TIF District is to proactively prepare for growth due to the increased interest being shown in South Dakota and Sioux Falls for economic development projects and shovel-ready land. Several lots have active options on them which is driving increased demand to bring the 450 acres of Foundation Park North on-line with infrastructure build-out.

“We don’t have new tenants or projects to announce at this moment, but we are very excited about the interest Foundation Park is receiving,” president and CEO Bob Mundt said. “There are several active deals underway in the park and no current deals are contingent on tax increment financing.”

The first step to establishing this TIF District is approving the boundaries, which the City Council did at its September 15th meeting. Next, the Planning Commission and City Council will be asked to review a Project Plan for the TIF.

“The Project Plan will detail how the TIF will be utilized to prepare the property for development and to stimulate the general economic health and prosperity of our state,” Director of Business Retention and Expansion Mike Gray said. “Those public meetings are expected to take place over the course of the next few months.”

For additional information on land availability, the TIF process, and the Development Foundation, please call (605) 339-0103.

Build-Ready Sites

Foundation Park was announced in 2015 with a vision of attracting major industries of all sizes. Win Chill, LLC was the anchor tenant that landed in the spring of 2017. That specific land sale triggered necessary infrastructure of roads, rail, water, sewer, utilities, and fiber. In essence, the first phase of Foundation Park was off and running. The key to successful land development is the availability of build-ready sites that provide land parcels of all sizes with all the named infrastructure.

The 80-acre sale to Amazon was crucial in many ways, obviously the large capital investment and creation of 1,000 jobs, in addition the requirement to build out and finish an existing road in the park. The timing of this deal was quite advantageous because it coincided with a planned mass grading project to open more available sites. Ultimately, the Development Foundation was able to blend the grading of the road for the Amazon site with the overall grading plan. Once complete, the Development Foundation will open an additional 200+ acres of graded sites with all the infrastructure to each individual site, resulting in an abundance of build-ready sites.

As much as we desire to have build-ready sites, it certainly comes at a cost. This is the primary reason why we strategically plan our phased development and limit the amount of investment up front

Dean Dziedzic, Vice President of Economic Development

“As much as we desire to have build-ready sites, it certainly comes at a cost. This is the primary reason why we strategically plan our phased development and limit the amount of investment up front,” according to Dean Dziedzic, vice president of economic development. As mentioned, the Amazon sale and planned grading plan timing was perfect. “This large land sale to Amazon also offered the opportunity to apply for federal and state grants to offset some of the overall infrastructure cost”. The Development Foundation was appreciative and extremely fortunate to be awarded an Economic Development Administration, EDA, infrastructure grant of $1.9 million for the completion of Foundation Court. This road completes the loop in Foundation Park and will serve as a primary entrance and exit for Amazon’s truck activity. In addition, the Development Foundation also received a $200,000 Local Infrastructure Improvement Program, LIIP, grant from partners at the Governor’s Office of Economic Development. Again, these dollars will be beneficial in offsetting the remaining cost of the build out of Foundation Court.

In just a handful of years Foundation Park has gone from a vision to reality. City, State and Development Foundation leadership made some bold moves by believing and investing in a park that will change the landscape of industrial development for years to come. The ongoing activity and inquiries within Foundation Park is extremely brisk. The Development Foundation remains very confident that new projects will continue to land to help fulfill the organization’s mission of creating good paying jobs and strong economic development for the city, region, and state.

Career Connections Program Gets a Big Lift from the Sioux Falls Area Community Foundation

The Sioux Falls Development Foundation was awarded a grant from the Sioux Falls Area Community Foundation to help fund the Career Connection program launching this August. This talent development initiative is targeted to help incoming high school juniors and seniors in the Sioux Falls School District that are first-generation Americans, low-income, or otherwise under-represented.

Career Connections is launching in 2020 as part of the Development Foundation’s K-12 programming initiatives, which are supported by the Forward Sioux Falls Strategic Workforce Action Agenda. Career Connections is designed to address the shortage of skilled labor within the community by focusing on developing early career talent within our K-12 system with programming that includes business mentoring, early career exposure through a series of job shadowing experiences, and alignment of post-secondary curriculum to educate and equip these students with the skills that businesses need them to have.

We have tremendous support surrounding these 60 students involved in this first year and they will just be paving the way for many others to follow over the next five years

Denise Guzzetta, Vice President of Talent & Workforce Development

Considering the Sioux Falls School District has 600 seniors graduating annually from our public schools who don’t pursue any form of post-secondary education, the Development Foundation is committed to reducing this number by focusing on a group of 60 highly motivated students for the Career Connections’ inaugural year. First, the program will connect students with employers who will help students to determine the right pathway for them into the workplace. Then, the Career Connections program will assist students in pursuing some form of post-secondary education, such as a certificate program, a technical degree, or an associates’ or bachelor’s degree from one of the South Dakota’s Board of Regents schools.

“We have tremendous support surrounding these 60 students involved in this first year and they will just be paving the way for many others to follow over the next five years,” says Denise Guzzetta. “The community support and business engagement within Sioux Falls continues to drive our local economy and opportunities for everyone forward.”

The Career Connection program launches this August.

South Dakota is Open for Business

During these difficult times of the Covid pandemic the business community has been forced to adapt and possibly change their approach. In the world of economic development that is no different. Our recruitment and attraction activities, and business retention and expansion projects, have been altered both in budget and execution. Governor Noem and Mayor Ten Haken have done an outstanding job managing the crisis, keeping people safe, and the city and state open for business. This has not gone unnoticed in the national media. Governor Noem received high marks and accolades from many outlets on her handling of the pandemic.

In normal times we would use budgeted dollars on marketing missions reaching out to site selection consultants in person to promote and sell the city, region, and state. Like most, we shifted our approach and adopted a virtual advertising campaign. We felt it necessary to leverage the good news and distribute the message electronically in a monthly e-postcard. Sioux Falls and the state receive plenty of accolades that need to be promoted. In addition, we must always tout our affordable cost of doing business and pro-business climate. This campaign will continue to promote and attract new potential opportunities for development.

Trade shows and conferences were another area where we were forced to pivot and identify viable marketing opportunities. For many years, the Development Foundation conducted a radio campaign airing in the Twin Cities and throughout Minnesota. Strategically, we felt it was a perfect time to resume radio ads, offering Minnesota business owners a distinct alternative — lower taxes and less red tape with a South Dakota location. The radio ads began airing the week of July 6th and will run for the next three months.

March Offers Up Brisk Land Sale Activity

The Sioux Falls Development Foundation experienced one of their most active months in land sales, with three individual projects in three different parks. Even though each sale had been in the works for quite some time, it was reassuring that each deal closed on time as planned.

Nordica Warehouses, Inc. exercised their option and acquired an additional 12 acres in Foundation Park. Nordica started building in Foundation Park last year with a 200,000 square foot warehouse. Before completing that first phase they pulled the trigger on Phase II, which represented an additional 105,000 square foot expansion.

The big draw to that site was that they were looking to take advantage of rail services; being able to have BNSF deliver product to their warehouse on a larger scale basis

Dean Dziedzic, Vice President of Economic Development

“The big draw to that site was that they were looking to take advantage of rail services; being able to have BNSF deliver product to their warehouse on a larger scale basis,” said Dean Dziedzic, vice president for the Sioux Falls Development Foundation.

Plans for the new 12-acre site to the west is for 200,000 additional square feet, with the capability for further expansion in the future. Phase III construction is slated to begin this summer.

The second land sale included 39 acres of commercial (C-4) land in Campus Crossing near the northwest Wal-Mart. This property was originally zoned light Industrial (I-1) prior to the I-29 Marion Exit being constructed. The City determined the proper zoning for this land to be commercial. The Sioux Falls Development Foundation sold land to Wal-Mart in 2011 and subsequently two surrounding out-lots.

The Development Foundation’s Real Estate Committee recently made the decision to focus more attention on industrial development and the creation of primary jobs. This decision allowed the Foundation to market and list a 32-acre parcel and the two remaining out-lots in a bulk sale. A group of investors acquired the three parcels and will begin master planning for buildout and development.

The third sale in March took place in Sioux Empire Development Park (SEDP) VIII West, at the corner of I-229 & Benson. This represented a 21.74-acre land sale. This parcel was undeveloped and sold without any existing infrastructure. The Real Estate Committee made the decision to move forward with selling this entire parcel, mostly because it represented a challenge for industrial development with the access options and the topography of the land. The dollars from this sale will assist in developing and marketing land in SEDP VIII along I-229.

The activity and land sales in March provided a great deal of support to the bottom line and operations. As mentioned, these projects were in the works for quite some time leading up to their ultimate closing. It offers a great reminder why attraction and recruitment need to happen around the calendar; we never know when our economy will take a turn. Even with the current situation we remain optimistic with potential land sales. Some projects have taken a pause to reassess; but overall, we’re optimistic, and committed to working each project on their own timeline.