In 2023, several Sioux Falls community leaders identified an opportunity to maximize the use of riverfront land on the southeastern edge of Downtown Sioux Falls. With its proximity to the river, the bike trail, the Whittier neighborhood, and a growing and prospering downtown, this property was identified as having much greater potential for vibrancy and long term impact for the Sioux Falls region.

This next chapter — the Riverline District — is an opportunity for Sioux Falls to dream big. Our community has done just that, and Forward Sioux Falls has been a part of the ideation and visionary process, and has also provided financial support for conducting a Highest and Best Use Analysis and Economic Impact Study for the Riverline District.

This report was released in early 2024 in tandem with the February announcement of a visionary plan for the community from the Friends of the Riverline District and the City of Sioux Falls. This 2050 vision includes the development of a modern and appropriately sized convention center and repurposing the existing Sioux Falls Convention Center into a flexible public indoor recreation and event space, which will help fill the community’s stated demand for this type of indoor facility.

On July 9, 2024, the City of Sioux Falls released the “Convention Center Review and Market Analysis” for the Riverline District during the City Council Informational. Several representatives from Johnson Consulting, based out of Chicago, IL, compiled the study and presented it to the City Council. This is part of a comprehensive and phased approach to analyzing the feasibility of developing a new convention center at the Riverline District at Tenth Street and Cliff Avenue.

The “Convention Center Review and Market Analysis” by Johnson Consulting shows that Sioux Falls would support a newer and larger convention center at the Riverline District and that it’s a feasible development at that location from a market standpoint.

“Downtown Sioux Falls is growing toward Tenth Street and Cliff Avenue, so it’s important we are strategic in the steps we take now to maximize the potential of the Riverline District,” said Mayor Paul TenHaken. “This market analysis is part of our due diligence with the Riverline District to ensure this visionary plan emphasizes the well-being of our community and economic vitality for Sioux Falls.”

“We continue to see the potential positive impacts the investment of the Riverline District will not only have on the area directly at Tenth Street and Cliff Avenue but also for businesses downtown and throughout the community,” said Lynne Keller Forbes, co-chair of Friends of the Riverline District. “We are taking a multi-faceted approach to this project to continue the momentum of this bold vision for our community.”

To read more about the Market Analysis, click here.

Electronics Systems Inc. will increase its manufacturing space by 60 percent with a new addition that breaks ground this week.

The Sioux Falls manufacturer, founded in 1980, will add an 18,500-square-foot steel structure building to join two separate facilities at 600 E. 50th St. N.

The addition will break ground May 11 at 11:30 a.m. and support manufacturing of high-tech custom electronic circuit board assemblies involving automated equipment, assembly and testing operations.

“It’s being driven by demand,” president and shareholder Gary Larson said. “We’ve seen steady growth in our business, consistently for the last decade, and then after a slight blip at the start of the pandemic, we’ve done nothing but continue to grow.”

ESI provides a full range of electronic manufacturing services to original equipment manufacturers, or OEMs, in the industrial, commercial, medical, energy, agriculture and biotech markets.

“Nearly everything has electronics in it now, so there’s considerable demand in many industries, but you still have to earn the business,” Larson said. “What we’ve seen is a solid base of customers that we continue to service, and they continue to reward our efforts.”

It all centers around customer service, he emphasized. The goal at ESI is not just good customer service but legendary service. The kind that exceeds expectations and leads customers to tell others.

“Everybody here has the same job, and that’s providing legendary service to the customer no matter what your position in the company,” Larson said. “That’s what we’re focused on, and it’s served us well.”

It culminated in the company being honored with the highest overall customer rating and the Service Excellence Award sponsored by leading trade publication Circuits Assembly.

The designation reflected the highest score in all categories, from quality to technology, value for price, responsiveness, dependability and timely delivery.

“ESI is a fantastic company, and we’re excited to celebrate their success with this expansion,” said Mike Gray, director of business development for the Sioux Falls Development Foundation. “We were glad to advise them on the local programs available to assist growing companies as we work to expand target industries in our community.”

One valuable program will allow the company to “stair step up” into the increased property taxes that the expansion will bring with it.

“This allows them to gradually take on that additional cost instead of experiencing it immediately after making a large capital investment to grow in Sioux Falls,” Gray said.

ESI is a strong example of the onshoring business that has occurred since 2020.

“The pandemic certainly made businesses understand the value of a domestic manufacturing partner,” Larson said. “From that perspective, the market has changed, and we’re seeing new opportunities.”

Of course, capturing those opportunities takes people. ESI has grown to 275 employees, but its expansion will require more.

“The job market is tough, and the majority of our workforce works directly in manufacturing – assembly, machine operators and things like that – although we also have staff in engineering, materials and purchasing,” Larson said. “If we find people willing to work a steady shift and in support roles, they can have great success here.”

ESI has worked closely with the Sioux Falls Development Foundation’s Career Connections program, bringing high school students into the production facility to learn more about the opportunities here.

The hope is to encourage more internships and launch a manufacturing technician certificate through Southeast Technical College this fall to build a pipeline of workers directly sourced from high school and offer a way to upskill.

“Nothing we build has our name on it, so students don’t know us and have no idea what goes on in a building like this,” Larson said. “When groups come through, it’s been a fun opportunity to tell our story.”

Larson makes it relatable, teaching students how ESI manufactures electronics that power drive-thru intercoms and interruption controls for emergency response vehicles, for example.

“We relate it to real life – these are things nobody knows about,” Larson said. “We enjoy working with the Development Foundation and are looking forward to getting more traction in our student-focused programs.”

The company is a strong opportunity for workers at all skill levels, said Denise Guzzetta, vice president of talent and workforce development at the Sioux Falls Development Foundation.

“This is a highly automated, tech-driven business that continues to make key investments both in its physical facility as well as in talent,” she said. “It’s a perfect example of how we’re trying to open students’ eyes to the opportunities that exist to learn valuable skills and grow a career without leaving Sioux Falls.”

ESI hopes to open its expansion sometime in the third quarter.

“We’re really focusing on expanding our current capacity, so we’ll add any new equipment we need, and that might increase our capabilities because the technology is ever-changing, especially in automation, so we’re always upgrading,” Larson said.

“And we’ll be hiring to support the expansion. We’re already anticipating it and trying to stay ahead.”

To learn more about Electronic Systems Inc., click here.

Recently, Forward Sioux Falls made the decision to contribute funding to the newly organized South Dakota Trade Association to better serve FSF investors wanting to participate in international trade. Prior to this campaign, international trade had been championed by the Sioux Falls Development Foundation with funding from FSF, SBA, SBDC, and the State of South Dakota. Two years ago, those responsibilities were transferred to USD and the Vermillion Chamber, but with the new support from the state, these efforts will now be handled by the South Dakota Trade Association.

South Dakota Trade will work closely with the business community to navigate international trade for South Dakota and has already secured a $175,000 grant from the U.S. Small Business Administration to expand South Dakota exports.

“South Dakota products and services are second-to-none and it is my great honor to work alongside Governor Noem, our members, our partners, and teammates to promote them abroad,” said Luke J. Lindberg, President and CEO. “South Dakota Trade will be a vital resource to our farmers, ranchers, manufacturers, and small business owners as they navigate an increasingly complicated global economy.”

The new organization will offer four programs:

• Free and confidential business consulting for small businesses looking to export their goods and services.
• Trade missions and reverse trade missions on behalf of the state to develop important relationships with foreign buyers and those looking to do business in South Dakota.
• The State Trade Expansion Program (STEP) grant, which can reimburse a company for expenses related to growing a business overseas.
• Export seminars and courses that will enhance companies’ export-readiness. Classes range from beginner to advanced and can often be covered by STEP grant funds.

“Ninety-five percent of the world’s consumers live outside of the United States,” said Joe Beck, newly elected board chair of the association.

Beck, who is also the executive director of corporate development at Viaflex, an exporter based in Sioux Falls, continued, “We are putting together a team and programs that will enable South Dakota to capture more value across all industry segments and aspects of the supply chain.”

South Dakota Trade is funded by a variety of partners across the state, including local businesses, trade associations, economic development organizations, the University of South Dakota, and the Governor’s Office of Economic Development (GOED).

In addition to Beck and Lindberg, South Dakota Trade’s board of directors will be comprised of four additional directors and two ex-officio members:

• Vice chair: Andrea Thompson, Vice President, International Programs, Northrop Grumman
• Vice chair: Holly Lien, Chief Marketing Officer, Pete Lien & Sons
• Treasurer: Jeff Griffin, President & CEO, Greater Sioux Falls Chamber of Commerce
• Secretary: David Kiesner, Director of Business Development, Millborn Seeds
• Ex officio: Sheila Gestring, President, University of South Dakota
• Ex officio: Commissioner, GOED

South Dakota Trade is a 501(c)(6) association that navigates international trade for South Dakota. The Association has offices in Sioux Falls and Rapid City. For additional information, please visit www.southdakotatrade.com.

The most recent major project to locate at Foundation Park is hiring – and other businesses could be following.

FedEx Ground opened its 340,000-square-foot distribution center in the northwest Sioux Falls development park last fall and employs a mix of full- and part-time team members.

The operation also contracts for package pickup and delivery services with local service provider businesses that hire locally for driver, helper, manager and other positions.

“The site was chosen because of its ease of access to major highways, proximity to customers’ distribution centers and a strong local community workforce for recruiting employees,” said Dana Hardek, an external senior communications specialist for FedEx Ground.

FedEx is the tenant for the building, which was developed by Indianapolis-based Scannell Properties.

“As one of the largest industrial developers in the country, Scannell Properties is accustomed to working with a wide array of land sellers and municipalities. In the case of this project, we could not have asked for a better pairing,” said Tom McCary, director of development for Scannell.

“It was a privilege to work with both the city of Sioux Falls and the Sioux Falls Development Foundation; both were instrumental in getting this project approved and completed on such a fast timetable. We sincerely hope to have more projects in Sioux Falls in the future.”

The FedEx project is an example of the type of business the Sioux Falls Development Foundation envisioned at Foundation Park when it was developed in 2016, president and CEO Bob Mundt said.

“Our two targets going into this were large warehousing and distribution facilities along with manufacturing, which will be out there shortly,” he said. “To offer a first-class employer like FedEx a place to expand in Sioux Falls, hire more people and provide competitive positions with excellent long-term career prospects is exactly what we’re trying to achieve with this park.”

FedEx Ground is hiring in the Sioux Falls area for package handler positions.

In addition to competitive wages and a flexible schedule, the company’s benefits include medical, dental, vision, paid time off and parental leave, as well as tuition reimbursement after a minimum threshold of service.

To learn more, visit fedexgroundjobs.com and search “Sioux Falls.”

Tessier’s Inc. also is settling into its new location at Foundation Park.

The Mitchell-based mechanical contractor and metal fabrication company built a 42,000-square-foot office and shop complex on a 5-acre parcel.

Tessier’s provides heating, ventilating, air conditioning and environmental control services.

“It’s working very well,” president Rashid Kadir said. “The location is very good. To be part of the massive buildings around us is a wonderful feeling. It’s easy access to I-29, easy access to I-90, and everything is as expected or better.”

He estimates 60 people work at the new location, including the office and shop, with 80 in the overall Sioux Falls area. To learn more about openings, click here.

“And we are desperately in need of more workforce, both professional and field service. You name it, we need it,” Kadir said. “The majority of those would work out of this building. To have something new and exciting like this to offer them is just amazing. I think other businesses also would appreciate the location.”

Muth Electric and Muth Technology also will be under construction at Foundation Park yet this year on their new Sioux Falls location, Mundt said.

“And we continue to see interest from others in distribution and light manufacturing on our remaining lots on the south portion of the park,” he said. “We have multiple sites with rail remaining, and we’re looking at all our remaining land on the south end to ensure we’re focused in on its current highest and best use.”

The Development Foundation also is working on developing the north side of the park, making it a build-ready site.

“We’re roughing in roads and will have hard-surface roads there next year,” Mundt said.

That’s where CJ Foods is moving forward and likely will break ground on its Asian food production facility yet this year, Mundt said.

“We’re actively working with CJ, and they’re designing the facility now to make sure they can accommodate their growth and expansion,” he said.

The Development Foundation also continues to work with future prospects, he said.

“They’re a little more conservative right now with interest rates and inflation and uncertainty in the market, so they’re stepping back and really taking a look at projects to make sure they can get them in on budget, so it’s taking more time to make decisions, but we still are working through the process with multiple prospects.”

By the end of April, the plan is that the equivalent of 14 miles of racking will be filling up with sofas, mattresses and other home furnishings at Furniture Mart USA’s expanded warehouse and distribution center.

For now, they’re putting on finishing touches in preparation for a certificate of occupancy that will allow the new state-of-the-art facility to begin operations.

Ultimately, the expansion will add 200,000 square feet of warehouse space and 100,000 square feet of retail, doubling the size of the Sioux Falls-based company’s headquarters.

“This is a complex, precise project,” said Troy Eichmann, Furniture Mart’s chief operating officer.

It’s also a project ready to meet the market at what the company believes is an opportune time.

“We believe if we can have the product on hand, we can beat the competition, so we invest not only in the building but the product itself with sophisticated predictive models trying to forecast what the customer is going to buy,” Eichmann said. “They’re right more than they’re wrong.”

Much of the product that will fill these racks already is on order, he added.

“What’s interesting is manufacturers, since COVID hit, are moving their operations back to North America, so many are coming to the U.S. or Mexico from China and Vietnam,” Eichmann said.

If you think trying to coordinate it all – the design, the ordering, the construction – takes a massive effort, you’re right. And in the case of the Furniture Mart project, it all came together thanks to partners who helped navigate a path to development.

“Business expansion takes time,” said Mike Gray, director of business retention and expansion for the Sioux Falls Development Foundation.

“We first heard about potential plans for this project several years ago, so it’s very exciting to see it get built and become a top five industry building permit in our community for 2021. That puts this project in the same conversation as investments made by FedEx, Lineage Logistics and Avera for last year, and it shows how Sioux Falls is a growing market for warehousing and distribution.”

But the building’s location along 60th Street North east of Minnesota Avenue brought some hurdles, given its proximity to the Big Sioux River and necessary flood control.

“That brought certain regulatory requirements,” Gray said. “We identified those would have an impact on the expansion and timelines, and helped make connections with federal partners, plus coordinated local and state programs available to assist with the expansion.”

With guidance from U.S. Sen. Mike Rounds’ office and support from the state of South Dakota, Furniture Mart was able to complete the necessary requirements through the Army Corps of Engineers in record time.

“That really made a difference in getting this project done,” Eichmann said. “It was a 10-month process, but I’m told it easily could have been 15 months or more. This could have been a complicated and daunting process, but both at the local, state and federal level there was sincere interest in working with us.”

While some might think of the Development Foundation as bringing in new business, its efforts to help retain and expand existing business are just as robust.

“I like to tell businesses if they’re thinking of expansion, especially if it’s in the next five years, we want to talk to them,” Gray said. “Expanding businesses often will work with a banker, an engineering firm, architects, commercial brokers, but having the Development Foundation as a member of the team is one more layer to help reduce risk and potentially identify other opportunities for your business that come with expansion and investment.”

The organization brings a different perspective to the conversation, he added.

“Viewing projects through an economic development lens is what we do every day, and we recognize things you and others might not be aware of, whether it’s the opportunity for a low-interest loan, workforce training assistance or just another connection we can make that you weren’t originally thinking about.”

The relationship paid dividends for Furniture Mart, Eichmann said.

“Mike Gray definitely was empowered to be effective in helping us and really helped shepherd us through the process,” he said. “We absolutely appreciate the relationship and are happy to deliver the project to the community.”

The ripple effect of such an investment can be big.

In the case of Furniture Mart’s project, “we did as much locally as we could,” Eichmann said. “It was important to us. It was important to Bill Hinks, our founder and chairman, and when we looked at construction bids side by side, if there was any way to keep the business local, we did it.”

The expansion also will add 50 jobs over time, he estimated.

“What we find is in markets where we compete for talent, we’re winning because of our family culture, our active participation in the business and the fact that we recognize it can be hard work and we pay accordingly,” Eichmann said.

Furniture Mart will wrap up its retail additions later this year, adding Ashley HomeStore and Furniture Mart locations there and ultimately creating one of the largest buildings in Sioux Falls.

“This company really is a great example of what we like to see in a company’s economic development journey in Sioux Falls,” Gray added.

“Bill Hinks was an entrepreneur in the 1970s, saw the opportunity and had a vision and now has grown to be among the largest furniture distributors in America. They employ hundreds of people and have grown with Sioux Falls, increasing the tax base and employee wages while donating millions to nonprofits. They’re homegrown, family-owned and attached to the community, which is exactly the sort of business we want to support.”

Is your business looking to expand in Sioux Falls? Contact Mike Gray at 605-595-4243 or mikeg@siouxfalls.com.