Category: Economic Development

Foundation Park: Activity, Activity, Activity

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The momentum at Foundation Park continues as represented by the following activities.

Foundation Court – The second phase of Foundation Court will complete the loop back to Marion Road. The project represents infrastructure of water, sewer, paving and lighting. It also opens the final phases of Foundation Park South with additional build-ready sites. The project is on track to be completed by the end of August this year.

Amazon – If you are anywhere near the northwest part of Sioux Falls, you certainly will see Amazon’s distribution center breaking the skyline. It seems this enormous building is being erected in record time, with several hundred local contractors on site.

Marion Road – Due to the Amazon facility, the City of Sioux Falls is currently making improvements to Marion Road. This will include additional turning lanes and signalization. As Marion continues north, the City is planning more improvements to Marion Road that will extend all the way to 258th Street.

Win Chill – Foundation Park’s anchor tenant continues to grow and expand. Their current expansion will add an additional 125,000 square feet of cold storage warehousing and represents their third phase since breaking ground on 54 acres in May of 2017.

Grading – It seems this is a never-ending task at Foundation Park. If you are out near the Park you will notice continuous grading. The grading will open more land for sale and potentially new tenants soon.

CJ Foods/Schwans – Engineering and site plans for this 700,000 square foot facility on 140 acres continue to move forward. This project will require infrastructure to be installed north of the railroad tracks. In the coming 12-24 months expect to see roads, water, sewer, utilities, fiber and again plenty of grading taking place.

Pipeline – We remain extremely pleased with the level of prospect activity and inquiries received with interest in Foundation Park. We would not be surprised to see more announcements as we enter spring and summer this year.

CJ Foods Selects Sioux Falls and Foundation Park

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The Sioux Falls Development Foundation is very pleased to welcome CJ Foods USA, a global market leader in food production, to Foundation Park, Sioux Falls and South Dakota for their next major expansion. The announcement was made by the company on Monday, January 11.

“We are excited to continue working with them to finalize their project here in Sioux Falls,” said Bob Mundt, President & CEO of the Development Foundation. “This is the latest example of the vision that elected and community leaders had when they created Foundation Park in 2015 and the concept of a mega site for large scale development. We will continue to diversify our economy with clean, high tech manufacturing generating new high skilled living wage jobs in the region.”

The new facility 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 nearly 500 hundred million dollars over the course of construction. Additional investments in the facility’s capabilities will be made as demand increases over the next several years.

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.

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

“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.”

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 Commissioner Steve Westra; Sioux Falls Mayor Paul TenHaken and Sioux Falls Development Foundation President & CEO Bob Mundt.

South Dakota is open for business, and we’re excited for this tremendous investment in our state.

Kristi Noem, South Dakota Governor

“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.”

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 this spring.

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

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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.

Foundation Park

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

Statement Regarding the CJ Foods Announcement

Statement Regarding the CJ Foods Announcement

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The Sioux Falls Development Foundation is very pleased that CJ Foods USA Inc., a global market leader in food production, has chosen Sioux Falls and South Dakota for their next major expansion and we welcome them to our corporate community. We are excited to continue working with them to finalize their project here in Sioux Falls.

This is the latest example of the vision that elected and community leaders had when they created Foundation Park in 2015 and the concept of a mega site for large scale development. We will continue to diversify our economy with clean, high tech manufacturing generating new high skilled living wage jobs in the region. CJ Foods’ announcement is yet another indication of our city’s strong outlook for 2021 and beyond.

Bob Mundt
Contact

Bob Mundt

President/CEO

CARES Act Grant Assists in Road Completion

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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”.

Process Begins to Establish Foundation Park North TIF

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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.

Contact

Build-Ready Sites

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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.

Buildings & Sites

Sioux Falls Development Foundation sells 80 acres to Amazon.com

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The Sioux Falls Development Foundation has completed its largest land sale to date at Foundation Park to Amazon.com Services Inc.

Amazon has purchased 80 acres at the corner of Foundation Park and Marion Road for future use.

“Their 80-acre purchase is the largest single purchase to date for Foundation Park and we look forward to watching the parcel develop as Amazon implements their strategy in South Dakota. This is the type of project City and civic leaders envisioned in 2015 when Foundation Park was started and we look forward to similar developments in the future.”

Additional details about the project will be announced by Amazon at a future date.

The Sioux Falls Development Foundation thanks the city of Sioux Falls and the state of South Dakota for their collaboration in this historic transaction.

“Their 80-acre purchase is the largest single purchase to date for Foundation Park and we look forward to watching the parcel develop as Amazon implements their strategy in South Dakota. This is the type of project City and civic leaders envisioned in 2015 when Foundation Park was started and we look forward to similar developments in the future.”

Bob Mundt, President/CEO

“We’re excited to finally announce that Amazon has selected Sioux Falls and Foundation Park as the site for a future facility,” Mayor Paul TenHaken said.

“This announcement that an innovative Fortune 5 company plans to open a site in Sioux Falls speaks to how our business environment and economic climate continue to be a great place for companies to do business. We look forward to working with them to ensure their operation in Sioux Falls is a success story for all.”

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, to be located near a Tax Cuts and Jobs Act Opportunity Zone, will be matched with $478,830 in local funds and is expected to create 1,000 jobs and generate $200 million in private investment.

We’re excited to finally announce that Amazon has selected Sioux Falls and Foundation Park as the site for a future facility,

Paul TenHaken, Sioux Falls Mayor

“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.”

“South Dakota is open for business, and we’re excited that Amazon is joining our South Dakota community,” Gov. Kristi Noem added.

Foundation Park was announced five years ago as a partnership among the Development Foundation, the City of Sioux Falls and the State of South Dakota.

With the Amazon sale, about 180 acres have been sold so far, with tenants that include Win Chill LLC, Nordica Warehouses, Dakota Carriers and New Century Partners.

Development Foundation Connects Design Professionals with City Hall

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City Hall Connections

The Sioux Falls Development Foundation, in partnership with the City of Sioux Falls, recently hosted two events targeting architects and engineers in the Sioux Falls area. These events were offered as part of the Development Foundation’s Business Retention and Expansion (BR&E) initiative, which focuses on local economic development opportunities.

Architectural and engineering firms work day-in and day-out to help grow our community. These professions work to design neighborhoods, business parks, buildings and so much more that contribute to Sioux Falls. One area the Development Foundation is focused on is the importance of developing relationships and strong communication between our private sector companies and public sector officials.

During a BR&E visit with an existing company in Sioux Falls, the Foundation learned about the company’s frustration with City Hall due to imposed requirements associated with their expansion project. The Development Foundation discovered there was a miscommunication between the City, the contractor, the engineering firm and the company. As it turns out, the requirements that formed the basis of the company’s frustrations were in fact not required. This resulted in financial savings for the company and a better working relationship with City Hall.

On January 22 and February 11, architecture and engineering professionals were invited to attend an Open House event with the City’s Planning and Development Services Department to learn what’s new with permitting processes and plan reviews and to interact with the individuals that work at the City on these projects. These events marked one solid step forward in cultivating strong relationships between our business sector and the City of Sioux Falls, so that when companies make investments to expand, they have a great experience.

 

Mike Gray
To learn more contact

Mike Gray

Director of Business, Retention & Expansion

March Offers Up Brisk Land Sale Activity

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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.