Category: Economic Development

Build-Ready Sites

Posted on by meganjansick

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

Posted on by meganjansick

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

Posted on by meganjansick

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

Posted on by meganjansick

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.