Pat Costello
Back Directions Newsletter

Chairman’s Report: Planned Success

  • August 10, 2021

While the year started amid the COVID-19 pandemic and the resulting restrictions on business operations and our “normal” way of life, the Development Foundation continued to address the needs of the business community with breakthrough workforce development programming, new land sales and targeted marketing to other states and industries.  As we approach the end of our 2021 fiscal year, we have begun to recognize the results of our chosen strategic directions. 

In October of 2020, we announced the sale of 80 acres to Amazon for their new five-story, 3.2 million square foot distribution center promising 1,000 new jobs and a $200 million investment.  Later that quarter we closed on sales to Tessier’s, Inc. and Muth Electric.  In January we announced CJ Foods and the sale of 140 acres in Foundation Park North, promising an additional 1,000 jobs and a $500 million investment.  In June we announced the sale of 37 acres to FedEx for their 350,000 square foot distribution center projected to employ up to 600 people.  Also, in June we closed on the sale of 21 acres in Sioux Empire Development Park 8 to Presidio Manufacturing and Outdoor Gear Manufacturing generating additional jobs and investment.  With these sales, we were able to pay off all our contracts for deeds and the REDI Loan from the State used to purchase Foundation Park in 2015. Retiring these debts marks a tremendous milestone for the Foundation!

Also starting in late 2020, the Development Foundation worked with the City to establish the Foundation Park North Tax Increment Financing District capturing the increase in future property tax revenues generated from recent sales in Foundation Park South to install infrastructure in Foundation Park North.  With the passage of the TIF development plan, the Foundation is now in a position to expedite the buildout of the infrastructure plan for the Park allowing more timely access and sales of land north of the rail line including the CJ Foods project. 

In addition, we were able to step up our efforts in workforce and talent recruitment utilizing electronic programming and recruiting tactics to continue to fill our talent pipeline.  Programs including Talent Draft, Talent Rebound, Career Connections, and WORK Sioux Falls which introduced over 750,000 potential workers to Sioux Falls and our employment opportunities.  Advertising campaigns in several midwestern cities and 300+ post-secondary institutions exposed potential employees to Sioux Falls providing direct connections to employers.

As we plan for 2022, the Board of Directors of the Development Foundation is focused on additional issues that form the big picture of economic development including quality job creation, property tax base expansion, workforce, housing, quality of life and future land development.  Together with our partners, we will meet these challenges and find solutions that will allow continued growth and development.  We look forward to serving you well into the future.

Pat Costello

Pat Costello

Board Chairman