A rendering of a Smithfield Foods facility that says

Defining Moment for Sioux Falls, South Dakota, and American Agriculture

On February 16, 2026, Smithfield Foods announced it has initiated the approval process to build a new state-of-the-art packaged meats and fresh pork processing facility in Sioux Falls, South Dakota. The new facility, which is subject to permitting and other regulatory and design approvals, will be built in Foundation Park. This industrial park was built and developed by the Sioux Falls Development Foundation beginning in 2015, providing the opportunity to secure major companies, like Amazon, CJ Schwan’s, FedEx, and now Smithfield Foods to invest and grow in Sioux Falls and South Dakota. It is the state’s largest industrial park at the intersection of Interstates 29 and 90 in Sioux Falls.

Smithfield worked in partnership with the Sioux Falls Development Foundation, the State of South Dakota, and the City of Sioux Falls on this opportunity to build a new facility outside of downtown Sioux Falls. The new modern, state-of the-art-facility will replace Smithfield’s existing plant in downtown, which has played a central role in the regional economy for more than 100 years. The company currently employs 3,200 people in Sioux Falls, providing $200 million in wages annually, and supports thousands of indirect jobs in agriculture and other sectors.

“Smithfield’s investment in a new facility in Sioux Falls will have a transformational impact on our community and our agriculture economy,” said Bob Mundt, president and CEO of the Sioux Falls Development Foundation. “The new facility will bring skilled jobs for Smithfield’s workforce, provide renewed value-added agriculture opportunities for regional producers and create an incredible redevelopment opportunity in Downtown Sioux Falls. We’re grateful for Smithfield’s commitment to Sioux Falls and are looking forward to welcoming them to their new home in Foundation Park.”

This opportunity would not exist without a gift from philanthropist T. Denny Sanford. He has committed $50 million through the Sioux Falls Area Community Foundation to enable the Sioux Falls Development Foundation to assume ownership of the current Smithfield property once the new facility is complete. This gift allows an incredible redevelopment opportunity that will include a thorough master planning process, alongside the community. The area of the existing site will be known as the Sanford District once the Sioux Falls Development Foundation closes on the properties.

More information on the new facility can be found on Smithfield’s website.

A Defining Moment – Announcement Feb. 16, 2026

Smithfield Sioux Falls Relocation FAQs

  • The new state-of-the-art facility is expected to be located in Foundation Park at the intersection of I-29 and I-90. Foundation Park is the state’s first and largest industrial mega site with over 1,000 acres zoned I-2 Heavy Industrial for manufacturing and distribution projects.
  • Foundation Park was identified as Heavy Industrial on the Future Land Use Map of the Shape Sioux Falls Comprehensive Plan since 2016.

A map of Foundation Park in Sioux Falls, South Dakota, showing tenants and available sitesAn aerial photo of Smithfield's new site in Sioux Falls, SD, with boundaries

A rendering of Smithfield Foods' new Sioux Falls facility that says: "Smithfield Foods Preliminary Sioux Falls Facility Design Concept"

  • Smithfield moving to a suitable industrial area at Foundation Park creates an incredible redevelopment opportunity in downtown Sioux Falls. The Sioux Falls Development Foundation will own the existing site in downtown Sioux Falls after Smithfield exits the site. Smithfield’s preliminary timeline is that production would start at its new facility by the end of 2028.
    • Thanks to T. Denny Sanford’s generous $50M gift, this area of more than 130 acres will be known as the Sanford District. For further context on this redevelopment opportunity, one acre is approximately the size of a football field. We expect this to be a collaborative effort between the Sioux Falls Development Foundation and the City of Sioux Falls to develop a master plan, alongside the community, for exactly what will be developed at the Sanford District. Details on how the community can provide input throughout this process will be added to this webpage. Based on the intentional and collaborative master planning process and Smithfield moving out of its existing facility, we don’t expect any new development to begin at the Sanford District until at least 2030+.

Local contractors should visit Smithfield’s website to learn more about bidding on projects for their new Sioux Falls facility.

  • Smithfield is requesting TIF from the Sioux Falls City Council to support their costs to build a wastewater treatment facility at their new site. The proposed TIF is up to $90 million and will be considered for approval by the Sioux Falls City Council in March 2026. Smithfield’s new facility has a preliminary total construction cost estimate of $1.3 billion.
  • If approved, this TIF would be developer-funded, meaning Smithfield is responsible for their upfront construction costs and would continue to pay their full property taxes. The incremental property taxes on the new plant will help pay for infrastructure for Smithfield to treat its own wastewater onsite, saving capacity at the City of Sioux Falls’ wastewater treatment facility. Reimbursement of the tax increment is available after Smithfield builds its new facility, is reserved only for eligible construction costs, which must be verified with the City, and is available only up to the amount the tax increment generates.
  • TIFs are not a tax break and not a blank check. The City supports Smithfield’s TIF application because it has multiple public and economic benefits that demonstrate appropriate and justifiable TIF use. Those include:
    • Saves wastewater treatment capacity at the City’s facility
    • Keeps the 4th largest employer in Sioux Falls (3,200 jobs) and supports the regional agriculture economy
    • Once-in-a-generation redevelopment opportunity in the heart of downtown Sioux Falls
    • Significant increase in future commercial/industrial property tax revenue for the new Smithfield site and redevelopment of the downtown site

The community of Sioux Falls has an incredible redevelopment opportunity at the Sanford District, but we are several years out from breaking ground on any redevelopment opportunities. The Sioux Falls Development Foundation and the City of Sioux Falls plan to work closely on a collaborative and intentional master planning process, which will include further details of the remediation and demolition costs. A portion of T. Denny Sanford’s generous gift will go towards these expenses.

A preliminary report estimates it will take about 18-24 months to remediate and demolish the existing plant. Cost estimates have been received, which are expected to be substantially offset by the gift from T. Denny Sanford. Based on Smithfield’s timeline of opening their new facility and the time it will take to demolish and remediate the existing site, we estimate it will be at least five years until the site will be ready for redevelopment.

As we have with other projects in Foundation Park, a traffic study is being conducted, which will evaluate traffic flows, best access points, and the most appropriate routes. This will help guide Smithfield Foods as they continue to design the facility and its traffic flow. The City of Sioux Falls is working to make improvements to Marion Road from 259th Street to Memory Lane starting in 2026 due to the anticipated traffic increases because of all of the development occurring at Foundation Park. One major improvement includes an overpass at the BNSF railroad crossing. Within the past five years, the South Dakota Department of Transportation studied and expanded the interchange at I-90 and Marion Road. The interchange at I-29 and the Renner/Crooks exit is currently being studied. More information on this project can be found on the project’s website.

The potential addition of a Sioux Area Metro bus route has been part of the conversation with Smithfield, and more broadly, the future public transportation needs of Foundation Park. Currently, public transportation needs at Foundation Park are being met through SAM’s On Demand service, but with the addition of CJ Schwan’s and now Smithfield, there is an increased focus on the best way to serve this area. As these new facilities open, further needs will continue to be evaluated to ensure they are being met in the area.

Smithfield’s new facility will be the newest and most modern in the entire country. We encourage you to review more information about the project on Smithfield’s website.

The City of Sioux Falls has a specific ordinance under Chapter 93.001 that outlines the allowable noise levels for various land uses, including industrial. Under Chapter 93.003, industrial sound levels must be below 75 db(A) at any time throughout the day.

No. The Sioux Falls Development Foundation has the necessary property it requires for Foundation Park. Most property north of Highway 130 has been annexed by the City of Crooks and would not be serviced by Sioux Falls.

No. Foundation Park was established in 2015 giving adjacent property owners notice of an I-2 zoned Industrial Park. Multiple public meetings have been held over the past 10 years announcing plans for expansion of the park with very little public opposition.

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