Lincoln and Minnehaha County Economic Development Associations

Maintaining community infrastructure is also vital to growth, and 2014 saw critical projects in thissector as well. Dell Rapids is working on a $1 millionsewer extension for a new industrial and commercialdevelopment park and replacing the bridge on Garfield Avenue, a $2.3 million project. Over $1 millionin water and sewer projects occurred this year inCanton, benefiting the community’s industrial parkand completing a bridge replacement.

Educational construction has been a consistentelement in annual growth over the past decade. Thisyear, the Tea Area School District plans to build a $5.2 million elementary school for junior kindergartenthrough fourth grade students on a site inside theSioux Falls city limits. The passage of a bond issue inHarrisburg enabled that district to design and build asecond middle school and fifth elementary school,while the Brandon Valley School District’s intermediateschool for fifth and sixth grade students is under construction adjacent to Robert Bennis ElementarySchool. Construction is also underway for the seventhand eighth grade addition to Lennox High School.

Agriculture is still big business in Lincoln andMinnehaha Counties. The new $35 million DakotaPlains Dairy under construction in southern LincolnCounty is projecting a total annual economic impactestimated at $59.86 million, with $8-10 million inannual spending on feed and other products to supportthe dairy. But the unincorporated areas are seeingstrong growth in addition to that project. LincolnCounty saw $9.6 million value in 34 permits for agbuildings outside of the communities, and only one of

Story continued inside...

2014 Annual Report

uring the past year, projects in a wide variety of sectors proved the strength of Minnehaha and Lincoln County economies. Manufacturing,

housing, agriculture, education, local infrastructureand retail all experienced significant growth, fueling a very positive year for our area.

In Lincoln County, two new operations openedthis year near Tea. DeGeest Steel Works celebrated anopen house for their new manufacturing facility andSpecialized Machine opened a new 10,000 square footproduction space with newly purchased machinerythat will add three new jobs. In Lyons, RosenbauerAmerica, one of the world’s largest assemblers of fire-service vehicles, is expanding its manufacturingoperations to include a $2.1 million new freestanding22,500 square foot building with 30 new full timeemployees.

Cemcast Pipe and Precast, LLC, a division of CarlV. Carlson Company, a concrete contractor based inLincoln County, is building a pre-cast concrete pipemanufacturing facility in rural Hartford. The 20,000square foot building is expected to add about 20 positions when the facility is in full production, inspring of 2015. Marmen Energy in Brandon has purchased additional land for its manufactured products, acquiring 20 acres in the BrandonDevelopment Park to store wind towers until they’reshipped to the company’s national customers.

“It is significant that all these projects representthe growth of companies established here,” said NickFosheim, executive director of LCEDA and MCEDA.“Successful companies grow our communities, addjobs and build our local economy.”

Diversity illustrates area’s economic strength

Partnership For Success

D

DeGeest Steel Works opened a manufacturing facility near Tea.

Rosenbauer America is constructing a new 22,500 square footbuilding in Lyons, expanding its manufacturing operations.

incoln County, South Dakota has received national attention as one of the fastest growing areas in the

United States. That growth is occurring becauseof the progress of our communities—and our communities are moving forward thanks to the participation and active involvement of our citizens.

The people in the fast-growing towns of LincolnCounty support economic development through theirvolunteerism, their hometown pride and their willingness to work for the amenities that make ourcommunities so attractive to incoming families. Weare a county of opportunity because of our partnershipwith our economic development colleagues in Minnehaha County along withthe Governor’s Office of Economic Development and the Sioux FallsDevelopment Foundation. But the grassroots efforts of our local residents arewhat starts the ball rolling—and what maintains our local momentum forgrowth.

In addition to showing our appreciation for that local support, we mustthank the dedicated and committed members of our volunteer board and ourexecutive director, Nick Fosheim. LCEDA is a strong and active force for community development because of them and because of the confidence andsupport of our investors. Partnership, good communication and a belief in thefuture are the building blocks of our organization and of our successful communities.

Local participation is our strategy for successBy Jenni White

PRESIDENT’S MESSAGE

or nearly thirty years, the Minnehaha County Economic Development Association has been

one of the most successful regional economicdevelopment groups in our state. In partnership withthe Lincoln County Economic DevelopmentAssociation, we have shown what can be achievedthrough an active, effective, regionally based economicdevelopment collaboration.

Our goals have always been the economic strengthof our communities and a consistent enhancement inquality of life for the residents of Minnehaha andLincoln Counties. Our organizations have been recognized for success in growing opportunity, adding jobs and raising the standard of living in our member communities. The real accolades, however,come from the steady growth of our region, as new and expanding businessesand families seeking a better future make their homes in our two-county area.

We join our efforts with dedicated professionals on the local, county andstate levels and applaud the work of individuals, volunteers and the peoplewho understand the importance of economic development in our member communities. Our success comes from the work of our executive director Nick Fosheim and the mayors, council members, city finance officers and citizens who share our goal of a tomorrow bright with opportunities for thenext generation.

By Mike Wendland

LCEDA

Mike Wendland, President, Rural Mayors

Terry Ebright, Vice-President, At-Large

Dennis Olson, Secretary-Treasurer, Brandon

Jason Pittmann, Baltic

Ryan Fods, Colton

Marv Wieman, Crooks

Mike Geraets, Dell Rapids

Dwayne “Jake” Jacobsen, Garretson

Gary Sandholm, Hartford

Adam Lund, Humboldt

Gerry Karpen, Sherman

Don Johnson, Valley Springs

Joe Anderson, At-Large

Eric Krouse, At-Large

Cindy Heiberger, Minnehaha County Commission

LCEDA and MCEDAin cooperation with the

Sioux Falls DevelopmentFoundation

Commerce Center, 200 North Phillips Avenue PO Box 907, Sioux Falls, SD 57101-0907Phone 605-339-0103, Fax 605-339-0055

Toll Free 800-658-3373www.siouxfallsdevelopment.com/regional

Lincoln County Economic Development Association

Board of Directors 2014

Minnehaha County Economic Development AssociationBoard of Directors 2014

Jenni White, President, Tea

Todd Nelson, Secretary-Treasurer, At-Large

Bob Lier, Canton

Andrew Pietrus, Harrisburg

Greg Stack, Interim, Lennox

Amanda Mack, Worthing

Brad Howard, At-Large

Eric Pauli, At-Large

David Gillespie, Lincoln County Commission

FOur organizations are about achieving goals

www.siouxfallsdevelopment.com/regional

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PRESIDENT’S MESSAGEMCEDA

L

BalticBaltic added two new single-

family homes, with attractive lots stillavailable for the construction of additional houses in this communityof 1,175. Baltic also completed stormsewers and streets in the Valley Viewaddition, preparing for additional residential construction in this grow-ing Minnehaha community. In 2014,60 building permits were issued, with$715,200 in total construction activity.

Dell RapidsDell Rapids, with a population of

3,728, issued 173 building permits at a total valuation of nearly $5.6 million.The city was involved with two majorinfrastructure projects in 2014, the$2.3 million Garfield Avenue Bridgereplacement, constructing a newbridge in the same architectural styleas the original, and a sewer project toservice an 80-acre future developmentpark.This $1.2 million project extendssewer service to the southeast cornerof Dell Rapids and opens up potentialdevelopment for industrial and com-mercial use as well as future housing.

BrandonBrandon, with a 2014 population

of 9,248, issued 377 building permitsat a valuation over $15 million, with a total of 64 new single-family homesbuilt this year. Planning is underwayon a new road for future developmentof 60 acres still available in theBrandon and Corson DevelopmentParks. The nearly $1 million BuildingBlocks Child Care and Learning Center addition was completed during2014, along with the construction ofthe new Dollar General store and theHelping Hand Assisted Living addition.Construction continues on theBrandon Valley Intermediate School.

ColtonColton, population 680, made

significant improvements in community amenities during 2014, continues to maintain essential

GarretsonGarretson, with a current

population of 1,166, issued 36 build-ing permits during 2014, totaling nearly$2.6 million. The Garretson SchoolDistrict completed construction of anew bus barn and the commercial sector has seen extensive renovationsduring the past year. Four new homeswere built, and the housing markethas been strong, with available homesbeing sold quickly.

HartfordIn Hartford, 138 permits were

issued during 2014, with a valuation ofover $7.4 million, including 19 newsingle-family homes and six apartmentsunder construction. Community projects include a new sports complexthat will be ready next spring, completion of a new access road to accommodate development of 26 acresalong I-90 and plans for swimmingpool and bike trail expansions. A newevent center has opened next to theAmericInn construction project, theelevator completed a new feedmill, the Hartford BP has been remodeledinto an expanded Coffee Cup Fuel Stop and the city has approved plansfor a new mixed use building withcommercial on the ground floor andapartments on two floors above.

CrooksIn Crooks, 98 building permits

were issued in 2014 at a total valuationof $1,783,913 and four new single-family homes were built. Nine additional lots were developed in late2013 and all but two have been sold in this community of 1,300. NewHope Chiropractic is currently con-structing a 2,000 square foot buildingthat will offer 800 square feet of rentalspace. Dr. Dan Schlueter hopes tomove in to his new clinic in November.The City of Crooks was awarded a$60,000 Recreational Trails Grant forthe Sunset Park Walking Path project.The volunteer ball association doubledthe size of its flag football league andis dedicated to giving area youth base-ball and softball opportunities. CrooksMunicipal Gas, serving Crooks, Rennerand rural Sioux Falls, continues togrow with added commercial and residential customers.

MCEDA Minnehaha County 2014 Community Profiles

Marmen Energy acquired additional land in2014 for wind tower component storage.

The Garfield Avenue Bridge replacement inDell Rapids will echo the historic design.

infrastructure for community growthand attract new residential construc-tion. Activity for 2014 shows 28 building permits, including two newsingle-family homes, with a total valuation over $662,000.

Construction continues on the Brandon Valley Intermediate School.

Building Blocks Child Care expanded in 2014.

Construction is well underway for the newAmericInn adjacent to I-90 in Hartford.

www.siouxfallsdevelopment.com/regional

CantonCanton, with a population of

3,165, saw 64 building permits issuedin 2014, with a total valuation of $5.4 million. Four new single-familyhomes were built this year and thecommunity welcomed Bomgaar’sretail operation to town, in addition toa $3.5 million expansion at the localSanford hospital and a $560,000,20,000 square foot expansion atJohnson Feed.

HarrisburgThis year, 59 single-family homes

were built in Harrisburg, now with apopulation of 5,200. Harrisburgapproved 271 building permits with atotal value of over $18 million in 2014, $16.5 million of which was forresidential construction. Added thisyear to the community were 8 multi-

LennoxDuring 2014, Lennox, with a pop-

ulation of 2,110, issued 106 buildingpermits with a valuation of nearly$3.7 million. Five new single-familyhomes were constructed, and a SafeRoutes to School project was com-pleted. In commercial construction,Dakotaline Snares began operations inthe former Main Street lumberyard,Cow Bells Café completed a remodel-ing project and Sioux Steel announcedan expansion adding 20 new jobs. Anew community welcome sign wasbuilt this year, and an addition is being constructed at the middle school. Worthing

Worthing, with a population of1,000 people, issued 29 building permits during 2014. The city alsocompleted a $327,535 project to add2,780 feet of sidewalk this year, capping the completion of water,sewer, utilities and sanitary sewerimprovements on three blocks aroundthe Worthing Elementary School.

TeaTea issued 161 building permits

for a total valuation of $4.5 millionand saw the construction of 21 newsingle-family homes. With a 2014 population of 4,300, Tea welcomedmany newcomers this year, includingDeGeest Steel Works, Risen Savior

LCEDA Lincoln County 2014 Community Profiles

HumboldtIn Humboldt, 16 building permits

with a valuation of $1.376 millionwere issued in 2014. The local Farmer’sElevator expanded, with a new officeaddition and new storage bins. A newaddition is planned for the HumboldtWest Central Elementary School, estimated at $500,000, and new community storage facilities are beingbuilt in the new year.

ShermanSherman remains a stable com-

munity with homes and businessesbeing updated as needed. With nearly100 residents, commercial activity inneighboring communities, along with another successful year in theagribusiness sector, provide Shermanwith a solid employment base.

Valley SpringsValley Springs, with a population

of 760, saw three new single familyhomes built during 2014, along with31 building permits with a total valua-tion of $366,700. This MinnehahaCounty community continues to maintain its essential infrastructure toattract new businesses and population.

family buildings with 81 dwellingunits. The new City Hall was completed and occupied this year, and commercial construction includedthe new Game Changer restaurant and the completion of Perfect PracticeSports Academy.

Perfect Practice in Harrisburg provides areateams with an indoor practice facility.

Harrisburg City Hall opened in 2014 makingaccess to city offices more convenient.

Specialized Machine opened a production facility near Tea, creating three new jobs.

Dakota Grill opened in Tea, increasing the local dining options.

Dakota Plains Dairy plans to bring 35 new jobs to its southern Lincoln County site.

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Lutheran Church, Embrace Church,Dakota Grill, Driver Websites, LaurieBelle’s Boutique, Uptown Casino,Specialized Machine and PerspectiveHealth Chiropractic and Wellness. TheTea Soukup Addition was declaredCertified Ready and is currently underconstruction with the installation ofinfrastructure and roads, preparing towelcome its first businesses.

Photo provided by Sioux Dairy Equipment, Inc.

www.siouxfallsdevelopment.com/regional

Counties post 2014 sales tax jumps

City/County55%

UtilityCompanies

30%

Banks13%

MCEDA Investor Income

$108,700

LCEDA Investor Income

$81,475

The unincorporated area of Minnehaha County registered 317 building permits totaling$25.2 million in constructionvalue. That included 27 newhomes built “out of town” andanother 214 that recorded remod-eling or additions. Agriculturalconstruction was at $3.1 millionand other commercial building was valued at $5.2 million.In Lincoln County’s unincorporated area, 230 permitswere issued, with a total valuation of $44.4 million. Thisyear, the county saw 28 new homes built and 117 housesremodeled, with 51 commercial structures added in theunincorporated area. Ag was the leader in Lincoln County,as 10 of the top 11 largest projects of 2014 were ag-related,led by the permit for the new Dakota Plains Dairy. Thisillustration of the consistent growth of our counties—inareas we too often overlook when counting our economicdevelopment gains for the year—is as dramatic as thebusiness growth in our communities.

Those businesses are expanding, too, as you will see from our cover story in this report. During 2014, I met with 23 companies to discuss their expansion plans.Eight of those operations completed an expansion in 2014,representing a collective investment of more than $10.5 million and creating 158 new jobs. Four more arepoised to expand in 2015. That level of confidence,expressed in capital investment, expansion constructionand job growth, encourages other companies to relocateand expand in our two counties.

Your participation and support of the work of MCEDAand LCEDA help make the successes we see possible.Through our partnership for progress, we are building abetter future for our communities and our state.

EXECUTIVE DIRECTOR’S REPORTLCEDA AND MCEDA

he partnership for progress that marks LCEDA and MCEDA focuses most often on our member communities. But it is important to remember that

our investors include area utility companies, banks andassociate members—and those partners are regional intheir service and their economic development goals.

You will find short synopses of the growth in ourmember communities in this report. I would like to spotlight some of the growth numbers that complementthose statistics—numbers that reflect the commercialgrowth in the unincorporated areas of our counties. We are all working to increase the numbers of jobs, the amount of capital investment and the access to opportunity that new and expanding companies represent,whether or not they are located within the city limits ofour member communities.

Investor Income Apportionmentales tax collections recorded by the State of South Dakota during 2014 paint a picture of strength in the retail sector in Minnehaha and Lincoln

Counties. According to the Department of Revenue,Business Tax Division, both counties posted excellentgrowth in taxable sales during the past fiscal year. For theyear, the state has posted FY 2014 taxable sales against 2013 showing $182 million in the LCEDA member communities and $280 million in MCEDA communities.

Leading Lincoln County was Worthing, with a percentage increase of 23.5% in 2014, while in MinnehahaCounty, Baltic recorded an increase in sales tax collectionsof 24.2% in taxable sales, with many MCEDA communitiesin the 10% growth range. Countywide, sales tax collectionswere up 10.98% in Minnehaha County and 12% in LCEDAmember communities. Retail, commercial and residentialincreases are consistent indicators of the economic growthin our two-county area.

Total county projects show economic strength of our region

the top 11 commercial permits was not an ag-related business. In Minnehaha County, 36 permits were issued in the unincorporated area for agriculture development, totaling $3.1 million.

“Throughout our area, from Dell Rapids to Canton, 2014 was a year of the constant activity that is the hallmark of economic success,” Fosheim said.“Businesses and families continue to see the oppor-tunities and advantages of growing in Minnehaha and Lincoln Counties. We look for 2015 to be an equally strong year for our region’s economy.”

By Nick Fosheim, nickf@siouxfalls.com

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Associates 2%City/County40%

UtilityCompanies

46%

Banks12%

Associates 2%

www.siouxfallsdevelopment.com/regional

Diversity illustrates strength Continued from page 1...

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Partnership For Success

City of Canton

Canton EconomicDevelopment Corporation

City of Harrisburg

City of Lennox

Lennox Area Development Corporation

City of Tea

City of Worthing

Lincoln County

Farmers State Bank, Canton

First Bank & Trust, Canton

The First National Bank in Sioux Falls,Harrisburg

Home Federal Bank, Canton & Lennox

Reliabank, Tea

Security Savings Bank, Canton

Valley Exchange Bank, Lennox & Tea

East River Electric Cooperative

Lincoln County Rural Water System, Inc.

MidAmerican Energy Company

Midcontinent Communications

Southeastern Electric Cooperative

Xcel Energy

City of Baltic

City of Brandon

City of Colton

City of Crooks

City of Dell Rapids

City of Garretson

Hartford Area Development Corporation

City of Humboldt

City of Sherman

City of Valley Springs

Minnehaha County

First Bank & Trust, Garretson

The First National Bank in Sioux Falls, Baltic, Brandon & Dell Rapids

Home Federal Bank in Brandon,Crooks, Dell Rapids & Hartford

Reliabank, Hartford & Humboldt

US Bank, Colton & Hartford

Wells Fargo Bank, Brandon & Dell Rapids

Alliance Communications, Baltic & Garretson

East River Electric Cooperative

Golden West Telecommunications, Dell Rapids & Hartford

MidAmerican Energy Company

Midcontinent Communications

SDN Communications

Sioux Valley Energy

Xcel Energy

Lincoln County EconomicDevelopment Association

INVESTORS

Minnehaha County EconomicDevelopment Association

INVESTORS

Sanford Health

Sayre Associates, Inc.

Infrastructure Design Group, Inc.

Beck & Hofer Construction

Stockwell Engineers, Inc.

Runge Enterprises, Inc.

Sands Drywall, Inc.

Bender Commercial

Costello Investment, LLC

NAI Commercial Real Estate

Myrl & Roy’s Paving, Inc.

LCEDA and MCEDAAssociate Member INVESTORS

Individuals, businesses and corporations that have an interest

in the continued growth of Lincoln and Minnehaha Countiesthrough economic development can become Associate Members.

For more information aboutMembership, please contact

Executive Director Nick Fosheim at 605-339-0103 or emailnickf@siouxfalls.com.

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Thank You!The Boards of Directors wish to recognize the generous support of our investors who make our economic development efforts in Lincoln and Minnehaha Counties possible.