Faulkton’s motto is “We Believe in Possible”, but it takes resources to get the work done. Faulkton Area Economic Development Corporation was awarded the Economic Development Partnership Program (EDPP) grant in 2014. This brought initial funding for a part-time economic development director and then in 2016 this position was elevated to a full-time position. With many large projects moving forward in Faulkton, like a 24 lot housing development and the creation of a new industrial park, a full-time economic development director is vital. Without the partnership with GOED and the EDPP grant, these small community successes would not have been possible.
Along with the EDPP grant award, Faulkton Area Economic Development Corporation was successful in 2016 to be awarded a $384,000 Local Infrastructure Improvement Program grant (LIIP) for the development of an industrial park which Faulkton has never had in the community. This project would not have been possible without the support of GOED. We are excited to get this industrial park developed and to bring new businesses and jobs to our community.
The new hospital in Milbank is a catalyst for future economic growth and the scope of our current project is far reaching. The new hospital has been built on 18 acres of acquired land that is now the site of a state-of –the- art medical campus. The new campus includes several departments that were shared previously, creating new jobs. The new facility also encourages retention and recruitment of highly qualified medical professionals as well as professionals in other areas.
Infrastructure is a critical piece to growth in rural communities. Grant County Development Corporation’s Local Infrastructure Improvement Program award of $250,000 had a direct impact on not just the hospital infrastructure but other future growth as well. Directly adjacent to the new hospital site are 40 acres of land that is currently on the Rural Water System. Building the hospital at this specific location has opened the door for future residential housing expansion as well as commercial growth. Before the infrastructure award, expansion was at a standstill in Milbank because the lines carrying sewer/water were not sufficient to support future growth. Opening up this section of land in Grant County will pave the way for future economic development and jobs. The northeast section of this land is positioned along Highway 12 and potential investors have already expressed interest in development of this land because the infrastructure is in place.
In September 2013, the City of Sturgis was awarded a $244,357 match grant from the Local Infrastructure Improvement Program. This economic development grant was approved during the first round of funding from the Building South Dakota Fund.
As a result of these funds, the City of Sturgis was able to extend utilities – water, sewer, electric, gas – to a newly annexed portion of the City. It supported the immediate development of Belle Joli Winery, South Dakota’s first and only “sparkling wine” production facility. This $1 million project created 10 new jobs and today is a major year-round tourist draw. Belle Joli also enhances South Dakota’s value-added ag sector as grapes from the Belle Joli vineyard are used to produce their sparkling wines.
Having this infrastructure in place also facilitated the development of Canyon View Estates, a 19-unit residential project. This $3.2 million development offers 5 single family and 14 twin home units starting at $175,000 to meet Sturgis’ growing workforce housing demand. This housing development significantly enhances property values and tax revenues. The infrastructure also supports the new 6,000 sq. ft. fitness club under construction adjacent to Canyon View Estates. Developers are now considering a mixed-use development for the adjoining 45-acre parcel.
Through the Local Infrastructure Improvement Program, the City of Sturgis has been able to fast-track economic development projects that have increased year-round tourism sales tax revenues, as well as, property tax dollars generated from residential and commercial growth, making Sturgis a stronger community.
ENspired, the entrepreneur network program supporting the idea generators and business start-ups in the Brookings Area, is having an impact because of the $84,000 investment made by the Building South Dakota Fund. By providing a systematic approach we are able to directly support entrepreneurs as well as grow the entrepreneurial ecosystem. The program provides networking events, services, training, equipment and other resources which allow opportunities for entrepreneurs to advance their idea or business. The Director of Entrepreneur Support, Jennifer Quail, partners with SDSU and works directly on programs and outreach with numerous groups.
As a result of ENspired, the Brookings Area MAKERSPACE was also opened in 2016 as a nonprofit, shared community space to support innovation, experimentation, collaboration, and lifelong learning. The MAKERSPACE provides affordable access to unique space and specialized equipment such as 3D printing and scanning, electronics, laser engraving, prototyping, woodworking and creative arts. The MAKERSPACE is an environment designed to facilitate communities for learning, connecting people and developing relationships, mentoring and creation. Jennifer was invited to represent South Dakota at a Nation of Makers event held at the White House in June.
The Brookings’ workforce development program’s goal is to create awareness of career opportunities and implement retention and recruitment strategies so that the Brookings area has an adequate supply of labor. Since hiring our Director of Workforce Development, Stacy Aesoph, in April of this year, with $133,000 in funding from Building South Dakota, we have conducted numerous meetings with local employers and initiated an employer survey to better understand employers’ workforce needs. Several programs are being initiated by collaborating with partners to help retain SDSU students and current residents.
Campbell County Wind Farm, LLC, Pollock was approved for a reinvestment payment of up to $3.88 million on May 13, 2014. The reinvestment payment was instrumental in offsetting the upfront costs resulting from the state’s sales/use tax associated with the project, greatly increasing the projects viability in comparison to other alternatives. Some impacts include:
- Estimated number of full-time jobs created by the project: 6
- Estimated average wage of the full-time jobs created by the project: $33.00/hr
- Estimated annual property taxes to be paid as a result of the project: $337,066
Day County Wind II, LLC, Groton was approved for a reinvestment payment of up to $4.42 million on Aug. 12, 2014. Some impacts include:
- Estimated number of full-time jobs created by the project: 6
- Estimated average wage of the full-time jobs created by the project: $28.12/hr
- Estimated annual property taxes to be paid as a result of the project: $750,680
Polaris Sales Inc. was approved for a reinvestment payment of $117,080 on April 8, 2014. The reinvestment payment was instrumental in offsetting the upfront costs resulting from the state’s sales/use tax associated with the project, which resulted in an increased project scope and additional job creation. Some impacts include:
- Estimated number of full-time jobs created by the project: 20
- Estimated average wage of the full-time jobs created by the project: $14.71/hr.
- Matching Workforce Development Grant of up to $14,000
Glacial Lakes Area Development was awarded a $250,000 matching grant to expand the local economic development revolving loan fund and leverage an additional $300,000 of new capital for the expansion and development of local business. Those funds have helped create a $1.3 million revolving loan fund to act as a partnership tool with local banks and other nonprofit lenders as well as be a catalyst for business development and entrepreneurship in greater Marshall County. One business supported directly with these funds was R&D Welding. R&D Welding has now grown to encompass three buildings and 12+ employees by offering truck and tractor parts and repair. This small business also has partnered with the Build Dakota Scholarship fund to attract critical workforce to the Britton area.
Arlington Community Development Corporation has received two Building South Dakota Fund Grants via the Economic Development Partnership Program. The first grant was $88,500 to hire a full-time economic development director, Jason Uphoff; the funds will supplement salary over four years. The second grant was $100,000 to supplement the ACDC Revolving Loan Fund; the funds have been deployed to three businesses in Arlington including the new Community Daycare.
This year Viborg received $41,525.00 from the Governor’s Office of Economic Development through the Economic Development Partnership Program. Viborg has always had great volunteers who are invested in the development of the town. There is however only so much that Volunteers can do. Since hiring an Economic Development Director 9 months ago the Viborg Development Corporation has been able to:
- Re-create an outdated website
- Increase social media presence through Facebook and Twitter
- Create a town logo to aid in promotion
- Work on certifying the industrial park through the states Certified Ready Site program
- Assist new businesses when moving to town by helping them find building sites and organizing utilities.
- Publicize existing businesses
- Write grants for new school playground equipment
Beadle & Spink County Enterprise Communities
The Building South Dakota Fund has been critically important for BASEC. Below are four stories of multiple successes that could not have been achieved without this legislation:
A group of individual investors in Doland recognized that the need for workforce rental housing was going to outpace what the Doland Housing Development Group could accomplish in the near future. This group of investors began planning an affordable, handicapped accessible triplex. Working with the City, they were able to acquire a lot for their project. Then, they applied and received a $139,379 grant from the SD Housing Opportunity Fund. Together three funding sources (SDHOF, BASEC, and Investor Equity) made it possible to build and fully occupy what is now called the Doland Triplex. One of the residents living in these units is a rural lawyer recruit from North Carolina and she is practicing law in Redfield. This triplex model has the potential of being replicated in Iroquois and Tulare, two other BASED communities. However, without continued funding for the housing opportunity fund, this development will not be possible.
A $43,000 infrastructure grant from the Local Infrastructure Improvement Program has sparked the creation of a new 44 acre industrial area in Doland. The City of Doland initially owned seven acres. Two businesses, a concrete business and a propane delivery service, wanted to build in that area, but there was a lack of water/sewer. Now, because of the infrastructure improvements, a private business bought an additional connecting 37 acres within the city limits and has constructed a trucking company which also spurred a new storage unit business. The future of the Doland industrial area looks bright with another two or three businesses interested in building in this location along Highway 212.
BASEC received a $137,500 housing opportunity fund grant to match with their growing loan fund in order to create a local housing rehab program. Old homes in rural communities that are not well-maintained risk falling off the market and become local eye sores. BASEC had identified several residents with moderate incomes living in older homes that were falling between the cracks and couldn’t afford the necessary improvements or qualify for other low-income rehab programs serving the region. This loan/grant match program is for structural improvements to the homes. Preserving old housing stock is critical to our rural communities so quality housing will continue to be available for future generations.
BASEC’s small business lending pipeline showed they would be out of loan funds by the end of the year. The Economic Development Partnership Program awarded a $250,000 grant to BASEC to continue affordable small business lending in the region.