Building for Tomorrow

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1 Building for Tomorrow Lincoln and s 2015 Annual Report

Lincoln County Board of Directors 2015 Jenni White, President, Tea Eric Pauli, Vice-President, At-Large Todd Nelson, Secretary-Treasurer, At-Large Bob Lier, Canton Andrew Pietrus, Harrisburg Greg

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

com Solid projects, enhanced communication mark year of growth From hotels to houses, distribution centers to digital media, manufacturers to a megasite, 2015 was an exciting year in Lincoln and

2 Lincoln County Board of Directors 2015 Jenni White, President, Tea Eric Pauli, Vice-President, At-Large Todd Nelson, Secretary-Treasurer, At-Large Bob Lier, Canton Andrew Pietrus, Harrisburg Greg Stack, Lennox Amanda Mack, Worthing Brad Howard, At-Large Dan King, Lincoln County Commission LCEDA and MCEDA PO Box 907, Sioux Falls, SD Phone , Fax Toll Free Board of Directors 2015 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 Jeff Barth, Commission By Nick Fosheim Solid projects, enhanced communication mark year of growth From hotels to houses, distribution centers to digital media, manufacturers to a megasite, 2015 was an exciting year in Lincoln and Minnehaha Counties. The range of new projects announced during the year showed the strength and diversity of our regional economy, as schools grew, companies expanded and new businesses opened in our member communities. Many of those projects were reported in the pages of County Perspectives, our quarterly newsletter, and in the Community Connections e-report. Good communications and regular reporting on economic activity throughout the two-county area were goals for 2015, and your response to the information posted in our publications and social media contacts indicate that we met those goals. We plan to do even more in the upcoming year to keep you informed about regional development and the work of LCEDA and MCEDA. By the numbers, the year was one of excellent progress, with 113 new jobs created. Companies invested $20 million in 2015, constructing 187,000 square feet of commercial space. Seven major projects have been completed or are under construction in our two counties, and more are scheduled for EXECUTIVE DIRECTOR S MESSAGE Planning for the future was a big part of the past year, as we hosted eight companies who are looking ahead. We provided information and maintained contact on 34 projects, ten of which are expansions of South Dakota companies. Our partnership with the Governor s Office of Economic Development brought eight inquiries to our attention, and brokers referred an additional five projects. Keeping established businesses growing in our region is equally as important as encouraging new companies to locate here. During the past year, we conducted 17 business retention and expansion visits with local firms, determining their current situations and exploring the possibilities for future growth. Our organizations remain strong, fiscally sound and very active in maintaining our relationships with local governments and community-based economic development groups. Thanks to the dedication of our volunteer boards of directors and elected officers, we continue to refine our purpose and move forward with our strategic planning process was a good year we re already working to ensure even more success for 2016.

REPORT from the PRESIDENTS Jenni White Mike Wendland The GrandStay Hotel & Suites was constructed this year in Tea.

Development Association and the Economic Development Association LCEDA and MCEDA has set the standard for regional economic development in

Our efforts have helped to make our two counties among the fastest growing regions in the US and have fueled consistent economic success for

We have been joined in this effective partnership by the Sioux Falls Development Foundation, the Governor s Office of Economic Development

By working together, avoiding redundancy and leveraging our efforts to build the economy, our organizations have remained recognized leaders

As we advance through the second decade of the 21st century, we are met with new challenges, new opportunities and new economic realities

We have achieved much in our first quarter century of partnership; we can do even more.

prepare action plans that will provide new levels of opportunity for our communities and our people.

3 REPORT from the PRESIDENTS Jenni White Mike Wendland The GrandStay Hotel & Suites was constructed this year in Tea. Strength of partnership powers exciting new strategies For well over two decades, the strong partnership between the Lincoln County Economic Development Association and the Economic Development Association LCEDA and MCEDA has set the standard for regional economic development in South Dakota. Our efforts have helped to make our two counties among the fastest growing regions in the US and have fueled consistent economic success for our member communities. We have been joined in this effective partnership by the Sioux Falls Development Foundation, the Governor s Office of Economic Development and local governments, volunteer development organizations and citizens in growing communities throughout our counties. By working together, avoiding redundancy and leveraging our efforts to build the economy, our organizations have remained recognized leaders in regional development. We are not content to rest on our laurels. As we advance through the second decade of the 21st century, we are met with new challenges, new opportunities and new economic realities that test our achievements and drive us to raise the bar on economic success. We have achieved much in our first quarter century of partnership; we can do even more. That is why we have embarked on a new strategic planning process that will help us identify new goals, understand those new challenges and prepare action plans that will provide new levels of opportunity for our communities and our people. Economic development does not exist to meet the needs of today, but to plan for a brighter tomorrow. Under the leadership of our board members, along with executive director Nick Fosheim, we will develop strategic initiatives for our two counties that will shape our growth. We are excited to begin this process, which will take several months and involve people from every corner of Lincoln and Minnehaha Counties. We will learn much and act on our new knowledge. Working together, we will do even more in our next quarter century of partnership! A new home recently built in one of Baltic s growing neighborhoods. Jenni White, President Lincoln County Mike Wendland, President

2015 Building Permits in Unincorporated Areas

23 million in construction value 45 new homes

23 million in construction value 40 new homes

business in the industrial park in Harrisburg.

community works to expand its housing options.

continued to expand its community sports

Dakota Traffic Services began operations in a

Tea. Multi-family home construction, such as

Coffee House, Weisser Distributing, Sabers

39 single-family homes were built, along with

4 2015 Building Permits in Unincorporated Areas Lincoln County FY 2015: 251 total permits $36.23 million in construction value 45 new homes FY 2015: 588 total permits $43.23 million in construction value 40 new homes Housing construction was a major component of growth in Lennox during Carolan Rental & Inflatable Fun opened for business in the industrial park in Harrisburg. Harrisburg saw the construction of 65 single-family homes this year. The community approved 294 building permits with a valuation of $12.5 million in residential construction and another $15.6 million in commercial construction. Lennox experienced $1.45 million in residential construction and $891,958 in commercial construction during 2015, spread over 123 projects. Six new homes were built this year, as the community works to expand its housing options. Canton saw 64 building permits for 2015, with a residential valuation of $2.26 million and commercial valuation of $672,350. During the year, ten new single-family homes were built Commu Lincoln County The City of Tea continued to expand its community sports complex during the past year. Dakota Traffic Services began operations in a new facility in the Soukup Industrial Park in Tea. Multi-family home construction, such as this project in Tea, was an important growth segment during Tea welcomed the GrandStay Hotel, Jimmy s Coffee House, Weisser Distributing, Sabers Insurance, Koch Insurance and DTS this year. 39 single-family homes were built, along with 78 multi-family units. 206 building permits were issued, valued at over $14 million in residential and $9.5 million in commercial. Agile Manufacturing began distributing Miller Loaders in its new building at the Worthing exit. Worthing experienced over $514,000 worth of construction in 2015, spread over 18 new projects. Two new homes were built as the community works to continue its steady growth in commercial and residential development.

5 Baltic with a population over 1,100, added seven new single-family homes, with attractive lots still available. This year, 43 building permits were issued, with $1.7 million in total construction activity approved. nity Profiles Brandon issued 368 building permits with a commercial valuation of $10.5 million. A total of 37 new single-family homes and four twin homes were built, with $8.35 million being spent in residential construction in Colton Construction activity in Colton for 2015 included 14 building permits, with $78,420 in residential construction and $44,500 in commercial construction during the past year. Garretson issued 97 building permits during 2015, totaling over $800,000 and gained one new single family home. The city saw considerable repair and reconstruction activity in the wake of a strong wind storm in June. Scooter s Coffee and Brandon Pharmacy opened in a new building this year. Hartford issued 152 permits, valued at nearly $5 million in residential construction and $2.6 million in commercial construction during 2015, with 20 new single-family homes and 14 multi-family units built. Completed this year were the first mixed use building and the first structure in the new industrial park. Humboldt In Humboldt, the total value of building permits for 2015 was $378,300 for 16 permits. One new home was built along with home improvement projects throughout the community. Commercial construction included new storage units and an expansion at the Main Street Bar. AmericInn near I-90 in Hartford was completed this year. Vista Crossing is Hartford s first mixed use project. Dell Rapids issued 472 building permits in 2015, with $8.9 million in residential construction and nearly $4 million in commercial construction. Dell Rapids neighborhoods added 14 new single-family homes and the city continued infrastructure improvements. Crooks issued 78 building permits at a valuation of $854,745 in residential construction and $19,300 in commercial construction. Three single-family homes were built in 2015, along with numerous remodeling and smaller projects. Valley Springs issued 27 building permits in 2015, with valuations of $474,700 for residential construction including three single family homes and commercial permits with a valuation of $88,000 issued this year. Sherman the smallest member community in the Minnehaha County Economic Development Association, continues to improve its residential base and focus on infrastructure improvements. New homes are being built in the southwest corner of Valley Springs. Ace Hardware opened for business in Dell Rapids.

Growth means OPPORTUNITY By Mary Medema, Workforce Development Director The LCEDA & MCEDA Annual Report highlights many reasons to celebrate the continued growth and many improvements taking place in

Economic developers have long recognized the importance of job opportunities as the primary catalyst for growth. Individuals have to be able to picture themselves having a successful life.

that companies are successful and are looking to expand their operations.

It is important to get in touch and stay in touch with this special, talented population.

Now, more than ever, it will benefit our region to help our students complete the next step(s) of their training or education beyond high school.

New avenues for communities or businesses to provide scholarships and/or sponsorships are being introduced all of the time.

school days. $8.8 million increase One measure of economic growth that illustrates the confidence of local residents is the annual taxable sales report.

According to the South Dakota Department of Revenue, Business Tax Division, the combined growth for the two-county area was nearly 2%, with sales tax collections up $8.8 million.

Leading Lincoln County was Tea, with a 21% increase in 2015, and Worthing, up 14.6%. Leaders in were Baltic, up 10.6%, and Humboldt, logging an increase of nearly 6%.

6 Growth means OPPORTUNITY By Mary Medema, Workforce Development Director The LCEDA & MCEDA Annual Report highlights many reasons to celebrate the continued growth and many improvements taking place in our region. To the current and future workforce, that ongoing growth and improvements communicate OPPORTUNITY. Economic developers have long recognized the importance of job opportunities as the primary catalyst for growth. Individuals have to be able to picture themselves having a successful life. We may see the opportunity to begin one s career, to put a new skill or degree to work close to home, to advance one s career or to take a longer look at relocation to our area, where it is evident that companies are successful and are looking to expand their operations. When we think about sharing the story of opportunity in our communities and in our region, we don t often pause to recognize that nearly 3,000 of the 250,000 residents in our MSA became high school graduates this past May. They are already a few months into their post-high school life, many having joined other area graduates currently studying in universities and technical institutes throughout the region. It is important to get in touch and stay in touch with this special, talented population. Share the economic successes in your community with them so that they will know what they need to know about economic development and opportunity where we live. Now, more than ever, it will benefit our region to help our students complete the next step(s) of their training or education beyond high school. These students already have community pride and a familiarity with the people and the place. New avenues for communities or businesses to provide scholarships and/or sponsorships are being introduced all of the time. As our area graduates transition from student to career, whenever that might take place, we will have shared the message of opportunity and demonstrated our support for them long after those high school days. $8.8 million increase One measure of economic growth that illustrates the confidence of local residents is the annual taxable sales report. Businesses in Lincoln and Minnehaha Counties continued to show solid growth in sales tax collections during According to the South Dakota Department of Revenue, Business Tax Division, the combined growth for the two-county area was nearly 2%, with sales tax collections up $8.8 million. Sales taxes in totaled $269 million, while Lincoln County sales tax numbers in 2015 were $201.7 million, an increase of 10.82% over Leading Lincoln County was Tea, with a 21% increase in 2015, and Worthing, up 14.6%. Leaders in were Baltic, up 10.6%, and Humboldt, logging an increase of nearly 6%. These numbers illustrate that our region s retail, commercial and residential growth is continuing to trend upward. Investor Income Apportionment Associates 3% Utility Companies 44% MCEDA Investor Income $111,225 City/County 39% Banks 14% Utility Companies 30% Banks 13% LCEDA Investor Income $85,450 Associates 2% City/County 55% Gross Domestic Product shows region is growing faster During the last year for which full data is available, the Sioux Falls metropolitan statistical area (MSA) registered a higher rate of growth than either the state of South Dakota or the United States as a whole. Sioux Falls MSA $18.3 billion GDP 4.1% growth from South Dakota $45.9 billion GDP 2.7% growth U.S. $17,316 billion GDP 3.9% growth from Source: U.S. Bureau of Economic Analysis Frontier Elementary, newest school in the Tea district. 566 more kindergarteners School districts in LCEDA and MCEDA communities are showing enrollment increases not just on an annual basis from people relocating to our area, but in the number of young students compared to graduates. The number of graduating seniors in the districts of Lincoln and member communities this year is expected to be 836. Kindergarten enrollments in those same districts is 1,402 for this school year, a difference of 566 students. The total two-county K-12 enrollment in 2014 was 14,594. As a measure of community growth and the confidence young families have placed in making homes in the region, these school enrollment numbers are very significant.

PLANNING FOR THE FUTURE What s ahead for LCEDA and MCEDA The Leeco Steel building under construction near Brandon.

to showcase specific sites and provide local information.

Emphasize certifying sites and focused marketing efforts. Give communities an opportunity to customize the marketing of their unique industrial sites. Enhance branding at the regional level.

In order to maximize our contacts that could initiate from a web search, we will make our online presence a priority in 2016.

Working closely with the Sioux Falls Development Foundation to integrate LCEDA and MCEDA into a regionally-focused website.

Strategic Planning Process Planning, along with partnership and persistence, is one of the keys to successful economic development.

7 PLANNING FOR THE FUTURE What s ahead for LCEDA and MCEDA The Leeco Steel building under construction near Brandon. Industrial Park Marketing One of the most important tools for presenting community availability for development and business expansion, the Industrial Park Marketing Packets give us the opportunity to showcase specific sites and provide local information. We will make regional upgrades to our packets in 2016, as we: Form strategic partnerships to give a facelift to the Industrial Park Marketing Packets. Emphasize certifying sites and focused marketing efforts. Give communities an opportunity to customize the marketing of their unique industrial sites. Enhance branding at the regional level. Website Improvements Since most economic development searches start online, an effective, functional, informative website is more important than ever. In order to maximize our contacts that could initiate from a web search, we will make our online presence a priority in Plans include: Updating economic data and information from communities to make web content current and accurate. Working closely with the Sioux Falls Development Foundation to integrate LCEDA and MCEDA into a regionally-focused website. Streamlining site selection information to put our best foot forward as a region. Strategic Planning Process Planning, along with partnership and persistence, is one of the keys to successful economic development. LCEDA and MCEDA have begun a strategic planning process that will create an action agenda to bring a shared vision to our regional constituencies and enhance our regional partnership for progress. The process involves four steps to be implemented during 2016: A convening team of three to four members from each board will coordinate details of the process. Using the World Cafe model of small, focused groups, a series of community-based conversational meetings will be held to discuss economic development topics and priorities. A gathering of community leaders in a facilitated open space meeting to explore specific ideas and invite more participation in the process. Board members from both organizations will meet jointly for a collaborative strategic action retreat, emerging with specific action areas, project concepts, implementation plans and progress measurement tools. Bartmann Building in Hartford s Western Meadows Industrial Park. Legacy Electronics purchased their building in Canton this year.

Investors Lincoln County Economic Development Association City of Canton Canton Economic Development Corporation City of Harrisburg City of Lennox Lennox Area Development Corporation Sioux Falls

and Lennox Reliabank, Tea Security Savings Bank, Canton Valley Exchange Bank, Lennox and Tea Wells Fargo Bank East River Electric Cooperative Lincoln County Rural Water System, Inc.

8 Investors Lincoln County Economic Development Association City of Canton Canton Economic Development Corporation City of Harrisburg City of Lennox Lennox Area Development Corporation Sioux Falls Development Foundation 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 and Lennox Reliabank, Tea Security Savings Bank, Canton Valley Exchange Bank, Lennox and Tea Wells Fargo Bank East River Electric Cooperative Lincoln County Rural Water System, Inc. MidAmerican Energy Company Midcontinent Communications Southeastern Electric Cooperative Xcel Energy Economic Development Association 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 Sioux Falls Development Foundation City of Valley Springs First Bank & Trust, Garretson The First National Bank in Sioux Falls, Baltic, Brandon and Dell Rapids Home Federal Bank in Brandon, Crooks, Dell Rapids and Hartford Reliabank, Hartford and Humboldt US Bank, Colton and Hartford Wells Fargo Bank, Brandon and Dell Rapids Alliance Communications, Baltic and Garretson East River Electric Cooperative Golden West Telecommunications, Dell Rapids and Hartford MidAmerican Energy Company Midcontinent Communications SDN Communications Sioux Valley Energy Xcel Energy LCEDA and MCEDA Associate Members Individuals, businesses and corporations that have an interest in the continued growth of Lincoln and Minnehaha Counties through economic development can become Associate Members. For more information about Membership, please contact Executive Director Nick Fosheim at or GOLD Beck and Hofer Construction DGR Engineering Infrastructure Design Group, Inc. Sanford Health Sayre Associates SILVER Dakota Business Finance Runge Enterprises Sands Drywall Southeastern Development Foundation Stockwell Engineers 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. BRONZE Bender Commercial Real Estate Services Costello Companies Myrl & Roy s Paving, Inc. NAI Sioux Falls Commercial Real Estate Peska Construction, Inc.

Building for Tomorrow

Building for Tomorrow Lincoln and s 2016 Annual Report Lincoln County Board of Directors 2016 Eric Pauli, President, At-Large Eric Saugstad, Vice President, Worthing Todd Nelson, Secretary-Treasurer, At-Large