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 Bob Lier, Canton Andrew Pietrus, Harrisburg Amanda Anglin, Lennox Jenni White, Tea Brad Howard, At-Large Dale Long, Lincoln County Commission LCEDA and MCEDA PO Box 907, Sioux Falls, SD 57101-0907 Phone 605-339-0103, Fax 605-339-0055 Toll Free 800-658-3373 www.siouxfallsdevelopment.com Board of Directors 2016 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 Richelle Hofer, Garretson Jesse Fonkert, Hartford Adam Lund, Humboldt Gerry Karpen, Sherman Don Johnson, Valley Springs Joe Anderson, At-Large Eric Krouse, At-Large Gerald Beninga, Commission By Nick Fosheim nickf@siouxfalls.com People in our member communities make regional development work Each year, as we look back on the activities of LCEDA and MCEDA, we sometimes focus on numbers rather than on the people. While economic development is measured in statistical increases and you will see in this report that we have had significant growth during 2016 it is the individual efforts and the person-to-person contacts that make our work successful. The past year was a perfect example, as our volunteer boards put in the extra time necessary to get our strategic planning process underway. They brainstormed, they communicated and they led the way in their communities to learn, listen and analyze input. We re well on our way to creating a bold new future for our organizations, and our board members are making that possible. Congratulations and thanks to all of them. New faces have joined our boards this year, bringing new perspectives and a wealth of experience. We welcome Jesse Fonkert, Hartford; Richelle Hofer, Garretson; Amanda Anglin, Lennox; Eric Saugstad, Worthing; Lincoln County Commissioner Dale Long, and Commissioner Gerald Beninga. We will be saying goodbye to retiring board members Dwayne Jake Jacobsen, Garretson and Brad Howard, both long-serving members of our EXECUTIVE DIRECTOR S MESSAGE Cover photo is an aerial view of the Brandon and Corson Development Parks by Kevin Wagner. boards. Thank you all for volunteering your time and talents to this vital effort to grow our region s economy. Our groups also benefited this year from the hard work of our summer intern, Kevin Wagner, a USD student who brought technology savvy and boundless enthusiasm to his internship. Kevin worked hard on our social media presence and was a much-needed set of hands in our summer community listening sessions. We plan to continue to enlist summer interns as an element of our staffing strategy. This year and every year, people in our organizations and people in our member communities make economic development work. As MCEDA celebrates a quarter century of service and LCEDA marks the start of its third decade of partnership, we need to recognize all the people who made these milestones possible. The list includes elected officials, volunteer board members in community development groups, confident area business owners who keep on growing and citizens who care about the future of their hometowns. Thank you in so many ways, YOU are LCEDA and MCEDA.

REPORT from the PRESIDENTS Eric Pauli Mike Wendland The first summer community listening session was held in Tea. Listening, planning, building for an even brighter future The success of the Lincoln County and the Minnehaha County LCEDA and MCEDA has always rested on the willingness of individuals community volunteers, elected officials and business leaders to participate in making our counties and our communities economically stronger. This year has been no exception, as we move through our year-long strategic planning process. Our volunteer board members have frequently convened to share their impressions of a stronger future for our organizations and our region. This summer, we held four community listening sessions, two in each county, to get your views on the strengths and opportunities of LCEDA and MCEDA. To those of you who shared your ideas with us, a very large thank you for your time and contributions. The community conversations gave us a list of items you care about, things that will make a difference in our shared future. Among them were regional planning, infrastructure development, housing, collaboration, leadership development and workforce development. You also placed an emphasis on the importance of maintaining the unique identity of our local communities and keeping lines of communication open within our region. Now it is time for LCEDA and MCEDA board members to go to work and develop a strategic plan. That plan will evaluate how we as an organization can define our role in the development of our regional economy and explore the ways we can support businesses and communities at the local level. Our organizations have a strong past MCEDA is celebrating a quarter century of service, and LCEDA is nearing two decades of economic development leadership and now we need to structure our future. We know that future will involve our partnerships with 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. Under the leadership of Executive Director Nick Fosheim, we are excited about developing new strategies to shape our growth. The future rests in our hands today. A large crowd participated in the Garretson listening session. Eric Pauli, President Lincoln County Mike Wendland, President

2016 Building Permit Totals* Lincoln County: 966 total permits $86 million total valuation 165 new single-family homes : 1,692 total permits $89.9 million total valuation 165 new single-family homes *Totals include unincorporated areas Construction began on a new Lincoln County Highway Department maintenance building near Canton. Harrisburg built 61 single-family homes this year bringing its population close to 5,700. The community approved 342 building permits with a valuation of $12 million in residential construction and another $6 million in commercial construction. Canton saw 48 building permits, with a total valuation of nearly $1.6 million from a wide variety of projects, including the construction of six single-family homes. The new Lincoln County Highway Department maintenance building construction is going strong. A Fareway food store will be a major component of a planned retail center in Harrisburg, shown above in the artist s rendering. Lennox experienced $2.5 million in residential construction and $3.1 million in commercial construction during 2016, spread over 117 projects. Eight new homes were built this year, as the community continues to develop residential neighborhoods. 2016 Commu Lincoln County Showplace Wood Products began production in its new ShowplaceEVO manufacturing plant in Harrisburg. Construction continues to be strong in the Carl W. Soukup Addition, Tea s South Dakota Certified Ready Site. The Sunshine Food Store building, now under construction in Lennox, will also house an Ace Hardware and a Lewis Drug Store. Tea saw the construction of 38 new single-family homes in 2016, along with the addition of 14 classrooms and other amenities at Legacy Elementary. Building permits totaled 177, with a valuation of over $10.6 million in residential and $3.2 million in commercial permits. Acreage Fence is the first commercial building, now under construction, in the Worthing Industrial Park. Worthing experienced over $410,000 worth of construction, spread over 47 projects. Construction has begun in the Worthing Development Park, where 38.5 acres are being prepared for new industrial growth. Plans are being made for a new walking trail through the community.

Baltic added 11 new single-family homes in its growing developments, with attractive lots still available for construction of new houses. This year, 67 building permits were issued, with $2.6 million in total construction activity approved. nity Profiles Brandon issued 427 building permits with a commercial valuation of $3.2 million. A total of 55 new single-family homes were built, with $15.65 million being spent in residential construction in 2016. Colton Construction activity in Colton for 2016 included 26 building permits, with $125,753 in residential construction and $364,580 in commercial construction during the past year. Garretson issued 54 building permits during 2016, with total residential and commercial valuation over $1 million, with four new singlefamily homes built this year. The city has passed an opt out to grow the local school district and is working on visitor attraction. Housing continues to be a strong component of growth in Baltic. Hartford In Hartford, 133 permits were issued, with a valuation of over $5 million in residential construction and $7.12 million in commercial construction during 2016. Hartford neighborhoods added 24 single family homes this year. Humboldt In Humboldt, the total value of building permits for 2016 was over $1 million for 21 permits. Community activities from the annual August Threshing Show to Santa Day bring local residents together and draw visitors from throughout the region. Multi-family housing options are growing in Brandon with the addition of new apartments. CHS Eastern Farmers Co-op is building a new Agronomy Center near Colton. Dell Rapids issued 295 building permits with over $5.3 million in commercial construction and $6.5 million in residential construction, adding 11 new single-family homes. The city completed the $1 million Quartzite Street to the Fiegen Development Park. Crooks issued 89 building permits at a valuation of $1.3 million in total construction. Five singlefamily homes were built, along with numerous remodeling and smaller projects. The Crooks City Council is working on development plans in the Sunset Addition. Valley Springs completed a community sign project, finished the East Cliff Avenue Reconstruction project, saw new homes built in a housing development in the southwest corner of the city and is working on a Safe Routes to School project. Sherman the smallest member community in MCEDA, had an uptick in home improvement activity.the community sponsored fundraising events throughout the year to purchase and install playground equipment in a newly developed park. Central States Manufacturing built an expansion at its Hartford operation. Midwest Fresh Logistics is the first commercial enterprise in the new Fiegen Development Park in Dell Rapids.

Proud to partner with regional development leaders By Scott Stern, Commissioner, Governor s Office of Economic Development South Dakota has always been a place where people work together to achieve common goals. Our economic development strategy is no different. Community volunteers and state employees are all engaged in the vital task of making our economy stronger and our state the best possible place to live and work. The Lincoln and Economic Development Associations have been leading the way in regional economic development for decades and have been solid partners in the record-setting growth of this area of our state. These groups learned early on that by pulling together communities, utility companies, financial institutions, the GOED and the Sioux Falls Development Foundation, these organizations are stronger, more effective and ultimately more successful. Sharing resources, prospects and a common vision for the future is another key facet of the partnership we share with LCEDA and MCEDA. As we bring new prospects to local communities, we find business leaders willing to share their success stories and provide a personal analysis of what makes business work in our state. Our state team enjoys working with you to make things happen in Lincoln and Minnehaha Counties and throughout the region. LCEDA and MCEDA should also be proud of its efforts in the area of workforce development. These organizations are keenly aware of the importance of a quality lifestyle in growing the local population and building the regional talent pool. The communities of Lincoln and Minnehaha Counties have consistently shown their willingness to invest in infrastructure and amenities to help attract new residents. These efforts are paying off as this region of South Dakota is one of the fastestgrowing regions of the US. I congratulate LCEDA and MCEDA on another great year of growth and development. The State of South Dakota is proud to be your partner in prosperity. Two-county business growth reflected in increased taxable sales collections Regional economic development depends on growing companies showing annual increases in their business transactions. One of the surest ways to gauge that annual growth is through the Taxable Sales Collection numbers posted by the South Dakota Department of Revenue, Business Tax Division.This year the combined growth for the two-county area was over 6.5%, with taxable sales collections up $30.8 million. Taxable sales in Lincoln County totaled $202.7 million, while Minnehaha County taxable sales numbers in 2016 were $298.8 million, an increase of 11.02% over 2015. Leading Lincoln County was Harrisburg, with an 11.76% increase in 2016. Leaders in were Brandon, up 13.75%, Garretson, up 12.5%, and Hartford, logging an 11.27% increase. These numbers illustrate that our region s retail, commercial and residential growth is continuing to trend upward on an annual basis. Associates 2% Utility Companies 44% MCEDA Investor Income $117,700 LCEDA MCEDA Investor Income Apportionment City/County 39% Banks 15% Utility Companies 30% Banks 13% LCEDA Investor Income $87,600 Associates 1% City/County 56% $30.8 million taxable sales increase Harrisburg School District s new Horizon Elementary. K-12 enrollment exceeds 15,000 in two-county area Our region is among the fastest-growing areas in the nation and that growth can be measured in a variety of ways. One number that dramatically illustrates our future potential is the annual rise in school enrollments throughout our two-county area. The 2015 enrollment figures for Lincoln and Minnehaha Counties show that once again, K-12 enrollment has jumped to 15,201 total students for the two counties. Even more importantly, our schools are growing, with 516 more kindergarteners than seniors. Growing school districts are a driver for the economy, said Nick Fosheim, LCEDA and MCEDA executive director. Schools are major employers and new school buildings are among our biggest construction projects. Families are drawn to our area by the excellence of our educational systems and their commitment to the future.

GROWING SUCCESS Communities utilize a variety of creative development strategies Gerry Karpen shows Sherman s playground plans to Nick Fosheim. Sherman pulls together to create new city park When the playground equipment at Sherman s Strom Park became worn out and damaged, this Minnehaha County community of 80 residents saw it as a challenge. According to Gerry Karpen, a member of the MCEDA and Sherman town boards, a city park with new, safe equipment is a necessary part of a living community. So Sherman residents threw their support into raising money for a new, centrally located park not far from the city hall building on land already owned by city government. Thanks to donations from Sherman businesses, the sale of surplus city equipment, a community fundraiser with silent auction and grants from Xcel Energy, Prairie Rose Wind, Alliance Communications, Northwestern Electric and the Sioux Falls Area Community Foundation, the city raised $39,000. That s enough to purchase and install a colorful new playground. The community has applied for a state Land and Water Conservation Fund matching grant and will repair Strom Park with any additional money the community receives. This is a first for Sherman, Karpen said. We re looking at adding another penny to the sales tax to provide the budget to maintain the new park and add to it. When a community comes together to make things happen, anything is possible. Crooks housing lots spur community growth The acquisition of 25 acres of sites for new homes in the heart of Crooks has the community thinking big. The growth of Sunset Addition will pull new development in Crooks to the west. These new homes, contiguous to the community sports fields, could spur new growth in population and businesses. Crooks has been short of housing inventory for some time, and the 37 new lots, with infrastructure in place, have attracted a great deal of local interest. The Crooks Housing and Redevelopment Commission acquired the land from its initial developer, and when lot availability was announced, 23 people went on a waiting list. Six lots were sold immediately, and new homes are already under construction in the newly-platted Sunset Addition. Mayor Jamison Rounds said that a variety of community activities are keeping excitement high in the community, from the Junker Jamboree to an upcoming Crooks Christmas celebration. Residential development is the lynchpin, Rounds said. We want to create a community square to draw local residents and visitors together. With new homes being built nearby, our park is now the heart of Crooks. Crooks Mayor Jamison Rounds points out new building lots. Nick Fosheim discusses 3D printing with Canton High School teachers Russ Swanson and Jim Martinson. Industry-education partnership shines at Canton High School Building a stronger relationship between our schools and businesses is a strategy for growing our regional talent pool. In Canton, that strategy is being implemented by a unique combination of dedicated teachers, proud community business partners, technology innovation and engaged students. Russ Swanson teaches agricultural education at Canton High School, and through his inventive courses he s also teaching professional driving, computerized 3D printing, engineering and life skills. Swanson and fellow teacher Jim Martinson are working together to see that Canton students acquire practical skills. One of Martinson s classrooms has simulators to prepare students for real-world flight training.swanson s classroom boasts a big rig driving simulator and a remote controlled model 18-wheeler to get students ready to take their Commercial Drivers License exam. An accreditation agreement with Augustana University enables Canton students who take pre-engineering courses to graduate with up to 12 college credits. Thanks to a partnership with Adams Thermal in Canton, students designed, 3D printed and passed along an industrial solution to a product design problem. Adams is also the sponsor of the summer engineering camp that gets local students eager to learn more. Swanson and Martinson also provide skills in more conventional industrial arts courses, including wiring, automotive repair and maintenance, house framing and the kind of math that is used every day on job sites. Our students are learning practical applications of educational principles, Swanson said. But most of all, they are having fun learning skills they can use in real life and that makes it fun for us, too.

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 Great Western Bank in Canton and Lennox Reliabank, Tea Security Savings Bank, Canton Valley Exchange Bank, Lennox and Tea Wells Fargo Bank East River Electric Cooperative MidAmerican Energy Company Midco 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 City of Hartford 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 Great Western 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 Midco 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 605-339-0103 or email nickf@siouxfalls.com. GOLD Beck and Hofer Construction DGR Engineering Infrastructure Design Group, Inc. SILVER Dakota BUSINESS Finance Sands Drywall, Inc. Security National Corporation 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 Companies Dacotah Bank Harr-Lemme Development, Inc. Myrl & Roy s Paving, Inc. Peska Construction, Inc.