Partners for Progress Lincoln and Minnehaha County Economic Development Associations New companies, expanding businesses create opportunity P roving that growth drives additional development, 2005 was another solid year of business expansion and relocation in Minnehaha and Lincoln counties. “The best thing about 2005 has been the Adams Thermal Systems moved into 25,000 square feet of new production space this year, marking the second recent expansion at the company’s Canton Industrial Park location. Manufacturers of engine cooling systems, Adams Thermal serves a wide range combination of economic forces that have pushed of national equipment makers, including John Deere our communities forward,” said Jeff Eckhoff, and Cummins Diesel. executive director of MCEDA and LCEDA. “We’ve In the Harrisburg Industrial Park, Showplace had new manufacturing jobs locate here from other Wood Products added on to its manufacturing plant states, matched by strong expansion by existing in two areas. The finishing department grew by manufacturers, rapidly developing retail and 27,000 square feet, while another 40,000 square feet continued housing construction.” were added for additional manufacturing and Ware Manufacturing, a growing metal fabrication warehouse space. The $4.2 million projects bring the employer in Lincoln County, became Parkview Metal total square footage of the Showplace plant to Products. The sale of the company was a major step in 210,000. Showplace also completed a new cabinetry the continued growth of the showroom and training business in South Dakota. facility near the manufacturing Eckhoff worked with Ware plant during 2005. executives and the new The economic growth of buyers to complete a transfer our area was celebrated of ownership that maintained again this year by Governor jobs and production at the Mike Rounds, in naming Lennox plant. Brandon as the Community American Equipment of the Year. Brandon’s local Corporation moved into a businesses created more 39,000 square foot building Greg Bertsch and Jerry Grode of American Equipment Company than 175 jobs during the in the Northwestern review plans for their business expansion with Jeff Eckhoff. past year, and the community Industrial Park. Close to the has also experienced nearly Sioux Falls market area but $11 million in private and conveniently located at the over $13 million in public I-29 Crooks exit, the space capital investment. will allow for American On the retail front, Equipment’s projected Sunshine Foods is building a growth. Formerly located in new 17,700 square foot Sioux City, IA, and North The purchase of Ware Manufacturing supermarket in Tea, the by Parkview Metal Products kept the Sioux City, SD, the snowplow company growing in Lennox. company’s eighth store in and snowblower manufacturing the area. Partner-manager company had nowhere to Kyle Svanda said the grocery grow. The company worked with MCEDA during the will employ 30 to 35 people and is expected to open initial phases of the decision to locate in Minnehaha next March. Tea’s outstanding growth led to the County, especially in communication with local decision to build a Sunshine store in the community, zoning officials. Makers of Northman commercial Svanda said. snowplows and Red Devil snowblowers, American “Added to the housing construction, the infrastruc- Equipment fabricates their product from 11-gauge ture development and community projects,” Eckhoff steel, adding hydraulics obtained from suppliers. said, “this year has been one of our strongest ever. It Manufacturing expansions also marked 2005. sets the stage for even more dynamic growth in 2006.” 2005 ANNUAL REPORT MCEDA President’s Message By Marv Wieman We leverage our strengths through teamwork Minnehaha County Economic Development Association O ur region of South Dakota has once again led the state in economic growth during the past year. We believe that our team approach to Board of Directors 2004-2005 community development, and our partnership for progress in Minnehaha and Lincoln counties, is Marv Wieman, MCEDA President, Crooks responsible for this persistent pattern of prosperity. Jim Clark, Our friends at the Sioux Falls Development MCEDA Vice-President, At-Large Foundation and our partners in Lincoln County Dennis Olson, understand, as does our board of directors and our MCEDA Secretary-Treasurer, Brandon members, that we’re in this community development Carol Ackerman, At-Large effort as a team. What’s good for one community is Fay Beck, Colton good for the entire region. We work together, we Rick Freemark, Hartford achieve success together and we applaud each other’s victories together. Eric Krouse, At-Large The partnership of state development officials, local economic development Don Johnson, Valley Springs professionals and concerned, caring volunteers in each community throughout Jason Pittman, Baltic our area achieved great things again during the past year. We will continue to Allen Schmeichel, Humboldt achieve great things in the years ahead. Mike Wendland, Rural Mayors We thank executive director Jeff Eckhoff for helping to keep the regional team of economic development partners focused and effective. The investment Owen Wiese, Garretson made by each volunteer, each community development group and each member Neil Winterton, Sherman of our organizations is vital to reaching our goal. We leverage our individual con- Jim Zweep, Minnehaha County Commission tributions to succeed as a region, benefiting each community and its residents. LCEDA and with the in cooperation MCEDA LCEDA President’s Message Sioux Falls Development Foundation By Todd Nelson Commerce Center, 200 North Phillips Avenue P.O. Box 907, Sioux Falls, SD 57101 Phone (605) 339-0103 Partnership powers our growth W hen LCEDA was founded, the utilities, financial institutions and communities in Lincoln County that banded together were glad to be partners for progress. All those groups, businesses and towns understood that when the components of a county work together, all our residents benefit from that joint effort. Lincoln County Over the years, we’ve expanded our partnerships— Economic Development Association and our success has grown in direct proportion to Board of Directors 2004-2005 the number of our partners. The Governor’s Office Todd Nelson, LCEDA President, At-Large of Economic Development is part of our network. Bob Lier, LCEDA Vice-President, Canton The Sioux Falls Development Foundation has helped Mary Thoen, us develop leads and led the marketing charge nationwide. Our close LCEDA Secretary-Treasurer, At-Large relationship with our sister organization, the Minnehaha County Economic Dan Cotton, Beresford Development Association (MCEDA) has provided economies of scale and the Marshall Drexler, Harrisburg exchange of good ideas that keeps us moving forward. Dick Hempel, Lennox We express our thanks to those LCEDA members who make economic Vacant Seat, Tea development work in our county. Along with the dedicated and committed Mike Metivier, Worthing members of our volunteer board and our hard-working executive director, Jeff Mark Rodvold, At-Large Eckhoff, they are making Lincoln County a great place to live and work. And Mike Poppens, we thank our partners for maximizing our efforts. The more of us working for Lincoln County Commission a common purpose, the more successful we will be. MCEDA Minnehaha County: The year in review BALTIC Baltic, with a population of nearly 1,000, completed a sewer interceptor line to Valley View Meadows, a 40-acre housing development. Baltic Heights park upgrades were completed, and the city received title to 37 acres along the river for a wildlife area. Citizens passed a $5.6 million bond issue to incorporate the high school with the elementary and middle schools. In 2005, 50 building permits were Crimson Fire constructed a new building in the Brandon Industrial Park during 2005. issued at a valuation of $1.4 million. BRANDON CROOKS GARRETSON Brandon, with a 2005 population of Crooks once again experienced growth Garretson is celebrating the reopening 7,241, was named as the Governor’s with 22 new homes built in 2005. The of Highway 11 after two long Community of the Year. Sioux Valley volunteer fire department constructed summers of construction. The Energy and Total Fire Protection had a new building this year. A new water Garretson School district completed a major construction projects during line was brought into the city and new athletic complex that includes the year, and the city built a new improved controls and pumps were an artificial turf football field. New $1.4 million fire station. Four nine- added, with cooperation from homes continue to be added yearly unit townhouses were completed, a Minnehaha Community Water and Garretson’s Main Street is home $2.4 million project. During 2005, Corporation. A paved parking lot is to a vibrant retail sector. Building $32.75 million in building permits under construction for the Community permits for the year totaled 52 with a were issued, a total of 406 permits. Center. In 2005, Crooks issued 77 valuation over $2.2 million. building permits at a valuation of $4.3 million. COLTON HARTFORD Colton, population 675, is preparing DELL RAPIDS In Hartford, 114 permits were issued, to let bids on extensive infrastruc- with a valuation of $3.9 million ture improvement, including a two In Dell Rapids, infrastructure during 2005. This community of block street project which includes improvements have been approved 2,000 awarded a bid for the replacing all water and sewer lines. for major work on the community’s construction of a new 500,000-gallon Another $300,000 project will make historic Main Street. This community water tower, to supplement the repairs to existing sewage lagoons. of 3,169 continues to grow, with 139 current 100,000-gallon unit. Three Activity for 2005 shows 28 building building permits issued in 2005, for new developments were planned, permits at a valuation of $213,000. a total value over $4 million. with over 400 new residential lots. The Professional Centre held a ribboncutting ceremony welcoming a pharmacy, attorney, realtor and accountant to Hartford. SHERMAN Sherman has seen continued stability in population and commercial growth during the past year. The community remains the Residential construction was a vital economic force throughout Minnehaha County this year. home of 100 citizens and is a proud participant in MCEDA programs. LCEDA Lincoln County: Looking back at 2005 BERESFORD Beresford has seen a strong year of growth. The Bridges at Beresford Championship golf course was completed, along with the development of 24 housing lots adjacent to the course. Showplace Wood Products began construction of an 11,000 square foot warehouse Groundbreaking ceremonies for The Bridges at Beresford were held in September. and Starlite Plaza added another 12,000 square feet. Verizon is also building a new cell phone tower to serve the area. Beresford, with a population of 2,150, issued 98 building permits valued at over $5 million in 2005. Several Lincoln County communities have added local clinics, providing jobs and services. CANTON million. Included in the construction built. South Main Street is receiving this year were build-outs for Sports infrastructure upgrades, the new Canton, with a population of 3,300, Zone, Total Fitness, Avera McKennan High School is nearing completion saw significant business expansion Clinic, Sioux Valley Clinic and Home and work has begun on a four in 2005, with additions at Adams Federal Bank. Showplace Wood million gallon water project with Thermal Systems and Eastern Products also built an addition to its two half-million gallon towers, two Farmers Elevators. A new $1.3 million Harrisburg plant. A new car wash, wells, and new distribution and dental clinic was built, and a new Casey’s General Store and the BP control systems. Lincoln County administration Convenience store were added to building is in the planning stage. this community of 1,800. Building permits in Canton for 2005 totaled 86 at a value of $3.9 million. TEA LENNOX Tea grew again in 2005 with commercial and residential HARRISBURG Lennox, with a population over construction. Ground was broken for 2,000, experienced $3.2 million in a new multi-store retail facility and a This year, 187 single-family homes construction during 2005, spread new Sunshine Supermarket. The were built in Harrisburg. The over 129 projects. Four four-unit school district continues to grow and community approved 310 building apartment complexes were completed the outlook for 2005 is excellent for permits with a total value of $25.6 and an addition to City Hall was this community of nearly 2,900. The building permit total for 2005 was 141, with a valuation of Showplace Plaza is home to the company’s new cabinetry $8.7 million. showroom and training facility as well as a Sioux Valley Clinic and the First National Bank in Sioux Falls Harrisburg branch. WORTHING In Worthing, 2005 saw two business start-ups, one in a remodeled facility and one new construction on Main Street. Another new business is currently remodeling an existing structure, but plans to move into the new Worthing Industrial Park within two years. The population is now 950, and 11 building permits were issued in 2005, with a valuation of $1.2 million. LCEDA & MCEDA Executive Director’s Report By Jeff Eckhoff Another year of success driven by expansion T his time of year, as we look back on our progress during 2005 and set the stage for a new year, it is important to remember the driving force that enables communities—and our counties—to succeed economically. This year has dramatized that the expansion As companies grow, their suppliers, shippers and customers grow, too. This ripple effect maintains the strength of our construction industry and of existing businesses is the main component of a encourages new services to successful economic development plan. become a part of growing We will always continue our business attraction communities. From clinics to marketing and promotional efforts. Hosting companies convenience stores, new from outside our region as they contemplate locating businesses are built in their companies in Minnehaha and Lincoln counties is a communities requesting and vital part of what we do. In fact, this year the number of supporting in-town services. More jobs are added, more inquiries was at an all-time high, with sixty companies, homes are built and the economy maintains its representing almost 3,000 jobs, seeking information momentum. about our area. We are still working with some of those Expansion-driven community growth has another companies and will keep you posted on our progress advantage. Companies which do take a look at our during 2006. counties see pro-active, dynamic, self-invested towns The big news of this year has been expansion. In with motivated, educated, productive employees. That Minnehaha County, Total Fire Protection and Crimson makes those companies eager to be part of the success Fire grew during 2005. In Lincoln County, Showplace story. Our central location and excellent transportation Wood Products and Adams Thermal Systems added network, combined with superior business climate and square footage and employees. Throughout both counties, high employee productivity, make our area very attractive an increase in population, sales and residential to several types of national businesses. construction drove the expansion of large and small But it all starts with the expansion of our existing companies. Those companies expanded facilities, added companies. As they grow, so grows our economy and our jobs and made significant capital investment. That’s the towns and our future. Let’s remember, as we enter a new way the system is supposed to work—and in Minnehaha year, that encouraging the businesses we have is the best and Lincoln counties, it works very well. strategy for continued success. Population and taxable sales Investor Income Apportionment show excellent year of growth MCEDA E ach year, economic development professionals and community officials check sales tax collections to analyze business growth in Minnehaha and Lincoln counties. According to the South Dakota Department of Revenue, Business Tax Division, both Investor Income $75,556 Utility Companies 39.51% City/County 48.58% counties showed increases in taxable sales for the past fiscal year. The state has posted FY2005 sales tax collections against 2004 showing a $20 million increase Banks in Lincoln County and an $8 million increase in 11.91% Minnehaha County. Leading Lincoln County was Beresford, with a 29.9% increase in 2005, while in Minnehaha County, Crooks showed a sizeable 25.7% increase in sales tax collections City/County last year. Utility 41.50% An equally important set of numbers is population Companies growth, as families move into our communities. Lincoln 51.41% LCEDA County’s population increase from 2004 to 2005 was Investor Income 6.5%, adding to the 25.8% population growth since the $56,414 2000 census. In Minnehaha County, population grew by Banks a respectable 5% last year, and is up 17.4% since the 7.09% 2000 head count. Partners for Progress Lincoln County Minnehaha County Economic Development Association Economic Development Association INVESTORS INVESTORS Beresford Economic Development Corporation City of Baltic Canton Economic Development Corporation City of Brandon City of Canton City of Colton City of Harrisburg City of Crooks City of Dell Rapids City of Lennox City of Garretson Lennox Area Development Corporation Hartford Area Development Corporation City of Tea City of Sherman City of Worthing Minnehaha County Lincoln County First Bank & Trust, Garretson Farmers State Bank, Canton The First National Bank in Sioux Falls, Baltic & Brandon First American Bank & Trust, Canton Home Federal Bank, Brandon, Crooks & Hartford First Federal Bank, Beresford Security Bank, Brandon First Savings Bank, Beresford US Bank, Colton & Hartford Home Federal Bank, Canton & Lennox Alliance Communications, Baltic & Garretson Valley Exchange Bank, Lennox & Tea East River Electric Cooperative Golden West Telecommunications East River Electric Cooperative MidAmerican Energy Company MidAmerican Energy Company Minnehaha Community Water Corporation PrairieWave Communications SDN Communications Southeastern Electric Cooperative Sioux Valley Energy Xcel Energy Xcel Energy 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.