Aug. 8, 2025

The state of South Dakota has entered into a purchase agreement for the option to buy 148 acres in northeast Sioux Falls for a future men’s prison.

The property is east of Interstate 229 and between Benson Road and Gage Brothers Concrete Products. It was one of two sites considered in the area.

The land is owned by TCB LLC, and the letter of interest in selling to the state was signed by LLC members Lynnette Unzelman and Patty Nour, whose family owned Myrl & Roy’s Paving Inc.

The deal represents $10 million less than what was estimated by the state’s prison task force, Gov. Larry Rhoden said.

“South Dakota needs a new prison to keep our people safe, and we are moving forward with delivering a proposal that prioritizes safety and conservative fiscal stewardship,” Rhoden said in a statement.

“We appreciate the Legislature’s continued attention to this project, and we are excited to deliver this as efficiently as possible for South Dakota taxpayers.”

The state will complete the purchase only if approval to acquire the site is granted by the South Dakota Legislature.

If the purchase of the Benson Road site is approved by the Legislature in a special session Sept. 25, land in Lincoln County that had been designated for the prison would no longer be owned by the state.

The purchase includes a cash payment of $1.5 million for the land plus exchange of the previously proposed Lincoln County land with an estimated agricultural value of $4.5 million.

As private property, any agricultural use or development of the Lincoln County site would be subject to county zoning.

“Residents of Lincoln County should be excited about the opportunity to regain control over what happens to that land,” said Sen. Ernie Otten who represents Lincoln County and served on the prison task force. “I look forward to working with my fellow legislators to get this project across the finish line.”

The Benson Road site will represent millions in savings on utility development costs compared with the Lincoln County land because there will be no need for a water tower, long sewer line or other expenses, according to the state.