Nov. 1, 2021

This paid piece is sponsored by Sioux Metro Growth Alliance.

Go just outside of Sioux Falls in any direction, and the story is the same: continued growth and business activity.

“When you look at Sioux Falls’ future growth, a lot will be in the suburban communities, in the metro,” said Jesse Fonkert, president and CEO of Sioux Metro Growth Alliance, which serves the economic development needs of communities in Minnehaha and Lincoln counties.

“The future is outside Sioux Falls, long term.”

And that development activity already is happening.

We caught up with Fonkert for a look at what’s driving his organization and the communities it serves.

What has business activity been like in the communities throughout the fall and approaching the end of the year?

From a business perspective, it’s a little quieter. We pre-sold most of the land we worked on across the region. The Rovang Industrial Park in Brandon is essentially spoken for. There’s enough contracts in place to sell all the undeveloped land, with the exception of a rail site that we’d love to see move before prices go up. That’s a 15-acre site with rail access that is subdividable, so we think that’s a really good opportunity for someone.

And we were excited to see Henkel recently announce its expansion there. It’s a significant addition for the community. There will be a few spec spaces going up in the Rovang park – one to start in the spring and one in 2023. And Wilson Trailers is expanding in Lennox; their transaction is complete. So the Lennox Industrial Park is full between that and the Sioux Steel expansion.

There has been a lot going on in housing. Lots have been developed. Does it seem like people are buying them and beginning to build?

I do think so. We have seen a ton of activity. There are 20 homes going up in a new development in Lennox, 12 to 15 lots pre-sold in Baltic; there’s a lot of land moving. I think the issue is folks aren’t quite pulling the triggers yet on building the homes. There’s maybe a small lag. I think pricing is part of it, but there’s still plenty of activity in Harrisburg and Tea and Brandon. Dell Rapids has announced more residential development. So residential looks really good, other than some nervousness about price increases and supply chain availability, but that’s not unique to these communities. 

What about commercial activity in general? We’ve talked industrial, but are the communities gaining additional interest from developers doing retail, office or multifamily?

There’s tons of commercial prospect activity, along with projects underway and getting ready to open. We’ve had a lot of interest from national developers as well, and a lot of that is thanks to the governor and her national connections. We’re excited by the capital campaign in Harrisburg and want to be a key partner in their growth. We’ve already seen retail, office, services and health care investing there. Tea continues to see positive activity in its Bakker Landing development, with commercial throughout the community. We’re working with Garretson to help them develop an economic development strategy, working with multiple groups there to create a consolidated economic development strategy under one umbrella. That’s a service we offer all our communities: strategic planning and leadership development.

I do think manufacturing and industrial might be slower next year. With Amazon and Wholestone and CJ Foods, it is beginning to scare off prospective employers in terms of hiring.

You also have started offering economic development management services, beginning with Lennox and then Baltic. How is that going, and what’s next?

It’s been going well. There’s been a lot of learning along the way for the communities and our organization. Fortunately, prospect activity is really strong in these towns, so we’ve been busy. In Lennox, it’s been great. They’re working with Dakota Resources to create and implement a community-led strategic plan.

Our service there has been well-utilized through the Wilson Trailer land sale, along with a number of prospects interested in multifamily development. That’s an ongoing conversation, and one prospect is purchasing land for an ag-based company with 20 to 30 jobs we hope will be announced soon.

In Baltic, we’re helping them create their first economic development organization. It’s the Build Baltic movement, so we’re excited to see that come together, and we’ll be continuing to work on that into next year. We’re also going to be growing to Dell Rapids and Salem next year, and other communities are considering it. We’ll be adding a new staff member in January to support that demand. In Dell Rapids, they want to see more housing growth and further utilization of their industrial park, along with downtown redevelopment and business attraction. In Salem, it’s all about housing. That’s what they want more than anything. 

You’ve also been working to make it easier to connect with Sioux Metro online. Is your new website ready?

Yes, it’s launched. So check out www.siouxmetro.com. You’ll find information about the different communities we serve, including residential developments, commercial opportunities and a section that explains who we are and what we do as an organization. And, of course, you’ll find a way to contact us. And we have plans to grow it, highlighting regional news and potential tourism opportunities. You’ll be able to register for our events and find how to follow us on social media. 

Looking ahead to the rest of the year and into next year, what are some of the priorities for your organization?

We’re working to determine our long-range office situation. We’re outgrowing our space and trying to figure out what the future of Sioux Metro looks like. We’re looking to expand to better meet the needs of our members, planning our Grow Smarter conference for the spring, which is our second annual conference. And we’re working to advocate for our members in regards to the allocation of ARPA (American Rescue Plan Act) dollars locally and statewide. We’re trying to encourage the Western Minnehaha County Regional Wastewater System centered in Hartford that would serve Humboldt, Crooks and Colton and drive more growth on the west side of the county.

To connect with Sioux Metro Growth Alliance, click here.