June 12, 2023

This paid piece is sponsored by South Dakota Biotech.

The first building at the USD Discovery District is slated to start construction yet this year.

The approximately 50,000-square-foot facility makes a statement about how the team behind it is approaching a project that has been conceived for years but encountered various hurdles along the way.

“The goal of the USD Discovery District is to create a dynamic and collaborative environment where talent, research and innovative businesses interact to create new ideas, new technologies and new opportunities,” said Ryan Oines, chief operating officer. “We think our goals can best be accomplished by constructing a shell and building out spaces that meet the needs of our initial tenants. The remainder will be built to suit as future tenants come online.”

The USD Discovery District has selected ISG as the architectural and engineering firm for the project and McGough Construction as the construction manager at risk.

“We made a concerted effort to get both hired as soon as possible so they could begin working together to plan the building,” said Jim Abbott, former USD president who has served as president and CEO of the USD Discovery District since late 2021. “We think that’s important as they both have a lot of experience with the kind of building we’re trying to build.”

The two-story building will sit to the west of the USD — Sioux Falls classroom building and GEAR Center, allowing it to share parking, leaving the rest of the 80-acre campus open for development. This location leaves much of the available sites for developers and businesses to develop as needed, including research, office space and mixed use.

“Successful modern-day research parks offer not only the research and office space tenants require, they also provide amenities tenants want. We intend to provide both,” Abbott said.

Bidding for site work and the exterior shell of the building is scheduled for late summer, with a goal of beginning construction late this fall. The hope is to have the shell and initial build-out completed by fall of 2024.

“It’s exciting to see this project taking concrete steps forward,” said Joni Ekstrum, executive director of South Dakota Biotech. “It’s a strong statement to the biotech industry that we’re ready to help you grow in Sioux Falls, we’re open to building for your needs, and we’re here to support you with wrap-around services and a pipeline of talent.”

The building is supported by $25 million in funding, including a $15 million appropriation from the South Dakota Legislature, $4 million from the city of Sioux Falls and private contributions.

The current design offers approximately 36,000 leasable square feet, plus common areas and conference rooms. The building is being designed with the ability to scale HVAC capacity as lab space requires.

A market study will identify tenant criteria and profiles.

“We’re attempting to approach tenant recruitment strategically. While we believe later stage or pre-commercialization companies are our target, the market study will provide updated information on the post-pandemic biotech market,” Oines said.

“What we do know,” Abbott said, “is that we need to be able to provide space within a reasonable time. Companies can’t wait two years. We need to pivot quickly to satisfy tenant requirements.”

“Ideally, our tenants will be research-oriented, innovation-driven companies in the biotech and life science space,” Oines commented. “Also, we must make sure our tenants are supported. We anticipate leasing space to contract research organizations and service providers.”

The new building represents a chance for biotech companies to get in early at a development that is designed around their industry, Ekstrum said.

“It has to be the right timing, but for those companies that are ready to take the next step in their development, this is going to be a very attractive option to consider.”

To connect with the South Dakota biotech industry, visit sdbio.org or email [email protected].

Biotech Breakfast

Get connected with the biotech industry this week at the June Biotech Breakfast from 7:45 to 9 a.m. Wednesday at Minnehaha Country Club. The featured speaker is Mike Kettenacker, president and CEO of Innovative Laboratory Systems Inc. Click here to learn more and register.