Aug. 25, 2022

This paid piece is sponsored by Sioux Metro Growth Alliance.

In his first couple of years as Lennox city administrator, Nathan Vander Plaats could count on one hand the number of new homes built in town.

And it wasn’t that long ago – he took over the role in 2019.

In the past year, though, the story has entirely shifted.

There have been more than 50 new construction permits issued, and dozens of homes are in various stages of being built.

“It’s crazy,” said Sharese Ihnen, a Realtor who also serves as board president of the Lennox Area Development Corporation. “It’s always been hard to find houses for people, but the new housing development is really taking off. I was even surprised. I don’t know that I stopped to quantify it, but when you write it down, it’s amazing.”

Most of the new homes are clustered on the north end of the community in the Countryside Acres development from Nielson Construction, which also includes homes from other builders. There also are custom-built homes going up on other lots in Lennox, with prices beginning in the $300,000s and reaching more than $700,000.

“The overall plan at Countryside Acres is 150 houses plus some multifamily,” Ihnen said. “The homes generally are selling for $500,000-plus, and there’s a spec home going up between $700,000 and $800,000. If Lennox has hit the point where we’re selling $700,000 houses, I am excited about that because that’s good for everybody.”

The housing development came together thanks to a public-private partnership.

“Working closely with the Lennox Area Development Corporation to find a developer was key – in fact, that was my first meeting when I started working here,” Vander Plaats said.

“What really made this happen was the city’s drive to make it happen and Lincoln County’s willingness to carry the responsibility of a TIF district for us. Small towns like Lennox don’t have the debt capacity necessary to handle such a large TIF district, so we really need good partners like Lincoln County to help out with that end of the deal.”

The new homes are being occupied by a mix of existing Lennox residents looking for something new and newcomers to the community.

“There’s no real identifiable trend yet that I’ve seen,” Vander Plaats said. “That being said, all of them speak about the importance of living in a small town with amenities they would use. I’ll always believe that the availability of work in Sioux Falls is a huge draw to the region – many families see those available jobs but want to stay in a small, close-knit community. They’ll find that here.”

Ihnen agreed.

“In the past, coming out to Lennox to work in Sioux Falls was something people didn’t always love, but now driving 20 minutes from Lennox to Sioux Falls is no big deal,” she said. “When you drive through the newer areas, you notice young families, but I also know some who are retired and live out there.”

With a population of more than 2,400, Lennox also is drawing more attention from businesses. A Mexican restaurant is wrapping up a lease for the town’s former community center, and the hope is other dining options will follow.

The biggest need, though, is for more industrial land. That’s where a relationship with Sioux Metro Growth Alliance has been especially helpful. Economic development specialist Ryan Solberg is working with Lennox to help the town achieve its goals.

“When I first arrived, I thought it would be about convincing businesses that an investment in the community is worthwhile and this is a place they can succeed and grow. Instead, it was about having the space available to meet their needs with shovel-ready sites that could accommodate demand,” Solberg said.

“We’ve been working with businesses that really like Lennox because of the workforce and location, and trying to determine how to find the space that suits their needs.”

The existing industrial space in town is spoken for, including larger employers such as Sioux Steel and Wilson Trailer.

“We’re having conversations about where our next industrial park could be, how we afford to do it, how we appeal to developers and what interest exists from businesses,” Ihnen said.

“That’s where Ryan has really helped lighten the load on me as Development Corporation president because we’re all volunteers and he can be meeting and following up and working through the details of that. So he and Sioux Metro Growth Alliance are helping us plan, move forward, look for grants and other funding. Without them, I don’t know that any of us would know what to do.”

The city also is continuing to invest in improvements and is in the first year of an eight-year capital improvement plan.

“And progress is evident to anyone visiting town,” Vander Plaats said, pointing to the reconstruction of South Main Avenue near the high school.

Boynton Avenue, one of the most heavily traveled roads, will receive major pavement and utility improvements yet this year, plus an extension of the community’s recreation trail.

Next year, with the help of a $5.6 million state grant, a $10.2 million central basin sewer project will be done in the central and northern part of town.

The community also is looking at ways to incentivize repairs of older housing to support those looking for more entry-level options, currently reimbursing 25 percent of exterior improvements such as siding, shingles, doors and windows on qualifying properties.

“We’ve gotten a good number of applications,” Solberg said. “The other thing is looking for more affordable space for small businesses. We’ve had folks interested in starting a cafe or other small business, but finding affordable space has been difficult, so often they’re doing business out of their homes before making the investment in a facility.”

The community also is focusing on downtown beautification efforts with new planter boxes and a potential facade improvement program, along with trying to determine where it’s next major housing development should be located.

“When I first came on board, I was told that the first phase of the Countryside development would take five to 10 years to be fully completed. Now, they’re already planning phase two, so the response has been tremendous,” Solberg said. “It seems like every time I go to Lennox three or four more building permits have been pulled or basements have been poured. It seems like there’s something new popping up every time I drive through.”