John Morrell begins $100 million expansion - Sioux Falls ...

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ohn Morrell & Co. has announced a $100 million construction project on their ... Mayor Dave Munson; Steve Crim; Joseph Sebring, John Morrell President; union  ...

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John Morrell begins $100 million expansion

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ohn Morrell & Co. has announced a $100 million construction project on their Sioux Falls pork processing campus which will add 200 new jobs when the new facility is completed in the fall of 2007. The plant currently employs 3,200 workers producing a wide variety of fresh pork, hams, bacon and sausage products. The planned 232,000-square-foot building will complement John Morrell’s existing Sioux Falls facility and allow for greatly expanded processing capacity of ham, bacon and sausage products. “We have been looking forward to this much-anticipated expansion of our Sioux Falls operation,” said Steve Crim, general manager of the Sioux Falls plant. “This project will allow us to increase our product offering to meet growing customer demands and replace our existing sausage manufacturing complex.” “From a local economic development standpoint, this project will bring 200 additional jobs to Sioux Falls and add millions of dollars to our regional economy,” Crim said. “Sioux Falls is a great place to live and work, and we are delighted to contribute to the growth of this region.” Continued on page 2...

Governor Mike Rounds joined a host of dignitaries in addressing a record crowd at groundbreaking ceremonies announcing the expansion at John Morrell & Co.

2005 A YEAR OF

UNPRECEDENTED GROWTH Get the details at the Development Foundation annual meeting November 17!

Volume 29, Number 5 September-October, 2005

Left to right are Dennis Treacy, Smithfield Foods; Jim Wilcox; Senator Tim Johnson; Mayor Dave Munson; Steve Crim; Joseph Sebring, John Morrell President; union president Dan Jorgensen; Governor Mike Rounds; Senator John Thune, and Dr. Mark Benedetto, along with Jim Woster at the podium.

Annual meeting scheduled for November 17

T he Sioux Falls Development Foundation begins its second half-century of service to our area with the organization’s Annual Meeting, which will be held at the Holiday Inn City Centre Thursday, November 17, from 4:30 to 6:30 p.m., with a brief business meeting beginning at 5:15 p.m. Celebrating Success…Shaping the Future is the theme of this year’s event. The meeting—free and open to the public—brings business leaders and community residents news of the record-setting activities of the Development Foundation during 2005. An important part of the agenda is the presentation of the Spirit of Sioux Falls Award, given annually to a person showing leadership and commitment to the economic development of our area. The gala event features hors d’oeuvres and a cash bar, plus a chance to network with others who care as much about Sioux Falls and its future as you do. Invitations to the meeting will be mailed out soon, but mark your calendar TODAY for November 17!

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John Morrell begins $100 million expansion Continued from page 1... South Dakota Governor Mike Rounds commended Smithfield Foods and John Morrell for their nearly century-long investment in the South Dakota economy. “John Morrell has been one of our state’s primary employers and corporate leaders since 1907,” Rounds said. “We congratulate the company and its South Dakota employees on this exciting expansion to the Sioux Falls plant.” “Smithfield Foods is proud of John Morrell and its strong focus on meeting customer demand for our products,” said C. Larry Pope, Smithfield’s president and chief operating officer. “The company’s employees deserve special credit because their hard work and

dedication in producing quality products made this investment in the community possible. The new Sioux Falls plant will include a state-of-the-art deli-ham manufacturing system, two pre-cooked bacon lines and one pre-cooked toppings line, and a replacement sausage manufacturing facility that incorporates the latest technology to enhance quality, efficiency and food safety. John Morrell & Co., founded in 1827 in Liverpool, England, is a subsidiary of Smithfield Foods, Inc., of Smithfield, VA. John Morrell is headquartered in Cincinnati, Ohio, and has about 6,860 employees.

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Biotech firms save in Sioux Falls Newspapers across the nation have been reporting the news that a Sioux Falls location is the most profitable for a biomedical facility. The Boyd Company of Princeton, NJ, has issued a new report comparing cities in the US and Canada. Boston, San Jose and San Diego, traditionally “hot spots” for technology development, have fallen behind Sioux Falls, Boyd reported. A high tech biomedical location in Sioux Falls would show annual costs of $8.5 million, while the same facility in San Jose would cost $11.3 annually.

Land purchased for new development parks

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is published six times yearly by the

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o maintain an adequate supply of developed building sites for expanding and relocating businesses, the Sioux Falls Development Foundation has acquired 185 acres in northeast Sioux Falls adjacent to existing Sioux Empire Development Parks. The property, purchased at a cost of $2.6 million, will enable the organization to create two distinctly different park environments and offer land to a diverse group of companies. “We have been short of land on which users might construct metal buildings, for example,” said Dan Scott, Development Foundation president. “The unique layout of this new land gives us sites for all kinds of businesses. The property will be designed to accommodate the needs of every type of user.” The land purchase puts the group’s current stock of available land at 385 acres, Scott said. That is not a large inventory, he added, since the Development Foundation sold 105 acres this year and the new land will take some time to prepare for occupancy. Engineering work is already underway on the property, however, planning for streets and infrastructure development. Dan Scott points out building sites to be Home to over 100 businesses developed on the new industrial park land. employing 12,000 individuals, the nine Sioux Empire Development Parks comprise 1,360 acres. This year’s land sales in the parks set a new record, with $3.7 million worth of sites purchased by companies who have identified Sioux Falls as a great place to grow.

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www. siouxfallsdevelopment .com

P.O. Box 907, Sioux Falls, SD 57101 Phone 605-339-0103, Fax 605-339-0055 Dan Scott, President Karen Ruhland, Editor

SFDF Board of Directors Jim Wilcox, Chair Dana Dykhouse,Vice Chair Mark Shlanta, Treasurer Doug Johnson, Secretary Kelby Krabbenhoft, Past Chair Dennis Anderson Terry Baloun Henry “Chip” Carlson III Cathy Clark Steve Crim Bruce Halverson Mike Hanson John Keilholz

Dan Kirby David Knudson Don Marker Barry Martin Dr. Jim Robl Jeff Scherschligt Kendall Stork Ex-Officio: Mayor Dave Munson Commissioner Jim Zweep Mike Cooper

Working for regional economic development in partnership with:

Lincoln County Economic Development Association Minnehaha County Economic Development Association

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Sioux Falls Development Foundation

Chairman’s Report

By Jim Wilcox

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Success demands looking to the future

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his year’s record-setting sales of building sites in the Sioux Empire Development parks illustrates one of the vital functions of the Development Foundations in shaping Sioux Falls’ growth. But selling land is only half of the equation—developing new land to take the place of those sites is equally important. This year, we have taken steps to insure that we will have an inventory of park land available for the future. When researching new areas for development parks, the Development Foundation works with the city and the state of South Dakota. We look ahead, with our governmental partners in economic development, anticipating future growth with confidence and knowledge gained through experience. The result is new development parks, ready for a variety of expanding and relocating companies. That is the way it is supposed to work—and the way it does work in Sioux Falls. All of us realize that economic development does not happen by accident. Companies like ADP do not come to Sioux Falls without good reason and companies like John Morrell do not choose to expand here without studying the potential. By planning for the future, we prepare for those companies to make the right decisions. Our annual meeting is our way of saying “Thanks!” to all of our partners in this successful development effort. Our members and other business leaders are honored guests at the annual meeting, scheduled for November 17 at the Holiday Inn City Centre. I look forward to seeing you there.

■■■ Sioux Falls is one of the nation’s

“best communities for young people”

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iting the focus placed by Sioux Falls organizations on childhood development, after school programs and building tomorrow’s leaders, America’s Promise—The Alliance for Youth has named Sioux Falls one of the 100 Best Communities for Young People. The competition was launched this year by America’s Promise founding chairman General Colin Powell to identify those communities providing healthy, safe and caring environments for young people. “It is wonderful to learn first-hand how outstanding communities like Sioux Falls are making a difference in people’s lives—especially their young people,” said Jay Powell of Sioux Empire United Way. “We are committed to helping Sioux Falls young people succeed in life with programs such as Success by Six, the Dolly Parton Reading Initiative, Connecting Kids and our newest program, Wings for Life.” Other organizations mentioned in the award were the YMCA, Junior Achievement, the Sioux Falls school district, city government and local churches. According to local program directors, nearly 70% of K-8 students in Sioux Falls are involved in an after school program.

www. siouxfallsdevelopment .com

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EROS pictures help FEMA respond to hurricanes

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esponse to a catastrophic natural disaster requires information—and when information flow on the ground is interrupted by emergencies like Hurricane Katrina, the Federal Emergency Management Agency (FEMA) turns to images collected from satellites to help direct first responders. As Americans watched Hurricane Rita moving closer to our shores, FEMA kept tabs on the developing storm with space-based images from its science partners. Because of its role as the nation’s repository of satellite images, the US Geological Survey’s Center for Earth Resource Observation and Science (EROS) is a global clearinghouse for images of disaster. Before and after satellite pictures from the 2004 Asian tsunami were received at EROS and made available to governmental and international relief agencies around the world, making the recovery effort more efficient and science-directed. When Katrina struck the Gulf Coast, the lessons of the tsunami were applied to a homeland disaster. Government, private and international satellites turned their sensors on the stricken area, beaming thousands of megabytes of data to EROS. Scientists at the Sioux Falls facility were able to use that data to create “value-added” products, such as maps indicating the water depth in specific neighborhoods of New Orleans. These products guided rescue workers and facilitated the emergency relief efforts throughout the Gulf Coast. In addition to the satellite images streaming into EROS, the science center receives all aerial reconnaissance

REDI board hosted by local development officials

Aerial photography collected at EROS shows the destructive power of Hurricane Rita. The photos show before and after images of the small fishing town of Holly Beach, Louisiana. Hurricane Rita struck the community on September 24, 2005 and completely destroyed it.

photographs taken over the disaster scene, bringing together remote sensing data with photographic images in ways that provide an overview of the area not available in earlier emergencies. Hurricane Charlie tested the coordination of emergency response between FEMA and EROS in 2004, when EROS scientists went on-site to aid FEMA’s first responder force. The Asian tsunami provided essential lessons in coordinating international remote sensing data in response to a global emergency. With the help of images from EROS, those lessons guided FEMA’s response to Katrina and Rita’s wrathful descent on the US Gulf Coast.

■■■ Development Foundation chair honored for community service

Jim Wilcox, board chairman of the Sioux Falls

T he Sioux Falls Development Foundation, along with the Minnehaha and Lincoln County Economic Development Associations, hosted the members of the state Revolving Economic Development Initiative board at a dinner and reception at Minerva’s restaurant recently. The board toured businesses in Minnehaha and Lincoln counties which have received REDI loans. Pictured above are LCEDA president Todd Nelson, Development Foundation chair Jim Wilcox, REDI chair Jerry Prostrollo, GOED director Jafar Karim and MCEDA president Marv Wieman.

Development Foundation, has been chosen as one of eight 2005 Distinguished Alumni by South Dakota State University. Recognized for Outstanding Service to Home Community, Wilcox was honored for his dedication to economic development in Sioux Falls. Wilcox earned a degree in electrical engineering from SDSU in 1976 before going on to achieve a master’s degree in business administration from the University of St. Thomas in St. Paul. He is currently the government and regulatory affairs manager for Xcel Energy in Sioux Falls. Congratulations, Jim!

www. siouxfallsdevelopment .com

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Total Card builds new call center

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he fast-growing southwest corner of Sioux Falls will add a new business in March, 2006, with the completion of the new $6 million Total Card, Inc. call center at 5021 Broadband Lane. The thirdparty credit card servicer provides collections, settlement and support solutions to financial institutions and non-traditional credit card issuers, especially sub-prime lenders and issuers. Total Card uses powerful data processing support from FDR and Certegy to provide a unique package to the financial services industry. The new 70,000 square foot facility will employ over 400.

Sioux Valley Wellness partners with YMCA

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n May, Sioux Valley Hospital and the YMCA began construction of the new 70,000 square foot Family Wellness facility on twelve acres on the west side of Sioux Falls. The Tea-Ellis Road family fitness center, near 32nd Street, will include gymnasiums, a family fun pool and a conditioning center with treadmills, climbers, bikes, cross trainers and weight resistance equipment. Child care will be provided, along with whirlpool, sauna and steam rooms, community meeting room and new offices. An outdoor recreation space and racquetball courts will also be part of the new center. Over 40 employees will work at the facility, which should be completed in July of 2006.

Plains Commerce Bank to open on 49th

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he Sioux Falls Development Foundation hosted groundbreaking ceremonies for Plains Commerce Bank, which is building a 9,630 square foot two-story bank at 3905 West 49th Street, just south of the Empire Mall. The planned completion date is spring of 2006, with initial employment of 12-15 people. Plains Commerce Bank is a community bank with offices in Aberdeen, Conde, Hoven and Watertown. The Bank of Hoven opened in 1931. In 1987, the bank expanded its operations to include a credit card division, which offers secured and unsecured VISA® and MasterCard® cards. The bank now has nearly $200 million in total assets and is providing financial services throughout northeastern South Dakota.

Fire station groundbreaking held

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round was broken recently for a new 8,000 square foot, three-bay fire station on Whitewall Circle—located east of the Tea/Ellis Road on the north side of West 12th Street. This fire station will be known as Fire Station #10. The cost of the project will be $1.3 million for construction, land, engineering and consulting. Fire Station #10 will employ 15 full-time fire fighters, staffing 4 fire fighters per day on a 24 hour per day basis. Wayne Township has contracted with this station to provide services. The station will have a fire/rescue engine, water tanker and a water rescue unit. Established in 1880, the Sioux Falls Fire Department currently maintains 8 fire stations with 171 fire fighters.

www. siouxfallsdevelopment .com

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he year is not over, but we can already say that 2005 is the biggest year for economic development growth in the history of Sioux Falls. With the three largest projects ever planned in our area already under construction, the record is secure, even in October. The decision by ADP to build their operations center here, a project totaling well over $50 million, combined with John Morrell’s $100 million dollar expansion and the $25+ million dollar expansion at Sioux Valley Hospital, puts 2005 in the record books. Any of those projects alone would make this a good year; all three together in one year is remarkable. But as remarkable as those projects are, it is almost equally amazing to look back over the past ten years at the steady growth of Sioux Falls. Construction activity and building permit totals have been setting records for the past decade, as companies and families build for their futures here in Sioux Falls and our surrounding area. The majority of that construction activity has come from existing businesses. The economic growth of any community usually runs 80% from expansion and 20% from relocation and new businesses. During mini-recessions and troubled times, the Sioux Falls area economy has forged ahead, driven by steady growth and solid confidence on the part of our business community. The medical sector has always been a large part of that steady growth, along with our banking community. As the Sioux Falls market base expands, the demand for new and larger retail facilities is enhanced. This diverse economy has many players, but they all contribute to our achievement. Strong construction activity, confidence in the future and a growing population work together to fuel tomorrow’s growth. Those elements require us to constantly prepare— planning is the key to economic success.

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Build-ready, affordable sites are available in the Sioux Empire Development Parks. Prices include:

and the build-ready land you’ve been looking for!

Best business climate...

ADDRESS SERVICE REQUESTED.

P.O. Box 907 Sioux Falls, SD 57101

Sioux Falls Development Foundation

By Dan Scott

2005 is the biggest year for growth in our history

Water Sewer Curb and gutter Hard-surface roads Prices start at $1.55/sq. ft.

President’s Report

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Sioux Falls Development Foundation

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Contact Dan Hindbjorgen, Sioux Falls Development Foundation

10/12/05

Call 1-800-658-3373, e-mail [email protected] or visit our Sioux Falls website at www.siouxfalls.com

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