JULY 2023 VOLUME 1 / ISSUE 3
Stories and photos in this issue from: BRANDON CROOKS HARRISBURG HARTFORD SALEM SIOUX FALLS SD DAIRY INDUSTRY Special Feature SPOTLIGHT ON TEA
Photo of Tea by Marcus Vasecka
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2 Sioux Metro Growth Alliance | www.siouxmetro.com
ABOUT US
The Sioux Metro Growth Alliance (SMGA) is a nonprofit economic development organization that works to improve the economy and advocates for business development and quality of life in the communities around Sioux Falls. SMGA advocates on behalf of Baltic, Brandon, Canton, Centerville, Colton, Crooks, Dell Rapids, Garretson, Harrisburg, Hartford, Humboldt, Lennox, Salem, Tea, Valley Springs, and Worthing. All of these communities provide rewarding places to live and to work.
CONTACT US
Sioux Metro Growth Alliance
196 E. 6th St., Suite 200 Sioux Falls, SD 57104
605.679.7149
info@siouxmetro.com
www.siouxmetro.com
SOCIAL
EXECUTIVE BOARD
Jay Buchholz, Chair, Sioux Valley Energy
Robert Baker, First National Bank
David Doxtad, ISG
Joan Franken, Costello Companies
Sharese Ihnen, Vice Chair, Lennox Area Development Corp.
Mike Jaspers, East River Electric
Heather Kranz, TrioTel Communications
Dennis Olson, retired
Chad Ronshaugen, City of Dell Rapids
Mike Wendland, Grant Park Capital
STAFF
Jesse Fonkert, President & CEO
Ryan Solberg, Economic Development Manager
Lisa Zens, Economic Development Manager
Sheldon Jensen, Economic Development Manager
Miranda Basye, Vice President of Engagement
MEMBERSHIP ADVISORY BOARD
City of Dell Rapids
City of Baltic
Chad Ronshaugen, Chair
Deborah McIsaac
City of Brandon Patrick Andrews
City of Canton Jeff Tanner
City of Centerville Jared Hybertson
City of Colton Monte Koopman
City of Crooks Mark Harstad
City of Garretson Jessica Fueston
City of Harrisburg Derick Wenck
City of Hartford Amy M. Farr
City of Humboldt Kelly O’Gorman
City of Lennox Dr. Britney Mower
City of Salem Mitch Rayman
City of Tea Aaron Otten
City of Valley Springs Carl Moss
City of Worthing Scott DeWitt
Lincoln County Joel Arends
McCook County Chuck Mehlbrech
Minnehaha County Dean Karsky
Alliance Comm. Paul VanDeBerg
Bluepeak Lucas Peterson
East River Electric Eric Fosheim
Golden West Greg Oleson
Lloyd Companies Drew O’Brien
Midco Andrew Curley
MidAmerican Energy Sam Wagner
NorthWestern Energy Paul Mantz
Sioux Valley Energy Brandon Lane
Southeastern Electric Todd Nelson
US Bank Eric Krouse
Xcel Energy Joe Anderson
“Growing Places” magazine is published quarterly by AGE Media & Promotion in partnership with the Sioux Metro Growth Alliance.
PUBLISHERS
Garrett and Mindy Gross, 605.690.4071
EDITOR Bob Fitch, 712.551.4123, bob@agemedia.pub
AD SALES Garrett Gross, 515.231.9367, garrett@agemedia.pub
© AGE Media & Promotion
All rights reserved. Content in this magazine should not be copied in any way without the written permission of the publisher. Content in articles, editorial and advertisements are not necessarily endorsed by AGE Media & Promotion. www.agemedia.pub
4 Sioux Metro Growth Alliance | www.siouxmetro.com
MEDIA TABLE OF CONTENTS SMGA Growth Summit 5 Leadership Profile 7 Groundbreakings 8 Spotlight on Crooks 10 SMGA Tour Highlights 12 Workforce Profile 15 Conversations/504 Loans 17 Growth in Ag 18 Spotlight on Tea 20-29 Stats Snapshot 30 ADVERTISERS Central States Mfg 9 Fiegen Construction 31 Golden West Telecommunications 16 Hofer Construction 14 J&R Mechanical 6 Krohmer Plumbing 6 Midco 32 Panther Graphics 31 Peska Construction 27 Roto Rooter 26 Showplace Cabinetry 2 Southeastern Electric Cooperative, Inc. 3
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FILLING THE HOUSING GAP
SIOUX METRO GROWTH ALLIANCE HOSTS GROWTH SUMMIT
As the Sioux Metro Area grows, so does the need for housing. Our communities are developing, our populations are increasing, and our businesses are growing – we need a place for our people to call home for growth to continue. The reality of this growth is that it comes with costs: Planning, infrastructure, utilities, construction, the land itself, and more.
To address this phenomenon, the theme of the 2023 Sioux Metro Growth Alliance Growth Summit is “Filling the Housing Gap.” The conference will kick off with an evening workshop and social on Sept. 20th, followed by a full day event on Sept. 21st, both at the Holiday Inn & Express Suites in Brandon.
“We are very excited to see what kinds of action items are produced by this event. This year’s theme, ‘Filling the Housing Gap,’ will allow attendees to discuss how they can plan to be proactive as we continue to address the impressive growth in the region,” said Jesse Fonkert, president & CEO of Sioux Metro Growth Alliance.
Centered around the theme of “Filling the Housing Gap,” sessions will include specific and actionable content that will dig deep into the underlying causes of regional housing needs, explore practical solutions, and spark next steps regardless of what stage in readiness or size of the community.
This year’s event will allow participants to spend time with regional economic development professionals and experts from across the region learning about all things related to housing development and planning. The conference will offer speaker sessions, panel discussions, and vendor connections.
“Sioux Metro Growth Alliance’s Growth Summit Conference has been instrumental in equipping the region with economic development knowledge,” said David Doxtad, president of ISG and past chair of the Executive Board for Sioux Metro Growth Alliance.
The conference will also feature keynote speaker Daniel Herriges, editor-in-chief of Strong Towns. Strong Towns is a 501(c)(3) nonprofit media advocacy organization whose mission is to “advocate for cities of all sizes to be safe, livable, and inviting.” At Wednesday’s evening discussion, Herriges will speak on the organization’s “Neighborhoods First” approach. He will also deliver Thursday’s afternoon keynote session titled “Breaking out of the Housing Trap”. For more information about Strong Towns ahead of the Growth Summit, visit www.strongtowns.org
For questions regarding purchasing tickets, sponsorship and event partner information, or any event details, contact Miranda Basye at mirandab@siouxmetro.com
For those interested in attending this year’s Growth Summit, tickets for the event and information regarding sponsorship packages is offered on SMGA’s website at www.siouxmetro.com/about-smga/ growth-summit. //
5 Growing Places | July 2023 // INSPIRATION, EDUCATION & NETWORKING
Heath and Sharese Ihnen with their children,
Daniel Herriges
6 Sioux Metro Growth Alliance | www.siouxmetro.com
JESSE FONKERT RECEIVES STATE AWARD
A PASSION FOR REGIONAL DEVELOPMENT
“Jesse comes in with an energy and a passion to get things done. He’s not ok with the status quo. He wants to really push and move a greater agenda to show real value in the organization,” said Chad Ronshaugen, a local business owner, president of the Dell Rapids City Council, and a board member of the Sioux Metro Growth Alliance.
Fonkert is president and CEO of the Sioux Metro Growth Alliance (SMGA), the largest regional economic development organization in South Dakota. He was recently recognized with the Excellence in Economic Development Award by the Governor’s Office of Economic Development (GOED). Since 2020, Fonkert has led efforts to rebrand the former Lincoln and Minnehaha County Economic Development organizations into SMGA, with the intention of expanding the organization’s footprint to enable communities to achieve success.
“Jesse keeps people on edge,” said Jay Buchholz, key accounts and public relations with Sioux Valley Energy and president of the SMGA Board of Directors. “He can push buttons sometimes – which is good in economic development because otherwise a lot of times it can just be the status quo. He’s actively looking to find different ways for communities to strengthen what they already have so they can be better positioned for getting a new business or maybe a new a residential development.”
A POSITIVE ENERGY IN EVERY CONVERSATION
According to Ryan Solberg, an SMGA economic development manager, “Jesse brings a really extroverted positive energy to every conversation, to every meeting, to everything he does. That really attracts people to him and it attracts people to the mission of Sioux Metro. He builds engagement with our member communities and area businesses and the prospective businesses who are considering growth here.”
Fonkert is a native of Mobridge and a graduate of Augustana University in Sioux Falls, where he double-majored in business administration and government/international affairs. Prior to SMGA, he was the chamber and economic development director for the city of Hartford. He also has experience with the Federal Energy Regulatory Commission, the Sioux Falls Development Foundation and First Premier Bank.
CREATING A BETTER QUALITY OF LIFE
Economic development is an exercise in living out his faith. “As someone called to serve their neighbor, economic development is my attempt to do what I’ve been taught,” Fonkert said, “By attracting new jobs, investments, and people to our region, our work creates a better quality of life for our residents and future generations.”
Economic development is the perfect intersection between business and government for him. “As someone interested in both, economic development allows me to learn about virtually every sector of our economy while working closely with government leaders to deliver results. A job should also be more than just a paycheck – it should be an experience. Economic development is the experience of a lifetime because it allows the practitioner to be a life-long learner and servant.”
Fonkert appreciates the chance to bring people, businesses and communities together because more brains equals more ideas and, ultimately, better results. “I love the thrill of getting a deal or project across the finish line. In economic development, we’re always trying to get to a ‘Yes.’” //
7 Growing Places | July 2023 // LEADERSHIP PROFILE
The people who are engaged with Jesse Fonkert in the mission of economic development all pinpoint “passion” as his prime quality.
Jesse Fonkert
GROUNDBREAKINGS IN THE SIOUX METRO
SALEM READY-MIX, LLC
Salem Ready-Mix, LLC recently hosted a groundbreaking to celebrate the opening of its new facility on five acres in the Salem Economic Development Corporation’s (SEDC) Industrial Park. It will provide ready-mix concrete for commercial and residential use. Salem Ready-Mix, LLC hired 10 new staff positions with a starting wage of $25 per hour. Owner Jesse Koerner and his partners are based in the Mitchell area and hope to continue to invest in the region surrounding the two towns.
KWIK TRIP/KWIK STAR IN HARRISBURG
Kwik Trip/Kwik Star recently broke ground on a new location in Harrisburg. Family-owned and operated from its headquarters in La Crosse, Wisconsin, the convenience store franchise has been in business for more than 57 years. As one of the company’s first stores in South Dakota, Harrisburg will lead the way in welcoming the corporation to the state. In 2022, Kwik Trip/Kwik Star was ranked as the nation’s best gas station for the third year in a row by USA Today 10 Best Reader’s Choice Awards.
8 Sioux Metro Growth Alliance | www.siouxmetro.com
Marmen Energy, a Quebec-based manufacturer of wind towers, celebrated its 10th anniversary in Brandon by announcing an expansion of its facilities and workforce. One of the largest wind tower manufacturers in North America, Marmen will add 50 new people to its Brandon location.
9 Growing Places | July 2023
ENERGY IN BRANDON
MARMEN
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NEW DEVELOPMENT ON ALL FRONTS IN CROOKS: HOUSING, SCHOOLS, COMMERCIAL-INDUSTRIAL
A community working together for the common good has always been a part of Crooks. New housing and businesses are the big and splashy news right now, but Crooks Mayor Bruce Oseby doesn’t want to lose sight of the small town connections and the fact that it is a family friendly place to call home. For example, the nonprofit community club called “Crooks Area Working Together” (C.A.W.T.) organizes, manages and supports local events such as Crooks Community Days and various activities for kids.
Mayor Oseby is gung-ho about all of the town’s residential and commercial activity. But he and the city council have seen what happened to other communities around Sioux Falls when they grew too fast. “We don’t want things to get out of hand. We’re intent on maintaining our small town atmosphere. I think we have a good handle on growth. We don’t want to be going 100 miles per hour. We’re trying to keep it at 30-40.”
Besides the housing developments, office space and event center, Oseby said the greatest need now is for more retail establishments to allow the city to collect additional sales taxes to undergird the financing of municipal improvements.
10 Sioux Metro Growth Alliance | www.siouxmetro.com
// SMALL TOWN SPOTLIGHT
Founded 1904 Mayor Butch Oseby Population 1,362 (2020 census)
Tri-Valley School District is close to completing its new K-4 elementary school on the south edge of Crooks. Photos by Bob Fitch.
Winter-Green Acres is a new event center under construction on the north side of Crooks. The venue is for weddings, corporate meetings and other special events.
Even in the midst of more houses, the town will gain more small town charm when a fishing pond is installed at the new Heritage Pond development in collaboration with South Dakota Game Fish & Parks.
Long-term, he’s pleased that Crooks was able to secure a rural service annexation agreement with local farmers on 40 acres east of town. The land abuts Sioux Falls Foundation Park, home to several major employers. The future Crooks land will be zoned for commercial/light industrial. The annexation agreement ensures any future sales tax receipts from the area are headed to Crooks.
Behind the scenes, there’s work on bringing another major convenience store to town which could trip the trigger to bring a hardware store, too.
HOUSING
The small town feel of Crooks, combined with a variety of nearby jobs, is helping to drive a housing boom. Several developments, representing the potential for more than 100 new homes, are ongoing at: Willow Creek Ridge Estates (DWBP LLC); Heritage Pond (Van Buskirk Companies); and Winter-Green Acres (Ryan and Tammy Winter).
STRATEGIC LOCATION & JOB GROWTH
Crooks is strategically located just north of Sioux Falls near both I-29 and I-90, close to industrial and retail growth on the northern edge of Sioux Falls. They city also has rail connections, which could prove essential for specific manufacturers.
TRI-VALLEY SCHOOL DISTRICT
Voters in the Tri-Valley School District passed a $52 million bond in 2021 to fund infrastructure to serve a growing enrollment.
Tri-Valley Elementary School
The district is adding grades K-4 to its Early Learning Center in Crooks (opening fall 2023).
• 42 classrooms.
Flex break-out areas.
• Multi-purpose gym with a stage plus an auxiliary gym.
Tri-Valley High School
The bond funds a new high school (opening fall 2025) plus upgrades to the athletic complex and other district facility needs. The existing K-12 building will become K-8.
• 26 classrooms.
500-seat auditorium.
Modernized shop.
• Weight room, a competition gym and an auxiliary gym.
AMENITIES & LOCAL FAVORITES
• New Hope Park and ball diamonds; Sunset Park with flag football field; and Palmira Park with tee-ball fields. Siouxland Libraries, Crooks branch.
• Crooks Community Days. 1st weekend of June.
Lunch Thyme Sandwich Shop.
Wooden Nickel.
• Critters, home of Dakota Pizzas.
NEW BUSINESS DEVELOPMENT
Oseby said behind the scenes, there’s work to bring another major convenience store to town, which could trip the trigger to bring a hardware store, too.
• Winter-Green Acres will provide event space for weddings, corporate meetings and other gatherings. It will include indoor and outdoor seating and a large overhang patio. Seating with be available for about 425 people in the 10,000-square-foot building which is set on 6 acres.
• Willow Creek Crossing includes three commercial sites and nine acres where the company will build assisted living and senior housing.
Minnehaha Funeral Home will build a new chapel in Crooks.
• A dentist’s clinic will locate in Crooks. A new strip mail will be built in Willow Creek Crossing.
• Only three out of 18 light industrial sites remain at New Hope Industrial Park, a project of the Crooks Development Corporation.
11 Growing Places | July 2023
Tri-Valley School District is constructing a new high school building near Colton.
TOUR OFFERS INSIGHT TO ECONOMIC DEVELOPMENT LEADERS
Tours hosted by the Sioux Metro Growth Alliance help foster relationships and develop strong partnerships for growth. Each year, SMGA hosts bus tours in Lincoln and Minnehaha counties showcasing the growth, development and challenges of businesses in local communities. Thanks to event sponsor DGR Engineering for hosting the Minnehaha County Bus tour in June. Guests enjoyed an expansive look at businesses in the region.
After casting the vision for the future Maple Street connecting the buzzing eastern side of Sioux Falls, Spartan Emergency Response in Brandon showcased its on-site engineer work and production facilities for firetrucks.
Lippert, makers of Luverne truck parts and accessories, offered “Production 101” lessons on its various parts, offering insight into all phases of the operation. A walk through the operation demonstrated metal shaping, cutting, welding, painting and many more skills.
With the support of the Minnehaha County Department of Transportation, lunch included a presentation by DGR Engineering and a utility partner panel with experts from Xcel Energy, East River Electric, and Sioux Valley Energy. Additional highlights of the day included a visit to Xcel Energy’s Angus Anson Power Plant, Foundation Park, Raven Innovation Campus and the Crooks Industrial Park
According to Sioux Valley Energy’s Brandon Lane, “Sioux Metro Growth Alliance bus tours provide an avenue for our local communities to showcase their growth and future potential of the region. The diversity of the participants, ranging from county commissioners to small business owners, provides a valuable learning opportunity to have conversations around economic development strategies, best practices, and innovative initiatives.”
12 Sioux Metro Growth Alliance | www.siouxmetro.com
//
COUNTY TOUR
MINNEHAHA
Spartan Emergency Response in Brandon. Photos by Miranda Basye.
13 Growing Places | July 2023
Raven Innovation Campus.
Lippert, a manufacturer of parts and accessories for Luverne Trucks, located in Brandon.
Trust Your Local Roofing Experts
SMGA has member communities in Minnehaha, Lincoln, McCook and Turner counties. Regardless of the city or county, local leaders appreciated the opportunity to take a deeper look at where their regional neighbors are succeeding or struggling. SMGA’s Ryan Solberg, who heads up economic development efforts in Lennox and Worthing, shared his thoughts on the tour’s value. “Both communities I serve are in Lincoln County, but it is still great to be able to go through Minnehaha County and see how they are growing and how they are tackling similar issues to what we are facing. It provides ideas for what we can be doing differently to grow to our full potential.”
The SMGA tour of Lincoln County is August 15th. //
14 Sioux Metro Growth Alliance | www.siouxmetro.com
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James Hofer, Owner/ Founder
Xcel Energy’s Angus Anson Power Plant.
The tour’s lunch break included a presentation by DGR Engineering plus a panel discussion by the region’s utility experts.
Greg O’Dea is director of field operations and safety for Fiegen Construction Co. O’Dea has been in construction for 47 years, doing everything from residential footing and foundations to high rise commercial construction. He keeps current with continuing education in multiple topics, including apprenticeships and leadership training. He also holds several individual certifications which allow him to train as well as inspect completed work for installation compliance and quality.
HOW HAS THE INDUSTRY CHANGED OVER THE YEARS?
I think the construction industry has changed in almost every way including technology used, size, scope, and material types. Meanwhile, in other ways, it hasn’t changed at all. At the end of the day, someone still has to put everything together and create what was designed on paper.
WHAT’S YOUR AVERAGE DAY LOOK LIKE?
I start every day at our main shop checking in with superintendents for the plan of the day. I may have to arrange to move men, equipment, materials wherever they need to be. Then I head to the office to meet with our project managers to discuss their specific jobs. After the check-ins are done, I head to the field to check job sites, always checking safety first. At the end of the day, though, I really don’t think there are too many average days in construction. We deal with too many variables to be average, every day is different and you must manage what you can and deal with what else the day brings you.
WHAT’S THE MOST REWARDING PART OF YOUR JOB?
I love what I do for a living, so to pick the most rewarding thing would be difficult. Going from an empty field or space to a finished building is an incredible feeling. Most people only see the finished product, but all the craftsmen that worked on it know the trials that brought it to completion. Through the
GREG O’DEA
CONSTRUCTION CO. DIRECTOR OF FIELD OPERATIONS AND SAFETY
years, the most rewarding part is the incredible people I have worked with. Construction people are some of the best there are.
ANY PROJECTS YOU’RE PARTICULARLY PROUD OF?
That’s hard to pick, but I think the Sanford Pentagon and Field House projects really stand out. Both were challenging and it’s great to see that the community uses them both a lot. I see them on the news and ESPN frequently and it makes me proud. I really appreciate seeing people enjoying what we’ve built.
WHAT’S A MESSAGE YOU’D SHARE WITH HIGH SCHOOLERS?
A construction career is a good, honorable way to make a good living. There is just something about the satisfaction of a hard physical day’s work with real results you can see every day. There are also many opportunities to get training in the trade of your choice. At Fiegen Construction, we offer multiple ways to earn a living while getting the proper training to excel in the industry and graduate with little or no debt. How good would it be to start your career with an education and little or no debt? That’s one of the benefits I’m proud that we offer. //
15 Growing Places | July 2023
// WORKFORCE PROFILE
FIEGEN
MEET GREG O’DEA: ‘NO SUCH THING AS AVERAGE DAYS’
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HELPING BUSINESS OWNERS ACHIEVE DREAMS WITH 504 LOANS
After turning off the office lights at the end of the workday, the team at the South Dakota Development Corporation rests easy if they’ve helped a business owner take a step towards fulfilling his or her dream.
“At the end of the day, we’re an economic development organization that wants to see our community and state grow. We are here to help borrowers fulfill their dreams,” said Brad Jankord, who helps facilitate SBA 504 loans with the South Dakota Development Corporation (SDDC), an SBA Certified Development Company.
SDDC was created by Gov. Bill Janklow in 1983 as a publicprivate collaboration to help South Dakota business owners better utilize the Small Business Administration 504 Program, which provides low interest, fixed-rate loans for small businesses.
Jankord said the SBA defines “small business” as a company with $15 million or less in tangible equity, along with other metrics that define the company such as employee numbers, etc. Almost any small business that is owneroccupied/owner-run qualifies for a 504 loan. “On my day-today, I’m working with hair salons, mechanics, manufacturers, hotel owners and others. It’s really across the board.”
The program can provide loans for new equipment, however, the majority of its activity is focused on helping business owners purchase their own commercial or industrial property and/or helping them to build a new property. “When you think about small business ownership, it really is a journey. The 504 is typically for someone who is well into their business journey; it’s suited for an established business that might be looking to purchase its own building versus leasing property or facilities from someone else, we also help start-up companies as well,” Jankord said.
Possessing one’s own business property can give an owner peace of mind, providing security that the business location isn’t going to be sold out from underneath them. SDDC offers options for 10-, 20- or 25-year term loans. Borrowers can apply for loans ranging from $100,000 to $5 million (for the SBA portion, but projects as large as $15 million); and loans can be used to refinance qualified existing commercial real estate loans.
While each business and loan is unique, SBA 504 loans typically have a 50-40-10 structure:
50% is financed by a regulated lender that receives a first mortgage position on all project collateral.
• 40% is provided by the South Dakota Development Corporation via the SBA. 10% is provided by the borrower in a cash or equity injection. This is the minimum equity contribution. The SDDC may require a larger contribution depending on the type of project or business.
Jankord said SDDC works closely with the majority of banks and lenders in South Dakota, who would be a borrower’s first point of contact. Part of his job is to educate lenders about the 504 program, helping ensure the program is utilized when applicable.
The SDDC is a small, but efficient team. CEO Jennifer Oberg is the office expert in government financing and David Moreman is the expert in closing 504 transactions. Jankord is the resident finance and real estate “nerd.” He’s a native of Redfield; and has a finance degree from the University of South Dakota and a master’s degree in real estate from the University of St. Thomas.
“Helping business owners fulfill that dream of real estate ownership is where my passion and knowledge merged together for me.” He likes to put clients at ease by telling them that while it might be the first time they’ve purchased a business property, it’s not the first time he’s financed one. “Working with local bankers, we have the necessary experience and the expertise in this department. The numbers might look scary to you, but we’re not going to do a deal that is going to be bad for the borrower or the lenders. The last thing any of us want to do is turn someone’s dream into a nightmare. It’s a tough conversation when I have to tell customers, ‘Hey, I don’t think it’s the right time.’ At the same time, it’s better to have that conversation on the front end than on the back end when their business can’t make their loan payments and things start to flounder.”
It’s a point of pride for Jankord to be able to point out a business property to his children and be able to tell them that their dad helped make that happen. “It honestly all boils down to just helping people. How do I use my personal talents in finance and real estate to actually help people?” //
17 Growing Places | July 2023 // CONVERSATIONS
Brad Jankord
Adapted from a recent SMGA Growing Places podcast
REDUCING ODOR AT DAIRIES AND CAPTURING RENEWABLE ENERGY
By Bob Fitch
South Dakota’s dairy industry is the newest ag sector to become a source of renewable energy. Diverting dairy manure to anaerobic digesters reduces a farm’s local greenhouse gas emissions by capturing the methane in raw biogas form and repurposing it as pipelinequality renewable natural gas. Dairy is the fastest growing segment of South Dakota agriculture, with the number of dairy cows expanding by 150 percent in the past 20 years. After hitting a low of 80,000 milking cows in the early 2000s, South Dakota is now home to approximately 200,000 cows.
This remarkable increase in dairy production has captured the attention of bio-energy firms such as MBL Bioenergy, Full Circle/Brightmark RNG Holdings and DTE Vantage – all of whom are working with South Dakota dairy producers on anaerobic digester projects to produce renewable natural gas. Sioux Falls-based A1 Development Solutions is working in concert with MBL on eight separate digesters at nine different dairies with sites in Minnehaha, Moody, Brookings, Deuel and Grant
counties. Total investment across the MBL projects is about $250 million.
For Minnehaha County dairy producer Lynn Boadwine, the motivating factor to add an anaerobic digester was easy to identify. “I live on the farm. And really the driver for me was reducing the odor. If there’s somebody who wants to invest in these on my farm, and they’re good for the environment, they’re good on odor, and the manure stream is a step further processed, I thought ‘That’s ok.’” In 2020, he leased land to Brightmark to build a digester on his family farm. It became operational last year and Boadwine said “We can definitely tell around here that we have less odor.”
Even in a state generally pro-agriculture such as South Dakota, less odor is a positive attribute as the state’s dairy sector looks towards continued growth. Dairy growth, in turn, positively impacts economic development up and down eastern South Dakota, including Minnehaha, Lincoln and Turner counties. A study by The International Dairy Foods Association said South Dakota’s dairy industry generates more than 4,200 jobs and has an annual direct economic impact of $1.7 billion.
The EPA describes renewable natural gas (RNG) as a biogas upgraded for use in place of conventional natural gas. Besides dairy farms, it can be sourced from landfills, wastewater treatment plants and waste products from
18 Sioux Metro Growth Alliance | www.siouxmetro.com // GROWTH IN AGRICULTURE
food production; and can be used for transportation fuel, thermal applications, electricity generation or bioplastic feedstock.
As a transportation fuel made from organic waste, RNG reduces carbon emissions by an average of 300 percent versus diesel. In essence, renewable natural gas reduces carbon on two fronts: at the source where it’s made and on the road. From the perspective of environmental sustainability, Boadwine said, “It’s important to participate when the opportunity arises.”
In and of themselves, anaerobic digesters are not a financial game changer for dairy producers, he said. “We do a lot of things in our dairy business in the name of sustainability, whether it’s how we do our manure application or how we manage our cows and our feeding. If it improves global sustainability and improves our sustainability to survive in difficult economic times, that’s just being efficient. Ultimately, in the end, more milk per cow just about always wins.”
Boadwine said livestock producers shouldn’t turn a blind eye to the industry’s environmental impact and would do well to heed advice from Dr. Frank Mitloehner, a professor and air quality specialist in the Department of Animal Science at UC Davis, who recently spoke at a South Dakota Farm Bureau meeting in Plankinton, S.D. In a presentation to lawmakers in Ireland last year, Mitloehner said, “Make no mistake, animal agriculture has indeed played a role in advancing atmospheric warming … not to the extent that other sectors such as transportation and energy have … but a role nonetheless. Furthermore, it can help to limit warming further.”
While some farmers may not want to hear this message, it comes from a researcher who
has been accused by environmental groups of being in the pocket of the livestock industry. Mitloehner is a public proponent of the incredible efficiency of American agriculture, a sector making up 1 percent of the population which feeds the other 99 percent. “Simply put, people want to eat animal-sourced foods –be that beef, chicken, pork or lamb. That choice doesn’t have to fly in the face of environmental responsibility … (but it) means finding solutions that are more feasible than telling people what they can and cannot eat,” the researcher said in a blog post. He believes animal agriculture can both help curb climate change and feed a rapidly growing global population – but it will require leaning into American efficiencies and the innovation.
Federal and state public policy initiatives have incentivized renewable, carbon-negative energy; specifically the U.S. Renewable Fuel Standard Program, the California Low-Carbon Fuel Standard (LCFS) and Oregon LCFS programs. Use of RNG can provide benefits in terms of fuel security, economic revenues or savings, local air quality and greenhouse gas emission reductions. //
19 Growing Places | July 2023
SOURCES www.epa.gov www.environmentalleader.com www.dtevantage.com www.brightmark.com www.geneticliteracyproject.org www.desmog.com/frank-mitloehner/
20 Sioux Metro Growth Alliance | www.siouxmetro.com // SPOTLIGHT ON TEA WELCOME TO TEA, SOUTH DAKOTA Tea has small town vibes with big town amenities plus quick connections to attractions and services in Sioux Falls. Photo by Marcus Vasecka. INCORPORATED 1906 6,256 MAYOR CASEY VOELKER A growing population + a growing business sector equals construction jobs in Tea. CITY ADMINISTRATOR DAN ZULKOSKY TEA POPULATION 134 165 148 165 151 188 302 729 786 1,742 3,806 5,598 6,256 1910 1920 1930 1940 1960 1980 2000 2020 1950 1970 1990 2010 2021 (Census 2021 estimate)
AMENITIES & ACTIVITIES
Prairie Trails Park includes a picnic shelter, playground equipment and soccer fields.
Tea Athletic Complex has two baseball fields, and an open space for soccer and flag football. The second phase will add restrooms, concessions and picnic shelters; plus add multiple fields for t-ball, baseball and soccer.
Howling Ridge Park is equipped with tons of fun for all kids.
Park Bike Path is approximately ¾-mile and passes by the Tea Park Pond where the public can fish.
SUMMER PARKS AND RECREATION PROGRAMS
Tea has a vibrant Summer Recreation Program in during June. Multiple competitive sports teams are available including soccer, volleyball, softball, baseball, basketball, flag football, hunt safe, and pickleball.
MORE SEASONAL FUN
2 Golf Courses are nearby: Bakker Crossing and Spring Creek Country Club.
Dakota Alliance Soccer Club is one-half mile west of the city (privately-owned).
Country Apple Orchard and Heartland Corn Maze are located nearby.
21 Growing Places | July 2023
BUILDING PERMITS 455 PERMITS ISSUED COMMERCIAL PERMIT VALUATION RESIDENTIAL PERMIT VALUATION (2022 Year-End) TOTAL BUILDING PERMIT VALUATION $69.1M $34.2M $34.9M STRONG BUSINESS COMMUNITY TO MEET YOUR NEEDS Members of the Tea Chamber for Development include: 7 advertising or media companies 4 automotive and marine service firms 9 building trades, construction and design firms 9 companies providing business and professional services 3 cleaning services 4 computer / telecommunications firms. 14 firms in finance, insurance, investment, mortgage or banking 6 healthcare related firms 10 restaurants, food or beverage Plus services to help you with pets, tattoos, counseling, lawn care, hardware, arts and crafts, interior design, family fun and churches.
A GROWING EXPORT MARKET ADDS TO RUFF LAND’S SUCCESS
By Bob Fitch
Exports have helped Tea manufacturer Ruff Land Performance Kennels boost its sales, profits and number of employees over the past five years. The Small Business Administration recently recognized the company for its progress making inroads into international markets with the South Dakota Exporter of the Year Award.
In 2017, Ruff Land received SBA funding to purchase a building and over time has purchased four buildings totaling more than 40,000 square feet. In addition to assistance from the SBA, Ruff Land has utilized the services of the South Dakota Export Assistance Center, a division of the Department of Commerce.
The business has grown from four employees to 26 full-time and two part-time. Rapidly increasing sales and revenue landed the business a spot on the Inc. 5000 list. Orders from outside the U.S. are regularly received from Japan, South Korea, Canada, Ecuador, Australia and England.
Ruff Land, manufactured by Roto Mold, has become the so-called “breed standard” in the world of performance kennels for dogs. Like many great product introductions, necessity is the mother of invention. When recession hit the U.S. economy in 2008-09, sales dropped for Doug Sangl and Lyle Van Kalsbeek, founders of Roto Mold. Sangl and Van Kalsbeek are experts in custom rotational molding and were producing items such as gas tanks, bait boxes, farm feeders, roping steer dummies and deer feeders. Looking to stabilize their market, the business partners decided they needed to manufacture and sell a product of their own.
That necessity intersected with the world’s need for a better dog kennel. Talking with some of their fellow hunters, outdoorsmen and dog lovers, they all agreed no one really liked the standard two-piece kennel which was held together with screws and didn’t have much durability, especially when hunting dogs were the cargo. Improving the safety of dogs in transport has always been a guiding principle.
22 Sioux Metro Growth Alliance | www.siouxmetro.com
Alisa Turner, CEO of Ruff Land Kennels of Tea.
//
SPOTLIGHT ON TEA
RESEARCH AND DEVELOPMENT
Several years of research, development, trial and error followed. The result was Ruff Land™ Performance Kennels which feature one-piece roto-molded construction from UV-stabilized polyethylene. In rotational molding, a heated mold is filled with a charge or shot weight of material. It is then slowly rotated causing the softened material to disperse and stick to the walls of the mold, forming a hollow part.
This makes for a much stronger kennel. The strength of the kennel has held up the roof of a vehicle enough in some catastrophic crashes to not only save dogs, but also to prevent drivers from being crushed. The Ruff Land kennel also features:
• Requires no assembly and no bolt-through ledge.
• Cleans up easier because there are no seams.
• No cracking even in extreme subzero weather.
According to CEO Alisa Turner, it took time for the kennel to gain market acceptance. “Doug went to a lot of trade shows and dog shows, bringing samples to display. He started to get a few accounts and then the wife of the owner of Cabela’s talked to him. He didn’t even know who she was. But that contact proved to be fortuitous.” Sales began to ignite around 2011.
Many of the most famous names in outdoor sports now sell the kennels; veterinarians and trainers recommend them; and sales are made directly to customers through www.rufflandkennels.com. A new software program makes its website user-friendly for international visitors
to read descriptions and identify pricing. Referrals have expanded the company’s customer base to include breeders and trainers and owners of show dogs and dock diving dogs.
When Turner was hired as general manager in 2012, the team consisted of Sangl, Van Kalsbeek and her. “When I first started, I was the shipping person, the customer service person, the purchaser and the accounts payable,” she said. Since then, the company has expanded multiple times. Turner is now a co-owner and the chief executive officer.
GROWING WITH TEA
“Tea is growing and we’ve grown right along with it,” she said. As Ruff Land has expanded, staying in Tea has been the company’s choice. When the city annexed the industrial park on its east border, it proved beneficial for the company, which gained municipal utilities, street lights and police presence. The rebuild of 271st Street west of I-29 improved access to their facility for both incoming and outgoing shipments and for employees. Assistance from the Governor’s Office of Economic Development combined with the overall businessfriendly climate of Tea and the state of South Dakota have been factors in Ruff Land’s success.
While the design of Ruff Land Kennels is patented, that hasn’t stopped competitors from trying to catch up. “Everybody’s chasing us constantly. We were first in the market and we’ve developed a loyal customer base. We’ve proven ourselves. People know us and trust us,” Turner said. //
23 Growing Places | July 2023
20 YEARS OF TITAN PRIDE!
By Dr. Jennifer Nebelsick Lowery, Superintendent Tea Area School District
The Tea Area School District was established through a community’s labor of love in July 2003. Twenty years later the district has quadrupled in size to nearly 2,400 students, three elementary schools, a middle school, and a high school.
We are known for our innovation and perseverance. Our academics are strong with a junior kindergarten through high school STEM (Science Technology Engineering and Mathematics) curriculum and 6th-12th grade career pathways. Our schools are purpose-driven as we strive to live out our mission to Educate & Empower. Titan classrooms focus on student goals grounded in identifying what success looks like for each student as a learner. Academics are supported by our award-winning arts programs and statechampion athletics.
We celebrate people who live out our values: Teamwork, Innovation, Communication, and
Accountability. Twenty years ago, the community came together to build Tea Area and, 20 years later, the community continues to support and build the legacy of the Tea Area School District. We are grateful to partner with our community and look forward to opening our high school expansion project in the fall of 2024. Together, we are defining Titan Pride. //
TEA AREA SCHOOL DISTRICT
5% Annual Average Growth
54% of growth is due to the incoming kindergarten class
Kindergarten, 2nd grade and 6th grade are growth years.
900 more projected students in the next five years
24 Sioux Metro Growth Alliance | www.siouxmetro.com // SPOTLIGHT ON TEA
Dr. Jennifer Nebelsick Lowery, Superintendent
Artist’s rendering of Tea Area High School after expansion is completed.
25 Growing Places | July 2023 TEA AREA SCHOOL DISTRICT ENROLLMENT GROWTH 2500 2003-042004-052005-062006-072007-082008-092009-102010-112011-122012-132013-142014-152015-162016-172017-182018-192019-202020-212021-222022-23 2000 1500 1000 500 0
Photos by Marcus Vasecka
Left to right: Tea Area High School, Middle School and Legacy Elementary School.
AND TIGERS DEMONSTRATE SKILLS AT WELDING
Students from welding classes at Harrisburg High School and Tea Area High School demonstrated their skills at the third annual “Welding Showdown” hosted by the DeGeest Corporation in Tea on March 24. Tea Area High School captured the showdown traveling trophy this year.
The competition showcases careers in welding which require sought-after skill sets and are widening to offer specialty positions in robotics. The competition is judged by industry welding experts. The students perform a welding test similar to the one required of welders applying for a position at DeGeest Corporation.
Students get to meet and learn from professionals in the industry and get to use more advanced equipment than is normally available in the school shop. //
26 Sioux Metro Growth Alliance | www.siouxmetro.com 24HOUR SEMERGENCY ERVICE TRUSTED SERVICE BY THE SAME SIOUX FALLS FAMILY SINCE 1960 O f f e r i n g R e s i d e n t i a l a n d C o m m e r c i a l S e r v i c e s P i p e C l e a n i n g H i g h S p e e d D r a i n C l e a n i n g F l o o r D r a i n s S e p t i c a n d D r a i n F i e l d s S h o w e r s a n d T u b s 605-336-8505 | S e w e r L i n e s S e w e r & D r a i n C l e a n i n g P l u g g e d T o i l e t s V i d e o C a m e F r o z e n S e w e www.rotorootersiouxfalls.com // SPOTLIGHT ON TEA
SHOWDOWN
TITANS
Students from TAHS and HHS competed in the third annual Student Welding Showdown at DeGeest in Tea. Photo courtesy of DeGeest.
COMMUNITY FOUNDATION ENHANCES QUALITY OF LIFE
The Tea Area Community Foundation was created by and for local citizens to improve the quality of life in Tea. Gifts to the Foundation grow over time thanks to the benefit of a pooled investment that generates long-term asset growth. The Tea Area Community Foundation pursues opportunities to improve lives and strengthen the community.
Through the power of endowment, approximately $80,000 has been granted to nonprofits and causes throughout the Tea area, touching the lives of local people. More than $12,000 in grants were awarded in 2023 including:
Tea Community Library for summer programs and an open house.
• City of Tea to hire pickleball lines painted on the tennis courts at the Tea Athletic Complex.
Tlink for Clean Up Day and Kickball Tournament.
• Lincoln County 4-H for a new photography program for Tea area youth.
Tea Area Food Pantry to purchase food through Feeding South Dakota and local grocers.
• Lincoln County Fairgrounds Foundation for help with construction of a livestock barn.
Junior Achievement of South Dakota for programming in 68 classrooms in the Tea Area School District.
• Trinity Lutheran Church for essential non food items to supplement the food items for the monthly distribution.
Other organizations supported in recent years include:
• Tea Area School District
• American Legion (Blau-Deboer Post)
• Tea Fire and Rescue
• Tea Housing and Redevelopment Commission
Tea Area Parent Teacher Organization
American Legion Auxiliary (Tea)
Boy Scouts of America - Sioux Council
Girl Scouts
For more information about the Tea Area Community Foundation: www.sfacf.org/about-us/regional-foundations/tea/tea www.facebook.com/TeaAreaCommunityFoundation
If you call South Dakota home, you’ve worked,
27 Growing Places | July 2023
By Bob Fitch
A LEGACY STORY WRITTEN BY MODERN AUTOMATION
By Bob Fitch
operation today has 70 employees working in a 133,000 square foot facility. While steel fabrication and finishing remains central to DeGeest’s business, it is now making its mark internationally in the field of robotics, as in, the automation of manufacturing processes.
Through its steel fabrication and finishing capabilities, family-owned DeGeest provides hundreds of thousands of parts and subparts to OEMs (original equipment manufacturers) in the fields of agriculture, forestry, mining, earth-moving and utilities. Founded as DeGeest Manufacturing by Clint DeGeest in 1976, the
“Too often, we question the value of our own experience, thinking ‘Why would they want to hear what I have to say?’” said Alicia DeGeest, marketing/ media relations officer at the company. “However, globally, people are hungry for good ideas and problem solvers. Established brands want to hear what we have to say and build relationships with us. They’re excited to be a part of what we’re doing. It’s so easy to fall into that ‘I’m in Small Town, South Dakota, what do I have to give to somebody in Europe?’”
Company president Derek DeGeest said, “We have partners in Germany, Italy, and Austria. We’re bringing together their equipment and our
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For companies that have built a strong local presence and are now looking for ways to grow, a Tea-based manufacturer sends a message urging people to look outside their community and even beyond national borders to build relationships that can bring economic benefits back home.
Members of De Geest family. Front row: Alicia and Glenyce. Back Row: Derek, Scott and Matt. Glenyce’s husband, Clint, founded the company in 1976. All photos courtesy of DeGeese.
Welding a large mower deck at DeGeest in Tea.
// SPOTLIGHT ON TEA
Experienced staff play a critical role in programming the welding robots.
production experience to create new products that U.S. manufacturers need. I can say confidently: We can do things that no one else in the world can do for manual welders.” Derek and his brother, Matt, represent the third generation of the family, following in the path set by their grandfather and their own father, Scott.
AUTOMATION ADDRESSES SEVERAL CHALLENGES
Traditionally, many old school manufacturing jobs were physically demanding and workers couldn’t stay in the positions until retirement. “We needed to automate our operation to develop jobs into careers so we can keep our people longer; we want them to stay until retirement,” said Derek. Seventy-five percent of all skilled trade workers are over the age of 45. It’s expected that 2.4 million manufacturing jobs will go unfilled by 2028.
In addition to the demographic challenges and the focus on employee careers, a corresponding reason to further automate manufacturing is the fragile nature of the supply chain and availability of materials made so evident during Covid. “For us to be a free nation, we need to be more self-sustaining, to build things on our own. Otherwise, we’re at the whim of what other countries or companies want to do; and that puts us in such a vulnerable place, unable to control our costs or supply other American companies,” he said.
Alicia said there is a mindset shift in society where people are realizing robots and other aspects of automation are not taking away jobs. Instead, Derek added, “It’s augmenting and helping people develop to a higher level of problem solving and engagement with their work. We’re automating repetitive work and creating opportunities to work in highly-engaged skill sets.”
He continued, “We have crazy talented people at all levels – software development, product development, engineering and production. We have a production showroom and a research and development environment. We’re rapidly producing new products, and then getting feedback from our own production team on how to make them better.” Alicia added, “Empower your people. You’ve hired talent, let them think for you, let them evaluate things, give them those freedoms, and it’s amazing what you can do.”
European partners in the automation frontier include Fronius International, an Austrian-based manufacturer active in welding technology. Another partner is Lesta, an Italian-based company specializing in software applications in robotics finishing. Lesta robots can duplicate the precise movements of a company’s best painter and repeat the movements on future parts. In
essence, the movements of a welder or finish painter with decades of experience are captured for ongoing use.
According to Alicia, “It’s a fantastic legacy story. We have welders with 35 years of experience, plus the integrity they’ve worked so hard for in their career, being able to pass down that experience to multiple people and companies because it’s going to go into the brains of a welding machine and being used by entry welders to help them be successful.”
SHARING KNOWLEDGE WITH OTHER MANUFACTURERS
Derek said, “This entire venture is bigger than just ourselves. If we don’t find solutions to help the rest of the industry, our company and the livelihoods of our employees will be threatened. By helping others develop these processes, we’ve became an integrator that uses what we sell. If companies in our field succeed, it helps keep manufacturing in the U.S.”
Positioned now as one of the nation’s foremost experts in automation, Derek said, “DeGeest helps train and show other companies how to do it successfully; not by just giving them a robot and saying ‘good luck,’ but by offering continued support so it works.”
ENGAGE WITH SCHOOLS
Another point Derek and Alicia drive home is the importance of engaging with local schools, who have re-opened the doors to technical education.
in the 1970s, the United States began to see a decline in manufacturing. Previously, high school education provided dual tracks of educational focus, one for skilled trades and towards four-year colleges. The decline in manufacturing caused junior and senior high schools to drop shop and skill classes. College-for-all was promoted by administrators, teachers and guidance counselors as the only means to achieve career and financial success, Derek said.
But the pendulum is swinging back. “There have been big shifts happening in our school systems and in our government in the past 10 years. We’re all boots-onthe-ground trying to fix this,” Alicia said. “So reach out to your schools, get involved in education, whether it’s just coming in for a day and offering your insights or by giving product or tools. Monetary contributions are always nice, but connections and involvement are vital.” She advised opening doors to student tours, especially for the younger kids. Start early showing them how engaging and fulfilling your career track is and financially rewarding it can be. //
29 Growing Places | July 2023
SIDE-BY-SIDE IN THE SIOUX METRO SALES TAX RECEIPTS, Q1, 2023 | DATA SOURCE: SD DEPT OF REVENUE
Humboldt and Valley Springs data was not available.
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IN THE SIOUX METRO BUILDING PERMITS, Q1, 2023 | DATA SOURCE: INDIVIDUALLY FROM EACH MUNICIPALITY Total Number of Building Permits Issued Total Building Permit Valuation Commercial Permit Valuation Residential Permit Valuation Baltic 11 $278,568 $77,000 $201,568 Crooks 4 $328,245 $289,117 $39,128 Hartford 28 $12,078,154 $11,125,354 $952,800 Tea Worthing 30 4 $40,772,696 $394 $39,000,000 $0 $1,318,070 $394 Canton Centerville 5 3 $34,093 $51,400 $0 $0 $34,093 $51,400 Lennox 10 $642,179 $450 $641,729 Brandon 24 $1,320,637 $167,142 $1,153,495 Colton 4 $152,008 $122,653 $29,355 Salem 6 $65,493 $65,493 $0
SIDE-BY-SIDE
% CHANGE Baltic 3.87% Crooks 25.98% Hartford 15.68% Tea 96.26% Canton Centerville -3.54% Garretson 3.83% Lennox 21.03% Worthing 13.16% Brandon 20.63% Dell Rapids 15.72% Humboldt 5.90% Valley Springs 3.20% Colton -0.10% -4.25% Harrisburg 8.11% Salem 12.72% REGION TOTAL REGION TOTAL 2023 $73,385 $96,598 $391,389 $877,078 $330,167 $151,062 $273,625 $49,831 $1,318,392 $405,668 $74,851 $52,698 $49,750 $61,598 $732,018 $159,223 $5,097,333 $55,723,867 2022 $70,652 $76,675 $338,344 $446,903 $342,290 $145,483 $226,072 $44,036 $1,092,926 $350,574 $70,678 $51,063 $49,800 $64,331 $677,081 $141,260 $4,188,168 129 21.71%
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