Dakota Resources Newsletter: Winter 2015

INSIDE THIS ISSUE

AT A GLANCE

Dakota Resources offers four key initiatives –––––––––––––––––––––––––––

EUROPE COMES TO SD

Find out what Zorba is, and how it’s changing our rural landscape –––––––––––––––––––––––––––

ARLINGTON GETS A BOOST

CIF loan is part of a bigger picture –––––––––––––––––––––––––––

CIF ON THE ROAD

Meet two of our favorite road warriors –––––––––––––––––––––––––––

OPPORTUNITY KNOCKS

National CDFI organization embraces Dakota Resources –––––––––––––––––––––––––––

RURALIZE YOUR POTENTIAL

Video explains what, why and how

WIN TER 2015 | 2016 N E WSLE T T E R

DAKOTA RESOURCES:

If you’re reading this newsletter, there’s a good chance you have a passion

THE WHO,

for rural South Dakota. Good. We have something in common.

THE WHAT

After all, the core mission of Dakota Resources is to help enrich rural

AND THE HOW.

communities and empower people across rural South Dakota. While that sounds significant (and we assure you it is) some people still wonder exactly what it is we do?

Hopefully this newsletter helps clear that up a bit. While we’re focusing this issue on one of our four key areas – capital development through the Capital Investment Fund – we’ll also outline our three other key initiatives as we strive to streamline the explanation of who we are, what we do and how we do it.

If you still have questions or would like to hear more, that is one thing we do very well. The coffee is always on and our door is always open.

HIGHLIGHT INITIATIVE: THE CAPITAL INVESTMENT FUND. ––––––––––––––––––––––––––––––––––––––––––––––––––– Many people come to know Dakota Resource through our Capital Investment Fund. It was the first product provided by Dakota Resources, back when we were known as South Dakota Rural Enterprise. The Dakota Resources Capital Investment Fund (CIF) provides low interest, unsecured loan options to economic development corporations and revolving loan funds without restrictions on the type of project or business being financed.

Helping South Dakotans ruralize their potential while utilizing the people, resources, technology and possibilities available in rural communities is the core of who we are.

We made a video all about it – just go to ruralizeyourpotential.com and enjoy!

AT A GLANCE WHO WE ARE: Even longtime partners of Dakota Resources don’t always know everything we do for rural South Dakota. As a catalyst for economic development and a champion for rural vitality, Dakota Resources offers

FOUR KEY INITIATIVES that allow us to help rural communities in South Dakota. These initiatives are how we make an impact.

CAPITAL DEVELOPMENT

ENTREPRENEUR DEVELOPMENT

HOUSING DEVELOPMENT

LEADERSHIP DEVELOPMENT

WHAT WE DO: WE ENRICH COMMUNITIES by investing our time, resources and expertise in rural partners who share our vision for growth and sustainability.

WE EMPOWER PEOPLE

&

by providing rural leaders and community members with innovative tools, insight and guidance for driving change within their communities.

HOW WE DO IT: •

WE DEDICATE staff, resources and expertise to rural South Dakota economic development

•

WE BUILD committed, long-term partnerships with invested rural communities

•

WE HELP rural communities retain, build, expand and diversify their businesses and industries

•

WE ENGAGE rural community members in developing and achieving action-oriented initiatives

•

WE ACCELERATE the growth of second stage entrepreneurs

•

WE MATCH funds for financial products with the Dakota Resources Capital Investment Fund

•

WE CONNECT rural communities to each other and to resources

•

WE CHAMPION statewide rural economic development

THE CAPITAL INVESTMENT FUND:

“To be one of the first places in the United States to offer this type of technology is really special.”

- JERRY ZEIMETZ BERESFORD CITY ADMINISTRATOR

CIF LOAN HELPS BRING EUROPEAN TECHNOLOGY TO RURAL SOUTH DAKOTA. The word might not mean anything to you now, but it will mean big things for Beresford in the future.

ZORBA is coming to Beresford, South Dakota.

Tons and tons of zorba.

Zorba is recognized as “a mix of shredded and pre-treated non-ferrous scrap metals.”

This is generally the stuff you find in landfills and junk yards. By next spring, an innovative recycling/sorting company in Beresford – one of the first of its kind in the United States – will be sorting through shipments of zorba to separate out small particles of copper, lead, brass, magnesium, nickel, tin, zinc and precious metals for re-use in new materials.

The company, operating as Dakota Metals, chose the rural community of just over 2,000 people after visiting several locations in Iowa, Minnesota and Nebraska. The facility will add up to fifty full-time jobs to the area.

“Anytime a small town has an opportunity to bring in a facility like this, it’s exciting,” said Beresford City Administrator Jerry Zeimetz.

“To be one of the first places in the

United States to offer this type of technology is really special. They told us the business climate of South Dakota, the vitality of our community and the package we brought to the table helped them make the decision to call Beresford home.”

Dakota Resources is proud to be part of that package, as the City of Beresford utilized a $570,000 Capital Investment Fund loan to help fund Dakota Metals’ operating costs.

Dirt is now being moved for construction of the new 39,000 square foot sorting facility, which is being built on 8.5 acres of land in the industrial park. There is opportunity to expand another 39,000 square feet in the future. The flexible, low-interest loan was the first CIF loan used by the City.

“We heard about Dakota Resources and the Capital Investment Fund through the Governor’s Office of Economic Development (GOED) and through knowing Beth Davis,” said Zeimetz. “We didn’t have a need to borrow money before this opportunity, but when the time came, we knew who to call.”

SOUTH DAKOTA RANKS #1 IN BUSINESS CLIMATE:

RURALIZING THE POTENTIAL OF COMMUNITIES ACROSS SOUTH DAKOTA

Arlington Builds For the Future.

When the Arlington Economic Development Corporation in Arlington, South Dakota decided to make some capital improvements and get a little more aggressive with their loan program, they applied for a Dakota Resources Capital Investment Fund loan as a way to boost their resources. They also took over the city’s revolving loan program and took advantage of a matching grant available through the Governor’s Office of Economic Developments Partnership Program.

Through expanded capital, Arlington was able to make improvements on a large storage facility being utilized by the TransCanada Pipeline.

“The facility needed year-round climate control and increased storage capacity,” explained Jason Uphoff, Executive Director of the Arlington Economic Development Corporation. “We are finishing that project now and it turned out well.”

In addition to these improvements, the development corporation was able Once the facility is built, it will house Magnetic Density Separation (MDS) technology purchased from Liquisort,™ a company in the Netherlands. The technology is extremely environmentally -friendly, with low C02 emissions, zero waste and high purity production.

to increase capital available in its revolving loan fund so that local businesses

“It was exciting to be part of an expansion of this nature and to see multiple entities within the state come together to create opportunities for the community of Beresford,” said Jay Headley of Dakota Resources.

“My interactions with leaders within the community and the passion they have for their work show me that Beresford has a lot to be proud of and a bright future in front of it.”

Uphoff. “Our biggest hurdle is letting people know the funds

Several other funding sources aided the project, including a Reinvestment Payment from the GOED, funding from Dakota Business Finance and the Small Business

asset. Arlington offers that rural charm people want, with the convenience

Administration.

advice and guidance as well.”

could take advantage of lower interest loans.

“We have about ten businesses using our revolving loan funds for renovations, improvements and even the construction of a new building on Main Street,” said are available, but we have a healthy partnership with both banks in town and they are on board to help us.”

The goal of the corporation is to grow the revolving loan fund to about $2 million. Through the recent funding by Dakota Resources and the GOED, the organization has expanded its available funds to approximately $650,000.

“Our location just outside of Brookings and a Division I university is definitely an of living near South Dakota’s fourth-largest community,” said Uphoff. “We are growing and are on an aggressive path for the future. Dakota Resources believes in us and is providing not just financial support, but experienced

According to ”Enterprising States: States Innovate,” a report published by the U.S. Chamber of Commerce Foundation, South Dakota ranks #1 in the United States for business climate and #4 for talent pipeline. The study analyzed the 50 states through six lenses: economic performance, transportation and trade, innovation and entrepreneurship, business climate, talent pipeline and high-tech performance.

A FEW THINGS YOU SHOULD KNOW ABOUT DICK:

ON THE ROAD WITH DICK AND JAY

What keeps him going on the road: Dick passes the time with Wild Dutchman sunflower seeds and keeps a notepad nearby so he’s ready when inspiration strikes. He puts on about 40,000 miles a year, traveling to rural areas where he says “you never see the same scenery twice.”

MEET DICK (above left) For the past decade, Dick Werner has been the face of Dakota Resource’s Capital Investment Fund.

As credit officer, he travels all over the state, meeting community leaders and working with rural development corporations to help them expand their opportunities through the flexible, unsecured loan program. Since he began in 2005, the Capital Investment Fund has grown from a funding source of $4 million to over $14 million.

What keeps him going outside the office: When he’s not working, Dick enjoys pheasant hunting and working on the Werner family farm in Herried (it’s been in the family since 1896).

He’s also a season ticket holder with the Minnesota Vikings and is a fan of the Minnesota Twins.

MEET JAY (above right) Jay Headley, vice president of finance at Dakota Resources, provided the Capital Investment Fund with administrative assistance for two years before he began transitioning into a more prominent role last October. Today, Jay partners with Dick and interacts with clients face-to-face, allowing him the ability to deal with people on a more personal level.

A FEW THINGS YOU SHOULD KNOW ABOUT JAY: What keeps him going on the road: Jay is also big fan of sunflower seeds; he starts every road trip with a bag of seeds and even keeps a spare in his desk. Jay also enjoys his morning coffee and likes to catch up on sports radio when he’s traveling.

What keeps him going outside the office: Jay has a six-year-old son and a three-year-old daughter and is expecting a third child in March. When he’s not busy being a dad and husband, he enjoys running (completed his first half-marathon in September), cooking and sports. He follows the Cubs and the Cornhuskers.

Where Opportunity Meets Potential.

Success isn’t always about what you know. Sometimes, who you know can make a difference.

This is why Dakota Resources makes an effort to network with like-minded organizations across the country. One of

ROBIN ODLAND

these includes the Opportunity Finance Network based in Philadelphia. This national trade organization for community development financial institutions (CDFIs) is an advocate for communities of

“It is rewarding for us to work with Opportunity Finance Network because their mission for creating opportunities aligns so closely with our own mission of ‘ruralizing potential.’”

- BETH DAVIS

every size, with a mission of “creating new opportunities for all.” As one of over 200 members across the country, Dakota Resources is one of the only CDFIs exclusively serving small, rural communities.

“It’s very difficult to make an impact in rural areas, but Dakota Resources has an excellent business model,” said Robin Odland of Opportunity Finance Network. “In fact, we hope to work closely with them in the future to learn from them and possibly model their success to others. They are a well-run CDFI and they do remarkable work covering rural South Dakota.”

As a member, Dakota Resources has access to loan capital and other financial products as well as support and consulting services. This year, Dakota Resources received a $1 million low-interest loan from Opportunity Finance Network to help fund new borrowers.

NON PROFIT ORG US POSTAGE

PAID PERMIT #7922 SIOUX FALLS, SD

25795 475th Avenue, Suite 1 Renner, SD 57055

SISSETON

EUREKA MOBRIDGE

Aberdeen Development Corporation

ABERDEEN WEBSTER WATERTOWN

BEADLE & SPINK

ARLINGTON STURGIS

PIERRE

MILLER HURON

CAPITAL INVESTMENT FUND BORROWERS: Area Development Corporation - Brookings* Arlington Community Development Corporation** Beadle and Spink Enterprise Community Beresford Economic Development** DeSmet Development Corporation

DE SMET BROOKINGS MADISON

Eureka Community Development Company* First District Development Company* Greater Huron Economic Development Corporation

CURRENT

PAST

NEW FOR 2015

BERESFORD

Lake Area Improvement Corporation - Madison

YANKTON

Mobridge Economic Development Corporation

VERMILLION

Enriching Communities Across South Dakota

GROW SOUTH DAKOTA Northeast South Dakota Community Action Program* On Hand Development Corporation - Miller* Pierre Economic Development Corporation Rural Electric Economic Development, Inc. Sturgis Economic Development Corporation

CIF loans have been utilized in dozens of rural communities to help generate

Vermillion Area Chamber of Commerce & Development Company

new opportunities, jobs and a better quality of life. Here are just a few of the

Webster Area Development Corporation

highlight projects:

West River Foundation for Economic and Community Development *

––––––––––––––––––––––––––––––––––––––––––––––––––––––––

Yankton Area Progressive Growth**

In Sturgis, a CIF loan contributed to the construction of Aspen Grove, a $3.2 million assisted living facility with 33 apartment suites offering assisted living

* Indicates past borrowers ** Indicates new borrowers for 2015

services. The project created 15 full-time jobs and several part-time jobs.

––––––––––––––––––––––––––––––––––––––––––––––––––––––––

Webster Area Development Corporation utilized CIF assistance to help build a manufacturing facility that’s now home to Anderson Industries, employing over 180 people in three locations with revenues approaching $65 million.

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In Aberdeen, the CIF was one source of funding used to build a $22 million plant for Molded Fiber Glass, employing around 300 people with prospects of more.

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CIF financing made it possible for Lake Area Improvement Corp in Madison to construct a new 20,000 square foot spec building in their industrial park in an effort to attract new industry to the area.

WE HAVE A VIDEO! To give you a greater understanding of ‘ruralizing your potential’ - visit ruralizeyourpotential.com and see our video.

STAY IN TOUCH

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