Contents
2
South Dakota Business Rankings
4
Revamping incentives
6
Drive of a Lifetime
7
REDI Fund
8
Economic development’s best
Keeping active in South Dakota after retirement There are many reasons South Dakota is a good place to retire. There are many recreational opportunities and scenic living areas in Rapid City, luxury townhomes or an independent living atmosphere at Primrose Retirement Communities in Aberdeen, as well as inviting retirement communities such as the Waterford at All Saints in Sioux Falls. aterford Executive Director Angie Rabon says today’s retiring seniors have many skills and enjoy using them. “A number of residents here volunteer at Sioux Falls hospitals or churches,” Rabon says. “A knitting group created scarves and afghans for charitable organizations and our quilters made blankets for a local organization. Those are all valuable activities that give residents here a sense of purpose, a job they can be involved in.” Waterford is among retirement communities that offer residents several levels of service, including independent
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living, assisted living, or Memory Care. In addition to meeting retirees needs, their services provide residents’ families with peace of mind, knowing they live in a secure and caring environment. “Our staff are in the building 24 hours a day,” Rabon says. “We strive to meet physical, mental, and spiritual needs in our community. Retiring seniors have needs that go far beyond the basics of housing and regular meals.” Michelle Hagan, Sales and Marketing Manager at Primrose of Aberdeen, says her company’s retirement communities were based on the premise that a retirement SDPB 1
South Dakota
ON
June 13, 1933 The Federal Savings and Loan Association was authorized with the passage of the Home Owners Loan Act. The purpose of the legislation was to provide a convenient place for investment and to lend money on first mortgages. The first association was the First Federal Savings and Loan Association of Miami, FL, which was chartered on Aug. 8, 1933.
community must reward its tenants with value, comfort, security, and convenience. “Jim Thares first opened Westin Court in 1991,” Hagan says. “It was later renamed Primrose Retirement Communities and now there are 26 communities across the United States, including Sioux Falls and Rapid City. We offer completely independent living through our Primrose Townhomes and also have independent living apartments, complexes that provide security services such as a daily door check, along with social activities. Assisted living arrangements are also available. That allows residents to choose the type of setting most comfortable for them and their family.” Both women say seniors today tend to be much more active. Retirees in the communities span a wide age range. “Our youngest resident is 62 and the oldest is 99,” Hagan says. “At Primrose seniors are able to have a pet, which is an appreciated option, especially if they’ve had a pet for a long time and they want to bring the pet with them. We incorporate all services into one monthly cost so seniors have that much less to cause stress in their lives.” Gil Raben at Raben Real Estate in Rapid City often sees seniors seeking a wide variety of leisure time activities, such as the fishing, hiking, swimming and hunting opportunities found in the Black Hills region. “People come from all over the country to the Black Hills because of our climate and wealth of recreational opportunities,” Raben says. “In Rapid City they find all the amenities of a big city, as well. They can attend concerts, stage plays, and enjoy a variety of shopping experiences. We see many
retired military personnel making Rapid City their home after they’ve lived in the nearby military compounds and have come to know the benefits this area offers to retirees.” Seniors also search for medical services and easy access to shopping when they transition from the workplace. Rabon and Hagan recommend exploring retirement options well in advance of the actual transition to allow time for necessary planning activities, including financial preparedness. “Many seniors choose to live in an apartment, however, in a retirement community they have many added amenities and a great deal of peace of mind,” Rabon says. SDPB Loretta Sorensen, Owner, Prairie Hearth Publishing, LLC. sorensenlms@gmail.com.
Waterford at All Saints in Sioux Falls, SD (Photo courtesy of Waterford at All Saints)
South Dakota Business Rankings Subject
Rank
Year
Small Business Survival Index
1
2010
Small Business & Entrepreneurship Council
Tax Freedom
4
2010
Tax Foundation
Overall State Tax Burden
1
2010
Pacific Research Institute / Forbes
Best Corporate Business Climate
8
2010
Pollina Corporate RE
Top Performing States
3
2010
U.S. Chamber of Commerce
Source: South Dakota Governor’s Office of Economic Development (www.sdreadytowork.com)
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June 2011
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South Dakota
South Dakota revamps incentives to expand appeal A law signed this spring by Governor Dennis Daugaard re-engineers the current contractors’ excise tax refund program and creates a new Large Project Fund, a step leaders across the state believe will boost business in South Dakota. eginning in 2013, South Dakota will have a new financial tool to encourage business development in the state, says Pat Costello, Commissioner of the Governor’s Office of Economic Development. Gov. Daugaard’s “Jobs Bill” (HB 1230) will be funded by dollars recovered through the December 2012 sunset of the current program, which refunds a percentage of the contractors’ excise tax. The fund will provide grants for business investments in “large projects” in the state, now defined as being $5 million or more in scope – down from the previous threshold of $10 million. “When the Jobs Bill becomes active in 2013, it will provide a flexible, targeted, and strategic economic development tool to better serve the needs of our communities, our businesses, and our prospects,” Costello says. The Sioux Falls business community is pleased with the change. “We supported it,” says Michael Bender, Chair of the Sioux Falls Area Chamber of Commerce. “The Chamber endorsed it and lobbied on behalf of it, and we were quite happy it was signed by the Governor.” In addition to lowering the threshold so that more projects would qualify, Bender believes another change is equally important. “It lowered the limit from $10 million to $5 million, but more importantly, they made it discretionary,” he adds. “That’s why it made sense.” Under the new system, which will take effect on Jan. 1, 2013, the incentives are no longer mandatory – avoiding the situation of being required to give to a project that is coming to South Dakota regardless. Julie Johnson, Executive Director of Absolutely Aberdeen, was also involved in re-engineering the Large Project Fund and believes it is a positive move. She points out that, in addition to being utilized by
B RESEARCH FOCUSES ON INFORMATION SECURITY Wei Wang, an assistant professor with SDSU’s Department of Electrical Engineering and Computer Science in Brookings, SD, may have found a way to make it safer to transfer information over mobile devices. Wang and his colleagues elsewhere are using a proposed new selective encryption technique to protect important content in streaming video over wireless networks. Source: Newswise
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June 2011
DID YOU KNOW
businesses, the fund can also assist communities working to bring in new opportunities. “It isn’t always the company making the decision – it’s sometimes the locals deciding that they are going to take the risk in inviting a company to do business there,” says Johnson. “It’s a very important tool for companies and communities to fill the gap in their financing structure.” Aberdeen recently announced that 1,000 new jobs will be available in the area this year. Johnson notes that several of them have been able to tap into the existing incentives, including Northern Beef Packers, South Dakota Wheat Growers, Molded Fiber Glass Cos. and others. In the case of Molded Fiber Glass, which manufactures blades for wind turbines, the Aberdeen Development Corporation was able to use the incentives to build the facility and lease it to the company. Johnson believes this is a very viable business model – the local community owning the structure and leasing to the company. Bender says incentives are especially valuable as South Dakota competes with states having more people and more tax revenue. “Every company is different, but sometimes it does make or break their decision,” he states. “It is an integral part, one of the top two or three issues every company looks at when making these decisions.” Although incentives are important, Costello believes South Dakota’s appeal is more comprehensive than just cash on the table. “We certainly need incentive tools to make us competitive, but when a company takes a long view of South Dakota’s outstanding business and tax climate, our highly productive work force, and our competitive financial incentive packages, they won’t find a better place to do business.” SDPB Kristin Brekke Vandersnick is a Willow Lake, SD-based freelance writer. She can be reached at brekkefarm@gmail.com.
South Dakota had the sixth-highest increase in Gross Domestic Product (GDP) by State from 2008 to 2009. The United States experienced a 1.3 percent decrease.
South Dakota
Black Hills region ‘Drive of Lifetime’ South Dakota’s state tourism office was delighted to hear that National Geographic included South Dakota’s Black Hills region in their April 2011 “Drives of A Lifetime” list. “Stunning landscapes, rich history and abundant wildlife” are just some of the terms included in National Geographic’s description of the area. outh Dakota Tourism’s Media and Public Relations Manager, Wanda Goodman, says the state is honored by National Geographic’s designation. “They (National Geographic) are an incredibly wellknown and respected publication,” Goodman says. “Third party publicity such as this adds credibility to South Dakota and everything the state has to offer.” Goodman believes the international recognition will boost global awareness of the beauty and wealth of recreational opportunities found in the Black Hills. “The Black Hills are a jewel, not only in our state but the entire Midwest region and our country,” Goodman says. “Many travelers think of South Dakota as flyover country. However, once they discover the beauty to be found here, they’re pleasantly surprised and share their discovery with family and friends.” National Geographic has included comments about the Black Hills in their newly released book, “Drives of a Lifetime, 500 of the World’s Most Spectacular Trips. The publication will take news of South Dakota’s Black Hills far and wide.
S
“It’s too early to say if this publicity has specifically been the cause of any of our inquiries,” Goodman says. “We’ll certainly continue to monitor the impact of the recognition as closely as we can.” More information about National Geographic and “Drives of a Lifetime” are available at channel.nationalgeographic.com. Additional information about the Black Hills and tourist opportunities can be found at www.blackhillstouristinfo.com or by contacting South Dakota Tourism at Department of Tourism.
SDPB Loretta Sorensen, Owner, Prairie Hearth Publishing, LLC. sorensenlms@gmail.com.
V
ermillion-based SDNA designated state’s Commission for National and Community Service
The South Dakota Workforce Development Program extends education and training resources so South Dakota employers will be provided with a well-trained and skilled work force. Workforce Development Program (in 2010) Grants Awarded .........................................................65 Companies Awarded...................................................54 Dollars Awarded...........................................$4,008,365 Employees Trained .................................................3,752 6 SDPB
June 2011
The South Dakota Nonprofit Association (SDNA), located in Vermillion, SD, has been designated as South Dakota’s State Commission for National and Community Service. The designation allows SDNA to act as the administrative organization for AmeriCorps and other national service and volunteer programs. Source: Vermillion EDC Website
REDI FUND
REDI Fund is a low-interest loan fund in South Dakota available to start-up firms, businesses that are expanding or relocating and local economic development corporations. REDI Fund (in 2010) Loans approved . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Dollars approved . . . . . . . . . . . . . . . . . . . .$17,085,947 Projected FTEs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .593 Projected FTEs retained . . . . . . . . . . . . . . . . . . . . . . .417 Total Project Cost . . . . . . . . . . . . . . . . . . . .$182,701,594
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South Dakota
Canton, left to right, Jon Frick, Mayor Jonathon Toso, Amy Nelson, Governor Dennis Daugaard. (Photo courtesy of South Dakota GOED)
Canton was awarded the Small Community of the Year during the annual GOED conference in Sioux Falls. “These individuals and communities make economic development happen in South Dakota,” Gov. Daugaard says. “It is their diligence, commitment and desire for success that helps businesses move forward in the state.” The Governor attributed Canton’s award to major expansion projects in the past year at Adams Thermal Systems Research & Development Center and at Bid-Well. The two firms will create more than 50 new jobs and retain more than 125 jobs in the Canton area. “The city, economic development groups, volunteers and other community leaders have truly worked as a team to put Canton’s best foot forward,” Gov. Daugaard adds. “They have proven that a small town like Canton can support quality companies and offer great jobs to residents.”
CLAY RECEIVES ECONOMIC DEVELOPMENT AWARD
The Excellence in Economic Development Award was established to honor the dedication and commitment of eight South Dakotans who lost their lives during an economic development trip in 1993. Businesses and individuals from across the state helped finance the award in memory of the late-Gov. George S. Mickelson, Roland Dolly, Ron Reed, Angus Anson, David Birkeland, Roger Hainje, Dave Hanson and Ron Becker. The spirit of those visionary South Dakotans lives on through the current efforts of individuals across the state.
8 SDPB
MITCHELL RECEIVES LARGE COMMUNITY AWARD
CANTON NAMED SMALL COMMUNITY OF YEAR
Governor recognizes achievements at Economic Development Conference
Mitchell, left to right, Bryan Hisel, Dean Frederickson, Mark Buche, Mayor Lou Sebert, John Iverson, Governor Dennis Daugaard. (Photo courtesy of South Dakota GOED)
Mitchell was awarded the Large Community of the Year at the annual GOED conference in Sioux Falls. Mitchell stands out because of its focus on smaller communities and innovative efforts to establish cooperative relationships with area organizations, the Governor says. “Mitchell has been a real pioneer this year when it comes to collaborative projects,” Gov. Daugaard adds. Those projects include stimulating regional economic development by partnering with the Kelley Center for Entrepreneurship at Dakota Wesleyan University; partnering with Nation Job to recruit employees online for local businesses; and creation of the state’s first Entrepreneurs & Inventors Club, Mitchell Regional Investors, and the Dakota Heartland Development Association. “These entities will further spur entrepreneurship and encourage business growth in the Mitchell area,” Gov. Daugaard concludes.
Charles (Eddie) Clay of Hot Springs received the Excellence in Economic Development Award. “Eddie Clay has played a major role in nearly every economic development project in the Black Hills area for the past 50 years,” Gov. Daugaard says. “Eddie was involved in promoting Ellsworth Air Force Base, the underground lab at Lead, the Ports-to-Plains Transportation Corridor, and Black Hills Vision. Most recently, he played a key role in maintaining Hot Springs as the site for a new Veteran’s Administration facility – a notable and worthy project for the community,” the Governor adds.
June 2011
Blaise Emerson accepting for 2011 Excellence in Economic Development winner Eddie Clay from Governor Dennis Daugaard. (Photo courtesy of South Dakota GOED)