DirectionsDirections JJ

Volume 29, Number 5September-October, 2005

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’sexisting Sioux Falls facility and allow for greatly expanded processing capacityof ham, bacon and sausage products.

“We have been looking forward to this much-anticipated expansion ofour Sioux Falls operation,” said Steve Crim, general manager of the SiouxFalls plant. “This project will allow us to increase our product offering tomeet growing customer demands and replace our existing sausage manufacturing complex.”

“From a local economic development standpoint, this project will bring200 additional jobs to Sioux Falls and add millions of dollars to our regionaleconomy,” Crim said. “Sioux Falls is a great place to live and work, and weare delighted to contribute to the growth of this region.”

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John Morrell begins $100 million expansion

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

The Sioux Falls Development Foundation begins its second half-centuryof service to our area with the organization’s Annual Meeting, which willbe held at the Holiday Inn City Centre Thursday, November 17, from4:30 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 leadersand community residents news of the record-setting activities of theDevelopment Foundation during 2005. An important part of the agendais 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 chanceto network with others who care as much about Sioux Falls and its futureas you do. Invitations to the meeting will be mailed out soon, but markyour calendar TODAY for November 17!

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

Annual meeting scheduled for November 17

Get the details at the Development Foundation

annual meeting November 17!

2005A YEAR OF

UNPRECEDENTEDGROWTH

2005A YEAR OF

UNPRECEDENTEDGROWTH

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Continued from page 1...South Dakota Governor Mike

Rounds commended SmithfieldFoods and John Morrell for theirnearly century-long investment inthe South Dakota economy.

“John Morrell has been one ofour state’s primary employers andcorporate leaders since 1907,”Rounds said. “We congratulate thecompany and its South Dakotaemployees on this exciting expan-sion to the Sioux Falls plant.”

“Smithfield Foods is proud ofJohn Morrell and its strong focuson meeting customer demand forour products,” said C. Larry Pope,Smithfield’s president and chiefoperating officer. “The company’semployees deserve special creditbecause their hard work and

Jim Wilcox, ChairDana Dykhouse,Vice ChairMark Shlanta, TreasurerDoug Johnson, SecretaryKelby Krabbenhoft,

Past ChairDennis AndersonTerry BalounHenry “Chip” Carlson IIICathy ClarkSteve CrimBruce HalversonMike HansonJohn Keilholz

Dan KirbyDavid KnudsonDon MarkerBarry MartinDr. Jim RoblJeff ScherschligtKendall Stork

Ex-Officio:Mayor Dave MunsonCommissioner

Jim ZweepMike Cooper

Directionsis published six times yearly by the

P.O. Box 907, Sioux Falls, SD 57101Phone 605-339-0103, Fax 605-339-0055

Dan Scott, President Karen Ruhland, Editor

SFDF Board of Directors

Working for regional economic development in partnership with:

Lincoln County Economic Development Association

Minnehaha County Economic Development Association

dedication in producing qualityproducts made this investment inthe community possible.

The new Sioux Falls plant willinclude a state-of-the-art deli-ham manufacturing system, two pre-cooked bacon lines and onepre-cooked toppings line, and areplacement sausage manufacturingfacility that incorporates the latesttechnology to enhance quality, efficiency and food safety.

John Morrell & Co., foundedin 1827 in Liverpool, England, is a subsidiary of Smithfield Foods, Inc.,of Smithfield, VA. John Morrell isheadquartered in Cincinnati, Ohio,and has about 6,860 employees.

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John Morrell begins $100 million expansion

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 adjacentto 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 offerland 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 newland gives us sites for all kinds of businesses. The property will bedesigned to accommodate theneeds of every type of user.”

The land purchase puts thegroup’s current stock of availableland at 385 acres, Scott said. Thatis not a large inventory, he added,since the Development Foundationsold 105 acres this year and thenew land will take some time toprepare for occupancy.Engineering work is alreadyunderway on the property, however, planning for streets andinfrastructure development.

Home to over 100 businessesemploying 12,000 individuals, the

nine Sioux Empire Development Parks comprise 1,360 acres. This year’s landsales in the parks set a new record, with $3.7 million worth of sites purchasedby companies who have identified Sioux Falls as a great place to grow.

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Land purchased for new development parks

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Dan Scott points out building sites to bedeveloped on the new industrial park land.

Newspapers across the nation havebeen reporting the news that a SiouxFalls location is the most profitablefor a biomedical facility. The BoydCompany of Princeton, NJ, hasissued a new report comparing citiesin the US and Canada. Boston, SanJose and San Diego, traditionally“hot spots” for technology develop-ment, have fallen behind SiouxFalls, Boyd reported. A high techbiomedical location in Sioux Fallswould show annual costs of $8.5million, while the same facility inSan Jose would cost $11.3 annually.

Biotech firms save in Sioux Falls

Biotech firms save in Sioux Falls

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By Jim Wilcox

TTChairman’s Report

Sioux FallsDevelopment Foundation

Chairman’s Report

www.siouxfallsdevelopment .com

Success demands looking to the futurehis 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 sellingland is only half of the equation—developing new land to take the place ofthose sites is equally important. This year, we have taken steps to insure thatwe will have an inventory of park land available for the future.

When researching new areas for development parks, the DevelopmentFoundation works with the city and the state of South Dakota. We look ahead,with our governmental partners in economic development, anticipating futuregrowth with confidence and knowledge gained through experience. The resultis new development parks, ready for a variety of expanding and relocatingcompanies. That is the way it is supposed to work—and the way it does workin 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 andcompanies like John Morrell do not choose to expand here without studyingthe potential. By planning for the future, we prepare for those companies tomake the right decisions.

Our annual meeting is our way of saying “Thanks!” to all of our partners inthis successful development effort. Our members and other business leaders arehonored guests at the annual meeting, scheduled for November 17 at theHoliday Inn City Centre. I look forward to seeing you there.

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Sioux Falls is one of the nation’s“best communities for young people”

Citing 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 ofthe 100 Best Communities for Young People. The competition waslaunched this year by America’s Promise founding chairman General ColinPowell to identify those communities providing healthy, safe and caringenvironments for young people.

“It is wonderful to learn first-hand how outstanding communities likeSioux Falls are making a difference in people’s lives—especially their youngpeople,” said Jay Powell of Sioux Empire United Way. “We are committedto helping Sioux Falls young people succeed in life with programs such asSuccess by Six, the Dolly Parton Reading Initiative, Connecting Kids andour newest program, Wings for Life.”

Other organizations mentioned in the award were the YMCA, JuniorAchievement, the Sioux Falls school district, city government and localchurches. According to local program directors, nearly 70% of K-8 studentsin Sioux Falls are involved in an after school program.

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photographs taken over the disaster scene, bringingtogether remote sensing data with photographic imagesin ways that provide an overview of the area not availablein 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 firstresponder force. The Asian tsunami provided essentiallessons in coordinating international remote sensing datain response to a global emergency. With the help ofimages from EROS, those lessons guided FEMA’sresponse to Katrina and Rita’s wrathful descent on the USGulf Coast.

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

EROS pictures help FEMA respond to hurricanes

RResponse to a catastrophic natural disaster requires information—and when information flow on the

ground is interrupted by emergencies likeHurricane Katrina, the Federal Emergency ManagementAgency (FEMA) turns to images collected from satellitesto help direct first responders. As Americans watchedHurricane Rita moving closer to our shores, FEMA kepttabs on the developing storm with space-based imagesfrom its science partners.

Because of its role as the nation’s repository of satellite images, the US Geological Survey’s Center forEarth Resource Observation and Science (EROS) is aglobal clearinghouse for images of disaster. Before andafter satellite pictures from the 2004 Asian tsunami werereceived at EROS and made available to governmental andinternational relief agencies around the world, makingthe recovery effort more efficient and science-directed.

When Katrina struck the Gulf Coast, the lessons ofthe tsunami were applied to a homeland disaster.Government, private and international satellites turnedtheir sensors on the stricken area, beaming thousands ofmegabytes of data to EROS. Scientists at the Sioux Fallsfacility were able to use that data to create “value-added”products, such as maps indicating the water depth inspecific neighborhoods of New Orleans. These productsguided rescue workers and facilitated the emergencyrelief efforts throughout the Gulf Coast.

In addition to the satellite images streaming intoEROS, the science center receives all aerial reconnaissance

The Sioux Falls Development Foundation, along with theMinnehaha and Lincoln County Economic DevelopmentAssociations, hosted the members of the state RevolvingEconomic Development Initiative board at a dinner andreception at Minerva’s restaurant recently. The board toured businesses in Minnehaha and Lincoln counties which have received REDI loans. Pictured above are LCEDApresident Todd Nelson, Development Foundation chairJim Wilcox, REDI chair Jerry Prostrollo, GOED director Jafar Karim and MCEDA president Marv Wieman.

REDI board hosted by localdevelopment officials

Jim Wilcox, board chairman of the Sioux FallsDevelopment Foundation, has been chosen as oneof eight 2005 Distinguished Alumni by SouthDakota State University. Recognized for OutstandingService to Home Community, Wilcox was honoredfor his dedication to economic development inSioux Falls.

Wilcox earned a degree in electrical engineeringfrom SDSU in 1976 before going on to achieve amaster’s degree in business administration from theUniversity of St. Thomas in St. Paul. He is currentlythe government and regulatory affairs manager forXcel Energy in Sioux Falls.

Congratulations, Jim!

Development Foundation chairhonored for community service

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

Total Card builds new call center

In May, Sioux Valley Hospital and the YMCA began construction of the new 70,000 square foot FamilyWellness 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 funpool and a conditioning center with treadmills, climbers,bikes, cross trainers and weight resistance equipment.Child care will be provided, along with whirlpool, saunaand steam rooms, community meeting room and newoffices. An outdoor recreation space and racquetballcourts will also be part of the new center. Over 40employees will work at the facility, which should be completed in July of 2006.

Sioux Valley Wellness partners with YMCA

Ground was broken recently for a new 8,000square foot, three-bay fire station on WhitewallCircle—located east of the Tea/Ellis Road on thenorth side of West 12th Street. This fire station willbe known as Fire Station #10. The cost of theproject will be $1.3 million for construction, land,engineering and consulting. Fire Station #10 willemploy 15 full-time fire fighters, staffing 4 fire fighters per day on a 24 hour per day basis. WayneTownship has contracted with this station to provide services. The station will have a fire/rescueengine, water tanker and a water rescue unit.Established in 1880, the Sioux Falls Fire Departmentcurrently maintains 8 fire stations with 171 firefighters.

Fire station groundbreaking held

The Sioux Falls Development Foundation hostedgroundbreaking ceremonies for Plains Commerce Bank,which is building a 9,630 square foot two-story bank at3905 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 CommerceBank is a community bank with offices in Aberdeen,Conde, Hoven and Watertown. The Bank of Hovenopened in 1931. In 1987, the bank expanded its operations to include a credit card division, which offerssecured and unsecured VISA® and MasterCard® cards.The bank now has nearly $200 million in total assets andis providing financial services throughout northeasternSouth Dakota.

Plains Commerce Bank to open on 49th

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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 thoseprojects 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 andbuilding permit totals have been setting records for the past decade, as companies andfamilies build for their futures here in Sioux Falls and our surrounding area.

The majority of that construction activity has come from existing businesses. Theeconomic growth of any community usually runs 80% from expansion and 20% fromrelocation and new businesses. During mini-recessions and troubled times, the SiouxFalls area economy has forged ahead, driven by steady growth and solid confidence onthe part of our business community.

The medical sector has always been a large part of that steady growth, along with ourbanking community. As the Sioux Falls market base expands, the demand for new andlarger retail facilities is enhanced. This diverse economy has many players, but they allcontribute to our achievement.

Strong construction activity, confidence in the future and a growing population worktogether to fuel tomorrow’s growth. Those elements require us to constantly prepare—planning is the key to economic success.

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2005 is the biggest year for growth in our history

By Dan Scott

Sioux Falls Development Foundation

P.O. Box 907Sioux Falls, SD 57101

ADDRESS SERVICE REQUESTED.President’s

Report

Sioux FallsDevelopmentFoundation

President’sReport

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

Build-ready, affordable sites are available in the Sioux Empire

Development Parks. Prices include:

Contact Dan Hindbjorgen, SiouxFallsDevelopment Foundation

Call 1-800-658-3373, e-mail danh@siouxfalls.com

or visit our Sioux Falls website atwww.siouxfalls.com

Best businessclimate... Best businessclimate...and the build-ready landyou’ve been looking for!and the build-ready landyou’ve been looking for!

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