The South Dakota Board of Economic Development approved funding for three projects through the Revolving Economic Development and Initiative Fund, Local Infrastructure Improvement Program, and Reinvestment Payment Program. The projects support business expansion, infrastructure improvements, and long-term investment by one of the state’s largest employers.
The board approved a $7.5 million REDI loan for Elevate Rapid City to purchase and develop 128 acres into a new business park in Rapid City. The development will help meet growing demand for industrial and commercial sites, support national defense and advanced manufacturing growth, and strengthen western South Dakota’s long-term economic competitiveness.
A $500,000 Local Infrastructure Improvement Program grant was awarded to Lake County to support reconstruction of County Road 17. The project will improve transportation infrastructure serving the Dakota Ethanol facility near Wentworth and accommodate increased commercial traffic generated by the company’s ongoing expansion.
Dakota Ethanol is expanding production capacity by 50 percent, increasing demand for South Dakota-grown corn while producing additional distiller grains that supply the state’s livestock industry with a valuable feed ingredient. The road improvements will help support the movement of agricultural commodities and strengthen infrastructure needed for continued growth in South Dakota’s corn and livestock sectors.
The board further approved the Reinvestment Payment Program application of Smithfield Packaged Meats Corporation to support construction of a new meat processing and packaging facility in Foundation Park in Sioux Falls. The board approved the application for a reinvestment payment of up to $29,975,400, not to exceed 100 percent of the actual state sales and use tax paid on eligible project costs associated with the estimated $1.29 billion investment from Smithfield.
The new facility will replace Smithfield’s existing downtown Sioux Falls operation and will incorporate advanced automation and modern processing technology. The investment will retain more than 3,100 jobs in Sioux Falls and support South Dakota’s pork producers, farmers and agricultural supply chain. The relocation will also create opportunities for future downtown redevelopment and improve freight access through direct interstate connectivity.
“Major employers have choices about where they invest, and South Dakota’s Reinvestment Payment Program helps keep our state competitive for transformational projects like this one,” said GOED Commissioner Bill Even. “This project is the largest private capital investment in South Dakota history and reinforces the critical role agriculture and food processing play in our economy while supporting thousands of South Dakota families and producers.”
The REDI, Local Infrastructure Improvement, and Reinvestment Payment programs provide financing and incentives that support business growth, infrastructure development, and private investment while creating and retaining jobs across South Dakota. Available to qualifying new and existing South Dakota businesses that meet program requirements established in state law, these tools encourage investment that expands economic opportunity and supports long-term growth across the state.
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