CNA Surety announces
downtown building plans
Directions C
Proposed riverfront view of CNA Surety.
MARK YOUR
CALENDAR
The annual meeting of the
Sioux Falls Development
Foundation will be held in the
International Room of the
Holiday Inn City Centre on
Thursday, November 18
beginning at 4:30 p.m.
Please mark your calendar
today to “save the date.”
Volume 34, Number 4
July-August, 2010
NA Surety, a cornerstone company in downtown Sioux Falls for
the past 28 years, has announced plans to construct a new 117,000
square foot office building at 305 East 8th Street. The site, the
home of Schoeneman’s Building Center before that company relocated to
Harrisburg last year, is considered an essential building block in the
development of the East Bank of the Big Sioux River in downtown Sioux
Falls. CNA Surety currently occupies about 87,000 square feet of office space
at 101 South Phillips Avenue.
“Staying downtown was an important factor in our decision,” said Paul
Bruflat, Vice President of Commercial Surety and Manager of Sioux Falls
Operations for CNA Surety. “Our 400 plus employees
have a positive impact on other downtown businesses.
We hope this new development will have the same
positive impact for Sioux Falls that our moving
downtown had 28 years ago.”
The new building will include about 32,000 square
feet of additional space for other businesses to lease. Work
on the building should start this fall for a completion
date of spring 2012. The project will not utilize all of
the Schoeneman land, leaving room for a possible hotel
or other commercial development on the site.
Among the features of the new CNA facility will be
a fitness center, 500 parking spaces, a rooftop deck and a landscaped
greenway to the river. Plans also include making the building LEED Silver
Certified. LEED stands for Leadership in Energy and Environmental Design
and is a certification program that rates buildings according to their
sustainability in a number of areas. To receive LEED certification, a number
of strategies will be used, including the use of local and regional and recycled
building materials and managing water use. The building has been designed
so that natural light will filter deep into the building.
“A project like this one could not happen without participation from a lot
of people,” said Craig Lloyd, project developer. “The Sioux Falls Development
Foundation played a major role in facilitating this announcement.”
Continued on page 2...
The CNA Surety office complex planned for Schoeneman’s downtown site.
CNA Surety announces downtown building plans
Continued from page 1...
CNA Surety traces its Sioux
Falls roots to the creation of
Western Surety Company by
Joe Kirby, a local attorney, in 1900.
Originally, the company specialized
in saloon bonds for local bar
owners, but expanded its selection
of bonding products, becoming a
national company in the 1950s.
Four generations of the Kirby family
owned and worked for Western
Surety Company before selling the
firm in the 1990s. Today, Western
Surety Company is the primary
operating subsidiary of CNA Surety.
■■■
Beresford is site of new manufacturing plant
Paul Bruflat, Vice President
of Commercial Surety and
Manager of Sioux Falls
Operations for CNA Surety
addresses the crowd at the
building announcement.
Directions
is published six times yearly by the
P.O. Box 907, Sioux Falls, SD 57101
Phone 605-339-0103, Fax 605-339-0055
Karen Ruhland, Editor
SFDF Board of Directors
Cathy Clark, Chair
Jack Hopkins, Vice Chair
Fred Slunecka, Secretary
Mark Mickelson, Treasurer
Mark Shlanta, Past Chair
William L. Baker
Burke Blackman
Paul Hegg
Jeff Holcomb
Chris Houwman
Mike Jamison
Dale Jans
Dave Knudson
Dr. Charles O’Brien
Kristi Niechwiadowicz
Ross Ortman
Carl Rapp
Dr. Jim Robl
W. Tom Simmons
James Soukup
P
Prinsco, Inc., a manufacturer of High Density Polyethylene (HDPE) pipe for
the water management industry, will build a new South Dakota manufacturing plant in Beresford, strategically centered between Sioux Falls and
Sioux City on Interstate 29.
“This is great news for South Dakota. Prinsco’s new location will
clearly benefit our state’s agricultural sector, as well as highway and
construction projects,” said Richard Benda, Secretary, South Dakota
Department of Tourism and State Development. “I’m pleased to see this
project get started.”
The building site was chosen to provide easy access to northwest Iowa
and the I-29 corridor from Winnipeg to Kansas City. Other considerations
that went into the decision to build in Beresford included a high percentage of manufacturing jobs in the county, low cost city-owned utilities and
an obvious commitment to quality education and civic improvement.
The manufacturing plant will be built in the new Beresford Industrial
Park. Construction is scheduled to begin soon and the plant is expected
to be fully operational by the end of this year or early 2011.
Prinsco is widely known throughout the water management industry
as “the pipe with the gold stripe.” Key markets include agricultural,
residential, highway construction, water retention/detention and storm
water quality. Originally founded in Prinsburg, Minnesota in 1975, Prinsco
has expanded to include facilities in Minnesota, Illinois, Iowa, Missouri and
California.
Ex-Officio:
Darrin Smith
Mike Cooper
Dick Kelly
Working for regional economic
development in partnership with:
Lincoln County
Economic Development Association
Minnehaha County
Economic Development
Association
Page 2
Prinsco Vice President of Operations Jeremy Duininck, left, receives a state flag
from South Dakota Secretary of Tourism and State Development Richard Benda.
www. siouxfallsdevelopment .com
Kalliki Software chooses Technology Business Center
K
alliki Software, LLC is the newest client at the
South Dakota Technology Business Center. The
company focuses on open source web and software development and was founded by Shane
Thomas, Adam Learing and Michael Lustfield. All three
founders are recent graduates of Dakota State University.
“At Kalliki Software we focus on developing a
relationship with our customers so we can better
understand and anticipate their software, web development and technical consultation needs,” said CEO Shane
Thomas. “By taking advantage of open source software,
we are able to provide our clients a great value without
compromising on quality.”
Kalliki has been in business for more than a year and
has customers located in several states. According to
Thomas, by focusing on the cost advantage and flexibility
of open source software, they have been able to leverage
current market conditions and hit the ground running.
“Our staff is excited to have the opportunity to work
with Kalliki and assist them as the company grows and
diversifies its suite of services and products,” said Rich
Naser, SDTBC executive director. “Shane and his team
have done a great job in identifying an initial market
niche on which to build their company.”
Thomas praised the Technology Business Center as a
great solution for new tech companies like his.
“Kalliki Software was looking for a turn-key solution
that would allow us to get our operations up and
running quickly,” he said. “SDTBC provided the
technical infrastructure and support we needed, allowing
us to make a quick transition and concentrate more time
on building our business.”
For more information about Kalliki Software, visit
www.kalliki.com or call Adam Learing at 605-275-2021.
For more information about the SD Technology Business
Center, visit www.sdtbc.com, or call 605-275-8000.
■■■
Left to right are Shane Thomas, Adam Learing and Michael Lustfield.
Proposed plan of work surveyed by Forward Sioux Falls investors
H
Howard Benson, chief executive officer of National
Community Development Services (NCDS), was in
Sioux Falls recently discussing the next phase of Forward
Sioux Falls with Joint Venture Management Committee
leaders. Benson’s firm has assisted with each of the first
five Forward Sioux Falls campaigns and he will personally
conduct many of the interviews in feasibility study
meetings during the next month.
The Future Sioux Falls strategic planning process
provided insights into the challenges Sioux Falls faces in
the years ahead. Many of the findings have become the
base from which the core elements of the next Forward
Sioux Falls program will be built. As each funding partner
examines the Future Sioux Falls findings, they too will
use the information to provide a roadmap for action.
“We will take those elements of the Future Sioux
Falls study that apply to the economic development plans
for our community,” said Mark Shlanta, Forward Sioux
Falls chair. “Our focus will continue to be on building the
prosperity of our area through strategic economic
development initiatives and action plans.”
Case statements have been created for each
Forward Sioux Falls activity, from workforce development
Page 3
Howard Benson, center, was in Sioux Falls recently to meet with
JVMC leadership and staff.
to business retention and expansion to housing. Those
case statements will be the core of the feasibility study
NCDS will take to investors.
Benson was in Sioux Falls to review the case
statements, written by staff members, with Forward
Sioux Falls leaders. The final document, which outlines
the economic development needs of the community and
proposes specific strategies to meet the challenges of
the future, will be shared with investors in meetings held
during August, with a goal of completing the feasibility
study by early September.
www. siouxfallsdevelopment .com
Prairie Creek Assisted Living facility breaks ground
G
round was broken recently for the new
$4.2 million, 34,000 square foot, one-story
Prairie Creek Assisted Living facility. The
center includes 32 one-bedroom and twobedroom apartments and will offer four levels of care for
residents. Located near the corner of Solberg Avenue
and 57th Street, the facility will offer trained staff
members 24 hours a day, scheduled transportation, a
meal plan, wellness center, chapel and an emergency call
response system. Planned social, recreational and
religious activities round out the services that will be
provided. The planned completion date for construction
is Summer 2011, with 10 to 15 employees staffing the
facility. Prairie Creek is a part of the Good Samaritan
Society, a not-for-profit organization which has been
providing services for seniors for over 85 years. Good
Samaritan operates more than 230 centers in 24 states,
making it the nation’s largest Christian not-for-profit
provider of senior care, service and housing options.
South Dakota is one of
Top Ten States for Business
C
NBC has released its 2010 “Top States for Business”
rankings and South Dakota has moved up, from
number 12 last year to number 7 this year.
“A highly visible ranking like this one gives business
decision makers a new perspective on our state’s business
climate,” said Slater Barr, Development Foundation
president. “We find that comparative measurements like
Top States for Business make potential new companies
evaluate those areas where we score the highest—
categories that definitely are influential in deciding on
expansions and relocations.”
South Dakota placed among the Top Five states for
cost of doing business, economy, business friendliness
and cost of living, the survey shows. The state’s profile
reported an unemployment rate of 4.6%, a favorable
corporate tax rate, low foreclosure rates and a Gross
Domestic Product of $37,690 per capita.
Texas was the 2010 Best State for Business, CNBC
reported, with high scores for transportation and infrastructure, technology and innovation and access to capital.
“As well as we do in these rankings,” Barr said,
“they show us that we still have areas in which we can
improve. Our focus for the years ahead will aid us in
improving our research capacity, our technology and
innovation facilities and our access to capital for
entrepreneurs and small businesses.”
Page 4
■■■
Your membership is important:
Please renew TODAY!
O
One of the ways we help ensure growth and
prosperity in Sioux Falls is by enlisting new members
for the Development Foundation. Equally important
to the success of this organization—and the success
of our community—is making sure that Sioux Falls
area business leaders like you don’t forget to
RENEW their Sioux Falls Development Foundation
membership.
Being part of this organization is more than just
support for the economic prosperity of Sioux Falls.
Membership helps to promote all the elements
essential for a vital future for this community.
Through your membership in the Sioux Falls
Development Foundation, you show that you care
about quality of life, retention of a positive business
environment and a strong business climate with
potential for our young people.
Be a part of a prosperous economy and a
quality community: return your renewal as soon as
possible. And if you are not already a part of the
Development Foundation, call us at 339-0103. We'll
get your membership information out in the mail
immediately.
www. siouxfallsdevelopment .com
Sioux Falls
Development
Foundation
President’s
Report
By Slater Barr
T
Innovative thinking needed
to attract population growth
hroughout the past two decades, Sioux Falls has maintained a consistent
population growth. Our economic engine has aided companies to expand,
offering new jobs and enhanced opportunity to people seeking a better place
to build a future. For the most part, those new residents have left smaller communities
in the tri-state area around Sioux Falls. Nationally, this rural to urban trend has been
going on for over a century, as metro areas grow and rural areas “empty out.”
But statistics show that Sioux Falls cannot sustain the growth we have enjoyed in
the past if we rely on continuing population numbers from our surrounding rural area.
For one thing, those populations have shrunk—the people aren’t there to move to a
larger community any more. In addition, rural communities are recognizing that they
must invest in their economies and their futures in significant ways. Increasingly, those
rural communities are exploring entrepreneurship programs and community leadership
concepts that offer economic stability and opportunity to their residents. That means
those residents are more able to stay in their hometowns and make a living.
Not all of the population growth in Sioux Falls has come from rural areas, of
course. We see a significant influx of former residents who are returning, either as
retirees or as young professionals who have decided to raise a family here, rather than
in a metropolitan area on one of the coasts. The recession has brought others to
Sioux Falls who are fleeing from an unemployment rate of over 10% to an environment
where the unemployment rate is below 5%. And our economic growth and success
during the past 20 years has not gone unnoticed in the national press. Some of our
population growth comes from people reading about opportunity and our high quality
of life in Sioux Falls.
But if we want to continue growing and sustaining that quality of life, we must do
more. Research has shown that the communities that attract “the best and the brightest”
need more than affordable homes, safe streets and good schools. We can be proud that
we have those elements, but we must increasingly be willing to go beyond the basics.
The “brain workers,” entrepreneurs and high tech creators who are fueling the
Information Age are very aware of aesthetic and cultural offerings in the communities
where they live. These much-sought-after new residents want clean, green, attractive
cities where they find others like themselves to network and build new ideas
with. Sioux Falls is becoming that attractive city—but we must be aware
that growing our population today will be much more challenging than it
has been in the past.
■■■
Students selected to receive Spirit of SF Scholarships
F
Four students have been chosen to receive the 2010 Spirit of Sioux Falls Scholarship
to continue their post-secondary business education. The $2,500 scholarships are
awarded annually by the Sioux Falls Development Foundation to Sioux Falls residents
or students who have completed at least one year of post-secondary work in
business-related areas of study.
This year’s winners are Benjamin Tiggelaar, a business administration and
computer science major at the University of Nebraska; Renee Poirier, a business
administration and computer science major at Augustana College; Kayla Friesen, a
business administration, entrepreneurial studies and marketing major at the University
of Sioux Falls, and Heidi Dreyer, a professional accountancy, business administration
and Spanish major at Augustana College.
Each student will be spotlighted in upcoming issues of Directions. Congratulations
to these students for their scholastic achievement!
S
www. siouxfallsdevelopment .com
Page 5
■■■
Land in our Sioux Empire Development Parks is the best value
in the Sioux Falls region—build-ready sites with infrastructure
in place at prices starting at just *$1.95 a square foot.
Build-ready
sites from
$1.95
*
ADDRESS SERVICE REQUESTED.
P.O. Box 907
Sioux Falls, SD 57101
Sioux Falls
Development Foundation
By Cathy Clark
W
e all know that Sioux Falls has grown during the past two decades—not
coincidentally the period of time that Forward Sioux Falls has been at work
for our area. But we don’t often stop to look at the numbers that illustrate
the transformation which has occurred since the inception of the Forward Sioux Falls
program in 1987.
In that year, the population of Sioux Falls was 99,800. Since then, nearly 60,000
people have come to live in the community—and our Metropolitan Statistical Area of
four counties numbers nearly a quarter million individuals. In 1987, the median family
income in Sioux Falls was $34,305. In 2009, that number had doubled, to $69,419.
Sioux Falls counted 62,700 non-farm wage and salary jobs in 1987. In 2009, our jobs
total was 133,600. And $6.2 billion worth of construction has occurred since 1987.
The community leaders who kicked off Forward Sioux Falls in 1987 shared a vision
for the future, a vision that has been fulfilled by our economic growth, our population
increases and our enhanced quality of life. Those business and civic leaders stepped up
to the plate at a critical time in our community’s history. They were pro-active, forwardlooking and confident. They created a partnership for progress which has brought
Sioux Falls to the attention of corporate executives across the nation—and has given
local businesses the confidence to expand as the community has expanded.
Now it is our turn. Using the Future Sioux Falls project, we’ve taken some hard
looks at the challenges Sioux Falls faces tomorrow. We’re poised at the beginning of the
national economic recovery, uniquely positioned to capitalize on our excellent business
climate and our obvious lifestyle advantages. In the same way that business leaders of
1987 looked ahead confidently, it’s our turn to step up to the plate and prepare for the
future. Sioux Falls is ready—and this generation of leaders is ready, too.
Whether you’re constructing a steel
building or a corporate headquarters,
we have a site for you.
Chair’s
Report
Now it’s our turn
Call Dan Hindbjorgen at 605-339-0103
www.siouxfallsdevelopment.com
Sioux Falls
Development
Foundation