2020 Community Prole
Sioux Falls, South Dakota
Table of Contents . . .
Demographics 2
Business Advantages 6
Transportation 7
Business Climate 10
State / Metro Incentives 11
Business Resources 13
Business & Industrial Parks 15
Utilities 20
Retail Stats & Info 24
Economic Indicators 25
Cost of Living Data 26
Education 27
Government 31
Climate & Quality of Life Info 32
Sioux Falls Metro
Midwest Work Ethic . . . in the heart of America
Low Crime Rate
Amenities . . .
that exceed our size
Outstanding Educational Opportunities
High Value Location . . . affordable with room to grow
World Class Healthcare
Cultural Opportunities . . .
that stretch the human experience
Crossroads of America . . .
intersection of I-90 & I-29
Pro-business Environment . . .
that improves your bottom line
Engaged Leaders . . .
academic, corporate & political
enjoy the benets . . . join our corporate community
Under 5
5-19
20-34
35-54
55-64
65+
Population
Sioux Falls Metro
1900 10,266 23,926
1920 25,202 42,490
1940 40,832 57,697
1960 65,466 86,575
1980 81,343 109,435
2000 123,975 172,412
2020 190,750 272,379
Persons/Households/Families
Metro
Total Households 102,650
Persons per Household 2.52
Total Families 65,634
Persons per Family 3.12
Source: 2018 American Community Survey
Race Distribution
Metro
One Race 97.3%
White 87.5%
Black 5.2%
Native American 1.7%
Asian 2.2%
Other 3.4%
2 or More Races 2.7%
Hispanic/Latino Origin (of any race) 4.0%
Source: 2018 American Community Survey
The most successful businesses of the future will be those searching out innovative,
creative business solutions today . . . explore the Sioux Falls metro . . . join our corporate community
. . . where Better Business, Better Life isn’t just our motto
. . . it’s reality!
The Sioux Falls Metro Area
consists of Minnehaha,
Lincoln, Turner and McCook
Counties in South Dakota.
Demographics . . .
Sex Distribution
Female Male
Sioux Falls Metro 49.6% 50.4%
Source: 2018 American Community Survey
Source: 2018 American Community Survey
Age Distribution
at a glance . . . Sioux Falls Metro
Source: 2018 American Community Survey
74.5% Labor Participation Rate
Percent of metro residents 16 and older that are employed
50 - 50
Percentage of population male vs. female
35.7 Years
Median age of residents
4.0% Hispanic / Latino Origin
93.4% High School Diploma/GED
47.7% Associate’s Degree or Higher
33.9% Bachelor’s Degree or Higher
Educational Attainment of Metro residents 25 and older
$32,390 Per Capita Income
$63,940 Median Household Income
$80,826 Median Family Income
67% of Metro Housing Units are Owner-occupied
60% South Dakota Born
102,650 Households are located within the Metro Area
3
Civilian Labor Force, Employment & Unemployment - Metro
Year Labor Force Employment Unemployment % Unemployed
1990 85,970 83,670 2,300 2.7%
2000 111,250 109,125 2,125 1.9%
2010 133,560 127,210 6,350 4.8%
2019 157,494 153,505 3,989 2.5%
Resources
South Dakota Labor Market
Information Center
605.626.2314 or 800.592.1881
dlr.sd.gov/lmic
SF Development Foundation
Workforce Development Ofce
605.339.0103
Non-Ag Wage & Salary Employment - 2019
Major Employers (1,000+ employees)
9,432 Sanford Health 1,500 Evangelical Lutheran Good Samaritan Society
8,880 Avera Health of Sanford Health
3,700 Smitheld Foods 1,424 Walmart / Sam’s Club
3,688 Sioux Falls School District 1,269 First PREMIER Bank / PREMIER Bankcard
3,009
Hy-Vee Food Stores 1,260 City of Sioux Falls
2,616 Wells Fargo 1,182 Dept of Veterans Affairs Medical & Regional Ofce
1,586 Citi 1,152 LifeScape
Availability of Labor
Estimated Available Labor Supply . . . 17,000
Average Annual Number of New MSA Residents . . . 4,000
Annual College/Tech School Graduates Statewide . . . 10,000
MSA High School Graduates 2019 . . . 2,750
Labor Force Growth last 10 years . . . 21%
6%
9%
5%
11%
3%
2%
10%
10%
21%
10%
4%
9%
Mining / Construction
Manufac turi ng
Whol esale
Retail
Transportation /
Warehousing / Utilities
Informati on
Financial Activities
Professional / Business
Services
Education / Health Services
Lei sure / Hospitality
Other Services
Government
South Dakota
is a
Right-to-Work
State
4-County Metro Area . . .
. . . 3-State, 12-County Labor Draw
Non-farm wage and salary employment has increased by 21% in the Metro area over the last decade.
Metro Income Information
2018 Per Capita Income $32,390
2018 Median Household Income $63,940
2018 Median Family Income $80,826
Source: 2018 American Community Survey
5
Metro Communities . . .
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
South Dakota Nation
South Dakota’s population growth has outpaced the
nation’s . . .
8.4% to 5.6% since 2010.
Advantages . . .
South Dakota . . . One of America’s top states for business
. . . No corporate income tax
. . . No personal income tax
. . . No personal property tax
. . . No inheritance tax
. . . No inventory tax
. . . A Right-to-Work State
. . . One of the lowest union membership rates
South Dakota has a very attractive business climate
. . . come share it with us
and enjoy the advantages!
Top States contributing to
South Dakota’s Population Growth
(2018)
Minnesota 14.3%
Nebraska 13.9%
Iowa 12.2%
Florida 7.9%
California 7.7%
North Dakota 7.4%
Colorado 3.0%
Transportation crossroads . . .
Sioux Falls is one of America’s
crossroads cities, located at
the junction of
two Interstate
highways . . . I-90 and I-29.
Interstate Trafc Counts - 2019
Vehicles per Day
Interstate-29
Exit 73 (Tea Exit) - I-229 36,870
I-229 Exit - 41st Street Exit 51,020
26th Street Exit - 12th Street Exit 60,060
12th Street Exit - Madison Street Exit 57,380
Madison Street Exit - Russell Street Exit 49,980
Interstate-90
I-229 Exit - Cliff Avenue Exit 22,930
Cliff Avenue Exit - I-29 Exit 23,660
Interstate-229
Louise Avenue Exit - Western Avenue Exit 36,470
Western Avenue Exit - Minnesota Avenue Exit 46,370
Minnesota Avenue Exit - Cliff Avenue Exit 45,660
Cliff Avenue Exit - 26th Street Exit 43,380
26th Street Exit - 10th Street Exit 36,770
10th Street Exit - Rice Street Exit 31,840
Rice Street Exit - Benson Road 29,060
Source: South Dakota Department of Transportation
18.2 minutes . . . Average Metro Commute Time
70+ . . . Truck Lines Serving the Region
Highways
Sioux Falls is one of America’s crossroads cities, located at the junction of two Interstate
highways, I-90 and I-29. I-90, joining Boston and Seattle, is one of the ve coast-to-coast
east-west freeways. I-29 runs north-south and joins Kansas City with Winnipeg. I-229 joins
I-29 with I-90 south and east of the city creating an interstate loop to enhance trafc ow.
South Dakota 100, a limited access principal arterial roadway mirroring I-229 is currently
under construction. It will connect I-90 at Exit 402 east of the city to I-29 at the Tea Exit.
7
Commercial Airline Flights
7 ights to/from Chicago
7 ights to/from Minneapolis
5 ights to/from Denver
3 ights to/from Dallas/Ft. Worth
1 ight to/from Atlanta
1 ight to/from Phoenix - Sky Harbor
5 Weekly ights to/from Las Vegas
5 Weekly ights to/from Phoenix/Mesa
2 Weekly ights to/from St. Petersburg/Clearwater
2 Weekly ights to/from Orlando
2 Weekly ights to/from Nashville
(Seasonal-Summer)
2 Weekly ights to/from San Diego (Seasonal-Summer)
2 Weekly ights to/from Fort Myers (Winter)
2 Weekly ights to/from Los Angeles (Seasonal-Summer)
Source: Sioux Falls Regional Airport Authority
Sioux Falls Regional Airport - Joe Foss Field
. . . Located approximately two miles northwest of downtown
. . . Largest airport in South Dakota
. . . 60,500 ight operations in 2019
. . . Over 1,165,000 passengers in 2019
. . . Served by Delta, United, American, Allegiant & Frontier Airlines
. . . Charter First provide charter service out of Maverick Air Center
. . . FBO services provided by Signature Flight Support
. . . UPS and FedEx both have air facilities at the airport; operating jet
freighters on a daily basis
. . . 62 million pounds of freight/mail pass through the Sioux Falls Regional
Resources
SD Department of Transportation
605.773.3265
www.sddot.com
Sioux Falls Engineering Department
605.367.8601
www.siouxfalls.org/publicworks
Sioux Falls Regional Airport
605.336.0762
www.sfairport.com
Lincoln County Airport
605.368.2841
Canton Municipal Airport
605.987.9010
Railroads
BNSF www.bnsf.com
E&E concretematerialscompany.com
D&I www.lgeverist.com
Rail to Road www.railtoroad.com
Express Delivery Services is readily available in the metro area. UPS and FedEx
have air cargo facilities located at the Sioux Falls Regional Airport and operate jet
freighters on a daily basis.
1,800 Daily Seats
175 Weekly Flights
14 Direct Flight Destinations
Additional Metro Area Airports:
Lincoln County Airport is conveniently located just south of Sioux Falls, adjacent to I-29.
The 3,650-foot runway leads to a modern full service FBO providing major aircraft repairs
and aircraft fueling. On the airport grounds, repair station and installation services for all
manner of aircraft models is available.
Canton Municipal Airport is located less than 20 minutes southeast of Sioux Falls along
US Highway 18. The airport features a 3,600-foot hard surface runway, private hangars,
and 24-hour fuel service.
Rail Service to and from the area is provided by BNSF. A
number of industrial parks throughout the region are served by
BNSF; accommodating all types of materials. Foundation Park has
multiple sites available with rail access. Two short line railroads
serve the region as well - Ellis & Eastern and the D&I, both with
transload facilities in the area. Direct connections with dock spurs
and freight forwarding service are available from the railroads.
Transmodal Facilities
. . . 175-acre large-site off-loading terminal
. . . Located 10 miles south of Sioux Falls near Worthing, SD
. . . Includes a half-circle side spur
. . . Space to temporarily store large components
. . . 120-foot scale
9
Business Climate . . .
Reemployment Assistance Tax
New Employer Construction
Year 1 1.75% 6.55%
Year 2-3 1.55% 3.55%
Average experienced rating 2020: 1.09%
Wage Base $15,000
Employers of 4+ years are assigned an experienced rating based on the
employer’s benet and contribution experience in relation to their total
taxable payroll for a certain period and the remaining balance in the
State fund.
Real Property Tax
Local real property taxes vary from 1 to 4 percent of the actual value
of the structure, with most rates falling under 3 percent. The taxable
value of a property is currently considered 85% of the market value.
Property taxes are then calculated based on the taxable value of the
property.
2019 Levy for the City of Sioux Falls
(Commercial & Non-owner Occupied Properties)
Water 0.024
City 4.402
School (Commercial Rate) 12.519
County (Minnehaha) 3.379
Total: $20.324 / $1,000 taxable valuation
Taxable percentages are for the City of Sioux Falls within Minnehaha
County. Minnehaha County has taxable percentages of .87 for ag and
.941 for non-ag. Lincoln County has taxable percentages of .850 for ag
and .937 for non-ag.
Property taxes vary depending on the school district and county.
Resources
SD Revenue & Regulation
605.773.3563
dlr.sd.gov
City of Sioux Falls Finance Department
605.367.8860
www.siouxfalls.org/nance
Motor Vehicle Excise Tax 4% on the purchase
price of motor vehicles, recreational vehicles and motor
homes.
Worker’s Compensation South Dakota has
traditionally been known as having one of the lowest
workers compensation rates in the country. For detailed
information contact the SD Department of Revenue &
Regulation.
Sales & Use Tax
State 4.5%
Sioux Falls 2.0%
Sioux Falls Entertainment Tax 1.0%
Equipment and inventory are classied as personal
property and are not subject to property tax.
SD Ranked 2nd Best . . . in the
Tax Foundation’s 2020 State Business Tax Climate Index
Revolving Economic Development & Initiative Fund
The REDI Fund is a low interest revolving loan fund for economic development
providing nancing assistance for qualifying startup rms, existing businesses,
and businesses moving into South Dakota based on the creation of primary
jobs.
The REDI Fund can provide nancing for the purchase of land and the associ-
ated site improvements, construction, acquisition, and renovation of buildings;
equipment; fees, services and other costs associated with construction.
The REDI Fund can provide up to 45 percent of the project cost and requires
the applicant to secure the matching total funds before applying to the South
Dakota Board of Economic Development, including a ten percent minimum
equity contribution. The rate is xed for the entire term of the loan, currently
at two percent, unless otherwise determined by the Board of Economic Devel-
opment. The loans are amortized over the useful life of the assets nanced; up
to twenty years for real estate and ten years for equipment, with a balloon
after ve years.
Property Tax Abatement
A City of Sioux Falls ordinance allows owner-occupied
new industrial, distribution or research structures, or ad-
ditions to these types of existing structures, to be taxed
at a lower rate. This abatement ordinance results in a
savings of property tax normally paid during the rst
ve years following construction.
The following chart illustrates the percentage of tax-
able value used through the rst ve years.
Years following % of taxable
construction value used
1st ------
2nd 20%
3rd 40%
4th 60%
5th 80%
6th+ 100%
A number of Minnehaha and Lincoln County communities have enacted
property tax abatement ordinances. For information, contact the Lincoln
or Minnehaha County Economic Development Associations at 605.339.0103.
State & Metro Tool Box . . .
11
Sales Tax Refund
South Dakota charges sales tax on capital equipment purchases. Many of the communities offer a refund of
their city’s portion (generally 2%) of capital equipment/eligible furnishings. The City of Sioux Falls program
allows eligible expenses to be incurred within 36 months of the project start date.
City of Sioux Falls - Sales Tax Refund Parameters:
•
New construction project - must add at least $5 million to property tax base, or
• Non-realty capital assets investment of not less than $10 million, or
• a combination of new construction & non-realty capital assets exceeding $10 million
50-State Comparison . . . check it out:
sdreadytowork.com/tools-resources/50-state-comparison/
Resources
Governor’s Ofce of
Economic Development
800.872.6190 or 605.773.4633
www.sdreadytowork.com
Port of Entry / Customs
605.338.3424 or 605.941.6696
City of Sioux Falls
Finance Department
605.367.8860
www.siouxfalls.org/nance
Port of Entry / U.S. Customs
The Port’s U.S. Customs Ofce allows freight and passengers to clear U.S. Customs in Sioux Falls. Persons
interested in accessing Port Services are encouraged to contact the Sioux Falls International Marketing
Director.
Foreign Trade Zone
The Federal Government approved a Foreign Trade Zone in Sioux Falls. FTZ #220’s current activated
General Purpose Warehouse site is Nordica Warehouses, Inc., located at 801 South 6th Avenue. The site
consists of a 125,000 square foot public dry goods heated warehouse, freezer building and cooler build-
ing. For more information, contact Nordica Warehouses at 605.336.9152. Rosenbauer-America, Inc. is
FTZ #220s only Manufacturing Foreign Trade Zone site and it is located in Lyons, South Dakota. This site
consists of approximately 10 acres.
South Dakota Reinvestment Payment Program
This program is available to assist companies in offsetting the up-front costs associated with relocating or
expanding operations and/or upgrading equipment in South Dakota. The program allows for project
owners to receive a reinvestment payment, not to exceed the South Dakota sales and use tax paid on
project costs, for new or expanded facilities with project costs in excess of $20,000,000, or for equipment
upgrades with project costs in excess of $2,000,000.
South Dakota Jobs Program
This program is available to assist companies in offsetting the up-front costs associated with relocating or
expanding operations and/or upgrading equipment in South Dakota. The program allows for project
owners to receive a South Dakota Jobs Grant for new or expanded facilities with project costs less than
$20,000,000, or for equipment upgrades with project costs less than $2,000,000.
13
Resources . . .
Resources
Governor’s Ofce Of
Economic Development
800.872.6190 or 605.773.4633
www.sdreadytowork.com
Governor’s Ofce of Economic Development
The Governor’s Ofce of Economic Development’s main objective is to expand primary job
opportunities and enhance the quality of life for all South Dakotans. GOED works to retain
and expand existing businesses, foster new businesses, facilitate business succession and recruit
out-of-state businesses. The ofce works closely with community economic development
corporations to help prepare communities for development and to expand and diversify the
state’s industry and economy. Additionally, GOED administers a variety of nancing oppor-
tunities available to new and expanding businesses.
Sioux Falls Development Foundation
As a non-prot development corporation, SFDF provides a variety of professional services including
industry and business specic location assistance for new and expanding rms, and information on
available industrial park land, buildings and sites. SFDF works in partnership with the Governor’s
Ofce of Economic Development, local municipalities, county ofcials, the Minnehaha County Eco-
nomic Development Association, the Lincoln County Economic Development Association, Zeal Cen-
ter for Entrepreneurship, USD Discovery District, as well as real estate brokers and nancial institution
representatives to assist you.
The Foundation owns and operates the Sioux Empire Development Parks and Foundation Park.
Established in 1970, the park developments total nearly 2,200 acres, and are zoned I-1 or I-2. In ad-
dition, SFDF owned the commercial development Campus Crossing near the junction of I-90 and
Marion Road.
Development Foundation services include:
. . . Information on Industrial Park Land, Available Sites & Buildings
. . . Connections to Local Municipal & Business Service Providers
. . . Business Retention & Expansion Services
. . . Workforce Development Services
. . . Demographics, Utility & Labor Information
. . . Area Business Listings/Directories
. . . Business & Tax Climate Data
. . . Quality of Life Information
200 North Phillips Avenue, Suite 101, Sioux Falls, SD 57104
605.339.0103 or 800.658.3373
Resources
Minnehaha & Lincoln County
Economic Development Associations
800.658.3373 or 605.339.0103
www.siouxfallsdevelopment.com
Zeal Center for Entrepreneurship
& Startup Sioux Falls
605.275.8000
www.facebook.com/zealsiouxfalls/
www.startupsiouxfalls.com
Additional Resources
Enterprise Institute
605.697.5015
www.sdei.org
South Eastern Council of Governments
605.367.5390
www.secog.org
www.dakotabusinessnance.com
Minnehaha County & Lincoln County
Economic Development Associations
The Minnehaha and Lincoln County Economic Development Associations
(MCEDA & LCEDA) represent a two-county economic development coop-
erative between 14 incorporated communities surrounding Sioux Falls, two
county governments and the Sioux Falls Development Foundation. The
organizations share staff and resources to add leadership and expertise
to local economic development efforts. Working with local governments,
community leaders and volunteer economic development boards, the two
organizations assist communities with new business recruitment, business
expansion, land development, workforce development and community
development issues. Together, they provide companies with a focused,
single point of contact to explore expansion or relocation opportunities
within the region.
Zeal Center for Entrepreneurship
The Zeal Center for Entrepreneurship is Sioux Falls’ hub for small business and startup incubation,
startup ecosystem organizations, exible ofce and coworking space, meeting space and wet lab
space. As a 45,000 square foot multi-use facility, Zeal is home to numerous startups, established and
growing businesses and non-prot organizations that serve small business owners and startup found-
ers. If you are interested in starting a business in Sioux Falls, the Zeal Center should be your rst stop.
Startup Sioux Falls
Startup Sioux Falls is a community organization operated by the Zeal Center for Entrepreneurship that
connects small business owners and startup founders to one another and to the startup ecosystem. Its mis-
sion is to create a movement of small business owners and startup founders working to create and grow
businesses for the betterment of themselves, their families, and their communities. Startup Sioux Falls hosts
numerous in-person events each year and its online community boasts nearly 7,000 members.
Announcing . . .
15
Sioux Falls Development Foundation
200 North Phillips Avenue, #101
Sioux Falls, SD, 57104
605.339.0103 or 800.658.3373
www.siouxfallsdevelopment.com
South Dakota’s 1st Mega-site
I-29 & I-90 Access
Crossroads Location
900+ Acre Park
800 Acres Available Now
Class 1 Rail Frontage
Northern Gateway to Sioux Falls
Zoned I-2
~~ est. 2015 ~~
USD Discovery District
4800 North Career Avenue, # 100
Sioux Falls, SD, 57107
605.275.8010
www.usddiscovery.com
And . . .
The USD Discovery District is an innovation community bringing together research, education
and business to capitalize on the region’s signicant and growing medical and biotech capacity.
The 111-acre District is being developed in partnership with the South Dakota Board of Regents,
the University of South Dakota, the State of South Dakota, Forward Sioux Falls and the City of
Sioux Falls.
An 111-acre Research Park
in Northwest Sioux Falls
A resource to help grow companies in South Dakota & connect
universities with innovation-driven businesses
A master-planned, high density innovation district
Location, Location, Location . . .
Sioux Empire Development Parks
. . . provide just the address you’ve been looking for!
Park Stats:
150 Businesses
11,500+ Employees
17
