Directions. Financial group moves into new Sioux Falls offices. Sioux Falls Airport plans terminal expansion
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1 Directions Sammons Financial Group and the executive offices of Midland National Life Insurance Company will be in the new Sammons building by the middle of February. The site, at the intersection of Interstates 229 and 29, allows space for future expansion and the company s growth. Volume 33, Number 1 January-February, 2009 Financial group moves into new Sioux Falls offices Midland National Life Insurance has been a highly visible element of the Sioux Falls business community since But the company s move from its landmark downtown gold headquarters is more than just expanding into a larger building. Midland National is a member of Sammons Financial Group (SFG), a large, diversified financial service organization and beginning this month, Midland National s executive office, along with support services for the life insurance side of SFG, will be operating from the Sammons building at the intersection of Interstates 229 and 29. The new 120,000 square foot building at 5400 South Solberg Avenue will provide space for their 550 employees, with opportunities for future expansion as needed. The Sammons building will play a key role in the future strategic growth of the company, said Rob TeKolste, Executive Vice President of Operations and on-site leader for SFG. It will create a wonderful place for employees to work in a Rob TeKolste comfortable, open, and collaborative environment. We feel that the new progressive layout will allow us to service our agents and policy owners even better. It also solidifies our commitment to the community, and doing our part to help make Sioux Falls a wonderful place to live and run a business. SFG consists of two brand-name insurance companies, Midland National and North American Company for Life and Health, multiple distribution channels, and five distinct business units. All combined there are over Continued on page 2... Sioux Falls Airport plans terminal expansion With more people flying out of the Sioux Falls Regional Airport, the facility s governing board has approved an expansion of the terminal to accommodate that growth and improve amenities for passengers. We want to provide more space for our passengers, said Mike Marnach, airport manager. With the new baggage handling equipment, the current ticketing area needs expansion to provide additional room. It s an investment in the airport and in the future. The project will involve an expansion of the terminal building to the northeast. In addition to adding more space behind the ticket counters for baggage machinery, the new space will open up more room in the public corridor of the ticketing area. Estimated costs for the expansion are approximately $7 to $9 million. The Airport Authority also plans to spend $7.9 million to improve the airport s secondary runway, with federal funding paying for most of that project.
2 Financial group moves into new Sioux Falls offices Continued from page ,000 agents representing the various subsidiaries of SFG. The company is operated by 1,100 The Sammons Financial Group building will be home to 550 employees with room for future expansion. Directions is published six times yearly by the P.O. Box 907, Sioux Falls, SD Phone , Fax Karen Ruhland, Editor SFDF Board of Directors Mark Shlanta, Chair Cathy Clark, Vice Chair David Knudson, Secretary Jack Hopkins, Treasurer Dana Dykhouse, Past Chair William L. Baker Jeff Erickson Paul Hegg Jeff Holcomb Chris Houman Dale Jans Mark Mickelson Becky Nelson Kristi Niechwiadowicz Carl Rapp Dr. Jim Robl W. Tom Simmons Fred Slunecka Gerry Sweetman Ex-Officio: Mayor Dave Munson Mike Cooper Commissioner Anne Hajek Working for regional economic development in partnership with: Lincoln County Economic Development Association Minnehaha County Economic Development Association employees working out of four locations. In addition to Sioux Falls, which is the largest SFG office and the executive office for Midland National, there are offices in Chicago, Des Moines, Fargo and Ann Arbor. According to TeKolste, the new Sammons building has been constructed to allow for an additional 40,000 square feet of office space, plus parking, on the Solberg Avenue site. The new facility will also feature food service provided by South Dakota Achieve s Accents on Events in an employee dining space featuring daily hot food options and a specialty coffee area. USA Today praises downtown development in Sioux Falls The Christmas day issue of USA Today ran a feature story about the resilient economy of Sioux Falls and the increasingly successful development of the community s historic downtown area. Referencing the economic state of Sioux Falls, the article quotes Dr. Ralph Brown. Historically, Sioux Falls experiences national recessions, but to a much smaller extent, said Brown, professor emeritus of economics at the University of South Dakota. Of the recession, Brown reported to the national newspaper, Sioux Falls breezed through that with ease. Brown credits the city s diverse economy and the ability of its industries, notably health care and credit card operations, to weather downturns. The article also quotes local business people planning the Uptown at Falls Park project, which is being built in stages along North Main Avenue. The project began with a pair of old buildings, the Tri-State Creamery Building and the former Dakota Moline Plow Co. Building, now known as Larson Square. The next phase, The Arches, will be a complex of 60,000 square feet of commercial space, about six stories high, with about 80 apartments, a fitness center, lounge, roof deck and conference center, all connecting to the older buildings. USA Today also congratulates Sioux Falls on its cultural diversity, referencing the people from 94 nations who speak 124 languages and dialects who utilize the community s Multi-Cultural Center. Downtown Sioux Falls hosts a variety of events from car shows to concerts to festivals. Mike Masterson, chairman and CEO of SFG and a former Sioux Falls resident himself, believes Sammons Financial Group has a bright future in the South Dakota community. Our new building will create a very attractive work environment for all of our employee-shareholders, Masterson said. The Sammons building is designed to accommodate significant growth as we continue to expand our businesses. We have now been in the business for over 100 years and look forward to being part of the Sioux Falls community for the next 100. Page 2
3 Mark Shlanta Cathy Clark The Sioux Falls Development Foundation board of directors has selected a new executive committee for Chosen to lead the economic development organization this year are, Mark Shlanta, SDN Communications, chair; Cathy Clark, Wells Fargo Bank, vice chair; Jack Hopkins, CorTrust Bank, treasurer; Dave Knudson, Davenport Evans Hurwitz & Smith, secretary, and Dana Dykhouse, First PREMIER Bank, past chairman. The Development Foundation has a challenging year ahead as we work to maintain the momentum of Jack Hopkins Dave Knudson Dana Dykhouse Development Foundation chooses new executive committee our local economy, Shlanta said. We will be relying on the talents and experience of our executive committee and our entire board of directors as we chart our course for the future. South Dakota is #1 in the Economic Freedom Index Membership will help maintain momentum in challenging times The 2009 membership campaign of the Sioux Falls Development Foundation is currently underway, with a reminder to the area business community that no organization works harder in good times and in bad to keep our economy strong and growing. In order to maintain the economic momentum we ve created in Sioux Falls, we must talk to more companies, increase our marketing efforts and be a stronger advocate for We must talk to more companies, increase our marketing efforts and be a stronger advocate for economic growth and development in the Sioux Falls area than we have ever been before. economic growth and development in the Sioux Falls area than we have ever been before, said Development Foundation president Slater Barr. The active participation of the business community, through membership in our organization, enables us to do all those things. Members from 2008 should be receiving their 2009 renewal materials soon. Please return your membership form and your renewal check at your earliest convenience. If your business is not a member, please call the Development Foundation office at to find out how easy it is. Or, if you have questions about membership, call vice president Dan Hindbjorgen, who will be glad to meet with you to discuss your participation in the future of Sioux Falls. Pacific Research Institute (PRI), a free-market think tank based in California, has released the U.S. Economic Freedom Index: 2008 Report, a ranking of economic freedom in the 50 states. Published in association with Forbes, the Index scores states based on 143 variables, including regulatory and fiscal obstacles imposed on businesses and residents. South Dakota, which ranked 15th in 2004 (the last time the Index was published), has assumed the spot as the nation s most economically free state, while New York consistently remains the most economically oppressed state, ranking 50th in all three editions of the Index. According to the recently-published rankings: As the most economically free state, South Dakota has no corporate income tax, no personal income tax, no personal property tax, no business inventory tax, and no inheritance tax. South Dakota s business climate is thriving and companies are relocating and opening plants in the state. In 2007, the Small Business Survival Foundation ranked South Dakota as the best business climate for entrepreneurs. In 2008, Forbes magazine ranked Sioux Falls as the best smaller metro area for business and careers. Moreover, the state has faired well in other indexes measuring items such as the United Van Lines inbound migration ratings and the cost of doing business in the state, measured by the Milken Institute. Reflecting an economic-freedom renaissance which has been occurring in the Upper Midwest, South Dakota made a big leap in relative economic freedom from 2004 to 2008 advancing 14 places. Page 3
4 The 2009 edition of Interns in Industry has kicked off with briefings introducing the program to representatives of Sioux Falls area companies. This year we will offer over thirty internship opportunities, with nearly a dozen already reserved, Workforce Development Director Mary Medema said. Industries from manufacturing to banking to information technology are participating in the program in The Interns in Industry program coordinates the screening of interns for regional businesses and offers a $500 scholarship to those students who complete their internships. Companies are provided with a short list of college students to interview for their internship opportunities based on students who have applied through the Interns in Industry program. We send notices to ten educational institutions nearby, Medema said, but a wider circle of students hear about the program from friends, parents or other college web sites. In past years, we have had students representing nearly 20 schools applying for our internships. Program connects students and businesses The program has proven to be very popular with students and businesses, Medema said. The screening of interns helps companies find the best candidates often leading to job offers made to the interns upon graduation and students are able to go to a single source to explore a variety of internships available. The scholarship is a big plus, Medema said, but the success of Interns in Industry is based on placing the right student with the right company. That way, everybody wins the community, the business and the student. From left, Andrea Walter, HR Generalist at LodgeNet Interactive Corporation, and Wendy Alexander, Human Resources Administrative Assistant at Home Federal Bank, meet with Workforce Development Director Mary Medema. If your company is considering offering an internship this summer, Interns in Industry can help. Just contact Mary Medema, Workforce Development Director, Forward Sioux Falls, phone or marym@siouxfalls.com University of South Dakota accounting student wins scholarship A Alison Klinkhammer, an accounting major at the University of South Dakota through the University Center in Sioux Falls, is one of four area students to receive the 2008 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 students who are Sioux Falls residents or who have completed at least one year of post-secondary work in a South Dakota institution. Klinkhammer is a single mother, working two jobs while taking courses for her degree at the University Center. She is a bookkeeper at the Flying J Truck Stop in Sioux Falls and an insurance claims examiner with Sanford Health Plan. She is also the Alison Klinkhammer recipient of the Heart of Tomorrow and Women s Opportunity scholarships. Klinkhammer has been on the dean s list at the USD Beacom School of Business for the past two semesters. Business interests me, especially the numbers, Klinkhammer said. My goals for the future include the possibility of working in financial planning. I want my family and the state of South Dakota to be proud that I ve stayed here, close to home, where I can work for the greater good and the continued growth of our state. The Sioux Falls Development Foundation is proud to be the sponsor of the Spirit of Sioux Falls scholarships and congratulates Alison on her achievement. Page 4
5 Sioux Falls Development Foundation Chairman s Report By Mark Shlanta Challenging times require us to share our story In recent months, the Sioux Falls Development Foundation has been in the forefront of those organizations and individuals reminding us that, here in the Sioux Falls area, things are not as bad as the national media would have us fear. The Sioux Falls area has retained much of its home values, increased population and is looking at another year of significant construction activity in retail, in healthcare and in housing. More than ever before, Sioux Falls is the best place in America to grow a business and raise a family. In 2009, we need to be very aggressive in sharing that story with business people in our neighboring states and across the nation. Companies who hear our message of opportunity for the future may not act this year but when conditions improve and the American economy comes roaring back, we need to be ready for them come to Sioux Falls. If business owners and corporate decision makers know that Sioux Falls can hold its own in this economy, they will know that our area is a great place for them to grow with us. The Development Foundation is strengthening marketing and networking efforts to get the word out. More than that, we are actively planning for the future, knowing that when opportunities arise, our organization and our community will need to act quickly and decisively to seize those opportunities. Our team is exploring exciting new ideas to prepare for the inevitable resurgence of the US economy and our place in meeting the needs of companies that want to share the future with all of us. We d like you to be part of the future through your membership in the Development Foundation. If you haven t joined us yet, consider doing so this year. We value your participation and look forward to helping you grow your company. Please call us at for membership information. Marketing carries message to Minnesota businesses As the national recession hits high-cost markets like the Twin Cities of Minneapolis and St. Paul, Sioux Falls is continuing to broadcast the message of higher productivity and significant cost saving to business owners there. Development Foundation vice president Dan Hindbjorgen is the voice of Sioux Falls on radio commercials running on KSTP-AM, a highly rated station for corporate decision makers. The feedback we get is amazing, Hindbjorgen said. Comments range from rants about us stealing Minnesota companies to complaints about my voice. But most of all, we hear from people who want to find out more about doing business in Sioux Falls and getting away from the high taxes, long commutes and excessive regulation of their home state. South Dakota s Governor s Office of Economic Development is also running radio advertising in the Twin Cities market pointing out the advantages of doing business here.the combination of Sioux Falls commercials and the state s radio ads lends strength to the message and increases the penetration of our economic development message to the Minnesota market. The best response we ve had was when the Minnesota governor s office and legislature were discussing our marketing and what they could do about keeping Minnesota companies in the state, Hindbjorgen said. When that happens, you know people are taking our advertising seriously! Dan Hindbjorgen Page 5
6 Sioux Falls Development Foundation President s Report By Slater Barr Taking advantage of our opportunities in 2009 The closing of the Sioux Falls Hutchinson Technology plant reminds us of the realities of our current economy. For 20 years, Hutchinson was an excellent corporate citizen and brought talented people to our community people who will continue to contribute. The closing of this high tech plant reminds us that we will be facing real challenges here in Sioux Falls during the coming year. Having said that, we have several unique opportunities being presented to us during We have the chance to tell a story that is quite different from the dismal national news and, in telling that story to prospective new businesses, to make our future brighter as a result. Sioux Falls continues to enjoy one of the lowest unemployment rates of any metropolitan area in the nation. The larger cities in our state have been identified as the best places in the US to find a good job even during the current recession. We have been called a Diamond in the Rough Economy. And that makes sense, registering, as we did, the third largest increase in construction activity in Sioux Falls history while the rest of the nation was experiencing the first 12 months of this recession. In the past six decades, our community has been through six recessions. And following each of those recessionary periods, Sioux Falls emerged stronger and more prepared for a brighter future because we prepared for that future. We can cite a variety of statistics to show how different our economy is. Our health care industry is growing and spending tens of millions on major construction projects. National retailers Target and Kohl s will start construction on large new stores at Dawley Farm Village in eastern Sioux Falls among the limited number of stores those companies are building anywhere in the country. The point is, companies have confidence in the future of Sioux Falls. This year will be difficult for our nation. But now is the time we must act. During 2009 we will be planning for the future and marketing Sioux Falls aggressively as a business location and a place for people to find meaningful jobs with a future. By looking ahead with confidence and seeing the positive elements of our local economy, we can be ready for tomorrow and seize the opportunities presented by this historic year. Best business climate... and the build-ready land you ve been looking for! Sioux Falls Development Foundation P.O. Box 907 Sioux Falls, SD ADDRESS SERVICE REQUESTED. Build-ready, affordable sites are available in the Sioux Empire Development Parks. Prices include: Water Sewer Curb and gutter Hard-surface roads Prices start at $1.95/sq. ft. Contact Dan Hindbjorgen, Sioux Falls Development Foundation Call , danh@siouxfalls.com or visit our Sioux Falls website at
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