Nov. 9, 2020

This paid piece is sponsored by the Minnehaha County Economic Development Association.

Call it the best deal they never got.

That’s how Jeff Eckhoff, who at the time served as head of the Minnehaha County and Lincoln County Economic Development Associations, remembers the deal that sparked a massive community investment in the Brandon area two decades ago.

“We were working with a company looking to do a soybean oil crushing plant, and one of the requirements was you had to control the land,” he said. “So we identified two parcels on a site with rail, and we got options to buy both.”

But through the competitive process, the plant ended up going to Minnesota.

“We often joke it was probably the best deal we never got,” Eckhoff said. “Because as the options were getting ready to expire, we started talking about how it’s still a good site. It’s still a rail site. So maybe we should figure out how to buy the land.”

Dennis Olson, who was Brandon’s city administrator at the time, remembers the conversation well – along with his reaction.

“I reached into my pocket and had a money clip I remember opening up, and I had $22. I said: ‘I’ve got $22. How much do you have?’ He didn’t have that much,” said Olson, now Brandon’s economic development director.

“I asked how in the world we were going to buy it.”

Over the next month, the two went to area banks and utilities, and one after the other said yes.

“I couldn’t believe it,” Olson said.

Photos by Aerial Ingenuity.

It came down to a $360,000 gap – and Sioux Falls filled it.

“Dan Scott, who then was the head of the Development Foundation, had walked into Jeff Eckhoff’s office and asked how he was coming on the Corson property, and when he heard there was $360,000 still needed, he said to put the Sioux Falls Development Foundation down for it,” Olson said.

“People say, what in the world did he do that for? At the time, the Sioux Falls Development Foundation had no rail sites, and this was right on the Burlington Northern line, so that’s why they got involved.”

Looking back, it was still the right thing to do, said Bob Mundt, current Development Foundation CEO.

“Absolutely,” he said. “We believe in regional leadership, and the development that resulted from that purchase has helped the entire Sioux Falls metro area.”

The purchase was made possible thanks to six other investors in addition to MCEDA, which contributed a $25,000 investment. The others each purchased two shares for a $100,000 contribution: the Brandon Development Foundation, The First National Bank in Sioux Falls, Home Federal and Security Bank, which are both part of Great Western Bank today, Alliance Communications and Sioux Valley Energy.

“Commitment to community is an important cooperative principle,” said Tim McCarthy of Sioux Valley Energy.

“Investments like this result in jobs, higher tax revenue, business growth and a better quality of life for our members and the entire region. Sioux Valley Energy is proud to have been part of the initial group of investors who saw the potential of economic growth stemming from the Corson Development Park all those years ago. We believe in the concept of a ‘rising tide lifts all boats.’ In other words, economic progress in one community has a positive impact on other communities.”

That’s a philosophy shared by The First National Bank, president and CEO Chris Ekstrum said.

“We have a vested interest in the growth and development of our communities, and Brandon is a critical community for us,” he said. “We have a branch there, it’s our Sioux Falls neighbor and fits our footprint well, and we felt there was good leadership and vision behind it, and it was a worthwhile investment.”

That proved correct.

While the project that initially prompted the concept of the Corson Development Park went east, there have been plenty of other businesses lined up behind it.

The 117-acre property now totals more than $27 million in property tax valuation, anchored by wind tower manufacturer Marmen Energy, which employs nearly 300 people.

“Initially, that building was built for another company that did similar manufacturing and never ended up using it,” Eckhoff said. “So when Marmen came along, they only had to make minor modifications, and by and large, the park, the yard, the streets were all built for the level of manufacturing they needed.”

Other employers include Raven Industries, which has a plant for its engineered films division, Henkel, Leeco Steel and Wausau Supply.

“My feeling is we draw labor from a lot of places: Dell Rapids, Canton, Tea, Harrisburg, Sioux Falls,” Olson said. “We had an abundance of apartments built out here in the last 10 to 12 years, and I think a big reason is because of the employment base. And as some of these workers get into homebuying mode, I think you’ll see many of them stay here.”

The Corson Development Park now is essentially full and recently paid off, and the partnership is dissolving. Each partner will receive 1.5 times the original investment and donate the remainder to the Brandon Development Foundation. Several are donating their original investment plus the return.

“We didn’t do it with an intent to make money; it was all about supporting the park,” Ekstrum said. “We know and trust them and anticipate they will use it to continue with their economic development efforts.”

That’s the plan, Olson agreed.

“We’re going to buy more land to develop,” he said. “And we plan to reduce our debt so that we’re able to invest in future development parks.”

Looking back, the shared investment continues to pay off, said Eckhoff, now the director of planning and development services for Sioux Falls.

“With a rail spur, the more land you can activate, the better, and long term it’s worked out really well,” he said. “It took about 15 years to get there, but now there’s money left to go invest in the next phase.”

The Corson Development Park is a prime example of how public-private partnerships can benefit all, said Jesse Fonkert, executive director of the Minnehaha County Economic Development Association.

“There are so many wins here. It’s definitely a model others can consider following,” he said. “And it absolutely shows we are stronger as a region when we come together to harness opportunities for shared growth.”