Sustainable Development in the Growing Sioux Falls

Sioux Falls, South Dakota, isn't just the "Gateway to the West" anymore. It's a city on the rise, experiencing a surge in growth and development that's transforming its skyline and attracting attention nationwide. But what's driving this boom, and what does it mean for the future of Sioux Falls?

Mayor Paul Tenhaken said, in 2022 Sioux Falls did almost $2 billion, and in 2023 it was a pretty significant downturn from that, but still north of $1 billion. I would guess we'll be above a billion again this year, but what we saw in 2022 is we just had some massive big-ticket items like airport parking ramps, the Steel District, Cherapa II.

“In the Midwest, among all metro areas ― regions with at least one urbanized area of 50,000 people or more ― Sioux Falls grew the fastest, at 6.3%. It ranked 171st in size nationally at 304,555. The Sioux City, IA-NE-SD metro area's population of 144,402 ranked it at 298th in size nationally, according to the data.

Sioux Falls' growth is indicative of a larger pattern in the Midwest region. For the first time since 2020, more Midwestern counties showed population gains than losses.” - Samantha Lauren / Argus Leader

Numbers tell the story:

Population boom: Lincoln County is the fastest-growing county in South Dakota since 2020, growing by 12.4%. Its predicted population of 65,648 in 2020 ballooned to 73,238 by 2023. Minnehaha County also saw significant growth, with its population growing by 4.9% since 2020. This trend shows no signs of slowing down, with projections estimating a Sioux Falls population of nearly 300,000 by 2030.
Construction surge: Construction cranes dot the cityscape, with building permit valuations exceeding $1 billion in 2023. From massive healthcare projects to vibrant downtown developments like the Steel District and Cherapa II, the city's infrastructure is expanding rapidly.
Economic engine: Sioux Falls boasts a diverse and healthy economy, attracting businesses with its low taxes, skilled workforce, and strategic location.

Erica Beck, Chief of Staff interview

Erica Beck, Chief of Staff for The City of Sioux Falls says, “One of the things that I always point out to people, ultimately, is that we've been consistently growing, which I think is always a good sign in the health of any city. So decade over decade over decade, when the census updates those figures, we've just seen this steady population growth, probably about the last four years.

We have to continue to make significant investments in infrastructure specifically. That's going to allow for us to continue to grow. Those significant investments allow for all development to happen. Specifically our wastewater investments have been really significant over the last several years, since Mayor Tenhaken started. We have a project underway right now that should be finished within the next two years that's going to allow for 40 more years of capacity within our wastewater system. That's significant. It's not the fun stuff that anyone wants to talk about, but the reality is that if I'm a developer and I'm looking at coming into a community, I want to know that they're making those foundational investments so that I don't have to worry about whether or not I'm actually going to be able to open my building that I want to invest in and build three years from now.

I feel pretty confident in saying that Sioux Falls has made really solid foundational investments, not just in the time that Mayor Tenhaken has been in office, but decades prior as well. And those investments have really allowed us, I think, to be an attractive community to many companies coming into the Sioux Falls area”

Beyond the numbers:

Quality of life

Sioux Falls consistently ranks high in livability surveys, offering residents a vibrant arts scene, diverse neighborhoods, and a strong sense of community. Recent developments are focusing on creating walkable, sustainable spaces that enhance this quality of life.

Innovation hub

The city is fostering a culture of innovation, with initiatives like the Startup Sioux Falls for Entrepreneurship and the Innovation Plaza supporting startups and tech companies. This is attracting young talent and contributing to a dynamic, forward-thinking atmosphere.

Challenges & opportunities

Rapid growth brings its share of challenges, including housing affordability and infrastructure strain. However, Sioux Falls is proactively addressing these issues, investing in affordable housing projects and expanding public transportation options.

Erica Beck, Chief of Staff for The City of Sioux Falls says, “In addition to foundational investments, we also invested in quality of life projects, which are important to people. Quality of life means something different to everyone. It could mean that the pothole at the end of your driveway gets filled in a timely manner or it could mean that you can walk safely to a park. So we try to really balance out our capital improvement program in such a way that we are investing in those foundational infrastructure projects, but we're also investing in people's life and the quality of life that they have on a day to day basis, because that's really what's going to entice them to stay here and invest in their community. Whether they're investing in their own home or investing in a business themselves, all of that matters. We really try to balance out our investments to make sure that we're creating a community that people want to live in.”

Looking ahead:

Sioux Falls' growth story is far from over. The city's ambitious plans, combined with its strong economic foundation and commitment to quality of life, position it for continued success. The future of Sioux Falls promises to be exciting, innovative, and full of opportunity. So, keep your eyes on this Midwestern gem – it's just getting started!

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