SIOUX FALLS, S.D. (KELO) — Things started with a cool project in 2018 and it just got colder on Monday.
Win Chill LLC built a 205,000 square foot building with 7.7 million cubic feet of cold storage in 2018 in Foundation Park. It was the first project in the industrial park which was established in 2015.
On Jan. 11, Schwan’s Company and CJ Foods announced it planned to build a 700,000 square foot Asian food production facility that will produce frozen and shelf storage products. Construction won’t likely happen until 2022 but groundbreaking is set for this spring.
The 825-acre park was divided into two phases. Phase I has 430 acres and Phase II has 390 acres. A 390-acre mega-site was also available but the Schwan’s/CJ Foods project will use a large portion of that.
Bob Mundt, the president and chief executive officer of the Sioux Falls Development Foundation, which owns and manages the park, said the latest project is an estimated $500 million investment.
The Schwan’s/CJ Foods facility will be north of the Amazon facility. Amazon plans to build a 640,000 square-foot fulfillment center. Amazon said in December that the facility will have 1,000 jobs.
Win Chill’s project was about $46 million. Three weeks before the opening of the first facility in May of 2018, company officials were already planning an expansion of 125,000 square feet.
Dakota Carriers became the second tenant with about eight acres in 2018.
Tessier’s, an HVAC company, bought about five acres and started construction in 2020, Mundt said.
The park will have at least six tenants when Amazon and Schwan’s/CJ Foods complete their projects.
Storage has been a cornerstone of Foundation Park as Nordica of Sioux Falls became the third tenant.
Nordica already had one million square feet of storage in Sioux Falls. It added 300,000 square feet at Foundation Park in 2019 Company officials said in November they planned to move into another 200,000 square feet in 2020.
“We deal in truckloads mainly, pallet size loads,” Nordica Warehouses President Dan Afdahl said in a Nov. 19 KELOLAND Your Money Matters story. Nordica Warehouses store products for different companies, many in manufacturing.
The storage companies serve customers from across the U.S. and around the globe. So a frozen turkey or a corrugated box can be stored and possibly packed in Foundation Park and then get shipped truck or rail across the country or even to the Netherlands. It just depends on the company and the product.
Rail service and proximity to two interstate highways are two features highlighted for potential tenants.
The foundation lists the park as having Burlington Northern Santa Fe (BNSF) certified rail sites.
According to the BNSF website, “BNSF’s Site Certification Program identifies optimal rail-served sites and conducts in-depth reviews of ten economic development criteria to determine if the site meets BNSF’s stringent readiness standards, which are intended to minimize development risks customers may face.”
Win Chill’s website states that it has access to BNSF rail service.
The foundation’s website said the park had 117 acres with rail access. The acres with rail access are the most expensive of the available sites. Those sites are $3.50 psf. Non-rail access is $3 psf.
The foundation does list two green sites at $3.75 psf.
The city of Sioux Falls approved 539.25 acres for a Tax Increment Finance district in the north portion of Foundation Park. TIF was approved by the Sioux Falls City Council on Sept. 15.
The TIF means that new taxes beyond the base created by improvements are deferred increments. The new taxes are paid but placed in a fund. The developer is reimbursed for the costs of installing infrastructure from that fund.
City and foundation officials said in a Sept. 17 KELOLAND news story that the TIF district means the foundation can install infrastructure so lots are ready for any new development.