What's Happening?
Smithfield Foods has announced plans to relocate its pork processing facility from downtown Sioux Falls to a new site on the northern edge of the city. This move is part of a deal that includes a $50 million donation from philanthropist T. Denny Sanford. The new plant, expected to be completed by the end of 2028, will be built in Foundation Park, an area developed by the Sioux Falls Development Foundation. The relocation is seen as a significant opportunity for redevelopment in the downtown area, which has been home to the plant since 1909. The project will also include a new wastewater treatment operation. The state of South Dakota is contributing $12 million in grants to support the project, and the city plans to create a tax increment financing
district to facilitate the move.
Why It's Important?
The relocation of Smithfield Foods' plant is significant for Sioux Falls' economic landscape. The move is expected to revitalize the downtown area, providing opportunities for new developments. The project is also crucial for maintaining the economic stability of the region, as Smithfield employs 3,200 people in Sioux Falls, contributing $200 million in wages annually. The decision to keep the plant in South Dakota mitigates potential economic losses that could have occurred if the company had moved out of state. Additionally, the project aligns with broader state efforts to manage foreign ownership of agricultural land, given Smithfield's ownership by the Hong Kong-based WH Group.
What's Next?
The relocation project will proceed with the construction of the new facility, expected to be operational by 2028. The Sioux Falls Development Foundation will work on acquiring and demolishing structures on the current site for future redevelopment. State and city leaders will continue to manage the economic and regulatory aspects of the project, including the implementation of the tax increment financing district. The move also comes amid ongoing discussions about foreign ownership of agricultural land, which may influence future legislative actions in South Dakota.
