Sep. 20—CORSICA, SD — Twenty-five years after Corsica banded together to build its first business park, the city is poised for a new leap in economic development. With only one parcel left in the original park, Corsica is beginning construction on a new 24-acre, 11-lot business park.
The project began earlier this month with the hopes of attracting new businesses and jobs to the community. The business park, located on the southwest corner of Corsica’s city limits along U.S. Highway 281, will feature 11 lots ready for commercial development. This initiative is the result of months of planning and collaboration between the Corsica Development Corporation, the city’s Planning and Zoning Commission and the City Council.
The Corsica Development Corporation is a group of approximately 12 local volunteers, including residents, business owners, and community stakeholders. These unpaid board members are united by their passion for the growth and development of Corsica. The corporation’s board meetings address a wide range of topics, from investments in urban maintenance to strategies for promoting both residential and commercial development in Corsica.
In April, the corporation, commission and council held a public meeting to discuss creating a new tax increment finance (TIF) district for the project. The TIF, approved for $2.1 million, will cover various aspects of the development, including groundwork, infrastructure, street fees, landscaping and professional services such as engineering and legal fees.
The idea behind a TIF is to encourage development by providing upfront financing for public improvements within the project boundaries, such as roads, sidewalks, and utilities. As property values increase due to new businesses, the increased tax revenue can be reinvested to repay the initial development financing.
Jamie Rexwinkel, vice-chairman of the Corsica Development Corporation, was enthusiastic about the project, noting that this is the city’s second business park.
“It’s taken two or three years to get this project started,” Rexwinkel said. “Now that we’re finally on the ground and all the paperwork is done, it’s really exciting.”
The city of Corsica has one active TIF, established in 2022 to support a local housing project. In South Dakota, TIFs typically have a lifespan of 20 years, providing a long-term framework for economic growth.
However, the spending window is much shorter. A key aspect of the TIF is its five-year spending capacity. This means that once the five-year period is up, the city can no longer use TIF funds and all revenues that are currently against the TIF are cut off.
“This time constraint adds urgency to the development process,” Rexwinkel said. “It’s important that we attract businesses to the park quickly.”
Funding for the business park project comes from multiple sources. In addition to the TIF, the city received a $500,000 Local Infrastructure Improvement Program (LIIP) grant from the Governor’s Office of Economic Development. $900,000 was also secured from the East River REED Fund in partnership with Douglas Electric Cooperative. This is the second REED Fund loan awarded to the Corsica Development Corporation. In 2019, the corporation secured a loan to improve the infrastructure of a 19-lot residential park.
To further reduce costs, the city purchased the broken concrete from the landfill at a reduced price.
“We’re trying to drive down costs and create cost savings in the project to do it as cheaply as possible,” said Dave Lambert, regional development director for Dakota Heartland Development Association.
The development company recently acquired the land, after some delay due to the unexpected death of one of the landowners. Now that those issues have been resolved, the development team is ready to start working with potential companies.
Work on the industrial estate began earlier this month, with the first phase focused on pushing earth and preparing the road. VanderPol Dragline of Mitchell is the contractor for the project. Development of infrastructure, including water, sewer and electrical systems, will continue through winter. Rexwinkel expects paving to begin in the spring or summer of 2025.
Although originally planned for 16 lots, the design remains flexible. This adaptability allows potential tenants to customize their spaces prior to construction, taking into account different size requirements and specific needs, so that each business can occupy a bespoke facility within the park.
Despite the ongoing construction, plots within the business park are immediately available for purchase. While some members of the development corporation are nervous about the size of the investment, Rexwinkel’s confidence is reassuring.
“It gives us a purpose,” Rexwinkel said. “Now we have to get out there and work. Every meeting is important. We have to keep moving to fill the park.”
It is important that the industrial estate is populated quickly.
“We want to get some taxable property on the market. The sooner we can do that, the sooner we can pay back that loan.”
In addition to the business park, the city is also working on a housing project. Currently, 15 plots are ready in that project, with the potential to build another five plots in the future.
“We’ve seen rapid growth, there’s an urgent demand,” Rexwinkel said. “There are great things happening in Corsica.”
