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May 5, 2013

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GOVERNOR NAMES STURGIS 2013 COMMUNITY OF THE YEAR

April 23, 2013

STURGIS 4/17/13 – Gov. Dennis Daugaard presented Sturgis with the Governor’s Community of the Year Award at the Governor’s Office of Economic Development (GOED) annual conference in Sioux Falls on April 16. This special award recognizes leadership in the area of economic development. It also recognizes achievement, innovation and growth resulting from community efforts. All South Dakota communities with a population over 5,000 can vie for this “large community” award.

The award caps a year filled with thousands of hours of planning, hard work and innovative partnerships involving the Sturgis/Meade County community and state and federal agencies. Below is a recap of the development factors considered by the Governor’s office in making the award selection.

Downtown Revitalization

The City of Sturgis, Sturgis Area Chamber of Commerce, SEDC and individual business owners pooled funds and hired FourFront Design to assist in forming a downtown revitalization framework. A 15-member volunteer taskforce of downtown business and property owners and community leaders met weekly from August-December to explore core issues and create a plan to correct them. Three public input meetings were held. The framework presented to City Council included creating a Business Improvement District (BID) and a Downtown Overlay District. Both passed unanimously. The new ordinances allow mixed-use residential, offer building setbacks to encourage year-round retail, require demolition permits to include a timeline to rebuild, require buildings to meet code, address signage, facades, etc. A 501(c)3 will direct BID fees to create a downtown plaza and focus on expanding Sturgis’ event and revenue capabilities. First Interstate Bank is partnering with the City to convert a section of their property for the plaza.

Meade County Approved/Expanded 5-year Property Tax Abatement

In 2010, the Meade County Commission adopted a new discretionary formula. It provides a total abatement of property tax for five years on new industrial/commercial improvements or renovation over $30,000. Nearly $8 million in county-wide tax assessments have been removed. This amounts to an approximate tax dollar savings of $200,000. The abatement was expanded in 2012 to include the construction of commercial residential structures with four or more units.

Aspen Grove Assisted Living Facility

The Sturgis Comprehensive Plan states the need for senior housing as, “The City should encourage the construction of both independent and assisted living residential development for seniors.” In September 2012, the $3.2 million Aspen Grove assisted living project held its groundbreaking ceremony. When completed in August, it will create 20 healthcare jobs. Based on a multiplier of 1.27, an additional 25 jobs will be created. The innovation in this project lies in its multi-agency funding consisting of nine partners. The City of Sturgis, Greater Sturgis Lifecare Foundation, and SEDC all donated land for the project valued at $270,000. The Meade County Commission established the Meade County Economic Development Fund and contributed $100,000 in revolving loan financing. The project qualified for the Meade County tax abatement. Financing was also secured through SD WORKS, Wells Fargo Bank, BHCED/SBA 504, West River Foundation, SEDC, and a personal donation from Dr. George Jenter.

$100,000 Meade County Economic Development Fund

The Meade County Commission established the Meade County Economic Development Fund with a $100,000 contribution for the Aspen Grove project. The principal, along with the interest and all future contributions, will revolve to fund future economic development projects.

Sturgis City Council Approved First Planned Unit Development

In 2012, the Sturgis City Council approved a new Planned Unit Development (PUD) ordinance. It then approved Sturgis’ first PUD. This development proposal was brought forward by a local businessman due in part to Meade County’s expanded tax abatement for residential commercial construction. The development offers 44 additional workforce housing options including single family units, townhouses, and 2-story apartments for sale or lease. Other housing initiatives involving the City, SEDC, and local contractors are in process that would add additional workforce housing units. These will equal the total number of housing starts in Sturgis in the past six years.

Meade School District 46-1 Surplus Land Sales

The Meade School District determined it had a surplus school building and surplus parcels of land. They negotiated two sales to the City of Sturgis. The City then sold the former Badger Clark school to Northern Hills Alcohol and Drug Services (NHADS). NHADS is now able to combine their clinical inpatient, outpatient counseling, and administrative services in one location at a substantial cost savings. Their 23 employees were operating out of three facilities (Sturgis, Black Hawk, and Spearfish). Without this expansion, their growth was stymied. With it, NHADS will be able to expand services and create at least two new full time jobs.

USDA RBEG Grant

SEDC received a $99,999 matching USDA RBEG grant to construct a 5,000 sq. ft., 4-unit incubator in the Sturgis Industrial Park. This will allow start-up businesses the ability to work in an industrial-grade facility without associated individual start-up construction costs.

Charitable Foundation Account

A 501(c)3 tax-deductible Future Sturgis fund was activated at the Black Hills Area Community Foundation (BHACF) to accept local contributions for community improvement projects. In 2012, BHACF disbursed $35,000 in private contributions for public projects.

Industrial Zoning Amendment

The Sturgis City Council approved an Industrial Zoning amendment that allows limited residential use-on-review. This was done to entice out-of-area companies by allowing owners/managers the ability to live and work on-premise during their relocation transition. Since adopted, two companies applied for, and received, the use-on-review.

Sturgis Industrial Park designated a “south dakota Certified Ready Site”

In 2012, legislation went into effect making developers eligible to apply for “SD Certified Ready Site” status. SEDC is a private, non-profit development group. SEDC completed the rigorous certification process for the 45-acre Sturgis Industrial Park. In January 2013, the Sturgis Industrial Park received its official “SD Certified Ready Site” designation. It is one of only four in South Dakota with this designation.

SHOT (Shooting, Hunting, & Outdoor Trades) Show BOOTH

For over 12 years, the Sturgis booth at the SHOT Show has been a staple for generating firearms-related leads. It is one reason why the Sturgis Industrial Park has been able to claim the largest firearms manufacturing cluster in SD. In 2012, six representatives of the City of Sturgis, Meade County, Black Hills Power and SEDC worked the Sturgis booth during the weeklong event gathering leads and reconnecting with prospects.

New Sturgis Industrial Park Businesses

Samson Exhaust motorcycle parts manufacturer is relocating from California and building a 45,000 sq. ft. facility in the Park. It will create 30 jobs when completed in May. Based on a multiplier of 2.14, an additional 64 jobs will be created.

Black Hills Manufacturing Services, Inc. start-up company organized in 2012 and located in the Park. The five partners will provide production, consulting, and metal treatment services not formerly available locally. Based on a multiplier of 2.14, an additional 10 jobs will be created.

Black Hills Grid is another start-up company that will be offering manufacturing services and production capacities in the Industrial Park in 2013.

King of the Mountain recently relocated to the Industrial Park from Colorado. For 30 years they have been the leader in woolen outdoor wear and are preparing to take their newly patented KarbonXtreme™ Technology to market.

Career Day On-Site Tours

The Meade School District, SEDC, and local businesses created an opportunity for 25+ Sturgis Brown High School students to tour five Sturgis Industrial Park manufacturing operations. Students applied to participate. The goal was to expose the students to local industry employment opportunities and encourage appropriate high school courses and post-secondary training.

Sturgis Economic Development Corp. Names 2013 Board

March 27, 2013

STURGIS (3/26/2013) – At the 2013 Annual Meeting of Members of the Sturgis Economic Development Corp. (SEDC), Ron Rosenboom (Black Hills Special Services Cooperative) and Lonnie Isam (Competition Distributing) were re-elected to three-year Board terms. Irv Stone (Bar-Sto Precision Machine) was elected for a first term. Outgoing board member Norma Allen was recognized for her contributions to economic development over the past 27 years. Doreen Creed, former SEDC representative for Meade County, was also recognized. Alan Aker is the 2013 SEDC representative for Meade County.

High School Students Tour Area Manufacturers

March 8, 2013

STURGIS, SD (3/6/2013) – Enhancing the traditional Career Day format, Sturgis Brown High School students reversed the educational offering and toured five metalwork manufacturing operations in the Sturgis Industrial Park on March 6.

Thirty juniors and seniors applied for the opportunity to tour the businesses. Accompanied by faculty and adult family members, they met with business owners, managers, and employees to gain a firsthand perspective on modern manufacturing processes. These processes include software programming, CNC programming, and product development.

Participants also learned about the coursework required for entry-level success, aptitude and skill sets necessary for career success, and regional salary expectations and career development opportunities.

The participating businesses include: Legend Air Suspension, Bar-Sto Precision Machine, Horizon Machine, Black Hills Manufacturing Services, and Dakota Arms/Remington.

This workforce development initiative is a cooperative effort among the Meade School District 46-1, Sturgis Economic Development Corp (SEDC), and local businesses. Pat Kurtenbach, SEDC President states, “This is an exceptional time for students and family members to explore local career options in metalwork manufacturing. The mentoring provided by these manufacturers is an investment in our community’s future.”

New Metalwork Service Provider Locates in Sturgis Industrial Park

February 21, 2013

STURGIS, SD (1/28/13) – Bruce and Christine Bowen of NIP Manufacturing, Inc. and 100 Straight Products, Inc. have contracted to sell their building and equipment located at 3541 Mayer Avenue in the Sturgis Industrial Park to Black Hills Manufacturing Services, Inc. (BHMS).

Black Hills Manufacturing Services, Inc. is a start-up company founded by Rob Hrabe, Dr. Kim Morey, Dr. Craig Bailey, Gary Hamilton, P.E., and David Janovy. BHMS was formally organized on July 1, 2012 with the primary goal of providing services not available locally to the manufacturers of the Black Hills region. Some of these services are anodizing, heat treating, and production and product engineering consulting. While BHMS will focus on the firearms, energy, and motorcycle industries, they will be able to serve manufacturers in a variety of industries. The purchase of the Bowen’s property also offers a “job shop” capability that they will actively pursue.

Market research conducted prior to forming BHMS also indicated many regional manufacturers will have the potential to increase production and reduce costs when the services provided by BHMS are available locally. In addition to the five owners, BHMS expects to add five more full-time jobs by the end of 2013.

Christine and Bruce Bowen will continue to operate 100 Straight Products, Inc. from the location after the sale is complete.

The Sturgis Industrial Park is a 45-acre site-ready industrial park, with only 18-acres remaining for industrial-zoned development. It is located within the Sturgis city limits, off I-90 Exit 30 and the Whitewood Service Road.

Sturgis Industrial Park Designated a South Dakota Certified Ready Site

February 20, 2013

PIERRE, S.D. (2/20/2013) – The Sturgis Industrial Park has been approved as a South Dakota Certified Ready Site, announced Pat Costello, Commissioner, Governor’s Office of Economic Development (GOED).

“I would like to congratulate the Sturgis Economic Development Corporation on its successful application for a South Dakota Certified Ready Site,” said Costello. “The community of Sturgis will benefit from the presence of an economic development tool that makes it easier for prospective buyers to choose Sturgis.”

The program launched in 2012 and has semi-annual application deadlines of May 1 and Nov. 1.

“The presence of a Certified Ready Site will be an important part of our business attraction and expansion efforts in Sturgis and Meade County,” said Pat Kurtenbach, President, Sturgis Economic Development Corp. “We appreciate the opportunity to apply for this designation, and believe prospective businesses will see the value in locating in the Sturgis Industrial Park based on the consistent standards set by the State.”

Located off I-90 Exit 30 at the intersection of Whitewood Service Road and Industry Road, Sturgis Industrial Park covers 45 acres and is certified and zoned heavy and light industrial.

The South Dakota Certified Ready Sites Program is an economic development tool available to all counties, cities, townships, planning districts, business improvement districts and economic development groups.

The South Dakota Certified Ready Sites Program is operated under the supervision of the Governor’s Office of Economic Development (GOED) for the purpose of providing consistent information on sites available throughout the state. For more information on the South Dakota Certified Ready Sites program, visit www.sdreadytopartner.com.

Outdoor Garment Design Manufacturer Locates in Sturgis Industrial Park

February 20, 2013

STURGIS, SD (2/15/13): King of the Mountain, Inc., an outdoor garment design and manufacturer, recently relocated from Loveland, CO to 3572 Mayer Avenue in the Sturgis Industrial Park. Founded in 1981 by King Cavalier II, the company is expected to employ 10 locally when fully staffed.

King of the Mountain offers a revolution in radiant, hi-tech natural fiber using wool combined with other exclusive fiber technology. The company started in 1981 with in-source design, marketing and distribution, and out-source manufacturing. For over 30 years, King of the Mountain has proven to be a leader in woolen outdoor personal thermal solutions. They are now preparing to set a new standard for fabric performance in the fire retardant/defense market with patent-pending technology fabrics that use the radiant, natural benefits of wool combined with the high-tech qualities of OPF carbon and pararamid (Kevlar) in a special woven application.

KarbonXtreme™ Technology (KX) adds caloric heat 10x’s faster than ordinary wool fabric or blends. The fabric is extremely comfortable, nail tough, stealth quiet, scent suppressant and ounce for ounce more fire retardant than any other single layer fabrics. This base technology has outfitted cold weather applications from US Navy Special Warfare (SEAL) since 1985 to police/military and outdoors people worldwide. The new patent pending fabric was created after 28 years of research and development by the founder.

Company President King Cavalier states, “We were pleasantly surprised to find such a remarkable outdoor-related business atmosphere in Sturgis for our relocation. Both the corporate and facilities infrastructure, as well as the small town environment, make this a wonderful place for any company to seriously consider the Black Hills playground as a new home.”

Pat Kurtenbach, President of the Sturgis Economic Development Corp, says, “We are pleased to have King of the Mountain join the other quality companies located in the Sturgis Industrial Park. The company’s affiliation with the shooting, hunting, outdoor and defense industries is a unique fit for our manufacturing base.”

The Sturgis Industrial Park is a 45-acre site-ready industrial park, with only 18-acres remaining for industrial-zoned development. The Park is located within the Sturgis city limits, off I-90 Exit 30 and the Whitewood Service Road.

State, Local Reps Promote South Dakota at SHOT Show

January 12, 2013

PIERRE, S.D. – South Dakota economic development officials are pleased with the results of last month’s Shooting, Hunting and Outdoor Trade Show (SHOT).

“This was the 12th consecutive year South Dakota has attended the SHOT Show,” said Pat Costello, Commissioner, Governor’s Office of Economic Development (GOED). “The quality and number of leads that came out of the 2013 show reaffirmed the benefit of our continued presence. Our delegation was pleased with the number of new and existing contacts they were able to connect with at the show.”

The South Dakota delegation included state representatives, city-level economic developers and Bar-Sto Precision of Sturgis. The delegation held more than 25 meetings throughout the show with previously established prospects, new leads and existing South Dakota companies.

“The Sturgis Economic Development Corp (SEDC) and local development partners have participated in the SHOT Show for many years,” said Pat Kurtenbach, SEDC President. “It is a great opportunity to connect with companies in various phases of business relocation. Each year, allows us to strengthen those relationships, introduce others to the advantages of doing business in South Dakota, and continue to bring new economic development to the region.”

The 2013 show also provided an excellent opportunity to promote South Dakota’s business climate.

GOED representative Joe Fiala was featured in a NRA News segment on Jan. 14. Fiala discussed the benefits of doing business in South Dakota for shooting, hunting and outdoors companies.

The annual SHOT Show in Las Vegas is the world’s premier exposition for industries involved in firearms, ammunition, and other equipment and supplies for shooting sports and hunting. SHOT Show attendance was more than 62,000 this year, with 1,600 exhibitors. There were nine South Dakota companies exhibiting independently of GOED at the show.

“Our delegation came away from this show with new leads and stronger relationships with existing prospects. I look forward to continuing to develop our relationships with these companies, and welcome them to South Dakota in the future,” Costello concluded.
To learn more about South Dakota’s shooting, hunting and outdoors industry visit www.sdreadytowork.com/firearms.

Construction Begins on $3.2M Assisted Living Facility; Ceremony Set

September 25, 2012

STURGIS (9/25/2012) – Construction began this week on the Aspen Grove assisted living facility located on Moose Drive in Sturgis. The $3.2 million, 22,000 square foot facility will provide 33 apartment suites offering assisted living services. It will create 15 full time jobs, as well as several part time positions. Aspen Grove will be ready for occupancy in 2013. Gustafson Construction from Rapid City is the general contractor.

A public ceremony will take Tuesday, October 30, at 10:00 am, at the Boulder Canyon Convention Center, Sturgis.

Paul Contris and Tom Boerboom are the owners and developers of the project. They have over 50 years of combined experience operating senior housing facilities in South Dakota, Minnesota and Wyoming under the Mission Healthcare umbrella. Locally, Mission Healthcare also operates Belle Fourche Healthcare and SunPointe Assisted Living in Belle Fourche, David M. Dorsett Healthcare in Spearfish, and Fountain Springs Healthcare in Rapid City.

“Mission Healthcare provides progressive healthcare and specialized services in the communities we serve. Our warm, welcoming environments and compassionate, skilled caregivers encourage residents to feel comfortable, safe and empowered to live life. Families enjoy peace of mind, comforted to know their loved ones are cared for with the utmost respect and dignity,” said Tom Boerboom, Chief Operating Officer of Mission Healthcare.

“Mission Healthcare is excited about the opportunity to serve the residents of Sturgis. We believe in making a difference every day,” added President Paul Contris.

In addition to the assisted living facility, Contris and Boerboom intend to build approximately 18 duplex units or comparable retirement apartment units over the next few years. These units will serve the senior residents who desire retirement living, but do not need extensive services.

Aspen Grove will allow local residents requiring daily assistance to remain here rather than moving out of town as many of them do now. Sturgis Mayor Mark Carstensen states, “The City is extremely pleased to partner in this housing project, as it fulfills one of the goals of senior housing outlined in the Sturgis Comprehensive Plan.” SEDC President Pat Kurtenbach adds, “This is an excellent example of public and private groups working together to promote both quality of life and economic health. It should positively impact our residents and area for years to come.”

The City of Sturgis, Greater Sturgis Lifecare Foundation, and the Sturgis Economic Development Corp (SEDC) donated all of the land for the project, valued at $270,000. Meade County commissioners established the Meade County Economic Development Fund to contribute $100,000 in revolving loan financing for the project. Additionally, the project qualifies for Meade County’s 5-year zero percent property tax discretionary program. The project was also funded through the Governor’s Office of Economic Development SD WORKS program, Wells Fargo Bank, BH Community Economic Development/SBA 504, West River Foundation for Economic and Community Development, Sturgis Economic Development Corp., and a personal contribution from Dr. George Jenter, Sturgis physician.

“This is an excellent use of our SD Works Program,” said Pat Costello, Commissioner, Governor’s Office of Economic Development. “The funding on this project would not have been possible without the partnership between the state, the local bank, and the local agencies. It’s this type of collaboration that makes economic development happen in South Dakota.”

California Company Relocates to Industrial Park

September 25, 2012

STURGIS, SD (9/24/12) – Samson Exhaust, a California-based custom motorcycle parts manufacturer, started construction on a 45,000 square foot building in the Sturgis Industrial Park. The relocation project is expected to be completed by April 2013 and will create 30 new jobs to start. Samson Exhaust founder and CEO Kenny Price purchased the 3-acre site in 2007. Plans for relocating the entire operation have been in development since then. Kurtz Construction from Rapid City is the general contractor.

“Over eight years ago I had my first conversations with Sturgis area leaders about moving our manufacturing business to the Black Hills,” stated Kenny Price. “It has been a long road with many people helping us obtain our goal. This move is a giant step for Samson to continue to be a world-class provider of quality products to the motorcycle community, and where better should we be but in Sturgis – the world renowned “City of Riders”.

“We are very excited about Kenny’s decision to relocate Samson Exhaust from California to Sturgis,” stated Pat Kurtenbach, SEDC President. “The motorcycle industry and custom metals manufacturing make this a natural fit, and the timing is right with South Dakota’s favorable business climate.”

A public ceremony is planned for October 17, 9:30 am at the construction site located at 1151 Industry Road, Sturgis Industrial Park.

Samson Exhaust is a 21-year old company based in Brea, CA, and is the leading manufacturer of exhaust systems, mufflers and accessories for Harley-Davidson and Metric motorcycles. More information can be found on their website at www.samsonusa.com.