• 2024 Annual Report •
GOVERNOR’S OFFICE OF ECONOMIC DEVELOPMENT
S O U T H D A K O T A
South Dakota
Custer State Park
2
4 Executive Summary
6 Economic Development Activity
16 Prospect & Community Development
24 Marketing South Dakota
32 Financing & Incentives
42 Meet Our Team
Table of contents
3
Dear Friends
Black Hills
South Dakota has always turned ideas into reality. We thrive on innovation,
hard work, and collaboration. And that was certainly true in 2024.
Our state embodies a strong work ethic and a deep commitment to freedom. We
have made South Dakota the freest state in a nation built on the principle of freedom.
Freedom will continue to be our calling card so long as I am governor.
Our people believe in the power of hard work. Our 1.9 percent unemployment rate is lowest
in America. Our incomes continue to rise. Our freedom has attracted new residents. And this
last year, we were awarded the number-one state for economic development in the nation.
To address our growing workforce needs, Governor Noem launched the Freedom
Works Here initiative. This campaign has filled high-demand jobs by attracting talent
to our state and showcasing the many opportunities available. I will continue to find
ways to tell South Dakota’s story and attract quality talent to our state.
Plains of the Black Hills
4
I invite you to explore the following report. It showcases all the work
my Governor’s Office of Economic Development has been a
part of in the last year. I am so proud of their work to create
new opportunities for our kids and our grandkids.
It is my great honor to serve as your Governor. I cannot
wait for everything that we will accomplish together.
Together, we will keep our state strong, safe, and free.
Sincerely,
Larry Rhoden
Governor of South Dakota
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economic development
ACTIVITY
6
7
Economic
INDICATORS
South Dakota’s economic growth
continues to outpace that of the nation.
REAL PER CAPITA
PERSONAL INCOME
The latest per capita personal income
data, after adjusting for regional cost of
living, places South Dakota at $68,315,
which is fourth highest of all states and 18
percent higher than the national average.
$68,315 United States
$ 57,937
REAL PER CAPITA PERSONAL
INCOME COMPARISON WITH U.S.
COST OF LIVING
The Bureau of Economic Analysis publishes regional
price parities, which show the cost of living in different
states compared to the national average. For South
Dakota, the latest figure is 88.1 percent, meaning
we are 12 percent more affordable than the national
average. This makes us the third most affordable state.
(REGIONAL PRICE PARITIES)
LOWER COST OF
LIVING THAN THE
NATIONAL AVERAGE
12%
LOWEST COST
OF LIVING
3rd
8
POPULATION
In 2024, South Dakota’s population was
924,669. This is 6,364 people higher than last
year (0.7 percent) and 37,542 people higher
than five years ago (4.2 percent). Over the
same five-year period, the United States’
growth rate was lower, at 3.6 percent.
POPULATION GROWTH RATE %
2019-2024
+4.2%
United States
+3.6%
LABOR FORCE
South Dakota’s labor force in 2024
was 483,986, up over 3,700 people
from the year before (0.8 percent).
Over the past five years, South
Dakota’s labor force growth rate has
outpaced the nation’s considerably.
LABOR FORCE GROWTH RATE %
+2.8%
9
HOUSING UNITS PERMITTED
In 2024, South Dakota permitted 6,089 new housing units
across 3,615 buildings with a collective valuation of $1.4 billion.
Per 100,000 residents, South Dakota permitted 659 units,
compared to the national average rate of 431 units. In other words,
South Dakota permitted housing units at a 53 percent higher
rate per capita. South Dakota’s rate is 9th highest of all states.
NEW HOUSING UNITS PERMITTED
PER 100,000 RESIDENTS
1,200
1,000
800
600
400
200
0
2019 2020 2021 2022 2023 2024
SouthDakota United States
10
GDP
South Dakota’s GDP for 2024 was $75.1 billion. It
grew by $1.0 billion, or 1.4 percent, year over year.
Over the past five years, South Dakota’s GDP is
up $19.9 billion, or 36.1 percent. Over the same
period, the United States’ GDP is up 35.5 percent.
SOUTH DAKOTA GDP GROWTH
+36.1% +$19.9 billion
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Economic Development
GOED continues
to play an active
role in assisting
companies that are
choosing to expand
in South Dakota.
COMMUNITY VISITS
The Partner Relations
team regularly conducts
outreach to economic
development organizations
and city officials.
PROJECT WINS
49
PROPOSALS
41
PROJECTS
517 94 LEADS
BR & E
135
PARTNER VISITS
211
12
CAPITAL INVESTMENT
$916,000,000
JOBS RETAINED
NEW JOBS
40
1,085 TOTAL JOBS
CREATED
1,125
13
Bibigo’s Big Move
CJ SCHWAN’S EXPANDS IN SIOUX FALLS
The Governor's Office of Economic Development
(GOED) is proud to announce the official
groundbreaking of CJ Schwan's 142-acre Asian
food production facility in Sioux Falls. This
monumental project marks a significant milestone
in South Dakota's economic development.
This project represents a strategic growth
opportunity for CJ Foods, the South Korean parent
company, and solidifies South Dakota's position as a
prime location for large-scale food manufacturing.
Facility Features
The state-of-the-art facility will include:
» Two advanced production lines
with room for expansion
» Wastewater treatment plant
» Warehouse and distribution center
» Office space
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Project Highlights
» Facility Size: 700,000 square feet, one of the world's
largest Asian food factories
» Location: Foundation Park, Sioux Falls
» Production Focus: Egg rolls and steamed dumplings
for the Bibigo brand
» Completion Date: Expected 2027
» Job Creation: Approximately 650-700 new full-time positions
» Total Investment: $750 million in capital expenditure
15
Good Earth State Park
prospect & community
DEVELOPMENT
16
17
The Governor's Office of
(GOED) is proud to announce
the successful completion
of the Infrastructure First
project, a three-phase
plan aimed at enhancing
economic growth across
the state. This project,
supported by a $1 million
grant from the Economic
Development Administration
(EDA), focused on
conducting a comprehensive
statewide infrastructure
study to identify gaps
and opportunities in
infrastructure development.
Utilizing data from the statewide infrastructure
study, ISG was able to successfully identify
19 high-impact sites that are most ready for
development by combining insights from the
infrastructure study with information about focused
industries. This strategic overlay has enabled
communities to better understand their potential
for attracting new businesses and investments.
ISG, our project partner, provided high-level
development plans along with build-out and
acquisition cost estimates, equipping communities
with valuable information as they move forward.
In addition, a matching grant was used to assist
16 small communities with populations under
5,000 in creating tailored Capital Improvement
Plans (CIPs). Each community contributed
$15,000, which GOED matched with an additional
$15,000. These CIPs help prioritize infrastructure
needs and outline strategic budgets aligned
with each community's economic development
goals. By providing smaller communities with
essential planning tools, the project aims to lay
a strong foundation for sustainable growth.
As we conclude the Infrastructure First project,
GOED is excited about the positive impact it
will have on our state's economic landscape.
This initiative exemplifies our commitment to
fostering collaboration and providing resources
that empower communities to thrive. This project
represents a significant step in GOED’s ongoing
strategy to support and elevate economic
development throughout South Dakota.
Infrastructure First
MAPPING SOUTH DAKOTA’S ECONOMIC FUTURE
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Infrastructure First Project Executive Summary | 5
KEY STRATEGY ELEMENTS
PURPOSE STATEMENT
The Infrastructure First Project creates a statewide economic development plan focused on identifying infrastructure
constraints and prospective improvements to facilitate strategic growth. With input from key project stakeholders,
four themes were identified that guided the process, with the primary goal of advancing economic development while
building resource independence, cultivating more resilient communities, and improving quality of life through creating
dynamic environments.
MEASURING SUCCESS
The effectiveness of the goals and strategies identified within the Statewide Economic Development Infrastructure
Plan can be evaluated in relation to the four themes through monitoring and periodic reviews. While the plan should
be voluntarily implemented based on actual conditions in each region and community, it can serve as a guide for
continual statewide improvement.
Plan Themes
Advance Economic Development
Generate quality jobs and attract businesses
and investment
Build Resource Independence + Alternatives
Facilitate infrastructure outcomes that are
sustainable and diversified
Improve Quality of Place
Create a dynamic environment that will, in
part, retain and attract the next generation
Cultivate Resilient Communities
Position communities to secure and optimize
economic development investments
Infrastructure Types
Natural Gas Rail Drinking Water Broadband
Electric Roads Water Rights Water
Resources
View the Executive
Summary here
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From P lanning to Implementation
GOED’S CHILD CARE SOLUTION INITIATIVE
In 2024, GOED and the South Dakota Department
of Social Services worked jointly to provide a
two-phase funding opportunity for communities
to help with solutions to South Dakota child care
challenges. The emphasis of this grant program
was to provide funds for innovative community
based child care solutions. Many of the projects
aimed to expand sustainable, reliable, quality
child care services and provide career pathways
to improve the workforce. Through an application
process, GOED awarded a total of $1.1 million
to 28 communities for the planning portion
and another $3.8 million to 13 communities for
the implementation portion of the program.
“
Grants like the CommunityBased Child Care Grant
indirectly boost the local
economy. Parents who have
dependable childcare can
remain in or re-enter the
workforce contributing to local
businesses and overall economic
growth. GOED’s grant helped
ensure that small towns can
offer the same critical services
that larger communities
enjoy. This levels the playing
field and fosters sustainable
development which strengthens
our community’s future.”
- Platte Development Corporation
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Innovation Meets Security
SOUTH DAKOTA’S GROWING CYBER INDUSTRY
I n 2024, South Dakota’s cybersecurity
sector continued its impressive growth
trajectory, solidifying the state’s position as a
national leader in this critical field. The industry’s
expansion not only enhanced digital security
but also boosted the state’s economy.
The cybersecurity industry in South Dakota
contributed $740 million to the state’s GDP in
2024. This substantial economic impact was
driven by a robust job market, with 9,200 existing
cybersecurity positions and 1,200 job openings
across the state. The sector offered competitive
salaries, with cybersecurity professionals earning
an average annual salary of $88,000, while
information security analysts commanded even
higher wages, averaging $102,000 per year.
South Dakota maintained its position as one of the
fastest-growing states in the cybersecurity sector,
ranking second nationwide for industry growth
over the past decade. This rapid expansion has
attracted both established companies and startups,
further diversifying the state’s tech ecosystem.
A key component in cybersecurity growth is the
expansion of Dakota State University’s (DSU)
Applied Research Lab to Sioux Falls. This stateof-the-art, 100,000-square-foot facility will
serve as a hub for cybersecurity innovation and
talent development. The lab will feature advanced
research spaces and support collaborative projects
with government and industry partners.
Integral to the lab’s mission is the Dakota State
Applied Research Corporation (DARC), a primary
tenant focused on cybersecurity, data science,
and software engineering. DARC is a non-profit
that fosters collaboration between academia and
industry partners, drives innovative solutions,
and addresses national security challenges. The
investment of several public and private partners
in this DSU facility marks a significant advancement
for South Dakota, reinforcing its position as a
leader in the national cybersecurity arena and
making a lasting impact on the local economy.
The state’s cybersecurity efforts were displayed
through participation in major industry events,
including ISC West in Las Vegas, the SCSP AI Expo
in Washington, D.C., and GSX in Orlando. These
conferences served as powerful platforms to
showcase South Dakota’s cybersecurity capabilities
and attract potential business investments. Jesse
Fonkert, Deputy Commissioner at GOED, reflected
on the AI Expo, saying, “GOED was grateful
to partner with the Sioux Falls Development
Foundation, DSU, and DARC in working together
to tell South Dakota’s story at this trade show. The
event was an incredible opportunity to showcase
South Dakota’s investments in cybersecurity
development and demonstrate why businesses
could benefit from aligning with our efforts.”
As South Dakota’s cybersecurity sector
continues to flourish, it has created numerous
opportunities for businesses and individuals
alike. The state’s commitment to this industry
has enhanced its economic prospects and
contributed to national digital security efforts,
positioning South Dakota at the forefront of
technological innovation and economic growth.
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Small Towns, Big Impact
GOED CELEBRATES COMMUNITY SUCCESS
GOED recognized outstanding economic development
contributions at the 2024 Governor’s Conference on
Economic Development. Three major award winners were
announced: Centerville as Community of the Year, along
with Dean Dziedzic and Brooke Rollag as the recipients
of the Excellence in Economic Development Award.
Centerville's Achievements:
The Community of the Year award
celebrates significant progress
in economic development, job
creation, and quality of life.
Centerville has focused on housing,
developing a 14-acre subdivision with 28
lots, and expanding its business district
with plans for a light industrial park.
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Top: Dean Dziedzic, Excellence in Economic Development
Bottom: Brooke Rollag, Excellence in Economic Development
Excellence in Economic
Development Awardees:
Dean Dziedzic, Vice President of
Economic Development for the Sioux
Falls Development Foundation, was
recognized for his efforts in fostering
relationships with businesses to
promote growth in Sioux Falls.
Brooke Rollag, Executive Director of
Lake Area Improvement Corporation in
Madison, was honored for her work in
workforce development and child care,
emphasizing community engagement.
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Missouri River
marketing
SOUTH DAKOTA
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Showcasing South Dakota
A YEAR IN MARKETING
In 2024, GOED had exciting opportunities to showcase
South Dakota as the best place to live, work, and raise a
family. Our targeted campaigns have successfully kept
South Dakota at the forefront of consideration for both
businesses and potential residents, ensuring that when
relocation decisions are made, our state is top of mind.
GOED participated in multiple trade
shows as opportunities to meet with
more businesses in our targeted industries.
Team members attended ISC West, gaining 28
leads; World Ag Expo, gaining 14 leads; and
SHOT Show, which gathered 29 out-of-state
business meetings and 13.4 million impressions
from banner ads, geofencing, and videos.
As a move to attract workforce, GOED used
innovative ad placements and utilized some
national events to showcase South Dakota
as a prime location for business. At events
like the Cinch World Rodeo and The Sturgis
Motorcycle Rally, we accessed large audiences
with our Freedom Works Here campaign.
The marketing team also supported the finance
department in a marketing campaign for the SD
Works loan program. This campaign is designed
to educate small businesses and banks on how to
use the SD Works program to its full advantage.
This is to help meet SSBCI requirements and
to demonstrate a clear marketing strategy.
MARKETING
STATS
11.71%
INCREASE IN
FOLLOWERS
on social media
161,511
PAGE
VIEWS
on sdgoed.com
VIDEOS
PUBLISHED
26
The project includes videos from our GOED
Finance Director, a banker who has utilized the
program with his clients, and a small business
that was able to use SD Works funding to
launch. The videos will be featured in 2025.
In October, the marketing team dedicated a lot of
time and resources to highlight the manufacturing
and cybersecurity industries in South Dakota during
Manufacturing Week and Cybersecurity Month. We
deployed a mix of video, photos, and infographics
to highlight the significant impact these industries
have on the state’s economy and to reinforce South
Dakota’s commitment to innovation and growth.
Another key focus was intentional marketing
towards site selectors. Trips to Dallas and
Atlanta garnered GOED 17 leads from out-ofstate businesses. We focused on showcasing
South Dakota’s benefits and incentives while
putting considerable effort into improving the
site selector experience on our website.
We are excited for the continued opportunities
we will have in 2025 to represent South
Dakota and the benefits we provide from a
quality of life and business perspective.
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Beyond the Office
GOED’S HANDS-ON APPROACH TO ECONOMIC GROWTH HIGHLIGHTS
Familiarization (FAM) Tours are an essential
part of the GOED strategy to deepen our
understanding of South Dakota’s communities.
These organized trips allow our team to engage
directly with communities and key stakeholders,
providing insights that strengthen our ability to
support economic development across the state.
The primary objectives of FAM tours include
immersing our team in local environments,
meeting with economic development organizations
to learn about current projects, and touring
businesses to understand their operations
and contributions. These experiences offer
valuable perspectives on the unique challenges
and opportunities each community faces.
Networking is also a key component of these
tours. By connecting with local leaders and
business owners, we build relationships that
can lead to future collaborations and identify
areas for state-level support. Recent tours
in Aberdeen, Mitchell, and Rapid City have
highlighted the economic diversity of South
Dakota, showcasing everything from meat
lockers to downtown development projects.
FAM tours serve as an essential tool for building
stronger economic development relationships that
reflect the needs and potential of our communities.
We look forward to continuing the FAM tours and
visiting more communities in the coming years.
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South Dakota’s
BROADBAND JOURNEY
I n 2019, Governor Kristi Noem announced
her vision to bring high-speed internet
to every home in South Dakota, and the
state continues to work towards that goal.
Since Governor Noem’s announcement, a
combination of state, federal, and private
funds have totaled over $301 million, which
will bring high-speed internet to over 31,000
locations including households, businesses,
farms, and critical access facilities.
Connecting South Dakotans continued
throughout 2024 with work persisting on
another 27 projects. Over 4,000 households
will benefit from these projects.
Work also continues on South Dakota’s
involvement with the federally funded
Broadband Equity, Access and Deployment
(BEAD) program. The program provides $42.25
billion from the Bipartisan Infrastructure Law
to expand high-speed internet by funding
planning, infrastructure deployment, and
adoption programs across the country.
GOED received $207 million to help connect
unserved and underserved locations across the
state and is currently moving through the steps
required by the National Telecommunications
and Information Administration (NTIA).
$301,000,000+
State, Federal & Private Funds
since 2019
31,000+ Locations
27 Projects
in 2024
4,000 Households
will benefit from 2024 projects
29
Connecting Cultures, Boosting Business
SOUTH DAKOTA’S TRADE MISSIONS
In 2024, South Dakota embarked on two significant
trade missions to strengthen its position as a global
exporter and build international connections.
The first mission, headed by Lt. Governor Larry Rhoden, visited Japan
and Taiwan from June 23-29, while the second, led by Commissioner
Fiala, traveled to Israel from November 18-20. These missions, organized
in collaboration with South Dakota Trade, aimed to showcase the
state’s diverse industries and products to key international markets.
The delegations represented a wide array of South Dakota's promising
sectors, including biotechnology, agriculture, and manufacturing. During
both trips, participants engaged in numerous business-to-business
meetings, attended trade shows, and met with high-level government
officials. In Israel, the focus was on exploring partnerships within the
country's technology and entrepreneurship sectors, while the East Asia
mission targeted increasing biotech and food exports to Japan and Taiwan.
These trade missions underscore South Dakota's commitment to
expanding its global footprint and diversifying its economy.
These missions promote South Dakota's products and business
climate internationally. They aim to create new opportunities for
state companies and strengthen ties with key global allies.
Luke Lindberg, President and CEO of South Dakota Trade, emphasized
the importance of these efforts, stating, \"It is our job to put willing buyers
and willing sellers in the same room — that's where the deals get done.\"
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EXPORTED FROM
SOUTH DAKOTA IN 2024
$1,900,000,000
MANUFACTURED
GOODS EXPORTED
$5,000,000,000
AGRICULTURE
PRODUCTS EXPORTED
Major agriculture products exported Major manufactured goods exported
33.5%
FOOD
MANUFACTURING
28.5%
SOYBEANS
13.1%
CHEMICAL
14.4%
CORN
12.2%
MACHINERY
10.4%
FEEDS & OTHER
FEED GRAINS
$6.9 BILLION
31
financing &
INCENTIVES
32
TOTAL PROJECT COSTS
= $72,613,472
LOANS APPROVED
446.5
TOTAL PROJECTED
& RETAINED FTEs
$15,919,583
DOLLARS APPROVED
APPROVED
Masaba
Masaba, Inc., operating under JH Investment, LLC, is
constructing a new fabrication facility in Vermillion
with the support of a $6,750,000 REDI loan from
the Governor’s Office of Economic Development
(GOED). This project demonstrates how GOED’s
financing programs can work in conjunction with
each other, as Masaba was also approved for
a Reinvestment Payment Program grant.
Financial Program Success
[REVOLVING ECONOMIC DEVELOPMENT & INITIATIVE]
Redi Fund
BUSINESS EDC CITY/
COUNTY/
TRIBAL
GOV’T
FARMER/
RANCHER
LOAN GRANT
33
Smack Pet Foods
Smack Holdings USA, LLC, operating as Smack Pet
Food, a Canadian manufacturer of premium raw
dehydrated pet food, is renovating the former Banner
Engineering building in Aberdeen using a $1.5 million
SD Works loan in conjunction with a $1 million REDI
loan. This will be the company’s first U.S. location and
is expected to create approximately 158 full-time jobs
and have a significant economic impact on the state.
Financial Program Successes
WORKS
= $64,007,345
336.5
$14,729,967
34
FUTURE FUND
SOUTH DAKOTA JOBS PROGRAM
ECONOMIC DEVELOPMENT PARTNERSHIP PROGRAM
GRANTS APPROVED
$28,590,000
1
GRANT APPROVED
$101,591
$1,000
35
North Sioux City
The City of North Sioux City will be reconstructing
North Shore Drive, a main access road to Dakota Valley
School and multiple businesses using a $300,000 LIIP
grant. Funds will be used to rebuild water mains, storm
sewers, sanitary sewers, and the roadway itself.
IMPROVEMENT PROGRAM
Local Infrastructure
= $2,453,729
$723,000
36
COMMUNITY DEVELOPMENT BLOCK GRANT
= $9,898,356
$2,880,000
DOLLARS AWARDED
BEGINNING FARMER BOND PROGRAM
BOND APPROVED
$325,000
37
PAYMENT PROGRAM
Reinvestment
= $795,100,451
PAYMENTS APPROVED
750
TOTAL PROJECTED FTES
VALUE ADDED SUB FUND (VASF)
AWARD APPROVED
$360,000
38
AWARDS APPROVED
$20,000
DAKOTA SEEDS
PROJECTS APPROVED
$220,000
PROOF OF CONCEPT
39
County Line Dairy, LLC
County Line Dairy, LLC, a 5,000-head dairy in northeast
Hamlin County is constructing multiple structures to
properly dispose of waste animal manure generated
by dairy operations using a Livestock Nutrient
Management Bond of up to $8,780,000. This project
is expected to add 30 new full-time positions.
MANAGEMENT BOND PROGRAM
Livestock Nutrient
BONDS APPROVED
$173,540,000
Thad Grimsrud
Thad Grimsrud utilized GOED’s Livestock Loan
Participation Program to purchase 120 head of
yearling steers for his family’s 300-acre operation
near Sisseton. The loan funds covered 50 percent of
the cattle purchase, enabling Grimsrud to expand
his livestock holdings with state financial support.
PARTICIPATION
Livestock Loan
$133,750
meet our team
Joe Fiala | Commissioner Jesse Fonkert | Deputy Commissioner
Fiscal & Administrative Services
Missy Lock | Director
Karen Hirsch | Fiscal Assistant
Alex Kahnke | Special Projects Coordinator
Jeryl Lynn Stein | Information Specialist
Broadband
Sarah Ebeling | BEAD Grant Specialist
Business Analytics
Ann Gesick Johnson | Director
Jenny Ondell | Senior Research Analyst
Colten Bengs | Research Analyst
Joe Joffer | MIS Coordinator
Sarah Zvolanek | Research Analyst
Business Development
Curtis Egan | Business Development Representative
Katherine Kirby | Business Development Representative
Jake Salmen | Business Development Representative
Alissa Sendelbach | Business Development Representative
Finance
Jack Valentine | Director
Nadine Agneau | Loan Officer
Stephanie Deyo | Grants Manager
Dale Knapp | Loan/Finance Specialist
Ashley Moore | Loan Specialist
Lexxy Phillips | Loan Officer
Nick Rabern | Loan Officer
Partner Relations
Adam Molseed | Director
Hannah Sage | Senior Partner Relations Representative
Casey Peterka | Partner Relations Representative
Bradi Stampe | Project Coordinator
Laure Swanson | Partner Relations Representative
Marketing
Lexie Warejcka | Director
Josh Bixler | Digital Media Coordinator
McCade Ivarsen | Marketing Strategist
Ashley McCloud | Graphic Designer
Bri Vande Pol | Communications Coordinator
42
boards
ECONOMIC DEVELOPMENT
FINANCE AUTHORITY
Chairman
Jeff Erickson
Vice-Chairman
Don Kettering
Secretary-Treasurer
Matt Judson
Members
Sharon Casey
Tom Jones
Michael V. Luken
Jim Schmidt
BOARD OF ECONOMIC
Treasurer
Reed Kessler
Joy Nelson
Eric Yunag
Kevin Tetzlaff
David Emery
Craig Christianson
Brad Moore
Non-Voting Members
Reynold Nesiba
Casey Crabtree
Neal Pinnow
Kameron Nelson
43
711 East Wells Avenue, Pierre, SD 57501
800-872-6190 • SDGOED.COM
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