H&LA Development Update: Sioux Falls, South Dakota

H&LA’s recent research for a project near Sioux Falls, South Dakota revealed some exciting new hospitality-related developments happening in the area. These developments will have an impact on tourism, employment, and the general economy in Sioux Falls and the surrounding areas in 2023 and beyond.

  • In November 2022, the Sioux Falls Airport Authority approved a major expansion plan that will add up to eight new gates at the airport. This plan will replace some of the existing gates, bringing the total to 15 gates, and create more space for concessions and lounge seating. The Authority is currently working to secure funding for this project, and construction could begin as early as 2025. The airport is also moving forward with plans for a new parking ramp and skyway connection, which are scheduled for completion in 2024. These projects will help the facility handle the rising passenger volumes anticipated in coming years.
  • The Sanford Sports Complex in Sioux Falls recently began work on a major expansion of its existing facilities that will create five new turf baseball fields, five new turf softball fields, and eight multipurpose fields that will be used for soccer and lacrosse. In addition to these outdoor sports fields, the expansion will include new residential development, a new Sanford virtual health care center, open space, administrative buildings, and 10 acres of hospitality uses.
  • In January 2022, state and local officials announced plans for a new Dakota State University cybersecurity applied research lab in Sioux Falls. Supported by a mix of public and private funding, this high-tech facility is expected to open by the end of 2025 and employ approximately 1,500 workers. This $50 million facility will be located at the Sanford Sports Complex, near the planned Sanford Health Virtual Care Center.
  • In June 2022, Sanford Health broke ground on a new 205,000-square-foot orthopedic hospital on its main Sioux Falls campus. This nine-story building, the tallest on the main campus, will be west of the Sanford Surgical Tower and south of Sanford Children’s Hospital. With a total anticipated project cost of about $161 million, the new Sanford Orthopedic Hospital is scheduled to open in fall 2025.
  • Construction is now underway on a 40,000-square-foot expansion at the Empire Mall in Sioux Falls that will reconfigure the section of the mall formerly occupied by Younker’s. Once completed, this space will become a new 140,000-square-foot Dillard’s department store. This project highlights the Empire Mall’s strength as a retail destination despite the ongoing challenges faced by traditional shopping malls.
  • A new 3,000-seat ice arena is now under construction on the campus of Augustana University in Sioux Falls. Representing a total investment of around $40 million, the facility will be named Midco Area following a sponsorship agreement with the regional internet service provider. Scheduled to open in January 2024, Midco Arena will serve as the home facility for the university’s ice hockey team.
  • A large-scale Amazon fulfillment center recently opened in the northern section of Sioux Falls, near the crossroads of Interstate 29 and Interstate 90. This five-story, 640,000-square-foot facility will be fully operational by mid-2023. The new Amazon fulfillment center is now one of the largest structures in Sioux Falls and will eventually employ as many as 1,500 people.
  • Nebraska-based Wholestone Farms has announced plans to build a new pork processing facility in Sioux Falls on 170 acres near Benson Road and Interstate 229. Representing an investment of more than $500 million, this facility is expected to open in 2025 and employ more than 1,100 workers.
  • Wild Water West Waterpark in Sioux Falls opened a new RV park and campground in 2022, adjacent to its existing facilities. Dubbed the Flamingo Falls Campground, this area offers about 90 hookup sites for RVs and 70 tent camping sites, along with a bathhouse, community center, and gift shop.
  • A large-scale project is now underway that will transform the former Sioux Steel site in downtown Sioux Falls into a multi-building, mixed-use development featuring a destination hotel, office space, retail, and residences. Originally announced in 2019 but delayed due to the pandemic, this $200 million project will be completed in phases over the next few years.