Corsica breaks ground on second business park in hopes of attracting new businesses, workers – Mitchell Republic

CORSICA, S.D. — Twenty-five years after Corsica united to build its first business park, the town is poised for another leap in economic development. With only one lot remaining in the original park, Corsica is breaking ground on a new 24-acre, 11-lot business park.

The project began earlier this month with hopes of attracting new businesses and jobs to the community. The business park, located at the southwest corner of Corsica 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 about 12 local volunteers, including residents, business owners, and community stakeholders. These unpaid board members are united by their passion for Corsica’s growth and development. The corporation’s board meetings address a wide range of topics, from town maintenance investments to strategies for fostering both residential and commercial development in Corsica.

In April, the corporation, commission, and council held a public meeting to discuss establishing 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 dirt work, infrastructure, street costs, landscaping, and professional services such as engineering and legal fees.

The idea behind a TIF is to stimulate development by providing upfront financing for public improvements within the project’s borders, such as roads, sidewalks, and utility lines. As property values rise due to new businesses, the increased tax revenue can be reinvested to pay back the initial funding used for development.

Jamie Rexwinkel, Vice President of the Corsica Development Corporation, expressed excitement about the project, noting that this is the town’s second business park.

“It’s taken two or three years to get this project started,” Rexwinkel said. “Now that we’re finally at the groundbreaking and all the paperwork is done, it’s really exciting.”

The city of Corsica has one active TIF, created in 2022 to support a local housing project. In South Dakota, TIFs typically have a lifespan of 20 years, which provides a long-term framework for economic growth.

The spending window, however, is much shorter. An important aspect of the TIF is its five-year spending capability. This means that once the five-year period is up, the city can no longer use any TIF funds, and whatever receipts are against the TIF at that point will be closed out.

“This time constraint adds urgency to the development process,” Rexwinkel said. “It’s important we start attracting businesses to the park quickly.”

Submitted photo

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 collaboration with Douglas Electric Cooperative. This marks the second REED Fund loan awarded to the Corsica Development Corporation. In 2019, the corporation secured a loan to enhance the infrastructure of a 19-lot residential park.

To further reduce costs, the city purchased torn-up concrete from the landfill at a reduced price.

“We are trying to reduce costs and bring in cost savings into the project to do it as inexpensively as possible,” said Dave Lambert, Director of Regional Development for Dakota Heartland Development Association.

The development corporation recently acquired the land after some delays due to the unexpected passing of one of the landowners, but with those issues resolved, the development team is ready to engage with potential businesses.

Work on the business park commenced earlier this month, with the initial phase focusing on dirt pushing and road preparation. VanderPol Dragline from Mitchell is the contractor for the project. Infrastructure development, including water, sewer, and electrical installations, will continue until winter sets in. Rexwinkel anticipates road paving to begin in spring or summer 2025.

While initially planned for 16 lots, the design remains flexible. This adaptability allows potential tenants to customize their spaces before construction, accommodating various size requirements and specific needs, ensuring each business can occupy a tailored facility within the park.

Despite ongoing construction, lots within the business park are available for purchase immediately. While some members of the development corporation are nervous about the scale of the investment, Rexwinkel’s confidence is reassuring.

“It gives us purpose,” Rexwinkel said. “Now we have to go out and work. Every meeting is important. We have to keep moving to fill the park up.”

The urgency to populate the business park quickly is important.

“We want to start getting some taxable properties out there. The sooner we can, the sooner we can start getting that loan paid back.”

In addition to the business park, the town is also working on a housing development. Currently, 15 lots are ready in that development, with the potential for five additional lots to be constructed in the future.

“We have seen some rapid growth, there’s a pressing demand,” Rexwinkel said. “Great stuff is happening in Corsica.”

Jennifer Leither joined the Mitchell Republic in April 2024. She was raised in Sioux Falls, S.D. where she attended Lincoln High School. She continued her education at South Dakota State University, graduating in December 2000 with a bachelor’s degree in Journalism. During her time in college, Leither worked as a reporter for the campus newpaper, The Collegian. She also interned for Anderson Publications in Canistota, SD the summer of 2000. Upon graduation, Leither continued to reside in the Sioux Falls area and worked as a freelance writer for the Argus Leader for a number of years.
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