In response to recent objections about CJ Schwan’s legally hiring South Dakota’s former commissioner of economic development a year after he left his job with the State, I have only one response – “What are you even talking about?”
A few have insinuated that there was something unseemly about attracting a multi-billion dollar business tied to the beloved Schwan’s food business that South Dakotans have known for generations. And now, as the company has grown to become more global as CJ Schwan’s, it’s bringing a world-class factory to our state that will help it expand the bibigo food brand. The negative claims made couldn’t be more off-base. The entire process and everyone involved with it followed the letter of the law from beginning to end.
As a result of the work by our state’s economic development team, CJ Schwan’s is making the largest single private investment in South Dakota history by building its bibigo Korean dumpling plant here. To win a tight competition for that investment, the State of South Dakota and every other state in the running offered economic incentives. That’s how business gets done. All above board and accessible as public record.
The fact is – there’s no issue here. Every step of the process was legal and transparent. The rules were adhered to each step of the way. That’s nothing but good for Sioux Falls and our state, as our economy is about to experience a once-in-a-generation windfall.
I’m deeply disappointed about these allegations. Casting aspersions on a well-respected company like CJ Schwan’s that’s already demonstrated its commitment to our city and state, along with trying to sully the reputations of great community leaders is a reckless and damaging exercise – as are the negative comments being made by attention-seeking legislators.
Economic development in our state already faces enough challenges without these attempts to smear the process and splash cold water on good news. And there’s plenty of good news to be shared here.
For starters, CJ Schwan’s has already poured $75 million into our community working with local laborers, including:
- Lloyd Companies of Sioux Falls, for building construction.
- Sayre Associates, Inc., of Sioux Falls, for surveying work.
- GeoTek Engineering & Testing Services, Inc., of Sioux Falls, for geotechnical services, materials testing and inspections.
- HDR, of Sioux Falls, for a traffic study.
- Interstates, of Sioux Center, Iowa, and Sioux Falls, for electrical work.
- American Fence, of Sioux Falls, for temporary fencing.
- Dakota Drone, of Sioux Falls, for drone photography.
- K&M Concrete, Edgerton, MN, for foundation work.
- Gage Brothers, Sioux Falls, for precast concrete walls.
- Raeco Builders, Inc., of Sioux Falls, for a pre-engineered metal building.
CJ Schwan’s will spend a record $550 million to build the bibigo manufacturing facility and establish a new Regional Office in downtown Sioux Falls. This will bring Koren-style food, a rapidly growing $38 billion industry, to South Dakota. The project will create jobs for 650 people, including Build Dakota scholars from our tech schools. It will have a gross domestic product impact of over $67 million for South Dakota each year. And CJ Schwan’s has already proven themselves to be a great corporate citizen, with a major donation to Forward Sioux Falls, community sponsorship of the Sanford International PGA Tour Champions event, and a commitment to being a major supporter of community events and causes moving forward.
Ultimately, the CJ’s Schwan’s project means more opportunity for the people who live here. More likelihood that other large companies will consider making our state their home. And more jobs for our kids and grandkids to keep them and their families right here in South Dakota.
We say our state is open for business and want to attract quality companies that can create long-lasting careers to keep our citizens from leaving for other opportunities. And when we finally attract a project on the scale of CJ Schwan’s, it becomes a target for negativity. It’s shameful that some lawmakers are choosing to politicize a project that will benefit our state for generations to come.
That being said, I’m glad the majority of South Dakotans continue to welcome progress and root for our state’s success. To do otherwise is an insult to those of us who work hard to make South Dakota a better place.
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