As the former mayor of Rapid City, I have listened carefully to the debate surrounding government economic development incentives – not only here, but across the state, with the CJ Schwan’s Bibigo Asian food production facility now under construction in Sioux Falls.
I’ve heard the comments questioning whether government should play any role in economic development at all. Some folks, including some legislators have gone as far as suggesting government economic development efforts are essentially a scam to pick winners and losers.
I respect those concerns – to a point. Taxpayer dollars must always be protected. But I also believe it is important to separate philosophy from facts – and rhetoric from results.
The CJ Schwan’s project in question represents a $550 million private investment and the creation of 650 jobs. Those jobs will not exist in isolation. They will strengthen supply chains, increase demand for goods and services, and generate economic activity that reaches far beyond a single city’s borders – including our own.
Statewide economies do not operate as a collection of silos. When one region grows, the entire state benefits. Retailers, contractors, and professional services expand in response to broader economic momentum. Companies across the country look more favorably on expanding or relocating in South Dakota communities – but it’s not as easy as it sounds. There is competition with other states, which requires South Dakota to compete with incentives.
This is why I support responsible, transparent economic development programs – even when the project in question is located on the other side of the state.
The incentives used in this case were legal, performance-based, and subject to oversight. This is not reckless spending; it is strategic competition in a national marketplace where other states aggressively pursue the same opportunities.
It is easy to say, “let the free market decide,” but the truth is that no market is free of competition. States that work to undermine their own economic development programs do not remain neutral – they fall behind. Restricting or eliminating our economic development tools will limit growth, strain municipal budgets, and leave communities reacting instead of leading.
I understand why South Dakotans question whether incentives are worth it. Those questions deserve honest answers. Economic development should be accountable, data-driven, and focused on long-term returns, not short-term headlines.
The CJ Schwan’s project in Sioux Falls certainly meets those standards.
Supporting economic development elsewhere in the state does not mean abandoning fiscal discipline at home. It means recognizing that prosperity is interconnected. A stronger state economy means higher revenues, better infrastructure, and more stability for every city, small and large alike.
We should be able to debate how economic development programs are structured without undermining projects that were done legally and in good faith. Casting doubt on ethical processes after the fact is divisive and sends the wrong message to employers considering our state as a whole.
Economic success is not a zero-sum game. When one community wins, we all have the opportunity to win with it.
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