This is a developing story.
PIERRE, S.D. (KELO) — A major food supplier will receive $25 million of financial assistance from South Dakota state government for building a new regional center at Foundation Park in Sioux Falls.
The South Dakota Board of Economic Development on Wednesday approved low-interest loans of $10 million and $15 million for SFC Global Supply Chain Inc.
The $25 million package appears to be the largest set of loans that the board has made in the history of the REDI program. The Legislature established the board and the Revolving Economic Development and Initiative Fund in 1987 at the urging of Governor George S. Mickelson.
The Schwan’s Company subsidiary last month received approval from the same board for a state reinvestment payment that could save as much as $32.5 million on state sales tax for the $775 million project, based on the current 4.2% rate.
CJ Foods of South Korea purchased Schwan’s Company in 2019. The state board’s chair, Jeff Erickson of Sioux Falls, serves on the Schwan’s Company board of directors. Erickson recused himself from discussion and voting on the reinvestment payment last month. He didn’t participate in the teleconference on Wednesday.
The board on Wednesday also awarded a $300,000 local infrastructure grant to North Sioux City and approved three South Dakota Works loans of $1,242,400 to Hebron Brick Supply Co.; $400,000 to CCLLA LLC; and $600,000 to Morris, Inc.
KELOLAND has requested more information from the Governor’s Office of Economic Development regarding the four sets of loans.
