SIOUX FALLS, S.D. (KELO) — Salem isn’t Sioux Falls or Mitchell or Madison, but it’s close enough for a commute, said Jeremy Gray, the president of the Salem Economic Development Corporation (SEDC).
“We’re getting closer to Sioux Falls every day with its expansion to the west,” Gray said.
The nearness to Sioux Falls, Mitchell and Madison helps make Salem an attractive place to live, Gray said. But location isn’t the only attractive feature, he said. “It’s a nice town. It has a great school system…,” Gray said. Parks, a swimming pool and other amenities also make it attractive.
Community members believe the city is a nice place to live but it’s hard to find a place to live in the town of about 1,300 people, said Mayor Glenda Blindert.
A new housing project called Colonial Estates will help change that.
Colonial Estates will include 18 new single-family homes and multi-family housing on the southeastern part of the city. The housing will replace the Colonial Manner Nursing Home which was severely damaged in the May 12, 2022, derecho.
The SEDC and city will extend infrastructure such as streets, sewer and water to the housing development.
Blindert said SEDC had been discussing buying some nursing homeland before the May derecho. After the owner of the nursing home decided to close it, the SEDC was able to buy the nursing home property.
The SEDC raised about $250,000 in community donations, Gray said. That included about $150,000 with some matching funds from First Dakota National Bank, where Gray works. Another $100,000 came from individual donations and businesses. That money was used to buy the property and demolish the nursing home.
The SEDC also received up to about $750,000 in a state housing grant for the project, Gray said.
“It’s a big deal for a small town like Salem,” Blindert said.
Although the town is close to Sioux Falls, it doesn’t draw big developers like those building housing developments in Sioux Falls, Blindert said.
The single-family house lots will be sold to buyers who will find their own contractors, she said.
It’s possible some contractors will be interested in the lots for multi-family housing, Blindert said.
The SEDC has four single-family lots for sale already.
The vision for the housing development is a mix of single-family homes with the multi-family housing as duplexes or four-plexes, Gray and Blindert said. Those could be housing with no basements.
Blindert said donors, such as her business, do not expect to make money from the sale of lots but view it as an investment in the town’s future.
New housing brings in more people and it can also free up existing housing for other buyers, Blindert said. If an older couple builds a new house or buys in a four-plex, a younger family may be able to buy the couple’s former house in Salem, she said.
The housing project isn’t the only potential for growth in Salem. The SEDC was revitalized several years ago when it was incorporated as a 5013C non-profit which made it eligible for more grants and other financing. The tax status also benefits donors.
The SEDC is also marketing available commercial lots in town, Gray said. “We have 16 acres of commercial property,” Gray said. “I met with someone last night about the property.”
To Gray, commercial and industrial development can feed off additional housing. But, the housing needs to come first because people need a place to live, he said.
Gray said while he understands that housing development can take time, he gets anxious to see development happen. “Then I look at where we were at 2 1/2 years ago. We had nothing,” Gray said.
