Master Planned Community Remains Resilient After Technology Bubble Burst
When the technology bubble burst on the West Coast, the ripple effects were felt all the way to South Dakota. Although thousands of employees have been outsourced from Gateway's original location in South Dakota, its master planned community nearby (Dakota Dunes) has grown tremendously and is one of the Midwest's fastest growing spots.
Dakota Dunes, S. D. (PRWEB) February 21, 2005
When the late Russell Christiansen told others of his vision for building a master-planned community with beautiful homes, a retail center, business parks and an Arnold Palmer-designed golf course on wooded sand dunes north of Sioux City, Iowa, most thought his idea would never work.
Fifteen years; 2,300 residents; 1,600 employees; 76 businesses; and 600 homes later, most would agree Mr. ChristiansenÂ’s vision was keen. In fact, the former CEO of MidAmerican Energy Company had a plan that has not only boosted the economy for the area, but Dakota Dunes, S. D., has also become one of the fastest growing communities in the Midwest, despite tumultuous times for a few local employers. Dakota Dunes remains a very unique spot in South Dakota where families find several opportunities for recreation and employees are within minutes of their workplace.
The Numbers Speak for Themselves
Census data from the Associated Press shows that since 1990, Union County, S. D. (23.51%), has experienced a larger growth in population, in large part from the Dakota Dunes community, than Chicago (4.03%); Kansas City, Mo. (1.47%); Des Moines (2.84%); Sioux Falls (22.97%); Omaha (16.14%); Lincoln, Neb. (17.51%); Minneapolis (3.86%); and Sioux City, Iowa (5.6%).
Much of this growth evolved when Gateway Inc., located one mile north of Dakota Dunes, was booming. Founder Ted Waitt and his staff began revolutionizing the technology industry with the introduction of their cow-spotted boxes in 1991. In 1993, shortly after the brand was introduced, the company went public.
It was during this boom time that over 5,000 employees worked at the computer makerÂ’s headquarters in North Sioux City. Many of these employees resided with their families in Dakota Dunes.
Then in 1998, Gateway announced that it would move its corporate headquarters to the San Diego area. With this relocation and the purchase of eMachines last year, the company has since moved or outsourced nearly 4,000 jobs from its original North Sioux City headquarters.
A State of Success
The magnitude of this kind of job loss would normally stagnate a master-planned community and idle its growth, but not in the case of Dakota Dunes. Despite the Gateway job loss, Dakota Dunes has continued to grow because of the quality of life and the growth of other businesses.
Since 2000, the master-planned community has seen a net growth of 600 residents, up 35%. In addition to 600 single-family homes, over 300 apartments have been built to accommodate business professionals and empty nesters. Townhomes offered at different price points round out the housing offerings for residents.
Dennis Melstad, president of Dakota Dunes Development Company, said he saw a near-record year in residential sales activity in 2004, spurred by a jump in the number of employees working at companies in southeastern South Dakota.
“With an attractive economic package of low taxes and an exceptional business climate in South Dakota, paired with the amenities offered in Dakota Dunes, businesses are making their move and employees are following,” Melstad stated.
Much of the commercial growth is attributed to the exceptional business climate in South Dakota. In fact, the Washington, D. C.-based Small Business & Entrepreneurship Council rated South Dakota as the friendliest state in the nation to conduct business for the third consecutive year. Since the Council began the rating system in 1995, only two states have held the number one spot—South Dakota and Nevada.
This is due in large part to the fact that South Dakota has no personal income tax; no corporate income tax; no personal property tax; no business inventory tax; no inheritance tax; and no local sales tax. In addition, the property tax levy in Dakota Dunes has decreased over 13% during the past three years.
Home to Great Talent
Even though Dakota Dunes is small in perspective to many other United States cities, the diversity and talent among its residents is enormous. There are surgeons and physicians from across the globe who have chosen to practice in Dakota Dunes because of the growth occurring in the health care field. More than $50 million in medical facilities alone have been built in Dakota Dunes in recent years and over 350 employees are now working in the medical community.
Dr. Ralph Reeder, a native of St. Louis, is one of many physicians who live and work in Dakota Dunes. As a neurosurgeon at the Center for Neurosciences Orthopedic & Spine, P. C. (CNOS), he has easily recruited other neurosurgeons to Dakota Dunes even though there is a shortage of that specialty across the country.
“I attribute this in part to the quality of life they find here, which is absolutely incredible,” said Reeder. “I haven’t found anything else like it, anywhere.”
Reeder isnÂ’t the only Dunes resident hailing from a larger metropolitan area bringing a diverse background to the area. There are residents that have made an impact on a national and global stage in a variety of fronts.
“Our sales people have met some great families during the home buying process,” said Tim Swanson, residential manger at Dakota Dunes Development Company and Dakota Dunes Realty. “In addition to being very helpful neighbors to one another, the residents in Dakota Dunes are our best salespeople.”
Progress with a Plan
The development company and its owner, MidAmerican Energy Holdings Company, established a long-term plan for the community. The “Ultimate Scoreboard” calls for 4,300 employees and 5,000 residents by the year 2013. The goal for Dakota Dunes Development Company is to build the community to these numbers so that, in effect, their marketing services are no longer needed.
“Until we have fully utilized all commercial space and platted the last lot in the development, our staff will search for companies looking to expand or relocate and offer residential land to the accompanying employees,” Melstad explained.
“By working with economic development partners, including the South Dakota Governor’s Office of Economic Development, we are assisting companies and making great progress in reaching the company’s and community’s goals,” added Melstad.
In addition to the tremendous growth of medical facilities, Dakota Dunes is currently home to national companies like Tyson Fresh Meats, Inc.; BPI Technology, Inc.; Premier Bankcard; and 1st Financial Bank USA.
These and other businesses—along with a steady stream of new residents—have worked together to make Dakota Dunes a bright spot in the Midwest, and one that will bring continued economic growth to the Siouxland region.
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Executive Summary
· Census data shows that since 1990, Union County, S. D. (23.51%), has had a larger growth in population than Chicago (4.03%); Kansas City, Mo. (1.47%); Des Moines (2.84%); Sioux Falls (22.97%); Omaha (16.14%); Lincoln, Neb. (17.51%); Minneapolis (3.86%); and Sioux City, Iowa (5.6%).
· Dakota Dunes houses 76 companies employing more than 1,600 employees
· Nearly 2,300 reside in Dakota Dunes and 600 homes have been built
· In addition to the single-family homes at Dakota Dunes, more than 300 apartment units are available for rent and the Willows offers townhouse living in the Country Club area of the Dunes.
· The residential and commercial property tax levy for 2005 is 13% lower than it was in 2002. In addition, Dakota Dunes offers a five-year property tax abatement program for commercial property development.
· Dakota Dunes is home to growing national companies like BPI Technology, Inc.; Tyson Fresh Meats, Inc.; Premier Bankcard; and 1st Financial Bank USA.
