SIOUX FALLS, S.D. (KELO) — Salem isn’t Sioux Falls, Mitchell or Madison, but it’s close enough for a commute, said Jeremy Gray, president of the Salem Economic Development Corporation (SEDC).
“We’re getting closer to Sioux Falls every day as Sioux Falls expands westward,” Gray said.
Gray said Salem’s proximity to Sioux Falls, Mitchell and Madison makes it an attractive place to live. But it’s not just the location that’s appealing, he said. “It’s a nice town. The school system is great…” Gray said. Parks, pools and other amenities are also appealing.
Mayor Glenda Blindert said local residents believe the city is a great place to live, but it’s hard to find somewhere to live in the town of about 1,300 people.
A new housing project called “Colonial Estates” will help change that.
Colonial Estates will include 18 new single-family and apartment buildings in the city’s southeast area. The homes will replace the Colonial Manor Nursing Home, which was heavily damaged in the May 12, 2022 derecho.
SEDC and the city will extend infrastructure such as roads, sewer and water to the housing development.
Blindert said SEDC had been in discussions about purchasing the nursing home’s land before Delejo in May. SEDC was able to purchase the nursing home’s land after the nursing home’s owner decided to close.
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Gray said SEDC raised about $250,000 in community donations, including about $150,000 matched by First Dakota National Bank, where Gray works, and $100,000 from individuals and businesses. The money was used to purchase the land and demolish the nursing home.
SEDC also received up to about $750,000 in housing grant funding from the state for the project, Gray said.
“It’s a big deal for a small town like Salem,” Blindert said.
Blindert said although the town is close to Sioux Falls, it won’t attract the kind of big developers that are doing residential development in Sioux Falls.
The single-family home lots will be sold to buyers, who will then find their own contractors, she said.
Blindert said some builders may be interested in the multifamily site.
SEDC already has four single-family home lots listed for sale.
Gray and Blindert said the development they envision is a mix of single-family homes and duplex and four-family apartment buildings, possibly with no basements.
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Blindert said donors like her company don’t expect to make a profit from the land sale, but see it as an investment in the town’s future.
Blindert said new housing could bring in more people and open up existing homes to other buyers. If an older couple builds a new home or buys a four-family home, a younger family could buy the couple’s old home in Salem, he said.
Housing projects aren’t Salem’s only growth potential. SEDC was invigorated several years ago when it incorporated as a 5013C nonprofit, making it eligible for more grants and other financial assistance. Tax incentives also benefit donors.
SEDC also sells commercial land in town, Gray said. “We have 16 acres of commercial land,” Gray said. “I met with someone last night about the land.”
Gray believes commercial and industrial growth will come from more housing, but he said housing comes first because people need a place to live.
Gray said he understands housing development takes time, but he’s excited to see it move forward. “If you look back at where we were two and a half years ago, there was nothing,” Gray said.
