Gov. Larry Rhoden said the state has entered into a purchase agreement to purchase 148 acres of land in northeast Sioux Falls along Benson Road.
The agreement gives the state the option to purchase the site, if approved by the Legislature. The soonest that could happen is at a special Legislative session on Sept. 23.
In the agreement, the state pays $12.5 million and adds in 320 acres of state-owned land in Lincoln County that was previously planned for the prison. That land is valued at an estimated $4.5 million. This makes the total purchase price of the new land approximately $17 million.
With the exchange of the Lincoln County land, it goes back to private ownership and subject to local county zoning, something that became a political issue with the site.
State Sen. Ernie Otten said the residents of Lincoln County "should be excited about the opportunity to regain control over what happens to that land." He said he hopes to get the project over the finish line.
Rhoden said the new site could yield $10 million in cash savings because dirt work and purchase price are cheaper than amounts projected by the prison task force. The dirt work is cheaper because the site was formerly mined for gravel, bringing the cost down compared to other options for a prison.
He said the state would also save millions on utility development compared to the Lincoln County land, helping offset the purchase price. Specifically, the Benson Road site won't need a water tower or sewer line, among other expenses.
A neighbor directly south of the Benson Road site is also willing to sell an additional 29 acres to the state, but that isn’t figured into this sale price.
Rhoden said a prison is needed and “we are moving forward with delivering a proposal that prioritizes safety and conservative fiscal stewardship.
