In final State of the City, TenHaken looks ahead while highlighting what shaped the past 8 years

As Sioux Falls looks ahead to a massive redevelopment opportunity and continued growth, Mayor Paul TenHaken used his final State of the City address to shift the focus forward — even as he reflected on the past eight years.

Delivered at the Canopy by Hilton in downtown’s Steel District, TenHaken made clear that while his time in office is nearing an end, the city is entering what could be one of its most consequential periods yet.

At the center of that future is the planned relocation of Smithfield Foods out of downtown — a move that will open more than 130 acres along the Big Sioux River for redevelopment, supported by a $50 million donation from Denny Sanford.

“It’s going to be quite a few years from now that we will even begin demo and remediation … and it will take decades to redevelop the new addition,” he said. “But it truly is a once-in-a-generation opportunity for our city, our state, for American agriculture, for South Dakota agriculture, securing a multibillion-dollar impact,” TenHaken said.

The announcement earlier this year capped TenHaken’s eight years in office that included multiple records set for city building activity, culminating in the largest private in investment in South Dakota history with Smithfield’s $1.3 billion proposed facility at Foundation Park.

It also sets the stage for whomever succeeds TenHaken this summer, likely taking on similar shared challenges of managing growth.

In deciding to run for office, “we left a life of comfort, a career of comfort, to pursue a calling,” he said, while showing dozens of personal photos he took over eight years.

“I took office committed to building a people-first culture. A culture that was rooted in service and trust and accountability.”

TenHaken entered City Hall as an entrepreneur, leaving digital marketing agency Click Rain, which he founded.

“I tried instilling some of those entrepreneurial principles in the team,” he said, including looking at each department within the city as though it were its own business and implementing the Traction Entrepreneurial Operating System to cover how the organization runs.

“This created a whole new level of efficiency for how we were running City Hall,” he said. “It was very, very impactful.”

When he was elected in 2018, the city had just over 187,000 residents and 79 square miles. Today, it is nearing 225,000 — growth of more than 38,000 people in less than a decade and has expanded by 7 square miles. Supporting the growth has required expanding infrastructure, housing and services balanced with maintaining quality of life.

“I’m proud of the way we were able to keep the wheels on the bus during this time of growth,” TenHaken said. “We helped guide the growth strategically and kept as much of it as we could, but our resilience and perseverance really were tested.”

Significant investments 

His term included overseeing major investments such as the $215 million expansion of the city’s wastewater treatment plant, a new state-of-the-art public safety training center and record transportation improvements, including the development of Veterans Parkway and the 85th Street and Interstate 29 interchange, which will be the first new interchange in Sioux Falls in 15 years.

The emphasis is on “foundational investments,” TenHaken said, pointing to the city’s ongoing road maintenance and infrastructure improvements.

“We truly are taking care of today for a better tomorrow.”

The state-of-the-art Public Safety Campus and modern Metro Communications 911 center opened in 2023.

“This was so sorely needed,” TenHaken said. “This public safety campus has completely transformed and enhanced the way we are able to train our public safety employees.”

Alongside that investment, TenHaken highlighted several updated data points that suggest the city is stabilizing in key areas. Sioux Falls now is reporting its lowest violent crime rate per capita in more than five years and its lowest property crime rate in a decade, even as the population has increased.

The number of people experiencing homelessness also has declined slightly year over year, and public transit ridership has increased following a shift to an added on-demand service model.

Key projects supporting public safety have included The Link, a triage center for addiction and mental health services that has served thousands of residents and significantly reduced certain jail bookings by directing individuals to care rather than incarceration.

“We’ve triaged roughly 4,000 people,” TenHaken said. “Over 2,000 of those people said they wouldn’t have sought help if it hadn’t been for The Link.”

The Veterans Community Project, which was prompted by city employees, has helped house more than two dozen veterans in the community as a bridge toward permanent housing.

“We have to invest in our next generation of leaders in the city,” TenHaken said. “Sometimes as leaders, we have to step out of our own way and allow our teams to innovate and do things they sometimes can’t do when we’re in their way.”

The city also tackled “the long-troubled block along 11th Street that had carried one of the highest crime rates in our city,” he added.

“The City Council made the bold statement to not renew the businesses’ liquor licenses …  in an effort to drive some positive change in that neighborhood.”

Since then, the city has seen an overall 95 percent decrease in calls for service in this specific area in the past two years — from 769 down to 47.

Since 2018, Sioux Falls also has secured more than $79 million in private donations supporting parks, trails and community facilities, adding to significant city investments.

Major public-private partnerships include Jacobson Plaza, Lloyd Landing, Barb Iverson Skate Plaza, multiple projects at the Sioux Falls Zoo & Aquarium and the Sweetman Planetarium at the Washington Pavilion.

“Do not take this for granted, Sioux Falls,” he said. “This is not normal. In a low-tax state like this, we rely on this so heavily, and we’re so proud of that.”

TenHaken also led a new commitment to indoor recreation, acquiring the Westside Recreation Center and advocating for a bond to build an indoor multigenerational recreation center at Frank Olson Park.

The Westside Recreation Center drew more than 200,000 visitors last year, “proving it’s filling a gap in our community for recreational opportunities for all — no matter your age, your ability to pay, your income level,” he said.

Leading despite disruption

Even as he emphasized the city’s successes, TenHaken acknowledged some of the unprecedented challenges his administration faced.

In 2019, Sioux Falls experienced historic flooding that tested infrastructure and emergency response systems. Later that year, tornadoes caused widespread damage across neighborhoods, prompting a large-scale volunteer effort to clean up and rebuild.

“Parts of our city were unrecognizable, but we united quickly,” he said.

Then came the COVID-19 pandemic, which brought Sioux Falls into the national spotlight as cases surged and uncertainty spread.

Residents faced fear, frustration and division, TenHaken said, but the city focused on local solutions — including the creation of the One Sioux Falls Fund, which provided financial assistance for rent, mortgages and utilities.

The pandemic also coincided with a period of civil unrest following the killing of George Floyd in Minneapolis, including a night of violence at The Empire Mall that left officers injured and caused significant damage.

“Unlike many cities, we did not step back from our law enforcement officers in that moment,” TenHaken said. “We are not going to fall prey to this ‘defund the cops’ narrative. Publicly, the community stepped up as well … and I’m so proud of the way this community responded.”

Over the course of his time in office, the city activated its Emergency Operations Center 12 times — more than under any previous mayor.

“We stand up an EOC when an event is so big it needs a centralized (operation) to handle,” he said. “The number (of activations) … was more than the previous 20 years combined.”

Looking ahead

In looking toward the future, TenHaken pointed to a new tool that could shape how Sioux Falls approaches future projects.

A recently approved state law allows cities to ask voters to approve a temporary 1 percent sales tax for specific capital improvements, potentially reducing reliance on long-term borrowing. While it requires a 60 percent approval, if such a mechanism had been available in the past, TenHaken said the city could have saved roughly $53 million in interest costs tied to the Denny Sanford Premier Center.

“It’s not just Sioux Falls. Any city in the state will have this opportunity,” he said. “We have a new tool in our tool box.”

The timing of the legislation comes as Sioux Falls considers major investments tied to growth, redevelopment and quality-of-life projects, giving future leaders more flexibility in how they fund large initiatives.

Another notable step forward came just weeks ago, when TenHaken hosted leaders of South Dakota’s Native American tribes at City Hall — a meeting he described as opening lines of communication that had not previously existed between the city and tribal leadership.

“We discussed how we can provide the best levels of care, and support and understanding for our Native American brothers and sisters here in Sioux Falls, many of whom are facing challenges,” he said. “It was a huge meaningful step forward.”

The meeting reflects a broader emphasis throughout his administration on building relationships across sectors — from local organizations to state and federal partners —as well as with city employees and residents.

“It’s very important … to continue these conversations,” he said.

TenHaken called on the community to invest in small and promising businesses, pointing to the relocation of Startup Sioux Falls to a new downtown headquarters as a proud accomplishment.

“Who’s the next Sioux Steel? Who’s the next Raven Industries? Who’s the next DocuTap? We have to keep investing in our entrepreneurial landscape in Sioux Falls,” he said.

He also addressed the Riverline District, a vision to redevelop 9 acres that could include a new convention center.

“It’s a real conversation we have to get serious about in Sioux Falls,” he said, adding that it brings more opportunity with the redevelopment prospects of the current Smithfield site.

“The opportunities for redevelopment in our downtown are very, very bright in the years ahead,” he said.

The important part of his legacy isn’t tied to any single project or initiative, he said, instead pointing to the more than 2,000 city employees who carry out the daily work of running Sioux Falls.

“When we talk about pride, resilience and perseverance, these are the people that get it done,” TenHaken said. “It’s the boots-on-the-ground people. … These are the folks that have answered the call to public service and are absolutely incredible people.”

As he prepares to leave office, TenHaken offered advice for the next mayor.

“Keep trusting this team. Don’t micromanage them. They know what they’re doing,” he said. “Set high expectations, ask hard questions of them, push them with a big vision and then get out of their way. Make sure they know you have their back.”

He also expressed gratitude to his family and the community.

“I wouldn’t have been able to do this without them and their patience and their incredible support and love,” he said.

“I’m proud, I’m super-proud of the last eight years.  Proud of what we have overcome. Proud of what we have accomplished,” he said. “I’m proud of this city, and I’m proud of what we’re handing off to the next generation.”

The results of that work might not be immediate, but that’s not the point, he added.

“We planted a lot of trees under whose shade that we are never going to sit,” TenHaken said. “That’s what we mean by taking care of today for a better tomorrow.”