South Dakota men’s prison appears likely to land in northeast Sioux Falls

July 10, 2025

Northeast Sioux Falls appears the most likely new home of South Dakota’s next correctional facility.

Two parcels are under consideration following a recommendation this week from Gov. Larry Rhoden’s Project Prison Reset Task Force that the new men’s prison be built in Sioux Falls, include 1,500 beds and not exceed $650 million in costs.

While more than one dozen sites statewide were considered, many were removed following public opposition.

Two Sioux Falls sites came in late in the process — one as recently as July 1 — and haven’t drawn similar pushback.

The first, land owned by Sweetman Partners of Sioux Falls, is 137 acres between Interstate 229 and to the east of Bahnson Avenue, not far from Gage Brothers Concrete Products and south of land owned by Wholestone Farms.

The other option was submitted July 1.

It’s approximately 148 acres and is east of I-229 and between Benson Road and Gage Brothers.

The property is owned by TCB LLC, and the letter of interest in selling to the state was signed by LLC members Lynnette Unzelman and Patty Nour, whose family owned Mryl & Roy’s Paving Inc.

“We’re not opposed to the prison as a neighbor,” Gage Brothers president Joe Bunkers said. “I don’t think that’s going to translate into major problems for my company. Both are good locations, and both would provide a good neighbor for Gage Brothers.”

Gage was under contract originally to assist with design of the site that would have been in Lincoln County, “so we did a lot of drawing and engineering on the old design already,” he said.

“That doesn’t matter anymore, but is it something we’d be interested in (building)? Absolutely. It’s a $30 million impact to our backlog that went away, so it’s had a major impact. I know they have to bid it out again, but I hope being right next to it, plus the fact we’ve already done work and we’re a local partner, (means) we can secure the contract again and do it right here.”

He also sees opportunities from a workforce standpoint.

“How do we partner with the state and start to teach some skills?” Bunkers said. “Is there a way they can help … support my business, and we can support them learning skills and coming out with things to do? How do we create an opportunity instead of a negative? I think there’s some opportunity if people are open.”

While the task force has made its recommendation, a final plan still requires a two-thirds approval by the South Dakota Legislature.

Mayor Paul TenHaken posted a statement on social media after the task force vote that concerns he raised with locating in Sioux Falls remain.

“We continue to believe building the new, more modern facility in city limits of the largest municipality in the state of South Dakota is short-sighted,” he said. “But if this is the direction the state plans to move forward in, Sioux Falls will be cooperative while also expecting a high degree of support of new laws, enhanced appropriations and additional financial support for us to take on the expected prison population increase and challenges that a facility like this brings to our community for generations to come.”

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