Airport pulls back on original development plan for potential C-store

April 16, 2026

It’s looking more like there won’t be a new place to fuel up or grab food at the Sioux Falls Regional Airport anytime soon.

The airport issued a request for proposals last year to develop 3 acres of airport-owned property at the entrance to the main terminal.

There were three proposals for the site from developers, and the airport selected Freeman-based Stern Co. to work through a potential concept.

Stern then met with the airport authority board and experts in construction and financing, CEO Scott Stern said.

“We also walked through additional options that could be put on that site,” he said. “It came through loud and clear the No. 1 mission was to build a C-store on that site.”

A convenience store industry consultant then did an analysis on the area — and that’s when it came back “unequivocally and said this project wasn’t feasible,” Stern said. “We shared the granular details, and they understood it.”

The analysis looked at traffic patterns, competing businesses and household demographics within 3 and 5 miles of the airport — those that would be relied on for daily business to a C-store beyond travelers, which is where either showed an operating subsidy would be required to support it.

“I just don’t see the airport wanting to do that,” Stern said.

Executive director Dan Letellier agreed.

“Many factors go into a success/profitable business — unfortunately in several areas we fell short,” he said.

“Based on the results of several well-respected consultants, we won’t be moving forward with this concept. Scott and his team continue to look at other development options to see what would be the best fit for the airport and this location.”

During the RFP process, an office building was suggested as one option to support those who frequently fly for business.

Stern also sees potential for a pet hotel.

“It really would improve the traveling experience if Mom and Dad could drop Fido at the door before they leave on the plane, and then it’s the first thing they do when they get back,” he said.

As the airport adds more gates and grows its passenger volume, a C-store could become more feasible, he added.

“They are going through a big expansion, and when that traffic flow changes, we can reassess,” Stern said.

“That may skew it again, it may not, but in the future we’d look again if that volume would dictate a change in the outcome. We really were excited about the project and tried to find a way to get it done, but unfortunately there’s not a path forward with the detail we have.”

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