The land has been in the Rysdon family for generations – and determining the best use for it years into the future wasn’t easy.

Since 1918, Sioux Steel Co. has served as a cornerstone of the Sioux Falls community, a leading agricultural equipment manufacturer. But it had become clear that building for the future likely didn’t mean continuing to run a manufacturing business at the gateway to downtown’s Falls Park.

“We have been blessed to be in downtown Sioux Falls for over 100 years and have weathered through many facets of the city’s transformation,” said Joelle Johnson, CEO of the family enterprise office for Sioux Steel and its foundation.

“But  for more than 20 years, we’d been discussing the vision and expansion of our downtown property. We knew what a jewel it is and what it could be for the Sioux Falls community.”

That said, it was a significant event for the family business, now in its fifth generation. Operations needed to be relocated, and, critically, the right development partner needed to be selected.

“The search for the right partner for this project was critical to achieve our overall vision,” Johnson said. “It was a carefully vetted planning process, and we did our due diligence before any outside engagement with developers.”

The Rysdon family invested in site research, planning and feasibility studies, research in other markets, collaboration with city and community leaders and public input.

Then, local and national companies were invited to submit proposals.

“We knew how important this was to the Rysdon family in part because we’re a family business ourselves,” said Chris Thorkelson, the second-generation CEO of Lloyd Cos.

“When you look at The Steel District today, the development that you see literally was built by family businesses. But before we even put a shovel in the ground, this was about two families – ours and the Rysdons – as we committed to them we’d ensure this rare property fulfilled its incredible potential.”

The Rysdon family “felt a strong connection with the Lloyd group and their passion and excitement for our vision and what we could do together for the city of Sioux Falls,” Johnson said.

“The overall sense of trust that was built with Chris Thorkelson and their COO, Jake Quasney, as we worked through the details of the project was one of many reasons the Lloyd group was selected as our development partner.”

Building a vision

The Steel District broke ground in August 2021, beginning a multiyear building process led by Lloyd Construction.

The 7-acre development includes a nine-story office tower that includes three restaurants, a seven-story Canopy by Hilton hotel and a parking ramp with more than 900 spaces, wrapped by apartments, condominiums and retail space.

When Stephanie Larscheid, executive director of the Prairie Family Business Association, took a hard-hat tour of the property, she saw plenty of recognizable names at work.

“So many of the subcontractors at The Steel District are family businesses we enjoy working with as members, and, of course, the Rysdon and Lloyd families set the vision and the tone with their commitment to quality,” she said.

“It’s exciting to see this become a legacy project for so many multigenerational family businesses.”

That reflects the strength of the companies involved, said Christie Ernst, second-generation leader at Lloyd Cos. and board chair of the Prairie Family Business Association.

“It really speaks to the impact that family businesses have on our community, and it’s exciting that we can do something this size using local resources,” she said.

Beginning from the ground up, family businesses have been highly involved as subcontractors on the project. Limoges Construction handled all the concrete work along with the site work for the hotel, parking ramp and office building.

With an estimated 25,000 yards of concrete poured and 800 tons of rebar placed, “it was the biggest project we have completed since our inception,” said controller Erica Schmitt, a second-generation member of the 26-year-old family business.

“When we started this project in November of 2021, it was just dirt piles, excavators and forms. Now that our flatwork crews are finishing up the site work, it is incredible to see all the changes and what an impressive project it has turned into. We feel lucky to have been able to be a part of this project; it will be a pivotal place for Sioux Falls and downtown.”

What makes these types of projects more special “is who we get to do business with,” Schmitt continued. “There were parts of our project scope that would have been easy for Lloyd Cos. to hire out of state for, but they didn’t. They gave us the opportunity and experience because they are a company that understands community and family. We took a tour recently and were blown away. They really thought of everything when putting this project together.”

Muth Electric Inc. provided the complete scope of electrical work for the development, as well as low voltage for all the buildings.

“We have a long-standing relationship with Lloyd and have completed countless projects with them, but The Steel District was unique,” president David Muth said. “Muth Electric is honored to have been a part this significant addition to downtown. It will be a major driver for economic growth in the city for years to come, and it’s been exciting to see the vision come to reality.”

Krohmer Plumbing has been involved in The Steel District for more than two years, responsible for all the plumbing and hydronic piping throughout the Canopy by Hilton.

“It’s been an amazing experience,” said Nick Krohmer, Sioux Falls division manager. “There aren’t many projects like this, and it was truly an honor to be part of it. It’s especially fulfilling to contribute to a project that’s shaping downtown Sioux Falls and making such an impact on the community. As a family business ourselves, it’s great to collaborate with Lloyd and other family-owned businesses.”

It represents one of the largest projects in Krohmer Plumbing’s history, “and our on-site team has done an incredible job,” Krohmer said.

“It’s a massive undertaking, but everything is coming together beautifully. The level of coordination required for a project like this is incredible, and once it’s finished, it will be a fantastic destination for Sioux Falls.”

Plus, there are family businesses involved at The Steel District that aren’t obvious on a construction site.

“Many of our partners in this development are family businesses,” Thorkelson said. “A lot of our investors are family-owned businesses, and there’s no institutional capital here. These are all family investors – friends and family that built this.”

Relationship-driven

Many of the families also know one another through their relationships with Prairie Family Business Association.

“The value we have received through PFBA has been truly multifaceted,” Sioux Steel’s Johnson said.

“It’s the sense of community and support that stands out. PFBA has allowed us to build relationships with other family business owners. This has opened doors to collaborations we wouldn’t have found elsewhere. Being able to learn from others’ experiences, both the good and the challenging, helps us avoid pitfalls and adopt best practices that are proven in real-life situations.”

For Krohmer Plumbing, which marks its 40th anniversary this year, “Prairie Family Business Association is an excellent resource for family businesses,” Krohmer said. “If you’re looking to make a transition to the next generation, the association offers invaluable tools to make that process successful.”

Muth, who is part of the second generation at Muth Electric, agreed.

“Joining the PFBA has been very beneficial for our family,” he said. “Some of the benefits include succession planning, family governance practices, networking opportunities, education.”

Limoges Construction has been involved with PFBA for years too.

“You cannot measure the amount of value you get from an organization like PFBA,” Schmitt said.

“The Prairie Family Business Association has impacted our business, providing invaluable knowledge over the years that has made LCI more successful. I remember before we joined, we thought you had to have a certain number of employees or sales volumes; none of that is true. We all have the same issues at the end of the day. If you are working with family in any capacity, this organization can help foster healthy family relationships and in turn help support your business through the many cycles it will go through over the generations.”

The Prairie Family Business Association itself will be helping celebrate The Steel District on April 30 and May 1, 2025, for the Annual Family Business Conference at the Canopy by Hilton.

“What I’m most excited for is showcasing this development to more than 500 people,” Larscheid said. “What a story we can showcase as we celebrate the work of our members to make this project a reality.”

Opening days

Lloyd Cos. officially moved into its own new headquarters earlier this year. It’s intentionally designed to honor the family business’ history, filled with meaningful nods to its 50 years of success.

“There’s an energy here, and it’s just going to keep getting better,” Ernst said. “We love being part of it. We love that our team gets to enjoy views many have never seen of Sioux Falls, the hotel and the restaurants. It’s a natural hub to gravitate to.”

This week will bring the opening for the third new restaurant in the office tower, while late November or early December will mark the opening of the Canopy by Hilton hotel. More office, restaurant and retail openings are expected into next year.

The Rysdon family continues to look to the future. Sioux Steel retains more than 3 acres adjacent to The Steel District for future development.

“We couldn’t be more excited about the development that’s come together so far,” Johnson said. “We hope it’s a great addition to the community, and we are very proud to have the opportunity to develop such a landmark part of our state.”

For the Lloyd family, “this is truly a legacy project,” Thorkelson said. “We’re so proud of it, and we’re committed to ensuring it continues to be as attractive to future generations as it is today.”