SIOUX FALLS, S.D. — Officials of a southeast South Dakota city hope that a housing boom in a portion of the city will soon be followed by an increase in businesses.

U.S. Census Bureau data shows that southeast Sioux Falls has a population growth rate that’s three times faster than the rest of the city.

However, there are still few retail and restaurant options in the area, the Argus Leader reported.

That portion of the city used to be farm land, but is now divided up among investors and developers.

More residential development had to happen in that portion of the city in order to get businesses interested, said Joel Dykstra, CEO of RMB Associates, a development firm that owns land in the area.

“There’s no secret recipe,” he said. “There’s no easy answer for success. It takes a lot of different factors and they all have to come together.”

The increased residential development will hopefully attract young professionals, who tend to want shopping and entertainment options, said Mike Cooper, the city’s planning director.

“The commercial developers will always tell you that they count rooftops,” Cooper said.

Barrel House was one of the first restaurants to move into the neighborhood. Owner Mark Fonder said the area’s growth and a lack of eateries inspired him to open up his restaurant there.

“There was a few other spots that I was looking at,” Fonder said. “I guess I just like the neighborhood around here.”

The restaurant has become a popular neighborhood spot that draws people in from nearby apartments, he said.


Information from: Argus Leader, http://www.argusleader.com