By james art 
November 4, 2024
This paid piece is sponsored by Prairie Family Business Association.
The land had belonged to the Ryden family for generations – and determining its best use years into the future was not easy.
Since 1918, Sioux Steel Co. serves as a cornerstone of the Sioux Falls community, a leading manufacturer of farm equipment. But it became clear that building the future probably doesn’t mean continuing the manufacturing business at the entrance to downtown Falls Park.
“We have been blessed to be in downtown Sioux Falls for more than 100 years and have been through many aspects of the city’s transformation,” said Joel Johnson, CEO of Sioux Steel Family Office and its Foundation.
“But for more than 20 years we have discussed the vision and expansion of our downtown property. We knew what a gem it was and what it could be for the Sioux Falls community.”
However, it was an important event for the family business, which is now in its fifth generation. Operations had to be relocated and, most importantly, the right development partner had to be chosen.
“Finding the right partner for this project was critical to achieving our overall vision,” said Johnson. “This has been a carefully vetted planning process and we have done our due diligence before any external engagement with developers.”
The Rysdons invested in site exploration, planning and feasibility studies, exploring other markets, collaborating with city and community leaders, and community input.
Local and national companies were then invited to submit proposals.
“We knew how important this was to the Rysdon family in part because we are a family business ourselves,” said Chris Torkelson, second-generation CEO of Lloyd Cos.
“When you look at The Steel District today, the development you see is literally built by family businesses. But before we even put a shovel in the ground, it was about two families – ours and the Risdons – as we committed to them, we will ensure that this rare property fulfills its incredible potential.”
The Rydens “felt a strong connection with the Lloyd group and their passion and excitement for our vision and what we can do together for the city of Sioux Falls,” Johnson said.
“The overall sense of trust that was built with Chris Torkelson and their COO, Jake Quasny, as we worked through the details of the project was one of the many reasons Lloyd group was chosen as our development partner.”
Building a vision
Steel District broke ground in August 2021, kicking off a multi-year construction process led by Lloyd Construction.
The 7-acre complex 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, surrounded by apartments, condominiums and retail space.
When Stephanie Larscheid, executive director of the Prairie Family Business Association, toured the property, she saw many recognizable names at work.
“So many of the subcontractors at The Steel District are family businesses that 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 multi-generational family businesses.”
That reflects the strength of the companies involved, said Christy Ernst, a second-generation leader at Lloyd Cos. and chairman of the board of the Prairie Family Business Association.
“It really speaks to the impact family businesses have on our community and it’s exciting that we can do something of this magnitude using local resources,” she said.
Starting from the very beginning, family businesses are actively involved as project subcontractors. Limoges Construction did all the concrete work along with site work for the hotel, parking ramp and office building.
With approximately 25,000 yards of concrete poured and 800 tons of rebar placed, “this was the largest project we’ve completed since the beginning,” said Controller Erica Schmidt, a second-generation member of the 26-year-old family business.
“When we started this project in November 2021, it was just piles of dirt, excavators and forms. Now that our Flatwork teams are finishing work on the site, it’s amazing to see all the changes and what an impressive project it has become. We feel fortunate to have been able to be a part of this project; it will be central to Sioux Falls and downtown.”
What makes these types of projects more special “is who we can do business with,” Schmidt continued. “There were parts of our project scope that it would have been easy for Lloyd Cos to hire out of state, but they didn’t. They gave us the opportunity and experience because they are a company that understands community and family. We recently went on a tour and were blown away. They really thought of everything when putting this project together.”
Muth Electric Inc. provided the full range of electrical works for the development as well as low voltage for all buildings.
“We have a long-standing relationship with Lloyd and have completed countless projects with them, but The Steel District was unique,” said President David Muth. “Muth Electric is honored to be a part of this significant addition to downtown. This will be a major driver of economic growth in the city for years to come and it is exciting to see the vision come to fruition.”
Krohmer Plumbing has been involved in The Steel District for over two years, responsible for all plumbing and hydraulic piping at Canopy by Hilton.
“It’s been an amazing experience,” said Nick Cromer, Sioux Falls division manager. “There aren’t many projects like this and it was truly an honor to be a part of it. It is especially satisfying to contribute to a project that shapes downtown Sioux Falls and has such an impact on the community. As a family business, it’s great to collaborate with Lloyd and other family businesses.”
This represents one of the largest projects in Krohmer Plumbing’s history, “and our team on site did an incredible job,” Krohmer said.
“It’s a massive undertaking, but it’s all coming together beautifully. The level of coordination required for a project like this is incredible, and once completed, it will be a fantastic destination for Sioux Falls.”
Additionally, there are family businesses involved in The Steel District that are not evident on a construction site.
“Many of our partners in this development are family businesses,” Torkelson said. “Many of our investors are family businesses and there is no institutional capital here. It’s all family investors — friends and family that built this.”
Relationship driven
Many of the families also know each other through their connections with the Prairie Family Business Association.
“The value we’ve gotten through PFBA is really multifaceted,” said Sioux Steel’s Johnson.
“The sense of community and support stands out. PFBA has allowed us to build relationships with other family business owners. It opened doors to collaborations that we wouldn’t have found elsewhere. Being able to learn from the experiences of others, both good and challenging, helps us avoid pitfalls and adopt best practices that have been proven in real-life situations.”
For Krohmer Plumbing, which celebrates its 40th anniversary this year, “The Prairie Family Business Association is an excellent resource for family businesses,” said Krohmer. “If you’re looking to make the 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 management practices, networking opportunities, education.”
Limoges Construction has also been involved in the PFBA for years.
“You can’t measure the value you get from an organization like the PFBA,” Schmidt 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 this is true. We all have the same problems at the end of the day. If you work with family in any capacity, this organization can help foster healthy family relationships and in turn support your business through the many cycles it will go through through the generations.”
The Prairie Family Business Association itself will help 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 about is showing this development to more than 500 people,” Larscheid said. “What a story we can show 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 is intentionally designed to honor the history of the family business, filled with meaningful nods to its 50 years of success.
“There’s energy here and it’s only going to get better,” Ernst said. “We love being a part of it. We love that our team can enjoy views that many have never seen of Sioux Falls, the hotel and restaurants. It’s a natural center to gravitate toward.”
The third new restaurant in the office tower will open this week, and the Canopy by Hilton hotel will open in late November or early December. More offices, restaurants and shops are expected next year.
The Risdons continue to look to the future. Sioux Steel is reserving more than 3 acres adjacent to The Steel District for future development.
“We couldn’t be more excited about the progress that has been made so far,” Johnson said. “We hope this is a great addition to the community and are very proud to have the opportunity to develop such a remarkable part of our state.”
For the Lloyd family, “this is really a legacy project,” Torkelson said. “We are so proud of it and are committed to ensuring it continues to be as attractive to future generations as it is today.”