Imagine a century-old industrial giant packing up and moving—not just anywhere, but to a brand-new, billion-dollar facility. That’s exactly what Smithfield Foods is doing, and it’s shaking up Sioux Falls in a big way. But here’s where it gets controversial: while the move promises cutting-edge technology and economic growth, it also raises questions about the future of the historic site it’s leaving behind—and not everyone agrees on what that future should look like.
Smithfield Foods Inc., a powerhouse in the pork industry, is bidding farewell to its 117-year-old location in favor of a sprawling, $1.3 billion plant planned for 200 acres in northwest Sioux Falls. CEO Shane Smith explained the decision simply: “We were faced with a choice—pour millions into renovating our aging facility or start fresh. The choice became clear: it’s time to invest in the future.” And invest they will—this new plant isn’t just any facility; it’s set to be the most technologically advanced in the country, boasting state-of-the-art automation and IT systems, with over 1.4 million square feet of production space. It’s a bold move, but one that Smith calls a “once-in-a-lifetime opportunity.”
And this is the part most people miss: while Smithfield’s relocation is making headlines, the real story might be what happens to the 120-acre site it’s leaving behind. Thanks to a $50 million gift from philanthropist Denny Sanford, the land adjacent to downtown Sioux Falls will transition to community ownership, paving the way for a redevelopment project of unprecedented scale. Mayor Paul TenHaken couldn’t hide his excitement: “Our community is gaining 120 acres right at the heart of downtown, next to our iconic Falls Park. It’s like getting a whole new downtown—a once-in-a-generation opportunity.”
The existing plant, built in 1909 as John Morrell & Co. and acquired by Smithfield in 1995, has been a cornerstone of the city’s economy. With 2,200 employees and a $200 million payroll, it’s the second-largest processing facility for Smithfield and the largest producer of packaged meats in the U.S., processing 20,000 hogs daily. But its new home at Foundation Park, strategically located near major highways and rail access, promises even greater efficiency. “It’s a win-win,” Smith said, emphasizing the potential for generational redevelopment in the city.
Governor Larry Rhoden echoed the sentiment, calling the project the largest business investment in South Dakota’s history. “A year ago, I wouldn’t have believed this was possible,” he admitted. “It’s proof that South Dakota is open for opportunity.” Construction is slated to begin in 2027, with operations potentially starting as early as late 2028.
Here’s where it gets even more intriguing: the area Smithfield is leaving behind is roughly the size of a small neighborhood, stretching from 13th Street to Sixth Street and from Minnesota Avenue to the 10th and 11th Street viaducts. Mayor TenHaken was candid about the risks: “We could have easily lost this plant. It wasn’t a given that Smithfield would stay, but we fought to make this partnership work—and it’s going to last another 100 years.”
The site, now proposed to be called The Sanford District in honor of the philanthropist’s donation, could nearly double the size of downtown. But what should it become? A mixed-use development? Green spaces? Commercial hubs? That’s where the controversy lies. While some see endless possibilities, others worry about balancing historic preservation with modern development. Sanford’s donation was the linchpin that made the deal possible, but the real challenge—and opportunity—lies in what the community chooses to do with it.
As TenHaken joked with Sanford, “I don’t know if you’ll be remembered as the Sanford Health guy or the guy who bought a pork plant, but both are equally huge for this community—they’ll both be transformational.”
So, what do you think? Is Smithfield’s move a step forward or a missed opportunity? And what should the future of The Sanford District look like? Let us know in the comments—this conversation is just getting started. Stay tuned for updates as this story continues to unfold.
