REED Fund Finances Residential Developments in South Dakota
24 May 2022
REED Fund is dedicated to giving financial support to make improvements in South Dakota. The loans provided by REED Fund assist with important projects in the area including upgrades to residential developments.
The main goal of REED Fund is to make a meaningful difference in the South Dakota and Minnesota regions by providing financing for business and community projects in partnership with commercial and other economic development lenders. Originally established in 1996, REED Fund focuses on projects that promote growth and contribute to job creation in South Dakota and Minnesota.
So far, REED Fund has assisted in financing a total of 27 housing projects. This includes four site developments, 12 assisted living facilities, three single-family homes, six multi-family rental properties, and two housing loan funds. Below are some examples of housing projects that REED Fund helped finance.
Residential Lots in Corsica Receive REED Fund Loan
Corsica’s non-profit development corporation Corsica, Inc. in South Dakota was recently approved to receive proceeds from the REED Fund. The loan proceeds helped in purchasing 19 residential lots on Vant Haaff Drive in the southeast corner of Corsica, SD, from Corsica Area Developers.
These properties already had curb and gutter, sewer, storm drainage, plus water and electricity available for hookups. Vant Haaff Drive used to be gravel, but the REED Fund loan allowed the development corporation to asphalt pave the road.
The road upgrade created an added appeal to the residential lots for both consumers and contractors. After paving Vant Haaff Drive, five different lots were sold including four custom homes and one Twin Home.
“The growth of our town depends immensely on having housing available for sale and rent,” said Luke Bamberg, Senior Relationship Banker for Bank of the West. “These funds will go a long way into helping us continue to drive for expansion and growth.”
REED Fund Financed Housing Development Project in Viborg
REED Fund is one of five lending partners for Viborg Development Corporation. REED Fund provided funds for housing infrastructure and development for a recent housing project in Viborg, SD. The funding went toward the water, sewer, street curbs, gutters, and light poles.
President of Viborg Development Corporation Anne Christiansen initially met with these funding partners to get funding lined up. She said that it was a very long and challenging process that definitely paid off in the end.
“The housing turned out absolutely wonderful and it's been great to be able to offer new housing options in Viborg,” Christiansen said. “Viborg Development Corporation is grateful to REED Fund and the various projects.”
Christiansen is also the CFO at Pioneer Memorial Hospital & Health Services. With her job duties and overall experience there, she was able to figure out the projections for this housing project. Plus, Loan Officer at Merchant State Bank Scott Larsen understood the financing portion of the Viborg housing project and was able to lend his skills to that.
“We are grateful to REED Fund for taking the chance and believing in what we want to accomplish,” Christiansen said. “Without them, it would have never happened.”