30 Jan 2024
More than 18% of South Dakota residents are over the age of 65. This is one of the fastest-growing groups in the country as medical and technology advancements allow people to live longer, healthier lives. For many people, this is a good thing. It allows them to stay active in their older years while younger Americans can cherish more time with their loved ones. However, changing demographics also create a challenge for the housing market.
HME Companies, developers and operators of senior living facilities across South Dakota, is addressing these challenges head-on. With the help of a $1.7 million loan from Sioux Valley Energy through the Rural Electric Economic Development, Inc. (REED) Fund, this organization recently opened Peaceful Pines Senior Living, in Madison.
“One of Sioux Valley Energy’s core principles is ‘Commitment to Community’ and the REED fund is the perfect example of how we support local economic development and address housing needs throughout our communities,” Sioux Valley Energy General Manager and CEO Tim McCarthy said.
Peaceful Pines will make a big impact on the Madison economy, housing market, and workforce. Learn more about the ripple effects a single senior living facility can have on a community.
One of the many benefits Peaceful Pines brings to a community is the three levels of quality housing it provides. Residents can join the independent living, assisted living, or memory care wings, depending on their needs. That continuum of care environment provides one central location for residents to age in place making the life transitions smoother, for the resident and their families.
“This also aids in the loneliness epidemic that is happening within the senior population and increases overall quality of life,” says Lane Warzecha, Vice President of Development at HME Companies.
Families can live close to their loved ones no matter the care they need. Older residents won’t have to move across the state to more advanced facilities as they age.
“A project like Peaceful Pines provides an important step in addressing the housing situation for all generations. We are proud to support this type of facility that will serve and care for seniors in their various stages of life,” said McCarthy.
The multi-tier system at Peaceful Pines also impacts younger residents who want to live in Madison. When older South Dakotans have comfortable housing and support, they can move out of their homes at an earlier age. This frees up housing for younger residents who want to buy their first homes and start their families.
“We see this all across South Dakota and it’s one of the many reasons we partner with these communities,” says Warzecha. “More quality housing stock, at all levels, is a desperate need across the state.”
This development creates a place for older residents of Madison while also allowing new residents to move into the state.
By 2025, Peaceful Pines Senior Living Communities will employ more than 500 people across South Dakota (25-50 people per location), which makes it a significant contributor to the local workforce.
Money from the REED Fund was used to cover the construction, start-up, and operations of Peaceful Pines. HME Companies worked with the City of Madison to obtain tax increment financing (TIF) through the help of the REED fund. This, in conjunction with other local partners, made the project financially feasible.
“We have been familiar with some of the financing programs that REED offers for a few years, but it wasn’t until this project that we were able to make it work,” says Warzecha. “We worked directly with Angie through the application process and have nothing but good things to say. She made the process simple and answered our questions in a timely manner.”
Funds for this project were made possible through Sioux Valley Energy and the East River Electric Power Cooperative. Together, both organizations continue to invest in the South Dakota economy so both the youngest and oldest residents can get the services they need. Learn more about the REED Fund and how it helps rural communities.