FOR IMMEDIATE RELEASE

August 8, 2025

Contact: Josie Harms

State Enters Purchase Agreement for New Prison Land at Benson Rd. Site

Agreement Contingent on Approval by Legislature

PIERRE, S.D. – Today, Governor Larry Rhoden announced that the State of South Dakota has entered into a purchase agreement that grants the State the option to purchase land at the Benson Road site. This agreement represents over $10 million savings on what was estimated by the prison task force.

“South Dakota needs a new prison to keep our people safe, and we are moving forward with delivering a proposal that prioritizes safety and conservative fiscal stewardship,” said Governor Larry Rhoden. “We appreciate the Legislature’s continued attention to this project, and we are excited to deliver this as efficiently as possible for South Dakota taxpayers.”

The land in question is approximately 148 acres in northeast Sioux Falls along Benson Road (the "Benson Road site"). The State of South Dakota will only complete the purchase if approval to acquire the site is granted by the South Dakota Legislature.

If the purchase of the Benson Road site is approved by the Legislature on September 23, 2025, the Lincoln County site would no longer be owned by the State. As private property, any agricultural use or development of this land would be subject to county zoning.

“Residents of Lincoln County should be excited about the opportunity to regain control over what happens to that land,” said Sen. Ernie Otten (R-Lincoln County), who served on the prison task force. “I look forward to working with my fellow legislators to get this project across the finish line.”

The Benson Road site will represent millions of dollars in savings on utility development costs compared to the Lincoln County land, as there will be no need for a water tower, long sewer line, or other expenses. The purchase of the new Benson Road site also represents a more-than $10 million savings on the previous estimate by the prison task force. The purchase price is to be paid as follows:

• Cash payment of $12.5 million dollars for the Benson Road site, plus
• Exchange of the previously proposed Lincoln County land with an estimated agricultural value of $4.5 million.

You can find a full handout depicting the Benson Road site here.

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