Governor Larry Rhoden announced a $1 million grant from the state’s Future Fund to support construction of an $18 million office building for defense contractor Northrop Grumman in Rapid City, South Dakota. The facility will be built by Elevate Rapid City on undeveloped land in the city’s Innovation District, less than 10 miles west of Ellsworth Air Force Base. The state contribution is matched by a $1 million payment from the Ellsworth Development Authority, bringing total public support for the project to $2 million.
What it means
The new office supports a two-decade effort by South Dakota officials to expand infrastructure around Ellsworth Air Force Base. State and local leaders have worked to secure training airspace, add drone units, clear crash zones, and prepare the base to host B-21 stealth bombers next year. These initiatives aim to retain approximately 9,000 people associated with the base, which generates an estimated $800 million in annual economic activity for the region.
Northrop Grumman has scheduled about 50 interviews for its first wave of hires at the Rapid City location. Elevate CEO Jack Valentine said the combined workforce at the base and the new office could eventually number in the hundreds. The project aligns with Governor Rhoden’s announcement eight months ago that national security would be a priority industry in South Dakota. In April, the governor awarded a separate $6 million Future Fund grant to establish the South Dakota Defense Institute, a nonprofit organization currently seeking a CEO. That institute will operate out of a building acquired by Elevate at 14 St. Joseph St. in Rapid City.
Key facts
- $18 million: Cost of the new Northrop Grumman office building.
- $1 million: Grant amount from the state Future Fund for this project.
- $1 million: Contribution from the Ellsworth Development Authority.
- 50 interviews: Scheduled for the first wave of employees at the Rapid City office.
- 9,000 people: Estimated workforce and community associated with Ellsworth Air Force Base.
- $800 million: Estimated annual economic impact of the base.
- 2009: Year state lawmakers created the Ellsworth Development Authority.
- $6 million: Future Fund grant awarded in April for the South Dakota Defense Institute.
Source: South Dakota Searchlight, reporting a governor’s office announcement