STURGIS -- A Cracker Barrel, Big Lots!, or a Cinemark Theater could be coming to an Interstate-90 exit near you.

Sturgis city officials are throwing out a line in hopes that a national retailer will take the bait for the old Sturgis Sawmill site just off I-90’s Exit 32.

The city, along with the Sturgis Chamber of Commerce and the Sturgis Economic Development Corporation, hired consultants Buxton Retail to market the city's development potential to national chains. Each group is assuming one-third of the $20,000 cost.

Founded in 1994, Buxton is a pioneer in the use of customer data to develop growth and business strategies, and it provides market planning and services to identify potential businesses for municipalities such as Sturgis.

Buxton identified 10 preferred choices for the area on the Junction Avenue-Dickson Drive intersection’s west side. Cracker Barrel Old Country Store, Big Lots! and Cinemark emerged as the top three.

“We have developed marketing packages for the sites for each business on the list,” Sturgis City Manager David Boone said. Contact with those businesses started this fall.

Home Depot was the fourth choice. Rounding out the other top 10 selections were Dunham’s Sports, Unclaimed Freight Furniture, Ground Round Grill and Bar, Jo-Ann Fabric and Craft Store and a RAC (Rent-A-Center) store, which sells furniture, appliances and electronics.

City officials see tremendous opportunity for retail development in that area.

“There are over 18,000 vehicles a day at that exit,” Boone said. “When you look to the south side, it’s totally undeveloped.”

City buys property

Sturgis bought two right of way surplus plots from the South Dakota Department of Transportation earlier this year. The city negotiated purchase of three parcels, for a net cost of $72,500. One of those parcels was the old sawmill site. City council members approved that action Feb. 2.

DOT representative Todd Seaman said the state initially offers surplus property to local governments at the appraised value. If the property is not bought then, it goes on the open market.

Site improvement work on the old Sturgis Sawmill site was recently completed. Two box culverts will provide drainage, and 50,000 cubic yards of fill material helped bring the property to street level. The city paid $262,034 for the improvements; money came from the capital improvement fund. Council members authorized that June 15, and the sites have been discussed at each town hall meeting.

The state bore none of the costs for improving that property.

Critics question city’s role

Retail recruitment has begun for the site. But not everyone is pleased with that effort. Guy A. Edwards owns Best Western Sturgis Inn off Exit 32, along with a two-acre parcel. The old Sturgis Sawmill site is not far from his establishment.

“The city is risking taxpayer money in unrelated business activity to the city,” Edwards said. He said it is not the city’s business to buy land, develop it and foster what he called “sweetheart deals.”

Edwards said his view would be the same regardless of location, even if it happened off Exit 12 in Spearfish.

“Others should be taking the risk instead of the city,” Edwards said.

Edwards said taxpayers should be concerned about what he sees as a lack of transparency.

City manager Boone disagrees. Everything has been very open, he said, and citizens have been made aware of what is happening.

“The city is just trying to be responsive to the citizens’ wishes as per the process going forth,” Boone said

Why court a restaurant, Edwards asks. More than 20 restaurants are already in Sturgis, and many are struggling. He wonders why Sturgis would want to go this route, given the difficult economic environment today.

Boone said the city will look at a variety of retail establishments, but a restaurant is what people seem to favor for that area.

Doing what the people want

Sturgis Mayor Maury LaRue shares the sentiments of many regarding the city’s development.

“It’s thrilling,” LaRue said. “That’s the best answer I can give.”

LaRue said Sturgis needs to be attractive to its customer base. He attributed the success to the teamwork between the Sturgis Chamber of Commerce, Sturgis Economic Development Corporation, Sturgis Area Business Alliance and community members.

The city’s role is to provide services, LaRue said, and citizens are the economic drivers.

Future predictions indicate Sturgis’ population may grow to 7,000 residents from its current 6,500. LaRue said the city is developing a synergy that allows that growth.

He said the city’s role has changed during the past few years. The biggest change, LaRue said, is that community consensus building is in place.

He hopes the city will meet the residents’ needs and desires with incoming businesses.

“The majority want change,” LaRue said. “That’s what we’re doing.”