NEW UNDERWOOD - Changes for the better are coming slowly but surely for New Underwood, and city officials predict a bright future for their community.

And, with the town's 100th birthday celebration set for Labor Day weekend, a recent move to a new city hall means New Underwood is embracing the future, according to Mayor Bonita White.

The bright, updated city hall symbolizes the optimism New Underwood's city council has for the community that continues growing when other small, prairie communities are shrinking, she said.

When the 2000 census was taken, New Underwood was listed as one of the fastest-growing cities in South Dakota, according Larry Graham, a member of the New Underwood Community Development Corporation. Graham is the vice president of ranching at the New Underwood branch of First Western Bank.

New Underwood is growing slowly, but people are attracted by the community's small-town atmosphere and school, Graham said. Many of the new residents are young couples, he said.

"It's a nice little town," he said.

In the past five years, 36 new homes were built in the community.

During the same time frame, the city issued more than 200 building permits for an estimated increase in property valuations of $2.7 million, according to city finance officer Meri Jo Anderson.

With the annexation of 350 acres, New Underwood doubled in physical size in 2007, Anderson said. "So now, there's definitely room for growth."

Anderson estimates the town's population to be 750, up from 616 in 2000.

The town's location, about 17 miles east of Rapid City on Interstate 90, is also in its favor, White said.

"We're pretty much a bedroom community for Rapid City and Ellsworth Air Force Base," she said.

"That's where our niche is, and maybe we need to work towards that," Graham said.

Graham said continued residential growth could help to resurrect the town's business community by creating a demand for more services.

Recently, the local grain elevator was sold. The new owner of FMG Feed and Seed has added a line of feed items specifically for the local hobby farmers living in housing developments around New Underwood, Anderson said.

The opening of a new pool hall, a towing service, scooter sales shop and battery recycling businesses in recent years are positive signs for the community, she said.

"It's coming, slow, but sure," Anderson said.

No one appreciates the sunshine streaming in the windows of New Underwood's new city hall more than Anderson and utilities clerk Tralice Ellis.

"It's great. I can see what I'm doing," Anderson said jokingly, looking around her new office in the former Kids Kastle child-care center on New Underwood's main street.

White said that with windows all around, the new city hall is a major change from the former city offices, where most of the windows faced north.

Buying the child-care center solved more than four years of debate over the need for a new city hall, White said. Building a new building was not financially practical, she said.

The former child-care center needed few renovations.

For less than $60,000, the new city hall houses not only Anderson and Ellis, but the public works office, a deputy sheriff's office, a small meeting room, restrooms and even a small kitchen.

The city contracts law-enforcement services with Pennington County. A sheriff's deputy had been working out of a basement office in the fire hall.

City employees moved into the new city hall Dec. 20.

It took only a day to transfer desks, books and most of the equipment across the street from the converted service station that has housed city hall since 1983.

The city council is still debating the future of the former city hall.

Originally a livery stable, the building is one of the oldest structures in New Underwood, Anderson said.

The city is building a new public-works storage building south of the old city hall. Once completed, the old building will be empty.

The council has considered tearing the building down to make more parking for the community center, Anderson said.

Contact Andrea Cook at 394-8423 or andrea.cook@rapidcityjournal.com