Comprehensive Economic Development Strategy for the Sisseton Wahpeton Oyate Tribe

Background

Economic Conditions of the Lake Traverse Reservation

The Lake Traverse Reservation spans approximately 1,450 square miles. Located in northeast South Dakota and a small portion of southeastern North Dakota, the lands of the Sisseton Wahpeton Oyate Tribe touch five counties in northeast South Dakota (Codington, Day, Grants, Marshall, and Roberts) and two counties in southeastern North Dakota (Sargent and Richland). The region spans across the South Dakota Glacial Lakes area, creating bountiful opportunities for fishing in the pristine glacial waters.

The reservation economy is supported by a regional population of approximately 18,000 residents. The tribal government is located in the Old Agency District, approximately seven miles from the town of Sisseton. Sisseton, with a population of 2,430, is the Roberts County seat. Watertown, South Dakota is located at the southern edge of the reservation and Fargo, North Dakota is located 85 miles north. The state line of Minnesota runs parallel to the eastern reservation boundary, and I-29, a major interstate highway system originating at the Canadian border runs directly through the Lake Traverse Reservation. Two major highway systems, SD Highway 10 and US Highway 12, run through the reservation in an east-west direction.

SWO has a current enrollment of approximately 14,000 Tribal members, and just over 6,000 reside on the tribal lands. Native American individuals living on the Lake Traverse Reservation have a poverty rate of 40.8%. This is nearly triple the U.S. poverty rate of 13.7%. The reservation’s economy relies on farming, ranching, casinos and small industry. Individuals raise cattle, sheep, horses, and hogs, while the Tribe leases land to others for crop production and grazing. The Tribe owns and operates two casinos, which employ 500 people. State and federal agencies, organizations, and schools are located within reservation boundaries and serve as major employers for Indian and non-Indian communities alike. Despite these businesses there are few other available jobs, and one quarter of Lake Traverse tribal residents are unemployed. Tribal members earn, on average, $4,058 per year.

It is important to note that opportunities to earn even limited amounts of income will drastically increase the quality of life for Lake Traverse Reservation residents. Guided entrepreneurship ventures could represent greater financial stability for individuals and families and capture additional income that could be used to purchase local foods, goods, and services – ultimately bolstering the local economy and benefitting all Tribal members. 

Although progress continues on the Lake Traverse Reservation, basic economic development functions must be undertaken to support other social advancements. As the Native American population increases on the reservation and employment levels increase, the needs of the working population also increase. Housing and home ownership, land use planning and development, infrastructure development, and management training are critical needs pervasive among tribal economic development.

Constraints to Economic Development

  • 1.

    Tribal commercial laws and regulations are insufficient or outdated

  • 2.

    Difficulties with Federal programs and regulations (piecemeal approaches to development, cultural bias, programs designed to fail)

  • 3.

    Two-year terms in tribal government leadership cause delays and obstacles for infrastructure projects that cannot be completed before elections and change

  • 4.

    Lenders and vendors with limited understanding of tribal sovereignty, immunity, tribal tax requirements

  • 5.

    Limited use of trust land or collateral

  • 6.

    Bank lending rules and regulations not structured for the tribe

  • 7.

    Absence of networking for tribal entrepreneurs due to remote location

  • 8.

    Need for telecommunications infrastructure for business development and expansion

  • 9.

    Need for financial education in banking, credit reporting, and loan qualifications

  • 10.

    The tribe experiences racism and discriminatory lending practices (review of local Community Reinvestment Act reports) are indicative of redlining and cursory compliance

Prioritized Ventures

Numerous ventures with economic impact have been identified and prioritized to stimulate sustainable workforce development opportunities on the Lake Traverse Reservation. Described in greater detail in further sections, these opportunities include:

Goal 1: Increase tourism

ECONOMIC DEVELOPMENT

  1. Powwow

  2. Lake and Recreation

  3. Traditional Medicines

  4. Cultural Museum

Goal 2: Grow leadership and funding

EDUCATION AND CAPACITY BUILDING

  1. Leadership Development – Know Your History – Grow Your Own

  2. Develop fund development plans/generate funding for unfunded initiatives, including:

    • Refinance Tribal Loan Program

    • Develop Economic Diversification Fund

    • Apply for more grant funding

  3. Prioritize future projects

    • Glamorous Camping Facility with infrastructure and access to amenities

    • Insurance – Open Market with cost savings

    • Water Bottling

    • Office Supply Partnership

    • Building Supply Partnership

    • Grow-Your-Own Apprenticeship Programs

    • Hemp – Growing, Selling, Manufacturing

    • Business Degree Students Develop Plans

    • In-Home Dialysis

    • Substance Treatment Center

    • Assisted Living Center’

    • Health and Community Wellness Center

Goal 3: Improve Infrastructure

SOCIAL AND HEALTH EQUITY

  1. Increasing availability of safe affordable housing

  2. Agency Village Water System

  3. Sisseton-Wahpeton Detention Center

Project Approach

Sisseton Wahpeton Oyate Tribe will use a community-based planning approach in evaluating and revising the Comprehensive Economic Development Strategy, with regular updates to ensure the document represents the current and relevant input of the community. A continuous performance feedback loop will be leveraged, as the Reservation Planning Commission and the SWO Tribal Council provide regular input representative of the tribal community. Twice annually, this mechanism will review progress towards stated goals, objectives, and milestones, and provide evaluation and feedback. Segments identified as being in-need of revision will be evaluated with input from the community. Any resulting revisions will be presented to the Reservation Planning Commission for review, comment and approval. This method will ensure the CEDS document remains current, relevant, and reflective of the strengths and opportunities on the Lake Traverse Reservation. 

Comprehensive Economic Development Strategy

The Reservation Planning Commission’s five core planning principles

  • 1.

    The rate of growth for any community should not exceed the ability of that community to provide the services necessary to support growth.

  • 2.

    The pattern of growth should focus on development and intensification of existing development to revitalize existing communities, enhance community character, and protect remaining open space from unplanned development.

  • 3.

    The location of growth should not damage the natural environment or the character of reservation communities as a whole.

  • 4.

    The amount of growth should be based on reservation and local capacity limits, especially in light of the type, pattern, and location of expected growth, and steps should be taken to ensure that the amount of future growth is sustainable within the area.

  • 5.

    The type of growth, particularly new development, should respect the integrity of the reservation’s scenic, historic, and architectural character and its communities.

Regional Economy

Population and Labor Force 

SWO has a current enrollment of approximately 14,000 Tribal members, and just over 6,000 reside on the tribal lands. The US Census Bureau’s My Tribal Area feature shows that the population is 50% male and 50% female, with 8% under the age of 5, 73% over the age of 18, and 19% over the age of 65. Native American individuals living on the Lake Traverse Reservation have a poverty rate of 40.8%. This is nearly triple the U.S. poverty rate of 13.7%. The reservation’s economy relies on farming, ranching, casinos, and small industry. Individuals raise cattle, sheep, horses, and hogs, while the Tribe leases land to others for crop production and grazing. The Tribe owns and operates two casinos, which employ 500 people. State and federal agencies, organizations, and schools are located within reservation boundaries and serve as major employers for Indian and non-Indian communities alike. Despite these businesses there are few other available jobs, and one quarter of Lake Traverse tribal residents are unemployed. Tribal members earn, on average, $4,058 per year.

Long saddled with deep poverty and an unemployment rate exceeding 50%, SWO has come a long way economically in recent decades, operating two successful manufacturing companies and three casinos which – along with SWO government and the local TCU – now provide nearly 1,000 jobs to SWO members and other local residents. While SWO is among the largest employers in its region, in the early years of its economic resurgence it encountered an unexpected problem – many tribal members were struggling to keep their jobs, leading to a 70% turnover rate. In response, key SWO government and business players came together to analyze the issue, leading to SWO’s establishment of a holistic solution.

The Developing Productive Employees (DPE) program

DPE equips SWO members who have lost their jobs – or are in danger of doing so – with the soft skills and related resources they need to succeed in and sustain employment. Offered every three weeks, DPE’s intensive two-day training helps participants build a “toolbox” of healthy coping skills that they can use in the workplace, including “emotional intelligence,” managing stress, and “communicating for success.” The award-winning program has led to a decreased employment turnover rate among participants, and their decreased reliance on tribal social service programs like TANF.

High levels of unemployment are exacerbated due to the lack of manufacturers, diminishing retail businesses, and few employment opportunities within the existing private sector. The low level of pay for existing jobs adds to the high percentage of the unemployed labor force. Small family-owned farming operations provide a stable economic base in this area; however, technology, more efficient farm equipment, and modern farming practices have served to diminish the labor requirements of the past. The effect of fewer farms in this agricultural area has been illustrated in every economic sector of this area. 

Progress to alleviate poverty and reduce unemployment on the reservation is evident in the decrease in the unemployment rate over the past thirty years. However, careful, and methodological planning must take place to ensure a continuation of improved conditions. The tribe must take steps to foster its small business sector to capture the flow of money on the reservation that is being generated by those currently employed in order to create more jobs and more opportunities for the Native population.

Presently, the SWO Tribe is the largest employer in the area, with employment fluctuating between 1,550 and 2,000 people depending on the season and current employment needs.

Career opportunities are available in:

  • Indian Health Services

  • BIA

  • Tribal positions

  • Sisseton Wahpeton Housing Authority

  • Sisseton Wahpeton Community College

  • Tiospa Zina Tribal School (K-12)

  • Enemy Swim Day School (K-8)

  • Old Agency C-Store

  • Dakota Crossing Grocery Store

  • Dakota Western Corporation

  • Dakota Sioux Casino

  • Dakota Connection & C-Store

  • Dakota Magic Casino & C-Store

  • Fuel Inc

Just prior to the COVID-19 pandemic, the South Dakota Game, Fish, and Parks commissioned a study to estimate the regional and statewide economic activity generated by fish, wildlife, and boating resources statewide. The report, Economic Impact of Hunting, Fishing, Trapping, Boating, and Wildlife Viewing in South Dakota showed that SWO’s current absence from this type of tourist revenue represents a tremendous opportunity for future economic growth. Results reported a statewide 8.9 million days of fish, wildlife, and boating-related activities annually, with over $1 billion in retail sales annually related to this sector. Non-residents contribute over $294 million of these dollars, indicating the tourism sector is viable for focused expansion.

Infrastructure, Resources, and Services

  • Healthcare

    The Woodrow Wilson Keeble health care center is located east of Sisseton, South Dakota. This facility provides comprehensive outpatient services to tribal members. Other health facilities include the Coteau Des Prairies Hospital in Sisseton, SD. There are larger hospitals with more services provided that are located 60 miles south in Watertown, SD and 90 miles north in Fargo, ND. Air ambulance services are also available to transport patients to Fargo, ND and Sioux Falls, SD.

  • Climate

    The region lies within the continental zone, which covers most of the north central United States. This classification is characterized by warm summers and cold winters, with a July mean temperature of 78 degrees Fahrenheit (F) and a January mean temperature of 21 degrees F. Temperature extremes have ranged from -30 degrees F to I00 degrees F. The spring season may fluctuate from extremely wet to fairly dry. Hot winds and periods of prolonged high temperatures are characteristic in the summer season. Precipitation in this area averages 31 inches annually, while snowfall averages 22 inches annually. Snowfall is moderate and can be expected in November through March. The frost-free season averages 161 days in length.

  • Energy Consumption

    Five utility companies serve the Lake Traverse Reservation: Otter Tail Power, Lake Region Electric, Codington-Clark Electric, Whetstone Valley Electric, and Traverse Electric.

  • Public Safety

    The Lake Traverse Reservation is provided police protection and security by the SWO Tribal Police Department. Other municipal, county, and state police departments provide additional police protection.

  • Fire Protection

    Local area non-Native volunteer fire departments provide fire protection to the housing complexes. Local area BIA Fire Department handles some small fires with assistance from volunteer fire department.

  • Water Supply

    Tribal members on the Lake Traverse Reservation are hooked into the rural water systems, community wells, and independent wells. The water quality is high in iron and varies from hard to very hard. The SWO has contributed funds to BDM, a rural water systems provider for additional water resources for this area.

  • Environmental Quality

    The amount of vehicular traffic in residential and commercial area on the Lake Traverse Reservation does not have a significant effect on air quality. Water Resources, Floodplains, and Wetlands - Surface water resources within the Lake Traverse Reservation include rivers, streams, lakes, and wetlands. All aquifers and outwash groups in the area have either moderately hard or very hard water and are considered fresh to slightly saline. Municipalities and rural water systems currently provide most of the water used within the Lake Traverse Reservation, most of it from ground water sources. The glacial history of the area has led to a complex system of 11 glacial aquifers which can be seen on the map below.

  • Education

    The Sisseton Wahpeton Oyate Department of Education works collaboratively to educate and promote cultural awareness; preserve the Dakota language; strive for excellence in educational standards that meet or exceed state and federal standards; and develop strategies to increase persistence, retention, and graduation rates at all levels of education from preschool to college. SWO operates Early Head Start and Head Start programs and educates students K-12 at Enemy Swim Day School and Tiospa Zina Tribal School. A GED program is available for high-risk students. Post-secondary options are offered through Sisseton Wahpeton College. The Tribe leads education for youth and adults, offering standards-aligned instruction that reflects cultural values and traditions. Sisseton Wahpeton Oyate Tribe is able to educate students the indigenous responsive way.

  • Solid Waste

    Three sanitation vendors provide solid waste disposal services for tribal members. Roberts County Landfill is located seven miles northeast of Sisseton for solid waste disposal. This is currently the only landfill within the area.

  • Natural Resources

    The Lake Traverse Reservation has extensive natural resources that should be protected, conserved, utilized, and managed. Water, sand and gravel, agricultural, rangeland, and renewable energy have the potential to contribute to the tribe's economic diversification efforts. The resources must be inventoried, assessed, and entered into a database to facilitate planning. A number of glacier lakes provide an abundant source of recreation opportunities.

Sisseton Wahpeton Oyate EDA Planning Department | William Fish, EDA Planner | Contact

This Sisseton Wahpeton Oyate Comprehensive Economic Strategies Plan
was produced by Santicola & Company.