Lyman County Shuttle Train Access Road

Close

In August 2019, the South Dakota Transportation Commission approved a state loan to Lyman County for $2.3 million to build a 2.25-mile access road from Interstate 90 and SD 248 to Lyman County Road 14 and on to the new Dakota Mill and Grain (DMG) grain-loading rail terminal and agronomy center, in Presho, South Dakota. The road includes a bridge on 306th Avenue, 0.3 mile east of Presho. The Commission also approved a $600,000 Agri-Business Grant, used as a means for local governments to address road needs associated with new agri-businesses. The rebuilt gravel road, including one bridge, will allow better access for trucks to reach the DMG rail terminal in Presho. The current road is narrow, and the bridge does not adequately accommodate the weight of grain trucks. The loan is to be repaid to the South Dakota DOT by Lyman County using a tax increment financing (TIF) district of approximately $3 million, the first in the county. The tax increment that will repay the loan derives from the increased property value of the new grain-loading facility and other properties within the district. The need for the access road was stimulated by two TIGER Grants of $16 million and $12.7 million, respectively to the State of South Dakota to rehabilitate the state-owned Mitchell to Rapid City (MRC) branch rail line. The MRC line, rehabilitated in 2014 with another segment added in 2016, allows farmers to easily export their grain across the country. Rehabilitation of the line removed trucks from state highways and put the grain on rail, and a Dakota Southern / BNSF Shuttle Load partnership allows the railroad and shippers to load larger rail shuttle trains, which dramatically improves efficiency. Since the MRC Line was rehabilitated, over $115 million in new grain handling facilities, fertilizer storage, and agronomy centers have been built between Mitchell and Presho. These investments have significantly enhanced opportunities for farmers to reduce the transportation costs of bringing their products to market in central South Dakota. Improvements to roads accessing the rail terminals have been required. The road and bridge improvements are within a designated opportunity zone.

High