DTSF Retail Incubator Program

DTSF Retail Incubator Program

Overview
The purpose of the Downtown Sioux Falls, Inc. (DTSF) Retail Incubator Program is to create vibrancy and ensure a healthy business mix in downtown by supporting new retail concepts. The program is available to retail businesses new to the central business district. Retailers may choose any location downtown, as long as the property owner agrees to the terms and conditions of the program.

This program is offered through DTSF’s Business Retention & Recruitment Committee. DTSF administers the program and expressly reserves the right to amend, modify, or terminate the program at any time.

Program Benefits
Businesses accepted into the DTSF Retail Incubator Program will receive the following benefits:

18 months of subsidized rent on the following schedule:

  1. Months 1-6: 50% subsidy or $830/month maximum
  2. Months 7-12: 33% subsidy or $560/month maximum
  3. Months 13-18: 17% subsidy or $275/month maximum


Training in the following disciplines:

  1. Merchandise Management
  2. Marketing
  3. Human Resources
  4. Financial Management
  5. Customer Service

Business to business mentoring program with a successful downtown business.


Program Conditions

Retailers accepted into the program will be subject to the following conditions, which are required in an effort to ensure success:

  1. Retailer shall participate in all training and mentoring programs offered by DTSF as listed above
  2. Retailer shall be open for business a minimum of 6 days per week with hours of operation extending until at least 8pm on weekdays.
  3. Retailer shall obtain the services of a bookkeeper/CPA acceptable to DTSF.
  4. Retailer shall meet once every quarter with a business mentor, who shall have access to information on sales, inventory and expenses one week prior to meeting.
  5. Retailer shall meet with DTSF Executive Director annually to share sales, inventory and expenses for macro tracking.
     

Program Terms and Conditions

  1. This program is limited to retail businesses newly locating in the downtown district of Sioux Falls, SD that will be providing new or underserved products and/or services to the downtown district (as determined by DTSF). For the purpose of the program, a “retail business” is defined as a business in which a majority of the floor space is dedicated to the display of products available for sale on the premises.
  2. The maximum rental subsidy over 18 months shall be $10,000.
  3. Retailer shall remain in continuous operation within the downtown district for three (3) years from date of opening. Retailers who relocate outside the downtown district before this time shall repay 100% of the rent subsidies received by the retailer prior to relocation. DTSF also reserves the right to require repayment of 100% of the rental subsidies paid to any business that fails or goes out of business prior to the completion of the three (3) year program requirement.
  4. Applications for the program will be accepted based on the funds available. All applications are considered on a case-by-case basis and DTSF retains sole discretion to accept or reject any application. Retailer acknowledges and agrees that completing an application does not guarantee acceptance into the program, and retailer shall not rely on acceptance into the program when making business decisions, including the lease of the rental property, purchase of merchandise, hiring of staff, etc.


Application Process

  1. Applicants must submit application and all attachments to DTSF, including a written business plan.
  2. Business Recruitment & Retention Committee (BRRC) meets to review applications and make recommendations to the DTSF Board.
  3. DTSF Board reviews application and  committee recommendations.
  4. If accepted into program, business has 90 days from DTSF Board approval to be open and operational.
  5. Ongoing training and mentoring begin once business is open and operational.


Additional Information

  1. Rental subsidy payments shall begin the month that the approved retail business is scheduled to open.
  2. The property owner is the intended beneficiary of incubator subsidy.

 

To view a listing of all available property downtown, click here.