City of Tea

Comprehensive Plan Update

Analysis Review Meeting

February 28, 2024
Agenda

1. Scope + Schedule Review

2. Physical Profile
3. Demographic Profile
4. Economic Profile
5. Planning Boundary Discussion
6. What’s Next
Project Scope + Schedule
Physical Profile
270th St
Base Map
• Incorporated in 1906
• Approximately 1.529 square miles
• Convenient location along the

N Main Ave
western edge of I-29 south of Sioux
Falls Gateway Blvd

Heritage Pkwy

470th Ave
W Brian St

W 1st St
Physical Profile
270th St
Existing Land Use
• Predominantly residential with a
growing industrial/commercial base
and plenty of open space/undeveloped
areas (not all developable)

N Main Ave
Low-Density Residential 25.9%
Gateway Blvd

Heritage Pkwy

470th Ave
Medium-Density Residential 3.8%

Higher-Density Residential 2.1%

W Brian St

Commercial 7.1%

Industrial / Business Park 7.2%

W 1st St

Public 12.3%

Open Space 41.9% 41.6%

Physical Profile
270th St
Residential Land
• Majority of residential land is low-
density residential (single-family
detached homes)

N Main Ave
• Several pockets of medium and/or
higher-density residential
Gateway Blvd
Parcel Summary

Heritage Pkwy

470th Ave
Acres Units W Brian St

W 1st St

Low-Density Residential Medium-Density Higher-Density

Residential Residential
Physical Profile
270th St
Commercial / Industrial Land
• A few key corridors of commercial,
industrial, and business park near I-
29 and along Heritage Parkway, W
1st Street, and 271st Street.

N Main Ave
• Industrial/business park in
southeast Tea Gateway Blvd

Heritage Pkwy

470th Ave
W Brian St

W 1st St
Physical Profile

Parks
• Seven City Parks and one future park: Future
Heritage Park
• Tea City Park – 9.6 acres Howling Ridge Park Nine Mile Park
• Prairie Trails Park – 2.0 acres
• Tea Athletic Complex – 48.4 acres
• Howling Ridge Park – 2.3 acres
• Downtown Park - .53 acres
• 3 new unnamed parks – 20.3 acres
Level of Service Analysis
Pinnacle Park (Planned)
Tea City Park
• Total Park Acres: 83.2 acres
• Total Population (2022 est.): 5,922
• Total Park Level of Service (LOS): 14.05 Downtown Park
Tea Athletic Complex
• Recommended Total Park LOS: 10.5
Prairie Trails Park
Physical Profile
270th St
Zoning

N Main Ave
Gateway Blvd

Heritage Pkwy

470th Ave
W Brian St

W 1st St
Physical Profile
270th St
School District Boundaries
• Covers approximately 22 sq miles
• Includes part of Sioux Falls, Tea, and
Unincorporated Lincoln County south

N Main Ave
of Tea

470th Ave
• Three elementaries, one middle school,

Heritage Pkwy
Gateway Blvd
and one high school

W Brian St

W 1st St

Tea Area School District

Harrisburg School District
Lennox School District
Physical Profile
270th St
Natural Resources
• Some floodplain within city limits
and in growth areas
• Several detention ponds throughout

N Main Ave
town
• Atkins Waterfowl Production Area at Gateway Blvd
edge of city limits

Heritage Pkwy

470th Ave
• Numerous wetlands throughout the
planning growth area W Brian St

W 1st St
100-Year Floodplain
Floodway
500-Year Floodplain
Wetlands
Demographic Profile

Population Growth
• Nearly 2,500 new residents since 2010 (71.5% growth)

2022 POPULATION ES TIMATES POPULATION C HANGE 2010-2022

Source: U.S. Census Bureau Source: U.S. Census Bureau

10, 919
101. 1%
2,686

7, 157 71. 5%
5, 922
3,598
2,469 32. 6%
2, 419 8,233
419
21. 0%
3,453 3,559
2,000
Tea Harrisburg Beresford Brandon
Tea Harrisburg Beresford Brandon

Pop 2010 New Residents 2010-2022

Demographic Profile

Population Estimate Reconsidered

• Reviewed parcel data, household characteristics, and average household size to estimate
current 2024 population, which we estimate at closer to 7,600 residents

2022 POPULATION ES TIMATES

Source: U.S. Census Bureau
Demographic Profile

Population by Age
AGE GROUP 2022 C OMPAR IS ON
• Tea is younger community than overall metro area Source: U.S. Census Bureau ACS 2022 5-Yr Estimates

Tea 36.3% 29.7% 28.0% 6.0%

Harrisburg 33.6% 39.1% 23.6% 3.7%

MEDIAN AGE 2022 C OMPAR IS ON
Source: U.S. Census Bureau ACS 2022 5-Yr Estimates Beresford 31.3% 21.2% 28.9% 18.6%

37. 6 38. 2 37. 5

34. 9 35. 9
Brandon 31.0% 21.1% 36.2% 11.7%
30. 2 30. 8

Sioux Falls 27.0% 30.9% 28.6% 13.5%

Sioux Falls Metro 27.9% 28.4% 29.8% 13.9%

South Dakota 27.1% 26.2% 29.4% 17.3%

Tea Harrisburg Beresford Brandon Sioux Falls Sioux Falls South

Children & Teens Younger Adults Older Adults Seniors
Metro Dakota
0-19 years 20-39 years 40-64 years 65+ years
Demographic Profile

Household Composition
• Majority of households are families (and 68% of families have children at home)
• Average household size exceeds nearby communities, state and metro

HOUS EHOLD TYPE – TEA, S D (2022) AVER AGE HOUS EHOLD + FAMILY S IZES – TEA, S D (2022)
Source: U.S. Census Bureau ACS 2022 5-Yr Estimates Source: U.S. Census Bureau ACS 2022 5-Yr Estimates

220 80

Households Living Alone

Families

1,689 Non-Family Households 2. 98 pers ons 3. 17 pers ons

Average Household Size Average Family Size
Demographic Profile

Household Composition
• The current housing stock is primarily comprised of owner-occupied units
• Both average household sizes are similar in composition, further supporting the heavy family-presence
in Tea today

HOUS EHOLDS BY TENUR E – TEA, S D (2022) AVER AGE HOUS EHOLD S IZE BY TENUR E – TEA, S D (2022)
Source: U.S. Census Bureau ACS 2022 5-Yr Estimates Source: U.S. Census Bureau ACS 2022 5-Yr Estimates

29. 3%

Owner-occupied housing units

Renter-occupied housing units

3. 01 pers ons 2. 89 pers ons

70. 7% Average Owner- Average Renter
Occupied Household Occupied Household
 Demographic Profile

Household Incomes HOUS EHOLD INC OME BY BR AC K ET C OMPAR IS ON – TEA, S D (2022)

Source: U.S. Census Bureau ACS 2022 5-Yr Estimates
• Higher median household income
than region/neighbors
Tea Harrisburg Beresford Brandon Sioux Falls Sioux Falls Metro South Dakota
Tea
Harrisburg
MEDIAN HOUS EHOLD INC OMES
Beresford
Source: U.S. Census Bureau ACS 2022 5-Yr Estimates
Sioux Falls
Tea $99,153 Sioux Falls Metro
South Dakota
Harrisburg $89,966

Beresford $71,343

Brandon $101,747

Sioux Falls $71,785

Sioux Falls Metro $78,552

Less than
    Less than $10,000 to
    $10,000 to     $15,000
$15,000 to
to     $25,000
$25,000 to
to     $35,000
$35,000 to
to     $50,000
$50,000 to
to     $75,000
$75,000 to
to     $100,000
$100,000 to
to     $150,000
$150,000 to
to     $200,000
$200,000 or
or
South Dakota $69,457 $10,000
$10,000 $14,999
$14,999 $24,999
$24,999 $34,999
$34,999 $49,999
$49,999 $74,999
$74,999 $99,999
$99,999 $149,999
$149,999 $199,999
$199,999 more
more
Demographic Profile

Housing Units ES TIMATED UNITS IN S TR UC TUR E – TEA, S D (2022)

Source: U.S. Census Bureau ACS 2022 5-Yr Estimates
• Majority of housing structures are single-family
detached homes (68%)
1-unit, detached 68.5%
• Some other housing diversity ranging from
medium- to higher-density residential
1-unit, attached 7.3%

2 units 2.5%

3 or 4 units 6.0%

5 to 9 units 7.2%

10 to 19 units 6.3%

20 or more units 2.2%

Demographic Profile

Housing Units in Structure YEAR S TR UC TUR E BUILT – TEA, S D (2022)

Source: U.S. Census Bureau ACS 2022 5-Yr Estimates
• Historic community, but most housing built in the past
30 years, as Sioux Falls metro booms
Built 2020 or later 5.4%

• Approximately 75% estimated to be built between 1990

and 2019 Built 2010 to 2019 24.8%

Built 2000 to 2009 20.0%

Built 1990 to 1999 30.8%

Built 1980 to 1989 5.0%

Built 1970 to 1979 9.4%

Built 1960 to 1969 2.2%

Built 1950 to 1959 0.9%

Built 1940 to 1949 0.0%

Built 1939 or earlier 1.4%

 Demographic Profile

Home Values
• Median home values higher than region
OW NER -OC C UPIED HOME VALUES – TEA, S D (2022)
Source: U.S. Census Bureau ACS 2022 5-Yr Estimates

$1,000,000 or more 0.0%

MEDIAN OW NER -OC C UPIED HOME VALUES 2022

Source: U.S. Census Bureau ACS 2022 5-Yr Estimates $500,000 to $999,999 4.3%

$300,000 to $499,999 28.4%

Tea $268,500

Harrisburg $253,800 $200,000 to $299,999 48.7%

Beresford $196,900 $150,000 to $199,999 14.4%

Sioux Falls $250,000 $100,000 to $149,999 3.5%

Sioux Falls Metro $255,400 $50,000 to $99,999 0.0%

South Dakota $219,500 Less than $50,000 0.8%

Demographic Profile

Housing Costs – Owner Occupied

OW NER -OC C UPIED W ITH A MORTGAGE
• Most homeowners with a mortgage pay between
$1,000 and $2,000 per month in housing costs MONTHLY HOUS ING C OS TS – TEA, S D (2022)
Source: U.S. Census Bureau ACS 2022 5-Yr Estimates

Median monthly housing costs for $3,000 or more 4.1%

owner-occupied units: $1,644 $2,500 to $2,999 7.5%

$2,000 to $2,499 16.0%

$1,500 to $1,999 37.4%

$1,000 to $1,499 31.5%

$500 to $999 3.5%

Less than $500 0.0%

Demographic Profile

Housing Costs – Owner Occupied

• Most renters are paying between $1,000 and $1,500 in rent per month

OW NER -OC C UPIED W ITH A MORTGAGE

Median rent: $1,131 MONTHLY HOUS ING C OS TS – TEA, S D (2022)
Source: U.S. Census Bureau ACS 2022 5-Yr Estimates

$2,000 or more 0.0%

$1,500 to $1,999 13.3%

$1,000 to $1,499 55.2%

$500 to $999 22.0%

Less than $500 9.4%

Demographic Profile

Housing Costs Less than 16% of homeowners

• Cost Burdened = paying 30% or more of monthly with a mortgage and 32% of
household income on housing costs (HUD)
renters are cost burdened
• Renters more cost burdened but 34% pay less than 15%

OW NER -OC C UPIED % C OS T BUR DENED 2022 R ENTER -OC C UPIED % C OS T BUR DENED 2022
Source: U.S. Census Bureau ACS 2022 5-Yr Estimates Source: U.S. Census Bureau ACS 2022 5-Yr Estimates

Less than 20% 49.2% Less than 20% 48.3%

Between 20-24.9% 19.6% Between 20-24.9% 10.7%

Between 25-29.9% 15.2% Between 25-29.9% 8.9%

Cost Burdened Cost Burdened

Between 30-34.9% 5.9% Between 30-34.9% 17.5% Not Cost Burdened
Not Cost Burdened

35% or more 10.0% 35% or more 14.7%

 Demographic Profile

Employment Overview
• Major employment centers spread
throughout the Sioux Falls metro

• Number of total jobs in Tea: 2,586

• Number of Tea resident workers: 3,270

EMPLOYMENT DENS ITY – S IOUX FALLS METRO (2021)

Source: OnTheMap 2021, U.S. Census Bureau LEHD
Economic Profile
JOBS BY INDUS TRY – TEA, S D (2022)
Tea + Resident Based Source: U.S. Census Bureau ACS 2022 5-Yr Estimates
Jobs
Agriculture, Forestry, Fishing & Hunting 21
• Construction Mining, Quarrying, and Oil & Gas Extraction 5
Utilities
• Manufacturing 2322
Construction 493 236
• Wholesale Trade Manufacturing 356 249
Wholesale Trade 368 174
• Education Retail Trade 360 435
Transportation and Warehousing 44 103
• Retail Trade Information 17 48

Tea Resident Jobs Finance and Insurance 35 267

Real Estate and Rental and Leasing 33 45
• Retail Trade Professional, Scientific, and Technical Services 27 163
Management of Companies and Enterprises 6 56
• Health Care + Social Administration & Support, Waste Management and Remediation 121 115
Assistance Educational Services 273 239
Health Care and Social Assistance 130 626
• Accommodation & Arts, Entertainment, and Recreation 14 52
Food Services Accommodation and Food Services 199 214
Other Services (excluding Public Administration) 68 89
• Finance & Insurance Public Administration 19 111

Work Home
Economic Profile

Commuting Trends IN/OUT C OMMUTE PROFILE – TEA, S D (2021)

Source: OnTheMap 2021, U.S. Census Bureau LEHD
• Relatively few both live and work in
Tea
• Many workers live outside of Tea and
vice versa
• Can indicate job worker mismatch

IN-C OMMUTER S LIVE + W OR K OUT-C OMMUTER S

IN TEA

2, 242 344 2, 926

Economic Profile

Commuting Patterns
• Where are people going for work?

W HER E W OR K ER S LIVE – TEA, S D (2021) W HER E R ES IDENTS W OR K – TEA, S D (2021)

Source: OnTheMap 2021, U.S. Census Bureau LEHD Source: OnTheMap 2021, U.S. Census Bureau LEHD

1. Sioux Falls, SD 47.40% 1. Sioux Falls, SD 67.30%

2. Tea, SD 12.60% 2. Tea city, SD 9.00%
3. Harrisburg, SD 2.70% 3. Sioux City, IA 1.30%
4. Lennox, SD 2.60% 4. Harrisburg city, SD 1.10%
5. Brandon, SD 1.70% 5. Brookings, SD 1.00%
6. Dell Rapids, SD 0.80% 6. Brandon, SD 0.90%
 Economic Profile

For Sale Homes Sold in PAST YEAR

Single-Family Housing
• Average Sale Price: $412,971.50
• Average Year Built: 2009

Townhomes
• Average Sale Price: $303,177.80
• Average Year Built: 2020

Source: RedFin
 Economic Profile

For Sale Homes TODAY by Type

• Mix of single-family detached,
townhomes, and lots

Source: RedFin
 Economic Profile

Homes for Sale Today Summary

Single-Family Residential Townhomes

• Average Price: $539,260 • Average Price: $468,521.10
• Average Size: 2,045.3 SF • Average Size: 1,856.8 SF
• Average Year Built: 2018 • Average Year Built: 2023

Source: RedFin
 Economic Profile

Median Sale Price Trends

• Steady upward trend of
median sale price edging
towards $400k

image

Source: RedFin
 Community Snapshot

Multi-Family – Local + Regional

• Estimated 402 units in 13 buildings
• Average 31 units / building
• 32 vacant units
• 1.2% of Sioux Falls metro units
• 8.0% vacancy rate (increase 5.6%)
• Sioux Falls Metro: 10.9%
• $1,108 / unit (+1.3%)
• Sioux Falls Metro: $1,044 / unit)
• $102k / unit market sale (-7.4%)
• Market cap rate 8.1% (+0.%)
• Sioux Falls Metro: 7.7%
• Asking Rents:
• Studio - $820
• 1 Bedroom - $1,023
• 2 Bedroom - $978
• 3 Bedroom - $1,336

Source: CoStar
 Economic Profile

Retail – Local + Regional

• 200k SF of inventory
• 0 under construction
• 24 buildings
• Sioux Falls Metro: 16.1 million SF
• Around 1.2% of metro retail SF in Tea
• 3.2% vacancy rate
• 6.5k vacant SF
• Sioux Falls Metro: 2.3%

• $14.50 / SF asking rent (+1.4%)

• Sioux Falls Metro: $16.77 / SF

• $176 / SF market sale price (+4.0%)

• Sioux Falls Metro: $152 / SF

• 7.2% Market Cap (-0.1%)

• Sioux Falls Metro: 7.4%

Source: CoStar
 Economic Profile

Hospitality – Local + Regional

• 50 rooms in 1 hotel
• Sioux Falls Metro: 5,775 rooms
• 0.86% of Sioux Falls Metro hotel rooms in Tea

• 68.7% 12-month occupancy rate

• Sioux Falls Metro: 63.3%

• $111.66 average daily rate GrandStay Hotel & Suites

• Sioux Falls Metro: $104.10

• Revenue per available room $56.12

• Sioux Falls Metro: $47.78

• $94k market price per room

• Sioux Falls Metro: $105k / room

• 9.8% Market Cap Rate (+0.4%)

• Sioux Falls Metro: 9.6%

Source: CoStar
 Economic Profile

Office – Local + Regional

• 33.7k SF of inventory
• 0 under construction
• 7 Buildings
• Sioux Falls Metro: 11.4 million SF (+2.4%)

• 0% vacancy rate
• Sioux Falls Metro: 4.9%

• $19.03 market in rent / SF (+1.5%)

• Sioux Falls Metro: $21.40 / SF

• $108 / SF sale price (-3.6%)

• Sioux Falls Metro: $125 / SF

• 10.9% market cap rate

• Sioux Falls Metro: 10.5%

Source: CoStar
 Economic Profile

Industrial/Flex – Local + Regional

• 885k SF of inventory (+6.4%)
• 73 buildings
• 46k SF under construction
• Sioux Falls Metro: 16.7 million SF
• Tea has 5.3% of market share

• 3.4% vacancy rate (-3.7%)

• 29.7k SF vacant
• Sioux Falls Metro: 1.9%

• $8.16 / SF market asking rent

• Sioux Falls Metro: $8.27 / SF

• $72 / SF market sale price

• Sioux Falls Metro: $69 / SF

• Market cap rate: 10.6%

• Sioux Falls Metro: 10.2%

Source: CoStar
Economic Profile

Population Projections POPULATION PROJEC TIONS FROM 2018 UPDATE

Source: U.S. Census Bureau
• Previous population projections
• Similar trajectory of the average

11,689

9,835

8,163
5,922
5,714 6,710
5,475
4427

2015 2020 2025 2030 2035 2040

Economic Profile
POPULATION PROJEC TIONS – TEA, S D (2022-2050)
Population Projections Source: Confluence with inputs from U.S. Census Bureau
25,000

• New population projections

• Average 2050 population: 20,000
21,225

17,767 residents 17,767

• Based on average 14,556

household size of 2.98 15,000
11,919
• This would necessitate 9,847

5,962 total households 10,000 8,140

11,058

• Existing households: 1,989 5,922

5,000

Added households by 2050:

3,973 (152 HH / year)
0
2022 2030 2035 2040 2045 2050

Average Annual Change 2010-2022 Average Annual Actual Change 10-15 Simple Linear Average
Economic Profile

Population Projections POPULATION PROJEC TIONS – TEA, S D (2024-2050)

with Updated 2024 Base Source: Confluence with inputs from U.S. Census Bureau and Lincoln County Tax Assessor

Year
30,000
• Average 2050 population:
20,838 residents
25,000
• Based on average
household size of 2.98 20,000
20,838
17,166
• This would necessitate 14,169
6,993 total households 15,000
11,711
• Existing households: 2,438 9,682
10,000
7,626

Added households by 2050:

4,555 (175 HH / year) 5,000

0
2024 2030 2035 2040 2045 2050

Average Annual Change 2010-2022 Average Annual Actual Change 10-15 Simple Linear Average
Planning Boundary Discussion

2018 Planning Boundary vs

Proposed 2024 Planning Boundary
• Extend the plan boundary south and 85th Street
west to 274th Street and Highway 17
• Potential expansion across I-29 and
north of 85th Street

476th Avenue
Highway 17 274th Street
Planning Boundary Discussion

Growth Tiers
• Tier 1 – Developable Today 4
• Tier 2 – Developable Short-Term
2
• Tier 3 – Development in 8-10+ years
• Tier 4 – Long-term growth strategy
with significant investment
3 1 3

2 3

4
What’s Next

Near-Term
• Project Branding
• Online Engagement Website
• Public Visioning Workshop

Mid-Term
• Input Review with Steering Committee
• Draft Review!