RAPID CITY, S.D. (KOTA) – House Speaker Jon Hansen, who is running for governor, is sounding the alarm on ties between two state economic officials and a company that has received tens of millions in state aid.
The House speaker is drawing his criticisms from a recent South Dakota Searchlight article.
The article centers on two individuals and their relationship to CJ Schwan’s, which has received a mix of state incentives to develop a $550 million food production plant in Sioux Falls.
One of the two men listed, Steve Westra, was the state commissioner of economic development in 2021, when the company was approved for an initial $6.7 million state grant. According to the report, Westra stepped down from his position in 2023 and was hired as a vice president of CJ Schwan’s one year later.
The article explains that since Westra joined the company in 2024, it has been approved for more than $60 million in additional aid. Now, Jon Hansen says he believes the state needs to lengthen the legal waiting period for state employees before they can work in private industry. The current waiting time is one year for state employees to work for companies with which they were involved.
“The guy left, he went to the company, and even after a year, the company was still pulling in funds from the Government trough, so obviously that time frame is not enough because you still have unfair and unethical influence that’s taking place at that level,” Hansen said.
CJ Schwan’s told the Searchlight that employment was not discussed with Westra while he was a state employee. Another individual pointed out in the article is Jeff Erickson, who the article states serves on both the state board of economic development and the board of directors for CJ Schwan’s. Erickson told the Searchlight that he abstains from any matters related to the company and that he has not financially benefited from the project in Sioux Falls. Hansen is still concerned about the situation.
“I’m glad that he’s recusing himself, but of course, all of the other board members who he’s friends with know that he’s, you know, a board member of that company or you know, those sorts of things, so the, there appearance of impropriety is definitely there, and I think there’s just undue influence on the other board members,” Hansen said.
State Response:
KOTA Territory News received the following statement from Bill Even, the commissioner of the Governor’s Office of Economic Development.
“The CJ Schwan’s project will deliver a significant and lasting benefit for South Dakota’s economy. The project includes approximately 650 full-time jobs, an initial $550 million private investment with room for future expansion, and the addition of a regional headquarters in Sioux Falls. Together, this makes the CJ Schwan’s project the largest single private investment in South Dakota history to date and strengthens long-term markets for South Dakota agricultural producers.
The state’s support for the project totals approximately $67 million, including $15 million structured as a loan that will be repaid, and the project has moved forward through established and transparent state processes. In addition, roughly $2 million in infrastructure investment supports the future development of Foundation Park in Sioux Falls, which will benefit businesses in addition to CJ Schwan’s. These improvements help position the area for continued growth and additional private investment.
CJ Schwan’s investment reinforces South Dakota’s ability to compete for large-scale, long-term projects, and the economic impact of this project will benefit the state well into the future.”
Support for the Project:
Ryan Budmayr, president and CEO of the South Dakota Chamber of Commerce and Industry, expressed his support for the project with KOTA Territory News on Tuesday.
“I think what’s getting lost in a lot of this conversation is just how lucky South Dakota is to have CJ Schwan’s in our state,” said Budmayr.
Budmayr pointed to the fact that the project is the biggest economic development investment in the state’s history.
Budmayr also said incentives like the ones highlighted in the article are important for attracting businesses.
“We don’t tax a lot, so we don’t have a lot to give, but the limited resources that we do have, we have to continue them in South Dakota; now is not the time to get rid of them,” said Budmayr.
Budmayr said he believes all South Dakotans want better jobs and higher wages, and with that, the state should keep the incentives it offers.
https://www.kotatv.com/2025/12/24/appearance-impropriety-is-definitely-there-south-dakota-house-speaker-is-concerned-over-state-ties-company-that-received-millions-aid/
