Reversing downtown decline in Centerville, South Dakota

In a significant triumph against rural decline, the small town of Centerville, South Dakota has established itself as a statewide leader in downtown revitalization. Located 40 miles southwest of Sioux Falls, this community of about 900 residents has transformed its struggling business district through innovative policy and committed local leadership.

A decade ago, Centerville’s downtown faced a common rural problem: 14 vacant storefronts in a business district spanning just a few blocks. Empty buildings were being used for storage or deteriorating toward condemnation, creating an appearance of decline that deterred visitors, potential residents, and entrepreneurs.

“Perception-wise, as a small town, you’re either growing or you’re dying, and there isn’t much in between,” said Jared Hybertson, Centerville’s economic development coordinator.

The turning point came in 2017 when the Centerville City Council adopted a vacant buildings ordinance that has since become a model for municipalities across South Dakota. The policy established a registration system for empty properties, coupled with building inspections, warning letters, and potential fines to motivate property owners to either improve their buildings or sell them to make way for new development.

Armed with this regulatory tool, Hybertson and a dedicated team of local officials and business leaders have orchestrated a remarkable transformation. Over approximately ten years, the Centerville Development Corporation has purchased and rehabilitated or demolished nearly a dozen dilapidated or abandoned buildings, many of which now house thriving new enterprises.

The revitalized downtown showcases a women’s clothing boutique, a salon, a tattoo parlor, a discount retail store, two restaurants, and a historic building converted into a combination museum, art gallery, and visitors center. Future plans include loft housing and an event center, further expanding the district’s offerings and appeal.

This resurgence has made Centerville a destination for visitors, strengthened the local economy, and increased sales tax revenue—providing tangible evidence of the revitalization’s success.

“It’s really been a joint citywide effort,” Hybertson explained. “The ordinance definitely allows us to give property owners a little push to get something done with those properties.”

Paula Jensen, vice president of community development group Dakota Resources, notes that rural communities throughout South Dakota have experienced population and economic declines in recent decades. Towns with numerous vacant downtown buildings often project a sense of general deterioration that can discourage newcomers and economic growth.

While Jensen acknowledges that small-town downtowns may never return to their mid-20th century heyday, attracting new businesses can stimulate community growth and vitality.

“This isn’t going to take us back to the 1950s when everybody came to town on Wednesdays and Saturdays to sell their eggs and their cream,” she said. “But the very purpose of maintaining Main Streets is getting business owners into those buildings to rejuvenate downtowns and make them lively places again.”

Dakota Resources has recognized Centerville’s success, inviting Hybertson to share the town’s approach at a community meeting in Murdo. There, he presented the vacant building ordinance to interested leaders from communities across the state.

Implementing the ordinance requires a delicate balance of enforcement and relationship building. Hybertson describes their approach as “an iron fist in a velvet glove,” combining regulatory pressure with genuine kindness and willingness to communicate and compromise with property owners.

“It’s really about fostering a relationship and building trust because a lot of times these owners just don’t know what to do with their buildings,” Hybertson said.

This approach enabled the transformation of an aging historic building into a museum and community center. After numerous discussions, the Sioux Falls-based owner agreed to sell for $6,000. With approximately $200,000 in grants and development corporation funding, the renovated building now serves as a central gathering place and tourist destination.

Other communities are following Centerville’s lead, but implementation can be challenging in a state that strongly values property rights. The town of Hurley, with 385 residents and located 30 miles southeast of Sioux Falls, adopted a similar ordinance in October 2024, but has struggled with enforcement due to limited municipal staffing.

Despite these challenges, business owners like Christen Cunningham demonstrate the impact of downtown revitalization. After relocating from Colorado to her family’s hometown, Cunningham established Christen & Company, a women’s clothing boutique in a building previously used by the town historian to store artifacts.

“To this day, people tell me they can’t believe this boutique is operating in Centerville,” Cunningham said.

Her entrepreneurial vision extends to renovating the store’s second floor into short-term rental units and transforming the former bowling alley next door into additional retail or event space.

Through downtown redevelopment and adaptive reuse of existing structures, Centerville has created a community that honors its past while building toward a promising future.

“The biggest blessing is the relationships we’re making here,” Cunningham reflected. “My mission is to make women feel important and valued and that they’re seen so they feel better when they leave than they did when they came in.”