2 days ago
Politically tied loan request awaits state panel's decision
PIERRE, S.D. (KELO) — A Sioux Falls-based business that has significant political connections to the highest levels of South Dakota state government is seeking a $1.2 million low-interest loan from the state Board of Economic Development.
The board on Wednesday delayed a decision on the REDI loan application, however, until after CoAxis Energy Company can provide additional information to the Governor's Office of Economic Development that the board has requested.
The board operates as the decision-making arm of GOED.
CoAxis is a liquid natural gas supplier and system designer. Its president is Scott Stern. He was GOED commissioner during the latter years of the Daugaard administration and is president of family-owned Stern Oil Company, based in Freeman.
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Among others listed on the CoAxis website's leadership page is Dennis Daugaard, who served as South Dakota governor from 2011 through 2018.
Daugaard appointed Stern in 2016 as GOED commissioner. Stern stepped down in November 2018 as Daugaard's time as governor came to a close.
A business record on file at the South Dakota Secretary of State office shows that Stern established CoAxis in 2019, the year after he had returned to the private sector.
The CoAxis vice president is Trent Arlint. He is married to Republican Rep. Amber Arlint. Stern is her father.
Two of the state board's members, chair Jeff Erickson of Sioux Falls and Joy Nelson of Watertown, recused themselves from the discussion during the teleconference on Wednesday. Erickson said they serve on the board of directors for a bank that may be participating.
Erickson, Nelson and Daugaard are directors for American Bank & Trust. Erickson and Daugaard have also been involved with Standard Trust, a Sioux Falls-based investment company.
Gov. Larry Rhoden appointed Daugaard's son-in-law, Tony Venhuizen, as lieutenant governor earlier this year.
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