Jim James – Santee Construction Giant

Jim James

PART II
As introduced in Part I of this series, Henry “Jim” James, Santee Sioux of Nebraska through dint of tenacity became one of the largest Indian contractors in America, his career spanning decades (the late 1970’s through the 90’s). This continues his story.
While serving the Santee Sioux Tribe for about six years in the Community Action Program. EDA Director and Tribal Chairman (he wasn’t compensated for that), Jim helped that abjectly poor Tribe gain some sorely needed employment, the crown jewel an Industrial Park where a pharmaceutical plant was built, hiring and training 55 tribal members. “They were all good workers”, Jim noted. “Given an opportunity most are. Every reservation has a skilled workforce, especially in the trades: carpenters, electricians, roofers, plumbers, masons, etc. It’s just that many don’t like to travel for work and leave their families.”
Along the way, he made many valuable contacts in federal and state agencies, always ready to pick someone’s brain. During the time, several agencies such as Housing and Urban Development (HUD), the Indian Health Service (IHS), Department of Education (DOE) and Economic Development Administration (EDA) were in a mini-construction boom: Money was suddenly available to address the critical housing shortages on Reservations and long overdue; hospitals, clinics and schools were also being built and there were many contacts for BIA roads, IHS utilities, office buildings and community structures.
More critically Indian preference for contracting was instituted and being used – the goal to provide opportunity to Indian businesses. Rightfully so, for the projects were for the benefit of Indian people and on the reservations where they lived. Observing this, Jim was disappointed to see the development of “front” companies, whereby a white construction company would take an Indian person into partnership, creating 51% Indian and 49% white ownership of companies (on paper that is) in order to take advantage of Indian preference and gain jobs and what were often very lucrative profits on Indian reservations. “I’m not saying there weren’t some good companies like that,” he remarked, “and I don’t blame people who got caught up in it. But overall, in these ‘front’ operations, the Indian was only a liaison to get the contracts, had little to do with the actual day-to-day work and in the end, walked away with only a few coins in their pockets. I always thought there was a way to do it legitimately.”
At Santee, he also had first-hand problems with non-Indian contractors who would not hire local tribal help. Then he decided they could a better job by hiring local people, even training if necessary, an early proponent of the Tribal Employment Rights Offices (TERO) concept who work to that end. “I always had good luck with TERO,” he said. “They know the local work force on their reservations. Big white contractors usually only want to fill a ‘quota’, but I wanted the whole crew to be local, except for my superintendents who were Indian too.”
Later, with many construction projects under his belt, James received an award from TERO for consistently hiring and using Indian subcontractors.
After years of working with federal agencies, Jim used his contacts. “I was networking before they had a word for it,” he chuckles. Furthermore, he became well regarded in his field, once invited as keynote speaker at a national EDA conference to share the Santee success story. “Suddenly, looking out at a sea of faces. I realized I didn’t have any notes,” he laughs. However, as plain-spoken man he delivered the main point plainly “Indians can do this kind of work just as good as anybody. All we need is little leg up.”
So, with that in 1977, Jim plunged into the hurly-burly, highly competitive and sometimes cutthroat world of construction contracting. He proudly named his new company Isanti Construction, in honor of the Santee Sioux. Though it was a major and somewhat risky move with no guarantee, his wife Elaine and family backed him to the hilt. They knew that Jim was like a bulldog, sinking his teeth into whatever he tackled.
A barrier to many would-be minority contractors is financing. Jim solved that by getting a bank loan for startup, putting all of his personal assets on the line. He then secured a BIA 90% loan guarantee inching toward the financial capacity to get sizeable contracts.
His first big contract was on the Fort Peck Reservation, MT a HUD 25-unit housing development scattered across that large tribal territory. He developed a close working relationship with then Tribal Chairman, Norman Hollow (also a legend in Indian Country) and with tribal and HUD approval, built Boise Cascade modular units. The Fort Peck Tribes were lavish with recommendations which greatly helped Isanti leapfrog to numerous other projects clear across Indian country.
Over the years Isanti construction completed projects in Nebraska, South Dakota, North Dakota, Montana, Florida, Wyoming, Nevada, California and Arizona. Along the way, the company under James’ leadership was faithfully committed to local labor. The goal was to use at least 60% local labor on every tribal project and often they exceeded those goals; at one Pine Ridge project they utilized 100% local labor, completing 284 roofings in 100 days. For that, Isanti received the HUD Minority Contractor Utilization Award and was featured in many newspaper articles for participating in local training programs.
Isanti Construction was on a roll, employing hundreds of Native people. Jim says that during those times, they routinely issued more than 300 W-2s each year. Yet, to him, it was never about the numbers, he knew and worked alongside these people personally, making life-long friends in the process across the span of Indian Country. One for example was Joe Genese, Pine Ridge “one of the best concrete guys in the industry’. Later James helped Genese get financing for his own business. He also mentioned many others, but this article is too limited to name them all. Suffice it to say that James left his mark not only in buildings but in people’s lives.
Next week, James looks back at this amazing ride to glean some advice for other aspiring Indian businesspeople.

(Clara Caufield can be reached at acheyennevoice@gmail.com)

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