MINNEAPOLIS (AP) -- A Minnesota company that has pioneered indoor shrimp farming has chosen South Dakota as the location for its first production facility.

The mayor of Luverne, in southwestern Minnesota, calls the decision by Tru Shrimp Co . ``a gut shot.'' Mayor Pat Baustian says his city had ``no previous interaction'' with Tru Shrimp that suggested a Minnesota regulatory issue ``was going to be the real problem.''

Groundbreaking for the $45 million facility was expected this summer at the Luverne site. But Tru Shrimp executives discovered a Minnesota environmental rule about water discharge could have delayed construction by one to three years.

Chief executive Michael Ziebell says the company's timeline is to build the facility in 2019.

Tru Shrimp now plans to break ground in Madison, South Dakota, in June.

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