Been seeing discussion about this on both SDSUFans and the USD board. Augustana in Sioux Falls reportedly will recieve a 150 million dollar donation from Sanford, not sure if Denny or the company, and will move all sports to D1. I've put this on the FCS discussion board as they'd be going non-scholly for football and joining the Pioneer.
link to the SDSU forum
Link to USD forum
This is probably just Sioux Falls reporters making this rumor up, they'd love to have a D1 school down there.