Progress 2021 Economic Opportunity

Progress

Economic Opportunity

Albert Lea Tribune

Saturday, February 27, 2021

Amber Larson opened Lush Hair Salon in October and was preparing to open Lush Beauty Lounge by February. Sarah Stultz/Albert Lea Tribune

Helping clients look and feel

THEIR BEST It was a busy year for one Albert Lea woman who opens not one, but two businesses

By Sarah Stultz

sarah.stultz@albertleatribune.com

Tribune Albert Lea

Larson colors the hair of a client in January at Lush Hair Salon.

I

n a challenging time for was going to be able to rent the buildmany businesses throughout ing for the Beauty Lounge until she had already started the nation because of Lush Hair Salon, at 220 E. Seventh COVID-19, Street, but she has Albert Lean Amber had her eyes set on Larson is taking her the space for some dream and running time. with it.

She said she Larson in October started gutting opened Lush Hair the building, off of Salon in the former West Front Street, Southside Barber in September to Shop, and in Februmake way for her ary was expected to business, and then open Lush Beauty she has redecoratLounge, which will ed it and is seeking not only be a salon to make it an envibut will offer masronment that is not sage therapy and only uplifting for aesthetician serclients, but for the — Amber Larson vices, as well. staff there, as well.

Larson, who has worked at several Albert Lea salons in the past, said she didn’t know she See BUSINESS, Page 2

“I’m envisioning a place where women — staff, stylists and guests — they’re going to want to come because the energy is great.”

What’s inside?

Meet the management team: Crystal Miller: Publisher 379-3420 | crystal.miller@albertleatribune.com Sarah Stultz: Editor 379-3433 | sarah.stultz@albertleatribune.com Krista Bell: Circulation Manager 379-3421 | krista.titus@albertleatribune.com Lisa Foley: Business Manager 379-4324 | lisa.foley@albertleatribune.com Terry Thissen: Pressroom Manager 379-9854 | terry.thissen@albertleatribune.com Offices: 808 W. Front St. Albert Lea, MN 56007 Phone: 507-373-1411 Fax: 507-373-0333 Website: albertleatribune.com Want to subscribe or moving?

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Shifting their models

Rihm Kenworth relocates

Reversing a trend

Albert Lea businesses adapt their plans during height of pandemic. Page 4

Company already seeing business increase at new location. Page 6

First year of new Wells Liquor Depot sees big success. Page 8

Page 2 | AlbertLeaTribune.com | Progress 2021 | ECONOMIC OPPORTUNITY | saturday, February 27, 2021

Lush Beauty Lounge will have room for six stylists, as well as a massage therapist. It will also offer aesthetics, including eye lashes, facials, body waxing and makeup. Sarah Stultz/Albert Lea Tribune

Business Continued from Front Page

“I’m envisioning a place where women — staff, stylists and guests — they’re

going to want to come because the energy is great,” she said.

There is room for six stylists — stylists rent their space — along with at least one massage

therapist, and possibly a second. The business will also offer aesthetics, including eye lashes, facials, body waxing and makeup — both regular and airbrush makeup for

The building for Lush Beauty Lounge was completely gutted and redecorated. events such as proms and weddings.

There’s room for three stylists at the initial Lush Hair Salon site.

Larson said all of the employees at both sites are self-employed.

“I’m just supplying them the vessel to their craft,” she said.

A single mom of three children, Larson said she wanted to show her children an example of independence and of going after her dreams.

“If you have a goal or a dream, you don’t need someone else to fulfill that,” she said. “That’s

my goal for my stylists as well.”

Having gone through challenges in her own life, she said she wants to help empower others who have been in her shoes.

“Albert Lea is a small town, but we can all be successful and share each other’s successes and victories,” she wrote on the business’s Facebook page.

“I want the new normal in my salons to be growing strong, successful, independent women who can not only pay all their bills on time but have no problems supporting their kids and families but can also

afford vacations.”

She hopes to create a family-like atmosphere for her and the other stylists who work at both salons.

Larson said the past year has been one full of learning for her because of the pandemic, and it has reemphasized the importance of her craft.

“Even if you can’t go to bars and restaurants, people still want to look and feel good,” she said.

People can find more information about Larson’s two businesses on Facebook under Lush Beauty Lounge and Lush Hair Salon.

Mrs. Gerry’s is proud to have been a part of Albert Lea community for over 47 years.

We produce more than 35 million pounds of product a year out of our 214,500 square foot facility and our salads and sides can be found coast to coast. We employ over 250 people, from production to sanitation, maintenance, quality, sales and more. We are always looking for hard working, dedicated people to join our team.

Albert Lea, MN | 800-642-9662 | www.mrsgerrys.com MGK_Progress2021.indd 2

12/24/2020 6:09:42 AM

Amber Larson colors a client’s hair in January at Lush Hair Salon.

Larson and another stylist work at the Lush Hair Salon location in January.

saturday, February 27, 2021 | ECONOMIC OPPORTUNITY | Progress 2021 | AlbertLeaTribune.com | Page 3

A.L. businesses established or expanded during the last year

EJ’s Mercantile opened in September at 102 W. Clark St. in downtown Albert Lea. Colleen Harrison/Albert Lea Tribune

The Funky Zebras, a clothing boutique, opened at the end of September in the strip mall next to Walmart on Leland Avenue. Sarah Stultz/Albert Lea Tribune

B-Lo Zero Sno Cones co-owner Emily Navarrete makes a snow cone in July inside the business’s trailer. Navarrete later opened a location at Northbridge Mall. Colleen Harrison/ Albert Lea Tribune

Broadway Bait Co. opened at the end of December for business inside Broadway Bike Co. The new business supplies anglers with an assortment of tackle equipment as well as live bait. Tyler Julson/Albert Lea Tribune

Page 4 | AlbertLeaTribune.com | Progress 2021 | ECONOMIC OPPORTUNITY | saturday, February 27, 2021

Kim Olson, owner of Grandma’s Gourmets, started offering a number of new items during the pandemic, including cookies, small cakes, rolls, take-and-bake hotdishes and a number of other baked goods. Tyler Julson/Albert Lea Tribune

SHIFTING THEIR BUSINESS MODELS Albert Lea businesses adapt to overcome COVID-19 difficulties

By Tyler Julson

tyler.julson@albertleatribune.com

There’s no doubt the COVID-19 pandemic has changed the world in a number of devastating ways. The effects can be felt all over the local economy. However, some local businesses decided to shift their models and offer services and goods they didn’t offer before in an effort to combat the effects of the virus.

Kim Olson, owner of Grandma’s Gourmets, and Bryan Cunningham, owner of The Yankee Catering, both knew early on their businesses were going to take a hit. At the time, they didn’t know how long the pandemic would last, but they knew they needed to do something to keep their respective businesses going.

Olson originally thought the two-week shutdown was going to bring the worst of it all, but after the two-week period was extended, she knew just waiting around for the end of the pandemic wasn’t going

to work. She estimated she would be out of business in about three months if she didn’t change up her business plan.

While on a conference call with the Southern Minnesota Initiative Foundation, Olson mentioned how she had baked some pies for some friends who had birthdays in March, and the idea to add a bakery to her business model was born.

After making the necessary calls to set up her new operation, Olson got to work by making batches of rolls, cookies, small cakes and other baked goods. She soon added charcuterie boards and take-and-bake meals to her menu of items.

By the time June rolled around, the shutdown was beginning to ease up for the first time.

“Things were kind of opening back up at different levels,” Olson said. “I thought ‘OK, this is going to be done now.

We’ll just continue doing this a couple days a week and we’ll see.’”

“It was so awesome that people came out to this clearly commercial building to support our business. ... I am so grateful that so many great people have supported our business... We are grateful that people gave us a chance.”

— Grandma’s Gourmets owner Kim Olson After making it through those months, the COVID-19 numbers started to trend in the wrong way once again, and Olson said they went right back to what they were doing — only this time she wanted to add more products. She added soups and single-serve hotdishes.

Olson said it was difficult to market to a new group of people after being a mostly wholesale business for many years, but she is thankful for the people who have come out

to support.

“It was so awesome that people came out to this clearly commercial building to support our business,” Olson said. “It is not like walking into a normal retail setting. I am so grateful that so many great people have supported our business... We are grateful that people gave us a chance.”

Although Olson said she doesn’t know what the future will have in store, she knows it’s not likely going to be the same as it used to.

“I am still worried it’s not going to come back,” she said. “It’s not going to be exactly like it was in December 2019. … I don’t know what this year’s going to be like, but as long as people keep supporting us, we’re going to keep going.”

For Cunningham, he knew the shutdown was going to drastically impact his catering company because of the ban on in-person gatherings of more than 10 people.

After taking a couple weeks off to decide how to combat the impacts of the shutdown, Cunningham decided on taking up take-and-bake meals for people to purchase and take home.

“We kinda got the ball rolling right away with take-and-bake meals,” Cunningham said. “We’ll create a menu every two weeks and put it out on Facebook or send it via email every two weeks.

People can choose the meals they want to come pick up, or we also offer free delivery.”

While the new additions to the business haven’t sent profits through the roof, Cunningham said it’s been enough to keep the business afloat.

Once the pandemic begins to subside, Cunningham said he plans to keep offering the takeand-bake meals for families and individuals, especially during the winter months.

The shutdown was especially tough for The Yankee Catering because the business had just started not long before the effects of the pandemic began to show. Just starting to get the ball rolling when the pandemic hit, Cunningham said he isn’t sure what the future is going to look like, but he is remaining optimistic.

“I’m very optimistic for the future,” Cunningham said. “I’m starting to feel like we might see a light at the end of the tunnel now. I know we’re still a ways away yet, but the fear doesn’t feel as bad as it once did.”

Bryan Cunningham, owner of The Yankee Catering, started making take-and-bake meals and selling to customers with both pick-up and delivery options available. Cunningham said he plans to continue offering the meals even after the pandemic subsides.

saturday, February 27, 2021 | ECONOMIC OPPORTUNITY | Progress 2021 | AlbertLeaTribune.com | Page 5

A proposed rendering of an apartment complex that is being proposed for the former Marketplace Foods building on West Main Street. Provided

‘Developers want to be here’

Despite pandemic, several economic development projects moving forward

By Sarah Stultz

sarah.stultz@albertleatribune.com

Though the COVID19 pandemic has affected the work of the Albert Lea Economic Development Agency in the last year, several major projects are continuing to move forward.

“I’ve been pleasantly surprised that even though we’ve had this whole mess with COVID, we’ve been very busy,” ALEDA Executive Director Phillip Johnson said. “We continue to hear from businesses.

Developers want to be here, and I think it’s important we continue to move forward with that momentum.”

He said thinking back to March, he is proud the community has been able to bring in new developments even during the pandemic and that the projects have not slowed down.

ALEDA has had success with two major multi-family housing projects.

The first, on a portion of the Blazing Star Landing, is for a development with Unique Opportunities of Fergus Falls, which plans to develop a 48-unit apartment complex on the area south of the railroad tracks.

The city in December announced it was awarded a $1.4 million grant through the Minnesota Department of Employment and Economic Development to clean up contaminated soils at the site. The project could begin once the cleanup is complete.

He estimated work would begin on this in April or May. The second project calls for redeveloping the former Marketplace Foods building at Skyline Plaza into a 50-unit market-rate apartment building.

“My favorite part of this year is learning how resilient the people and the businesses in this community are. ... you realize how much we do support each other.

Our No. 1 goal will be to continue to help our businesses to survive.”

— ALEDA Executive Director Phillip Johnson The Albert Lea City Council has established tax-increment finance districts for both projects.

ALEDA is also working with a developer to potentially bring in more townhomes.

ALEDA in January announced that Vortex Cold Storage had selected Albert Lea for a new cold storage facility in the south industrial park, a project that Johnson said will be a $25 million investment in the first phase of the project and could add 26 new jobs. There will be two additional phases that will bring in extra jobs.

ALEDA is also working with a regenerative agriculture company that is interested in making a regional hub in the south industrial park.

The city in December announced it had received a grant to help clean up contaminated soil at the Blazing Star Landing.

A developer plans to build a new housing complex at the site. Sarah Stultz/Albet Lea Tribune He said ALEDA will continue to work with all of the developers through the completion of their projects.

ALDEA is also supporting the new MercyOne clinic going in at Northbridge Mall and will support continued redevelopment of both the Northbridge Mall and Skyline Plaza. Other projects happening that are a boost for economic development include the new Freeborn-Mower Cooperative Services headquarters, the new Veterans Affairs clinic and the new Rihm Kenworth building.

Cargill also is investing $25 million into its Albert Lea location to expand its product offerings and a new restaurant called Al’s Burgers and Chicken is

Cargill is investing $25 million into its Albert Lea location to expand its product offerings.

slated to go up in one of the strip malls near Walmart.

He said ALEDA supports the Main Street program, which he said will be key to promoting and developing the downtown.

Going forward, housing, child care and transportation continue to be some of the main focuses for the agency, as they are building blocks to move the community forward, he said.

Johnson said the community has been “extremely lucky” to not lose as much as it potentially could have because of COVID-19.

“My favorite part of

this year is learning how resilient the people and the businesses in this community are,” he said.

“When these different situations pop up, you realize how much we do support each other. Our No. 1 goal will be to continue to help our businesses to survive.”

He encouraged people to also continue to support local businesses in the coming months.

Johnson said ALEDA has helped administer two rounds of COVID-19 relief funding for area business.

The first round gave out over $800,000 through

ALEDA and the city of Albert Lea and Freeborn County — and the federal CARES Act dollars the entity received — and the second round had the possibility of giving out over $1 million, as of press time, depending on the need.

Johnson said helping area businesses in 2021 would continue to be a high priority.

“One of the main purposes that we’re going to have is to continue to support all our businesses as much as possible,” he said. “I don’t know if we can have a bigger priority than that.”

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Page 6 | AlbertLeaTribune.com | Progress 2021 | ECONOMIC OPPORTUNITY | saturday, February 27, 2021

Rihm Kenworth’s new Albert Lea location can be found at 77847 209th St. The new building allowed the company to expand operations and will add around 10 jobs in the future.

Tyler Julson/Albert Lea Tribune

Rihm Kenworth relocates to a newly renovated building Company already seeing business expand at new location

By Tyler Julson

tyler.julson@albertleatribune.com

Operating in Albert Lea since 2006, Rihm Kenworth moved to a new location in mid-December to grow the business and expand in space.

The move from its old location to 77847 209th St. has already been paying off, according to Albert Lea’s general manager John Bush. Not only did the new building increase the square footage to 27,000 square feet, it also allowed Rihm Kenworth to open a leasing and rental department, something that was not offered at the previous location.

See LOCATION, Page 7

Albert Lea’s Rihm Kenworth general manager John Bush said the company has already seen new customers and many of the service bays have been occupied since they opened their doors.

Rihm Kenworth spent about a week moving inventory from its old location to its new building. The move greatly expanded their warehouse space to 6,000 square feet.

Each of the 12 service bays features pumps with various oils and lubricants that are commonly needed by the service technicians.

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saturday, February 27, 2021 | ECONOMIC OPPORTUNITY | Progress 2021 | AlbertLeaTribune.com | Page 7

Albert Lea’s Rihm Kenworth recently moved to a new address and a new building. The new location is 27,000 square feet and features 12 service bays, 6,000 square feet of warehouse space, a drivers lounge and many other amenities. Tyler Julson/Albert Lea Tribune

Location Continued from Front Page

“Relocating to this location after 14 years meets our need for more warehouse and shop capacity, efficiency, visibility and improved employee accommodations,” said Kari Rihm, Rihm CEO and president. “We had outgrown our original space and view this move as a terrific opportunity to meet truckers’ needs on the I-35 corridor near two major truck stops.”

The new building includes 6,000 square feet of warehouse space, numerous offices, a walk-in parts department, a conference room, a break room, a customer lounge and a 12-bay service shop.

Bush said although Rihm Kenworth hasn’t been at this location for a long time, he noticed a lot of new business come in nearly right away. He said he has talked to a few customers who noticed the shop while they were at the truck stops and came over to have some

work done.

“We are seeing customers we haven’t seen before,” Bush said. “It’s already started. There’s been customers coming out of the truck stops and saying ‘I didn’t know you guys were here.’ So it’s already starting.”

As of December, Rihm Kenworth was open 7 a.m. to 6 p.m. Monday through Friday, but Bush said they are hoping to expand their hours with the new building. Bush said around 10 to 15 jobs will be added once everything is in

The Rihm Kenworth logo can be seen in various places throughout the new location, including on the bottoms and sides of vending machines.

Safety is a top priority for Rihm Kenworth, especially in the service bays. Eye washing stations are located throughout the maintinence area.

Nobody covers

HIGH SCHOOL SPORTS

like the

On top of its various offices, the new Rihm Kenworth location features an employee break room, a spacious conference room, a walk-in parts department and a drivers lounge. place, and the goal is to add a second shift on the weekdays as well as a full Saturday shift.

The new dealership is the fifth new facility that Rihm Kenworth has opened since 2017, which includes two new facilities

in the Twin Cities, a new dealership in Winona and a new dealership in Mankato.

“It’s just exciting to be a part of all the growth,” Bush said. “We’re proud to be a part of the Albert Lea market. It’s a great

city. I’ve met a lot of really fine folks. It’s a diverse community.

There’s a lot of farming, but there’s higher tech businesses as well. It’s well diversified. It’s a great area and it appears to be growing.”

Page 8 | AlbertLeaTribune.com | Progress 2021 | ECONOMIC OPPORTUNITY | saturday, February 27, 2021

The Wells Liquor Depot surpassed $1 million in sales, an increase of at least $300,000 from 2019. Provided

1st year of liquor depot sees success sales pass $1.1 million

By David Mayberry

news@albertleatribune.com

WELLS — A relocation and relaunch arrived in time for the Wells Liquor Depot to post its best year in 2020.

Gross liquor sales eclipsed more than $1.1 million through November for the city-run adult beverage business. Annual totals for the prior five years, when the Depot was strictly off-sale, never totaled more than $825,000.

That has local officials excited about 2021 and proud of the work in 2020.

“We had it all in one year,” said Wells City Administrator CJ Holl.

Minnesota cities with a population of fewer than

10,000 can own and operate a municipal liquor store. The Wells shop switched from on- and off-sale liquor in 2014, but it broke even just once since then.

Work on a renovation project that installed a railroad theme to the Depot concluded in February 2020. Covid hit in March 2020. Package sales never waned.

Before February 2020, the store was located at a “tired” downtown location, according to Holl. The new home at the junction of highways 22 and 109 was a formula learned from other Minnesota towns.

“Blue Earth did something similar and saw a dramatic increase, as well,” he said. “There are plenty of examples like that: A, find that location in a busy intersection.”

Gross sales for the year

“Blue Earth did something similar and saw a dramatic increase, as well. There are plenty of examples like that: A, find that location in a busy intersection.

— Wells City Administrator CJ Holl for the Wells Liquor Depot will be more than 35% above 2019’s total.

Holl credits store manager Scott Berg and the Depot staff for adjusting during the pandemic.

The store remained open throughout 2020, at times limiting the number of customers, enacting social distancing measures, utilizing PPE and introducing new products to the shelves.

“We were open the

whole time,” Holl said.

“They managed through a difficult time.”

And they sold gallons of beer, wine and liquor, easily turning around a struggling business.

“Sales cure a lot of ills,” said Holl. “2020 was also a year for us to figure out what our new customer base is like, and what we should stock.”

Of the approximately 190 municipal liquor stores, about 75 have

typically eclipsed $1 million in sales. The Wells shop has ranked around 100 in gross sales among all Minnesota municipal liquor stores. The Depot should improve at least 25 spots when the 2020 figures are released later this year.

“We will have reversed the trend and put the store on more solid financial footing for 2020 and beyond,” Holl said.

The renovation included more product lines, floor space and cooler doors, giving locals options they typically had to travel out of town to find.

Additionally, customers appreciate the railroad theme, and the Wells Historical Society – The Depot Museum has donated some historical items.

“Gives it a local flair,” Holl said.

With the end of the

Gross sales

Annual gross sales for Well’s municipal liquor store since 2014, the last year it sold liquor on site and off sale. The store has been strictly for off-sale liquor since 2015.

2020*: $1.118 million 2019: $825,435 2018: $771,604 2017: $722,973 2016: $674,190 2015: $679,392 2014: $760,770 *through November

pandemic hopefully on the horizon, the Depot is eager for relaxed operating restrictions. And more sales.

“We would like to get back to doing events such as wine and beer tastings,” Holl said. “Also, as people get back to having weddings and events, we hope to enhance our bulk sales.”