AB AMES BUSINESS
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July Chamber Update
MAIN STREET LISTED ON NATIONAL REGISTER OF HISTORIC PLACES
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AMES BUSINESS
MONTHLY JULY 2018 Vol. 11, No. 7 AMES TRIBUNE Ames Business Monthly is a publication of the Ames Tribune, 317 Fifth St., Ames, IA, 50010; (515) 232-2160.
3 Ames to add 4,000 households 8 ISU receives $5M for Student Innovation Center 9 Tax district in Campustown 13 Chamber of Commerce 39 Gamers employees say they weren’t cause of closure 40 Ames has lowest unemployment rate in the U.S. 41 Andra Reason 42 Rick Brimeyer
Ames’ Main Street was recently placed on the National Register of Historic Places. TRIBUNE FILE PHOTO BY NIRMALENDU MAJUMDAR/AMES TRIBUNE
Main Street listed on National Register of Historic Places By Dan Mika, Staff Writer dmika@amestrib.com
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mes’ Main Street is now on the National Register of Historic Places after a decade’s worth of work in applying to the list of buildings the federal government deems to be of historic value. The Iowa Department of Cultural Affairs announced that the Main Street district was placed on the Register effective in early May in a letter to the Ames Historic Preservation Commission. The designation makes buildings in the district eligible for federal rehabilitation grants, and various federal and state tax credits for building preservation and rehabilitation projects. Main Street joins the Old Town neighborhood as the only other district of buildings listed on the Register in Ames. Several other buildings and structures in Ames are already on the list, including City Hall, Bandshell Park, the YSS building at Fifth
Street and Kellogg Avenue, multiple buildings on the Iowa State University campus and various other bridges and structures in town. Kim Hanna, chair of the city’s Historic Preservation Commission, said getting the district on the Register required an initial survey of property owners that began more than 10 years ago but fell by the wayside. Years later, the survey and application process was restarted by the Main Street Cultural District with help from an Iowa State professor and student working in historic preservation. After being found historically significant by the State Historic Preservation Commission late last year, the Main Street Cultural District sent the application to the Department of the Interior, which reviews applications for the historic places registry. In a statement, MCSD executive director Cindy Hicks said having Main Street on the list will add several benefits to property
owners in the area. “Having our downtown district designated on the National Historic Register has many benefits to downtown property owners and business owners,” Hicks said. “From tax credits to tourism, this recognition will bring many positive things to downtown Ames.” Hanna said she found it odd that Main Street hadn’t been included on the list until now, but the area deserves to be on the list due to the magnitude of its impact on the city as it began to grow. “The city developed around the downtown area,” Hanna said. “We celebrated its 150th (anniversary) several years ago, and a lot of it was to showcase how much the downtown had developed and changed over the 150 years … it was very clear that downtown has made such a huge impact in the history of the town.” Hanna said there are no other properties in Ames actively seeking placement on the Register.
JULY 2018 | AMES BUSINESS MONTHLY | 3 A recent report indicates the number of households in Ames could grow by 4,000 over the next 30 years. TRIBUNE FILE PHOTO BY NIRMALENDU MAJUMDAR
Report: Ames to add 4,000 households over next 30 years By Dan Mika, Staff Writer dmika@amestrib.com
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he amount of individual households in Ames is projected to increase by about 4,000 through the next 30 years with most of the demand coming from high-income homeowners and renters making less than $40,000 a year, according to a forecast released May 22 by the Iowa Finance Authority. The forecast, based on demographic trends, Census data and a survey of rental properties conducted last year, suggests the total amount of households in Ames will rise from 24,643 in 2016 to 25,778 in 2020. It projects Ames to grow between 400 and 600 households every five years until 2050, when it estimates the city will have a total of 28,540 households. The forecast was included in a “profile” of Ames conducted by Portland-based Western Economic Services and commissioned by the IFA. The group conducted analyses and forecasts for the 28 largest cities in the state and all 99 counties for local strategic planning purposes.
The report assumes “a strong growth scenario” for population and employment in its findings based on today’s economic conditions. Home ownership in the city is expected to increase over 30 years from a projected 10,383 households in 2020 to 11,496 in 2050. The majority of this growth is expected to be in families making at least 115 percent of the county’s median income, or $92,000 (the report places median family income at $80,000 for a family of four in Story County.) The report estimates about 64 percent of the new homeowners through 2050 will make more than $92,000, with the rest coming from homeowners bringing in less. On the renter’s side, the report expects Ames to add just under 1,700 rental households between 2020 and 2050. Just more than half of these renters will make $40,000 or less per year, the report indicates. Ames Housing Director Vanessa Baker-Latimer said it’s not clear how similar the forecast is to what the city’s expecting, as city staff will begin preparing
a new five-year plan this fall and complete it by next May. Baker-Latimer also said the forecast likely doesn’t include the impact of about $600,000 in federal HOME funds the city unexpectedly received last month, which will be used to fund singlefamily affordable homes at the 321 State Ave. site. “It’ll be interesting to see once we start on our five-year plan this fall, how closely the numbers may or may not align,” she said. However, the expected influx of higher-earning families could mean housing supply coming onto the market could skew towards being more expensive. Baker-Latimer said Ames is already seeing signs of lower-income families struggling to afford homes in the current market. According to Department of Housing and Urban Development data between 2010 and 2014 cited in the IFA report, about 10 percent of Ames homeowners paid more than 30 percent of their income toward their housing, while 4 percent spent more than half of their income on housing. “We’re already kind of in that situation,” she said.
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ISU receives $5 million to help fund Student Innovation Center By Caitlin Ware, Staff Writer cware@amestrib.com
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$5 million gift given to Iowa State University in early May by the Land O’Lakes Foundation will help fund a soon-to-be Student Innovation Center on campus. According to a university news release, for the last 40 years, a partnership has existed between the foundation and the university, which has helped support programs in the College of Agriculture and Life Sciences and the Ivy College of Business, as well as fund scholarships for women and minority students in agriculture and business. And now, a significant portion of the recent commitment will be put toward funding an $84 million project to bring a new university innovation center to life. By 2020, the west side of ISU’s campus is slated to include a roughly 140,000 square-foot
A rendering of the Iowa State University Student Innovation Center, which received funding to help bring it to life on campus. IMAGE COURTESY OF IOWA STATE UNIVERSITY
Student Innovation Center on Bissell Road, south of Sweeney Hall. The future glass building will
be designed to serve as a central hub for multidisciplinary student collaboration, and will include an auditorium and classrooms.
The space will also include meeting rooms, breakout spaces, fabrication areas — from electronics to woodworking to textiles — study and collaboration spaces, a cafe, a test kitchen and a store that will sell products made at the center itself. Nearly half of the funding necessary for the $84 million project will come from state appropriations, with the remainder of the balance made up of private giving, according to a January university news release. “It is particularly rewarding to support a facility that will provide students with real-world experience in the areas of entrepreneurship and teamwork,” said Chris Policinski, president and CEO of Land O’Lakes Inc., in a prepared statement. “Land O’Lakes is appreciative of the strong relationship we’ve built with Iowa State over the years, and we look forward to the next chapter in that partnership.” In addition to helping to fund
the new innovation center, part of Land O’Lakes’ recent commitment will also support scholarships in the College of Agriculture and Life Sciences, and provide funding to facilitate future interactions with students. The gift will also establish a named endowed professorship in the Ivy College of Business for a faculty member who will work to elevate ISU’s supply chain management program. “Both Iowa State University and Land O’Lakes are committed to improving people’s wellbeing by protecting and enhancing our environment, ensuring long-term productivity of food, feed, fiber and fuel and providing strong economic opportunities now and far into the future,” said ISU President Wendy Wintersteen in a prepared statement. “We are delighted to have Land O’Lakes as a partner in preparing the leaders who will take a holistic approach to addressing local and global challenges.”
JULY 2018 | AMES BUSINESS MONTHLY | 9
The Campustown Action Association is hoping for city approval to establish a special tax district to support beautification efforts in Campustown. TRIBUNE FILE PHOTO
CAA restarts push to establish special tax district in Campustown By Dan Mika, Staff Writer dmika@amestrib.com
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he Campustown Action Association is renewing its push to establish a special tax district after struggling to get its proposal to the City Council last year. CAA Executive Director Karin Chitty said the group has received signatures of support from 49 percent of property owners in the area representing 28 percent of all of the taxable value in the proposed district’s boundaries. State law requires 25 percent support in both categories for the petition to be considered by a city government. If approved, the petition would create a self-supporting municipal improvement district (SSMID) in the Campustown district for various beautification work, like snow and ice removal on sidewalks and litter pickup, along with
more marketing. CAA was making progress on establishing the district last year, but a law passed last year by the Legislature restricts SSMIDs to only commercial properties, meaning the apartments in Campustown above ground-floor businesses can’t be included. That delayed the process last year, and the petition could not make its way to the City Council by year’s end. “We decided at that point we didn’t need to push quite so hard if isn’t going to go into effect until December anyway,” she said. Property owners of commercial-only buildings would take a $2 tax increase per every $1,000 of taxable value, while mixed-use building owners would see a $5 per $1,000 increase. CAA estimates those taxes would raise about $85,000 in revenue per year to supplement about
$40,000 in grants from the city. Chitty said the proposal will go to the Planning and Zoning Commission in June, which has to make recommendations on it before it goes to the City Council for a hearing and final approval. Those not in support, Chitty said, are either property owners who disagreed with the proposal or property owners outside of the city or state that couldn’t be reached. Chitty believes the chances of the SSMID securing city approval by year’s end are “pretty good” based on a handful of discussions she has had so far. “We’re really trying to do some very basic things to unify the district, to make it look better and be a more pleasant place for people to spend time,” she said. “That’s our ultimate goal, is for more people to come down here.”
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he Leadership Ames program was created by the Ames Chamber of Commerce to develop informed, involved and concerned community leaders in the Ames area. This program gives both experienced and developing leaders a broader view of civic leadership responsibilities and opportunities through direct contact with a wide spectrum of institutions and people who shape the community where we work and live. Leadership Ames â&#x20AC;&#x201C; Class XXXII
begins in August 2018, and continues with regular sessions through May 2019. The 12 full-day sessions are conducted at various locations in Ames and Story County with one session approximately every three weeks. During the year, participants listen to presentations, debate issues, participate in class activities, lead discussions, visit with area leaders and organizations, tour the community and get to know individuals representing a broad cross-section of the community.
More than 500 individuals have completed the curriculum and many are extensively involved with community and Ames Chamber of Commerce leadership opportunities. The program is limited to approximately 16 to 20 participants who are members of the Ames Chamber of Commerce, have an interest in leadership roles and community service, and who reside in the greater Ames area. Participant selection is made by the Leadership Ames selection committee
and co-chairs on the basis of written application. Participants are selected from a cross-section of business, professional, non-profit and local residents. Tuition costs, scholarship information and other details are available in the application materials online (www.ameschamber. com) and at the Chamber offices. Applications are due on Friday, July 6, to the Chamber office (304 Main Street). Questions may be directed to Andrea Hammes Dodge at 515-2322310 or andrea@ameschamber.com.
The mission of the Ames Chamber of Commerce is to provide our members services that strengthen the economic vitality in Ames and enhance the quality of life in our community.
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Business After Hours Wednesday, July 11, 4:30-6:30 p.m. First American Bank 6 'Xර $YHQXH Ames, Iowa 50010 Enjoy Hickory Park BBQ, drinks, and ice cream. Hosted By:
INTELLECTUAL CAPITAL AT WORK
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$0(6 &+$0%(5 $1' $)),/,$7( 67$)) â&#x20AC;¢ Dan Culhane, President and CEO
â&#x20AC;¢ Sarah Buss, Director, Events & Sponsorship
â&#x20AC;¢ John Hall, Director, Marketing
â&#x20AC;¢ Ron Hallenbeck, Executive Vice President
â&#x20AC;¢ Karin Chitty, Campustown Action Association Executive Director
â&#x20AC;¢ Cindy Hicks, Main Street Cultural District Executive Director
â&#x20AC;¢ Edana Delagardelle, Client Services Coordinator
â&#x20AC;¢ Dustin Ingram, Director, Business Development
â&#x20AC;¢ Brenda Dryer, Director, Workforce Solutions
â&#x20AC;¢ Drew Kamp, Director, Business Retention/ Expansion & Public Policy
â&#x20AC;¢ Andrea Hammes Dodge, Vice President â&#x20AC;¢ Amy Howard, Vice President, Finance & Operations
â&#x20AC;¢ Brandon Mumm, Director, Membership Development â&#x20AC;¢ Lojean Petersen, Ames Main Street Farmersâ&#x20AC;&#x2122; Market Manager â&#x20AC;¢ Calli Sandahl, Director, Digital Marketing
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:HOOV )DUJR Because of contributions from members like these, the Ames Chamber can maintain a level of excellence in the services we provide. Please note: This represents only a portion of the Chamberâ&#x20AC;&#x2122;s Gold members.
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n Saturday May 19, with the help of community volunteers and partner organizations, over 70 trees were planted in our community, including many in the Southdale neighborhood and throughout the city of Ames. In 2015, The Ames Foundation entered into a multi-year partnership with the City of Ames to help raise money for, and physically volunteer in the replanting of, trees that will be lost to the Emerald Ash Borer (EAB). This effort culminated in the first community-wide tree planting days in 2016. In 2016, The Ames Foundation volunteers planted well over 150 trees. In 2017,
volunteers planted more than 250 trees. In 2018, the Ames Foundation is hoping to plant more than 250 trees. We have thousands of trees here in Ames, which improve our community by improving water quality through filtration and erosion control, provide temperature control and wind breaks, and support wildlife habitat necessary for biodiversity. Trees have also been shown to increase property values, reduce crime, and improve mental health. There were approximately 2,300 ash trees located on City managed property, making up about 16 percent of all public trees in Ames. These numbers are dwindling as the City of Ames has
implemented the EAB Response Plan, wherein the City removes a select number of ash trees preemptively. The Ames Foundation is proud to be the catalyst for the Community Tree Program as well as other public projects that enhance the quality of life in Ames. To learn more information, donate, or view our current and future projects, please visit the website at: www.amesfoundation.org
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et involved with Young Professionals of Ames for opportunities to build and foster relationships through: â&#x20AC;˘ Leadership development â&#x20AC;˘ Professional development â&#x20AC;˘ Community outreach â&#x20AC;˘ Cultural and social opportunities In YPA you will be able to practice your business skills, create partnerships, gain knowledge of the business community, contribute to the Ames community and have a lot of fun!
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lease welcome YPA to the Instagram world by following us @ ypames! You can also keep up to date with upcoming events and volunteer opportunities by following our Facebook, LinkedIn and Twitter pages or by signing up for our newsletter! You wonâ&#x20AC;&#x2122;t want to miss out on all the fun networking opportunities! We also have a Facebook group specifically for YPA members! Find the group on Facebook titled â&#x20AC;&#x153;Members of Young Professionals of Amesâ&#x20AC;? and request to join.
With events such as Lunch & Learns, ThAWs and volunteering, you will definitely get your moneyâ&#x20AC;&#x2122;s worth! You will also have the opportunity to join either of our Social or Marketing Committees! Itâ&#x20AC;&#x2122;s only $60 for Chamber members and $90 for non-Chamber members. Visit www.ypames.com to learn more and join us!
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sincere thank you to Wallabyâ&#x20AC;&#x2122;s for hosting Mayâ&#x20AC;&#x2122;s ThAW and to everyone who came out! YPAâ&#x20AC;&#x2122;s Thursday after Work (ThAW) events are a great opportunity to network and meet other young professionals in your area. There is no registration and youâ&#x20AC;&#x2122;re welcome to bring the whole office! Donâ&#x20AC;&#x2122;t miss out on these great events and join us for our next one! Find out more details at www.ypames.com or on our social media pages.
JULY 2018 | AMES BUSINESS MONTHLY |23
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2018 Events July 4th Parade July 4 RAGBRAI on Main July 24 Summer Sidewalk Sales July 26-28 Restaurant Week Sept 14-23 Smithsonian Traveling Exhibit Sept 29â&#x20AC;&#x201D;Nov 11 Oktoberfest September 15 Trick or Treat October 26 Snow Magic Nov 9â&#x20AC;&#x201D;Dec 24
he nomination to list a part of downtown Ames on the National Register of Historic Places, many years in the making, has been accepted by the National Parks Service. The designation covers 81 properties in the historic commercial district from Duff Avenue to Clark Street, between the railroad tracks and 5th Street. â&#x20AC;&#x153;Having our downtown district designated on the National Historic Register has many benefits to downtown property owners and business owners,â&#x20AC;? said Cindy Hicks, Executive Director of the Main Street Cultural District. â&#x20AC;&#x153;From tax credits to tourism, this recognition will bring many positive things to downtown Ames.â&#x20AC;? The National Register of Historic Places was established in 1966 and is part of the National Park Serviceâ&#x20AC;&#x2122;s program to coordinate and support public and private efforts to protect Americaâ&#x20AC;&#x2122;s historic and archeological resources. To date, the register includes more than 90,000 properties in almost every county across the United States. Getting listed on the register is the first step toward eligibility for various federal and state preservation tax credits, which have so far leveraged more than $45 billion in private investment and National Park Service grant programs. The Main Street Cultural District (MSCD) worked with Iowa State University (ISU) Assistant Professor in Community and Regional Planning, Dr. Ted Grevstad-Nordbrock, who teaches historic preservation
classes at ISU and sits on the Preservation Iowa Board of Directors, and ISU student intern, Robert Skalecki, to complete the nomination started in 2011 by the city of Ames. Dr. Gloria Betcher, Ames City Council representative for ward one, which includes the downtown district, provided consultation for the nomination. Dr. Betcher was part of the original team, led by historian Will Page, who started the nomination process in 2011. Betcher is also a former board member of Preservation Iowa. MSCD received a state grant for $3,000 to complete the nomination in 2016, which was matched by the City of Ames. â&#x20AC;&#x153;The city council was happy to partner with the Main Street Cultural District to complete this survey, which has been a long time in the making,â&#x20AC;? Betcher said. â&#x20AC;&#x153;Getting
the downtown placed on the National Register of Historic Places will open up opportunities for historic preservation tax credits that can help fund much-needed building improvements.â&#x20AC;? The state historic tax credit program offers a fully refundable and transferable tax benefit for up to 25 percent of the qualified rehabilitation expenses of historic buildings, while the federal tax credit is 20 percent. The Iowa State Historic Preservation Office also administers the County Historic Property Tax Exemption Program in partnership with County Boards of Supervisors. The program offers a local property tax incentive for the sensitive â&#x20AC;&#x153;substantial rehabilitationâ&#x20AC;? of historic buildings. It includes a 4-year â&#x20AC;&#x153;freezeâ&#x20AC;? on property tax increases, followed by increases of 25 percent per year for the following four years to adjusted value post rehabilitation.
24 | AMES BUSINESS MONTHLY | JULY 2018
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irst Friday is a brand-new event hosted by the Campustown Action Association. Held August 24, the first Friday of the fall semester at ISU, the event aims to welcome students to Campustown and to Ames. Attendees will be invited to explore area businesses led by a passport of deals. While there, students will have the opportunity to learn more about the neighborhood, local government and the resources available to them whether they live on or off campus. CAA will be joined by representatives from the City of Ames, Iowa State University, neighborhood associations and community organizations. The Campustown Action Association is passionate about creating a district where everyone feels wel-
come, whether they are new to Ames or have lived here a while, whether they are alone or with family and friends. Ames is home to a very diverse population; these diversities donâ&#x20AC;&#x2122;t need to separate us. They are something we should celebrate. We want Campustown to reflect that diversity â&#x20AC;&#x201C; embrace it, and all those who call Ames home. Opening lines of communication and working together is how weâ&#x20AC;&#x2122;ll achieve a community culture of inclusivity. If you are interested in being a part of First Friday, please contact Karin Chitty, Campustown Action Association Director, at 515-292-4528 or director@ amescampustown.com
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reen Dot at Iowa State is a comprehensive program that is designed to reduce incidents of violence on our campus and in our community. A green dot is any choice, behavior, word or attitude that promotes safety for everyone and communicates utter intolerance for power-based personal violence in our Iowa State and Ames community. Come to this lunch and learn to find out more and join the cause by becoming a Green Dot Business. Youâ&#x20AC;&#x2122;ll be among the growing number of offices at ISU
and other businesses/organizations in the Ames community that are showing support and commitment to this effort. We want YOU to be â&#x20AC;&#x2DC;proactiveâ&#x20AC;&#x2122; by displaying Green Dot in your space. There is no charge to attend, but registration is required. Questions and registration requests should be directed to Karin Chitty at 515-292-4528 or director@amescampustown.com.
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eadership Ames Class XXXI graduated on Monday, May 14, with a dinner and program in their honor. Since the first session in August, graduates spent 12 day-long classes that encompassed leadership development and community awareness. The class also worked on several service projects throughout the community. We are pleased to announce the graduates of the Leadership Ames Class XXXI, presented by corporate sponsor Mary Greeley Medical Center, and we look forward to seeing how they will continue to contribute to their organizations and our community:
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CHAMBER OF COMMERCE LEADERSHIP AMES CLASS XXXI
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Class XXXI participated in three leadership development days and included fun teambuilding activities such as the bull ring (above).
Business & Industry Day included a tour of Farewayâ&#x20AC;&#x2122;s distribution center.
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“WIth great opportunity comes great responsibility.” -Graduation Charge to Class XXXI
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LEADERSHIP AMES SPECIAL EDITION | CLASS XXXI
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Leadership Ames Class XXXI participated in a mock disaster drill at Mary Greeley Medical Center on Healthcare Day.
A highlight of Quality of Life Day was the tour of Stephens Auditorium including lunch on the stage.
Community Development Day began at the new Ames Municipal Airport Hangar.
Class XXXI experienced a mock jury selection and trial at the Story County Courthouse on County/State Day.
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REALLY NICE PEOPLE!...BETTER PRICING!
2212 South Duff Avenue • Ames • 800-232-4081
www.WilsonofAmes.com
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Gamers employees say they weren’t cause of closure By Dan Mika, Staff Writer dmika@amestrib.com
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mployees of the former Ames Gamers store said they were unfairly portrayed by the company after it abruptly closed down all its Iowa stores in early May. The Nebraska-based video game chain said it would close its Ames store at 302 Lincoln Way and its Des Moines metro area stores in a memo May 4, blaming declining sales, police holds on allegedly stolen items and various break-ins and robberies as part of its decision to close. Gamers also said the closure was partially because of issues with the “vast majority of its staff” and their behavior, saying there were reports of employees spraying each other with window cleaner, turning away trade-in items, browsing online during work, using racial slurs and being
rude to customers. “Despite our efforts to quickly resolve the situation or replace the employee, we continued to experience staffing issues. We believe that our Iowa customers deserved better than this,” the memo reads. The company said it will honor gift cards and store credit at its Nebraska locations or online. Gamers also said it hopes to explore reopening in Iowa “under different circumstances” in the future. Justin Zimmerman, former general manager for the Ames location, said the company told employees it was planning to remodel the stores about two weeks before the closures. He and his staff were asked to package store items and sell fixtures to pay for the renovations. Zimmerman said he was suspicious of the sale, but didn’t want to cause trouble at the time. At around 9:30 a.m. Thursday, Zimmerman received a text from
the company’s district manager saying the stores were closed effective immediately and asked the managers to notify the rest of the staff. The company did not send employees any other message about their termination, he said. “The best way I can describe it was regretting that I was correct,” he said. “I kind of had a weird feeling the previous day, just a couple things seemed weird and didn’t add up.” Dalton Nalley, a Gamers assistant manager who worked at the store since last August, said the company misled staff so they would pack up the store before being laid off. “I was in complete disbelief that the store owner had that much disrespect for his employees that he couldn’t even give us a warning,” he said. “He had to lie to us about a remodel for us to basically do all the work for him and shut it down once we were done.”
Zimmerman said he heard from customers that there were a few issues with employees in years past, but he never saw the behavior the company described in their memo while at the Ames store. “I’ve been there eight years and we never had anything that could even be described as that,” he said. “… I do think it was kind of a copout, especially when he blames the employees for lack of help because everyone wanted just the best for the company and the stores.” District manager Ryan Miller said the criticism of employees has been misrepresented as the main reason why the Iowa stores were closed instead of being one of a handful of reasons that led Gamers to close in the state. He said landlord issues were the reason for the stores closing abruptly but declined to elaborate further, citing potential legal issues. He also said he had store managers notify staff about the
closures because he “didn’t want to put a sign on the door” telling staff they lost their jobs. “I think that one thing has been pinpointed as the reason, although we listed many reasons, and in addition we’ve had some wonderful staff too,” he said. “Everyone is now pinpointing it, we said all the staff were horrible and that’s the reason. I think that’s getting misrepresented.” Miller said the stores in Nebraska haven’t had as many employee issues as the stores in Iowa did. Nalley said the layoffs wouldn’t have been as bad if employees were given advance notice, but now he is scrambling to find a job to cover his bills. “I have car repairs to get done, I have electric payments and stuff, I have a phone bill, and now I can’t pay that on time because they couldn’t give us a warning that they’re shutting the store down,” he said.
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Ames again has the lowest unemployment rate in the U.S., setting up ‘employee’s market’ By Dan Mika, Staff Writer dmika@amestrib.com
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mes’ unemployment rates are continually among the lowest in the U.S. So what does that mean for employers looking for workers? The U.S. Bureau of Labor Statistics reported last month that Ames had an unemployment rate of 1.5 percent, the lowest in the country. While that numbers is preliminary and not seasonally adjusted, the city has had some of the lowest unemployment rates in the
country for several months. Last September was the last time BLS officials said Ames had an unemployment rate higher than 2 percent. For the group of 23 local companies hoping to recruit employees during a career fair at the Iowa State Research Park last month, that low unemployment rate is forcing them to look outside of the city for their workforce if they’re looking for trades workers. Gary Schmit, president of Henkel Construction Company, was looking for carpenters, site superintendents and a project engineer
during the fair. He said finding construction workers has been a nationwide issue after the economic downtown of 2009. A large portion of trades workers were laid off from their jobs that year, he said, and either retired early or found work in another sector. When construction companies began hiring again, they found much of their old workforce was no longer interested in coming back. “We’re always looking for people with skills, and they’re kind of tough to come across right now,” he
said. “There are positions available.” Henkel, which is based in Mason City and has an Ames branch, spends some of its recruiting efforts in nearby middle and high schools encouraging students to look into the trades and on-the-job training. However, Henkel is finding many of its new employees from smaller communities surrounding Ames and elsewhere in central Iowa. That’s an advantage to the company as it takes jobs across the state and can send employees around as needed, but Schmit said he has to look there anyway to find workers. “You really need to get outside of your community if you want an adequate workforce,” he said. Other companies looking for employees are also searching outside of the Ames area.
Chris Buseman, human resources manager for Barilla’s Ames plant, said hiring has been fairly slow over the past few months. The Italian pasta maker is pre-hiring employees to work at the plant’s expansions once they’re complete later this fall. Buseman said the company has hired 15 to 20 employees over the past few months, and is looking for about 40 in total. He said many of the new hires who live in Story County commute from the smaller cities, and some employees come as far as Jefferson to the west, Steamboat Rock to the northeast and Ankeny to the south. “We’re looking for manufacturing because we’re manufacturing related,” he said. “People in Ames, there’s probably more professional positions, so it probably forces us to enlarge our area.”
Deb Malsom, a regional business development manager at employment firm Manpower, said employers in general have trouble finding employees due to various barriers such as having the right qualifications, passing a drug test or passing a criminal background check. But the bigger issue she sees with some firms is that they aren’t willing to raise wages to compete with employees. Malsom said the average wage she’s seen in the area is $14.65 an hour, and if an employer isn’t willing to match that or provide better benefits than its competitors, they will struggle to fill their open position. “It’s an employee’s market, and they’re going to go where they pay the best, where they get the best benefits. That’s just the way it’s going to be,” he said.
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‘To all men and women of good will’ B
e trustworthy, worthy of confidence, dependable. In the finance industry and even broader — in every industry and in every relationship, trust is crucial. Knowing that trust is earned, we need to act in a manner that builds, protects and nurtures it. Trust has been in the news lately, and many of you may have missed it. Here is a brief overview. For the full write-up, Google “Oeconomicae et pecuniariae quaestiones: Considerations for an ethical discernment on certain aspects of the current economic-financial system.” Recently, Pope Francis supported the development of a document calling for greater regulation of the global financial system. On May 17, 2018, a Vatican news conference was held to release the document. Addressed “to all men and women of good will,” the
Recently, Pope Francis supported the development of a document calling for greater regulation of the global fi nancial system. Andra Reason document discusses a wide range of critiques of complex financial products, high public debt, the concentration of wealth in the world, and conduct standards for financial advisors. And whether you are a practicing Catholic or just hold the Pope in high regard, when the Pope has strong
feelings about your profession, it makes you stop and reflect. The Pope singled out “morally questionable activities” of financial advisors, including a lack of objectivity and a lack of due diligence “regarding the protection of related interests to the portfolio of their clients.” And although the document does not use the word “fiduciary,” it does use the
words “trust” and “entrusted” four times in that context. “The saving (i.e. investing) itself, when entrusted in the expert hands of financial advisers, needs to be administered well, and not just managed.” The Vatican warned that financial advisers sometimes steer savers into inappropriate financial products to receive
kickbacks or obtain financial advantages for themselves. Recently, the U.S. financial industry fought hard against an effort to impose a major regulation requiring that advisers working with certain retirement accounts act in their clients’ best interests. That rule (the DOL Fiduciary Rule) was recently struck down by a federal court. Personally, I was in support of this rule and am disappointed it has not passed as it would have ensured an atmosphere of trust and accountability within my industry. In summary, I believe the Pope is instructing everyone to do what they can to be trustworthy, even in the absence of regulations holding them accountable for their actions. ANDRA REASON, CPA, CFP is a Principal at Marrs Wealth Management. She can be reached at andra@marrswealth.com.
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Ensuring that process experts have a back-up
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anagers occasionally ask how they can fairly evaluate someone’s performance when they are the only person performing a specific process. My initial response is to answer the question with a question: Is it in the best interests of the organization to have only one person that can perform a specific process? I understand that organizations — especially small organizations — can’t afford an army of employees trained to perform every process. It’s generally a good idea, however, to have at least one other person identifie — either another employee or a contractor — that can capably step in should the need arise. For mission-critical processes, it’s a necessity. Employees deserve time off, suffer debilitating injuries or illnesses, require extended FMLA time-off, and (very, very, very rarely) win the lottery. Developing Plan B before the phone call from Payroll Pam
Rick Brimeyer informing you that she won’t be in for the next six weeks is a good idea. There are several steps to ensure a robust Plan B is in place: Ensure that all missioncritical processes are documented with standard work. This should be created by the process
expert utilizing as many photos and screen shots as possible to enhance understanding. Identify back-up personnel and discuss the plan with both them and the process expert. Schedule time for crosstraining with the process expert, utilizing the standard work. Use this opportunity to rectify any missing or confusing steps in the standard work document. Schedule a controlled pilot with the back-up running the process while the process expert is on-site, perhaps in an extended meeting. Again, ensure any deficiencies in the standard work which the back-up identifies are addressed promptly. Schedule the back-up to run the process while the process expert is on vacation rather than simply scheduling the critical process around the absence. Finally, debrief the lessons learned with both the back-up and the process expert following the return of the process expert. Take
necessary actions. In addition to reducing the risk to your organization, there’s another important advantage to not tying key processes to a single individual. It goes back to the original question which started this discussion: How can one fairly evaluate someone’s performance when they are the only person performing a specific process? Remember that performance is typically dependent as much or more on the process used as the individual performing the task. By “marrying” a key process to a specific individual, we also limit the exposure to improvement ideas for that process to only those initiated by the process expert. That could be a severe limitation, based on the process expert’s level of engagement, ability to identify waste, and comfort with change. With a stagnant process, pairing Mr./Ms. Status Quo with a capable back-up that has shown a knack for identifying waste and
tactfully dealing with others may be in order. Make a special effort to round (i.e. touch base) with the back-up during Step 5 above to understand the magnitude of potential improvements. If significant, ask them to mark up a copy of the standard work with their ideas and discuss them with the process expert. This then becomes of topic of discussion for the debrief meeting. At the end of the day, our goal is to have capable back-ups at the ready for all processes and for processes to be continually improving. That’s especially valid for those processes that are mission critical. Allowing a process expert to commandeer a process puts both of those objectives at risk. RICK BRIMEYER is the president of Brimeyer LLC, an independent management consulting firm located in Ames which guides organizations to higher performance by focusing on process improvement and leadership development. Further information is available at www. brimeyerllc.com or by calling (515) 450-8855.
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