July-August 2014 by Connect Business Magazine

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IN MEMORIAM

The Story of Dr. Don Meredith Dr. Donald Charles Meredith passed away peacefully on March 25, 2014, at the age of 86, in the comfort of his Arizona home with his beloved wife Marjorie at his side. Meredith was Orthopaedic & Fracture Clinic’s second surgeon, joining Dr. Paul Gislason and the practice in 1959. From a company interview taken in 2005, then-retired Dr. Meredith shared this story of first seeing Mankato and renting a home in lower North Mankato:

Don Meredith 1927 – 2014

“After being in Mankato two years, Dr. Paul Gislason (the founder of Orthopaedic & Fracture Clinic) telephoned in April 1959 to ask me to look over his practice and Mankato. He wanted a partner. My wife and I drove in to Mankato on old US 169, which is North Riverfront today. In those days Mankato didn’t look very vibrant coming into town from that direction. We almost turned around and went home to St. Paul. Mankato was smaller than Fargo, my hometown. But we soon learned it had a huge drawing area of more than a quarter million people that didn’t have any orthopaedic surgeons except for Paul Gislason. So we moved here two months later. In 1959, Mankato didn’t have a lot of available housing. Paul and Marian Gislason were helping us look, even for basement apartments. We finally found this house in North Mankato at 802 Lyndale on the corner with Monroe, owned by the creamery owner in Henderson. It had two stories, the second being an expansion of the attic. I had to duck to get in there. You could still see the level where the 1952 flood had reached, near the windowpanes. The creamery owner charged us $125 plus utilities per month. Marjorie and I had three children, another on the way, a dog named Rags, and a cat named Spats. Our fourth child was born February 1960. When our fifth child was born in 1962, we had to move. So we had Janet, Nancy, Donald, Bruce, and Barbara. It was too crowded. We moved on Thanksgiving Day 1962.” —Dr. Don Meredith (2005). The physicians and staff of The Orthopaedic & Fracture Clinic carry on the tradition of Dr. Don Meredith through our focus on the health and well being of our patients and our commitment to our community.

Mankato, Faribault, Hutchinson, Northfield and 14 outreach clinics. 14 physicians and 110 employees.

507-386-6600

ofc-clinic.com

JULY/AUGUST 2014

Contents

THE MAGAZINE FOR GROWING BUSINESSES IN SOUTHERN MINNESOTA

STAFF & CONTRIBUTORS Publisher: Jeffry Irish

COVER STORY

Editor: Daniel J. Vance Art Director/Staff Photographer: Kris Kathmann

Medical Morphing

Advertising Manager: Steve Persons

To an outsider, the name The Mankato Clinic could sound a bit haughty, maybe bigheaded, as if it thought “The” Mankato Clinic was the only clinic in Mankato good enough to rate as a clinic, similar to what “The” Ohio State University often sounds like to students at other Ohio universities. Yet it isn’t.

Contributing Photographers: Daniel Dinsmore, Art Sidner Contributing Writers: Carlienne Frisch, Diana Furchtgott-Roth Production: Becky Wagner Josh Swanson Circulation: Becky Wagner

PROFILES

The Steindl

Printing: Corporate Graphics, N. Mankato

Mailing: Midwest Mailing, Mankato Cover Photo: Daniel Dinsmore

Every real-life Erbert & Gerbert’s sandwich shop franchise—this is a real story now— features silly sandwich names derived from insanely fictional tales like those above. The Geeter, Bornk, Pudder, Girf, and Morehouse really exist as sandwiches.

Knack For Vac

CIRCULATION 8,800 for July/August 2014 Published bimonthly

CORRESPONDENCE

Send press releases and other correspondence: c/o Editor, Connect Business Magazine P.O. Box 452, Nicollet, MN 56074

E-mail: editor@connectbiz.com (please place press releases in email body) Web: www.connectbiz.com Phone: 507.232.3463 Fax: 507.232.3373

COLUMNS

Editor’s Letter Off-The-Cuff

ADVERTISING Call: (507) 232-3463

ABOUT CONNECT

Locally owned Connect Business Magazine has ‘connected’ southern Minnesota businesses since 1994 through features, interviews, news and advertising.

IN EVERY ISSUE

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Hot Startz!

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National Opinion

Manhattan Institute’s Diana Furchtgott-Roth pens her own graduation address for Fed chair Janet Yellin. 4

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Connect Business Magazine is a publication of Concept & Design Incorporated, a graphic design firm offering print design, web design, illustration and photography. conceptanddesign.com

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EDITOR’S LETTER

Something For Everyone From regional healthcare providers to chimney sweeps to creative sandwich names, Connect Business Magazine covers the gamut this July/August issue to offer everyone something. “Regional healthcare providers” refers to The Mankato Clinic, locally owned and operated for about 100 years, and always with sensitive hearts caringly responding to next-door neighbors’ healthcare needs. This 135 physician-strong clinic is one of the largest privately owned multi-specialty practices in Minnesota, with curative outposts in Mapleton, Lake Crystal, North Mankato, and St. Peter—besides a half dozen locations in hometown Mankato. Lately, the Clinic itself has been pregnant and soon will give birth to a 56,000 sq. ft. Mankato Clinic Children’s Health Center. Next, “chimney sweeps” could only mean Liz and Steve Melcher of Melcher’s Power-Vac, a long-time, one-of-a-kind, Janesville service business that cleans air ducts, chimneys and dryer vents. Finally, “creative sandwiches” refers to Mike Steindl and his tasty collection of Erbert & Gerbert’s franchises in Mankato (two), St. Peter, and North Mankato. Finally, and now finishing his eighteenth year at Connect Business Magazine, the editor would like to thank all our enthusiastic readers and advertisers for allowing him to have so much fun over so many years. Sursum ad summum,

Daniel J. Vance

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Regional provider has become one of Minnesota’s two largest independent, multi-specialty clinics. The Mankato Clinic isn’t. To an outsider, the name The Mankato Clinic could sound a bit haughty, maybe bigheaded, as if it thought “The” Mankato Clinic was the only clinic in Mankato good enough to rate as a clinic, similar to what “The” Ohio State University often sounds like to students at other Ohio universities. Yet it isn’t. The upper management team, which includes Chief Executive Officer Randy Farrow and Chief Medical Officer and Psychiatrist Dr. Julie Gerndt (see left), began charting about six years ago a much more bottom-up, egalitarian course involving patients and providers rather than one top-down, do-as-you’re-told. Also, The Mankato Clinic Foundation, which receives funding mostly from its owner/physicians, has caringly and quietly donated more than $1 million over the last

five years to regional causes. Nothing bigheaded about it. The “Mankato” in The Mankato Clinic isn’t, too. This 98-year-old, physician-owned, 725-employee, multi-specialty clinic with 135 providers has outposts in St. Peter, Lake Crystal, North Mankato, and Mapleton, along with multiple Mankato locations. Nothing solely “Mankato” here. And finally, the “Clinic” in The Mankato Clinic infers a place where patients go to receive medical treatment, which couldn’t be further from the truth considering The Mankato Clinic has provider teams of geriatric physicians and nurse practitioners going directly into assisted living and memory care facilities. The name has been branded far too long to change. It has morphed into more. continued >

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CONNECT Business Magazine

Medical Morphing

“So that’s what we have to protect first and foremost— maintaining the direct relationship between a provider and patient, which includes maintaining their trust in what we do, making sure the care we provide meets current standards, and listening to them.”—CEO Randy Farrow. What are your responsibilities as CEO, Randy? To work with all the key stakeholders of the Clinic to create a vision for where we want to go and to help define our mission, values, and culture. Our stakeholders are our patients, board of directors, medical staff, employees, community, employer groups, and insurance companies. Do you see yourself more as the rudder or the engine at the back of the boat?

I’m more the engine at the back. I’m trying to draw on the knowledge and expertise of all the stakeholder groups to establish a plan to move the Clinic forward. I don’t necessarily have to be the person creating the plan. I’m obviously involved, but we have a lot of really smart people here. I like tapping into their knowledge and expertise. Have there been instances in which key stakeholders have had completely different ideas about where they

wanted the Clinic heading? Sure, that happens. We’re going through a lot of change now, especially in trying to create more transparency around our clinical quality and patient satisfaction results. For the most part, we have an organization that realizes the need to change, but we also have folks that need to be brought along. Our challenge is creating a pace of change the organization can accept and change that is sustainable. So we try helping the stragglers understand why certain changes

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Randy Farrow and Dr. Julie Gerndt

are important and how those changes connect to our mission. You don’t always have agreement out of the gate. It sounds like one of your roles is to sell the direction you have decided on. I would say that’s a big part of what I do. Julie, what are your roles as chief medical officer? My focus is more on the physicians and helping them get engaged in the direction Randy leads, and making sure our patients are up front in everything. The most important thing we talk about is taking care of relationships. When it comes down to it, in the practice of medicine, our top relationship is with our patients. So that’s what we have to protect first and foremost—maintaining the direct relationship between a provider and patient, which includes maintaining their trust in what we do, making sure the care we provide meets current standards, and listening to them. Sometimes their choice

(in care) does not line up with current standards. They may have other circumstances in their lives or situations that draw them towards a different choice. It seems it would be a tightrope walk sometimes. You operate a business and have to move people through, but you also have to relate well to the patient, which takes time. If they don’t feel heard, they may not come back. (Julie) Providers can know all the latest medical research on a particular health problem, but if they aren’t understanding what the patient wants or needs or their circumstances, they may not be successful. Or if their delivery is poor. Then we haven’t met our mission of serving our patients. What do you mean by “if their delivery is poor”? Things like bedside manner, how well they know their patients, and their sensitivity to what their patient is feeling and thinking.

Mankato Clinic is one of Minnesota’s largest physician-owned, multispecialty groups, with 135 physicians and advanced practice providers. Are you the largest? (Randy) It’s between us and a similar group in Willmar. Our two really are the last large multi-specialty groups left in Minnesota that haven’t joined or become part of a larger system. Go into detail about the process of a physician becoming partowner in Mankato Clinic. (Julie) It starts with recruitment. When recruiting, we’re looking for well-trained people, with good interpersonal skills, who share our values and a willingness to work within our structure. We look for people with leadership skills or some interest in leading. After they begin working here, at the end of the first year, we look at how the year has gone, and their practice, and the board decides whether to offer shareholder status.

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CONNECT Business 5/30/14Magazine 8:53 AM

Medical Morphing

“In terms of recruitment, we look for people that value having some ownership and a say in things. That’s our business model. If we’re going to be successful, we have to have our physicians out front leading.”—CEO Randy Farrow. Do they have to buy in? (Randy) There is a buy in, but it’s more symbolic. You purchase a share of stock for $3,600. What that gives you is the right to have a say in electing the board of directors and voting on significant by-law changes. When retiring or leaving, providers get back their $3,600. Our arrangement is unlike that of some groups where the stock value changes over time according to corporation assets. Whoever set up our system was wise. For one, we don’t want to create any barriers for physicians wanting to join our group. Most physicians come out of medical school with a lot of debt. If on top of that they had to buy in for up to several hundred thousand dollars, that would hurt our recruitment and make their potential leaving complicated later on in terms of deciding on what their stock was worth.

In terms of recruitment, we look for people that value having some ownership and a say in things. That’s our business model. If we’re going to be successful, we have to have our physicians out front leading. We’re physician led, and the physicians hire business people, like me, to help run the business. It would seem your clinic would have a recruiting advantage over other healthcare providers in our region because you offer ownership. Do you believe the carrot of ownership helps you recruit a higher quality candidate? (Randy) It brings in a different type. Some people like the security of joining a larger system, working eight to five, getting a paycheck, and not having to worry about the business aspect. We don’t have the deep pockets of a larger system. When buying into our model,

Re-introducing

CONNECT Business Magazine

JULY/AUGUST 2014

Randy Farrow and Dr. Julie Gerndt

you’re perhaps taking more risk, but the rewards can be there for people who like that path. We’re looking for physicians that want to have a say and that take ownership in our future. So yours is more of an entrepreneurial model. (Randy) Yes.

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It seems your ownership model would have less turnover. (Julie) We have very little. The vast majority of physicians stay here and put down community roots. They tend to be a hard-working, ambitious bunch who like having a say in their business. They’re fairly involved in committees. Our leadership is decentralized. What committees can a physician be on? (Julie) Finance and budgeting, compensation, electronic health records, quality, and improvement projects. We have team meetings at each of our ten sites. We have not only local ownership, but also local decision-making. Tell me about your family background, Randy? I grew up primarily in Rochester. My mom was a nurse and my dad, a Mayo physician for 32 years, had a distinguished career as a pathologist. At college, I had leanings toward medical school, but found, as I took course work, that medicine wasn’t for me. Instead, I went on a

Medical Morphing

What They Offer Begun in 1916, The Mankato Clinic is a physician-owned, multi-specialty practice clinic offering the following specialties: Allergy; breast health imaging center; cardiovascular medicine; dermatology; diabetes and nutrition education center; diagnostic imaging; doula services; ear, nose, and throat/facial plastic surgery; eye care center, family practice, foot and ankle; gastroenterology, Health Care Home at The Mankato Clinic; internal medicine; laboratory, laser refractive eye surgery; fertility program; nephrology; nuclear medicine; obstetrics and gynecology; occupational medicine; oncology/ hematology; optical center; pediatrics; plastic and reconstructive surgery; psychiatry and psychology; pulmonary medicine; sleep center; surgery, including colon and rectal; urgent care; urology; and wound and ostomy care.

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Medical Morphing

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business track. After college, I didn’t start out in healthcare and didn’t know then I would later be going into it. After finishing my masters in business administration, I started with a small company as a financial analyst. Eventually, I had an opportunity to get into healthcare with Health One, a predecessor organization to what became Allina Health. I was with Allina almost 20 years. You had six positions with Allina from 1989-2008 before joining Mankato Clinic. Of the six, which was your favorite and why? My work at Mille Lacs Health System was very rewarding. It was my first job as an administrator after coming through the financial ranks. I had a good mentor, Tom O’Connor, who suggested I apply for the Mille Lacs Health System job. What did he see in you? He realized I had the capability to create relationships and the momentum necessary to move an organization forward. I had people skills. Mille Lacs was struggling. It had a small hospital, an attached nursing home, and three clinics. Financially, it was on a downward spiral. They had just terminated their CFO and CEO. There were morale issues. The board was disillusioned. It was a tall order on my first administrator job for me to figure out how to move things in a positive direction. It wasn’t easy, and I made mistakes, but we built momentum and thought positively about the future. The community supported a major fundraising venture and we remodeled the hospital and nursing home. When leaving, I felt a sense of accomplishment—that I had done something to make a difference in the community. What about you, Julie? I grew up in Manitowoc, a town similar to Mankato. My father was a surgeon in a multi-specialty clinic, much like what Mankato Clinic was 20 years ago. I grew up with him being on call every third night and up at night taking care of patients. I wanted to go to medical school and take care of people, too. When I started as a premedical student, women made up about three percent of medical school classes.

Randy Farrow and Dr. Julie Gerndt

I’m the oldest of six. Five of us are physicians and the other is a nurse. My mother was a nurse. Does your family get together on holidays and talk? If so, what’s the conversation like over meals? We have big family gatherings. Most my siblings are in surgical or surgical-related specialties. I am not. When younger as physicians, we talked shop a lot, and there was a little bit of competition. But now we’re in our late 40s and early 50s and mostly talk about our kids. When I first came to Mankato, my husband (a dentist) and I were both starting our practices. I was looking for a psychiatry practice where I could share a call because I knew I wanted to have kids. So I joined the Psychiatric Clinic of Mankato, and had a wonderful mentor there, Delmar Eggert. We shared patients with physicians at Mankato Clinic, and former (Mankato Clinic) CEO Roger Greenwald was a supporter of our practice as I gained more experience and took on more leadership responsibilities. In 2001, we decided to merge our clinic into Mankato Clinic. I worked as a Mankato Clinic division chair for a year before deciding the boardroom was where I wanted to be. I was one of the first women on the board, the first female chair of the board, and was board chair when Randy was recruited. (Randy) She was a big reason I came here. (Julie) We had our eye on building transparency and a culture that wasn’t fear-based, a culture that could put the interest of medical practice and patient care first. We got what we were looking for in Randy. What impressed you with Randy, then and now? (Julie) He’s wonderful in creating relationships. He reads people well and brings people together for successful, creative solutions. He relates to physicians in a way that generates trust. Our culture here is different than before. Randy, I haven’t said all this in front of you before. (Laughter.) But I have said it behind your back. (Laughter.)

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JULY/AUGUST 2014

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Medical Morphing

Children’s Health Center addition on the Wickersham campus.

What do you love about psychiatry? I love listening to stories and hearing about patient’s lives. I love having a positive impact on the quality of their lives and on what they can accomplish. As a medical student, I first was interested in neurology, but when going through the psychiatry

CONNECT Business Magazine

JULY/AUGUST 2014

rotation, figured out I could have a greater impact if I practiced psychiatry. Mankato Clinic has a pediatric center coming, the Mankato Clinic Children’s Health Center. What went into the process of going

forward with that center? (Randy) As part of our strategic planning process a year ago, we looked at our strengths. We’ve always been strong in pediatrics and women’s health. We were out of space at our main clinic. We realized if we moved pediatrics (to another site)

Randy Farrow and Dr. Julie Gerndt

and created a center there geared toward kids, we could build on our strong pediatric program. It also would benefit the community. Gillette Children’s Specialty Healthcare will be a tenant and bring in more specialized pediatric sub-specialists. We’re also partnering with Pediatric Therapy Services. In terms of Gillette, some of their patients have to drive to the Twin Cities to access their services. Those services will be available here now. The new pediatrics building will be unique. For many kids, seeing the doctor isn’t fun, but this will be fun. We’ll have nature scenes of kids doing healthy activities, for instance, in order to promote both health and wellness, and line up with our mission and vision. (Julie) Integrated with that will be child psychiatry and psychology services. Ecumen Pathstone in Mankato has a new program in which their residents are being weaned off some

anti-psychotic medication. Are you familiar with the program? (Julie) The move to try to take our older patients and frail elderly off atypical antipsychotic medications was a mandated change led by the State of Minnesota. It makes good sense based on medical information and the risks of the drugs. Some of my patients have had lifelong mental illnesses, and will need to stay on their medications because it would cause them misery if they don’t. I am familiar with the program and very supportive. But when you mention Ecumen, we’ve made a commitment, not only to serve the younger members of our community, but also our frail elderly patients in assisted living facilities. We have a new program called Bluestone Vista@Mankato Clinic, which provides primary care services on site. We’re making it possible for people to get their imaging studies and labs at their assisted living facilities, so they don’t have to go out in winter cold to see their doc-

tors. We’re addressing chronic illness and new acute problems on site and helping them avoid the hospital. We just started in February. Who are you partnering with? (Randy) Ecumen Pathstone, Oak Terrace, Primrose, Laurel’s Edge, Keystone, Cottagewood Senior community, Ecumen Country Neighbors in Lake Crystal and Mapleton, Heritage Place—Mapleton, Monarch Meadows, Pheasants Ridge, Sterling House, Waters Edge, and Autumn Grace. We have our care team in place, including Dr. Tom Brennan, who joined us in June, and a nurse practitioner and a team coordinator. It’s a model that fits the patient-centered medical home concept of getting to know the residents, their families, and staff, and working as a team in a more proactive approach to care. (Julie) One key component is we’re using technology to support communication between the team and patient family members.

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Medical Morphing

Getting to know you:

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Born: December 7, 1960, Shaw Air Force Base, South Carolina. Education: John Marshall High (Rochester) ‘79, Gustavus Adolphus ‘83; Colorado University ‘85, MBA.

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Education: Lincoln High School ‘75 (Manitowoc, Wisconsin), University of Iowa Medical School ‘83. Involvement: First Presbyterian Church (Mankato), stewardship committee; Minnesota Psychiatric Society, member; Minnesota Medical Association, member; American Medical Association, member; American Medical Group Association, member, chief medical officer committee.

Randy Farrow and Dr. Julie Gerndt

“I hear from people in the community that a different sort of attitude and culture now exists at Mankato Clinic. The physicians feel they are making a difference, and have a nice balance between autonomy and being part of a well-functioning system.”—Dr. Julie Gerndt. Due to the Affordable Care Act (Obamacare), your number of patients should be rising the next couple of years. Yet the ACA didn’t address increasing the number of physicians to meet growing demand. Right now, a shortage of psychiatrists exists, for example. Something has to give. What’s going to happen? (Julie) We will continue to recruit physicians. But we also will have to build care team models to fill gaps. I anticipate we will have more nurse practitioners and physicians’ assistants, and will make sure we have physician expertise available to all patients. To successfully recruit physicians, we have to have an organization attractive to physicians. (Randy) We believe the new people with coverage will start accessing healthcare differently. For example, rather than waiting for a condition to get out of control and showing up in the emergency

room, we hope the new people will begin establishing a relationship with one of our primary care teams and getting care to prevent more serious acute issues. I don’t know how big the (physician demand increase) will affect this market because we don’t have a high uninsured rate. We’re thinking the bigger increase in demand will occur on the front end in terms of primary care and preventive medicine. What is your sales pitch to recruit physicians fresh out of medical school to Mankato? (Randy) Many like that we’re multi-specialty. They get a chance to meet their colleagues here. They know the people they refer to and can pick up the telephone or walk down the hallway (to consult). We have seasoned physicians here to mentor younger ones, which can be a selling point to physicians just out of residency. (Julie) I hear from people in the community that a different

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Medical Morphing

sort of attitude and culture now exists at Mankato Clinic. The physicians feel they are making a difference, and have a nice balance between autonomy and being part of a well-functioning system. They have opportunities to grow professionally. So if a young physician has opportunities to grow professionally and has a reasonable amount of autonomy, and is successful, and does meaningful work—meaning he or she has relationships with patients that matter—that physician will likely stay. You’re familiar with the business model at New Ulm Medical Center. Why haven’t many other groups adopted their model? (Randy) They have a model in which the hospital is part of a larger, nonprofit system that works with an independent clinic group. The physicians are integrated into the medical center, which results in patient continuity of care. The physicians take advantage of the many good resources in that system. It’s a nice model, but doesn’t always work. You have to have a hospital willing to work with the physician group. If you don’t, then it likely wouldn’t work. Randy, with you I see a man who worked for Allina Health 19 years. I also see an independent hospital in St. Peter that used to be managed by Allina and if they were to affiliate again probably would do so with them. Allina Health already has a presence in this region at New Ulm Medical Center. I also see Mankato Clinic as one of the last two big independent physician groups in Minnesota that hasn’t merged with a larger system. I put all those pieces together and wonder of the possibility of anything happening between Mankato Clinic and Allina Health? (Randy) There are always possibilities. I think people were a bit nervous when I first came here because I had a strong Allina background and some thought I might be trying to steer us that direction. We look at our independence every year in meetings, and discuss whether our business model is sustainable or do we need to affiliate because of everything changing in

Randy Farrow and Dr. Julie Gerndt

healthcare. At this point, we have a model that works. We value independence. As of now, I don’t see us losing it. But do we want to partner with the hospital in St. Peter on certain things? Absolutely. We’re in discussions with them to figure out how we can support them. We also have a clinic in St. Peter. We’re always looking for partnering opportunities. But do we want to sell out? No. Do we want to merge? No. Describe your relationship with Orthopaedic & Fracture Clinic? (Randy) Historically, it has been strong. There were strained relations when we hired our own orthopedic surgeon in the mid-’90s. But then we had a joint vision to build a surgery center together at Wickersham Campus, where we’ve been 50-50 partners. We’re both independent, and have wanted to create opportunities to work together and not compete. Several states have enacted medical malpractice liability limits. For example, in Texas, I believe, the limit is $250,000. Other states have higher amounts. What’s your take? (Randy) Selfishly speaking, we would like to see caps. We know of one physician group in the Twin Cities that didn’t have adequate coverage and had a judgment against them of about $20 million. They were forced into bankruptcy and eventually merged into one of the larger systems that became part of Allina Health. As an independent group, we’re nervous about risk and we take out a lot of insurance. It adds to our costs. Our malpractice rates compared to many other states are fairly reasonable, though. There are some states where physicians have left because they couldn’t economically sustain a practice due to high rates. As for electronic medical records, what safeguards do you have in place to insure a patient’s records aren’t seen by unauthorized personnel or tampered with by hackers? (Julie) We have an elaborate safety plan that is reviewed annually. We have strict federal rules to follow internally and cues within the electronic health records to

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Medical Morphing

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remind everyone of the rules. Back in the old days, when records were kept on paper, it would have been easier for someone to just open up a paper folder and look over a patient’s records. And if someone opened up paper, we had no way of knowing who did it. Electronically, if going into a file, you leave a footprint that lets others know you were there. (Randy) Another thing we’ve done is put encryption into our laptops, so if someone stole one, it would be virtually impossible for them to get in to any records. In fact, we can remotely initiate a self-destruct kill command on a laptop, like with Mission Impossible. When you first come into work, what is your number one priority? (Randy) Coffee, initially. Dark coffee, with lots of caffeine. (Laughter.) Seriously, it’s always on my mind that we’re moving in the right direction fast enough. What keeps me up at night are the unknowns, such as what’s happening with healthcare reform. We have mid-term elections coming. Will that change things? We’re focused on patients to improve their health and experience here, and are mindful of making care more affordable. We have to let the chips fall where they may on things we can’t control. (Julie) Another challenge is recruiting people with a strong sense of direction, who tend to be entrepreneurial, hard-working, hard-driving. Keeping them going in the same direction and focused on the same goals is a challenge. River’s Edge Hospital and Clinic is sending physicians on site to a manufacturer, LeSueur Inc. They’ve helped reduce LeSueur’s healthcare costs. Have you considered offering partnerships like theirs with businesses? (Randy) Absolutely. We have a strong occupational health program and have established contracts with a number of larger employers. We’ve been meeting with employers to talk about changes in healthcare and their risks in terms of providing insurance and what can we do to partner

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Randy Farrow and Dr. Julie Gerndt

with them in a more comprehensive way to lower their costs. We’ve talked about on site clinics to achieve savings.

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—Dr. Julie Gerndt. What systems do you have in place to receive input from stakeholders? (Julie) Over the last three years, we began including patients in our decisionmaking process. We ask them what they want. We have an advisory committee. We started this new system a year ago with a pediatric advisory group for our children’s health center and expanded it to include a broader spectrum patient group. Our communications director finds people over the whole spectrum, including parents of children with special needs, older patients with chronic illness, and caregivers of older patients. We seek people who aren’t afraid to speak their mind. Do you talk to each person separately or in a group? For example, if I JULY/AUGUST 2014

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were an 85-year-old senior and there were physicians at the table, I might be hesitant to speak. (Julie) The people we pick are all pretty vocal. (Laughter.) They feed off each other. The questions vary depending on the project. We’ve lately been asking them questions about how they define access. The conversation is dominated by them, not providers. The physicians are there mostly to observe. Julie, when you have been in the room, what has surprised you? That seniors are using technology—not with the same intensity as our teens, but they want access to their providers through email and chats, too. We’re trying to design systems that match what we hear. Anything else? (Randy) I’m still relatively new, but the Clinic itself has been around nearly 100 years. Mankato Clinic has a very good group of people that has come together. The times are uncertain, but we have hung together, grown, responded, and evolved. We want to be here another 100 years for the area, and keep working hard to provide high-quality service. And if you’re hiring entrepreneurialstyle physicians, you seem well positioned for uncertain times. (Julie) I came here because Mankato was similar to the community I grew up in. I began working here because Mankato Clinic had a group of physicians I wanted to be associated with. We’re involved in the community. We raise our families here, and belong here, and we stay. When you live in the community, the people you take care of are your neighbors and friends. Editor Daniel J. Vance writes from Vernon Center.

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CONNECTING BACK 5 YEARS AGO

JULY/AUGUST 2009 The forever-great Sir Henry Wellcome posthumously “appeared” on our cover and was “interviewed”—our first-ever interview with a deceased person. This Garden City-raised entrepreneur became southern Minnesota’s greatest businessperson ever, eventually being knighted by King George V in 1932 and creating the Wellcome Trust, which today is England’s largest charity, with an endowment of far more than $20 billion. He passed away in 1936. Essentially, he was the pharmacist to the British Empire. As we stated in our introduction, “For the first and possibly only time in world history, a manufacturing company (Burroughs Wellcome & Co.) reorganized (under Wellcome) solely for the purpose of using profits to fund scientific research benefiting mankind.” Companies profiled: Arabian Horse Times (Waseca) and All Pro Media (Mankato). 10 YEARS AGO

JULY/AUGUST 2004 Wade Hensel of BENCO Electric and Brown County REA made our cover. One memorable quote from Hensel: “A completed four-lane Highway 14 would greatly enhance our opportunities for economic development by improving access to I-35. And a new road would be safer. Friends of mine have died on that highway. I work in Mankato and Sleepy Eye, and frankly I avoid Highway 14 by taking Highway 68 and county roads. A completed Highway 14 also would offer better access to Rochester and its medical facilities.” Companies profiled: Canyon Outback (New Ulm) and Birds Eye Foods (Waseca). 15 YEARS AGO

JULY/AUGUST 1999 The late owner of Café Camarda and Express Personnel Services appeared here: Rick McCluhan. He also was state chair of the Minnesota Reform Party. Companies profiled: Hendrickson Organ Company (St. Peter) and Winland Electronics (Mankato). 20 YEARS AGO

JULY/AUGUST 1994 This issue featured a special report on corporate wellness, and profiled Crysteel Manufacturing (Lake Crystal) and Kasota Neon. 26

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Read the entire articles at connectbiz.com

BUSINESS TRENDS

INCOME

The Federal Reserve Bank of Minneapolis 2014 annual report, titled “Inequality, Recessions and Recoveries,” examined, in part, whether income divides had widened from 1967-2012 between upper- and middle-class households, and between middle-class and lower. Popular belief has been the gaps have greatly widened over the last decade. Its authoritative answer: kind of yes, but really no. The Minneapolis Fed came to its conclusions by employing two measures: first, the 95/50 ratio, which compared changes since 1967 in the market and disposable incomes of 95th percentile and median (50th percentile) households, i.e., the “upper” and “middle class”; and the 50/20 ratio, which compared median- (50th percentile) and lower-income households (20th percentile) over the same 45-year period. The Fed definition of market income includes salaries, wages, business and farm income, interest, dividends, rents, and private transfers (including child support and alimony) of every household member. Its definition of disposable income started with market income, and added on to that government transfer payments, such as Social Security and unemployment insurance, while subtracting total tax liabilities. In short, a person could view market income as gross income, and disposable income as net after taxes. To provide context, in terms of real dollars, the 95th percentile U.S. market household income in 2012 was $270,000, and the median (50th percentile) market household income was $74,000. The former amount is 3.65x higher than the latter, thus a 3.65 95/50 ratio.

Applying the 95/50 ratio only to market income, the divide between upper and median households was near an all-time high in 2012, having reached its all-time high of 3.7 in 2011. The 45-year low of 2.3 occurred in 1980. On the surface, this would appear to buttress the argument that the upper- and middle-class divide has been widening. Likewise, the 50/20 ratio had a high of 3.0 in 2010 versus a low of 2.0 in 1969, which would suggest the income gap between the middle- and lower-class also has been widening. But this tells only half the story. A clearer picture can be discerned by applying the same ratios to disposable income, which represents “net” household income after taxes and transfers. In terms of disposable income, the data doesn’t show any significant disposable income gap changes from 1996-2012 between the 95th percentile and 50th percentile households, or any from 1983-2012 between the 50th and 20th percentile. The difference between the market and disposable income gap changes can be attributed to government redistributive tax and transfer policies, said the Fed. Two of these redistributive policies have been the Earned Income Tax Credit and the 2008 Stimulus Plan transfers, and soon will include Obamacare. Other transfer policies include an expansion in food stamp and disability benefits, and even such programs as helping people in the lower income class receive free government wireless telephone service. The Fed used for its analysis U.S. Census Bureau Current Population Survey data. In summary, the market income “inequality” gap rose to a post-World War II high in 2012 at both the 95th and 20th percentiles, meaning, in terms of market income, the poor have been getting poorer and the rich richer. The Fed said the primary culprit for the poor being poorer in market income was a “very large increase” in long-term unemployment, i.e., the lack of attractive job opportunities. However, in terms of disposable income, redistributive government tax and transfer policies in recent years have kept the class divide stable. So rather than the rich getting richer and the poor poorer, everyone, including the middle class, has been staying about the same relative to each other.

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By Daniel J. Vance Photo by Daniel Dinsmore

Mankato franchisee owner has successful sandwich stores in Mankato (two), St. Peter, and North Mankato.

A long, long time ago, back when people didn’t eat sandwiches, a thoughtful soul named Mike Steindl dreamed of owning four successful Erbert & Gerbert’s sandwich shops, in Mankato, St. Peter, Mankato (again) and North Mankato. Except back then he didn’t know where the shops would be or even what a sandwich was because he and his neighbors ate only asparagus. But he had this dream, you know. One day he rode his white 1991 Chevy Corsica atop Mt. Kato and from his dream memory spontaneously shouted out his window to all the valley people below the names of, as yet, non-existent Erbert & Gerbert’s sandwiches: Geeter. Bornk. Pudder, Girf, Morehouse. From that day on, the valley people began calling anyone driving a white 1991 Chevy Corsica and shouting memorable but nearly unpronounceable sandwich names from Mt. Kato a Steindl, or sometimes just Mike, depending on their mood, which made Mike very merry. One day he would own four Erbert & Gerbert’s franchises that sold those exact same sandwich names, which forever and ever taught him that dreams have good consequences. Every real-life Erbert & Gerbert’s sandwich shop franchise—this is a real story now— features silly sandwich names derived from insanely fictional tales like those above. The Geeter, Bornk, Pudder, Girf, and Morehouse really exist as sandwiches. You can read the fictional stories behind these sandwich names and others on delightful posters inside each location. The father of the founder of Erbert & Gerbert’s used to tell these types of tall tales to his children, and so the founder’s son later turned them into menu items. A real Mike Steindl exists (see right), and today he owns and operates four of these Erbert & Gerbert’s sandwich shops, in Mankato (two), St. Peter, and North Mankato. Steindl had a lifelong dream of being a small business owner. His sandwich shop on Front Street in downtown Mankato was his first and is his best, and has been the 70unit, Wisconsin-based, franchise’s overall best seven times, in 1997-99, 2000, 2005-06, and 2010. Since the late ‘90s, Steindl has been on the franchise’s President’s Advisory Council, and currently is one of only four franchisees on. In late 1996, at age 32, he partially financed his first Erbert & Gerbert’s with $10,000 from selling his pickup truck and another $15,000 borrowed from his sister and parents, which he repaid, with interest. Now at age 49, Steindl, and his real-life story culminating in his being a small business owner, have more of a storybook feel, just like his sandwich names. continued >

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JULY/AUGUST 2014

The Steindl

Steindl arose from an unlikely background to become a successful franchise owner. He was raised in Evansville, Wisconsin, a rural city about the size of Le Sueur, and had five brothers and sisters, but was more an only child given his siblings all were at least nine years older. He said in a Connect Business Magazine interview from his 501 S. Front restaurant, “I was the only one of the six to complete a four-year college degree. My father worked at the General Motors plant in Janesville (Wisconsin) as a tinsmith doing sheet metal work, and my mother worked on the assembly line at Parker Pen Corporation. My dad worked third shift, mom the first, and the two traded off on childcare. One fundamental ethic in the family was working hard and believing good things would happen from it.” When Steindl was eight, his older brother and role model, 18-year-old Harlan Jr., was upset with his girlfriend one night and sped

through town in his car while being chased by local police. Harlan failed to navigate a sharp turn and crashed into an embankment, ending his life. Mike had looked up to his big brother. “With Harlan dying, it was (especially) difficult for my dad, Harlan Sr.,” said Steindl. “Because of my age, it didn’t really sink in at the time. But when I talk about it now, it brings back memories. Though 41 years ago, you never lose the memory. It makes you appreciate the time you have with the ones you care about.” He said his strong, close-knit family persevered through the grief. Today, as if a big brother, he sometimes has conversations with college-age employees dealing with relationship issues. It seems ironic Steindl chose South Front Street in Mankato as the site of his first franchise, right smack in the middle of what many people call Mankato’s Barmuda Triangle, an area teeming at night with 18-year-old students.

“I don’t really know where my desire to own a small business came from,” said Steindl, continuing on. His first experience owning a business involved trapping muskrat, raccoon, and mink, and selling the pelts for cash. He and a friend did it for three years in high school. During a six-week window each fall before the first freeze, the pair rose at five a.m. before school to run their trap line. He alone earned nearly $2,000 doing it. In high school, he also had odd jobs baling hay and milking cows for local dairy farmers. But his best managerial experience—extremely helpful later on—came at the Evansville municipal pool, where he was a swimming instructor and lifeguard over three summers and the de facto manager over 15 employees his last year. He said, “It was fun working with kids, and just seeing them succeed and grow. I enjoyed teaching the kids. Plus I had the

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Erbert & Gerbert’s | Mankato

A friend of his from college before, at the time, was in Eau Claire as the corporate trainer for a new franchise sandwich shop operation, Erbert & Gerbert’s. “So I called him and said I had always wanted to have my own business. I asked him to tell me about Erbert & Gerbert’s,” he said. responsibility of being in charge of the pool my last year. I would get up at six a.m. to wash the deck and get everything ready for lessons. We had a concession stand, too. It was my first managerial experience. I believe the city pool director hired me as manager (the last year) because I had the desire to do things right. I do a complete job and don’t cut corners.” Steindl set out on his own in September 1983 to earn a degree at the University of Wisconsin-Eau Claire because of its business school reputation and to fulfill his dream of owning a small business, specifically then, a resort in northern Wisconsin. His vision for his future sort of evaporated right before his eyes, and lasted only 18 months, before he had to return home to Evansville. He said, “I was having too much fun and not being responsible. My parents had agreed to help me out with paying for school and I felt bad not fulfilling my end of the bargain.” This career derailment resulted in Steindl landing a job as a salesperson at Team Electronics, a Janesville (Wisconsin) computer electronics store, right when Apple computers were arriving hot and heavy on the scene. He learned salesmanship in a retail environment there, he said, and developed problem solving, listening, and people skills. After a year and a half at that, he returned to Eau Claire to finish his business degree, but this time he vowed to work his own way through school.

One job he had in Eau Claire for over two years was at Shenanigan’s, a bar and restaurant, an experience that laid the “framework for many of the business qualities I have now,” he said, including becoming detail-oriented, and learning about advertising and marketing. Having to pay his own way through college, he wouldn’t finish his four-year degree until 1990. At Erbert & Gerbert’s today, he encourages some employees in college struggling with career aspirations to perhaps follow in his footsteps—take a semester or two off to figure out life.

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After college, he eventually joined home improvement chain Menard’s, based in Eau Claire, which moved him around as an assistant manager to six different stores over a five-year period. His last move, to South St. Paul, occurred because the company, due to a non-fraternization policy, would not allow him to work at the same store as his girlfriend, Michelle, who was an assistant manager. She would later become his wife. At Menard’s, he learned a great deal about management and running a retail operation, he said, and was fortunate his first manager was one of the company’s best. Besides his experience at Menard’s offering further preparation for running a business, it also seeded in him a desire to move because of its policies. A friend of his from college before, at the time, was in Eau Claire as the corporate trainer for a new franchise sandwich JULY/AUGUST 2014

CONNECT Business Magazine

The Steindl

shop operation, Erbert & Gerbert’s. “So I called him and said I had always wanted to have my own business. I asked him to tell me about Erbert & Gerbert’s,” he said. “There were only about ten locations then, and the corporate headquarters was only two doors down from Shenanigan’s. I had eaten at Erbert & Gerbert’s before and they had great sandwiches.” The franchise rights were only $10,000 then and eventually he learned the build-out for his first location would be only $125,000. He would finance his first location, which began in 1996, in part by selling his pickup truck to scrape up $10,000 and borrowing $15,000 from his sister and parents. The rest came from an Eau Claire bank. It had taken him a full year to find the right city and location. He chose downtown Mankato, and specifically 501 South Front, after walking up and down Mankato streets introducing himself and inquiring about possible storefronts for rent. Mankato had a steady base of college students, which was important to Steindl for sandwich sales and for recruiting employees. It also had a rock-solid

The Steindl

Why Hockey? Erbert & Gerbert’s franchise owner Mike Steindl is president of the Mankato Area Hockey Association (MAHA), which serves 365 children who play at All Seasons Arena. He said, “I used to skate on the pond back home in pickup hockey games, but I never played organized hockey myself in school. My father used to take me to University of Wisconsin games. My wife is from Minnesota and hockey is in this state’s culture. My oldest boy here took a liking to hockey. So I went on the board five years ago, and became president a year ago.” When asked exactly what he does, he said, “What don’t I do as president? Our board wears many hats. It’s not easy being a nonprofit youth association. We try building awareness, and do mailers and send fliers into schools. We try keeping entry into the program at a low cost, provide equipment for kids, and have initiation programs at a low cost. Hockey is a fantastic game that teaches teamwork, discipline, and hard work. There are so many life lessons that come from playing any team sport.” 32

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JULY/AUGUST 2014

Erbert & Gerbert’s | Mankato

downtown business base from which to draw customers. “After spending a week in Mankato, I realized (501 South Front) was in the middle of the Barmuda Triangle. I knew we would need business at all times of the day. Lunch would be our strongest time, but anything after lunch would be a bonus. I knew the Thursday through Saturday night college bar crowd would help business.” That Front Street location, along with an efficient operation, would earn Steindl the Erbert & Gerbert’s “Franchisee of the Year” award a total of seven times, including his first three years in business, from 1997-99, and most recently in 2010. After South Front Street, Steindl went on to open additional shops in St. Peter (2000), Madison Avenue (Mankato, 2003), and North Mankato (2012), and even though those locations somewhat cannibalized sales, he was able through each new location to increase market share and improve service levels at a highly successful downtown location that had been perhaps too busy. Erbert & Gerbert’s currently has about 70 locations nationally and nearly 30 individual franchisees. As for his business today, Steindl said, “We’re a stepping stone for training our future leaders. Most of our employees are in the 18-22 age range, with the exception of my management staff, which has been with me quite some time. We’re trying to teach employees how to do the right things, such as being on time, following guidelines, being professional, making sure you say hi and thank you, and being appreciative of guests. Even the small things go a long ways.” Recruitment of employees was a much easier task in the late ‘90s, especially for the South Front location, when the Barmuda Triangle had fewer restaurant and bar options; but now, said Steindl, a college student has about 25 other work options within a two-block area downtown. “We haven’t lowered standards for the type of employee we’re looking for,” he said. “We especially want someone with an upbeat personality and a ‘see and do’ attitude, meaning they see something that needs doing and they just do it. There are lots of sub sandwich shops, but in order for customers to choose Erbert & Gerbert’s every time, we have to have great staff. We try to get to know customers

The Steindl

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Erbert & Gerbert’s | Mankato

We’re starting our eighteenth year in Mankato and that is a testament to our doing it the right way. If you do it best all the time, you’ll be successful long-term. on a first-name basis.” The business has marketing interns who, for example, take samples to local businesses for developing possible catering clients, contact incoming college sports teams to glean sales, and market through social media. Steindl said he gives interns some flexibility in terms of trying out new marketing ideas. He said his biggest challenges in running the business involve maintaining top-quality product, limiting food waste, and maximizing labor. As for the former, i.e., having a topquality product, he said, “I’m on the (Erbert & Gerbert’s) President’s Advisory Council

and in testing our product the number one thing we look for is taste. A (suggested) sub might be cheaper to make, for example, but if it doesn’t taste good, we aren’t going to use it. We’ve always had the best cold deli sandwich in the business. We have fantastic breads that are baked here, too.” Over the years, Steindl has had formidable Mankato competition, including some franchises that have come and gone, including Cousin’s and Mr. GoodSense, and then there is the current crop that includes Subway, Jersey Mike’s, and Jimmy John’s.

He said, “My managers and staff sometimes get nervous when a competing store opens (and some of our customers go there to try them out). I tell them we will be okay and if we concentrate on what we do best the customers will come back. We’re starting our eighteenth year in Mankato and that is a testament to our doing it the right way. If you do it best all the time, you’ll be successful long-term. This business is not a sprint.” Editor Daniel J. Vance writes from Vernon Center.

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OFF-THE-CUFF

July 4, 1776, was the date leaders of a hodge-podge collection of British colonies decided to thumb their collective nose at globular King George and form a fledgling nation. One catalyst for this American declaration of independence occurred three years earlier, in Boston, Massachusetts, after the British Parliament thought taxing East India Company tea for American consumption was an exceptionally good idea. In response, a group of Americans dressed as Native Americans tossed a shipload of this taxed tea into wet Boston Harbor on December 16, 1773. The British responded by tightening rather than relaxing the economic noose around Americans. Not the brightest move. First, let me preface my remarks here by saying I have never been to a Tea Party meeting or event, only know three people in this area associated with the Tea Party, and have discussed with only one of them anything substantive about what the Tea Party is or does. The latter was attorney Andy Johnson, a Mankato Tea Party organizer, back a couple years ago. Our telephone conversation then lasted perhaps fifteen minutes and was strictly related to gathering information for an issue of this magazine, for which

he was quoted. Heck, I don’t even know whether to call it the Tea Party or the tea party. Some people speaking for the Tea Party really jolt me. Others inspire. Most I don’t know a darn thing about. Yet I recognize their First Amendment right to free speech. The two people I know locally involved with the Tea Party—besides Andy Johnson, assuming he’s still involved—definitely aren’t card-carrying Republicans, but more libertarian and independent. They are business owners. Let me take you back to May 2013, when the Mankato Tea Party organized a protest outside a Mankato IRS office. According to eyewitnesses I interviewed, who are the two unnamed business owners I mentioned, a Department of Homeland Security officer showed up that morning before the protests. The officer drove a marked Homeland Security vehicle and had a handgun, handcuffs, billy club, camera, and binoculars. One of my eyewitnesses reported seeing the DHS officer writing down onto a notepad what the eyewitness said were license plate numbers. In addition to the DHS officer, the IRS had its own security personnel, perhaps to squelch Daniel J. Vance Editor any protest gone sour. To one business owner, the DHS presence felt intimidating, and demeaning. The other wasn’t so concerned, and believed its presence was simply standard operating procedure. Recently, the two both claimed the IRS audited their tax returns within months following the protest. They had never been audited before in their combined entire lives, they said. Not ever. They said there might have been a connection between

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their Tea Party activities and the audits, but no one will ever know for sure, of course. About the same time as the Mankato protest, national news outlets were reporting on the IRS having made Tea Party and conservative groups applying for tax-exempt status answer a number of intrusive and legally unnecessary questions—a series of questions not asked of other types of groups, such as: asking for donor names; a list of issues important to the organization and the organization’s positions on the issues; the political affiliations of the officer and director, and if the officers or directors had or would run for public office; and finally, the types of conversations members and participants had during the (organization’s) activities. Sometimes the questions were far more intrusive. From a June 2013 USAToday article, Dianne Belsom of the Laurens County (SC) Tea Party said the IRS had wanted her Facebook postings, meeting agendas, ads, press releases, and any videos she had of event speakers. The IRS had gone so far as to ask some groups applying to describe the content of their prayers. Then in May 2014, the Washington Times reported that not all the 24 secret lists the IRS had of Tea Party donors had been destroyed—as had been reported. Of the three lists not destroyed, it was discovered the IRS had audited ten percent of these donors after the donors’ names had shown up on the lists. The “ten percent” figure came from the IRS itself after a House committee request. About one percent of overall IRS filers get audited annually. This IRS scrutiny of Tea Party groups applying for tax-exempt status most certainly suppressed the Tea Party’s ability to raise cash for the 2012 election cycle. It infringed upon its members’ free speech rights. Many Tea Party groups did not get tax-exempt status until

after the 2012 election, after more than two years of trying. Dozens of like-minded groups withdrew their names from the application process due to their fears and the hassle. The IRS has admitted submitting Tea Party and other rightleaning groups to additional scrutiny. The IRS has not treated everyone equally. About 75 Tea Party groups around the U.S. were affected directly, including one in Rochester, and at least one indirectly, in Mankato. The Mankato group was waiting on the Rochester group to be approved in order to use Rochester’s application as a template. I write all this—and I have touched on only a mere fraction of what the IRS has done to these groups—not because I’m a Tea Partier or rabble-rouser or anti-IRS. It’s because I’m a business owner and a free speech advocate. I’m an American. When the federal government itself infringes upon the free speech rights of the Tea Party or any group of American citizens, or of business owners in Mankato, we all have had our freedoms infringed upon—all of us. We’re all in this experiment called “America” together: us liberals, conservatives, libertarians, greens, tea partiers, independents, and socialists. What the IRS did was un-American. They played the role of bully. As for the business owners who were eyewitnesses, they will be reading this column, just like you. They chose not to identify themselves for this magazine, and I don’t blame them. That’s exactly why the 1773 Bostonians disguised themselves as Native Americans. They also were afraid. Thanks again for reading Southern Minnesota’s first and only locally owned business magazine, the only one reaching 8,800 business decision makers in nine southern Minnesota counties. See you next issue.

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BULLETIN BOARD

Any chamber of commerce, convention and visitors bureau, or economic development organization in our reading area—large or small, from Amboy to Winnebago—can post on our free bulletin board. For details, email editor@connectbiz.com.

Blue Earth Cindy Lyon, Blue Earth Chamber/CVB

Mankato Christine Nessler, Visit Mankato

Join us in Blue Earth for Food*FUN*Festivities! on July 10-13 for our Giant Day Festival and celebrate the Jolly Fellow’s 35th birthday. The Faribault County Fair is July 22-26. The annual Wood Carvers & Giant Quilt Expo is August 15-17. Art in the Park is Thursday evenings at Gazebo Park throughout summer. Like us on Facebook and see our event calendar at blueearthchamber.com. Wishing you a Giant Summer from us all in Blue Earth.

Rack & Roll Task Force installed 30 new City Center bike racks. The initiative encourages businesses to improve bike friendliness by purchasing bike racks for their business or community for only $250. Mankato/North Mankato has been designated a Bicycle Friendly Community. Bicycling is aligned with City of Mankato sustainability efforts and, along with walking and using the bus, encourages a more sustainable future. For details or to download a Bicycle Rack Sponsor form, see visitgreatermankato.com/visit-mankato-partners.

Fairmont Bob Wallace, Fairmont Area Chamber “Fifth Thursday” is a Community Education Council initiative that will bring together community members and newcomers on the fifth Thursday of any month to socialize and assist newcomers with an introduction to our community. What is there to do in Fairmont? How do I meet others? How do I find that? How do I get involved? To get involved, contact CER at Fairmont.k12.mn.us and click on Community Education and Recreation (CER) or call 235-3141.

Mankato Julie Nelson, Small Business Development Center SBDC program services are focused in three primary areas: professional consulting, access to capital and training. In 2013, your SBDC assisted 456 clients, provided 5,764 hours of customized, one-on-one consulting, helped start 30 new businesses, and helped companies access more than $9 million in new capital. Business consultation is strictly confidential and no cost to entrepreneurs and small business owners. Apply for services and see our training calendar at myminnesotabusiness.com.

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New Ulm Audra Shaneman, New Ulm Chamber On May 28, New Ulm Area Chamber of Commerce hosted the U.S. Senator Amy Klobuchar and MnDOT Commissioner Charlie Zelle Highway 14 press conference at the Associated Milk Producers butter plant. Other businesses represented included Firmenich, Shelter Products, and Beacon Promotions. The event included local government officials. New businesses welcomed to the Chamber include Images by Drea; Personal Trainer Dinah Spurgin; American Lung Association, and Minnesota Wedding Shop. Crazy Days is July 18-19.

Nicollet Alesia Slater, Nicollet Chamber of Commerce Nicollet’s 5th Annual National Night Out event will be held at the Green Space Park in Nicollet on Tuesday August 5 beginning at 5:30 p.m. The Chamber will also honor area teachers with their annual Teacher Social in August. Check nicollet.org for more information about these and other Chamber sponsored events.

Local Chamber & Economic Development News

Mankato

Sleepy Eye

Jonathan Zierdt, Greater Mankato Growth

Trista Barka, Sleepy Eye Area Chamber

Grab your lawn chairs and join the City Center Partnership every Thursday in August from 5–8 p.m. for Alive After 5. Gather with your friends and co-workers at Jackson Park in City Center Mankato for an evening of free fun including live music, food and drinks. To view the band lineup, and for more information, like the City Center Partnership on Facebook.com/ Mankato.CityCenter.

The Sleepy Eye Chamber held its annual Business of the Year Appreciation Luncheon honoring the 2014 recipient Mark Thomas Company for the great community spirit and support they provide. In recognition of Family Night Out the Sleepy Eye Chamber and Sleepy Eye Police Department will have the 6th annual Party in the Park on July 24 in Allison Park. The 53rd Annual Buttered Corn Days will be held August 15 and 16, go to sleepyeyechamber.com for details.

St. Peter Emily Peck, St. Peter Area Chamber

Springfield Marlys Vanderwerf, Springfield Chamber/CVB

New members to the St. Peter Area Chamber of Commerce are Nicollet Lodge #54, Gair’s Golf Shop, ECS—Your Wiring Pros, River Valley Woman, and Colleen Spike. The St. Peter Development Corporation, the St. Peter Economic Development Authority, and the St. Peter Chamber teamed up to host a job fair in May with 31 employers and about 150 potential employees. The St. Peter OldFashioned Fourth of July Parade and Picnic coincides with the All-School Reunion.

Springfield Baseball Association has a $48,000 scoreboard, in part due to six businesses. Springfield added new businesses: Treasured Times (Shawna Hoffman), and Abbey’s Artists (Abbey Breisch). The Dog Daz of Summer is a July 25-26 retail event featuring a 5K race (July 25), dunk tank (July 26), golf tournament, music by LeBon Entertainment (July 25). Finally, Pieschel Foundation awarded a grant to New Life Assembly of God for seven summer family movie nights. See springfieldmnchamber.org.

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BULLETIN BOARD

Region Nine Nicole Griensewic, Region Nine Dev Commission

Region Nine Development Commission offers Community Analyst GIS Services, which are designed for policy makers, government agencies, and civic organizations. Community Analyst is used as a decision-making tool providing access to thousands of demographic, health, economic, education, and business data. It helps analyze unique community characteristics for any geographic region. For more information, e-mail Danielle at Danielle@rndc.org.

Waseca Colleen Carlson, Waseca Area Tourism

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Come see Fourth of July Lakefest family festivities at Clear Lake Park. The day starts with a five-mile run/walk at 7:30 a.m. Live and free music in the bandshell, food vendors, and a spectacular fireworks display over Clear Lake. Also, Waseca County Free Fair is July 16-20. The Triathlon for kids and adults is July 26-27. Finally, don’t miss the annual Waseca Garden Walk on August 3 from 1-5p.m. For other summer events, see discoverwaseca. com/visitors.

Waseca Joan Mooney, Waseca County Historical Society

Waseca events: Sunday August 3, the Waseca Garden Walk. Hosted by the Bailey House Historic Gardens, 401 NE 2nd Ave. Maps available at the Bailey House. This event is free and open to the public. Also, at the Waseca County Fairgrounds on Saturday August 23: the first-ever Herter’s Swap Meet from 10-3 p.m., Craft Beer Fest from 3-6 p.m., and a ‘60s Rockin’ Roll Revival from 7-10:30 p.m. Sponsored by Waseca County Historical Society. See historical.waseca.mn.us

Waseca Kim Foels, Waseca Area Chamber

LEADERSHIP Greater Waseca (LGW) enables candidates to learn about Waseca resources, values, strengths, weaknesses, and challenges. Modeled after the Blandin Foundation Community Leadership Program, LGW provides in-depth learning about education, economic development, government, healthcare, public safety, quality of life, agriculture, culture, and diversity. The program teaches participants to frame ideas, build relationships, mobilize resources. LGW goes September-May and meets third Wednesday monthly. Apply by first week July. In partnership with Riverland Community College. See wasecachamber.com.

HEINTZ TEAM MEMBER PROFILE

Adam Garbers Assistant Service Manager

Assistant Service Manager Adam Garbers grew up near Welcome, Minnesota, where his parents were self-employed. He started his automotive career in 2004 at a Mankato oil/lube service center. Then he was a car salesman and tire consultant before joining Heintz Toyota three years ago.

“We just had a service customer who said at one point he had wanted to buy a new automobile from a different dealership, but chose to buy a Toyota from us instead because of the way our service department had taken care of him over the years. He lives in Mankato. He purchased a brand-new 2014 Toyota Avalon. After having some experience driving his Avalon, he realized he liked it much better than the other automobile. His Toyota had exceeded his expectations, too.”

“We try taking care of each customer like you would your mother.”

“Whenever something is wrong, we take care of customers right away in a professional manner. That customer with the new Avalon trusts us and knows we’re going to take care of him. He knows we’re going to do everything in our power to make sure he has the best experience he can have. We have some of the best technicians in the business. We try taking care of each customer like you would your mother.” Personal: 31-year-old Adam Garbers lives in Mankato with wife Stacy and their two girls, ages four and one.

387-1148 heintztoyota.com Serving Southern Minnesota drivers for 50 years.

By Carlienne A. Frisch Photo by Kris Kathmann

Janesville-based husband and wife team have cleaned hard-to-reach places.

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JULY/AUGUST 2014

Five days after surviving a heart attack, Steve Melcher greets the Connect Business Magazine reporter with a handshake and credits his survival to exercise, a healthful diet, and divine intervention. His heredity gets the blame for the two plugged arteries that caused the attack. He said, “I’m the oldest of four boys, and they all have heart issues. Some have already had surgery.” Melcher is a man used to living on the edge, from his roof-climbing, chimney-sweeping career to rappelling, geo-caching, and exploring old mines with his wife, Liz. His motto, he said, is “Life is an adventure. Enjoy it.” Just four weeks before the heart attack, the Melchers were hiking in Zion National Park, Utah, where Melcher felt a bit light headed, which he attributed to the altitude. Now he wonders if it was a hint of his heredity rearing its head. The sense of adventure that put him on rooftops more than 30 years ago has a name—Melcher’s Power-Vac, Inc., a business that provides cleaning of chimneys, fireplaces, air ducts, and dryer vents. Located on Liz’s family farm, on Waseca County Road 17 about four miles east of Janesville, their home, adjacent office, and shop are conveniently positioned 25 minutes from Mankato and central among many towns within a 60-mile radius. Their card lists phone numbers in Waseca, Mankato and Owatonna, all of which ring in the office. continued >

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Before getting down to business in the interview, Melcher reached to this shelf and that bookcase to show the reporter several of the 15 printed books of photos Melcher has shot, some of which document Liz doing daring feats on a mountainside, others of flowers in full bloom beauty. Melcher currently has a floral photo exhibit at Christ Community Church in Waseca. He set the photo albums aside and turned the conversation to the topic of his partner—in the family and in the business. “Liz and I met at a mutual friend’s graduation party just one week after we each graduated from high school,” he reminisced. “It was love at first sight. She’s the only girl I’ve ever kissed, the only girl I ever dated and the only girl I ever married.” They call each other Smokey and Blondie, and at one time had two dogs with those names. After a three-year courtship, the Melchers wed on June 15, 1974. She had completed a one-year program at Mankato Commercial College and was employed in the Brown Printing Company payroll department; he went directly into the workforce after high school graduation. “My high school metal shop teacher, Don Siems, told me not everyone needs to go to college,” Melcher said. “He said he’d taught me everything I needed to know to be successful. He told me to do the job nobody else wants to do and become indispensable. The first summer after high school I mowed road ditches, then I became a masonry laborer, and then got a job at Design Homes in Waseca, where I learned to build a house and had a lot of fun.” A job with an Owatonna siding and window company followed. When the Melchers hired someone to reline a chimney in preparation for burning wood in their home, another opportunity arose. “It was just a stainless steel pipe down the chimney, hooked up to

Melcher’s Power-Vac Inc. | Janesville

a wood/gas furnace,” Melcher said. “It was installed improperly, and I figured I could do a better job. A chimney sweep from Mankato, Dave Sorenson of Sweeps & Swaps, came to install a chimney liner for Liz’ mother’s house. I watched him because I was seasonally unemployed at the time. He showed me techniques, told me what books to read and answered my questions. Liz and I started our business in 1982 with a pick-up truck and $400 on a credit card, a card we still have. Our first flyers, which we ran off at the library, said ‘Melcher’s Chimney Safety Service.’” On Sorenson’s advice, Melcher obtained city permits so he could take his flyers door to door, wearing a donated top hat and tails. “The top hat and tails used to come from morticians,” Melcher said. “It’s a German chimney sweep tradition. The English chimney sweep wears a cap. I went door to door, asking if anyone wanted a chimney, fireplace or wood stove cleaned. There are a lot of fireplaces in Owatonna and Waseca, where we started out.” The $400 bought the Melchers chimney caps, brushes, rods and a chimney sweep vacuum. Three years later they bought out Sorenson, who moved to St. Cloud to build his business there. It was also in 1985 that Liz left Brown Printing, gave birth to the Melchers’ third child and joined the business as the office manager, an endlessly multi-faceted position. Melcher said, “Liz isn’t just the office manager, she’s the key employee, the business manager, the accountant, the dispatcher, the customer service representative. She is everything in the business. I work for her.” Liz explained, “He’s the visionary; I’m analytical. What’s really important, though, is to have someone answer the phone who knows the answers.” She’s had first-hand experience for that, having cleaned hundreds of dryer vents in one day with Melcher and two other employees. She also has worked on chimneys and cleaned air ducts. “I know the process,” she said, “but I can’t carry all the heavy stuff

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Wayne Meyer cleaning a dryer vent.

any more. We used to have a telemarketer who followed up on the postcards we sent out. I do that now. Just like the dentist, we make reminder calls. Do you still burn wood? Have you remodeled? Put in a new furnace? Then people think of the dryer vent. We continue to have loyal customers from 1982.” Melcher said, “That first year in the office, Liz helped triple our business. I did research and learned there was a need for air duct cleaning in the area. In 1988, we bought our first portable trailermounted air duct machine, and got many new customers from our display at the Waseca County Fair. In 1991, we added dryer vent cleaning on request from customers. I really hit it off with John Summerlin, owner of Pringle Power-Vac Company out of Walla Walla, Wash., so we became a training facility on the equipment and a sales rep.” The Melchers now own two Power-Vac trucks, one of which sports a sign stating “God Bless America,” as well as a van for chimney sweeping. They hired their first employee in 1987. Their longest-term employee, Wayne Meyer, has been with them since 1991, and they hire part-time help in the fall, with April through November being their busy season. Even before they had employees, the Melchers found a way to follow a philosophy of putting family ahead of business. Liz explained, “In the summer of 1987 we took a 17-day vacation and camped in four National Park campgrounds with our three small children. They still remember it.” As with family, there’s a strong commitment to the business. A long-ago headline in the Waseca County News read: “Local man enjoys his 19th-century profession,” but there is nothing anachronistic about the job Melcher does. He sees it as a public service. He said, “It’s a fire safety issue. My job and that of sweeps across the

Melcher’s Power-Vac Inc. | Janesville

country isn’t just to clean chimneys. My principle job is to educate the public on solid fuel safety and preventive chimney maintenance. In our other services, we work in a variety of locations, including single-family dwellings, apartment buildings, hair salons, senior living facilities and colleges.” Melcher has often gotten free publicity because, he said, “Everyone wants a chimney sweep in top hat and tails in their picture. We’re considered good luck.” The company’s first ads were on radio

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Childhood homes: Steve (Waseca, in town), and Liz (rural Janesville). Favorite school subjects: He, shop and art— “I prefer hands on” and she, math—“I’m analytical.” Children: Tim, a fuel transporter/Kwik Trip corporate driver; Dan, parts manager at Northland Trenching, Waseca; Kathy, Kwik Trip store manager, Faribault. Hobbies: Photography, hiking, geocaching, bicycling, camping, gardening our Heritage Gardens, sponsoring auto races in which Dan and a friend drive. Proudest accomplishment for both: following the American dream to create our business and keeping it family-oriented. Most valued intangible: Steve: My Christian faith. Liz: Along with my faith, having children and grandchildren nearby. Describe each other: He: She is beautiful, loving, caring, and dependable. She: He is enthusiastic, concerned, honest, and adventurous. JULY/AUGUST 2014

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Knack For Vac

He said, “It’s a fire safety issue. My job and that of sweeps across the country isn’t just to clean chimneys. My principle job is to educate the public on solid fuel safety and preventive chimney maintenance. stations, and they still advertise on KJLY, a Blue Earth Christian radio station, Mankato stations KTOE and KYSM, and KOWZ, which serves Waseca and Owatonna. Val Curtis of Advertising and Design, Mankato, directs their marketing campaign. They continue to have a dasher board at the Mankato Hockey arena and maintain a website, but after 29 years of staffing a display at the Steele County Fair and at countless home shows in malls, the Melchers, both 61, have stepped back from that form of promotion. Liz said, “We met a lot of nice people, but decided we’d had enough.” It was at a mall show that they got an edge on entrepreneurship, and a lifetime philosophy, their first year in business. Melcher explained, “A young man asked me if I was interested in a business, so we became Amway distributors for a time.

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We had two businesses, three kids and not enough time to do it all, but we learned positive thinking and the business principles of success. We still buy the products.” Liz added, “I think we already were positive thinkers,” to which Melcher responded, “Without Amway we probably wouldn’t be where we are today. We were taught to put God first, family next, and then business. That’s how we focus. My goal was to bring my wife home so we could work together. My goal now is exactly the same—to move the business into the future together.” On a typical day during the busy season, the Melchers and Meyer meet in the office before Meyer goes out on jobs and Melcher does home estimates and jobs. Melcher said, “The most unusual aspect of the business is the work we do—the chimney cleaning service. And there aren’t a lot of people with our experience who do air duct and dryer cleaning. Although I may look

dirty after cleaning chimneys, and we wear dust masks and cover our skin because the soot contains carcinogens, cleaning dryer vents is the worst. The microbes and skin scales in the dryer lint are irritating and itchy. We turn down jobs if we don’t think we can do a satisfactory job for the customer. I hear a lot of ‘thanks for your honesty.’ I can offer advice, or recommend another company, or suggest they reline a chimney or stop burning wood in an old fireplace. In the last couple of years I don’t feel as comfortable on a roof because of natural aging of the inner ear, which affects balance. I won’t go up on a 1912 three-story home anymore, but most chimney cleaning is now done from inside the house.” The job is not without its hazards. It has been 30 years since Melcher had a major mishap, but he remembers it clearly. He said, “I fell off a roof in the mid-80s. The

Melcher’s Power-Vac Inc. | Janesville

customer insisted there was a bat in the chimney, but I knew that in December there was no bat because they were hibernating. I was on the icy roof of that two-story house when I slid off and landed on the hard ground, not in a snowbank. My pliers and screwdriver flew out of my pockets. I was able to climb back up to the roof on a ladder, put on a chimney cap and go inside the house to collect my check. Then I went to the doctor in Waseca, who was surprised that my injured foot wasn’t broken. I came home on crutches.” Changes in legislation affecting chimney sweeps have led some companies to creative service development. Melcher explained, “Because of government regulations, now it’s illegal in some states to install a wood-burning stove. So chimney sweeps maintain what’s there, but add cleaning of rain gutters or window cleaning,” jobs he has never done.

Melcher has no regrets about his professional and personal choices. “We’re living the American dream,” he said. “There’s nothing I would change.” Liz’s response was more family-centered. She said, “Our kids worked in the business when they were younger, and they learned good work ethics. Currently our 16-yearold granddaughter, Madison, helps in the office—her first job. Grandma and Grandpa can teach her how to be a good employee. Another grandchild, 10-yearold Jahdyn, helps us with farm chores.” The farm has been in Liz’s family since 1875. One of the Melchers’ sons, Tim, and his family, also live on the property. The Melchers didn’t want to tear down the barn even though they rent out the land, so they have donkeys, goats, peacocks, ornamental pheasants, and chickens. Melcher said, “We feed them, play with them, eat the eggs—and clean up the manure. It’s fun

Melcher has no regrets about his professional and personal choices. “We’re living the American dream,” he said. “There’s nothing I would change.”

THE ESSENTIALS

Melcher’s Power-Vac Address: 37339 73rd Street Janesville, Minnesota Phone: 800-873-8510 Web: melcherspowervac.com

maintaining the farm. You’ll see notes scratched on a wall in the barn, telling what dates years ago it was minus 20 degrees.” For Liz, who has never moved from her childhood home, the roots go deeper. She said, “We still have the 1956 Farmall 300 I learned to drive when my dad bought it new.” What might the future hold for the adventurous Melchers? They have a fiveyear plan, which Melcher explained. “Now that we’re in our sixties, we plan to sell the business and semi-retire to selling BarleyLife nutritional products. It’s a cleaner and healthier business, and there’s no need to wash off soot or skin cells at the end of the day.” Carlienne A. Frisch writes from Mankato.

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Very New or Re-formed Businesses or Professionals New To Our Reading Area

FAIRMONT

by word-of-mouth.” His business does computer tune-ups, including virus removal and software diagnostics. He replaces hard drives and helps customers switch over old computer information to their new computer. He sells laptops and off-lease budget computers, with the most popular of the latter a $350 tower. Landsteiner claimed he had his father’s curiosity about learning how things work, patience from having lived with seven siblings, and a solid work ethic gained from parents.

John Landsteiner is only 21, and as a Fairmont native before age 18 attended two different high schools in Wisconsin, and two colleges, Presentation College and Minnesota West. He technically began his business two years ago, but didn’t have a storefront until recently. He owns JL Computers on 206 East Third, a computer sales and service business. “Our family had a complex dynamic because I had seven siblings growing up,” said Landsteiner in a Connect Business Magazine telephone interview. “My mom stayed home and my dad is a 3M supervisor. They stressed hard work and honesty.” When he was 15, Landsteiner’s parents sent him off to a Roman Catholic minor seminary in Wisconsin for high school, and then to a different minor seminary the next year. He returned home to Fairmont to attend classes at Presentation College and Minnesota West under the PSEO program, which offers under-18 students free college tuition. At 19, he began working for a Fairmont computer service shop, and soon thereafter founded his business, which sells and services home computers. He said, “I had a public opening three months ago in a commercial building, but in the beginning (my first two years) it was just me, a computer, and a countertop in my parents’ garage. I ignored the traditional business model. Given my age, a loan was out of the question. So I self-funded. I couldn’t afford advertising and grew business

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From early on in life, Brittney Anderson would begin learning the essentials of later managing New Ulm Event Center and Minnesota Wedding Shop, both co-owned by Rich and Lynnette Draheim. Minnesota Wedding Shop opened in May 2014 near Hy-Vee. As for the wedding shop, “It was Rich’s dream since buying the event center to open a wedding shop,” said 28-year-old Anderson. “He really wanted to make a one-stop stop for brides, to help take away their stress. He thought what better place than the event center, where we had room upstairs.” Much of what Anderson learned about business, she picked up from her parents, co-owners of a Montevideo cleaning and restoration business. She said, “They really showed me what a great work ethic looked like and they were always available to customers. I remember quite a few times my dad having to go out in the middle of the night to deal with emergencies, such as when a customer’s basement water pipe would burst.” She picked up more having to organize her own wedding, on 9-10-11. She said, “I’d always wanted to be in the wedding industry, but my interest (in the industry) grew when I was doing the planning for my own wedding. I’m really detailoriented, and good at organizing a wedding, making checklists and timelines, and figuring out what to do and how. I’ve always been organized.”

As for services, Minnesota Wedding Shop does in-house alterations, a “huge” benefit, she said, because it can provide brides-to-be with immediate answers to alteration questions. The shop has six dress designers, with all six new to New Ulm: Allure, Bonny, Eden, Impression, Mikaella, and Private Label by G. Dresses range in price from $399 to $2,500. The shop sells bridesmaid, mother, and flower girl dresses, and veils, jewelry, and belts. It also offers tuxedo rentals, and sells men’s suits, ties, pocket squares, and socks. MINNESOTA WEDDING SHOP Address: 301 20th Street Telephone: 507-354-GOWN Web: mnweddingshop.com

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Align Chiropractic & Acupuncture Three people influenced Dr. Zephanie Skow’s interest in chiropractic. Growing up the daughter of a Fairmont veterinarian, Skow was involved with 4H and FFA, and showed poultry, beef cows, and horses. She loved animals, and when little, thought she wanted to grow up to be a veterinarian, like dad. Said 26-year-old Dr. Skow, “I’d get to ride in the vet truck with him, and I remember helping him deliver baby calves. He would always say I was his little helper. My dad was into (natural) alternative medicine with livestock. With him, it wasn’t always drugs fixing an animal’s problem.” While her father spawned her interest in natural healing, her mother taught her about chiropractic. “My mom always likes telling everyone I’m her miracle baby. I have brothers 10 and 15 years older. Mom wanted another baby, but was having trouble (conceiving). She had been going to a chiropractor her whole life, and found one in the Cities who said she wasn’t ovulating, which was why she hadn’t been becoming pregnant. The chiropractor adjusted her and gave her a homeopathic supplement.” The treatment worked. Her third influence has been Dr. Timothy Hamp, a Fairmont chiropractor, who helped her through a high school tennis injury, mentored her, and who, upon her graduation at College of Chiropractic at Northwestern Health Sciences University

last November, offered her rental space in his building. She opened her own business in February 2014. She always knew she would come home to Fairmont, and has joined the local chamber of commerce. She said, “From early childhood, I’ve always enjoyed helping animals and people. I enjoy having patients come back and say, “Man you really helped me.” Her treatment focus is on nerve interference, i.e., figuring out why a particular nerve is irritated, in order to treat everything from lower backaches to headaches and more. She is also a certified acupuncturist. ALIGN CHIROPRACTIC & ACUPUNCTURE Address: 1125 Spruce Street Telephone: 507-235-8485 Web: alignchiropracticfmt.com

To be considered for one of three spots in the September Hot Startz!, email the editor at editor@connectbiz.com. Businesses considered must have started—or changed greatly in form—within one year of our publishing date. Professionals chosen must be new to our reading area.

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Blue Earth

Celebration (Aug. 1-3) kickoff is 5:30 p.m. July 11 at the Pedestrian Walkway.

Express Diagnostics launched the first-ever onsite, lateral flow test for Ethyl glucuronide, a unique biomarker of alcohol use.

Mapleton

Fairmont Robert Kuderer and Matthew Johnson joined Erickson, Zierke, Kuderer & Madson, P.A. as shareholders, Darin Haugen was named a shareholder, and Thomas Brock joined as associate attorney. From the Chamber: New members include The Marina Lodge (Scott Unke, owner); Metro Sales was awarded 2013 Ricoh service excellence certification and was recognized for having highest dealer revenue; new store opening ambassador visits included JL Computers, HealthStar Home Health, Kandy Koncepts, and Align Chiropractic & Acupuncture; Tom Rosen of Rosen’s Inc. received the U-M Siehl Prize of Excellence in Agriculture; and Bryan Sweet of Sweet Financial Services completed advanced training with America’s IRA Experts.

Kasota Chankaska Wines received “double gold” for its Minnesota Marquette wine at Finger Lakes International Wine Competition.

Lake Crystal

Mankato Office: 507.625.2525 | Madelia Office: 507.642.3141

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Micah Larson joined Pioneer Bank as agricultural banker.

Madelia Christine Fischer is assistant city administrator. Pioneer Bank celebrated Kasasa banking accounts by giving away $25 in free gas to the first 100 cars at a BP gas station. From the Chamber: New members include Gary Walters/Edward Jones, Midwest Machining, and Riverside Gardens; 609 Barn Boutique had a ribbon cutting; Madelia Park Days are July 10-13; the Golf Scramble is Aug. 13; and the 18th Annual Younger Brothers Capture is Sept. 19.

INSULATION

Mankato Heintz Toyota employees receiving 2013 Toyota Motor Sales USA awards: Laurie Danberry, (Silver Level Sales Society Award), Marsha Hawker (Bronze Level Sales Society Award, for the fourth year), Jacki Standon (Comptroller Award for Excellence), Mike Drysdale (Customer Relations Award for Excellence), and Brett Jordan (Parts Award for Excellence).

Kurt Weinberg is information technology manager for Truck Bodies and Equipment International brands and plants.

MANKATO

LeSueur

I&S Group was honored by Workforce Development as one of Southern Minnesota’s best places to work.

From the Chamber: Le Sueur County Veterans Golf Classic is July 28; and Giant

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PROBuild held a grand re-opening June 19-20 at 1631 Stadium Rd. Minnesota State Mankato received an in-kind grant from Siemens Product Lifecycle Management Software with a $325 million commercial value; and the University hosts the March 2015 Upper Midwest Regional Honors Conference, an event with an estimated economic impact of $20,000.

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Southern Minnesota Initiative Foundation approved grants totaling $87,564 to support early childhood and entrepreneur projects in Brown County, Lake Crystal, and with Minnesota Valley Action Council.

From Greater Mankato Growth: New members include Gardner Financial Services, True Face Pictures, and Emergent Networks. For National Tourism Week and from Greater Mankato Growth: Monica Stephanie of Microtel Inn & Suites received the Hotel Award, Julie Brewer of Children’s Museum of Southern Minnesota received the Attraction Award, JoRae Galli Storm of Dairy Queen and Pita Pit received the Restaurant Award, and Terry and Karen Johnson of Scheel’s received the Retail Award. The State of Minnesota funded City of Mankato requests to improve Verizon Wireless Center. Gregory Thoen of Ameriprise Financial was named to the company’s 2014 Chairman’s Advisory Council. Jeffrey Grace joined Blethen, Gage & Krause as associate attorney, focusing on litigation and insurance law. CAB Construction celebrated 30 years in business. Marco was named Cisco 2013 Central

Area Small to Medium Business Partner of the Year. Cedar Bluff Condominium is the new name of the former Highland Village Condominium. CityArt Walking Sculpture Tour introduced 32 new sculptures from 12 states and two foreign countries into the city centers of Mankato and North Mankato. Boe Lindvall is general manager at The Courtyard by Marriott Hotel and Event Center, which won a 2013 Platinum Award from Marriott Hotels. Emerald Travel & Cruises was inducted into the Funjet Vacations 500 Club. From Enventis: HickoryTech shareholders approved a corporate name change to Enventis Corporation; Mike Olsen is Enventis vice president of customer experience; and Enventis presented a $3,000 grant to Open Door Health Center for staff education and training. Peggy Anderson of Minnesota Elevator volunteered alongside 22 other women, including Lowe’s Heroes employee volunteers, on a Habitat for Humanity of South Central Minnesota construction site in recognition of National Women Build Week.

MANKATO

MinnKota The MinnKota Relay for Life team has been “Top Fundraising Team” 11 straight years, has earned the Team Spirit Award eight years, and contributed $101,129 to Blue Earth County Relay for Life.

Howard Mock of Rhapsody Music and Gary Pfeifer of Pfeifer Trucking presented a check with proceeds from the Mankato Opry Jamboree to Habitat for Humanity for ReStore expansion; and Crystal Valley Coop in conjunction with Land o’ Lakes donated $1,818 to Habitat for Humanity for the same purpose. Jordan Sands contracted with Market & Johnson to construct a new industrial

sand processing facility. Kato Insurance Agency was named a Top 10 2013 growth agency for AutoOwners Insurance agencies in Minnesota. The Mankato Clinic Foundation donated $6,000 to BackPack Food Program and $2,000 to YWCA Mankato.

MANKATO

Opthalmology Associates of Mankato Dr. Steven Anderson of Opthalmology Associates of Mankato received the 2014 George T. Tani Humanitarian award from the Minnesota Academy of Ophthalmology for his five-year mission in Borneo.

Rod Meyer and Matt Norland merged their businesses to form Meyer & Norland Financial Group. From Minnesota Soybean Growers Association: Minnesota is the first state to move to a 10 percent biodiesel blend. JBeal Real Estate Group added two Realtors: Kevin Regan and Candee Deichman. Vice President Alissa Brekke of Pioneer Bank specializes in mortgage lending. Primrose Retirement Community celebrated its 15th anniversary. Sam + Abe’s Childcare, Learning & Development Center (owners Ryan Stroup and Holly Rosevold, R.N.) opened at 160 St. Andrew’s Court. Ann Nelson is Sigma Phi-Delta Zeta Chapter 2014 Woman of the Year. Julie Nelson, program manager of South-Central Region Small Business Development Center at Minnesota State Mankato, received the Minnesota Small Business Development Center Network 2014 State Star Award. Country Inn & Suites hosts the Southern Minnesota Business Summit on July 15. David Truhler is executive director of Twin Rivers Council for the Arts; and the organization’s Black and White Gala is September 13 at Minnesota State Mankato.

Jeff Weldon, United Prairie Bank chief financial officer, was a featured speaker at Fiserv Forum in Las Vegas. US Bank named Carrie Owen as private client representative, promoted David Wittenberg to manager of business development, and promoted Jackie Scroggs to manager of private banking. From Weichert Realtors: Bob Klesath and Judy Meyer joined the Weichert Realtors sales staff; and the company’s 2013 award winners were Christa Wolner, inductee into the WREA 2013 President’s Club, and Charles Jamerson, Michael White and Stephanie Jacobson, who received 2013 Sales Achievement Awards. YWCA received $6,450 from the AgStar Fund for Rural America for girls’ programming; and the YWCA launched “The Power to Believe” campaign, with Dr. Margaret R. Preska as honorary chair, with a goal of raising $1.5 million.

New Ulm

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From New Ulm Medical Center: the Center received the 2014 iVantage Healthstrong Hospital award and the HealthGrades 2014 Outstanding Patient Experience Award; the hospital and Hearts Beat Back: The Heart of New Ulm Project received a 2014 Community Benefit Award in the small hospital category from the Minnesota Hospital Association. Gislason & Hunter attorneys Dustan Cross, Michael Dove and Dan Gislason were named Super Lawyers; and Matthew Berger, Cory Genelin and Andrew Tatge were named Rising Stars.

NEW ULM

New Ulm Medical Center New Ulm Medical Center received the “Innovation of the Year in Patient Care Award” (small hospital category) from the Minnesota Hospital Association.

JULY/AUGUST 2014

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PRESS RELEASES

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Greater Nicollet Area Community Foundation Kick-Off Celebration was June 3, with a goal of $250,000 in 2014. From the Chamber: New members include, Ground Zero and Country Side Repair INC.

Mayo Clinic Health System—St. James received the 2014 Best Hospital Workplace Award, small hospital category, from the Minnesota Hospital Association. Travis Elg joined Pioneer Bank as an ag/ business banker.

North Mankato

Sleepy Eye

Amanda Gerdts of Footnotes Family Counseling Services hired summer intern Emily Euerle; and Gerdts completed advanced training in couples counseling, and she will host a two-day training for pastors in couples counseling July 23-24. Jeff Evenson of Natural Pathways attended a seminar on “Standard Process Beyond Fundamentals,” presented by whole food supplement manufacturer Standard Process. Southern Minnesota Center of Agriculture, with South Central College as a lead institution, formed a partnership focusing on agriculture literacy with the Children’s Museum of Southern Minnesota by sponsoring an agriculture-focused exhibit in the museum’s future facility.

From the Chamber: New members include Divine Providence Community Home, Anytime Fitness, Scheiffert Farms, and Scheiffert Trucking; Mark Thomas Co. was named 2014 Business of the Year; a $200 Chamber scholarship was awarded to Bryant Mages; Party in the Park is July 24; and 53rd Annual Buttered Corn Days is Aug. 15-16. Sleepy Eye business anniversaries include: Stark Mutual Insurance (130 years), Mathiowetz Construction (90 years), Del Monte (85 years), Miller Sellner (50 years), Haala Industries (40 years), Christensen Farms (40 years), NAPA (40 years), Brown County Reminder and Loren Blick Real Estate (both 35 years), and Novotny Real Estate and Main Street Stylists (both 30 years).

St. Peter

Springfield

River’s Edge Hospital & Clinic and St. Peter Food Co-op donated 4,421 pounds/ dollars to the 2014 Minnesota Food Share March campaign.

From the Chamber: New businesses at 106 N. Marshall are Treasured Times (Shawna Hoffman), and Abbey’s Artists (Abbey Breisch).

Call Karla VanEman today! (507) 345-4040

NEW ULM AREA CHAMBER OF COMMERCE Supporting the businesses who make us a special place to visit for a weekend, or a lifetime. See our historical downtown, do some shopping – open your own business! We’ll help you make it your home.

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Truman Members of the newly formed Truman Chamber of Commerce include Martin County Implement, Voyles Filter Cleaning, Kitzerow Repair, Profinium Financial, Aardvark’s Bar and Grill, Bullseye Antiques, Truman Tribune, Casey’s General Store, Mel Carlson Chevrolet, Camper Chris, Truman Bus Service, and WFS.

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From the Chamber: New members include Duncreek Advisors, Personalized Printing, American Lung Association, Big Brothers and Big Sisters, A Touch of Country Class, and Streamline Communications; new businesses include Ultra Beach Contempo Day Spa; Antonia Wegner is new owner of The Good News; QC Supply bought Building and Equipment Outlet; Quad Graphics of Sussex, Wisc., bought Brown Printing Company; Stacy Lienemann is director of Waseca-Le Sueur Regional Library; Theresa Sundi of Mediacom received the 2014 Women in Cable Television Spirit of the Midwest Award; Ambassadors presented a First Dollar Award to Brian and Kate Neegard of Purple Goose Eatery and Saloon and Progress Awards to Prairie Lakes Regional Arts Council and NextGen RF Design; Xcel Energy awarded $600K to FarmAmerica for wind turbine and solar cells; Prairie Lakes Regional Arts Council was recognized by Conservation Minnesota and Minnesota Citizens for the Arts for statewide impact; and Waseca County Historical Society hosts events Aug. 22-24 to celebrate Herter’s, the first sporting goods business to sell worldwide with a catalog. JULY/AUGUST 2014

CONNECT Business Magazine

NATIONAL OPINION

Federal Reserve Chair Janet Yellen addressed recent graduates of New York University on May 21, 2014. The following is an alternative address that Manhattan Institute’s Diana FurchtgottRoth believed should have been given by Janet Yellen instead. Furchtgott-Roth is a former U.S. Department of Labor chief economist. “Graduates of New York University, thanks for the warm welcome. I’m glad I’m chair of the Federal Reserve, rather than Managing Director of the International Monetary Fund Christine Lagarde, or you might not have let me speak today. “Don’t tell anyone, but I have more power than Christine Lagarde. I handle most of the decisions at the Fed myself. My fellow governors don’t usually dissent at the Fed’s public meetings, and I get to control the budget and the staff, plus the budgets for the 12 Federal Reserve regional banks. If any of the other governors want to use the resources of the Fed for research, they have to get my permission. And it’s not automatic. I’m the decider. “Your professors have told you that you can grow the economy by pumping out dollars and stimulating demand. At the Fed, we’ve been trying it for five years now. We’re still trying, actually. We have one of the slowest recoveries in history, and GPD growth last quarter was only one-tenth of 1%. Still, we believe in perseverance—just as all of you should—and we are going to continue to try until it works.

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JULY/AUGUST 2014

“Your professors shouldn’t worry—they won’t have to toss out their Keynesian class notes that they’ve used for the past 50 years. We’ll keep pumping until all of you have jobs. Yesterday, New York Fed President William Dudley said it would be “a considerable period of time” between the end of asset purchases and the first interest-rate increase. “Your professors would feel right at home at the Fed, because we have a real collegiate atmosphere, heavy on professors. I came from Berkeley, my predecessor, Ben Bernanke, came from Princeton. Daniel Tarullo came from Georgetown. Jeremy Stein came from Harvard. Jerome Powell is the exception—he came from the Bipartisan Policy Center, following a stint at the Carlyle Group, a Diana private-equity firm. Furchtgott-Roth “Right now we have three vacancies, and we’ll have four at the end of this month, because Gov. Stein, who joined us in 2012, is returning to Harvard. You see, even though his term ends in 2018, if he stayed for more than two years, he would lose his tenured professorship, and nothing—not even serving as a Fed governor—is more important than that. “We like to keep the Fed pure, and we prefer academics as Fed governors. We believe in diversity, just as you do. We like male academics, female academics, black academics, Latin academics. The Fed regulates the banking sector, but we wouldn’t have anyone with banking experience on the Fed. The Fed is responsible for full employment, as part of its dual mandate, but we would not ask anyone to be a governor who ever had to manage a payroll. None of those corporate types. “This is why one career path I suggest is getting a doctorate in economics and then coming to the Federal Reserve to help us manage the economy. The economy is really just a machine, after all — you put

in some loose monetary policy here, buy some mortgage-backed securities there, and hope it recovers. “Another great thing about the Fed is that it is independent. Congress has no control over us. It’s in the Constitution, just like the right to privacy and the right to a car and a yacht. Congressional oversight is just for little people, like IRS officials and secretaries of state. No one tells us what to do or how much to spend. “Congress gets to spend a few trillion dollars every year, debated between Democrats and Republicans and hashed out in budget and appropriations committees. We get to spend whatever we want. “We are not going anywhere anytime soon, so the Fed offers stable employment prospects. We make it easier for the federal government to borrow money by keeping interest rates low so the government has strong incentives to keep us happy. “We’re pursuing a strategy called quantitative easing, or QE. What that means is that we pump out easy money and keep rates close to zero. Whenever we want to go out and buy some mortgage-backed securities or Treasury bonds, we just go out and do it. No approval needed from anyone, not Congress, not President Obama. Last year we were buying bonds and mortgagebacked securities at a rate of $85 billion a month. Now we’re down to $45 billion a month. Go figure. “At the end of 2013, our assets were $4 trillion, up from $3 trillion at the end of 2012, but who’s counting? We don’t have to use these assets for anything, such as winding down the deficit. “Our ‘dual mandate’ means that we look at inflation and the unemployment rate. That gives us freedom to do whatever we want. In 2012, my predecessor, Ben Bernanke, said that the Fed would start to raise interest rates when the unemployment rate declined to 6.5 percent. Well, it is below that now, but so what? We have a lot of long-term unemployed, and many Americans have dropped out of the labor force. So we’re just going to go on pumping—even though inflation indices jumped last month.

“Another thing I get to do is regulate banks. That means I get to say which banks get to merge and which ones do not. In order to prove that banks are good citizens and get to merge, they have to show that they give money to community organizers, such as ACORN. Banks have given hundreds of billions of dollars in loans and grants to community groups over the past 20 years to get approval for mergers. “Under Dodd-Frank, I even get to regulate financial entities that are not banks. Congress has given me the power to regulate some large insurance companies as though they were banks, even though I have never regulated them before and their structure is different from banks. “The Fed is not perfect. We make mistakes. It’s possible that, without QE—without the Fed, actually—you could have had a bright future. So far QE has not worked, so you will be saddled with debt, face dim job prospects and, when you do get a job, your pay will no doubt be lower than in the previous generation. But we are going to continue to pump and hope that it works eventually. “Persistence is the message for you graduates to take away. You’re going to need it as you try to make it in this Fedmanaged economy.” First published on marketwatch.com. Diana Furchtgott-Roth, former U.S. Department of Labor chief economist, directs Economics21 at the Manhattan Institute.

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