MN Valley Business by Free Press Media

The Definitive Business Journal for the Greater Minnesota River Valley Januar y 2019

Mankato Developer Mike Drummer at a building site near Prairie Winds Middle School Photo by Pat Christman.

Eastward Ho! Eastside development continues strong Also in this issue • SOUTHERN MINNESOTA BREW PATH • GUARDIAN ATHLETICS – KATO COLLAR • TRIO COFFEE, WINE & ALE HOUSE, WASECA

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Social Media and Confidentiality Policies in the Workplace By: Brittany King-Asamoa);

Many individuals use at least one social media platform every day. Although these services appear to multiply overnight, solutions to the problems their use in the workplace may create—such as confidentiality and data breaches—have not developed as quickly. This article provides a few quick tips for dealing with technology in your workplace. 1. Social media and hiring. Title VII of the Civil Rights Act of 1964 (and many state laws) prohibit employers from making employment decisions, including hiring, based on protected classes and certain activities. As a result, if you review the social media profile of one candidate, review the pages for all candidates applying for that same position so as to treat all candidates the same. Ideally, the individual performing the review should be the same individual for each candidate for the position and should perform the review at the same point in the hiring process for every candidate. It is recommended that the individual reviewing social media pages not be the hiring manager or ultimate decision maker. The individual tasked with reviewing social media pages should

also only communicate relevant information to the hiring committee. 2. Employee’s right to engage in concerted activities. Under the National Labor Relations Act (NLRA), employees have the right to discuss their wages and terms and conditions of employment with others. This right is commonly referred to as a “Section 7 right” or the right to engage in “concerted activity.” Employers must be mindful of these rights when creating Internet policies, for they may unknowingly infringe upon them. For example, the policy “do not disclose confidential information online” may be unlawful because employees may construe the policy as preventing them from discussing conditions of their employment with other employees. Thus, policies should be drafted in a manner that clearly informs the employee that he or she is always allowed to discuss and disclose information regarding the terms and conditions of employment at his workplace.

3. Confidentiality. In light of Section 7 rights, how can employers protect their confidential and proprietary information without violating an employee’s right to discuss the terms and conditions of his or her employment? The answer is often an effective confidentiality policy. If you don’t have one, develop a confidentiality policy and have all employees sign it. This policy should enumerate a nonexhaustive list of the information, products, and documents the employer deems to be confidential information. To ensure all confidential information is included, it is recommended that employers include “all documents and communications identified as confidential, whether verbal or written,” in their definition of “confidential information.” Social media and the Internet are dangerous tools in the workplace. Employers should regularly reevaluate their policies and practices governing the use of these tools to ensure they avoid the pitfalls discussed above.

MN Valley Business • JANUARY 2019 • 1

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F E A T U R E S Januar y 2019 • Volume 11, Issue 4

Mankato has a surplus of empty big box stores and single-family homes have softened a bit, but construction, including apartments and senior living, remains strong.

The Southern Minnesota Brew Path is a way for small breweries to band together to buy TV ads and be promoted to other bar-goers and has been a hit with the breweries.

Jeff Chambers’ start-up company that makes neck protection for football players is getting more attention and raising more financial backing to go to the next level.

Carrie Sharp has added to the traditional coffee, tea and food offerings of the traditional coffee shop by opening Trio Coffee, Wine & Ale House in downtown Waseca.

MN Valley Business • JANUARY 2019 • 3

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JANUARY 2019 • VOLUME 11, ISSUE 4 PUBLISHER Steve Jameson EXECUTIVE EDITOR Joe Spear ASSOCIATE EDITOR Tim Krohn CONTRIBUTING Tim Krohn WRITERS Kent Thiesse Dan Linehan Dan Greenwood Harvey Mackay PHOTOGRAPHERS Pat Christman Jackson Forderer COVER PHOTO Pat Christman PAGE DESIGNER Christina Sankey ADVERTISING Danny Creel Sales Joan Streit Jordan Greer-Friesz Josh Zimmerman Marianne Carlson Theresa Haefner ADVERTISING Barb Wass ASSISTANT ADVERTISING Sue Hammar DESIGNERS Christina Sankey CIRCULATION Justin Niles DIRECTOR For editorial inquiries, call Tim Krohn at 507-344-6383. For advertising, call 344-6364, or e-mail advertising@mankatofreepress.com. MN Valley Business is published by The Free Press Media monthly at 418 South 2nd Street Mankato MN 56001.

■ Local Business memos/ Company news....................................5 ■ Business Commentary........................7 ■ Business and Industry trends .........20 ■ Retail trends ....................................21 ■ Agriculture Outlook .........................22 ■ Agribusiness trends.........................23 ■ Construction, real estate trends ....24 ■ Gas trends .......................................25 ■ Stocks ..............................................25 ■ Minnesota Business updates...........26 ■ Job trends ........................................26 ■ Schmidt Foundation ........................28 ■ Greater Mankato Growth .................30 ■ Greater Mankato Growth Member Activities ...........................30

From the editor

By Joe Spear

Threats rising on the regional SWOT analysis

he outlook for the Mankato regional economy may have more to do with prospects for insulating itself from national and international trends than anything that can be controlled at the local level. That’s a change from past years when things like tariffs didn’t exist, interest rates were near zero and stock market volatility was mostly low and prices were mostly high. A year can make a big difference. Tariffs imposed by the Trump administration took effect this year on things like soybeans, a major component of southern Minnesota’s ag economy. There are import taxes on steel which is good for Minnesota’s Iron Range, but not so good for manufacturers who make things with aluminum and steel like businesses in Mankato. The Federal Reser ve has already raised interest rates three times in 2018. By September, the federal funds rate was 2 percent to 2.25 percent, whereas it was a full percentage point above the rate at the end of 2017. Another rate hike was expected at the December meeting of the Fed as this issue of Minnesota Valley Business was going to press. The psychology of the market was buoyed temporarily when it was thought President Donald Trump and China President Xi Jinping agree to hold off on further tariffs in January. While the market took it to be a more permanent cracking of the ice in the relations, it later became clear the truce was only for 90 days. As a result, the stock market spiraled downward to a point in mid-December it was about flat for the year. The stock market volatility index as measured by trading on the Chicago Board Options

4 • JANUARY 2019 • MN Valley Business

Exchange has doubled this year. The measure or VIX, as it’s called, uses S&P 500 options to calculate the volatility and thereby risk in the stock market. Increased risk usually means businesses become less aggressive about expansion plans and credit, which, incidentally will cost quite a bit more as well. One cannot ignore the positive macro trends, however. U.S. GDP has been estimated at 3.5 percent for the third quarter, down somewhat from the second quarter growth that was 4.2 percent, the highest since 2014. Employment is strong and unemployment is low. Wages, however, remain fairly stagnant increasing just 0.5 percent year to year. The local trends are strong, however. September employment growth in the Mankato region topped 3.2 percent, reaching over 60,000 jobs for the first time in history. Growth has gone over 3 percent only one other time in the last 20 years, according to an analysis by Greater Mankato Growth. But more important, volatility in the local job market has decreased with 2018 being one of the least volatile years in recent history for employment ups and downs. Hourly wages also showed good growth at 3.7 percent. So the question of the Mankato economy this year revolves around how much these national factors affect local business. Interest rate increases may not matter if local companies can see robust growth and new business. So, employing the traditional “SWOT” analysis of strengths, weaknesses, opportunities and threats, the year ahead looks like there are more threats than opportunities and the strengths of the region (mainly robust

employment) will be the hope to carry the day and offset at least some of the threats. Tariffs on farm products are an obviously threat. Soybean exports are down 90 percent so far this year due to China buying from elsewhere. Elevators that shipped to the Pacific Northwest are full of soybeans and farmers’ bins are overflowing as they wait out low prices. Not an ideal strategy. We’re seeing farm bankruptcies rising, though the overall number remains fairly small in Minnesota going from eight to 20 in the last four years, according to data from the Federal Reserve in a report by the Star Tribune. It’s difficult to assess the overall negative impact of interest rates on the local economy, though building projects, whether single family homes or apartments, seem most susceptible to big changes. And that’s part of the problem. The changes in interest rates are not small and they’re coming more frequently than any time in the last 10 years. The Fed is raising them every three months. Interest rates have gained at least a percentage point or more in the last year. The 30-year fixed mortgage rate has gone from 3.9 percent last year to 4.9 percent. And home prices in Mankato have been going up by about 5 percent a year. That’s not a prescription for a robust real estate market in the coming year. Local bankers and developers talk about how many pent up mortgages are waiting to be written if reasonable homes could be purchased for under $200,000. Finally, what are the opportunities? One should not gloss over the fact that the Mankato region has a new friend in the governor’s mansion. It’s been 100 years since Mankato leaders have been so close to the major policy-makers in Minnesota government. Gov.-elect Tim Walz attributes much of his practical policy thinking back to what he says he has seen in Mankato. This is a prime opportunity for Mankato ideas to make it to overarching state policy that is about economic growth and social well-being. Health care, road funding and local government aid are keys that could start the engine of not only the Minnesota economy but the economies of regional centers as well. Adequate funding for higher education along with enhancing business/higher education partnerships could be a boon if done right. The Mankato area’s agglomeration of higher education institutions could be the jet engines of economic growth if we unleash them a bit. Threats, yes, there are many. But the Mankato area may be able to thwart and counter those threats with innovation and strategic thinking. The effort needed, however, will be substantial.

Local Business People/ Company News ■

House of Print promotions

Renee Petersen has been promoted to office manager/human resources at House of Print in Madelia. She has a background in office and HR with 18 years experience with Palm Beach/Weeres, a division of Premier Marine, formerly of New Ulm. Kevin Spitzner has been promoted to pressroom manager. He has been with House of Print since 1985 and has extensive mechanical knowledge of the equipment and processes. Brenda Ahern has been promoted to senior sales representative. She has worked for House of Print for 30 years with experience as office manager/HR, customer service and sales. ■■■

Madelia hospital names CEO

The Madelia Community Hospital & Clinic named Jeff Mengenhausen as their new hospital administrator and CEO. Mengenhausen is replacing Candace Fenske who retired in November. Mengenhausen was previously the senior executive director of the Heart and Vascular Institute at Regional Health in Rapid City, S.D. Prior to that position, he was the CEO of Crook County Hospital in Sundance, Wyo. and the COO for Horizon Health Care in Howard, S.D. He also served as a U.S. Navy SEAL out of Virginia Beach, Va. for nine years. While in the military, Mengenhausen earned a bachelor of arts in business administration/management and a Master’s of Business Administration/business operations (MBA) from American Intercontinental University. ■■■

Providers join Mankato Clinic

Mankato Clinic has added two new providers. Nicole Fischbach, FNP, joins Family Medicine at the Wickersham Health Campus. She earned her family nurse practitioner degree at the University of North Dakota, Grand Forks. She began working at Mankato Clinic in 2014 as a RN medication lead. Nathan Evers, PharmD, is a clinical pharmacist in medication therapy management. A clinical pharmacist optimizes medication therapy and promotes wellness. He graduated from the University of Iowa College of Pharmacy, Iowa City, and completed his pharmacy residency at Mercy Medical Center-North Iowa. ■■■

Waletich driver honored

Joe Spear is executive editor of Minnesota Valley Business. Contact him at jspear@mankatofreepress.com or 344-6382. Follow on Twitter @jfspear.

Thom Crawmer Jr, a driver for Waletich Corp. of Kasota, was honored by the National Association of Small Trucking Companies as a Driver of the Year. The association represents 10,000 trucking companies and more than 117,000 truckers. Crawmer has driven for Waletich for more than 14 years and has been a professional driver for more than 35 years. He has accumulated more than 2 million accident-free miles. MN Valley Business • JANUARY 2019 • 5

Pathstone honored

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Ecumen Pathstone Living in Mankato has received a “Best Nursing Home” rating by U.S. News & World Report magazine. Less than 20 percent of nursing homes in the nation achieve the “best” status. Pathstone received a “high performing” rating — the highest designation possible. Shelly Cornish is executive director of Pathstone. Pathstone also has received the highest possible overall quality rating of 5 stars from the Centers for Medicare and Medicaid. U.S. News compiles its rating information in a national Nursing Home Finder website that offers comprehensive information about care, safety, health inspections, staffing and more for almost all nursing homes in the country. ■■■

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Bowers joins Waseca bank

First National Bank of Waseca hired Alyssa Bowers as mortgage lender/consumer banker. Bowers joins the Bank with 21 years of experience in the areas of retail, mortgage, commercial, marketing and management. She received a bachelor’s degree from Minnesota State University where she majored in finance. Bowers and her husband, Mike, reside in Waseca with their three daughters. ■■■

Compeer’s Johnson honored

Cher yl Johnson has been honored by the Minnesota Mortgage Association as their 2018 Operations Professional of the Year. She super vises Compeer Financials consumer loan processing and servicing teams located in Mankato and Rochester. The nomination for Johnson noted her commitment to improve processes, training employees and efforts to work with her team members on their career development. She was recently chosen to participate in a Leadership Development program through Compeer Financial and also plans to take additional training through the Mor tgage Bankers Association.

6 • JANUARY 2019 • MN Valley Business

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Business Commentary

By Harvey Mackay

Communication need not be complicated

everal years ago, a seasoned plumber wrote to the U.S. Bureau of Standards promoting a new procedure for cleaning pipes. The bureau replied: “The efficiency of the recommended solution is completely undisputed. However, there is an inherent incompatibility between the aforementioned solution and the basic chemical structures of the commonly used materials in current household and commercial pipeworks.” The plumber wrote back saying, “Thanks, I really liked it, too.” Within a few days, the Bureau responded with another letter: “Don’t use hydrochloric acid! It eats holes in pipes!” Wouldn’t it have been so much easier – and less expensive – to put it simply the first time? The word communication comes from the Latin communico, meaning share. We share ideas, thoughts, information and concerns. Communication can start friendships or make enemies. Communication needs to be clear and understandable. Communication requires both effective sending and receiving. And if we don’t do it effectively, we have wasted our time. Research psychologists tell us that the average oneyear-old child has a three-word vocabulary. At age two, most children have a working knowledge of 272 words. A year later, that number more than triples. At age six, the average child has command of 2,562 words. As adults, our word accumulation continues to grow but the effective use of them does not necessarily follow. We can speak up to 18,000 words each day, but that doesn’t mean those messages are clear or correctly received. In fact, words can often obscure our messages instead of clarifying them. No one can succeed in business, or in life, for that matter, without developing good communication skills. The most basic yet crucial leadership skill is communication. It’s important to continue to evaluate your performance in these fundamental areas: • Speaking. Good verbal skills are essential. You have to be able to explain your requests and instructions, your ideas, and your strategies to people inside and outside your organization. Look for opportunities to hone your speaking skills at conferences, in meetings and among friends. • Listening. Pay attention to the people around you. Repeat and paraphrase what they say to make sure you understand – and to show that you take their opinions seriously. • Writing. The paper trail you leave tells people a

lot about how clearly you think and express yourself. Don’t send even the simplest email without rereading it critically to be sure it says just what you want.

• Leading meetings.

You should encourage other people to share their ideas without letting discussions meander aimlessly. Sharpen your ability to keep meetings on track and elicit productive comments. Remember that every meeting should begin with a solid agenda and conclude with a commitment for action. • Resolving conflict. Conflict can be subtle, but you still must defuse it if you want things to get done. You’ll use a lot of the skills already discussed to encourage people to open up and clear the air about their disagreements. • Persuasion. The right words can stimulate agreements, offer alternate points of view, provoke thoughtful consideration and bring people around to your way of thinking. This is an especially critical skill for sales people, which is all of us in one capacity or another. Perhaps the most helpful advice came from Peter Drucker, the late management guru, who said, “The most important thing in communication is to hear what isn’t being said.” Beware of misinterpreting simple messages because of your perception of the sender’s meaning or intent. Here’s an eye-opening fact: the 500 most common words in the English language have more than 14,000 definitions. That explains a lot of why verbal interactions often create confusion and misunderstanding. Two people meet at an art exhibition. “What is your line of work?” asked the woman. “I’m an artist,” came the reply. “I’ve never met a real live artist before,” said the woman. “This is so exciting! I’ve always wanted my portrait painted. Could you do that?” “That’s my specialty!” the artist said. “Wonderful!” she said. “I just have one request. I want the painting done in the nude.” The artist hesitated for a minute and then said, “I’ll have to get back to you.” A few days later the artist called the potential customer to discuss the plan. “I’m willing to do the painting as you requested,” the artist said, “but I have one stipulation. I want to leave my socks on. I need somewhere to put my paintbrushes.” Harvey Mackay is a Minnesota businessman, author and syndicated columnist. He has authored seven New York Times bestselling books MN Valley Business • JANUARY 2019 •

Justin Jackson will build townhomes and eight-plexes on this property near Wickersham health campus.

Apartments still reign Builders work to keep up with demand By Tim Krohn | Photos by Pat Christman

ustin Jackson started in business with a small rental property and managing other properties before getting into the development side, including townhomes at Hiniker Pond and in Eagle Lake. He recently purchased land near the Wickersham clinic campus where he will start building twin homes and eightplexes next spring. Jackson, who’s seen his development business steadily grow over the years, is bullish on the continued growth in the area.

“I’m happy with the way the city EDA and local commercial Realtors and the business leaders are bringing people to the city because that’s a driver for housing.” In the past year the pace of multi-family housing construction has continued strong and single family-construction also has stayed fairly steady. It’s a trend local developers and city leaders expect will continue this year. Mankato City Manager Pat Hentges expects that population growth to continue, pointing to a recent

Cover Story

8 • JANUARY 2019 • MN Valley Business

study commissioned by the school district to gauge future growth. “Within the district boundaries it shows there will be continued growth of families with schoolage kids in a lot of the Mankato and Eagle Lake areas. A lot of that is there’s more multi-family housing being built that is attractive to young families,” Hentges said. “Single-family housing isn’t the only form of housing that’s attractive.” The area’s biggest local developer, Mike Drummer, has been surprised at the strength of the multi-family housing market in recent years. “I don’t see the end of it. With interest rates going up, that knocks people out of buying homes so I think the rental market is going to stay strong. We’re adding population to our area and they will be living in rentals,” Drummer said. Jon Kietzer, owner of Century 21 Landmark Realty, said the sale of existing commercial properties in the area remains fairly strong, although a glut of empty big-box store buildings is an issue that will be tough to work through. “Mankato’s economy is pretty positive. There are some soft spots but overall it’s pretty positive.”

A rough season

While the demand for housing may be strong, the weather during the past construction season was not kind. “It was a terrible season. It was totally weather-based, not economic-based or any other factor,” Drummer said of the heavy and frequent rains that shut down and delayed projects everywhere. “It trickled down to everyone else. If you’re a plumber, they get held up and everyone else does, too.” He had a street near Prairie Winds Middle School that he wanted to have paved by last fall, but it was filled with water and will have to wait until this year to be finished. “There was 4 feet of water over it. I actually have a photo of fish that were in it after we pumped it out.”

Top: A new Kwik Trip recently opened on land behind Kohl’s in Mankato. Above: Workers were slowed by a wet summer but are continuing building apartments into the winter months on land near Prairie Winds Middle School. Weather aside, Drummer is continuing to build apartments, senior-living units and singlefamily homes on part of the land near the school. Another developer bought land from Drummer and is working on a commercial development in the area behind Kohl’s. And a developer is building housing on part of the large tract of land near the new school. “The senior market really picked up. It came back strong after the recession and hasn’t slowed at all,” Drummer said. “If you have more seniors move, you have starter homes become available for another generation to slide into.”

He says that as interest rates rose the market has softened for spec homes – homes developers build without a specific buyer lined up. “But for people with blueprints who wanted to build, that’s been the best ever.” Jackson, whose new subdivision is next to the Knollwood Park mobile home park near Wickersham, is focusing his efforts on apartments and townhomes. “We follow the trend of what’s in demand. We’ll do 20 twin homes and eight eight-plexes. We’ll phase them in as the market allows,” he said. “I think everybody eventually

MN Valley Business • JANUARY 2019 • 9

wants a single-family home. We offer that transitional housing until they have the right income situation to move into a house.”

Fewer lots

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Drummer said that by 2020 he and the other developer will likely have most of the land around Prairie Winds filled in. That, along with housing developments going up farther north along Highway 22, will eat up most of the available ready-to-build lots. “In Mankato we’re pretty much out of lots. I think it’s the lowest inventor of lots I’ve seen in 25 years.” Hentges agrees the number of available lots are starting to diminish. “Generally speaking most of the existing subdivisions are built out. We easily absorb about 100 lots for single-family homes each year. So ideally you need maybe 200 lots ready to develop at any time.” He said it will take developers to purchase land and start new subdivisions to add more lots. Hentges said that while it’s the private developers who purchase the land and pay for a lot of the improvements, the city is closely involved. “It’s a private market but every subdivision involves city financing and facilitation.” While there is still a lot of open land between Mankato and Eagle Lake, Drummer said Mankato’s geography offers some limits to future developments. “We’re land locked by a river and by an airport flyway to the north and lots of swamps to the south and the east,” he said. Hentges said in spite of some softness in certain markets and a housing slowdown in many parts of the state and country, Mankato looks fairly solid moving forward. He said building permits for residential construction and remodeling are holding fairly steady. “There are fewer single-family and townhomes and slightly more apartments. I’d like to see more single-family and more lots,” Hentges said.

Jon Kietzer, who has owned the Landmark Center at the intersection of Main and Second streets in downtown Mankato since 2014, is planning to convert it to a boutique hotel. Photo by Jackson Forderer

Boutique hotel planned for downtown Kato By Tim Krohn

he intersection of Main and Second streets in downtown Mankato is already seeing a lot of new development. A seven-story office building that will house financial services firm Eide Bailly and other office tenants is going up on one corner. On another corner, next to the library, another tower is going up that will house Prairie Care, which will offer mental health services for adolescents. And if all goes well, the historic Landmark Center building, on a third corner of the intersection, will be expanded and converted to a boutique hotel. “I”m talking to a couple of hotel operators that are interested. It’s not a done deal, but I think it will

happen,” said Jon Kietzer, who owns the building and owns Century 21 Landmark Realty. The 1920 building was originally built as an auto dealership. “We will add on a little and keep its historic nature and look.” He said new additions will be added on toward the Landkamer building and on the other end of the building. “The first floor will be a restaurant and banquet rooms and the upper two floors will have 62 rooms,” Kietzer said. He hopes to begin construction and renovation this year. Boutique hotels are upscale with different designs for the hotel rooms rather than cookiecutter room styles.

He said it’s exciting to see the new towers going up downtown. “I hear there is more interest in people wanting to go into (the Eide Bailly building) and elsewhere in that area. That’s what happens when you have a nice project like that.” While Eide Bailly will be relocating from its hilltop Mankato location, Kietzer said he likes to see new businesses coming to town to lease space or buy a building. “I think we need more out-oftown tenants coming to town. I think we could see more medicaltype tenants coming in with all the medical we already have here.”

MN Valley Business • JANUARY 2019 • 11

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Hentges said the big industrial project this year is the expansion of Johnson Worldwide’s production and storage facility on the east side of the city. “That’s a big project. For industrial, if we continue to have one large industrial project a year, we’d be doing great for Greater Minnesota.” While industrial development has been decent, the amount of empty retail space in the city is a concern. “Obviously the big-box vacancies are another issue,” Hentges said. “That’s resetting the market.” In recent years Sears and Herberger’s left River Hills Mall, Gander Mountain and Gordman’s closed, and Lowe’s announced late last year it was closing. “A significant amount of our growth 10 years ago was big boxes coming in. I was amazed that they kept coming,” Hentges said. “There was perhaps overbuilding.” Reusing all those empty big boxes will take some creativity said Hentges and the developers. “Those big spaces aren’t readily adaptable to something else than what they set out to be,” Hentges said. MV

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Caleb Fenske and Doug Fenske behind the bar at Lost Sanity Brewing in Madelia. Bottom: A passport booklet for the Southern Minnesota Brew Path, opened and stamped on the Lost Sanity Brewing Page.

On the Beaten Path

‘Brew Path’ helps breweries market on small budget By Dan Linehan Photos by Jackson Forderer

ith a limited budget to promote themselves, small businesses often rely on low-cost options like social media. That makes persuading them to buy ad space a perennial problem for advertisers like KEYC-TV. In the case of small breweries, the Mankato TV station believes it has found one solution to both their problems. It’s called the Southern Minnesota Brew Path, and it’s a way for small breweries to team up to buy TV ads and be promoted to other bar-goers. This model, whereby customers buy a “passport” to get deals at participating breweries, is a common

14 • JANUARY 2019 • MN Valley Business

method for tourism agencies and others to promote small businesses. KEYC’s version, which started in September, includes a passport that costs $10 and entitles its holder to a buy-one-getone-free deal at each of the 10 participating breweries. A passport stamped at each location gives its holder free merchandise, like hats and glasses. A new version of the passport with bigger prizes is coming out in January. At Lost Sanity Brewing in Madelia, which opened in March 2018, co-owner Caleb Fenske said the business had been relying on word-of-mouth and social media advertising. Fenske and co-owner Doug

Left: Caleb Fenske prepares a flight of sample beers at Lost Sanity Brewing. The brewery, with other local bars and breweries, is participating in the Southern Minnesota Brew Path. Right: Ellen Morrow (right) takes a drink from a darker beer while trying a flight of samples with friend Sharon Dexheimer (left) at Lost Sanity Brewing. It was their first time visiting the brewery in Madelia. Fenske, his father, both started the business while working fulltime jobs. So you can sort of see where their name came from. “At least for now, until cash flow gets to be a thing, we wanted the biggest bang for our buck,” Caleb Fenske said. In addition to selling passports to defray some of the advertising’s cost — breweries that sell the passport keep the $10 — the Brew Path puts Lost Sanity’s name in front of potential customers. The buy-one-get-one coupon is often enough to motivate visitors to make slightly longer drives, say, 25 minutes from Mankato to Madelia. Selling the passport also gives him an opportunity to talk to his customers, and he’s pretty good at establishing a rapport with all types of beer drinkers. “I have a pretty humble beer drinking background,” he says. “I started at Miller Lite only and morphed into craft beer.” Ted Ornas, the account executive at KEYC who started the program, says he thinks many drinkers would like to visit multiple breweries on their excursions. But the breweries often struggle to get on the radar screen. “Some of these operations are two-to-three person businesses that don’t have a big marketing budget and I would say a huge majority started in their home,” he said. In the weeks since opening LocAle Brewing Company in late October, Jim and Lauren Parejko have mostly relied on social media to get the word out about

Cover Spotlight ON THE PATH

u4ic Brewing, Inc.: 23436 Union Trail, Belle Plaine, 952-873-3303 Lost Sanity Brewing: 12 W. Main Street, Madelia, 507-642-2337 Oswald Brewing Company: 110 S Main St, Blue Earth, 507-526-3101 Mankato Brewer y: 1119 Center St. North Mankato, 507-386-2337 LocAle Brewing Co.: 228 Poplar St, Mankato Patrick’s on Third: 125 3rd St. St. Peter, 507-931-9051 10,000 Drops Craft Distillers: 28th 4th St. NE, Faribault, 507-838-0383 The Boulder Tap House: 291 St. Andrews Dr. Mankato, 507-344-1643 Pub 500: 500 Front St., Mankato, 507-625-6500 Midtown Tavern: 524 N. Riverfront Dr., 507-345-1909 To learn more: Visit the brew path’s website, smnbrewpath.com

the Mankato business. The winter, they say, is an especially difficult time for bars; just getting people in their Poplar Street doors can be a struggle. Both owners have kept their day job — him as a teacher at Gustavus Adolphus College and her as a quality manager at an ethanol plant — and don’t have a lot of time left over for marketing. “That was one of our reasons for getting involved” with the Brew Path, Lauren Parejko said. “It helped to have KEYC to be involved and be on their website and on commercials.” Though they have tried to make their bar accessible to casual drinkers, they’re hoping the Brew Path puts their business in front more craft brew veterans. They, too, have found recouping their costs by selling the passports to be a key incentive. But they don’t see it as helping their competitors on the Brew Path advertise; more customers likely means more for everyone. “We see all of them as being part of community, not so much competition,” Jim Parejko said. For newcomers looking to cash in their buy-one-get-one offer at LocAle, he recommends SMaSH, a golden ale that fits plenty of tastes. Because of the successes of this Brew Path model, KEYC is putting together a group for manufacturers to find employees and chiropractors to find customers. “Again, without having that marketing budget, here’s another way to pool resources and get that word out,” Ornas says. MV

MN Valley Business • JANUARY 2019 • 15

Dan Rickbeil, left, and Jeff Chambers with some of the Kato Collars.

Collaring the Market Jeff Chambers eyes youth sports By Dan Linehan Photos by Jackson Forderer

t first, Mike Claflin’s teenage son didn’t appear worse for wear after the hit that jerked his head back, tearing his football helmet off. But by the middle of the next day he had a headache and memor y lapses, and Claflin knew his boy had a concussion. As an assistant football coach at his son’s Oklahoma high school, he’d seen these head injuries before. But he’d never seen one as serious as this. “He couldn’t stand the lights, he was stuck in a dark room for a week,” Claflin said. “As a parent, it was really scary.” But he knew how much his son enjoyed playing football, so he searched the internet for protective equipment that could keep him on the field, safely. A Google search led him to the Kato Collar, and as he spoke with its owner, Jeff Chambers of North Mankato, it was the attitude of the man on the other line as much as the collar itself that led him to purchase one. “I think he cares more about the kids than he does the product,” Claflin said of Chambers, who spent 18 years as a certified athletic trainer at Minnesota State University. As for Claflin’s son, the collar provided a

sense of safety while preserving his neck’s range of motion. “He won’t take that thing off for anything,” Claflin said. Chambers’ Mankatobased company, Guardian Athletics, is growing quickly since shipping its first Kato Collar in late April. He’s focusing on college football, traditionally the testing ground for new equipment for both the NFL and youth athletics. The Kato Collar has been sold to (or, in a handful of cases, given as a promotional item to) 44 of the 64 colleges that comprise the “Power Five” NCAA conference, the highest echelon of college football. “When you see the product that we’ve developed on TV on some of these teams, it’s pretty cool,” Chambers says. The company also recently signed a deal with former NFL quarterback and CBS analyst Rich Gannon to help promote Guardian Athletic’s products. But even as his company pitches colleges on his collar, Chambers is raising $1.5 million to develop a new, smaller version aimed at younger players. Though there are plenty of potential customers at the collegiate level, perhaps

Feature

16 • JANUARY 2019 • MN Valley Business

100,000, the number of players is like a pyramid organized by age — larger the younger you go. There are about a million high school football players in the U.S., and perhaps three times that in youth teams. Though the Kato Collar is to some extent benefiting from the growing awareness of concussions, most of its users aren’t buying the collar for its head injury protection. Instead, they’re tr ying to prevent compressed or stretched nerves in the neck and shoulder, a painful injury called a “burner” or “stinger.” As it moves to expand its distribution and add products, Guardian Athletics is moving from a startup to a scaled-up company. Like many young companies, it has yet to turn a profit and is relying on investors’ money. Its future is uncertain. Will college and professional players use it, boosting its credibility? Will it catch on with coaches and parents? Meanwhile, Chambers is all-in, having left his university job in fall 2017. “I’d be lying if I told you there haven’t been moments when you’re a little bit scared,” he says, but adds that his faith has been helpful. “There are so many things out of your control that you trust in the Lord to get things done even through the setbacks and the things that happen that make you wonder if you’re going to make it.” He also credits the company’s progress to full-time Chief Operating Officer Dave Norris and its part-time national sales director, Todd Tanhoff.

Reviving an old idea

Chambers first had the idea for the Kato Collar in 1997, when he was head athletic trainer at the University of Wisconsin-Oshkosh. He thought a padded collar could help one of his players prevent the hyper extension of the neck that damages nerves and causes burners. A decade later, by then at MSU, Chambers shared his idea with a colleague, who used it as a project for entrepreneurship course. The business plan created by the class was one of three winners of a $5,000 Brian Fazio Business Creation Project award from Greater Mankato Growth. Chambers went on to design five prototypes before securing two patents of a 12-ounce model in 2014 and 2018. He ditched the air pads, which cause kickback and were prone to rupture, in favor of thermoplastic elastomer, a rubber-like material. The collar, which attaches to shoulder pads, is designed to slow down the head, reducing the forces that cause concussions and burners. Testing at a Maryland lab found the Kato Collar reduced the speed of the head by between 10 percent and 30 percent, depending on the direction and type of impact. It’s essentially like an airbag for the helmeted head. Reducing speed is important to prevent concussions because the whiplash movement of the head after impact may cause more damage than the first hit. But, for many players, the Kato Collar’s main selling point is preserving their neck’s range of motion and their ability to scan the field and make big plays. It was this ability to protect the player while offering them a full range of motion that drew athletic trainer Melissa Johnston to the Kato Collar. In her case, though, she had another reason to trust him.

Stingers no more

Johnston met Chambers in the ‘90s while she was a student at Oshkosh and credits him with her decision to become an athletic trainer. “It was the passion he had for the athlete and getting them better and always to think outside the box,” she says. She now works with youth athletes in the small city of Berlin, in eastern Wisconsin. When one of her players was experiencing arm pain from frequent burners that sometimes took him out of the game, she naturally considered her old friend’s collar. Other collars prevented the player from looking over his shoulder, but the Kato Collar preserved his range of motion. Johnston says some schools can buy the collar directly, but in this case because the student wanted to take the collar to college so the boy’s family bought it. Though he’s gotten a few burners since using the helmet, they’ve been much milder, with the pain lasting well under a minute. “The concussion prevention is an extra benefit,” she says. For now, most of Chambers’ customers are buying the Kato Collar for burner protection because collars are the product typically associated with the injury. But, in the long term, Chambers expects concussion protection to be its main selling point with youth. Though he’s been making some sales directly through the website — he also temporarily lowered the price, from $249 to $179 — Chambers has been raising his product’s profile.

Getting it out there

Starting last summer, he’s been working with three companies that distribute sports medical supplies to high schools and colleges. In September, he started a new promotional partnership with Gannon, the NFL player and TV analyst. Though Gannon is being compensated for his advocacy, “He came on board because he really liked our product,” Chambers said. It’s also personal; Gannon’s NFL career ended as the result of a 2004 neck injury. Chambers said his company is also in talks with a forthcoming football league, the Alliance of American Football, which has eight teams and plans to operate in the NFL’s off-season. Both these moves, if successful, could raise his product’s profile but, again, the real market is in the youth. Parents will be interested in preventing concussions, he said, but even they aren’t the real gatekeeper. “They’re usually looking for coaches to say what the best helmet and equipment is,” Chambers said. Develop credibility with these people, in other words, and sales are likely to follow. The next major step for Guardian Athletics is to secure new funding to develop a youth collar. “Capital is what keeps the machine running,” he said, adding that he hopes to reach profitability relatively soon. “I would say there’s a good chance, if we can get to a youth and junior high collar, you can be making a profit in year three, maybe by the end of next year,” he says. They’re focusing on football for now, but have other sports in mind, too. There are millions of skiers, snowboarders, mountain bikers and snowmobilers, and plenty of concussions to prevent. MV

MN Valley Business • JANUARY 2019 • 17

Carrie Sharp recently opened Trio Coffe, Wine & Ale House in downtown Waseca.

Triple play Trio offers coffee, wine and ale

By Dan Greenwood | Photos by Tim Krohn

provided a platform for a number of community fter Waseca’s only independently owned coffee meetings and events over 19 years. Her husband, shop closed in May of 2018, some locals Mike Jevning, ran the establishment after she passed wondered if that was the end of lounging with a away following a battle with cancer book and a cup of espresso in the in 2017. historic downtown building. Carrie Sharp, a long-time “When the Daily Grind closed we customer of the Daily Grind, really missed that,” said Peggy Larkin, a longtime customer. “It TRIO COFFEE, WINE purchased the building with her husband Jeremy right around the was a really great place to hang out. & ALE HOUSE time it closed in May. Along with We didn’t know what was going to 100 North State St., Waseca the new coffee shop, it houses happen.” 507-835-9186 The Daily Grind was owned by ICAN, an organization that serves facebook.com/triowaseca Tracy Jevning, whose business people with disabilities, and several

Profile

18 • JANUARY 2019 • MN Valley Business

second floor apartments on the corner of State Street and Elm Avenue (old Highway 14), at the town’s busiest intersection. While some of the food and coffee are the same, Sharp saw an opportunity to attract a morning, noon and evening crowd. Following several months of renovation, she opened Trio Coffee, Wine and Ale House in early October. After spending nearly two decades as a social worker, the idea of running her own business had been on her mind for several years. “I have always been interested in doing something like this, Sharp said. “The wine and the beer is a passion, my husband brews at home. We typically brew together and we love visiting wineries. We loved the coffee and so we thought let’s keep all three, and do a grouping of the three of them together, so that’s how we came up with Trio.” Some things have remained the same. Half of her staff of 11 were employees at the Daily Grind. The coffee is sourced from European Roasterie in Le Center and some of the popular Panini sandwiches are the same. She also had the chance to work at the Daily Grind before it closed. “The last month that the Daily Grind was in operation, the owner, Mike, hired me on to fill in for one of the staff that was on maternity leave,” Sharp said. “So I had the opportunity to meet the staff and work with them.” She said that many of the customers, particularly the regulars who come in to work on their computer, get their morning coffee, or come for a lunch break have remained loyal. Sharp says there are new customers who come for a glass of wine or craft beer to relax at the end of the day. She says the two bakers working for her make cheesecake and homemade scones, and there is a revolving display of other baked goods along with naan pizza, deconstructed gyros, and hors devours like smoked salmon and a hummus platter. “We had a whiteboard at home and we’d write stuff down and then we’d erase it and add things to it,” Sharp said. “We’re constantly evolving that.”

They also have 15 wines to choose from, experimental craft beers like sour ale, and beers brewed with mangos and apricots. For non-alcoholic options, they have bottles of ginger beer and kombucha on tap, a fermented low alcohol beverage equivalent to non-alcoholic beer that is brewed using tea leaves, fruit and spices. Sharp said Minneapolisbased Feral Beverage Co. works with the same distributor as European Roasterie. She was impressed with the variety of flavors, like ginger, mint, cayenne and hibiscus. “We can pick any of those flavors,” she said. We drive up there and we get kegs from them. It’s two guys that make kombucha in a pretty small area.” Sharp is planning extra seating for special events in the basement. Zinnia’s Boutique have set up a temporary shop there were Trio customers can browse with a glass of wine. The building is the site of Citizens National Bank which operated in the late 1800s. Sharp hopes to build a wine cellar in the old bank vault and expand soft seating options for more of a

living room feel. The walls are adorned with Larkin’s artwork, whose daughter works at Trio and prior to that, was an employee of the Daily Grind. Sharp’s son, a guitar player, has performed at Trio and his first guitar on the wall is available for anyone to play. And Trio has jazz ensembles lined up to perform there in the future. Sharp also plans to buy a piano available for any customer who feels the creative urge. It’s all part of an ongoing effort to make Trio a multi-use community space among renewed interest in the downtown area. As she looks out the window while enjoying a cup of coffee, Sharp notes how busy the downtown area is. “My big dream, and I know a lot of other businesses downtown, is to revitalize the downtown area. We’re trying to pull people in. I think we’re making a comeback with a lot of the stores down here.” MV

MN Valley Business • JANUARY 2019 • 19

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The U.S. Energy Information Administration expects that average household bills for most major energy sources of home heating will rise this winter because of higher forecast energy prices. Temperatures are expected to be roughly the same as last winter in much of the country. Forecast winter home heating expenditure changes vary significantly by both fuel and region. On average, natural gas bills will rise by 5 percent, home heating oil by 20 percent, and electricity by 3 percent. However, expenditures for homes that use propane are expected to be about the same as last winter. Nearly half of all U.S. households heat primarily with natural gas. EIA expects households heating primarily with natural gas to spend about $30 more this winter compared with last winter. A less than 1 percent increase in consumption and an almost 5 percent increase in price is driving the increase in forecast expenditures compared with last winter.

Diesel price down

The ultra-low sulfur diesel futures price for delivery in New York Harbor settled at $2.20 per gallon in November, a decrease of 21 cents per gallon from October. The difference between the price of ultra-low sulfur diesel and the price of Brent crude oil increased by 8 cents per gallon to settle at 47 cents per gallon during the same period. Distillate inventories declined, which was the first monthly decline since May. U.S. refiners

produced a record level of distillate from June through September 2018, which helped to rebuild inventory levels after they fell in May to the lowest level in four years. However, distillate production declined and consumption combined with exports increased, leading to the decline in inventories.

Crude and natural gas reserves hit record

High prices and continued development of shale and tight resources drove proved reserves of both U.S. crude oil and natural gas to new records in 2017, according to EIA’s recently released U.S. Crude Oil and Natural Gas Proved Reserves report. Proved reserves of U.S. crude oil increased 19.5 percent from the end of 2016, reaching 39.2 billion barrels and surpassing the previous peak level of 39 billion barrels set in 1970. Proved reserves of natural gas increased 36.1 percent from the end of 2016. Proved reserves are those volumes of oil and natural gas that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. Changes in proved reserves from year to year reflect new discoveries (in new fields, new reservoirs in old fields, or extensions of existing reser voirs), net revisions and other adjustments to previous reserve estimates, and reductions from annual production of each fuel. Higher fuel prices typically increase estimates as operators consider a broader portion of the resource base economically producible. Texas and New Mexico had the largest net increases in proved reserves of crude oil in 2017.

CO2 rose in ’18

After declining by 0.8 percent in 2017, it is forecast that U.S. energy-related carbon dioxide (CO2) emissions rose by 2.5 percent in 2018. This increase largely reflects higher natural gas consumption in 2018 because of a colder winter and a warmer summer than in 2017. The emissions are expected to decline by 1.3 percent in 2019 because temperatures are forecast to return to normal. Energy-related CO2 emissions are sensitive to changes in weather, economic growth, energy prices, and fuel mix.

Retail/Consumer Spending Vehicle Sales Mankato — Number of vehicles sold - 2017 - 2018 1500

1,127

958

1200 900 600 300 0

Source: Sales tax figures, City of Mankato Includes restaurants, bars, telecommunications and general merchandise store sales. Excludes most clothing, grocery store sales.

Sales tax collections Mankato (In thousands)

- 2017 - 2018

600

$464

$454

500 400 300 200 100 0

Source: Sales tax figures, City of Mankato

Lodging tax collections Mankato/North Mankato

- 2017 - 2018 $60,726

$56,967

70000 52500 35000 17500 0

Source: City of Mankato

Mankato food and beverage tax - 2017 - 2018 175000 140000

$64,600 $64,700

105000 70000 35000 0

Source: City of Mankato

C. Sankey

MN Valley Business • JANUARY 2019 • 21

■

Agricultural Outlook

By Kent Thiesse

Key ag policy issues loom in the year ahead

n 2019, the U.S. House will switch over to a Democratic majority, which means that all of the House Committee leadership positions will also now change. Minnesota Congressman Colin Peterson will now chair the U.S. House Agriculture Committee. There are many major issues that could potentially affect the agriculture industry and rural communities that still need to be addressed and resolved by Congress and ultimately signed by President Trump in the coming months and years. Following is some perspective on a few of the key ag policy issues that will likely need to be addressed during the 2019 session of Congress or by the Trump administration:

Trade war solutions

As we ended 2018, there was some positive news related to a couple of trade agreements that are important to agriculture. In late November a new trilateral trade agreement, called the United StatesMexico-Canada Agreement (USMCA), was signed by President Trump and the leaders of Mexico and Canada. The USMCA agreement will replace the current North American Free Trade Agreement (NAFTA). The NAFTA trade agreement was originally set up in 1994 between the three countries, eliminating many tariffs and other trade barriers among the participating countries. Since 2017, the Trump administration has challenged some of the trade provisions under NAFTA, threatening that the U.S. will withdraw from NAFTA, if a new trade agreement is not reached. The current added tariffs on U.S. ag imports going into Canada and Mexico were still in place at the end of 2018. On December 1, President Trump and Chinese leader Xi Jinping reached a “hand-shake’ agreement to at least call a 90-day pause in the deteriorating trade relations between the U.S. and China, by agreeing not to add any new tariffs. They also agreed to continue negotiating a new trade deal between the two countries; however, there are many complex trade issues that still need to be resolved before we will likely see trade volume return to pre-2018 levels. Once again, the existing added tariffs on U.S. soybeans and other ag imports going into China were still in place at the end of 2018. Many times, trade deals between countries are very complex and difficult to understand, as well as taking several years to be fully implemented. The new USMCA agreement, as well as any other new trade agreements with China or other countries, will likely be no different. The USMCA agreement and other new trade agreements will need to be approved by all participating countries, as well as by the U.S. Congress. Getting Congressional approval for USMCA or any other new or revised trade

22 • JANUARY 2019 • MN Valley Business

agreements may be difficult, as there are certain members of Congress in both parties that tend to oppose most trade deals in general. Most likely, arriving at final Congressional approval of USMCA and other trade agreements will require some bipartisan support in both Houses of Congress.

New Farm Bill

Agreement was reached on a new Farm Bill late in 2018. USDA will now be charged with getting the rules and regulations written and out to local Farm Service Agency offices, so that farm program sign-up can begin for the 2019 crop year. Fortunately, the commodity programs for crops in the new Farm Bill will be very similar to the last Farm Bill, so farm operators should have a pretty good understanding of the farm program provisions. In the Upper Midwest, expect a high percentage of corn, soybean, and wheat producers to switch to the price-only “price loss coverage” program option for 2019. During the years of the last Farm Bill (2014-2018), over 90 percent of the corn and soybean acres were enrolled in the county yield-based “g Risk Coverage program, which has provided a declining farm income “safety net” in recent years.

Farm financial stress

Low profitability in both crop and livestock production for the past several years has increased the financial stress for farm families in many areas of the U.S. This financial stress was accentuated in 2018 by the reduced commodity prices associated with the trade issues that the U.S. had with China, Mexico and Canada. In addition, 2018 crop yield reductions in portions of Minnesota, Iowa, and other Midwestern States resulted in much lower 2018 farm income levels. Many ag experts expect the trend of very tight profit margins in crop and livestock production to continue into 2019 and 2020. Some ag leaders are questioning if the federal “safety net” programs and other farm risk management tools and are adequate to protect impacted farm operators from financial collapse during these downturn periods. This may become a major point discussion by agricultural leaders and some members of Congress in the coming months.

High health care costs

High health care costs and access to adequate health care services was the lead issue in the 2018 mid-term elections in many Midwestern States, and continues to be a major concern for farm families and other rural families across the country. Some families have seen health insurance premium costs double or triple in the

past few years. There are farm families and small business owners currently paying $30,000 to $50,000 per year or more for health care premiums, if they are even able to find adequate health care coverage. It will be interesting to see if Congress and the Administration can collaborate on finding some workable solutions to the health care crisis that exists for many rural families in the U.S.

Renewable energy

The Trump Administration and many members of Congress have all pledged support for renewable energy, but there have been some differences in what type of policies should be enacted. Many have maintained support for the mandated use of renewable fuels through the Renewable Fuels Standards (RFS), as well as other incentives for renewable fuels, such as tax credits, etc. This has included the adoption of 15 percent ethanol blends for gasoline and higher soybean biodiesel blends. While there is generally considerable support for development of alternative energy sources, Congress and many organizations have become quite divided on the future of the RFS and other mandated energy programs. Ethanol and 8 biodiesel production, which are covered by the RFS and other renewable energy policies, have a major 6 economic impact for farm operators and on the overall rural economy, especially in the Midwest. 4

Infrastructure improvements

One2 area that the Trump Administration and key leaders from both parties in Congress seem to agree on is the 0 need for a major infrastructure bill to address F M and A future M J infrastructure J A S O needs N Din the manyJ existing the U.S. However, there is likely a vast difference, both politically and geographically, on what the needs are and how is the best way to address and fund these infrastructure needs. Obviously, there are many needs 8 that affect agriculture and rural America, which 100 improving roads and bridges, railroad include 6 upgrades, updating locks and dams, enhancing 85 broadband access, just to name a few. It will be 4 interesting if the leadership in Congress can reach 70 some agreement on putting forth a major piece of 552 legislation that could address some of these very big infrastructure needs in the coming years. 400

Summar y 25

F M Ano shortage M J JkeyA ag Spolicy O issues N D There isJ obviously

and other issues affecting farm families and rural communities that need to be addressed at the federal level in the next few years. However, it is not clear if the changing leadership in Congress, as well as the 100 large number of new members of Congress, will have 85 any impact in getting beyond the partisan political atmosphere that has existed in recent years, in order 70 to find some bipartisan solutions to these very challenging policy issues. It is also not clear how 55 cooperative that President Trump and the 40 Administration will be in working with Congressional leaders on these important issues. 25

Kent Thiesse is farm management analyst and senior vice president, MinnStar Bank, Lake Crystal. 507-381-7960); kent.thiesse@minnstarbank.com

Agriculture/ Agribusiness Corn prices — southern Minnesota

(dollars per bushel)

— 2017 — 2018

8 6

$3.35

2 0

$3.03

Source: USDA

Soybean prices — southern Minnesota

(dollars per bushel)

— 2017 — 2018 8 20 100 16 6 85 $9.11 12 470 8 255 $8.26 4 40 0 0 J F M A M J J A S O N D 25 J F M A M J J A S O N D J F M A M J J A S O N D Source: USDA

Iowa-Minnesota hog prices

185 pound carcass, negotiated price, weighted average

— 2017 — 2018

20 100 25 16 85 22 12 70 19 8 55 16 4 40 13 0 J F 25 10 J F J F Source: USDA

$62.01

22 19 16

M M M

A M J A M J A M J

Milk prices

J J J

$48.85 A S O N D A S O N D A S O N D

Minimum prices, class 1 milk Dollars per hundredweight

— 2017 — 2018 25 22

$16.89

19 16 13 10

$15.62 J

20 25 16 22 12 19 8 16 4 13 0 J 10

Source: USDA. Based on federal milk orders. Corn and soybean prices are for rail delivery points in Southern Minnesota. Milk prices are for Upper Midwest points.

C. Sankey

MN Valley Business • JANUARY 2019 • 23

13 10

Construction/Real Estate Residential building permits Mankato

Commercial building permits Mankato

- 2017 - 2018 (in thousands)

- 2016 - 2017 (in thousands)

$5,255

18000

$4,029

30000 25000

13500

20000 15000

9000

Source: City of Mankato

Source: City of Mankato Information based on Multiple Listing Service and may not reflect all sales

Existing home sales: Mankato region - 2017 - 2018 (in thousands)

Median home sale price: Mankato region - 2017 - 2018 (in thousands)

250

300

206

192

240

$160,900 $165,000

200 150

180

100

120

0 J

Source: Realtors Association of Southern Minnesota

Source: Realtor Association of Southern Minnesota

Interest Rates: 30-year fixed-rate mortgage

Includes single family homes attached and detached, and town homes and condos

Housing starts: Mankato/North Mankato

— 2017 — 2018

- 2017 - 2018

5.5

4.8%

5.0

4.5

4.0

3.5 3.0

$4,492

5000

$1,028

10000

4500

4.1% J

Source: Freddie Mac

10 D

Source: Cities of Mankato/North Mankato

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24 • JANUARY 2019 • MN Valley Business

Gas Prices 5

Gas prices-Mankato

— 2017 — 2018

54 43 $2.41

32 21 10 0

Gas prices-Minnesota

$2.35

$45.61

-6.1%

Ameriprise

$129.80

$121.43

-6.4%

Best Buy

$73.23

$62.26

-15.0%

Brookfield Property

$19.14

$17.41

-9.0%

Crown Cork & Seal

$46.77

$50.05

-7.0%

Fastenal

$55.13

$57.27

+3.9%

General Mills

$44.44

$40.27

-9.4%

Itron

$55.85

$52.30

-6.4%

Johnson Outdoors

$73.39

$70.66

-3.7%

$204.07

$202.20

-0.9%

Target

$87.60

$69.31

-20.8%

U.S. Bancorp

$52.93

$52.60

-0.6%

Winland

$1.06

$1.10

+3.8%

Xcel

$49.33

$52.83

+7.1%

21 M

$48.57

-11.6%

$2.40

Archer Daniels

$12.19

$2.48

Percent change

Consolidated Comm. $13.79

Dec. 5

Nov. 11

— 2017 — 2018

Stocks of local interest

0Source: GasBuddy.com J F M A

C. Sankey

MN Valley Business • JANUARY 2019 • 25

■

Minnesota Business Updates Executives of the firm said during a third quarter earnings call that it plans to redevelop at least 100 of the 125 malls in GGP’s portfolio. The company estimates that it will spend between $800 million and $1 billion each year over the next few years to reposition or add office and/or residential space to the shopping centers. The other 25 malls will be redeveloped with the aim to sell the properties, said Brian Kingston, senior managing partner and chief executive officer of Brookfield Property Group and Brookfield Property Partners. Since closing on the $14.8 billion deal to acquire GGP in August, Brookfield has moved to add residential and office space to a number of the acquired shopping malls.

■ Cambria accuses China of dumping After complaints from Minnesota’s Cambria Co., the U.S. Department of Commerce has ruled that Chinese firms illegally dumped underpriced quartz products into the United States. As a result, additional tariffs will be levied. Similar to the complaints from the U.S. steel industry — including from companies on the Iron Range — Le Sueur-based Cambria argued that China was heavily subsidizing quartz exports, allowing companies an unfair advantage over U.S. competitors, according to the Star Tribune. As the largest U.S. producer of quartz countertops, backsplashes and floor tiles, Cambria led the effort to document and report the dumping, said Marty Davis, the company’s president and CEO. Other companies’ complaints were filed under seal.

■ Spending at clinics down Health care spending at Minnesota clinics slowed sharply last year as physicians discouraged unnecessary procedures and steered patients to lower-cost sources for prescription drugs, lab tests and imaging scans. But some clinics did considerably better than others, MPR News reported. The total cost of care for privately insured patients rose just 2 percent from 2016 to 2017, at a time when some health care economists had predicted at least 5 percent growth, according to a report by Minnesota Community Measurement, a health care nonprofit.

■ Malls to become ‘mini cities’ Brookfield Property Partners plans to “future proof ” a majority of General Growth Properties’ malls by turning them into mixed-use “mini cities.” Mankato’s River Hills Mall is a former GGP property now owned by Brookfield.

Employment/Unemployment Initial unemployment claims Nine-county Mankato region Major October Industry 2017 2018 Construction Manufacturing Retail Services Total*

163 136 30 130 459

Local non-farm jobs Percent change ‘17-’18

150 163 58 170 541

139000 126000

Construction 126000 126000 Manufacturing Retail 113000 Services 113000 Total*

3,463 1,592 814 3,388 7,257

4,690 1,494 886 4,656 10,726

2100 1400

113000

700 100000

Minnesota initial unemployment claims October 2017 2018

Minnesota Local non-farm jobs (in thousands)

Percent change ‘17-’18

8000 3500 3500 6000 2800 2800 4000 2100 2100

+35.0% -6.2% +8.8% +7.9% +15.9%

Services consist of administration, educational, health care and social 100000 assistance, food andJ otherF miscellaneous services. M A M J J A S O 100000 J don’t F equal M total A because M Jsome Jcategories A not S listed. O N *Categories

26 • JANUARY 2019 • MN Valley Business

3500 2800

-8.0% +20.0% +93.0% +30.8% +17.9%

Services consist of administration, educational, health care and social assistance, food and other miscellaneous services. *Categories don’t equal total because some categories not listed.

Major Industry 139000 139000

- 2017 - 2018 133,604 132,055

Nine-county Mankato region

- 2017 - 2018 3,018 2,986

2000 1400 1400

700

700 0 J F M A M J J A S O N D 0 J F M A M J J A S O N D J F M A M J J A S O N D

200000 150000 100000 50000 0

Per-patient costs were $563 per month on average, but that varied widely based on where patients received their primary care. The cost ranged from $1,093 per month for patients at Mayo Clinic in Rochester to $398 per month for patients of the Community-University Health Care Center in Minneapolis. That spread can’t be explained by the severity of patients’ illnesses or injuries, because clinics’ costs were weighted to even out those differences.

■ 3M eyes Gen3M Don’t confuse 3M with Gen3M. One is the Maplewood-based $32-billion-a-year maker of products sold worldwide. The other is a business that seeks to represent the generation of the third millennium. 3M is worried about the name Gen3M because it doesn’t want anyone to think that one has anything to do with the other. A spokeswoman for the corporate giant said that no legal action has been taken, but that 139000 3M will be watching Gen3M’s activities.

■ Cargill’s robot roundup

3500

The Bureau of Labor Statistics reports that in 2017, 2800 cattle injured 1,360 workers. And those attacks can 126000 2100 sometimes be fatal. ■ Consolidated investigated In response, Cargill redesigned a Russian-made robot 1400 The Vermont Department of Public Service launched to herd cattle and protect workers and ranchers. 113000 an investigation into Consolidated Communications. The robots have a tough metal exterior and options for 700 The department petitioned the Public Utility customization depending on the needs of the operation. Commission last month, citing poor percentages in 100000 0 For instance, an MP3 player can relay recordings of J F M A M J J A S O N D J customer issues resolved and instillation appointments whistles to help drive animals forward, much like a met. The Burlington Free Press reports Consolidated human would do. For dairies, where cows tend to be Communications says it is taking customer concerns older, Churchill said an air blower could be installed to “very seriously.” gently tickle their haunches. The robot was tested at Consolidated Communications, based in Illinois, plants in Nebraska and Pennsylvania, NPR reported. 139000 3500 received 8000 a D rating from the Better Business Bureau in 200000 139000 3500 Robotics are becoming increasingly common in dairy November 2017 based on a pattern of consumer 2800 and feedlot operations in part because the work is alleging inferior service. 6000 150000 126000 dangerous, and finding workers to fill jobs is challenging. 2800 complaints 126000 113000

2100

2100 113000

1400 700

100000

100000 J F

J M

M J

J A

J S

1400 2000

A O

S N

O D

8000 6000

J F M A M M A M J J M A M J J

J A A

J S S

A S O N O N D O N D

150000

72,447 66,585

100000 50000 0

0 0 J F JM

F M A M AJ FA M

M MJ

J JA

J JS

A AO

S N S

O D O

N N

D D

(includes all of Blue Earth and Nicollet Counties) 200000 150000

October

100000

0 F

J M

F M A A M J

M J

J A

2017

2018

1.9% 60,843 1,150

1.7% 62,831 1,111

J S

A O

S N

O D

Unemployment rates Counties, state, nation County/area

- 2017 - 2018

200000

50000

Unemployment rate Number of non-farm jobs 50000 50000 Number of unemployed

100000

2000 0 F F

700 2000

Mankato/North Mankato Metropolitan statistical area

150000

2,910 2,796

4000

700 0 J 0 J

D 0

200000

Minnesota number of unemployed

- 2017 - 2018

Nine-county Mankato region

4000 2100

100000

Employment/Unemployment

F M A A M J

Local number of unemployed 8000 3500 6000 2800

4000 1400

Blue Earth Brown Faribault Le Sueur Martin Nicollet Sibley Waseca Watonwan Minneapolis/St. Paul Minnesota U.S.

October 2017

October 2018

1.9% 2.1% 3.0% 3.6% 2.6% 1.9% 2.6% 2.5% 2.9% 2.4% 2.4% 3.9%

1.8% 2.3% 2.0% 2.3% 2.6% 1.6% 2.0% 2.5% 2.5% 2.1% 2.2% 3.5%

Source: Minnesota Department of Employment and Economic Development C. Sankey

initial unemployment MNMinnesota Valley Business • JANUARY 2019 claims • 27

Sponsored by the Carl & Verna Schmidt Foundation

Advance pay ser vice may be reducing payday loan usage

By Ken Sweet | AP Business Writer

mericans take out roughly $50 billion in payday loans a year, each racking up hundreds of dollars in fees and interest. But a small and growing service that allows its users to take an advance on their paycheck might be giving the payday loan industry a run for its money. San Francisco-based financial technology company Even made headlines late last year when Wal-Mart, the nation’s largest private employer, announced it would start offering Even’s service as part of its employee benefits package. Along with providing tools that allow employees to track their spending and save money, Even features Instapay, which allows users to advance some of their next paycheck up to 13 days before payday. Because the Even user is tapping into his or her already accumulated hours, Even doesn’t charge the employee interest on the advance. Other companies such as FlexWage Solutions and Instant Financial offer on-demand pay, but their services are often tied to a debit card issued by the company instead of an employee’s primary bank account. Even founder Jon Schlossberg said publicly that part of Even’s mission is to put the payday loan industry out of business, claiming it exploits the country’s financially vulnerable. He shared internal usage data exclusively with The Associated Press that shows, at least preliminarily, that Even users are less likely to tap the payday loan market once they sign up for the company’s services. “You have this entire industry of financial institutions taking advantage of Americans struggling to live paycheck to paycheck, and payday lenders are really the most predatory,” Schlossberg said. Payday lenders say they provide a necessary service, with many Americans unable to come up with cash to cover an unexpected financial emergency. They also say they lend to the country’s most desperate, who are often the highest risk for not paying back the loan. But critics say the rates and fees are exorbitant and can

28 • JANUARY 2019 • MN Valley Business

trap the borrower in a cycle of debt that can last months. The Consumer Financial Protection Bureau, under the Obama administration, was trying to regulate the payday lending industry nationwide, but the bureau under the Trump administration has begun the process of reversing those regulations. Even’s data show that roughly 28 percent of its users took out a payday loan in the months before signing up for the service. Four months after signing up for Even, that figure drops to less than 20 percent. Even calculated the figure by studying usage behavior of its members from December 2017 until September 2018. Even is able to tell which users are still sing payday loans because Even users link their bank accounts to the app. The company is then able to tell what types of transactions a user is making, and whether they bear the characteristics of a payday loan transaction or name a payday lender as the other party. Schlossberg admits that Even could be missing some payday loan transactions, particularly ones where a check is used instead of a direct debit from a borrower’s account. The data is also limited by the fact that Wal-Mart, by far its biggest customer, only started using the product on December 15, 2017. Schlossberg said the company is working with academic researchers on the efficacy of Even’s Instapay product versus payday loan usage, with the goal of publishing sometime in 2019. Wal-Mart is the only company that publicly says it uses Even, but an Even spokesman says it has “more than” 10 companies signed up currently, with 400,000 active subscribers. Even does charge Walmart employees a $6 monthly fee to use its premium features, which includes Instapay. Consumer advocates, who have long targeted the payday lending industry, said they were glad to see alternatives to payday loans available but urged caution about their usage. MV

Sponsored by the Carl & Verna Schmidt Foundation

John Bogle warns index funds becoming too big

By Erin Arvedlund | The Philadelphia Inquirer

he creator of low-cost indexing warns his invention may have grown too powerful. Vanguard founder John Bogle penned an opinion piece for the Wall Street Journal offering potential guardrails against the ever-growing power of institutional index fund managers - including his own firm Vanguard, plus State Street, and BlackRock. Bogle sounds the alarm that the “share of corporate ownership by index funds will continue to grow over the next decade” and warns it’s “only a matter of time until index mutual funds cross the 50 percent mark. If that were to happen, the Big Three (Vanguard, State Street and BlackRock) might own 30 percent or more of the U.S. stock market - effective (voting) control. I do not believe that such concentration would serve the national interest.” Those are harsh words coming from the man who invented index funds and launched Vanguard’s first effort in 1976. With more than $5 trillion in assets today, and a flood of investor money into low-cost index funds, Vanguard is often the largest shareholder in S&P 500-stock index companies. Bogle quotes Professor John C. Coates of Harvard Law School who wrote that we are nearing a tipping point where the voting power will be “controlled by a small number of individuals” who can exercise “practical power over the majority of U.S. public companies.” So what is to be done? Bogle offers a few government-sponsored solutions - none of which are likely to pass the GOP-controlled senate. But two of his suggestions, including a sunshine provision and voting rights control, may get wider backing. Bogle proposes: Timely and full public disclosure by index funds of their voting policies and public documentation of each engagement with corporate managers. This would take today’s transparent and constructive governance practices several steps further.

Limiting voting power of corporate shares held by index managers. After years of public silence, or generally voting in line with corporate boards and management, Vanguard in 2017 began speaking out more on Corporate America’s proxies, social, governance, and environmental issues. Vanguard Group last year voted against three directors at Wells Fargo & Co., including chairman Stephen Sanger. Vanguard was the bank’s secondlargest shareholder. Also in 2017, Vanguard joined the 30 percent Club, a global organization that advocates for greater representation of women in boardrooms and leadership roles. The club draws its name from the initial aspiration for women to hold 30 percent of publiccompany board seats _ first in the United Kingdom and now in major markets around the world. Curiously, Vanguard also explicitly said it is examining and supporting some climate-change initiatives in Corporate America, which Vanguard categorized under “risks.” “This year, for the first time, our funds supported a number of climate-related shareholder resolutions opposed by company management. We are also discussing climate risk with company management and boards more than ever before,” Vanguard wrote in its 2017 stewardship report. In particular, the $5-trillion asset manager is pushing companies to more fully disclose risks related to climate change, no matter the industry. Vanguard voted with the majority for ExxonMobil to conduct a “2-degree” scenario climate-change analysis for the first time ever. Bogle’s warning out loud what everybody else on Wall Street is thinking - but doesn’t dare say. So once again, he’s ahead of the crowd. MV

MN Valley Business • JANUARY 2019 • 29

BUSINESS AWARDS

and

HALL of FAME

On November 13, 2018, more than 500 members of the Greater Mankato community gathered to honor some of our region’s most outstanding businesses, organizations and professionals at the Greater Mankato Business Awards & Hall of Fame. Thank you to our members, the emcees and all the attendees for a memorable event. Please join us in congratulating all of this year’s award recipients!

HALL OF FAME

LIV Aveda Salon & Spa

HALL OF FAME Massad Group

To view pictures and video from the event, as well as nominate a business, organization or professional for 2019, please visit greatermankato.com/hall-fame.

30 • JANUARY 2019 • MN Valley Business

WHY JOIN EXPOSURE

Build your Brand; grow your business. Stand out and get noticed!

YOUNG PROFESSIONAL OF THE YEAR Jaci Sprague

GREATER MANKATO GROWTH? NETWORKING TW WORKING ORKING It’s not just st WHO WHO you ou know, it’s who knows k YOU. Networking IS HAP HALLIGAN LEADERSHIP AWARD Powerful. Betty Ouren, 2003-2004

BE IN THE KNOW

LEARNING

Gain access cces to Member Exclusive Content to help grow your business.

TALENT RETENTION

MEMBER EXCLUSIVE BENEFITS

Keep your employees engaged and retained with BRIAN FAZIO EDUCATION access to ourBUSINESS member only PARTNERSHIP AWARD events and programs. Education Partners: Children’s Museum of Southern Minnesota, South Central College Business Partners: EI Microcircuits, Dotson Iron Castings, Jones Metal, Inc., Big Ideas Your investment helps us continue to build the best environment for your business and its employees.

Receive our member only emails making you the first to know the latest news.

REFERRALS

We only refer member businesses. Word of mouth and direct referrals come from beingBUSINESS a valued AWARD ENTREPRENEURIAL member of GMG. True Real Estate

SHAPE YOUR CREDIBILITY Raise your reputation by COMMUNITY belonging. Research shows

DISTINGUISHED BUSINESS AWARD Neubau Holdings, LLC

that businesses who belong to a chamber of commerce are more successful.

LEGACY AWARD

greatermankato.com/join BAMCO – McDonald’s of Mankato April 2018

For more information about the Greater Mankato Growth, Inc. awards and the recipients please visit greatermankato.com/hall-fame

MN Valley Business • JANUARY 2019 • 31 greatermankato.com/join

BRING IT HOME AWARD Minneopa State Park/Bison Preserve

HOSPITALITY AWARD Jack McGowans Farm

RENOVATION UNDER $500,000 Flask, by Mankato Independent Originals

SUSTAINABILLITY Mankato Place Mall

CREATIVE PLACEMAKING The Hub Food Park

DOWNTOWN DETAIL Twin Rivers Council for the Arts Common Grounds Parklet

For more information about the Greater Mankato Growth, Inc. awards and the recipients please visit greatermankato.com/hall-fame

32 • JANUARY 2019 • MN Valley Business

CITYART “PEOPLE’S CHOICE” AWARD “New Life” by Janesville, Waldorf, Pemberton (JWP) High School Advanced Metal Sculpture Class

“New Life” was created by a collaboration of sketches, skills and ideas by the students in the Advanced Metal Sculpture Class at JWP High School. The sculpture represents rebirth ofWORKING lifeORKING from a cold, NETWORKING TW dark and dreary world.

WHY JOIN EXPOSURE

Build your Brand; grow your business. Stand out and get noticed!

GREATER MANKATO GROWTH?

It’s not just st WHO WHO you ou know, it’s who knows k YOU. Networking IS Powerful.

BE IN THE KNOW

LEARNING

Gain access cces to Member Exclusive Content to help grow your business.

TALENT RETENTION

MEMBER EXCLUSIVE BENEFITS

Keep your employees engaged and retained with access to our member only events and programs.

Receive our member only emails making you the first to know the latest news.

REFERRALS We only refer member businesses. Word of mouth and direct referrals come from being a valued member of GMG.

SHAPE YOUR

CREDIBILITY SEAMED IN SUCCESS GROWING IN THE GREENSEAM Raise your reputation by Saez and Todd Golly B.E.S.T. of Waseca County-Waseca Vision 2030 Aker - Orlando COMMUNITY belonging. Research shows Your investment helps us that businesses who belong continue to build the best to a chamber of commerce environment for your PRESENTING SPONSOR: more successful. business and its employees. are

EVENT SPONSORS:

DINNER SPONSOR:

TABLE SPONSORS:

VIDEO SPONSOR:

greatermankato.com/join April 2018

For more information about the Greater Mankato Growth, Inc. awards and the recipients please visit greatermankato.com/hall-fame

MN Valley Business • JANUARY 2019 • 33 greatermankato.com/join

34 • JANUARY 2019 • MN Valley Business

MORE OPPORTUNITIES Opportunity comes packaged in accessible, quality-oflife ways in Mankato: dazzling arts and entertainment, year-round recreation, great outdoors, top-notch schools and promising career paths. It’s where “you” time outstrips drive time. In Mankato, opportunity not only knocks – it lives.

WHY JOIN L aunched in November of 2017, this go-to website is a tool for talent attraction and retention.EXPOSURE Build your Brand; Moremankato.com offers grow your business. the added benefit of Stand out and get promoting our region innoticed! a new and immersive way. Take the 360° virtual tours today!

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cultural scene provides an inspired quality of life. Keep your employees In Mankato, opportunity not only lives – it inspires. engaged and retained with

We only refer member businesses. Word of mouth and direct referrals come from being a valued member of GMG.

MEMBER Take in the CityArt Walking Sculpture Tour, visit art galleries, the children’s museum, theEXCLUSIVE ballet, a riverfront TALENT concert or the Mankato Symphony Orchestra; enjoy BENEFITS acousticRETENTION guitar at a local coffeehouse. Mankato’s access to our member only events and programs.

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SHAPE YOUR CREDIBILITY MORE GROWTH Raise your reputation by COMMUNITY belonging. Research shows

As us the youngest, fastest-growing regional urban center Your investment helps that businesses who belong on the move. As a inbest Minnesota, Mankato is a market continue to build the to a chamber of commerce hub for health care, education, retail, agriculture and environment for your are more successful. industry, with employers offering competitive career business and its employees. opportunities, Mankato simply offers more. In Mankato, opportunity not only lives – it enriches.

MORE FUN Drop a canoe to paddle through a scenic river valley, hit the slopes or bike miles of paved trails. Yearround activities abound, from swimming to skating, snowshoeing to waterskiing, walking to marathon running; collegiate hockey to amateur baseball. In Mankato, opportunity not only lives – it entertains.

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MN Valley Business • JANUARY 2019 • 35 greatermankato.com/join

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VOLUNTEER INCOME TAX ASSISTANCE PROGRAM Entering Entering its its fourth fourth year, year, Minnesota Minnesota State State University, University, Mankato’s Mankato’s free free tax tax preparapreparation tion service, service, through through the the IRS IRS Volunteer Volunteer Income Tax Assistance (VITA) Income Tax Assistance (VITA) program, program, is is helping helping the the Minnesota Minnesota State State Mankato Mankato community community with with their their tax tax preparation preparation needs. needs. Offering Offering free free tax tax help help to to people people who who [earn less than] $54,000, [earn less than] $54,000, IRS-certified IRS-certified volunteers volunteers provide provide free free basic basic income income tax tax return return preparation preparation with with electronic electronic filing filing to to qualified qualified individuals. individuals. Our Our VITA VITA program serves members of the Minprogram serves members of the Minnesota nesota State State Mankato Mankato community community by by preparing Federal and preparing Federal and State State of of Minnesota Minnesota income income tax tax returns. returns. Additionally, Additionally, the the site site prepares prepares State State of of Minnesota Minnesota Homestead Homestead Credit Credit and and Renter’s Renter’s credit credit returns. returns. This This program helps both residents program helps both residents and and nonresnonresidents idents of of the the United United States. States. ORIGINS ORIGINS Minnesota State Minnesota State Mankato’s Mankato’s VITA VITA proprogram gram was was established established during during the the spring spring of of 2015. 2015. The The program program has has successful successful as Dr. Brennen, Accounting as Dr. Brennen, Accounting & & Business Business Law Department Chair, has shared Law Department Chair, has shared his his skills skills and and talent talent to to mentor mentor students. students. The The VITA VITA volunteers volunteers include include members members of of Nu Nu Chi Chapter of Beta Alpha Psi and graduChi Chapter of Beta Alpha Psi and graduate ate assistants assistants who who recently recently completed completed the the Masters of Accounting program. Masters of Accounting program. Dr. Dr. Paul Paul Brennan Brennan states, states, ““ the the instrumental instrumental factors factors

in in establishing establishing the the Minnesota Minnesota State State Mankato VITA program was Professor Mankato VITA program was Professor Kris Kris Rosacker Rosacker who who joined joined our our faculty faculty as the second tax professor. as the second tax professor. The The gradgraduate assistants, the baseline of volunuate assistants, the baseline of volunteers teers from from our our accounting accounting fraternity, fraternity, and the participating and the participating professors professors proprovided us with the necessary staffing vided us with the necessary staffing to to launch launch and and maintain maintain this this program.” program.” WHY WHY VITA? VITA? The VITA experience The VITA experience provides provides our our volunteer volunteer students students with with invaluable invaluable hands-on, hands-on, real-world real-world experience. experience. By preparing tax returns, By preparing tax returns, volunteers volunteers increase increase their their knowledge knowledge of of tax tax law. law. Furthermore, interacting with Furthermore, interacting with clients clients allows allows student student volunteers volunteers to to enhance enhance their their customer customer service service skills. skills. The The VITA VITA experience experience also also contributes contributes to to student student camaraderie camaraderie within within the the context context of of professional professional volunteer volunteer service. service.

QUALIFICATIONS QUALIFICATIONS

*Must be part of the University Community *Must be part of the University Community

Individual Individual income income $35,000 $35,000 or or less less Family Family income income $55,000 $55,000 or or less less Self-employed Self-employed income income $55,000 $55,000 or or less less

MN Valley Business • JANUARY 2019 • 37

SURGICAL EXPERTISE IN MANKATO.

From colon cancer to hernias to gallbladder dysfunction, our team will provide exactly the care you need, from diagnosis through rehabilitation, right here in Mankato.

Call 507-594-4700 to schedule an appointment. mayoclinichealthsystem.org MN Valley Business • JANUARY 2019 • 38