Mn valley nov17 by Free Press Media

The Definitive Business Journal for the Greater Minnesota River Valley November 2017

Andy Wilke, manager of River Hills Mall in Mankato. Photo by Pat Chirstman

Retail revolution Malls, downtowns adapt to new trends Also in this issue • SATORI VIOLET BELLY DANCING STUDIO • JR’S BARN WEDDING AND EVENT VENUE • ATTORNEY CAL JOHNS IS PASSING THE BATON

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TAKING CHARGE OF MY CASH FLOW THROUGH TAX PLANNING On the road to financial success, tax planning should be one of the main highways, not just a quick detour. Tax planning can save you money, maximize cash flow and get you on the fast track to achieving your goals. Here’s how:

More Money Tax planning can be used as a way to postpone or re-direct taxable events. By employing effective tax planning strategies, there will be more money to save and invest, or more money to spend. Tax deductions and tax credits can be created, accelerated or increased by the proper utilization of applicable tax breaks.

More Deductions It appears the traditional tax planning strategy of accelerating deductions into 2017 and deferring income until 2018 will be prudent this year. This is true whether or not tax reform legislation is passed before the end of 2017. If in fact legislation is passed and most people’s tax rates go down, the deductions will be worth more this year than next.

More Long-Term Strategy Despite the uncertainty surrounding the possibility for tax reform and legislative changes, tax planning is more important than ever. Tax planning should be part of a broad multi-year analysis of business operations, cash flow, budgets/projections, and industry outlooks, which should also include planning for potential business disruptions, to ensure appropriate tax strategies are implemented to support long-term goals. Generally, tax planning is slated on the “to-do list” for November or December but starting earlier maximizes your chances to save time and money. Tax planning is an important tool for business owners to use when developing business plans and reviewing financial results, but before making any final financial decisions. Remember: a successful journey begins with a goal and a plan!

By: Dan Gahler, Partner Dan Gahler is a partner at Eide Bailly who helps businesses and people find new opportunities for savings through tax planning. He’s passionate about helping closely held businesses and people make the right decisions for their own circumstances.

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Business plans can also help organize necessary aspects such as hiring employees and training and retention programs. The plan should also include one of the most

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F E A T U R E S November 2017 • Volume 10, Issue 2

The retail sector is being transformed by online shopping habits and rapid fashion changes with downtown shopping districts and malls evolving to meet the change.

Calvin Johnson has had a long, notable career as a criminal defense attorney in Mankato and is stepping back and turning new cases over to his protégé Jim Kuettner.

Violet Kind equates her new style of belly dancing to a language. As the owner of Satori Violet, she’s been teaching variations of belly dance in Mankato since 2011.

Joel and Renae Groskreutz are big on hospitality which led to a massive renovation project on their farm that resulted in JR’s Barn, a venue for weddings and events.

MN Valley Business • NOVEMBER 2017 • 3

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NOVEMBER 2017 • VOLUME 10, ISSUE 2 PUBLISHER Steve Jameson EXECUTIVE EDITOR Joe Spear ASSOCIATE EDITOR Tim Krohn CONTRIBUTING Tim Krohn WRITERS Kent Thiesse Amanda Dyslin Dan Greenwood Nell Musolf PHOTOGRAPHERS Pat Christman Jackson Forderer COVER PHOTO Pat Christman PAGE DESIGNER Christina Sankey ADVERTISING Phil Seibel MANAGER ADVERTISING Jordan Greer-Friesz Sales 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.........................8 ■ Business and Industry trends..........24 ■ Retail trends.....................................25 ■ Agriculture Outlook..........................26 ■ Agribusiness trends..........................27 ■ Construction, real estate trends.....28 ■ Gas trends........................................29 ■ Stocks...............................................29 ■ Minnesota Business updates............30 ■ Job trends.........................................30 ■ Schmidt Foundation.........................32 ■ Greater Mankato Growth..................34 ■ Greater Mankato Growth Member Activities ............................36

From the editor

By Joe Spear

Retail disruptions Only change is guaranteed

he lessons we learned in our beginning economics classes in college usually involved examples of buying bread and potatoes. They were easy commodities for students to understand when learning the basics of supply and demand and graphing them along the price and quantity axes. And when it came to understanding the “utility” of a good, beer was used as an example, appropriately enough. By the time we finished Economics 101 we could graph the elasticity of demand for cheap beer versus good beer, and if we really tried, we could graph the end of the world, where there was not enough supply to meet demand. But the recent awarding of the Nobel Prize in economics went to guy who argued numbers cannot explain everything in economic behavior. In fact, Richard Thaler, of the University of Chicago, argued people behaved in “irrational ways” thereby exploding the theor y in mainstream economics and its assumption of rational behavior. But a brilliant piece of Thaler’s work showed that while people behaved irrationally, they did so in predictable ways, so their reaction to economic events could still be partially predicted and used in models. Psychology was more important, it seems, in Thaler’s ideas, than statistical correlation and cause and effect rationality. He also gained a bit of notoriety before winning the prize, making an appearance in the movie “The Big Short” to explain, clearly and concisely, the reasons for the 2008 financial meltdown. When asked what he was going to do with his $1 million Nobel Prize award, he said he would “spend it as irrationally as

4 • NOVEMBER 2017 • MN Valley Business

possible.” He sounds like a real cut-up. Reading this month’s cover story on disruption in the retail trade industr y, suggests the “hidden truths” of economic psychology might be playing out here as well. The big box retailer was the epitome of lessons we learned in Economics 101. Buy goods in bulk, thereby getting them cheaply, and resell them cheaply, thereby lowering their price and increasing the quantity demanded. But they only recently seemed to have learn the psychological economic argument that some people actually don’t like the physical act of going out to a store to buy something when they can buy it online, in the comfort of their own home or car, or, yes, even in the comfort of their office. So, like other industries, the big boxers went online to compete with the Amazons of the world but also hung on to their bricks and mortar and the costs that come with that. Of course, this has a trickledown effect on businesses that rent bricks and mortar space like malls. So now malls have to come up with new tenants and new business plans. “Fitness centers, grocer y stores, condominiums and apartments – those are all things we’re looking at as an industry and here in Mankato as retail trends change,” says Andy Wilke, manager of the River Hills Mall. But even the brick and mortar retailers themselves must change. Fast fashion and quick serve food are the new modes of operation. Wilke notes the new H & M store at River Hills Mall changes its fashion lines much more quickly than the traditional seasonal changes of traditional clothing retailers.

Young people want the new fashions quickly. “We see tenants like H&M who are able to bring their products from conception to production in a much shorter time. It can be just weeks instead of months from conception to being on the shelf,” Wilke says. At the same time, we hear from merchants in New Ulm’s downtown where small retailers have survived and thrived for years with people who do have a penchant for the physical experience of shopping. “I think it’s about relationships and partnerships,” says New Ulm Chamber President/CEO Audra Shaneman. It seems both strategies could work, and demographics might play a role, with older customers still making the “psychological economic decision” to shop locally regardless of “rational expectations” to buy cheaply. Joe Spear is executive editor of Minnesota Valley Business. Contact him at jspear@mankatofreepress.com or 344-6382. Follow on Twitter @jfspear.

Local Business People/ Company News

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Kraus honored

The American Institute of Family Law Attorneys has recognized the performance of Waseca attorney Thomas J. Kraus as a 2017 10 Best Family Law Attorney for Client Satisfaction. The American Institute of Family Law Attorneys is a thirdparty attorney rating organization that publishes an annual list of the Top 10 Family Law Attorneys in each state. One of the most significant aspects of the selection process involves attorneys’ relationships and reputation among his or her clients.

Banking. Pioneer Bank was recognized with the Institute’s Overall Excellence Banky Award for exemplary performance in five areas of banking – philanthropy, customer ser vice, thought leadership, workplace culture and financial literacy education. Pioneer Bank was also named a finalist for the 2017 Extraordinary Banking Award. This is the second consecutive year the bank has been named a national finalist. Pioneer Bank is a $400 million community bank with locations in Mankato, North Mankato, St. James, Mapleton, Madelia, Lewisville and Lake Crystal.

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Neutral Path makes acquisition

Mankato-based Neutral Path Communications, a Midwest provider of fiber optic transport facilities, is acquiring Infinity Fiber. The Infinity fiber network runs from Indianapolis to South Bend, before it jogs west to Chicago. In South Bend, the network provides connectivity through Global Access Point’s Union Station Technology Center, which offers access to world-class tenants. Union Station has grown to one of the largest in the region and is a top 40 carrier hotel nationally. This expansion to the east enables Neutral Path to extend the reach of its carrier neutral network from Denver to Omaha to Minneapolis and now Chicago, South Bend and Indianapolis including several key markets along the route. The transaction increases Neutral Path’s total fiber route by over 300 miles, bringing its total to over 2,300 route miles and 150,000 fiber miles across eight states.

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accounting, and financial services firm located in Madelia, is merging with the tax and accounting firm of S.E. Olson & Associates located in St. James. The merger will take effect on Jan. 1, 2018. The firm will operate under the name of Kelsey Osborne and will offer services from both of their existing Madelia and St. James locations.

achieving top financial performance in the company’s previous fiscal year. Allore joins a group of 32 general managers selected from the more than 700 Red Lobster restaurants in North America. ■■■

Four join True Realty

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Red Lobster GM honored

Red Lobster presented Eric Allore, general manager of the Mankato Red Lobster, with the company’s top honor – the Lighthouse Club Award. This is the second time he has won the award, which has been an integral part of the company’s culture for over 20 years. Award recipients are recognized for demonstrating outstanding leadership and living Red Lobster’s core values of Respect, Integrity, Genuine Caring, Hospitality, Teamwork, Excellence and Fun - while also

Tamara Mulligan

Tr ue Real Estate has added Tamara Mulligan, M i c h a e l Mulligan, Lauren Swantko and Tyler Weise as Realtors in their Mankato location. S w a n t k o specializes in the Rochester and Mankato markets. She is a Rochester native and M a n k a t o resident for five

years. Prior to joining True Real Estate, Swantko worked as a licensed transaction coordinator for Keller Williams Realty in Minneapolis. Weise is a Lauren Swantko Mankato native who has spent many years in the customer service business. T a m a r a Mulligan has been in the real estate industr y for 27 years. She has specialized Tyler Weise in more than 1,000 exchanges, multi-family, commercial and residential transactions. Michael Mulligan grew up around the real estate business.

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MN Valley Business • NOVEMBER 2017 • 7

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Business Commentary

By Doug Loon

Tackling workforce shortage on multiple fronts T

he new school year has started, placing renewed attention by the business community to attracting and retaining qualified employees. We view Minnesota’s talented workforce as the secret sauce that drives the economy. It’s at the foundation of making Minnesota ready for the future – ready for change and ready to grow. Every conversation with employers of all types and sizes includes their urgent concerns about workforce needs. It’s the No. 1 priority shared during our Grow Minnesota! visits, the distinctive economic development program carried out by the Minnesota Chamber. For the past year, the percentage of businesses adding jobs has remained steady, but 75 percent of businesses statewide reported difficulty finding workers. Fixing the problem demands new approaches. The Minnesota Chamber is doing as much via private-sector initiatives as we’re doing via public policy. Our legislative efforts focus on public education system reforms to help make sure kids are prepared for next steps in their education or the world of work. Our business initiatives focus on direct engagement among employers, high school and college students, and training systems. Trainers must better understand the needs and shape programs based on what’s happening in the local

economy. Finding solutions requires persistent conversations among all the stakeholders. Once-a-year “job summits” won’t produce long-lasting solutions. What’s needed and what the Minnesota Chamber is doing is implementing a strategy that’s equal parts public policy and private-sector initiative.

“Public policy successes alone will not solve our worker shortages. Employers must step to the plate.” Among our 2017 legislative successes are reforms to ensure high school graduates are ready for the workforce. Changes to K-12 teacher licensure and teacher layoff rules will strengthen the goal of placing effective instructors in all classrooms. In addition, scholarships are now available for students attending Minnesota State two-year programs of high employment need.

8 • NOVEMBER 2017 • MN Valley Business

Immigration reform leads our federal efforts. The continued strength of our economy depends on attracting and integrating immigrants into the workforce.

RealTime Talent

Public policy successes alone will not solve our worker shortages. Employers must step to the plate. On that front, we are involved in a variety of initiatives. The Minnesota Chamber is a partner of RealTime Talent, which provides real-time market data for employers and trainers. While this answers the “demand side” of the workforce equation, our newly MN Job Match addresses challenges on the “supply side.” Job Match uses statistically validated questions to connect candidates and employers based on skills, interests and job requirements rather than relying on keyword counts in a resume. We are challenging employers to change their hiring strategies and cast a broader net. “Hidden Talent Pools,” an event we hosted this spring, explored available workers that employers have overlooked or underused – for example, individuals with physical and mental disabilities or those with criminal convictions. We’ll make limited headway in supplying employers with qualified employees absent new collaborations. One of our most

We are challenging employers to change their hiring strategies and cast a broader net. ambitious efforts is our Business Education Networks, a proactive approach to better synchronize workforce skills with the needs of the changing economy. Launched in 2015 with the Winona Area Chamber of Commerce, this effort puts employers at the center of workforce development for manufacturing. Business leaders in Winona, home to more than 100 manufacturers, are hosting career expos; participating in CEOs in the classroom; funding teachers and students in the workplace; and guiding selected high school juniors to take college-level accredited courses with summertime internships after their first year and college placement or career opportunities after they graduate. We’ve expanded Business Education Networks to the hospitality industry in Brainerd and the manufacturing and healthcare industries in Waconia. We hope to replicate the program in other communities where we can identify local partners. The strategy behind the Minnesota Chamber’s efforts is to better mobilize our state’s employers – the players with the most at stake in ensuring Minnesota’s workforce is well prepared. Building these networks will help narrow the skills gap, plus encourage students from all backgrounds to complete education in areas where they will have opportunity for meaningful employment. That’s a win-win for everyone.

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MN Valley Business • NOVEMBER 2017 • 9

Andy Wilke has managed River Hills Mall for 18 months after managing malls in Iowa and Georgia.

Retail realigned Landscape changing rapidly By Tim Krohn | Photos by Pat Christman

n New Ulm, a line of new big-box retailers and strip malls has prospered on the west edge of the community after stores trickled out of the downtown years ago. But unlike many communities, New Ulm has been able to create a downtown bustling with unique shops and old-line favorites such as Herberger’s. “I think it’s about relationships and partnerships,” said New Ulm Chamber President/CEO Audra Shaneman. She said small stores, like the town’s three quilt

shops, work together on promoting themselves and the downtown as a destination point. Andy Wilke, manager of River Hills Mall in Mankato, is dealing with a sea change among traditional malls. Wilke said with the decline of some big chains that filled big anchor stores, the mall industry is looking beyond its traditional role. “Fitness centers, grocery stores, condominiums and apartments – those are all things we’re looking at as an industry and here in Mankato as retail trends

Cover Story

10 • NOVEMBER 2017 • MN Valley Business

Employees at H&M in River Hills mall dance outside the store during the store’s recent grand opening. change.”

River Hills

Many malls have been ravaged in recent years as online shopping grows and retail chains such as Sears and Toys R Us shutter stores or go out of business. River Hills Mall is in much better shape than most. Although it’s sitting with a large vacant building where Sears was, the rest of the mall remains almost fully leased and the mall is finishing a large new store for Pet Smart on the mall’s property. River Hills benefits from a few things, including being in a large regional center that draws people from a wide area of southern Minnesota and northern Iowa. And it is owned and managed by General Growth Properties, one of the largest and most respected mall managers in the country. Wilke has managed the mall for 18 months after managing malls for General Growth in Iowa and Georgia. He said that beyond the online shopping phenomena, one of the biggest changes in retail has been

“fast fashion” in which stores have to react quickly to changing wants. “We see tenants like H&M who are able to bring their products from conception to production in a much shorter time. It can be just weeks instead of months from conception to being on the shelf.” Retailers used to develop a suite of fashions for each season, often long ahead of time. “That’s changed so much, especially for younger shoppers. These social media influencers — celebrities, musicians and others who are popular on social media — are driving those fashion trends and styles.” Wilke sees a similar transformation in the food industry with a host of new quickserve restaurants. “It’s not fast food, but places like Panera and Which Wich and with pizza places, they’re like Chipotle where you start with your base, add your topping and get it on your table fast.” River Hills doesn’t have much room in its current food court to take more restaurants – eight of

its nine spots are filled. But he said they see opportunities in drawing quickserve restaurants to parcels the mall owns outside the main mall. Wilke said looking at different business models for malls is necessary moving forward as the retail landscape continues to be changed and disrupted. He said bringing in a mix of new kinds of tenants and entertainment, rather than strictly retail and food, will keep people coming to malls. “As the industry changes, we’re changing our models. In the past some tenants, particularly anchors, maybe wouldn’t have been on board with that. They wanted more anchor stores. But we’ve told them this is what we need to do to maintain traffic, and they’re on board with it.” Beyond looking for the next tenant, River Hills has in recent years been working on making their operation more environmentally friendly and efficient. “Our mall, not including the parking lot lights, is about 96

MN Valley Business • NOVEMBER 2017 • 11

River Hills Mall has retrofitted about 98 percent of its indoor lighting with efficient LED bulbs, including on its carousel. percent LED bulbs now. We have high-efficiency HVAC systems and a state-of-the-art energy management system to run our lights and HVAC units. We’ve done a lot on energy conservation.” He said the parking lot lights had earlier been retrofitted with 775-watt bulbs instead of 1000-watt bulbs. LED bulbs would be in the 200-watt range. “Right now the rates we pay (for electricity) haven’t crept up to that level to justify the expense of putting in LEDs, but at some point it will.” As the holiday shopping season approaches, the mall and its tenants are readying for their biggest time of year. The mall will allow tenants to open at 6 p.m. Thanksgiving Day, then close at midnight and open again at 6 a.m. Black Friday. Wilke said about 50-70 percent of their tenants plan to be open Thanksgiving Day. He said that while Black Friday remains a big deal, the holiday shopping season has changed. “There are so many hours of opportunity to shop that there’s not that incentive to be the first one open on Black Friday. Retailers have gone to spreading out their sales over the course of the weekend.”

12 • NOVEMBER 2017 • MN Valley Business

New Ulm resilient

Like virtually every community, New Ulm’s downtown is not the shopping destination it once was when a variety of pharmacies, clothing, shoe, hardware and grocer y stores were located there. But while many businesses left the downtown and a strip of bigbox and other retailers built on the west edge of the city, New Ulm’s downtown remains particularly vibrant. The Chamber has a retail specialist who works on retaining and recruiting businesses to town. “We’re a perfect target for small shops. We have just a couple of spaces downtown still available,” Shaneman said. She said New Ulm is a shopping destination for locals and for people from the region, particularly those living to the west of the city. “We benefit from having Mankato as close as it is, but we want people to shop local and use New Ulm when they can.” Downtown shops benefit from a strong tourism draw in the town rich in German heritage. And stores, such as the three quilt shops, join together to host bus tours of the town and their shops. “The downtown is working together and carving out that niche. We still have strong anchors, the Herberger’s store

Sharon Hubly (center) makes a few final adjustments to an artificial bouquet of flowers being purchased by Jean Anderson (left) as Marilyn Reinhart (right) rings up the purchase at Inspired in New Ulm. Photo by Jackson Forderer Bottom right New Ulm’s downtown remains a big draw for holiday shoppers. Photo by Kyle Krenz/New Ulm Chamber

Audra Shaneman, New Ulm Chamber and Inspired. We’ve added some new boutiques.” The Inspired store is the location of the former Lambrecht’s, which had been a longtime draw in the downtown. The former owners retired and

transitioned the store to new owners. “Lambrecht’s did a really good job of succession planning, and they made that change smoothly and that was a real stabilizing factor for downtown. When they said they were going to retire, there was concern but it was a great succession.” Shaneman said the city also has paid attention to the downtown through programs like a loan fund to help building owners maintain buildings.

Despite the success of many downtown, she said the big shift of retailing to the west edge of town has shook things up. “Our retailers hang in there. Retail is always changing and I don’t think anyone knows yet how that’s going to affect things long term. “Downtown won’t be the same, but we need to look at what we have and need. Retail is constantly changing and it drives people crazy, but that’s the way it is.” MV

MN Valley Business • NOVEMBER 2017 • 13

Calvin Johnson, left, is pulling back after a long career and is turning new clients over to Jim Kuettner, a new criminal defense attorney who came to Mankato in March.

Passing the baton

Cal Johnson turning clients over to Kuettner By Amanda Dyslin Photos by Pat Christman

ome criminal defense attorneys are showboats. You’ve got to make a jury truly believe, after all – through orator y, through passion, through conviction – that your client is not guilty. Calvin Johnson is more reticent, soft spoken, but no less convincing. He looks you in the eyes; he examines you. He speaks thoughtfully and then gauges your response. He leans forward, into your space, when he’s saying something of import, something he wants you to remember.

“Here’s how I see it. When you go into that courtroom, you own that courtroom. You’re on super alert. You’re paying attention to everything,” said Johnson, who has been a southern Minnesota criminal defense attorney for 37 years. “I really want to be polite. I want to be truthful. But I want you to understand, I’m not going to take no for an answer.” Since May of 1980, only three days after being sworn in as an attorney, Johnson has made a name for himself in the Mankato area. He started the first full-time public

Cover Spotlight

14 • NOVEMBER 2017 • MN Valley Business

Jim Kuettner has set up Kuettner Legal in the office of Cal Johnson, who is retiring. defender office in outstate Minnesota. He served as the Chief Public Defender of the 15-county Fifth District, the youngest in the state. And for many years he’s been in private practice, handling numerous cases from DWI to fraud to murder. But eventually, the time to retire comes for us all, and Johnson has started the process. Calvin P. Johnson Law Firm still exists but now mostly to service previous clients. Johnson is referring all new clients to Jim Kuettner, a new criminal defense attorney who arrived in Mankato in March. Kuettner Legal has set up shop in Johnson’s office building on North Broad Street and has begun inheriting the business Johnson created. “Any good attorney needs a good mentor, and he’s seen everything. Other folks in the community will joke that he’s seen it three times,” Kuettner said. “I’m excited to be here.”

A landmark case

Originally from Wisconsin, Johnson attended law school at Hamline University in St. Paul and ended up in Mankato because attorney John Frentz had an extra office available. Johnson served as a public defender and became chief of the Fifth District just three years later. Criminal defense was all he ever wanted to practice. “Because it’s the greatest law ever to practice. You have the experience of the courtroom. You get to learn about juries and stand up in front of your fellow human beings and convince them of your argument,” Johnson said. When Johnson started out, there were no full-time public defender offices in outstate Minnesota. He started the first one in 1990. Most of the notable moments in Johnson’s career happened in the courtroom. Johnson’s name and that of his client, Herbert Saunders, became international news in the 1990s after Saunders, a dairy farmer in Watonwan County, was tried on a gross

misdemeanor charge of practicing medicine without a license. Saunders believed ill people (with cancer, AIDS, rheumatism, emphysema, etc.) could be cured by drinking the colostrum (first milk after giving birth) of a cow that had been injected with the ill person’s blood. According to a Minnesota Court of Appeals ruling filed in 1996, Saunders said the injected cow “would produce milk with specific immune properties that would heal or at least improve the health of the ill person.” He was charging thousands of dollars for the service. Saunders’ practice rose to the surface of public discourse when Rep. Berkley Bedell of Iowa reported that the whey he drank milk from Saunders it cured him of arthritis brought on by Lyme disease. In addition to the gross misdemeanor that the jury had to consider, Saunders was charged with two felony counts of theft by swindle and two misdemeanor counts of mistreatment of animals, all of which Johnson successfully

MN Valley Business • NOVEMBER 2017 • 15

argued that the court dismiss. On the gross misdemeanor of practicing medicine without a license, one holdout juror clung to a not guilty verdict, resulting in a hung jury. When tried a second time, the jury deadlocked again and Daniel Birkholz, Watonwan County Attorney, eventually dismissed the charges. Working almost on a volunteer basis for six years with only two legal assistants, Johnson deeply believed in the merits of his arguments. He believed and still believes in the right of people to choose their own medical treatments, whether they be conventional or not. “The more I investigated, I realized what he was doing was really the future of medicine,” said Johnson, who on a personal level connected with the case because his first wife developed cancer and sought alternative treatments for her disease. The case would cause the

Minnesota legislature to change the law, expanding the freedom of medical choice in Minnesota. “It was incredible. We’ve had a growth industry in alternative health care,” Johnson said, leaning in as he spoke. “That law is a beacon of light for the rest of the world today.”

Advocate for the accused

As is true of any criminal attorney, the bulk of the cases Johnson has worked on haven’t been as groundbreaking as the milk farmer case. Calvin P. Johnson Law Firm’s bread and butter is DWI/DUI. He’s had his share of thefts and assaults, too. His goal with ever y case, however, is to figure out why the accused landed in his office and do what he can to better his or her situation. “Here’s how I look at it. Why are they here? Maybe, just maybe, they’re hitting rock bottom, and

16 • NOVEMBER 2017 • MN Valley Business

this is what it looks like,” he said. “I challenge them to go beyond just the present. I ask them to look at whether they want to do anything to change, to stop an addiction, for example. Many of the people who come into our office have an addiction.” Johnson isn’t quick to speak of his clients by name, wanting to respect their privacy. But one such high-profile client was former Mankato Mayor John Brady, who was involved in a drunken-driving incident and brief pursuit by Golden Valley police in 2010. Brady pleaded guilty to fourth-degree DWI and an open bottle charge, which resulted in about $500 in fines and a small amount of community service. “He was very forthright. … That was an easy one,” Johnson said. “It’s about the individual. I’m looking to see if they want to do anything to change and make their life better. He did.”

Johnson said he has found that judges feel the same way when it comes to wanting the best for the accused. “If they genuinely want to change their life, the judge will make sure they succeed,” Johnson said, adding that the overall goal in the legal system is to do everything to prevent clients from coming back through. The same kind of criteria goes into choosing clients, Johnson said. One might think that a private attorney would never turn down business, but that’s not true for Johnson (nor now for Kuettner). “I don’t need to engage in a power struggle, or if they want me to be the meanest SOB there is,” Johnson said. “I find I get a lot more results with logic and discussion. … The difference between love and power is that love gives and power takes. I look at those two elements, and I steer toward love.” Looking back on his career, the outcomes – the wins, losses, the regrets – it’s a lot more muddied than one might think. A guilty verdict isn’t always a loss, and vice versa. “We were having a situation where police were using tasers a lot. There were problems all over the country, and we had several cases with tasing,” Johnson said. “I litigated at pretrial whether or not it was considered excessive force, and I lost – every single one. But then, you know what? The tasing stopped.” Although unprovable, Johnson believes the tasing incidents decreased because police didn’t want to go through the litigation process. “I’d call that a win,” he said. Saunders, the dairy farmer, technically was never acquitted by a jury. And yet, the law in the state of Minnesota changed because of the case. And sometimes clients will be found guilty of something Johnson doesn’t believe is in accordance with the law, but the judge will ensure he or she avoids jail time. Is that a win or a loss, Johnson wondered. “The law is complicated,” he said. It’s the uniform application of

the law that Johnson has worked the hardest at arguing over the years, and it’s something that always stays relevant, he said. Now, for example, marijuana “wax” (highly concentrated THC in a thick oil substance) has begun to creep up in cases. Johnson said there has been an inconsistent application of the law with regard to whether or not the wax is considered a small amount or felony amount of the drug, due to its concentrated form. It’s the resurgence of this kind of debate that keeps him from walking out on the legal field completely. Not just yet, anyway.

New blood

Johnson really enjoys looking at case files and throwing some advice at Kuettner, who is all settled into the downtown office. He knows the clients coming in are in good hands. “Jim has an excellent legal mind for our cases,” said Johnson, who has been busy writing Uncle Cal’s Trial Notebook, a national online criminal defense lawyer publication, and is planning to write “the next great American novel.” “I’m not taking on additional clients. I’m kind of in the shadows more.” Kuettner has risen to the challenge of filling such a void. After an initial career as a bartender and bar manager, Kuettner, 38, graduated from law school from William Mitchell College of Law (now Mitchell Hamline) in 2015 and held some clerking positions before coming to Mankato this year. “As a lawyer, I really connect. I look at my clients like campsites. I want to leave them in better shape than I found them,” Kuettner said. “I want to look at the long-term. I don’t want to see

the same ones over and over and over again because then I don’t think I’ve done my job.” Like Johnson, he concentrates on what resulted in his clients landing in his office and what he can do to help them move forward in life. Kuettner also realizes that, as a private attorney, his clients often have higher expectations of his performance than they perhaps would have of an overworked public defender. “We have to perform if we’re going to stay as busy as public defenders,” Kuettner said. That’s one of the reasons moving into Johnson’s building and taking his referrals was so appealing, Kuettner said. Johnson has an established practice in the community, and with him still working out of the office part time, Johnson is there to answer Kuettner’s “smart and dumb questions” as he grows in his experience. Kuettner also sounds a lot like Johnson when talking about why criminal defense was his choice in the legal field. “I love criminal defense,” he said. “There are very few other areas of the law that touch on so many Constitutional rights, rights that date back from centuries ago to England, all the way to the Magna Carta if you go back far enough.” Kuettner also sees his clients the same way Johnson does – as people who need help. “I really like helping my clients – helping them out of that situation when they’ve hit bottom,” Kuettner said. MV

MN Valley Business • NOVEMBER 2017 • 17

Violet Kind (right), owner of Satori Violet belly dancing studio, gives instruction to Talia Larson during a class at the dance studio.

Moving to the Music Kind developed own style of belly dancing

By Dan Greenwood | Photos by Jackson Forderer

iolet Kind equates her new style of belly dancing to a language. As the owner of Satori Violet, she’s been teaching variations of belly dance in Mankato since 2011. In 2015 she trademarked her own belly dance style called Fly Fusion. It’s derived from previous styles formed since the 1960s in the United States. While belly dancing is often associated with the Middle East, she says the dance styles popularized in the United States are a combination of dances from Europe, Asia and Africa. “You learn how to dance and communicate nonverbally,” explains Kind. People learn different combinations and the cues and they all dance together. While it looks choreographed, it isn’t. This summer she was invited to teach Fly Fusion to students in Ireland and England, the first time the style has been exposed to an international audience. Kind was introduced to belly dancing by a friend when she was a teenager. She found she loved to move to the music using muscles she didn’t even know she had. “I loved the challenge of the isolations because

you’re forced to go internal and think about where is this crazy stomach isolation coming from or where does this movement originate,” Kind said. “How can I make it bigger so that that my hips are moving as big as they can but there’s no movement happening in my chest? All those challenges are really cool to me.” She continued on as a student for several years before teaching a couple classes at Mankato West High School. While working as a barista at the Coffee Hag in 2011, her boss introduced her to a couple who were planning to open a wellness facility called Natural Pathways. They asked her to teach belly dance there. But Natural Pathways had to start out at a different location before the studio was ready in North Mankato. “We ended up teaching in a real estate office in a tiny carpeted room with tiny little mirrors and my tiny little sound system,” Kind said. “We crammed eight people in there.” When they relocated, the owners of Natural Pathways said Kind could continue to get paid by the hour as their employee, or establish her own Limited Liability Corporation, renting space from them and charging

Profile

18 • NOVEMBER 2017 • MN Valley Business

Top: Dancers in a Satori Violet belly dancing class join hands in a circle during a rehearsal in the studio. Right: Holly Eisenmann puts on her zills, more commonly known as finger cymbals, before the start of a belly dancing class at Satori Violet. what she wanted. “I decided to go the entrepreneurial route and see where it would take me and see if I could push it further.” In the beginning she taught four classes a week and stayed with Natural Pathways for a year. In a search for her own space, she teamed up with Riverfront Performing Arts. They share a large building with multiple studios on Chestnut Street. The transition to working as a belly dance teacher full-time happened really fast. She now offers 17 classes with seven instructors. They average around 150 registrations each season. “Word of mouth is our best advertising for sure,” Kind said. “Everybody in Mankato seems to know at least somebody who knows somebody who knows somebody.”

Teaching patience

Kind says that teaching belly dance has its own challenges compared to other dance formats. “One of the things that we have

to pass on to p e o p l e immediately is that you have to be patient with yourself,” says Kind. “You’re going to have to experiment a lot and you have to be in some sense your own teacher. We’re going to tell you what it looks like - what muscles you’re using. We always preach that frustration means you’re growing.” Despite its complexities, Kind says that most of her students stick with it. She points to Mankato being a large enough city where people are willing to try alternative forms of dance, and yet small enough to gain strong local support. “Mankato is an awesome place to have a small business. It’s been ranked on Forbes on different lists as a really good place to start a business,” Kind said. “Just being in Mankato is the biggest

component to how this has grown as fast as it has and how it’s become a full-time job for me.” One of her favorite aspects of Satori Violet are that the students have the opportunity to perform in front of an audience every year at the Satori Student Showcase. This year’s event will take place on Nov. 11 at Mankato East High School. “The biggest thing that our studio is about is creating community,” Kind said. “It’s so awesome to see these friendships forming and see people coming out to different events and hanging out with each other.” MV

MN Valley Business • NOVEMBER 2017 • 19

The barn was renovated early this year and sports inside and outside spaces for guests.

Celebrating life

JR’s Barn hosts weddings, parties By Nell Musolf

oel and Renae Groskreutz are big on treating family like friends and friends like family. That desire, along with a natural inclination to entertain, led to the creation of JR’s Barn, a site where people can hold weddings, birthday parties, showers or any kind of celebration in an old-fashioned venue that has a down-home feel along with

a strong “welcome home” kind of vibe. The barn, which is located at 21573 45th Street, Waldorf, is 5,600 square feet of space, ready to be filled with whatever kind of celebration a par ty thrower would like to give. “We love to host and entertain,” Renae Groskreutz said. “It’s our desire that

Feature

20 • NOVEMBER 2017 • MN Valley Business

The Groskreutz clan: (l-r back row) Renae, Joel, Charlie, Graham, Ben (l-r front rwo) Amanda, Louis and Anna

MN Valley Business • NOVEMBER 2017 • 21

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www.cimankato.com 22 • NOVEMBER 2017 • MN Valley Business

Daughter Anna, a freshman at JWP, has a detailed oriented mind that is a big plus when it comes to helping with events. Anna is the family cheerleader who supports her parents’ in every way she can. Rounding out the crew is son Ben, a freshman at MSU studying for a career in the music industry. “Ben is the behind-the-scenesall-around-help,” Renae said. The couple’s other daughter, Amanda Graham, Amanda’s husband, Charlie, and their son— Renae and Joel’s grandson, Louis, play important roles as well. Amanda helps with cleaning, set ups and tear downs. Charlie and Amanda also offer assistance as a support team for wedding show marketing. “Amanda and Charlie are there to help us in any way they can,” Renae said. “Their motto is ‘what do you need us to do?’ They’re always there for us.”

Taking the plunge

Left: The barn can host up to 440 guests. Right: Different seating options are available depending on the size of the event. everyone feels like family when they are at JR’s Barn.” The barn was built in 1912 and has been in the Groskreutz family for four generations. After deciding to turn it into an event venue, the couple named the barn “JR’s Barn” using their first initials and began renovating the barn in January of this year. Renovations were finished by spring just in time for the upcoming wedding season and a few months later the first wedding held at JR’s Barn was on July 20. Keeping JR’s Barn up and running is a family affair for the Groskreutz’s with ever yone pitching in to help. Renae describes herself as a “wife, dreamer and someone who loves to entertain and host celebrations.” Balancing out her dreamer tendencies is Renae’s husband, Joel. Joel is the fourth generation to live on the land and is also a welder and what Renae terms a “down-to-earth thinker.”

Renae has over 20 years of experience hosting outdoor events for a non-profit industry. In 2013, following a few life-changing events including major surgery on her neck, Renae made the mover from working for someone else to working for herself. Her desire to go into business for herself, as well as her natural inclination to help people host events, led to the opening of JR’s Barn. Renae is currently in charge of the day-to-day operations of keeping the business running. Those operations include taking care of bookings, coordinating flowers and landscaping (which includes over 125 potted plants) while Joel does the mowing and yard maintenance. While the setting might be rural, JR’s Barn has all the modern amenities people want for a social event. Those amenities include a lighted grassy parking lot that holds more than 150 cars, the “Tin Shed” where the air conditioned Bride’s Room is located and where there is also a private restroom, the Groom’s Room (also air conditioned) and air conditioned, handicapped accessible men’s and ladies’ restrooms for the rest of the guests.

JR’s Barn comes equipped with outdoor benches and ample tables and chairs to seat guests. There is a large cement patio with a steel deck and a garden with a fire pit. The Barn can comfortably entertain up to 440 guests with accommodations for either theater seating or banquet seating and there is a buffet area for catering. Renae believes that it’s the combination of the peaceful rural setting as well as the couples’ innate hospitality that makes JR’s Barn such an attractive spot for any kind of celebration. “There is an amazing sense of peace in our yard and in the barn,” Renae said. “The setting is very spacious but at the same time it’s connected. People can be outside and hear what’s going on inside the barn. The grove trees add to the outdoor feeling and also add to the overall peace and general sense of serenity surrounding the property.” JR’s Barn is currently a seasonal venue and is booking for the 201718 season. Contact information is available on their website or by calling 507-327-7047. The family doesn’t have a favorite event to host but instead enjoy all of life’s celebrations. “I always tell every couple that besides the barn and yard, you get us,” Renae said. ”We love to be as involved as the couples want us to be. Our job is to help, guide and direct the set up and the day’s events.” MV

MN Valley Business • NOVEMBER 2017 • 23

■

Business and Industry Trends

Economy Manufacturing soars

American manufacturing expanded in September at the fastest pace in 13 years, in part because of effects from two major hurricanes, figures from the Institute for Supply Management showed.

• Factory index climbed to 60.8 (est. 58.1), the highest since May 2004, from 58.8; readings above 50 indicate expansion • Measure of new orders increased to 64.6, the strongest since February, from 60.3 • Employment gauge rose to 60.3, the best reading in more than six years, from 59.9 • Index of prices paid advanced

to 71.5, the highest since May 2011, from 62 The strength of the advances in the ISM’s gauges partly reflects impacts from hurricanes Harvey and Irma. Harvey forced the shutdowns of Houston-area refineries and chemical plants. Many retail establishments, including car dealerships, were flooded in the storms and merchandise was destroyed. Timothy Fiore, the ISM survey committee chairman, said on a conference call that the most direct impact from the storms was in the supplier deliveries index, indicating longer lead times; that gauge factors into the overall index. Survey respondents also mentioned that they received new orders because of the hurricanes, further boosting the headline number. Seventeen of 18 industries reported growth in September; only furniture makers showed contraction.

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Energy

Retail/Consumer Spending

Gas taxes up

The simple average of taxes and fees on gasoline levied by all the states and the District of Columbia, was 27.9 cents per gallon this summer, up 4.5 percent from the same time last year. These taxes and fees range from a low of 8.95 cents per gallon in Alaska to a high of 59.3 cents per gallon in Pennsylvania. Minnesota’s gas tax is 28.6 cents per gallon and did not increase in the past year. Gasoline buyers in the United States pay these taxes at the pump in addition to the federal tax of 18.4 cents per gallon, which has remained unchanged since 1993. State taxes on diesel tend to be somewhat higher— averaging 28.6 cents and ranging from 8.95 cents in Alaska to 75.8 cents in Pennsylvania. The federal tax on diesel of 24.4 cents is slightly higher than the federal tax on gasoline. Minnesota’s diesel tax is also 28.6 cents per gallon. Since July 1, 2016, New Jersey had the highest increases in their state excise taxes for gasoline and diesel fuel, which were up by 23 cents and 27 cents, respectively. Over the same period, Iowa reduced its gasoline and diesel taxes and fees by 1.2 cents and 1.0 cent, respectively.

Energy-hungry world

The U.S. Energy Information Administration estimates that the total world energy consumption rises from 575 quadrillion British thermal units (Btu) in 2015 to 736 quadrillion Btu in 2040, an increase of 28 percent. Most of the world’s energy growth will occur in countries outside of the Organization for Economic Cooperation and Development, where strong, longterm economic growth drives increasing demand for energy. Non-OECD Asia (including China and India) alone accounts for more than half of the world’s total increase in energy consumption over the 2015 to 2040 projection period. By 2040, energy use in non-OECD Asia exceeds that of the entire OECD by 41 quadrillion Btu.

World GDP

Economic growth— as measured by gross domestic product (GDP) — is a key determinant in the growth of energy demand. The world’s GDP (expressed in purchasing power parity terms) rises by 3 percent per year from 2015 to 2040. The fastest rates of growth are projected for the emerging, non-OECD regions, where combined GDP increases by 3.8 percent per year, driving the fast-paced growth in future energy consumption among those nations. In the OECD regions, GDP grows at a much slower rate of 1.7 percent a year between 2015 and 2040, at least in part, because of slow or declining population growth in those regions.

Vehicle Sales Mankato — Number of vehicles sold - 2016 - 2017

1500

1,162 1,110

1200 900 600 300 0

Source: Sales tax figures, City of Mankato

Sales tax collections Mankato (In thousands)

- 2016 - 2017

600

Includes restaurants, bars, telecommunications and general merchandise store sales. Excludes most clothing, grocery store sales.

$450

500

$491

400 300 200 100 0

Source: Sales tax figures, City of Mankato

Lodging tax collections Mankato/North Mankato - 2016 - 2017 70000

$61,821

$59,262

52500 35000 17500 0

Source: City of Mankato

Mankato food and beverage tax - 2016 - 2017 175000 140000

$74,800

105000

$66,525

70000 35000 0

Source: City of Mankato

C. Sankey

MN Valley Business • NOVEMBER 2017 • 25

■

Agricultural Outlook

By Kent Thiesse

Wide variations in farm program payments

ome farm operators in the Upper Midwest received a significant ARC-CO payment on their corn base acres during October from the USDA Farm Service Agency. Farm operators in other counties in the same region received much smaller payments, and producers in some counties did not receive any payment. Most crop producers in Minnesota and surrounding States are enrolled in the county yieldbased Ag Risk Coverage (ARC-CO) farm program choice on their corn and soybean base acres. The Price Loss Coverage (PLC) farm program option is a “price-only” based program, which is more popular for small grain crops. ARC-CO program payments in the current Farm Bill are based on changes in national price levels, and the county-level yields for a given crop, compared to the 5-year benchmark average national prices for a crop and the 5-year county benchmark yields. The countybased yield calculations have resulted in a wide variation in the level of ARC-CO payments from one year to the next, as well as from county-to-county in the same year. The PLC payments are based on the national market year average (MYA) price, compared to pre-set target prices for various crops, and the payment rates are the same in every county throughout the U.S. All 2016 ARC-CO corn and soybean payments were based on the final national MYA price for the 2016 crop year, which extended from September 1, 2016 to August 31, 2017, with MYA prices being finalized on September 30, 2017. The final 2016 MYA prices were $3.36 per bushel for corn and $9.47 per bushel for

soybeans. These MYA prices were also be used to determine 2016 Price Loss Coverage (PLC) payments for any eligible corn and soybean producers. 2016 ARC-CO payments for corn were paid when the actual 2016 county revenue for corn fell below the 2016 county “revenue guarantee” for that crop. The actual county revenue is the 2016 final FSA county yield for a given crop times the final 2016 MYA price for that crop. If that revenue amount is lower than the “revenue guarantee” for that crop in a given county, producers in that county that are enrolled in the ARCCO farm program would earn a 2016 ARC-CO payment. The “revenue guarantee” for a given crop is the “benchmark” (BM) revenue times 86% (.86). The BM revenue is the 5-year (2011-2015) county average yield (dropping the high and low yield) times the BM price, which is the 5-year (2011-2015) average MYA price (again dropping the high and low price). The relationship between the 2016 final FSA county yields and the 2016 county benchmark (BM) yields is extremely important in calculating the level of 2016 ARC-CO payments for corn and soybeans in a given county. Expressing the 2016 FSA county yield as a “% of BM yield” is actually more important than the actual final county yield in determining estimated ARC-CO payments. Any County that had a 2016 “% of BM yield” of 108% or lower likely received the maximum (100 %) 2016 corn ARC-CO payment for that County. By contrast, Counties with a “% of BM yield” of 123% or higher likely did not receive a 2016 corn ARC-CO payment. ARC-CO payments are made on the basis of crop

2016 CORN INCOME AND ARC-CO PAYMENT SUMMARY

COUNTY

2016 BM Yield (Bu/A)

Blue Earth 176 Brown 162 Faribault 175 Le Sueur 160 Martin 178 Nicollet 162 Sibley 162 Waseca 176 Watonwan 185

2016 Actual Yield (Bu/A) 190 190 208 195 208 209 201 205 187

% of BM Yield (%)

2016 Est. Crop ARC-CO Income Payment ($/A) ($/A)

2016 Adj Income ($/A)

108% $617.50 $66.00 $683.50 117% $617.50 $22.00 $639.50 119% $676.00 $17.00 $693.00 122% $633.75 $ 3.00 $636.75 117% $676.00 $29.00 $705.00 129% $679.25 0 $679.25 124% $653.25 0 $653.25 116% $666.25 $30.00 $696.25 101% $601.25 $70.00 $671.25

26 • NOVEMBER 2017 • MN Valley Business

NOTES --... The “BM Yield” is the 5-year County average yield from 2011-2015. ... The “Actual Yield” is the 2016 final County average FSA yield. ... The “% of Yield” is the 2016 Actual Yield divided by the BM Yield. ... The “Estimated Crop Income” is the 2016 “Actual Yield x $3.25/Bu. (est. price). ... The “ARC-CO Payment” is the est. 2016 County payment amount per base acre. ... The “Adjusted Income” is the “Est. Crop Income” plus the ARC-CO payment. ... The ARC-CO payments have been factored by 85% (.85) and include the 6.8% Federal sequestration reduction. ... 2016 ARC-CO payments were made in October, 2017.

base acres. Producers should be aware that most of the quoted 2016 ARC-CO payment rates per acre for corn, soybeans, and other crops need to be factored by 85 percent (.85), in order to arrive at an ARC-CO payment rate per crop base acre. The 2016 ARC-CO payments are also subject to the required Federal sequestration reduction of 6.8 percent, which will affect the final total payment received by farm operators. One of the hardest things for producers to understand is why there is such a large variation in the 2016 corn ARC-CO payments from county-to-county. The main reason for this variation was the difference in the 2016 benchmark corn yields from county-to county. The 2016 benchmark yields were lower in some counties due to lower county yield levels from 2011-2015, the years used to calculate the benchmark yields. Some of these same counties then had record corn yields in 2016, which greatly increased the “% of BM Yield”, and resulted in very limited or zero 2016 corn ARC-CO payments. By comparison, some other counties with higher benchmark yields that were hit with weather problems in 2016, and had 2016 corn yields8 that were closer to average, received higher levels of 2016 corn ARC-CO payments. The6 adjoining Table shows the 2016 benchmark (BM) yields, the 2016 actual corn yields, and the “% of 4 BM Yield” for all counties in South Central Minnesota. The Table also shows the estimated gross income per corn 2acre at $3.25 per bushel, the 2016 ARC-CO payment received, and the adjusted gross income per corn base acre. It is interesting that a comparable BM 0 J 2016 F M A Mgross J income J A per S O D yields, the adjusted cornN acre is somewhat more even, following the inclusion of the ARC-CO payments. However, the wide variation in ARC-CO payments in adjoining counties is likely to be a major 8 point of discussion during the development of the next Farm Bill. 100 Resources available on Estimating 2016 ARC-CO 6 Payments : 85 • Kent Thiesse has prepared an Information Sheet 4 titled: 70 “Estimating Final 2016 Corn and Soybean ARC-CO Payments”, along with “Final 2 55 2016 ARC-CO Payment Estimate Tables” for most counties in Minnesota and Northern Iowa, as 40 well0 asJ forF Eastern M A North M J and J South A S Dakota. O N To D receive a free copy of the Information Sheet and 25 F M an A M J Jto: A kent.thiesse@ S O N D Tables,J send e-mail minnstarbank.com • The USDA FSA ARC/PLC web site contains county average yields, MYA prices, and ARC-CO payment maps, 100 as well as a variety of other farm program data and information. The web site can be found at: 85 http://www.fsa.usda.gov/programs-andser70 vices/arcplc_program/

Agriculture/ Agribusiness Corn prices — southern Minnesota 8

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

$2.93

Source: USDA

Soybean prices — southern Minnesota

(dollars per bushel)

— 2016 — 2017 208 100 166 85 12 4 70

$9.10

8 55 2 $8.83 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

20 100 25 16 85 22 $59.35 12 70 19 8 55 16 4 40 13 $46.78 0 J F M A M J J A S O N D 25 10 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

Milk prices

Minimum prices, class 1 milk Dollars per hundredweight

— 2016 — 2017 25 22

$18.56

$17.40

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

185 pound carcass, negotiated price, weighted average

— 2016 — 2017

12 8

$2.94

(dollars per bushel)

— 2016 — 2017

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 • NOVEMBER 2017 • 27

25 22 19 16 13 10

Construction/Real Estate Residential building permits Mankato

Commercial building permits Mankato

18000

12000

- 2016 - 2017 (in thousands)

$2,517

13500

10000

$10,778

4000

4500

2000

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 - 2016 - 2017 (in thousands)

Median home sale price: Mankato region - 2016 - 2017 (in thousands)

250

300

252

235

$169,750

$164,000

200

240

150

180

100

120

60 0.0 0.2 0.4 0.6 0.8 1.0

0 O

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

— 2016 — 2017

- 2016 - 2017

5.5

5.0

4.5

3.9%

4.0

3.5 3.0

$2,547

6000

9000

$3,916

8000

3.5% J

Source: Freddie Mac

Source: Cities of Mankato/North Mankato

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Gas Prices

Gas prices-Mankato

— 2016 — 2017

54 43 $2.24

32 21 10 0

O $2.07 N D

Gas prices-Minnesota

— 2016 — 2017

5 54 $2.35

43 32 21 10

$2.17

C. Sankey

Source: GasBuddy.com

Stocks of local interest

Sept. 8

Oct. 9

Percent change

Archer Daniels

$42.41

$42.96

+1.3%

Ameriprise

$131.51

$151.56

15.2%

Best Buy

$55.46

$57.20

+3.1%

Crown Cork & Seal

$57.80

$60.37

+4.4%

Consolidated Comm.

$18.51

$20.11

+8.6%

Fastenal

$41.35

$44.95

+8.7%

General Growth

$21.25

$21.51

+1.4%

General Mills

$54.53

$50.73

-7.0%

Itron

$70.85

$78.20

+10.4%

Johnson Outdoors

$63.54

$72.98

14.9%

$202.28

$216.98

+7.3%

Target

$58.75

$57.48

-2.2%

U.S. Bancorp

$50.07

$54.24

+8.3%

Winland

$1.23

$1.55

+26.0%

Xcel

$49.88

$47.88

-4.0% C. Sankey

MN Valley Business • NOVEMBER 2017 • 29

Minnesota Business Updates

■

■ ADM teams with Mayo

■ Target tries curbside pickup

Archer Daniels Midland announced a collaboration with Mayo Clinic in personalized nutrition. The company will work with Mayo’s Microbiome Program, led by Dr. Heidi Nelson, to investigate microbial solutions to improve health and wellness, initially focusing on the maintenance of healthy body weight. “Personalized nutrition is an important growth platform for ADM. Earlier this year, we acquired Biopolis, a leading player in health-promoting microbial technology. Now, by working with Mayo Clinic, we are further expanding our capabilities to develop personalized nutrition solutions to improve health and wellness, and bring these beneficial solutions directly to consumers,” Vikram Luthar of ADM said in a statement. The goal of the collaboration is to develop a personalized nutrition model that predicts the effects of probiotics, prebiotics and other metabolites, as well as other nutrients in microbiome shifts, for improving individual health. In the initial phase, ADM and Mayo Clinic will work to design a computational method for testing probiotics, metabolites, and other intervention strategies that promote the growth of gut microbes linked to healthy body weight.

Twin Cities shoppers once again get to be guinea pigs for a new program that Target is testing out in its hometown: curbside pickup. The service, which the Minneapolis-based retailer is calling “Drive Up,” went live at 50 stores around the Twin Cities, according to the Star Tribune. Customers who want to use it place online orders through Target’s app, click a button when they are on their way to the store, park at a designated parking spot and then employees bring the items out to their car. Aimed at time-strapped shoppers who would prefer the convenience of not having to get out of their cars, the service is one of the latest ways that brick-andmortar retailers are trying to fight off Amazon and stay relevant as consumers are increasingly accustomed to having online orders show up on their doorsteps within hours. Like in-store pickup, curbside pickup also is a more profitable way for retailers to fulfill online orders since customers make the trip to the stores to fetch their orders instead of having to pay for the extra costs of shipping them to people’s doorsteps. Walmart has added curbside pickup areas to hundreds of its stores and is focusing its offering on fresh groceries. CVS also offers a curbside pickup service on orders

Employment/Unemployment Initial unemployment claims Nine-county Mankato region Major August Industry 2016 2017 Construction Manufacturing Retail Services Total*

98 187 30 119 434

Local non-farm jobs Percent change ‘16-’17

114 131 25 105 375

125,622

Construction 122000 122000 Manufacturing Retail 111000 Services 111000 Total*

2,573 2,038 967 3,798 9,376

2,288 1,609 699 3,555 8,151

122000

2100 1400

111000

700 100000

Minnesota Local non-farm jobs 8000 3500 3500 6000 2800 2800 4000 2100 2100

-11.1% -21.1% -27.7% -6.4% -13.1%

30 • NOVEMBER 2017 • MN Valley Business

2,930

2,987

2000 1400 1400

700 D

- 2016 - 2017

(in thousands)

Percent change ‘16-’17

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

3500 2800

+16.3% -29.9% -16.7% -11.8% -13.6%

Minnesota initial unemployment claims August 2016 2017

126,669

133000

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 133000 133000

- 2016 - 2017

Nine-county Mankato region

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

placed through its website or app.

The Southern Minnesota Initiative Foundation (SMIF), a regional development and philanthropic group established in 1986, announced it has become a financial backer of the Southeast Minnesota Capital Fund, pushing the new fund’s total capitalization to $1 million, according to Twin Cities Business. The amount of the investment wasn’t specified, but the angel fund’s treasurer told TCB in August it launched at a level of $900,000 pooled from a group of 25 angel investors. The fund was created through the efforts of Rochester Area Economic Development Inc., a local nonprofit 133000 devoted to growing new businesses in the city, and by the Journey to Growth Partnership, a five-year economic development plan spearheaded by RAEDI seeking to 122000 diversify Rochester’s economic growth into the surrounding counties of southeastern Minnesota. 111000 SMIF President and CEO Tim Penny said the decision to back the angel fund is a natural extension of the foundation’s existing efforts to invest in startups with its 100000 own seedJandF equity M Afunds. M J J A S O N D

■ College invests in engineering A Minnesota college is investing more than $10 million to create additional class space for engineering students in an effort to meet a growing need for skilled workers in the state. Dunwoody College will turn its old gymnasium into a space for engineering students. The students will be able to receive hands-on training in their chosen field, KARETV reported. The state had almost 98,000 unfilled jobs last year, according to officials with the Minnesota Department of Employment and Economic Development. College President Rich Wagner said the numbers show that companies are struggling to find qualified candidates to fill the positions. “What I can tell you is the statistics about our job market are quite frightening,” Wagner said. “When you think about unemployment being 4 percent, you know what that means? It means talent is a very scarce resource and companies are trying all sorts of things to find ways to access that talent.” 133000 ■ SE Minn. angel fund strong 133000

3500 8000 2800 6000 2100

3500

When a new angel investment fund focusing on southeastern 122000 Minnesota was launched in August, its 2800 122000 organizers said they were a bit short of their goal of 2100 raising $1 million. 111000 1400 No more. 111000

700

100000

100000 J F

J M

M J

J A

J S

Local number of unemployed

4000 2100 1400 2000

S N

O D

8000

4,858

6000

4,314

0 F F

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

200000

113,915

150000

106,122

100000 50000 D

700 0

4000 1400

100000

700 2000

50000

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

August

100000

0 F

J M

F M A A M J

M J

J A

2016

2017

3.2% 55,865 1,827

3.0% 56,863 1,745

J S

A O

S N

O D

Unemployment rates Counties, state, nation County/area

- 2016 - 2017

1400

150000

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

100000

2000

2100

Mankato/North Mankato Metropolitan statistical area

150000

4000

700 0 J 0 J

D 0

200000

Minnesota number of unemployed

- 2016 - 2017

Nine-county Mankato region 8000 3500 6000 2800

A O

2800

200000

Employment/Unemployment

F M A A M J

3500

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

August 2016

August 2017

3.5% 3.9% 4.1% 3.9% 4.4% 2.9% 3.8% 4.1% 5.5% 3.6% 3.8% 5.0%

3.1% 3.3% 3.8% 3.6% 3.5% 2.8% 3.0% 3.5% 4.3% 3.4% 3.6% 4.5%

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

Minnesota initial• unemployment MN Valley Business NOVEMBER 2017 claims • 31

Sponsored by the Carl & Verna Schmidt Foundation

Full steam ahead: Funds of all types rose again last quarter By Stan Choe | Associated Press

topia is still in effect for fund investors. Funds of all types again powered higher in the third quarter, as stocks and bonds around the world rose in unison. Not only did investors get strong returns from their funds, they also got them with remarkably few headaches along the way. Consider the largest mutual fund by assets, Vanguard’s Total Stock Market Index fund, which sits at the heart of many 401(k) and other accounts. It returned 4.2 percent for the quarter, as of Thursday. It’s the eighth straight quarter where the fund has made money, and the 19th in the last 21. The usual trade-off that investors accept for the chance to make big money in stocks is the possibility of big drops along the way. But only twice during the quarter did investors have to stomach a day where the fund lost more than 1 percent. Compare that with two years ago, when investors had to deal with a dozen such days in the third quarter. Such steadiness made it an even easier decision for investors to hold on to their mutual funds and exchange-traded funds, which proved to be another good bet this past quarter. Roughly 95 percent of mutual funds tracked by Morningstar had positive returns for the three months through Thursday. Even categories of funds that struggled earlier in the year, such as energy stock funds, did well from July through September. Just don’t assume utopia will continue. After their phenomenal run in recent years, stock and bond funds will likely offer more modest returns in the future,

32 • NOVEMBER 2017 • MN Valley Business

analysts say. Stock prices are higher than usual, relative to corporate profits, which makes them look more expensive. Bond funds, meanwhile, face the challenge of an expected rise in interest rates, which would cause their prices to fall. Heading into this year, many investors were bracing for losses from their bond funds, even though they’re supposed to be the safe parts of their portfolios. The fear sprung from expectations that interest rates would keep jumping. Rates began leaping after November’s election on speculation that faster economic growth and inflation were on the way, and the 10-year Treasury yield jumped to 2.60 percent from 1.85 percent in a little more than a month. The largest bond fund by assets, Vanguard’s Total Bond Market Index fund, returned 0.6 percent for the quarter through Thursday. That’s more modest than in prior quarters, but it’s much better than the 3.2 percent loss it recorded in last year’s fourth quarter. Funds that invested in riskier bonds did even better during the quarter. Businesses are making bigger profits again, and a parade of better-than-expected earnings reports from companies during the quarter helped to lift all kinds of stock funds. Funds that focused on the smallest stocks were notably strong, after lagging other stock funds earlier in the year. The DFA USA Small Cap fund is one of the largest that focuses on smaller stocks, for example. It returned a little less than 1 percent in each of the first two quarters of the year, but it jumped to a 5.1 percent return in the third quarter. MV

Sponsored by the Carl & Verna Schmidt Foundation

When nearly ever ything’s a winner, gold investors get antsy By Associated Press

n a world where nearly every investment is rising, so is gold. But a big part of why many investors are buying gold is that they’re worried those other investments, such as stocks and bonds, are due for a drop. Will Rhind is a former executive at the largest exchange-traded fund backed by gold bars, SPDR Gold Shares. He recently started a rival ETF, GraniteShares Gold Trust, and talked about what’s been behind this year’s 13 percent rise for gold. If that performance holds, it will be the best year for gold since 2010. Answers have been edited for clarity and length. Is it odd or disconcerting that gold and stocks are rising at the same time? Isn’t gold at its best when ever ything is falling apart? Definitely not odd, but you have to understand why it is doing what it is doing. The main reason has been the decline of the U.S. dollar since the beginning of the year. Historically, gold has had an inverse relationship with the dollar because the lens that a lot of people view gold through is as a currency and not as a commodity. What’s also been helping gold prices is geopolitical tensions, such as the North Korean situation. Gold is one of those safe-haven assets that people have historically gone to in times of stress. But the Federal Reser ve is raising rates and inflation is low. Haven’t each of those historically dulled the appeal of gold as an investment? Although interest rates are rising, they’re not rising in a large way. We’re talking about very nominal rises, and interest rates today are still at historical lows versus where they were 10 years ago. From that perspective, that’s not really going to impact gold much at all. And that’s shown in the price. On inflation, this is not the consensus, but you’ve got

some people starting to question the last 40 years of a disinflationary environment and wondering if this is a turning point and are we now moving into an inflationary phase. Gold is still down about 30 percent from its peak six years ago. Have investors reframed what they expect from an investment in gold? Gold hasn’t escaped the bear market in commodities generally, against the bull market of the dollar. When people look at asset classes that are trading at or near all-time highs, gold and commodities are very much not among those asset classes. As to whether you can expect good performance from gold going forward, it is impossible to tell, but we’re at a level that looks to be reasonable given where we’ve come from. I think what’s happening is there is a movement of capital out of some of these more traditional asset classes (like stocks and bonds) and into gold. As bond prices have increased, and equities have increased, people might be looking to rebalance that. You’ve got people really nervous about the level of the stock market and the bond market, and they are looking to insulate their portfolios to the extent that they can if there’s a correction or worse in the market. People are looking for ways to diversify their investments, and gold is probably the largest, most liquid asset class in the world that is not correlated to stocks. You’ve started to see smarter money moving into gold, famous hedge fund managers talking about that the last few weeks. (Ray Dalio, founder of Bridgewater, the world’s largest hedge fund, suggested in a recent blog post on LinkedIn that investors keep 5 percent to 10 percent of their assets in gold to protect against a market he sees as increasingly risky.) MV

MN Valley Business • NOVEMBER 2017 • 33

GREATER MANKATO

ARDSW & COLADES

Because we live in Greater Mankato, we know what makes this area great. It’s a thrill when others recognize its unique aspects too! Here are a few of Mankato’s recent awards and accolades.

The Mankato Half Marathon is a Top 20 finalist in The BibRave 100 list (winner and Top 5 will be announced Nov. 27) Chankaska Creek Ranch & Winery chosen as one of The Knot’s 2017 Best of Weddings Mankato Brewery was named Best Beer Bar in Minnesota by Growlermag.com in 2017 GoodCall.com ranked Mankato 65, in the top 100 places for internships, after studying more than 1,200 cities nationwide Kiwanis Holiday Lights was No. 3 in Onlyinyourstate.com’s 12 Best Christmas Lights Displays in Minnesota That Are Pure Magic list in 2016 Smartasset.com named Mankato No. 7 in America’s Best Hockey Towns of 2017

Greater Mankato Growth

Schools.com ranked Mankato No. 2 out of 25 Best College Towns in America

WE COULDN’T DO IT WITHOUT YOU The support we receive from strong community members like you makes a big difference in our ability to help our region contiune to thrive. Prime Your Business was a big success. We had more than 350 attendees and over 40 exhibitors. Tour of Manufacturing doubled it’s attendance this year by expanding the experience and hosting two days. We were honored to host Governor Tim Pawlenty at this years third annual Journeys of Leadership. Thank you to everyone who attended and for your continued support and engagment.

PrimeYourBusiness a greater mankato growth event

34 • NOVEMBER 2017 • MN Valley Business

Greater Mankato Business Awards & Hall of Fame will be held Tuesday, November 14 at Verizon Center. This is a time where Greater Mankato Growth, Visit Mankato and City Center Partnership honor outstanding businesses, professionals and organizations within the Greater Mankato community. Register for tickets by November 9th.

GREATER MANKATO GROWTH AWARDS HALL OF FAME DISTINGUISHED BUSINESS BRIAN FAZIO BUSINESS EDUCATION PARTNERSHIP

Kato Insurance Agency Chankaska Creek Ranch & Winery Junior Achievement of Greater Mankato; Mankato Area Public Schools; Loyola High School

HAP HALLIGAN LEADERSHIP YOUNG PROFESSIONAL OF THE YEAR

John Bulcock Christopher Harstad

VISIT MANKATO AWARDS BRING IT HOME HOSPITALITY

Paul Gaspar, Mankato United Soccer Club Mankato RibFest

CITY CENTER PARTNERSHIP AWARDS NEW CONSTRUCTION OVER $5,000,000 RENOVATION $500,000 - $1,000,000 RENOVATION $500,000

Block 518 (Tailwind Group) Bluebird Cakery Center for Innovation and Entrepreneurship (Minnesota State University, Mankato)

PRESERVATION STEWARDSHIP CREATIVE PLACEMAKING CITYART “PEOPLE’S CHOICE”

“Boy in Blue” Monument “Kites” Mural (City of Mankato) Human Foosball To be revealed at event

greatermankato.com/hall-fame

Presenting Sponsor:

Event Sponsor:

Video Sponsor:

MN Valley Business • NOVEMBER 2017 • 35

Greater Mankato Growth

DOWNTOWN DETAIL

RIBBON CUTTING

NEW BUSINESS

Bronzers Tanning & Boutique 201 North Victory Drive, Suite 327, Mankato

Full Spectrum Float 514 South Riverfront Drive, Mankato

RIBBON CUTTING

GROUNDBREAKING

Mav Ave 220 Centennial Student Union, Mankato

Medieval MetalWerx 3000 Technology Drive, Mankato

Julee’s Jewelry 520 South Front Street, Mankato

RIBBON CUTTING

NEW BUSINESS

Northern Frights 340 Fairgrounds Street, Garden City

Office Depot 2020 Adams Street, Mankato

Neutral Groundz 229 Belgrade Avenue, North Mankato

Ballman Roofing 45668 Hwy 22, Kasota ballmanroofing.com

Insty-Prints 1402 North Riverfront Drive, Mankato instyprintsofmankato.com

White Orchid 1813 Adams Street, Mankato whiteorchidfashion.com

Wingert Realty & Land Services 1160 Victory Drive S, Suite 6, Mankato wingertrealty.com

Growth in Greater Mankato

Cavaliers

Greater Mankato Growth

Cavalier Calls on the Newest Greater Mankato Growth Members

PrimeSource Funding 1751 North Victory Drive, Suite 500 Mankato primesourcefunding.com

LET’S GET SOCIAL • CONNECT WITH US! @greatermankatogrowth

@greatermankato

@greatermankatogrowth

36 • NOVEMBER 2017 • MN Valley Business

Greater Mankato Growth

@gmgmankato

5:00 - 7:00 pm November 7 December 5

Watch for the 2018 schedule in December!

Mayo Clinic Heath System Courtyard by Marriott Hotel & Event Center

September Business After Hours hosted by Cambria

7:30 - 9:00 am November 15 December 20

Old Main Village Laurels Peak Rehabilitation Center (Previously City of Eagle Lake) 2017 Business Before Hours Sponsored by:

September Business Before Hours hosted by Ecumen Pathstone Living

Business After and Business Before Hours gives representatives from GMG member businesses at the Engaged Level or higher an opportunity to get together with one another to exchange ideas and learn about each other’s businesses. For more information on these and other member events, visit greatermankato.com/events.

TELL US YOUR STORY

Greater Mankato Growth

Greater Mankato Growth, Inc. will be celebrating 150 years of service to our area business community in September 2018. We want to build an accurate account of local business history and need your help to do so. We have historical information from many resources, but we'd like you to share your first-hand historical account! Fill out the brief survey by December 1 st and be entered for a chance to win one of four great prizes at greatermankato.com/150 Thank you to our partners:

FRONT STREET, MANKATO IN 1909

MN Valley Business • NOVEMBER 2017 • 37

MANKATO MARATHON:

ANOTHER GREAT YEAR WITH NEW ADDITIONS! By Katie Adelman, Marketing and Communications Coordinator

nother year of the Mankato Marathon is in the books! 2017 saw new motivational additions along the course, a fantastic keynote speaker and the consistent outstanding support the Greater Mankato community is known for.

Greater Mankato Growth

The expanded Hy-Vee Kidz Zone at the Scheels Sport & Health Expo was a huge success. People of KNOCKERBALL IN all ages enjoyed HY-VEE KIDZ ZONE the Minnesota State University, Mankato’s indoor climbing wall, indoor bowling lanes, a bounce house and Knockerball. Heather Kampf, the University of Minnesota’s most decorated women’s track athlete, provided Orthopaedic & Fracture Clinic Speaker Series attendees with uplifting messages during her two keynote sessions, one geared toward kids and one for adults entitled “Getting Back Up After You Fall Down.” Mayo Clinic Health System’s Anne Harguth, RDN, and Dr. Kristen Steidl and OFC’s Dr. Scott Stevens offered helpful runningrelated presentations for attendees as well. For runners, Sibley Park is one of the more mentally difficult areas along the course. Because of this, new Cheer Zones by the Service Leadership Program groups of Aktion Club and the Loyola, Mankato West and Mankato East Key Clubs were INDOOR BOWLING IN HY-VEE KIDZ ZONE strategically

38 • NOVEMBER 2017 • MN Valley Business

placed to motivate runners throughout the park. As a last burst of motivation, a double-decker bus with music pumped up runners to ascend Marshall Hill to the finish line. And it’s the runners who help make the Mankato Marathon weekend exciting and are the reason for the race. About half of these visitors are from outside the 25-mile radius of the Greater Mankato area. At least one “representative” runner from 31 of the 50 states registered for the Mankato Marathon. In addition, this year’s Mankato Marathon saw a 17 percent increase in full marathon registrations SCHEELS SPORT & compared to 2016. HEALTH EXPO The estimated economic impact of the Mankato Marathon weekend is $1.75 million. Approximately 10,000 to 11,000 runners and spectators flock to the Greater Mankato area for the two-day weekend and invest dollars in our hotels, attractions and restaurants. With the eighth annual Mankato Marathon complete, Visit Mankato and Final Stretch would like to thank the spectators, volunteers, exhibitors and speaker series presenters for making this year’s event a fun, well-run and exciting event. Our sponsors show tremendous support—from financial funding to in-kind trade to providing volunteers. This support has made the Mankato Marathon a premiere event in Southern Minnesota. We look forward to another great year in 2018, with the Mankato Marathon being held October 20-21!

Small Business Saturday is a day to support the independent retailers and restaurants that help communities thrive, and the City Center Partnership invites you to “Shop Small” in the City Center on November 25. The City Center is full of unique, locally-owned businesses that contribute to the vibrancy of Greater Mankato. Small Business Saturday is the perfect time to become familiar with these businesses. Whether you’re looking for fashion, jewelry, home goods, games, art, craft supplies or great food, you can find it all in the City Center. Many businesses will have sales and other special offers to encourage neighbors to visit, plus you can often meet the business owners and entrepreneurs who are making a such a positive impact on our downtown! Once again, the City Center Partnership will be offering a passport (and prizes!) to help you find your new favorite City Center small business. Find out more details and a list of participating businesses at citycentermankato.com.

Greater Mankato Growth

City Center stores display their Shop Small pride.

MN Valley Business • NOVEMBER 2017 • 39

Now seeking chamber of commerce project applications for 2017-18

» C OME JU DGE

for Yourself.

GOLFERS FROM AROUND THE WORLD COME TO CHALLENGE THE JUDGE and the two other golf courses in Prattville at RTJ Capitol Hill. Bring your clubs and come take on Judge hole number 1, voted the favorite hole on the Trail. Complete your day in luxury at the Marriott and enjoy dining, firepits and guest rooms overlooking the Senator golf course. With the Marriott’s 20,000 square feet of meeting space, 96 guest rooms and luxurious Presidential Cottage combined with three world-class golf courses, business and pleasure can definitely interact in Prattville.

THE ROBERT TRENT JONES GOLF TRAIL AT CAPITOL HILL offers three magnificent 18-hole championship golf courses. The Marriott Prattville is part of the Resort Collection on Alabama’s Robert Trent Jones Golf Trail. Visit www.rtjgolf.com or call 800.949.4444 to learn more.

Taking a Data-Driven Road Business Analytics Certificate just launched

very card swiped, every song streamed, every imaginable interaction beyond smoke signals all leave little trails that add up to Big Data. And businesses of all sizes are falling over themselves trying to harness it.

Meanwhile, the analytics market prompted the creation of a certificate which, while tailored toward students in business and economics, is structured so anyone could take it.

One of the early proponents and designers of the analytics certificate, Severns credits finance professor Joseph Reising with getting analytics a bigger role in Minnesota State Mankato business offerings. Reising approached Severns two years ago with the idea of teaching an analytics course. “I thought it was a good idea,” Severns said, “and we began teaching a special topics course on the subject.” After offering the analytic-focused course twice (and seeing a doubling in student enrollment between the two), a full analytics course was offered for the 2016-2017 academic year.

“They showed us exactly what they’re doing, what kind of technology they’re using and the processes they’re using,” Howk said. “It was like a boot camp style day for us.” Later, IBM officials in March spent a full day on campus demonstrating analytics with students and faculty. IBM financial manager and Minnesota State Mankato alumnus Todd Stockmo said the day was an example of a good, mutually beneficial partnership between university and business.

Included in the all-day event were demonstrations of a powerful analytics tool IBM uses called SPSS Modeler. IBM describes it as a user-friendly data mining and text analytics software that can be used to build predictive models and conduct analytic tasks. “It’s great at using and manipulating and analyzing large volumes of data and we’re using it in a predictive manner,” Stockmo said. “We’re trying to use it to forecast. Maybe a revenue forecast, cost forecast or expense forecast – using that modeling tool to give us the best view of the future that we can get.” And now students will have access to the same tool as the international finance team at IBM – the company has given the University free access to the SPSS Modeler system. “Lots of the heavy duty analytics that businesses do cannot be done without highly powerful analytics tools and systems,” Howk said. “IBM gave us a very powerful tool.” IBM in Rochester has more than 50 Minnesota State Mankato graduates working in finance. With the certificate added to the University’s offerings, that number could increase.

“We’re certainly trying to develop, as many companies are, groups of analytics professionals within their finance organizations,” Stockmo said. “It’s a two-way street, we try to “That analytics certificate is going to provide them with feedback on course be a good first step toward that.”

MN Valley Business • NOVEMBER 2017 • To learn more about the Business Analytics Certificate visit cob.mnsu.edu/businessanalytics.

Minnesota State University, Mankato College of Business

While working on the requirements of the certificate, faculty asked Howk to “Companies are saying it’s one thing check with some of the businesses to collect data and another thing to that partner with the college as to actually know what to do with it,” said whether they saw value in such a Luke Howk, the College of Business’ certificate for either incoming or external partnerships coordinator. existing employees. Howk checked in with about 20 different firms, including After more than two years of crafting UnitedHealth Group, IBM, Taylor the Business Analytics Certificate, Corporation and Microsoft. “The it will be offered for the first time in response was overwhelmingly ‘yes,’” the spring of 2018. The certificate Howk said. “They value these skill is designed to equip the bearer with sets and thought the certificate would abilities to read and analyze data. be great. And they all said ‘if we can help further somehow, let us know.’” So how big is Big Data? IBM was particularly interested, “Nationally there are studies that expressing its interest in having suggest the number of people its Rochester-based international required to analyze data or interpret finance center staffed with pros who that analyzed data for the next are well-versed in analytics. Last fall, 10 years could be a couple of faculty working on the certificate were million people,” said Department of invited to visit the center to see how Finance Chair Roger Severns. “So the company was using analytics to tremendous demand.” transform its operations.

curriculum or skills that we’re looking for, so they’re better prepared not only for us but for whoever they’re going to work for,” Stockmo said.

Keep your employees healthy

Mayo Clinic Health System Occupational Medicine offers the services you need to help keep your employees healthy and safe. • DOT physicals • Injury care

• Medical surveillance • Pre-employment exams

Call 507-594-7370 to learn more.

mayoclinichealthsystem.org

MN Valley Business OCT 2017

MN Valley Business • NOVEMBER 2017 • 42