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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 is home of the Yokohama Tire LPGA Classic on the Senator Course September 18 to 24, 2014. 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.

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HARDCOVER • 136 PAGES • SHIPS LATE SEPTEMBER HUNDREDS OF HISTORIC PHOTOS The Free Press is proud to partner with the Blue Earth County Historical Society, the Minnesota State University Memorial Library and the Nicollet County Historical Society and our readers on a new hardcover pictorial history book, “Minnesota Valley Memories: The Early Years.” This heirloom-quality coffee-table book will offer a glimpse of Mankato, North Mankato, Blue Earth and Nicollet Counties from the early years to 1939 through stunning and historic photos. In addition, it will include photographic memories of years gone by from our readers. Pre-order your commemorative book now and save $15.00 off the $44.95 retail price. PR E SE N T ED BY

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F E A T U R E S June 2016 • Volume 8, Issue 9

Area nonprofits say businesses have a strong history of generously giving money and in-kind donations and that support helps those in need and raises the area’s quality of life.

Chankaska Creek Ranch & Winery just celebrated its fourth anniversary by introducing something new: a line of spirits, including whiskey, gin and brandy.

Water’s Edge in Mankato is the state’s first Green House elderly home – based on the philosophy that seeks to make senior residences more like houses than institutions.

Faculty and grad students at MSU’s Organizational Effectiveness Research Group caters to clients around the world, giving students valuable experiences.

MN Valley Business • June 2016 • 3

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June 2016 • VOLUME 8, ISSUE 8

By Joe Spear

PUBLISHER John Elchert EXECUTIVE EDITOR Joe Spear ASSOCIATE EDITOR Tim Krohn CONTRIBUTING Tim Krohn WRITERS Kent Thiesse Heidi Sampson Dean Swanson Nell Musolf PHOTOGRAPHERS Pat Christman Darren Gibbins COVER PHOTO Pat Christman PAGE DESIGNER Christina Sankey ADVERTISING Phil Seibel MANAGER ADVERTISING Barb Wass ASSISTANT ADVERTISING Sue Hammar DESIGNERS Christina Sankey CIRCULATION Denise Zernechel DIRECTOR

For editorial inquiries, call Tim Krohn at 507-344-6383. For advertising, call 344-6336, or e-mail mankatomag@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..........29 ■ Retail trends.....................................29 ■ Construction, real estate trends.....30 ■ Gas trends........................................31 ■ Stocks...............................................31 ■ Agriculture Outlook..........................32 ■ Agribusiness trends..........................33 ■ Minnesota Business updates............34 ■ Job trends.........................................34 ■ Greater Mankato Growth..................36 ■ Greater Mankato Growth Member Activities ...........................38

From the editor

Nonprofits are part of business Business volunteers learn beyond the spreadsheets

his month’s feature on Mankato’s vibrant and robust nonprofit community shows just how for-profit businesses and nonprofits can work together to improve overall community prosperity. There are many nonprofits in Mankato and it seems new ones spring up from time to time. But as this month’s feature shows, many nonprofits receive robust support from the business community, whether it’s donated T-shirts and logos for certain causes from the B Stark Co., or a giving and volunteer program that’s part of the business plan at Eide Bailly. Many businesspeople serve on nonprofit boards of directors and help the nonprofit leaders network with businesses to get things done or offer strategic advice in ever ything from marketing to personnel to legal issues. More and more nonprofits are called on to do things that just a few years ago the government was asked to do. But with public budgets tight, nonprofits have taken over things like health and fitness programs, recreation, early childhood schooling among other social services. Nonprofits seem to be growing to meet those needs. Business leaders recognize the human capital that many nonprofits help develop. Early childhood programs aim to make kids more ready for schools that are more advanced and more rigorous all the time. Without nonprofits helping get kids ready, the taxpayer dollars invested in schools wouldn’t go as far. Unfortunately, vast networks of food shelves have developed in the Mankato region and across the state to make up for incomes that fall short of basic needs. And food programs for children like the BackPack Food Program in

4 • June 2016 • MN Valley Business

Mankato also again make sure kids can go to school not feeling hungry and ready to learn. We know all these social factors impact how much we can improve lives with our limited government funds. Community foundations have also sprung up in the last 10 years or so, and the Mankato Area Foundation has greatly expanded its resources and its reach. In the last two years, the Foundation has grown from $5 million to about $12 million. Last year it disbursed some $400,000 in grants. It has moved to a model of a community foundation that maintains an endowment and awards funds based on the endowments earnings and growth. It also has partnered with other nonprofits and the Greater Mankato Area United Way to be housed in a common building, the old but remodeled Blethen, Gage and Krause law office building in downtown Mankato. The United Way also has reworked some of its fundraising strategies and recently surpassed its yearly goal raising about $2 million. It’s clear these nonprofits have strong business support in Mankato. In fact, giving to nonprofits has almost become part of the business culture wherever one might work in Mankato. But the unwritten value of business leaders working with nonprofits might be what they learn about their community and the human capital they employ. The business day for executives can be dominated by spreadsheets and marketing forecasts, but when business people work with nonprofits, they get a broader view of community health and the health of the human capital they employ. They get a feel for the world

their workers face after the leave work. They see the social fabric of the community and the mental and physical health of the people. They see how important business growth and job creation can be and how much it is needed. MV Joe Spear is executive editor of Minnesota Valley Business. Contact him at jspear@mankatofreepress.com or 344-6382. Follow him on Twitter @jfspear.

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Local Business People/Company News

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Bolton & Menk in top 200

The annual ranking of the Top 500 Engineering Design Firms was released in the May issue of Engineering News-Record. This year Bolton & Menk broke into the top 200 firms in the country, jumping 24 spots to No. 179. Bolton & Menk has continued their ascent on the list for the last 20 years. Bolton & Menk provides services in the areas of civil and municipal, water and wastewater, water resources, traffic, and transportation engineering. The firm also provides protective coatings, environmental review, land surveying, GIS mapping, landscape architecture and funding assistance services. They have a staff of more than 400 professionals and technicians in 15 offices. Having a corporate office in Mankato, the firm also operates

offices in Baxter, Burnsville, Chaska, Fairmont, Maplewood, Ramsey, Rochester, Sleepy Eye, and Willmar; Ames, Des Moines, Jefferson, and Spencer, Iowa; and Fargo, North Dakota. ■■■

Hy-Vee’s Hanson honored

Grocer y industr y representatives from the United Fresh Produce Association and Dole Food Co. visited the hilltop Hy-Vee last month to recognize Dan Hanson as a 2016 United Fresh Produce Manager of the Year honoree. The United Fresh Produce Association honors 25 of the industr y’s top retail produce managers for their commitment to fresh produce, original merchandising, community service and customer satisfaction. Hanson is known for innovation

MN Valley Business • June 2016 • 5

and his ability to keep his department full of variety and fresh products. In June he will travel to Chicago to attend the United Fresh Produce Association’s annual show, where five of the 25 winners will be announced as grand prize winners.

Century 21 Landmark adds 3

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Coldwell gets national honors

The Coldwell Banker Commercial Global Conference in Orlando honored the Fisher Group of Mankato with three global awards: No.1 sales professional in Minnesota, No. 2 franchise office in the Midwest (10 state region) and No. 2 franchise office in Minnesota. ■■■

Darren Bruns

Shawn Price

Centur y 21 Landmark Realtors added three people to its Mankato office and three employees have received awards. Prior to joining Landmark, Al Waggie Darren Bruns worked for 11 years for a retailer/ builder of modular/manufactured homes. Shawn Price specializes in commercial real estate. He has experience in real estate, residential and commercial

estimating, leasing, sales and management. Al Waggie has been a real estate agent since 2000. Century 21 Landmark also announced that Jon Kietzer has been honored with the MultiMillion Dollar Producer Award. Stacey Williams received the Quality Service Producer Award and Tamara Mulligan was awarded the Quality Ser vice Pinnacle Producer Award. ■■■

Fast gets ag mentor award

Mankato resident Terri Fast was among the three recognized as 2016 Outstanding Agricultural Mentors by District 11 AgriWomen. The honor recognizes people who have ser ved as mentors for women in agriculture. Fast, a principal content specialist for AgStar Financial Services, was honored for being an influential mentor to numerous women across the state of Minnesota. She has led AgStar’s Women in Ag blog writers group since 2013. She was nominated by

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Business Commentary

By Dean L. Swanson

Technology can help create a connected customer experience

arketing is getting more complex for the small business CEO. In an earlier column, I suggested that “cognitive technologies change the way businesses engage with customers.” I am going to respond to some emails that I got regarding that topic. One said, “Can you give me an example?” OK, I will give you one that will make you say “huh!” Business CEOs must embrace cognitive commerce capabilities as well as new strategies and tactics that allow them to see patterns and make unlikely connections — connections beyond human imagination — and create serendipitous moments for customers. Here’s an example of how we can make better recommendations based on personality, needs, values and emotions. Imagine that you’re traveling for business. Your airline misplaces your luggage and

8 • June 2016 • MN Valley Business

you’re stuck in a foreign city with no business clothes to wear to your meeting, which is only two hours away. So you post a message on your social profile asking your network for recommendations on where to purchase a suit. Meanwhile, a cognitive agent sees your plea for help and jumps into action. It automatically empathizes with you, sends an amenity package to you (free of charge!) and offers recommendations on where to go shopping for a specific outfit based on your personality traits, as well as needs and values. This is the power of cognitive commerce. It can fuel a company’s transition from delivering customer service to servicing its customers. But the challenge is that people’s feelings, preferences and attitudes can change with the click of a mouse or a tick of the clock. Maria Winans, CMO of IBM Commerce and Social

Division sums it up this way, “With cognitive technology it’s possible to create unbreakable bonds with customers, understanding them in the moment and responding immediately with relevant, personal engagement by: • Understanding what individuals really want, maybe even before they know it. • Identifying the perfect moment. • Layering in nuances of tone, sentiment, emotional state, environmental conditions and personal relationships for deeper human engagement.” As customer expectations have increased so has the complexity of the business environment — more channels, more devices, more solutions and more data. In some companies, marketers work within more than 30 different systems. For businesses to react to customers in the moment, it’s critical to have the ability to easily connect data stored in those solutions — and across all channels — for a single, complete view of customer data. For instance, you might take what a customer is doing in Facebook and act on that data in another application, such as a paid advertising channel. Winans continues, “The requirement to deliver a connected customer experience is calling on leaders and practitioners to increase their mastery in 2016, blending art and science to expand the boundaries of what is possible. Cognitive capabilities uncover new insights, reveal patterns and make unlikely connections beyond human perception.” Access to an endless universe of information

“With cognitive technology it’s possible to create unbreakable bonds with customers, understanding them in the moment and responding immediately with relevant, personal engagement by” Maria Winans, IBM unlocks equally endless possibilities. That’s the power available to help leaders humanize transactions with a smile and a handshake, online or in-store, and engineer “moments of serendipity” for customers, those “you read my mind” moments that create unbreakable bonds and brand advocacy. MV Dean L. Swanson is with Southeast Minnesota SCORE and a volunteer mentor and regional vice president. www.seminnesota.score.org

MN Valley Business • June 2016 • 9

Brian Stark of B Stark & Co. often donates printed shirts and other clothing to local nonprofit groups.

Giving back Businesses key to support of local nonprofits By Tim Krohn Photos by Pat Christman

rian Stark and his employees screen print and embroider a lot of T-shirts, hats and other clothing at B. Stark & Co. in Mankato. Routinely, the clothing coming off the printers and machines aren’t going to paying customers but are donated to local groups. Stark said he likes giving back to them. “We get to see the local flavor and what people are

doing in Mankato and what people are trying to do for Mankato rather than something on a national level,” Stark said. “It’s a good way to be involved in the community.” Nancy Zallek, executive director of the Mankato Area Foundation, said the many nonprofits in the region are dependent on the support of business and she said that support

Cover Story

10 • June 2016 • MN Valley Business

Stark’s screen printing and embroidery shop. comes in many forms. “It’s all over the board – there’s time, talent and treasures.” While all nonprofits need money – the treasures – to provide ser vices, they are equally dependent on the time and talent of the business community. “Some businesses are incredibly generous donating employee time, their time, inkind contributions. Many nonprofits are dependent on our committees and boards of directors. I have seven committees and a board of 23. They’re filled with professionals of all different types that work for companies willing to give them up for a certain number of hours a certain number of days,” Zallek said. Providing the exper tise nonprofits need is a big focus of the giving philosophy of Eide Bailly. Jenn Faust, marketing

coordinator in the Mankato office, said the company launched an official corporate responsibility program in all of its 29 offices in 13 states.

“We get to see the local flavor and what people are doing in Mankato and what people are trying to do for Mankato rather than something on a national level,” Stark said.

“It allows us to make sure we divide our time, talent and treasure in our whole corporate structure.” The accountants at the firm

often use their expertise to serve as treasurers or financial advisers to nonprofits and the company encourages its employees to donate their time in a variety of efforts. “We look at where our employees’ passions lie. When the Backpack Food Program started, it resonated loudly with our team, I think because a lot of us have children in the school system and it tugged at our hearts thinking that could be our kids.” Once a month we take a team of 10 to pack backpacks. We have a program where if you pay a certain dollar amount, you can wear jeans on Friday and that money all goes to the Backpack program,” Faust said. The employees also volunteer with Habitat for Humanity, the Salvation Army to ring bells and with other groups.

MN Valley Business • June 2016 • 11

She said business support comes in many forms, including sponsorships, time, expertise and money. “I think businesses go at it in multiple ways. Businesses join in the United Way drive and want 100 percent employee support. Others do PTO for employees who volunteer,” DeBates said. “We’re lucky here. We have a ton of nonprofits and companies trying to make this a livable place.”

How to go about it

Jenn Faust, marketing coordinator for Eide Bailly in Mankato. Mandy Hunecke, executive director of LEEP, said that kind of hands-on volunteerism is a key to help run all of the leisure and sports leagues LEEP operates for people with intellectual and developmental disabilities. “We have an outreach and development person who goes out and does a lot of networking at community events. With our small staff it’s difficult to do that networking, but we work hard on building community relationships,” Hunecke said. “We’ve been great at getting college students involved with our programming and networking with GMG and campus job fairs

and other events.” Cate DeBates, who formerly worked for a local nonprofit and is now associate director of alumni relations and special events at Minnesota State University, said the idea of building relationships – often referred to as “development” work – is important for groups. “Whether it’s MSU or any charity looking for support, it’s not a sales pitch; it’s development and it’s relationships,” DeBates said. “If a business wants to give back, it has to be a passion of theirs and something they’re committed to.”

12 • June 2016 • MN Valley Business

For many small or new businesses, having a philanthropy plan is often an afterthought. “Early on we kind of made decisions on an emotional level and not what was really practical for our business,” said Stark, who started in downtown Mankato in 1988 before moving to a new building on the hilltop in 2004. He said that over the years he began to specifically budget for charitable donations. “If you budget and plan for it, it lets you really look at what things you want to get behind and support and to prioritize. It removes it from just reacting emotionally.” And Stark spreads that budget out more or less evenly over the coming year. “That gives us time to look at how we’re doing as a company. If by August or September we’re having a really good year, we can make some adjustments and give more. You don’t know how the year’s going to be in January.” He said part of how he prioritizes where to give is to see what local charitable efforts his staff of about a dozen people is interested in and passionate about. Stark often prints T-shirts for groups having a fundraiser, with the group’s name on it. Often he prints or embroiders clothing that is given away as prizes or sold at silent auctions. Last month he donated shirts emblazoned with the words “Community Cup for a Cause” to local coffee shop staff when they were donating coffee sales to MRCI. “They let us put our logo on the shirt too, so in cases like that we get some exposure and

“We’re lucky here. We have a ton of nonprofits and companies trying to make this a livable place.”

it’s a win-win for both of us.” Stark said it’s always tough to say no to a group. “We get approached a lot because of what we do. We try to do as much as we can, but sometimes you have to make some choices.” Unlike some smaller businesses, Eide Bailly has a very specific and expansive corporate responsibility program that encompasses giving but also areas such as being environmentally friendly. “We’ve always been big supporters in our communities and our offices designated a large chunk of their budgets towards that, but we wanted to formalize it,” said Faust about their program that took effect a couple of years ago.

Their 80 Mankato employees are encouraged to be active in the community. “It stems from our higher-ups and they set the tone to get out and give back to the community. We rarely say no to anything.” She said that Mankato has a lot of solid and worthy nonprofits, and there is little concern that dollars or time donated to any of them will be wasted. “That might be a concern in a very large city but we’re in a size city where you sort of know everyone, and our organizations are good at keeping the community abreast of what they’re doing in the community.” Businesses that want to check out a nonprofit in more detail can go to online sources, including GuideStar.org, which has detailed information on many charities, including their 990 Forms and a list of board members, overhead expenses and other details.

Role of charities

While businesses need to make their plan for how to approach charitable giving, charities need to ensure they have things in place to seek out and maintain support from businesses. Hunecke said LEEP has been working more consciously on developing the kind of relationships that bring that long-term support. “Our philosophy is to get them involved in programming first. If they can see the impacts directly that they’re making, they will want to support what we’re doing.” They have teamed up with the MoonDogs, Consolidated Communications, the Knutson+Casey

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Mandy Hunecke is the executive director of LEEP law firm and others in recent years. just treading water.” “They’re helping by supporting us financially, but Zallek, of the Mankato Foundation, said one thing they’re also helping by making us better and teaching that’s affected local charities is that many longtime us things. We don’t have a locally owned companies changed lawyer on staff so to have legal hands and are now owned by advice is important.” corporations outside the area. “They’re helping by The MoonDogs and “Local ownership obviously has a supporting us financially, Knutson+Casey also have a big impact on philanthropy. There’s a program where a LEEP athlete genuine investment in the community but they’re also helping is highlighted at each — they live here, work here, have by making us better and MoonDogs game. their families here — so they have a She said LEEP has been more real investment in the community.” teaching us things. We focused on its donors because Still, she said, companies — the program has grown wherever they’re based — are more don’t have a lawyer on dramatically. “We have over 900 interested in community investments. staff so to have legal people participating today “Philanthropy is really important to compared to 700 a few years the millennials being hired now. They advice is important.” ago. There was two full-time really want to work for a company staff and now it’s up to four. It’s that has a purpose and companies are great to be growing, but you have to be able to support realizing that.” it. We can’t provide more services for people if we’re Zallek said that while money is always needed,

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nonprofits are eager for in-kind donations. The foundation recently moved into a renovated building downtown that shares space with other nonprofits. “When we did the shared-space office, there was a lot of in-kind donations. For businesses that maybe can’t give a lot financially, they can give that way and it makes a big difference.” She said Consolidated Communications donated technology to the new office. “That’s a $25,000 savings. It’s not a check, but it’s as important as a check.” MV

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General Manager Jane Schwickert, right, and Karen Borresen-Berg, event and marketing coordinator.

A spirited anniversary Chankaska offers line of spirits By Nell Musolf Photos by Pat Christman

hankaska Creek Ranch and Winery just celebrated its fourth anniversary by introducing something new: a line of spirits. “We’ve been working on making spirits of our own for quite a while. We will be offering whiskey, gin and brandy in our tasting room along with our wines,” said General Manager Jane Schwickert. She said the release of spirits has been

highly anticipated by everyone who works at the winery and guests. Spirits are sold by the glass, as a tasting and in 375 ml bottles. Larger bottles will be available for purchase in liquor stores. Chankaska entered into making distilled spirits in order to use its production facility more efficiently and allow greater diversification and to expand their brand. “We also decided to get into spirit making

Cover Spotlight

16 • June 2016 • MN Valley Business

The new line of Ranch Road spirits is the latest addition to the Chankaska Creek Ranch & Winery. because we’re the only winery in the region to do that,” Schwickert said. “It gives us a competitive edge. It’s a big change for us but it’s also exciting.” Since opening in 2008, Chankaska Creek Ranch and Winery has become known throughout the region for producing quality wines and in 2015 was named Best Minnesota Winery by the Star-Tribune newspaper. The winery is located off Highway 22 between Mankato and St. Peter, nestled against the gently rolling hills of the Minnesota River Valley. It covers 25 acres of land where 11 acres are used to grow grapes hardy enough to withstand Minnesota’s often harsh climate. In addition to the grapes that the winery produces, grapes from California and Washington State are imported for the winemaking process as well.

Sprawling winery

In addition to the vineyards there is also the original farmhouse built in 1864 and now the home of Chankaska’s winemaker, Mike Drash, on the grounds of the winery. Then there is the 11,000-square-foot winery and tasting room where visitors can sample wines as well as enjoy antipasto, pizza or dessert. There are also six other spots at the winery where events can be held from intimate parties to corporate celebrations. “We can host events from five to 10 people up to 250 or more,” said Karen Borresen-Berg, Event and Marketing Coordinator. “We host events all year round and have a wedding here almost every weekend from June through October.” Besides the tasting room, another indoor location is North Forest Krem Peppermynte is a new wine based cordial offered this summer.

MN Valley Business • June 2016 • 17

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the Barrel Room, an impressive space filled with oak barrels that can be used for either a seated dinner or a cocktail reception. Moving outdoors, there is the Chankaska Tasting Patio where guests are able to warm themselves around a fire pit as they warm their palates with wine. Chankaska Creekside is a venue that is located next to the creek that gave the winery its name. There a 40 by 80 foot air-conditioned tent is set up during the summer months for weddings, anniversaries or any other celebration. Chankaska Forest that provides a casual spot for smaller gatherings. Chankaska Court is a space where guests can play games such as croquet during their get together. The most private spot at the winery is Chankaska Field, tucked on the vineyard’s hilltop and allowing visitors a view of the Minnesota River Valley that is not often seen. “We have many places where our guests can enjoy themselves and our wines,” Schwickert said. “We host a lot of events at the winery. Lots of weddings and fundraising events. We also have

live music in our tasting room every Friday and Saturday night.” The live music ranges from R and B to soul to country to folk with local groups from Mankato and other towns in the area to acts from the Twin Cities. “We bring in high caliber musicians,” Borresen-Berg said. “We bring all different kinds of acts to the winery because we want to offer our guests a choice.” Giving guests ample choices whether it be it in wines or music or appetizers is something that Chankaska Creek excels at. “The winemaker is in charge but Kent (Schwickert) and I always have input,” Jane said. “We can disagree quite often but generally the consensus will rule. Our winemaker has over 20 years of experience in the Napa Valley. He knows how to make exceptional wine.” In addition to winemaker Drash, Chankaska Creek also employs an assistant winemaker, a grounds and vineyard manager, tasting room manager, event manager and three salesmen as well as the 30 plus employees who keep the

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tasting room and events running smoothly. “Our sales team has our wine in almost every liquor store in Mankato and St. Peter. They’ve put our wines in over 250 locations including liquor stores in the cities and into many restaurants. They do a great job,” Schwickert said.

Listening to customers

Chankaska makes red, white and rose wines that can be sweet, semi-sweet, off-dry and dry. One of the goals of owners Kent and Jane Schwickert is to offer wines that will be enjoyed by every type of wine connoisseur. “Something that is very important to us is that we listen to what our customers want,” Schwickert said. “For example, a while ago we made an apple wine that was delicious but we learned that our guests didn’t think it was sweet enough. We worked on that until we came up with an apple wine that was much sweeter—and still delicious.” Schwickert said that feedback

“What our customers think of our wine and what they want is so important. We want everyone who comes here to have a good experience,” Schwickert said. “We want everyone who drinks our wine to enjoy it.”

comes from the wine tasting room management who ask questions to the guests who are sampling wine and who listen carefully to the responses they get. Feedback also comes from the sales representatives who hear how Chankaska wines are received in restaurants and liquor stores. “What our customers think of our wine and what they want is so important. We want everyone who comes here to have a good experience,” Schwickert said. “We want everyone who drinks our wine to enjoy it.”

With summer here, the winery can expect an uptick in guests with many events planned for the warmer season as well as more visitors looking to enjoy a glass of wine while enjoying the scenery. “We hire more people during the summer months but not as many as we used to,” Schwickert observed. “Most of our employees want to stay and that’s what we want. We want them to grow with us.” In addition to introducing spirits to the winery, other new products will be making an appearance over the summer. One of the newcomers is Peppermynthe Krem, a wine based cordial, the follow-up to North Forest Valnot Krem—a walnut cordial. Four Oak Red, a Super Tuscan Blend, will soon be joining the ranks at the winery. When asked if she ever gets tired of wine, Schwickert thought for less than a moment before shaking her head. “No,” she said with a laugh, “I never get tired of wine.” MV

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MN Valley Business • June 2016 • 19

Rachel Carpenter, executive director, left, and Brooke Olson, director of operations of Water’s Edge.

A different approach to elder housing By Heidi Sampson | Photos by Pat Christman

ater’s Edge in Mankato is the state’s first Green House elderly home – based on the philosophy of the Green House Project, an Arlington, Virginia-based nonprofit that seeks to make senior residences more like houses and less like the medical institutions that nursing homes now resemble.

Water’s Edge was opened by Brad and Heather Bass in late 2014, using the Green House model of care which aims to give control, dignity, and a sense of wellbeing to elders, their families and direct-care staff. Brooke Olson, director of operations at Water’s Edge, and Rachel Carpenter, executive

Profile

20 • June 2016 • MN Valley Business

The sunroom at Water’s Edge director, say they work hard to maintain a high quality of life for residents. “The owners of Water’s Edge have a background in senior and long term care,” Olson said. “They had a vision of wanting something in Mankato that offered a higher level of assisted care, but in a non-institutional setting. They could see that there was a need and a shortage of places that offered quality care for end of life, and yet was not the traditional institutional setting. “Water’s Edge isn’t a skilled nursing facility or nursing home, but our staffing structure is high enough to provide that level of care, as well as our building structure. We are a double secure unit, so we can be considered a memory care facility while maintaining a feel of home and not an institutional feeling.”

Home away from home

Water’s Edge follows the standards of the Green House Project, which includes a specific architectural design to ensure an environment that looks and feels like a real home. The Green House trademark means that the homes meet and maintain key standards, including small size, home layout, advanced staff training and a low staff ratio. “At Water’s Edge, we have three homes with 12 elders to a home,” Carpenter said. “Each of our homes has a very open feel to the layout. When one walks through the front door, there is the hearth area – the heart of the home, which opens to a dining room and kitchen. There is also a sunroom. The main house is outlined with suits; each suit contains its own private bathroom. Ten of our suits are private and one is a

deluxe suit, which is more for a couple.” The dining room has a large table to allow for family style eating, as the staff also sits down and eats with them. The open kitchen allows for easy access, as well as assists in giving those who live there the natural cues of a day, such as being able to see, hear and smell activity in the kitchen, which can get lost when the kitchen is kept hidden. The breakfast bar allows elders to watch, participate or share their own experiences while being a part of.

The shahbaz approach

“Each home has its own team of Shahbaz within the home,” said Olson, “which is another word for a universal healthcare employee. Actually, a Shahbaz is a Green House term for an ancient legend where a royal flacon watched over the elderly with compassion. All of our Shahbaz are trained to provide ADLS and meaningful engagements or activities. They can cook, do laundry, and keep the house clean.” The home has a nurse team, which means they have nurses on the floor 24 hours a day. There is also a house manager and a maintenance person. “Water’s Edge does not have a hierarchical feel to it, as everyone works together to provide the care our elders’ need,” Olson said. “So those who live in our homes, really get to know all of our staff, as does our staff of those who live there.” Water’s Edge also partner with Hospice, in which the hospice unit will come in and provide for their needs, while Water’s Edge also assists with their end of life needs. Personal belongings are allowed at Water’s Edge for all who live there, but especially for

MN Valley Business • June 2016 • 21

those ending life. They receive a private room, and the family is allowed to stay at the home as well. “We have all ages and care levels within our homes,” Carpenter said. “It’s important to note that this setting has proven to lower the anxiety level and behaviors for those with dementia and Alzheimer’s. We allow them to wake up and go to bed on their own time schedules. They can have their daily cares done as they are used to doing them. So, if an elderly woman showered at 11 p.m. every night of her life and slept in the next day, she can do so here too. We tailor the care to plan to be the way they’ve always had it, which is a lot less stressful for the individual.” Carpenter and Olson said they also strive to bring services a person may need so family members don’t have to worry about it. That includes doctor appointments and bringing in hearing specialists, podiatr y, music therapy and other services. Activities are tailored to what individual elders want, with the activity schedule flexible. In the future, Water’s Edge will be expanding to Janesville and Hanover. People can watch an online tour of Water’s Edge online at watersedgemn.net. “Overall, I enjoy seeing the positive impact this environment has on elders who live there. We’ve seen elders who have struggled in the nursing home environment improve significantly in our care. That alone, speaks volumes as to this type of care,” Carpenter said. MV

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The Employment Outreach Collaboration was formed to connect employers and job seekers by developing tools, resources and leadership to promote working in greater Mankato. A wide variety members from business, education and government are members of the group. Each month in MN Valley Business the collaboration is running articles for employers and job seekers.

Ways students can get a leg up in job market By Employment Outreach Collaboration

nternships/ Summer Help

South Central College partners with employers to provide student internship opportunities. Internships offer students numerous benefits: They gain experience, develop skills, make connections, strengthen their resumes, learn about a field, and confirm their interest and abilities. Students are required to work 48 hours for each credit of internship taken. The intern will conform to the rules and regulations of the internship site and work with the instructor to ensure internship requirements are met. Summer internships are a great way for students to get their foot in the door for a chosen career path, earn money and gain real working experience.

each opportunity and a contact person with an email or a phone number. The Salvation Army is always looking for volunteer, especially during the holidays. Another rewarding place to volunteer is the American Cancer Society, providing transportation for cancer patients to and from appointments. There are many more types of organizations that are also looking for volunteers.

New Talent Link

Volunteer Organizations

In addition to volunteer student organizations on campus, there are a plethora of volunteer organizations in the Mankato region. The website www. volunteermatch.org is a wonderful site to visit and has lists of volunteer opportunities in the area. There is information on

Ser vice Learning

Students and instructors also collaborate with community organizations to provide service learning opportunities. These opportunities are designed to help students apply a wide range of skills, while developing habits of active citizenship. Through these activities, students develop a deep understanding of the work and their place in it. Another area of service learning is the opportunity for South Central Collegeâ&#x20AC;&#x2122;s students to travel and study in a foreign country. It encourages students to take advantage of opportunities to see and learn about different cultures and countries. Each year, students travel to different regions, meet with people of that area and take away lifelong memories.

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MN Valley Business â&#x20AC;˘ June 2016 â&#x20AC;˘ 23

Work study provides jobs at a minimum of $9 per hour for students with financial need who want to earn part of their education expenses. The hours a student may work depends upon the student’s need, class schedule, and the job. Jobs are located oncampus and off-campus with a public or private non-profit agencies which have made arrangements with the college.

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The Federal Government and the Office of Higher Education fund work study programs. Funding to South Central College students comes in the form of a paycheck for hours worked in a designated work study position. It is the intention of the program that students use the income they earn from their work study position to pay any outstanding billing and to help them pay for their living expenses. Work study funding is the only financial aid program that funding goes directly to the student without paying toward the student’s billing first. Students will receive a paycheck on a bi-weekly pay schedule. Work study provides jobs at a minimum of $9 per hour for students with financial need who want to earn part of their education expenses. The hours a student may work depends upon the student’s need, class schedule, and the job. Jobs are located on-campus and offcampus with a public or private non-profit agencies which have made arrangements with the college. Part-time work study employment is also available during the summer. Whenever possible, students are assigned to positions in their major field of study or interest. First priority for these positions are given to students having financial need, who apply by May 1 and indicate work study on their FAFSA application. MV

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Dan Sachau is director of the Organizational Effectiveness Research Group at MSU.

The right fit MSU’s OERG travels the world By Nell Musolf Photos by Pat Christman

any people don’t know that there is a powerhouse at work at Minnesota State University. The Organizational Effectiveness Research Group (OERG) occupies a group of comfortable, attractive and completely business like offices in the Wieking building located on the edge of the MSU campus. Still, it comes as somewhat of a surprise to realize that from such an unassuming atmosphere has sprung a graduate program that literally travels the world for its many clients. What started out locally has grown globally and no one could be more pleased

about that growth than OERG’s director, Daniel Sachau. “We first started when the industrial psychology department was approached by some local folks who needed help with a variety of problems,” Sachau said. “From that beginning we have really grown, especially over the past five years when things have just blown up.” Along with Sachau are three other faculty members: Lisa Perez, Kristie Campana, and Andrea Lassiter. Sachau said that the four faculty members act as the primar y consultants on each project while the

Feature

26 • June 2016 • MN Valley Business

Students Tiffany Ackerman and Ryan Powley in the OERG offices. graduate students are the project managers. “We get things rolling and then the students take over,” Sachau said. “It’s great to have that kind of autonomy. Typically our graduate students assist during their first year and run things during their second. They get a lot of hands-on experience here before they graduate.”

The right candidates

Some of the services that OERG provides for business include focus groups, engagement surveys, organization culture assessments and work-life balance assessments. “People hear ‘industrial psychology’ and tend to think that we deal with mental health issues when in actuality our focus is on normal, healthy people in the workplace. We always joke that we do have couches in our offices but they are to sleep on, not for therapy,” Sachau said. “One of our defining features is not on mental illness but on mental health.” Finding the right employee for a position before he or she gets hired is simply good business. According to Sacchau, hiring the wrong fit typically ends up costing a business one and a half to three times that employee’s yearly salary. It also costs the company in time. “What people don’t realize is how expensive it is to recruit and train new employees. By screening applicants beforehand, a company can save a significant amount of money by hiring the person who is the best fit for the position,” Sachau said. OERG has worked with companies ranging from small theater groups to the military as well as many high ranking government offices. One recent project was for the Illusion Theatre in Minneapolis. The theatre’s owners hired OERG to conduct a study of

culture transfer process. “The theatre had been run for 30 years by a couple who wanted to make sure that the culture they had created was passed on to the next generation and they wanted to figure out the best way to do that,” Sachau said. After analyzing the project, Sachau and the student in charge decided that making a film about the history of the Illusion Theatre would be an effective way to show the theatre’s culture. “We figured that a film, especially for a theatre group, would be much more likely to be looked at as opposed to a long written report. It worked out very well and we all had a lot of fun,” Sachau said. “I also think the film will be an excellent record of the Illusion Theatre’s culture.” While each job is different, the goal is almost always the same: to help employers find good employees and also help job applicants find jobs they will like.

Work life balance

“There has been a shift in attitude when it comes to the workplace,” Sachau said. “People want to have a greater work-life balance than they have in the past. People want to be productive but they also want to have a life outside of work as well.” Employee engagement is another buzzword that seems to be heard more and more lately. Sachau said that employee engagement is the new term for employee satisfaction and that companies are searching for ways to ensure that their employees are satisfied while at work. OERG helps customers achieve their goals by providing data-driven, customized solutions, conducting workshops and teaching short courses. The master’s program has been ranked number one

MN Valley Business • June 2016 • 27

in the nation by a national ranking based on student satisfaction. Although the group doesn’t spend a dime on advertising, it has enough projects to keep it busy well into the future. Since OERG is based in MSU, it has the luxury of not having to charge as much for its services as other consulting firms might. “We truly have a win-win situation,” Sachau said. “The faculty doesn’t take any money from projects since we are paid by the university. There is no extra cost to the taxpayer. The fees that we receive are put into travel expenses for the students and to support student development which has really been beneficial for our graduate students.” Sarah Welsch, a second year graduate student in the OERG program, agreed that being able to travel so much as a student has been an exceptional experience. “We love it,” Welsch said. “We are able to get experiences that we probably would never be able to have had otherwise.” The OERG students and staff have recently visited Germany,

“We love it,” Welsch said. “We are able to get experiences that we probably would never be able to have had otherwise.”

Iceland, Dallas, Los Angeles and Washington, D.C. to meet with clients. All of the travel has paid off as the students in the program are currently in a “red hot” hiring phase. “I’ve never seen anything like it,” Sachau said. “The graduating students are getting multiple job offers from all over. It’s great.” Up next for OERG is an assessment center where clients can spend two days experiencing an intense workshop that will include such things as a series of inter views, role playing and multiple developmental needs assessments.

“One area the assessment center will make a big impact is on first time supervisors,” Sachau said. “The people who have been on the line forever and now they have to be the boss. We will focus on their strengths and where they need to grow and we’ll be able to tell them, ‘here are the 10 most irritating things that you are going to face.” Welsch added, “It’s often hard for someone who has been a regular employee and who has been promoted to a supervisory position to make the change. They have to learn about their leadership style and we help them do that. The people who attend will learn a lot about themselves and this will all be done with a spirit of helpfulness.” When all is said and done, that spirit of helpfulness is at the core of OERG. “We are all about preventing bad fits,” Sachau said. Nobody wants to fail. It’s our job to help them create a culture of conscientiousness so that failing is a lot less likely.” MV

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Business and Industry Trends

Retail/Consumer Spending

■

Energy

Crude volatility decreases

During the first three months of 2016, crude oil prices were relatively more volatile than in recent history. This elevated volatility occurred when overall oil prices were low, and volatility was driven by high uncertainty related to supply, demand, and inventories. Crude oil price volatility has declined since its peak in March. Prices have risen as concerns about future economic growth have abated and as inventory growth has slowed since the start of the year. The 30-day measure of oil price volatility (calculated as the standard deviation of daily percent changes in crude oil prices over the previous 30 trading days) reached a high of 45 percent on March 4 before falling to 33 percent on April 18. Volatility levels in March were the highest since early 2009, when crude oil prices were falling in response to the financial crisis and to a drop in demand for petroleum products. The recent decline in oil prices resulted in volatility levels closer to the 2015 average of 27 percent. Volatility often reflects market uncertainty about both the current and future value of a commodity. Daily volatility is often driven by the release of new economic or supply information, changes in market expectations, or unanticipated events that can cause large price adjustments. Some reasons for volatility in crude oil prices include uncertainty about: • Future production levels in key oil-producing nations • Global economic growth, particularly in China and other emerging market economies • Growth in U.S. gasoline demand following higher consumption levels in 2015 • Crude oil inventories and storage capacity constraints

Gas costs to stay low

During the April-through-September summer driving season, U.S. regular gasoline retail prices are forecast to average $2.04/gallon, compared with $2.63/gal last summer. For all of 2016, the forecast average price is $1.94/ gal, which if realized would save the average U.S. household about $350 on gasoline in 2016 compared with 2015, with annual average motor fuel expenditures at the lowest level in 12 years.

Renewables up

Total renewables used in the electric power sector should increase by 10 percent in 2016 and by 5.1 percent in 2017. Forecast hydropower generation in the electric power sector increases by 8.8 percent in 2016 and then falls by 0.4 percent in 2017. Renewables other than hydropower are forecast to grow by 11 percent in 2016 and by 9.9 percent in 2017.

Vehicle Sales Mankato — Number of vehicles sold - 2015 - 2016

571

1200

788

1000 800 600 400 200 0

Source: Sales tax figures, City of Mankato

Sales tax collections Mankato (In thousands)

600

- 2015 - 2016

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

$389 $403

500 400 300 200 100 0

Source: Sales tax figures, City of Mankato

Lodging tax collections Mankato/North Mankato - 2015 - 2016 70000

$38,712 $35,546

52500 35000 17500 0

Source: City of Mankato

Mankato food and beverage tax - 2015 - 2016 175000 140000

$62,106 $58,500

105000 70000 35000 0

Source: City of Mankato

C. Sankey

MN Valley Business • June 2016 • 29

Construction/Real Estate Residential building permits Mankato

Residential building permits North Mankato

18000

4000

13500

3000

- 2015 - 2016 (in thousands)

$1,784

9000

$2,275 $417

2000

$4,366

4500

1000

Source: City of Mankato

Source: City of North Mankato

Information based on Multiple Listing Service and may not reflect all sales

Existing home sales: Mankato region - 2015 - 2016 275

174

220

122

Median home sale price: Mankato region - 2015 - 2016 (in thousands) $135,500 150 $140,000 120 90

165

110

55 0

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

— 2015 — 2016 5.5

- 2015 - 2016 40

5.0

4.5

3.7%

4.0 3.5 J

Source: Freddie Mac

Source: Cities of Mankato/North Mankato

Commercial building permits Mankato

Commercial building permits North Mankato

- 2015 - 2016 (in thousands)

- 2015 - 2016 (in thousands) $10.5 4000 $26.5

$1,301

12000

3.6%

3.0

$3,096

10000

3000

8000

2000

6000 4000

1000

2000 0

Source: City of Mankato

30 • June 2016 • MN Valley Business

Source: City of North Mankato

C. Sankey

Solar, wind grows

Gas Prices Gas prices-Mankato

— 2015 — 2016

5 4 $2.44

3 2

$2.02

1 0

Gas prices-Minnesota

— 2015 — 2016

5 4 $2.49

Ethanol output flat

2 $2.05

1 0

Utility-scale solar photovoltaic power capacity should grow by more than 9 gigawatts in 2016, after growing by 3 GW in 2015. PV capacity is forecast to increase by an additional 1 GW in 2017. States leading in utility-scale solar capacity additions are California, Nevada, North Carolina, Texas, and Georgia. Forecast utility-scale solar power generation averages 1.1 percent of total U.S. electricity generation in 2017. Wind capacity, which starts from a significantly larger installed capacity base than solar, grew by 13k percent in 2015, and it is forecast to increase by 8 percent in 2016 and by 9 percent in 2017. In 2017, wind generation accounts for 5.6 percent of total generation.

D C. Sankey

Source: GasBuddy.com

April 15

May 11

Percent change

Archer Daniels Ameriprise

$37.30

Best Buy Crown Cork & Seal Consolidated Comm. Fastenal General Growth General Mills Hutchinson Technology Itron Johnson Outdoors 3M Target

$32.40 $51.14 $24.11 $45.81 $28.96 $62.45 $3.65 $40.06 $21.46 $168.79 $82.61 $41.10 $35.25 $1.95 $40.83

$38.33 $96.59 $31.60

+2.8% +0.2% -2.5%

$55.36 $24.96

+8.3% +3.5% +1.5% -5.4% +3.1% -4.1% +5.8% +16.1% +0.7% -7.8% +2.9% +8.5% 0% +1.4%

Stocks of local interest

U.S. Bancorp Wells Financial Winland Xcel

$96.42

$46.50 $27.40 $64.37 $3.50 $42.40 $24.93 $169.93 $76.16 $42.28 $35.00 $1.95 $41.42

Ethanol production averaged 966,000 barrels per day in 2015, and it is forecast to average between 970,000 and 980,000 in 2016 and 2017. Ethanol consumption averaged about 910,000 barrels per day in 2015, and it is forecast to average about 930,000 in both 2016 and 2017. This level of consumption results in the ethanol share of the total gasoline pool averaging 10 percent in both 2016 and 2017. There is not expected to be significant increases in E15 or E85 consumption over the forecast period.

Economy

Production falls

Total industrial production falls by 0.9 percent in 2016, but rises by 2.8 percent in 2017. Projected growth in nonfarm employment averages 1.7 percent in 2016 and 1.4 percent in 2017.

Exports rise some

Export growth is 1.6 percent in 2016 and 4.7 percent in 2017, and import growth is 3.2 percent in 2016 and 6.6 percent in 2017.

C. Sankey

MN Valley Business • June 2016 • 31

■

Agricultural Outlook

By Kent Thiesse

Land values pulled down by low crop prices

n March the Federal Reserve Bank in Minneapolis reported a decline in the average value of non-irrigated crop land of 3.5 percent in the north central states, compared to a year earlier. This included a 4.3 percent annual decline in farm land values in Minnesota, a drop of 4.6 percent in both Wisconsin and North Dakota, and a decline of 1.6 percent in South Dakota. Montana had the largest year-toyear decline, with a drop in land values of over 24 percent. These land value results were based on a survey of agricultural banks in the listed states, conducted by the Federal Reserve Bank. Many agricultural experts and economists have been warning for the past few years that we could be headed for a significant correction in farm land values in the Midwest. Based on recent data, there appears to be evidence that a reduction in average land values including the Upper Midwest. Much lower corn and soybean prices in 2014 and 2015 have resulted in significant reductions in farm income levels, thus putting downward pressure on average land values. In contrast to most other land value surveys, the USDA Land Value released in July, 2015 showed that average farm real estate values increased by 2.4 percent across the United States from June, 2014 to June, 2015. The USDA survey involves only producers, and includes the value of farmland, along with the value of buildings and improvements. The USDA survey did show an average decline of 1.1 percent in Minnesota farm land values, and a decline of 5.9 percent in Iowa. The USDA land value survey results are somewhat more optimistic than most other land value surveys, and more favorable

than analysis from most noted land economists. Iowa State University does a comprehensive land value survey each December, which is regarded as one of the best resources on trends in Midwest farm land sales. Following is a table showing the average value of Iowa farm land for the past 10 years (2006-2015), and the average percentage change in farm land values from one year to the next.

IOWA AVERAGE FARM LAND VALUES (2006-2015) YEAR 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

AVE. VALUE PER ACRE $ 3,204 $ 3,908 $ 4,468 $ 4,371 $ 5,064 $ 6,708 $ 8,296 $ 8,716 $ 7,943 $ 7,633

% CHANGE +10.0% +22.0% +14.3% (2.2%) +15.9% +32.5% +23.7% +5.1% (8.9%) (3.9%)

NOTE — This data is from the Iowa State University 2015 Farmland Value Survey.

Iowa farm land values rose at an incredible pace from 2000 to 2013, with only one minor decline in 2009, before more significant declines of 8.9 percent in 2014, and 3.9 percent in 2015. This was the first time that the Iowa land value survey has shown two consecutive years of decline since 1998 and 1999. The 2015 Iowa Farmland Value Survey showed a decline in land values in eight of the nine crop reporting districts, with the greatest decline at 6.7 percent in the north central district. Only the northwest district showed a slight increase of 0.7 percent in land values in December, 2015, compared to

32 • June 2016 • MN Valley Business

December, 2014. Trends in farm land values in southern Minnesota are probably fairly close to the trends shown in the Iowa land value survey, reflecting the lower crop prices, and tighter profit margins. Similar to Iowa, land values in portions of southeast and south central Minnesota have shown a greater decline than some other areas of the state, such as southwest Minnesota. Some isolated land sales across southern Minnesota have still been reported at fairly high values per acre; however, the overall trend in the past 18-24 months has been a decline of 1020 percent from the peak land values in 2013 and early 2014. One of the best sources of farm real estate values in Minnesota is the U of M’s “Land Economics” web site at: www.landeconomics. umn.edu. This web site is updated annually after September 30, and accesses a data base of various land values, based on farm land valuations reported to the state Revenue Office by county assessors’ offices throughout the state each year, which are adjusted annually based on actual land sales in a given county. This web site allows for selected sorts by county, state economic regions, watersheds, etc., as well as by types of land. Following are the average values per tillable acre for actual farm land sales for the past three years (2013-2015) in some selected South Central Minnesota counties, as well as the number of farm land sales in each of those years: NOTE --- Data is from the University of Minnesota “Land Economics” web site.

Some key obser vations on the south central Minnesota land sales data:

Agriculture/ Agribusiness

• Average farm land values declined in all counties from 2013 to 2015; however, there was a wide variation in the level of the decline. • Average land value declines from 2013 to 2015 were at lower levels in Watonwan and Martin counties, which benefitted from better crop yields in 2014 than most other counties in the region. • 2015 average land values have dropped below 2012 average land values in all listed counties. • The volume of land sales in 2015 was quite limited in most counties in the region, which may have an impact on the listed average land values. • This data seems to support a decline of 10-20 percent in the average farm land values across the region, from the peak real estate values in 2013. Record 2015 crop yields in many areas of the Upper Midwest, along with some im-provement in crop prices in the Spring of 2016, has seemed to stabilize land values somewhat during the first few months of the year. Most likely, the future trends in crop prices, along with the level of 2016 crop yields and livestock profitability, will determine if land values continue to stabilize, or if we see further declines in land values later in 2016 into 2017. An increase in interest rates by the Federal Reserve Bank in the next year or two would also likely have a negative impact on land values. The good news is that there still seems to be fairly good demand by both farm operators and investors to purchase land, especially when it drops to a certain level. MV Kent Thiesse is farm management analyst and vice president, MinnStar Bank, Lake Crystal. 507- 381-7960; kent.thiesse@minnstarbank.com

Corn prices — southern Minnesota

(dollars per bushel)

— 2015 — 2016

$3.33

6 4 2

$3.19

Source: USDA

Soybean prices — southern Minnesota

(dollars per bushel)

— 2015 — 2016

20 16

$9.36

12 8

$9.34

4 0

Source: USDA

Iowa-Minnesota hog prices

185 pound carcass, negotiated price, weighted average

— 2015 — 2016

100

$80.06

90 80 70

$72.90

60 50

Source: USDA

FARM LAND SALES SUMMARY (2013 – 2015) county Blue Earth Brown Faribault Le Sueur Martin Nicollet Waseca Watonwan

2013 2014 2015 # of Ave. # of Ave. # of Ave. Decline Sales $$/Acre Sales $$/Acre Sales $$/Acre (2013-2015) 43 33 21 18 26 23 19 14

$8,426 $8,366 $8,269 $6,113 $8,408 $9,682 $7,811 $7,976

19 30 29 22 20 10 12 19

$7,546 $8,064 $7,309 $6,582 $8,400 $8,219 $6,955 $6,966

12 5 27 6 7 13 10 4

$7,523 $6,765 $7,351 $4,614 $7,770 $8,467 $6,100 $7,574

( 10.7% ) ( 19.1% ) ( 11.1% ) ( 24.5% ) ( 7.6% ) ( 12.5% ) ( 21.9% ) ( 5.0% )

Milk prices

Minimum prices, class 1 milk Dollars per hundredweight

— 2015 — 2016 25 22

$17.30

19 16

$15.54

13 10

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

C. Sankey

MN Valley Business • June 2016 • 33

Minnesota Business Updates

■

■ ADM earnings take hit

■ Johnson Outdoors does well

Archer-Daniels-Midland reported weaker-than-expected earnings in the first quarter after its Swiss-based international trading desk booked a loss and the company grappled with lower U.S. grain-export volumes. Net income fell to 39 cents a share from 77 cents a share a year ago. Excluding one-time items, earnings were 42 cents, less than the 45-cent average of 11 estimates compiled by Bloomberg. The poor performance of the global trading desk, which made a profit a year earlier, was in part attributable to commodity-price moves at the end of March. ADM also has suffered as U.S. corn exports were less competitive than supplies from Brazil because of the stronger dollar, curbing results in the agricultural services segment, ADM’s business that buys, stores and transports crops. The unit, the company’s biggest by sales, and which also housed the global trading desk, saw operating profit fall 61 percent. While ADM’s sweeteners and starch business, part of the corn processing segment, had a “strong” performance, ethanol margins were lower.

Johnson Outdoors, the Racine-based manufacturer of Minn Kota motors, Humminbird fish finders and Old Town canoes and kayaks, posted a jump in fiscal second quarter profits on a more profitable sales mix and a drop in legal expenses. Johnson said it has reached a settlement with Garmin International Inc. over side scan sonar patent infringement lawsuits that Johnson Outdoors had filed against Garmin, according to the Milwaukee Business Journal. Under the settlement, Garmin agreed to license three of Johnson’s patents related to the technology. The agreement comes after the International Trade Commission affirmed that Garmin sonar product infringed one of the company’s patents. Johnson reported that net income for the quarter ended April 1 increased to $9.3 million, or 93 cents per share, compared with $3.6 million, or 36 cents per share, for the same period a year ago. Net sales increased 1 percent to $134.2 million from $133.1 million. The sharp increase in profits resulted from less legal expense and improved operations, along with an improved mix of sales, the company said.

■ General Growth revenues up General Growth Properties Inc.’s revenue rose 2

Employment/Unemployment Initial unemployment claims Nine-county Mankato region Major April Industry ‘15 ‘16 Construction Manufacturing Retail Services Total*

132 256 32 151 571

Local non-farm jobs Percent change ‘14-’15

136 210 47 116 509

+3.0% -18.0% +47.0% -23.2% -10.9%

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

Minnesota initial unemployment claims Major Industry Construction Manufacturing Retail Services Total*

March

128,015 128,595

133000 122000 111000 100000

Minnesota Local non-farm jobs

‘15

‘16

Percent change ‘14-’15

2,803 2,369 1,023 4,267 10,462

2,815 1,957 1,017 3,568 9,357

+0.4% -17.4% -0.6% -16.4% -10.6%

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.

34 • June 2016 • MN Valley Business

- 2015 - 2016

Nine-county Mankato region

(in thousands)

- 2015 - 2016

2,879 2,916

3000 2000 1000 0

percent in the first three months of the year as results beat projections. Shares, up 3 percent over the past 12 months, rose 3.4 percent to $29.60 in after-hours trading. The second-largest mall owner in the U.S. by number of properties, General Growth has been shifting its focus to high-end urban addresses like Manhattan’s Fifth Avenue and Chicago’s Michigan Avenue, according to the Wall Street Journal. It exited bankruptcy protection in 2010. Over all for the latest quarter, General Growth reported a profit of $191.8 million, or 20 cents a share, compared with $634.7 million, or 66 cents a share, a year earlier. The sharp drop in profit came as the year-earlier quarter was boosted by more investment propertyrelated gains. General Growth reported a $74.6 million gain from changes in control of investment properties in the first quarter, compared with a $591.2 million gain in the year-ago period.

■ Consolidated expands cloud Consolidated Communications has expanded its business cloud services to the market areas of Sacramento, Dallas, Houston, Kansas City, Mattoon, Illinois and Pittsburgh. Consolidated’s Cloud Services include Unified Communications, Cloud Compute, Data Protection and Cloud Wifi. “We are very excited to bring enterprise-class, cloud solutions to businesses of all sizes across our entire service area,” said Bob Udell, president and chief executive officer. “Our suite of cloud services will only continue to grow as we add to our portfolio and we will

continue to deliver on our strategy of helping businesses use technology to reduce their operating costs and improve efficiencies.”

■ Minnesota pipelines reviewed After 22 public hearings, long proceedings before the state Public Utilities Commission and a Minnesota Court of Appeals case, two proposed pipelines that would together carry more than one million barrels of oil per day across the northern part of the state find themselves again at the beginning of a long regulatory process. The Minnesota Department of Commerce recently held 12 scoping meetings across the state, according to Minnesota Public Radio. Public comment will help shape detailed environmental analyses of both proposed pipelines. The hearings were prompted by a Minnesota Court of Appeals decision last September. The ruling overturned a 2015 decision by the utilities commission to grant the proposed Sandpiper pipeline a so-called “certificate of need,” saying state regulators first needed to complete a full-blown environmental impact statement for the project. Calgary-based Enbridge has proposed two pipelines that would each stretch about 300 miles across the state. The Minnesota portions of both projects would cost around $5 billion, create thousands of construction jobs and contribute millions of dollars in local property tax revenue.

Employment/Unemployment Local number of unemployed

- 2015 - 2016

Nine-county Mankato region

(includes all of Blue Earth and Nicollet Counties)

6,291 6,368

8000

Mankato/North Mankato Metropolitan statistical area

6000

March

4000

Unemployment rate Number of non-farm jobs Number of unemployed

2000 0

2015

2016

3.3% 57,526 1,975

3.5% 58,661 2,147

Unemployment rates Counties, state, nation Minnesota number of unemployed 200000

- 2015 - 2016

135,243 139,593

150000 100000 50000 0

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

March 2015 3.5% 5.8% 5.4% 6.6% 4.8% 3.0% 5.5% 5.1% 5.9% 4.0% 4.4% 6.8%

March 2016 3.7% 5.5% 5.2% 6.6% 4.8% 3.3% 5.6% 5.6% 6.2% 4.0% 4.6% 5.1%

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

MN Valley Business • June 2016 • 35

Uncovering the Job Gap By: Amy Linde, Director of Marketing & Communications for Greater Mankato Growth

et me take you back to a place of much joy and deep anxiousness. Facing my last semester as a senior (second year) in college I was facing thee question, what next? Time for reality, a full-time “grown-up” job was hopefully coming my way very, very soon. But how was I going to find it? For an anthropology major I maybe should have dissected the career opportunities and employment potential a little further, but none-the-less I was determined to land a job as, get this - an archeologist.

COMMUNITY PROFILE DEMOGRAPHICS

Greater Mankato Growth

Most of my classmates who ended up working in the field took jobs states and states away, they did end up going anywhere for thee job. No matter if there was what they were looking for in a community. This was the norm. Fast forward a dozen years or so and the job landscape has taken a dramatic shift in how people and jobs are uniting.

REAL ESTATE

BICYCLE FRIENDLY

$163,300

BRONZE Level Bicycle Friendly

With the successful economic landscape in the recent years, coupling with the demographics of an aging workforce, have shifted the job game from being driven by the employer to

Power is seen in numbers, the more we all talk about the assets and lifestyle that is had here, the more we can work together to attract and retain the workforce that is needed to keep our businesses and economy flourishing.

36 • June 2016 • MN Valley Business

12 Minutes

Median value of owner-occupied housing units, with a mortgage

37,129

Number of housing units

Average commute to work

AGE Under 5 6% 6 - 17 15% 18 - 24 18% 25 - 44 26% 45 - 64 22% 65 and over 13%

AIRPORT Mankato Regional Airport

$1,337

Median monthly owner costs, with a mortgage

76 Miles

RACE/ETHNICITY White/Caucasian 94% Residents of Color 6%

Closest International Airport, MSP. There are four major airports within a 3 1/2 hour drive

The largest sector of residents of color are Latino/Hispanic followed by Black/African American.

PUBLIC TRANSPORTATION

SOURCES

Backgrounds

Residents hail from more than 26 different racial and/or ethnic backgrounds.

metropolitan statistical area (msa)

TRANSPORTATION

COMMUTE

Crazy? Yes. I would have gone anywhere, literally anywhere. Under consideration was taking a job helping to excavate bodies from mass graves in Iraq. The job description wrote “be advised that Iraq is a hostile, dynamic environment; extensive precautions are taken to ensure the safety of all personnel”. Not exactly glamorous or safe, but I saw it as interesting, a possible jump-start to a career and also really, really not where I wanted to be working at all. Luckily I was hired a week out of college full-time as an archaeological technician in Minnesota, no risky time in Iraq to get my career off the ground.

Mankato - North Mankato

Different languages are spoken here

Greater Mankato Transit System

Age, Ethnicity, Real Estate: Source: U.S. Census Bureau, 2010-2014 American Community Survey Languages: Mankato Area Public Schools Race/Ethnicity: Greater Mankato Diversity Council

Owners

Renters

There are 37,129 housing units in the Mankato - North Mankato MSA. Approximately 25,248 (68%) are owner-occupied and 11,881 (32%) are occupied by renters.

2.45

Average household size

Written, compiled and created by Greater Mankato Growth, 2016. For more information on Greater Mankato visit: greatermankato.com.

the employee. This is a nationwide trend being experienced right here in Greater Mankato. No longer is it common for employers to have heaping piles of resumes to review, making filling a position an easy task. Now we hear from employers, they cannot find the right talent in a timely manner which means they spend more time and energy to fill the vacant positions, if they end up filling them at all. With more jobs than ever before employees can now choose for themselves where they want to work more than any recent time in history, or possibly ever. Employees are not just looking for their ideal job but they consider many items

unique to them that add to their quality of life. From arts and culture, entertainment and food to education, health care and safety employees now look at the community – and the regionas a whole before deciding whether a job is right for them. Greater Mankato Growth (GMG) is in-tune to this shift and continues to proactively collect data and input to move our economy forward by providing information and resources that employers can use to put together and sell not just their business and job but also the experience of a potential employee and their family. As employers, you should utilize these tools to show off the vibrant and livable landscape that is Greater Mankato. Power is seen in numbers, the more we all talk about the assets and lifestyle that is had here, the more we can work together to attract and retain the workforce that is needed to keep our businesses and economy flourishing.

LIVE MUSIC | ENTERTAINMENT | LOCAL FOOD

Each Thursday in June, 11:00 am - 1:00 pm Civic Center Plaza, Mankato FREE Admission Lunch/snacks sold by local vendors

Trends change, but the shift in the current job attraction and retainment environment have no signs of slowing down. Data predicts that the days of the employer having piles of waiting and qualified candidates – without having to also sell the community and its assets, won’t be seen again until after 2030.

June 2 June 9 June 16 June 23

Holy Rocka Rollaz (Rockabilly, Early American) Pour Me Band (Rock, Country, Alternative) Barefoot Winos (Blues) Captain Gravitone & String Theory Orchestra

June 30

Dollys (70s, 80s, 90s Country, Folk Americana)

For more information and to utilize the recruitment toolbox please visit: greatermankato.com/toolbox

Presented By:

(Jazz, Blues, Rock,World)

An event of:

2016 Sponsors:

greatermankato.com/songs-lawn #KatoSongs

MANKATO

For more information contact us at: 507.385.6640 | info@greatermankato.com | greatermankato.com

updated June 2015

MINNESOTA

RURAL. URBAN. CENTER. YOUR PORTAL FOR

THE MIDWEST

Photo Credit: Rich Gemmill

2016 | A publication of Greater Mankato Growth, Inc.

Thank you to everyone that attended and presented at the 2016 Greater Mankato Business Showcase. We hope you learned something new about a Greater Mankato business or organization and had the chance to make some new acquaintances! Check out photos and a time lapse video here: greatermankato.com/business-showcase. Special thanks to our sponsor:

MN Valley Business • June 2016 • 37

Greater Mankato Growth

greater

Growth in Greater Mankato GROUND BREAKING

NEW LOCATION

GROUND BREAKING

Habitat for Humanity South Central - ReStore 1730 Bassett Drive Mankato habitatrestoremankato.org

Kato Insurance Agency 100 Warren Street, Suite 204 Mankato katoins.com

BankVista 1501 Adams Street Mankato bankvista.com

NEW BUSINESS

Regus 100 Warren Street, Suite 300 Mankato regus.com

Covered Bridge Furniture 500 Raintree Road, Suite 10 Mankato coveredbridgefurniture.com

Old Town Escape 403 North Riverfront Drive Mankato oldtownescape.com

Wealth Management Solutions 1930 Premier Drive Mankato

Greater Mankato Growth

Cavalier Calls on the Newest Greater Mankato Growth Members

Bounce Town, LLC 1860 Adams Street Mankato bouncetownmankato.com

Minneopa Golf Club 410 Pintail Street Mankato minneopagolf.com

St. Croix Hospice 1401 North Riverfront Drive Mankato stcroixhospice.com

Cavaliers REALTOR Association of Southern Minnesota 2115 Rolling Green Lane North Mankato rasminfo.com

38 • June 2016 • MN Valley Business

Partners for Affordable Housing 151 Good Counsel Drive, Suite 130 Mankato partnersforhousing.org

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MN Valley Business â&#x20AC;¢ JUNE 2016 â&#x20AC;¢ 39

Greater Mankato Growth

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CityArt Brings New Sculptures to City Center “Beaver” by Dale Lewis. Photo courtesy of the artist.

n Saturday, May 14, a group of volunteers, artists, and staff from Mankato, North Mankato, City Center Partnership and Twin Rivers Council for the Arts were out before the sun to install the 2016 CityArt Walking Sculpture Tour. Each year since 2011, a new group of sculptures has brought art to the City Centers of Mankato and North Mankato. Over the life of the program, the CityArt Walking Sculpture Tour has placed $1.7 million in rotating public art in the City Center’s public spaces and helped add 16 works to the permanent public collection. The 2016 tour includes 27 works formed from bronze, stainless steel and even a reclaimed Volkswagen Beetle! Approximately half of the statues were made by Minnesota-based artists; the tour also features artists from across North America. The tour has had a definite impact on Greater Mankato, instilling pride and excitement in residents and helping to draw visitors. Research shows that one of the hallmarks of a strong downtown is deliberate attention to and investment in arts, culture and the creative economy. We are lucky to have civic, philanthropic and business leaders who recognize that and who demonstrate commitment to programs like CityArt Walking Sculpture Tour.

The CityArt Walking Sculpture Tour is made possible each year by more than 50 financial and in-kind sponsors. Between now and October 31, community members are urged to vote for their favorite sculpture; the People’s Choice Award winner will be added to our permanent collection. In addition, most of the sculptures on the tour are available for purchase or lease.

Art Coming to Mankato’s Largest Canvas Recently, the Army Corps of Engineers approved CityArt’s proposal for the creation of a mural on a portion of the Mankato Flood Wall. Stretching from the Depot to Reconciliation Park, the 400’ mural will depict a natural Minnesota River scene and highlight fish species native to the area. A fundraising effort is currently underway for the $18,000 project cost; assuming the funds are raised, a team of four professional artists led by Julie Johnson Fahrforth will begin work in late July with anticipated completion in early August. CityArt Walking Sculpture Tour is a program of the City Center Partnership and Twin Rivers Council for the Arts to bring public art to our community. For information on purchasing, leasing or sponsoring a sculpture on the tour or supporting the flood wall mural contact Megan Flanagan at mflanagan@citycentermankato.com or 507.388.1062.

Greater Mankato Growth

Visit Mankato Honors 2016 Ambassadors of Mankato As part of the 33rd annual National Travel and Tourism Week, May 1 - 7, Visit Mankato recognized four outstanding ambassadors of Mankato for making visitors feel welcome. The 2016 Ambassadors are: Louis “Bud” Lawrence, hotel sales for AmericInn Hotel & Conference Center, was awarded the Hotel Travel and Tourism Award for excelling at providing genuine customer service, often connecting with guests over a morning cup of coffee. Tania Cordes, owner of the Kato Ballroom, was awarded the Attraction Travel and Tourism Award for her passion for resurrecting a Mankato icon. Tania works tirelessly to draw more people to Mankato with a variety of events.

40 • June 2016 • MN Valley Business

Paul Wilke, senior general manager of the River Hills Mall, was awarded the Retail Travel and Tourism Award for his dedication to keeping the mall growing and adapting to fit the needs of it’s customers for the past 25 years. Jim & Jan Downs, owners of Pagliai’s Pizza, was awarded the Restaurant Travel and Tourism Award for excellent dining in Mankato. Since 1969, Pagliai’s has been a local favorite place for pizza. “It’s important for people in our community to make our visitors feel welcome,” said Anna Thill, president of Visit Mankato. “We want them to have a great time in Mankato and our local citizens know best how to do that.”

Mankato Program Hits the Streets By: Katie Adelman, Marketing & Communications Coordinator

he frontline staff at hotels, restaurants and attractions are often the first contact a visitor has in the community. These frontline staff also receive the most questions a visitor may have. In 2015, Visit Mankato launched the iKNOW Mankato program, designed to engage all frontline hospitality staff in a fun, experiential education about the destination to provide them with the experience and tools they need to successfully and accurately respond to visitors’ questions.

The iKNOW Mankato program gets frontline staff on the streets with first hand experiences. Outings include the following components: a beginning point at a local attraction with a short tour/education element and a free meal; and a bus tour that will highlight relevant seasonal attractions and event venues. The 2016 program will kick off with the first outing June 28. Registration for this experience is now open.

iKNOW Mankato participants learn about the CityArt Walking Sculpture Tour during the 2015 iKNOW Mankato launch.

Hitting the streets in June will be the new iKNOW Mankato Street Team, which will offer visitors and citizens on-site information at local events. Street Team members represent Visit Mankato at local events throughout the year and provide information and recommendations about Greater Mankato. They will also ask questions of willing visitors to gather visitor behavior information. Recruitment will begin in early May for Street Team members. For more information about the iKNOW Mankato program or Street Team, contact Joelle at jbaumann@visitmankatomn.com or at 507.385.6679.

Visit Mankato, the local convention and visitor’s bureau,is an affiliate of Greater Mankato Growth, Inc. which also includes the regional chamber of commerce and economic development organization, Greater Mankato Growth and downtown development organization, City Center Partnership.

MN Valley Business • June 2016 • 41

Greater Mankato Growth

Frontline staff interested in learning more about Mankato through the iKNOW Mankato program will meet at the Blue Earth County Historical Society at 4:30 p.m. June 28. There will be a tour, networking and free food from Pub 500. From 5:30 to 7 p.m., iKNOW Mankato participants will take a tour of Mankato, which will highlight summer tourist attractions with pit stops at the Children’s Museum of Southern Minnesota, the CityArt Walking Sculpture Tour and Riverfront Park.

iKNOW Mankato provides frontline staff networking opportunities and a hands-on learning experience of Mankato attractions, activities and events.