Mnvalley 7 17 by Free Press Media

The Definitive Business Journal for the Greater Minnesota River Valley

Christina Bohlke, president of the Mankato office of BankVista. Photo by Pat Christman

Banking on Mankato Bank competition, consolidation growing

July 2017

Also in this issue • ZIP ZAP ICE CREAM TRUCK HITS THE STREETS • SAVOY RETURNS WITH ETHIOPIAN CUISINE • LONG HISTORY OF THE FARMERS MARKET

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HOW A CPA FIRM IMPROVES MY BANKING EXPERIENCE For years, community banks have served as the primary economic driver of cities and towns across the country. Local bankers know their customers and communities on a level unachievable for big financial institutions because they have been a cornerstone of growth and development for their neighbors, often for generations. But that role hasn’t come without hurdles through the years. Most recently, community banks have experienced significant changes due to increased regulatory burden, increased capital requirements, and changes in accounting principles and tax laws from legislative responses to the financial crisis of 2008, such as the Dodd-Frank Act.

Working Together All this change has required community banks to devote additional resources to operations, adopt new policies and procedures, and change the way they look at their short-term and long-term strategic objectives. That means less time to think about ways to ensure the bank remains a community cornerstone, and more time spent on capital planning, management retention and succession planning, as well as ownership succession strategies. Eide Bailly understands these pressures and works to help guide community banks with these demands so they can spend

more time focusing on the customer. While many assume this is in the traditional arenas of tax and audit, we actually do as much as we can to help them manage the issues they face today. We train their teams on regulations and serve as a resource for questions. We also work with regulators when they are taking a closer look at a local bank. We help strategize about future growth and analyze the details when they buy or add branches. We do what we do for all our clients—help ease the burden of regulation so they can focus on what matters most: serving their customers.

In It for the Long Haul Building lasting relationships is at the heart of community banking. But in order to do that, community bankers need to have time to devote to engaging with their communities. Our goal as business advisors is to take the pressure off the day-to-day operations and give them the tools and information they need to make confident decisions for their bank. We’re part of this community, too, and we understand that successful businesses help us all grow—a rising tide lifts all boats, as they say. We’re honored we get to play a role in helping community banks build thriving communities.

By: Rhea Hemish, Partner Rhea is a partner at Eide Bailly who focuses on financial institution taxation and consulting. She is a frequent speaker on the ever-changing tax and regulatory rules in the banking industry. Her favorite part of her job is watching her clients’ successes as they grow and thrive.

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n light of recent litigation, the simplest way to summarize how employers should approach their classification of employees as exempt from overtime payment under the Fair Labor Standards Act (FLSA) is: It’s business as usual.” In May 2016, the Department of Labor issued a new rule (the “Rule”) increasing the minimum salary for white-collar exempt employees from $455/week to $913/week ($47,476/ year) and requiring $134,004/year for highly-compensated employees. Those affected and considered to be “white-collar” exempt employees are individuals working in bona fide executive, administrative, or

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F E A T U R E S July 2017 • Volume 9, Issue 10

New bank buildings popping up are an indication of a healthy but competitive banking industry in the Greater Mankato area, where the economy remains diverse and strong.

The Mankato Farmers Market started back in 1976 as a small and loosely organized event. Many vendors have been with the market all those years as it has grown dramatically.

Local fans of Ethiopian cuisine no longer have to make the trek to the Twin Cities as the Savoy Bar and Grill has reopened downtown with a focus on Ethiopian food.

When Elaine Hardwick bought the Zip Zap Ice Cream truck in 2016 she hoped for a fun, unique and good business. As another summer season kicks off that’s just what she’s found.

MN Valley Business • JULY 2017 • 3

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JULY 2017 • VOLUME 9, ISSUE 10 PUBLISHER Steve Jameson EXECUTIVE EDITOR Joe Spear ASSOCIATE EDITOR Tim Krohn CONTRIBUTING Tim Krohn WRITERS Kent Thiesse Heidi Sampson Nell Musolf Dan Greenwood Amanda Dyslin PHOTOGRAPHERS Pat Christman Jackson Forderer COVER PHOTO Pat Christman PAGE DESIGNER Christina Sankey ADVERTISING Phil Seibel MANAGER ADVERTISING Jordan Greer Sales Josh Zimmerman Marianne Carlson Theresa Haefner Thomas Frank 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

Other people’s money

Banking competitive, strong in region

he things I’ve heard from Mankato area bankers over the last few years seem to be echoed once again in our cover story this month. Local banking is competitive with over 20 banks serving the area. There’s a proliferation of banks. Consolidation is likely. And, like everything else, banking is changing with technology. But bankers will tell you that when interest rates go up – as they have been and are likely to continue, -- bankers are happy because they have money they acquired at low rates that they can now loan out at higher rates. It’s a little counterintuitive, but it makes sense if you think about it. Money is a commodity of sorts. You buy it at a low price and sell it at a higher price. “There’s a lot of competition in banking in Mankato,” says Eric Peters, president of Wells Federal Bank’s Mankato market. “I think everyone can see that. There’s a lot of potential here and I think people who aren’t in the market want to get in on that and expand,” Peters said. But that competition also forces banks to find their niche, stand out from the crowd and, as always, keep customers happy. Technology and regulations are adding costs to the banking business. Small banks have a difficult time justifying complying with all the regulations and adopting the new technologies. As people get more comfortable with online banking, fewer need to stop into a bricks and mortar bank. Banks, of course, can be a canary in the coal mine of business. They are the first to see certain business sectors struggle. Low crop prices impact farmers and balance sheets. High taxes and labor costs may be putting the hurt on small businesses.

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Some banks aim for specialized niches in agriculture or small business, but more and more they seem to be believing diversity is also good, doing business with retail business, agriculture and even financing some apartment buildings. Some banks specializing in small business and startups even provide consulting and advising services to make sure their customers have the skills they need to be successful. That’s good to see. Entrepreneurship competition The new Minnesota State University Center for Innovation and Entrepreneurship located in downtown Mankato on Riverfront Drive also offers another avenue for business consulting. They’re occupying a 4,000 square foot space in the old Hubbard Milling building, with space being donated by Developer Curt Fisher. The new collaboration is aimed at leveraging Minnesota State University and community business expertise to assist entrepreneurs and business startups. The group will be collaborating on a Southern Minnesota Initiative Foundation program that offers $20,000 to local entrepreneurs with a promising idea. All prospective businesses have to do is show up to a meeting June 28 at the MSU Ballroom for the Dream Big, Learn Big, Go Big Workshop from 5 p.m. to 9 p.m. Applicants must have a truly new business plan. Funds cannot got to existing businesses, individuals or other existing organizations or projects. At the meeting, entrepreneurs will have a few minutes to explain their idea and then several ideas will be put up for a vote at night’s end. The winning project will be

able to develop their plan over the next six months for the chance at the $20,000 prize awarded by a panel of judges. It’s an exciting program and one that has shown intriguing results in other communities.

The new Minnesota State University Center for Innovation and Entrepreneurship located in downtown Mankato on Riverfront Drive also offers another avenue for business consulting. The CIE is working to be an important force in the southern Minnesota business and entrepreneurial scene. It is located with the MSU Small Business Development Center and will be connected to other groups like the Service Core of Retired Executives. It’s another asset Mankato now of fers to keep business development front and center in a growing market.

Local Business People/ Company News

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Aglytix, IBM signs agreement

Mankato-based Aglytix Inc., a developer of software analytics for the agricultural sector announced a joint initiative agreement with IBM. IBM Advanced Analytics and Cognitive Business Solutions will be incorporated into the Aglytix platform to offer a change in how farmers approach their work and how agribusiness companies sell their products. The partnership will focus on jointly developing and marketing analytics and other technologies centered on Lean Farming and Evidence Based Sales. Lean Farming helps farmers optimize their yields and costs, while Evidence Based Sales applies analytics to improve sales execution for agribusiness companies. Jerry Johnson, founder and CEO of Aglytix, said agriculture has a wealth of data but little is used effectively. “By applying IBM technology to agriculture, we will be able to create smarter analytics that continuously absorb massive amounts of disparate, unstructured data, and evolve as more data is received.” ■■■

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

Read us online!

Old Main Village has been recognized as a 2017 recipient of the Bronze – Commitment to Quality Award by the American Health Care Association and National Center for Assisted Living. The award is the first of three distinctions possible through the AHCA/NCAL National Quality Award Program, which honors long term and post-acute care providers that have demonstrated their commitment to improving the quality of senior care. Old Main Village is the only senior living community in Mankato to receive the 2017 Bronze Award. The program has three levels: Bronze, Silver, and Gold. Facilities begin the quality improvement

process at the Bronze level, where they develop an organizational profile with essential performance elements such as vision and mission statements and an assessment of customers’ expectations. Bronze applicants must demonstrate their ability to implement a per formance improvement system. A team of trained Examiners reviews each Bronze application to determine if the facility has met the demands of the criteria. The Association will announce the 2017 Silver - Achievement in Quality and Gold – Excellence in Quality Award recipients in the coming months. ■■■

ISG earns top spot

ISG made a move on both the national Zweig Group 2017 Hot Firm and Best Firms to Work For lists. Zweig Group, a privatelyheld firm enhancing business performance for architecture, engineering, and environmental consulting sectors, ranked ISG among the Top 10 on the Hot Firm list and Top 20 of Best Firms to Work For. The Zweig Group Hot Firm list has recognized the 100 fastestgr owing ar chitectur e, engineering, planning, and environmental consulting firms in the United States and Canada for the past 20 years. ISG has earned a spot on the list for five straight years in a row, with the 2017 ranking being the firm’s highest. ■■■

Peterson elected chair

Fafinski Mark & Johnson announced that attorney Jared Peterson was elected chairman of the Agricultural and Rural Law Section of the Minnesota State Bar Association at the annual meeting. As chairman, Peterson’s duties will be to preside at all the meetings of the section, prepare and present reports to the MSBA, appoint members to committees, and perform such other duties

MN Valley Business • JULY 2017 • 5

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and acts as customarily pertain to this office. The Agricultural and Rural Law Section of the MSBA reviews and implements methods for providing quality legal services to farmers and agricultural businesses throughout Minnesota in the areas of estate planning, business law, environmental regulations, debtor/creditor law and many more. The section has approximately 200 attorney members. Peterson had previously served as the vice chair. ■■■

MTU earns youth award

The Mankato Community Education & Recreation Advisory Council awarded Todd Riemann, MTU Onsite Energy CEO and COO, a Spirit of Youth Award for his continued work with the Youth Employment Acceleration Program and local school district. The Spirit of Youth Award recognizes outstanding individuals or groups who have contributed to the educational development of local youth over the past year. The YEAP program was launched in 2014 with the goal of providing hands-on vocational training and classroom instruction in a manufacturing setting for high school students. Over the course of two years, participants can earn up to 2,000 hours of experience while earning a wage and building on classroom instruction.

River’s Edge honored

River’s Edge Hospital & Clinic has been recognized as a DNV GL Healthcare certified Hip & Knee Replacement Center. The certification, based on standards set forth by DNV GL Healthcare and considering the guidelines of the American Academy of Orthopedic Surgeons, recognizes program excellence in patient care and outcomes. ■■■

SCC names executive

Erin Aanenson has been named as the new Executive Director of the South Central College Campus Foundation. Aanenson has ser ved as the C a m p u s Erin Aanenson Administrator for Laurels Peak Rehabilitation Center in Mankato since 2013, and is a graduate of the University of Minnesota

Dancing Waters

Crookston with a degree in communication. ■■■

Chankaska celebrates 5 years

Chankaska Creek Ranch and Winery is celebrating their fifth year in business. Chankaska began with a vision from its proprietor Kent Schwickert, and was supported by Chankaska’s investors, that laid the roots for the first grape vine to be planted in 2008. In 2010, construction began on the 11,000 square foot tasting room and production space. Chankaska won the Minnesota’s Governor’s Cup for their 2015 La Crescent last year.

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Business Commentary

By Dean Swanson

How to avoid the critical pitfalls in a business plan I

need to follow-up on a reader request that said “Dean, you suggested that those of us that are already in business, should “revisit” our business plan and you gave some great ideas and questions to ask ourselves in the process, but you didn’t address my problem of looking at a business plan that is really outdated. Please give us some suggestions of what pitfalls to avoid when writing or revising a business plan.” I am going to again ask a SCORE mentor who is really good at assisting folks with their business plans. One of many that came to my mind is Hal Shelton. He is a SCORE mentor who is passionate about helping small businesses start and grow. He has been a CFO and board member for NYSE/NASDAQ publicly traded companies and nonprofits. I asked Hal to give me some of his thoughts on crucial mistakes to avoid when doing a business plan. Hal started his response to my question by saying “That is a great question because business plan mistakes can result in anything from small setbacks to fatal errors for your business. Especially for businesses seeking funding, it’s crucial that your information is correct and none of your ideas are misrepresented.” Here are a few of the mistakes that he feels a business CEO should avoid in their plan:

The opening message does not succinctly describe your idea and why it will be successful.

First impressions are important — a plan is often judged by its two-page executive summary. Bankers, investors, and key vendors are busy people, so if a quick read of this opening section does not provide a clear and persuasive overview, they will likely move on to the next proposal.

Businesses are successful when they provide products and services that profitably satisfy a customer need. You start a business because you are good at what you do and are passionate about it; however, you always have to come back to

8 • JULY 2017 • MN Valley Business

what you are doing for the customer.

There is no focus on specific products and ser vices.

Getting customers and cash flow can be hard at the start. To appeal to a large audience, many businesses try to take a broad approach when describing their products and services. This is not a smart strategy. Your business plan needs to show what you can bring to the market that is unique and different from your competition.

There is no clear statement on how you will generate revenue.

Understanding how you will generate revenue — sometimes called the business model — is crucial for your own planning. It’s also important to communicate this clearly in your plan when applying for bank loans and asking for approval from credit committees.

The sales forecast is not believable.

The sales forecast needs to be supported by data and analysis, a marketing plan that will find prospects and convert them into customers, and an analysis of competitor reaction to a new market entrant. Unfortunately, a good product or service will not sell itself. The problem with unsupported, robust sales forecasts is that the reader discounts them and moves on,

and you are not in the room to defend your plan.

You are just starting and/or are seeking a loan but the funding amount you’re asking for is not supported by the financial statements.

There is a natural conflict between asking for money and wanting to demonstrate that you have a highly profitable business. Sometimes entrepreneurs show robust sales projections, which masks the funding needed. Or they request larger funding than they need since they feel it is a negotiation and they need to ask for $100,000 to get $75,000. Yes, there is a negotiation, but the requested amount must be supported with at least a threeyear monthly cash flow projection.

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Eric Peters, president of Wells Federal Bank Mankato.

10 â&#x20AC;˘ JULY 2017 â&#x20AC;˘ MN Valley Business

Wells Federal Bank president Eric Peters talks with Triah Meyer.

Consolidation, competition Local banking scene is strong By Tim Krohn | Photos by Pat Christman

ric Peters, president of Wells Federal Bank’s Mankato market, is well aware of the changes and competition that continue to reshape the area’s banking industry. Wells Federal, with offices in nine communities, is in the midst of a merger with Citizens Community Federal, a Eau Claire-based bank with several branches, including one in Mankato. “We will become CCF,” Peters said. CCF had an office in the Old Navy strip mall and is now in its new location just north of the new Kia dealership.

Christina Bohlke, president of the Mankato office of BankVista, said there will be more consolidation coming. “Mergers and acquisitions are going to continue to happen. You can gain scale if you find the right fit.” Mike Bresnahan, president/CEO of First National Bank Minnesota, said consolidations are in part driven by rising business costs. “The compliance costs keep going up and the regulations are not slowing down. It’s an enormous task for small

Cover Story

MN Valley Business • JULY 2017 • 11

Christina Bohlke, President of BankVista

community banks to justify the expense to comply with all the regulations.” Peters agrees rapid changes in technology and more regulations are driving acquisitions. “I think it’s unfortunate to lose those smaller banks. But the customers also get more technology and

services.” While mergers are common, local residents have probably been more aware of the growing number of bank buildings going up in the region. “There’s a lot of competition in banking in Mankato,” Peters said. “I think everyone can see that.

12 • JULY 2017 • MN Valley Business

There’s a lot of potential here and I think people who aren’t in the market want to get in on that and expand,” Peters said. “But from a banking standpoint it makes it tougher. There’s only so many businesses in town to go after. You have to set your niche and treat customers well.” Bohlke, too, has seen the completion growing. “There’s something like 18 banks and then all the credit unions” she said. “It comes down to finding the best people and building relations with customers.” While some of the financial institutions are new to town, several of the new buildings, such as CCF, are replacing older offices of existing banks or simply adding branches. BankVista, which built at Adams Street and Victory Drive, used to be Northern Star bank. Wells Fargo had existing branches but built another near Kohls a couple of years ago. Minnesota Valley Federal Credit Union has long had a location by the

Mike Bresnahan, presient/CEO of First National Bank Minnesota. Veterans Memorial Bridge but opened a hilltop branch on Adams Street. Two of the bigger new names in the market in recent years have been Bremer and Profinium. Bremer building next to Heintz Toyota on the hilltop and Profinium in the new Profinium Place building downtown.

Tech revolution

Bankers say technology and online banking have transformed the way they do business. They may not be as lonely as the Maytag repairman, but bank presidents see a lot fewer people in their banks these days. “With all the online banking, you see fewer people coming in,” Bohlke said. “It’s more convenient for everyone. Even opening a new account now, you don’t have to go into the bank at all.” Peters said customers are more comfortable with online banking. “Online is great. It’s safe — if anything happened to your money or account the customers are

covered.” Bresnahan said the type of new technology continues to evolve and amaze. One new ser vice allows customers to use their phone to take a photo of the front and back of a paper check they received from someone. “They transfer the photos to us and we’ll deposit the money in their account.” He said that type of technology is especially important to younger customers, many of whom rarely if ever write or get a paper check and who expect to do most all their banking on their phone. “The technology gets cheaper as time goes on and more people are using it. It’s huge for us to be able to do those things.” While there are fewer people inside brick and mortar bank buildings, Bresnahan said how busy a bank is depends on where it is located. They have banks in Gaylord, St. Peter and Mankato and he said more people visit the bank in Gaylord than do in Mankato.

“In the rural towns it’s just more of a tradition to go to the bank.”

Different niches

All banks provide the range of personal and business services, while each has niches and specialties they focus on. “Agriculture is big in some of our locations,” Peters said. “But we try to get involved a little bit in every sector, manufacturing, a little retail, some housing. There’s definitely been a big buildup in apartments and we’ve done some of those.” Banks with branches in smaller rural communities have seen a significant shift in fortunes from a few years ago when crop prices were at record highs and farmers were making record profits. “There has been a fair amount of stress in ag in recent years,” Bresnahan said. Crop prices have been low for a few years and low profits or losses are starting to affect some farmers.

MN Valley Business • JULY 2017 • 13

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“As each year passes it’s showing who prepared themselves for the toughest of tough times. Those who did a really good job of reinvesting and building their balance sheets (when things were good) can withstand this,” Bresnahan said. “But we’re getting to the point where some farmers will be on the brink of whether they can stay on the farm or not.” Bohlke said local banks have benefited from strong construction of apar tment buildings and of brisk sales of existing single-family homes, although there are not enough homes on the market. BankVista is based in Sartell, with offices in Mankato and Chaska. “One of our specialties is in small- to medium-sized businesses,” Bohlke said. “We work with a lot of startup businesses.” Through the local Small Business Development Center and the SBA, Bohlke meets with a lot of entrepreneurs. She said people hoping to start a business usually face the same challenges.

“The biggest issue is usually a lack of capital. And we also want them to have the tools to be successful. They may have a great idea but do they have the skills they need, or at least can we find someone to work with them on those skills?” She said Old Town and downtown Mankato have shown a nice growth in startup business. “There’s a lot going on there.” All the bankers said that while the local economy remains strong and diverse, there has been less commercial development going on the past year or so compared to previous years. “Mankato had been very robust for a few years but it seems to have slowed down,” Bresnahan said. “Developers and some others who drove that robust growth are being more careful.” He said developers say the local market has hit a saturation point in commercial space and office space. “It’s harder for them to attract or retain the quality tenants they need. They need to lock up good tenants for a solid 10 years or so before they’re willing to

move ahead with a new project.” On the personal banking side of business, Bohlke said they’ve been seeing more people taking a comprehensive look at their spending and debt. “We have a lot of people asking about debt consolidation and looking at their personal finances and I think that’s a good sign.” Peters said he too is seeing more people looking at home equity loans to pay off higher interest rate credit card debt. “After what happened in 2008, 2009 there was apprehension by people about drawing too much equity out of their homes. We try hard not to let people get into that situation, but we’re seeing an uptick in home equity loans.” MV

MN Valley Business • JULY 2017 • 15

Dee Pietsch (right) picks out a bunch of radishes requested by Greta Rath, 4, at the farmers market held every Saturday in Best Buy’s parking lot. A vendor at the farmers market for 39 years, Pietsch said, “I see a lot of repeat customers and made a lot of good friends.”

Decades at the Farmers Market

Longtime vendors, mix with new at successful market By Amanda Dyslin Photos by Jackson Forderer

ven 32 years later, Bernie Kleinschmidt remembers the first time he brought goods to the Mankato Farmers Market. “We came over on a Saturday with eggs and great big beets,” said Kleinschmidt, who owns the 5-acre Country

Gardens in rural Lewisville with his wife, Bertha. “We parked and put them on the hood of our car and sold them from there.” That was 1985, Kleinschmidt said, when the market was in Old Town. Few rules applied for vendors back then. Kleinschmidt said you just showed up

Cover Spotlight

16 • JULY 2017 • MN Valley Business

Bertha Kleinschmidt (left) of Country Gardens helps Chris (center) and Wendy Prantner look for a specific type of tomato plant at the farmer’s market. Bernie and Bertha Kleinschmidt have been vendors at the farmers market since 1985. whenever, and someone came around and collected a nominal fee. Kleinschmidt and several other longtime produce vendors have seen the market change dramatically over the years, and all say those changes have been for the better. Now there’s an association with member fees (the Mankato Area Growers’ Association) and booth fees; there is a deadline to apply to vend each year; all produce sold must be grown by the vendor; and all baked goods, crafts and artisan wares have to be “substantially created” by the vendor within 40 miles of the market, said market president Diane Selly. The result has been the increased quality of the market, Kleinschmidt said, and quality means both loyal customers and a growing customer base each year. “Today we had a guy say, ‘I hope you never quit because I’ve been buying your tomato plants for 20 years,’” Kleinschmidt said.

Earliest vendors

On Memorial Day weekend, a customer walking by th On Memorial Day weekend, a customer walking by the Pietsch’s booth stopped to examine the bright red radishes. “My husband loves radishes,” the woman said. “So you’re going to be a good wifey today?” asked Lori Pietsch, gathering some up. “Yeah, it gives him bad breath, though,” the woman said, eliciting chuckles from Lori and her mother-inlaw, Dee Pietsch. Friendly Saturday morning conversations like this

have been playing out at the Pietsch’s Farmers Market booth for 39 years. Like several longtime vendors at the market (including the Kleinschmidts), several generations of the family have worked the booth over the years. Leslie Pietsch was the one who got it all started, said Dee of her late father-in-law. Leslie had a couple of grandchildren who would help him at the Farmers Market, which began in Mankato in 1976, just a couple of years before he brought his first batches of pumpkins and squash.

Like several longtime vendors at the market (including the Kleinschmidts), several generations of the family have worked the booth over the years. Leslie’s son, Dean, and Dee, Dean’s wife, now operate the small 4-acre farm eight miles south of Mankato. Over the years the items the family sells have grown to include a variety of vegetables, berries, cut flowers and baked goods, including pies, bars and quick breads.

MN Valley Business • JULY 2017 • 17

Sue Musser (left) gives change back to customer Emily Champon at the farmers market held every Saturday at the Best Buy parking lot. Musser, from Fairmont, has been a vendor at the farmers market for over 30 years. Dee is responsible for all the baking, she said. “I cut apples,” Lori was quick to point out. “And that’s important,” Dee said. In addition to the sense of pride of having four generations of the family involved with the business, Dee said the camaraderie with the other vendors and the repeat customers have made coming back year after year so enjoyable. The vendors, especially the longtime ones, care about each other and support each other’s businesses. Dee buys some of the fruits for her pies from neighboring vendors, she said. “I love seeing everyone,” Dee said. “We’ve developed some really great friendships.” A few examples of those friendships were just a stone’s throw from the Pietsch’s booth over at the Musser Produce booth of Fairmont, which has been a part of the Farmers Market for 24 years. Along with a group of other women working at the booth, Joyce Schmidt was sending good thoughts and well wishes to the Pietsches about Dean, who was recuperating from an accident in a John Deere UTV. Schmidt also knew that Tim Guldan, of Guldan Family Farm (vendors for 24 years), recently had a baby girl. “This is a family,” said Schmidt, who has been at the market for 19 years.

18 • JULY 2017 • MN Valley Business

The market’s evolution

Kleinschmidt remembers the Farmers Market when it was in a little plaza off of Riverfront Drive in Old Town. Often the area overflowed with vendors onto the street, who were selling everything from egg rolls to homemade knives to handmade rugs. “Back then it was $5. It’s now $400 (with the $50 membership fee and depending upon booth size),” Schmidt said. “Now we’ve got more structure, more regulations, which I think makes it better.” The more formal structure began when the Farmers Market moved to the Madison East Center parking lot to accommodate the number of vendors, Kleinschmidt said. “New rules were set up, (with) new market managers hired, always trying to give to this community a better market, better produce and products,” according to the Farmers Market website. Then, in 2014, the market moved again to the Best Buy parking lot where it’s located now. The market has evolved to include a variety of food producers and artisans, and the association has made it more of an “event,” Schmidt said. “Sometimes we do live music in the summer, and we do things like face-painting for the kids,” Schmidt said. “We try to make it something for everybody.” Over the years, many vendors have come and gone, Selly said. The move to the Best Buy parking lot has

actually increased vendor participation. There were 36 vendors before the move; last year the market hit a high of 52; and this year there are 50 vendors, she said. And the longtime vendors recognized by the association for so many years of participation – including the Pietsches, the Kleinschmidts, the Guldans and the Mussers, among others – all welcome the new faces. “It’s great,” Schmidt said. “We get new people all the time.” The market gets new customers all the time, too. Walking by the Musser Produce booth, longtime marketer Heather Otto was shopping with her daughter and mother, Marilyn Cremers, a firsttime customer. They spotted a rhubarb plant and had to stop. “Look, a starter plant for rhubarb. Does it grow best in sun or shade?” Otto asked. Otto has frequented the market for fresh produce, eggs, coffee and handmade soap for many years, she said. And even with the light rain and overcast sky on this par ticular Saturday, three generations of the family had fun and felt good about supporting the market. “I like the fact that it’s local,” Otto said. MV

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blethenlaw.com - Mankato, Minnesota MN Valley Business • JULY 2017 • 19

Dermi (left) and Lencho Jarso, the new owners of Savoy, stand behind a smorgasbord of Ethiopian and Greek food. Demi is holding a plate of Ingera, or Ethiopian bread. Lencho is holding a skillet of seasoned lamb. Photo by Jackson Forderer

Ethiopian cuisine returns Savoy Bar and Grill reopen downtown

By Dan Greenwood | Photos by Jackson Forderer

ocal fans of Ethiopian cuisine no longer have to make the trek to the Twin Cities to get their fix. After a long hiatus, Dermi and Lencho Jarso have brought back the food of their homeland to Mankato at Savoy Bar and Grill on Front Street downtown. The couple used to run an Ethiopian restaurant called Nile on Madison Avenue. They rented out a small location (the former Hilltop Tavern Hamburger Heaven site) that fostered a loyal group of customers. When they opened Savoy they switched to burgers and Mediterranean fare to accommodate a different clientele. But the Ethiopian food they used to cook and serve was still on the minds of some locals. “We would constantly get requests from friends, people who know us from Nile and people who come

here, “Lencho said. “So we decided to bring back the Ethiopian menu for weekends.” While the cuisine is still unfamiliar to many in smaller cities and towns, it’s thriving in the Twin Cities and other metro areas. Lencho predicts Ethiopian food will become just as popular as Mexican and Chinese food is in the American psyche. Outside of the Twin Cities, there’s a restaurant in Rochester and another in St. Cloud, where a university environment fosters diversity. He says Mankato is no different. “There is a big demand for Ethiopian food here.” Lencho says that Minnesota State University plays a large role in that demand. “MSU’s admission of international students is expanding,” he explains.

Profile

20 • JULY 2017 • MN Valley Business

A rack of spooled gyro meat rotates in front of a heat source in the kitchen at Savoy. “There are a lot of students from Africa and the Middle East.” Lencho says it also appeals to the health conscious and vegetarians. While some of the different stews are made from chicken, lamb or beef, the vegetarian dishes are often the most popular. He explains that Ethiopia is predominantly made up of Orthodox Coptic Christians, who avoid meat during fasting periods. “People miss their meat. They began to cook their food to taste like meat,” Lencho said. The complex and time consuming process cooking with beans and lentils creates a hefty meal even for vegans. “You simmer - put in spices, continue with low heat, test and cook for perfection.” Lencho’s wife Dermi explains that a traditional Ethiopian meal is served and eaten as a group with one big plate of sauces and stews and spongy bread called injera. It’s custom to eat the meal using your hand. “Ethiopian food is real cooking, Dermi said. “It’s not like warming up or cooking for five minutes. You cook with love. You use all of your energy and attention.”

A salad prepared by Savoy owner Dermi Jarso. The owners, Dermi and Lencho Jarso, feature Ethiopian and Greek food at the restaurant and bar.

New menu, old favorites

The new Ethiopian menu, which they reintroduced May 1st, features dishes Lencho and Dermi grew up with when they lived in Ethiopia. In the late 1980’s they fled the country when it was ruled by a repressive dictatorship. When they received refugee status at a camp in neighboring Kenya, a Lutheran church in Iowa City sponsored them before they moved to Mankato. The bread injera is made from a unique grain that until recently was found nowhere else. “There is a grain called teff,” explains Lencho. “It grows only in Ethiopia. It’s gluten free and rich in iron.” Some people attribute Ethiopia’s large number of long distance marathon runners to this staple grain. And as Americans become more health conscious, there is a growing demand for teff in food co-ops and health food stores here. Injera bread is the vessel used to eat an Ethiopian meal without utensils. “It’s a flat bread – spongy, so you tear then you scoop from the stew and eat,” says Lencho. Savoy will continue to serve up bar food and appeal to a wide range of customers through their live music, where local musicians like the Last Revel and Max Graham graced Savoy’s stage before making it big. Dermi and

Lencho hope the new Ethiopian menu will diversify their customers. They say they plan to be more assertive about advertising, which is a foreign concept in Ethiopian culture. “One weakness of our business is advertising,” Lencho explains. “We come from the culture that is self-contained. We don’t advertise ourselves. You just let others speak about you instead of speaking for yourself. But in a fast-paced economy like the United States, advertising is a mainstay for growth. “Unless the word is out there, nobody knows you exist unless you explain because it’s a busy country. Capitalism is a busy lifestyle. You have to try to capture their attention.” While they plan to utilize radio and social media as a means to get the word out, Lencho and Dermi emphasize how Mankato’s open-minded community is a major factor in their success. “People who believe in diversity support it,” Lencho said. “It doesn’t mean we have not faced some negative experiences here and there. But we don’t want to dwell on that. Others don’t define life for us, we define our own life.” MV

MN Valley Business • JULY 2017 • 21

Elaine Hardwick, owner of Zip Zap Ice Cream, talks to Chris Guetschow (right), 12, and Matthias Guetschow, 9, as they ordered ice cream before movie night at Spring Lake Park.

We all scream for ice cream Zip Zap hitting the summer streets By Amanda Dyslin Photos by Jackson Forderer

ANKATO – It was one of those rare summer-feeling Saturdays in May. Full sun and temps in the 80s. Sarah Becker and a friend decided to take full advantage of the weather and head down to the Hiniker Pond beach to dip their toes in and soak up the rays. As they walked along the sand, they heard in the distance the

beginning notes to “When the Saints Go Marching In.” Granted, Becker is in her 20s, but she’ll be the first to admit that when that tinny melody drew closer – the unmistakable siren song of an ice cream truck – she was a kid again. “I turned to my friend and said, ‘ice cream!’ Do you have any cash?” Becker said with a

Feature

22 • JULY 2017 • MN Valley Business

laugh. “It seems like a popsicle from an ice cream truck, like, actually tastes better than ones you get at the store.” That’s pretty much the sentiment Elaine Hardwick was banking on when she bought the Zip Zap Ice Cream truck from Natalie Hughes in 2016. Hughes had been operating the business for years each summer. “I saw the truck one time driving around town, and I decided, ‘Oh, that looks cool. I wish it was for sale,’” Hardwick said. “It had a ‘For Sale’ sign on it a year later. I got it on June 8, 2016, and on June 10 I was already at an event with it.” Hardwick said she’s never owned a business like Zip Zap before. She’s just had online stores via Etsy and eBay selling vintage items. But the ice cream truck business seemed pretty simple, she said. She orders her products from a variety of wholesalers, and she hits area streets and parks on warm, dry days. The three-wheeled truck is quite a site, Becker said. It’s small and colorful, and there’s a black canopy over the flat bed covering the commercial freezer, which can hold up to 500 pieces of ice cream, Hardwick said. The Wildfire brand manualtransmission truck is powered by a 650 cc engine, meaning the top speed is 30 to 35 mph, Hardwick said. “Safely, anyway,” she added. “It doesn’t drive well in rainy conditions,” she said. “Once it got cold, and there was a little frost on the road, I didn’t drive it.” She gets about 60 miles to the gallon and usually only has to fill up once a weekend. The freezer is hooked up to an inverter and runs off the battery of the truck. (At events she can also plug the freezer into an electric outlet.) Powering the truck and freezer while on the move through neighborhoods is a delicate balance, Hardwick said. “I try to drive as slow as I can, but if I drive too slow, everything will shut down,” said Hardwick, who says she stays at about 10 mph unless parked. “So kids will come running out and yell, ‘Stop!’ Or people will call or text and say, ‘You just went by,’ and I so I turn

Top: Elaine Hardwick (left) gives ice cream to Madalynn Maloney, 5, after she decided on a Teenage Mutant Ninja Turtle themed treat. Bottom: A variety of the ice cream styles that are offered by Zip Zap Ice Cream.

around.” Hardwick posts her routes and stops on Facebook. She drives through various neighborhoods, and regular spots include Sibley Park a couple of times and Hiniker Pond at least once each weekend day. She also does events, such as festivals, birthday parties and community gatherings, like the outdoor movies at Spring Lake Park. The 2017 season started early, she said. “This year, because it got warm early, I was out in April on weekends,” Hardwick said. “Over the summer I go out (on weekday) evenings for a few hours, too.” Hardwick said the nostalgia of the truck hits the adults. They

remember ice cream trucks from when they were kids. “I had two instances where kids ran up and didn’t have money, and adults were there buying for their kids and said, ‘Go ahead, I’ll get you something.’” Hardwick loves having a business that elicits so much joy. “It’s wonder ful because everybody is happy,” she said. “It’s just so much fun when I’m two blocks away and kids are jumping up and down and doing cartwheels, no lie. It’s just so cool.” MV

MN Valley Business • JULY 2017 • 23

■

Business and Industry Trends

Energy

relative to their 2015 levels. The United States has been the world’s top producer of natural gas since 2009, when U.S. natural gas production surpassed that of Russia, and it has been the world’s top producer of petroleum hydrocarbons since 2013, when its production exceeded Saudi Arabia’s. For the United States and Russia, total petroleum and

U.S. top petro producer

The United States remained the world’s top producer of petroleum and natural gas hydrocarbons in 2016 for the fifth straight year despite production declines for both petroleum and natural gas

natural gas hydrocarbon production in energy content terms is almost evenly split between petroleum and natural gas, while Saudi Arabia’s production heavily favors petroleum. Total petroleum production is made up of several different types of liquid fuels, including crude oil and lease condensate, tight oil, extra-heavy oil, and bitumen. In addition, various processes produce natural gas plant liquids, biofuels, and refinery processing gain, among other liquid fuels.

Oil prices down

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24 • JULY 2017 • MN Valley Business

North Sea Brent crude oil spot prices averaged $50 per barrel in May, $2 lower than the April average. The EIA forecasts Brent spot prices to average $53/b in 2017 and $56/b in 2018. West Texas Intermediate crude oil prices are forecast to average $2 per barrel less than Brent prices in both 2017 and 2018. The Organization of the Petroleum Exporting Countries announced an extension to voluntar y production cuts through March 2018 that were originally set to end in June 2017. EIA forecasts OPEC crude oil production will average 32.3 million barrels per day in 2017 and 32.8 million in 2018.

Gas prices up

The 2017 summer driving season (April–September) regular gasoline retail prices are forecast to average $2.46/gallon, compared with $2.23/gal last summer. The higher forecast gasoline price is primarily the result of a higher forecast crude oil price. The forecast annual average price for regular gasoline in 2017 is $2.38/gal.

Less electricity

Forecast cooler summer temperatures compared with last year contribute to an expected 3.3 percent year-over-year decline in electrical generation in the third quarter of 2017. Overall, forecast generation falls by 1.2 percent in 2017.

Retail/Consumer Spending Vehicle Sales Mankato â&#x20AC;&#x201D; Number of vehicles sold - 2015 - 2016 701 874

1500 1200 900 600 300 0

Source: Sales tax figures, City of Mankato

Uranium prices

Ever wonder where owners of nuclear power reactors get their uranium? The power reactor uranium compound - called U3O8e - is bought or sold on world markets just like any other commodity. A little of the uranium comes from America but most is from the areas in and near Russia and Australia and Canada. The federal Energy Information Administration said civilian owner/operators purchased a total of 57 million pounds U3O8e of deliveries from U.S. suppliers and foreign suppliers during 2015, at a weightedaverage price of $44.13 per pound That was an increase of 6 percent compared with the 53 million pounds purchased in 2014. The 2015 price was down 4 percent from a year earlier. Six percent of the 57 million pounds U3O8e delivered in 2015 was U.S.-origin uranium while foreign-origin uranium accounted for the remaining 94 percent of deliveries. Uranium originating in Kazakhstan, Russia and Uzbekistan accounted for 37 percent of the 57 million pounds. Australian-origin and Canadian-origin uranium together accounted for 47 percent. The remaining 10 percent originated from Bulgaria, Czech Republic, Malawi, Namibia, Niger, and South Africa.

Renewables

Wind electricity generating capacity at the end of 2016 was 81 gigawatts. EIA expects wind capacity additions will bring total wind capacity to 88 GW by the end of 2017 and 102 GW by the end of 2018. Total utility-scale solar electricity generating capacity at the 2016 was 21 GW. EIA expects solar capacity additions in the forecast will bring total utilityscale solar capacity to 29 GW by the end of 2017 and 32 GW by the end of 2018. After declining by 1.7 percent in 2016, energyrelated carbon dioxide (CO2) emissions are projected to decrease by 0.7 percent in 2017 and then increase by 2.2 percent in 2018. Energy-related CO2 emissions are sensitive to changes in weather, economic growth, and energy prices.

Sales tax collections Mankato (In thousands)

- 2015 - 2016

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

$427 $425

600 500 400 300 200 100 0

Source: Sales tax figures, City of Mankato

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

$56,559 $52,400

52500 35000 17500 0

Source: City of Mankato

Mankato food and beverage tax - 2015 - 2016 175000 140000

$58,935

105000

$57,100

70000 35000 0

Source: City of Mankato

C. Sankey

MN Valley Business â&#x20AC;˘ JULY 2017 â&#x20AC;˘ 25

■

Agricultural Outlook

By Kent Thiesse

A historical perspective on the Farm Bill

ven though there is still over a year remaining on the current Farm Bill, discussions have already been ongoing since late last year on developing the next Farm Bill. The current Farm Bill, known as the “Agricultural Act of 2014”, expires on Sept. 30, 2018, and will include coverage of the 2018 crop year. Some members of Congress are hoping to move toward finalizing a new Farm Bill by the end of 2017 to avoid mixing the passing of the Farm Bill with the election year political landscape in 2018; however, the momentum to complete the new Farm Bill yet in 2017 seems to have slowed a bit in the past couple of months. During the next several months, we will review the process for developing a new Farm Bill, look at some of the key issues and challenges, and discuss potential provisions in the next Farm Bill. When most people hear of a Farm Bill they think of the commodity programs and payments that affect crop producers. Some people may be aware that crop insurance and conser vation programs are included under the Farm Bill, and some are knowledgeable that food stamps are part of the Farm Bill legislation. However, very few people outside of government officials and policy experts are aware that the Farm Bill also covers funding for rural fire trucks and ambulances, export promotion, international food aid, forestry programs, ag research at land-grant universities, and school lunch programs. The current Farm Bill passed in 2014 is 949 pages in length, and contains 12 separate Titles, which covers a multitude of programs that are administered by USDA.

26 • JULY 2017 • MN Valley Business

Depression brought first bill

Farm Bills date back to Great Depression era of the 1930s, with the first Farm Bill having just two Titles, and being only 54 pages in length. The “Agricultural Adjustment Act of 1933” established the crop loan program, which is still in existence today. Under the crop loan program, producers can take out a low interest loan with USDA, using the crop as collateral before it is sold. The producer can either repay the loan principal plus interest when the crop is sold, or can forfeit the crop to USDA. Over the past several decades, the crop loan program has been used extensively by farm operators to get needed working capital for purchasing crop inputs for the following crop year. The crop loan program is especially useful to crop producers during periods of low grain prices and tight profit margins in crop production, such as have existed during most of the time since 2014, the frame of the current Farm Bill. Land set aside and conservation programs were added to Farm Bills in the 1950s, with the establishment of the “Soil Bank Program.” While the Soil Bank Program no longer exists, there have been many other set aside and conser vation programs, including the popular “Conservation Reserve Program” (CRP), which was added in the 1985 Farm Bill. The current Farm Bill reduced the maximum CRP acreage from 32 million acres to 24 million acres, which is at the lowest maximum level since the initiation of the CRP program. The CRP acreage is currently very near the maximum of 24 million acres, so only selected

environmentally sensitive crop acreage is being allowed into the program through the “Continuous CRP Program.” There will likely be strong efforts by some members of Congress, as well as agricultural and environmental organizations, to increase the maximum CRP acreage in the next Farm Bill. There are also several other conser vation programs for farm operators and land owners that are part of the current Farm Bill, which will also need to be reauthorized in the next Farm Bill. Food stamps were added to Farm Bill in 1973, mainly because the food stamp program is administered through USDA. About 80 percent of the funding in the current Farm Bill goes to the Supplemental Nutrition Assistance Program (SNAP), which includes the food stamp program, the women, infants, and children (WIC) program, and the school lunch program. The Federal budget outlay for the SNAP program more than doubled from 2008 to 2013, due to the economic downturn in the U.S., higher food costs, and an easing in eligibility requirements for food stamps. However, Federal spending on SNAP programs has decreased in recent years. About 14 percent of the funding in the current Farm Bill was targeted for farm commodity programs and crop insurance programs. The current Farm Bill gave eligible crop producers the choice between the county-based “Ag Risk Coverage” (ARC-CO) program, or the “Price Loss Coverage” (PLC) program, for corn, soybeans, wheat, and other eligible commodity crops. The ARC-CO program is based on actual county crop yields and national average crop prices for a given crop year, compared to

5-year average benchmark yields and prices, while PLC program payments are based on national average crop prices for a given year compared to preset target prices. Over 95 percent of the corn and soybean acres in the Upper Midwest are enrolled the ARC-CO program for the 2014-18 crop years. The dairy and sugar support programs are also included under the commodity title of the Farm Bill. Several farm organizations and some members of Congress are calling for some changes and modifications to the current Commodity Title in the Farm Bill. The Trump Administration and some members of Congress have also advocated for major changes to the current Federal Crop Insurance program. Since the first Farm Bill in 1933, there have been 16 different Farm Bills in the past 80-plus years, with the next Farm Bill scheduled to be written in the coming couple of years. New Farm Bills are usually written about every five years, with the longest period between new Farm Bills being nine years from 1956 to 1965, and the shortest period being one year from 1948 to 1949. The “Agricultural Act of 1949”, which is also known as the “permanent farm legislation,” was never 8 repealed or allowed to expire, and becomes the Farm Bill legislation for many commodity programs in the event6 that a new Farm Bill is not enacted when the previous Farm Bill expires. Many provisions in the 1949 4legislation are very outdated. The legislation did not include the SNAP program, or many popular ag and conservation programs, including the CRP. The 2 existence of the fallback to the 1949 legislation gives Congress and the Administration extra incentive to 0 F Bills M Aon M J Jbasis. A S O N D completeJ Farm a timely The last Farm Bill was written in 2014, to cover federal fiscal years from 2014-2018; however, Congress has been known to extend Farm Bills beyond the expiration date. The 2008 Farm Bill, which expired in 8 2012, was extended an extra year to allow funding for 100programs to continue through 2013. Thus far, many 6 the discussion has been to have a new Farm Bill 85 completed by the time the current Farm Bill expired 4 on September 30, 2018, with very little talk of an 70 extension to the current Farm Bill. This could change 552 Farm Bill is not completed by mid-year of if a new 2018, as we get closer to the mid-term Congressional 400 elections. J F M A M J J A S O N D Passage of a new Farm Bill is very complex, with 25 F M from A farm M Jcommodity J A Sprograms, O N to D programsJ ranging food and nutrition programs, to conservation and rural development programs, and many more. In many cases, finalizing a Farm Bill in Congress can be quite controversial, and not necessarily by political party 100 lines. The various Farm Bill programs become quite 85 geographical, with members of Congress wanting to protect the farm, food, conservation, and economic 70 interests of their State or Congressional district. The very large federal budget deficit in recent years has 55 added a new element to successful passage of a large 40 Ultimately, there will likely be a compromise Farm Bill. reached, and a new 5-year Farm Bill will be passed by 25 F or M possibly A M not J until J 2019. A S O N D the end of J2018, Kent Thiesse is farm management analyst and vice president, MinnStar Bank, Lake Crystal. 507- 381-7960; kent.thiesse@minnstarbank.com

Agriculture/ Agribusiness Corn prices — southern Minnesota

(dollars per bushel)

— 2016 — 2017

$3.19

16 12

2 0

$3.18

Source: USDA

Soybean prices — southern Minnesota

(dollars per bushel)

— 2016 — 2017 208 100 166 85 $9.34 12 470 8 255 $9.13 4 40 0 0 J F M A M J J A S O N D 25 J F M A M J J A S O N D J F M A M J J A S O N D Source: USDA

Iowa-Minnesota hog prices

185 pound carcass, negotiated price, weighted average

— 2016 — 2017

20 100 25 16 $72.90 85 22 12 70 19 8 55 16 $65.05 4 40 13 0 J F M A M J J 25 10 J F M A M J J J F M A M J J Source: USDA

Milk prices

25 22 19 16 13

A A A

S S S

O N D O N D O N D

Minimum prices, class 1 milk Dollars per hundredweight

— 2016 — 2017 25 22

$18.88

19 16

$15.54

13 10

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

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

C. Sankey

MN Valley Business • JULY 2017 • 27

Construction/Real Estate Residential building permits Mankato

Residential building permits North Mankato

- 2016 - 2017 (in thousands)

- 2015 - 2016 (in thousands)

18000

4000

13500

$5,579 $1,943

9000

$452 $542

3000 2000

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 - 2016 - 2017

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

250

300

240 204

240

$159,450

$189,500

200 150

180

2017

100

120

2016

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

- 2015 - 2016

5.5

5.0

4.5

3.9% 20

4.0 3.5

3.6%

3.0

Source: Freddie Mac

Commercial building permits Mankato

Commercial building permits North Mankato

- 2016 - 2017 (in thousands)

- 2015 - 2016 (in thousands)

12000

4000

10000

$1,928

8000

3000

$1,222

6000

$202 $1,211

2000

4000

1000

2000 0

Source: Cities of Mankato/North Mankato

Source: City of Mankato

28 • JULY 2017 • MN Valley Business

Source: City of North Mankato

D C. Sankey

Gas Prices

Gas prices-Mankato

— 2016 — 2017

54 43

21 10 0

J $2.18 J A

Your

Yard

$2.23

Rediscover

Gas prices-Minnesota

— 2016 — 2017

5 54 43

$2.27

32 21 10

$2.25

C. Sankey

Source: GasBuddy.com

www.thomastreeandlandscape.com

Stocks of local interest

May 9

June 14

Archer Daniels Ameriprise

$42.36 $128.95

$42.13

Best Buy Crown Cork & Seal Consolidated Comm. Fastenal General Growth General Mills Hutchinson Technology Itron Johnson Outdoors 3M Target U.S. Bancorp Wells Financial Winland Xcel

$51.76 $56.55 $22.16 $45.47 $22.28 $56.31 $4.00 $65.60 $45.46 $197.69 $58.08 $51.49 $50.10 $1.35 $44.74

$128.83 $56.06 $57.10 $21.20 $43.63 $24.16 $58.65 $4.00 $69.20 $43.97 $209.74 $56.97 $52.47 $50.00 $1.30 $47.23

Percent change -0.6% -0.1% +8.3% -14.2% +4.3% -4.0% +8.4% +4.2% 0.0% +5.5% -3.3% +6.1% -1.9% +1.9% -0.2% -3.7% +5.6%

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C. Sankey

MN Valley Business • JULY 2017 • 29

Minnesota Business Updates

■

costs the retailer $0.75, Mathrani said. If the retailer ships the product to the consumer, the cost climbs to $5, he said. While picking up the order at the store, the consumer often shops and buys more, a sale the e-commerce retailer misses, he said.

■ GGP big on bricks and mortar The head of General Growth Properties, one of the biggest mall property owners, sees the recent spate of U.S. department store closings as a chance to expand its redevelopment operations with plans to buy 100 of the shuttered emporiums. General Growth owns River Hills Mall in Mankato. Sandeep Mathrani, chief executive of GGP, said he was not against department stores but has latched onto their concept of offering a wide range of products under one roof, according to Reuters. In the past six years GGP has redeveloped 115 department stores that once were mall anchors, and the real estate investment trust (REIT) has plans to redevelop another 100 in the next few years. “What we have done is, the mall has really become the department store,” Mathrani said. Mathrani is convinced malls can thrive and overcome an e-commerce surge, which has forced thousands of U.S. retail stores to close in recent years, if they are filled with the right mix of retailers with a product customers want. He believes the malls can survive and thrive because shoppers need to touch, feel and see a product, and because brick and mortar resolves the issue of the “last mile” in distributing consumer goods. When a consumer picks up an order at the store, it

■ Xcel cuts carbon footprint Across Xcel Energy Inc.’s eight-state service territory, the Minneapolis-based utility cut carbon emissions by 30 percent between 2005 and 2016, the company said. The company said in its Corporate Responsibility Report that it expects to cut carbon emissions by 45 percent, compared to 2005, by 2021. Xcel has customers in Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas, and Wisconsin

■ 3M water concerns resurface An informational meeting about water pollution in Washington County was swamped with questions for

state officials recently. A group of about 70 people gathered to learn about chemicals in their water that were manufactured by the

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

136 210 47 116 509

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

88 119 44 103 354

128,245

-35.3% -43.3% -6.4% -11.2% -30.5%

2000

111000

1000

Minnesota Local non-farm jobs

Major Industry 133000 133000

2016

2017

Percent change ‘16-’17

Construction 122000 122000 Manufacturing Retail 111000 Services 111000 Total*

2,815 1,957 1,017 3,571 9,360

2,739 1,473 952 3,202 8,369

-2.7% -24.7% -6.4% -10.3% -10.6%

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

(in thousands)

8000 3000 3000 6000

3000

122000

100000

Minnesota initial unemployment claims

30 • JULY 2017 • MN Valley Business

127,956

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.

April

- 2016 - 2017

Nine-county Mankato region

2,927

- 2016 - 2017

2,925

200000 150000

4000 2000 2000

100000

2000 1000 1000

50000

0 0

J J

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

3M, according to the Pioneer Press. Officials have said that the chemicals are particularly worrisome for fetuses, babies and breast-feeing mothers. Traces of the chemicals — called PFCs — were discovered in the drinking water of about 65,000 Washington County residents in 2004. Until recently, the urgency of issue of PFCs in water had been fading. 3M stopped making the chemicals in 2002, and since then the levels in fish, river water and people drinking the water has dropped. But this year the Health Department set a new standard for the pollution — which was twice as tough as levels set by federal officials. The new standards meant that city water wells in the area that were considered safe before were now considered dangerous.

(FDME) from fructose

■ Border tax debated

■ ADM expanding plants Archer Daniels Midland Company is constructing a new flour mill in Mendota, Illinois. The high-capacity facility will allow ADM to meet growing demand for flour throughout the Midwest. According to company officials, 133000 during 133000 the last two years, ADM has announced projects 3000 totaling more than $250 million in the state of Illinois, including the Mendota flour mill, new Animal Nutrition 122000 122000 production facilities in Effingham and Quincy, and the 2000 company’s partnership with DuPont Industrial 111000 Biosciences to produce furan dicarboxylic methyl ester 111000 100000

1000

100000 J F

J M

M J

J A

J S

2000 1000

S N

O D

8000 6000

4,999

4,918

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

- 2016 - 2017

200000

114,639

150000

102,046

100000 50000 D

1000 0

200000

6000 2000

150000

4000 1000

100000

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

April

100000

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

100000

2000

Mankato/North Mankato Metropolitan statistical area

150000

4000

0 J 0 J

D 0

200000

Minnesota number of unemployed

- 2016 - 2017

Nine-county Mankato region

2000 4000

A O

3000

3000 8000

Employment/Unemployment

F M A A M J

Local number of unemployed 8000 3000 6000

The chief executive officers of two major American companies - retailer Target and agribusiness ADM offered opposing views in a hearing before U.S. lawmakers on a proposed border adjustment tax, according to Reuters. Target CEO Brian Cornell has been one of the most vocal opponents of the Republican-backed border adjustment tax and testified alongside Juan Luciano, president 133000 and CEO of ADM, who spoke in favor of the proposal. The border tax would imposes a tax on imports while 122000 providing a credit for exports and has been proposed by House Republicans as part of a larger tax code overhaul. Target is a big importer of goods, while ADM exports. 111000 House Speaker Paul Ryan argues the proposed border tax, which is estimated to garner $1 trillion, will not affect 100000prices and will allow rate cuts for businesses while J Fdeficits, M A but M retailers J J warn A S that O itN could D not creating raise consumer prices as much as 15 percent.

0 F

J M

F M A A M J

M J

J A

2016

2017

2.8% 58,803 1,705

2.8% 58,706 1,713

J S

A O

S N

O D

Unemployment rates Counties, state, nation County/area Blue Earth Brown Faribault Le Sueur Martin Nicollet Sibley Waseca Watonwan Minneapolis/St. Paul Minnesota U.S.

April 2016 2.9% 4.0% 4.5% 5.2% 3.7% 2.6% 4.4% 4.1% 4.8% 3.3% 3.7% 4.1%

April 2017 3.0% 4.2% 4.7% 5.4% 3.5% 2.6% 3.9% 4.2% 4.7% 3.3% 3.4% 4.1%

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

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

Sponsored by the Carl & Verna Schmidt Foundation

Talking money with the hospital tr ying to treat you

By Tom Murphy | AP Health Writer

he financial counselor will see you now. Many people hit with a terrifying medical diagnosis like cancer also have to deal with another worry: whether the care will bankrupt them. Insurance that covers less and soaring treatment costs can swamp patients with piles of unexpected bills. To help ease money worries, hospitals and other care providers are increasingly using counselors to guide patients and, in some cases, arrange for financial help. Financial counselors can tell patients about help they didn’t know existed or coax them into accepting assistance they might be reluctant to request on their own. But they also work for the hospital or medical group doing the billing, so patients should seek a second opinion before making a big financial decision.

HOW DO COUNSELORS HELP?

There’s no set formula for what they do. They might start by reviewing a patient’s health insurance or checking if some other coverage can help pay bills, like a worker’s compensation or auto policy for people who have been in an accident. They also can give cost estimates for care based on the coverage or alert patients if their insurer wants to approve a treatment before it happens. “Many patients rely on us to explain how their health benefits work,” said Margie Barton, a financial counselor at the IU Health Melvin and Bren Simon Cancer Center in Indianapolis. “They are preoccupied with just getting well again.” Counselors may suggest how to get financial help or assist with the paperwork. They can tell someone if they are eligible for a hospital charity program or connect them to a free drug supply or discounts from the manufacturer. They may also find charities to cover expenses like groceries or arrange transportation to medical appointments. “Many times people don’t even realize what’s available until they are sick and they need it,” said Richard Gundling, a senior vice president with the Healthcare Financial Management Association, which represents finance officials at hospitals and other medical settings.

32 • JULY 2017 • MN Valley Business

WHO GETS THIS HELP?

A hospital may refer anyone seeking expensive care to a financial counselor. That frequently includes cancer patients and also neurology or rheumatology patients. Counselors review every patient’s treatment plan at Barton’s cancer center, which sees hundreds of patients every week. Five years ago, only about half the plans were reviewed. Barton says about 80 percent of the people they review will need some help with a significant expense. That percentage has climbed dramatically in the last few years. Some chemotherapy regimens can cost $20,000 per dose, and it’s common for annual deductibles – the amount a patient pays before coverage starts – to climb as high as $6,000. That can hit cancer patients especially hard because this expense generally resets at the start of the year, so someone in the middle of treatment may have to meet the deductible more than once over the course of treatment.

CAN YOU TRUST THE COUNSELORS?

They can offer many resources for help, and they understand what patients are going through. But patients should still seek a second opinion before making a major financial decision like signing up for a loan or a payment plan, said Caitlin Donovan, a spokeswoman for the Patient Advocate Foundation, which helps patients deal with medical bills and problems accessing care. Patients need to make sure the amount they owe is correct and that a lower total cannot be negotiated. Sometimes, a discount can be bargained in return for one payment in full. They also should make sure that terms are manageable and they don’t qualify for additional help. Many nonprofit agencies are available to help with billing issues. Patients also can hire billing advocates, but they will take a fee or a portion of any money saved as payment, Donovan said. MV

Sponsored by the Carl & Verna Schmidt Foundation

More workers save in their 401(k) By Stan Choe, AP

orkers are more likely to be saving for retirement, at least among those eligible for a workplace plan, and lower-income employees have made some of the biggest gains in recent years. Those are two of the encouraging trends borne out of numbers from Vanguard, which looks each year at how participants are behaving in 401(k) plans and similar retirement accounts for which it keeps records. Vanguard is one of the nation’s big record keepers, working with 4.4 million participants in definedcontribution plans. The outlook for retirement in the country is by no means cloudless: Many workers, particularly those in low-income households, still have no access to a 401(k) plan or similar account. And among those who do, experts say savings levels broadly still aren’t high enough to guarantee that most households will be able to maintain their standard of living in retirement. But some signs point to progress. Here’s a look at some of the trends found from Vanguard’s survey, up and down:

Workers are more likely to be saving.

Across Vanguard’s plans, 79 percent of all workers eligible to save in a 401(k), 403(b) or similar account are doing so. That’s up from 68 percent a decade ago, and a big reason for it is that workers are getting a more forceful push to do so. Nearly half of employer plans, 45 percent, sign their workers up automatically for the retirement plan. That’s triple the rate from 10 years ago. Workers still have the choice to opt out, but requiring that extra step means more end up saving, and it’s another example of trying to use inertia to help. Only 10 percent of workers in plans with automatic enrollment aren’t participating, versus 37 percent at plans where signing up is voluntary. Most typically, employers are enrolling workers to contribute 3 percent of their pay. Not only that, many have also set their programs to automatically raise workers’ savings rates each year. Most increase contributions by 1 percentage point, most typically up to a cap of 10 percent.

Lower-income workers are participating more.

Workers pulling down big paychecks have always been the most likely to save in a 401(k). More than 90 percent of workers making $100,000 or above participated in their plan last year, the same as it’s been through the past decade. The story hasn’t been so good for lower-income workers, who likely feel less comfortable diverting some of their paycheck. A decade ago, for example, only 45 percent of workers making less than $30,000 annually participated in their plan. That was less than half the rate of the highest-paid workers. But the participation rate for lower-income workers has been steadily climbing in recent years, and hit an estimated 65 percent last year. So while they still participate less often, the gap between how much lower-income workers participate and how much other groups do is narrowing.

Younger workers are also more likely to save than before. Odds are only slightly better than a coin flip that a young employee under the age of 25 is setting aside some pay in a 401(k) or similar plan. Last year, an estimated 54 percent of such eligible workers were doing so. But that’s a much higher rate than a decade ago, when only 38 percent of them were. Older workers have also made gains, but not at the same rate. Those aged 35 to 44, for example, have seen participation rates rise 7 percentage points to 77 percent, compared with the 16 point gain for the youngest workers. MV

MN Valley Business • JULY 2017 • 33

Greater Mankato Growth 34 • JULY 2017 • MN Valley Business

Greater Mankato Growth MN Valley Business • JULY 2017 • 35

RIBBON CUTTING

Atwood Property Management & CENTURY 21 Atwood Realty 101 South Minnesota Avenue, Saint Peter

Growth in Greater Mankato RIBBON CUTTING

RIBBON CUTTING

Dunkin’ Donuts 1705 Madison Avenue, Mankato

iSpace Environments & Tailwind Group 100 Warren Street, Suite 704, Mankato

Killion Smith Law Firm 525 South Front Street, Mankato

RIBBON CUTTING

Stages of Change Center 100 Warren Street, Suite 335, Mankato

Valley Landscape Supply 1040 North River Drive , Mankato

Veros Tacos 251 Bunting Lane, Mankato

Cavaliers

Greater Mankato Growth

Cavalier Calls on the Newest Greater Mankato Growth Members

BridgeWater 543 Oakwood Drive, Janesville bridgewatermn.net

Goodtimes Manufacturing 130 Ruth Street, Mankato goodtimesmfg.com

AT&T Authorized Retailer 511 Holly Lane, Suite 110, Mankato

Wealth Enhancement Group 810 Madison Avenue, Suite 1, Mankato

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

@greatermankato

@greatermankatogrowth

36 • JULY 2017 • MN Valley Business

Greater Mankato Growth

@gmgmankato

5:00 - 7:00 pm July 11 August 1 September 5 October 3 November 7 December 5

7:30 - 9:00 am

Unique Specialty & Classics Snell Motors Cambria MRCI - East Park Mayo Clinic Heath System Courtyard by Marriott Hotel & Event Center

July 19 August 16 September 20 October 18 November 15 December 20

AT&T Blethen, Gage & Krause Ecumen Pathstone Living True Facade Pictures Old Main Village City of Eagle Lake

2017 Business Before Hours Sponsored by:

May Business After Hours hosted by iSpace Environments & Tailwind Group

May Business Before Hours hosted by Kato Insurance Agency

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.

F rum greater mankato series

Tuesday, July 18

11:30 am - 1 pm Mankato Clinic Administration Office SPEAKERS Janet Silversmith Director of Health Policy, Minnesota Medical Association

Dr. Jim Hebl Regional Vice President, Mayo Clinic Health System southwest Minnesota region

Randy Farrow CEO, Mankato Clinic

Monday, September 25, 2017 Courtyard by Marriott Hotel & Event Center

Prime Your Business is designed to be the PREMIER Business Event of the Year for Greater Mankato Growth. At this event businesses will spotlight products, services, and aspects of their business, while at the same time gaining contacts, having new and innovative idea exchanges with businesses from across the region.

Booths are still available. First come, First Serve. Get Registered NOW! greatermankato.com/prime

MN Valley Business • JULY 2017 • 37

Greater Mankato Growth

Health Care: What’s Going on and What It All Means Luncheon Forum

2017 MN SENIOR GAMES RECAP

By Katie Adelman, Marketing and Communications Coordinator

Pickleball Mixed Doubles, 70-74 Left to right Rick Fabing & Kathy Kelly (runner-ups) and Earle & Elizabeth Peters (champions). Earle & Elizabeth are from Mankato

Race Walk Participants

10k Male Gold Medalists

Including overall 1st place Lyle Besemer of Blaine (time of 45:33) on the far left.

or the first time since 2012, the MN Senior Games returned to Mankato the weekend of May 18-21. “The overall feedback from athletes and Minnesota Senior Games Coordinator Fritz Bukowski was that the event was a resounding success,” said Chris Willaert, Director of the Mankato Sports Commission and the head of this year’s games. Except for Track & Field and Tennis being cancelled because of inclement weather, the Senior Games weekend featured more than 20 sports and approximately 75 total events.

Greater Mankato Growth

“Had the temperatures been 20 degrees warmer with that rain, the Track & Field athletes would have been running,” said Willaert. “And had the temperatures been what they were but no rain, both Track & Field and Tennis would have gone on as planned, too.” Nearly 400 athletes were in town for the four-day event, with the first gold medals of the tournament being awarded early Thursday morning. The last ones handed out late Sunday afternoon went to locals Earle and Elizabeth Peters in Pickleball Mixed Doubles. Pickleball, the most popular sport in this year’s games, was moved indoors from the Tourtellotte Park courts because of the weather. “We changed from that plan to the Mankato Family YMCA when John Kind and Neil Kaus offered their courts and it worked out perfectly,” said Willaert. Participants must be 50 or older in the year of the competition being held to be eligible for the Senior Games and can compete in a wide variety of events including archery, bowling, table tennis, cycling,

38 • JULY 2017 • MN Valley Business

swimming, race walk, badminton and more. Many participants traveled to the area for one or two specific events but, while in town, many competed in other events just for fun. “We had athletes from all over the upper Midwest, as well as Arizona, California, Florida and Texas. Any time you can expose people to your community in a positive way who have either never been here or rarely do, that’s a great thing,” said Willaert. He added that this event generated an economic impact upwards of $250,000 and had a positive impact on hotels, restaurants and retail establishments. Mankato will also host the 2018 Minnesota Senior Games. It is expected to draw as many as 800 athletes because it’s a national-qualifying year, and Willaert added that he’s working to make Mankato a more regular host of this event. “It’s like any event: once you’ve done it, you figure out what works, what doesn’t and it can be a little easier going forward because you know what to expect,” he said. A complete list of sports and results can be found at MNSeniorGames.com. Future announcements about the 2018 MN Senior Games will be posted there, as well.

Alive After 5, sponsored by Schell’s Brewery, and hosted by the City Center Partnership, returns to Greater Mankato.

Join us in August on Thursdays from 5 – 7:30 pm at Civic Center Plaza. Gather with your co-workers, friends and family to enjoy live music, food and beverages in a relaxed outdoor setting. The Alive After 5 free summer concert series kicks off on August 10th. Bring your lawn chairs and blankets and enjoy a fun evening out in City Center Mankato! ARTISAN & CRAFT POP-UP MARKET! Learn more at: citycentermankato.com/alive Free parking available in the U.S. Bank parking ramp and Cherry Street Plaza parking ramp.

2017 Music Line Up: August 10 August 17 August 24

New Primitives DW3 Crankshaft & The Gear Grinders Hicktown Mafia

August 31

Band Sponsors: KMSU/Clean Water Land and Legacy Amendment Supporting Sponsor: MinnStar Bank Media Sponsors: KEYC and Radio Mankato Additional Support provided by Tailwind Group

A U G U S T

Tuesday, July 25, 2017

8:30 am - 4:00 pm GreenSeam reception to follow from 4:00 - 6:00 pm Courtyard by Marriott & Event Center 901 Raintree Road, Mankato, MN 56001

For more information and to register visit: greenseam.org/events All panels and keynotes will be presented by legal and financial professionals. Stay tuned for more details to come.

MN Valley Business • JULY 2017 • 39

Greater Mankato Growth

Join us at “The Financial Future of Agribusiness” hosted by Eide Bailly, Gislason & Hunter LLP and Profinium Bank. This event will bring all entities from production to experts in accounting, financial and law together to strengthen our region’s position in the marketplace. Topics of discussion include succession planning, technology and cyber security, employment law issues and much more.

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Mavs Make MN Cup

Jackson Jones took home the grand prize at the 2017 Big Ideas Challenge for his idea, Primate Longboards. Photo by Social Butterfly.

Minnesota State University, Mankato students advance to semifinals By Brook Ferede, Marketing Major at Minnesota State Mankato

hree Minnesota State University, Mankato students have advanced on to the 2017 MN Cup semifinals. Young visionary entrepreneurs, Andrew Hanegmon, Francis Kanneh and Jackson Jones, hold innovative entrepreneurial dreams that are just beginning.

Jackson Jones, Primate Longboards Major: Marketing Jones started his business, Primate Longboards in a small Mankato garage where he uses his skills to hand make artistic boards. The demand for his longboards prompted him to participate in the Big Ideas Challenge. After winning the challenge earlier this year he invested the prize money in upgrading his shop tools and equipment as well as investing in marketing to expand sales beyond Minnesota.

outstanding skills and resources to lead entrepreneurs to success. He says they are trying to give people opportunity to unleash their ideas and share them so they are recognized. Learn more about Iron Range Makerspace at ironrangemakerspace. com. Francis Kanneh, UnderRecruited Preps Major: Marketing

Minnesota State University, Mankato College of Business

The three submitted their ideas earlier this year for the competition; the largest statewide entrepreneurial competition in the country. They landed among 80 other Minnesota based entrepreneurs, inventors and innovators in the race for a share of the $450,000 of seed money.

home $10,000+ in prize money.

What started as an idea in his dorm room, has become a bolstering online business that gives underrecruited athletes exposure to 50,000+ college MN Cup Executive Director and coaches from Division I, II, III and Minnesota State University, Mankato Learn more about Primate Longboards NAIA schools throughout the country. alumnus, Melissa Kjolsing Lynch, at primatelongboards.com. Kanneh’s personal struggle with says the semifinalists will have the earning an athletic scholarship was the opportunity to choose from 200 Andrew Hanegmon, Iron Range impetus and drive for him to launch his mentors to finalize their business Makerspace own vision. models and plans. Finalists will be Major: Integrated Engineering honored and announced on October 9. Kanneh works in between classes as This alumnus’ start-up, Iron Range he works to make his idea a reality. Hanegmon and Jones were also Makerspace, located in Hibbing, He is committed to athletes and uses winners of the 2016 and 2017 Big Minnesota helps create jobs while his website to shape student athletes’ Ideas Challenge, an annual venture fueling economic development on the futures. competition organized by the range. Minnesota State Mankato College Learn more about UnderRecruited of Business where the winner takes Hanegmon and his team have Preps at underrecruitedprep.com. To learn more about the College of Business or the Big Ideas Challenge visit cob.mnsu.edu. MN Valley Business • JULY 2017 •

Our commitment to the community

Healthy communities mean healthy patients, employees, families and friends. At Mayo Clinic Health System in Mankato, we have nearly 3,000 employees, providers, volunteers and physicians whose dedication, expertise and community involvement ensure that residents in the communities we serve have access to expert, whole-person care. In 2016, we invested more than $180,000 in community-based health and wellness programs, including local Relay for Life events, United Way, YWCA Girls on the Run, Project for Teens and many others.

Employees volunteered more than 2,670 hours in 2016 with nonprofit organizations in the Mankato area, including BackPack Food program, YMCA mentoring, Kiwanis Holiday Lights, American Heart Association and many others.

mayoclinichealthsystem.org MN Valley Business â&#x20AC;˘ JULY 2017 â&#x20AC;˘ 42