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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 August 2016 • Volume 8, Issue 10

Rivers and lakes were an integral part of many area communities during early settlement and they remain a powerful economic draw for businesses across the region.

Collette Stenitzke found a spacious new home for her Little Stars Early Learning Center inside the renovated space of a former Mankato fire station on Madison Ave.

Margot Weyhe started selling interior design products from a local store 26 years ago. Now she owns and operates The Design Element in Mankato.

Lacey Hassing used her education in culinary arts and her experience working in restaurants to open her own business, Lacey’s Catering in Wells.

MN Valley Business • august 2016 • 3

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August 2016 • VOLUME 8, ISSUE 11 PUBLISHER John Elchert EXECUTIVE EDITOR Joe Spear ASSOCIATE EDITOR Tim Krohn CONTRIBUTING Tim Krohn WRITERS Kent Thiesse Nell Musolf Heidi Sampson Tim Penny PHOTOGRAPHERS Pat Christman Bre McGee 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..........24 ■ Retail trends.....................................25 ■ Construction, real estate trends.....26 ■ Gas trends........................................27 ■ Stocks...............................................27 ■ Agriculture Outlook..........................28 ■ Agribusiness trends..........................29 ■ Minnesota Business updates............30 ■ Job trends.........................................30 ■ Greater Mankato Growth..................32 ■ Greater Mankato Growth Member Activities ...........................34

From the editor

By Tim Krohn

Decades kind to businesses, residents

t’s hard to remember exactly what the Mankato-North Mankato business scene looked like more than three decades ago. When I started working at The Free Press 33 years ago, the business sector was flourishing but in the midst of transformational changes. The downtown had just come off an urban renewal remake in the late ’70s that turned much of the open Front Street into a covered mall. It was a response, used in many communities, to save downtowns as malls were being built on the edges of towns. Madison East Center was a growing force in the ’80s, featuring chain stores like Woolworth’s and a variety of family-owned shops. But the downtown would, for a while, stay strong. The longtime anchor — Brett’s Department Store — was still thriving but being battered by new competition and changing shopping habits. It finally succumbed in 1992 after operating for nearly 125 years. Soon, many of the retail businesses downtown fell like dominoes as retail moved and grew on the eastern hilltop. While there is always nostalgia for lost businesses — Harpies’ Bazaar, Don’s Hobby, Mahowald’s come to mind — it’s hard to argue the business sector in Mankato and North Mankato isn’t far stronger, more diverse and vibrant today. Unlike many communities whose downtowns never recovered from changes in the ’70s and ’80s, the Mankato-North Mankato core has made an amazing transformation. The entertainment- and office-based City Center is alive, exciting and vibrant. Anchored by River Hills Mall

4 • august 2016 • MN Valley Business

and big boxes such as Fleet Farm, Target, and Wal Mart, the hilltop has most ever ything shoppers desire. There’s always the next best thing in stores that people will hope open in Mankato, be it Trader Joe’s or Hudson’s Bay. And many of them will in the years ahead as the city’s reputation as a regional hub grows. While retail and restaurants garner the attention of the public (who doesn’t like a new place to eat or shop?), the other parts of the local economy also have dramatically changed. And while retail is a major economic engine, it’s those other areas that have brought real financial, brainpower and quality of life gains. Manufacturing always has been strong and diverse, from food processing at CHS and ADM to Imperial Plastics and Dotson Iron Castings. Today it’s even stronger with many longtime companies and many national and international companies having a presence here. It seems professional services have grown as much or more than any area. Firms such as Bolton & Menk started here and have grown exponentially over the years. Accountants, attorneys, consultants, financial services and other professional service businesses have thrived. Those businesses and the area colleges and the university have a mutual beneficial relationship in the Mankato area. The cities’ business sector also has gained a more professional, mature nature over the years. As more high-tech and professional businesses grow, more skilled, highly educated, smart people come to the community. That kind of talent is good for the local economy but also for the

community’s quality of life in general. And local government — which has an integral tie to the business environment — has grown more professional as well. Local government leaders are well educated and experienced in their fields, often bringing in expertise from other communities and states they have served in. Like many longtime residents, watching the changes and growth here has been amazing. The region’s business sector and residents’ quality of life are strong and poised for even more good things to come. MV

Tim Krohn is Associate editor of Minnesota Valley Business. Contact him at tkrohn@mankatofreepress.com or 344-6382. Follow him on Twitter @jfspear.

Local Business People/Company News

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Sherlock joins Blethen firm

Jacob “Jake” Sherlock has joined Blethen, Gage and Krause. Sherlock served as the judicial law clerk for Judge Larry M. Collins in the Waseca County District Court. He represents clients in a wide array of litigation-related matters, including personal injury, product liability, family law, criminal defense, and insurance law. He graduated cum laude from William Mitchell College of Law in 2014. While attending law school he worked as a law clerk for a civil litigation firm in Minneapolis. He also served as the research assistant for two professors and served as a staff member for Cybaris, William Mitchell’s Intellectual Property Law Review. Blethen, Gage and Krause has a new address: 100 Warren Street, Suite 400, Mankato.

BiPro partners with soccer

BiPro USA, a whey protein isolate manufacturer based in Le Sueur, has launched a partnership with the Miami FC, a professional soccer team that competes in the North American Soccer League. BiPro is the official protein supplement of the club and is used by players after practices and games. Miami FC is competing in it’s first-ever NASL season this year. The team is coached by Alessandro Nesta, a renowned player who was a regular with the Italian National team, helping them win the 2006 World Cup. He enjoyed a successful 20-year career playing professionally in Italy with Lazio and AC Milan. ■■■

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Olness inducted into bank group

The Minnesota Bankers Association recently inducted Bruce Olness, chairman of CornerStone State Bank in Le Sueur, into its Pioneer Club. The Pioneer Club honors bankers who have been in the banking industry for 50 or more years. Olness’ banking career started upon advice from Pern Canton, the president of the American State Bank of Moorhead. He grew up on a sugar beet farm north of Moorhead. Upon attending the University of Minnesota and later graduating from Moorhead State University with an administration/ finance degree, he joined the office of the Comptroller of the Currency as an examiner in 1966. He later joined the First National Bank of St. James as vice president, then joined the Le Sueur State Bank as President. In 1997 the bank name was changed to CornerStone State Bank, which currently has seven locations.

First National names VP

First National Bank Minnesota promoted Ben Gossett to vice president, business banker. He is based in the St. Peter location and concentrates on Ben Gossett b u s i n e s s banking services including commercial loans. He earned his degree in finance

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Mankato Magazine July 2016

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Business Commentary

By Tim Penny

Keillor provided narrative for rural Minnesota

ast month Garrison Keillor hosted his final “A Prairie Home Companion,” a public radio broadcast with a history a decade longer than that of Southern Minnesota Initiative Foundation’s (SMIF), which is celebrating its 30th anniversary this year. There’s no denying Keillor’s radio show, particularly his “News from Lake Wobegon” monologue, has crafted one of the most pervasive narratives for rural Minnesota and our small, Midwest towns. For those of us living in and working for the future of that mythical - yet somehow incredibly real - “Lake Wobegon,” we understand that Keillor’s sign-off from a place where “all the women are strong, the men good-looking, and the children are above average” is a somewhat misleading simplification. Through SMIF’s early childhood programming, we understand that all of our children are not above average, but instead struggle due to income and racial

achievement disparities. In our rural region, we are home to many new immigrant families who can feel isolated by our business-as-usual approach, no matter how much “Minnesota nice” envelopes it. And, as evidenced by the photo of me with Keillor, I’ll just say not all the men are necessarily good-looking. Yet, one of the things the more than 1,500 Lake Wobegon tales have done is create a rural voice pumped weekly into the radios of rural and urban dwellers alike. Keillor’s stories are highly edited, nostalgia-inducing yarns filled with a somewhat realistic yet limited cast of characters. The question may now become: with the departure of Keillor and his monologue, how else can we carry the rural narrative forward? Keillor’s show has created a nostalgic connection point for those of us who reside in rural areas and for those with rural roots, but those roots are weakening with generational change. The stage is set for a new

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Tim Penny, left, the late Bruce Vento and Garrison Keillor in Washington, D.C., while Penny was in Congress voice - even better, new voices to step up to the mike, or blog, or podcast, or camera lens, or whatever medium they may find to help tell our rural stories. Perception becomes reality, William James observed. If that’s indeed the case, the stories we tell ourselves and others are important. In Minnesota, while 40 percent of the population still lives in Greater Minnesota, our representation in mainstream media does not seem to reflect that proportion. Additionally, we face researchers who have been predicting the doom-and-gloom of rural Minnesota for decades, locals who pessimistically eye empty main streets and yearn for the better days of yore, and outsiders who pass through and often pass judgement of these “dying” places. However, I argue that there’s a new vitality in many of our rural communities and that we need to be the ones telling that story. Certainly, researchers like Ben Winchester and others at the University of Minnesota’s Extension are providing evidence that things are not as dark for Greater Minnesota as people may tend to believe. But beyond statistics of new blood coming back into rural areas, especially in our 20-county region, there is a lot to celebrate: enviable quality

of life, beautiful landscapes, a world-class medical facility, many new businesses, quality schools, and generous, dedicated residents. In addition, there is a spirit of entrepreneurialism that lives on in our small towns. At SMIF, we see it as our job to help spark that spirit and give seed investments to help them grow. As with everything we do, this needs to be a collaborative, regional effort. A growing tourism industry in Fillmore County must be seen as a success for surrounding counties; a theater project in Le Sueur must be celebrated by any town within an easy drive. Most importantly, we should all be vigorous advocates of our region and more hopeful in our thinking of what can be. With Keillor stepping aside, we must be the ones to reclaim our own narrative. We must become the story tellers offering a more complete, more hopeful telling of what is and where we’re headed.

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Kamp Dels, Grant (left) and Brandon Pope.

By Tim Krohn | Photos by Pat Christman and Bre McGee From Mankato to Madison Lake and Lake Crystal to Minnesota Lake, many of southern Minnesota’s communities were born on the water. In early settlement, the lakes and rivers were a practical but important resource, allowing steamboat traffic for river towns and providing water, ice and fish — and a cool place to dip into on steamy summer days. Today their economic impact remains immense, albeit for more leisurely activities. Fishing, camping and boating always have been big on area lakes, but increasingly people are rediscovering the many rivers in the region. Businesses like Bent River Outfitters have led hundreds of canoe, paddle board and kayak outings on the rivers. And more anglers are launching their boats — often a locally made Alumacraft — into the Minnesota River, where most every species of fish found in the state are abundant. Dranttel Sales & Service in St. Peter has been catering to those boat enthusiasts since 1966. Owner Lee Gansen said the popularity of boating is stronger than ever. “The last few years the boat market has been good.

The boat companies have some good programs and the motor manufacturers are giving cash incentives and extended warranties.” Many of the boats Dranttel sells are from the nearby Alumacraft Boat Co. With 153 employees in the St. Peter plant, Alumacraft and its sister plant in Arkansas turn out some 14,000 boats each year, which are sold across the U.S. and in other countries. President James Irwin said the Alumacraft brand has deep allegiance in Minnesota and around the country. “I can’t go anywhere without someone saying ‘I have an Alumacraft, and my dad had an Alumacraft and grandpa had an Alumacraft.” While boat makers are turning out bigger and better boats aimed at both fishing and recreation, Irwin said anglers remain the core customer for his company. “In Minnesota you’re never going to see hard-core fishing go away. It’s in the culture, you grew up with it, you look forward to doing it.” That fishing culture is what led Del Pope in 1955 to start a tiny fishing resort on Sakatah Lake in Waterville. But just as boats and how they’re used have changed, so have resorts. That’s seen nowhere better than at Kamp Dels, where many of Pope’s offspring and

Cover Story

10 • august 2016 • MN Valley Business

Lee Langner holds his daughter, Nora, during a recent camping trip at Kamp Dels in Waterville. relatives now oversee a megaresort campground. Grant Pope, a third-generation family member involved in the resort, said fishing is still important but family vacation expectations have changed. “It started as a fishing resort. As time has progressed it’s changed more into recreation. We’ve always been very family oriented,” Pope said. “People want to do things. They want a camp spot but they want to be able to send their kids out during the day and do things all day and at 10 o’clock they’re worn out.”

A Kamp with ever ything

There are just over 1,800 residents in Waterville. During the summer, particularly on weekends, the population of Kamp Dels nearly rivals that of the community. The campground has 200 overnight sites and 200 seasonal sites that people lease for the season, setting up and leaving their RV on site. “Most of our business is from an 80-mile radius. We draw a lot

from the suburbs around the Cities and some from Iowa,” Pope said. Return customers are a majority of business. “People who hadn’t heard of us, once they come they almost always come back,” he said. “We’ve gone from a campground to more of a resort. Camping is big but we concentrate on recreation.” Kamp Dels, owned by Pope’s father Nyl and his uncle Tobin, has a dizzying array of activities. The centerpiece is a large new water park that opened this year. “It was a ton of work but it was worth it.” The camp also sports pools, paddle boats and canoes, three large playground areas, including some two-stor y ones, an underground racket court, fitness center, tennis courts, basketball courts, driving range, pony rides, mini golf, fighing boats, pontoons and a farm petting zoo. And, for those who don’t want to venture onto the lake for fishing, they have a man-made, catch-andrelease fishing pond. From the few cabins Del Pope

started with, Kamp Dels now covers 40 acres. And the family has about that much surrounding land that is undeveloped. Pope suggested the resort isn’t done growing yet. “We have some things in the making. But we keep that in the back pocket.”

Alumacraft: The fisherman’s boat

Alumacraft’s plants in St. Peter and Arkadelphia, Arkansas, produce more than 80 different models of fishing boats, including the Semi-Vees, bass boats, crappie boats, Jon boats and canoes. Ir win said that while the company is building more big boats for big waters and more boats that can be used for both fishing and taking the family out for tubing or skiing, the heart and soul of the company is fishing. “Our best-selling model is the 16-foot Classic, an entry-level, deep-V, multi-species fishing boat,” Irwin said. But larger boats, including their Edge series of 17- to 18-footers are increasingly popular, as are their 20-foot boats.

MN Valley Business • august 2016 • 11

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Steve Schneider performs a final inspection test on an Alumacraft boat. “The economy has improve and people are looking for bigger boats. Most of them are used for fishing on big waters.” While the trend may be toward bigger boats, Irwin suspects the 16-footer will remain a popular mainstay. “You can tow it behind a smaller vehicle, you can launch it and load it alone. It’s easier to use by yourself and easier to store.” Like all industries, boat manufacturing has consolidated over the years. Alumacraft’s biggest competition is Bass Pro Shop, which sells the Tracker boats. The other big name is the Brunswick Corp., which owns the Lund, Lowe and Crestliner brands of boats and the Mercury motor line. Irwin said the Brunswick brands combined do about the same number of sales as Alumacraft. “We’re the largest independent boat maker out there.” Alumacraft has gone through several ownership changes over the years. Dave Benbow, a 24-year veteran of Alumacraft, bought the company in 1998. He died in 2010, and in 2012, Alumacraft was sold to Corinthian Capital Group, a private equity firm. Irwin said the Benbow family

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was careful to sell the company to someone who understood Midwest fishing and Alumacraft’s history. Many of the Corinthian investors are Minnesota based. “The family of the late owner took less money than they could have gotten from others because Corinthian understood the business,” he said. Alumacraft traces its roots to German-immigrant Eugene Tetzlaff who opened a blacksmith shop in Minneapolis in 1893. During World War II, the company converted to war production, making aluminum bridge pontoons and aircraft parts. After the war ended in 1945 the company found itself with a surplus of both aluminum and skilled workers. They began to make aluminum boats, a novel idea in an era of wooden cedarstrip rowboats. They designed the industry’s first hull made from stretchformed parts. Stretch-forming, which is used in aircraft construction, allowed a hull to be fully formed before assembly. The process greatly reduces stress on the rivets before or after assembly and during use. In 1970, Alumacraft, then owned by Timpte Industries, closed the Minneapolis plant and opened a 100,000-square-foot plant in St. Peter.

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Four years later, Alumacraft gained a major foothold in the southern market when it bought the General Marine Corporation of Arkansas.

The boat seller

Lee Gansen, owner of Dranttel sales & service.

14 • august 2016 • MN Valley Business

Dranttel Sales & Service was started by Gansen’s mother- and father-in-law, John and Carol Dranttel 50 years ago. The business started on their farm, carrying snowmobiles and then lawn and garden equipment, ATVs and motorcycles. In 1981 they built a store in St. Peter and added marine equipment, including Alumacraft boats. Gansen has seen a lot of change in the boats and motors he sells and services. “Things get fancier over the years. They

have hydraulic steering now, like power steering in a car,” he said. “What’s really exploded is much wider and deeper boats for big-water capabilities and allowing more of the family to get in the boat. They’re almost like getting in a car, with all the dif ferent creature comforts, but you’re on the water.” Longer boats are also the norm now. “The 17- to 20-foot boats are popular. Years ago a 16-foot boat was a big boat.” Those boats are sought as more people travel to big waters like Leech Lake, Lake of the Woods or the Great Lakes. While Dranttel’s core market is for those heading to the lakes or rivers to fish, they are seeing more “crossover” Bryan Schultz works on a motor at Dranttel’s boats sold that accommodate fishing and things like tubing or means the service technicians at water skiing. Dranttel have a lot more to keep “The guys often want it for the abreast of. fishing side and the wives want it “Twenty-five years ago you had more for cruising. a two-stroke motor and you mixed The advancement in motors

gas and you were on your way. Now they are four-stroke and fuelinjected. There’s all types of technology you have to keep chasing.” MV

MN Valley Business • august 2016 • 15

Little Stars Daycare owner, Collette Sternizke, sits in her office that once held firetrucks.

Dedicated to day care Little Stars in former fire station By Nell Musolf Photos by Bre McGee

ittle Stars Early Learning Center owner Collette Sternitzke has a long history of working with children. According to her mother, Sandi Andersen, Sternitzke used to spend her summers making kids’ crafts in the family home in Prior Lake. Sternitzke also put in a lot of hours babysitting during high school and when she went to college at Minnesota State University. “I originally majored in elementary

education,” Sternitzke recalled, “but then I switched to industrial organizational psychology because I became interested in the business side of education.” After receiving her bachelor’s degree in 1993, Sternitzke worked for Taylor Corp. for a few years. After her son was born, Sternitzke decided to go into the daycare business with another mom. That business, Little Stars, opened in 2000 and has been growing ever since. The business,

Cover Spotlight

16 • august 2016 • MN Valley Business

One-year-old, Kessly Pugh, smiles while climbing a plush blocks in the mobile infants room at Little Stars Daycare in Mankato. which was originally located on the corner of Main Street and Second Avenue, recently moved into far more spacious surroundings at 300 Madison Avenue, the site of a former city of Mankato fire station. “It’s been wonderful,” Sternitzke said about the move. “It’s great having so much more space and the neighborhood has been very welcoming. One woman offered to come over and rock the babies for us and when the kids take a walk past Mocol’s grocery store, one of the men inside has a puppet that he waves at them. It’s a very friendly and welcoming part of town.” Sternitzke first started thinking about making a move back in 2014 when she realized the daycare was outgrowing its current space. She connected with Region 9 Development Commission for help and was greatly impressed with the organization. “My mentor, Wendy Anderson, was instrumental in helping me connect with people to find a new space,” Sternitzke said. “Through Region 9 I connected with the Tailwind Group and that’s how we found the fire station.” At first Sternitzke harbored a few doubts about redoing the fire station into a day care. “I remember driving down Second Street on my way to take a look at the fire station and I thought, ‘this is not going to work’ but Tailwind saw a vision of windows with big rooms that let in a lot of natural light that would be great for a day care. Having natural light is a big asset for a day care because that’s important for small children to have,” Sternitzke said. Tailwind along with Max DeMars Construction were responsible for the makeover on the old fire station, turning the utilitarian building into a light and airy space. Little Stars features many big windows since each

garage door in the old fire station has been turned into a floor to almost ceiling window bringing the outdoors inside. The building Little Stars is housed in is owned by the Tailwind Group and leased to Sternitzke. She has high praise for her new landlord. “They’ve been great and have really gone to great lengths to make sure that we fit into the neighborhood. For example, the lights in the parking lot were very bright so Tailwind made shields for them so they didn’t blind the people in the houses next door. They’ve really been wonderful,” Sternitzke said. While Sternitzke enjoyed the guidance from Region 9 and the Tailwind Group, she said that the experience of moving from familiar surroundings still had its nerve wracking moments. “We had been in our old space for so long that it was a little scary to make such a big change, but it was worth it. Now we have space for things like an indoor large muscle room. That is so nice when it’s 40 degrees below or when the heat index is too high for the kids to go outdoors. They have an indoor space where they can ride bikes and move around and burn up energy.” Once Sternitzke decided to go with the fire house, she said everything moved along very quickly. After extensive remodeling was done to the building and all of the proper inspections were completed, Little Stars moved into its new space in September of 2015. Sternitzke, who is now the sole owner of Little Stars, employs 15 full-time employees and numerous part-timers. “We have a lot of college students working for us and that works out very well,” Sternitzke said. “Our college students are usually early childhood majors but we also see nursing majors and even finance majors. The

MN Valley Business • august 2016 • 17

Left: Assistant teachers, Alissa Lien (left) and Stephanie Russel, work with mobil infants at Little Stars Daycare in Mankato. Right: Little Stars Daycare is located in a remodeled fire station on Madison Avenue in Mankato. volunteers and interns are people who like kids and who want to be around them. We also have interns from MSU and East High School has a program that allows students to try out different careers so we’ve gotten a few workers from that

program.” Little Stars has also had interns from South Central College and Rasmussen. While the majority of volunteers and teachers at Little Stars are female but every so often there have been male teachers.

Sternitzke’s family is also a part of the Little Stars team. Her husband and brother help with maintenance and her mother often volunteers and has been known to bake a cookie or two for the staff. When asked what she thought of

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Nightly Dinner Features! her daughter’s new surroundings, Sandi Andersen said, “It’s really cool to come in and see what Collette has done. It’s so important for kids to have a place to go and this is a very nice space for them.” Andersen’s also contributed to Little Stars with a handmade quilt that Sternitzke’s son designed. “We wanted to have the whole family be a part of Little Stars,” Sternitzke said. Little Stars takes children from ages six weeks to school age. The infant rooms are on the first floor of the new building with older children upstairs. Little Stars is licensed to take up to 147 children and has a current enrollment of 137. Families bring their children from throughout the Mankato area including Eagle Lake, St. Peter and Good Thunder. “A lot of the time we will have several children from the same family. It’s so much easier to be able to drop all your kids off in one spot,” Sternitzke said. A few of those families have continued to be a part of Little Stars. “Two of our employees once had kids who came to Little Stars. That’s how we met,” Sternitzke said. “I call one of them our First Mom.” “We don’t really spend a lot of money on advertising,” Sternitzke said. “Instead we rely on word of mouth advertising where one mom tells another. It has worked well for us and it’s kept our name out there.” MV

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MN Valley Business • august 2016 • 19

Margot Weyhe, owner of The Design Element in Mankato.

An eye on trends Design Element helps in small projects to total remodels By Heidi Sampson | Photos by Bre McGee

argot Weyhe, owner of The Design Element, started selling interior design products from a local store 26 years ago – things like carpeting, wall coverings and blinds. She remembers a time where the wallpaper was the same print as the bed spread and the curtains, there was little deviation or room for creative play as household colors literally matched straight across the board. A few years later, she got a job with Town & Country Interiors, which used to be on Broad Street, and after 10 ventured out on her own as a freelance interior designer. One day, her husband, Rich Weyhe, and also part owner of R. Henry Construction, discussed with Margot the possibility of her having all of her items in

one location, to better assist her in working with her clients. She loved the idea. Out of their conversation, The Design Element became a reality. “Within the Mankato Design Center my area is interior design. The Artisans have all of the products I don’t carry, while R. Henry Construction builds from the ground up. However, we collaborate quite a bit.”

Profile

20 • august 2016 • MN Valley Business

Keeping an eye on trends

When the Mankato Design Center was initially conceived, it was with the idea that the different businesses inside one building could accommodate all the needs of a client when it comes to designing a new home or remodeling. However, they also work with

those who just want to re-design a room, or a main floor, or maybe all they want is new furnishings. “We are very project based,” Weyhe said. “Even if there isn’t a lot of traffic in the store, we still do a lot of work behind the scenes. We will work within the client’s budget; hang the artwork or paint, it all depends on the job. We provide the design as a compliment to their purchases. We are competitively priced and I go to market a couple of times a year, to stay up on trends.” To stay up on trends she keeps a constant eye on the east and west coasts. Whatever they are doing, will more than likely hit our area within a year or two after it appears on the coasts. “If you are in tune with it it’s actually pretty easy. Brushed gold is very on trend right now, as well as mixing metals. It allows people to accommodate all of the finishes available. If people want stainless steel appliance, it allows them to go with the finish that they like and for what works within the space, regardless of the appearance of the stainless steel appliance.” Some of the major changes in design over the years have been a pull away from wallpaper borders and heavily ornate window treatments. Now, clients tend to use only a few panels to bring some fabric and softness in but not to put so much on the window that it is weighted down. Also, clients are more likely to use color as a way of making a room pop, rather than over-saturating the room. “I love working to re-design spaces,” she said. “My favorite thing is to go into a home and redo the space with the latest trends. I like to re-purpose pieces. Maybe they have a piece of pottery that got put away, so we will look through all of their old pieces to see what fits with the new design.” The Design Element’s business radius consists mostly of the surrounding area. However, they also draw quite a bit from southern Minnesota and Northern Iowa, as well as the metro area. In fact, The Design Element has even assisted clients as far away as Palm Springs. Due

to a solid increase in business, The Design Element has also recently expanded their team to include two more interior designers, for a total of six employees. “I guess one common misconception is that those of us within the Mankato Design Center only work with those of us in the Design Center. That’s just simply not so. Each of the

businesses housed within the Mankato Design Center are independently based, although working collaboratively comes easy since it is convenient,” she said. “We are more than happy to work with other builders or with people who only want specific items, as well as those who want to utilize all three businesses.” MV

MN Valley Business • august 2016 • 21

Lacey Hassing, owner of Lacey’s Catering.

Lacey’s Catering Mentorship leads to a new entrepreneur By Heidi Sampson Photos by Bre McGee acey Hassing, owner of Lacey’s Catering in Wells, opened the doors to her new business last month, after a considerable remodel of an old Casey’s location. Originally from Easton, she spent a good deal of time during her childhood working at The Club, doing dishes, waitressing and some cooking, for her mother, Sherrie Hassing. Upon graduation from United South Central in 2012, she went on to finished her college education – which she’d already started as a post-secondary enrollment option during her senior year – at South Central College. In 2013 she got her degree in Culinary Arts and by 2014, a second degree in Business

Management. While at SCC she competed nationally with a group called DECA. In 2013, Lacey placed 2nd in their international cooking competition and in 2014, she placed 4th nationally in restaurant management. While attending SCC, Hassing started working for Kim’s Cuisine of Minnesota Lake. In 2014 owner Kim Ernest was ready to retire and offered Hassing the opportunity to take over the business. For the next 18 months she worked to find a location that would meet her needs, be located in Wells, as well as be reasonably close to her own home.

Feature

22 • august 2016 • MN Valley Business

In late she purchased the old Casey’s location. She, her boyfriend and his father remodeled the building. “We spent twelve hours grouting the floor in the kitchen,” said Lacey. “It was a lot. But, it was worth it and I’m glad we did the renovation ourselves.” Lacey’s Catering includes an expansive kitchen on one side while the other side opens up into a dining room that can seat up to 30 people. The dinning side of her building is available for rent whether the person renting the room would like Lacey’s Catering services to cater or not. “We’ve already hosted a few events in the dining area,” said Lacey. “We held a birthday party for a little girl and I’ve even catered a dinner for 12. It’s perfect for bridal showers, baby showers, birthday parties, and anytime someone wants something a little smaller, more intimate.” In the future, Lacey will also be hosting her own tasting events in the dining area. “I’m really excited for everyone to see the difference in the old Casey’s building and to find out what I can do as a caterer,” she said. “I don’t have food prepared or on hand like a bakery would but, I do handle special orders – whether it is a homemade salad or pulled pork, or an all-out catered event.” Hassing has catered events ranging from 15 to 500 people while allowing for a wide range of options for those interested in her services. For instance, she could prepare an entire meal for her customers to pick up and serve themselves. Or, she can drop the food off at a specified time and location. Or, she can make and serve the food. She also provides all the plates, silverware and serving pieces needed for an event. Lacey’s Catering has catered events within a 100-mile radius of her new Wells location. Twice a year she caters a fundraiser for a high school in Algona, Iowa. The fundraiser typically has around 400 people attend the event, which, consists of a six-course meal. Each year, the fundraiser picks a new theme for the food that will be served. This past year’s theme was Brazilian. “It was nice to know what I would be doing before I would be done with college,” said Lacey. “But it was scary too as everything seemed to evolve rather quickly. Kim helps me now. She’s been a constant source of insight during the whole process. I learned a lot of technique at SCC, but I learned even more about gourmet foods and customer relations from Kim.” MV

MN Valley Business • august 2016 • 23

■

Business and Industry Trends

Energy

Big truck greenhouse emissions

The transportation sector is the second-largest consumer of energy in the United States, accounting for more than 70 percent of U.S. petroleum consumption and thus playing a significant role in projections of energy demand. The Energy Information Administration analyzed the effects of existing laws and regulations on the fuel consumption and greenhouse gas emissions of medium- and heavyduty vehicles, which in 2015 accounted for 20 percent of total energy consumption in the transportation sector and 60 percent of total delivered distillate fuel consumption. EIA also looked at the impacts of a proposed Phase 2 rulemaking jointly issued by the Environmental Protection Agency and the National Highway Traffic Safety Administration. The proposed standards build on the Phase 1 emissions standards for medium-duty vehicles and heavy-duty vehicles that were implemented starting in model year 2014. The proposed Phase 2 rulemaking establishes a second round of standards for emissions and fuel consumption by medium- and heavy-duty trucks. The Phase 1 standards extend through 2018. The

proposed Phase 2 standards take effect in 2021. The Phase 2 standards call for average fuel economy increases for all new vehicles covered by the standards. In 2040 heavy truck energy consumption is to be reduced by 22 percent. The proposed Phase 2 standards address specific vehicle categories, including combination tractors, trailers, heavy-duty pickup trucks and vans, and vocational vehicles. New vehicle average fuel economy increases for all size classes in the Phase 2 Standards case. From 2017 to 2027, new vehicle average fuel economy (combined Classes 3–8) rises by 28 percent under the Phase 2 standards.

Cheap summer driving

During the April-throughSeptember summer driving season, U.S. regular gasoline retail prices are forecast to average $2.27 per gallon, 36

cents/gal lower than last summer. Regular gasoline retail prices are forecast to average $2.13 in 2016 and $2.27 in 2017.

Natural gas plentiful

Natural gas working inventories were 2,907 billion cubic feet. This level is 32 percent higher than a year earlier, and 35 percent higher than the previous five-year for this time of year. The natural gas storage injection season typically runs from April through October. The federal Energy Information Administration projects that natural gas inventories will be 4,161 Bcf at the end of October, which would be the highest endof-October level on record. Henry Hub spot prices are forecast to average $2.22/million British thermal units in 2016 and $2.96 in 2017, compared with an average of $2.63 in 2015.

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More renewables

Total renewables used in the electric power sector should increase by 13 percent this year and by 3.3 percent in 2017. Forecast hydropower generation in the electric power sector increases by 11.2 percent in 2016 and then falls by 3.4 percent in 2017. Generation from renewables other than hydropower is forecast to grow by 14.5 percent in 2016 and by 8.9 percent in 2017.

Solar growing

From 2015 to 2017, utility-scale solar photovoltaic capacity will grow by about 14 gigawatts. States leading in utility-scale solar capacity additions are California, Nevada, North Carolina, Texas, and Georgia. Electricity generation from utility-scale PV in 2015 exceeded generation from wind in California for the first time. Forecast utility-scale solar power generation averages 1.2 percent of total U.S. electricity generation in 2017.

Wind capacity biggest

Wind capacity, which starts from a significantly larger installed capacity base than solar, grew by 13 percent in 2015, and it is forecast to increase by 10 percent in both 2016 and 2017. In 2017, wind generation accounts for almost 6 percent of total electricity generation. d 1.1% in 2017. This report was prepared by the U.S. Energy Inf

Ethanol output steady

Ethanol production averaged almost 970,000 barrels per day in 2015, and it is forecast to average about 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 a significant increases in E15 or E85 consumption through 2017.

Economy GDP up some

The Bureau of Economic Analysis reported that real gross domestic product (GDP) increased at an annual rate of 0.8 percent in the first quarter of 2016, up from the initial estimate of 0.5 percent. The increase in real GDP in the first quarter reflected contributions from personal consumption expenditures and residential fixed investment. Forecast real GDP growth reaches 1.7 percent in 2016 and 3 percent in 2017.

Retail/Consumer Spending Vehicle Sales Mankato â&#x20AC;&#x201D; 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 â&#x20AC;˘ august 2016 â&#x20AC;˘ 25

Construction/Real Estate Residential building permits Mankato

Residential building permits North Mankato

18000

4000

- 2015 - 2016 (in thousands)

$4,939 $1,943

13500 9000

2000

4500

1000

$452 $542

3000

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 170 204

275

Median home sale price: Mankato region - 2015 - 2016 (in thousands) $189,500 $170,000 200

160

220

120

165

110

55 0

Source: Realtors Association of Southern Minnesota

3.8%

3.5 A

20 10

3.6% M

4.0

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

4.5

Source: Freddie Mac

Source: Cities of Mankato/North Mankato

Commercial building permits Mankato

Commercial building permits North Mankato

- 2015 - 2016 (in thousands)

12000

- 2015 - 2016 (in thousands) $202 4000 $1,211

$9,979

10000

3000

$1,928

8000

2000

6000 4000

1000

2000 0

- 2015 - 2016

5.0

Housing starts: Mankato/North Mankato

— 2015 — 2016 5.5

Source: Realtor Association of Southern Minnesota

Interest Rates: 30-year fixed-rate mortgage

3.0

Source: City of Mankato

26 • august 2016 • MN Valley Business

Source: City of North Mankato

C. Sankey

Gas Prices Gas prices-Mankato

— 2015 — 2016

INTRODUCING

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$2.53

3 2

$2.09

1 0

Gas prices-Minnesota

— 2015 — 2016

CORE

TO THE

4 $2.66

3 2

$2.18

1 0

COMMERCIAL

D C. Sankey

Source: GasBuddy.com

June 10

July 11

Percent change

Archer Daniels Ameriprise

$42.26

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

$29.59 $52.56 $25.14 $44.15 $27.67 $64.89 $3.66 $43.00 $26.35 $168.22 $67.35 $41.99 $35.50 $2.05 $42.76

$43.34 $94.11 $31.94

+2.6% -2.6% +8.0%

$52.42 $28.21 $44.54 $30.80 $71.24 $3.38 $43.92 $27.40 $179.00 $73.01 $40.73 $34.70 $2.10 $43.77

-0.3% +12.2% +0.9% +11.3% +9.8% -7.7% +2.1% +4.0% +6.4% +8.4% -3.0% -2.3% +2.4%

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+2.4% C. Sankey

MN Valley Business • august 2016 • 27

■

Agricultural Outlook

By Kent Thiesse

Calculating farm program payments a complex affair

rior to the 2014 crop year, most corn and soybean producers in the Upper Midwest that were enrolled in the USDA farm program became quite accustomed to receiving annual direct payments of approximately $20 to $25 per crop base acre. These payments were determined by a pre-set payment formula that was the same throughout the United States, and did not vary much from year-to-year. However, beginning in the 2014 crop year, there were no longer guaranteed farm program payments, and any annual payments were based on the level of 12-month average national crop prices, as well as annual crop yields with some farm program choices. This has resulted in farm program payments being more unpredictable from year-toyear, and much more variable from county-to- county. Most crop producers in the Upper Midwest are enrolled in the county yield-based Ag Risk Coverage (ARC-CO) farm program choice on their corn and soybean base acres for the 2014 to 2018 crop years. Many farm operators earned a significant payment on their corn acres while some also earned a substantial payment on their soybean acres. Even though average corn and soybean price levels have been lower than for 2014, the 2015 corn and soybean ARC-CO payments in the Upper Midwest will be much more variable, due to the strong 2015 corn and soybean yield levels in many areas, as well as lower 2015 benchmark yields in some counties. In addition an increase in

corn and soybean market prices in the spring of 2016 also lowered the estimated 2015 payment levels in many counties. The benchmark prices for corn and soybeans for the 2015 crop year remained the same as 2014, which are $5.29 per bushel for corn and $12.27 per bushel for soybeans. The prices are adjusted each year, using the USDA marketyear average price for the preceding five years, then dropping the high and low price, and averaging the other three years’ prices. The benchmark county yield for 2015 is calculated the same way using county yield data. Corn yields in most Minnesota counties declined in 2015, as compared to 2014, due to the very low average county yields in much of the state in 2014, as well as the fact that 2009, which was a very strong yield year for corn, was dropped for the 2015 yield calculation. Many Counties in South Central, Southwest, and Central Minnesota had the county benchmark corn yields decline by 6-12 bushels per acre from 2014 to 2015. The declining county yield lowers the potential maximum ARC-CO payment per crop base acre, as well as lowering the potential for ARC-CO payments at similar actual corn yield levels in a given year. County soybean yields did not vary greatly from 2014 to 2015. 2015 ARC-CO payments for a given crop are paid when the actual 2015 county revenue for the crop falls below the 2015 county benchmark revenue guarantee. The actual county revenue is the

28 • august 2016 • MN Valley Business

final 2015 county FSA yield times the final MYA price for 2015. The 2015 MYA price is the national average corn or soybean price from September 1, 2015 to August 31, 2016. The MYA prices will be finalized on September 30, 2016. As of June 1, 2016, the estimated 2015 MYA prices are $3.70 per bushel for corn, and $9.05 per bushel for soybeans, which represents an increase of $.15 per bushel for corn and $.30 per bushel for soybeans from the estimates on April 1. This rather large adjustment in the projected prices will negatively affect the estimated 2015 corn and soybean ARC-CO payments in many counties across the Upper Midwest. USDA updates the average price estimates for a given marketing year on a monthly basis in the World Agricultural Supply and Demand Estimate Report, which is usually released around the middle of each month, and provides a pretty good price estimate for potential ARC-CO payments. USDA also publishes monthly and season-average estimated market prices for various commodities, which are available on the FSA farm program web site at: http:// www.ers.usda.gov/data-products/ season-average-price-forecasts. aspx. Some Universities also update projected MYA prices on a monthly basis for selected crops. Kansas State University offers one of the best monthly updates for corn, soybeans, and wheat. The Kansas State web site is: www. agmanager.info/crops/insurance/ risk_mgt The relationship between the

final 2015 county yield and the 2015 county benchmark yields is extremely important in calculating potential 2015 ARC-CO payments for corn and soybeans. Expressing the 2015 County yield as a “% of BM Yield” is more important than the final county yield in determining estimated ARC-CO payments. There will likely be a large difference in the 2015 corn ARC-CO payments from county-to-county, depending on the final 2015 county yield, expressed as a “% of BM Yield”. It appears that most counties in Southern and Western Minnesota, as well as Northern Iowa, will get a partial 2015 corn ARC-CO payment; however very few will get the maximum payment. Several counties in central Minnesota, as well as a few selected counties in other areas, will likely receive no 2015 corn ARC-CO payment. Expect for a few counties in Southeast and Northwest Minnesota, there will be little or no 2015 soybean ARCCO payments. There can also be a wide variation in the ARC-CO payment levels in neighboring counties. Following are the estimated 2015 NASS corn yields, estimated 2015 corn ARC-CO payments, and (“% of BM Yield”) for area counties: Blue Earth = 201 Bu./A., $33/base acre (117%); Faribault = 207 Bu./A., $26/base acre (118%); Martin = 203 Bu./A., $50/base acre (114%); Nicollet = 207 Bu./A., zero (128%); Watonwan = 206 Bu./A., $56/ base acre (113%). This variation in 2015 estimated corn ARC-CO payments from county-to-county can be very difficult for producers to understand. It is important to remember that the 2015 corn and soybean ARC-CO payment levels are still estimates, which are based on the 2015 NASS County yield estimates and the current MYA prices. The final 2015 ARC-CO payments, which will be paid in October, 2016, could vary from current estimates depending on further changes to MYA price levels between now and August 31, 2016. If the MYA price declines, the likelihood or the level of 2015 ARC-CO payments is increased, and viceversa if the MYA price increases. USDA could lower the final 2015 county FSA yields below the announced NASS yields, which could slightly increase the level of potential 2015 ARC-CO payments. There will likely be a 6.8 percent federal sequestration reduction on all 2015 ARC-CO payments that are paid in 2016, similar to ARCCO payments that were paid in 2015. Producers must be enrolled in the 2015 ARC-CO program for corn and soybeans in order to be eligible for 2015 ARC-CO payments. Previous county yields for corn, soybeans, and other crops, benchmark yields and revenues, 2014 FSA yields, 2014 ARC-CO payment levels, and other farm program information are available on the FSA ARC-PLC web site, which is at: www.fsa. usda.gov/arc-plc. Kent Thiesse has prepared an information sheet titled: “Estimating 2015 Corn and Soybean ARC-CO Payments”, along with “2015 ARC-CO Payment Estimate Tables” for most counties in Minnesota and Northern Iowa, as well as for Eastern North and South Dakota. To receive a free copy of the Information Sheet and Tables, send an e-mail to: kent.thiesse@minnstarbank.com MV 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)

— 2015 — 2016

$3.75

6 4 2

$3.12

Source: USDA

Soybean prices — southern Minnesota

(dollars per bushel)

— 2015 — 2016

20 16

$10.73

12 8

$9.93

4 0

Source: USDA

Iowa-Minnesota hog prices

185 pound carcass, negotiated price, weighted average

— 2015 — 2016

100

$78.65

90 80 70

$77.77

60 50

Source: USDA

Milk prices

Minimum prices, class 1 milk Dollars per hundredweight

— 2015 — 2016 25 22

$17.94

19 16

$14.94

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 • august 2016 • 29

Minnesota Business Updates

■

■ Johnson Outdoors profit jumps 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. As for the litigation, Johnson said it has reached a settlement with Garmin International Inc. over side scan sonar patent infringement lawsuits that Johnson had filed against Garmin. 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 in November 2015 that Garmin sonar product infringed one of the company’s patents, resulting in an order barring the import/sale of distribution of the infringing Garmin products. Johnson Outdoors reported that net income for the quarter 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.

■ General Mills sales fall General Mills said its fiscal fourth quarter net sales were $3.9 billion, down 9 percent from $4.3 billion a

year ago. Sales remained under pressure in the U.S. Its U.S retail unit, the company’s largest business, saw sales fall 12 percent in the period. Net earnings were $380 million. The Golden Valley-based company said its profit amounted to 62 cents per share in the three months. In the same period a year ago, it earned 75 cents a share, excluding one-time charges like the $260 million write-down in the value of the Green Giant business.

■ Medtronic buys company Medtronic has added to its line of congestive heart failure products with the purchase of HeartWare International Inc., a maker of ventricular assist devices. Medtronic told the Star Tribune that it would pay about $1.1 billion in cash for HeartWare, a firm based in suburban Boston that had been on the acquisition hunt until activist shareholders recently pressed it to look for a buyer instead. HeartWare’s flagship product is designed to reduce the invasiveness of heart surgery and improve patient recovery times and outcomes. Congestive heart failure, a weakening of the heart that tends to progress slowly and often complicates the functions of other organs, is a leading cause of death in the U.S. HeartWare, which had sales of $277 million last year,

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

92 248 35 232 607

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

71 252 42 219 584

-22.8% +1.6% +20.0% -5.6% -3.9%

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*

June

- 2015 - 2016

Nine-county Mankato region 127,146 133000

128,245

122000 111000 100000

Minnesota Local non-farm jobs

‘15

‘16

Percent change ‘14-’15

2,000 2,674 1,027 6,130 11,831

2,081 2,573 1,069 5,406 11,129

+4.1% -3.8% +4.1% -11.8% -6.0%

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.

30 • august 2016 • MN Valley Business

(in thousands)

- 2015 - 2016

2,901 2,927

3000 2000 1000 0

says it makes the world’s smallest ventricular assist device, a pump that is implanted in the left ventricle of the heart. It raises the diminished flow of blood in a weakened heart, which strengthens the rest of the circulatory system and other organs.

■ Amazon leases Eagan space Amazon has leased 142,000 square feet in an Eagan warehouse building for a new “delivery station,” the latest example of the online retailer’s growing presence in the Twin Cities, according to Finance & Commerce. Amazon has an estimated 174 active facilities in the U.S., including 18 “delivery/sortation stations,” according to MWPVL International, a Montreal-based supply chain, logistics and distribution consulting company. The listed construction cost for the tenant improvements is $1.876 million. The warehouse was constructed in 2007 and has 227,200 square feet of leasable space overall.

■ Best Buy tests free house calls Best Buy has used intense customer service as a way to differentiate itself from its online rivals. Now, the retailer wants to take things a step further by offering consumers free in-home advice. The company plans to send its technicians to people’s homes to help them solve problems related to consumer electronics, according to Credit Suisse retail analysts Seth Sigman and Kieran McGrath. Dubbed the in-home advisors program, the service would help customers

identify problems. This would, of course, also lead to offering solutions for those issues from among the products and services that Best Buy sells. For example, a consumer might call IHA in to examine why his or her home WiFi network does not reach the far corners of his or her house. The technician might look at the problem and determine that it would be solved by a new router and signal enhancers, and then sell both items to the consumer, while also selling the installation service. By offering to go right to the customer’s home for free, the chain puts itself in the driver’s seat to actually get the order. Of course, it does run the risk of sending its employees out and sharing solutions for free that savvy shoppers then implement by buying the necessary gear through cheaper online providers. Still, the analysts see it as a smart play that puts Best Buy in front of the people most likely to need its services

■ Target line designed by kids Target is launching a new kid’s clothing line that’s designed by kids. Target said it created the new line, called Cat & Jack, by consulting with kids of all ages (as well as their parents) to hear about fabric choices, styles and more. It resulted in over 2,000 wardrobe pieces that they said are “durable enough for the playground and stylish enough for school picture day.” It’s the largest-ever children’s clothing line at the Minneapolis-based retailer, and replaces Circo and Cherokee.

Employment/Unemployment Local number of unemployed

- 2015 - 2016

Nine-county Mankato region

(includes all of Blue Earth and Nicollet Counties)

8000

5,028 4,999

6000

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

4000 2000 0

Mankato/North Mankato Metropolitan statistical area

2015

2016

2.7% 57,711 1,619

2.9% 58,496 1,735

Unemployment rates Counties, state, nation Minnesota number of unemployed

- 2015 - 2016

200000

114,237 114,639

150000 100000 50000 0

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

April 2015 4.0% 4.1% 4.3% 5.0% 4.1% 2.5% 4.1% 4.0% 4.4% 3.3% 3.6% 5.1%

April 2016 4.2% 4.3% 4.5% 5.1% 3.9% 2.6% 4.4% 4.2% 5.0% 3.4% 3.8% 4.7%

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

MN Valley Business • august 2016 • 31

A Groundbreaking Way of Life By: Sam Ziegler, Director of GreenSeam

hat is GREENSEAM? You’re a part of it. Your friends are a part of it. Together we are the GreenSeam. It is not simply a place; GreenSeam is also a state of mind and being. We have a real and visceral connection to the land we stand on. We are connected to all the people and enterprises that support, supply and stand with us. And we have a heritage that links us with the hardworking past generations whose shoulders we stand upon.

Creating Awareness Starting locally, we need to create awareness that this is the solution and innovation center surrounding ag. Then we can begin to share nationally and globally the amazing work and expertise of the diverse businesses that call GreenSeam their home.

GreenSeam is innovation, forward-thinking and historical. Advances in farming techniques, developments in production, equipment and technological breakthroughs all had origins in the minds of those inhabiting the GreenSeam. Many locally and globally find that solutions related to ag are found here.

Talent/ Education Another focus is building stronger partnerships between education systems and businesses. This will result in creating a more robust and skilled workforce needed to help grow our business industry. We are currently analyzing the strengths and weaknesses in high schools, two-year and four-year systems. We are working closely with a team of experts in their respective fields to provide suggestions on ways to increase the pipeline of students into areas where we see shortages and assemble a strong curriculum, fulfilling the students needs as well as that of potential employers.

The GreenSeam journey started in 2013 by numerous business leaders and community members, making it a genuine grassroots movement while being supported and led by the Greater Mankato Growth Board of Directors. The GreenSeam region encompasses southern Minnesota and northern Iowa, however the dedication and fortitude initially came from the vision and drive of Greater Mankato Growth.

GreenSeam

Another genuine and vital question you may ask yourself: “How does this relate to me?” GreenSeam’s mission is to help existing businesses grow and expand. This leads us to focus on four pivotal areas.

Innovation It is nearly impossible to capture or list all industries that are under the ag umbrella. There isn’t a complete and comprehensive list of these businesses to represent the true economic value of ag across this region. We are currently collecting this information so we can tell the full story of the existing businesses.

32 • august 2016 • MN Valley Business

There were 131 flags flying on the steps of Vetter Stone Ampitheater at the Greenseam Launch Event on June 20th.

dollars in sales stemming from: FOOD PROCESSING METAL MANUFACTURING ACCOUNTING HIGHER EDUCATION

BANKING RETAIL LIVESTOCK OPERATIONS CROP PRODUCTION

Another goal is to connect business leaders in our region in order to create a wave of synergies and endless opportunities. We intend to bring together a dynamic cross section of the professional service and manufacturing business leaders that have a connection to ag to discuss the current and future growth factors and challenges. We are also going to be highlighting our expertise and knowledge through ‘ask the experts’ articles that will be featured in the upcoming weeks on greenseam.org. Also, for businesses that are looking to expand, we want to be a go-to resource providing many connections and ideas to help them through the business challenges. Stewardship Magnifying our voice, fostering an environment and garnering support conducive to ag development is the focal point of our public affairs initiative. We want to be a conduit of information between the public leaders, decision makers and businesses.

For more information, how to help or read individual ag related stories from business leaders and community members please visit: greenseam.org. facebook.com/GreenSeam/ | @greenseamregion #greenseam #greenseampride #iamag

MN Valley Business • august 2016 • 33

GreenSeam

Brand Unveiling Event We want to thank all who partnered and attended the successful GreenSeam launch event on June 20th. There was more than 500 people in attendance. Our goal was to show the breadth, reach and scope of GreenSeam straight out of the gate. That was goal was met as we flew an array of 131 flags of businesses, co-branded to show they are part of GreenSeam. Imagine the ‘big picture’, the broad spectrum that encompasses any industry connected or rooted in ag; the potential of the full value agriculture adds to this region is truly awe inspiring. Together we are the GreenSeam.

Greater Mankato Growth

Growth in Greater Mankato NEW BUSINESS

NEW BUSINESS

25th ANNIVERSARY

Secret Knots Art Supply 416 Park Lane Mankato

Beans Coffee Company 1051 Madison Avenue Mankato

Capstone 1710 Roe Crest Drive North Mankato

RIBBON CUTTING

NEW BUSINESS

Ponderosa Landfill Customer Service and Recycling Center of Blue Earth County 20028 Gooseberry Lane Mankato

Mayo Clinic Health Care System Express Care Clinic 2010 Adams Street Mankato

Heat Blow Dry Bar and Waxing Studio 1591 Tullamore Street, Suite 200 Mankato

Cavaliers

Calling All Paws Pet Grooming 402 Hope Street, Suite 1 Mankato mankatogroomers.com

Dirt Merchant, Inc. 701 Summit Avenue Mankato dirtmerchantinc.com

Cavalier Calls on the Newest Greater Mankato Growth Members Hertz Rental 1990 Madison Avenue Mankato hertz.com

34 • august 2016 • MN Valley Business

Hardee’s 101 West Lind Court Mankato minnkotaburgers.com

5:00 - 7:00 pm August 2 September 6 October 4 November 1 December 6

7:30 - 9:00 am

MinnStar Bank Verizon Wireless Event Center Toppers Plus BankVista Eide Bailly

2016 Business After Hours Sponsored by:

August 17 September 21 October 19 November 9 December 21

Ridley, An Alltech Company Walmart Distribution Center Emergent Networks Mayo Clinic Health System School Sisters of Notre Dame Central Pacific Province

2016 Business Before Hours Sponsored by:

June Business After Hours hosted by Chankaska Creek Ranch & Winery

June Business Before Hours hosted by REALTOR Association of Minnesota

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.

Alive After 5 returns to Greater Mankato each Thursday starting in August!

Grab your lawn chairs and blankets, co-workers or family and join us for live music, local food and beverages in a relaxed outdoor setting. NEW! Artisan + Craft Pop-up Market

citycentermankato.com An event of:

FREE ADMISSION FREE parking available in the US Bank parking ramp and Cherry Street Plaza parking ramp.