Minnesota Valley Business by Free Press Media

The Definitive Business Journal for the Greater Minnesota River Valley March 2019

Bonnie Kruger is a top agent with Century 21 Atwood in Mankato. Photo by Pat Christman.

Selling it Top sales people share common traits Also in this issue • THE 10 MOST EXPENSIVE HOMES IN THE REGION • JERRY’S ABRA AUTO BODY & GLASS • TOPPERS PLUS IN MANKATO

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When the Big Bad Wolf Is At The Door By: Cory Genelin

t’s 10:30 on a Tuesday morning. You’ve finished the morning Staff Meeting, answered twenty seven emails, checked Facebook and now you are sitting down to write some employee reviews. Then you get it. A letter from an attorney. Nor your attorney. An attorney representing the employee you terminated last week. The employee you fired after his fifth disciplinary violation in six months; the one whose filling error cost you your biggest client; the one who wasn’t on time once in two years of employment; the one who spoke disrespectfully to everyone in the office; the one you really should have fired five years ago. Unfortunately, he’s also the one who has an open work comp claim, who also filed for FMLA, and who is a racial minority. In other words, he’s a member of a “protected class.”

On behalf of her client the attorney is requesting a copy of the employee’s termination notice, copies of any and all policies which you claim the employee violated, a breakdown of the race of all employees hired and fired in the past two years, payment of all wages owed, a copy of the employee’s personnel file, the names of all managers involved in the termination, and the reason for the termination. She also demands that you have no further contact with her client. What do you do? A terminated employee is entitled to all wages due and payable within 24 hours of demand. For an hourly worker, this should be easily calculated; for workers on commission, the commissions may not be “payable” until they are calculated in the ordinary course of business. Any amount certain to be owed must be paid on time. So honor this request. The employee is also entitled to the reason for termination in writing but only if

the request is made within 15 working days of the termination. A terminated employee is entitled to review his personnel file once per year as long as the employer maintains the file and you need to provide a copy within 7 working days after the request. That is all he’s entitled to. Any mistakes in your documentation will serve as blood in the water. The best thing you can do is show that you know your employment law obligations by delivering only things to which the employee is entitled. Once you’ve done that, it probably time to sit down with an attorney and evaluate the possibility of any liability in the matter. If your case for termination is strong, you can then package the information and disclose it in such a way as to make the employee and attorney lose heart.

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F E A T U R E S March 2019 • Volume 11, Issue 6

Amber Pietan, Peter Martin and Bonnie Kruger are top sales people in their respective fields and all say building meaningful and trusting relationships is a key to success. Pictured L-R: Mathew and Michael Atwood with Bonnie Kruger.

Jerry’s Abra Auto Body & Glass in Mankato has integrated a variety of new technologies and more environmentally friendly paints as it’s grown over the years.

Deb and Leroy Lorentz opened Toppers Plus in 1986 after finding limited options when they were shopping for a topper. Today the business has grown and expanded its focus.

The most expensive home sold in the area last year went for nearly $1.3 million. Most of the top 10 homes sold in 2018 have one thing in common – a lakeside view.

MN Valley Business • MARCH 2019 • 3

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MARCH 2019 • VOLUME 11, ISSUE 6 PUBLISHER Steve Jameson EXECUTIVE EDITOR Joe Spear ASSOCIATE EDITOR Tim Krohn CONTRIBUTING Tim Krohn WRITERS Kent Thiesse Harvey Mackay Dan Greenwood Dan Linehan PHOTOGRAPHERS Pat Christman Jackson Forderer COVER PHOTO Pat Christman PAGE DESIGNER Christina Sankey ADVERTISING Danny Creel Sales Joan Streit Jordan Greer-Friesz Josh Zimmerman Marianne Carlson Theresa Haefner ADVERTISING Barb Wass ASSISTANT ADVERTISING Sue Hammar DESIGNERS Christina Sankey CIRCULATION Justin Niles DIRECTOR For editorial inquiries, call Tim Krohn at 507-344-6383. For advertising, call 344-6364, or e-mail advertising@mankatofreepress.com. MN Valley Business is published by The Free Press Media monthly at 418 South 2nd Street Mankato MN 56001.

■ Local Business memos/ Company news.....................................5 ■ Business Commentary.........................7 ■ Business and Industry trends..........22 ■ Retail trends.....................................23 ■ Agriculture Outlook..........................24 ■ Agribusiness trends..........................25 ■ Construction, real estate trends.....26 ■ Gas trends........................................27 ■ Stocks...............................................27 ■ Minnesota Business updates............28 ■ Job trends.........................................28 ■ Schmidt Foundation.........................30 ■ Greater Mankato Growth..................32 ■ Greater Mankato Growth Member Activities ............................34

From the editor

By Joe Spear

Sales in the city

Relationships develop in smaller cities

ales people may get a bad rap sometimes. But without them, business itself would be impossible. How’s that for stealing a line from an old advertising slogan. Our cover story this month focuses on a variety of sales people who’ve done well in their profession. The common themes seem to revolve around knowing your client, building a good relationship over time and being enthusiastic about what you are selling. One of our featured salespeople sells jewelry and commercial real estate. That’s a combination one wouldn’t naturally put together. Buying jewelry involves a heavy dose of emotion while buying commercial real estate is more of a logical decision. Kudos to Peter Martin who apparently can do both pretty well. He was promoted to managing the Rogers & Holland jewelry store at the River Hills Mall when he was 19. He took up selling commercial real estate more recently with Coldwell Fisher Commercial Real Estate Group. He’s got quite a story coming from a crime ridden neighborhood in Florida to Minnesota, where he doesn’t mind the weather. He says he’ll take it any day compared to the situation he was in. Bonnie Kruger took a different trajectory in sales working for a long time in the retail clothing business before selling homes, 100 to be exact, in her first year. She’s been among the top local Realtors ever since. Amber Pietan followed her love for traveling and camping with her family when she was young and left college behind for a career as a travel agent. She got experience with AAA for a dozen or so years and now

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owns her own a travel agency, a job that allows her to book custom-made trips for her clients. She gets a little travel in too. There’s no doubt they all work hard and hours beyond 9 to 5 p.m. But some see their clients as their friends and that makes work not seem like work to many of them. It’s a lucky place to be and probably a rarity in today’s modern workplace. When I think of Mankato and the relationships that are needed for sales, it seems our geography and size would make it easier to develop and maintain relationships. Could that be an economic development asset? We’ve always heard and or believed that Mankato/North Mankato are places that are big enough to have big city amenities like decent shopping malls, a variety of restaurants and recreational opportunities. But we’re also small enough so you don’t feel like you’re a stranger going out to eat. You’ll always see someone you know. So we’re small, but we play big. But for sales people who have to develop relationships we have a lot of “third places” where families see each other and can exchange tips on buying a car, jewelry or a travel getaway. There are restaurants and bars, sure enough, but there are also churches and playgrounds and gyms and a large YMCA. You wouldn’t have the same proximities in a big city. You could sell cars in Plymouth, but maybe your social circles and churches are in Eagan or Eden Prairie. It’s just a hunch, but it seems like these closer geographical parameters might make it easier to build relationships. Maybe that’s why our politics at the local level are relatively civil and forward moving. I can’t

remember the last time Mankato or North Mankato city councils had the good ‘ol knock-down-drag out. Urban planners have argued for ages what might be the appropriate size of a city or region. In a fine article by Marco Amati of The Conversation, some early analysis Ancient Greek city-states came to the conclusion that in an ideally-sized city, the distance one was able to walk from center of town to the countryside would be two miles. And with a population density of about 50 people per 2.5 acres, a perfect city size would be 160,000 people. With the Mankato region sitting at 100,000, we would still have good room to grow before we’re ideal. Some smart Australian planner used another method in 2016 saying that getting to work or school in 30 minutes would be another ideal measure of a good city size. Here, we’ve got the Twin Cities beat hands down. Even if you live in Mapleton, or Eagle Lake or St. Peter, you can get to work in 30 minutes. If you live in North St. Paul and have to work in Bloomington, forget it. That’s something to consider for the Mankato young professional considering a move to the big city.

Local Business People/Company News ■

Kluender joins U.S. Bancorp

U.S. Bancorp Investments, an affiliate of U.S. Bank, announced that Mark Kluender has joined U.S. Bancorp Investments as a wealth management advisor. Kluender will be based in U.S. Bank’s Downtown Mankato branch. He brings 20 years of experience in financial services. He earned a degree in finance from Minnesota State University. ■■■

Weilage changes name

After operating as Weilage Advisory Group for more than 30 years, the agency has changed its name to Wealth Centers of America. While they will continue focusing on wealth management, they say they are now able to offer more support to individuals and businesses with a comprehensive planning model. They remain at 40 Good Counsel Drive in Mankato and have the goal of opening additional locations, according to Scott Weilage. ■■■

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!

Belize agency started

David Schooff of Coldwell Banker Commercial Fisher Group, and Jeremy “JB” Brown of Alliance Contracting have opened a full-service commercial real estate office in San Pedro, Belize. They formed MN Real Estate Ventures Ltd. Now an NAI Global affiliate, MN Real Estate Ventures Ltd. will expand commercial real estate services in Belize as NAI Belize. They are offering sales and leasing, property management, development, business brokerage, hospitality/asset management and investment services.

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Pioneer a Community Champion

Pioneer Bank has been included in a list of 35 banks recognized as 2019 Community Champions by The Minnesota Bankers Association. The banks have worked with organizations in their communities, providing funding, volunteers, materials, supplies or food for their neighbors. Recipients of the recognition range in size from small community banks to large banks with multiple branches. ■■■

Eberline named manager

First National Bank of Waseca added Susan Eberline as branch manager of its Ellendale and Hope locations. Following her training at the main branch, Eberline assumed her new position following Garr y Gordinier’s retirement. Eberline has more than 30 years of experience in the areas of sales and service, marketing and management, and loan experience including consumer lending and home equity lines of credit loans. Bernie Gaytko is president & CEO of the bank. ■■■

Farrish, Brandt merge

Farrish Johnson Law Office of Mankato is merging with Brandt Law Office of St. Peter under the Farrish name. Farrish will retain offices in Mankato, Madelia and St. Peter. James Brandt said the merger will allow them to open additional areas of practice including business law, business litigation, family law, and employment law. At 125 years in business, Farrish is the tenth oldest law firm in the State of Minnesota. Brandt, which also includes attorneys Christopher P. Grean and Jerold M. Lucas, was founded in 1978.

MN Valley Business • MARCH 2019 • 5

Priebe earns distinctions

John Priebe has earned membership in the Million Dollar Round Table, in addition to qualifying for the Principal Financial Group’s President Circle. Priebe is a 13-year qualifier of the MDRT. MDRT membership is attained by life insurance advisors who meet the organization’s annual production requirement and are members of their local life underwriters’ association. Round Table membership is an exclusive honor that is achieved only by a small percentage of all life insurance and financial services advisors worldwide. Priebe is based in Waseca. ■■■

relationships with current and prospective donors. ■■■

Lutterman joins Pioneer

Pioneer Bank added mortgage banker Carissa Lutterman to their Nor th M a n k a t o location. Lutterman has been in the m o r t g a g e Carissa Lutterman b a n k i n g industry for 19 years, beginning her career as a loan processor. She also has experience in real estate closing, escrow servicing and construction loans.

Banks to merge

Citizens Bank Group, Inc., parent company of Pioneer Bank, has reached an agreement to acquire Nicollet County Bank in St. Peter, Minnesota. They will begin operating the bank in early April. Pioneer Bank currently has offices in Mankato, North Mankato, St. James, Madelia, Mapleton, Lewisville and Lake Crystal. Nicollet County Bank President and Board Chairman, Sam Gault, and Senior Vice President, Lisa Gault, will retire after the acquisition. Nicollet County Bank is a fourth-generation family bank that was founded in 1883. Existing staff of Nicollet County Bank will remain. ■■■

JA names manager

Junior Achievement of the Upper Midwest has named Katie (Fogal) Mons as its new District Manager in Greater Mankato. Mons has had a long tenure at Rasmussen College and has been with Junior Achievement’s program coordinator for the last two years. She will lead Junior Achievement’s efforts to secure external funding for programs and services, with a focus on deepening and expanding par tnerships and strategic

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Freedom Home names mentor

Michelle Heichel, longtime Registered Nurse and member of the Mayo Clinic Health System’s Ethics Committee, has been named as the mentor lead for the new Caregiver Mentor program at Freedom Home Care. Heichel, who joined Freedom Home Care as a caregiver supervisor in 2014, has taken on this new role in order to help new caregivers build confidence and develop the necessary skills to be successful at caring for their clients. She will support other caregivers in their first 60 days of work. Amanda Voss, client care coordinator, will be serving as one of the Caregiver Mentors in the new program. ■■■

Wells Concrete buys company

Wells Concrete has acquired all significant business assets of Rocky Mountain Prestress, which has been a part of the Denver business community for 60 years. The joint venture, operating under the name of Wells Concrete, positions the company as one of the top five largest precast companies in the U.S., reaching from Canada to New Mexico and

6 • MARCH 2019 • MN Valley Business

Wisconsin to Colorado. Rocky Mountain Prestress’ Denver team will remain in place. Sam Nesius is chairman of The Wells Companies. Founded in 1957, Minnesotabased Wells Concrete is one of the largest precast provider in the upper Midwest. ■■■

Poland honored by Jersey Mike’s

Jeremy Poland is the recipient of this year’s “Sub Abover” award for Jersey Mike’s Subs stores in Minnesota. The award recognizes a team member who consistently demonstrates excellence in customer service. “Jeremy brings his southern hospitality and his famous southern drawl to the sub making line every day,” wrote franchise owner Chris Kunst. “Customers are often recognized and greeted by name. They all are welcomed with a “sir’ or “ma’am” out of respect.” He also plays music for many charities and fundraising groups throughout Minnesota. ■■■

Clinic adds two providers

Mankato Clinic has added two new providers. Paul Matson, CNP, MHNP, joins the Mankato Clinic psychiatry and psychology department at Madison East Center. He earned his doctorate of nurse practitionerpsychiatric mental health from the University of Washington, Seattle. He also holds a bachelor of science in nursing. His clinical interests include addiction, anxiety, bipolar disorder and suicidal thoughts. Susan Bianchi-Olson, NP, joins the gastroenterology department. She earned her Master of Science degree in nursing from Minnesota State University. She also holds a bachelor’s degree in nursing from Winona State University, Rochester. Her clinical interests include a broad spectrum of gastroenterological disorders.

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Business Commentary

By Harvey Mackay

Get ahead in your job with these basics

n executive was having difficulty with her assistant, so she decided to confront her shoddy performance. Nancy,” she began, “you don’t seem to be into your work. The letters you type are full of errors, rarely do you get to work on time, and why don’t you ever answer the phone?” “The answer to the last part is easy,” the assistant responded. “I quit answering the phone because nine times out of ten, it’s for you!” There is an employee who is probably not going very far. Whether you are starting out in your career or just want to improve, you need to earn the trust of your bosses and coworkers. No matter how much workplaces have changed over the years, there are still some basic guidelines to follow that will help you stand out. These are some of the most important lessons I can offer. • Arrive on time consistently. Yes, sometimes the traffic is bad or the train runs late. Train yourself to arrive at work within a specific window so people don’t have to guess when you’re coming in – or whether you’re coming in at all. • Dress appropriately. Take note of how your co-workers dress, and follow their lead. You don’t want to be too formal, but sloppy clothes and poor personal hygiene can mark you as unserious or unprofessional. • Introduce yourself effectively. Practice a quick introduction – no more than 30 seconds – so you can make a good first impression on the people you meet. Remember to look people in the eye and give a

nice warm handshake. • Remember names. Make an effort to keep people’s names in your mind. You’ll impress them and show that you’re paying attention. The best way is to repeat their names a few times when you first meet to lock the name in your head, or write it down at your first opportunity. • Stay organized. If you’re scrambling to find things on your desk, or always late for meetings, you’ll look scatterbrained and undependable. Set up a system for tracking information and managing your time so you’re always on top of things. • Use email professionally. Keep in mind that your email at work belongs to your employer, not to you. Write every email as if it might be read aloud in court. You don’t want a flippant remark or a bad joke coming back to haunt you. • Share the credit generously. Collaborate with your coworkers as much as possible, and let your boss and other people know they’ve helped you. No one wants to work with someone who hogs all the accolades, but people are happy to cooperate with a coworker who’s generous with the credit for a job well done. • Talk to your boss. Make time to check in with your manager when you don’t have a problem to report or a question to ask. Don’t monopolize their time, but make contact to offer a suggestion about a project or ask for feedback. Let the boss know you are interested and eager. • Volunteer. Don’t wait for your manager to ask you about joining a committee or task

force. Jump at the opportunity to be in contact with colleagues outside your department and build your image throughout the organization. • Go above and beyond. If you really want to impress people, accept responsibility that others might have backed away from or didn’t want. Never pass up an opportunity to show your willingness to learn and work hard. There will always be a place for the person who says, “I’ll take care of it.” And then does it. • Don’t give up. Stick with your projects and get them finished, preferably on time. Show your managers that they can rely on you to keep your commitments. • Network. Get to know the most talented people in your organization regardless of their titles. Don’t ask them for help – rather, offer to help them when you can. That builds positive relationships and earns you a reputation as someone who puts the organization’s objectives first. • Keep learning. I’m an advocate for lifelong learning, and I strongly encourage people to keep their brains fresh by learning both on and off the job. Be curious. Delve into subjects that will make you a more valuable employee. Someone once asked Michelangelo at age 88 when he was going to retire? He answered, “Whenever I stop learning.” These are habits you will use for life, no matter what job or title you hold. Good workplace etiquette will never go out of style. Harvey Mackay is a Minnesota businessman, author and syndicated columnist. He has authored seven New York Times bestselling books MN Valley Business • MARCH 2019 • 7

Bonnie Kruger has won numerous awards at Century 21.

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Peter Martin began managing the jewelry store in River Hills Mall when he was 19. Today he also works as a commercial real estate agent.

Super sellers Building relationships key to success By Tim Krohn | Photos by Pat Christman

eter Martin was a born salesperson, being promoted to managing a jewelry store in River Hills Mall at age 19. He still oversees the store but has added commercial real estate to his resume. Bonnie Kruger liked sales as soon as she got a job selling men’s clothing at Knights Chamber, now J Longs. Fifteen years later she looked for a new challenge and ventured into real estate. Her first year, in 2004, she sold 100 homes and has been one of the top Realtors in the region ever since. Amber Pietan loved nothing more than the many camping trips across the country her family took when she was a kid. While attending college, she realized the only thing she wanted to do was be a travel agent. She dropped out, got her travel agent degree and started working. Today she runs her own business doing custom-tailored trips around the world. No matter their path, those who excel at sales share a few traits, including a passion for what they do,

dedication to the job, and an understanding that building a trusting and true relationship with clients and potential clients is vital.

Cover Story

Peter Martin

Martin, 34, spent his early years in Miami before his family left their crime-ridden neighborhood and moved to Albert Lea when he was 13. “One of my biggest blessings was moving from Miami. I witnessed my first homicide when I was 8. Here you can grow up and have all these values. I’ll take the weather here any day.” Martin’s early sales career wasn’t promising. At 16 he had three part-time jobs, including selling electronics at Sears. “I was getting along with clients well and catering to them. I like to be nice to people. I don’t think (managers) saw that. I think they didn’t think I was aggressive enough and they actually let me go after a month. I was told I wasn’t cut out for sales.” MN Valley Business • MARCH 2019 • 9

Matthew, left, and Michael Atwood with Bonnie Kruger. Photo by Pat Christman After he got married, he went to Rochester’s Riverland Community College and worked in the Rogers & Hollands jewelry store there. They soon gave him his own store in the River Hills Mall and he commuted for a few years before moving here. “The biggest thing for me is to learn to read people on a daily basis and treat people the way I’d want to be treated. People are nervous (about buying an engagement ring or jewelry) sometimes if they haven’t gone through it. I just pretend I’m in their shoes and treat them as best as possible,” he said. He said the internet hasn’t hurt jewelry stores as much as many other retail stores. “Jewelry it’s something you should see in person...It’s very personal and there’s no way to really see the value online. Our volume has stayed consistent for over 10 years and has yearly increases.” He said one thing that’s changed is millennial shoppers’ budgets. “They are averaging out a lot higher on pieces, the average wedding ring is $6,000. Everyone wants the nicest ring for the one they love, but they’re stretching it a little more.” Martin said he doesn’t want to push people beyond their comfort zone. “I try to find their budget and help them work within that. I know my inventory, and I get a lot of comments from people that I made it comfortable and easy for them.” Two years ago Martin joined Coldwell Banker Commercial Fisher Group. “I’m not good at sitting still. I went after commercial realty because I’m more of a business major and that’s what I’m good at. I’ve known Curt and the Fisher family since moving here

10 • MARCH 2019 • MN Valley Business

and I wanted to make it a priority to work for them.” He works seven days a week. He’s in his Coldwell office 20-25 hours a week and more than that at the jewelry store. “I manage my hours well.” Martin said being a store manager and dealing with leases and other details gave him some insight into commercial leasing and sales. He said there’s a big difference between his two jobs. “Jewelry is definitely more of a commodity and there’s an emotion attached to it. With commercial there isn’t heavy attachment; it’s not like a house where you fall in love with the floors or something. Commercial people need the right spot and what’s a fit for their business,” he said. “With commercial you have to find multiple options that fit their budget, fits the convenience they’re looking for, highway access if they need it, the traffic they need going by, the right zoning. It’s just business, nothing sentimental.” His near-term goal is earning his CCIM designation as a certified commercial investment member. He took his first class last year and has years more to go. “It’s a nationwide network that makes you understand all the ins and outs of commercial. I’d like to get that as soon as I can. There are so many facets to commercial.”

Bonnie Kruger

When last month’s stretch of bitter weather slowed businesses across the area, Realtor Bonnie Kruger was still hosting open houses. “I sold one in the blizzard,” she said.

Real estate is a passion not a job. “I don’t consider this work. I love it,” she said. “I work seven days a week if need be, I work nights, I work weekends. I’m available when someone needs me. You can’t get into this if you want an 8-to-5 job.” Kruger always loved selling and spent years at Knights Chamber before looking for a new challenge. “I thought I needed something different to do, and my friend was selling real estate and I asked her if she thought I could do it. I got my license and didn’t have a dime to my name and it all just fell into place.” A Wells native, Kruger started with Century 21 Atwood Realty in 2004 and remains there today. “Two years in a row I got the top Century 21 award for agents in Minnesota, the Centurion Award. I’m proud of that but it’s nothing I strive for. I just feel blessed it happened. “I do a lot of patio and townhome business. I’ve been working with two builders for over 10 years. I do open houses every weekend.” About 85 percent of the homes she sells are new construction. “A lot of people are looking to downsize, retiring. And they usually have a home to sell, so I guide them through that process. It can get pretty overwhelming for people.” Kruger sometimes has to be the counselor as people sell their homes while downsizing. “They have a lot of stuff they’ve accumulated. I tell them if you haven’t used it, get rid of it.” And she’s had to tell more than a few guys their decorating style won’t be the best for showing a home for sale. “I tell guys to get rid of the deer heads and the fish on the walls. I’ve had some who actually get really mad at me,” she said. “There’s an art to selling homes. The photos are important. You have to do a lot of staging.” When working with buyers, patience is sometimes needed. “Sometimes it’s 80 houses later before you find one they like. Sometimes it one or two houses (before they buy).” The housing market in recent

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years has been most challenging because of the lack of inventory. Her business, she said, is all about making connections with buyers and sellers. “It’s all built out of relationships. You have to build relationships, and when people are talking to you, they have to feel it’s a fit and it’s a team effort. We have the same goal; it’s just how to get there,” she said. “And I like having friends.”

Amber Pietan

Amber Pietan always was drawn to the maps when her family traveled. “When we were kids, we used to travel and camp a lot and stop at wayside rests and pick up maps and information. I always loved geography and maps.” The Lake Crystal resident and owner of Amber Pietan Travel Agency sees traveling as as an emotional venture. “When you experience travel, it humbles you and you realize how small your world is,” she said. “We get in such a rush with everything we do that we don’t slow down enough to enjoy it.” While attending Minnesota State University, Pietan realized there was nothing there she wanted to get into. “I was talking to a friend and I said ‘I just want to be a travel agent.’” She switched to Dakota County Technical College in Rosemount where she received her travel agent certification. “I worked at AAA for 14 years and they taught me a lot and then I went on my own six years ago.” She specializes in putting together specialized, individual travel packages for customers. “So you might decide which cities in Europe you want to go to and how many nights in each — maybe you have relatives in different cities — and I customize it to what they want to see.” Pietan, whose office is on Pierce Avenue in North Mankato, has won a long list of outstanding sales achievement awards. “Some people find me from Google searches but it’s more word of mouth,” she said of her clients. “I try to create relationships as best as I can. I get a lot of repeat business.”

Her job also allows her to pursue her love of travel. “I go on at least two trips a year and sometimes four. I’ve been to a lot of places, which helps me give people ideas of what to do.” Most of the packages she creates for clients are for foreign trips, but she does a lot of trips for Hawaii and Alaska. “There’s a lot of planning involved for people going there.” Pietan’s travels and experience as an agent give her lots of tips and tricks to pass on to clients. “A lot of people don’t know their passport has to be valid six months after your return date.” She advises travelers to download their airline’s app ahead of time, which allows them to watch movies on their tablet through the app. Amber Pietan custom designs travel for her clients at Amber Pietan Travel Agency. Her favorite country to visit is Greece — “I’m a history buff” — and her favorite place to visit is Alaska. “When we were kids camping, we went to the Tetons a lot and the mountains have always been very nostalgic to me and Alaska reminds of that.” MV

“When you experience travel, it humbles you and you realize how small your world is,” she said. “We get in such a rush with everything we do that we don’t slow down enough to enjoy it.”

MN Valley Business • MARCH 2019 • 13

Geri Kottschade, who co-owns Jerry’s Body Shop with her husband Jerry Kottschade.

Right thing to do

At Jerry’s going green has always been a focus By Dan Greenwood Photos by Pat Christman

The big change the body repair shop oing green as a business strategy made was incorporating the use of watercomes in many different forms. based paints in their shop instead of Some of the more obvious examples solvents whenever are recycling and using possible. Solvents have energy ef ficient been shown to be a key lightbulbs or solar contributor to ground panels. Jerr y’s Auto level ozone, according Body, which has been a JERRY’S ABRA AUTO the Mankato mainstay to a U.S. Environmental BODY & GLASS loyal network of Protection Agency 1670 Madison Ave., Mankato (EPA), exacerbating customers since 1971, 507-388-4895 has built a reputation for damage to the lungs and its innovative throat. Facebook: Jerry’s Abra approaches to being “With the waterborne Auto Body & Glass environmentally paint we’re about 75 friendly. percent less hazardous

Cover Spotlight

14 • MARCH 2019 • MN Valley Business

Left: Kyle Reedstrom does a video chat on his phone with an adjustor in the shop at Jerry’s Abra Auto Body. Right: Darrell Lowe straightens a bent part of a truck. waste disposal on the paint,” said Geri Kottschade, who co-owns Jerry’s Body Shop with her husband Jerr y Kottschade. “We’ve been waterborne for about seven years now and definitely seen a decrease in the bi-products and the gun washer as well. You don’t have that harsh chemical going through the gun.” There has been an uptick in demand for waterborne paint in the automotive industry as states have lined up to curb the uses of industrial solvents. 11 states currently regulate the amount of volatile organic compounds that solvents emit into the air, although Minnesota is not included. Cathy Rusnak, segment communications manager for PPG Industries, the company that supplies waterborne paint to Jerry’s Body Shop, said that many companies are making the switch without any regulations requiring them to do so. “What’s amazing to us is it began as a way to meet regulations, but we have a lot of shops that don’t have to meet regulations that have adopted the waterborne technology,” said Rusnak. “It’s a way to become more sustainable but also it’s a great product for color matching capability and it’s easy to use.” Jerry’s Body Shop originally opened a shop on Rock Street at what used to be an old carriage repair shop. Fifteen years later, they realized they had outgrown the downtown space and decided to relocate in 1987 to their current location at 1671 E. Madison Ave.

in Mankato. At the time, that part of upper Mankato was comprised of soybean fields. It was an unusual business move to relocate there at the time and build from the ground up, said Jerr y Kottschade. “When we moved up here the word on the street was we wouldn’t make it six months,” Jerry Kottschade said. “They thought we’d go broke, too much money spent.” Over three decades later, they continue to enjoy a reputation for being one of the most popular auto body shops in the area. A walk into the main office feels like a greenhouse, with tropical plants and palm trees that the couple say have thrived there for years. Another change they made around the same time as switching to waterborne paints was to add solar panels to their roof. Other businesses in town who added solar panels for electricity have said the move made financial sense, but Jerry Kottschade said that was not their initial reason for installing them. “It was the right thing to do,” he said. Some environmentally minded changes they’ve made have actually costed them more. The clear coat paint they use is still the thicker, solvent based application. Those filters are changed quarterly, and even though the EPA doesn’t deem them as hazardous waste because the paint is dry, the Kottschades opt to incinerate them rather than putting them in a landfill.

“To get rid of the filters is probably about $2,800 to dispose of them that way versus just putting them into the garbage can,” Geri Kottschade said. Geri Kottschade said when they installed the solar panels, got rid of Styrofoam cups and began reusing and recycling office supplies, they advertised those changes, but their longevity gives them an advantage. A sizable portion of their customers return after having their car body repaired at the shop. “Thirty-40 percent are repeat customers, and word of mouth is just about as big,” she said. The recycling spreads to the vehicles themselves as well. About a third of their customers who come in to have parts replaced following an accident will get a door, fender, roof from another donated vehicle dropped off at a salvage yard. Geri Kottschade said that a lot of people get nervous about putting a recycled part on their car, but if it’s a good quality part – clean of rust and damage – it’s a good viable option. “I remember years ago I had a gal that came in that had a car that was beyond repair; we couldn’t fix it for her,” Geri Kottschade said. “It was emotional for her to get rid of the car, very difficult. She goes, ‘What’s going to happen to it?’ I said, ‘It will probably become a donor car. The parts will be used on another car going down the road.’ It made her feel so much better, it’s almost like organ donating.” MV

MN Valley Business • MARCH 2019 • 15

From left, Deb, Kayla and Jessica Lorentz. Three generations at Toppers Plus in Mankato.

More than toppers Toppers Plus has expanded focus By Dan Greenwood Photos by Pat Christman

Mankato. The two saw an opportunity to n this day and age, rapid change in any meet that demand, and opened Toppers Plus given industry and the need to adapt are in 1986. the norm, but probably even more so Three generations later, when it comes to selling , with a staff that’s renting and repairing expanded to 17 people, truck accessories like they attribute the steady trailers, plows and toppers. TOPPERS & TRAILERS growth of the family business to a keen eye on When Deb and Leroy PLUS industr y trends, Lorentz were shopping 1929 East Madison Ave., professional development for a topper for their truck Mankato over 30 years ago, there and adapting to an ever507-387-7376 were limited options in changing industry that

Feature

www.toppersandtrailersplus.com

16 • MARCH 2019 • MN Valley Business

makes older equipment obsolete with each reissue of a new truck. “The last six years we’ve been trying to change the way we do things, what we do and the way that we do them, to become more efficient,” Deb Lorentz said. Their daughter, Jessica Lorentz, joined the family business 17 years ago. Her own daughter Kayla began working for the company full-time following high school graduation, spanning the family business across three generations. Deb Lorentz credits her daughter’s fresh perspective for ensuring a successful path forward. In recent years, the family has been revamping their business to accommodate changes in the industry, including Andy Haala checks the fit of a toolbox on a flatbed installed at Toppers Plus. the opening of a second location in Le Sueur in 2018. Accessories were shrinking in the that,” Jessica Lorentz said. “A lot “The main thing was the market, so they expanded their of those guys do snowplowing; exposure and exit off to the service department with trailer plus they do landscaping during highway,” Leroy Lorentz said. repair becoming more prevalent. the summer so they need a trailer “Especially with cell phones, “It’s been changing over the and a snowplow,” Jessica Lorenz when they drive by see something years,” Jessica Lorentz said. said. “We do a lot of work with a they like and all they have to do is “Trucks are coming with lot of companies.” look us up.” everything on them, so I needed Deb Lorentz says that when The location in Le Sueur was to get into something else. We money changes hands, they strive twofold. It was closer to the Twin had always done trailers but it just to keep it local. Those transactions Cities, which would attract more wasn’t really a focus of what we built on mutual support lead to customers, and it was in plain did.” repeated business, and that goes sight for traffic on Highway 169. Toppers plus also does custom in both directions. The new location combined with designs, plow repair and rentals “We believe in shopping adapting to changes in the on top of selling those accessories. locally,” Deb Lorentz said. industr y would help ensure Sensing the inevitable changes in “Customers who buy from us, we longevity for future generations. the industry three years ago, the buy from them. When I need a “My big push was to generate Lorentz family got to work new vehicle it will be from one of enough money so my parents revamping their showroom, our customers and that’s the way could retire,” Jessica Lorentz installing a new computer system we’ve tried to do it with everything said. “We were maxed out here, and divided the company into as much as we can. And I think running out of space. We weren’t three components. that truly has rewards.” growing. Once we opened that it “Before ever ybody did With all the changes they’ve really started opening things up.” everything,” Jessica Lorentz said. made to accommodate the “Now we have sales people, parts industry, Deb Lorentz said it’s Changing needs people and service. It’s a lot less important to recognize that Their Mankato location is chaos and just more accountability change itself, however difficult, is nestled among several car – better customer service.” a given. dealerships near the intersection Leroy Lorentz says southern “We want continuous of Madison Ave. and Highway 22. Minnesota provides a bit of a improvement,” she said. “It’s not While lacking a busy road like in safety net that other parts of the like you get done; it’s all the Le Sueur, it’s an ideal stopping country who are in this business time.” MV point for anyone who just bought don’t experience. In the winter, a new truck and needs they service and provide parts for accessories. snowplows, in the summer they But over the years, those work with construction firms and accessories are increasingly farmers. One of their fastest included in the purchase of the growing and loyal customer base newest trucks. Jessica Lorentz involves other businesses. says they needed to innovate and “A lot of bigger companies that adjust what they offer to meet the have fleets of trailers, we service changing needs of customers. a lot of trailers for people like

MN Valley Business • MARCH 2019 • 17

This home, on the shore of Lake Washington on Washington Boulevard, sold for $1.29 million.

Lakeside luxur y 8 of 10 priciest homes sold in area in 2018 had waterside views By Dan Linehan

outh-central Minnesota homebuyers don’t often approach the million-dollar mark, but when they do, a lakeside view tends to be involved. A look at the top 10 most expensive homes sold in Blue Earth, Nicollet and Le Sueur counties in 2018 finds that eight in 10 were along a lake. That’s not unusual. With their high land prices, “definitely lake property is going to take most of the top spots,” said Rich Draheim, owner of Weichert Realtors in Mankato. “There’s always an exception, but generally the three highest-resale-value lakes are Francis, and Washington with Madison and Jefferson being tied for third,” Draheim said. In 2018, Lake Washington homes took six of the top 10 spots. Lake Francis homes often fetch higher prices 18 • MARCH 2019 • MN Valley Business

because they’re slightly closer to the Twin Cities and attract more buyers from the metro. In the Mankato area, both supply and demand limit the number of homes that sell for $1 million or more, said Candee Deichman, an agent at True Real Estate. “Maybe 1 percent of people living in the Mankato area or moving here can afford a million-plus house,” she said. Similarly, there aren’t that many homes worth that much to buy. Lakeside properties are often valued per square foot of shoreline, a commodity that isn’t changing much. “People are more willing to spend a million to build than they are to buy,” she said. Moreover, that $1 million threshold can add a psychological barrier for buyers eager to get a great deal. Homes that would have sold for $1.1 million or $1.2 million are often instead listed for just under

The home on Washington Boulevard on Lake Washington was the most expensive sold last year at $1.29 million. seven figures, Deichman said. High-end lakefront real estate tends to be much more about the location than the house. A few years ago, Draheim’s company sold a $1.1 million lakefront house, and the owners promptly tore it down. “That’s part of the challenge when you get in the luxur y market — they know what they want,” Draheim said. Deichman agrees, saying, “These people need their hands held a little bit more … they want their house treated like a palace.” Not that she’s complaining: “This can be challenging to some agents, but I like working in that environment.” Part of Deichman’s job is managing expectations, both in terms of a home’s price and how

long it will take to sell. Because owners of expensive homes often start with lofty assumptions about their home’s worth, multiple agents tend to come and go from a listing before the price comes down. “When a high-end house goes on the market, they think it’s worth so much because that’s what they have (invested) into it,” Deichman said. Finally, moving to a lake is as much about a lifestyle change as a geographic one. So getting potential buyers in these homes often requires a bigger change, and takes longer, than moving across town, Draheim said. Here’s a closer look, thanks to public records and online real estate listings, at the 10 most

“People are more willing to spend a million to build than they are to buy,”

expensive properties sold in this area in 2018.

TOP 10 HOMES

1. 4500 Washington Blvd., Madison Lake $1.29 million

Built on 2.24 acres in 1998 by its original owners, this fourbedroom, 5,200-square-foot property has “some of the most perfect Lake Washington lake shore,” according to its listing on Realtor.com. Its location, greenhouse, jetted tub and other amenities push its sale price more than twice as high as other homes for sale on the lake as of late January, according to the website.

MN Valley Business • MARCH 2019 • 19

2. 29193 Biehn Dr. Madison Lake $952,500

This thr ee-bedroom, 3,149-square-foot home, located just a stone’s throw from Camp Patterson on Lake Washington, sits on a .76-acre lot. It makes up for its slightly smaller size with a boat house and sand beach.

3. 22375 Lakewood Dr. Madison Lake $930,000

Madison Lake is the home of the third-most expensive area home sold in 2018. The 3,133-square-foot house includes a five-vehicle garage and a home theater with reclining rumble seats and a 120-inch projection screen.

4. 6316 Killarney Ct., Madison Lake $900,000

Located on the northeast shore of Lake Washington this home on 29193 Biehn Drive sold for $953,500.

At 2,600 square feet, this isn’t the largest home on the list, but it includes 300 feet of Lake Washington shoreline on Connor’s Point. It does, however, have the amenities that are more or less standard in this price range, like a wet bar, fireplace and a kitchen with an island in the middle.

5. 105 Larkspur Ct., Mankato $875,000

The first non-lakeshore house on this list, 105 Larkspur Court is on the lower edge of Mankato just off Monks Avenue. Built in 2011, this five-bedroom, 4,317-squarefoot home includes a wine cellar, game room, wet bar, hearth room and theatre.

6. 4476 Washington Blvd, Madison Lake $815,000 This home at 105 Larkspur Court in Mankato sold for $875,000. It is on the very southern edge of Mankato. 20 • MARCH 2019 • MN Valley Business

Last sold for $120,000 in July 1997 — or $187,800 in today’s dollars — the value of this 2,942-square-foot Lake

Washington home went up by 43 percent in the last four years, according to its online listing. It was listed for about six months before being sold.

7. 5408 North Shore Ct. Madison Lake $745,000

The fifth Lake Washington home so far on the list, this 3,418-square-foot has luxur y amenities like a home gym, two laundry rooms and a bathroom with a separate tub and shower.

8. 28695 Hub Dr. Madison Lake $699,000

Located along what’s often called West Jefferson Lake — the federal government’s naming system considers East and West Jefferson to be a single lake — this 2,450-square-foot home’s most distinctive element may be its theater. The 13-by-17-foot room has reclined, movie-style seating.

9. 109 Woodside Lane, Mankato $672,500

The second-most expensive non-lake proper ty, this 2,942-square-foot home is located on the east side of Mankato in a cul-de-sac. With six bedrooms, two full bathrooms and a halfbathroom, it’s not lacking in space. Built in 2003, it also includes a pool and more than 1,300 square feet of porches, decks and patios.

10.1106 Baker Bay Rd., Kasota $650,000

Another Lake Washington sale, this four-bedroom, 1,784-squarefoot house is on the lake’s west side, near Westwood Marina. It spent about six weeks on the market last summer before being sold for its asking price. MV

This home on North Shore Court on Lake Washington sold for $745,000.

8 The theater room in the home on the southwest side of West Lake Jefferson. The house sold for $699,000.

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Steve Carlson

LocaLLy & famiLy owned since 1974 MN Valley Business • MARCH 2019 • 21

Loca

■

Business and Industry Trends

Energy Oil lower, steady

Brent oil prices will average $61 per barrel this year and $65 in 2020, according to estimates from the Energy Information Administration. In 2018, Brent prices averaged $71. EIA expects West Texas Intermediate crude oil prices will

average $8/b lower than Brent prices in the first quarter of 2019 before the discount gradually falls to $4/b in the fourth quarter of 2019 and throughout 2020.

Gasoline: $2.47 in ’19

U.S. regular gasoline retail prices will average $2.47/gal in

2019 and $2.62/gal in 2020 in EIA’s forecast, which would be a decrease from an average of $2.73/gal in 2018.

Oil production up

U.S. crude oil production averaged 10.9 million barrels per day in 2018, up 1.6 million b/d from 2017, reaching its highest level and seeing its largest volume growth on record. EIA forecasts U.S. crude oil production to average 12.1 million b/d in 2019 and 12.9 million b/d in 2020, with most of the growth coming from the Permian region of Texas and New Mexico.

Natural gas cost down

The Henry Hub natural gas spot prices will average $2.89 per million British thermal units (MMBtu) in 2019 and $2.92 in 2020, down from $3.15 in 2018.

Coal production falling

U.S. coal production will total 729 million short tons (MMst) in 2019, down by 25 MMst (3%) from 2018. Coal production will further decline by 50 MMst (7%) in 2020. This decrease is the result of coal’s relatively weak competiveness in the electric power sector compared with natural gas, as well as an assumption of lower demand for U.S. coal exports.

CO2 emissions fall

After increasing by 2.8% in 2018, EIA forecasts that energy-related carbon dioxide (CO2) emissions will fall by 1.2% in 2019 and by 0.8% in 2020. The declines reflect a forecast of more typical weather compared with 2018 and shifts in fuel use. Energy-related CO2 emissions are sensitive to changes in weather, economic growth, energy prices, and fuel mix.

22 • MARCH 2019 • MN Valley Business

Most solar power plants 5MW or smaller

The United States has more than 2,500 utility-scale solar photovoltaic (PV) electricity generating facilities. Most of these power plants are relatively small and collectively account for 2.5% of utility-scale electric generating capacity and 1.7% of annual electricity generation, based on data through November 2018. EIA considers utility-scale generating facilities to be those where total generation capacity is one megawatt (MW) or greater. However, some utility-scale sites use more than one generating technology. At utility-scale facilities where PV is one of several technologies in use, the PV capacity itself may be less than one megawatt, but this is relatively rare: based on EIA’s latest data, only 20 sites with a total combined capacity of 10 MW were in this category.

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

1,127

958

1200 900 600 300 0

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

Sales tax collections Mankato (In thousands)

- 2017 - 2018

600

$464

$454

500 400 Source: U.S. Energy Information Administration

300

The growth in small utility-scale facilities is driven by several factors, many of which are tied to state-level policies and practices. For example, North Carolina used the Public Utilities Regulatory Policies Act of 1978 to allow utilities to set long-term purchase agreements with solar facilities, enabling solar developers to secure project funding more easily and spurring growth. In other states, the growth of small utility-scale PV capacity is encouraged by strategies that include, for example, community solar facilities. Community solar facilities offer a share of their solar capacity for sale to off-site customers who may not necessarily have access to solar generation. In these programs, customers may subscribe to a designated community solar facility and receive monthly credits on their electric bills for the energy generated by the share of solar capacity they purchase

200 100 0

Source: Sales tax figures, City of Mankato

Lodging tax collections Mankato/North Mankato

- 2017 - 2018 $60,726

$56,967

70000 52500 35000 17500 0

Source: City of Mankato

Mankato food and beverage tax - 2017 - 2018 175000 140000

$64,600 $64,700

105000 70000 35000 0

Source: City of Mankato

C. Sankey

MN Valley Business • MARCH 2019 • 23

■

Agricultural Outlook

By Kent Thiesse

Stable land values protecting farm finances M any agricultural experts and economists have been warning for the past few years that we could be headed for a significant correction in farm land values in the Midwest. Land value summaries showed that a reduction in average land values did occur in some regions of the U.S from 201416, including the Upper Midwest. Land values in the Midwest stabilized somewhat in in 2017, before showing some signs of decline in many areas in 2018. Most experts point to low commodity prices and reduced farm profitability as the primary reasons for recent decline in land values. Iowa State University does a comprehensive land value survey each December, which is regarded as one of the best resources on trends in Midwest farm land sales. Following is a table showing the average value of Iowa farm land for the past 12 years (20072018), and the average percentage change in farm land values from one year to the next.

IOWA AVERAGE FARM LAND VALUES (2007-2018)

YEAR 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

AVG. VALUE PER ACRE $ 3,908 $ 4,468 $ 4,371 $ 5,064 $ 6,708 $ 8,296 $ 8,716 $ 7,943 $ 7,633 $ 7,183 $ 7,326 $ 7,264

% CHANGE +22.0 % +14.3 % (2.2 %) +15.9 % +32.5 % +23.7 % +5.1 % (8.9 %) (3.9 %) (5.9 %) +2.0 % (0.8 %)

NOTE --- This data is from the Iowa State University 2018 Farmland Value Survey.

Iowa farm land values rose at an incredible pace from 2000 to 2013, with only one minor decline in 2009, before more significant declines of 8.9 percent in 2014, 3.9 percent in 2015, and 5.9 percent in 2016. This was the first time that the Iowa land value survey has shown three consecutive years of decline since the mid-1980’s. The 2017 Iowa Farmland Value Survey showed an increase of 2 percent, or $143 per acre, compared to a year earlier, before a slight decline of 0.8 percent or ($62) per acre in 2018. Overall, 2018

24 • MARCH 2019 • MN Valley Business

average farm land values in Iowa are 16.6 percent below the peak average land value of $8,716 per acre in 2013. The average 2018 land values increased in only two of the nine crop reporting districts in Iowa, as compared to 2017 average land values, while decreasing in five districts, and staying the same in two districts. The greatest increase was +3.8 percent in the South Central district, while the largest decline was 3.6 percent in the neighboring Southeast district. The Northwest District reported the highest 2018 average land values in Iowa at $9,311 per acre. There continues to be a limited supply of available land for sale in many areas of the State. Trends in farm land values in Southern Minnesota are probably fairly close to the trends shown in the Iowa land value survey, reflecting the lower crop prices and tighter profit margins in recent years. Similar to Iowa, land values in many portions of Southern Minnesota seemed to stabilize in 2017, before declining in 2018. In addition to low profit margins, 2018 corn yields were the poorest in decades for many Southern Minnesota farm operators, due to the excessive rainfall during the 2018 growing season. Some isolated land sales across Southern Minnesota have still been reported at fairly high values per acre; however, the overall land value trend in the past 4-5 years has been a decline of 10-18 percent from the peak land values in 2013 and early 2014. In the past couple of years, there has been an increasing gap in the average land price for high quality, well drained farm land, compared to low quality, poorly drained land. One of the best sources of farm real estate values in Minnesota is the University of Minnesota’s “Land Economics” web site at: www.landeconomics.umn.edu. This web site is updated annually after September 30, and accesses a data base of various land values, based on farm land valuations reported to the State Revenue Office by County Assessors Offices throughout the State each year, which are adjusted annually based on actual land sales in a given County. This web site allows for selected sorts by County, State Economic Regions, Watersheds, etc., as well as by types of land. Based on potential returns from crop production, current land values should probably be much lower than current levels. In recent years, many farm operators have purchased farm land as an “opportunity investment”, using returns from existing farm land

that is “debt-free” to help subsidize the cash flow and debt payment ability on the newly purchased farm land. Similarly, investors have purchased farm land as a long-term investment, realizing that current cash rental rates in most areas will lead to less than desirable annual rates of return at the present time. Most economists point to the relative stability in farm land values in the Midwest as the primary reason that we have not seen more farm operations discontinuing due to financial collapse or bankruptcies. However, the continuing low profit margins in crop production, as well as in most of the livestock sectors, in the past couple of years is increasing the financial stress for many farm operations. The value of farm land accounts for over 80 percent of the total assets in the U.S. agriculture industry. During the farm financial crisis of the 1980’s, average farm land values declined by over 60% in a 5-year period from 1981 to 1986, which lead to many farm bankruptcies and foreclosures. Currently, there are no signs on the horizon of a dramatic decline in land values, similar to the mid1980’s. However, there are some lingering “caution flags” that could put further downward pressure on land values in the coming 12-18 months. These 8 challenges include: potential • Continued low or negative profitability in crop and 6 livestock farming. • Lack of new trade agreements that continue to keep 4 commodity prices reduced. • Rapid increases in interest rates by the Federal Reserve Bank. 2 • Reduced interest by farm operators and investors to purchase farm land. 0 J increase F M inA theMamount J J of land A Sbeing O offered N D • A large for sale. • Lack of confidence in the land market by ag lenders. Many 8 areas of the Upper Midwest experienced above average corn and soybean yields in 2016 and 2017,100which seemed to stabilize land values in many 6 locations 85 of the region in 2017 and early 2018. However, greatly4 reduced crop yields in many portions of Southern Minnesota and Northern Iowa in 2018, 70 together with continued low commodity prices, 552 to be putting more downward pressure on appears land values in some locations. Most likely, the future 40 trends0in JcropF prices, levelS of 2019 M Aalong M with J Jthe A O N crop D yields25and profitability in livestock production, will F Mvalues A M J J to Astabilize, S O or Nif we D determineJ if land continue see further declines in land values later this year. Expect considerable variation in land values going forward, based on location, land quality, amount of tile drainage, 100 and local buyer interest.

Agriculture/ Agribusiness Corn prices — southern Minnesota

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

(dollars per bushel)

20 100 $72.44 25 16 85 22 12 70 19 8 55 16 4 40 $49.93 13 0 J F M A 25 10 J F M A J F M A Source: USDA

25 22 19 16 13

M J M J M J

Milk prices

J J J

A S O N D A S O N D A S O N D

Minimum prices, class 1 milk Dollars per hundredweight

— 2018 — 2019 25

$15.74

$14.41 J

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

185 pound carcass, negotiated price, weighted average

— 2018 — 2019

Iowa-Minnesota hog prices

— 2018 — 2019 8 20 100 16 6 85 $8.97 12 470 8 255 $8.29 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

Soybean prices — southern Minnesota

$3.12

Source: USDA

12 8

$3.39

(dollars per bushel)

— 2018 — 2019

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 • MARCH 2019 • 25

Construction/Real Estate Residential building permits Mankato

Commercial building permits Mankato

- 2017 - 2018 (in thousands)

$17,366

$8,812

30000

18000

25000

13500

20000 15000

9000

$703

5000

Source: City of Mankato

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

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

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

250

300

167

168

240

$169,000 $164,900

200 150

180

100

120

0 J

Source: Realtors Association of Southern Minnesota

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

Housing starts: Mankato/North Mankato

— 2018 — 2019

- 2017 - 2018

5.5

4.5%

5.0

Source: Realtor Association of Southern Minnesota

Interest Rates: 30-year fixed-rate mortgage

4.5

4.0

3.5 3.0

$2,510

10000

4500

- 2017 - 2018 (in thousands)

3.9% J

10 M

Source: Freddie Mac

We Know Commercial Real Estate.

Broker

NORWOOD INN

www.lidcomm.com • 507-625-4606 100 Warren Street, Suite 708, Mankato, MN

26 • MARCH 2019 • MN Valley Business

SITE

CCIM, Broker

Karla Jo Olson

NG RA

This site offers outstanding visibility from US Highway 169 with access from both Range and Cross Streets. General Commercial Zoning allows a variety of uses.

CROSS ST

FOR SALE: 2.04 ACRE COMMERCIAL LOT

S KIN

Tim Lidstrom

NEW!

Range Street Lot

Read us online!

Source: Cities of Mankato/North Mankato

Gas Prices 5

Gas prices-Mankato

— 2018 — 2019

54 43 $2.48

32 21 10 0

$1.97

$42.31

$41.70

-1.4%

Ameriprise

$111.24

$126.66

+13.9%

Best Buy

$56.75

$59.54

+4.9%

Brookfield Property

$17.42

$18.71

+7.4%

Crown Cork & Seal

$45.46

$51.83

+14.0%

Consolidated Comm. $11.37

$10.60

-6.7%

Fastenal

$53.07

$61.73

+16.3%

General Mills

$41.00

$43.84

+6.9%

Itron

$49.38

$58.04

+17.5%

Johnson Outdoors

$65.34

$61.19

-6.4%

$193.73

$202.31

+4.4%

Target

$70.31

$72.38

+2.9%

U.S. Bancorp

$46.95

$57.33

+22.1%

Winland

$1.10

0.0%

Xcel

$48.30

$52.36

+8.4%

— 2018 — 2019

32 $2.00

Archer Daniels

$2.58

Percent change

Feb. 7

Jan. 7

Gas prices-Minnesota

Stocks of local interest

0Source: GasBuddy.com J F M A

C. Sankey

MN Valley Business • MARCH 2019 • 27

Minnesota Business Updates

■

million. Fishing sales declined 11 percent to 78.8 million and diving sales dropped 11 percent to $15.5 million, while camping sales slipped slightly.

■ ADM report disappoints Archer Daniels Midland reported lower-than-expected profits as costs rise and a trade dispute with China drags on the price of commodities. The Chicago-based company reported fourth-quarter profit of $315 million, down sharply from the $788 million profit in the same quarter last year when it benefited from the Trump administration’s tax overhaul. ADM had profit of 56 cents per share, or 88 cents per shares when one-time gains and costs are removed. Industry analysts had been projecting a per-share profit of 92 cents. ADM reported “extremely small volumes” of soybean exports to China since tariffs were imposed, but said more corn and soybeans are being exported to other countries, which improved export margins.

■ Cargill eyes baking oil Cargill has launched a new palm shortening line, specifically for bakery. PalmAgility is positioned as a superior-performing, easy-to-use palm shortening for use in pies, donuts, cookies and crème fillings. “Bakery customers face a variety of challenges with standard palm shortenings from transportation to storage to performance. PalmAgility’s virtue is that it is a single solution that helps address these multiple bakery performance needs,” John Satumba, of Cargill, told FoodIngredientsFirst. PalmAgility reduces brittleness across a wider range of temperatures, allowing customers to store it easily without sacrificing workability or texture

■ Johnson earnings down Johnson Outdoors reported a downbeat fiscal firstquarter report, amid weakness in fishing and diving product sales and the negative impact of tariffs. Net income rose to $3.5 million, or 35 cents a share, from $235,000, or 2 cents a share, in the same period a year ago, which included a negative impact from tax reform. Sales fell 10 percent to $104.44 million, which was below the range of estimates of the two analysts surveyed by FactSet of $113.7 million to $119.9

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

737 263 47 297 1,344

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

657 251 61 149 1,118

Construction 126000 126000 Manufacturing Retail 113000 Services 113000 Total*

12,087 3,112 1,170 5,642 22,011

12,106 2,835 1,139 5,416 21,496

126000

2100 1400

113000

700 100000

Minnesota Local non-farm jobs

28 • MARCH 2019 • MN Valley Business

150000 100000

2000 1400 1400

50000

700 0

200000

4000 2100 2100

700 N

2,992 2,958

8000 3500 3500 6000 2800 2800

+0.2% -8.9% -2.6% -4.0% -2.3%

- 2017 - 2018

(in thousands)

Percent change ‘17-’18

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

3500 2800

-10.9% -4.6% +29.8% -49.8% -16.8%

Minnesota initial unemployment claims December 2017 2018

131,613 129,803

139000

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

Major Industry 139000 139000

- 2017 - 2018

Nine-county Mankato region

F M

M A A M

M J

J J

J A

A S

S O

O N

N D

within a few miles of each other, as well as several restaurants, a spa and employee housing for 92 workers. Bluefin Bay CEO Dennis Rysdahl has owned the resort since 1984 and is retiring. Bluefin Bay is the latest high-profile Minnesota resort to change hands in recent years. Lutsen Resort, which claims to be the state’s oldest, was sold in 2018 for about $7 million. In 2016, the family who owned the Gunflint Lodge, north of Grand Marais, sold it for more than $6 million. 139000

■ Rochester eyes transit villages A pair of transit villages seen as vital solutions to 126000

Rochester’s ever-worsening traffic would rise on the northwest and southeast sides of the city in a vision approved 113000 by the Destination Medical Center Corporation board, according to the Star Tribune. The villages — think parking ramps with hundreds of 100000 units, some retail and a link to downtown via housing J F M A M J J A S O N D an every-10-minutes circulator bus — would provide some of the thousands of additional parking spaces projections say will be needed in Rochester by 2040.

■ Iconic Bluefin Bay for sale For the first time, the iconic Bluefin Bay resort on Lake Superior’s North Shore is up for sale. The property in Tofte, Minn., was listed for sale late last month, though the asking price was not publicly disclosed. 139000 “We’ve had a lot of interest in it,” Frank Jermusek, 139000 president of SVN Northco Real Estate Services, told the Star Tribune. 126000 Overlooking Lake Superior, Bluefin Bay may be the 126000 most well-known of the Bluefin Bay Family of Resorts, but the113000 listing also includes Surfside and Temperance 113000 Landing, also located off the lake along Hwy. 61 and

3500 8000 2800 6000 2100

3500 2800 2100 1400 700

100000

100000 J F

J M

M J

J A

J S

Local number of unemployed

4000 2100 1400 2000

S N

O D

8000

4,661 4,618

6000

0 F F

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

J A A

J S S

A S O N O N D O N D

200000

97.928 103,856

150000 100000 50000 D

700 0

4000 1400

100000

700 2000

50000

0 0 J F JM

F M A M AJ FA M

M MJ

J JA

J JS

A AO

S N S

O D O

N N

D D

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

December

100000

0 F

J M

F M A A M J

M J

J A

2017

2018

2.5% 59,524 1,526

2.56% 62,061 2,573

J S

A O

S N

O D

Unemployment rates Counties, state, nation County/area

- 2017 - 2018

1400

150000

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

100000

2000

2100

Mankato/North Mankato Metropolitan statistical area

150000

4000

700 0 J 0 J

D 0

200000

Minnesota number of unemployed

- 2017 - 2018

Nine-county Mankato region 8000 3500 6000 2800

A O

2800

200000

Employment/Unemployment

F M A A M J

3500

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

December 2017

December 2018

2.6% 3.4% 4.2% 4.2% 3.5% 2.3% 3.8% 4.2% 3.8% 2.7% 3.4% 3.9%

2.5% 3.6% 4.1% 4.1% 3.6% 2.3% 4.3% 4.0% 4.1% 2.8% 3.2% 3.7%

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

Minnesota initial unemployment MN Valley Business • MARCH 2019 claims • 29

Sponsored by the Carl & Verna Schmidt Foundation

‘Bucket’ approach to spending reduces stress of retirement

By Tribune News Service

nyone retiring in 2019 could understandably be feeling a little skittish. There’s retirement research showing market declines in the first few years can devastate a portfolio’s chances of providing enough income for life, and recent volatility after a nearly decade-long bull market is worrisome. Interest rates moving higher could be a good sign, in theory, for someone hoping to build ladders of CDs, for example. On the other hand, if it also ushers in an era of rising inflation, that’s troubling, too. And a prolonged government shutdown could have even more of an impact on the economy. But if delaying is no longer an option, either because of health, the job market or simply your own conviction, consider building in a few contingency plans. Several financial advisers contacted for this article said they are carving out cash buckets for retirees’ living expenses. Some of them take spending money directly from the cash bucket, replenishing it with stock gains periodically, while others keep the cash as a reserve to draw from during market downturns. Either way, they say the cash acts as a volatility buffer, allowing clients to refrain from panic selling into a market decline. “Creating a bucket strategy can help clients compartmentalize assets designed for certain purposes or periods of time,” said Ashley Folkes, a financial planner in Scottsdale, Ariz. “Having safe money to draw down from for the first few years alleviates some of the stress from the buckets (that are invested in stocks),” she said. Consider a couple retiring this year at precisely their full retirement ages, as defined by the Social

30 • MARCH 2019 • MN Valley Business

Security Administration. The 66-year-olds will get a combined $3,000 a month in Social Security benefits and they have retirement accounts worth $500,000. Suppose the couple wants to withdraw $21,853 this year from savings, which is the spending rate recommended by BlackRock’s LifePath Spending Tool. Using a bucket strategy, the couple would put $65,559 into the cash bucket while investing the remaining $434,441 in a portfolio of 60 percent stocks and 40 percent bonds. So, the couple will have about $260,665 invested in the stock market, $173,776 in bonds and the $65,559 in cash. Without the cash reserve, a 60/40 stock/bond allocation would mean the couple had $300,000 in stocks and $200,000 in bonds. Clearly, the cash bucket creates a more conservative portfolio overall, which is important for retirees to understand as they try to find the appropriate amount of risk to cover their expenses and inflation. Now, for the cost side of the equation. Anyone about to retire should know precisely how much they are spending, though advisers said this is sometimes a big area for miscalculations. Particularly in the first few years, travel and hobby expenses can really add up, notes Mike Alves, a financial planner in Pasadena, California. “Every client is different,” he said. Rather than building in an unsustainable long-term withdrawal rate to accommodate a few trips in the early years, he carves out another bucket for big-ticket items. Clients see that bucket and know that when it’s gone, it’s gone, and they are left with their long-term withdrawal rate that pays the essentials, he said. MV

Sponsored by the Carl & Verna Schmidt Foundation

Could you live on your retirement savings for 23 years? NerdWallet

Precision isn’t always possible when it comes to retirement planning. That doesn’t mean you have to wing it and hope your savings don’t expire before you do. Looking at the income, living expenses and life spans of today’s retirees can help you make the right financial moves so your golden years aren’t tarnished by an unexpected shortfall.

Average retirement cost?

Government and Gallup data reveal a lot about what retirement is like for Americans today. It starts at age 61, even though many tell Gallup they planned to work longer. And based on some morbid math — the average remaining life expectancy of someone who’s made it to their early 60s (23.3 years), according to the Centers for Disease Control and Prevention — you should plan to be retired for at least a few decades. Your mileage may vary based on things such as your work (accountant versus rodeo clown, for example), diet, family health history and participation in extreme sports leagues. The average budget for a retiree, according to Bureau of Labor Statistics data, provides even more color on what to expect when you’re expecting to retire. Older households, defined as ones headed by someone 65 or older, spend $46,000 annually, versus the $57,000 average spent by all U.S. households combined. The top three monthly expenses for those 65 and older are housing ($1,322), health care ($500) and food ($484). On average, about half of a retired household’s income comes from Social Security and private and government pensions, according to the BLS, with personal savings and investment and rental income providing 6.9 percent.

How long will your money last?

An online retirement calculator can project a more accurate picture of your retirement readiness. It will use your current saving, spending and investment profile and some rules of thumb about historical investment returns, reasonable withdrawal rates and, yes, life expectancy. (Most calculators assume people

will live into their 90s.) What if the calculator shows that at the rate you’re going, you’ll outlive your retirement savings? If you’re not yet retired, one of the best moves is postponing your retirement party. This strategy is especially valuable for those in their peak earning years. Besides reducing the number of years you’ll need to live off your savings, working longer allows more time for your investments to grow. Plus, the additional time contributing to Social Security could mean a bigger benefits paycheck down the road. Every year you postpone filing for Social Security after your fullbenefit retirement age (66 or 67 for most people), your future monthly benefits check grows by as much as 8 percent per year until you turn 70.

Pad your paycheck in retirement

If you’re already retired and un-retiring or waiting to file for Social Security aren’t feasible, there are other ways to make up for the shortfall between retirement income and expenses. — Leverage your home. If you have substantial equity in your home, a reverse mortgage can turn this asset into income. You’ll receive a regular check as long as you’re living in the house. When you exit the premises to move elsewhere or on to the great beyond, the checks stop and your estate must repay the loan. — Shop for an immediate annuity. Although annuities are complex instruments — they’re essentially investments baked into an insurance policy — paying a lump sum upfront to get a guaranteed monthly payment for life may provide the income stability you need. — Withdraw less money during down years. A common rule of thumb among financial pros is the 4 percent rule, which is based on research in all market conditions that shows a retiree can withdraw that amount annually from a portfolio invested half in stocks and half in bonds without depleting their financial reserves before they die. If you can be flexible and withdraw less, for example, when market returns are lower than expected or you’ve got reserves from previous years’ withdrawals, you can make your money last longer. MV

MN Valley Business • MARCH 2019 • 31

- You are Invited to Join us Greater Mankato Growth, Inc. Annual Meeting

FEATURING KEYNOTE SPEAKER, JONATHAN G. ZIERDT

March 12, 2019 ANNUAL MEETING: 4:30 PM – REGISTRATION OPENS 4:30-6:00 PM - RECEPTION/AWARDS (OPEN TO ALL) DINNER & KEYNOTE SPEAKER: 6:00 PM – TRANSITION TO DINNER 6:00-8:00 PM – DINNER WITH KEYNOTE SPEAKER JONATHAN G. ZIERDT

2018 Volunteers of the Year

Nancy Zallek

Lori Benike

Heather Clark

Gary Koch

A special THANK YOU to our event sponsors! Presenting Sponsors

Dinner Sponsor

Reception Sponsor

RD PO ST • CA

U S A

THANK YOU

H M A R C

2 0 1 9

32 • MARCH 2019 • MN Valley Business

Speaker Sponsor

2019

2019 SPONSOR:

5 - 7 PM

JAN 8

JUL 9

U.S. Bank

Laurels Edge Assisted Living

AUG 6

Pantheon Computers

240 Stadium Road, Mankato

FEB 5

AmericInn Hotel & Conference Center

WHY JOIN 77 Stadium Road, Mankato

MAR 5 APR 2

BankVista

SEPT 3

1501 Adams Street, Mankato

Carlson-Tillisch Eye Clinic

120 North Broad Street, Mankato

OCT 1

EXPOSURE

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GREATER MANKATO GROWTH? 1 Civic Center Plaza, Mankato

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Mayo Clinic Health System Courtyard by Marriott Hotel & Event Center NOV 5 MAY 7 1025 Marsh Street, Mankato 901 Raintree Road, Mankato Build your Brand; Dotson Iron Castings Exclusively Diamonds grow your business. DEC 3 JUN 4 200 West Rock Street, Mankato 1601 Adams Street, Mankato Stand out and get It’s not just st WHO WHO you ou noticed! know, it’s who knows k YOU. Networking IS NOTE: Calendar magnets are available at the check in table at each Business After Hours event Powerful.

NETWORKING TW WORKING ORKING

and they are available at our office at 3 Civic Center Plaza, Suite 100. Also, downloadable BE aIN version is available at greatermankato.com/business-after-hours.

THE KNOW

LEARNING

access cces Business to Member After 2019Gain January Exclusive Content to help grow your business.

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Receive our member only Hours hosted by AmericInn Hotel & Conference Center

MEMBER EXCLUSIVE BENEFITS

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

emails making you the first to know the latest news.

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

Business After Hours gives representatives from Greater Mankato Growth 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.

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

Your investment helps us continue to build the best environment for your business and its employees.

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

THANK YOU FOR YOUR SUPPORT The support we receive from our strong community, makes a big difference in our ability to help our region continue to thrive. Thank you to everyone who attended our open house on Feb. 12 and for your continued support and engagement.

greatermankato.com/join April 2018

STOP BY & VISIT US ANYTIME AT 3 CIVIC CENTER PLAZA, SUITE 100, MANKATO MN Valley Business • MARCH 2019 • 33 greatermankato.com/join

NEW LOCATION

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in Greater Mankato

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EXTENDED HOURS FOR THE VISITOR CENTER The visitor center lobby, located on the south-west corner of Visit Mankato and the Greater Mankato Growth, Inc. offices (Graif Building Lobby) is now offering evening and weekend hours. The new hours are now: Sunday-Thursday from 8 am - 10 pm Friday-Saturday from 8 am to 12 am

34 • MARCH 2019 • MN Valley Business

BUSINESS FOCUS

WHY JOIN

GREATER MANKATO We have refreshed our format and are kicking off the 2019 Business Focus GROWTH? GREATER MANKATO GROWTH MEMBER VIDEO CAMPAIGN

campaign (formerly Business Beat) with a new 60-90 second format EXPOSURE focused on one member each month. These opportunities are available to Build your Brand; NETWORKING TW WORKING ORKING all members nominal fee. First come, first served. grow for yourabusiness. To

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

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

Helping businesses grow YOUR CREDIBILITY andSHAPE expand through COMMUNITY

Raise your reputation by belonging. Research shows that businesses who belong to a chamber of commerce are more successful.

Creating Awareness Talent/Education Innovation Stewardship

Your investment helps us continue to build the best environment for your business and its employees.

A diverse place with synergy rooted in agriculture spanning southern Minnesota & northern Iowa in the United States.

greatermankato.com/join

For more information visit us at greenseam.org • #greenseam April 2018 Facebook.com/greenseam • Twitter.com/greenseamregion • linkedin.com/company/greenseamregion

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Simple meals, cook happy, eat local.

Minnesota State University, Mankato Minnesota University, Mankato College ofState Business College of Business

meals, cook happy, local. Community members are invited to meet alumnus, Frank Jackman, Co-FounderSimple of Local Crate at our annual Richard eat Schmitz Food Community members are invited to meet alumnus, Frank Jackman, Co-Founder of Local Crate at our annual Richard Schmitz Food Entrepreneurship Series. Frank will present in a TedTalk Style on how his company is creating a food revolution by providing consumEntrepreneurship Series. Frank will present in a TedTalk Style on how his company is creating a food revolution by providing consumers with local, fresh, high quality ingredients to help you eat healthier, less processed foods. Following is an excerpt from the Midwest ers with local, highFrank quality ingredients to help youMatters eat healthier, less processed foods. Following is an excerpt from the Midwest Start-ups blog,fresh, in which shares “Why the Where in Food.” Start-ups blog, in which Frank shares “Why the Where Matters in Food.” “One of the most shocking statistics in Big Food is that the USDA reports only 17% of your food dollar is spent on the cost of “One of the17%!!!! most shocking in in BigAmerica Food isand thatisthe USDA reports 17%that of your spent on the cost to of get ingredients. That is a statistics record low driven (literally) byonly the fact food food has todollar travelison average 1,500+ ingredients. 17%!!!! That is a record low in America and is driven (literally) by the fact that food has to travel on average 1,500+ get from farm-to-store. It is centrally-sourced, mass-produced and heavily processed to artificially extend shelf-life, driving up the needtofor from farm-to-store. It is centrally-sourced, mass-produced and heavily processed to artificially extend shelf-life, driving up the need for multiple touch-points (intermediaries), transportation, packaging, and waste. multiple touch-points (intermediaries), transportation, packaging, and waste. On the flip side, Local Crate’s regional food systems curate convenient, fresh, local ingredients for retailers and consumers. Not only do On flipwhere side, Local Crate’s regional food systems curate convenient, fresh, local ingredients for retailers and consumers. Not only do youthe know your food is from, by removing distance traveled, we also eliminate transportation, intermediaries, and packaging. you know where food is growers from, byand removing traveled, also eliminate andfound packaging. Which means weyour can pay our makersdistance fair wages on the we good stuff (food!)transportation, at a comparableintermediaries, cost. We’ve also our Which payfor ourprocessing, growers and makers faira wages the good stuffless (food!) at and a comparable We’ve found our systemsmeans reducewethecan need which drives higher on nutrient content, waste, more tastecost. vs. what thealso centralized food systems reduce system can yield.the need for processing, which drives a higher nutrient content, less waste, and more taste vs. what the centralized food system can yield. It’s no wonder that the $20 Billion local food market is outpacing the country’s total food and beverage

growth. Food isthat fresher andBillion healthier andfood it just tastesisbetter. Also not surprisingtotal that boosting It’s no wonder the $20 local market outpacing the country’s food and local beverage economyFood feelsisgood andand leads to greatand things fortastes communities. growth. fresher healthier it just better. Also not surprising that boosting local economy feels good and leads to great things for communities. So, if you are one of those people who resolved to eat healthier in 2019, may we propose that you also double down by eating local. And if you to alsoeatresolved to in exercise more,wealmost anyone So, if you are on onetaste of those people who resolved healthier 2019, may propose that can you also access an incredible spread of Local walking to your neighborhood store ascan double down on taste by eating local.Food And by if you alsoover resolved to exercise more, grocery almost anyone retailersanare waking up to theoffact thatFood local by is not only over what to their customers want, it’s a more efficient access incredible spread Local walking your neighborhood grocery store as way to do retailers arebusiness. waking up to the fact that local is not only what their customers want, it’s a more efficient Monday, March 25 3:30 pm to 5:00 pm25 Monday, March way to do business. Bottom line, local food is a great way to support your best life and the lives of those around you. What’s 3:30 pm to 5:00 pm Minnesota State University, Mankato your favorite way to eat is local?” Written Frank your Jackman Bottom line, local food a great way toby: support best life and the lives of those around you. What’sOstrander Auditorium Minnesota State University, Mankato your favorite way to eat local?” Written by: Frank Jackman Centennial Union OstranderStudent Auditorium About the Author m Centennial Student Union Frank Jackman is the Co-Founder and ChiefAbout Executive Officer of Local Crate, a rapidly growing food Free the Author event and free mparking company on a mission to become the first locally-driven food platform on a national scale. Inspired to Frank Jackman is the Co-Founder and Chief Executive Officer of Local Crate, a rapidly growing food ToFree register: cob.mnsu.edu/events event and free parking deliver theonfreshest, most possible,food Frank’s visionon is to connect scale. homeInspired cooks with call 507 389 5424 company a mission to flavor-filled become the ingredients first locally-driven platform a national to orTo register: cob.mnsu.edu/events the bestthe chefs, growers, makers in ingredients each growing region. Frank’s vision is to connect home cooks with deliver freshest, mostand flavor-filled possible,

the best chefs, growers, and makers in each growing region.

or call 507 389 5424

MN Valley Business • MARCH 2019 • 37

LESS PAIN. INCREASED MOBILITY.

Whether you’re facing hip pain, knee issues or a decades-old sports injury, our orthopedics and sports medicine experts partner with you to get you back to active living.

Mayo Clinic Health System in Mankato Call 507-933-0091 to schedule an appointment. mayoclinichealthsystem.org

MN Valley Business • MARCH 2019 • 38