35C February / March 2010 by I-35 Target Media

TT Motorcycles has new home, same mission I Owatonna coach’s heart belongs to Special Olympics

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FEBRUARY/MARCH 2010

Commerce along the I-35 Corridor

Vision quest When Dr. Michael Richie decided to start his own practice, he had a solid business plan and a lot of support.

Success stories: Federal stimulus dollars are being used to improve the region.

35C Business Magazine • P.O. Box 537 • Northfield, MN 55057

Business of death: Area funeral homes remain steady in down economy.

We do: Business Banking

“” First National’s remote deposit gives us a level of accessibility you wouldn’t expect from your hometown bank.

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35Contents 6

Region is stimulus winner Snapshots of regional projects show many federal stimulus package success stories.

The business of ‘death’ Despite the downturn in the economy, funeral homes in the region are staying the course.

Cover story Michael Richie’s eye for business has led to the expansion of Faribault’s Richie Eye Clinic.

Gently used Harleys

A special coach

TT Motorcycles’ reach, reputation go farther than its new Blooming Prairie location.

35Caricature: Coaching Special Olympics athletes enables Tim Schiltz to unwind, give back.

Departments 4 5 10 11 16 17 23 28 29

35Commentary 35Confab 35Construction 35Catalyst 35Culinary 35Charitable 35Chamber 35Commendation 35Close-up

35C photo by Thom Caya

Cover Photo

About Us

Dr. Michael Richie was at a crossroads in his life in 2001. He opened the Eye Clinic of Faribault in 2001and has since found much success in his practice.

Volume 2, Issue 4 Copyright © 35C 2010 Published February/March 2010 by: I-35 Target Media, P.O. Box 537, Northfield, MN 55057 / 507-645-1136 Send releases and story ideas to: Jerry Smith at 35C Business Magazine, jsmith@I35targetmedia.com

(Photo by Thom Caya)

Publisher: Sam Gett Sales Director: Julie Frazier Associate Editor: Jerry Smith Graphic Designer: Ashley Ptacek Contributing writers: Azna A. Amira, Reginaldo Haslett-Marroquin and Amy Roemhildt

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35Commentary Rural Enterprise Center supports aspiring Latinos “The farming is simple. But the work is hard.”

Reginaldo HaslettMarroquin programs, resources, systems and the support infrastructure needed to maximize the success potential of low-income rural entrepreneurs. In southeastern Minnesota and the Northfield Area where we’re based, our strategy targets Latino families, a rapidly growing population segment faced with higher rates of diet-related disease and significant economic challenges. In fact, more than 21 percent of Minnesota Latinos live below the poverty line, compared to just over 9 percent for all Minnesotans. From a business perspective, that should cause us concern. But many Latino immigrants also come to our area with important assets: a rural background and agricultural

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his is one of the quotes that the Center for Rural Entrepreneurship used in a case study they just published about our work at the Rural Enterprise Center (available at ruralec.com). I’m not sure who said it, but it could just as easily have been me. Our organization’s approach to training and supporting lowincome aspiring Latino farmers (or ‘agripreneurs’) isn’t rocket science. But it is a very different way of approaching the cycle of poverty faced by the newest members of our communities, the food we eat, and the desire for vibrant communities that we all share. That’s a lot of pieces to juggle. For potential supporters and partners, our unique approach to enterprise development can take some explaining and even some convincing – which can be hard, though not impossible. Our mission is to organize

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experience, and a statistically significant bent toward entrepreneurship (twice that of other immigrants). That, and a study published by The Partnership for Regional Competitiveness — Southern Minnesota citing the potential for smallscale whole and natural food production, are the reasons for our program focus on a new system of small-scale sustainable agriculture. Our program’s early progress is encouraging and drawing regional and national attention. I’d like to thank all of the people who supported us in 2009, helping us find equipment, having confidence in our capacity to put your land, labor and business expertise to good use, giving us feedback, getting the word out, and giving immigrant families the opportunity to succeed. We’ll continue to need your support and partnership in 2010, because we have no intention of slowing down our efforts. 2010 strategy for growth At the same time as we’re formalizing our field and classroom small-farm training process and engaging more Latino families in the program, we’ll focus on several key business challenges and opportunities — all symbiotically related. • Increasing poultry production: Our system is ready to support many more farming families in raising free-range meat broilers. Establishing a long-term plan for economical processing, an issue nationally for poultry producers, is a top priority to help us move forward. • Adding egg production: A new year-round production unit for heritage breeds begun in 2009 opens up the

opportunity for small-scale egg production providing income for another family. And we’re beginning a breeding program to introduce new genetics to our system. • Making compost happen: We’re taking a close look at the chicken manure – compost – vegetable growing connection. • Ramping up vegetable production: In 2009, two Latino farmers grew vegetables in significant amounts, selling them regionally through grocery stores and restaurants. Looking at distribution in a more serious manner in 2010 will help expand this business potential. • Growing more black turtle beans: Having adapted a black turtle bean variety to our growing environment means that we can test and deploy a new farming enterprise in 2010 and beyond. “Poverty drains resources from families. Agripreneurship helps them build resources.” I also like this case study quote because it gets to the heart of what we do and why we do it. I think it also speaks to why so many business people, established farmers, academics and other community members are drawn to the training program. By supporting immigrant families in their journey to become successful agripreneurs, we end up supporting the economic future of our whole region. Is it hard work? Sometimes. Is it worth it? Definitely. — Reginaldo (Regi) HaslettMarroquin is Director of the Rural Enterprise Center in Northfield, a program of Main Street Project. Learn more at RuralEC.com and MainStreetProject.org.

35Confab

A chat with former District 26 state senator Dick Day

5 Takeaways from Dick Day

1. Studies have shown that passing Racinos will bring $250 million in new state revenue every budget cycle.

2. Racinos will bring jobs.

Racinos around the country employ 30,000 people.

3. Racinos will allow exist-

ing race tracks to grow their purses, spurring new investments in breeding throughout the state, which will improve the rural economy.

4. Twelve states have already

ick Day believes in the benefits of bringing racinos to Minnesota horse tracks so passionately, he was willing to leave his long-held seat in the Minnesota Senate recently to lobby for the cause. The move, which Day believes could raise $125 million a year for the state, is the final push for the six-term Republican from Owatonna to bring slots to the state’s two racetracks. “It’s a win-win proposition for the people of this state,” Day said. “When I meet with people and tell them that the portion of their gambling that is profit stays with the state of Minnesota, most say it’s a no brainer. The only people I find who are totally opposed to the idea are those who are anti-gambling and I respect that. “The point is, all of these senior citizen buses from cities in Southern Minnesota and along I-35 are already going to casinos. All this would do would be to add another two to the 18 that are already in place. And all it would do would be to add some slots to them.” In a 35C interview, Day talks about his tenure in the Minnesota Senate and the benefits of racino legislation. Q: You’ve devoted six terms to the Senate. What will you miss most about that? A: Like most people, what I’ll miss most are the people. I really respected and got along with Democrats, Republicans and Independents over the 19 years I was in the Minnesota Senate. I don’t miss four or five months a year of pretty partisanship wrangling. When I first got up there (St. Paul) in 1990, we all actually got along quite a bit better. The last five or six or seven years have gotten to be a lot more partisan and a little more bitter.

implemented Racinos that are contributing billions of dollars to those states’ economies.

Q: What is it about the Racino legislation that made you want to give up life in the Senate?

5. Revenue from Racinos

A: Everything in life is timing. I just felt that if we can’t get it done in 2010, the

could help fund education, roads, health care, stadiums, or could simply lower the state’s deficit.

chances of it getting done are very slim. The state needs money because we have about a $1.2 billion deficit now and we’re going to have about a $4.5 billion deficit in the next couple of years. We need jobs and unemployment is high. So this would give us a lot of jobs and about $125 million a year into the state coffers. Q: What will bringing racinos to Minnesota racetracks do specifically for Southern Minnesota? A: A lot of the people in Southern Minnesota right now are going into Iowa and helping Iowa with education and dollars that go back into that state’s highways. What our plan will do, whether it is situated at Canterbury Park (Shakopee) or Running Aces (north of the Twin Cities), where the two racinos would be, would bring revenue to the state. So when people in Southern Minnesota go gamble, they will find that the dollars, at least some of them, will stay within Southern Minnesota and they will reap the benefits of highways, recreation centers and education costs. Q: Do you think racino legislation is the best way to fund a new stadium for the Vikings? A: I don’t know if it’s the best, but I can tell you, it may be the only way. You really have to ask the question whether the people should fund a new football stadium in the first place. We did it with baseball, but Hennepin County led the charge on that because they actually implemented a tax to help pay for that. I don’t think you are going to find legislators in greater Minnesota areas of Southern Minnesota who will vote to take taxpayer money to build a stadium. So, what does that mean? Well, the Vikings are going to have to find somebody to team up with in a certain area who says we’re willing to tax a certain group of people to build a stadium. This way (racinos), we can do that and it would be no taxes and be all voluntary dollars people would spend at the two racinos. r

If we can’t get it done in 2010, the chances of getting it done are very slim. FEBRUARY/MARCH 2010 35C

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Stimulus Success

Regional snapshots show American Recovery and Reinvestment Act dollars at work By JERRY SMITH Photos by THOM CAYA

oy Srp thinks the Waseca wastewater treatment facility is a federal stimulus package success story. While $6 million of the $16.1 million project comes from the American Recovery and Reinvestment Act, the Waseca mayor says it’s also important to note that the project

created 31 jobs, lowered utility bills and improved the city’s infrastructure, a trifecta of effects President Barack Obama envisioned when he signed the $787 billion legislation a year ago. “There were 30 plus jobs created from this, and more importantly, two of those jobs were actually local fellows who were out of work here in Waseca and would have been collecting unemployment and

probably talking to Waseca County for some assistance,” Srp said. Along the I-35 corridor, and more specifically in the six-county region 35C serves (Goodhue, Le Sueur, Nicollet, Steele, Rice and Waseca), more than $106 million of the $3.4 billion awarded to 87 Minnesota counties ($4.7 billion total to state), has been pumped into hundreds of projects, according to ProPublica, an

“It’s been a win-win for us out here in Waseca.” — Roy Srp, Waseca mayor

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independent investigative reporting newsroom. This, the Obama administration contends, has in turn created and saved jobs and infused money into the regional and national economies. 35C takes a look at some of those projects and what they mean to their respective counties and to the region. We begin with snapshots from Waseca County. >>>

Assistant Professor of Biology and Environmental Studies John Schade works with visiting environmental studies professor Stephanie Schmidt in the Chemical and Environmental Analysis lab, the new home of the spectrometer St. Olaf College purchased with federal stimulus grant money.

Waseca County Stimulus money: $7,087,666 When Srp became mayor of Waseca in 2004, he was asked what the No. 1 priority would be in his tenure. Without hesitation, Srp said it was Waseca’s wastewater treatment plant, which was in disrepair and reaching capacity. Srp and the city council went to work creating a plan that would remove the sewer problems that plagued the city, but in turn, that meant raising the utility rates. “We increased the water and sewer rates, and then, when word started coming out that there was going to be some stimulus money, I went out to Washington, D.C., and let our lawmakers know what we were looking for in Waseca,” Srp said. “Upon receiving those funds ($6 million), we turned around and were able to put those increases in water and sewer back into the pockets of the taxpayers. With more money in their pockets, more money was spent in the economy and it was very beneficial for us. It’s been a win-win for us out here in Waseca.” The grants include a $505,050 Total Maximum Daily Load grant from the Minnesota Public Facilities Authority; a $2 million Clean Water Revolving Fund American Recovery and Reinvestment Act of 2009 base

An overview

The American Recovery and Reinvestment Act

Submitted by St. Olaf College

St. Olaf Assistant Professor of Biology Kevin Crisp believes leeches are the key to unlocking the mysteries of Parkinson’s disease.

grant; and a $4 million ARRA supplemental grant. The project, which will be done in two stages and is due to be completed in 2011, will improve the hydraulic capacity of the city’s wastewater conveyance system and treatment plant, implement phosphorous removal, expand capacity for community growth, enhance bio-solids treatment and storage and make repairs at the existing facility, Srp said. “We are setting the city up for growth and foresee that happening,” Srp said. “The people of Waseca are to be commended because they were willing to go this alone. To find out that we received this money from the stimulus package was a huge bonus

for us.” • County: The city of Waseca wasn’t the only entity that received large amounts of funding from the federal stimulus program. Waseca County was fortunate to receive funding for two muchneeded bridge construction projects. Two bridges, both on County Road 3, have been replaced with the help of the American Recovery and Reinvestment Act, to the tune of more than $1 million. County Engineer Nathan Richman said in a published report that the funding covered 100 percent of the eligible construction materials, but did not include the demolition of the old bridges. Rice County Stimulus money: $29,981,248 While nearly 16 percent ($4.7 million) of the federal stimulus money awarded to Rice County went for work on highway projects, two colleges in Northfield — St. Olaf College and Carleton College — were able to secure a large chunk of the stimulus pie for research and financial aid for students. While only one of the reported 14,315 jobs created to date (according to Recovery. gov) in the state of Minnesota was created at St. Olaf with stimulus money, the impact of receiving grant money >>>

he Recovery Act was passed by Congress and signed into law by President Obama on Feb. 17, 2009. The purpose of the $787 billion Recovery package is to jumpstart the economy to create and save jobs. Eye on the stimulus $172 billion spent $157 billion in process $251 billion left to spend $93 billion in tax cuts issued $119 in tax cuts remaining *As of Jan. 25 Minnesota Total recovery funding $4,755,777,465 Direct to county $3,377,169,139 Statewide projects $1,378.608,335 Jobs created/saved U.S. 640,329 Minnesota 14,315 (15th highest) U.S. unemployment rate 10 percent State unemployment rate 7.3 percent (*As of Oct. 30, 2009) — Source: Recovery.gov

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35C photo by Jerry Smith

Gary Diedeken, the owner of the KFC being built in Northfield and the KFC in Faribault, received an $818,000 loan through ARRA. He said the stimulus program saved him application and other fees. The Northfield KFC will be open Valentine’s Day, Diedeken said.

>>> for major research projects is immeasurable, according to Assistant Professor of Biology and Environmental Studies John Schade, a recipient of one of three National Science Foundation grants worth $576,780. Schade said the grant money was used to purchase a spectrometer, which combined with other scientific equipment owned by the college, puts St. Olaf at the forefront of environmental analysis in the coming years. “This will be an important tool for measuring environmental science questions,” Schade said. “St. Olaf is the only liberal arts college in the Midwest that has this instrument, so we have an opportunity from an educational standpoint to be a real leader. It’s a really good investment into education and into St. Olaf College.” The job created by the stimulus money was that of Stephanie Schmidt, who will in large part be in charge of training faculty and students on the new spectrometer. “It kept Stephanie here and that job will be a multiplier,” Schade said. “All these students are going to gain valuable scientific experience. This investment into developing human resources using cutting edge technology will pay off for a very long time. “And I would bet having this technology will attract new environmental studies students for a long time to come.” According to ProPublica, St. Olaf College received three other National Science Foundation grants, the biggest worth $680,000 for a major study of sub-glacial environments at two coastal sites in West Antarctica. In all, the four NSF grants awarded St. Olaf College total more than $1.3 million. “That money wouldn’t have come into the state without these grants,” Schade said. “NSF likes to invest into young sci-

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entists. In addition to the NSF grants, St. Olaf received $468,486 for Pell Grants. Carleton College was awarded $540,511 for Pell Grants, according to ProPublica. • Cities: The city of Faribault also was a big winner when stimulus money was handed out. It received $800,000 from the Minnesota Housing Finance Agency, that according to Faribault Community Development Director Peter Waldock, will be used to purchase up to eight homes, possibly to rent, and possibly for home buyer assistance for those in low- to moderate-income brackets. “It’s very good for all of Rice County,” said Waldock, who applied jointly with Northfield and Lonsdale. “We would have liked to have seen dollars go to Northfield and Lonsdale, but I think the city of Faribault fit the criteria better.” • Business loans: In Rice County, small business loans accounted for nearly $4 million of the funds received through the stimulus package.

35C photo by Thom Caya

According to ProPublica, an independent investigative reporting newsroom, the owners of Jimmy John’s Gourmet Sandwich Shop in Faribault received a $112,500 loan through ARRA.

Nicollet County Stimulus money: $22,995,171 City Administrator Todd Prafke commended the residents of St. Peter for enduring five months of downtown construction that saw the main thoroughfare through the heart of the city (Hwy. 169/Minnesota Ave.) undergo a complete facelift. But he said it could have been a lot worse. While St. Peter was awarded more than $17 million of federal stimulus money to completely revamp it’s downtown streets and infrastructure, Prafke said that had the city not received the federal funding, the project would have cost possibly $5 million more over time and more than likely would have been drawn out over five years, with downtown construction taking place

35C photo by Ed Lee (St. Peter Herald)

The city of St. Peter was awarded grants totaling $17 million to replace existing utilities and re-pave Hwy. 169/ Minnesota Ave.

for three to four months each spring and summer. “The original plan was to do it in two or three stages,” Prafke said of the project that has been in the works since 2005. “Had we done this using alternative methods, we would have had a lot more money involved. Because of the federal stimulus money, the project was moved up and condensed. It’s nice to have it finished. We tried to make it as painless as possible.” • Higher Education: According to ProPublica, Gustavus Adolphus College received a National Science Foundation grant worth $246,820. The money will be used to acquire instruments for water quality and geochemistry research in Minnesota. In the grant proposal, staff members wrote that the studies will focus on the state’s aquatic resources and the instrument will support students and researchers from several of the college’s departments. Gustavus also received more than $600,000 for Pell Grants and funding for the college’s Federal Work Study program.

35C photo by Thom Caya

According to ProPublica, Trinity Daycare and Pre-School, LLC, received $238,000 through the ARRA.

Steele County Stimulus money: $22,216,575 Much of the federal stimulus package money awarded in Steele County went for small business loans. According >>>

35C photo by Thom Caya

Submitted photo

According to ProPublica, Traditions II of Owatonna received a $1,497,090 loan for expansion through the ARRA.

According to ProPublica, Southpark Lanes, LLC, in Owatonna received a $1,494,090 loan through the ARRA.

According to ProPublica, the County of Goodhue received a $173,290 grantthrough the ARRA for law enforcement.

>>> to ProPublica, more than $4.3 million dollars was awarded, with the five largest loans belonging to: 1. Traditions of Minnesota II, LLC ($1,497,000) 2. Southpark Lanes, LLC ($1,494,090) 3. Schmity Holsteins, LLC (two loans for $454,500) 4. Blooming Prairie Veterinary Clinic (337,500) 5. Christian Brothers Cabinets, Inc. ($153,000) â&#x20AC;˘ Education: The American Recovery and Reinvestment Act meant the Owatonna School District could save six teaching positions, according to Superintendent Tom Tapper. He said the district received dollars from the stimulus package in a variety of ways. â&#x20AC;&#x153;The state of Minnesota received some dollars that were passed on to local schools,â&#x20AC;? Tapper said. â&#x20AC;&#x153;It has helped ease the cuts weâ&#x20AC;&#x2122;ve had to endure.â&#x20AC;? The Owatonna School district has already received one of the $585,000 grants

from the stimulus package, with the other payment embargoed until fiscal year 2011. Tapper said the money has and will go toward special education services, but he said that doesnâ&#x20AC;&#x2122;t mean students and staff under special education will be the only ones benefiting from the funding. â&#x20AC;&#x153;There needed to be an existing conduit,â&#x20AC;? Tapper said. â&#x20AC;&#x153;We are able to use those funds to offset existing special education funding.â&#x20AC;? The bottom line is that the bottom line will be affected in a positive way. â&#x20AC;&#x153;We recognize that this is a two-year additional source of revenue,â&#x20AC;? Tapper said. â&#x20AC;&#x153;It is a positive infusion of revenue that allows us to catch up some and prepare for what lies ahead.â&#x20AC;?

enforcement. According to ProPublica, the County of Goodhue will use a $173,290 Department of Justice grant to hire a full-time sworn law enforcement officer and purchase an unmarked squad car. In the grant proposal, county officials wrote that the county was â&#x20AC;&#x153;currently experiencing a substantial increase in narcoticrelated crime, with investigations nearly doubling within a five-year period.â&#x20AC;? The grant-funded officer will serve as a narcotics investigator.

Goodhue County Stimulus money: $17,922,360 While more than $2.8 million was awarded to Goodhue transportation projects, another winner in the stimulus package sweepstakes was Goodhue County law

Le Sueur County Stimulus money: $6,326,265 The majority of the stimulus money awarded in Le Sueur County went to transportation projects or small business loans. r â&#x20AC;&#x201D; Jerry Smith is associate editor of 35C business magazine. He can be reached at 507-645-1136 or by email at jsmith@I35targetmedia.com.

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FEBRUARY/MARCH 2010 35C

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35Construction Projects contributing to the growth of the I-35 corridor

TOP: The $14.4 million Armed Services Reserve Center near the airport in Faribault was recently completed. Now, the state of Minnesota and the city of Faribault are working out a usage agreement for the 10,000 sqaure-foot gymnasium at the center.

Faribault Foods has big plans for Woolen Mill Store location Faribault Foods, a company that employs about 300 people locally, has leased the old Faribault Woolen Mill Store (left) and will turn the 14,400square foot building into more office space, said Gary Kindseth, vice president and treasurer of the company. KM Building Company (Vice President James A. Johnson pictured above) has been contracted to renovate the building, which will house 40 to 60 administrative staff. The $1.3 million project is due to be completed in mid-April. — 35C photos by Jerry Smith

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35Catalyst

Making things happen along the I-35 corridor

Kaczmarek: Lyn Salaba is backbone of Northfield Area Family YMCA

Deb Johnson, the long-time head of the Paradise Center for the Arts’ Gallery Commitee, helps set up an exhibit.

35C photo by Jerry Smith

Oachs: Deb Johnson is cornerstone of Paradise gallery’s art exhibits

eb Johnson’s name has been synonymous with the Gallery Committee at the Paradise Center for the Arts in Faribault for more than a decade. Without her, former Paradise director Tami Oachs said, the Gallery Committee wouldn’t be one of the strongest and long-lasting committees at the Paradise. “Deb has been the cornerstone of the gallery exhibits at the Paradise for over a decade,” said Oachs, who nominated Johnson to be a 35Catalyst. “Her tireless efforts to recruit new artists, manage all aspects of gallery shows and coordinate everything from the food at the receptions to getting the gallery painted have been crucial to the building of the gallery program.” In her nomination letter, Oachs said that Johnson never gives up, never backs away from a challenge and always has her heart fully invested in whatever she sets her mind to. “And apart from her drive and intellect, her quick smile and sense of humor have made the gallery committee one of the most loyal committees at the Paradise,” Oachs said. While Johnson is stepping down as the chair of the Gallery Committee, she believes the organization will not skip a beat as Julie Fakler takes over. She’ll do a fantastic job,” Johnson said. “Nobody by themself is a catalyst. Without other individuals and artists, I wouldn’t have been nominated.” Johnson will continue to help hang exhibits, something she’s been doing for 20 years in Faribault. “Hanging exhibits is my favorite part,” said Johnson, who is an artist who has herself had exhibits in the gallery. “It’s wonderful seeing people showcase their work.” r — Jerry Smith

yn Salaba is the first face you see when you enter the offices of the Northfield Area Family YMCA. But the bubbly administrative assistant is much more than that, according to Executive Director Virginia Kaczmarek. “We quite literally wouldn’t have as many collaborations or families and kids participating in so many programs without her,” Kaczmarek said. “She gives me the ability to network, hire staff, create programs and put into place collaborations.” In her three years at the YMCA, Salaba says her role has been to do “anything Virginia doesn’t.” “I do the bookkeeping, payroll and order supplies,” Salaba said. “I keep the place rolling.” Salaba is quick to return the praise to Kaczmarek, who she says inspires her to do good work. “Virginia is a very wonderful boss,” Salaba said. “She has such enthusiasm, it’s catching. Virginia sets things up and I follow through with them. We work very well together.” Lee Runzheimer, who is on the board of directors at the YMCA, nominated Salaba as a 35Catalyst, saying she is “the person behind the scenes who handles all membership, registration, scheduling, promotions, equipment purchases/ record keeping, volunteer recruiting and administration” for the small start-up operation. Salaba would agree, saying she prefers to stay behind the scenes. “I am the person behind the scenes and I love that role,” Salaba said. “I don’t really think I do anything out of the ordinary. This is just a wonderful organization to work for.” r — Jerry Smith Lyn Salaba recently was busy mailing out W-4 forms to the more than 50 employees at the Northfield Area Family YMCA. She takes on a behindthe-scenes role with the YMCA. 35C photo by Jerry Smith

If you would like to nominate a 35Catalyst from your company, please visit 35Cbusiness.com and click on the 35Catalyst icon, or e-mail Jerry Smith at jsmith@I35targetmedia.com. FEBRUARY/MARCH 2010 35C

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Death The business of

Regional funeral homes weathering the economic storm By AZNA A. AMIRA

glance at the national headlines and television stories would lead you to believe that the death business is ready for lifesupport. “Business is dead,” says a funeral director on an industry blog. Bodies are literally stacking up in cities like Detroit and Los Angeles because families

12 FEBRUARY/MARCH 2010 35C

can’t afford to bury their dead and their counties are too cashstrapped to help. Coffin manufacturers are even inventing models with price tags to reflect the recession, and mourners from coast to coast are downsizing on tombstones. Not so along the I-35 corridor. While the recession is squeezing the business elsewhere in the nation, funeral di-

35Cbusiness.com

rectors in small-town, southern Minnesota say its effects here barely amount to a ripple. Part of the reason is a smalltown ethos surrounding sendoffs for close family, friends and neighbors, one funeral director said. “The smaller the town, the bigger the funeral,” said Andy Langehough, owner of Benson & Langehough Funeral Home in Northfield. “In smaller

towns, you know more people and more people know you, so a funeral is a bigger deal. People think ‘it’s the last thing I can do for mother or dad.’” In fact, about the only difference local funeral parlor directors detect is a slight curbing of the tendency to overspend out of sentimentality. The National Funeral Directors Association reports that nationwide, consumers are attempting to >>>

>>> economize by opting for more cremations, ordering cheaper caskets or tombstones, or cutting visitations short in the last year. Yet all that Langehough can say about 2009 is that people were more frugal. “No one has overspent,” he said. “That used to happen, but this year, people have kept within their means.” The NFDA also reports increases in advance funeral pre-planning, green funerals, and an uptick in more personalized services, all in an attempt to defray the high cost of dying. The funeral service industry generates over $11 billion in revenue each year, creating a significant impact on the nation’s cities, towns and villages. But most of these cost-cutting trends are only gently hinted at in our corner of Minnesota. And this, some local operators say, reflects the changing tastes of the aging babyboomer cohort more than financial motive. In some ways, local services defy national trends. Cremation on the rise Cremation has become a popular trend nationally, as cremations are cheaper. While the median cost of a funeral in our region is about $7,000, cremations can cost as little as $2,000. The NFDA reports that regionally in 2007, 42 percent of people who died were cremated — a number

that has doubled since the mid1990s and 15 percentage points ahead of the 35 percent national average. But this figure is misleading, says Langehough. “Cremations have been increasing by about 1 perecent to 2 year a year for years,” he said. Tim Dennis, owner of two funeral homes in Waseca and in Waterville, agrees that even though funeral costs in the area tend to be a little higher than the national average, there have been only a few more requests for cremations or other cost-cutting measures. “I see a slight change in some choices,” Dennis said, “but no one is specifically saying it’s because of the recession.” Dennis has noticed a minimal increase in the number of cremations, “but it’s very slight.” In fact, in the past year, the number of cremations at one of his facilities has gone up, while it has decreased at the other. Area funeral home directors, see little change in people’s preferences in the basic, non-declinable services such as body preparation and transportation, facilities rental for viewings and memorial services, grave spaces and burial services. But some are spending less on nonessential items. “People are making different merchandising decisions, weighing their resources,” said Cory Michael, owner of Michaelson Funeral Homes in Owatonna, Kenyon >>>

35C photo by Thom Caya

Tim Dennis says there is more to a funeral director’s job than meets the eye. From picking up the body at the hospital to embalming to helping with the arrangements, Dennis is involved in all facets.

The cost of dying

hile the effect of the recession on the funeral services industry elsewhere has been grave, funeral homes in southeastern Minnesota are thus far faring well, despite the fact that some services here are slightly more costly than national averages. The following is a compilation of typical costs for a regular adult funeral, according to a survey published by the National Funeral Directors Association. Average costs for the I-35 corridor area are in parentheses, when different from the national average. Funeral Services Basic service fees Embalming Care and preparation Dressing/casketing Facilities rental Initial transfer of body Hearse Utility vehicle Basic memorial package Refrigeration

$1500 (2500) 700 200 (300) 150 (200) 425 (450) 250 250 150 150 350 $ 4,125 (5,325)

Cemetery costs Grave space Burial services Marker installation Tent rental

$1,000 900 200 50 $2,150

Merchandise Casket Burial vault Granite marker

$2,100 (1,800 -4,000) 1,435 535 (600-4,000) $4,070

Other Items Honoraria/fees Musician/vocalist Floral arrangements Death certificate Obituary

$250 150 250 30 75 (200 – 500) $755

FEBRUARY/MARCH 2010 35C

35Cbusiness.com

>>> and West Concord. “Some people are ordering less expensive caskets or memorial services. You can economize on a casket or a burial vault — other costs are more fixed.”

family-run concerns friendly with area banks willing to help. Most Minnesota counties also have burial funds for indigent families.

Funeral planning in advance Traditionally, undertakers have rarely needed to advertise, yet in many larger cities, ads are appearing encouraging people to pre-plan their funerals. Local funeral directors feel they’ve been relatively recession-proofed by the tendency people here have to do that, anyway. And since the recession hit, “people are doing more pre-arranging,” said Waseca’s Tim Dennis. There’s a flurry of pre-planning, too, in Northfield — a popular retirement destination — among people in their late 60s and 70s, Langehough said. “People are nervous that the family won’t have the money when the time comes,” he said. Pre-planning does not always

or the outdo

include pre-paying for funerals; however, many funeral directors are willing to arrange pre-payment plans over time. And while older people tend to both pre-plan and pre-pay, the unexpected deaths of younger individuals can create chaos. “The financial difficulties we see come after-the-fact, trying

uthern life of So

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35C photo by Thom Caya

Cory Michael, the owner of Michaelson Funeral Homes in Owatonna, Kenyon and West Concord, says that while people might be trying to save money, his bottom line hasn’t been affected too badly.

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to find some method of payment for young, unexpected deaths,” said Michael. “We’ll do the funeral and then work with them afterward to help them finance it.” While the Truth-in-Lending Law won’t allow funeral homes to draw up such finance plans directly, he said, most are

Personalization more popular What is noticeable in our area is “a tremendous trend toward personalization,” of all aspects of services, Langehough said. “It used to be fairly standard: visitation the night before, then the funeral, with burial right after,” Langehough said. “Now, every family wants to pick and choose what portions of the process they like best and personalize that.” And Langehough says that it’s simply up to personal taste. “They’ll add bag pipers at the visitation,” he said. “One family had the St. Olaf choir sing at the services. In one case, the funeral procession of a local farmer was led by his son, who was riding on one of his tractors. >>>

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Andy Langehough of Benson & Langehough Funeral Home in Northfield, says that funerals have become more personalized. According to Langehough, bagpipe players are a more common sight at funerals than in the past.

>>> “We always saw this sort of individuality, but we’re seeing it more frequently lately. It’s a function of our society becoming more individualistic, versus just going along with the crowd or tradition.” Baby-boomers appear to be on the vanguard of those seeking ways to make funerals more meaningful; some turn to technology, requesting videos and DVDs of memorials that have begun to focus more on the personal interests and passions of the deceased. An example is trendy tombstones. While in times past, tombstones offered only the name and dates of the deceased, plus a carving of some religious icon. Many of today’s grave markers showcase everything from the deceased’s hobbies to their favorite cartoon character. “There are stones that include pictures of motorcycles, tractors, golf clubs, pets, vacation homes, hunting and fishing symbols and other etched pictures that convey a bit about the person’s interests,” said Bill McGrath, a caretaker at Northfield’s Oak Lawn Cemetery. He notes that when religious symbolism is used, it is more likely to be a fish, or other more contemporary emblems of Christianity. Another way in which individuality manifests is green funerals. While this is a broad term, what it generally means is that there is no embalming, biodegradable casket and unlined vaults are used, and the family assumes tasks normally assumed by the funeral home, such as providing

their own caskets and transportation. Area directors say they have occasional inquiries, but few requests for such services. There is only one cemetery in the region — Sciota Township Cemetery in Randolph — that permits such burials). Some say that “going green” can often be more, rather than less expensive — at least to the environment. “People do ask about green funerals, but I give them the pros and cons,” Michael said. “With a biodegradable casket, all the chemicals and antibiotics go right into the ground. Often they decide they don’t want to be responsible for putting all of that into our head water.” Langehough says the amount of planning necessary at a time of crisis deters many. For example, as state law requires burial within 72 hours, for what used to be called “immediate burials,” in the event of a sudden death, handling the deluge of details according to law can be overwhelming. About the only funeral practice in the region the recession has hit hard is the shipping of bodies to other states when someone dies here. “We used to transport quite regularly,” Langehough said. “But now they cremate, and take the ashes back home to bury. We don’t fly bodies around the way we used to.” r — Azna A. Amira is a freelance journalist from Northfield who contributes to 35C and Girlfriends magazines.

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35Culinary Top restaurants serving the I-35 corridor Patrick’s on Third

125 S. Third St. Saint Peter Patrick’s on Third invites you to take the “Chuck Norris” challenge. On Tuesdays, if you can eat this 2.1pound bacon cheeseburger (left, held by chef Tony Dell) and all of the fixings in under an hour, it’s free. Patrick’s is the home of the World Famous Patty Melt, Best Burger on the Planet, Bucket of Death, Govenaires Drum & Bugle Corps, Drum Corps Museum and a number of other re-

J. Grundy’s Rueb-n-Stein

An area classic sprawling into three historic buildings on Northfield’s main drag, the “Rueb ‘n’ Stein” has a long list of tradional American food and great spirits. With an all new expanded menu, the best burger in town and the famous Rueben sandwich, the Rueb offers something for everyone at a great price. The Rueb also offers a classic bar with drink specials and “Upstairs at the Rueb,” which features live music and dancing separate from the dining area. Specialties: The Rueb’s famous appetizers and build-your-own burgers. Information: Call J Grundy’s Rueb ‘n’ Stein at 507-645-6691 or visit the Website at www.ruebnstein.com.

16 FEBRUARY/MARCH 2010 35C

Costas Chocolates

The Cheese Cave

Costas Candies has been serving the area’s finest chocolates, lunches and baked goods for 90 years. From specialty COSTAS salads to pita chocolates specialties to a complete breakfast menu, Costas is the place to go for great food and delectable desserts. Made from the finest vegetables and ingredients, salads at Costas are mouth-watering good. With offerings like Costas’ Greek Gyro Salad, the BIG Salad and many other healthy choices, you can’t go wrong. Costas uses premium meats, cheeses and fresh-baked breads in its sandwiches. To top things off, Costas offers its renowned cakes, scones, cookies and palette-pleasing chocolates. Information: Call Costas Chocolates at 507-451-9050.

It has been said that cheese has always been a food that both sophisticated and simple humans love. That’s the idea behind the “Cheese Cave,” a unique gourmet destination in Faribault. The Cheese Cave serves awardwinning cheeses from the Faribault Dairy, and also offers cheeses from the great artisanry cheesemakers from around the U.S., along with high-quality, high-end foods that pair perfectly with cheese. Customers will be treated to in-store cooking demonstrations by Executive Chef Jeff La Beau. Reservations: To arrange for an affordable and unique cheese pairing event, sample cheeses, microbrew beer, wine and tea — for groups of up to 24 people — contact Laura at 507-334-3988.

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35Cbusiness.com

ally weird, wacky and wonderful things. If it’s an amazing burger you crave, Patrick’s on Third is the place to go. Patrick’s also offers a variety of menu items from burgers to pasta and Mexican to Italian. Look for new appetizers on the menu as well. If it’s beer you crave, Patrick’s on Third offers 20 craft beers on tap. Enjoy a casual atmosphere where food and drink are king. Patrick’s on Third is open daily from 11 a.m. to 1 a.m. For reservations, call 507-931-9051.

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Angie Thom delivers a pizza to one of her tables during the “Heineken with Heart” promotion at during the week of Jan. 25-29.

Boston’s Gourmet Pizza in Faribault giving back

ravis Tempke believes in giving back. The owner of Boston’s Gourmet Pizza in Faribault has donated $25,000$30,000 to local charities since opening the restaurant in October 2006. Most of those donations have come from “Donation Night” promotions run regularly at the local eatery. Tempke said organizations contact him and he helps

35C photo by Thom Caya

raise money by donating 10 percent of the profits during a specified night during the week to that organization. “I live in town and we’ve decided the community gives to us, so we should give back to the community,” Tempke said. “It’s a winwin for all of us. We open the doors for an evening and

people know a part of what they spend will be going to that charity.” Tempke is excited about the upcoming promotions, including one on Feb. 8, where 10 percent of the profits go to the Juvenile Diabetes Research Foundation. During the week of Feb. 11-14, Boston’s Valentine’s

Day promotion will also benefit JDRF. “We’re excited because each year we’re able to give back with the help of our patrons,” said Tempke, who will donate $1 for each dessert ordered during the promotion and 10 percent of the sales during the week. “This isn’t happening on the corporate level. We feel it’s important to give back, so we run these special promotions here in Faribault.” Tempke says each organization he helps to raise money for is offered the chance to put up a table during the promotion to help bring awareness to the organization and its cause.

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His own vision Dr. Michael Richie finds success by surrounding himself with knowledgeable people

“

I think the biggest thing that keeps us state of the art is the people. — Dr. Michael Richie, owner of Richie Eye Clinic

18 FEBRUARY/MARCH 2010 35C

By JERRY SMITH Photos by THOM CAYA

When Michael Richie made the move from Milwaukee to Faribault in 1991, it was always in the back of his mind to have his own practice. With a new baby, a new house and essentially a new life, Richie thought it best to wait to pursue that dream. “I read an article that said you should never make more than one 35Cbusiness.com

major decision in your life per year and it listed the major decisions: marriage, divorce, buying a new home and moving, and having a child,” Richie said. “So when it came time to relocate here, we moved, which meant we had to buy a new home and my wife was nine months pregnant. It was like I hit her with everything. Because we had all of that change in the family, I elected not to go out on my own at the time.” So Richie bided his time work-

ing in a group setting and eventually joined Allina Clinic in 1995. For five years, Richie worked in the corporate clinic setting, but continued to push his ideas of how to grow business. While the powers that be listened to Richie’s proposals, in the end, they were shot down. The thought of venturing out on his own entered his mind once again. “It wasn’t until I started have some disagreements with corporate Allina in the late 1990s >>>

>>> that I even considered the move,” said Richie, who opened the Eye Clinic of Faribault in 2001. “The frustration mounted, though, to the point that I decided I had to leave. “A lot of the ideas that I had then are things we’ve grown into now. I wanted to grow into a bit more of a retail component that would include my Lasik practice, a surgery center and included some of the ideas we’ve incorporated into skin care, which Allina was not a fan of.” Those ideas have evolved into what today is the Richie Eye Clinic, the name given the business when Dr. Richie and his team moved into the Crossroads Professional Building in 2006. With the move came expansion. With the eye clinic in place, Crossroads Surgery Center was a logical move and part of his overall vision. Crossroads Skin Care grew out of Richie’s eyelid surgery practice and was a way to move the practice into more of a retail area. Finally, The Hearing Center evolved out of Richie’s own personal experience with hearing loss. “The other businesses that we’ve gone into are elective and retail,” Richie said. “They help shore up the bottom line so we can weather the storm with whatever healthcare reform changes that come.” In a 35C interview, Richie talks about the move out on his own, the eye clinic’s genesis, his staff, advancements in eye care and expansion into the state-ofthe-art Crossroads Professional Building. Q: Why did you choose Ophthalmology as your specialty? A: I discovered during medical school that I loved being in the operating room and loved surgery, but also found some things that I wasn’t fond of or good at. For example, I learned that I do not function all that well in the middle of the night, nor did I like the life-threaten-

some disagreement with Allina Corporate on how to grow the practice. Interestingly, the local doctor group agreed with me and liked my ideas, but the executive team at Allina didn’t. As a result, I left Allina in 2001 and became the Eye Clinic of Faribault, changing the name to Richie Eye Clinic when we moved into our new building, Crossroads Professional Building, in September 2006. Q: What makes Richie Eye Clinic state of the art? ABOVE: The Richie Eye Clinic “is the foundation upon which we build everything else,” says Dr. Michael Richie. RIGHT: The Crossroads Surgery Center “is a logical extension of the clinic.”

ing situations of the emergency room. With that in mind, I narrowed my choices to surgical fields that do not have much emergency call, are more clinic based, and yet still have significant time in the OR. At that point, ophthalmology was the obvious choice because I just loved the work. I love working with seniors, with vision, and I really like that it is a field that provides almost instant feedback. Q: You have been practicing in Faribault since 1991. When did you make the decision to have your own practice? Why Faribault? A: After my residency in Milwaukee, I started with a big clinic in Menomonee Falls, a Milwaukee suburb. After a few years, my wife and I decided to try the small town life. I grew up in a town of 5,000 people in western Wisconsin, so it was an easy decision for me, but my wife is a Milwaukee native, so

this was a leap of faith for her. We had a 2-year-old daughter at the time and Mary was nine months pregnant when we moved. Faribault was a good fit for us for several reasons. First, my brother Matt and his family lived here. In fact, Matt was part of the administrative team at the Faribault Clinic and recruited me to come to town. In addition, many of the local doctors were classmates from medical school. Dr. Henry Busch was a friend, and many of my college buddies from St John’s lived in the area. That made the transition much simpler. We moved on Oct. 1, 1991, and my son George was born 17 days later. When we moved to town, I toyed with the idea of starting my own practice, but wanted the security of the group in light of my growing family. As the medical environment changed, however, we as a group decided to become part of Allina in 1995. By 2000, I was having

A: I think the biggest thing that keeps us state of the art is the people. Equipment is not the main thing; they are only machines. Being state of the art means having the people in the office who are committed to providing the best of care in the best of ways. We do have new high tech instruments, but we carefully scrutinize new technology to assure that it really provides an advantage to our patients, doctors and staff. We don’t bring in technology for the sake of staying “state of the art” but rather to provide better care. Q: Can you talk about the advancements in eye care and the ongoing training, if any, you must undertake to stay current? A: We find advances in eye care in many different aspects of the field. I see, for example, tremendous change in lens implant technology as it relates to cataract surgery. Now when I remove a cataract, I can offer the patient astigmatism correction and even a multifocal lens implant to restore both distance and near vision. We have seen great strides in the treatment of macular degeneration with medicines injected into the eye to treat leaky blood vessels. These medicines, used two years ago solely for macular degeneration, are now commonly used for blocked blood vessels, diabetic retinopathy, and other retinal problems. >>>

FEBRUARY/MARCH 2010 35C

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>>> The technology we developed for Lasik is now used in corneal transplant surgery and has improved the healing time tremendously. We knew vitamins could help the retina, but we now use them for dry eyes and other issues. In the future, you will see further progress in cataract lens implant technology, methods of preventing macular degeneration, wavefront technology in glasses, and significant change in diagnostic testing for things like glaucoma and diabetes in the eye. As for ongoing training, all of us, including the technicians, the doctors, the estheticians and opticians are required to have continuing training. We can get our CME (continuing medical education) through meetings, journals, tapes and CDs, papers and even online. Obviously, we research any new technology we consider and get certified before we venture into new areas. Q: Who can benefit from these advancements? A: Most of these advancements will affect the people who have eye problems that we currently find hard to treat, but laser and lens implant technology will touch everyone. Imagine having your cataract

Q: Do you have a group running your business, or is the day-to-day operation your role?

The Crossroads Professional Building, built in 2006, houses The Richie Eye Clinic, Crossroads Surgery Center, Crossroads Skin Care and The Hearing Center, with more room for expansion, according to Dr. Michael Richie.

fixed and never needing glasses again. We are not there yet, but we are getting very close. Imagine you have a strong family history of macular degeneration and we can treat to assure that you never have issues, or a permanent fix for your glaucoma. This is the direction we are headed. It is exciting and fascinating. Q: When and how did you learn to run a business? Was it after you decided to open your own practice? A: I am not convinced yet that I know how to run a business. I have never had a business class. When I started

thinking about breaking away, I did what I always do when faced with a new problem: I read. I found some basic business books, thought about dabbling in real estate, and read everything I could find. Finally it hit me: stick with what you know. That was the turning point for me. I started to really put the pieces together, realized I could do this but only with the right people, and started to imagine what I eventually wanted the Richie Eye Clinic to look like. For me, the key was having a vision that I could share with others, a vision that I could get those key people to buy into.

A: We run the clinic as a group effort. Obviously, Dr. Bruce Gustafson and Dr. Murray Hanson, our two optometrists, are key players. In addition, Karen Deluca is the key to our business office. Karen, in fact, is the first person I hired and she is the reason we can still keep the doors open. Health care is a business that requires a savvy ability to deal with Medicare and insurance companies and Karen is the best. Without her we would be lost. Additionally, Gail Kaderlik came on as our lead optician and ran the optical shop. But as we grew, Gail grew into the role of clinic administrator and does a great job. On the technical side, LeAnn Fuchs and Cindy Kattenberg are nurses who have been with me since that first day back in 1991 and I hope they never leave me. Kelly Landsverk started with us as a receptionist and now manages all the surgical scheduling as well as overseeing the front desk team. This is the group that, together, runs the clinic. We discuss ideas as a team, listen to concerns, and go from there. Changes always work >>>

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>>> better if you can work out a consensus. Q: When and why did you decide to build and open Crossroads Professional Building? A: We were previously housed in the Johnston Hall building near the hospital, but when Dr. Gustafson joined us in 2003, we simply ran out of space. I talked with all the staff, looked at options, talked with District One Hospital, and decided that a part of our vision included a surgery center for our cataract patients. With that in mind, I spoke to some of the doctors at Southern Heights Dental Group and we decided to work together to solve our building needs. Eventually, we landed on this site with this building. Q: What led to your expansion (opening other businesses)? A: The Eye Clinic is the mainstay, sort of the foundation upon which we build everything else. Crossroads Surgery Center is a logical extension of the clinic and

part of our overall vision, so that was an easy decision. Crossroads Skin Care grew out of my eyelid surgery practice and my desire to grow the practice into more of a retail area. Things like Botox, collagen fillers and other cosmetic procedures fall nicely into what I do as a facial surgeon. Skin care also helps buffer us from some of the insurance and Medicare troubles others may feel. The Hearing Center is our latest venture and grows primarily out of my own personal experience with hearing loss. My family noted my hearing loss and eventually talked me into getting a test, then hearing aids. I was thrilled with the results, but couldn’t help think that the process could have been easier. As luck would have it, I mentioned my hearing issues to a friend during lunch and he told me of the new trend: hearing aids in eye clinics. As always, I then brought the idea to our leadership team and Dr. Gustafson, who has been in hearing aids for 15 years, loved it and even had a hearing specialist in mind. We approached >>>

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BusinessConnection Your connection to business answers.

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...ours will GROW your business. We know times aren’t easy for Minnesota businesses these days. You need a resource that provides direct and immediate help for all of your important business questions. BusinessConnection is your free, go-to service in Minnesota for any and all business questions. Its purpose is to help Minnesota businesses grow by breaking down barriers, opening doors and answering questions – so you can get back to business.

Connect anytime: www.mnbizconnect.com Call toll-free: 1-888-MINN-BIZ / 1-888-646-6249 Personal assistance is available 9 a.m.-5 p.m. Mon.-Fri. BusinessConnection is a service of Grow Minnesota! and sponsored by the Minnesota Chamber of Commerce, its local chamber partners and the Minnesota Department of Employment and Economic Development.

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>>> Jayne Bongers, a Faribault native with years of experience in the hearing industry, explained our vision, discussed the advantages, and she accepted our invitation to join us. It is a perfect fit because studies show a tremendous correlation between vision problems and hearing loss. With Jayne in the office, we can offer true one-stop shopping, a true full-service feel to what we do.

tal and Phillips Eye Institute? A: I continue on the staff of the local hospitals primarily to help cover their emergency rooms. I do virtually all of my surgery at the surgery center, so do not have much call to use the other hospitals, though I still do some in-patient consultations at District One.

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Q: Can you talk about your perceived role as a business leader in the Faribault community and why you volunteer?

Q: How many doctors/staff do you have working for/with you in your clinics? A: The clinic consists of two optometrists, Dr. Bruce Gustafson and Dr. Murray Hanson, with a third, Dr. Misty Purfeerst, starting in June. We have Heather Breck as our esthetician in Skin Care, and a staff of about 25 full- and part-time people working to achieve our vision. I am the only ophthalmologist/surgeon. Q: Can you talk about your role on the medical staffs of District One Hospital, Northfield Hospital, Owatonna Hospi-

A: I really donâ&#x20AC;&#x2122;t look at myself as a business leader in the community. I have never viewed myself as a businessman, rather as a physician who happens to run a clinic. I volunteer because my mother always taught me that I have a responsibility to help others. I have been blessed with a great family, great friends and co-workers, and a little talent so I have a duty to give back. I encourage everyone, my staff, my family, everyone, to look for ways to give back. r

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35Chamber

A look at what’s new in the region’s Chambers of Commerce

Faribault

Northfield

Owatonna

St. Peter

Waseca

Faribault Business Expo set for April 29 It’s nearly showtime for the 19th Annual Faribault Business Expo, which is returning to the Faribault Ice Arena on Thursday, April 29. Be a part of 60 exhibitors at the Expo and be easily seen by your future customers. Contact the Chamber with questions.

Annual meeting set for March 5 at Grand The Northfield Area Chamber of Commerce will have its Annual Meeting and Business Recognition Banquet at 5:30 p.m. on March 5 at The Grand Event Center. The highlight of the evening will be the recognition of the “Business of the Year” and the “Business Person of the Year.”

History Center Valentine’s Dinner set Romance with the Past, a romantic Valentine’s dinner, is scheduled for 6 p.m. on Friday, Feb. 12 and Saturday, Feb. 13. Proceeds benefit the History Center Project. The cost is $30 a person and reservations can be made by calling 507451-1420.

St. Peter Chamber fosters growth The St. Peter Area Chamber of Commerce is a business organization that provides leadership that fosters and promotes economic growth and the quality of life through community cooperation. The Chamber sponsors the following events each year: • Old fashioned 4th of July Celebration and Parade • Golf Tournament • Business Day at the Capitol • New Faculty Breakfast

Wasecans honored at Community Awards Honored at the Waseca Area Chamber of commerce Community Awards Banquet were Jean Born (Human Rights), Pam Shaper (Service Above Self), Waseca Fire Department Grants Committe (Book of Golden Deeds), Waseca County Fair Board of Directors (James J. Donahue Community Development), Kara Sturgill (Boss of the Year), Audra Nissan-Boyer (Distinguished Service).

Networking group looking for members Join other professionals ages 21-39 for monthly Networking and Business Information Exchange. Along with monthly meetings, the group has special events and seminars during the year. There is no cost to join. Go to www.faribaultmn. org for a schedule and more information. • Get connected in Faribault by clicking into EVENTS at www.faribaultmn.org.

‘Be Local, Buy Local’ campaign kicks off The Chamber and downtown organization recently kicked-off a community-wide awareness campaign to promote “buying local” in the Northfield area. The goal is to increase business at home and to gain a stronger economic situation in Northfield.

Women achievement event March 12 The Owatonna Business & Professional Women’s Organization announces its annual “Woman of Achievement/Silent Auction/Scholarship Fundraiser” for 2010. The event will be held on March 12 at the Owatonna Arts Center The keynote speaker is Karen Duncan, Chief 3rd District Public Defender.

• To see more Northfield Chamber events, log onto www.northfieldchamber.com.

• To see more Owatonna Chamber of Commerce events, log onto www.owatonna.org

St. Patrick’s Day Parade is March 17 The St. Peter St. Patrick’s Day Parade is scheduled for March 17, starting at 5:30 p.m. on South Third St.

Farm & City Luncheon set for March 25 The Chamber’s ‘Farm & City Luncheon’ is scheduled for March 25. The ‘Outstanding Young Farmer’ and ‘Farm Family of the Year’ will be honored.

• To see more St. Peter Chamber events, log onto www.tourism.stpeter.mn.us.

• To see more Waseca Chamber events, log onto www.wasecachamber.com.

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Hog heaven Historic building in Blooming Prairie to serve Harley enthusiasts as new site for TT Motorcycles Story by AMY ROEMHILDT Photos by THOM CAYA

his isn’t the first renovation for the historic building at 402 E. Main in Blooming Prairie, but it could be the last. Early in March, the crew at TT Motorcycles will be moving in to set up shop — and they plan to stay there for a long time. If the company’s track re-

24 FEBRUARY/MARCH 2010 35C

cord is any indication of what’s to come, that could very well be the case. Successful and holding steady even in a down economy, the small-town business reaches throughout southern Minnesota and beyond with big dreams and great service. As the area’s largest aftermarket Harley-Davidson motorcycle shop and service center, the 10-year-old company thrives on building

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after-market motorcycles that customers dream of. And, they keep their customer’s bikes running smoothly. Historic digs Customers in search of a smooth ride started coming to the 402 E. Main location in 1867, when the service location began as a blacksmith shop. Horseshoes rather than tires were in demand until 1920, when today’s build-

ing was constructed over the blacksmith shop. Model T’s replaced forges as the site became one of Minnesota’s first Ford dealerships. The transformation of the building from Model T’s to TT Motorcycles took another 80 years. Owners changed the building from a Ford dealership to a Studebaker dealership, with a gas and service station, in 1930, which thrived for 20 years. >>>

Royal Enfield motorcycles come to U.S. through Faribault By AMY ROEMHILDT

Eric Hancock, general manager and lead technician at TT Motorcycles, says he prides himself in making straightforward, clean after-market Harleys.

>>> “Customers would pull under a canopy and carhops would run out to service the car,” said Eric Hancock, general manager and lead technician at TT Motorcycles. “We are keeping that wall and window intact in our new showroom.” Rich with local lore, the historic building deems worthy of housing after-market Harley-Davidsons that have been restored or rebuilt by the experts at TT Motorcycles. These bikes are, in their own right, works of art. “We are like artists, but work with a different kind of canvas,” Hancock said. “Everyone who works here eats, sleeps and breathes motorcycles.” They may be technicians, but motorcycles are their passion. And they tap that passion to match each customer with the right after-market motorcycle. “Our motto is, if you can dream it, we can build it,” Hancock said. A custom builder Customers acquire a TT Motorcycle in one of two ways. They can buy one from the showroom, or they can have Hancock and his crew build — or rebuild — exactly what they are looking for. During the process, the customer’s budget is a major consideration. “Usually, a client will tell us the model of Harley-Davidson he or she wants, along with a budget. Then we start searching for that bike,” Hancock said. “We have a pretty good idea of what the initial cost will be and provide a close estimate to getting the bike ready.” Once the folks at TT Motorcycles find the motorcycle, they provide a firm quote and check with the customer throughout the process. Many of their motorcycles come through connections with insurance companies or from bank repossessions. Once the right bike is purchased, the experts at TT Motorcucles rebuild the engine and customize it to the customer’s wishes, offering expertise along the way. “We pride ourselves in producing straightforward, clean bikes,” Hancock said. “We treat each bike like it was our own.” Each bike does, in a way, belong to the crew at TT Motorcycles. It is their passion and vision that results in a one-of-a-kind creation for each customer. Each bike is completely redone — every nut and bolt comes off. The job includes new paint, and a reissued title from the >>>

t a time when motorcycle distributors are experiencing a downward trend in big touring bikes, a smaller, retro bike is making a comeback. Royal Enfield is experiencing an explosion of popularity in the U.S., and the British motorcycle is coming through Classic Motorworks in Faribault. “I was at the right place at the right time,” says owner Kevin Mahoney, of his position as exclusive importer for the curious craze. Mahoney founded the business in 1998, and last year, 500 motorcycles were imported. Thanks to the Royal Enfield, that number is expected to grow to somewhere between 800 and 1,000 units by the end of 2010. “It all started about three years ago, but a year and a half ago, their popularity really took hold,” Mahoney said. “We’re having trouble keeping up.” Royal Enfield motorcycles have kept a fairly low profile. Originating in Great Britain as early as 1901, the bikes were one of the first line of motorcycles introduced. “Royal Enfields were introduced one year before Triumph, and two years earlier than Harley-Davidson,” Mahoney said. “In the 1950s, they were getting more orders than they could handle from the Indian military, so they built a plant in India. The company went out of business, but the plant in India kept producing — and has been since 1955.” In the 1990s, the plant in Chennai, India, was purchased by a large truck and bus company and was modernized, according to Mahoney. It didn’t take long before the bikes en-

joyed huge popularity in India, comparative to Harley-Davidson in the United States. Growing incomes of middle-class, Indian families provided means to purchase the motorcycles, and that demand sparked a healthy comeback. “The company has to ration bikes to dealers in India,” said Mahoney, who pointed out that the most popular Royal Enfield motorcycles are small, 100cc commuter bikes. “In India, there is no concept of the big touring bikes that we have here. Generally, big bikes Americans purchase don’t do well in other countries. In India, the price of a Royal Enfield might seem expensive, but here, they are reasonably priced.” In the United States, the most expensive Royal Enfield retails for less than $6,500. Mahoney credits the line’s popularity with the retro appearance, blended with modern technology. “Royal Enfields have the look of a bike from the 1950s, but offer all the reliability of today’s modern motorcycles,” he said. Royal Enfield motorcycles are not mass marketed, and Mahoney is happy to fill a niche he sees as pure opportunity. “I’ve traveled extensively and developed a line of Royal Enfield accessories,” said Mahoney, whose company has seven employees in Faribault who serve customers and distribute the British-inspired motorcycle throughout the United States. “I can’t keep up with the orders.” As the exclusive distributor of Royal Enfields, the Faribault company hosts a popular Website where enthusiasts or future Royal Enfield owners can find dealers, parts, kits, information — and each other. To learn more, visit www.enfieldmotorcycles.com. r

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>>> state if the bike had been in an accident. â&#x20AC;&#x153;Our after-market bikes are one-of-a-kind-bikes, and are virtually just like new,â&#x20AC;? Hancock said. Clean, practical styling make for sharp looking bikes with outstanding paintwork from privately contracted painters. Growing spurts Terry Trom founded TT Motorcycles at his rural home outside Blooming Prairie in 2000 as a sideline to other business ventures. Hancock joined him in 2005, bringing valued technical experience, as well as additional skill as a fabricator. Together, they built the business until it outgrew the showroom Trom built on his farm. More than 130 bikes sport the TT Motorcycle emblem, and more are on the way. Seeking space and a better business location, Trom evaluated and purchased the Main Street building. Apparently, the automotive era had ended for the thriving location in the 1950s. It had been converted to Morten Appliance, then housed Morten Plumbing and Heating from 1975 to 2005. When Trom bought the building, it had been empty, except for one aspect â&#x20AC;&#x201D; part of the building was

ABOVE: Terry Trom (left), owner of TT Motorcycles, and Eric Hancock, general manager and lead technician, have been busy renovating a historic building in downtown Blooming Prairie for the businessâ&#x20AC;&#x2122; eventual move. RIGHT: Trom paints the ceiling of the new location.

converted to a cafĂŠ in the late 1950s, and Nickâ&#x20AC;&#x2122;s Prairie CafĂŠ serves patrons there today. â&#x20AC;&#x153;We are leaving that alone for now,â&#x20AC;? Hancock said. â&#x20AC;&#x153;Phase

!T &IRST .ATIONAL "ANK WE SERVE WITH A LEVEL OF COMMITMENT THAT HELPS YOU SEAL THE DEAL 0ERSONAL FACE TO FACE SERVICE GIVES YOU AN EDGE ON GROWTH !SK OUR CUSTOMERS

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one is the showroom and shop. Phase two will involve converting the cafĂŠ to a bar and grill with a Harley-Davidson theme.â&#x20AC;?

Business plan Today, about 30 percent of business at TT Motorcycles stems from the sale of rebuilt bikes. The rest comes from service given to the bikes of Harley Davidson owners all over southern Minnesota, northern Iowa and western Wisconsin. As they have in the past, Hancock and Trom will work closely together to provide complete service and custom after-market bikes to Harley Davidson enthusiasts. There are no current plans to pursue a dealership to sell new Harley Davidson motorcycles. â&#x20AC;&#x153;New motorcycles are expensive,â&#x20AC;? Hancock said. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s easy to spend $45,000 on a new Harley.â&#x20AC;? Many of the reconditioned motorcycles sold at TT Motorcycles fall in the price range of $8,500 to $14,000. Because of the uniqueness and quality behind the TT emblem, the bikes hold their value well. The growing crew at TT Motorcycles services about 800 bikes during the busy season, which runs during key riding times â&#x20AC;&#x201D; spring through fall. They reserve winter months for rebuilding custom orders. â&#x20AC;&#x153;Terry will fill more of a behind-the-scenes role at the new shop, managing the business end of things,â&#x20AC;? Hancock said. >>>

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Julie Frazier, Sales Director: 507.837.5442

Providing rural electrical power to the I-35 Corridor â&#x20AC;˘Northfield â&#x20AC;˘Faribault â&#x20AC;˘Owatonna â&#x20AC;˘Ellendale 507-451-7340 2411 West Bridge St. 800-526-3514 Owatonna, MN 55060 swce@swce.coop â&#x20AC;˘ www.swce.coop Trom and Hancock say their after-market Harleys are one-of-akind, and are virtually like new when completed.

>>> â&#x20AC;&#x153;I will be involved in all aspects of daily operations and will still work on bikes and have input as needed.â&#x20AC;? As the growing business of TT Motorcycles breathes life into a building with a colorful past, the future looks bright for both. Historic beams, tin ceiling tiles and the original exterior window hold testament to silent memories of fast cars and prohibition.

Soon, sleek works of art fashioned in steel and chrome will reflect attention to detail from a dedicated crew. Who knows? History could be in the making once again. r â&#x20AC;&#x201D; Amy Roemhildt is the owner of Akorn Creations, a Janesville company specializing in freelance writing and photography. She can be reached at 507-234-2266.

â&#x20AC;&#x153;We are like artists, but work with a different kind of canvas. Everyone who works here eats, sleeps and breathes motorcycles.â&#x20AC;?

Flexible financing for beautiful sunrises and wide open spaces. t 4JOHMF 'BNJMZ )PNFT t )PCCZ 'BSNT t "DSFBHFT t 0VUCVJMEJOHT t -BOE )PNF 4JUFT t .PEVMBS .BOVGBDUVSFE )PNFT

â&#x20AC;&#x201D; Eric Hancock, general manager and lead technician, TT Motorcycles in Blooming Prairie

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35Commendation

Recognizing individuals and companies in business along the I-35 corridor /OWATONNA/

/FARIBAULT/

/OWATONNA/

Owatonna Hospital receives ‘Blue Distinction’ designation

South Central College adds new manufacturing consultant

Cybex International names new Chief Marketing Officer

Six Allina Hospitals & Clinics hospitals have been designated as Blue Cross and Blue Shield Association (BCBSA) “Blue Distinction Centers.” Blue Distinction recognizes medical facilities that have demonstrated expertise in delivering quality healthcare in the areas of bariatric surgery, cardiac care, complex and rare cancers, knee and hip replacement, spine surgery and transplants. Owatonna received the Blue Distinction designation for Knee and Hip Replacement. “This national distinction recognizes the clinical talent we have,” said Penny Wheeler, MD, Allina’s chief clinical officer. “We’re committed to ensuring our patients receive a positive, quality experience from the collaborative efforts of nursing, rehabilitation medicine, physical therapy, anesthesiology and patient safety.”

South Central College Center for Business and Industry (CBI) recently announced the addition of a new Manufacturing Consultant position to assist with education and training opportunities for area business and industry. Tom Kammer comes to CBI from Northeastern Iowa, where he spent the last 6-1/2 years as a Business & Industry training specialist, working with manufacturing and processing industries to identify needs and provide training. His background includes 25 years of management experience. “We are fortunate to have someone with Tom’s expertise and years of experience join our team,” said Marsha Danielson, Dean of Economic Development for South Central College. This addition is certain to provide the highest level of industry-specific knowledge and experience in the region.”

Cybex International, Inc., a leading manufacturer of premium, high-performance exercise equipment for the commercial and consumer markets, announced recently that Larry Gulko has been named its Chief Marketing Officer. In this role, Gulko will provide leadership and strategic direction to strengthen the company’s market position, drive growth, and maximize the value of the CYBEX brand. One of Gulko’s first initiatives was securing a multi-year agreement for PGA Tour legend Greg Norman to serve as an official ambassador for the innovative CYBEX Golf Fitness platform. “Larry is championing our top-line growth,” said John Aglialoro, Chairman and CEO of CYBEX.

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35Close-up 35Close-up on FDIC insured banks in the four largest counties 35C serves. NATIONALLY FDIC insured institutions … 8,011 Assets … $13,267,546,000 Liabilities … $9,111,409,000 RICE COUNTY Frandsen Bank & Trust $317,787,000 (Assets) $327,954,000 (Assets 2008) $273,075,000 (Liabilities) $282,905,000 (Liabilities 2008) Community Resource Bank $244,649,000 (Assets) $231,015,000 (Assets 2008) $219,602,000 (Liabilities) $206,415,000 (Liabilities 2008) State Bank of Faribault $175,440,000 (Assets) $168,014,000 (Assets 2008) $175,440,000 (Liabilities) $168,014,000 (Liabilities 2008) First National Bank of Northfield $124,710,000 (Assets) $111,295,000 (Assets 2008) $113,595,000 (Liabilities) $100,971,000 (Liabilities 2008) 1st United Bank $122,174,000 (Assets) $126,666,000 (Assets 2008) $111,027,000 (Liabilities) $116,856,000 (Liabilities 2008) Reliance Bank $61,175,000 (Assets) $52,705,000 (Assets 2008) $52,899,000 (Liabilities) $43,915,000 (Liabilities 2008) Lake Country Community Bank $40,176,000 (Assets) $44,127,000 (Assets 2008) $37,736,000 (Liabilities) $40,990,00 (Liabilities 2008) STEELE COUNTY Farmers and Merchants State Bank of Blooming Prairie $65,063,000 (Assets) $62,160,000 (Assets 2008) $59,464,000 (Liabilities) $57,031,000 (Liabilities 2008)

Snapshots of various business trends along the I-35 corridor

n an attempt to bring you snapshots of different business trends in the counties 35C serves along the I-35 corridor, we will present three different economic indicators in each issue.

Community Bank Owatonna $54,594,000 (Assets) $49,614,000 (Assets 2008) $49,890,000 (Liabilities) $45,020,000 (Liabilities 2008) NICOLLET COUNTY First National Bank Minnesota $208,903,000 (Assets) $200,892 (Assets 2008) $187,643,000 (Liabilities) $180,300,000 (Liabilities 2008)

Comparison of gas prices

ProGrowth Bank $154,064,000 (Assets) $137,786,000 (Assets 2008) $144,660,000 (Liabilities) $128,443,000 (Liabilities 2008) The Nicollet County Bank of St. Peter $148,565,000 (Assets) $124,148,000 (Assets 2008) $135,953,000 (Liabilities 2008) $112,312,000 (Liabilities 2008) In comparing gas prices in Minnesota to those of neighboring Wisconsin and with the rest of the nation, we see that Minnesotans spent less on average for a gallon of gas during the month of January. The Minnesota average closely resembles the average price of gas in our region. — MinnesotaGasPrices.com

A month-to-month look at Employment in the region County

Nov. 2009

Goodhue

24,110

23,956

-154

Le Sueur

13,033

12,680

-353

Nicollet

18,836

18,450

-386

Rice

31,666

31,164

-502

Steele

29,852

29,029

-823

Waseca

10,261

10,095

-166

Dec. 2009

+/-

Total jobs lost in six-county region -2,284

WASECA COUNTY Roundbank $223,037,000 (Assets) $224,990,000 (Assets 2008) $199,692,000 (Liabilities) $204,883,000 (Liabilities 2008) The First National Bank of Waseca $112,935,000 (Assets) $116,635,000 (Assets 2008) $101,263,000 (Liabilities) $105,364,000 (Liabilities 2008) State Bank of New Richland $86,788,000 (Assets) $75,187,000 (Assets 2008) $79,802,000 (Liabilities) $69,942,000 (Liabilities 2008) Janesville State Bank $48,241,000 (Assets) $48,320,000 (Assets 2008) $42,175,000 (Liabilities) $42,820,000 (Liabilities 2008)

In comparing the number of people working in the six-county region that 35C serves, there were 2,284 fewer people employed in December 2009 compared to the previous month.

— Source: FDIC

— Minnesota Department of Employment and Economic Development

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35Caricature

Corridor professionals draw strength from outside the office

For nearly 19 years, Tim Schiltz has been coaching Special Olympics athletes in swimming and track & field. Schiltz says “you always get more back than what you put into it.” 35C photo by Thom Caya

Owatonna coach has a special mission in life By JERRY SMITH

or Tim Schiltz, coaching Special Olympics athletes in the pool and on the track is a win-win situation. On the one hand, the Owatonna coach is teaching these special athletes something he loves. On the other hand, he is being rewarded for giving of himself. “These athletes are very eager to learn,” said Schiltz, who has been volunteering as a coach in the organization for 19 years. “I get so much satisfaction because they are having a good time. You always get more back than what you put into it.” A high school swimmer himself, Schiltz gets excited around this time of year as the athletes are preparing to get back in the pool to train for their first competition, which is in March. He said the workouts aren’t much different from the standard high school training, with one notable exception. “It’s similar to what they do in high school, except as a coach for these athletes, I have to be in the pool with them,” Schiltz said. “Besides that, they are normal workouts. We work on stroke improvement and extending yardages.”

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The Schiltz file Name: Tim Schiltz Occupation: Technical support for Emerson Network Power in Waseca Age: 47 Years in occupation: 25 Wife: Lori Children: Dennis, 21, and Bradley, 19 Residence: Owatonna Schiltz says the similarities to high school swimming don’t end there. While the special athletes he coaches are competitive, if they don’t win, they don’t get too upset. “They enjoy the competition for the camaraderie and I really like that,” said Schiltz, who called the organization 19 years ago hoping to be an assistant, but took over as head coach when the person in that role never showed up. “It’s been a great 19 years. It’s just so much fun to get in the pool with them and to see them compete.” Special family While busy with a family of his own, Schiltz says that each year he coaches Special Olympics athletes, his family grows.

“It’s like you have an extended family,” Schiltz said. “You get to know the older ones. I have seen them graduate from high school and have become good friends with some. It’s great being a part of their lives.” A break from work And while Schiltz relishes each moment with the Special Olympics athletes he coaches, he’d be the first to tell you that he gets something else out of working and training with these special people. “The last six months on the job have been very stressful,” Schiltz said. “At the end of the day, I’m able to forget all of that and concentrate on the athletes. When you go to practice, you have to focus on what they want. That helps both of us.” With that in mind, Schiltz says he is in no hurry to give up his gig as Special Olympics coach. “I’ll keep doing it for the obvious reasons, but with my boys getting older and moving onto their own things, I will have more time to devote to this,” said Schiltz, whose boys Dennis and Bradley help out in the pool as well. “I love coaching these special athletes. My world is not that bad and I’m trying to to make their world better.” r