IQ Magazine- Q3 2015 by Initiative Foundation

3RD QUARTER 2015

BUSINESS

Upskilling— Training incumbent workers. Pg. 14

COMMUNITY

On Track— A new BMX arena revs up Isanti. Pg. 18

PHILANTHROPY

A Healthy Gift— The power of field of interest funds. Pg. 46

ENERGY MATTERS

How conserving energy fuels a more sustainable future for Central Minnesota. Pg. 22

“Women can have different symptoms before a heart attack.” — Dr. Michael Thurmes, Interventional Cardiologist When Mary Jo Warren started noticing pain in the back of her shoulders, she figured it was stress or maybe she was spending too much time hunched over her new e-reader. Then she realized she on a treadmill.

Brainerd Lakes Heart & Vascular Center For appointments call 218.828.7580

Following a stress test at the

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felt the same pain when she worked out

Brainerd Lakes Heart & Vascular Center at Essentia Health in Brainerd, interventional cardiologist Michael Thurmes, MD, performed an angiogram. When the angiogram revealed one of the major arteries in Mary Jo’s heart was 90 to 95 percent blocked, a tiny metal stent was expertly inserted to open the artery. “Women have less typical symptoms,” says Dr. Thurmes. “They report sweatiness, shortness of breath or back pain and not chest pain.”

The Brainerd Lakes Heart & Vascular Center at Essentia Health - St. Joseph’s Medical Center is in partnership with CentraCare Heart & Vascular Center

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Initiative Foundation Quarterly 3RD QUARTER 2015

Contents FEATURES

DEPARTMENTS

Energy Matters

A town, a church and a company discovered that conserving energy can fuel a more sustainable future.

Economically Empowering

Bloom Where You Are

Food hubs help farmers scale up and improve their bottom lines.

Central Minnesota’s newcomers are an engine of innovation and vitality in Greater Minnesota.

36 Building a Nation

An innovative program aims to boost the Leech Lake Band’s economic self-sufficiency.

Initiatives:

Regional Highlights Get the latest economic and community development highlights from the 14-county area.

10 14

Emerging Leaders:

Opening Doors As a rising entrepreneur, Travis Kelley’s success hinges on hard work. Economy:

Challenge, Solution

Manufacturers train the workers they have for new skills.

18 46

Community:

On Track A new indoor BMX arena revs up a sport-friendly economy in Isanti. Philanthropy:

A Healthy Gift When a regional

medical association fulfilled its original mission, the assets got a second life.

50 52

Home Made: Sven Why clogs are big business in Chisago City.

Where is IQ?

Engineering | Architecture | Surveying | Environmental

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Dear Friends, Neal and I are pretty good about planning for the future and anticipating the unexpected, but the July 12 Brainerd-area storm was a test for us on many fronts. As the weather grew more ominous, Neal and our daughter Melanie kept an eye on the sky and entertained a gaggle of grandkids while I snatched a few minutes to give two messy babes a quick bath. As the storm grew in intensity, we knew we were in for something extraordinary. And then the big winds hit. Almost in unison we shouted, “BASEMENT!” I pulled the squirming toddlers from the tub and dashed down the stairs. Neal followed close behind with one grandchild under each arm. Trees bent, the lake swelled and the power popped as Melanie grabbed as many flashlights and candles as she could find. (Flashlights are scarce and their reliability suspect when you have grandkids frequently marauding throughout the house.) As the fury of the storm bore down on us, we could hear trees cracking and crashing to the ground. The aftermath was astounding. After a quick self-check, our attention shifted to caring for—and helping—others. Thousands of neighborhood trees were down. Miraculously, no one was injured. The power was out for days, making cleanup and everyday living all the more challenging. It made us realize how much we take for granted—and how vulnerable we can become— when cut off from the services we consider essential. We are thankful to report that we now have a generator and a fresh supply of flashlight batteries. And we’re more than pleased that our little neighborhood is a stronger community, that the Kathy Gaalswyk, President resilient businesses and resorts in the area are open for business, and that local people once again came through to help each other in true Minnesota fashion. In this edition of IQ Magazine, we’re bringing you stories about energy sustainability, the necessity of embracing the diversity in our communities and about the empowerment of local growers who are banding together to gain a greater economic foothold while providing fresh and healthful local produce. It’s about planning. It’s about the future. It’s about pulling together and being mindful of what’s to come—the foreseen and the unforeseen. Enjoy the magazine.

Kathy Gaalswyk PRESIDENT

VOLUME 18, 3RD QUARTER 2015

Initiative Foundation President | Kathy Gaalswyk Marketing & Communications Manager | Bob McClintick

Teresa Lund | John Linn | Michael Schoenecker | Bill Jones

Advertising/Subscriptions Advertising Director | Brian Lehman Advertising Manager | Lois Head Advertiser Services | Janelle Breen Subscriber Services | Alyson Twardowski

405 First Street SE Little Falls, MN 56345 (320) 632-9255 | ifound.org

IQ Magazine unlocks the power of Minnesota leaders to understand and take action on regional issues.

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NJPA core services and public beneﬁt National Cooperative Contract Purchasing

Through its joint powers authority and statutory authority to engage in cooperative purchasing, NJPA is able to award contracts through a competitive solicitation process on behalf of its members. NJPA members, in accordance with their own laws, rules and regulations may purchase from the NJPA contracts; enabling funding for NJPA operation costs and marketing.

Technology Services

Education Solutions

NJPA’s Technology Solutions Department offers IT support and technology services to assist Region 5 members.

Training and consulting services to administrators, teachers, staff and students that includes training sessions on leadership and professional learning, assessment and curriculum, and effective instruction.

National Cooperative Contract Purchasing

Professional development services in leadership, supervision, planning and zoning. Plus discounted services in areas such as ﬁnancial, economic development support, executive recruitment, land use, HR policies and grant writing.

Regional Low Incidence Project and Collaborative Service Workers

NJPA leads a Collaborative Service Team in Crow Wing County to provide strong research-based interventions and work with children and their families from birth to 18 at no cost.

City/County Services

Risk Management

NJPA’s Risk Management Pool serves twenty-eight government and education entities with insurance products and maintains a focus on wellness initiatives and continues to expand Life and Disability programs nationally.

NJPAcoop.org National Contract Purchasing • Risk Management • Education Solutions • IT Services • City/County Gov’t Services • And More!

IQ Initiatives

Regional Investment Highlights BENTON COUNTY

Real Connections

The Central Minnesota Inside Out Connections Coalition is supported in part by a grant from the Initiative Foundation to ensure that families have the necessary resources when a parent or caregiver is incarcerated. During the past year, nearly 120 adults attended classes at the Benton County jail that focused on relationships, child behavior and positive communication.

CASS COUNTY

The Survey Says ...

The Pillager Family Center is shaping plans for how to best serve families in the years to come. After surveying area residents, the Family Center hosted a community meeting where survey results were shared and additional input was gathered. The survey and community meeting were supported through technical assistance and a grant from the Initiative Foundation.

CHISAGO COUNTY

A Rush of Improvements

Rush City is installing directional signage to help guide visitors to the industrial park, Community Center, Aquatic Center and airport. Rush City is a participant in the Foundationâ&#x20AC;&#x2122;s Thriving Communities Initiative (TCI). The program aligns with Central Minnesota communities and provides grants to engage local leaders and citizens in planning for the future.

Brainerd Storm Relief

While the most visible damage has been addressed, many Brainerd Lakes Area residents continue to struggle with the physical and emotional toll from a massive July 12 storm. The Initiative Foundation contributed a $5,000 emergency matching grant to Bridges of Hope to help with case management and volunteer support services. Visit bridgesofhopemn.wordpress.com to learn how you can help.

ISANTI COUNTY

WADENA

CROW WING COUNTY

CASS

TODD

CROW WING

MORRISON

MILLE LACS

Another Accolade

The success of the Braham Community Center has been powered by big thinking. And itâ&#x20AC;&#x2122;s big thinking that has the community on the cusp of another major milestone: Braham is a finalist for the Bush Prize for Community Innovation. Winners will be announced in October. The center is led by Tusen Tack, an Initiative Foundation-supported nonprofit that uses thrift store proceeds to support community programs.

KANABEC COUNTY

Safety First

Kanabec and Isanti counties have received a boost from the John & Bonnie Schlagel Endowment Fund to reduce serious and fatal accidents. The fund has granted money to East Central Regional Development Commission for its Towards Zero Deaths and Safe Roads Coalition programs. The Schlagel endowment is a component fund of the Initiative Foundation.

MILLE LACS COUNTY

Energizing Science

The Alternative Sources of Energy Fund, a Turn Key fund of the Initiative Foundation, annually supports the Milaca High School science department and higher education scholarships through the Milaca Scholarship Foundation. Grants from the fund have helped the science department upgrade projectors and purchase interactive whiteboards and other supplies to enhance learning.

6 Initiative Foundation Quarterly ifound.org

BENTON STEARNS

SHERBURNE

WRIGHT

A New Education Fund

The Little Falls School District has established the 482 Education Foundation of Little Falls Community Schools Fund. The Initiative Foundation component fund will support education and activities in the geographic area served by District 482. An advisory board is being assembled to identify fund priorities with a goal to provide classroom grants in 2016.

PINE COUNTY

Hello, Neighbor!

In early August the Sandstone Thriving Communities Initiative (TCI) team provided food and blocked off streets for its Neighborhood Night Out event. The TCI team arranged for fire, ambulance and sheriff’s department personnel to interact with local citizens in eight neighborhoods as they came together to form connections and improve their hometown. TCI is a community-building program of the Initiative Foundation.

SHERBURNE COUNTY

Golfing for Good

The Three Rivers Community Foundation hosted its 28th annual golf tournament in June at the Elk River Golf Course. The threat of rain did not deter golfers who came out to play and to support a great community asset. TRCF’s advisory board has recommended more than $350,000 in grants back into the local community since its inception in 1992.

STEARNS COUNTY

Entrepreneur Honors

Initiative Foundation board member Rick Bauerly received the 2015 Saint John’s University Entrepreneur of the Year Award in early September. The award recognizes Saint John’s graduates who start and manage a business with entrepreneurial spirit and practice Benedictine values. Bauerly is managing partner and chief operating officer at Granite Equity Partners.

TODD COUNTY

AmeriCorps VISTA member Andrea Fercho successfully partnered with the Region Five Development Commission and the Staples Area Farmers Market to secure a grant from Staples-Motley Area Community Foundation (SMACF). The $2,000 grant enables Electronic Benefit Transfer (EBT) at the market, allowing eligible individuals to purchase fresh, local produce. SMACF is an Initiative Foundation component fund.

CHISAGO

ISANTI

Healthy Foods, Strong Communities

PINE

KANABEC

MORRISON COUNTY

WADENA COUNTY

On The Map

WADENA

Wadena County information can now be accessed through a web-based interactive map. First American Financial Services on behalf of Wadena County Economic Development Alliance has created interactive features to highlight quality of life, attract skilled workers and draw attention to the county’s fiber broadband. The mapping effort is supported in part by a $5,000 grant from the Initiative Foundation. Search “Interactive Wadena Map” to see it in action.

WRIGHT COUNTY

Entrepreneur Central

Stratetek, a Buffalo-based early stage business, has advanced to the finals in the Initiative Foundation co-sponsored MN Cup competition. A total of 43 entrepreneurs, inventors and innovators from Central Minnesota entered this year’s competition. Since the start of MN Cup, Central Minnesota has had more semifinalists than any other region of the state.

3RD QUARTER 2015

University of Minnesota and community partners working together to foster sustainability.

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emerging leaders

Opening Doors As a rising entrepreneur, Travis Kelley’s success hinges on hard work. TRAVIS KELLEY: “The most rewarding part of this venture has been getting to do all the things that come along with starting a company and creating a brand.”

After a few years working at a Twin Cities lumber yard, Travis Kelley returned home to Central Minnesota for a job selling and installing doors for J.B. O’Meara, a Burnsville-based manufacturer and wholesaler. Little did he know that a routine work frustration would springboard him into a career as a successful entrepreneur. “The doors were always flat as boards when they were in our factories,” explained Kelley, who grew up in Backus. “But then they’d get installed and warp.” Kelley wondered if improving the installation process would prevent them from bending. Kelley and his wife, Jennifer, set to work inventing an installation tool, creating a prototype out of tin, cardboard and a level from Menards. The result is the CHEATAH Door Level Kit, which helps contractors and do-it-yourselfers correctly install a door—and do it in less time. In 2011, they founded their company, JenTra Tools, in Backus. Like many entrepreneurs, Kelley still has his day job. He’s one of Marvin Windows and Doors’ top regional salespeople—and he sees enormous potential for JenTra. There are 40 million doors being installed in the United States each year, and Kelley estimates that if they all used the CHEATAH, it would translate to an annual savings of more than $250 million in contracted labor. Those numbers impressed the Cass County Economic Development Corporation, which heard about Kelley’s project and suggested that Kelley connect with the Initiative Foundation for financing and guidance.

By Anita Hollenhorst | Photography by John Linn

Must Have

In May 2012, the Initiative Foundation issued JenTra a $50,000 loan to help the company get off the ground. In May 2015, the Initiative Foundation also approved a $200,000 loan/equity investment to Jentra to finance additional tooling and working capital. The Kelleys also secured help from Legal Corp, SCORE and the Central Lakes College (CLC) Small Business Development Center. “Turning an innovative business product into a viable business venture is not for everyone,” said Greg Bergman, director of the North Central Small Business Development Commission. “The Kelleys have the desire and commitment to be successful entrepreneurs.” That drive impressed Dan Bullert. In his role as the Initiative Foundation’s business finance manager, Bullert comes across a lot of ventures and ideas. In his mind, there was no question that the Foundation should support JenTra—even if their product was just a prototype. “A very attractive aspect of the JenTra project is the potential for strong market penetration, leading to high volume for sales,” he said. “The product has some unique features and has been patented, which differentiates it from others in the industry.” The CHEATAH hit the shelves in 2012 and was mentioned on the DIY Network’s “Must Have” list of products from the International Building Show in Las Vegas. Since then, JenTra has experienced healthy growth. While the CHEATAH is a retail product that’s sold in stores, JenTra is now preparing to go direct to the manufacturer with a more lightweight, disposable version of the tool pre-installed on doors so that contractors and do-it-yourselfers can quickly and accurately do the installations. “We have been able to expand our potential customer base from 500,000 potential lifetime sales to contractors into 55 million potential annual sales by putting our levels on every door sold,” said Kelley. CONTINUED ON PAGE 12

10 Initiative Foundation Quarterly ifound.org

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3RD QUARTER 2015

business, continued from page 10

“ Minnesota is the best state for starting a business, and being able to get advice from people who have ‘been there’ is priceless.” The Initiative Foundation provided a loan to finance the mold of the new product and has also funded working capital. “Kelley has confidence in his product,” said Bullert. “And he’s made a concerted effort to demonstrate and market the product.”

Young Entrepreneur

JenTra’s successes have not gone unnoticed. This past April, Kelley, who is 29, was named Minnesota’s Young Entrepreneur of the Year by the U.S. Small Business Administration. The SBA’s Young Entrepreneur of the Year is selected annually based on sales and profits, innovation, increased employment opportunities and entrepreneurial potential for long-term business success and economic growth. In 2014, Kelley participated in the University of Minnesota’s Carlson School of Business MN Cup competition and was named runner-up in the general division. The Initiative Foundation is a sponsor of MN Cup. While the honors are exciting, Kelley still finds the bulk of his satisfaction in the actual work. “The most rewarding part of this venture has been getting to do all the things that come along with starting a company and creating a brand,” he said. “I never knew how much I would enjoy it until I started doing it.” Central Minnesota needs young entrepreneurs like Kelley. In fact, data from the U.S. Small Business Administration shows that self-employment among young Americans decreased by 19 percent from 2005 to 2010. To counter this trend, the Initiative Foundation has launched an Emerging Leaders program for individuals aged 18-35 who are interested in more meaningful involvement with their work and in their community. What’s Kelley’s advice for these young movers and shakers? “Don’t be afraid to ask for help,” he said. “Minnesota is the best state for starting a business, and being able to get advice from people who have ‘been there’ is priceless.”

PERFECT FIT: The CHEATAH hit the shelves in 2012 and was mentioned on the DIY Network’s “Must Have” list of products from the International Building Show in Las Vegas.

12 Initiative Foundation Quarterly ifound.org

EMERGING LEADERS PROGRAM Designed to enhance personal and professional growth through meaningful civic engagement, the Foundation’s Emerging Leaders program selected its first round of participants in June. For 16 months, these budding leaders will participate in workshops, special community sessions, peer learning and inter-generational networking. PARTICIPANT

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The Friends of Nisswa Lake Park are raising funds to build the infrastructure for our lakeside park on Nisswa Lake in the City of Nisswa. • 2.3 Acre Park Area • Located across 371 from Downtown Nisswa Square • Swimming Area • Fishing Pier • Boat Slips for Boat Docking

• Walking & Biking Trail connecting to the Paul Bunyan Trail • Pavilion area for weddings and special events • Picnic area • Overlooking Nisswa Lake

For more information contact the Friends of Nisswa Lake Park at lehmanconsulting@nisswa.net; or contact Brian Lehman, Co-Chair, 218-838-4158; Lee Seipp, Co-Chair; 218-821-0362; Reed Larson, Nisswa Park Commission, 218-820-5335; Loran Knack, Co-Chair, 218-820-5442

Checks should be made payable to “BLA CommunityFoundation” with a notation of “Friends of Nisswa Lake Park.” Send your tax-deductible donation to The Friends of Nisswa Lake Park, PO Box 262, Nisswa MN 56468. Ad Paid For by: Nisswa Tax Service

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economy

SKILLS FOR SUCCESS: Pequot Tool’s Tim Walker and Jason Krueger (left); Aurelius Manufacturing’s welding lead Aaron Geving with owner Loren Nelson.

Upskilling Struggling to find new hires? Manufacturers are training the workers they have for new skills. By Gene Rebeck | Photography by John Linn

Jason Krueger saw an opportunity to take on a bigger role at Pequot Tool & Manufacturing. And that’s been good for both Krueger and his employer. Located in Jenkins, a few miles up the road from Pequot Lakes, Pequot Tool produces a broad and ever-changing array of custom metal parts for customers in aerospace, medical equipment, firearms and other sectors. Hired three years ago, Krueger began as a quality support technician, inspecting parts before they shipped out. He enjoyed the work but also noticed that no one in his unit was communicating with employees about which tasks they should focus on during the workday. What was needed was someone who could oversee the quality support team. A manager asked Krueger if that would be something he’d be interested in, and he was willing to give it a shot. After hours of training in both technical matters and leadership skills, Krueger became quality support team lead in June. He now schedules shipments and inspections while providing guidance to people who are doing the kind of work he had done when he started.

As businesses and their equipment become more technically and mechanically advanced, workers need to update their skills. A survey conducted last year by the business consulting firm Enterprise Minnesota found that 67 percent of companies reported difficulty filling open positions. Unfortunately, manufacturers in particular are finding it challenging to get the skilled employees they need. That’s why Pequot Tool and other employers are turning to what’s called “incumbent worker training”—ramping up the skills of workers they already have. “I think every manufacturing business does incumbent worker training in some form or another,” said Reggie Clow, owner of Clow Stamping in Merrifield and a member of the Initiative Foundation’s board of trustees. “It’s especially important in rural areas, where the labor pool has greater limitations than metropolitan areas.” The Initiative Foundation supports worker training by convening quarterly meetings with regional higher education leaders to find opportunities and to add value to their respective educational programs. The Foundation also provides business technical assistance of up to $5,000 for eligible business partners, and it’s a CONTINUED ON PAGE 16

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founding funder and partner of the Bridges Workforce Academy. The Bridges annual Career Exploration Day event showcases more than 150 regional high-demand careers and provides kids from 24 area high schools with hands-on demonstrations, simulators and breakout sessions. The 2016 event is March 4 at Central Lakes College.

Training Skills and Leadership

Tim Walker, employee development coordinator at Pequot Tool, said his company is responding to three primary factors. One, of course, is the shortage of skilled workers. “That’s especially acute when you get into a rural economy,” he said. In addition, “we are committed to staying on the cutting edge of manufacturing technology. Every time we bring in a piece of new equipment, we need to integrate that.” Another factor, related to the worker shortage, is motivating and retaining employees. Pequot Tool’s training objectives fall into three categories. There’s safety training (safe lifting, for instance). There’s also training that’s intended to boost technical expertise. Then there are “soft skills”— Walker said it’s difficult to find employees who are technically adept and have leadership-level people skills. Krueger, for instance, has taken training courses in communications techniques and conflict resolution. Pequot Tool has been training employees for years in a variety of ways, both internally and through courses offered by community colleges. According to Walker, two newer programs have become especially noteworthy. One is the training funded by an advanced-manufacturing education grant through the U.S. Department of Labor. The training is being administered via the Advanced Manufacturing Education Alliance, a regional consortium of technical colleges, employers, government entities and other partners whose goal is to boost manufacturing education and employment in Central Minnesota. A benefit of the grant is the establishment of “mediated telepresence” classes, which are broadcast to numerous manufacturing facilities throughout Central Minnesota. These classes, which cover a variety of manufacturing topics, allow a single instructor to interact with students at these facilities in real time. Pequot Tool also is developing what Walker called its “advanced machine training project,” which attempts to identify every objective skill an employee needs to do their job effectively. Pequot Tool needs the type of skills Krueger has developed around quality management. It also needs machinists adept in advanced materials such as Inconel, a high-tech “superalloy” used in the aerospace industry that is a “very difficult material to machine,” according to Walker. Having this capability, he added, gives Pequot “a foot in the door to some very high-end companies.”

A Boost Up the Ladder

Loren Nelson, owner of Aurelius Manufacturing in Braham, faces challenges similar to those at Pequot Tool. Aurelius is a custom

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manufacturer of hydraulic cylinders for makers of equipment used in a variety of industries. Among its 65 employees are machinists, welders and assemblers. Being in a rural location such as Braham, where Nelson has been an active supporter of the Initiative Foundation-supported Braham Event Center, “we sometimes have to grow people rather than hire,” Nelson said, adding that “we have better luck bringing in people who don’t have the skills and having them work and learn.” Over the years, the company has employed a variety of training programs. “Most of what we do is teach each other,” said Nelson. But such an approach needs to be augmented with courses that go deep into broader manufacturing topics. That’s why Aurelius signed on to the Advanced Manufacturing Education Alliance incumbent worker training program through Pine Technical & Community College. According to Nelson, 13 employees have enrolled in classes that include blueprint reading, safety awareness and quality practices.The employees are paid for the class time. Nelson would like to see more Alliance classes available on specific skills such as computer numerical controlled (CNC) programming and welding theory. These are programs, he said, “with tremendous potential for moving a worker up from $12 an hour to $20 an hour.”

Ready to Grow

Another source of incumbent worker training funds in the region—and elsewhere in the state—is the Minnesota Job Skills Partnership (MJSP), a program of the Minnesota Department of Employment and Economic Development (DEED). Last year, MJSP funded 53 training projects with grants totaling $8.3 million. One of its recent grantees is Alexandria Technical & Community College (ATCC), which was awarded $242,819 in June to fund customized training for Felling Trailers, a manufacturer of light and heavy duty-trailers and parts for agricultural and industrial uses. The company currently employs more than 200 workers in its Sauk Centre and Litchfield facilities, and it would like to hire more. But it also realizes it has to train existing employees to get the “right-skilled workforce,” said Felling Trailers CEO Brenda Jennissen. With part of the funding, ATCC purchased a virtual paint simulation system that will enhance the skill level of Felling Trailers employees. “The technology on the painting side of our business is always changing,” Jennissen said. “We’re known in the industry for our very high-quality paint work, and we want to make sure we maintain that reputation.” Incumbent worker training can help position a company for growth. But there are other important benefits, too. “One of the most fun things about this is watching the guys become more and more capable,” said Aurelius Manufacturing’s Nelson. “Anything we can provide that so that they can grow and make more money—it’s wonderful.”

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community

SMOOTH RIDE: The 74,000-square-foot Isanti Indoor Arena is putting Central Minnesota on the map as a national BMX mecca.

On Track A new indoor BMX arena revs up a sport-friendly economy in Isanti. Lisa Meyers McClintick | Photography by John Linn

Andrew Strom was just 5 years old when he first strapped on a helmet, climbed onto a bike and churned through his first rollers on a packed-dirt bicycle motocross track. “I was amazed he could do it,” said his dad, Andy Strom of Cambridge. “He was barely into riding a bike.” That positive experience was all it took for Strom and his wife, Brenda, to start volunteering for Isanti’s Rum River BMX Association. Andrew kept going to the track to improve his speed and riding skills. He’s now 8 and one of more than 300 riders—including his 14-year-old sister Ally—who proudly call the new $2.3 million Isanti Indoor Arena their home base. The Initiative Foundation provided a $5,000 planning grant for the BMX arena. “We view this as a smart investment in economic development,” said Traci Tapani, a member of the Initiative Foundation’s board of trustees who hails from nearby Stacy. “It’s a great way to help strengthen the community in their efforts to attract and retain young people while supporting their vision to become a recreation destination.” The track has been humming since it opened in March. This fall, when rain and wintry temperatures shut down outdoor tracks elsewhere in the state, Isanti (pop. 5,400) will become the new hub, 18 Initiative Foundation Quarterly ifound.org

drawing hundreds of people to the 74,000-square-foot arena each weekend. Giant overhead doors open the building up on three sides on balmy days. They also can be closed to protect riders from cold, rain and snow. More than four dozen 12-foot-high windows keep the arena well-lit and airy. The new facility is a huge boost for Isanti, putting it on the map as a Midwestern BMX mecca and a national leader for the sport. The building, owned by the city and leased to Rum River BMX, attests to the community’s support for recreation. Area leaders see it as a strong investment in their youth, who will have a competitive advantage with a year-round track for practice. “Recreation has always been important to the Isanti community,” said Mayor George Wimmer. “I look at a recreational facility as an economic development tool.” Isanti Indoor Arena is located at Bluebird Park, which also boasts an outdoor hockey rink, ice rink, skate park and basketball court. (Baseball diamonds will be added in the future). The city is in the process of adding close to 38 acres to the park and, as part of the BMX project, is creating a rain garden with walking bridges to control stormwater.

“ A recreational facility is an economic development tool for the Isanti community.” Attracting Visitors

The city of Isanti helped Rum River BMX with its outdoor track over the years, knowing it was a good way to bring visitors to the community. That steady relationship, coupled with the regional allure of BMX and the commitment of track volunteers, all factored into the decision to build the arena. BMX USA granted Isanti exclusive rights to an indoor facility within a 100-mile radius for the next 10 years, Wimmer said, with the possibility to renew that agreement. The arena adds to the city’s recreational attractions, which include the second-largest soccer complex in the state, a rodeo and baseball tournaments. Wimmer said Isanti typically attracts 2,000 to 5,000 visitors a weekend for its events spring through fall. The city draws hockey players during the winter, but it needed something else to keep the number of visitors steady year-round. “Indoor BMX helps fill that gap and makes us more attractive for hotels and other businesses,” said Wimmer. “We’re an event city. We really work to bring people into the community.”

Building Buzz

Until the arena opened, Minnesota BMX competitors didn’t have a year-round track like the ones enjoyed by bikers in southern states such as Arizona, California and Florida. “This is a game changer for our riders,” said Kevin Riedemann, Rum River BMX president. “The buzz is that within a year, our Minnesota kids are no longer going to be at a disadvantage.” That’s especially true for Central Minnesotans, who in addition to Isanti’s new arena, have St. Cloud’s Pineview Park BMX, an outdoor track that was home base for 2012 Olympian and professional BMX rider Alise Post. Rum River BMX already was among the top 10 track nationwide before the roof was built. “I think we can get into the top spot nationally,” said Riedemannn. “We’re doing all the right things with a quality program.”

Staying for Days

When the indoor arena had its grand opening in March, people came from 10 different states and Canada. Riedemann estimates on a typical summer week, the track brings close to 1,500 people from a 30-mile radius to Isanti. They have about 150 riders per race twice a week and close to 500 spectators. When cold weather or rain closes the region’s outdoor tracks, they’ll have riders coming from a 60- to 70-mile radius two to three times a week. Bigger events, such as Minnesota’s BMX state finals in August, can draw up to 4,000 visitors. “We’re bringing in more people from further away, and they’re booking hotels and they’re staying two to three days,” said Riedemann, who is grateful to no longer be diligently watching the weather and needing to cancel races. “There’s a big economic impact.” That’s also why Isanti is hoping for its own hotel. That would be happy news for other area businesses, including SnoBear, a new startup that will make all-terrain track vehicles that are especially popular for ice fishing. Wimmer said that other economic development initiatives are in the works, although it’s too early to make those plans public. But he does have this to say about his town: “It’s going to be a great two-year stretch for Isanti.”

KEVIN RIEDEMANN: “We’re bringing in more people from further away, and they’re booking hotels and staying two to three days.”

WHAT IS BMX? BMX is a type of off-road, sprint bicycle racing. The sport dates back to the early 1970s when Southern California kids began using Schwinn bicycles to imitate the moves of favorite motorcycle racers. In 2008, the sport was sanctioned by the Olympics.

3RD QUARTER 2015

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3RD QUARTER 2015

A town, a church and a company discovered that conserving energy can fuel a more sustainable future for Central Minnesota. Hereâ&#x20AC;&#x2122;s how they did it.

22 Initiative Foundation Quarterly ifound.org

“ The most important thing people have to remember is when we’re supporting renewables, we’re

”

supporting our children’s future.

GOING GREEN: Royalton Mayor Andrea Lauer is a booster for the town’s energy policies, including solar panels atop City Hall.

By Laura Billings Coleman | Photography by John Linn

WITH FURNACES TURNED OFF FOR THE SEASON, AND GAS PRICES DOWN BY MORE THAN DOLLAR A GALLON, IT CAN BE EASY TO FORGET HOW MUCH CENTRAL MINNESOTA’S FORTUNES CAN TURN ON THE COST OF ENERGY. But as thousands of households and businesses discovered during a spike in propane prices through the winter of 2013-14, high energy costs can stress household budgets and sap business profits in the space of a single season. A Congressional report on the impact of the propane crisis found that families in the Midwest spent an additional $561 million on propane fuel that winter, compared to the average amount spent over the previous five winters—$71 million more in Minnesota alone. In fact, energy efficiency is crucial to economic development in the region, according to Don Hickman, vice president for community and economic development at the Initiative Foundation. “The two things that have been most difficult for the private sector to control or predict over the last decade have been health care costs and energy costs,” he said. “So if you can accurately and affordably manage your energy costs, you have a leg up on the competition.” As the following profiles point out, efforts to save energy can be fueled by entrepreneurship, good fiscal policy and even faith. But anything communities,

companies and nonprofits can do to cut energy usage yields the same result—a more sustainable energy future for Central Minnesota.

ROYALTON:

Simple Switches Save Taxpayer Dollars

When it comes to stretching taxpayer dollars, Royalton has seen the light. Just one month after the city of 1,242 made the switch from incandescent to LED traffic lights, Mayor Andrea Lauer saw the potential for savings—and a more sustainable city budget—right away. “When I got our first bill after making the switch, we’d significantly reduced our kilowatt hours,” said Lauer, “But more importantly, we cut our bill in half.” Just a few years since that simple switch, Royalton has added solar panels to capture renewable energy right from the roof of City Hall and an innovative recycling program that keeps waste oil from contaminating area waterways. There’s also a new “dark sky compliance” ordinance that cuts light pollution and lets the stars shine a little brighter over Royalton’s corner of the north woods. Yet, even as this small town on the Platte River gains regional recognition as a “green” community to watch, Lauer

3RD QUARTER 2015

“ Energy costs will

continue to go up, but we’ll continue to save.”

MAYOR ANDREA LAUER: “We’re in this for the long haul.”

admits that Royalton’s environmentally friendly practices were first fueled by a desire to save money in the wake of the recession. “In 2006 and 2007, cash was flowing, and everything was great, but once the economy tanked, cities large and small were trying to find ways to stretch their dollars,” Lauer said. “There was a lot of buzz in our region about whether energy efficiency, renewable energy and sustainability could be a way to jumpstart our local economies, while doing something that would be really good for us.” Inspired by a series of sustainability-focused community gatherings hosted by the Initiative Foundation, the Southwest Initiative Foundation and the Region Five Development Commission, Royalton started small, performing energy audits on all city buildings. The town switched from incandescent to LED bulbs, which cut kilowatt hours by 16 percent. “That may not sound like a lot, but when you’ve got a general fund of around $150,000 and you can save a few thousand dollars, it’s a great deal,” said Lauer. “Energy costs will continue to go up, but we’ll continue to save.” At a presentation given by Dan Frank, the Initiative Foundation’s senior program manager for community and economic development, Lauer learned their efforts could qualify Royalton as a “Minnesota GreenStep City,” a voluntary challenge, assistance and recognition program of the Minnesota Pollution Control Agency and other partners that helps cities achieve their sustainability and quality-of-life goals through a series of best practice policies. Through the program, Royalton learned about a grant opportunity that has helped pay 40 percent of the costs of installing a solar array 24 Initiative Foundation Quarterly ifound.org

on top of City Hall, with a unique financing structure that allows the city to lease the roof to a third-party LLC that receives the tax credits and depreciation costs over time. Combined with a $16,000 rebate from Minnesota Power, Lauer said, “the project has cash flowed from the beginning. We pay about $1,500 a year for the solar panels, which save us about $1,600 a year, so it’s budget neutral. And once it’s paid off, the savings are ours.” Royalton, a partner in the Initiative Foundation’s Thriving Communities Initiative, keeps residents up-to-date on its energy efficiency efforts through a regular e-newsletter that encourages businesses and homeowners to consider solutions of their own. Lauer says the community’s support for Royalton’s energy efficiency efforts seems to have strengthened as the savings add up. “We’ve got people who will say ‘Why on Earth are you doing this?’ But there are many more who tell us this is really cool,” she said. “Either way, we’re in this for the long haul.”

CROSSLAKE PRESBYTERIAN: Saving Energy as an Act of Faith

The Bible contains many verses justifying the virtues and eternal rewards that come from caring for the Earth. But as Rev. Roger Grussing has learned from years of leading the Energy Task Force at Crosslake Presbyterian, inspiring a congregation to embrace the long-term value of investing in more expensive energy solutions is often an act of faith. Since the Brainerd Lakes area congregation opened its first worship facility in 2001, the church’s conservation-minded

SIGN OF GRACE: Crosslake Presbyterian is one of just 20 churches nationwide to win a gold medallion Certified Cool Congregations award for building practices that achieve significant carbon reductions.

construction choices have exceeded code requirements—an eco-stewardship ethic that “asks people to let their values weigh more heavily on projects that may not look like a super good deal economically,” said Grussing, Crosslake’s emeritus pastor. A geothermal system heats and cools Crosslake Presbyterian’s woodsy campus, which includes a new Fellowship Hall dedicated this spring. The church also buys wind-generated electricity from Crow Wing Power and recently activated a 21-panel, 5-plus kilowatt solar array on the facility’s south-facing roof. Installed by the Rural Renewable Energy Alliance, an Initiative Foundation partner, the solar panels make it possible for the church roof to soak up nearly 40 kilowatt hours of energy during a cloudless day in May. While a page on the church’s website provides real-time proof of the renewable power the solar panels capture, Grussing says the church may not see a return on that $26,000 investment for another 17 years—a bottom line that made the project a hard sell. “There was real conflict, because if you look it from a green eyeshade perspective it wasn’t a good pay back,” says Steve Roe, mayor of Crosslake and a member of the congregation. “Energy use is so abstract, but we took it on from the standpoint of a mission that all of us have an environmental responsibility to our neighbors and children, and that the issue is bigger than financial. Being a numbers guy, that’s finally what put me on track with it.” While guests to the church often comment on the solar panels and even compliment the church leadership for their mission, Roe says, Crosslake’s energy efficiency initiatives haven’t enjoyed universal support from the congregation. “It’s an interesting challenge to get people to think about what we’re going to do when fossil fuels run out. It’s not an easy sell.’’ To strengthen the economic case for environmental stewardship—and to prove the value of energy efficiency to the wider faith-based community—Crosslake Presbyterian has taken a data-driven approach to its community decision-making. For instance, when considering whether to sell or develop 10 acres of adjacent forest land, the community calculated what the loss of wooded area would add to the congregation’s carbon footprint, and decided to leave the parcel untouched.

CENTRAL MN GreenStep Cities CITY JOINED Brainerd 3/1/2013 Breezy Point

6/1/2010

Delano 6/1/2011 Elk River

10/1/2010

Hanover 1/1/2012 Leech Lake Band of Ojibwe

8/1/2014

Nisswa 10/1/2012 Pierz 9/1/2014 Pine City

3/1/2014

Pine River

5/1/2010

Rogers 12/1/2011 Royalton 9/1/2010 Saint Cloud

6/1/2010

Sartell 1/1/2014 Sauk Rapids

7/1/2012

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“ All of us

have an environmental responsibility to our neighbors and children.”

ECO-STEWARDS: Crosslake’s pastor emeritus Rev. Roger Grussing with current pastor Rev. Kate Stangl.

One of just 20 churches nationwide to win a Gold Certified Cool Congregations award for building practices that achieve significant carbon reductions, Crosslake Presbyterian is part of a growing number of faith-based institutions looking at climate change and environmental sustainability as a social justice effort that demands support from the pews. Last year, 77 Minnesota churches took part in a National Preach-In on Climate Change, organized by Interfaith Power and Light, a nationwide environmental stewardship movement with a chapter of its own in Minnesota. Their message got a big boost in June, when Pope Francis released a sweeping 184-page encyclical naming climate change one of the principal challenges facing humanity, and calling for developed countries to curtail consumption of nonrenewable energy. As for Crosslake Presbyterian’s flock of nearly 100 members, Grussing believes the last decade of discussion about energy efficiency has raised consciousness about conservation. “For any small congregation, there’s a real competition for dollars between hunger and peacemaking and all of the good causes that churches want to be involved in,” Grussing said. “But if you talk about it in the language of ‘giving more,’ that seems to be a tipping point. People start to see that this work does fit their values.”

EVER CAT FUELS:

Sowing and Recycling New Sources of Power

Last summer, Minnesota became the first state in the nation to mandate that all diesel fuel sold at the pump contain at least a

10 percent blend of biofuel. While this policy shift toward more renewable energy sources is great news for companies like Ever Cat Fuels, a biofuel producer based in Isanti, Clayton McNeff, Ph.D., the company’s chief science officer, believes the trend could benefit nearly everyone’s bottom line. “We use 63 billion gallons a year of diesel fuel in the United States, about 40 percent of that for transportation and 60 percent for heating, so it really does touch all of our lives in a very direct way,” he said. “Biodiesel really is a replacement for petroleum diesel that can lower costs for many businesses.” Ever Cat Fuels, a loan partner of the Initiative Foundation, has been producing three million gallons of biofuel every year since 2009, much of it recycled from grease collected from restaurants and food suppliers, and refined through a proprietary process that requires no additional water or harsh chemicals. “Initially, we were only selling our fuel to petroleum blenders,” McNeff said. “But about three years ago we gained the capability of blending our own product with petroleum and selling it directly. At this point, we’re very engaged with the community and anyone who can take truckload quantities of fuel is a potential customer for Ever Cat.” While making the shift to other renewables like solar and wind can take time before companies see a return on investment, McNeff points out that “the payback on biodiesel is immediate. We saved one mining operation over $100,000 in one year, because we can sell it to them directly, cheaper than petroleum.” Another mining company that uses Ever Cat’s biodiesel in 40 pieces of off-road equipment, including quarry trucks, front end loaders and drills, CONTINUED ON PAGE 48

26 Initiative Foundation Quarterly ifound.org

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TO MARKET: Sprout has helped grower Barry Thoele reach a broader customer base.

Food hubs help farmers scale up and improve their bottom lines. By Elizabeth Foy Larsen | Photography by John Linn 28 Initiative Foundation Quarterly ifound.org

“ We can’t compete in international markets, so food hubs allow smaller, local farmers to scale up and become economically viable.” Barry Thoele loves working the land. He started

raising bait minnows in 1992 and eventually expanded into produce, growing anything from romaine lettuce to kale to cherry tomatoes that are so sweet he says moms from across the region serve them to their kids for treats. His farm, called Barry’s Cherries —named for those delicious tomatoes—sits on 22 acres in Staples. But because Thoele also uses hydroponics, which replaces soil with a nutrient-rich mineral and water solution, he’s been able to boost his capacity well beyond what the land alone would provide and extend his growing season with 7,000 square feet of plastic-wrapped high tunnels and a green house. “I do a lot of research into sustainable practices,” he said. “It’s my life’s dedication.” Thoele isn’t as adept at the hustle and bustle involved to get those products to new customers. While he grows far more vegetables than he could personally sell at the farmers markets he attends, Barry’s Cherries is too small an operation to attract large-scale customers such as school districts, senior residences, restaurants and hospitals. Luckily for Thoele and other small and mid-size growers like him, there’s a new way for their food products to reach a broader customer base. Called food hubs, these regional businesses and nonprofits manage the aggregation, distribution, billing and marketing of products from local and regional farmers to wholesale, retail and institutional customers. A farmer growing basil, for example, can now take her weekly yield to a food hub, where it will be combined with other farmers’ basil to satisfy a nearby restaurant’s need. It’s a possible solution that excites regional economic experts. “Central Minnesota has a short growing season and many of our counties have marginal soil quality and limited production capacity,” said Don Hickman, the Initiative Foundation’s vice president for

community and economic development. “We can’t compete in international markets, so food hubs allow small, local farmers to scale up and become economically viable.” The Foundation has provided funding for food hub feasibility studies in the region and supports initiatives that benefit small farms through its Family Farm Fund.

GROWING BUSINESS

Today, most of the food we buy at the grocery store is grown and raised on large corporate farms in California, Florida and Mexico, according to a report by the United States Department of Agriculture’s Economic Research Service. Because mid-size and small commercial farms can’t compete with the big farms’ prices or distribution reach, they have typically relied on direct-to-consumer channels, including community sponsored agriculture (CSA) and farmers markets. While the popularity of those markets has certainly been a win for customers seeking the most flavorful and nutritious food available, it hasn’t always meant economic success for farmers. “A grower could do three or four farmers markets a week, which involves a lot of work harvesting, sorting and transporting the product to the market, which could be more than an hour away, all the while keeping it fresh,” said Greg Schweser, an associate program director for the Regional Sustainable Development Partnerships (RSDP) at University of Minnesota Extension. “If it’s raining or the market isn’t always crowded, you might have a hard time making your money back.” Selling through a food hub expands and diversifies a grower’s business model. As the enthusiasm for the local food movement

3RD QUARTER 2015

“ If people move here and buy a small farmstead, they’ll come into town to sell their produce. They’ll also buy their groceries and send their kids to the local schools.” moves beyond the individual shopper to restaurants and other large institutions that serve meals, small farms, many of which have been struggling since the Farm Crisis of the 1980s, may now have an opportunity to strengthen their bottom lines. “There isn’t just one way to grow food,” said John Mesko, executive director of the Sustainable Farming Association and a Princeton farmer who raises pork and beef. “Food hubs are critical if we are going to have a diversity of models for food production.” Creating a market for locally produced foods keeps more money in the community and has the potential to increase revenues. The annual resident food expenditures in Central Minnesota add up to almost $1 billion each year, according to the USDA Economic Research Service. And while current Minnesota food hubs still rely on donations and grants to stay in business, a National Food Hub Collaboration survey found that food hubs create an average of seven full-time jobs and five part-time jobs within the hub itself. That extra income could in turn boost the prospects of the towns that surround the small farms. “Small businesses have a bigger impact in rural areas than they do in cities,” said Carol Anderson, executive director of Community Development of Morrison County. “If people move here and buy a small farmstead, they’ll come into town to sell

their produce. They’ll also buy their groceries and other things they need. And if they have kids, they’ll send them to the local schools.”.

FILLING A NEED

While there currently are only a handful of food hubs in Minnesota, one of the leaders is Sprout, a Brainerd-based nonprofit founded by Arlene Jones, a grower who owns The Farm on St. Mathias. Jones started Sprout in 2012, when the food she grew on her farm could no longer meet the needs of the Brainerd Public Schools, where she was selling her produce as part of a farm-to-schools initiative. So she reached out to other farmers, including Amish and Latino growers, to help her satisfy the demand. Today, Sprout sells produce and other products from 50 farmers in eight counties to large-scale customers, including school districts and regional restaurants and resorts. Sprout is currently located on Jones’ farm, although that will change once the government approves the conversion of the former Crestliner boat factory in Little Falls into Sprout’s new headquarters. When complete—a grand opening is planned for sometime around Christmas—the facility also will have a commercial kitchen, where growers can cut, chop and blend their products to make them more readily suit customers’ needs. There also will be a year-round farmers market that will sell anything from kohlrabi to pumpkins to Christmas trees, as well as locally made crafts such as quilts and jewelry. CONTINUED ON PAGE 40

Brooten Farmers Market Brooten Lake Area Growers Market Brainerd Little Falls Original Farmers Market

Little Falls

Little Falls Farmers Market

Little Falls

Market Monday/Sartell Winter Market

Sartell, MN

Onamia Area Farmers’ Market Onamia Paynesville Farmers Market Paynesville

A SAMPLING OF CENTRAL MINNESOTA FARMERS MARKETS

Pequot Lakes Farmers Market

Pequot Lakes

Princeton Farmers Market Princeton St. Cloud Area Farmers Market II

St. Cloud

St. Cloud Area Farmers Market I

St. Cloud

St. Joseph Farmers Market

St. Joseph

Wadena Farmers Market Wadena Source: United States Department of Agriculture; http://search.ams.usda.gov/farmersmarkets

30 Initiative Foundation Quarterly ifound.org

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Bloom(Trans)planted WHERE YOU ARE

Central Minnesotaâ&#x20AC;&#x2122;s newcomers are an engine of innovation and economic vitality in Greater Minnesota. By Andy Steiner | Photography by Bill Jones

32 Initiative Foundation Quarterly ifound.org

Members of the Agua Gorda cooperative plant onion seeds in Long Prairie, Minn. They work around full-time jobs, dreaming of owning their own farms. (Tom Meersman, Star Tribune photographer)

“ The growth in the immigrant community is clearly benefitting our school district, and it has been a definite economic benefit to our entire community as well.”

For as long as anyone can remember, the people of Long Prairie have always known how to make things grow. The town, county seat of Todd County in Central Minnesota, has long been a hub of the region’s agriculture and meatpacking industries, so it was distressing when the community began to wither like a blighted garden. Long Prairie’s mostly white population was aging, and young families weren’t moving in to fill in the gap. The local economy struggled. Stores shut down, school enrollment suffered and major employers like Long Prairie Packing Company were having a hard time finding workers. Residents worried that their once-thriving community was in distress. Then came the immigrants. Beginning with a trickle in the mid-1990s, hundreds of workers, mostly from the small town of Agua Gorda in the Michoacán de Ocampo region of Mexico, began moving to Long Prairie, attracted by the prospect of steady meatpacking and agricultural jobs. By the early 2000s, many of these newcomers had settled into the community for good, raising families, buying houses, joining churches, paying taxes — and enrolling in schools. By 2015, more than half of the children in Long Prairie’s public elementary school were Latino. Though this demographic shift wasn’t without controversy, the citizens of Long Prairie have come to welcome these new members of the community. “The Latino community is revitalizing this town,” said Brenda Thomes, Long Prairie city administrator. “The growth in the immigrant community is clearly benefitting our school district, and it has been a definite economic benefit to our entire community.” Jaime Villalaz, a greater Minnesota business development specialist for the Minneapolisbased Latino Economic Development Center, has worked with a number of Mexican immigrants to set up businesses in Long Prairie’s struggling downtown. He believes that without the immigrant population, the city would be on much tougher economic footing. “This recent wave of immigrants is key to Long Prairie’s survival,” he said.

AN ECONOMIC IMPERATIVE

Long Prairie isn’t the only Central Minnesota city to see significant change caused by an influx of immigrants and refugees. The region, like the state itself, is in the midst of a major demographic shift, away from the majority-white population of the past to a multiethnic community that better reflects the world’s population. By 2040, nearly three in 10 Minnesotans will be people of color, according to “Minnesota’s Tomorrow: Equity is the Superior Growth Model,” a report by the national research institute PolicyLink. Central Minnesota’s ability to achieve sustained growth and prosperity hinges on how hard communities in the region work to welcome newcomers. As the population ages, core businesses struggle and the ethnic makeup of the state diversifies, cities and towns will face an economic imperative to create an environment that not just tolerates but also celebrates diversity. While the moral obligation to welcome newcomers may motivate many residents in Central Minnesota, others may first recognize the economic benefits of new talent and

3RD QUARTER 2015

“ We are bold people who sought major change to make a better life. We are just the kind of people who can help move a community forward.” workforce innovation, said Kathy Gaalswyk, Initiative Foundation president. “Then they’ll get to know their new neighbors. Central Minnesota needs a greater cultural diversity to survive economically. But we will also be much richer as a culture.”

YOUNG AND FULL OF PROMISE

Urban migration and the aging population of greater Minnesota has long been a concern of government officials and community leaders. Without young people to operate businesses and schools, run for elected office and provide medical care, communities struggle to survive. Immigrants like the Mexican workers in Long Prairie tend to be working-age people with children. Their busy families have been key to the town’s revival. That’s why it’s important for towns to see population growth in immigrant and refugee communities as an opportunity for growth and prosperity. “In Minnesota, the state demographer can show us a dramatic drop in working-age adults that will hamper the economy if it’s not offset in migration,” said Gaalswyk. “Nearly every sector in our region is concerned about access to skilled workers. If we don’t figure out ways to welcome anyone bringing capacity to our region in the form of families and young workers, we will quickly lose the race.” Mayuli Bales, a trustee of the Initiative Foundation and the former director of Casa Guadalupe Multicultural Community, a nonprofit social service agency dedicated to serving Central Minnesota’s Latino population, says the energy immigrant communities bring to the region should not be discounted. “Immigrant communities are younger and full of promise,” she said. “Instead of thinking of immigrants as something to fix or help, the best view to take is to see immigrants for who we are: We are very entrepreneurial. We are the state’s human capital.” Economists have extensively studied the strength created by a diverse workforce, according to Alfonso Wenker, Minnesota Council of Foundations director of program strategy and racial equity. “If you read Harvard Business Review or Fast Company, all of the writing about corporate diversity suggests that companies that have diversity across all lines perform better,” he said. Central Minnesota can learn valuable lessons about welcoming diversity from its Native American communities, who, despite being our region’s original residents, have to navigate racism and prejudice. Cultural strength comes not from trying to mold people into one dominant tradition, said Susan Beaulieu, a member of

ABDUL KULANE: ”We are making headway, connecting to the greater community.” (Leila Navidi, Star Tribune photographer)

the Red Lake Band of Chippewa and board chair of Native Youth Alliance of Minnesota. Communities are stronger when all people feel free to express their unique cultural identities. “Instead of expecting people to assimilate, we need to be thinking about how we welcome the different gifts everybody brings,” Beaulieu said. “Ecosystems that are monolithic die, but ecosystems that are diverse are strong. With diversity, an ecosystem has the ability to bounce back. The more we can embrace and truly welcome diversity, the stronger we will be.”

RECIPE FOR INNOVATION

When Abdul Kulane arrived in St. Cloud in 2006, he joined a small community of Somali immigrants who came seeking education and jobs. Somali people had begun immigrating to the city a few years before, and the reaction was not always welcoming. “In 2000, Somalis here would tell you that they weren’t able to rent an apartment,” Kulane said. “They were living in their cars. They were mocked.” Kulane says that part of him understands the CONTINUED ON PAGE 42

34 Initiative Foundation Quarterly ifound.org

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Building Credit, Building a Nation An innovative financial program aims to boost the Leech Lake Band of Ojibwe’s economic self-sufficiency. By Gene Rebeck | Photography by John Linn

For Missy Bowstring, a member of the Leech Lake Band of Ojibwe, Leech Lake Financial Services (LLFS) has been more than a place to get a personal loan. She received the loan in May, but she often gets in touch for other kinds of financial help.

36 Initiative Foundation Quarterly ifound.org

“I can always call LLFS and ask questions, even if I don’t need money,” Bowstring said. “I can ask credit questions or other financial questions.” While it’s not a bank, LLFS does provide loans to Band members. LLFS also has expanded its services to include workshops on credit building and other financial topics. Bowstring attended one and found the experience “awesome.” She’s now putting what she learned to work in managing her domestic finances. LLFS, meanwhile, is pursuing certification as a federally designated Community Development Financial Institution, or CDFI. That could open up numerous economic opportunities among a people who could make good use of them. When certified, LLFS will be the second CDFI in the region, along with the Initiative Foundation. It’s a designation that has many benefits to Central Minnesota. “A CDFI certification affirms that as a financing entity we are meeting our mission of promoting community development through services primarily in target markets, including low-income

MISSY BOWSTRING: “I can always call LLFS and ask questions.”

areas,” said Lynn Bushinger, the Initiative Foundation’s chief financial officer and treasurer. A CDFI certification is important to the region’s economy, she added, “because it helps us draw resources from outside the region into our 14-county service territory.” This helps the foundation recapitalize its loan fund when needed.

A Fresh Start

For the Leech Lake Band, CDFI certification will add to its existing financial service capabilities. The Band has long provided loan service to its members. It also administered a small-business revolving loan fund from the U.S. Department of Agriculture dedicated to helping Band members “who for a variety of reasons weren’t ready to make use of the traditional banking system, or had tried and were rejected,” said Kyle Erickson, an LLFS director and Blandin Foundation program officer who has a background in banking. Despite hard work and the best of intentions, the loan fund never quite took off. A new approach was needed, and that’s what

Leech Lake Band member and attorney Robert Aitken came in to provide when he was named executive director of LLFS in November 2012. Before becoming an attorney, Aitken worked in human resources for the Leech Lake Band in the 1990s. He knew how the tribal loan process had worked—and that it needed some repairs. What attracted Aitken to running LLFS was the opportunity to create a financial institution that would be “a backbone of nationbuilding.” According to a 2003 study conducted by the University of Arizona and Harvard University, a successful reservation is one with low unemployment and crime rates, along with high wage rates. One commonality is a strong financial institution to which members had access. When he came on board at LLFS, Aitken found that his legal background was helpful “for the loan collections that needed to get done and cleaned up” to help prepare LLFS to become certified as a CDFI. Among other virtues, certification will allow LLFS to partner with banks. It also will help it raise money from foundations and

3RD QUARTER 2015

other sources, including state and local governments. This kind of access is “critically advantageous to funding new businesses,” Aitken said. For LLFS to become certified, it needed to demonstrate that it had the stability to become a financial institution, Aitken said. Some council members worried if an independent LLFS would be best in fully serving the entire community. Aitken added that it’s not “a knock” on the Tribal Council—simply an acknowledgement that “every two years, we have an election,” which results in a changing leadership structure and different political goals. In short, LLFS needed to become independent of the band and have a board, computer system and payroll “clearly separate from the Tribal Council,” Aitken said. The process began in 2010. In September 2014, LLFS became officially independent. “It was a very courageous step the Tribal Council took in allowing us to become separate,” Aitken said. To reassure leadership, LLFS had an audit done after its first month “for the Tribal Council to look at to make sure that everything was set up properly and that we have the controls in place.” Aitken added with a laugh: “We had to overcome their concern that we’d screw it up.” Currently, LLFS offers consumer loans for those employed with the tribal government, which includes employees in the Band’s casino, health service, police force, technical college and so on. The applicant needn’t be a tribal government employee, but he or she needs to have a job to obtain a loan.

New Collateral

LLFS benefits the lendee in ways that extend far beyond funding. Having worked in a lending department of a Cass Lake bank, Band member Erickson frequently saw “people who wanted to build or repair a credit history but didn’t have any usable collateral” to secure the loan. That’s why Aitken advocated for a new type of collateral for LLFS, where any member who’s an employee of a Leech Lake entity may secure a loan using their balance of personal-leave hours. “It has worked fantastically,” Erickson said. “It’s basically securing a form of cash.” While some members use the loans for bills, cars and housing, others “take one out purely for the purpose of building their credit.” As a condition for receiving any kind of loan, the financial services team introduced a program for teaching Band members about credit and financial management. Erickson described it as a “Credit 101 workshop.” During these two-day workshops, participants “learn about factors that affect their credit scores,” he added. “They learn what bumps it up, what drags it down.” According to Aitken, that’s the kind of financial education few Band members receive. The response, he added, has been positive. In addition to the workshops, LLFS has made presentations on financial savvy at the local high school. After one presentation, Aitken said, “every one of the juniors and seniors opened savings accounts” at the area bank. The Initiative Foundation, which has worked with the Leech Lake Band since the Foundation’s inception three decades ago, CONTINUED ON PAGE 44

38 Initiative Foundation Quarterly ifound.org

What is a

CDFI? The Initiative Foundation is certified by the U.S. Department of the Treasury as a Community Development Financial Institution (CDFI), and Leech Lake Financial Services is applying for certification. A CDFI is a specialized financial institution that works in markets that are underserved by traditional financial institutions. It provides financial products that are distinctive to its target market, which are often economically distressed communities. CDFIs include regulated institutions such as community development banks and credit unions, and non-regulated institutions such as loan and venture capital funds. CDFI certification is a designation conferred by the CDFI Fund and is a requirement for accessing financial and technical assistance awards from the CDFI Fund through the CDFI Program, Native American CDFI Assistance Program and other sources designed to help support the organization’s established community development financing programs.

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PROMOTING HEALTH

On average, each fruit or vegetable purchased in the Midwest travels 1,500 miles from farm-to-plate, according to the Central Minnesota Food Hub Feasibility Study, produced in part by Happy Dancing Turtle, a Pine River nonprofit organization that promotes sustainable living. Central Minnesota has the capacity to replace a large percentage of out-of-state produce with locally grown fruits and vegetables. The shift would bring fresher food options to the region’s residents while potentially eliminating thousands of tractor trailer miles from the distribution chain, resulting in reduced carbon monoxide emissions. Having access to fresh fruit and produce instead of heavily processed foods also can improve the region’s health and wellbeing. As part of Sprout’s partnership with the Brainerd School District,

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students explore food and healthy eating choices by shucking corn, sampling kohlrabi and purple carrots and serving themselves at the salad bar. “It’s an amazing opportunity for learning about nutrition, where food comes from, and how to handle it,” said Colette Pohlkamp, food service director for Brainerd School District. In fact, improving the nutrition of low-income Central Minnesotans is a core value of food hub supporters. “We see food hubs as an important part of taking control of the food system and providing more food security,” said Jim Chamberlin, food and water security coordinator at Happy Dancing Turtle. In Staples, the Choose Health program at Lakewood Health System is a CSA that is “prescribed” by physicians to low-income residents who qualify for the program. “The medical community is increasingly recognizing that investment in healthy choices and good diet is far more cost-effective than treating the adverse outcomes associated with poor diet,” said Hickman. Along with weekly delivery of fresh fruits and vegetables, recipients get recipes, demonstrations and educational lessons about the value of good nutrition. That’s the kind of news that excites Barry Thoele. And that’s not just because he donates a portion of his produce to his local food shelf. “At one point I was using food shelves,” he says. “I want to pay it back.”

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negative reaction: “This was a very close-knit community of people who knew each other well. In St. Cloud, there was an emotional reaction to change. It is difficult to see people of a different religion, color, way of living move into your neighborhood. The reaction was not right, not welcoming, but I understand what triggered it.” That understanding and a willingness to do what it takes to become part of the larger community has made Kulane a respected leader in his adopted hometown. A graduate of St. John’s University, he runs his own online translation business, serves on three community boards, is a columnist for the St. Cloud Times and last year ran for city council. While he didn’t win the council seat during his first candidacy, he doesn’t rule out another run in the future. Kulane believes that life is easier for Somali-Americans in St. Cloud than it was when he first arrived, but there are still small-butvocal groups in town that continue to resist integration. “We are making headway, connecting to the greater community,” he said. “But there is an element that doesn’t see that we can add so much to St. Cloud.” Refugees and immigrants, Kulane says, are by definition “risk takers and entrepreneurs. We are bold people who sought major change to make a better life. We are just the kind of people who can help move a community forward.”

42 Initiative Foundation Quarterly ifound.org

Gaalswyk couldn’t agree more. “Newcomer communities,” like the Somalis of St. Cloud, may be just what the region needs to stay vital in the global economy. “Think about it. These are the very people who are best at adapting to change,” she said. “They are the recipe for innovation and vitality in Greater Minnesota.”

GROWING FUTURES

That spirit of innovation was in full force when a small group of Long Prairie’s Mexican immigrant community took a risk and decided to start their own vegetable farming business in 2012. Members of the group contacted Villalaz for help in writing a business plan, negotiating the loan and locating land on which to plant their crops. The group received a $5,400 loan from North Country Cooperative Development Fund and made a small profit of around $7,000 in its first year. The next year, with help from the city, they moved to a larger plot of land and made a profit of about $19,000. After signing contracts with Twin Cities businesses and co-ops, the group, which named itself Agua Gorda Cooperative, saw a profit of around $43,000. Since then, Agua Gorda Cooperative has purchased a tractor and other farm equipment, and now has plans

Percent People of Color for 2010 and 2040 to buy 54 acres of land just outside of town. Villalaz isn’t surprised by their success. “These are humble people who work on dairy farms and at the Long Prairie Packing Plant,” he said. “After they are done with their regular jobs they spend four to five hours every day working their farm. We have great hopes for the future of their business.” City Administrator Thomes says that success stories like this make her proud to be from Long Prairie. The city has made a commitment to building a community that welcomes everyone, and with businesses like Agua Gorda Cooperative, they are starting to see the fruits of their efforts. The Initiative Foundation has been an active partner, providing grants over the years to foster economic and community unity in Long Prairie. “At first there was a little bit of a struggle everyone, 3.5” x 2.5”welcoming | Maximum Fontbut Size: 30 pt things are coming around very nicely now,” Thomes said. “We’ve done a mural on one of our walls that shows the mixture of American, Latino and Amish coming together. It shows our cohesiveness and how, if we all support each other, our community will stay strong and grow.”

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Building Credit, Building a Nation CONTINUED FROM PAGE 38

Any Band member who’s an employee of a Leech Lake entity may secure a loan using their balance of personal-leave hours. provided $10,000 to help LLFS acquire books and other materials for its financial skills workshop. Initiative Foundation president Kathy Gaalswyk said the work in which LLFS is engaged allows people to pay bills and buy houses, but “in the end, it also helps individuals and businesses that can grow jobs and, ultimately, employ others in the community.”

Affordable Capital

Though now an independent entity, LLFS continues to work closely with the tribal government. For instance, the government’s payroll staff works with financial services team members on loan payments. Before, loans were managed by the tribal council and had to be paid back within a few months. Under LLFS, the payback period is a year. LLFS expects CDFI certification to be finalized this fall. In the meantime, it has been making consumer loans, and is now planning a commercial loan portfolio that will be quite productive for the community, Aitken said. LLFS has hired an additional loan officer to handle consumer loans. Aitken and another officer are starting to build the commercial side and complete the certification process. Aitken hopes that clients like Missy Bowstring will one day be interested in business loans. To him, that’s an integral piece of LLFS’s nation-building mission. “We provide affordable capital to those who otherwise would not qualify or have access to consumer loans or commercial loans,” Aitken said. “We’re essentially helping others help themselves.”

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DON ENGEN: “It’s been very rewarding to see the area getting the healthcare that was needed.”

A Healthy Gift When a regional medical association decided it had fulfilled its original mission, their work was far from done. Here’s how their assets got a second life as an Initiative Foundation field-of-interest fund. By Lisa Meyers McClintick | Photography by Jon Linn

When Don Engen started his CPA firm in the Crosslake area in the 1970s, seeing the doctor could mean losing half a day of work and a long drive when you weren’t feeling your best. “We had no medical care in Crosslake,” he said. “And it was 25 miles to a hospital in Brainerd.” That’s why Engen, along with many local leaders, formed the nonprofit Lakes Area Medical Development Association (LAMDA) in 1977 to do just that. The association helped pay a medical student’s tuition in return for a commitment that he work in the area for four years. LAMDA also rented a building, purchased an X-ray machine and essentially started a clinic from scratch before teaming up with St. Joseph’s Medical Center (now Essentia Health), which runs a nonprofit 162-bed hospital in Brainerd.

46 Initiative Foundation Quarterly ifound.org

St. Joseph’s agreed to provide doctors and support services a few days a week; LAMDA provided the clinic building. By the 1990s, the association raised enough money to build a replacement for their original clinic in Pequot Lakes as well as Crosslake’s first clinic. Both were huge successes, quickly keeping one or more physicians busy five days a week. Now, more than three decades later, health care has evolved, the area’s population has grown and many of LAMDA’s original founders are gone. Essentia Health has expanded its reach with clinics in Pine River, Emily and Hackensack. Those changes made LAMDA decide it was time to sell its buildings to Essentia and dissolve. From that profit, $200,000 will go toward an Initiative Foundation endowment dedicated to health and wellness and another $200,000 is dedicated to one-time grants averaging $10,000

“ There are 10,000 people in U.S. turning 65 every day. It’s the biggest turnover of wealth our country has ever had.” for more than 20 community organizations that boost the area’s quality of life. “It’s been very rewarding to see the area getting the health care that was needed,” Engen said. By moving those funds to an endowment and grants, “our board of directors feel we’re still carrying out the mission that was created in 1977.”

A Community Need

The Lakes Area Medical Development Association’s endowment gift is considered a field-of-interest fund, which is one of the many ways nonprofits, businesses and individuals can dedicate money (or even property) to a specific kind of need or target a geographical area within the Initiative Foundation’s 14-county region. Anyone can start a fund that’s tailored to their special area of interest, such as early childhood education, elderly care, the arts or mental health programming. “Field-of-interest funds rely on the Foundation staff to do the project review due diligence and grantmaking recommendations,” said Kathy Gaalswyk, president of the Initiative Foundation. “While donors may receive information about the grants awarded if they wish, they are not obligated to participate in an advisory committee structure and process.” Besides targeting a community need that fits their values and interests, donors who include the Initiative Foundation in their estate planning can leave a lasting legacy and make the most of the money they’ve earned and saved over the years. Lee Hanson, principal at Gray Plant Mooty who specializes in estate planning, said there are 10,000 people in the United States turning 65 every day, and as they move further into their senior years they represent the largest transfer of wealth the country has ever seen. “We have about five to six years to really educate these Baby Boomers on charitable giving,” said Hanson, a member of the Initiative Foundation’s board of trustees. Those with large estates will see a high percentage—as much as 40 or 50 percent—go to state and federal taxes. But with proper planning and a partnership with a charitable organization, the tax implications are reduced and money that would have gone out of the region can be used for local good.

Staying Healthy

To Hanson, the gifts that are most worthy are those that bolster rural economic development and retain and attract young people to the area. The aging population and trend of living longer will also increase the need for health care, according to Gaalswyk. Likewise, more businesses are realizing the economic benefits of encouraging their employees to take care of themselves and stay healthy. That’s where wellness programs such as those that can be funded through the new LAMDA endowment will be helpful. The Initiative Foundation’s growing number of funds and endowments go toward programs that help Central Minnesotans thrive—from birth to school, employment to retirement—and strengthen community ties along the way. “It is a great story, and we believe it will inspire other people to give in this way,” Gaalswyk said of LAMDA’s generosity. “It perpetuates LAMDA’s mission to support health and wellness in Central Minnesota.”

TAILOR MADE Field-of-interest funds can be as varied as Central Minnesota’s 14 counties and communities. Recent examples include:

3 A Manufacturing Fund to support projects that enhance or educate the manufacturing industry.

3 The Initiators Fund to support the Initiators Fellowship Program for young people who are looking to start a social enterprise or innovative business venture.

3 A Delano Emergency Family Fund for Delano residents in need after a natural disaster.

3 A Family Farm Fund support alternative agriculture and value-added technologies.

3RD QUARTER 2015

“ It’s an

interesting challenge to get people to think about what we’re going to do when fossil fuels run out. It’s not

”

an easy sell. CLAYTON MCNEFF: “The payback on biodiesel is immediate.”

Energy Matters

CONTINUED FROM PAGE 26

equipment, including quarry trucks, front end loaders and drills, praises the product for allowing them to reduce their diesel particulate matter without having to use any additives, an additional savings. A new focus for Ever Cat Fuels’ future growth is exploring how nonfood crops can be converted to fuel—not to mention a new source of income for Midwestern farmers. “Crops like Camelina and Pennycress are traditionally thought of as weeds, but they’re plants with high amounts of oil in the seeds,” said McNeff, who also serves as the vice president of SarTec Corporation, which holds the patent on the “Mcgyan Process,” the one-step oil to fuel the production process Ever Cat Fuels is built upon. To expand its potential uses, the company is providing the matching funds for a $500,000, three-year U.S. Department of Energy study that includes nine area farmers and student researchers from Anoka-Ramsey Community College to grow and study the alternative crops. “They can be planted as a cover crop or as a winter crop so you could potentially double crop them with more traditional crops like soybeans,” enabling an acre of land to produce food and fuel at the same time. While fewer than 3 percent of vehicles in Minnesota currently run on diesel, McNeff believes the growth of biofuel technology could change that. “The most important thing people have to remember is when we’re supporting renewables, we’re supporting our children’s future, and our futures, and the environment in a really direct way,” he said. “For us, it’s a combination of both a business and a mission to make the world a better place.”

48 Initiative Foundation Quarterly ifound.org

Creating a resilient region through cross-pollination of resources

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For more information, visit resilientregion.org or contact one of our Energy Champions: Molly Zins, U of M Sustainable Development Keith Olander, CLC Jason Edens, RREAL Sarah Hayden, CERTs

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home made

Sven

Chisago City, Minn. By Maria Surma Manka

If you’re watching a movie and a celebrity is wearing hip-yet-chunky footwear, those shoes could be Sven clogs. “When Hollywood costume designers need clogs, they call us,” said Marie Rivers, president and owner of the Chisago City company. Lots of regular folks call Sven, too. In 2014, 27 employees at their factory on Highway 8 handmade 29,000 pairs of clog shoes and boots for customers around the world. The most committed customers—about 90 percent—are women who are on their feet for long periods of time: doctors, nurses, chefs, or those who commute on foot. Arthritis sufferers and individuals with foot or leg pain have also found relief in these well-supported, lightweight shoes. Sven began about 40 years ago when, at the height of the clog trend of the 1970s, Sven Carlsson was running a successful clog factory in Sweden. After years of exporting his shoes to a reseller in Minneapolis, he moved to the United States to start his own business in 1974. Rivers started working for the company as a seamstress in the 1970s and later bought the business from Carlsson. We caught up with her to hear why people are mad for her shoes.

50 Initiative Foundation Quarterly ifound.org

So Many Styles Sven is one of only three handmade clog makers in the United States—and the largest. Employees make closed-back, boot, summer sandal, men’s, children’s and even high-heeled clogs. Easy On The Feet A typical clog weighs just over a pound. Traditional clogs can weigh up to three pounds. Local Leather Most of the leather comes from S.B. Foot Tanning Company in Red Wing. “It’s beautiful leather,” said Rivers. “And I love that I only have to drive just over an hour to pick up my material!” Process Makes Perfect Employees working as die cutters, seamstresses, sanders, strainers and sprayers can fabricate a pair of shoes in less than a day. The raw wood base is cut, shaped, sanded and stained. Next, leather is attached to the base and the shoe is sprayed with a liquid vinyl four times to seal the wood and protect it from moisture. The shoe then dries in 100-degree heat for up to two days.

They’ve Got Sole Some popular models of Sven clogs have an updated sole that is quieter than a traditional Swedish clog. The wood soles for these shoes are supplied by a third-generation, family-owned company in Austria and are made from a type of lightweight poplar wood that is harder than the poplar found in the United States. A polyurethane sole is attached to create a quiet, non-skid and longer-wearing shoe. Glam Factor Seven years ago, Sven signed an exclusive agreement with a New York fashion designer whose name Rivers wouldn’t divulge. Since then, production has quadrupled. In-the-know fashionistas from across the country make pilgrimages to the factory outlet store to stock up on their favorite styles.

Comfort Cares With arch support and wood that absorbs moisture, wearers’ feet stay cool and dry. Any Size While Sven does a strong online and storefront business, they also take custom orders. Rivers’ teams of seamstresses and die cutters can make custom shoes that fit near any foot shape or size. “I have the most incredible staff I could imagine,” she said.

Busting Out Sven more than doubled its factory size with a 4,000 square-foot addition last year, but it’s already too small. “We have about 10,000 square feet,” said Rivers. “But we could probably use 30,000.” Team Effort In 2012, the Initiative Foundation gave a $10,000 grant to the Chisago County Economic Development Authority to provide marketing assistance to businesses that were disrupted by reconstruction taking place on Highway 8.

3RD QUARTER 2015

whereâ&#x20AC;&#x2122;s IQ?

THINK YOU KNOW? Send your best guess to IQ@ifound.org by Oct. 15, 2015. Three winners will be chosen, at random, to receive a $25 GiveMN.org gift code to support the charity of their choice. HINT: Located in Cass County, near Birch Lake. Congratulations to everyone who correctly recognized Babe the Blue Ox located in Nisswa, just off Highway 371 between Ye Old Pickle Factory and the city park. Laurie Jorgensen, Sarah Jorde and Robert Hybben are the lucky winners of GiveMN.org gift codes.

52 Initiative Foundation Quarterly ifound.org

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