IQ Magazine - Q4 2014 by Initiative Foundation

4TH QUARTER 2014

ECONOMY

Shining Reputation—Why our stainless steel manufacturers are the world’s best. Pg. 14

COMMUNITY

Serving Solutions— VISTA members fight poverty across the region. Pg. 18

PHILANTHROPY

Lasting Goodwill—How a World War II Army secretary built a legacy for her town. Pg. 36

STEM Seekers New cutting-edge labs at St. Cloud State promise to turn Central Minnesota into a tech and science hub. Pg. 22

“Within 24 hours, they’d fixed my heart problem. I’m feeling better than I have in years.” — Mark Jurchen, Pequot Lakes

When Mark Jurchen walked into Urgent Care, he expected to get an antibiotic to cure his lingering chest cough. He thought he had pneumonia until Dr. Paul Carey explained the problem was his heart. From Urgent Care, Mark went to Essentia Health - St. Joseph’s Medical Center where he was met by Dr. Michael Rich, a cardiologist at the Brainerd Lakes Heart and Vascular Center. An angiogram showed a major artery in Mark’s heart was 95 percent blocked in one area and 80 percent blocked in another. Dr. Mark Johnson, an interventional cardiologist in the Heart & Vascular Center, placed two stents to open up the artery. Mark spent the night in the hospital before going home to Pequot Lakes. Looking back, Mark now realizes he had felt tightness in his chest and shortness of breath but ignored those symptoms because he’s been healthy and active. Both he and Dr. Rich stress the importance of paying attention to symptoms.

The Brainerd Lakes Heart and Vascular Center team provides patient and family centered care (L to R): Nurse Practitioner Rebecca Wirtz; Radiology Technologist Kara Staniger; Martha Jendro, RN; Nurse Practitioner Annie Kvamme; Patient Mark Jurchen; Cardiologist Dr. Michael Rich; Interventional Cardiologist Dr. Mark Johnson; Jane Curran, RN; Radiology Technologist Melinda Garnhardt; and Registered Cardiovascular Invasive Specialist Brian Lahr.

Join us in welcoming Dr. Mike Thurmes, an experienced interventional cardiologist, to the Brainerd Lakes Heart & Vascular Center.

Brainerd Lakes Heart & Vascular Center For appointments call 218.828.7580 The Brainerd Lakes Heart & Vascular Center at Essentia Health - St. Joseph’s Medical Center is in partnership with CentraCare Heart & Vascular Center

LANDSCAPE DESIGN

PROJECT MANAGEMENT

ENJOY LIFE

ARCHITECTURE

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Initiative Foundation Quarterly 4TH QUARTER 2014

Contents FEATURES

DEPARTMENTS

27 30

Stem Seekers

The ISELF labs at St. Cloud State University promise to turn Central Minnesota into an innovation hub.

Ready. Set. Grow.

Early childhood development is also sound economic development—with a very high rate of return.

Succession Success

Small towns depend on their local businesses. Learn how communities can help make sure these economic assets thrive under new leaders.

33 Hire Education

Hands-on career programs help teens and young adults successfully move into the workplace.

Initiatives:

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

How-to:

Talent Show — Hiring interns helps

businesses attract and retain local talent.

14 18 36

Business:

Shining Reputation — Highly skilled workers have made Central Minnesota a world leader in stainless steel fabrication. Community:

Serving Solutions — AmeriCorps VISTA members help nonprofits fight poverty across Central Minnesota.

Philanthropy:

Lasting Goodwill — How a World

War II Army secretary from Little Falls built a legacy for her town.

46 52

Home Made:

LakeLady Custom Rods — Pequot Lakes hobbyist turns craft into year-round labor of love.

Where is IQ?

Engineering | Architecture | Surveying | Environmental

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4TH QUARTER 2014

Dear Friends, There’s a new garage rising up from the ground at the Gaalswyk household. Neal planned everything meticulously, but, as with any undertaking, we experienced a few setbacks—and a few surprises. Early this fall, with the foundation poured and the electrical and plumbing in place, we called in family and friends for our version of a barn raising. During one of our breaks, while chatting in our home’s basement, our daughter noticed the carpet was wet. Spongy wet. The next room over was the utility room. And the floor drain. I threw the door open to find a burbling mass of yuck that was quickly increasing in size and depth. We sprang into action. Grandson Jackson wanted to help in the worst way, but we kept shooing him away. “It’s too messy,” we said. He left but was back in moments with his rainboots on. He started helping. And he was a good helper. “Finally,” the 5-year-old said, “these people understand that I can be part of the solution.” And there it is: Jackson believed in himself. He believed he could help to solve the problem. This edition of IQ Magazine is all about belief—from the cover story about St. Cloud State University’s Integrated Science and Engineering Laboratory Facility (ISELF) to our feature story about interns, apprentices and young entrepreneurs to our plannedgiving piece about the late Beverly PantzkeJohnston and her Little Falls scholarship fund, now valued at nearly $500,000. Jackson Peter Gaalswyk With ISELF, the university believes it Photo courtesy of Inspired Design, can strengthen the economy while better inspireddesignandphotography.com preparing the next generation of employees and innovators. With internship, apprenticeship and entrepreneur programs, the region is investing time and energy with the belief that young people can flourish when given exposure to potential career paths. And Beverly Pantzke-Johnston, well, she simply believed in the transformative power of education. Enjoy the magazine. I believe you’ll like it!

Kathy Gaalswyk PRESIDENT

IQ VOLUME 15, 4TH QUARTER 2014

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 | MaryAnn Lindell

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

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4 Initiative Foundation Quarterly ifound.org

Service. Especially for you. CASS

WADENA CROW WING

TODD

We exist to serve Region 5.

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IQ Initiatives

Regional Investment Highlights BENTON COUNTY

Thrive Strives

Greater St. Cloud Area Thrive, a community collaborative launched in partnership with the Initiative Foundation to promote the healthy social and emotional development of children ages birth to 5, hosted area organizations to showcase its Access Project for immigrant and refugee organizations. The event highlighted newly developed cultural DVDs along with a Somali fashion show.

CASS COUNTY

Minnesota Cup Runner-Up

Backus-based JenTra Tools recently took runner-up honors at the Minnesota Cup for its CHEATAH door level and installation tool. The Initiative Foundation provided JenTra Tools with a loan to help finance the company’s inventory. The Foundation also provided a grant to Minnesota Cup, a statewide entrepreneurial competition.

CHISAGO COUNTY

Rushing Forward

Rush City, a participant in the Initiative Foundation’s Thriving Communities Initiative, received a $20,000 grant to help fund community development projects. With the funds, Rush City has kicked off a Rush City Shop Local Campaign, started Community Education programming and has worked to bring better awareness of events to residents.

Getting Tech Ready

The Brainerd Lakes Area Economic Development Center (BLAEDC) has teamed up with Consolidated Telecommunications Company (CTC) and Micronet to launch the Tech Ready Brainerd Lakes website. The website, launching late in 2014, will serve as a resource for training, technology careers and business relocation and expansion in the Brainerd Lakes Area. Visit growbrainerdlakes.org to learn more.

WADENA

CROW WING COUNTY

CASS

TODD

CROW WING

MORRISON

MILLE LACS

ISANTI COUNTY

Making A Dental Difference

The Isanti County Family Support team and the Initiative Foundation are partnering to increase in-county dental services. The alignment will help the family support team explore ways to increase access to services and to do more oral health education and outreach. This effort will be supported in part by a recent grant to the Foundation from Delta Dental of Minnesota.

KANABEC COUNTY

Partnering for Growth

The city of Mora and Kanabec County are exploring a partnership that would create a single economic development organization that will work to improve business growth and retention. The Initiative Foundation recently awarded a $3,000 grant towards their work.

MILLE LACS COUNTY

Educating Entrepreneurs

Depot Studios in Isle is reviving a yearlong small business opportunity workshop for local entrepreneurs with the help of AmeriCORPS VISTA member Virginia Zenzen. First launched in 2008, the program generated successful results and aligned with Depot Studios’ mission to move Mille Lacs County families out of poverty through income-generating opportunities.

6 Initiative Foundation Quarterly ifound.org

BENTON STEARNS SHERBURNE

WRIGHT

Cheers to Morrison County!

The Morrison County Area Foundation, a component fund of the Initiative Foundation, held its inaugural fundraiser this fall at Camp Ripley. With 400-plus attendees, the event raised more than $8,000 and helped the group award a $2,150 grant to the Flyers Athletic Boosters to help purchase a new wrestling mat.

PINE COUNTY

Impacting the Greater Pine Area

The Greater Pine Area Endowment, a component fund of the Initiative Foundation, awarded more than $40,000 in its recent grant round. Grants were awarded to nonprofit organizations, the school district and local units of government that have projects focusing on economic and community development.

SHERBURNE COUNTY

Designing Princeton

The city of Princeton recently worked with the Minnesota Design Team on a three-day event with a team of volunteers and community partners. The weekend focused on connecting the community to local businesses and infusing the arts with the Central Minnesota Art Co-op. The Initiative Foundation provided a $4,000 grant to support the project.

STEARNS COUNTY

Building Community

What’s in a name? A lot. And The Hub on 15 serves as a great example. The effort to brand the neighborhood—a place where education, healthcare and technology businesses reside—has enjoyed grassroots support from neighborhood leaders, the city of Sartell and the Initiative Foundation. The Hub on 15 is located west of Highway 15 and north of County Road 120.

TODD COUNTY

Becoming a CEO PINE

KANABEC

MORRISON COUNTY

CHISAGO

ISANTI

A creative program is bringing business and community leaders together to deliver entrepreneurship education to Staples-Motley juniors and seniors. The Creating Entrepreneurial Opportunities (CEO) program is a partnership between education and the business community and prepares students to become entrepreneurs and ultimately contribute to local economic and community development.

WADENA COUNTY

Helping Wadena Recover

The Wadena Area Relief Fund continues to support the 100 or more homeowners affected by summer 2014 flooding. The fund has raised nearly $3,000 and received a funding match of $2,500 from the Initiative Foundation. Scan the QR code or visit givemn.org and search for “Wadena Area Relief Fund” to contribute.

WRIGHT COUNTY

Paws for Progress

The Maple Lake Veterinary Clinic opened its doors this past year to provide care for companion animals. The clinic provides wellness exams and surgeries and offers an onsite pet pharmacy. The Initiative Foundation provided a loan to assist with the financing of this new building.

4TH QUARTER 2014

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June

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BUZZ FACTOR: ATS Director of Operations Paul Killmer (right) says the company’s internship program attracts future employees, including Andrew Beckmann.

Talent Show Hiring interns helps businesses attract and retain local talent. By Sarah Colburn | Photography by Michael Schoenecker

Paul Killmer has a team of recruiters who help him find job candidates from across the country. Even so, Killmer still swaps handshakes for resumes at Minnesota job fairs, networks with local colleges and interviews intern candidates in an effort to connect with the undergraduates he hopes to eventually welcome into Central Minnesota’s workforce. That effort has paid off for Anderson Trucking Service, a St. Cloud-based global transportation company where Killmer is the director of operations. “It has really helped with recruiting, just creating that buzz and name recognition,” he said. Though Killmer acknowledges there are challenges that come along with using interns who are still getting a foothold on soft skills and teamwork, he believes the right mentoring and supervision can put them on the path to becoming valuable employees—an issue that’s especially important as baby boomer retirements are contributing to a worker shortage in the region. “Get young, talented, educated people involved in your business and show them how it operates,” said Kathy Gaalswyk, the president

of the Initiative Foundation. “Give them hands-on opportunities, let them experience the workplace environment in their own community.” And that’s what Killmer’s internship program is designed to do. ATS hires 12 semester-long interns a year in its logistics department. The interns work side by side with employees, shadowing them and learning the intricacies of the business. When they’re ready, they work with their colleagues guiding them.

Adding Value Andrew Beckmann learned about the ATS internship program when Killmer visited a Supply Chain and Distribution Management class he was taking at St. Cloud State University. Beckmann was studying marketing and assumed he’d follow in the footsteps of his parents doing business-to-business sales. He began as an intern at ATS and is still there, over two years later, working as a regional carrier representative for the company. “I realized I wanted to work there after the second or third week,” Beckmann said. “There are a lot of people my age. Everyone CONTINUED ON PAGE 12

10 Initiative Foundation Quarterly ifound.org

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how-to, continued from page 10

was really inviting.” Interns at ATS train in a classroom with new employees who are learning about the company and the trucking industry. They then do job shadows on the floor before being allowed to work independently. “They’re on the floor and we can tell if they’re integrating into the group and adding value,” Killmer said. “If their team doesn’t count on them, that might be an indication there’s a problem.” Internships can be a valuable part of any higher education experience because they provide students with opportunities to put what they’ve learned into action. “We can’t offer students the opportunity to learn everything on campus,” said Laura Hammond, the assistant director of Experiential Learning & Community Engagement at CSB/SJU. “The learning opportunities they have with our community partners are so critical. They can practice soft skills and engage as a professional, they can learn what they like and don’t like to help them make decisions about the future. They have access to technology and resources that we just don’t offer.” Good internships, she said, can also benefit the company. Faculty members who oversee student interns and do a site visit out to a business can then advocate for that business as a workplace. They can also bring back information from business leaders on the skills they’re looking for in recent college grads. Faculty members

can become a resource for business leaders to gain a broader perspective in their area of expertise and help them network within the industry and community. “I think it’s an added layer to the way Saint Ben’s and Saint John’s work to make experiential learning a mutually beneficial experience,” she said. “The internship host gets the benefit of the student and the faculty member’s learning, scholarship and expertise.” More than half of the internships granted to CSB/SJU students from summer 2013 to spring 2014 were unpaid positions, mostly in the human services sector. Paid positions ranged from a $250 stipend to a $14,000 paycheck for a 16-week experience. CSB/SJU has benefitted from a $150,000 grant through the Great Lakes Higher Education Guaranty Corporation to help financially support students who need an internship to graduate but can’t find one that pays. The dollars go to students who are working in a business or organization that is committed to finding resources to support interns in the future. In addition, CSB/SJU is one of the educational institutions participating in the Greater Minnesota Internship Tax Credit Program. Through legislation approved in 2013, a limited number of businesses working with participating institutions may be eligible for tax credits of up to $2,000 per intern.

IS YOUR COMPANY READY TO HIRE AN INTERN? 3 Can you create a specific job description for an intern that outlines responsibilities, pay and expectations on everything from appropriate dress to required hours? SIDEBAR HED: Is your company ready to hire an intern? Are you prepared to invest time into an individual who may or may not end up working ● Can you create a specific job description for an intern that outlines responsibilities, pay for your organization? and expectations on everything from appropriate dress to required hours? Doyou youprepared have a position where you can get the intern up toorspeed andend working relatively quickly? ● Are to invest time into an individual who may may not up working for Some your organization? positions take six months to a year of training and interns are only available for a short time. ● Do you have a position where you can get the intern up to speed and working Do you have the extra equipment needed to support an intern? Ideally interns should come into a relatively quickly? Some positions take six months to a year of training and interns are prepared workspace with a computer and workstation. only available for a short time. ● Do extra equipment needed toconstant support an intern?training, Ideally supervision interns should Doyou youhave havethe someone available to provide support, and feedback come into a prepared workspace with a computer and workstation. to the intern? ● Do you have someone available to provide constant support, training, supervision and Do you understand the workforce/labor laws that go along with hiring an intern? feedback to the intern? ● Do you the understand thetoworkforce/labor laws that go with hiring an intern? Does student go a school that participates in along the Greater Minnesota Internship ● Does the student go to a school that participates in the Greater Minnesota Internship Tax Credit program?

3 3 3 3 3 3

12 Initiative Foundation Quarterly ifound.org

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economy

BOUND FOR THE WEST COAST: Seitz Stainless employees Jeremy Yourczek (left) and Mike Brown lift a distribution plate into place on a large milk evaporator.

Shining Reputation Highly skilled workers have made Central Minnesota a world leader in stainless steel fabrication. By John Reinan | Photography by John Linn

Ironically, it was the infertile soil of Central Minnesota that provided fertile ground for what would become one of the region’s leading industries. Early settlers turned to dairy farming because the rocky ground was tough to cultivate. That led to local demand for blacksmithing and metal fabrication for dairy tanks, including those made with stainless steel. In fact, Central Minnesota has a shining reputation in stainless steel and is a world-class player in this highly skilled industry. More than 40 percent of the state’s stainless steel fabrication businesses are located in the 14-county Initiative Foundation region, and business is booming. “I will absolutely guarantee that you have eaten or drunk a product that came through our equipment,” said Jeff Haviland, owner of Seitz Stainless in Avon. “That’s fun for me, that this little company from this little town in Central Minnesota can make that statement.” Seitz fabricates stainless tanks, primarily for the dairy, brewing and beverage industries. Materials processed in Seitz tanks eventually find their way into such well-known consumer products as Cheetos,

Schwan’s ice cream and Gallo wine. And there’s a growing demand for Seitz tanks from Minnesota’s thriving craft brewing industry. Since Haviland took over 20 years ago, the company has grown from six to 30 employees. With help from an Initiative Foundation bridge loan, Seitz Stainless recently completed an expansion that doubled the company’s manufacturing floor space and paves the way for further growth.

History of Innovation Many of the stainless fabricators trace today’s growth back to the Konsor brothers of Holdingford, who were early suppliers of stainless steel dairy holding tanks in the 1950s. As the stainless business grew, so did suppliers and affiliated businesses like welding shops. “Once you’ve got one stainless fabricator, you’ll suddenly have a welding shop that stocks the right gases to support it,” Haviland said. “There’s kind of an infrastructure that builds up around that shop.” That dynamic has helped the St. Cloud area maintain a robust manufacturing base, said King Banaian, Ph.D., professor of CONTINUED ON PAGE 16

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economics at St. Cloud State University. “Skilled labor is hard to find, so you tend to congregate businesses around each other, so your skilled labor pool will collect in the same place,” he said. “That way, the workers and firms can match up.” In the St. Cloud area, about 15 percent of the jobs are in manufacturing. That’s higher than the state average, which is about 12 percent, and the national average of 10 percent. “The heritage of this area, having a fairly large German immigrant population, brought with it a lot of precision industry,” said Banaian. But there’s concern about an aging workforce in the stainless business. DCI, Inc. in St. Cloud is a world leader in stainless fabrication, making tanks for a range of industries, including pharmaceuticals, cosmetics, beverages, biopharmaceuticals and food. With sales of $50 million, the company employs 200 people— and it’s aggressively looking for more. “We’ve had a dozen retirements in the last year, and I’m expecting a dozen more coming up,” said Allison Waggoner, DCI’s manager of human resources, safety and communication. DCI employs a range of workers, including engineers, draftsmen, welders, electro-polishers, machinists and machine operators. A two-year degree in welding is a typical starting point, but the company actively trains its employees in the skills needed to meet the rigorous technical and quality standards of the pharmaceutical, food and dairy industries. “It’s possible for an individual to have more than 50 certifications,” Waggoner said. With unemployment in the St. Cloud area at less than 4 percent, the company can’t get enough technical school graduates, so it’s boosting its internal training and taking on more helper-level workers who will learn on the job.

Cost and Quality Starting pay for most workers is $15 an hour, and they can top out around $23 an hour within seven years, and often sooner. The company also issues quarterly profit-sharing checks that can add thousands of dollars a year to a worker’s base pay. This kind of skilled job, combined with the low cost of living in Central Minnesota, enables a lifestyle that once was common among manufacturing workers. “By the time you reached 35 or 40, you had your house and your car,” Banaian said. “You had your cabin and a boat in the third stall of your garage. That way of life has largely left this country, but it still exists to a certain extent here.” So, why haven’t foreign companies tried to take away this thriving business, as they’ve successfully done in other areas of manufacturing? Two words: cost and quality. Although manufacturing jobs in Central Minnesota pay above-average wages for the area, the region’s costs remain competitive with foreign nations in this highly skilled business. More importantly, foreign workers can’t do the kind of quality work that’s required to meet strict U.S. standards in food, beverage, pharmaceuticals and other industries. “The workers have reached that level of mastery that allows them to do high-quality work,” Banaian said. “Many people have been doing this for 25 or 30 years.” 16 Initiative Foundation Quarterly ifound.org

That’s one of the factors that prompted the German firm Geringhoff to open its first U.S. facility in St. Cloud, a 110,000-squarefoot manufacturing facility for high-end harvesting equipment that employs about 70 workers. The Initiative Foundation continues to invest in the region’s growth with aid like its bridge loan for Seitz Stainless. The company had run out of space to meet the demand for its tanks. But because the facility is so specialized, banks were unable to lend the full amount needed for an expansion. The plant, with its industryspecific design, required construction that resulted in higher costs than is typical for a manufacturing facility. “Seitz Stainless is a great example of a growing company that fits well with the mission of the Initiative Foundation to support businesses that create quality jobs at a living wage,” said Dan Bullert, business finance manager at the Foundation. The new addition sets the company and the region up for continued growth. “We can grow in the amount of equipment we have and in the size of the tanks we can fabricate,” Haviland said. “There’s a demand for larger tanks, and now we can meet that.”

STERLING SKILLS These are among the many businesses in the St. Cloud area that have expertise in working with stainless steel: cutting, welding, fabricating, polishing or other jobs associated with the difficult-to-work metal. • Dahmes Stainless New London

• C4 Welding Sauk Rapids

• Seitz Stainless Avon

• April S. Lee & Associates St. Cloud

• DCI, Inc. St. Cloud

• Louis Industries Paynesville

• Two Rivers Enterprises Holdingford

• Centerline Tank & Trailer Long Prairie

• Polar Holdingford

• CWMF Waite Park

• Styme Industries Kimball

• Millwood Metalworks Freeport

• Whirl-Air-Flow Big Lake

• SCR St. Cloud

• Tanks Inc. Clearwater

• Sunset Manufacturing St. Joseph

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4TH QUARTER 2014

community

Serving Solutions AmeriCorps VISTA members help nonprofits fight poverty across Central Minnesota. By Elizabeth Foy Larsen

For five decades, AmeriCorps VISTA members have been on the frontlines of fighting poverty in the United States. Like Head Start and other lasting antipoverty programs, VISTA was created by The Economic Opportunity Act of 1964 to serve the needs of the poorest Americans. The first VISTA members started in January 1965, and by the end of the year more than 2,000 members were serving across the country to alleviate poverty. Today, more than 80,000 men and women are engaged each year through VISTA, providing service to more than 15,000 nonprofits, schools, public agencies and community and faith-based groups across the country. In Central Minnesota, the Initiative Foundation has been supporting this important work for 14 years as a VISTA sponsoring organization. To date the Foundation has placed 170 VISTA members at 70 sites throughout the region. We partner with nonprofit and local government host sites that are devoted to reducing poverty by helping them to recruit top-notch VISTA members. Each VISTA member agrees to serve a term of at least one year in exchange for a modest living allowance, health care, and an education award upon completion of their service. “Our work with VISTA is another tool in the Initiative Foundation’s toolbox to build prosperity in Central Minnesota,” said Chris Fastner, senior program manager for organizational development at the Initiative Foundation. “Many nonprofits who are doing the work in the trenches day in and day out often have breakthrough ideas about how they can improve their services to help people in poverty, but don’t have the capacity to make it happen. A VISTA member can take your good idea and develop it and give it a solid chance to succeed.” That’s what happened when the College of Saint Benedict realized that much of the food that went to waste in their dining facilities was edible and up to health code standards. After doing some research, the college discovered that several colleges around the country were developing food salvage programs. When the 18 Initiative Foundation Quarterly ifound.org

college brought on VISTA member Natalie Keane to address this issue, she helped create the Community Kitchen program and laid the groundwork to procure uneaten but perfectly safe food and deliver it to qualifying programs. It’s an example of just one of the breakthrough solutions that is the result of partnering with the Initiative Foundation to host a VISTA member. Other projects include: • Developing a transportation system through Northern Pines Mental Health Center in Brainerd so individuals with mental illness don’t miss appointments with their therapists. • Initiating a Family Pathways career development program for Princeton high school youth. • Creating volunteer-provided aftercare services for survivors of domestic abuse transitioning from Anna Marie’s shelter in St. Cloud back into the community. If you are a nonprofit or government agency and want to build your capacity to fight poverty in Central Minnesota, contact Amanda Whittemore at awhittemore@ifound.org or visit ifound.org (search word: VISTA). The application process for 2015-2016 VISTA host sites opens in mid-December 2014.

IF VISTA Impacts since program adoption in 2000

Running Total

New volunteers recruited............................... 8,222 Cash resources developed............................. $2,392,690 Noncash resources developed.............. $1,369,050 Some 170 Initiative Foundation-placed VISTAs have served at 70 different sites since 2000. Nearly one-quarter (20-25 percent) go on to be employed by their sites or other nonprofits at the conclusion of their service.

Initiative Foundation

2013-2015 VISTA Host Sites 2013-2014 VISTA SITES 2014-2015 VISTA SITES

KIDS AGAINST HUNGER Crow Wing, Nisswa Distribute packaged meals to local food shelves

BOYS & GIRLS CLUBS OF LEECH LAKE AREA Cass, Cass Lake

THE SHOP: BRAINERD-BAXTER YOUTH CENTER Crow Wing, Brainerd Develop, roll out PCs for People Program.

LAKES AREA RESTORATIVE JUSTICE PROJECT Crow Wing, Brainerd Explore mediation services as a social enterprise.

Build Boys & Girls Club volunteer capacity.

NORTHERN PINES MENTAL HEALTH CENTER Crow Wing, Brainerd RURAL RENEWABLE ENERGY ALLIANCE Cass, Pine River Increase solar-powered furnace usage.

PINE RIVER BACKUS FAMILY CENTER Cass, Pine River

Reinvigorate mental health drop-in center’s outreach.

NORTHERN PINES MENTAL HEALTH CENTER Crow Wing, Brainerd Promote military, veterans mental health support services.

Build food shelf systems and volunteer capacity.

HELPING HANDS OUTREACH Stearns, Holdingford

DEPOT STUDIOS Mille Lacs, Isle Pilot, implement program to increase local job skills.

Expand eldercare services to St. Stephen area.

HELPING HANDS OUTREACH Stearns, Holdingford Expand eldercare services to St. Stephen area.

CENTRAL MINNESOTA COUNCIL, BOY SCOUTS OF AMERICA INC. Stearns, Sartell Expand Explorer program to Central Minnesota.

COLLEGE OF SAINT BENEDICT Stearns, St. Joseph Expand, refine food recovery project.

CATHOLIC CHARITIES EMERGENCY SERVICES Stearns, St Cloud Develop, pilot mobile food shelf program.

GREAT RIVER AREA FAITH IN ACTION Sherburne, Becker Develop a beneficiary “Pay it Forward” program.

CENTRAL MINNESOTA SUSTAINABILITY PROJECT Stearns, St. Joseph Increase community gardens program profile.

CHILD CARE CHOICES, INC. Stearns, St Cloud Develop”Little Learners Depot” store.

COLLEGE OF SAINT BENEDICT Stearns, St. Joseph Expand, refine food recovery project.

CENTRAL MINNESOTA HOUSING PARTNERSHIP Stearns, St. Cloud

UNIVERSITY OF MINNESOTA EXTENSION Stearns, St. Cloud Facilitate food assistance benefits at local farmers markets.

GREAT RIVER FAMILY PROMISE Sherburne, Elk River Develop, pilot mentor program for homeless families.

GOODWILL EASTER SEALS Stearns, St. Cloud Coordinate service delivery for military members and their families.

Simplify process to aid to homeless individuals and families.

4TH QUARTER 2014

Brainerd Lakes Area

Feeding families around the world...and around the corner.

Million Meal Challenge 2014

Kids Against Hunger–Brainerd Lakes Area is challenging the Brainerd Lakes Area Community to pack One Million Meals for food shelves in North Central Minnesota. We can produce one meal for 25 cents, but in order to do this, we need your help and commitment to raise $250,000 to purchase the ingredients. Please help us feed hungry people right here in North Central Minnesota by donating and volunteering! For more information, call 218-961-0055 or visit www.KidsAgainstHungerMN.org

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20 Initiative Foundation Quarterly ifound.org

Mail a donation to: Kids Against Hunger-BLA, 24489 Hazelwood Drive, Nisswa, MN 56468 Or visit the website to “donate now” or “volunteer your time.”

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BY DESIGN: ISELF’s Visualization and Simulation Lab elicits its share of “wow” from businesses and students.

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By Lisa Meyers McClintick Photography by John Linn

The new ISELF labs at St. Cloud State promise to turn Central Minnesota into an innovation hub for students and businesses. At least three days a week, Ned Tabat, the CEO of Semaphore Scientific, and one or two colleagues meet in Plymouth and carpool to St. Cloud. Semaphore’s owners—three PhDs, including Tabat, who met when they were employees of data storage company Seagate—are working on ladar, a version of radar that uses light frequencies for three-dimensional imaging with a resolution that’s 10,000-times higher than radio waves. Semaphore hopes to harness the technology to create self-driving cars, which Tabat promises will be even more sophisticated than the self-piloted vehicles Google introduced earlier this year. With only a handful of employees to compete with such giants as Honeywell and Boeing, Semaphore needed access to cutting edge technology labs where they could do their work but lacked the capital to build them. They considered partnering with the University of Minnesota, but ultimately teamed up with St. Cloud State University as one of the first participants in its Integrated Science and Engineering Laboratory Facility, or ISELF. Despite the longer commute, Semaphore chose SCSU because the smaller campus felt more intimate and ideal for startups. “ISELF is almost like a technology incubator,” said Tabat. “Technology becomes our competitive edge.” As Minnesota’s most expensive state university building to date, ISELF represents a $45 million investment that knits together private business with public resources in an effort to benefit both. Beyond boosting businesses’ profits and launching cutting-edge products, the ISELF educational mission aims to shape a new generation of innovators and technologically savvy students who then become employees. “This is high-stakes learning,” said SCSU President Earl Potter III, who notes that no university in the state system has taken on an initiative with such a grand scope. The hands-on workplace experience that is embedded into the ISELF mission is akin to hosting internships for an entire classroom. Instead of using grades, success will be measured through the sale of products or the effectiveness of research. ISELF puts SCSU at the forefront of an educational movement to innovatively partner with businesses and industries to make learning an authentic experience and better prepare America’s workforce. “Our country, our economy needs this,” Potter added. “It’s a very powerful way to learn.”

Potential hums through every ISELF hallway. 4TH QUARTER 2014

NED TABAT: “ISELF is almost like a technology incubator.”

TALENT SHOW If ISELF meets expectations, its impact will be felt beyond private businesses and the SCSU campus. It’s already convincing Science, Technology, Engineering and Mathematics (STEM) students to enroll at SCSU and helping to lure top scientists to Central Minnesota with the potential to make the region a new hub for STEMrelated industries. Microbiologics, which makes diagnostic products for several industries from pharmaceutical to food, is among St. Cloud’s business success stories. It doubled its company size in 2012, increasing its number of employees from 56 to 92, and may possibly expand again in two years, according to CEO Brad Goskowicz. He’s worked collaboratively with SCSU for the last five years and is grateful for the talent he can find among its graduates. At times, though, Goskowicz needs to recruit highly skilled specialists from other parts of the country. And those potential employees look at more than just the company. They weigh the community’s quality of life, and that’s where ISELF can be a recruitment tool. Seeing and having access to ISELF was essential for Brian Beck, Microbiologics’ vice president of molecular 24 Initiative Foundation Quarterly ifound.org

products, who joined in October 2013. “That was a key piece in him coming to St. Cloud,” Goskowicz said about the incentive of providing a core community of scientists and a way to be involved in meaningful, cutting-edge work. On a more practical side, ISELF can provide valuable lab and workshop space— something Microbiologics needs when they train distributors who sell products in 130 countries, earning half of the company’s revenue outside the United States.

INNOVATION AND CREATIVITY According to the U.S. Department of Commerce, there were 7.6 million STEM workers in the United States, or about one in 18 workers, as of 2010. STEM occupations are expected to grow by 17 percent between 2008 and 2018, compared with 9.8 growth in other fields and earn 26 percent more than non-STEM counterparts. Even more important: The Department of Commerce expects STEM employees will drive the nation’s economy by helping it stay competitive in a global marketplace. “Innovation and creativity are the foundation of most job creation,” said Don Hickman, vice president of community

and economic development at the Initiative Foundation. “ISELF helps assure that we support these processes locally, both to retain and also attract strong ideas and skilled workers to Central Minnesota.” The ISELF building wraps up SCSU’s three-part Science Initiative that includes a $14.5 million addition to the Robert H. Wick Science Building and a $13.6-million renovation to Brown Hall, both completed in 2009. Behind ISELF, the mobile Husky Science Lab—a gleaming laboratory-onwheels—sits parked and waiting for its next road trip to introduce elementaryaged kids to the wide field of sciences. Even businesses that don’t fit the STEM realm can benefit from ISELF projects, a win-win opportunity, especially for startups and small companies that don’t have the capital for their own labs, 3-D printers and high-tech microscopes. They also get help from students and university faculty who share their expertise and have often adapted classes and training to the needs of the regional economy. The halls of ISELF were fairly quiet throughout the summer until the university was able to legislatively convert funding from tax-free to taxable bonds. That necessary hurdle—a need flagged by the Internal Revenue Service—allows

ADEL ALI: “ISELF allows you to build things and test them virtually before building them in real life.”

for-profit businesses to operate within the building.The university benefits monetarily in a variety of ways, each negotiated to fit the project. It could receive a percentage of company sales or profits or establish co-ownership of intellectual property. Today, the building is packed with students, researchers, faculty and professional scientists. “The key activities have really taken off since this August,” Potter said. “Now there are 10 different companies working in the ISELF building.” Businesses can tap several areas of expertise that converge at ISELF: mechanical, electrical and computer engineering, chemistry, physics, biology, medical technology, radiology, atmospheric and hydrological science, mathematics and more. They can leverage other areas of the university, too, using communications students to help with the company website and design and art students for marketing support. The building was designed with flexible spaces and labs that can be adapted to incoming projects from fields such as medical technology, pharma/biologics, animal science, bio-agriculture and renewable energy. That’s crucial when you consider that Minnesota ranks second nationwide for its number of Fortune 500 companies per capita, according to the state’s Department

of Employ ment and Economic Development, with many of its biggest names—Ecolab, United Health, General Mills, Best Buy, 3M and Medtronic— relying on those fields and needing fresh waves of STEM employees. The ability to problem-solve, experiment and work with real-life businesses at ISELF should better prepare, inspire and launch the next generation of graduates with skills that are adaptable and value-added, according to Daniel Gregory, dean of the College of Science and Engineering at SCSU. “We want them to build a career, not just a degree,” he said.

WOW FACTOR Visitors to ISELF are welcomed by an interactive kiosk, which helps them get oriented to the building. In the lobby, a student-built race car showcases design, mechanical and fabrication skills. Potential hums down every hallway. In one room, an international team of students led by Professor Yi Zheng works together on a wireless technology project that Zheng hopes will one day lead to a inexpensive, non-invasive method to measure trauma inside the body.

ISELF helps assure that we attract strong ideas and skilled workers to Central Minnesota.

4TH QUARTER 2014

3-D ARTISTRY: Rapid prototyping slashes development time and costs.

In another lab, students study algae for Algeadyne, a Southern Minnesota company that grows and uses algaes for commercial dyes, chemicals and nutritional supplements. In ISELF’s Visualization and Simulation Lab, Mark Gill, a visualization engineer, calls up three-dimensional views of SCSU’s campus and buildings, a project between the university and Central Minnesota mapping company, GeoComm. SCSU will be the first university in the nation to be three-dimensionally mapped, which in turn will meet a U.S. government goal to harness new technology and assist emergency crews to locate a person in distress more quickly when they call 911. “The address might be a 15-story building or an office with 50 desks,” said Gill, but the technology can pinpoint exactly where a person needing help is and also route the quickest way to them and any helpful equipment (such as defibrillators or fire extinguishers) along the way. The Visualization and Simulation Lab elicits its share of “wows” from prospective businesses and students on college visits. With sweeps of his hand and a few switches, Gill harnesses the visual power of six table-sized touch screens and several wall-sized interactive screens. Yet another

DANIEL GREGORY: “These technologies will have a profound effect on modern manufacturing.”

wall-sized screen uses projectors and 3-D glasses for full, detailed views of everything from a cranial cross section of a brain aneurysm to the contours of a lake bottom. He might be showcasing GeoComm’s mapping, helping students study the intricate chemical structure of a rubrene crystal, or checking images from the Scanning Electron Microscope, which can view particles as tiny as three-billionths of a millimeter. Gill can send an image to all the table screens and have students work in small groups on a particular problem. Then, with an easy swipe of their hands, students can send results and findings to the main screens. Even more valuable: Gill can write custom software to fit faculty and project needs. “It’s a never-ending stream of people coming in with ideas,” Gill said, and that’s what they hoped to have.

MAKING IT The visualization lab “allows you to build things and test them virtually before building them in real life,” said Adel Ali, associate dean of the College of Science and Engineering and director of the School of Computing, Engineering and the Environment. CONTINUED ON PAGE 38

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“ We want them to build a career, not just a degree.”

By Elizabeth Foy Larsen Photography by John Linn

Early childhood development is also economic developmentâ&#x20AC;&#x201D;with a very high rate of return.

EARLY INVESTMENT: The Federal Reserve estimates a 12 percent rate of return when society invests in early childhood development.

4TH QUARTER 2014

TAHNEE FLOWERS: “We’re working to change people’s mindsets that instead of being a K-12 school system, we’re an E-12 school system.”

The first five years are the most critical in a child’s development.

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Last spring, 5-year-old Ethan Johnson marched up to the kindergarten teachers at Garfield Elementary School in Brainerd and informed them he’d be be one of their students starting in the fall. While part of Ethan’s enthusiasm can be chalked up to his naturally extroverted personality, his mom, Trina Johnson, thinks his confidence about school also comes down to one simple fact: Ethan went to preschool. “When I went to kindergarten you had to know your phone number and how to tie your shoes,” said Johnson. “Today, they’re working on letters and math problems. Ethan benefitted so much from learning not only the academic skills but also the social skills that are needed when you are in a classroom full of kids.” The impact of Ethan’s education at Independent School District 181’s School Readiness Preschool at the Brainerd Learning Center extends well beyond the importance of knowing his colors and following directions during circle time. In a study that has been touted across the country, the Federal Reserve Bank of Minneapolis recommends that investing in early childhood education be at the top of every community’s economic development priority list. Why? Children who receive quality early childhood education are less likely to need special education or be incarcerated when they get older— which in turn costs society less. And they are also more likely to graduate from high school, get jobs, pay taxes, and stay off welfare. All told, the Federal Reserve study estimates a 12 percent rate of return for society in general when it makes early childhood investments. “We are learning that there is a huge link between how our young children are growing up and how that affects the future of our communities,” said Tammy Filippi, early childhood associate at the Initiative Foundation. “It’s great to have career development in high school, but we can have even more of an economic impact on the vitality of our communities if we start teaching these skills to children when they are young.”

Costly Consequences

Not making the most of a child’s potential can have serious consequences. Children who aren’t on track with literacy benchmarks at third grade have an exponentially tougher time staying at grade level as they progress through school. Students who fall behind miss out on crucial academic skills and don’t master the habits of being a good student—from turning in work on time and balancing workloads—that lead to becoming valued employees. It’s an issue that resonates with many Central Minnesota companies. A survey by the Lakes Area Human Resources Association found that employers in the region are challenged to find workers who have technical skills and the work ethic and professionalism needed to represent their businesses. “We are seeing some very concerning issues in our workforce when it comes to finding young workers who show up on time, know how to interact with customers, and can take constructive feedback from their bosses and make positive changes to their work habits,” said Filippi. “It’s

Ready for important to garner those skills when children are young when their brains are developing.”

Aligning Actions

To ensure students in the region succeed, coalitions of Central Minnesota school administrators, teachers, child care providers, civic leaders, parents and other community members are coming together to make sure preschools—from traditional learning environments to Head Start programs to in-home daycare providers—align their curriculum with the region’s elementary schools. “Some families think that preschool is more like daycare,” said Christel Cartie, co-owner of Stepping Stones Childcare Learning Center, a licensed daycare and preschool with locations in Brainerd, Baxter and Pequot Lakes. “But the first five years are the most critical in a child’s development.” Creating a preschool curriculum that aligns with elementary school will, experts predict, ensure that students enter each new grade with the skills they need to succeed. It becomes a natural progression that continues through high school graduation. “We’re working to change people’s mindsets that instead of being a K-12 school system, we’re an E-12 school system,” said Tahnee Flowers, early childhood coordinator at Brainerd Public Schools. Under the new program, which is being piloted this year with support from the Initiative Foundation, early childhood teachers observe kindergarten classrooms and then recommend preschool lessons that build the skills they will need to succeed in elementary school. For example, preschoolers now learn how to work at several different stations spread throughout a single classroom because that’s how the district’s kindergartens are structured. Student progress will be measured on reports cards that are divided into the same categories and use the same measurements as Brainerd’s elementary schools. They also develop the social skills that will be expected once they enter kindergarten. “Our preschoolers learn how to transition from one activity to the next,” said Flowers. “They learn how to sit still without touching another child and how to stay focused when another child is distracting them. We teach them that it’s OK to try new things together, even though they might be nervous. We’re create a safe environment for kids to try new things and build that curiosity.”

Shared Structure

Preschools commonly teach these skills to prepare their students for school.

Getting along with others Sharing Keeping hands, arms and feet to yourself when working or playing with others Separating easily from a parent Demonstrating self-help skills, including buttoning, zipping and snapping Showing curiosity and interest in learning Recognizing eight basic colors Re-telling a story by answering simple questions about it Expressing needs and being able to make yourself understood Running, jumping and hopping Cutting out simple shapes Recognizing numerals 0-10 in random order

In addition to fostering communication between schools in the same district, alignment coalitions also are bridging gaps between the districts themselves. The reason is simple: “Kids move,” explained Lisa DeMars, instructional coach for Onamia Elementary School. DeMars recently took part in the PreK-3rd Grade Leadership Institute sponsored by the Minnesota Department of Education and facilitated in partnership with the Initiative Foundation. Onamia is now part of a multi-district coalition that includes Isle and the Nay Ah Shing Tribal School. “Districts usually are silos.

Using five-six word sentences

CONTINUED ON PAGE 40 4TH QUARTER 2014

PART OF THE PLAN: Karlo Goerges and his siblings helped their parents come up with a strategy to pass Pequot Tool and Manufacturing down to the next generation.

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By Gene Rebeck | Photography by John Linn

means

Small towns depend on their local businesses. Here’s how communities can help make sure these economic assets thrive under new leaders. Karlo Goerges, CEO of Pequot Tool & Manufacturing in Pequot Lakes, is all too aware that the precision machining and fabrication business his parents founded in 1981 and devoted their lives to could easily have been lost when they retired or passed away. Back in 1998, the company’s accountant and many area residents were wondering whether Pequot Tool would stay in the family, not to mention their town. His parents were getting on in years and, Goerges recalled, had no idea they had to plan for a time when they wouldn’t be around to run the business. “They didn’t understand the consequences,” said Goerges. But Goerges and his siblings did. They called in the company attorney and a Chicago-based succession planning firm, then sat down with their parents. The advisors noted that not having a plan in place would incur a big tax bite when they transferred the company to their children. “That caught their attention,” Goerges said. By 2002, the plan was finalized, and the second generation of Goerges took the reins. Today, Goerges and three of his seven siblings run the company. That was good news for the Goerges family and for Pequot Lakes. If the family hadn’t made a succession plan, the business most likely would have been sold. And there was no guarantee that the 150 jobs it provided would have remained in its hometown. Making succession plans are crucial—not just for the continued success of family businesses but also for the communities they serve. “If you lose a store, a town loses a great community asset,” said Dan Frank, senior program manager for community and economic development for the Initiative Foundation. And it’s not just the goods and services the store provides. “So often in our small towns, our business owners are leaders in different areas of the community.” Fortunately, the towns where these businesses reside can support businesses by helping them plan for the future.

4TH QUARTER 2014

“ A lot of times, folks don’t talk about succession or transition because it has so much to do with family matters—there are so many emotional issues.”

HEAD OVER HEART

Succession planning sounds like a no-brainer. But the brain is often ruled by the heart, and a business owner’s heart often resists talk of his or her departure. “A lot of times, folks don’t talk about succession or transition because it has so much to do with family matters—there are so many emotional issues,” said Vicki Prock, senior advisor at the Alexandriabased Galliard Family Business Advisor Institute, which advises family businesses on succession and other topics. If there’s more than one possible successor in the family, for instance, which member of that next generation will take over? Might longtime sibling rivalries and jealousies come bubbling up to the surface? What will each family member’s role be after Dad or Mom is no longer running the show? And there are other matters—some emotional, some financial, some a blend of both—that can prevent a successful succession. Some business owners don’t wish to think about succession because it means contemplating aging, or because they don’t have a plan for what they’re going to do once they separate from their business. And in some cases, the owner can’t afford to retire. To pass a business on, an owner needs to have enough equity. If an owner wants to sell, he or she may come to realize “that it really isn’t possible, because they haven’t been able to create enough value for it to be a viable entity for somebody else,” Prock said. In other cases, the owner may continually plow profits and proceeds back into the 32 Initiative Foundation Quarterly ifound.org

business without saving for his or her own retirement. Either way, the owner will tend to try to live off the company’s proceeds— Prock described this as “plundering their way through the business.” Sometimes businesses close because the successor isn’t prepared to take over. He or she might not know how the business works, or how business works—the risks, the financial acumen, not to mention the management requirements. Because of factors such as these, “Historically, there is only a 30 percent chance of success of a transition or succession,” Prock noted. “So if I take every business in my community, and if in one generation I am going to lose 70 percent of those businesses,” one can see why a town or small city needs to pay attention to the next generation.

RIPPLE EFFECT As a group, “small businesses and familyowned businesses produce about 60 percent of our gross domestic product,” Prock noted. “They employ more people than large corporations.” And in small communities, most businesses are familyowned enterprises. What’s more, with the massive retirements of the Baby Boom generation, which are now just beginning, “the potential for economic impact on our communities is probably as high as it’s ever been in the country’s history.” And when a business in a smaller community disappears, that economic impact can be potentially devastating. An empty storefront means that the value of other businesses—and the business

Do you provide small business succession planning services? Are you a consultant or business with an interest in providing small business succession planning? We’d like to hear from you. Please contact Dan Frank at dfrank@ifound.org or (320) 631-2056.

of those businesses—can bet at risk. As Frank observed, “If you had a really popular hardware store that attracted a lot of people into your downtown and it’s no longer there, guess what? The bakery down the street, the restaurant in town, the insurance agent—all of those business can potentially suffer.” So a business with “a good succession plan means that the community wins,” Frank said. “They keep a good successful business. They have new people coming into the community to run that business. They’re keeping leadership capacity and tax capacity. And the other businesses are gaining because the traffic that’s attracting people to the area continues.”

TALK IT UP So what can communities do to help maintain their businesses’ continuity in the face of departing ownership? First of all, it’s essential to simply start talking about it, and talking it up with the local businesses. Communities can join forces with business associations and have speakers come in and talk about the importance of succession planning with their local businesses. Outside resources that can help include state Small Business Development Centers, SCORE and certified public accountants. The challenge, Frank noted, is that there are no affordable, one-source “turnkey solutions” available for smalltown businesses. But communities can help by collaborating with local attorneys and CPAs, boosting the local economy by helping maintain the business and tapping area sources of expertise. CONTINUED TO PAGE 42

HIRE EDUCATION

By Lisa Meyers McClintick | Photography by John Linn and Michael Schoenecker

Hands-on career programs help teens and young adults successfully move into the workplace.

The next generation of workers has a unique set of challenges, including dwindling financial support from parents, mounting education debt, workplace technologies that are constantly evolving and fewer hands-on high school programs to shape the skilled workers many rural industries need.

4TH QUARTER 2014

GAVIN KOLLES An apprenticeship offers a glimpse into a promising industry

Even with a clear goal in mind, almost everyone needs a hand as they ascend into adulthood, aim for a career and achieve sustainable independence. “The large majority of those entering the workforce—whether they’re Millennials, Generation Z or refugees and immigrants—are all eager for hard and meaningful work,” said Don Hickman, vice president for economic and community development at the Initiative Foundation. “The challenge is that the bar for entry into the workforce has been raised. Nearly all jobs now require technological skills, and many expect work experience and a level of ‘soft’ skills in the form of customer service and work habits that few young people have yet had the experience to develop.” Fortunately, several programs supported by the Initiative Foundation are finding a variety of ways to help young adults make the transition into careers go as smoothly as possible. Here are the success stories of three Central Minnesota students who’ve found their career path. GAVIN KOLLES An apprenticeship offers a look into a promising industry Monticello High School senior Gavin Kolles knew he liked working with wood when he started building end tables and shelves in his school’s woodshop classes. He dreamed of getting into the cabinetry business, but labor laws prevented him from being hired at a “dangerous” industry until he turned 18. Thankfully, Kolles, who turns 18 in December 2014, was chosen for a new apprenticeship program coordinated through Wright Technical Center in Buffalo. The program serves eight schools and is geared toward hands-on learners. It helps young people establish relationships in a field of interest, which in turn increases odds of career success if they remain in the region. The center brought back the apprenticeship program after almost 20 years, thanks to an increasing demand for skilled workers that has paved the way for student apprenticeships in industries that Occupational Safety and Health Administration (OSHA) typically limits to adults 18 years or older. “The apprenticeship gets you into places you wouldn’t get into otherwise,” said Kolles, who is working at Eull Woodworks in St. Michael. The experience helps him decide whether he likes the woodworking industry before he makes post-secondary plans and decides on a program to study. “It’s pretty much all hands-on,” Kolles said, and that’s what he enjoys—building a variety of cabinet styles and working with woods such as walnut, cedar, fir, mahogany and maple. “Everybody in the shop has had 20-plus years of experience,” he said, and they’ve been patient and helpful in sharing what they know. 34 Initiative Foundation Quarterly ifound.org

“ The apprenticeship gets you into places you wouldn’t get into otherwise.”

Kolles started his apprenticeship in June, and works at Eull Woodworks for about 15 hours a week, leaving school early for the experience. The Technical Center offers six year-long apprenticeships at different industries; all participants get a minimum of 450 hours of experience. The program helps shape the future for teens like Kolles, who hopes to work the summers at Eull Woodworks while attending St. Cloud Technical College for a cabinetry degree and possibly the University of North Dakota for businesses management. “I think I’m going to open up my own shop,” he said of his career plans. “I like the work, but I also like the business management.” JENNIFER QUIGLEY An opportunity to persevere through hard times Being a hard worker was never an issue with Jennifer Quigley. With a frequently tumultuous family situation, she was working by age 16, sometimes juggling as many as three jobs to support herself. “I worked hard for everything I got,” she said, and that meant staying employed through emotional hits like losing her brother to a drug overdose in 2007. When she graduated from Buffalo High School in 2008, she even paid for her own graduation party before facing an uncertain future. “I wasn’t sure what I wanted to do,” she said. “I knew I wanted to do something with people, likely in the health field.” She started her first semester at St. Cloud Technical & Community College in the fall of 2010, but her dad’s suicide derailed her confidence. “Once he was gone, I didn’t have anybody,” she said. Quigley found help through the Stearns-Benton Employment and Training Council, where career planners offer guidance to teens and young adults between the ages of 17 and 21 so that they can achieve stability and find a solid career. The Training Council helps young people find tutors, better housing, get assistance buying food, build a resume, practice job interview skills and do job shadowing and internships. Quigley’s counselor helped create a budget, figure out her tuition and land an office job at St. Cloud Technical & Community College, which worked like an internship and allowed her aflexible schedule to fit around classes for a dental assistant program. The job gave Quigley the opportunity to practice the soft skills that employees need for office positions and refine her already strong interpersonal skills as she assisted fellow students with scheduling.

“ I don’t know that I’d be where I am today without this program.”

CONTINUED ON PAGE 44

JENNIFER QUIGLEY An opportunity to persevere through hard times

4TH QUARTER 2014

philanthropy

ADAM KEMPENICH: “I was able to focus on what I wanted to do in my future career.”

Lasting Goodwill How a World War II Army secretary from Little Falls built a legacy for her town. By Lawrence Schumacher | Photography by Bill Jones

Adam Kempenich is wrapping up his bachelor’s degree at North Dakota State University and looking toward a future doing what he loves—producing wildlife television shows for cable television. But the 22-year-old Belle Prairie Township native said he might not have found his passion and received the education he needed without the help of the Initiative Foundation-hosted Beverly Pantzke-Johnston Scholarship Fund. Kempenich applied for and received the scholarship as a first-year college-bound student after graduating from Little Falls High School in 2011. “The ability to get that funding changed my freshman year pretty dramatically,” said Kempenich. “Instead of worrying about how to get by, I was able to focus on what I wanted to do in my future career.” Kempenich, a double major in new media web design and broadcast journalism, expects to graduate in December 2014. But he’s already been working on a show called “Wildlife Pursuits” for cable television’s Pursuit Channel as a part-time producer. He hopes to move up to full-time in 2015. 36 Initiative Foundation Quarterly ifound.org

Kempenich is the kind of student that Pantzke-Johnston had in mind when she partnered with the Initiative Foundation to create the scholarship fund that would continue after she died: he served in student government, became general manager of the student-run television production company on campus and was named student leader of the year at NDSU this past spring.

Investing in Opportunity While 80 percent of Americans give to charities during their lifetime, just 8 percent continue their support through a charitable bequest after death, as Panztke-Johnston did, said Eric Stommes, vice president for External Relations at the Initiative Foundation. Yet between now and 2030, an estimated $5.8 billion in wealth will be transferred between generations in Central Minnesota. “It’s a huge opportunity for folks who are retiring to impact their communities through purposeful, planned charitable giving efforts,” Stommes said. “A lot of people don’t realize it’s an option. And it’s a really good option that gives people the feel-good opportunity to give back and to support those things that are important to them.” CONTINUED ON PAGE 48

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A quick look at iself

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STEM SEEKERS CONTINUED FROM PAGE 26

Simulation activities may include analyzing nanotechnology, testing electrical circuits, honing a new medical procedure, preparing the safest emergency evacuation from a sports stadium or checking the downstream effects of a new river dam to make sure it doesn’t cause unexpected flooding. Once a company has done its research, designed a product with AutoCAD and run modeling through the visualization lab, it can progress to ISELF’s rapid prototyping lab. Other labs are set up for robotics, electronics and thermal sciences. In one, a refrigerator-sized Fortus 400MC 3-D printer chugs and whirs as it crafts an array of complicated pieces that wouldn’t have been possible five to 10 years ago. “These technologies will have a profound effect on modern manufacturing,” said Gregory. How quickly a company can access ISELF varies depending on the faculty and demands at the time, but there is no limit on how long they can use the facilities. Some projects may be completed within a few months, while others could continue for years as long as there is growth and a mutual benefit to students and staff. For Semaphore Scientific, Tabat said he hopes to use ISELF resources to grow from 38 Initiative Foundation Quarterly ifound.org

a handful of employees pulling together cutting-edge technology. “In two years, I expect to be at more than 200 people, and I’d like us to be in St. Cloud and continue our relationship with the university,” said Tabat. “Our goal is to be the top organization in this field, and we need a modern facility such as this.”

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We want to make sure we’re all on the same track when a student leaves Isle and comes to Onamia.” Creating relationships with other districts also helps with networking and allows teachers and administrators to share with each other what works. “We only have two or three teachers per grade level in our district,” said DeMars. “Sometimes it’s better to look outside the district for new ideas.”

Parent Participation

NICKI LINSTEN-LODGE: ”Our staff is speaking a common language and then conveying that information to parents.”

Using a uniform set of benchmarks and progress reports also helps parents understand more clearly how they can support their child’s learning, both at home and at school. “The biggest benefit of aligning the curriculum is that our staff is speaking a common language and looking for the same skills and then conveying that information to parents,” said Nicki Linsten-Lodge, the coordinator of the Early Childhood Coalition in the Pine River-Backus School District. That’s important when you consider the crucial role parents play in any child’s education. “Parents are their children’s first and most important teachers,” said Filippi. “When you read to your child you are developing her brain and promoting her social and emotional development. The eagerness to learn and explore is something every parent can model.”

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We’re creating a safe environment for kids to try new things and build that curiosity. The Initiative Foundation invests in several programs that support parents taking an active roles in their children’s development and education, from in-home visits that start when a woman is pregnant to parenting support groups. Fathers Reading Every Day (FRED) encourages fathers to read to their children to improve literacy skills and to develop closer, more involved relationships. Working together, parents and schools can contribute to the success of not only the region’s schools but also the economy. “Ultimately our businesses are getting the product of our school district,” said Shannon Wheeler, coordinator of the Brainerd Lakes Area Early Childhood Coalition, which helps families get access to quality preschool programs, services and resources. “What we are reaching for is a community of lifelong, engaged learners.”

GROWTH INDUSTRY: Serena Bowman (left) and Christel Cartie are the co-owners and directors of Stepping Stones Childcare Learning Center.

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“ A good succession plan means that the community wins.”

EMILY NORTHEY: “If we want business districts to keep providing services that the community has grown to expect, business succession planning seems to be a pretty clear need.”

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When is the best time for communities to help their businesses start making succession plans? Ideally, Prock said, “when the business starts. It takes a long time to get to all of the issues of transition.” Business owners need to make financial plans for their transition. And if there are no children who wish to join the business, the owner will have to look at bringing on a partner who will eventually take over.

WHAT’S NEXT

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Another resource that communities can tap is the Main Street Program, a national initiative that seeks to revitalize and strengthen communities’ traditional commercial districts. Emily Northey, Main Street coordinator for the Preservation Alliance of Minnesota in St. Paul, says that while the program typically focuses on the appearance of the community’s central business district, the local coordinators that

it trains also help a community sustain itself economically. Earlier this year, the Preservation Alliance conducted a succession planning training seminar. “When I’m looking at our Main Street communities, they have a lot of business owners who are over 65 or close to 65,” Northey said. “So if we’re talking about how we keep these districts providing services that the community has grown to expect . . . business succession planning seems to be a pretty clear need.” Northey noted that local Main Street coordinators can help encourage businesses to pursue succession planning. First, coordinators should inform business owners what succession planning is, and what resources are available. One of the goals, she added, is to help succession planning not “seem like a scary endeavor.” One way to take the fear out of the process, Prock suggested, is to have

businesses and their advisors look at and discuss succession more as a “transition,” and that planning for this be a part of a company’s business plan. “It’s just a part of good business practice,” she noted. In addition, the conversation of transition should emphasize “how it can be rewarding and enriching—that it doesn’t have to be about demise and getting old.” Indeed, it’s important to emphasize the positive aspects of succession planning and that it can be an opportunity to plan for a rich new chapter in life. Today, Karlo Goerges is 61 and he and his siblings are planning how to transition out of Pequot Tool. “If you don’t have a succession plan and you are forced to make a change in ownership, that could damage your ability to stay in business,” he said. “You might make some bad decisions in a short period of time.”

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“They were extremely helpful in getting me through school and helping me get a job,” said Quigley. “It’s a strong team that has your back.” Quigley was able to graduate in May 2013 with confidence and enthusiasm. She quickly launched into her career with a position at Shamblott Family Dentistry in Hopkins. She commutes from Rogers, where she lives with her husband, Kyle, and their 2-year-old daughter, Rylee. “I don’t know that I’d be where I am today without this program,” said Quigley. “It sounds cliché, but you have to stick with it. You can’t give up.” TJ GRAVES Starting young with a homegrown businesses Central Lakes College freshman TJ Graves can tell you exactly when last winter’s worst storm hit the Brainerd area: Dec. 1, 2013. It’s hard to forget a snowfall that was such a whopper that school closed for two and a half days. “I had four hours of sleep and plowed for 40 hours,” said the 18-year-old entrepreneur and owner of TJ’s Lawn Care. Graves started his business by shoveling his neighbor’s driveway when he was 12-years-old. He stuck with it, adding lawn mowing and customers, until he eventually partnered with his dad, Tom. Together they took on 15 rental properties. Graves gained enough customers that he had to hire older students with driver’s licenses to get him to those properties. By 2012, he was able to buy a truck with a snowplow and work all winter.

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While he was in high school Graves was introduced to Bridges Career Academies and Workplace Connection, which helps expose kids to work opportunities through career exploration days, speakers from the business community and specialized classes called career academies. In eight years, it’s grown to nearly two dozen Central Minnesota school districts and 99 academies that encompass everything from health care and pre-nursing to engineering and child development. Graves took several Bridges Academy courses, especially any that involved small animal science, plant science and natural resources, and those that taught him how to do resumes and to work in groups on projects. “They were the most beneficial classes in high school,” he said. Graves also stayed extremely active in the Brainerd-Baxter area’s FFA agricultural education program, running the website and Facebook pages. He even earned two $1,000 grants from the National FFA and a grant for FFA alumni, which he used to fund new equipment, including a plow for his dad’s truck. In 2014, he purchased a third truck, with the intent to hire an employee. Last year he had 28 customers and 47 properties. He’s not advertising fall cleanup work this year as he adjusts to classes at Central Lakes College and works toward degrees in both landscape technology and heavy equipment operations. But he’s no stranger to juggling school and work either. While high school classmates could stay warm in their beds, Graves and his dad were bracing for a cold winter night. “We would be up snowplowing at 1 or 2 a.m.,” he said. “It made for a long day. I was always grateful when we had a two-hour late start.”

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LakeLady Custom Rods Pequot Lakes, Minn. By Maria Surma Manka Photography by John Linn

Fifty years ago in Kansas, Kris Kristufek stepped on and broke his grandmother’s prized bamboo fly fishing rod. She demanded that he make her a new one, which he did using a willow branch, a string and a hook. Little did he know that after a successful run in the oil industry, that event would eventually lead to a second career building custom rods in the woods of northern Minnesota. But that’s exactly what happened when, restless in retirement, Kristufek visited the Brainerd library for information on custom rods. Although his first attempt was “terrible,” Kristufek kept trying, even attending master rod-building classes around the world. He launched LakeLady Custom Rods in 1999, more as a hobby than a serious business venture. But the popularity of the beautifully crafted and technically accurate rods turned it into a year-round labor of love. LakeLady Custom Rods are built according to the angler’s hand and arm measurements and exact specifications. They are ergonomically correct and accurately fitted to the individual. The rod is then completed and decorated according to the customer’s wishes. An Australian customer, who found LakeLady on the internet, requested a “Little Mermaid” rod as an anniversary gift for his wife—complete with Ariel on the rod’s split-grip handle. We got hooked on the idea of custom rods and caught up with Kristufek to learn more.

46 Initiative Foundation Quarterly ifound.org

REEL SUCCESS: Kris Kristufek lauched LakeLady Custom Rods as a hobby.

Crucial Questions Customers have to answer an extensive questionnaire to help Kristufek build a rod to their exact needs and specifications. Intended use, action and blank power, type of guide and reel—even grip materials can be customized. Worthy Wait A rod is typically built in six to eight weeks, although that time can stretch into months for intricate rods and designs. An angler may have to wait up to a year for a bamboo rod, which requires an extraordinary amount of time for stripping, varnishing and air drying. It’s Official In 2001, LakeLady Custom Rods was named the official Minnesota Governor’s Fishing Opener rod crafter for Gov. Jesse Ventura and his party. Supply and Demand Most of the 100 to 150 rods that Kristofek builds each year are for freshwater fishing, including spinning rods, pike rods, bobber rods, muskie rods and some fly rods. The majority of customers come from Minnesota and surrounding states.

Twisted Technique Kristofek uses a technique called spiral wrapping, which typically cannot be found on massproduced rods. The line guides are wrapped around the rod from the zero to the 180 axis, turning a casting rod into a spinning rod. This keeps the rod stable and improves casting distance and accuracy.

Delicate Designs Feather inlays are a common design request, as is colorful thread weaving and paint jobs that match the angler’s boat. One angler gave Kristofek three diamonds to embed in her rod.

Buy Local The graphite and carbon fiber materials, as well as most of the blanks, are sourced from St. Croix Rods in Wisconsin. The only material not produced in the United States is the cork for the handles, which comes from a factory in Portugal—the country that produces 90 percent of the world’s cork.

Discarded Beauty Kristofek buys and scavenges for burl wood, which is diseased or knotted hardwood. Usually too knotty for furniture, small pieces of burl wood can be “beyond beautiful” in a fishing rod. Customized Care When Kristofek met a passionate muskie fisherman who had lost his entire left arm and part of his right hand in the Iraq War, he devised a one-of-a-kind rod that the angler could hold and reel in with his prosthetic hand.

4TH QUARTER 2014

continued from page 36

In her youth, Panztke-Johnston and her mother took in boarders at their Little Falls home to make ends meet after their family grocery store burned down and her father died suddenly. As a teenager, she put aside dreams of college and got various jobs— as an Army secretary at Camp Ripley during World War II, as a stenographer for the American Red Cross and Minnesota Light and Power and as U.S. Customs inspector. Thanks to a keen eye for investments—including Microsoft stock—Pantzke-Johnston had amassed a considerable estate when she passed away in 2013 at the age of 89. But she already had a plan for what she wanted to do with that money, said Tom Gates, her nephew and executor of her will. Before the death of her longtime husband, Phillip, PantzkeJohnston established a living trust for the charities she supported. She also had a fond spot in her heart for Little Falls, and a deep belief in the power of education. “She felt, as I do, that the important thing this country needs is more educated kids,” said Gates. “And a lot of them just don’t have quite enough to go to college.” That’s why Panztke-Johnston set up a scholarship fund for Little Falls students through the Initiative Foundation, starting with $25,000 and growing over 10 years to roughly $100,000. That was enough to provide $2,000 scholarships to the four or five students who qualified in 2013. But there was a surprise upon her death: After donations specified in her will were granted to each charity, the $336,000 remainder of her trust was designated entirely for the scholarship fund. That resulted in one of the largest gifts the Initiative Foundation has ever received, and increased the value of her scholarship fund to just under $500,000. Now even more Little Falls students can benefit from Pantzke-Johnston’s goodwill.

Making a Plan Good end-of-life gift decisions begin with an attorney who understands estate planning. Stommes said there are several options available, including gifts of cash, stock and securities, real estate and other property, as well as income-producing gifts such as charitable gift annuities and charitable remainder trusts. The tax benefits mostly accrue after death by reducing the amount of the estate that is taxable, said Lee Hanson, principal at Gray Plant Mooty and a member of the Initiative Foundation’s board of trustees. “If you have a large estate, Uncle Sam and the state of Minnesota get half of that gift,” he said. “Planning your endof-life gift means less goes to taxes and gives you the good will of supporting what’s important to you.” Certain end-of-life arrangements can even reduce your end-ofyear tax liability, according to Hanson. An example is a charitable remainder trust, in which a donor gives assets to a charity with the understanding that they will pay the donor an annuity from their sale until the donor dies. The charity then retains the remaining value of the donated assets. Panztke-Johnston was inspired in her estate-planning efforts by Gates, who with his wife set up their own end-of-life giving plan years ago. Seeing her lasting effect on the community she loved has only reinforced his decision. “She was a one-of-a-kind person,” said Gates. “It’s great that as many people as possible are going to benefit from her gift. She would have wanted it that way.”

OUTRIGHT GIFTS

Planned Gifts No matter the size of your estate, here’s how you can follow Beverly Pantzke-Johnston’s lead.

These gifts of cash, stock, securities, real estate or property give you a charitable deduction for the full market value of the asset and do not require payment of capital gains taxes as a result of the transfer.

INCOME-PRODUCING GIFTS The donor receives financial benefits in return for the contribution, and the charity receives the full remaining value upon the donor’s death. Tax benefits depend on market values of assets donated and retained income values.

ESTATE GIFTS These gifts, such as a bequest or beneficiary designation on a life insurance policy, do not generate a tax deduction for the donor during their lifetime, but are exempt from estate taxes.

48 Initiative Foundation Quarterly ifound.org

When you give, expect change. Your donations stay in the Brainerd Lakes area to fund year-round programs and services. Give during the Christmas season at red kettles, and online anytime at SalvationArmyNorth.org/brainerd

Donations Double

Thursday, Dec. 11 All red kettle donations will be matched on Dec. 11 at the Baxter Mills Fleet Farm store.

C onvenience is more than having the snow shoveled. C onvenience is more than having the snow shoveled.

It’s having meals in our dining room. Someone to help with the housekeeping. And transportation to places you need to go. When you move into one of our caring communities, you can have all that and more. Which makes it easier to enjoy your new life, and become a part of community can room. feel a real sense of It’sahaving mealswhere in ouryou dining Someone to belonging. help with the housekeeping. And transportation to places you need to go. When you move into one of our caring communities, you can have all that and more. Which makes it easier to enjoy your new life, and become a part of a community where you can feel a real sense of belonging.

To learn how you can get more out of life, visit www.good-sam.com/brainerdlakes. To learn how you can get more out of life, visit www.good-sam.com/brainerdlakes.

The Evangelical Lutheran Good Samaritan Society provides housing and services to qualiﬁed individuals without regard to race, color, religion, gender, disability, familial status, national origin or other protected statuses according to applicable federal, state or local laws. Some services may be provided by a third party. All faiths or beliefs are welcome. Copyright © 2014 The Evangelical Lutheran Good Samaritan Society. All rights reserved. The Evangelical Lutheran Good Samaritan Society provides housing and services to qualiﬁed individuals without regard to race, color, religion, gender, disability, familial status, national origin or other protected statuses according to applicable federal, state or local laws. Some services may be provided by a third party. All faiths or beliefs are welcome. Copyright © 2014 The Evangelical Lutheran Good Samaritan Society. All rights reserved.

4TH QUARTER 2014

START UNDERSTANDING. T

oday’s consumers purchase only when they’re good and ready. The old ways of promoting your company just don’t work anymore. It’s our job to find the combination that unlocks their unique purchase paths. We can give you access to research that will help you better understand your customers and why they buy. But it’s more than just having the right research, media mix and marketing tools. It’s knowing how to combine and customize them for your success.

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50 Initiative Foundation Quarterly ifound.org

SCHEDULED TRANSPORTATION UP TO 14 DAILY TRIPS TO AND FROM THE MINNEAPOLIS/ST. PAUL AIRPORT

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4TH QUARTER 2014

whereâ&#x20AC;&#x2122;s IQ?

THINK YOU KNOW? Send your best guess to IQ@ifound.org by Jan. 15, 2015. Three winners will be chosen, at random, to receive a $25 GiveMN.org gift card to support the charity of their choice. HINT: At the crossroads of highways 71 and 55. Congratulations to everyone who correctly recognized Moraâ&#x20AC;&#x2122;s Dala Horse in the previous edition of IQ Magazine. The Dala Horse was built in 1971 by the area Jaycees and was presented to the community as a reminder of their cultural heritage. Jenny Gunsbury, Stella Real-Werner and Diane Seefeld were the lucky winners of GiveMN.org gift codes.

52 Initiative Foundation Quarterly ifound.org

Does your business exist within Google?

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