IQ
SPRING 2019
ECONOMY
Where Skills are Gold— New trade and industrial career options Pg. 10
COMMUNITY
Embracing the American Dream— Opportunities for entrepreneurial immigrants Pg. 12
PHILANTHROPY Life is Good— The promise of a new scholarship fund Pg. 42
INITIATING CHANGE 2.0 Initiators Fellowship expansion brings social entrepreneurship to more of Greater Minnesota. Pg. 28
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IQ Initiative Foundation SPRING 2019
Contents FEATURES
DEPARTMENTS
16
6
22
Bridge Builders
Meet the leaders who are creating connections in Central Minnesota.
Searching for Civic Solutions
How local communities are tackling the child care crisis.
28
Initiating Change 2.0
34
Succession Success
Growing social entrepreneurship in Greater Minnesota.
Initiatives:
Regional Highlights
Get the latest highlights from the 14-county area.
8
Luncheon Series:
Growing Home Event
Highlights from our 2018 luncheon series.
10
Economy:
Where Skills are Gold
Wright Technical Center expands training for trades and industrial careers.
12
New life for a much-loved Cambridge business.
Community
Embracing the American Dream
Giving entrepreneurial immigrants tools to start their own businesses.
42
Philanthropy:
Life is Good
A new scholarship fund with a silver lining for students.
46
Home made:
Lupulin Brewing
What’s hopping at this Big Lake brewery.
48
Where’s IQ?
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3
Dear Friends, The Initiative Foundation—and all of Greater Minnesota—lost a dear friend in early February when John Kuester of Elk River passed away. An award-winning rural community developer, John played a pivotal role as one of the regional leaders who assisted the McKnight Foundation in giving shape to what became the six Minnesota Initiative Foundations, including ours, serving Central Minnesota. In 1986, he become one of our original Trustees. “John had a passion for rural areas and agriculture,” said Kathy Gaalswyk, founding president of the Initiative Foundation.“He was a skilled planner and strategist, and he had great ideas about how to diversify local economies and address the needs of the people living in the region during those tumultuous times.” I had the good fortune to meet with John several times after I joined the Foundation in late 2016. He was eager to recount some history of the organization, and I have fond memories of laughing in the car together as he shared stories and showed off some of his favorite spots around Sherburne County. In other words, more than 30 years after he helped get the Initiative Foundation off the ground, he remained enthusiastic about community and the work of the Foundation he helped launch. You can see John’s legacy in all that we do, and in every edition of IQ, starting with the cover featuring one of our distinguished inaugural Initiators Fellows, Annie Deckert, also of Sherburne County. John also advised John Kuester, founding member of the Initiative Foundation’s Board of Trustees. staff on creating nonprofit grant and business loan programs, supporting businesses like Leader in Cambridge, featured on page 34. He played a crucial role in creation of the Three Rivers Community Foundation, the first of our Partner Funds. The Foundation now hosts more than 120 such funds which provide grants and scholarships to the 14 counties we serve—and beyond—including one of our newest funds, the Silver Lining Fund, featured on page 42.
VOLUME 29, SPRING 2019
Initiative Foundation President | Matt Varilek Marketing & Communications Director | Bob McClintick Marketing & Communications Associate | Allison Norgren Editorial Managing Editor | Elizabeth Foy Larsen Writer | Lisa Meyers McClintick Writer | Gene Rebeck Writer | John Reinan Writer | Andy Steiner Writer | Maria Surma Manka Art Art Director | Teresa Lund Photographer | John Linn Photographer | Paul Middlestaedt Advertising Advertising Director | Brian Lehman Advertising Manager | Ashly Gilson Advertising Manager | Lois Head Advertiser Services | Julie Engelmeyer Subscriptions Email info@ifound.org to subscribe or to make subscription inquiries.
John was wise. He was insightful. And he liked a good story, especially if it involved progress in the communities of our region, like the ones that appear on the following pages. Enjoy the magazine.
Matt Varilek PRESIDENT
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.
DELUXE.COM Printed at Deluxe Branded Marketing with Soy-Based Ink on Recycled Paper
4 Initiative Foundation ifound.org
Initiatives
WADENA TODD
CROW WING
MORRISON
MILLE LACS
PINE
BENTON STEARNS
ISANTI SHERBURNE
CHISAGO
Regional Investment Highlights
CASS
KANABEC
IQ
WRIGHT
WESTERN MORRISON COUNTY | Workshops Help Manufacturers Shine in Tight Labor Market Small and mid-sized regional manufacturers learned leadership, team dynamics, improvement practices and the 6S method (sort, set in order, shine, standardize, sustain and safety) during a series of training sessions coordinated by Enterprise Minnesota and underwritten by the Initiative Foundation and Compeer Financial. The sessions were held in Little Falls, Brainerd and Braham during late 2018, with a goal of helping manufacturers become more efficient and competitive in a tight labor market.
TODD COUNTY | Park Upgrade Honors Local Little League Hero A new granite sign has set in stone Motley’s tribute to longtime little league coach Ernie Converse. Supported by a grant from the Staples-Motley Area Community Foundation (SMACF), a Partner Fund of the Initiative Foundation, the granite installment features a ballpark design sketched by a Converse family relative. The new sign replaces a wooden sign that blew down during a storm several years ago. The SMACF grant also helped with the installation of new park benches at Ernie Converse and Farber parks.
WADENA COUNTY | Jump Start Series Lifts Up Aspiring Menahga-Area Entrepreneurs MORRISON: Enterprise Minnesota 6S class participants practice a simulation for better manufacturing process.
NORTHERN
Menahga-area entrepreneurs and business owners are getting a helping hand with their business plans through Jump Start Menahga!, a six-week course supported by an Initiative Foundation grant in partnership with the city, the Economic Alliance and the Small Business Development Center. Classes got under way in January and offer participants a chance to refine their business plan and learn how to conduct market research and secure financing.
CASS COUNTY | New Community Foundation Paving Way for Hackensack Vitality The Hackensack Game Changers, a committee of the newly formed Hackensack Lakes Area Community Foundation, have hit the ground running by adding a map of the city along the Paul Bunyan Trail and business-sponsored flower pots throughout town. The community foundation got its start thanks in part to grant support from Minnesota Power, Xcel Energy and the U.S. Department of Agriculture’s Rural Community Development Initiative.
CROW WING COUNTY | Future Looks 10 Times Brighter for Pequot Lakes Students The Patriot Foundation, an Initiative Foundation-hosted education fund to support Pequot Lakes-area students, has grown tenfold thanks to an anonymous gift of $100,000 in December 2018. Superintendent Chris Lindholm says the group is “humbled, honored and energized by the incredible generosity of this anonymous donor.” The Patriot Foundation will now be able to provide $7,500 in innovation grants to Pequot Lakes school staff in 2019 and five $1,000 scholarships for graduates.
MILLE LACS COUNTY | Literacy Opportunities Abound in Onamia MILLE LACS: Children grab a book from the Little Free Library at Herington Park in Onamia.
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Many hometowns across the region have a claim to fame, and Onamia is embarking on its own: Its goal is to become the Little Free Library capital of Minnesota! Through grant support from the Initiative Foundation and the work of the Onamia Early Childhood Coalition, Onamia has installed 10 Little Free Library stations throughout the city. The libraries enable residents to donate and borrow books. Coordinator Susan Bracken says the Little Free Libraries are helping the community become “literacy-rich.”
“ Anyone who would like to repay the community … to thank their community for all that’s been provided … the Initiative Foundation is a great vehicle to make that happen.” – Patrick Mitchell of the Patrick and Jane Mitchell Family Fund, a donor-advised Partner Fund of the Initiative Foundation
SOUTHERN BENTON COUNTY | Sauk Rapids-Rice Students Dig into History Lessons Students at Sauk Rapids-Rice Elementary got their hands dirty while learning about local history, thanks to a grant from the Sauk Rapids-Rice Education Foundation. Math, science and history were studied through a project where students used metal detectors to locate lost and planted items. Students also conducted research to find the origins of discovered items and to determine the objects’ value and properties. One student even found an old foil milk cap used on glass bottles in the 1900s.
SHERBURNE COUNTY | Rail Spur Grant Keeps Industrial Park Transition on Track A 7,000-foot rail spur will help to keep on track the planned construction this summer of a Northern Metal Recycling facility in Becker. Backed by a $1 million Minnesota Department of Transportation grant, the spur will help to repurpose the industrial park as Xcel Energy decommissions two coal-fired power plants over the next decade. Xcel’s decades-long presence in Becker provides 300 jobs and three-fourths of the city’s tax base. Early Initiative Foundation grants helped to fund feasibility and engineering studies to mitigate the adverse economic impact.
STEARNS COUNTY | Hometown Turnaround Opportunity Sparks Ideas Pop-up stores, empty-building tours, murals and “Ninja cleaning” with a power washer: They’re all ideas shared by renowned community development specialist Deb Brown during her Initiative Foundationsponsored fall 2018 visits to Avon and Cold Spring. Brown urged Avon residents to advertise hunting and fishing tourism and to update Interstate Highway 94 signage. For Cold Spring, Brown recommended community murals to make downtown more inviting.
SHERBURNE: Sherco Solutions: (Left to right) Dan Weber, assistant Sherburne County administrator; Greg Pruszinske, Becker city administrator; and Mark Osendorf, community relations and economic development manager at Xcel Energy.
WRIGHT COUNTY | Monticello, Big Lake Food Shelves Talk Collaboration When it comes to nonprofits, collaboration is key. With support from an Initiative Foundation grant, food shelf organizations in Big Lake and Monticello have retained a consultant to explore ways to combine services as an alternative to building expansions. Client surveys have been administered and a joint committee of individuals from both boards has been formed to help move discussions forward.
EASTERN
CHISAGO COUNTY | North Branch, Chisago Lakes Take Bike-Friendly Approach North Branch and Chisago Lakes are paving the way to be designated Bike Friendly Communities, thanks to the work of the Bicycle Alliance of Minnesota and grant support from the Initiative Foundation. An assessment was completed for North Branch, and teachers will be trained on elementary curriculum called “Walk! Bike! Fun!” Once designated, they will join more than two dozen other bike-friendly communities in Minnesota. A similar effort is under way in the Brainerd Lakes area.
ISANTI COUNTY | Survey Shows Staunch Support for Broadband Expansion There’s a healthy appetite for expanded broadband services in Isanti County, according to a Blandin Foundation and Initiative Foundation-funded survey. Ninety-two percent of respondents said highspeed internet was important to the region, and 95 percent of business owners stated internet is essential to their operations. An Isanti County broadband task force will partner with Brainerd-based Consolidated Telephone Company to expand access.
KANABEC COUNTY | Mora, Braham Industrial Parks Ready for Commercial Growth The Mora Industrial Park is certified as Shovel Ready, thanks to the work of the county’s economic development authority (EDA) and Initiative Foundation grant support. The industrial park’s access to highways makes it an ideal location to attract commercial growth. The EDA is particularly interested in attracting manufacturers, which offer wages that run 17 percent higher than the state’s average. Braham’s industrial park was certified as shovel-ready in June 2018.
CHISAGO: The Bicycle Alliance of Minnesota has designated 25 communities as Bike Friendly.
PINE COUNTY | Art Opportunities Aplenty at Pine Center for the Arts There’s more room for dance, art and music at the Pine Center for the Arts in Pine City after the roof was recently repaired. With a major roof leak, water had badly damaged parts of the building, squeezing the summer arts program into a small space. The Greater Pine Area Endowment, an Initiative Foundation Partner Fund, provided a project grant that has restored creative space for students and instructors. SPRING 2019
7
Growing Home
COLLABORATING, CELEBRATING: An attitude of gratitude prevailed in each of the three cities we visited.
2018 Luncheon Series We are so thankful we were able to celebrate regional successes with 400-plus friends and partners at the Braham Event Center, the Gorecki Center at the College of Saint Benedict in St. Joseph and Cragun’s Legacy Pavilion near Brainerd this past October. • We heard from guest speakers Heidi Braun and Natasha Fuller with the Women Who Weld program at Pine Technical and Community College in Braham. • Hudda Ibrahim, an Initiators Fellowship alumna, was joined by Rick Bauerly, managing partner and CEO at Granite Equity Partners, and together they shared the achievements of the Initiators Fellowship program at the St. Joseph luncheon. • Sheila Haverkamp, executive director of the Brainerd Lakes Economic Development Corporation (BLAEDC), was joined by Tom Haglin, owner and president of LINDAR Corp./Avantech, to elevate the successes of BLAEDC’s Key Recruitment Program.
“ It was a great opportunity to learn more about what the Foundation is doing around the region and to hear some of the personal stories of the Foundation’s impact.” – Brainerd luncheon attendee
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Baxter-area native Quinn Nystrom shared her Initiators Fellowship achievements at the Brainerd luncheon, including the local and national reach she’s achieved as an advocate for Type 1 Diabetes awareness.
Attendees enjoyed home-cooked food at the Braham Event Center on Oct. 2.
Sponsorships The Initiative Foundation would like to extend a special thank you to all of our Growing Home luncheon sponsors.
Premier Sponsors
A $1,000 grant was awarded to a regional nonprofit at each location. The Braham Area Education Foundation accepted the grant at the Braham event. Other grant awardees included the Brainerd Lakes Economic Development Corporation (BLAEDC) and the St. Cloud-based YES Network.
Partner Sponsors • Granite Equity Partners, LLC • Gray Plant Mooty • HYTEC Construction • IPEX, Inc. • Schlenner Wenner & Co.
Full Table Sponsors
• Aurelius Manufacturing Company • Entrepeneur Fund/Women’s Business Alliance • Frandsen Bank & Trust • Long Prairie Packing Company • MidWestOne Bank • Neighborhood National Bank • NOR-SON, Inc. • Rotochopper, Inc. • SpartanNash • Steve and Leila Shurts & East Central Energy
Half Table Sponsors • BlackRidgeBANK • Brainerd Lakes Area Chambers of Commerce • Brainerd Lakes Area Economic Development Corporation • Central Lakes College • Central Minnesota Credit Union • DAYTA Marketing • Deluxe Branded Marketing • Edelweiss Cabinetry • Eich Motor Company • First Bank & Trust • LINDAR Corp./ Avantech • Quinn Nystrom • Two Rivers Enterprises, Inc.
SPRING 2019
9
economy
BRIAN KOSLOFSKY: “We’re trying to establish a greater partnership with industries and make great use of our space.”
Where Skills Are Gold Wright Technical Center expands training options for students who are eager to find a future in hands-on trades and industrial careers. By Lisa Meyers McClintick | Photography by John Linn
By mid-afternoon, the hydraulic whir of automotive lifts goes quiet and the smell of fresh sawdust and hot metal fades from the workshops of Wright Technical Center, a cooperative of eight school districts that focuses on hands-on trades and industrial skills. Unlike most high schools, no Nikes squeak across gym floors. And no music comes and goes from the band room. But it’s the silent hours at this specialized non-traditional high school in Buffalo that some area leaders see as an opportunity. That’s because Wright Technical Center opens its doors to adults, too—a solution that also benefits Central Minnesota employers who are hungry for skilled employees due to Baby Boomer retirements and the lowest unemployment rate since 1999. While towns across Minnesota are trying to raise money to fund much-needed technical and trade training programs for high school students, Wright Technical Center already has an 83,000 squarefoot school with labs and workshops for more than 70 classes in 12 programs that include health care, welding, automotive technology 10 Initiative Foundation ifound.org
and law enforcement. “During the afternoon, evenings, weekends and summers, our building is open and available,” said Brian Koslofsky, Wright Technical Center director. “We’re really trying to establish a greater partnership with industries and make great use of our space.”
Natural Assets
The Technical Center was created in 1971, when many school districts were cutting back on industrial arts classes. By pooling the assets of several school districts, they formed a cooperative that could keep these classes going for students who wanted hands-on learning. The Technical Center, which also offers some special education and alternative learning programs, trains approximately 650 students every day. It’s one of only six career and tech schools in the state; most of the others are extensions of post-secondary technical or community colleges. Wright County sits in a gap between the Twin Cities and St. Cloud, a region rich in manufacturing. It’s also growing as the metro area expands geographically, boosting industries such as health care,
construction and law enforcement. “Wright County is projected to be the fastest-growing county in Minnesota during the next 15 years,” said Duane Northagen, executive director of the Wright County Economic Development Partnership. Unfortunately, it’s about 30 minutes to an hour to the nearest technical college. That can be a hardship for adults who have jobs and/or children and can’t wedge another commute into their day. “The average Central Minnesotan already drives 30 miles each way to work each day,” said Don Hickman, vice president for community and workforce development at the Initiative Foundation. Offering satellite college classes at Wright Technical Center may make it possible for more adults to get further education or attain certification for better jobs or advancements. The location also can be convenient for employers who need to train staff but don’t have their own classroom space or available equipment due to around-the-clock manufacturing. Anoka Technical College has offered certified nursing assistant satellite classes and used the center’s 10-bed hospital unit, and NAPA Auto Parts also has used the Wright Technical Center for employee training, according to Koslofsky. A recent $10,000 Initiative Foundation grant to the Wright County Economic Development Partnership will help bring about more
opportunities. “I’m always looking for natural assets that we have in the county to utilize,” Northagen said. “This was one of those big tools that was already in place.”
Tracking Trends
In an effort to meet industry changes and keep up with technology, Wright Technical Center has been upgrading its programs since 1978. More than $400,000 was invested this past summer to add plasma welders to the welding program and a new wheel balancing machine for the auto repair shop. Northagen plans to use the Initiative Foundation grant to get the word out by connecting with major employers and manufacturing companies, asking them what their biggest needs are and by creating a database of employers. That may also help high schools do a better job of letting parents and students know about well-paid career opportunities in their own backyards—opportunities that don’t require a four-year college degree and the associated tuition. In some cases, employers may cover a student’s technical college tuition and simultaneously pay them for on-the-job workplace training. “At a time when virtually every employer is short of a skilled workforce, this is as close to a magic solution as we get,” Hickman said.
WRIGHT TECHNICAL CENTER
IN THE PIPELINE
Who uses it: Eight member school districts created this alternative high school for kids: Annandale, Big Lake, Buffalo-Hanover-Montrose, Delano, Howard Lake-Waverly-Winsted, Maple Lake, Monticello and St. Michael-Albertville.
How employers can find skilled workers
Programs: 12 advanced career and technical areas designed for junior and senior high school students include automotive, construction, cosmetology, early childhood elementary education, health science, law enforcement and first responder, welding, graphic communication, introduction and pre-engineering, on-the job training, apprenticeships, and the local Creating Entrepreneurial Opportunities (CEO) program. Students may earn industry certifications and college credits. Wright Technical Center partners with 25 post-secondary institutions, which offer more than 70 different college course options. For more information: Wright Technical Center, wtc.k12.mn.us Wright County Economic Development Partnership, wrightpartnership.org
Employers in need of skilled workers can also check out Minnesota’s Private Investment, Public Education, Labor and Industry Experience (PIPELINE) program. It offers grants to companies so they can provide dual training that combines classroom work with paid, on-the-job experience in areas of advanced manufacturing, agriculture, health care services and information technology. About a dozen Central Minnesota employers, mainly in health care and manufacturing, have been among the employers awarded 83 grants totaling close to $3.3 million since PIPELINE was established by the Minnesota Legislature in 2014. More than 670 employees have benefitted from it, according to the Minnesota Office of Higher Education. The next round of grants will be in the spring 2019. More information is online at dli.mn.gov/pipeline.
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community
ECONOMIC POTENTIAL: Enterprise Academy students Sahra Shukri (center) and Shafi Mohamed (right) with Initiative Foundation Program Specialist Abdirizak Jama.
Embracing the American Dream The Enterprise Academy gives entrepreneurial immigrants the tools they need to start their own businesses. By John Reinan | Photography by Paul Middlestaedt
You’d think that someone with three college degrees and a master’s in business administration on the way wouldn’t need advice on running a business. That’s not how Ahmed Ali sees it. Ali, a recent graduate of the Initiative Foundation’s Enterprise Academy, said the experience was vital to him as he prepared to launch his business, Fortune Trucking. “It is an amazing program for potential entrepreneurs,” said Ali, 35, a St. Cloud resident who was born in Somalia. “I have been able to learn from people with significant experience about marketing my business, putting business proposals together, balance sheets and other financial statements. “These are people who are entrepreneurs, who have been there and done it.”
That’s exactly what the Initiative Foundation hoped for when it began planning the academy three years ago. The idea grew from a simple statistic that jumped out at Foundation strategists: While the population of Central Minnesota was about 9 percent people of color, only about 3 percent of businesses were minority-owned. “Three of our top strategic goals were to help new entrepreneurs get started, help existing entrepreneurs expand and help financially disadvantaged populations,” said Jeff Wig, the Foundation’s vice president for entrepreneurship. Helping the region’s growing East African community seemed like a natural fit. It’s a community that doesn’t need much of a nudge, said Abdirizak Jama, the Initiative Foundation’s program specialist who coordinates the Enterprise Academy. “The East African culture is entrepreneurial. It’s in the DNA,” said Jama, who was born of an Ethiopian father and a Somali mother, CONTINUED ON PAGE 14
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community, continued from page 12
and grew up in a Kenyan refugee camp before coming to America in 2010, at age 15. “From an early age, it’s a culture that really values independence, yet is collective,” Jama said. “The traditional spice routes go through that area. So, culturally, the people have always been merchants.” Added Wig: “The entrepreneurial spirit is embedded in the East African community. Nobody bats an eye if you say you’re going to start a business. In fact, it’s kind of expected.” But there’s a big difference between running a small food stand in a refugee camp and opening a business in the United States, where the financial, logistical and regulatory barriers are much higher. That’s where the Enterprise Academy comes in.
Beyond the Classroom
Enterprise Academy students meet weekly for three months, three hours a week. They hear from experts across a range of foundational business subjects: planning, marketing, finance, regulations. And the program offers support well beyond the classroom. Academy graduates get one-on-one mentoring and technical assistance, and are eligible to apply for financing of up to $50,000 from the Foundation. “The Initiative Foundation started doing business lending during our first year of operations in 1986,” Wig noted. “Helping our newest Americans achieve the American dream of owning their own business is a natural extension of what we’ve always done.” Before starting the Enterprise Academy in early 2018, the Foundation engaged in an intensive, community-based outreach and planning process, convening a working group of Somali-American community leaders as well as figures from the economic development arena in St. Cloud and Central Minnesota. The group of about 20 people met every other month for 18 months. Its charge was to identify barriers and opportunities for new East African residents looking to enter the business world. “Understanding what it takes to start a business, you have to be more careful and plan more strategically,” said Jama. “Here in the States, it can take $50,000 to start a business, as opposed to having $1,000 and starting a micro-level business in Africa. “You have to register, get permission from the cities,” he said. “You have to think about reaching out to a larger customer base.” Many community organizations have provided expertise and financing to the Enterprise Academy, including the Greater St. Cloud Development Corporation, St. Cloud State University and the Small Business Development Center. St. Cloud Mayor Dave Kleis has been an enthusiastic supporter. Wells Fargo made a “very low-interest loan” of $600,000 in seed
money and also made a grant of $200,000. “That was what allowed us to green-light the program,” Wig said. The Central Minnesota Community Foundation contributed $150,000, and the Ewing Marion Kauffman Foundation of Kansas City, Mo., contributed $50,000, through a subgrant from the Twin Cities-based Neighborhood Development Center, whose work in the metro provided a model for the Enterprise Academy.
Planning for the Future
So far, two academy classes with a total of 17 students have graduated. The areas drawing the most interest from the budding entrepreneurs are food and transportation; other potential businesses are in medical services, retail and personal care. Ali, the trucking company owner, said the program benefits go beyond the classroom. “It’s also an opportunity for networking,” he said. “There are a lot of opportunities for learning, for growth, for development, for financial support. “The academy is a community resource that I would definitely recommend.” Abshiro Hussein Mayow, 25, is a biologist and an academy graduate who is Somali-American. She grew up in St. Cloud and hopes to open a medical scribe business. The academy experience, she said, was extremely valuable in helping her plan for the future. “Being a scientist, you already know how to make something successful because we run experiments, we do studies,” she said. “But business is different.” After going through the Enterprise Academy, she decided she’d be better off taking a longer-term view of her business plans. Mayow intends to go to medical school, and she believes she’ll be better positioned to run her scribe business with a medical degree. “I will have more credibility with hospitals and clinics by being a doctor,” she said. “The academy actually helped me make realistic goals on how I want to proceed with this idea. But I will be working and planning for this business in the coming years. This is something I want to do.” In the years to come, the Initiative Foundation hopes to expand the Enterprise Academy to ambitious entrepreneurs in other lowincome communities in Central Minnesota. The lessons learned will make the program even more effective, Wig said. “Central Minnesota can’t reach its full potential until we tap the talents of all our entrepreneurs,” said Wig. “That’s crucial to our region’s future success.”
HUSSEIN FARAH 33RD MEAT & GROCERY Enterprise Academy graduate Hussein Farah, owner of 33rd Meat & Grocery, has secured a culturally adapted Initiative Foundation loan to add a kitchen and deli to his St .Cloud business. Read more at ifound.org/news-events.
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SPRING 2019
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BRIDGE BUILDERS By Gene Rebeck | Photography by John Linn
It’s not always the public figures who are the change makers. Meet the behind-the-scenes leaders who are creating fruitful social and economic connections in Central Minnesota.
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A bridge is easy to overlook. People, after all, often focus on their destination, not the structure that enables them to get there. But communities without bridges don’t have the pathways they need to survive and thrive. The three leaders profiled here build the links that strengthen the human and economic bonds in their hometowns—and beyond. Their stories also inspire others to help build still more bridges— connections that bring the residents of their neighborhoods, cities and regions closer together. “Each of these community leaders shares a couple of key traits,” said Matt Varilek, president of the Initiative Foundation. First, they’re great at building relationships and connecting members of their networks who have potential for fruitful collaboration. And second, they prefer not to call attention to themselves. Their focus is on making their communities better.”
Community Bridge-Builder: JERRY SPARBY
On September 24, 2003, a freshman at Rocori High School in Cold Spring shot and killed two of his fellow students. For Jerry Sparby, whose career as a teacher, principal and athletic coach in the Cold Spring elementary school system spanned more than three decades, the shooting was not just a shock. “It was a wake-up call,” Sparby said of his sudden realization that there were troubled people in what he’d thought was “the perfect world in Cold Spring.” The trauma of that September day would lead Sparby to look for ways to change the culture of the schools. “I realized it was really about changing or developing a culture in the neighborhoods,” he said. “Many residents feel disconnected from their hometowns and from their fellow citizens. That’s particularly true of young people, whether they come from poorer communities or from more middle-class areas.” While troubled young people might be connected to the online world, Sparby thinks they are becoming more and more alienated from real life. “They communicate with their devices, but they don’t talk,” Sparby said. “They don’t talk to each other, they don’t talk to their parents, they don’t talk to their teachers. I’ve had kids tell me they haven’t talked to their parents in over a year. It’s a world we’ve created.” And it’s a world Sparby is working to change through the Yes Network, the St. Cloud-based nonprofit he founded in 2012. Yes Network grew out of Sparby’s work as an educator and a family therapist; it started out providing food to Cold Spring and St. Cloud neighborhoods in need. But in getting volunteers to deliver the food, Sparby discovered that the mutual engagement was an added benefit.
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Jerry Sparby does the difficult work of connecting to and deeply understanding the communities’ needs rather than deciding for them what he thinks might be best.
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JERRY SPARBY: “Many residents feel disconnected from their hometowns and from their fellow citizens.”
As Sparby learned more about what communities needed, he adjusted his approach. He hired parents to make the deliveries. As he listened to neighborhood residents, Sparby came to realize that “it wasn’t the parents that were going to change the culture of the neighborhood—it’s the kids,” he recalled. He also understood that “kids relate to kids better than to older people.” That led him to hiring high school kids to deliver meals during the summer. Over the years, the Yes Network model has continued to evolve based on neighborhood needs. In addition to food delivery, employees and volunteers provide neighborhood enrichment activities, such as barbecues and other gatherings, that bring neighbors together in a spirit of fun. Yes Network also offers arts and recreation programs for young people, and mentoring for its young employees. Sparby isn’t doing all this on his own, of course. Among his many partners is the Initiative Foundation, which has provided financial support. The Foundation has also connected Sparby with AmeriCorps VISTA service members. “I appreciate Jerry for a lot of reasons, and especially for the model for his work,” said Amanda Whittemore, the Initiative Foundation’s VISTA and nonprofit development program manager. “He does the difficult work of connecting to and deeply understanding the communities’ identified needs rather than deciding what he thinks
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might be best for them. That really requires a lot of skill, energy and intent.” Once the needs are identified, she added, “Jerry works tirelessly to leverage people and network resources. In particular, he engages those community members in developing solutions so that they feel like they’re part of the work.” Whittemore believes that approach makes Yes Network’s work more sustainable. During the past few years, Sparby has been working with other cities to expand Yes Network. Three years ago, two churches in Sauk Rapids contacted him to start a program. Meanwhile, parents and organizations in other cities in the region also have gotten in touch. Sparby emphasized that the Yes Network model can be customized from city to city, neighborhood to neighborhood, based on what residents need and desire. “We have a template, but it’s pretty flexible,” he said. No matter how it’s used, the basic idea remains the same: to feed our kids living in poverty and to build loving relationships through play, activity and human connections. Visit yesnetworkmn.org to learn more and to support the program’s outreach efforts.
Economic Champion: JORDAN ZELLER
Need a connection to a state financing program? The phone number of a consulate who could help a local manufacturer make an international sale? An expert who can advise your city about entrepreneurship programs? Chances are, Jordan Zeller can make that happen. “It seems like any time you need a contact for just about anything, Jordan can pull it off his phone,” said Nancy Hoffman, executive director of the North Branch-based Chisago County Housing and Redevelopment Authority and Economic Development Authority. In addition to being a great resource, Hoffman described Zeller as someone who offers to help wherever he can, whatever the project is. Though he’ll lead when asked, Zeller is typically “the person in the background who gets the work done.” That’s the way Zeller likes it. As economic development planner for the Mora-based East Central Regional Development Commission (ECRDC), Zeller is involved in numerous initiatives and programs. But he prefers to let others take the credit, finding ways to connect programs with partners that can help move them forward. One of the projects Zeller is currently focused on is helping area schools create programs that expose young people to the types of technical skills that area companies need to compete and grow. “At least in our region, there’s a big disconnect between what students are learning and what businesses are looking for,” Zeller said. Last year, Zeller and the ECRDC brought together representatives from area schools and economic development organizations, along with elected officials, to expose them to approaches that schools in other regions are using to align their educational offerings with local employer needs. ECRDC staff led a tour of the TigerPath Academies in Hutchinson, where they’ve realigned the electives offered at Hutchinson High School on four different tracks, including STEM. For another tour, Zeller took regional educators and leaders to Strum, Wis., where the school district has launched an in-school manufacturing business. “We’re not saying these approaches will work in your school or are what your community needs,” Zeller said. “But it could spur some new ideas.” In addition, “we’re trying to mirror what kinds of jobs are out there today, and we’re trying to look ahead 10, 15 and 20 years. What kinds of skill sets are these students going to need?” Zeller and his colleagues hope to inspire schools in the five counties served by GPS 45:93, an economic development consortium located on Interstate 35 between Minneapolis and Duluth, to craft skills development programs in partnership with local businesses. The Initiative Foundation will help by offering $2,500 challenge grants to one high school in each of the five counties served by GPS 45:93. At the same time, Zeller is working on several other East Central Regional Development initiatives, including broadband, housing and transportation. He also has lent a hand to other organizations needing his expertise. Case in point: Zeller has helped train new hires at the Staples-based Region Five Development Commission (R5DC) on comprehensive planning services. “Jordan has not only trained our employees,” said Cheryal Lee Hills, R5DC executive
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The problems and the projects are big enough that one person or one organization can’t do it all. It has to be a collaborative effort. And that’s where we tap the Rolodex and bring folks together.
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JORDAN ZELLER: “We’re trying to mirror what kinds of jobs are out there today, and we’re trying to look ahead 10, 15 and 20 years.”
director. “People he has trained in community development also are working for private sector employers and other units of government.” For Zeller, the work he does for his organization and others illustrates the importance of working together—“our cities, our counties, our economic development organizations, and what I like to call the key strategic partners, like the folks at the Initiative Foundation,” he said. “The problems and the projects are big enough that one person or one organization can’t do it all. It has to be a collaborative effort. And that’s where we tap the Rolodex and bring folks together.”
Friend of Philanthropy: DAVID MONROY
Every February, the Elk River Area Chamber of Commerce sponsors Shiver Elk River, an outdoor event that celebrates winter with food, outdoor games and other activities. One of the event’s highlights is a plunge into frozen Lake Orono. Hardy participants, backed by pledges, raise money for area nonprofits. In 2017, during his first year as the chamber’s board chair, local attorney David Monroy volunteered to go first. “I also volunteered my family to join me,” Monroy recalled, with a hearty, joyful laugh that colleagues says is a personal trademark. “They weren’t as enthusiastic as I was about it. But they did it!” Once you discover that Monroy was born and raised in Hawaii, his plunge into those icy waters becomes even more impressive, as does the fact that Monroy estimates that
DAVID MONROY: Elk River attorney David Monroy is active on the boards of several businesses and nonprofits, including the Initiative Foundation’s Board of Trustees.
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So many causes are so good. And it’s always humbling to even be
”
asked.
CONTINUED ON PAGE 40
20 Initiative Foundation ifound.org
OUR COMMUNITY, OUR COMMITMENT TO GIVING
For thirteen years, the Anderson Brothers Family Foundation has supported organizations in our community that focus on families and children in need, environmental protection, and economic development. In partnership with the Initiative Foundation, our foundation provides summer camping experiences for children with autism, skin diseases, heart disease, down syndrome, and families affected by AIDS at Camp Knutson in Crosslake. We care, because we live here, too.
ANDERSON BROTHERS Family Fund
AndersonBrothers.com
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A CARE CONUNDRUM: Sarah and Jon Radermacher are one of thousands of Central Minnesota families for whom child care determines career choices.
SEARCHING FOR CIVIC SOLUTIONS Central Minnesota’s child care shortage makes it hard for the region to attract new workers. Local communities are uniting to solve the challenge. By Andy Steiner | Photography by John Linn
22 Initiative Foundation ifound.org
W
hen Jon and Sarah Radermacher’s first child, Charlie, was born, the couple embarked on an epic struggle to find a daycare provider in their hometown of Madison, Minn. “Nobody had an opening,” Radermacher recalled about contacting child care providers in Madison. “Everybody had a waiting list. The soonest opening was eight months after he was born, and most lists were one to two years out.”
With the help of extended family, a part-time nanny and Sarah’s understanding employer, the Radermacher family eventually pieced together a patchwork child care plan. Then Radermacher was approached about applying for a job as the city administrator in Little Falls. The position felt ideal, but Radermacher wasn’t ready to bite until he learned more about the daycare situation in town. “I wasn’t going to move anywhere if there wasn’t a child care option for my kid,” he said. “We’d already been through that.”
WORKFORCE ISSUE
The Radermachers are committed to living in Greater Minnesota, but the child care struggles their family has faced were enough to make them consider moving to a more populated part of the state where it’s easier for working parents to find high-quality care for their children. They know they are not alone in these concerns, and as a smalltown booster, Jon hopes communities can develop strategies to help improve child care opportunities for families who would like to settle there. “The lack of child care in rural communities is an incredible workforce issue,” he said. “We have low unemployment rates in the region, with local employers that are hiring for all different positions.” Communities like Little Falls and Madison are filled “with two-parent households that would like to have both spouses working, but there is no place for their kids to go for daycare. This situation is holding us back.” In fact, families often need to make tough choices between career advancement and family well-being. “In Central Minnesota we have more than 17,000 parents with children in need of child care who can’t find it,” said Don Hickman, Initiative Foundation vice president for community and workforce development. “In many cases, parents are choosing to withdraw from the workforce or are reliant on family and friends to care for their kids.”
CARE CRUNCH: Central Minnesota has more than 17,000 parents who can’t find child care.
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A SWEET SOLUTION: Finding child care for Marie (left) and Charlie was key to the Radermachers relocating to Little Falls.
SEARCHING FOR SOLUTIONS
If Greater Minnesota communities want to thrive into the future, residents, business owners and other stakeholders will need to figure out how to create child care options that work for everyone. To encourage locally based innovation, the Initiative Foundation has teamed with First Children’s Finance, a nonprofit that provides loans and business assistance to high-quality child care providers serving low- and moderate-income families, and the Minnesota Department of Human Services to offer challenge grants to rural communities interested in exploring and developing innovative solutions to the regional child care shortage. “A lot of employers in the region are now asking, ‘How can we come to the table and develop solutions to this child care shortage?’” said Heidi Hagel Braid, chief program officer for First Children’s Finance. In a labor market with jobs for the taking, local employers are anxious for solutions. While local factories can sometimes offer split-shift options so parents that work for the same employer can avoid child care costs, it’s harder to attract high-skilled, high-wage workers like physicians to small towns with limited care options for their kids. When that happens, the child care shortage “hurts everyone, not just people with kids, but the whole community,” Hagel Braid said. Municipalities taking part in the Child Care Solutions pilot program will work with First Children’s Finance to explore unique barriers to quality, affordable care in their community and identify opportunities to create additional child care slots to narrow the gap. Upon completion of a strategic plan, each community will be awarded a $10,000 matching grant to implement their goals. The matching portion of the grant is designed to boost community buy-in. “The goal is to gain financial commitments from public and private sources so that effective solutions can be gained and sustained,” Hickman said. By involving a range of community members in the brainstorming and planning process, the project’s funders hope to 24 Initiative Foundation ifound.org
“ We may need to start thinking about high-quality
child care as similar to how many communities view a public library or a swimming pool.”
build a community-wide sense of the importance of quality child care for everyone in town—not just to parents and kids. “We may need to start thinking about high-quality child care as similar to how many communities view a public library or a swimming pool,” said Hickman. “They are public services that don’t always cashflow themselves, but they are considered important enough to the community that public or private investments are made. Communities that don’t offer services like quality, affordable child care will be at a disadvantage for attracting or retaining skilled workers or young families.”
NEW OPTIONS
That sense of child care as a community asset wasn’t yet in place when Jon Radermacher was offered the job in Little Falls. The couple began researching daycare options, only to run into a situation that was similar to what they had faced in Madison. “There were waiting lists of six to eight months out for the ones that did have openings,” said Radermacher. He accepted the job offer, with the caveat that he’d move to town ahead of his family, allowing a few months to find full-time care for his son. If nothing came through, he’d have to resign and move back to Madison. The arrangement was less than ideal, but it was the only option that worked for his family. Once he’d settled in a temporary apartment in Little Falls, Radermacher said he was on a mission. “The first thing I brought up with everybody I met was child care,” he said. “I was talking about it all the time.” All that talking worked. After living in town for a couple of months, Radermacher met a woman who said she was interested in caring for an infant along with her own child. It sounded like a plan, and so Radermacher and his wife met with her, made the necessary arrangements, and his whole family finally made the move to Little Falls, settling in for good. “It’s not something we enjoyed dealing with at all,” he said of the long and frustrating process. “And I hate to think that that’s what’s happening to other people who want to move to town, too. This is a community issue, something we need to support to keep our towns alive.” When their second child, Marie, was born, the Radermachers once again had to scramble to find care. “There is no single silver-bullet solution that is going to solve this problem,” Jon Radermacher said. But he hopes the Initiative Foundation’s new pilot program and grant opportunities will encourage communities to keep working toward long-term solutions. “This issue is important for everyone,” Radermacher said, “and once more people realize that, I’m confident that new options will start to emerge.”
“ The
lack of child care in rural
communities is an incredible workforce issue.”
CARING FOR OUR REGION’S KIDS The Initiative Foundation Board of Trustees approved a challenge match of up to $500,000 for regional early childhood coalitions to create local, community-based funds to power local change. Each coalition can establish their own priorities. The majority have historically focused on programs that promote social-emotional development, school readiness and early childhood literacy. At press time, six coalitions are onboard. Each is in the process of engaging community members to identify the top priorities locally when organizing their campaigns. The six early childhood coalitions are:
1 Cambridge-Isanti 2 3 Morrison County 4 Onamia 5 Thrive (Sauk Rapids Rice) 6 United Way of Central Minnesota (St. Cloud) Brainerd
To donate to one of these funds, contact Philanthropy Specialist Brenda Gugglberger at bgugglberger@ifound.org or (320) 631-2061.
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A Special Thanks to Our
Become a Community Builders Circle member and make a local difference:
COMMUNITY BUILDERS CIRCLE Members. Your Region. Your Initiative. Your Foundation. BUSINESSES
• Harvest Banks
INDIVIDUALS
• American Heritage National Bank* • LINDAR / Avantech*
• Rick & Helga Bauerly Family
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• Little Falls Area Chamber
Minnesota • Anderson Brothers Construction Company* • Anonymous Donor • Arvig Communication Systems* • Bank of the West • BankVista • Benefit Innovations* • BlackRidgeBANK* • Brainerd Lakes General Fund of the Brainerd Lakes Area Community Foundation* • Bremer Bank* • Brenny Transportation • Citizens State Bank of Waverly • Clow Stamping Company* • Connexus Energy • Consolidated Telecommunications Company • Crow Wing Power • East Central Energy • Edelweiss Cabinetry* • Falcon National Bank* • Farmers & Merchants State Bank Charitable Fund of the Central Minnesota Community Foundation • First Bank & Trust* • First National Bank North* • First National Bank of Milaca* • First State Bank of Wyoming* • Frandsen Bank & Trust • Granite Equity Partners, LLC • Gray Plant Mooty • Great River Energy*
of Commerce • Long Prairie Packing Company* • Marco Technologies, LLC • McDowall Company • Mid Minnesota Federal Credit Union • Mille Lacs Energy Cooperative* • Neighborhood National Bank • Norman C Skalicky Foundation Fund of the Central Minnesota Community Foundation • NOR-SON, Inc.* • Park Industries, Inc. • Pequot Tool & Mfg., Inc.* • Pine Country Bank* • RiverWood Banks* • Schlagel, Inc. • SEH, Inc • Sherburne State Banks & Sentry Bank • Sourcewell • State Bank of Cold Spring • Stearns Bank NA* • Stearns Electric Association* • The Bank of Elk River • Todd-Wadena Electric Cooperative* • Wadena State Bank* • Wells Fargo Bank MN • West Central Telephone Association • Widseth Smith Nolting and Assoc., Inc. • Wyoming Machine, Inc.*
Fund of Central Minnesota Community Foundation • John E. Babcock • Paula & Chad Becker • Dick & Mimi Bitzan Family Fund of Central Minnesota Community Foundation • Michael & Kathleen Burton* • Lynn & Darren Bushinger* • Don & Deanna Engen • Kathy & Neal Gaalswyk • Lee & Jan Hanson • Don Hickman & Sandra Kaplan* • Jo & Larry Korf • Martin & Susan Paradeis • Philip & Susan Prosapio • John & Bonnie Schlagel • Mike & Dorothy Simpson • Kimberly & Denise Slipy* • Rita and Everett Sobania • Charlotte Stephens* • Tim & Carrie Tripp* • Maggie & Matt Varilek* • Ludmila Voelker* • Gene & Bernie Waldorf • Jeff & Laurie Wig* * Individuals and businesses that have pledged in both 2018 and 2019.
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Make a gift of $1,000 or more per year to the Initiative Foundation’s programs or General Endowment—a forever fund that powers the Foundation’s grants, programs and services. When you give, you’re helping our communities thrive and grow—from our youngest to our most senior members.
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RICK BAUERLY: “We needed to develop a program to help people reach their potential.�
There are people of great purpose and passion in our region.
Initiating Change 2.0 Initiators Fellowship expansion brings social entrepreneurship to more of Greater Minnesota. By Elizabeth Foy Larsen | Photography by Paul Middlestaedt and John Linn
Growing up on a farm in rural Benton County, Rick Bauerly’s network of supportive relationships set him on the path for future success. “I was blessed with great parents, teachers, coaches and mentors,” said Bauerly, sitting in the conference room at St. Cloud-based Granite Equity Partners, the private investment and holding company he founded and where he serves as chief executive officer. In fact, Bauerly says it was this cheering squad that made him believe he could succeed at college, in his case Saint John’s University in Collegeville and then to Harvard University, where he received master’s degrees in business and public administration. It was while studying at Harvard that Bauerly was introduced to Echoing Green, a nonprofit organization based in New York City, which for more than 30 years has identified and supported emerging leaders and social entrepreneurs—including Michelle Obama, who was awarded a fellowship in 1993, and Teach for America founder Wendy Kopp, who was awarded a fellowship in 1991. Unlike other nonprofits that support entrepreneurs, Echoing Green doesn’t invest in business plans. Instead, it invests in the people behind the business plans, which makes sense when you consider that just 10 percent of start-up companies make it past the five-year mark. Equipping emerging leaders with the tools and mindset they need to try—and try again— is what matters. The Echoing Green concept made sense to Bauerly, who had considered applying for a fellowship while still at Harvard. His plan changed when his family asked him to move back to Central Minnesota to support the family business, Bauerly Companies, which produced aggregate, asphalt and concrete products. After the company merged with Knife River Corporation in 2001, Bauerly founded Granite Equity, which focuses on owning Minnesota companies when the owners want to retire. “Granite Equity’s mission and spirit grew out of the notion of keeping local ownership of Minnesota’s great family businesses,” he said. “When local businesses get sold to larger national companies, there often isn’t the same community commitment that local ownership brings.”
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Initiator Fellowship Network Clustering
Advisors Advisors Connectors
Connectors
Confidants Confidants
Advocates Advocates
Fellows’ network relationships at the START of their two-year fellowship.
Fellows’ network relationships at the CONCLUSION of their two-year term.
The first cohort of Initiators Fellows reported a 68 percent increase in valuable network connections established during the Fellowship term. Fellows also reported an aggregate Net Promoter Score of 75. (A Net Promoter Score of 70 or more generally means a business or venture is generating strong and positive word-of-mouth referrals.)
A Merger of Community Spirit
In 2014, the Initiative Foundation was researching ways to promote a local culture of entrepreneurship and social enterprise in Central Minnesota. Bauerly, a member of the Foundation’s Board of Trustees, was at these meetings and suggested that the Echoing Green model could be put into play. “There are people of great purpose and passion in our region,” he said. “We needed to develop a program to back those people and help them reach their potential.” With a mentoring framework based on the Echoing Green model and a generous contribution from Granite Equity Partners, the Foundation launched the Initiators Fellowship program in 2016. The first four fellows each received $30,000 annually for two years along with mentoring, customized smallgroup training and professional development support to advance their business endeavor. “The rigor of the mentoring within the Initiators Fellowship is incredibly unique in the social enterprise space,” said Andrea Davila, a former Echoing Green deputy director who now makes her home in Minnesota and supports the Initiators Fellowship as a program advisor. “To have business and community leaders who are so consistently willing to volunteer time and talent to support emerging social entrepreneurs speaks to the strength of the community in Central Minnesota.”
Matchmaking
The Initiators Fellowship was a game-changer for Fergus Falls native Annie Deckert, president and co-founder of Decklan Group, an economic development consulting business 30 that Initiative actsFoundation as a matchmaker ifound.org between established businesses and local governments.
As a former director of economic development in Elk River, Deckert knew the ways in which Minnesota communities could best improve their economic development efforts. But she wasn’t always effective at conveying to businesses how Decklan Group could assist them. “Through my work with the Initiators Fellowship I learned that all of the difficult parts of that process—from zoning regulations to economic services—can feel very overwhelming,” she said. “Before starting the fellowship, my pitch involved explaining all the details of how I worked with complex programs. I realized the reason companies hire Decklan Group is because we can take care of those details so they can focus on running and growing their operations.” With that key insight, Deckert worked with her mentor, Elk River attorney and Initiative Foundation Trustee David Monroy (see page 20), to streamline her pitch. “I scrapped every PowerPoint slide,” she said. “I realized I had to tell a story that was more authentic and genuine about what Decklan Group does.” With support from Monroy and her cohort of fellows, Deckert refined her approach. And although she is naturally so energetic that it’s hard to imagine her having a moment of doubt, Deckert says the program helped her be more self-assured. “My partner says he can see a dramatic increase in my confidence,” she said. “I can see it, too. I rarely get nervous anymore when I’m pitching a potential client.” ANNIE DECKERT: 2017-2018 Initiators Fellow
CONTINUED ON PAGE 32
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Initiating Change 2.0 CONTINUED FROM PAGE 30
Young and diverse entrepreneurs already are contributing to our regional economy and rich fabric of our communities. Decklan Group’s new approach has clearly worked: Since starting the fellowship in 2016, the business has grown from 70 clients in 25 communities to 112 clients in 41 communities. Now that the two-year fellowship is completed, Deckert is part of an alumni cohort—her group of fellows includes learning technology entrepreneur Rod Greder, diabetes advocate Quinn Nystrom, and cultural connector Hudda Ibrahim—from which she continues to draw support. “I’m an open-minded person in general, but knowing the other fellows has definitely broadened my worldview,” she said. “I’m so much more connected in Central Minnesota now.”
Expanding Opportunities
The I nitiative F oundation b elieves t hat t he o ngoing a lumni connection will become part of a collective advisory team—a sort of brain trust—to bolster leadership and social entrepreneurship throughout the region. A second Initiators Fellowship cohort will be selected later this year. “The emerging trend is to accomplish social good through forprofit businesses,” said Jeff Wig, Initiative Foundation vice president for entrepreneurship. “Our approach is to support nonprofit and for-profit ventures, as long as the entrepreneur has social purpose hardwired into their DNA.” Social entrepreneurs in Greater Minnesota often lack access and a network of support—and may not even realize they are social entrepreneurs. “They don’t connect with other social entrepreneurs because the concept isn’t established in rural areas,” Wig said. “The Initiators Fellowship will create a culture of social entrepreneurism that will make sense in a rural landscape.”
support that entrepreneurs in our communities need to take their very good ideas and preliminary hard work to the next level.” Diana Anderson, president and CEO of Southwest Initiative Foundation, agrees. “Economic and social growth are interdependent,” she said. “Economic and social gains must be pursued simultaneously for individual initiatives and communities— and the overall region—to thrive. We are excited to intentionally foster social enterprise through the Initiators Fellowship.” “Young and diverse entrepreneurs already are contributing to our regional economy and rich fabric of our communities,” she added. “Investing in their innovative ideas—not just with financial support, but through an incredible network of intellectual and emotional support—will only increase their likelihood of success and their long-term commitment to staying in our region.” Rick Bauerly believes the program will jumpstart a new legacy for Greater Minnesota. “The Initiators Fellowship really helps institutionalize mentoring for some of the most passionate and purposeful entrepreneurs and leaders—people who initiate change and improvement and progress in our communities,” he said. “We are backing these people with the hope that they will develop a lifetime relationship with their region so that when they are going to start a new business or nonprofit, they will base it here—and grow it here.” Visit greaterminnesota.net/fellows to learn more about becoming a fellow or a mentor through the Initiators Fellowship. Recruitment for the Initiators Fellowship gets under way in April 2019.
Growing Greater in Greater Minnesota
This past January, the Southwest and West Central Initiative Foundations signed on as Initiators Fellowship partners. The arrangement will expand the program to even more of Greater Minnesota (41 counties, in fact), bringing the social entrepreneurship concept to a larger audience. The expansion is supported by a sevenyear, $1.4 million grant from the Bush Foundation and other donors as well as additional generosity from Granite Equity Partners. “We expect that Initiator Fellows from our region will become ambassadors for the movement, demonstrating how and why this kind of entrepreneurship is valuable and contributes to both the social and economic vitality of West Central Minnesota,” said Anna Wasescha, president and CEO of West Central Initiative. “We hope that this program will provide exactly the kind of
West Central Initiative
Investing resources in our communities for regional success
32 Initiative Foundation ifound.org
WHAT IS SOCIAL ENTREPRENEURSHIP? Entrepreneurs who innovate and launch a business are adding value to society by creating jobs while providing sought-after goods and services. Many demonstrate social responsibility by donating to charities. Social entrepreneurs, on the other hand, have identified a social or environmental issue that they’re passionate about, and they bake their social mission into the heart of their business. “The mission and the issue come first,” said Jeff Wig, Initiative Foundation vice president for entrepreneurship, “and the business is shaped to support that mission and vision.”
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“When we all grow, we grow together. There’s a lot of pride in this community.” 34 Initiative Foundation ifound.org
How a new generation of owners is reinventing a 100-year-old department store in Cambridge.
By Lisa Meyers McClintick | Photography by Lisa Meyers McClintick
The ceilings have been returned to tin tiles that add oldtime elegance. Re-exposed red brick looks both vintage and modern. And the original wood floors shine again, creaking as longtime customers walk into Leader, the department store that has anchored Cambridge’s Main Street for a century. Gail Mattson greets a customer by name as soon as he’s through the door. As the men’s clothing and tuxedo buyer at Leader, Mattson carefully curates racks of fleecy, winter-friendly outerwear and clothing, shelves of sturdy boots, gloves and hats. She is one of two employees who have walked these floors for 20 to 30 years. “I think people are beginning to appreciate service again,” she said. “We try and hang our hat on taking care of people.” While customers check out Leader’s refreshed and condensed retail space, much of the buzz comes from the warm glow through a brick archway. That’s because last December, two of the Twin Cities’ top chefs—both with Cambridge roots—opened Willards, a restaurant that elevates regional dining, with offerings that include chicken liver toast and grilled cabbage salad. Wide open and welcoming, the restaurant draws loyal customers from as far away as the Twin Cities. It has also boosted earnings at the retail store, a
welcome development as Leader passes into the fourth generation of its founding family. It’s a major coup for Cambridge to keep a downtown retail anchor and help it flourish, especially as it bucks the trend of businesses closing when their Baby Boomer owners retire. According to University of Minnesota research, about 67 percent of small business owners were born before 1967, and they provide approximately 64 percent of new, private-sector jobs. Neil Johnson was the third generation in his family to own Leader. As the store celebrated its 100th anniversary last year, sales were flat and no one in the family was interested in taking over the business. Then luck and serendipitous timing intervened. “Leader has put Cambridge back on the map in a good way,” said Grant Johnson, Neil’s nephew, who can remember sitting on his Grandpa’s lap in the store. While he didn’t grow up in Cambridge, both his parents were raised within two blocks of the store. He now co-owns Leader with Erick Harcey, a James Beard-nominated chef who drew acclaim with his former Minneapolis restaurants, Upton 43 and Victory 44. With a six-month renovation plan and close to $2 million in financing, including an Initiative Foundation lending package,
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Their merging of talents and ideas also fueled a fresh chapter for a downtown flagship that had no succession plan. MORE IN STORE: Neil Johnson and Erick Harcey (right) are reviving the Leader Department store and re-invigorating downtown Cambridge.
Johnson and Harcey emphasized their desire to build a legacy for the community and re-energize downtown. On a personal level, they yearned for a better work-life balance. “We know the grind of the industry,” Harcey said. “How do we do what we love, but be home? We’re dads and husbands first and foremost.”
Paths Converge
It was a delicious bite of walleye on a flax crisp that brought Johnson and Harcey together. Johnson had moved back to Minnesota after years as a chef in California and was working at Tullibee, the restaurant in the Hewing Hotel in Minneapolis. During spring 2017, Johnson was attending a charity event where that walleye was served; he loved it so much that he sought out its creator—Harcey—and the men discovered their Cambridge connection; not only was Harcey from Cambridge, he had worked in the Leader men’s department. At the time they met, Harcey had achieved success with his much-loved Twin Cities’ restaurants. But he was also exhausted from a grueling two-hour back-and-forth commute to his hometown of Cambridge, where he spent his scant free time hunting and fishing with his four sons, ages 8 to 13. Johnson, who has two daughters and a son ages 6 to 13, was also reevaluating his professional options. By December 2017, Johnson had left Tullibee and Harcey had shuttered his restaurants to search for a new location, which eventually led him to reach out to Neil Johnson about opening a restaurant in Leader. When word of this reached Grant Johnson, who owned a third of the building with each of his siblings, his jaw dropped. It was, he felt, a perfect opportunity. Within two weeks, Johnson and Harcey were sitting down with their wives, swapping life stories and feeling an instant connection and a pull toward partnership. Their merging of talents and ideas also fueled a fresh chapter for a downtown flagship that—until then—had no succession plan. “This is more than a next job for us,” Harcey said, “but also
‘What’s good for Cambridge?’”
A Store for a New Century
Historic photos on the walls show Leader’s evolution, from early 1900s dry goods and necessities, to dime-store bins, fabrics, notions and groceries, to its mid-century heyday, when newspaper ads tempted holiday shoppers with dolls, skis, snowmobiles and Schwinn Sting-Ray bicycles. Leader’s status as a retail force in Cambridge started to change in the late 1980s, when Highway 65 traffic was rerouted from Main Street to the east side of town. It was a trend seen throughout the country as big-box retail chains popped up. The advent of online shopping in the 2000s compounded the trend and further chipped away at the foundation of brick-and-mortar mom-and-pop stores. Even downtown Minneapolis’s venerable Macy’s, known for most of its 115 years as Dayton’s, closed its doors at 7th Street and Hennepin Avenue in 2017. St. Cloud lost its anchor downtown department store, Herberger’s, in 2018. Adding a restaurant to the struggling Cambridge retail space was, the partners decided, a creative way to bring in more foot traffic. To revive Leader, Johnson and Harcey needed an ambitious budget to add the kitchen and follow modern fire and safety codes. They filled dumpsters with decades of clutter, carpet and ceiling tiles. They returned the building to its original look, peeling back the layers, which delighted Johnson’s 92-year-old great aunt, who could remember the pendant lights hanging above women’s clothing. Windows that bring in the golden glow at sunset were rediscovered. Financing for the project came from a number of sources, including Cambridge State Bank, Minnesota Business Finance Corporation, the city of Cambridge, and family members. The Initiative Foundation originated a $100,000 loan for the project and sold one-third of it to the Cambridge Business Development Corporation (a private local development group) and one-third to the East Central Regional Development Commission. The move CONTINUED ON PAGE 38
36 Initiative Foundation ifound.org
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Succession Success CONTINUED FROM PAGE 36
The new store honors family ties. FLOOR PLAN FOR SUCCESS: Leader's retail floor space shrank from 9,000 to 6,000 square feet to make room for the restaurant.
helped to balance the risks and rewards and invited more players to share in the pride of a noteworthy downtown redevelopment project. Another anticipated benefit of the project is that employment is expected to increase from a half dozen to more than 30. Part of the rationale for expansion: While Cambridge may have a population of just 10,000 people, an estimated 150,000 residents live within a 20-minute drive—a do-able distance for a memorable dinner. “This was a great opportunity, not only for Leader and Willards, but for downtown Cambridge and the community as a whole,” said Dan Bullert, Initiative Foundation business finance manager.
New Spaces
Under the new business plan, retail floor space shrank from 9,000 to 6,000 square feet to make room for Willards, which takes up 3,000-square-feet. The restaurant holds about 70 people and includes counter seating, where diners can watch chefs at work crafting what’s been dubbed the Twin Cities’ best burger (topped with tangy pickles using Harcey’s grandma’s recipe), Swedish meatballs, wild rice ice cream and a hot beef sandwich that was perfected by Harcey’s late grandfather, Willard, who in the 1950s owned and operated The Lighthouse restaurant in downtown Cambridge. Harcey’s grandmother came in to try the hot beef recipe, which has long been a family comfort food. The new store honors family ties in other ways, too. Johnson’s great aunt Doris, who is 96, can be seen at age 13 in the back of a black-and-white photo in the retail area. There is an upstairs for offices, a basement for storage and an event space that can seat another 70 people or be used for pop-up retail events. Like the upstairs, the basement walls tell stories with old photos and behind-the-scenes treasures, including an ingeniously engineered and rare hand-crank Lagerquist elevator that still works but had to be decommissioned due to modern codes. Outside the store, crews have repainted the rusty green-and-ivory facade to a new dark gray and white, keeping the familiar Leader lettering. Other downtown businesses have also tidied their appearances and may be able to benefit from more people coming into Cambridge for the restaurant and shopping. “When we all grow, we grow together,” Johnson said. “There’s a lot of pride in this community.”
38 Initiative Foundation ifound.org
Succession Planning 101
Keeping Central Minnesota’s Businesses Rural towns across Minnesota are going through a “silver tsunami” as small business owners face retirement without anyone to continue the businesses they’ve built. According to University of Minnesota research, about 67 percent of small business owners were born before 1967, and they provide approximately 64 percent of new privatesector jobs. Without the financial (and philanthropic) benefits of these businesses, local communities can lose goods, services and overall stability. To support these businesses and to help with possible succession plans, the U of M suggests: • Form a local committee, which can create a database of businesses and keep track of the owners who are nearing retirement. • Create a network of local resources, such as attorneys, real estate agents, bankers and city officials, to support both families selling their business and prospective buyers. • Look for programs that can help hone solid business plans, such as the Small Business Development Centers, Senior Corps of Retired Executives (SCORE), or Exit Planning Institute’s Minnesota Chapter, which includes professional advisers for business succession. Visit bit.ly/2taOWFc for more information from the University of Minnesota Extension Service.
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DAVID MONROY: ”I joined the Three Rivers Community Foundation board because I serve on one organization, but I have broad-based impact throughout the community.”
over the years the plunge has raised $100,000-plus for local nonprofits. Besides his full-time work as the owner of Monroy Law Office in Elk River, Monroy is the past president of the Three Rivers Community Foundation, on whose board he has served for six years. He also is active on the boards of other nonprofits and several area businesses, including the Initiative Foundation’s Board of Trustees, and provides legal advice to organizations including the Hilltop Regional Kitchen in Eagle Bend, which serves meals to those in need in Todd and Wadena counties. In 2006, Monroy, his wife, Rohnda, and their three children left Hawaii and moved to Elk River to answer a ministry calling for community and economic development mission work. As an attorney, Monroy provides legal guidance for nonprofit organizations and churches, on issues that include reviewing bylaws, board expansion and an organization’s status as a charitable organization that can receive tax-deductible charitable donations. But it’s not only his legal expertise that has made Monroy a valued board member. “Because of his experience outside of Elk River, he brings a broad perspective to any situation,” said Debbi Rydberg, executive director of the Elk River Area Chamber of Commerce. “He’s also a champion and cheerleader for almost any project. He doesn’t just serve and then leave.”
40 Initiative Foundation ifound.org
Monroy’s technical skills are only enhanced by his easygoing personality. “He knows when to lighten the mood,” Rydberg said. What’s more, “he’s very generous with his appreciation of everyone’s strengths,” and has a knack for weaving together the often-disparate skills and insights of board members. When he’s asked to join a board, which seems to be often, “it’s hard sometimes to say no,” Monroy said. “I do have to be a good steward of my time, so I do try to prayerfully pick and choose.” He chose the Three Rivers Community Foundation board because “it offers grants to area nonprofits as well as scholarships through the school district. I serve on one organization, but I can have broadbased impact throughout the community,” he said. Still, Monroy continues to battle the temptation to plunge into other commitments. Last December, before he was to address the inaugural class of the Initiative Foundation’s Initiators Fellowship program for social entrepreneurs, Monroy was introduced by Jeff Wig, the Initiative Foundation’s vice president for entrepreneurship, as “a serial board member.” Monroy laughed at the memory. “So many causes are so good,” he said. “And it’s always humbling to even be asked.”
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philanthropy
MARIA HEYMANS-BECKER (PICTURED WITH LEAH & JESSICA SCHILLING BRIGMAN): “Jeff was very caring towards everyone he worked with—everyone loved him.”
Life is Good A new college scholarship fund for Central Minnesota students celebrates the legacy of a beloved school custodian. By Gene Rebeck | Photography by John Linn
Jeff Schilling’s life was a gift to the students and teachers of Mary of Lourdes School in Little Falls. And thanks to a new scholarship fund, his spirit will continue to give to the communities he loved. “Jeff was very caring towards everyone he worked with— everyone loved him,” said Maria Heymans-Becker, the school’s principal from 2010 to 2018. “He had a great sense of humor, and he was so committed to everything he did—his work, his faith, his community. He made everyone he met feel like a million dollars.” You wouldn’t have blamed Schilling if he’d been gloomy. His career as a small-engine mechanic was cut short in the mid1990s when he began to develop retinitis pigmentosa, a rare and degenerative eye disease that causes severe vision impairment. As a result, he became legally blind. But Schilling refused to give into darkness. He was able to work as a custodian at Mary of Lourdes, a job he took in 1997. There he became a ray of light to all who knew him—the kids whom he mentored, the adults whose spirits he lifted. One of his favorite expressions, “Life is good,” was picked up by
students and teachers throughout the school. When he passed away at age 60 in May 2018, then principal Heymans-Becker offered to pay for his funeral. His family members, however, had that covered. Instead, they suggested a way to perpetuate his legacy. That led to the founding of the Silver Lining Fund, a name Schilling would no doubt approve. “My dad was a humble and optimistic person,” his daughter Jessica Schilling Brigman said. “He always said, ‘find the silver lining.’” The fund began with a gift of $5,000 from Heymans-Becker and her husband. In just a few months, the Silver Lining endowment had grown to $10,000. The Schilling family’s goal is a $20,000 endowment, from which postsecondary scholarships of $1,000 will be offered. How many scholarships would the Schillings like to give out? “As many as we can,” said Schilling’s wife, Leah. “But the idea is if we have $20,000, we can give away $1,000 every year. Of course, if we get more money, we will give out more.” The fund is giving preference to young people wishing to enter the trades. “That’s how my dad made his living,” Schilling Brigman said. “We know that for someone going to a four-year school, $1,000 CONTINUED ON PAGE 44
42 Initiative Foundation ifound.org
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“ My dad worked at the school for so long that he had generations of kids who knew him. That’s why it’s so important for us to get this fund fully endowed, so that his legacy goes on for generations to come.” might cover books for one term. But for someone going into the trades, $1,000 can cover tools or supplies.” In January, the Schillings began getting the word to area high schools so that seniors could apply for scholarships. “We’d like to get one scholarship out this spring,” said Leah Schilling. To qualify, an applicant would have had to attend Mary of Lourdes for at least part of his or her education. The application also should include a one-page essay that discusses “how you found the silver lining in your life.” Starting and maintaining a philanthropic fund, even a relatively small one like the Schillings’, can be a sizeable task. By partnering with the Initiative Foundation, the Schillings were able to establish the Silver Lining Fund with relative ease. The Foundation manages the legal, administrative and investment chores, which frees up the Schillings to concentrate on gathering donations and directing distributions. The Silver Lining Fund continues to receive donations and support from a variety of areas. One of the most distinctive gifts is from Little Falls’ Starry Eyed Brewing Company, which is using hops that Schilling grew on his farm to create a new beer. It is donating a portion of the beer’s sales to the Silver Lining Fund. “This is a shining example of how communities come together to support meaningful projects, programs and activities,” said Kate Bjorge, the Initiative Foundation’s community philanthropy manager. “It’s really about connecting people with opportunities to acknowledge the positive impact they had. Jeff ’s heart for other people lives on through this annual investment in a student’s life. That’s a silver lining to be sure.” At Jeff Schilling’s funeral, his family was moved to discover just how many people’s lives he touched. “My dad worked at the school for so long that he had generations of kids who knew him,” Schilling Brigman recalled. “That’s why it’s so important for us to get this fund fully endowed, so that his legacy goes on for generations.”
Mary of Lourdes students who are interested in applying for a Silver Lining Fund scholarship should inquire with their local high school administration office. Visit ifoundconnections.org and search for Silver Lining Scholarship Fund to make a donation.
44 Initiative Foundation ifound.org
30 YEARS OF HOMEGROWN PHILANTHROPY Community Partner Funds connect resources to people and organizations within a defined geographic area. This year marks the 30th anniversary of the founding of the Three Rivers Community Foundation (TRCF), which was launched in 1989. The first of the more than 120 funds that the Initiative Foundation hosts and manages, TRCF began as the Greater Elk River Area Foundation, changing its name a few years later to reflect its expanded service area, which now also covers Rogers, Otsego and Zimmerman. TRCF is a community Partner Fund, meaning it connects resources to people and organizations within a defined geographic area. Last year, TRCF provided more than $20,000 in scholarships to area students wishing to continue their education after high school. In 2018, it awarded $40,000 in grants to a diverse group of community enrichment activities, including education, youth programs and financial literacy. TRCF draws these awards from a growing endowment. Having crossed the $1 million mark with help from a $50,000 Initiative Foundation challenge match, TRCF is now marching toward a $3 million goal, with plans to expand the annual amount it gives for grants and scholarships to $100,000. Visit trcommunityfoundation.org to learn more or to make a donation. For more on how you can start an Initiative Foundation-hosted fund, visit ifound.org/philanthropy/our-funds.
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By Maria Surma Manka Photography by John Linn
“Let people believe it’s magic and pixie dust!” joked Matt Schiller when he was asked about the production process of craft beer. Schiller and friend Jeff Zierdt are co-founders of Lupulin Brewing (lupulinbrewing.com) in Big Lake, which opened in 2015 and recently expanded operations, buying the remainder of the building in which it was located. “We purposely bought something we could grow into,” explained Zierdt. Although the public taproom won’t change much, he said the expansion allows for more efficient production of Lupulin’s current line-up of beer. Plus, faster production gives them the time and space to experiment with new flavors. Today, according to Growler Magazine, a publication that covers craft food, beverages and arts, there are about 150 craft brewers open in Minnesota. Pixie dust aside, a successful craft beer business takes hard work, creativity and a healthy dose of science and manufacturing know-how. “People don’t realize that craft breweries are a manufacturing business,” said Schiller. When he and Zierdt looked for financing to open the brewery, most banks and cities viewed them as another bar coming to town. The partners see it differently. “We make widgets, like any other manufacturer, but our widgets are beer,” Schiller explained. “A brewery’s public taproom is a very small part of the business, but that’s all most people think of.” Fortunately for Lupulin Brewing, the city of Big Lake understood the dual purposes of a craft beer operation. We talked with Schiller and Zierdt to learn what’s hopping at Lupulin.
46 Initiative Foundation ifound.org
JEFF ZIERDT (L), MATT SCHILLER (R): ”We purposefully bought something we could grow into.”
•N ame Game “Lupulin” is the active ingredient in hops; it’s what provides the bitterness, fruity flavor and aroma to the beer. Schiller and Zierdt chose the name because of their love of beers that have significant amounts of hops. • Sales Strategy Only about 10 percent of Lupulin’s beer is sold in its public, family-friendly taproom. The other 90 percent goes out to liquor stores, restaurants and bars throughout the state. •E xperiment-ale Lupulin’s expansion means more space for experimenting with new beers, as well as more efficient equipment that increases the production speed of its standard, signature brews. For example, what took three people 36 hours to produce now takes one person nine hours to accomplish.
•P rocess Makes Perfect A beer name is usually dreamed up first, then a brew is created to fit it. “We’re like a chef with a bunch of ingredients,” said Matt. “We adjust as we go, but we’re experienced enough to have a good idea of what the final product will taste like.” • Happiness Project The art, science and business of brewing boils down to making people happy. “You hope that when someone has one of your beers, it makes their day better,” said Schiller. “We feel that we have that connection with customers, and that’s what it’s all about.”
etting Advice Lupulin worked with Initiators Fellow •G Annie Deckert of the Decklan Group to navigate the process and with the Initiative Foundation, among others, to secure financing for the expansion. “Working with Decklan Group was one of the best moves we made,” said Zierdt. “They ensured our strategic plans were properly and successfully executed, and they provided some of the best insight for pursuing the purchase of our space.” xpansion Plans Lupulin has added employees •E with experience in human resources, marketing, sales, engineering and biochemistry. It employed seven people full-time in 2017, then 15 in 2018. They expect to have at least 20 in 2019, in addition to several dozen part-time employees. • Selling Science Beer brewing production takes an engineering mindset and a good amount of manual labor. There’s heavy lifting, working with a range of ingredients and liquids, applying and removing heat and book knowledge of pressures, liquids and process flows.
•S ourcing Success Lupulin’s barley is procured from global food company Cargill. The hops come from Washington and Oregon, some of the best hop-growing regions in the world. •T astes Good The best-selling beers are the flagship American IPA—called Hooey—and Blissful Ignorance, a double IPA. Blissful was recently named “Best Double or Imperial IPA” by readers of Growler Magazine. aste Test If a brew flavor is potentially risky, •T Lupulin sells it in the taproom first to gauge customers’ reaction.
SPRING 2019
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where’s IQ?
THINK YOU KNOW? Send your best guess to IQ@ifound.org by April 15, 2019. Three winners will be chosen, at random, to receive a $25 credit to apply toward their favorite Initiative Foundationhosted Partner Fund. HINT: Established in the 1960s, this popular roadside stop has been called the Wall Drug of Minnesota. Congratulations to everyone who correctly recognized the Cold Spring’s Grasshopper Chapel. Mary Eisenschenk, Merlin Bruns and Susan Studniski were the lucky Fall 2018 winners of the “Where’s IQ” contest.
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