Progress Guide by Perham Focus

Progressâ&#x20AC;ş 2014

SUPPLEMENT TO the Perham Focus

Creating sustainable success Learning from successes of the past, recognizing growth and development in the present, and looking forward to further progress in the future

Dad

Mom

Bobby Jenny

Dr. Smith

Here, Everyone has a Doctor in the Family Itâ&#x20AC;&#x2122;s why we call them visits. Perham Health practitioners belong to this community and take time getting to know everyone in it. Together we create treatment plans which work with your schedule, your lifestyle and your family. Think of us as one of your own. Visit us at perhamhealth.org and let us introduce you to our family.

Perham Clinic 1000 Coney Street West (218) 347-1200

New York Mills Clinic 20 Centennial 84 Drive West (218) 385-1800

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Progress 2014: Creating Sustainable Success

Progress › 2014

Contents

› P roof of

Progress

› S trides in

Sustainability

› S ustaining Success

Evidence of growth in Perham

Perham's efforts to support growth for years to come

What long-time multi-generational businesses have done and are doing right

'Grandpa is smiling' � �� 6

Dollars put to (good) waste �� 22

Making the right calls �� 44

At 50-year mark, KLN Family Brands has plenty to celebrate

Doubling in size � �� 12 Three expansions underway at Industrial Finishing Services

Workers wanted �� 18 Rapid development is evident in Perham’s 200 job openings

$6 million project brings Perham’s wastewater treatment facility up to speed for another 20 years

Homes on the horizon �� 26 New rental units built in response to rising demand

Today and tomorrow � �� 30 Perham’s plans and projects in support of progress, now and in the future

Learning beyond the books �� 36 Preparing a smart and skilled future workforce

Smart decisions, hard work have kept Arvig at the top of its game

Furnishing success for four generations �� 50 Competitive selection, adaptation keeps Karvonen’s thriving

Banking on sustainability � �� 58 United Community Bank has long history of success

SUPPLEMENT TO the perham focus JANUARY 30, 2014 222 2nd Ave. SE • Perham, MN 56573 p: 218.346.5900 • f: 218.346.5901 www.perhamfocus.com

2 » Progress 2014: Creating Sustainable Success

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meet & greet

› WELCOME We at the Perham Focus are excited to present the 2014 edition of our annual Progress Guide. Every year, putting this guide together gives us a chance to revisit all the good things that have happened in our community over the past year, especially in terms of growth and economic development, and to look ahead to what’s on the horizon.

Marie Nitke Editor

This year, there were as many reasons as ever to celebrate. New businesses opened, old businesses grew, major industrial expansions were announced, construction started on two new housing developments, and some significant infrastructure improvement projects got underway. Though varied and unique, these projects seemed to us to share a common thread of sustainability. Not sustainability in the modern ‘green’ sense, but in the simple sense of setting something up in a way that will make it last; of making changes and improvements in preparation for a better future. We saw it in the major expansion at the wastewater treatment facility, for example – proof of the community’s commitment to supporting its needs for years to come. We also saw it in how city and business leaders came together in action to address the number of open jobs in town, helping to ensure that workers will be found and industries can continue to grow. After considering these and numerous other timely examples of how Perham supports growth today by keeping an eye on tomorrow, we chose a theme for this year’s Progress Guide of “Creating Sustainable Success.”

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Year of Service

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To keep things interesting and examine this theme from multiple angles, we broke up the magazine into three parts, each with its own emphasis and purpose. The first, “Proof of Progress: Evidence of growth in Perham” provides just a few of many possible tangible examples of significant recent advancements in town, including developments at KLN Family Brands and expansions at Industrial Finishing Services. Also included is a story about the sheer number of workers being sought throughout Perham, mostly due to rapid growth. The second, “Strides in Sustainability: Perham’s efforts to support growth for years to come,” is intended to paint a well-rounded picture of all that the community has done in the past year, and plans to do in coming months, in support of progress. Stories touch on topics like infrastructure improvements and affordable housing developments. The third, “Sustaining Success: What long-time, multi-generational businesses have done and are doing right,” offers a peek into the histories and best practices of a few of Perham’s most seasoned businesses – Arvig, Karvonen’s and United Community Bank – in order to shed some light on what it takes for a business to consistently thrive over a long period of time. Our hope is that, as a whole, this Progress Guide will offer some solid evidence of how Perham sets itself up for sustainable success, of how past success has been carried into the present, and of how that success will be continued into the future. — Marie

Year of Service

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Year of Service

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4 » Progress 2014: Creating Sustainable Success

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You’ve shared great-grandma’s cookie recipe, how about sharing her joy in giving to community? Pass on family values and community giving with a donor advised fund. WCI administers the fund; you and your family decide who receives your gifts. To learn more call Kim or Tom at 800 735-2239, or visit giving.wcif.org. YOUR regional community foundation serving west central Minnesota. Learn more at wcif.org. PO Box 318 • Fergus Falls, MN 56538 800 735-2239 • wcif.org • facebook.com/westcentralinitiative

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New York Mills: Monday-Friday 8 a.m.-8 p.m.; Saturday 8 am.-6pm; Sunday 9 a.m.-6 p.m. Phone 385-2765 PerhaM: Monday-Sunday 7 a.m.-11 p.m. Phone 346-6750 food stamps and wic coupons welcome here

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42 YEARS Progress 2014: Creating Sustainable Success

proof of progress

'Grandpa is ' smiling by Marie Nitke

6 Âť Progress 2014: Evidence of growth in Perham

PROOF OF PROGRESS

Four generations of the Nelson family: Albert (with Charlie on his lap), Tuffy and Kenny, left to right.

At 50-year mark, KLN Family Brands has plenty to celebrate t 50 years old, KLN Family Brands has still got it. The years have been kind to this familyowned company, with steady success and consistent growth causing it to blossom into Perham’s pinnacle industry. What’s more, it’s not showing any signs of slowing down. Quite the opposite. The company is continuing to grow and expand at a remarkable pace. What started in 1964 as a small father-son pet food making business has developed into a $500 million corporation that umbrellas Tuffy’s Pet Foods, Kenny’s Candy, Barrel O’ Fun Snack Foods and NutHeads Chocolate Factory. In the past year alone, KLN has started construction on a new $50 million Tuffy’s manufacturing and packaging plant in Perham – the biggest project the town has ever seen – and has purchased a new Barrel O’ Fun snack food facility to expand operations onto

the east coast. There have also been major building expansions at Kenny’s Candy and NutHeads facilities. Meanwhile, recent partnerships with celebrities like Larry the Cable Guy, Dale Earnhardt, Jr. and the Minnesota Twins continue to bring increased national attention to KLN’s products. Charlie Nelson, with the family of ownership and director of sales and marketing, said he and his father, Kenny Nelson, the owner and president and CEO of KLN, will sometimes talk about how the company got its humble start, and feel grateful for how far it’s come. According to Charlie, Tuffy’s Pet Foods was started around August of 1964, after Kenny graduated from college, finished his six months in the Army Reserves and then returned home to Perham. “Grandpa Tuffy was making poultry and livestock feeds with a pellet mill and thought they could start with a very basic product,” wrote Charlie in an email to the Focus. Progress 2014: Evidence of growth in Perham

proof of progress Just a little over a year later, the father and son team added their first “bonafide” pet food extrusion line. Charlie said: “Dad likes to tell the story of starting the sales portion of the business with an Econoline that held one ton. The next truck held two and a half tons. The next truck held eight tons and then came the bigger semis that held 20 tons.” “When Dad talks about how he and Grandpa started with such a small plant and a small truck, it makes Dad and I feel good about our growth,” wrote Charlie. “And we are confident my grandpa is smiling, too.” For a while, the company left the family’s hands. Tuffy retired in 1971, and sold Tuffy’s Pet Foods to H.J.

premium” products like NutriSource, Pure Vita and Natural Planet. These kinds of healthy and hypoallergenic pet food options are becoming increasingly popular with pet owners, and producing them at Tuffy’s has allowed the company to grow its distribution nationally. The $50 million manufacturing and packaging plant currently being constructed in Perham will help Tuffy’s continue to meet that higher demand. Charlie said the new, nearly 100,000-square-feet facility “should entice new customers along with increasing potential sales by 50 percent.” Things are expanding at Kenny’s Candy, as well, with a recent 50,000-square-feet addition to accommodate a new gummy and fruit snacks line. The company produces popular candies — Charlie Nelson, owner and director such as Juicy of sales and marketing Twists, Wiley Wallaby Australian Style Liquorice, Heinz. Two years later, Kenny started and Dr. Pepper licorice. The newest addition to the KLN Barrel O’ Fun Snack Foods. Then, in 1987, he started Kenny’s Candy clan, NutHeads, also got a recent Company. By 2001, exactly 30 years expansion. Founded in 2011, NutHeads after Tuffy’s had been sold, Kenny makes nut snacks and salty-sweet bought it back again. treats like caramel popcorn. The new “It has been an incredible buy back,” 20,000-square-feet concrete production said Charlie. facility and warehouse enabled the comSince regaining that ownership, the pany to add a second chocolate coating Nelsons have introduced new pet food line and two new batch chocolate coatlines and labels that have led to fast ing machines. This newest KLN faction is still in its growth for Tuffy’s, including “super-

The secret of our success isn’t a secret at all...It’s our people

Our Advocate at the State Capital since 1996.

Proudly

District 8A State Representative

Representing You.

Bud NorNes

e-mail: rep.bud.nornes@house.mn www.house.leg.state.mn.us

8 » Progress 2014: Evidence of growth in Perham

‘start up’ phase and hasn’t quite taken off yet, Charlie wrote, but “we feel confident we will get it profitable soon.” If history is any indicator, it shouldn’t be long before the Nelsons take NutHeads to the next level, just as they’ve done with their other ventures. The Barrel O’ Fun facility in Phoenix took four years to turn a profit, according to Charlie, “so while we don’t like to practice patience, sometimes you have to.” Patience is only one of many factors that contribute to the family’s business success. Charlie credits their good fortune to a combination of things, including an investment in state-of-the-art facilities, a dedication to producing high-quality products, and, most importantly, the employees. “The secret of our success isn’t a secret at all,” he wrote in his email. “It’s our people.” KLN currently employs about 1,250 people, making it Perham’s largest employer, by far. According to Charlie, finding more workers to fill open positions is the company’s “number one priority moving forward.” “We have many jobs available and will work very hard to fill positions,” he wrote. “We have focused more than ever on recruiting people to our company and community. We believe we have a lot to offer as a community.” Another big priority the Nelsons will be focusing on in coming months is a new salty snack food facility that they’ve just purchased in Erie, Pa. Charlie said they hope to open production by late spring or early summer of

Contact me with your legislative issues. BILL INGEBRIGTSEN MN STATE SENATOR

Paid for by Ingebrigtsen for Senate. P.O. Box 1325, Alexandria, MN 56308

Perham-Dent School of Champions Welcomes You

A Progressive District

heart of the Lakes eLementary Superior Instruction designated a Minnesota RewaRd school in august 2012 n Exemplary staff dedicated to creating a nurturing and child-centered environment n All day every day kindergarten at no cost to families n Small group, whole group, and 1-1 instruction matched to student needs n Intensive focus on success in reading, writing, and mathematics n Technology integration across the curriculum with SMART Boards, ipads, ipods, and PCs

Prairie Wind middLe sChooL Teaching character on a safe campus

‘‘

Not only did Perham give me an academic foun Public Schools my experiences in music, dation enhanced by longed inspiration to beco but gave me a proI am confident that the me a music educator. lessons I learned in and out of the classroom will continue to lead me in the paths I take as an indiv idual. From a seventh grade choir student to aspi the dream is still the sam ring choir director, inspire others like my own e--to influence and of Perham, but more imp teachers did. A piece I encountered, will remainortantly the people mind as my life adventur in the forefront my es continue Big cheers for Perham Scho to unfold. ols!”

Paige Meyer - 2011 grad n Facilities: each grade has its own house in which to learn, live, and grow n Above average school wide scores in reading and math n Exploratory Spanish, art, industrial technology, computer n A music program teaching strings, keyboard and choir ging academics, , characterThrough excellent teachers, challen n Day treatment for students needing mental health therapy as part of academic instruction experience at Perham g athletics, and inspiring coaches, my buildin n Character education program to create a caring, respectful culture in our school dream of becoming an Air Force High School helped me achieve my n A competent, skilled staff dedicated to the unique middle-schooler pilot.” n A 3 night, 4 day environmental education experience deep in the Superior National Forest each year - caPtaiN aNdreW Stolee in December claSS of 2000; f-22a Pilot, ScHool traiNer iN tHe USaf WeaPoNS

‘‘

Perham high sChooL Preparation for adult life

‘‘

n Learning trips to such places as Carnegie Hall & Puerto Rico, Mexico. n College courses and tech prep courses that are reducing costs of future college tuition. n Project i ENGAGE - Project i Engage is a learning initiative that has been developed to help support the mission in education at District 549. OUR TECHNOLOGY LEARNING INITIATIVE INCORPORATES FOCUSED STRATEGIES, TO MEET THE 21ST CENTURY NEEDS OF OUR STUDENTS. n Residential Carpentry: Students earn credits, wages, and experience in residential construction

I am truly grateful that I had the chance to receive my education thro ugh the Perham School District. My continued succes s at the collegiate level, both as a stu dent and an athlete , is due to the lessons that I learned and knowledge I gai ned through this experience. My drive to push on and goals was constan reach my tly encouraged not only by family and friends, but also by the great teache rs, and coaches. I am proud to represent the area and say that I am 2008 graduate of a Perham High School .”

Perham area Learning Center A different delivery n Offering students a full range of seat based and independent study courses

Mac Stoll PHS claSS of 20 08; NdSU

Public Schools There’s no place like Perham-Dent tion ! ca edu 2 E-1 r for a superio Co-CurriCuLar aCtivities

Perham Boys Cross Country runners are back-to-back state and National Champions.

‘‘

and encouragement that I am so appreciative of the support coaches at Perham High School. Teachers and I received as a student and athlete the experience and enthusiasm in both took the time to share their knowledge, gymnastics helped me to continue my collegiate . classroom and the gym which has Crosse a nsin-L degree at the University of Wisco career and to pursue an academic

KelSi VoMacKa - a Se PHS claSS of 2011; UW-l croS

www.perham.k12.mn.us

A community that creates a “School of Champions”! n Perham High School Boys Cross-country team are the 2012 & 2013 state and National Champions! n 20 varsity athletic programs, 12 fine arts and co-curricular programs. n Minnesota State High School League’s Challenge Cup (recognizing excellence in athletics and the arts): PHS has been recognized as the top public school in 5 of the past 7 years and the outright champion in 2008. n PHS has 40 former students that are currently involved in competitive college athletics or fine arts! Their excellence at PHS opened doors to college performance opportunities, scholarships and travel. n In the last 3 years PHS has had 5 team state champions and 9 individual state champions in arts and athletics; two of our coaches (Jeff Morris and Dave Cresap) have been named National Coach of the Year! n Along with the athletics and fine arts, PHS offers opportunities for excellence in programs normally occurring in only large, suburban schools, such as Science Research, Robotics, and stringed instruments. You will like what you see. Come back for more than a visit!

Perham-Dent Schools

district office phone number

218-346-4501

progressive curriculum + proven results + student success Progress 2014: Creating Sustainable Success

proof of progress

50 years at KLN: A timeline 1964: Tuffy’s Pet Foods started by Tuffy and Kenny Nelson 1971: Tuffy retires, sells Tuffy’s Pet Foods to H.J. Heinz 1973: Kenny starts Barrel O’ Fun 1981: Barrel O’ Fun sold to G. Heileman Brewing Co. 1987: Kenny starts Kenny’s Candy 1988: Kenny and three partners buy back Barrel O’ Fun 1995: Kenny buys out his friends’ shares of Barrel O’ Fun 1995: KLN Enterprises is formed, comprised of Barrel O’ Fun and Kenny’s Candy 2001: Kenny buys back Tuffy’s Pet Foods 2001: KLN Enterprises is renamed KLN Family Brands and now includes Tuffy’s 2009: Second KLN location opens in Phoenix 2010: KLN signs deal to supply snacks and candy at Target Field for Minnesota Twins games 2011: NutHeads Chocolate Factory is founded 2013: KLN partners with Larry the Cable Guy and Dale Earnhardt, Jr. on specialty snack lines 2013: Third KLN location underway in Pennsylvania

The construction site of the new manufacturing and packaging plant being built at Tuffy’s in Perham.

this year. “This is a key for the future of our success,” Charlie wrote, explaining that the new facility will help KLN attract new customers. It will also make shipping along the east coast faster and easier, he added, and will expand the company’s manufacturing capacity, which is currently at its limit for certain product lines. Over the years, KLN has seen a lot of changes, both externally and internally, Charlie wrote: “When my dad and I talk about what happened 50 years ago and how business was done, it is like coming out of the dark ages.” In the company’s early days, for example, there was no such thing as OSHA (Occupational Safety and Health Administration), a national agency that monitors working conditions. There were fewer rules and regulations than there are today. There are also more food allergy issues to consider today, Charlie said, and there’s a greater emphasis on food quality, for both humans and pets. “Talking about a germ-free plant being built at Tuffy’s versus the olden

10 » Progress 2014: Evidence of growth in Perham

days is crazy, but that’s how far we’ve come,” he wrote. Of course, there have also been many advances in technology, and a growing reliance on it. There were no computers when Tuffy and Kenny first started their small pet feed operation; that’s something that has completely changed, and rapidly. As recently as just a few years ago, KLN had only one person working in information technology. Today, there are closer to 10. And packing machines today package items 10 times faster than older models, with 100 times more accurate weights. Overall, the changes have been very positive, resulting in safer, healthier workplaces and increased efficiency. Today and into the future, as things continue to change and evolve within the snack and pet food industries, KLN is poised to remain at the top of its game. With the company growing in every way imaginable as it reaches its 50th birthday milestone, it’s proving to be one of those things that just keeps getting better with age.

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Progress 2014: Creating Sustainable Success

proof of progress

Doubling in size

Three expansions underway at Industrial Finishing Services by Elizabeth Huwe n the industrial park on the northeast side of Perham, the sound of hammers and machinery surrounds the Industrial Finishing Services, Inc. complex. Since its beginnings in 1996, Industrial Finishing Services, or IFS, has specialized in industrial finishing and coating, and the company has continually expanded its customer base and facilities. Today, IFS has three production locations in Perham, New York Mills and Deer Creek, with a total of about 85,000-square-feet of factory and warehouse space. The company has three building expansions currently in progress, which will more than double that space. So what exactly does IFS do? Simply put, it paints machine parts – and for some pretty high-profile companies. ‘Industrial finishing’ is a term for painting individual parts of a machine before they are assembled into a final product. “We paint products for manufacturers like

12 » Progress 2014: Evidence of growth in Perham

Artic Cat, Polaris, Harley Davidson and John Deere,” said IFS President Keith Aune. “We go in and sell our service to paint the parts for their machines, like ATV fronts.” “We’re a bit unique in the market, as we paint plastic,” he added. “Once our facilities are done, there will be nobody close to the area, other than maybe automotive, that will be really as good as we will. That’s nationally.” “We obviously have competition, like everybody else, but there’s not a lot of people that paint plastic for high-end customers like we do,” Aune said. IFS receives shipments of parts from the customer and paints them. Then, the parts are loaded back onto a truck and returned to the original manufacturer for final assembly. When parts come in, there is usually a paint code along with the order, explained Aune. From there, IFS buys the paints and applies it. “It’s easy to manufacture paint, and a lot of it,” said Aune. “But, you’ve got to bring it

Pieces are prepared and then hung on racks, like these, before they go into the factory to be washed, dried and painted.

PROOF OF PROGRESS

Progress 2014: Evidence of growth in Perham

Âť

proof of progress

Top: This addition to the IFS facility in Perham is scheduled to be completed in May and will add an extra 7,200-square-feet. A second planned expansion will add an additional 92,000-square-feet of painting and storage space. Above: Products and parts come in to the IFS factory packed in boxes and on skids. They are often stacked in the warehouse space before finishing and shipping. Currently, there are almost 5,000 skids of product that are being held. The expansion projects will add additional storage space, so everything isn’t always packed to the ceiling. Upper Right: After all of the expansions at IFS are finished, there will be six painting robots like this one in operation, along with another robot used for testing.

Years of Service

Homark Homes

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14 » Progress 2014: Evidence of growth in Perham

Perham 218-739-2847 www.childrenscornerlc.com

Years of Service

Schik EnginEEring, LLc PO Box 158 95 Miller Street Suite C New York Mills 218-385-2044 Fax: 218-385-2048 jschik@schikeng.com

Years of Service

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Years of Service

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Progress 2014: Creating Sustainable Success

proof of progress to a production setting. That’s the key for paint manufacturers.” In a sense, IFS serves as a convergence point, where the raw, plastic parts meet with the paint. Their facilities are specially designed to handle the painting process. Production in Deer Creek is mostly dedicated to processing agricultural

In New York Mills, a 4,200-squarefeet expansion was nearing completion as of early January. That space will be used for two liquid painting robots and additional warehouse space. A pair of developments was also underway in Perham. The first, located along 1st St. NE, will be 7,200-square-feet and was

put into use: robots. Two robots were installed at the New York Mills IFS facility about 18 months ago, and seven more will be located in Perham. Robots are beneficial, said Aune, in that they use paint more efficiently and consistently, saving some expenses on paint and touch-up work. “One way to stay competitive is to add automation,” Aune said about IFS’s future in the industry. “That’s one of the reasons we’re using robots. With the savings we get off — Keith Aune, IFS President the robots...that will keep us competitive, pricing-wise. We’re looking at all aspects of expected to be done by May 1. On the our business to see where the bottleback side of the current facility, another necks are, and where we can save a little structure will add 92,000-square-feet by bit more money by doing things more Aug. 1. efficiently.” When all of the construction is finHowever, Aune said, machines will ished, said Aune, another 60 general not replace the need for people on the and skilled jobs will be added to the production line. Perham economy. That is in addition to “We have a great group of people IFS’s current 180 employees in the area. who work here,” he said. “Good, dediThis job growth will continue, all cated employees make our business.” while another notable fleet addition is

We have a great group of people who work here... Good, dedicated employees make our business. parts for companies like Case New Holland, John Deere and AGCO. New York Mills mostly processes parts for Harley Davidson. Most of the power-sports toys come through the main Perham facility: bits for Mercury Marine, Artic Cat and Polaris are kept under one very large roof. As previously mentioned, those roofs are getting even larger.

What happens inside IFS? Follow a part along the production line to find out.

1. Stacks of ‘raw’ product are organized within the warehouse. Sometimes, when a shipment of parts arrives, it might be a while before it will be painted.

3. Next, the pieces are loaded onto racks and placed on a conveyor belt. This will move them through the rest of the painting process.

2. When an order is ready to be painted, it first needs to be unpacked and prepared. Some pieces come in with plastic strings that need to be burned off.

4. Parts go through a high-powered wash and dry cycle to remove any dust or debris that might interfere with the paint’s appearance or finish.

16 » Progress 2014: Evidence of growth in Perham

5. In a lint-free area, workers (or, in some cases, a robot) will spray on the paint. Then, the piece goes through a dryer. 6. When dry, the conveyor system brings pieces back into the main floor area. Here, they are taken off of the rack and inspected.

7. The piece is buffed and any imperfections in the paint are corrected. 8. Finished products, such as these snowmobile hoods, are then re-packed and stacked to await the trip to another factory for assembly.

Years of Service

ThrifTy AlTernATives

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Years of Service

Tobkin ConsTruCTion serviCes

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Wasche’s Machine Shop, Inc. Est. 1984 New and Rebuilt Wear Parts for: Vegetable Oil • Rendering

Years of Service

CarCare Paradise

112 Judd Street Perham (Behind NAPA)

218-346-3122

30 YEARS

710 Pinewood Lane, Perham Toll Free 1-800-346-7211 218-346-3118 email: mike@waschesmachineshop.biz

Years of Service

Michaelangelo’s Take and Bake Pizza

Years of Service

NEW CREATION LUTHERAN CHURCH Sunday Morning Worship 10:00am

657 W. Main St Perham

295 Coney St. W. Perham

218-347-4992

218-346-7203 garden@newcreationperham.org www.newcreationperham.org

Years of Service

the Pickle Factory

Years of Service

Wedde Motorsports LLc

Full Service Menu & Bar Service Check out our many retail items inc. pickled veggies, condiments, sauces, meats, sweets, jams & syrup!

Your source for all things powersports!

Enjoy Getting Pickled!

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County Hwy. 41 • Vergas 218-758-2619

Progress 2014: Creating Sustainable Success

proof of progress

18 Âť Progress 2014: Evidence of growth in Perham

PROOF OF PROGRESS

Workers wanted Rapid development is evident in Perham’s 200 job openings by Marie Nitke robably more than anything else, the hot topic around Perham over the past year has been jobs. After it came to light in June that there were 200 job openings in town, city and business leaders did something they’ve never done before – formed a jobs committee to work together to fill the employment gap. The jobs themselves are a sign of progress in Perham; evidence of strong commercial growth. The formation of the jobs committee is another sign; proof that the people of Perham are willing to put their heads together and take action to support that growth. The vast majority of the open jobs are in manufacturing, though there are also positions in retail, healthcare, education and other sectors within the community, ranging from entry level to professional. “Growth has been remarkably strong in Perham in the past 10 years,

with over 1,100 new jobs created and filled,” the city’s Economic Development Director, Chuck Johnson, wrote in an email to the Focus. “This reflects the fact that literally all of Perham’s major employers have seen growth, some of it significant. This includes companies such as Barrel O’ Fun, Tuffy’s, Kenny’s Candy, NutHeads, KitMasters, Bongards, Industrial Finishing Services and Arvig. Perham is fortunate to have such a lineup of major employers, because it’s unheard of for a small town to have a lineup such as that.” In all, Perham is home to about 1,750 industrial-type jobs, according to Johnson. That’s more than half the city’s total population of 3,010. And it’s not including any upcoming expansions at factories in town, such as Industrial Finishing Services’ two planned expansions, which will create

another 60 jobs in Perham over the next two years. Employers have always managed to find workers in the past, but as Johnson said, “the pace seems to have picked up in the past several years, thus intensifying the scramble to fill job openings.”

Progress 2014: Evidence of growth in Perham

proof of progress That’s where the new jobs committee comes in. Made up of staff from the city and local chamber of commerce, along with economic development experts and representatives from some of Perham’s largest employers, the committee has been meeting regularly since July to take on two big challenges: First, how to attract more workers

efforts to hit audiences outside of the immediate Perham area. They’ve talked about putting up billboard ads around the Twin Cities, and they’re working on a new user-friendly website that will promote Perham’s job openings to anyone willing to look. The committee is also looking closely at housing, which is a critical piece of the pie. Without affordable housing

Growth has been remarkably strong in Perham in the past 10 years, with over 1,100 new jobs created and filled... — Chuck Johnson, City of Perham Economic Development Director to town; and second, how to accommodate them once they’re here. To spread the word about the open jobs to as many potential employees as possible, the committee has initiated some marketing and outreach

in town, committee members have noted, workers will have nowhere to live once they get hired here. Often, workers with families will also inquire about day care services, and jobs for their spouses. If they

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can’t find those things in town, they’ll settle somewhere nearby and commute or move on altogether. For the good of employers, employees, and the community as a whole, the jobs committee is working to ensure that doesn’t happen. Fred Sailer, a member of the committee, has acknowledged that he and the others have their work cut out for them. But he’s also sure to mention that the challenges of keeping up with Perham’s remarkable growth are still better than the challenges that come with the alternative: “It’s human nature that we would think of this as a problem,” he told the Focus this past fall. “But the greater problem would be boarding up doors, and thankfully that isn’t the case. I hope the community continues to grow and add jobs and housing in the future… And hopefully this will be a challenge for us for years to come.”

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Years of Service

JANUSZEWSKI PLUMBING New Construction • Remodeling • Cabins • Service Drain Cleaning • Water Heaters • Softeners P.O. Box 322 Perham 218-346-5389 Randy Januszewski Insured & Bonded, Master Plumber Lic #060559PM

Years of Service

MARK F. MCFARLANE, CPA

NOOTZI’S ON MAIN

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Community meal every Wednesday from 5:00-6:30 pm

Sunday KICK (for ages 4 4th grade) 9:00 am Adult Forum 9:20 am Worship 10:00 am Sunday worship services are on at 7:00 pm on channel 14

Pastor Randy Freund 295 Coney St. West Perham, MN 56573 218-346-7203 garden@newcreationperham.org www.newcreationperham.org 1020883

Years of Service

warner garage door inc We will be opening a new showroom in New York Mills in February. Come and see all that we have to offer.

Years of Service

Country FinanCial

245 W. Main St., Suite B Perham 218-346-5141

866-985-DOOR (3667)

derek.jensen@countryfinancial.com

Years of Service

Hoot’s sports 1000 East Main Perham

218-346-3333 www.HootsSports.com

Years of Service

LITTLE BEAR TOWING AND REPAIR Thanks to everyone for your support in the past few years. We look forward to serving the community in the future.

45465 445th Street Perham 218-346-5135 Cell: 218-640-0271

Progress 2014: Creating Sustainable Success

STRIDES IN SUSTAINABILITY

Dollars put to

(good) waste

$6 million project brings Perham’s wastewater treatment facility up to speed for another 20 years by marie nitke

ndoubtedly, Perham’s biggest – and arguably most anticipated – infrastructure improvement project of the year was a $6 million expansion at the city’s wastewater treatment facility. Five years in the making, the project was “mostly” wrapped up in 2013, according to City Manager Kelcey Klemm. The newly expanded facility became operational in December, with only a few minor finishing touches left to deal with once the weather warms this coming spring. With the addition of a new 20-acre holding and aeration pond, as well as a new above-ground aeration system and other needed equipment upgrades, the facility’s storage capacity has been increased by 83 million gallons per day by the expansion – enough to carry the city through the next 20 years. Construction bids ended up coming in significantly higher than the engineers’ initial $4.8 million cost estimate. However, Klemm said the final price tag nearly matched the accepted project bid

of $5.9 million, and it ultimately came in on budget. Of the roughly $6 million cost, $2.4 million is being covered by a grant from the Minnesota Economic Development Authority. The rest will come from local dollars. The city could have chosen to go even bigger and build an enclosed treatment facility like some larger cities have, Klemm said, but that would have cost at least three times as much. “I feel pretty strongly that we got the best bang for our buck, as far as capacity and flow,” Klemm said. He added that, as of early January, the flow coming into the facility was “exactly where the city projected it

22 » Progress 2014: Perham’s efforts to support growth for years to come

STRIDES IN SUSTAINABILITY

Perham’s Public Works Director, Merle Meece, points to one of the treatment plant’s holding and aeration ponds during a tour of the facility last winter.

Work at the facility began last winter and continued throughout the year.

Magney Construction workers cement in anchor posts for the wastewater treatment facility’s new aboveground aeration system.

Progress 2014: Perham’s efforts to support growth for years to come

STRIDES IN SUSTAINABILITY would be at this time.” Loading was still high, but the city is working with its major industries to fix that problem through improved industrial pre-treatment processes. Those efforts, coupled with new, higher industrial discharge limits permitted by the Minnesota Pollution Control Agency

and so it had technically reached its lifespan in 2004. Meanwhile, industrial growth in town continued to exceed expectations. Over the past few years, while the treatment plant’s expansion process was in the planning and construction phases, the original facility’s aging

I feel pretty strongly that we got the best bang for our buck, as far as capacity and flow... — Kelcey Klemm, City Manager (MPCA), should help take care of any issues in the future. Overloading had been a problem in the past due to remarkably rapid growth in the community, along with the condition of the treatment facility before the expansion. It was built in 1984 with the expectation that it would serve its purpose for 20 years,

equipment and two aeration ponds and three holding ponds (which all together comprise 46.3 acres) were simply no longer enough to get the job done. This resulted in strong odors from the facility each year for the past few springs, particularly last spring – odors bad enough to generate complaints from

residents and businesses, as well as a $70,000 air quality fine from the MPCA. Perham responded to the bad press surrounding this in its usual positive fashion, with a group of city and business leaders coming together to create a “Let’s Clear The Air” ad campaign explaining the reasons behind the odor (rapid growth being the primary reason) and asked residents and tourists for their continued patience. With the newly expanded facility now operational and the city working under its new permit agreement with the MPCA, this spring’s thaw will provide the true test of how well the new plant can handle Perham’s needs. City leaders have cautioned that there may always be some light odor from the facility, at times, due to its open-air nature, but overall things should be much improved. “We’re not guaranteeing there aren’t going to be odors,” said Klemm. “But it’s not going to be 2012-2013 kind of odors.”

Est. 1883 - Celebrating Over 130 Years Leading supplier of lumber and building materials to contractors in the Dakotas, Minnesota, and surrounding areas

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24 » Progress 2014: Perham’s efforts to support growth for years to come

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Years of Service

minnesota state community & technical college Detroit Lakes, eCampus Fergus Falls, Moorhead Wadena

Years of Service

SnackS PluS

Swan Machine inc.

TacTical Defense

Full Service Vending • Dan McKeever, owner

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Minnesota & Utah Permit to Carry Classes

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218-346-2121

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218-346-2985 Toll Free: 1-877-929-2100

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Hamann Family Dentistry “40th Anniversary of providing dental health care for the Perham area!”

1974-2014

Dr. Brooke Hamann Lorrie Rach, Kristie Friese & Jenny Hovland Mary Schumacher & Joani Piepkorn

Now accepting new patients, call 346-4775 and visit us at www.hamannfamilydentistry.com Open Daily: Monday-Friday

Georgia Adamczyk & Tricia Hamann Vi Von Ruden

Years of Service

Tender hearTs home Care

Years of Service

Conveniently located downtown Perham at 200 1st Ave. South

Years of Service

Dr. Mike Hamann

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Progress 2014: Creating Sustainable Success

STRIDES IN SUSTAINABILITY

26 » Progress 2014: Perham’s efforts to support growth for years to come

STRIDES IN SUSTAINABILITY

Homes on the horizon New rental units built in response to rising demand by marie nitke hen talking about Perham’s past, present and future growth, it’s nearly impossible not to talk about housing. As industries grow and take on larger o rd e r s , they require more workers to fulfill those orders. And those workers need places to live. Housing has been a focus of Perham leaders for the last several years, and will remain so into the future, until the demand for more affordable housing and rental units has been fully met. Some progress was made on that front in 2013, with construction beginning on two new rental housing projects in town: a new Grow Perham apartment building and a new Perham Townhomes development. Both are being constructed on the southwest side of town, near the new hospital. Together, they will provide more than 45 new rental units. The Grow Perham apartment building will house 16 rental units. Owned by a group of local investors who oversee several other rental properties in town, this latest will be located next to two similar properties in the Clearwater First Addition. It is expected to be move-in ready sometime this coming spring. For the Perham Townhomes project, the city platted a new site, the Clearwater Second Addition, which is

A new Grow Perham apartment building is going up on the southwest side of town. It will provide rental housing to 16 families or individuals.

located near the first addition and consists of 35 residential lots within a three-block area. Within that area will be eight 4-unit townhouses, including 31 rentable units and one ‘common house’ for all renters to use. The units will each have two or three bedrooms, and they will all have an attached garage. Some will be available to renters who meet low income

Progress 2014: Perham’s efforts to support growth for years to come

STRIDES IN SUSTAINABILITY

Construction started in 2013 on a townhouse development called Perham Townhomes. The project will provide 31 new rental units.

eligibility guidelines. In early January, City Manager Kelcey Klemm said some initial steps had just been taken to update Perham’s housing plan, in hopes of obtaining future grant funds to put toward housing needs in the community. A co-venture with the city of New

York Mills, the housing plan will include a detailed study of the community’s housing needs, such as how many senior units are needed, how many family apartments are needed, how many affordable homes, etc. Once developers see those numbers, it’s easier for them to cater to the

town’s needs and feel assured of seeing a return on their investment. In addition, lenders feel more confident backing projects that there’s a documented, definite need for. Klemm said Perham’s last housing study was done in 2007, and is in need of updating.

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28 » Progress 2014: Perham’s efforts to support growth for years to come

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TECTONIC WOODWORKING 640 3rd Street NE Perham

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Years of Service

Wedde ConstruCtion, LLC

JH SignS & DeSignS, inc.

Mike Wedde

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44024 Cty Hwy 67 New York Mills 218-385-2880 Cell: 218-640-1072

218-346-7446 218-346-7406 fax www.jhsigns.com

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Royale ResouRces Employment, Flex Plan, Payroll Administration 154 1st Avenue South Perham 800-485-2875 • 218-346-3000 www.royaleresources.com

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J&L NutritioNaL coNsuLtiNg From The Field … To The Table 105 9th Ave NE Perham Office 218-346-648

Progress 2014: Creating Sustainable Success

STRIDES IN SUSTAINABILITY

30 » Progress 2014: Perham’s efforts to support growth for years to come

STRIDES IN SUSTAINABILITY

Today and tomorrow Perham’s plans and projects in support of progress, now and in the future by marie nitke he city of Perham has been working on a number of projects lately in support of progress. In addition to the ‘biggies’ covered elsewhere in this magazine, such as the wastewater treatment facility expansion and affordable housing developments, there have also been improvements made to roads and infrastructure, a new trail system was completed, the water tower was given a noticeable new paint job, and more. These projects are widely varied, yet they’re linked in that they represent a common goal of city leaders – to keep looking ahead, and to keep moving forward, in the best interest of residents, local businesses and future growth. Road and Infrastructure Improvements This past summer, construction began on two major projects in Perham, one in the downtown area and one on the southwest side. Downtown, crews reconstructed the roadway and public parking lot area behind Main Street’s north side businesses, between 1st Ave. N and 3rd Ave. N.

Crews started tearing out pavement, curbs and some trees at the end of August as part of a major road and infrastructure improvement project on the southwest side of Perham.

Progress 2014: Perham’s efforts to support growth for years to come

STRIDES IN SUSTAINABILITY The project fixed water drainage issues and added a few stop signs, concrete gutters and islands to help with traffic flow. The entire area, which used to be littered with cracks and potholes, was also repaved. Work in the southwest neighborhood included water infrastructure reconstruction, sidewalk improvements and service and storm sewer upgrades to five blocks along 3rd Ave. SW between 2nd and 7th Streets, and one block along 6th St. SW between 3rd and 4th Avenues. Both projects were planned in advance as part of the city’s capital improvement plan.

The south side water tower’s new Yellowjackets theme has been a hit with residents.

New recreational trail Last summer, the city laid a path to get its residents walking, running and biking more. The new Wildflower and Wellness Trail, which opened at the end of last June, enhances and helps connect Perham’s other walking and biking routes on the southwest side of town. The trails, which boast nearby wildflower plantings, signage and a couple of benches, wind around the school and hospital area. Residents had already been out using the trails last summer and fall. A water tower with school spirit “Looking back at 2013, I think one of our biggest successes and discussion points was the water tower,” said City Manager Kelcey Klemm in an interview. “It seems like everyone likes it. I get a lot of feedback.” The tower, which was repainted this past summer with a Yellowjackets theme, not only sparked pride and conversation among the people of Perham, but also won a contest to be featured in Tnemec Tanks’ 2014 calendar. City leaders decided to use the school’s black and yellow colors and Yellowjacket mascot because of the tower’s close proximity to the public school buildings, as a demonstration of Perham’s pride in its schools and students. Comprehensive plan updates In order to plan new spaces for future commercial and industrial developments, as well as residential neighborhoods, the city is currently updating

32 » Progress 2014: Perham’s efforts to support growth for years to come

its 20-year comprehensive plan. City Manager Kelcey Klemm said one of the major issues the updates will address is zoning, in order to take a close look at ‘buffer zones’ between residential and industrial areas. For a city of just over 3,000 people, Perham has a uniquely high number of large industries in town, and manufacturing and warehouse facilities are often located very near residential areas. “Perham has always had that co-mingling of uses (residential and industrial),” said Klemm. “You deal with that historical context and you make the best of it.” While some people feel that certain neighborhoods should be an extension of the city’s industrial park, Klemm said, the people who live near there usually disagree. Setting up buffer zones will help keep industry from encroaching too much into residential neighborhoods, and vice versa, as growth continues. Coming up in 2014, the city will also be updating its 5-year capital improvement plan, which will lay out any major upcoming infrastructure improvement projects. Perham Resource Recovery Facility While not a direct effort of the city itself, the major expansion currently under construction at the Resource Recovery Facility is certainly a sign of progress, and it will be a benefit to Perham for years to come. The facility, which burns waste and creates steam used as an energy source for local industries, is also a back-up source of electricity for Otter Tail County. When complete, the three-phase major expansion project will increase the facility’s capacity and efficiency, and add a recycling component. The 68,000-square-feet of new space will allow the facility to burn more trash and double the amount of steam it creates, while producing 10 times fewer air

Years of Service

Perham Truck Service 43589 Fort Thunder Road Perham

Years of Service

Perham auto rePair Fort Thunder Road Perham

Years of Service

Visions Glass auto and Home 507 East Main Street Perham

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Vergas 66 gas & ConVenienCe Located across from the Fire Hall Vergas

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Kit Masters inc.

Phil’s Plumbing

Pride Auto Pros, inc.

Fan Clutch Experts

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Years of Service

Professional agronomy services 725 East Main Street Perham 218-346-2355

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Progress 2014: Creating Sustainable Success

STRIDES IN SUSTAINABILITY

Brian Schmidt and Michael Hanan, key overseers of the Resource Recovery Facility expansion project, touched base while inspecting the construction site last August.

emissions than it does today. Work began on the $28 million project in mid-April of 2013; it’s slated for completion this coming December. Coming soon... There are no major road or infrastructure improvement projects planned for 2014, as the city usually

schedules only one such project every other year, and 2013 was a project year. There will, however, still be some things to watch for, such as the construction of a new hangar at the municipal airport to accommodate six more small airplanes, and work at the Perham Area Library to fix some mold issues.

Coming up in 2015, there’ll be a major reconstruct project along 3rd Avenue SE, from the stoplight at Main Street to the stoplight at Coney Street. “That corridor is our connection to south Perham and downtown” from Highways 10 and 78, said Klemm. “So this is going to be a significant project.” Residents will start hearing more about this project throughout the year, as the city will be gearing up for it well in advance. Planning will involve discussions and cooperation with Otter Tail County. “We want to get a jump start on meeting with business owners and make sure we have a plan in place,” said Klemm. “It’s probably going to be a phased project so we don’t close the whole stretch at once.” When it’s complete, that stretch will be more “aesthetically pleasing and pedestrian-friendly,” he added, with new design elements like ornamental street lights.

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The debate will be Saturday, June 14th at 7:00pm James Mann Center, NY Mills Schools Tickets: Call 218-385-3339 Submit essays to info@kulcher.org (email); on line at www.thinkoff.org; or by mail to Cultural Center, Attn: Think-Off, PO Box 246, New York Mills, MN 56567. Deadline for submission of essays is April 1. Finalists are notified May 1. Four finalists receive $500 award each.

Your Hometown Builder 346.2377

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34 » Progress 2014: Perham’s efforts to support growth for years to come

Visit our website www.kulcher.org to find information about concerts and other arts events at the Center. Telephone: 218-385-3339

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Years of Service

Foster’s Marine service, LLc

Gemstone masonry

Johnson/Evinrude/MerCruiser Authorized Service Center

Concrete • Excavation • Septic Systems Todd Rodeman

43767 Fort Thunder Road Perham Phone: 218-346-3773 Fax: 218-346-6394

Frazee

Boedy appliance Sales & Service New & Used Appliances “Your In Home Repair Experts”

Years of Service

200 West Main • Perham 218-346-2936 boedyappliance.com

Years of Service

Januszewski electric 37211 South Little McDonald Drive Perham

218-334-3274 218-346-6006

foster2@arvig.net

Hwy. 59

•★

Duluth

• Over $1M in Funding Available

210

• Business Lots Starting at $5,400

Fargo/Moorhead

•

Perham

I-94

Hwy. 10

Minneapolis St. Paul

Years of Service

the city of

•

Perham, mN

www.cityofperham.com

Years of Service

Northwoods ElEctrical & coNtrol systEms

Pizza Ranch

616 Pinewood Lane Perham

121 2nd Avenue SE Perham

218-346-7763

• Among the Lowest Gas/Energy Costs in the State

218-346-7890 www.RanchRewards.com

Years of Service

218-346-9798

Years of Service

Subway of Perham

Service Food MArket

The place where fresh is the taste!

Serving you best!

642-3rd Ave. South Perham

250 East Main Street Perham

218-346-6886 218-346-7800 Progress 2014: Creating Sustainable Success

STRIDES IN SUSTAINABILITY

Learning beyond the books

Preparing a smart and skilled future workforce by Elizabeth Huwe or students to stay competitive after graduation, just knowing the basics, such as X plus Y equals Z, is not enough. To be prepared for the next stop, whether that’s college or work, they need a deeper understanding of what that knowledge means and how to put it to use. At Perham High School, students have hands-on opportunities to learn how to shape the world around them and make it theirs. Some programs, such as the residential carpentry class,

skilled future workforce.

Residential carpentry Jon Skow has taught Perham High School’s residential carpentry class for the past 21years. In that time, his goal has never changed: give students a good handle on the construction industry by providing hands-on experience with home building. “When it all boils down, we have to basically crank out a house a year,” said Skow. “It’s my job to give the kids as much of an education about the field as possible. The kids are aware of what they’re doing, and why they’re doing it. Austin Jacobson, freshman Everything is an offshoot of teaching the kids.” have been around for decades. Others, These students do much more than like the robotics team, are quite young, cut and fasten lumber into the shape of but growing. Their goals are different, a building. In fact, they are involved in but results are the same: advancing most aspects of a home’s estimate, bid experience and knowledge for all stuand construction process. dents involved. Their materials and techniques are On a broader scale, these kinds of cutting edge, said Skow: “It’s the same programs are not only good for stuas any other contractor would do it dents, but for the community as a these days.” whole, helping to prepare a smart and Some work, like plumbing and elec-

You have to equip yourself for the technology of the future...

36 » Progress 2014: Perham’s efforts to support growth for years to come

tric wiring, must be done by a licensed tradesperson. But Skow said that doesn’t mean students are shut out. “We try to find local subcontractors that are in it for the educational purposes, too,” he explained. If there is a student in class who wants to know about plumbing, he or she can shadow the plumber and get better acquainted with those tasks. Ultimately, the class serves the needs of the Perham community in two ways. First, it provides additional housing at a reasonable cost. “Housing has been an issue here for as long as I’ve been here,” said Skow. As Perham’s industries continue to grow and attract new employees and families, tight competition in the housing market is likely to remain. Second, with many of the class’s students continuing to pursue carpentry in the area, a shortage of home builders is an unlikely scenario, further ensuring Perham’s growth. Skow said that, over the years, quite a few of his students have gone to work for local contractors or started their own construction businesses. “For some of them, they find out it’s something they don’t want to do for a career,” he said. “But, a lot of them do take it up as a career. They get picked

STRIDES IN SUSTAINABILITY

Progress 2014: Perham’s efforts to support growth for years to come

STRIDES IN SUSTAINABILITY

More than 25 homes in Perham, including this one, have been built and sold by the Perham High School's residential carpentry class over the years. Other projects include shelters at Paul Miller Park and Krauss Park, a new roof on the Pioneer Grounds’ ballroom and numerous storage sheds.

West of the elementary school, the next residential carpentry house waits for spring. Jon Skow’s residential carpentry class is considered to be a non-profit. They only do construction work for other nonprofits such as churches, the school and the city.

Years of Service

Smith Family DentiStry

Years of Service

Mrs. B’s

For a Lifetime of Healthy Smiles 135 Third Street NE Perham 218-346-7700 • fax 218-346-5230 dentalps@arvig.net

43869 425th Street Perham

218-346-6772

38 » Progress 2014: Perham’s efforts to support growth for years to come

Years of Service

AquA LAwn, Inc. •Lawn Sprinklers • Start Ups • Sales and Service • Professional Design and Installation • Complete Line of Inventory • Commercial and Residential - Lic. #TS01383 FRee eSTImaTeS 218-346-3890 Serving the Entire Lakes Area Since 1992

Years of Service

Guardian Crop insuranCe 109 Coney Street West Perham

218-346-7290 1-800-582-7290

Years of Service

Hair Haven

Cultural Center in new York Mills

127 East Main Perham

24 North Main Avenue New York Mills

218-346-3777

Years of Service

New HorizoNs realty of PerHam, iNc.

Ok Tire STOre

Building a Name You Can Trust! Chad Anderson, Broker/Owner

Hwy. 10 & 78 Next to Perham Oasis Perham

423 W. Main Street Perham 218-346-7767

218-385-3339 www.kulcher.org

www.perhamrealestate.ocm Email: horizons@eot.com

218-346-7100

We’re More

THan JUST an oFFiCE SUpply SToRE

Family of Companies

877 •4822 877••882 882•4822

866•916 7668 866••916 •7668 EsserofFamily of Companies Proudly Esser Family Companies Proudly lakes area since 1955 serving theserving lakesthearea since 1955

Family of Companies Proudly Family of Companies Proudly ng the lakes area since 1955 ng the lakes area since 1955

877•882•4822 218.346.6370

866•916•7668

Esser Family of Companies Proudly serving the lakes area since 1955

Super 8 Motel & rV CaMpground 106 Jake Street SE Perham

LOCALLY OWNED SINCE 1982 223 West Main • Perham, MN 56573

Years of Service

Ben Holzer Unlimited Independent Water Systems Water Treatment Systems, Reverse Osmosis, Bottled Water, Softener Salt

Your Geothermal Experts

Fax Service: 218-346-9399 Email: PerhamOfficeSupplyandGifts@arvig.net www.PerhamOfficeSupplyandGifts.com CopyCenter6370@arvig.net

Copy • Fax • SCan • Email www.biggestbook.com

Years of Service

Niemela RepaiR

218-346-6445 www.BenHolzerUnlimited.com

Years of Service

Seip Drug Nathan Seip

559 East Centennial 84 Drive New York Mills

Perham 218-346-7888

uPPly

cOPy center Gift ShOP

Your Geothermal Geothermal Experts Experts

Years of Service

Perham O S ffice

877••882 882••4822 4822 877 Your

1020481

866••916 916••7668 7668 866

Your Your Geothermal Geothermal Experts Experts

Cardmaking Papers & Envelopes Complete line of office Supplies Lamination • Quick Copy Center Full Color Copies • Computer Supplies Fax & Mailing Service • Art Supplies all occasion printable papers Photo & Label Papers for both Laser & Ink Jet Printers Bookmarkers • Bibles • inspirational Cards & Gifts Walk Up Copy • Fax • Scan • E-Mail Full Service & Self Service Copy Center Imprinted Promotional & Business Products Toner Recharging Service

218-385-2730

New York Mills - 385-3360 Perham - 346-3380 Ottertail - 367-2196

Progress 2014: Creating Sustainable Success

STRIDES IN SUSTAINABILITY

Perham High School’s robotics team members include, left to right: coach Josh Mycke, Kanyon Edvall, Josh Lammers, Austin Jacobson, B.J. Meyer, Jay Klatt, Dan Huwe, Michael Thompson, Jeremy Neuerberg, Curtis Swanson, Jake Braukmann and Jeff Morris. Not pictured are Alexander Roberts, Matt Wunderlich, Tyler Weiser-Matthews, Heidi Weber and Kristin Rosenau.

up right away since they have the ‘rough edges’ knocked off.” Smoothing out the rough edges can take time, which is seen through a project’s timeline. “They’re not an experienced crew, so there’s things that we have to do twice,” said Skow. “A normal construction crew would knock out one of our houses in a couple of months, where it takes us a school year. But, if they were born with the knowledge, they wouldn’t need to take the class.” In short: they make mistakes, but then go back and fix them – that’s how lessons are learned. Robotics Imagine this: you and nine other people are challenged to design, build and program a robot to compete in a game using a kit of basic software and parts while obeying a 93-page rule book. And one last thing – you only get six weeks to get it all done. Sound crazy? Probably, to most people. However, since 2010, Perham’s Robotics Team students have welcomed

Robotics team members meet regularly at the high school to build and program a competition-ready robot.

the challenge. This year’s team is made up of coach Josh Mycke, 10 Perham High School students and five mentors recruited from the area. The mentors guide students in small teams formed for specialized purposes. One team writes the computer pro-

40 » Progress 2014: Perham’s efforts to support growth for years to come

gram, another builds the robot, while a third does the circuitry and wiring. Mentors provide insight and advice to the students in order to help them build their robot and get it functioning on schedule. “I emphasized to the mentors: don’t do it for them (the students),” said

Years of Service

Otter tail COunty reCyCling

Ottertail CustOm Cabinetry

Solid Waste: (218) 998-4898

37 years of experience.

Recycling Center: (218) 736-4400 Household Hazardous Waste Facility: (218) 736-2161

94 Lake Avenue South P.O. Box 35 Ottertail 218-367-2224

Years of Service

Steve’S Sanitation, inc.

West Central InItIatIve

Commercial & Residential Garbage & Roll-Off Service

Your regional community foundation serving West Central Minnesota.

140 6th Avenue NE Perham 218-346-4834

P.O. Box 318 Fergus Falls Toll Free: 1-800-735-2239 www.wcif.org Facebook: westcentralinitiative

CHILDREN’S CORNER LEARNING CENTER Now Accepting Applications!

Since 1971 Children’s Corner Learning Center has been providing quality childcare in Otter Tail County. Children’s Corner offers full day childcare for infants 6 weeks to kindergarten. We offer formal learning activities as well as a full preschool and pre-kindergarten program. Activities are designed to promote emotional, intellectual, social, and physical growth. As a non-profit we’re able to focus and provide a happy, safe and loving environment for your children. Reasonably priced – our staff is highly qualified and caring and we’re conveniently located.

Hours: Monday-Friday 6:30 am – 5:45 pm www.childrenscornerlc.com

Years of Service

Truax auTo SaleS

AREA TRAVEL

Mid-State auto auction

Wasche’s Machine shop, inc.

Buy a Quality Vehicle From Someone You Can Trust.

650 Third Ave. SE, Perham, MN

Serving over 3000 Dealers in the Mid-West and Canada

710 Pinewood Lane, PO Box 128 Perham

213 State Highway 29 South Deer Creek 218-462-2765 www.truaxautosales.com

Toll Free: 1-800-626-3801 Phone: 218-346-3933 areatravel@msn.com

Box 100 New York Mills 218-385-3777

800-346-7211 218-346-3118 www.waschemachineshop.biz

Progress 2014: Creating Sustainable Success

STRIDES IN SUSTAINABILITY Mycke. “Show them, but let them do it. And they are all for that.” “He’s done a nice job of bringing people in around him and realizing his position as a coach,” said Perham’s activities director, Erin Anderson, of Mycke. “I think it’s a great fit and a really cool way to incorporate competition and academia.” This year’s mentors are B.J. Meyer from Industrial Finishing Services, Dan Huwe and Jake Braukmann from Kit Masters, Jeremy Neuerberg from Northwoods Electric, and Jeff Morris, a teacher at PHS. As of early January, students on the mechanical design team had already begun working with their assortment of tires, belts and metal to bring a sketch to life, with Huwe supervising. “Jeff Morris was telling me about all of the math formulas you’ve got to come up with to make the robot do what you want it to do,” said Anderson. “When the teachers were working on

Providing Quality Care for 11 Years

the equations and throwing them up on the board...it looked like ‘Good Will Hunting.’ It’s really cool how a lot of this gets pulled together from all sides.” Kristin Rosenau, another teacher at PHS, helps the team by contributing her knowledge of physics to the equations. The electronic design team started learning how to use a different program to lay out and plan wiring and circuits for when the robot’s frame is built and ready for power. Michael Thompson, the team’s only senior, said his passion for knowing how everything works is what drove him to try robotics. “You don’t have to just trust how things work,” he said. “Instead, you can modify or build them for yourself.” “You have to equip yourself for the technology of the future,” freshman Austin Jacobson agreed. In addition to the technical skills and knowledge these students are picking up, there are also life lessons being

learned. “We’re learning to look at problems in different ways,” said Kanyon Edvall, a junior. “There’s more than one way to reach the objective, and the strategy has to involve the entire team.” “That’s most of the fun right there – trying to come up with new, ingenious ways to solve an issue,” said Thompson. The value of these lessons hasn’t gone unnoticed by parents, said Mycke: “I’ve got parents wanting to know if their eighth grader can participate.” On the surface, residential construction and competitive robotics may seem completely different. However, both of these programs give students the chance to see how their knowledge can be used outside of the classroom. As Perham and the rest of the world continues to grow and embrace technological advances, students like these, who aren’t afraid to show what they can do, will have their chance to shine.

Tender HearTs Home Care

Kerrie Steinbach, Owner 407 Carlund Parkway New York Mills, MN 56567

• PCA Home Care • Respite • Homemaking • Companion • Chore •U Care •Medica •SCHA, Long Term Care Insurance •Blue Cross/Blue Plus •Private Pay •Medical Assistance Phone:

218.385.3466

Thrift Store Hours: Mon-Fri 10:00 - 5:30 Sat 9:00 - 1:00 · Great Shopping · Affordable Prices · Clothing · Household · Home Decor · Donations Wanted · We Recycle Donation Hours: Mon-Fri 9:30 - 2:00 or call for appointment 802 JENNY AVE • PERHAM • 346-2131

42 » Progress 2014: Perham’s efforts to support growth for years to come

Years of Service

Bluffton oil Company

Years of Service

Frazee electric, inc.

Serving the community over 75 years. Bulk fuel, Shell motor oil and tires.

901 Red Willow Drive Frazee

101 Prospect Street Bluffton

Years of Service

Perham Office SuPPly cOPy center & Gift ShOP

perham printing

223 West Main Perham

235 W Main Street Perham

218.346.6370 218-334-2382 www.frazeeelectric.com

218-385-2595

PerhamOfficeSupplyandGifts@arvig.net www.PerhamOfficeSupplyandGifts.com

218-346-2870 www.perhamprinting.com

We’re proud proud to to We’re We’re proud to call this this home call home call this home

Personal Banking • Small Business Banking Commercial Banking • Agricultural Lending Investments • Insurance

Your Regional College of Choice M State oﬀers more than 70 programs and 120 degree op�ons on its four campuses and through online delivery. Tell us which programs interest you, and we can help you get on track to discover your future.

Detroit Lakes • eCampus • Fergus Falls • Moorhead • Wadena A member of the Minnesota State Colleges and Universi�es System An Equal Opportunity Educator/Employer. Un Educador/Empleador de Oportunidad Igual.

Years of Service

Dean’s appliance anD RefRigeRation seRvice Residential Repair Over 30 Years Experience Perham

Perham • 346-1300 Perham • 346-1300 1-800-908-BANK (2265) 1-800-908-BANK (2265) Bremer.com Bremer.com Perham • 346-1300 Member FDIC Member FDIC 1-800-908-BANK (2265) Bremer.com Member FDIC

877.450.3322

minnesota.edu

Years of Service

Dent Lions

LogoHomePerham.indd 1 LogoHomePerham.indd 1

LogoHomePerham.indd 1

Years of Service

Galaxy ResoRt on Star Lake

Dent

Highway 108 Dent 218-758-2841

218-346-6200

7 miles West of Dent on Hwy 108, 1/2 mile South on County Hwy 41

1/9/12 8:25 AM 8:25 AM

Years 1/9/12 of Service

1/9/12 8:25 AM

NortherN IrrIgatIoN CoNtraCtors INC. 45214 County Road 80 E Perham 218-346-7246 Lindsay Zimmatic • John Deere Stihl • Jonsered

Progress 2014: Creating Sustainable Success

Sustaining success

From hand crank to wireless, telephones have changed drastically since Arvig entered the phone business.

44 Âť Progress 2014: What long-time, multi-generational businesses have done and are doing right

sustaining success

Making the right calls Smart decisions, hard work have kept Arvig at the top of its game by Darla Ellingson ard work, family values, intelligent risk-taking and some personal sacrifice: that’s what it’s taken for Arvig to go from a small rural telephone company in 1950 to one of the largest independent telecommunications providers in the nation today. The company’s story starts with its founder, Royale Arvig, a man remembered for his entrepreneurial spirit and love of flying. Raised in a family that was already in the telephone business, Royale, along with his wife Eleanor, took over the rudimentary Perham Telephone Exchange in 1950. “Dad was not the oldest, so business was not passed down to him,” explained Royale’s son Allen Arvig in a recent interview. “He was a lineman for Todd-Wadena Electric, started an appliance store, then a construction business building electrical lines. That’s why he had his own plane, to travel around to different construction projects.” Royale was ready to leave the construction business when he heard Perham Telephone Exchange was available. He didn’t know it at the time, but he was about to start a legacy built on strong work ethic and family values, laying the groundwork for the internet, cable television, security, computer repair and telephone company that is Arvig today. “Being in the family and starting on the ground floor, you work hard, you watch your parents work hard and

Father and son team, Allen (seated) and David Arvig continue a legacy in a family-run independent telecommunications company.

Progress 2014: What long-time, multi-generational businesses have done and are doing right

Sustaining success

Royale Arvig would often fly the rural countryside with his dog, Brownie, as co-pilot.

you put in a lot of hours – you had to do it to survive,” said Allen. “In the old days, everything was in the air, and if the poles broke off you worked until you got the service back on again. If you don’t have the dial tone for ‘em, you don’t have anything to give ‘em.” Within three years, Royale had replaced the old manual system in Perham with a dial system, and service was extended to New York Mills, Dent, Richville, Ottertail and surrounding rural areas under the new name East Otter Tail Telephone Company. Allen started out in the family business at age 14 as a janitor in 1954. Two years later, he was doing line work. Allen’s oldest son, David Arvig, started out in much the same way, cleaning phones at age 12 and later helping with phone installations. In the ‘50s, the company had 25 employees. Today, there are 700.

David, no longer the little boy who cleans phones, is vice president and chief executive officer of the company, while Allen and his wife Carmen remain active as president and secretary on the board of directors. So what does it take to be an entrepreneur today compared to the 1950s? “A lot of companies started after the depression – if you were willing to take risks you could be successful,” said David. Though he cautioned that risks are carefully calculated, Arvig is still willing to jump in: “Most of the greatest successes come with some failures.” There was one new concept David pushed for early in his career that took a while to take hold and be successful – a new computer feature called the internet. “I said we needed to get into the internet in the early ‘90s, and then had to fight for five or six years to keep us

46 » Progress 2014: What long-time, multi-generational businesses have done and are doing right

in the internet,” said David. “When we first got on, there weren’t really Web pages, it was more email and communications. Then, about a year later, there were more things people wanted to see.” Even during the tough economic times of the past few years, Arvig was not afraid to take risks. “We expanded more when the economy was down by looking at acquisitions of some smaller operators that didn’t think it would get any better,” said David. “Our industry was changing rapidly and still is. We continue to look for ways to diversify.” Diversity is not just a direction for the telecommunications company, it is a necessity. “We could see that using your wired phone in your kitchen was not going to last forever,” David said. “We used to make money on long distance. Our internet services replaced that (revenue) but now there is a lot of competition in high speed internet.” The company consistently reinvests in technology and network operations to continue to deliver next-generation communications services. Since 2009, Arvig has diversified with the purchase of Time Communications, a call answering business, expanded its utility construction business to serve a five-state region, built an extensive fiber network across the state, and purchased All State Communications, a company specializing in structured cabling for information delivery. This is in addition to Arvig’s portfolio of internet, television, phone, security and computer repair services. So what is on the horizon for Arvig products and services? “VoIP will definitely continue to be the future for voice,” David said, in describing the Voice Over Internet Protocol technology, a method of delivering voice and multimedia communications over the internet that can replace traditional phone service. Along the way, David, who is a self-

Years of Service

NadiNe’s Ladies FashioNs 145 West Main Perham

Years of Service

Perham Steel & Welding 644 West Main Perham

Years of Service

Walt Seifert ConStruCtion

218-346-2030

CANDY

Residential & Commercial (General Contracting Work New & Remodeling Construction)

610 East Main, Perham

346-2985 1-877-929-2100

Minnesota 218-346-4505 Colorado 970-453-6880 or 970-513-1000 www.bhhpartners.com

218-758-2182

CANDY

Let Dr. Victoria help you get back in the game. With a background in athletics, Dr. Victoria enjoys helping athletes of all sports overcome their injuries and in doing so, improve their performance.

157 1st Ave. South Perham, MN 218-346-3560

Y CAND

Anthony J. Stoll, AIA, Principal Architect

34684 State Hwy 108 Dent

218-346-7062

snacksplusvending@gmail.com

BHH Partners Planners/arcHitects

TROY-BILT DEALER

DY CAN

Full service vending coFFee services bottled water

Small Engine Repair

Don’t get stuck on the sidelines!

See us for all your vending needs.

Years of Service

Gary Honer Saw & Tool

43932 Mosquito Heights Road Perham 218-346-2615

www.lakescountrychiropractic.com

Years of Service

Crane Johnson Lumber Co. 620 East Main Perham 218-346-5555 www.cranejohnson.com

Years of Service

Gary WaGenman ConstruCtion Residential - Commercial Concrete - Poured Walls All Types of Construction 40416 Cty Hwy 34 Perham 218-758-2757 or 218-346-6756

Years of Service

JC ElECtriC “Call us for your electrical needs.” 615 Pinewood Lane Perham

218-346-5560

Progress 2014: Creating Sustainable Success

Sustaining success proclaimed computer and gadget guy with a degree from the University of Minnesota in economics, discovered he likes the people aspect of running the business. “We have really great employees and management team,” David said. “When I need to be gone, they are very capable of running everything on their own.” The hardworking, family values in the early days are still present in the growing company, and something that hopefully will be carried on by the next generation of Arvigs. “My daughter is going to the Carlson School of Management at the U (University of Minnesota), and would like to come and join us,” said David. “She is a double major in entrepreneurial business management and marketing.” Arvig provides telephone service to nearly 66,000 customers, television to more than 24,000 customers and internet to more than 36,300 customers, and has a service area that covers more

An early telephone utility crew for East Otter Tail Telephone Company. Royale Arvig is pictured on the far right.

than 9,000 square miles. Father and son have complementary views on the keys to success moving forward. “Grow the business, stay in areas we can survive in and have influence and

growth,” said Allen. “Have fun with what we’re doing, and as we grow, bring more benefits and opportunities to our customers and employees,” concluded David.

Wallpaper too!

PHASE I OPENING

For all your flooring needs... Carpet Vinyl Ceramic Tile Laminate & Wood

JANUARY 31, 2014 AT OUR NEW LOCATION IN OTTERTAIL Clothing • Jewelry • Accessories 328 MN Hwy 78, Ottertail

218-367-3900

! Look no further than Winkels 145 Second Ave., SE, Perham Richard Winkels 218-346-2924 Store Hours: Monday-Friday 9am-5pm

FEB & MAR HOURS Friday & Saturday - 10am to 5pm Sunday - 11am to 5pm Just North of Carr’s Lake Country Supermarket

48 » Progress 2014: What long-time, multi-generational businesses have done and are doing right

Years of Service

LakeLand Veterinary CLiniC Wellness & Medical Center W.M. Rose, DVM 44344 County Hwy 8 Perham

218-346-6550

Years of Service

Rae’s shoes

132 West Main Street Perham

218-346-2605

Plumbing Electrical Paint & Supplies Lighting

• • • •

Lawn & Garden • Animal Health Tools • Pet Supplies Rental Department • And Many Other Farm Supplies Homeowner Projects

945 Market Street • Perham 218-346-6275

www.truevalue.com/marksfleetsupply

Years of Service

Finn Creek MuseuM

King Koin Laundry

New York Mills

121 East Main Perham

218-385-2233 www.finncreek.com

Visit us for all your home improvement projects • • • •

Years of Service

310 Main Street Bluffton, MN 218-385-2608 Fr. Aaron Kuhn Mass times: Sunday: 10:30 am Wednesday: 8:00 am Office hours: Monday, Wednesday, Friday 9:00 am - 3:30 pm email: sjc428@arvig.net

O P E N S E V E N D AY S A W E E K

Years of Service

Napa auto parts & service ceNter

Hamann Family Dentistry

Get the Good Stuff & the Good Service!

Conveniently located downtown

105 Jake Street SE Perham

200 1st Ave. South Perham

218-346-7557 TOLL FREE: 877-346-7557 napaofperham@arvig.net

www.hamannfamilydentistry.com

Years of Service

Huber electric 43922 Mosquito Heights Road Perham

Years of Service

Ken Tervola ConsTruCTion Building Your Dreams #BC005441 New York Mills

218-346-4775 218-346-3916

218-385-2862

Progress 2014: Creating Sustainable Success

Sustaining success

Furnishing

success for four generations

Karvonenâ&#x20AC;&#x2122;s carries all of the furniture and accessories needed to turn an empty house into a cozy home, including sofas, lamps, kitchen appliances and more.

50 Âť Progress 2014: What long-time, multi-generational businesses have done and are doing right

sustaining success

Competitive selection, adaptation keeps Karvonen’s thriving by Elizabeth Huwe ack in 1926, a Finnish man named Yalmer Karvonen started a funeral home and furniture store business in New York Mills. Today, the two sides of that business are still going strong, and they’re still in the Karvonen family. They’ve been split up into two separate businesses,

with the funeral home still based in New York Mills, and the furniture store located in downtown Perham. Although he passed away in 1973, Yalmer’s influence on the businesses can still be felt, as he set the tone all those years ago. “Of course, I never knew him – because of the age difference,” said

Yalmer’s great-grandson, Aaron Karvonen, a fourth generation family member at Karvonen’s furniture store. But, he added with a little laugh, people still tell him about how his great-grandfather always wanted a bargain. The story goes, Yalmer used to buy a cup of coffee every day from a café across the street from the store. When

Progress 2014: What long-time, multi-generational businesses have done and are doing right

Sustaining success the price of his coffee increased to 50 cents per cup, he opted to get a half cup for the original price, instead. To this day, customers can count on a passion for great deals at Karvonen’s. “The number one thing we tell everyone is we beat any price, any day,” said Aaron. “There’s a lot of price matching out there, but we like to beat any price.” One of the reasons Karvonen’s can offer competitive pricing is because of its connection with Brand Source. As Aaron explained, Brand Source is a buying group of more than 4,000 stores around the country with $14 billion in buying power. “We’re basically a very large business, but we all have different local owners and different thoughts on how to run things,” he said. “It’s refreshing to know that you don’t have to pay more just because we’re in a small area,” Aaron added. “Brand Source has done a terrific job in what they do, helping us compete with those (larger) companies every single day.” Calling Karvonen’s ‘just’ a furniture store would not be doing it justice. There are four categories of products within the store. First is the obvious: furniture, but shoppers can also find appliances, electronics and mattresses. The unofficial fifth offering is accessories. Accessories can be seen on display throughout the store. When entering, the first showpiece many customers notice is the shimmering chandelier that seems to be dripping from the ceiling. Other accessories are more low-key, like throws, pillows, artwork and artificial flowers. “We have fun with our accessories,” said Aaron. “It’s totally different, it’s fun, and we just enjoy what we do.” He and his father, John Karvonen, go to markets during the year and study what’s in style to ensure they stay up to date with trends. “My dad’s always said … that the third generation of business is always the toughest,” said Aaron. “That’s typi-

Aaron and John Karvonen, left to right, are the fourth and third generation owners of Karvonen’s furniture store in Perham. They’re pictured here in 2012, after winning the Brand Source Dealer of the Year award for the north central chapter.

cally where most family businesses fail.” “He always tells me he’s been ‘running scared’ for 30 years, and he still does,” Aaron continued. “So, I guess he’s relieved that I’ve been back fulltime … We’re starting the fourth generation, so I guess the goal is we’re going to last a little bit longer.” The Karvonen store’s staying power has a lot to do with its competitive selection of goods. “You don’t just walk in here and buy a sofa – you can get your whole home,” explained Aaron. “We have a lot of people, monthly, who do that if they’re building, remodeling, or moved into the area. You can come here and we handle everything: sales, service and everything in between.” “We are constantly striving to improve our showrooms to create excitement for our guests’ shopping experience,” said Carol Ebeling, who has worked at the store for almost 20 years and is currently their interior designer.

52 » Progress 2014: What long-time, multi-generational businesses have done and are doing right

“We all get to be involved in many ways, from ordering to displaying and selling. Our buyers keep us up with all the latest styles and trends.” A certain focus on growth and adaptation has also kept Karvonen’s ahead of the game. A conscious effort is made to avoid following traditions just for the sake of following traditions, Aaron explained. “Just because something’s worked in the past, doesn’t mean that’s the future,” he said. “Just look at the internet. Things are changing consistently … That’s been our perspective over the last few years. Going forward, I guarantee more change will come to this company and its employees than ever before. Definitely in a good way.” Some people, Aaron said, seem to hold the misunderstanding that an 88-year-old company is automatically an ‘old’ company. “With my being back in the business, and my perspective on things, we’re

Years of Service

Staebler Financial Group

Dean’s Country Market

Jim Kytta ConstruCtion

Schepper cuStom BuilderS, inc.

“Looking Ahead”

New York Mills: Monday-Friday 8 a.m.-8 p.m.; Saturday 8 am.-6pm; Sunday 9 a.m.-6 p.m. Phone 218-385-2765 Perham: Monday-Sunday 7 a.m.-11 p.m. Phone 218-346-6750

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59209 County Hwy 56 New York Mills

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218-346-5725

Otter Tail County

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Richville – Post Office

New York Mills – City Utility Building on County Road 84 next to Lund Boats

Dent – Sacred Heart Church on Highway 108

Bluffton – Tom’s Body Shop on Highway 10

Ottertail – Carr’s Lake County Supermarket on Highway 78

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Years of Service

RichteR’s Mens weaR Big & Tall Tuxedo Rental 137 W. Main Perham

Years of Service

Dan’s shoe & Canvas repair 512 East Main Perham 218-346-2609

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Years of Service

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218-342-2871 Progress 2014: Creating Sustainable Success

Sustaining success really trying to be a younger company every single day,” he said. Touches of current technology, for example, are visible in several aspects of the business. Each sales associate carries an iPad, and the store’s growing website boasts nearly 40,000 items for sale. People shop on the iPads in the store, deciding what they want to order and with which options. Aaron said the

store’s special orders and the number of items shipped out of the area have gone up, thanks to the website. “Business is changing,” he said. “Distance is something that has separated us from customers in the past, and it’s starting not to… It’s just a piece of a larger economy and a larger market. So, we’re only separated by a FedEx vehicle, delivery vehicle or whatever it is.”

From Perham, items have been sent all over the country, to states including Maryland, Delaware, Arizona and California. Ebeling said she thinks another great change was when the front of the store was recently remodeled. Now, she said, “it reflects our showroom as far as updating and improving the looks: both inside and out.” Over the last seven years, business

Karvonen’s furniture store has 88 years of history in the Perham area. Here’s a look back through some of the highlights. 1926: Yalmer Karvonen founds Karvonen Furniture Store and Funeral Home in New York Mills.

Tired of Dealing with a Broken Down Garage Door?

1950s: The store begins carrying brands including Whirlpool, Sealy and La-Z-Boy.

1953: Yalmer’s son, Harold, takes over the furniture store and funeral home.

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1960s: KitchenAid is added to the store’s offerings.

1981: The furniture and funeral portions of the business are split into two separate businesses.

Many things have things change, changed since some things Farmers & stay the Farmers & Merchants Merchants same: The State Bank first started friendly faces New York Mills serving the who are here Since 1916 financial needs of to help answer our community in your questions; The 1916. And although dedication to support our local farmers, businesses o List and consumers; And our 20 14 To Din IR A oney de posit requirement - Pu t Mmi um desire to see NYM and the - No nim ere st rates - Great int re s Expe nditu surrounding area grow card s bit de - Re duce fee hly - No monterdraft fee s - Low ov and thrive! t Bankinetg banking ern Convenien - Ea sy bile, Te lebanc & Int urs

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54 » Progress 2014: What long-time, multi-generational businesses have done and are doing right

Years of Service

Marlo Motors

Lynn Thompson Insurance

Bretz Hardware Co.

Marlo & Paul Sonnenberg

Life, Health, Group, Medicare, Long Term Care, Disability

Perham’s oldest complete hardware

32025 Finch Circle Dent

Perham

1/4 mile south of Hwy 10 on Hwy 78 Perham 218-346-5888 visit us @ www.marlomotors.com

Years of Service

East OttEr tail sOil & WatEr COnsErvatiOn DistriCt 801 Jenny Avenue, Suite 2 Perham 218-346-2050

218-758-3333

218-346-4760

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Years of Service

EssEr Plumbing and HEating 542 West Main Street Perham

Years of Service

Gene’s sport shop Stop in and see us for your fishing needs. Check out our 2014 line of bows! 150 East Main Street Perham

Years of Service

Gordy’s Greenhouse

Years of Service

Pine Shelter Veterinary hoSPital Kelvin Rudolph, D.V.M.

46608 575th Avenue New York Mills

670 3rd Avenue S.E. Perham

218-837-5396

218-346-2120

877-882-4822 www.perhamplumbing.com 218-346-3355

Progress 2014: Creating Sustainable Success

Sustaining success 1981: Karvonen’s furniture store opens in Perham.

1983: Harold’s son, John, becomes owner of the furniture store.

has consistently increased. For the current fiscal year, Aaron estimated, sales are up almost 30 percent – above the industry average. Of course, those numbers are much more than meaningless figures in a ledger. “When you look at the end of the year and you see a big number, you have to remember that there’s a lot of small numbers and a lot of people involved,” said Aaron. “You have to thank your employees, you have to thank your customers and you have to make sure you keep doing the right

1992: Harold donates the original furniture store in New York Mills to the city. It becomes home to the Cultural Center.

thing with that customer each day. Our revenue doesn’t come from one purchase: it comes from chairs, mattresses and refrigerators… everything like that.” In the long run, what does future owner Aaron plan to accomplish? “I like change,” he said. “I live for it right now. I guess I’m at that age where change is fun and I enjoy shaking things up and questioning the status quo – which, of course, we have to do to stay viable.” “I won’t go into specifics,” he continued, “but I think ultimately, we need to

2012: Karvonen’s wins the North Central Chapter Dealer of the Year Award at the Independent Brand Source Dealers annual national convention.

be able to serve more customers more efficiently, so that’s a more robust website and perhaps more locations in the future.” Through it all, however, the basic foundation will stay the same. “Clearly, we have an offering that people enjoy,” said Aaron. “We need to strengthen that, we need to build more relationships with customers, be able to do that more efficiently, and then, ultimately, serve more people. That’s what we’re here to do.”

Celebrating 25 Years Jodie Trites

Mitch Krog

Joleen Miller

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Your Hometown Drugstore

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56 » Progress 2014: What long-time, multi-generational businesses have done and are doing right

Years of Service

Larson accounting service Accounting, Tax Preparation & Insurance 301 Centennial 84 Dr. E. New York Mills

Years of Service

Arvig

Years of Service

Hemmelgarn Builders inc.

Bremer

License #BC003628 Phone, Television, Internet, Security, Computer Repair 888-992-7844 arvig.com

Years of Service

801 Market St. Perham

202 Fox Run Perham

218-346-1300 24-Hour Banking 1-800-908-BANK

218-346-2377

218-385-2920

bremer.com

Your MiNNesota Modular HoMe Builder

Schoeneberger Funeral Home O

Serving the Perham community since 1881. 254 3rd Ave. SW, Perham, MN

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(218) 346-5175 Read Obituaries and post personal tributes on www.SchoenebergerFuneralHome.com

Call or stop in for options on homes and financing

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Hwy. 10 West 120 527th ave. New York Mills, MN 56567

218-385-2330 toll Free: 1-888-676-1555

Visit us online at

www.homarkhomesnymills.com paul@homark.com

Years of Service

Steve Sheets

Funeral Director & Local Owner

Years of Service

Hans Larson Funeral Director

Years of Service

Winkel’s carpet center

Central Minnesota Credit Union

Main Street expreSS

Bauck Busing LTD

Richard Winkels, Owner

Main Avenue North New York Mills

Hours: 6:30 a.m. - 10:00 p.m. 7 Days A Week

Serving the Perham/Dent School District since 1937

145 2nd Avenue S.E. Perham

108 Judd Street Perham

205 East Main Perham

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218-346-2924

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218-346-2210

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Progress 2014: Creating Sustainable Success

Sustaining success

Banking on sustainability United Community Bank has long history of success by Darla Ellingson n 1934, when banks were closing across the country due to the Great Depression, a new bank was opening in Perham. Bill Lee and Don Christie got permission to move their bank charter from Bertha, Minn., renaming it Perham State Bank. Today, with assets topping $250 million, the family-run institution, now known as United Community Bank, or UCB, is woven into the companies, people and prosperity of the area. The Cavanagh name started to take hold in local banking when John “Jack” Cavanagh met Bill Lee’s daughter, Nora “June” Lee at the Grandview Heights Ballroom on Big Pine Lake. The couple was married in 1953, and by 1978 Jack would take over as bank president. The couple had three boys – Charles, William and Robert – who all went into banking. Around Perham, they’re known as Charlie, Bill and Bob Cavanagh. Corralling three boys in Perham had to be challenging for Jack and June. The boys liked sports – basketball, a little football and a lot of golf – as well as hanging out with the grandparents at the lake and Perham Lakeside Golf Course. “Dad was pretty lenient as long as

Personnel of Perham State Bank in 1949 included, left to right: Bernice Jahn, William Hemmelgarn, Elmer Eickschen, Mrs. Ray Siebels, William E. Lee and Donald Christie.

we were home by midnight,” Bob joked in an interview. “Athletics were big back then, and our neighborhood was a pretty competitive environment.” “Bob was the troublemaker,” Charlie added with a grin. “Growing up in Perham was a good experience. Everybody had kids, there were no iPads, we were outside playing ball. There was also more discipline back in those days. We all worked here in high school so we got a bit of a flavor for banking back then.” “We started by filing checks by hand; nowadays a computer does all that,” added Bob. “Dad never really pushed us into banking, it was kind of natural.” After majoring in accounting at the University of North Dakota, Charlie went on to work for an accounting

58 » Progress 2014: What long-time, multi-generational businesses have done and are doing right

firm in Grand Forks. “I enjoyed that, but getting back to the variety of things banking afforded was attractive,” he said. Bob majored in finance at the University of South Florida, with an emphasis on his favorite pastime – golf. Eventually, the sons were drawn back home. “When Dad stepped up as bank president, we also needed to,” said Bob. Throughout the years, the Cavanaghs have put their own mark on UCB’s history. Charlie initiated an important increase in technology. “We installed an in-house computer system in 1984 which gave us some capabilities to provide services we couldn’t before,” he explained. “It

sustaining success

Bob, Jack and Charlie Cavanagh, left to right, stand in the lobby of the new United Community Bank building, which opened on West Main Street in Perham on June 24, 2013.

Progress 2014: What long-time, multi-generational businesses have done and are doing right

Âť

Sustaining success

John ‘Jack’ Cavanagh was head teller at Perham State Bank in 1971. By 1978, he had assumed the role of bank president.

increased proficiencies, which was the foundation for some local businesses to expand and grow at the time.” “Around 1986, ATMs were becoming a big item and one of my first projects was getting that started,” said Bob. “ATM cards were a natural transi-

tion to the debit cards in the mid1990s.” UCB continues to be a leader in implementing new technology, including internet banking, mobile phone banking and online bill pay. The organization has also diversified into insurance and investments. “We’ve invested a lot in technology and can offer much that a large bank can,” said Charlie. “We like to think that you can get a very significant amount of your insurance and investments at one location.” Local economies benefit by community banks because of their heavy involvement in development projects and local businesses. “Perham is filled with visionary leaders and younger talent stepping up,” said Charlie. “We’ve been able to assist industry leaders with lending to get them where they are today.” UCB has also demonstrated strong support of local charities by helping to

organize fundraisers and donating countless hours of volunteer time. Some examples include helping to raise $30,000 for Kinship in 2012 by organizing a group of volunteers to jump in a freezing lake in February, packing meals each year for starving children, pledging a $5,000 match to help victims of the Wadena tornado, and continued support of the Perham Area Community Center. “We’ve invested in the community, the people and their businesses,” Charlie said. “If businesses are doing well, the bank will be doing well.” That’s not to say it has always been an easy path to success. Since the 1990s, consolidation has resulted in a significant decline in the number of banks across the country, especially rural community banks. However, during this time United Community Bank has grown, first acquiring the First Integrity Bank in Frazee in 1995, then adding a second

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60 » Progress 2014: What long-time, multi-generational businesses have done and are doing right

Years of Service

Lake Region eLectRic coopeRative 1401 So. Broadway Pelican Rapids

Years of Service

Anderson Bus & CoACh CompAny

Hanson’s Plumbing & Heating, inc.

Party Bus, Limo Bus, Motor Coach & School Bus Charter

Perham 218-346-2422

Frazee

Vergas 218-342-2422

Years of Service

Daggett truck Line inc. Since 1930 32717 Co Hwy 10 Frazee

800-552-7658

800-262-9393

www.hansonplumbing.com www.lrec.coop

218-334-3171 www.andersonbus.com

Todd Rodeman Frazee, MN t Stonework

www.daggetttruck.com

Daggett Line Inc. TruckFrazee • MN

t Fireplaces t Brickwork t Blockwork t Excavating t Concrete Foundations t Poured Walls t Flatwork

218-334-3274 Fax: 218-334-3277 gmocinc@yahoo.com

“We’re delivering “Perham Pride” throughout the United States! www.daggettttruck.com 800-262-9393 Since 1930

www.gemstonemasonryinc.com

Years of Service

Karvonen’s

Tri-CounTy HospiTal

Vaughn’s auto and Marine Co.

Perham area Public library

Family owned and operated for four generations

Since 1925 415 Jefferson Street N Wadena

Used Cars & Trucks Lund Boats Mercury Motors

Librarian: Susan Heusser-Ladwig

151 W Main Perham 218.346.2040 karvonens.com

218-631-3510 800-631-1811 www.tricountyhospital.org

New York Mills

225 2nd Avenue NE Perham 218-346-4892

218-385-2855

Progress 2014: Creating Sustainable Success

Sustaining success Perham branch at Dean’s Country Market in 2007, and then acquiring Farmers State Bank in Dent in 2012. But what would keep United Community Bank from being acquired by a larger, mega bank? “We don’t have any plans to do that – we’re at the size where we are strong going forward for the future,”

Years of Service

ChurCh of the SaCred heart 36963 State Highway 108 Dent

218-758-2700 • 218-758-3861 Fax sacredheart@arvig.net

Years of Service

Farmers & merchants state Bank and Insurance agency 11 North Walker New York Mills 218-385-2300 www.FMBankNYM.com

104

Years of Service

Charlie said, adding that part of the viability is due to the strength of local small businesses, which are an engine in the economy and local manufacturing, making products that get sold up the line. Like their predecessors, the Cavanaghs survived the financial recession of the past few years. “The recent economic crisis was not caused by community banks, but we are the ones that will bring us out of the recession,” Bob said. “You have to take a certain amount of risk and be prudent to mitigate risk, not overreact, and have the right policies in place.” Banking also faces the difficulty of being one the most highly regulated industries.

Years of Service

United CommUnity Bank Community minded just like you 218-346-5700 www.ucbankmn.com

104

Years of Service

St. Paul’S lutheran ChurCh and SChool

– Since 1910 –

The church has served the area since 1875. 500 6th Avenue SW Perham

218-385-2201

remains our top priority, where decisions are made at a local level as opposed to hard and fast criteria reviewed at a remote location,” Charlie said. Going forward, the brothers expressed that their greatest passion is in lending for expansion of Perham, continuing community involvement, encouraging every person on their team to volunteer, and leading by example. Hopefully, these are attributes that will be passed down to the next generation of Cavanaghs, as they look to the future of United Community Bank.

102

Holy Cross CHurCH Butler

“The never-ending regulations that are promulgated on banks makes it challenging in serving customers in a way they’re accustomed to or understand,” Charlie said, providing an example from the loan side of the business. “New mortgage regulations are coming into effect. There are a lot more compliance details we will have to ask the customer that we’ve never had to ask before.” “In the old days a loan used to be a piece of paper, now it is a file,” added Bob. “Security is also very much a daily issue – we spend a lot of resources on it.” Perhaps UCB’s greatest strength is that the bank’s management and employees are part of the community, and are accessible. “Serving the customer

218-346-2300

Downtown Perham 121 2nd Ave SE

346-7890 dc

Noon & Evening Buffet Dine-in a To-Go b Delivery

62 » Progress 2014: What long-time, multi-generational businesses have done and are doing right

105

Years of Service

Otter tail POwer COmPany 216 South Cascade Fergus Falls

1-800-257-4044 www.otpco.com

106

Years of Service

110

Years of Service

Bongards’ Creameries

1st national bank of henning ottertail battle lake

110 3rd Avenue NE Perham

Henning – 218-583-2933 Ottertail – 218-367-2735 Battle Lake – 218-864-5275

11 East Gilman Street New York Mills

218-346-4680

www.FNBHenning.com www.FNBOttertail.com www.FNBBattleLake.com

Rev. Muriel Hachfeld: 218-847-7650 Church: 218-385-2587

Free public computer use

225 2nd Ave. NE • Perham 218-346-4892 www.perham.lib.mn.us 1922-2012

140 6th Avenue NE, Perham, MN 56573 Phone: (218) 346-4834 Fax (218) 346-4799

Perham health

1000 Coney Street W Perham

112

Years of Service

Free downloadable eBooks and Audiobooks available Free weekly story time for children find us on Facebook under Perham Area Public Library

123

Years of Service

129

Years of Service

St. John the BaptiSt ChurCh

St. John’S Lutheran ChurCh

Perham-Dent SchoolS

Fr. Aaron Kuhn Mass: Sunday 10:30 am Wednesday 8:00 am

Rev. Phil Booe Worship: 10 a.m. Sunday School: 9 a.m. 49658 County Highway 53, Perham Mn 56573 346-4302 www.stjohnsperham.org

progressive curriculum + proven results = student success

310 Main Street • Bluffton, MN 218-347-4500 www.perhamhealth.org

Worship: 10:45 a.m.

Free Wi-Fi

COMMERCIAL & RESIDENTIAL GARBAGE & ROLL OFF SERVICE

112

First Congregational United ChUrCh oF Christ

It’s due time that you checked out the Perham Area Public Library!

FOR ALL YOUR GARBAGE AND DEMOLITION NEEDS

Years of Service

111

Years of Service

218-385-2608 sjc428@arvig.net

Perham 218-346-4501 www.perham.k12.mn.us

Progress 2014: Creating Sustainable Success

131

Years of Service

St. Henry’S AreA ScHool

132

Years of Service

Perham United methodist ChUrCh Pastor, Rev. Jerry Bass Worship: 10:30 a.m

253 2nd St. S.W. Perham

223 4th Avenue S.E Perham 218-346-7420

218-346-6190

133

Years of Service

City of Perham City Offices: 125 2nd Ave N.E. Perham 218-346-4455 www.cityofperham.com

133

Years of Service

Schoeneberger Funeral home Steve Sheets, Local Owner and Director Hans Larson, Funeral Director 254 3rd Ave. S.W. Perham 218-346-5175

Quality & Service at an affordable price! Water Treatment Systems Reverse Osmosis Bottled Water ~ Softener Salt

www.BenHolzerUnlimited.com

137

Years of Service

Apostolic lutherAn church Since 1877 Don Salo, Pastor New York Mills

139

Years of Service

St. Henry’S CatHoliC CHurCH 234 2nd Ave. SW Perham

140

Years of Service

New York Mills Public schools

St. Lawrence cathoLic church

School first opened in 1874. “Come learn with us”

RUSH LAKE

New York Mills 218-385-2166

218-346-4240

148

Years of Service

218-385-2553 www.NYMills.k12.mn.us

2.5 miles on Hwy 14, East of Hwy. 78 218-346-7729 The Oldest Catholic Church in Ottertail County.

Progress 2014: Creating Sustainable Success

New York Mills

M I N N E S O T A Independent School District #553 New York Mills Public School District 553 P.O. Box 218 • New York Mills, MN 56567

www.nymills.k12.mn.us

his year the New York Mills Public School is celebrating its 140th year of service to the New York Mills community and its residents. Since the school formed in 1874, its goal has been to prepare students for success as adults in our society and that continues to be the goal today. To help make sure that every child meets the state academic requirements and that all students graduate prepared to enter the work force or continue their education at a post-secondary institution, pre K- 12 teachers continually work to refine curriculum and improve instruction. New York Mills students continue to perform well on the Minnesota Comprehensive Assessments, which are administered each year. The results of these assessments show persistent academic proficiency, student growth, and achievement gap reduction. Thanks to a voter approved levy, the district continues to make progress in technology with Wi-Fi accessibility throughout the school building, smart board technology in early primary classrooms, and a new student information system, offering parents greater access to student academic progress. Volunteer support of the NYM Public School is remarkable. Most evident is the Community Supporting Classrooms (CSC) group, which successfully held their third annual elementary carnival. Proceeds from this fundraising event netted well over $10,000 to be used to enhance elementary classroom instruction and brought the community together for an evening of food, family and fun. With all the positive things happening at the New York Mills Public school is easy to see why Eagle Pride is strong within our community.

nts e d u t S g in r a p e r P “ for Life” New York Mills Public Schools take pride in their traditions. Excellence in academics, athletics and the arts is what sets us apart as an educational leader. We are proud of the accomplishments of our students. Their dedication to excel is a perfect example of the exemplary will and pride that is shown in our schools every day.

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