LABOR SHORTAGES | HOUSING & DAYCARE | COMPANY & COMMUNITY INCENTIVES | PEOPLE AT WORK
Progress 2019
Supplement to the Perham Focus
NOW HIRING
Perham's efforts to attract, retain and accommodate new workers
PAGE 2 | PROGRESS 2019
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PROGRESS 2019 | PAGE 3
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J
obs. Now there’s a topic big enough to fill a whole magazine. Probably no single subject has been talked about more in Perham in recent years than jobs. That’s why we at the Perham Focus decided to make jobs the theme of this year’s Progress, our annual magazine devoted to economic affairs in Perham. In these pages, we dive deep into the sea of issues that surrounds this broad topic. We examine Perham’s workforce and labor market. We explore efforts by the city and employers to attract and retain workers. And we study the challenges, such as housing and daycare shortages, that inevitably come from having more jobs than people, as Perham does. We hope you’ll dive in with us, and read on.
by MARIE JOHNSON
A SPECIAL SUPPLEMENT TO THE PERHAM FOCUS, FEBRUARY 28, 2019
PERHAM FOCUS 300 West Main Street, Suite C • Perham, MN 56573 p: 218.346.5900 • f: 218.346.5901 www.perhamfocus.com
EST. 1980
PUBLISHER
Melissa Swenson mswenson@dlnewspapers.com MAGAZINE EDITOR
Marie Johnson mtjohnson@dlnewspapers.com CREATIVE MANAGER:
Sara Leitheiser sleitheiser@dlnewspapers.com CONTRIBUTORS:
Marie Johnson mtjohnson@dlnewspapers.com
Auto Body Repair & Auto Detailing 218-346-3211
ADVERTISING:
Amber Bauer abauer@perhamfocus.com Becky Wedde bwedde@wadenapj.com
Mon - Fri: 8:00am - 5:00pm Weekends: Closed
COVER & PAGE DESIGN
Tasha Kenyon tkenyon@dlnewspapers.com 001829524r1
PAGE 4 | PROGRESS 2019
Carter Jones cjones@perhamfocus.com
Cover illustration: ...crowd walking in perspective... by © rob z / Adobe Stock
ISD 549: A PROGRESSIVE DISTRICT Kids Adventure Preschool - We continue to make strides in preparing students for the rest of their educational futures through our curriculum and other teacher supports, including our new curriculum, Connect4Learning, an engaging curriculum that allows students to explore and problem solve with one another. This curriculum and other supports are preparing our students for the rest of their educational careers.
Heart of the Lakes Elementary - Our new Action Based Learning Lab provides an active environment that makes learning fun for students, while promoting healthy and active movement. Students are enjoying getting their "wiggles" out with fun and unique movements while preparing their brains for learning. Teachers are enjoying students that are more focused and ready to learn.
Prairie Wind Middle School - The completion of the remodeling project at PMWS and subsequent connection to the new PHS, has allowed our students to be exposed to a wider variety of educational spaces and experiences that were not available to them up to this point. In addition to providing more space for students, the newer facilities also boast a more comfortable, multi-faceted learning environment.
Perham High School - The variety of large and small collaboration spaces in the new high school facility have provided our team and our students with the opportunity to be mobile in our education delivery throughout the day. The new spaces have helped with the expansion of our Career Tech Education programs, such as Jacket lv'lanufacturing and Pro Start Courses.
Perham Area Learning Center - Our new ALC facility offers staff and students new options and advancements in technology that we haven't had in many years. Being connected to PHS gives our students new opportunities and flexibility in terms of available classes. The new space is much more conducive to learning, and the spacious rooms provide greater learning opportunities.
PERHAM-DENT PUBLIC SCHOOL DISTRICT
LEARN MORE ON OUR WEBSITE �o�®[M�lfin)§@Ju@@�§o@�
PROGRESS 2019 | PAGE 5
8
CONTENTS
NOW HIRING:
TACKLING THE DEMANDS OF A GROWING WORKFORCE WITH COLLABORATION AND CREATIVITY
24
JOIN OUR TEAM:
LOCAL DEVELOPERS CONSTRUCT NEW WORKFORCE HOUSING SO PEOPLE WHO WORK HERE, CAN LIVE HERE
32
EVENING AND WEEKEND SHIFTS AVAILABLE:
NEW EFFORT UNDERWAY TO ADDRESS DAYCARE SHORTAGES
40
EXCELLENT BENEFITS PACKAGE: EMPLOYERS AND CITY LEADERS DEPLOY INNOVATIVE INCENTIVES TO ATTRACT AND RETAIN WORKERS
PEOPLE AT WORK A CLOSER LOOK AT WORKERS IN PERHAM
22 Gene Jahnke: Frozen Foods Manager ������� 30 Pete Waldon: Brewmaster ���������������������������������� 36 Karissa Yates: Hair Stylist ������������������������������������ 38 Chad Bormann: Architect ������������������������������������ 44 Curt Palubicki: Trash Collector ������������������������ 50 Nicki Doll: Retail Manager �����������������������������������
Joel Moen: Inventory Controller �������������������������������������������������
52
Jim Rieber: Director of Information Systems and Facility Management �������������
54 PHOTOS BY CARTER JONES / PROGRESS
PAGE 6 | PROGRESS 2019
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NOW HIRING
PAGE 8 | PROGRESS 2019
PHOTOS BY CARTER JONES For Progress
Workforce shortages in Perham, particularly in manufacturing, peaked to a “crisis level” about two years ago. While the situation is less dramatic today, shortages remain an issue for some major employers in town.
PERHAM HAS MORE JOBS THAN PEOPLE
Business and community leaders tackle the demands of a growing workforce with collaboration and creativity BY MARIE JOHNSON For Progress
P
erham is famous for being Minnesota’s small town with “more jobs than people.” The city is home to an estimated 3,397 residents, and more than 4,400 jobs. That’s a full thousand more jobs than people, in a town that only has a few thousand people to begin with. Analyses by the Minnesota Department of Employment and Economic Development, or DEED, show Perham has been a “labor importer” and “regional employment center” for decades. It was an economic boom that started in the early 2000s, though, that really created the dramatic job surplus of more recent years. Ken Stine measures a piece of metal in the shop of Perham Steel and Welding.
Between 2006 and 2015, Perham employment increased at a rapid and steady rate, with nearly 1,200 jobs added. This was “despite a recession in 2008 which led to massive job losses in most of Minnesota, including Otter Tail County,” according to one DEED report. Perham’s job boom peaked about two years ago, when the community found itself in a “crisis situation,” as it was dubbed by Perham business leaders and later reiterated by media outlets. At that time there were about 350 unfilled jobs in town, and employers were scrambling to patch those holes. The situation appears to have cooled since then, but hasn’t disappeared altogether. Today, insiders say, there are significantly fewer unfilled positions in Perham than there were at that peak, but
a handful of top employers still report shortages — shortages bad enough to potentially affect their bottom lines. “The rapid pace of growth in Perham that was happening for a while there has started to slow down now,” says Chuck Johnson, Perham’s Economic Development Director. “I think that’s because it was time to slow down. It was starting to choke.” Large employers, particularly manufacturers needing a high number of entry-level laborers, which are especially hard to come by, reached a point of desperation at the height of the shortage, with some forced to turn down new business because they simply didn’t have enough people to produce any new orders. In addition, Johnson says two prospective major employers expressed interest last year in bringing their companies to Perham, but both “got scared off because of the potential inability to find employees. After serious discussions, they backed away because they know how tight Perham is.” PROGRESS 2019 | PAGE 9
It’s a tough world out there today. It’s more visible in Perham because we’ve got that growth and that job need that’s been out there for a long time, but societally, the Baby Boomer retirement is putting a crunch on everybody. — CHUCK JOHNSON,
PERHAM ECONOMIC
DEVELOPMENT DIRECTOR
PAGE 10 | PROGRESS 2019
Worker shortages are not unique to Perham. Communities and businesses across the state, region and beyond have been fretting about employment for years. The nation is in the midst of a Baby Boomer “retirement wave,” Johnson explains, “and there’s a lot of wave left yet.” “It’s a tough world out there today. It’s more visible in Perham because we’ve got that growth and that job need that’s been out there for a long time, but societally, the Baby Boomer retirement is putting a crunch on everybody,” he adds. “(Employers) aren’t just competing for people in Perham, they’re competing for people all across the U.S. That’s why the unemployment rate is what it is today (it was under 4% at the end of 2018), because there just aren’t people to hire.” When communities are lucky enough to experience rapid economic growth as Perham has, people usually end up describing the situation as “too much of a good thing” or “a good problem to have.” Industry flourishes, and it’s
the rest of the community’s job to keep up. Commercial growth requires more workers, and those workers require homes and services like healthcare, daycare and good schools, amenities like restaurants and workout centers, plus opportunities for entertainment and recreation. Every sector of the community — health, education, religion, government, business, arts and entertainment, etc. — is connected, and they’re all responsible for the community’s success or failure. A community either grows together, or it falls apart. That’s where Perham gets it right.
‘WHY IS PERHAM...?’
Johnson says most of the questions he gets about Perham from people who’ve never lived here start with, “Why is Perham...?” As in, “Why is Perham, a tiny town in the rural Midwest, always making headlines?” “Why is Perham always growing?” “Why is Perham so successful?” “Why is Perham, Perham?”
Hundreds of Ethernet cables keep Perham Health’s computer network connected, demonstrating the big role that tech, and tech workers, play at major companies today.
Of East Otter Tail County
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The answer to those questions, Johnson believes, is threefold: part of it is due to the city’s size and location, part of it is strong leadership, and part is simply “dumb luck.” Perham “won the lottery” in terms of the character, quality and unusually large number of entrepreneurs that chose to establish themselves here years ago, and then ended up making it big, Johnson says. Families that are locally famous now, like the Arvigs and the Nelsons, among others, were once rookie players when they started out on the scene generations ago, and no one at the time could have predicted their future success. But thanks to “good values and business sense,” along with that “dumb luck” Johnson mentioned, those families are now leading some of the biggest and most wellrespected businesses in the region, like Arvig and KLN. Then there were other big companies that, for whatever reason, chose to settle here, like Bongards, and Kitmasters. And due to the area’s strong agricultural presence, farmers and farming organizations like the Lakes Area Coop have flourished, bringing billions of dollars into the local economy over the years. Tourism is also strong thanks to the area's abundant opportunities for outdoor recreation. “There is something to be said for dumb luck,” says Fred Sailer, a recruiter at KLN and member of the Perham Jobs Committee. “You’ve got a combination of
An architect reviews a building plan in an office at BHH Partners in Perham. BHH has been behind many of the community’s recent big-ticket construction projects, including the new Perham Health and Perham High School.
tourism, industry, agriculture… and also the distance from Fargo allows Perham to have a unique retail presence.” Size matters, too, according to Johnson: “Perham is small enough that you can’t hide,” yet big enough to offer resources and opportunities for professional growth. “So part of the ‘why’ of Perham is that — the lottery stuff,” Johnson says. “We won the lottery a few times, by accident. But I really think what separates Perham apart...is leadership. And the leadership thing doesn’t happen by accident — it’s a self-fulfilling prophecy.”
POPULATION GROWTH IN PERHAM, 1970–2018 3,500
3,397 2,985
3,000 2,559 2,500 2,000
1,933
2,086
2,075
1,500 1970
1980
1990
2000
2010
2018
From information submitted by Perham Economic Development Director Chuck Johnson
PAGE 12 | PROGRESS 2019
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PROGRESS 2019 | PAGE 13
TOP EMPLOYMENT FIELDS IN PERHAM
34%
Manufacturing (accounts for more than a third of all employment, with more than 1,500 jobs)
25%
Other (1,139 jobs) Transportation, Agriculture, Forestry, Construction, Real Estate, etc.
13%
Health Care and Social Assistance (607 jobs)
10%
Retail Trade (441 jobs)
25%
Other (1,139 jobs)
34%
TOTAL JOBS:
Manufacturing (1,554 jobs)
4,556
13%
Health Care and Social Assistance (607 jobs)
(includes Perham and Perham Township)
10%
Retail Trade (441 jobs)
6%
Educational Services: (257 jobs)
4%
Administrative Support and Waste Management Services: (165 jobs)
3%
Information: (149 jobs)
3%
Wholesale Trade: (144 jobs)
2%
Finance and Insurance: (100 jobs)
From a 2016 report by the Minnesota Department of Employment and Economic Development
PAGE 14 | PROGRESS 2019
That leadership goes back to those ‘founding families’ of modern Perham, which instilled a spirit of collaboration, optimism and success into the community in its early days, and that’s carried through into today. “I grew up in this community, and it wasn’t okay to be average,” Sailer contends. “When you have that kind of leadership, it brings you up to another level. When the tide goes up, all ships float. There’s that mentality here.” It helps that many of the top employers in town are locally-owned, family-run businesses, which are typically more willing to invest in the community than companies without strong local ties. “Those owners stay, even through tough times, because this is their home, and their employees are their neighbors,” Johnson says. “We tend to forget, I think, the value of local ownership.”
I grew up in this community, and it wasn’t okay to be average. When you have that kind of leadership, it brings you up to another level. When the tide goes up, all ships float. There’s that mentality here. — FRED SAILER, KLN RECRUITER
AND JOBS COMMITTEE MEMBER
clockwise from top:
Shots of espresso pour from a machine at a local coffee shop. Perham has a strong supply of retail and hospitality jobs. Curt Palubicki uses a joy stick to operate the mechanical arm on his Steve’s Sanitation side loading garbage truck. A display of oranges at a local grocery store. Retail is one of the top employment fields in Perham.
PROGRESS 2019 | PAGE 15
Perham benefits from what Johnson describes as a “leadership pyramid.” There are really strong leaders at the top who work well amongst themselves and with others to create solutions for whatever problems come up in the community, he explains, and their can-do attitudes filter down to everyone else. These leaders also work to recruit and bring their associates back to town to fill other leadership roles, which continues to feed the cycle of success. “Perham has very significant leadership...and it’s been like that forever,” he says. “I’m very strongly convinced that the thing that separates Perham from almost any other town, is leadership.”
WHERE THE NEEDS ARE
Dave Schornack, director of sales and business development at Arvig and a longtime real estate developer, recently said, “I think one of the biggest detriments that we have as a community is not having a large enough workforce. Sometimes when you have too many opportunities for jobs, it may limit the amount of creativity as far as creating
PAGE 16 | PROGRESS 2019
1 I think one of the biggest detriments that we have as a community is not having a large enough workforce…. The No. 1 thing holding us back as a community, and as an area, is the workforce. — DAVE SCHORNACK, DIRECTOR OF SALES AND BUSINESS DEVELOPMENT AT ARVIG
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new jobs, new companies...new ideas that could be spun off of the businesses in town. The No. 1 thing holding us back as a community, and as an area, is the workforce.” According to DEED, manufacturing has the greatest workforce needs in Perham right now, but plenty of other fields need people, too. “When you think about jobs in Perham, its real common to think about the production jobs, but the fact of the matter is, Perham has a lot of professional jobs,” says Johnson. “You need accountants, a legal team, food scientists, sales and marketing people…” according to Sailer. “There are a lot of professional jobs that go along with our local industry and business.” Manufacturing jobs account for more than a third of all employment in Perham, with more than 1,500 jobs, making it no surprise that there’s such a need for manufacturing workers. Other top employment fields in town include health care, retail, education and administrative support. While worker shortages are less dramatic today than they were a couple years ago, certain professions are chronically hurting. Part-time, seasonal, and entry-level positions of all types are always hard to find good candidates for, local employers say, and retainment is usually an issue for those, as well. Certain skilled, specialized roles can be tricky to fill, too. At Perham Health, which employs 583 people between its hospital, clinic and assisted living facilities, Human Resources Director Pat Ferguson says it can be a bit of a challenge to fill specialty positions and nursing assistant positions, but shortages are relatively rare overall. “Our biggest challenge is nursing assistant positions at the nursing home,” she says. “It has the highest turnover and number of openings as an organization. We are very fortunate in the hospital, as far as shortages. We usually only have one or two openings at any time for nurses.”
PAGE 18 | PROGRESS 2019
right: Pete Waldon, of Disgruntled Brewing in Perham, shows off some hop pellets used in brewing beer. Becoming a master craft beer brewer takes skill, creativity and years of practice. far-right:
Wort is drained from a tank during a test batch of craft beer at Disgruntled. Most people tend to think of manufacturing jobs when they think of the employment Perham has to offer, but there are plenty of opportunities for professional, entrepreneurial and creative jobs as well.
Even so, recruitment is a neverending process. The healthcare organization is constantly working to maintain a strong presence on the web, Ferguson says, as the majority of job applicants find out about their openings through online job postings. People are applying from an expanded region these days, she says, with some people willing to commute from as far away as Alexandria.
TRAVELING HERE, THERE AND EVERYWHERE: COMMUTING TO AND FROM PERHAM* ► More than 3,000 workers commute to Perham every day, while almost 1,000 Perham residents commute out. Approximately 718 Perham residents stay in Perham to work. ► The vast majority of Perham workers who commute into town live in Otter Tail County and drive less than 25 miles to get here. About 82 percent of those come from within the middle and northeastern parts of Otter Tail County, another 10.1 percent from Becker County, and 3.7 percent from Wadena County. ► Almost 17 percent of commuters out of Perham travel 30 minutes or longer to their jobs, but the mean travel time is 12.2 minutes. ► While Perham is a labor importer, with more jobs than people, the 25-mile radius around the city is the opposite; approximately 11,751 people who live in that radius commute out of it for work every day. ► Residents within that 25-mile radius mostly remain in Otter Tail County for work, but nearly a quarter travel to other counties, primarily Becker and Wadena Counties as well as Cass County, N.D. ► More than half of total commuters from Perham are ages 30 to 54. *From the most recent data available from the Minnesota Department of Employment and Economic Development. †DEED data, “Commuting Patterns - Perham, MN,” from Dec. 2017
FAST FACTS ABOUT WORK AND WORKERS IN PERHAM*
82% of Perham’s workforce commutes into town for work: Where are they coming from? â€
5%
1%
Wadena County
Todd County
10%
Overall employment growth has slowed in the past few years, but growth in several industries remains much higher than average, including healthcare and social assistance, wholesale trade, transportation and warehousing, and public administration. Between 2006 and 2015, Perham employment increased at a steady rate, adding nearly 1,200 jobs. This occurred despite a recession in 2008 which led to massive job losses in most of Minnesota, including Otter Tail County. Manufacturing accounts for more than a third of total employment growth.
Becker County
13%
Other (most come from within a 25-mile radius)
71%
Other parts of Otter Tail County (mostly the middle and northeast)
Roughly 720 Perham residents commute out of town for work. Most go to Becker and Wadena Counties in Minn., as well as Cass County, N.D.
More recently, employment in Perham decreased by over 50 jobs from 2015 to 2016, the first annual decrease in local employment since at least 2012. Perham Township, however, added nearly 30 jobs in that same time period, keeping local losses to a minimum. Wages for production occupations are generally lower in West Central Minnesota than in the state as a whole, with production workers earning an average hourly wage of $13.08. Labor force growth from 2012-2015 indicates that many new local jobs were filled by new labor market entrees. Job growth in Perham significantly outpaced local labor force growth, indicating many (but not all) new jobs were filled by non-residents. *According to the most recent data available from the Minnesota Department of Employment and Economic Development
PROGRESS 2019 | PAGE 19
To help with recruitment, Perham Health has just launched a new marketing campaign to brand itself as a great place to work. Its new slogan, printed on posters and business cards that get handed out at career fairs, is “We don’t do average, we do awesome!” — a carryover from the theme of last year’s Company Appreciation Week. Along with recruitment, Ferguson says Perham Health is focusing on retainment as a major strategy against worker shortages, putting it in the same boat as a few other key employers in town, such as KLN. Perham Health has begun offering more trainings and educational sponsorships, and has been working more directly with its nursing staff to provide them with their preferred shifts. “Our model of care brings us really high quality candidates,” she says. “And we never take that for granted. We are working on that every single day.” “It’s not a crisis,” she adds of the current employment situation in town. “But we can’t take our eye off the ball.” ◆
Mindy Christensen
S t yliSt /S pa t eCh
Natalie Langen S alon
C oordinator
Follow us on revive-salon-spa.com
Small businesses, like the new Willow Bookstore that opened on Main street this past fall, tend to do well in Perham. The town has a reputation for being good to entrepreneurs, and business owners work together for the overall benefit of the community and their businesses.
Missy Lubitz C o -o wner S t yliSt
Bri Tuman S t yliSt
Sarah Jayne C o -o wner S t yliSt
Karla Kupfer
S alon C oordinator
Jennifer Holzer
M aSSage t herapiSt
Cassie Disselbrett
S t yliSt /S pa t eCh
(218) 346.6860 650 3rd Ave SE, Suite 6c Perham, Minnesota 001829328r1
PAGE 20 | PROGRESS 2019
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PEOPLE @ WORK SHE TAKES ANY PROJECT AND RUNS WITH IT. — LEVEL III OWNER ANDREA GREIFF, OF NICKI
Nicki Doll: Manager at Level iii BY CARTER JONES For Progress
Nicki Doll has been working at the clothing store for the past two years.
PAGE 22 | PROGRESS 2019
L
evel iii clothing store Manager Nicki Doll’s normal work routine abruptly changed in late December, after two other nearby businesses were destroyed by fire. Smoke damage from that fire decimated Level iii’s entire inventory. Everything in the store was affected, including Nicki’s computer, which still smells like smoke whenever she boots it up. Left without a storefront, Nicki has been forced to improvise. She’s now set up in a makeshift office crammed in the back room
of Dot and Minnie’s, the sister store to Level iii that’s located just across the street. Just days after the fire, Nicki was already moving Level iii’s incoming spring collection into a corner of Dot and Minnie’s. It’s precisely this focus, flexibility, determination and get-it-done attitude that make Nicki successful at her job, according to her boss, Level iii and Dot and Minnie’s Owner Andrea Greiff. “She takes any project and runs with it,” says Greiff. “We love Nicki.” While the circumstances of her position have changed since the downtown fire, Nicki’s responsibilities have generally remained the same. On a typical day, before unlocking the doors and opening for business, she sweeps the floor and sets up displays. When new clothes come into the store, she checks that the shipment matches what was ordered, and after unpacking, she steams out wrinkles and makes price tags. She also takes pictures of items for the online store, and stocks goods on the sales floor. She is personally responsible for ordering the store’s jewelry from suppliers online. A Perham native, Nicki has worked at Level iii for the last two years. “I love the people and customers I meet every day,” she says. ◊
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The community-led Grow Perham group has developed one multi-unit apartment complex in Perham every year since 2008. Another 24-plex is set to open this year. SUBMITTED PHOTO
JOIN OUR TEAM Local developers construct new workforce housing so people who work here, can live here BY MARIE JOHNSON For Progress
I
t’s a simple fact: If employers want to grow their businesses, they need additional people to take on the extra workload. That means more people moving to town, and those people need places to live. If housing is not available, jobseekers will go elsewhere, stalling local employers’ hopes of expansion — even when an expansion would undoubtedly be profitable for their company — and stagnating the local economy. That’s a scenario no one wants to see happen in their community.
PAGE 24 | PROGRESS 2019
Dave Schornack, director of sales and business development at Arvig and a longtime real estate developer, remembers talking about Perham’s housing needs as early as 1979. Business growth in town was escalating at that time, and with it, the demand for more housing. That upward trend has never stopped. Thirty-five years later, in 2014, a housing study commissioned by the Perham City Council revealed that Perham was continuing “to experience job growth and economic expansion that have created the need for additional housing.”
The independent firm that completed the study recommended Perham add another 100 new rental units over the next five years, plus another 10 to 15 owner-occupancy units (i.e. condos and townhomes) per year, in order to meet their projected demand. The city’s on track to exceed that recommendation, at least in terms of rentals, but another housing study, this one published even more recently, in 2017 by the University of Minnesota Extension, concluded that Perham was going to continue to need further housing into the future. “Evidence from the Census Bureau and other sources points to a clear need for housing development in the community (of Perham) and reinforces employers’ concerns that housing is a long-term issue
affecting worker recruitment,” states the study’s author, Ryan Pesch, a community economics educator out of Moorhead. These kinds of academic assessments, along with years of local testimonials, have drawn statewide attention and earned Perham a reputation as “one of Minnesota’s most often used examples of the lack of workforce housing,” according to a Nov. 2017 Fargo Forum article. “Perham is sort of the little engine that could,” Minnesota Housing Commissioner Mary Tingerthal states in that article. “Jobs just keep coming.” At the same time, the community has also been heralded across the state as the ideal “poster child” for how best to address a workforce housing shortage. Over the years, city and business leaders have worked cooperatively to find solutions to Perham’s housing problem, partnering up and getting creative on incentive programs like rental assistance, down payment assistance, deferred loans, tax abatements and even free water for a year for homes built in newer subdivisions. “We’re always looking at creative ways... to create affordable housing,” says Perham City Manager Jonathan Smith. “We look at ways to help alleviate the pressures for developers who want to develop housing here — to alleviate the cost.” Smith explained that when developers can build apartment complexes for less, they can charge lower rents and still make a profit. But many of the cost-saving options available to developers, such as state grants, require income restrictions on at least a portion of the rentals the developer is creating. Those restrictions are so low that most two-income families don’t qualify and thus can’t live in those apartments. “It’s hard to get them into the affordable housing we’ve incentivized,” says Smith. “The cost to develop is so high, and then the money you can get to
offset that comes with strings, as far as who can qualify to live there. The state sets a pretty low standard as far as what the median income is… So there’s kind of a gap there, and we’re trying to come up with ways to fill that gap. It’s a pretty interesting dilemma, but it’s one that every city is facing right now.”
We’re wanting to get people here so they can work. We’re always looking at opportunities to work with people in town, as far as developers and homeowners. We try to help foster communication between the people looking, and the people that have. It’s an ever-evolving kind of issue. — JONATHAN SMITH, PERHAM CITY MANAGER
While the city of Perham does what it can to make the construction of new rental units affordable and attractive for developers, local employers go to extra
lengths to help their workers find and afford housing in town. Some employers chip in money from their own coffers to help their workers pay their rental deposits or a down payment on a home. A few years ago, KLN Family Brands even built its own dormitory-style apartment building to provide temporary housing to some of its workers. But the most extensive and effective solution to Perham’s housing shortage has been the community’s constant reinvestment in itself through the innovative efforts of Grow Perham. Birthed at a housing summit in 2007 under Schornack’s encouragement and leadership, this group of local business and community leaders agreed to take the risk, do the work, and make the commitment necessary to bring more housing to town. They became sudden investors, pulling money out of their own pockets to finance the design and construction of new apartment buildings. Schornack says they didn’t expect to make any money off the housing developments, and figured they’d be lucky if they broke even in the end. It was never about personal profit. “It hasn’t been a financial boom to anybody within the ownership group,” he says. “I think the biggest thing is the intangibles — the workforce has been able to be created, and that creates more activity for everybody else in town. These people need to eat, buy gas, etc… It’s been good for our town overall.” Grow Perham doesn’t rely on state subsidies or have income restrictions on their properties; the apartments are available at market rate. Pesch explains in his study that Grow Perham has leveraged equity from private investments to fund its projects, including about $3 million in private capital raised since its inception to cover more than $13 million in PROGRESS 2019 | PAGE 25
construction costs (as of the 2017 study). It has also benefited from a $620,000 grant through the state’s Workforce Housing Development Program in 2016, Tax Increment Financing from the city, and a tax abatement program. “As a testament to their success and ability to cash flow housing projects,” the study states, “the group’s most recent new development is moving forward without any public assistance.” By helping to draw attention and interest to Perham’s need for housing, Grow Perham’s efforts have likely inspired other outside and independent developers to invest in the community, as well. “Other organizations have also developed residential lots and singlefamily homes in the community to address the growing issue of workforce housing. It is possible Grow Perham’s
initiative to build multi-family homes has encouraged investment in these other types of housing,” the study asserts. Every new development helps, inching the community closer to meeting its housing goal. That goal is a moving
target in a growing town like Perham, though. The people trying to keep up are left feeling like they’re running circles around a race track, chasing a finishing line that just keeps jumping forward in front of them.
GROW PERHAM FAST FACTS ► Perham business owners chipped in $10,000 each at a housing summit in 2007, raising $600,000 in one day to finance workforce housing ► Since 2008, the group has developed one apartment building per year in Perham ► Each development was built at an average cost per unit of $72,000 ► Almost 400 people are housed in Grow Perham properties today ► Properties are always nearly 100% occupied ► 23 current members From the Greater Minnesota Housing Fund and information provided by David Schornack
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If it is a race, however, Perham’s runners have shown no signs of slowing down. Grow Perham’s first project, a 14unit apartment complex, opened in 2008 and one new development has opened every year since. Their most recent was a 24-plex, and another of that size is set to open this year. After that, there’s still room for three more 24-plexes by the group’s other properties near Shopko. Schornack says there are usually very few vacancies at their properties, and when there is an open apartment, it fills up fast. Most of the people renting Grow Perham apartments are all newcomers to town, relocating for work. “Between all of our apartments now, we’ve got almost 400 people living in them, and that’s 400 people who weren’t here 10 years ago,” he says. “I think it’s been a big boost to the community, as well as to our overall area… I think overall it’s been hugely successful.” The Greater Minnesota Housing Fund picked up on that success, writing and sharing an article in 2017 that applauded the people behind Grow Perham: “They
Between all of our apartments now, we’ve got almost 400 people living in them, and that’s 400 people who weren’t here 10 years ago. — DAVID SCHORNACK, GROW PERHAM HOUSING DEVELOPER
quickly recognized their own selfinterest, and saw the potential to be part of the solution.” Rentals have struck the right chord thus far, but Schornack sees single family housing as the next wave of development. He says he hopes to focus more on that with Grow Perham in the future. “As we try to attract a workforce, one of the first stages as people are starting out
is that they live in apartments until they acquire a down payment to buy a house,” he explains. “I think single-family housing is the next step.” There’s good reason to think so. While there’s still a strong demand for rentals in Perham, the city already has a high percentage of rental housing compared to other communities in Minnesota — 39 percent, compared to only 21 percent statewide, according to the 2017 American Community Survey. In addition, a large number of workers have moved to town in recent years, and many of them are more established now, ready to move out of their apartments and into a home of their own. That’s exactly what employers in town want: more longtime workers who are committed to, and contributing to, the Perham community. When people put down roots in town, it benefits everybody. ◆
HOUSING FAST FACTS New builds every year: Between 2010 and 2016, 69 single family homes and 218 apartments were developed in Perham, an average of 10 homes per year and 31 apartments per year. Homeowners make more: Perham has a higher median homeowner income than most other comparable cities, with owner-occupants earning an average of nearly $58,000. The median income of renters in Perham is much lower, at $22,135. Rental rates are average: Perham’s average rental rate, of about $580 per month, is middle-of-the-road compared to rentals in comparable cities. Rates have risen: Demand for rentals has driven rates to go up. Rents increased by 22 percent in Otter Tail County from 2000 to 2015, while renter income decreased during the same time period. Rental-to-home ratio is high: Perham’s rentals-to-single homes ratio is about 60/40, which is higher on the rental side PAGE 28 | PROGRESS 2019
than the standard ratio of 70/30. However, when the rural homes around Perham, including agricultural and lake homes, are taken into account, the ratio is closer to the standard. Fewer homes being built in town: Perham has seen a noticeable decline in construction of single family homes in recent years. Perham was getting 20 or more building permits for new single family homes every year prior to the recent recession. That plummeted to about 8-10 during the recession and in the years following. Just outside of town, however, it’s a different story. Since 2008: ► 598 new single family homes have been built within 15 miles of Perham. ► 686 new single family homes have been built within the Perham-Dent School District. Info compiled from various sources, including progressiveperham.com, a 2014 City of Perham Housing Study, a 2017 University of Minnesota Extension study, and information supplied by the Perham Economic Development Authority
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Gene Jahnke poses for a portrait in the store’s freezer.
PAGE 30 | PROGRESS 2019
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he door unlatches as Gene Jahnke, Frozen Foods Manager at Central Market, pries the massive freezer door back like a bank vault. A rush of cold air greets him as he steps through the draping plastic into the store’s inventory freezer. But instead of the cold, hard cash that’s hidden away inside a bank vault, Gene’s met with boxes full of frozen pizzas, TV dinners and ice cream. “Most of the time I’m working here in a T-shirt,” he says inside the freezer, where
temperatures hover around 20 degrees below zero. Gene took a circuitous path to his current position. He started working in groceries 22 years ago, after growing up in Deer Creek and working several odd jobs in Wadena. He’s been a dishwasher at a café and loaded trucks overnight at a produce warehouse, among other jobs. As Frozen Foods Manager, “most of my job is to keep the shelves full,” Gene says. He accomplishes this by purchasing products from suppliers three times per week, usually buying whatever the store can get a good deal on. Orders placed in the morning are delivered to the store that evening. On top of purchasing, Gene is responsible for making displays and invoicing. When it comes to the store’s best-selling frozen foods, Gene says ice cream is the hottest ticket in the summer, and in the winter it’s frozen pizza. ◊
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EVENING & WEEKEND SHIFTS AVAILABLE New effort underway to address daycare shortages BY MARIE JOHNSON For Progress
C
hildcare has been a headache in Perham for years. The community has far fewer available childcare slots than it needs, so working parents are forced to make hard choices about what to do with their kids while they’re out trying to make a living. There are childcare shortages all over the Lakes Area, with licensed evening, weekend and infant care nearly impossible to find. The frustrations that impacted families regularly face — needing to adjust their work schedules, cut back on hours, switch shifts around, take unplanned days off, etc. PAGE 32 | PROGRESS 2019
— extend to their employers, who must toe the line between accommodating the needs of those working parents while also meeting the demands of their business.
The cost of child care has caused me to quit positions before. — PARENT COMMENT ON A RECENT SURVEY ABOUT CHILDCARE IN PERHAM
Perham employers sometimes lose good workers, or see potential job candidates go elsewhere, due to the lack of childcare in the area. At Perham Health, for example, Human Resources Director Pat Ferguson says, “It is not uncommon for us to hire someone and then have them come back and say they just couldn’t get their daycare lined up, or even to have them start and then later it doesn’t work out because of daycare. Probably one out of 10 hires, that happens.” That’s just one of many examples in town. Local workforce authorities say childcare is a problem that every employer faces. The good news is, it’s a problem that’s being addressed. Childcare in Perham has been getting some extra attention lately © ANDERSPHOTO / ADOBE STOCK
from a fresh set of expert eyes. Perham was one of four communities across the region that were recently selected to work with the national nonprofit organization, First Children’s Finance, over the next two years to assess the city’s childcare needs and come up with creative ways to address shortcomings. Jessica Beyer, a business development manager for First Children’s Finance, has been meeting with a key group of Perham community leaders and childcare providers to gather input and feedback into the current childcare situation in Perham. Beyer conducted a “potential need analysis” in July, carefully gathering data to help quantify the reality of that situation. The results were revealing. Within a 30-mile radius of Perham, she found, there was a shortage of 1,137 childcare slots at the time of the analysis. There were 20 communities analyzed (every community that fell within 30 miles of Perham), and not a single one had a surplus of childcare. All were in the negative, except for Wolf Lake, which had a zero balance. Perham was short 24 slots, while New York Mills was short 172, Frazee 123, Vergas 26, Detroit Lakes 211, Dent 57, Ottertail 46, and so on. “The zip code analysis for Perham is interesting, because...usually at least one community will be in the positive,” Beyer says. “But on this analysis, none of the communities are in the positive.” Within that same 30-mile radius, there were 154 family-based childcare programs (in-home daycare or nonresidential faithbased programs), and 4 center-based childcare programs as of July. But judging by the shortages, that’s clearly not enough. Beyer and the community leaders she’s been working with qualified those data findings with a community survey about childcare. Sent out to working parents through local employers, the results were announced in December. Those results, too, were revealing.
Through the surveys, parents of young children were able to share their own personal accounts of what the childcare struggle is like for them. High numbers reported that while the available childcare in the area is of good quality, there’s simply not enough of it, and the cost is too high. Thirty-two percent of the 400 parents who responded to the survey said they regularly adjust their schedules to avoid using paid childcare, oftentimes working opposite shifts from their spouse so one watches the kids during the day, the other at night, their paths barely crossing.
I will not have another child because of the childcare issue. — PARENT COMMENT ON A RECENT SURVEY ABOUT CHILDCARE IN PERHAM
This is something Ferguson says they see a lot of at Perham Health, especially among the nursing staff. The healthcare organization has begun offering more 12hour nursing shifts, as those seem to be preferred by parents of young kids. The move has improved the retention rate among nurses there. “I think people with young children often prefer not to use daycare,” says Ferguson. “So if they’re working fewer days, they can patch together care more easily, because there is such a challenge.” The survey showed that another 32 percent of working parents don’t use paid childcare because they find it too expensive. Many parents who eschew traditional paid care rely instead on unlicensed care by family, friends and
neighbors or illegal unlicensed care. Nineteen percent of parents stay home with the kids themselves. Perham’s childcare shortage has led to work and family planning issues for the majority of survey respondents. Many admitted they’ve been tardy or absent from work due to a lack of childcare, 27 percent said they’ve had to quit a job or turn down employment, and 54 percent said they’ve opted to delay having another child, or decided not to have another child at all. Only 13 percent of respondents said they’ve had no issues due to childcare. First Children’s Finance’s analysis and survey have painted a clear picture of Perham’s childcare needs, and Beyer said the next step is for the community to work together on some creative solutions. First Children’s Finance can help offer ideas and insights based on what’s worked or not worked for other communities, but ultimately it’s up to Perham residents to figure out a plan that will work best for Perham. Other communities have turned to its local employers for help, Beyer says, or to the local faith community, or have looked at the possibility of leasing commercial space for one large, shared childcare center. First Children’s Finance helps communities think outside the box, and offers expertise on what might work financially. In Perham, there have recently been talks about using some space inside the former high school building for a childcare center, according to Emily Dreyer, who’s been in on those discussions. There were no concrete plans at the time this magazine went to press, but there was at least the possibility of a little relief there. “There’s potential for growth with reuse of the old school,” says Beyer. “The school is vacant and childcare may be one way to fill it. They (community leaders) have to figure out what they want to do, then I’ll be back to help think through some modeling or some business plans.” PROGRESS 2019 | PAGE 33
THE CHILDCARE SITUATION, IN A NUTSHELL
If our community makes this concern a priority, they have a real chance at making a positive difference in the daily lives of their residents and employees.
► There’s a total shortage of 1,137 childcare slots within a 30-mile radius of Perham
— COMMENT ON A RECENT SURVEY ABOUT CHILDCARE IN PERHAM
► 154 family childcare providers were active in the area at the time of the July 2018 survey
► That gap today is supported by unlicensed care by family, friends and neighbors, unemployment or underemployment of the parents, shift alignment, illegal unlicensed care and out of area care ► 27 percent of parents who responded to a recent community survey about childcare said they withdrew from the workforce or turned down employment due to childcare issues ► Childcare has led to work issues for respondents, including: tardiness (13%), inability to work overtime (20%), absences (22%), an inability to work a different shift (16%) ► 54 percent said the childcare issue has had an impact on their family planning, causing them to delay or not have another child
► 65 percent of respondents were driving 10 miles or less for daycare; 31 percent were driving 11 to 30 miles, and 4 percent were driving more than 30 miles
In certain “pod models” that Beyer has seen in other parts of the state, public and private partnerships have helped create a childcare center in one available space, with the program overseen by something like a Community Action Agency. In another model, a school district took over a childcare center. And in other cases, companies have created employer-sponsored childcare as an employee benefit. That last option is one that Fred Sailer, a recruiter at KLN, believes might happen in Perham, at least at some of the bigger companies that require shift work. “Shifts make daycare that much more challenging,” Sailer says. “We can’t approach daycare like we have in the past… In the end, I really do believe daycare will almost become like a benefit, where you almost, to some degree, as an incentive, subsidize that for your employees. I think there’s a workable solution there.” Whatever ideas from today end up becoming the realities of tomorrow, Beyer believes Perham is on the right track with its current efforts: “It’s amazing what small communities can pull together to move forward,” she says. ◆ PAGE 34 | PROGRESS 2019
► 67 percent of people surveyed said the availability of childcare in the area is poor or very poor; only 3 percent said it was good or very good ► Fewer programs here are star rated (an indicator of quality) than the state average (12% compared to 17%) ► Most people ranked the quality of childcare here as “fair” or “good” ► People who have not enrolled in paid childcare give the following reasons for that decision: 32% were adjusting their schedules to make it work without; 32% can’t afford it; 19% chose to stay at home; 16% couldn’t find any other appropriate option ► Childcare market rates are within the 75th percentile of care around Minnesota ► Providers say it’s challenging work due to rules and regulations, hard to find and afford staff, low pay and no benefits, long hours with no flexibility, high operating cost and high start up cost
The cost of running childcare might not be worth it to someone who is considering it as an employment option… — LOCAL CHILDCARE PROVIDER COMMENT ON THE SURVEY
Highlights from the Potential Need Analysis and Perham Survey conducted by First Children’s Finance in 2018
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Serving Otter Tail & Wadena Counties
From The Field...To The Table
94 Miller Street New York Mills, MN
105 9th Ave NE Perham Office 218-346-7487
25
YEARS OF SERVICE
218.385.3562 Fax: 218.385.3237 www.centennial-realty.com 001829425r1
ALL SEASONS HEATING & AIR CONDITIONING LLC
AQUA LAWN, INC.
218-367-3300 www.allseasonsottertail.com
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38 years in the heating business
216 West Main Street Ottertail, MN 56571
YEARS OF SERVICE
• 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 www.aqualawn.net 001829477r1
24
YEARS OF SERVICE
Foster & Lora Strand, Owners BRP Johnson Evinrude Mercury MerCruiser
Fort Thunder Road Perham 218-346-4875
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28
43767 Fort Thunder Road Perham, MN 56573 Phone: 218-346-3773 www.fostersmarineservice.com
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28
YEARS OF SERVICE
YEARS OF SERVICE
CULTURAL CENTER IN NEW YORK MILLS
BHH PARTNERS PLANNERS/ ARCHITECTS
24 North Main Avenue New York Mills
Anthony J. Stoll, AIA, Principal Architect Minnesota 218-346-4505 www.bhhpartners.com
YEARS OF SERVICE
FOSTER’S MARINE SERVICE LLC
PERHAM AUTO REPAIR
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27
YEARS OF SERVICE
22
218-385-3339 www.kulcher.org
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21
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PROGRESS 2019 | PAGE 35
PEOPLE @ WORK I KNOW HOW TO MAKE BEER — LOTS OF IT.
Pete Waldon:
Brewmaster at Disgruntled BY CARTER JONES For Progress
Pete Waldon was recruited for his role at Disgruntled in January 2018. Here, he holds an instrument that shows how fermented a beer has become.
PAGE 36 | PROGRESS 2019
P
ete Waldon, the brewmaster at Disgruntled Brewing in Perham, has roots in craft brewing that predate the recent craft beer renaissance. A geologist by trade, he was working in the oil business in Colorado when a chance encounter opened his eyes to the art and science of brewing craft beer. He got the bug for home brewing and then relocated his young family to New York Mills, Minn., to start Glacial Lakes Brewery. Pete started the business from scratch in 1996, and at that time Glacial Lakes was
just the sixth craft brewery in the state. All sales had to go through a distributor back then, and after “suffering through it” until 2002, Pete closed up shop and sold his equipment. He was recruited to be the new brewmaster at Disgruntled in January 2018. Brewing beer is like being a baker, Pete says: “If you have five different bakers and they all have the same recipe, you’re going to get five types of bread out of it… You have all these ingredients you can get and you have to look at them and know what they’re going to give you. I usually get it pretty good.” Pete starts every brew with filtered water that has been stripped of almost all minerals. Then he adds various salts such as calcium chloride, gypsum and pickling salt to mimic the chemical composition of different waters from all over the world. “Water is the fundamental part of making beer,” he says. “Every beer has different water — every beer.” “When you’re making different styles of beer you have to know what each little thing gives you, then you work hard to make it,” he adds. “You put it in there and you wait for the magic to happen. When it’s good it’s like, ‘Oh, nailed that one!’” ◊
DISTRICT 8A STATE REPRESENTATIVE
BUD NORNES OUR ADVOCATE E-MAIL: REP.BUD.NORNES@HOUSE.MN WWW.HOUSE.LEG.STATE.MN.US
Stephanie Hoyhtya, Agent
Jon Rastedt, Agent
Stephen Sweere, Agent
218.385.3562
New York Mills Since 1916
Fax: 218.385.3237
No matter where you’re at on your life’s journey, we’re there with you....every step of the way!
centennialrealty@gmail.com
PHONE NUMBERS: 218-385-2300 TELEPHONE 218-385-9303 FAX
centennial-realty.com
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BUSINESS HOURS LOBBY: 8:30am - 4:30pm M-F
Chelsea Wegscheid, Agent
94 MILLER STREET NEW YORK MILLS, MN
Farmers & Merchants State Bank
ADDRESS: 11 NORTH WALKER P O BOX 278 NEW YORK MILLS, MN 56567
Debra Porkkonen, Associate broker
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AT THE STATE CAPITAL
Bonnie Dykhoff, Broker/Owner
WALKUP & DRIVEUP: 8am - 5pm M-F 8:30 - 11:30 am SAT
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New York Mills: 218-385-3989 Verndale: 218-445-5153 Motley: 218-352-6622
Servicing Central Minnesota
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• HOME • AUTO • LIFE • COMMERCIAL
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PROGRESS 2019 | PAGE 37
PEOPLE @ WORK IT’S GREAT TO SEE THE DIFFERENCE ON THE CLIENT’S FACE.
Karissa Yates: Hair Stylist BY CARTER JONES For Progress
Karissa Yates performs a facial on a client at Twisted Root Salon.
PAGE 38 | PROGRESS 2019
K
arissa Yates may be a fresh face among the other stylists at Twisted Root Salon and Spa in Perham, but she’s not new to the community — or to the profession. After growing up near Fargo, Karissa and her family moved to Perham in 2011. She became the salon’s newest hire three months ago, after doing a bunch of odd jobs around town. She worked as a hair stylist at a few different places before Twisted Root, including a barbershop and full service salon.
“She’s got a lot of experience under her belt,” says Twisted Root owner Rachel Wiser. Karissa says she most enjoys the open and flexible schedule that hairdressing provides, a perk she especially appreciates as a mom of young kids. She’s able to work nontraditional hours to meet her own needs and the needs of her clients, sometimes staying at the salon until 9 or 10 p.m. The job also steers her away from a fixed routine: every day and every client is different, she says, and she likes the unpredictability of that. She enjoys meeting new people in the community, and building relationships with clients. Styling hair also allows Karissa to express her creativity while keeping up with trends. In addition to hair, Karissa recently started offering a variety of skincare services, too, such as facials. “Skincare is a relaxing and fun change of pace,” she says. “It’s great to see the difference on the client’s face and educate them about our whole product line.” ◊
29
YEARS OF SERVICE
SUPER 8 MOTEL & RV CAMPGROUND 106 Jake Street SE Perham
YEARS OF SERVICE
JEFFERSON HEARING AID CENTER
30
LAKE COUNTRY INSURANCE
223 North Jefferson Wadena
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(218) 631-4966 1 (800) 631-4946
31
YEARS OF SERVICE
AUTO VALUE and WESTSIDE SERVICES Locally owned and operated 659 W. Main St. Perham, MN 218-346-3448 001679537r1
31
208 West Main Street Ottertail • 218-367-2265 www.hilltoplbr.com
Cabinets • Countertops Flooring • Hardware
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Solid Waste: (218) 998-4898 Recycling Center: (218) 736-4400 Household Hazardous Waste Facility: (218) 736-2161 001829308r1
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BUILDING TRUST Your Vision. Our Team.
Building for Perham since 1956
St. Henry’s Church
YEARS OF SERVICE
OTTER TAIL COUNTY RECYCLING
HILLTOP LUMBER
New York Mills: 385-3989 Verndale: 445-5153 Motley: 352-6622
218-346-2195 www.HCI-MN.com joe@hci-mn.com
Mark’s Fleet Supply True Value
YEARS OF SERVICE
PO Box A New York Mills, MN
Tell us about your next project!
Kenny’s Candies
31
Beautiful New Showroom Marvin Windows “Idea House” Display
Washington Square Mall 808 Washington St. Suite 15A
218-346-7888
YEARS OF SERVICE
Nest
32
YEARS OF SERVICE
STEVE’S SANITATION, INC. Commercial & Residential Garbage & Roll-Off Service 140 6th Avenue NE Perham
United Community Bank
32
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29
YEARS OF SERVICE
AT THE WINDOW Commercial & Residential
Window Coverings Specialist 218-298-4377
atthewindowmn.com
atthewindowmn@gmail.com
Hunter Douglas Display located at 138 W. Main, St., Perham
218-346-4834 001829488r1
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PROGRESS 2019 | PAGE 39
EXCELLENT BENEFITS PACKAGE Employers, city deploy innovative incentives to attract and retain workers BY MARIE JOHNSON For Progress
P
erham’s dangling some pretty creative carrots to help address its worker shortage crunch. From employer-provided incentives and retainment efforts to city-offered rental assistance, the community is exploring every possible angle to lure in and retain new recruits. Like other communities all over the Midwest and beyond, Perham is challenged to find and keep good workers to fill open jobs, especially in factory and entry-level positions. To take on this challenge, local business leaders and corporate heads regularly come together to talk about workforce issues they’re experiencing, and PAGE 40 | PROGRESS 2019
share ideas about how to address those issues. Known as the Jobs Committee, this fluid group of about 10 to 12 individuals — human resources officials, department heads, business owners and others — meets semi-monthly. Fred Sailer, a recruiter at KLN Family Brands and Jobs Committee member, said the committee not only represents many of the different sectors and industries within the community, but also works in conjunction with the Perham Economic Development Authority and other city leaders. This way, every angle of the workforce situation in town is covered. “We are all better when we mix the different disciplines,” Sailer says. “Maybe
we become better as a result of working together.” A few years ago, the Jobs Committee kickstarted a jobs-related marketing campaign, advertising Perham as a great place to live and work on billboards and other mediums around the region. They’ve also talked about the possibilities for public transportation, and daycare issues. They communicate with each other to help find employment for “the trailing spouse” — an insider term for the husband or wife of a potential recruit. More recently, they’ve been focusing on retainment. In hopes of decreasing employee turnover, they’ve been coordinating some shared training exercises so that existing employees can develop the skills necessary to move up the company ladder. The committee also regularly discusses the different benefits their companies offer — what those benefits are, and which ones © ANDERSPHOTO / ADOBE STOCK
tend to work best. Those include not just financial benefits, but also benefits that help improve overall quality of life. Profit sharing has proven popular at KLN, for example, as has the switch to more 12hour nursing shifts at Perham Health. Pat Ferguson, a Jobs Committee member and the human resources director at Perham Health, says the issues discussed by the committee affect each individual business involved, but also extend far beyond the inner workings of any one entity in town. “They’re really community issues,” she says. “It’s good for this community for Perham Health, KLN, Bongards (etc.)... to be fully staffed. The committee has provided a forum for us to strengthen that common goal of strengthening the workforce...and to continue to grow the skills of our local workforce. It’s just good for us to be aware of what each other is doing.” Perham’s Economic Development Director, Chuck Johnson, gives a lot of credit to the efforts put forth by the Jobs Committee and, by extension, the community in general: “Local companies are doing a lot of hands-on stuff,” he says. “They are willing to be part of the solution. The evidence of that is in projects taking place.” Those projects include a number of big-ticket attractions and amenities that ultimately help draw more people — and more workers — to town. Perham has built both a state-of-the-art new hospital and cutting-edge high school in recent years, and will soon be starting a major expansion and improvement project at the community center. Projects like that, Johnson says, “are a really big deal” if you want to draw new people in as a “world-class small town.” For its part, the city office offers a number of financial incentives to newcomers, including rental assistance to help cover costly security deposits,
We’re now spending as much time on retention as we are on recruitment. — PAT FERGUSON, HUMAN RESOURCES DIRECTOR AT PERHAM HEALTH
and housing assistance programs that help hopeful homeowners come up with down payments. Perham City Manager Jonathan Smith says, “We’re always looking at different creative ways, grants and such,” to help people relocate to, and stay in, Perham. There’s a joint venture with United Community Bank, for example, that offers “lower interest home improvement loans” with the idea that homebuyers can purchase and improve some of the older
housing stock in town “and create more affordable housing.” ProgressivePerham.com, a website created several years ago by the Perham Economic Development Authority to help promote the town and advertise job openings, lists a number of available services and attractions that Perham offers, any one of which might cause someone to decide that they want to relocate here. In addition to the amenities already mentioned, Perham has two local bike trails, a historic village, three traditional parks and a skateboard park, a municipal airport, 27-hole golf course, Boys & Girls Club and many other charitable clubs and churches. That’s all in addition to the town’s multiple restaurants, pubs and specialty shops, as well as the Lakes Area’s abundant outdoor recreational opportunities. “We’ve got so many assets in our area that help us, with all the lakes and being so close to Fargo-Moorhead,” said Sailer. “It’s not a bad place to recruit.”
CITY-OFFERED HOUSING INCENTIVES Perham’s Economic Development Authority and Housing and Redevelopment Authority offer a number of relocation incentives and assistance programs: Rental assistance: The Security Deposit Loan Program provides low-interest loans for security deposits for income-eligible applicants in Perham. The loans are available at 2% interest, up to $750, and can be repaid over the course of a year. Down payment assistance programs: These programs are designed to provide gap financing to those who want to build or purchase a home in Perham. A qualified homebuyer may be eligible for up to a $13,000 financing package. Financing is utilized for closing costs and to lower the purchase price of the home. Eligibility requirements apply. Tax Increment Financing: Through the use of TIF, the costs of special assessments for sewer, water and street improvements are reduced for qualified buyers (an approximately $15,000 value). Perham offers residential TIF to income-qualified homebuyers who own and live in certain subdivisions. Other incentives: Free boulevard trees for newly constructed homes in town, and free water usage for one year to promote lawn establishment. From progressiveperham.com. For more information, call the Perham Housing and Redevelopment Authority at 218-346-4582.
PROGRESS 2019 | PAGE 41
INCENTIVES CASE STUDY: KLN FAMILY BRANDS
As one of Perham’s biggest employers, KLN Family Brands has historically been one of the hardest-hit when it comes to the community’s worker shortage. The company has a long history of battling the issue in generous and creative ways, however, and within the past couple of years, the struggle to find workers has “leveled out,” according to Fred Sailer, a recruiter for the company. He says the reasons for that are many, including aggressive regional recruiting, competitive pay and benefits packages, profit sharing, an in-house home loan program, the introduction of more automation on the factory floor, a growing interest in the trade professions among youth, a tuition reimbursement program, and a strong focus on retainment. “It’s not just one thing, it’s really a number of things,” he says. Just two years ago, KLN was in the midst of an “emergency situation” in Perham, where there were about 350
unfilled jobs within the city. Most of those openings were entry-level factory positions, which KLN has plenty of at its Kenny’s Candy and Tuffy’s Pet Foods plants.
It’s a great time to be looking for work. — FRED SAILER, KLN RECRUITER AND JOBS COMMITTEE MEMBER
Today, while other companies are still coping with heavy shortages, “We’ve been able to fill our jobs,” Sailer says. “Our great need for entry-level people...has waned.” Keeping health insurance costs down is a big factor in that (individuals who meet certain health markers get free coverage) as is a no-cost, no-appointmentneeded clinic service available only to 001829426r1
The area’s home to
effortless fashion
Mon.-Sat. 10 a.m.-5:30 p.m. 148 1st Ave. South Perham, MN 218.346.4180 Shop online at dotandminnies.com PAGE 42 | PROGRESS 2019
KLN workers. Most basic prescription medications are also available at no cost. In addition, the company offers a generous profit-sharing incentive that Sailer says is “a good thing for people. It’s a motivator. People really feel ownership of the company, and we feel it’s important.” Typically, the company’s profit-sharing pays out an additional $4-6 an hour. There’s also a company-sponsored program that offers a forgivable housing loan of up to $10,000 for employees who have worked at KLN for at least three years. When coupled with other housing assistance funds available from the city, the total grant grows to $13,000. Increased automation at Tuffy’s has also helped the company’s employment situation, as it’s decreased the number of workers needed there. “The new production facility opened there four years ago,” says Sailer. “It’s pretty high tech and it’s made a difference, CONTINUED ON PAGE 46
37
39
YEARS OF SERVICE
THRIFTY WHITE PHARMACY
SCHMITZ BODY PAINT & REPAIR
Putting excellence on the road 211 Market Drive, Perham Inside Dean’s Country Market
830 W Main St Perham, MN 56573 001825072r1
218-346-4840
40
YEARS OF SERVICE
YEARS OF SERVICE
SOMEPLACE SAFE 115 5th St. NE Perham, MN
309 So. Jefferson Ave. Wadena, MN Parenting Time Center 218-298-1501 Someplace Safe 24hr Crisis Line 800-974-3359 www.someplacesafe.info
(218) 346-3211 sbpr@eot.com
40
YEARS OF SERVICE
NADINE’S LADIES FASHIONS 145 West Main Perham
218-346-2615
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YOUR HOMETOWN CONTRACTOR GET YOUR FREE CONSU LT TODAY!
START TO FINISH: FROM IDEA, TO PLAN, TO FINAL SOLUTION Trust our 28 years of experience to handle your project according to your needs and preferences. Our superior workmanship helps you to complete your project. You can depend on us to keep your costs down.
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Licensed & Insured #BC637708 001817851r1
43
YEARS OF SERVICE
RAE’S SHOES 132 West Main Street Perham
45
YEARS OF SERVICE
HAMANN DENTISTRY
Conveniently located downtown 200 1st Ave. South Perham
45
YEARS OF SERVICE
KEN TERVOLA CONSTRUCTION Building Your Dreams #BC005441 New York Mills
001829431r1
001829422r1
YEARS OF SERVICE
HUBER ELECTRIC Electrical repairs, electrical upgrades, electrical services
Our reputation is based on service, safety, and quality, regardless of how large or small the job.
218-385-2862
218-346-4775 www.hamannfamilydentistry.com
218-346-2605
45
218-346-3916 huberelectricco.com
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PROGRESS 2019 | PAGE 43
PEOPLE @ WORK EVERY TIME THE PHONE RINGS, YOUR DAY COULD CHANGE INSTANTLY.
Chad Bormann:
Architect at BHH BY CARTER JONES For Progress
Chad Bormann reviews a building plan in his office at BHH Partners.
PAGE 44 | PROGRESS 2019
P
erham native Chad Bormann always wanted to be an architect. That dream became a reality when he was offered a job at BHH Partners while he was still in college. Since starting full-time at BHH in 2002, Chad has worked his way up from a CAD technician (Computer-Aided Design) to job captain, project manager and now architectural graduate. In his current role, Chad’s job takes him from the drawing board all the way through
the grand opening on some of BHH’s biggest commercial projects — including the recently opened Perham High School. “When somebody walks in, they might not know anything that they want,” he says. “I take it from there all the way through to design, bidding and construction.” When he gets to the office at around 7 a.m. in the mornings, Chad first checks his email inbox to see if there are any fires from the night before that need to be put out. After that, his schedule varies widely. Depending on the time of year, he might have meetings all day, or he might bounce around to different job sites. “Every time the phone rings, your day could change instantly,” he says. “Depending on what that phone call is, or what somebody discovered, or somebody hit in the ground.” Chad literally has his hand in Perham’s growth and progress. “You’re proud of it,” he says of local construction projects. “Not to say you don’t put the same effort into every project, but you put a lot more free time into home because
BILL INGEBRIGTSEN MN STATE SENATOR
V Chair of the Environmental/ Natural Resources Finance Committee V Vice-Chair of the Senate Finance Committee V Member of the Senate Capital Investment Committee
Please contact me with your legislative issues. 651-297-8063 Paid for by Ingebrigtsen for Senate. P.O. Box 1325, Alexandria, MN 56308
L E FEE E! COM FERENC DIF THE
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everybody you know is looking at it… Like the school. My kids are going to go there so you want it to be right, which is kind of cool.” Chad attributes his ability to balance each project’s various moving parts to his evenkeeled demeanor. “I’m a good listener, but I don’t overreact,” he says. “You’ve got to keep a level head from start to finish, because it’s pretty easy to get swayed one way or the other.” ◊
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PROGRESS 2019 | PAGE 45
CONTINUED FROM PAGE 42
with lots of automation and robotics… It’s made the jobs for people who know how to work with the equipment ‘better’ jobs. So there might be fewer jobs because of automation, but the jobs there are, are better.” Perhaps the biggest thing KLN has done to address its worker shortage is shift its focus toward retainment. Sailer says the company is investing more time and resources into its existing workforce, so that the people they already have, have good reasons to stay. In the last couple of years, KLN has been offering new internal trainings and staff development opportunities, sometimes utilizing M-State and other outside resources for these educational efforts. It’s a jobseekers’ market right now, Sailer says, and that means workers are less afraid to job-hop if they find a position that pays more — even only pennies more. But employees who feel valued and have the potential to grow their careers within the company are more likely to stick around. “We’re putting more effort into retaining and retraining our people,” Sailer says. “When you have a lot of turnover, it gets costly.” At the same time, recruitment is still actively ongoing. Sailer continues to hit up regional job fairs, and travels to tech school campuses, to find and entice potential new workers — tactics that he feels have helped ease KLN’s worker shortage in recent years. “Our need isn’t as great as it once was, but we still want to keep our pulse on those technical fields, and we want to keep up on those relationships with people,” he says. “It’s not about needing huge numbers, it’s about finding people for key positions.” ◆
Visit us for all your home improvement projects • • • •
Plumbing Electrical Paint & Supplies Lighting
• • • •
Lawn & Garden Tools Rental Department Farm Supplies
• Animal Health • Pet Supplies • And Many Other Homeowner Projects
945 Market Street • Perham 218-346-6275
www.truevalue.com/marksfleetsupply www.marksfleetsupply.com O P E N S E V E N D AY S A W E E K
Celebrating 50 years of service to the Perham and surrounding areas. We carry the best lines, to keep you best dressed, including big & tall.
Stop by the store for an
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MONDAY-SATURDAY 9AM-5:30PM 137 West Main • Perham, MN • 346-5575 PAGE 46 | PROGRESS 2019
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Richter’s Men’s Wear
Local companies are doing a lot of hands-on stuff… They are willing to be part of the solution. — CHUCK JOHNSON, PERHAM ECONOMIC DEVELOPMENT DIRECTOR
46
50
YEARS OF SERVICE
SHEARER’S SNACKS
YEARS OF SERVICE
Perham
GARY HONER SAW & TOOL
Perham, MN 56573
TROY-BILT DEALER
400 Lakeside Dr
Small Engine Repair
218-346-7000
34684 State Hwy 108 Dent
www.shearers.com
50
YEARS OF SERVICE
YEARS OF SERVICE
HEMMELGARN BUILDERS INC.
RICHTER’S MENS WEAR
License #BC003628
Big & Tall Tuxedo Rental
1016 First Ave. N. Perham
137 W. Main Perham
218-758-2182
52
218-346-2377
218-346-5575
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Live Here. Do Business Here. progressiveperham.com The Most Jobs.
Help for Businesses.
Pound for pound, Perham offers more jobs than many communities similar or larger in size, and offers a great quality of lakeside life with big city amenities.
Local tax incentives and business services can help you achieve dreams of business ownership in a town with a great quality of life and midwestern work ethic.
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“This is where so many people choose to vacation and I am lucky enough to live where I also vacation.” – Sue Huebsch Owner of Wild Goose The City of Perham • 218-346-9798 • www.cityofperham.com
54
55
YEARS OF SERVICE
HISTORY, ARTS & CULTURAL ASSOCIATION
shirley@itowmuseum.org
55
YEARS OF SERVICE
KLN FAMILY BRANDS
MARLO MOTORS
Tuffy’s • Kenny’s
1/4 mile south of Hwy 10 on Hwy 78 Perham
Perham
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HACA now includes In Their Own Words Veterans Museum, History Museum EOT and Pioneer Village
YEARS OF SERVICE
www.klnfamilybrands.com 001825623r1
Marlo & Paul Sonnenberg
218-346-5888 visit us @ www.marlomotors.com 001829486r1
57
YEARS OF SERVICE
LYNN THOMPSON INSURANCE Life, Health, Group, Medicare, Long Term Care, Disability 32025 Finch Circle Dent 218-758-3333 001829485r1
PROGRESS 2019 | PAGE 47
Happy Snacking! See us for all your vending needs. FULL SERVICE VENDING COFFEE SERVICES • MICRO-MARKETS
105 6th Ave. SE, Perham • 346-2985 • 1-877-929-2100 snacksplusvending@gmail.com 001817791r1
A trusted name for 99 years! 900 W. Main • Perham, MN
Greg Schmitz
Tim Schmitz
Gary Kurtz
SEE OUR TOTAL INVENTORY AT
www.schmitzmotor.com
218-346-3900 • 866-964-3906 PAGE 48 | PROGRESS 2019
63
YEARS OF SERVICE
HAMMERS CONSTRUCTION
Design/Build Commercial Building Contractor 44434 Harvest Avenue Perham 218-346-2195 www.hci-mn.com
64
YEARS OF SERVICE
ESSER PLUMBING AND HEATING 542 West Main Street Perham 877-882-4822 www.EsserPlumbingandHeating.com
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68
YEARS OF SERVICE
ARVIG
YEARS OF SERVICE
BREMER 801 Market St.
Internet, Television, Phone, Security, Computer Repair
Perham
218-346-1300
24-Hour Banking 1-800-908-BANK
888-992-7844 arvig.com
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73
bremer.com
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Serving the lakes area for over 25 years. PLANNERS / ARCHITECTS
78
YEARS OF SERVICE
WINKELS CARPET CENTER Richard Winkels, Owner 145 2nd Avenue S.E. Perham
86
YEARS OF SERVICE
HANSON’S PLUMBING & HEATING
Service…The Way It Should Be Perham: 346-2422 Vergas: 342-2422
218-346-2924
001829497r1
800-553-WARM hansonsheating.com
001824438r1
93
YEARS OF SERVICE
KARVONEN FUNERAL AND CREMATION SERVICES
Family owned and operated for three generations Greg & Suzi Karvonen New York Mills 218-385-2345 • 218-346-8536 www.karvonenandsonfuneralhome.com
96
YEARS OF SERVICE
VAUGHN AUTO AND MARINE CO. Used Cars & Trucks Lund Boats Mercury Motors New York Mills 218-385-2855
001825091r1
PROGRESS 2019 | PAGE 49
PEOPLE @ WORK ONCE YOU’RE ON THE ROUTE LONG ENOUGH, YOU GET TO KNOW EVERYONE.
arm with a joystick. That arm reaches out from the side of the truck to grab garbage bins, and then hoists and empties them into the hopper. “Surprisingly, driving on the right side was the easiest part,” Curt says of the truck’s learning curve. “It took me six months to get a handle on things until it was running smoothly.” While the side loader means he can make an additional 100 to 200 stops in a day than with a more traditional truck, he says he gets less exercise now that he’s always sitting in the cab. Curt hits the road at 6 a.m. every morning and then traverses more than 100 miles in a day. His route makes anywhere from 300 to 500 stops between Detroit Lakes and Perham. Curt says his favorite part of the job is interacting with people — and their dogs. He keeps a big bag of dog treats within arm’s reach and keeps his window down on nice days. “Once you’re on the route long enough, you get to know everyone,” he says. When he’s not at work, Curt likes to spend time with his family and go ice fishing: “Whatever gets me off the road,” he laughs. ◊
Curt Palubicki: Trash Collector BY CARTER JONES For Progress
Curt Palubicki drives a garbage truck for Steve’s Sanitation. His route brings him to as many as 500 houses between Perham and Detroit Lakes each day.
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urt Palubicki followed in his father’s footsteps when he took a job with Steve’s Sanitation 14 years ago. “My dad has worked here forever, so he roped me into it,” Curt says. As a kid, he would spend summer days hanging off the back of his dad’s garbage truck. As an adult, he’s a full-time garbage truck driver himself. Curt has driven an automated side loader for the last two years, which allows him to stay inside the truck cab, controlling a robotic
99
YEARS OF SERVICE
SCHMITZ MOTOR COMPANY, INC. Serving the area since 1920 900 West Main Street Perham
218-346-3900 www.schmitzmotor.com
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117
YEARS OF SERVICE
PERHAM HEALTH
1000 Coney Street W, Perham
218-347-4500 www.perhamhealth.org
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103
YEARS OF SERVICE
FARMERS & MERCHANTS STATE BANK AND INSURANCE AGENCY 11 North Walker New York Mills
218-385-2300 www.FMBankNYM.com
107
YEARS OF SERVICE
YEARS OF SERVICE
PERHAM HIGH SCHOOL
progressive curriculum + proven results = student success Perham
218-346-4501 www.perham.k12.mn.us
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YEARS OF SERVICE
UNITED COMMUNITY BANK
OTTER TAIL POWER COMPANY
301 West Main St., Perham 218-346-5700
www.otpco.com
COMMUNITY MINDED JUST LIKE YOU
1-800-257-4044
www.ucbankmn.com 001832571r1
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110
138
YEARS OF SERVICE
CITY OF PERHAM City Offices: 125 2nd Ave N.E. Perham
218-346-4455 www.cityofperham.com
138
YEARS OF SERVICE
SCHOENEBERGER FUNERAL & CREMATION SERVICE Steve Sheets, Local Owner and Director Hans Larson, Funeral Director 100 Jake Street, Perham (218) 346-5175 www.schoenebergerfh.com
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PROGRESS 2019 | PAGE 51
PEOPLE @ WORK YOU HAVE TO BE MOTIVATED TO DO THIS.
Joel Moen:
Inventory Controller at Tuffy’s BY CARTER JONES For Progress
Joel Moen poses for a portrait in the Tuffy’s manufacturing plant. He is responsible for keeping the company’s pet food ingredients in order. SUBMITTED PHOTO
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s an Inventory Controller at Tuffy’s Pet Foods, Joel Moen is an important cog in a large machine, helping the company churn out its wide variety of dog and cat foods, night and day. “In a nutshell, inventory control is monitoring incoming ingredients all the way through the plant to outgoing finished goods,” Joel says. But there’s a lot more to it than just the nutshell. For an outsider, it’s hard to comprehend the scale of material goods Joel
is responsible for during the pet food production cycle. Raw ingredients such as grains, vitamins, meat and food coloring come off semitrailers and are stored before being processed, bagged and sent back out the door. Along the way, these ingredients and finished Tuffy’s products are stored in more than seven sprawling warehouses. Joel is responsible for all those products and more, as tens of thousands of pallets, rolls of shrink wrap, cardboard boxes and unused bags must be accounted for, as well. Once he clocks in to work at 6 a.m., he is on the factory floor, bouncing between his computer, checking inventory and correcting any issues that arise. Joel grew up in Fergus Falls and moved to Perham 20 years ago. After working in the construction industry for 35 years, he started at Tuffy’s in 2010. He’s been in his current position since May. He says the best part of his job is the daily challenge it presents: “It’s like detective work, figuring out what caused an issue and where the hang-up is.” “You have to be motivated to do this,” he adds. “We have to just go out and do our job without supervision. Motivation is the biggest thing.” ◊
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YEARS CONGRATULATIONS TO OUR THREE RETIREES WITH MANY YEARS OF SERVICE: MARY SCHUMACHER 40+ YEARS GEORGIA ADAMCZYK 40+ YEARS AND VI VON RUDEN - 40+ YEARS
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PROGRESS 2019 | PAGE 53
PEOPLE @ WORK I’VE GOT REALLY GOOD PEOPLE THAT LET ME FOCUS ON THE BIGGER PICTURE.
Jim moved his family to Perham from the FargoMoorhead area 21 years ago to work as the Emergency Medical Services Director at the hospital here. He then became an Information Technology Director before taking his current role three years ago. Jim’s day begins before he even gets to the office in the morning, as he logs into the system at 5:30 a.m. to ensure everything is up and running. After arriving at Perham Health (before 7 a.m. most days), he leads a maintenance staff meeting to go over that day’s agenda. “A lot of my days are spent dealing with any preventative maintenance issues that may come up, as well as reactive,” Jim says. “It’s going to meetings or checking on facilities and monitoring software.” Even something as mundane as installing a shelf needs Jim’s approval. “While it sounds simple, we need to think about what material it (the shelf) is made out of, depending on infection control, what type of building and where it’s located,” he says. Jim says he’s successful because of the people he works with: “I’ve got really good people that let me focus on the bigger picture. Most of my job is the big picture and the global operations. If you have good people focusing on the little things, that allows me to step back.” ◊
Jim Rieber: Director of Information
Systems and Facility Management at Perham Health
BY CARTER JONES For Progress
Jim Reiber checks on the boilers in the Perham Health building.
PAGE 54 | PROGRESS 2019
J
im Rieber’s office is tucked away at the end of a long hallway in the Perham Health building. His desk is crammed with computer monitors and binders outlining state and federal codes, while his walls are plastered with computer network maps. As the Director of Information Systems and Facility Management, Jim is tasked with overseeing all of the technology within the Perham Health system, plus building management and security systems. He supervises more than 40 people.
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With the rise and need of cremation in our area, Greg and Suzi have added a crematory on-site at their funeral home. Karvonen Funeral & Cremation Service is the only funeral home on State Hwy #10 from St. Cloud to Fargo complete with an on-site crematory. When a family chooses cremation for their loved one at Karvonen Funeral & Cremation Service, we have a special room and we encourage families to have a final viewing before the cremation begins. Greg and Suzi also offer all the amenities for a traditional funeral with a wide range of casket selections, burial vaults, video tributes and facilities for visitation and services. As one of the few family owned and operated funeral homes in the area, Greg and Suzi invite you to stop by to discuss the options and let us do a cost comparison & record your wishes.
110 S Broadway Ave New York Mills, MN 218-385-2345
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505 Holden Ave Henning, MN 218-583-25 l l
419 2nd Street NE Wadena, MN 218-632-4007
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