KEY TO SUCCESS NE Iowa has the leadership and training programs for business to succeed. KEY TO INNOVATION Skilled workers the driving force behind John Deere’s recordbreaking success. KEY TO LANDSCAPE Cedar Valley downtowns, industrial parks and riverfronts thriving.
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CONTENTS Pr o g r e s s 2 013 Edition
6-15
Key to success
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16-23
Key to innovation
24-34
Key to landscape
PROGRESS 2013
From the
Publisher “Unlocking Opportunities” is a fitting title for the Courier’s 2013 progress report on the state of the economy and the vitality of our community. In the following pages, we will tell the story through pictures, features and advertisements.
Publisher
DAVID A. BRATON Ad Director
TARA SEIBLE Project Manager & Advertising Sales
SHEILA KERNS Editor
NANCY NEWHOFF Business Editor
JIM OFFNER Special Sections Editor
MELODY PARKER Graphic Designer
AMANDA HANSEN
Business leaders across the Cedar Valley indicated the local economy has “weathered the storm” and is resilient to what we’ve seen on the national economic front. Despite the uncertainty with health care reform, the tightened regulatory environment and a struggling world economy, the Cedar Valley business climate maintains a strong footing. The Courier focused on three areas for this special report. “Key to Success” looked at programs such as the Skilled Iowa Initiative launched by Gov. Terry Branstad. We also highlighted rural counties that are seeking highly skilled employees and educational institutions that are leading the way in training future workers. Innovation is another key to our Cedar Valley success as John Deere, Rydell Chevrolet, Blackhawk Engineering and Kryton Engineered Metals, to name a few, expand and continue to lead in their specific industries. Our economic community is clearly diverse. The “Key to Landscape” was the third area of interest in our progress report as we looked at how our downtown areas have changed and how our industrial parks and riverfronts are thriving. Yes, the Cedar Valley has had the keys to success. As we continue to grow, we clearly have unlocked opportunities for the Cedar Valley. Courier staff members have done a tremendous job developing this publication. We are confident you will be impressed with the business climate of the Cedar Valley. We have a great story to tell the world!
David Braton Publisher
Progress is a publication of Progress is published yearly by Courier Communications and may be contacted at: 100 Fourth St., P.O. Box 540, Waterloo IA 50704. Copyright, Progress, 2013. All rights reserved. Reproduction or use of editorial or graphic content without permission is prohibited.
PROGRESS 2013
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BUSINESS LEADERS SAY LOCAL ECONOMY RESILIENT AM By JIM OFFNER jim.offner@wcfcourier.com
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rea economic leaders continue to appreciate that they live on a veritable economic island of tranquility, even if the water line is creeping a bit closer to them. “I’d say it’s a level of uncertainty,” said Mark Hanawalt, owner of Waverly-based manufacturer United Equipment Accessories, which produces an array of industrial goods, including slip rings, cable reels, shift controls and hydraulic swivels. He was one of seven area business leaders who participated in a roundtable discussion on the state of the Cedar Valley on Jan. 8 at The Courier. Other participants were Waterloo City Councilman Quentin Hart; Steve Dust, CEO of the Greater Cedar Valley Alliance & Chamber; Jack Dusenberry, CEO at Wheaton Franciscan Healthcare-Iowa; Linda Allen, president of Hawkeye Community College; Joe Vich, CEO of Community National Bank; and Jean Trainor, CEO of Veridian Credit Union. Hanawalt pointed to problems in Washington, specifically the recent “fiscal cliff” negotiations that produced a tax increase. The sequester’s impact in the area is still uncertain. Those issues are a long way from Iowa, but they reach into the Cedar Valley. “With us, we were looking at a 14,000-square-foot expansion this spring. That currently is on hold because of what’s going on in Washington,” said Hanawalt, whose company just celebrated its 60th anniversary. “There’s just not a clear plan, and it just does not foster a clear path to recovery.” Vich agreed. “I would agree there’s some certainty that a cloud is lingering over the business community,” he said. “It’s been there for a year. It’s nothing really new.”
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Signs of health There may be problems nationally, but it’s important to remember things are better in the Cedar Valley than elsewhere, Trainor said. “Iowa is doing very well, so let’s focus on our business,” she said. “Consumer confidence is so tricky, and a lot of times what we hear is happening elsewhere is different from what’s happening locally.” Local businesses have repelled national malaise successfully before, but it’s a difficult process, Dust said. “Not knowing what’s coming next is often a problem for business,” he said. “Now that we’ve moved through that constraint and it’s more predictable — we still have a lot of things to deal with — but, anecdotally, people are relieved that there’s at least some predictability in factoring out their planning. The group was asked about how they’re dealing with a tightened regulatory environment. “Dodd-Frank has barely been implemented,” Vich said. “They believe there are thousands of regulations to be written that will be disseminated out to us. Does it really matter? Yes. In the end, it’s the consumer we’re trying to protect here under all this legislation, but it’s going to get more and more confused. I don’t know if any of you have refinanced your home. The book you get when you close the loan. It’s a volume.” The federal health care overhaul kicks in with its first wave of taxes and regulations in 2013. It stacks up to be a challenging year for health care providers, Dusenberry said. “Health care is always so overly regulated; it’s almost to the point now that I make a joke out of it: The rules are so complex we create jobs to help us comply,” he said. Dusenberry said the notion everyone should be insured is a noble idea. “If we can insure everybody, we can have less bad debt. It intuitively makes sense,” he said He said consumers and employers can
keep health care costs down through wellness programs. “As a society, we don’t take care of ourselves,” he said. “We need to move in that direction.” Allen said Hawkeye employees are encouraged to monitor their health. “Even the fact that the conversation is focused on creating healthy living habits and wellness is a positive step,” Hart said. The Blue Zones initiative, which has taken hold in the Cedar Valley in the last year, is a positive step toward a healthier population, Dust said. Hart noted it makes good business sense. “Healthy workers give greater output, so it’s important for any employee,” he said. Looking up The local economy has been showing signs of health in the last year or so and looks to do more of the same, Dust said. “We do have an unusual amount of office space available, but take a look at the retail market,” he said. “Our market has held itself fairly steady.” Downtown areas “seem to be thriving, and the rents and valuations are going up and vacancies are going down,” Dust said. “You’re seeing more land being dedicated to commercial growth.” “We have industrial properties that are either in the market or coming on the market,” he noted. Last year the area had its first spec industrial space ready for construction in “a very long, long time.” “That’s a very positive sign that a private developer is willing to take the risk, build empty industrial space and believe the market is going to support it. I think that’s very important,” Dust. The commercial property base is healthier than it has been in several years, Dust said. “Probably for the last three years, we were dealing with a market that had no available modern industrial space and that had been a constraint from the standpoint of attracting the interest of those who want available building space PROGRESS 2013
M THE
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NT AMID NATIONAL CHAOS first,” he said. “We haven’t had that space. So, on balance, we’re in pretty darn good shape, and we have good products on the office side.” TechWorks progress On the commercial side, Dust said the CedarValley TechWorks finally will see some tangible progress this year. “The financing package on The Green project on Tech 2 (a TechWorks building) is within weeks of being completed now,” Dust said. “Some very complex tax-credit financing that is part of that is just being finished up.” He said office space at TechWorks is almost filled with commitments for occupancy. Next door, the John Deere Tractor and Engine Museum is scheduled to open in spring 2014. The Tech 1 building, where the University of Northern Iowa’s National Ag-Based Lubricants Center has been the only tenant for the last three years, is attracting interest, too. “Honestly, after having sat here for years saying this will happen, 2013 looks like the year where significant progress will be made on the project.” The construction timetable for Green@ TechWorks, a $50 million business-class hotel, restaurant, green energy and office development, remains unchanged from a year ago, Dust said, when planners said the project would be completed by the fall of 2013. Rough spots Panel members noted the business community had to deal with a number of traumatic events in the past year: the downfall of Russell Wasendorf Sr. and collapse of Peregrine Financial Group Inc., and the closings of the local Beef Products Inc. plant and the Wonder Bread bakery. In September, Grundy Centerbased manufacturer R.S. Bacon Veneer shut down, idling about 50 workers. Dust said most of the problems were beyond local control. PROGRESS 2013
“The good part of that, again is, we have the strength and the base, that most of the people (affected) had the opportunity to be employed and remain in the area,” he said. “That was because we have this underlying strength of the regional economy, from New Hampton to Traer, from Grundy to Independence. That’s the circle that I think about, and you look at creative, industrial, health care, higher ed — very strong all the way around.” Signs of new life There were signs of new life in previously blighted areas near downtown Waterloo, Hart said. “2012 was our second-largest year for development in this area, which shows an indication that in 2013, we’re expecting greater,” he said. Hart pointed to the new CVS Pharmacy that went up last year on the former site of Immanuel Lutheran Church at U.S. Highway 63 and Franklin Street. The rest of the site is being readied for additional retail space, according to city officials. “There are new strip malls, improvements to our roads, completion to some of the attractions we have downtown,” Hart said. “We started building houses in neighborhoods that haven’t seen new houses in over 80 years, so we’re starting to see a lot of progress in different sectors of the community.” John Deere remains the economic bedrock of the area, Dust said, and the Moline, Ill.-based company continues to strengthen its presence in the Cedar Valley. “In large part, you saw Deere reshoring, reinvesting in the Cedar Valley, and we can’t lose sight that while their headquarters are in Moline, their world operations center is in the Cedar Valley, and we benefit from that,” Dust added.
Linda Allen Hawkeye Community College president
Steve Dust Greater Cedar Valley Alliance & Chamber CEO
Mark Hanawalt United Equipment Accessories owner
Quentin Hart Waterloo City Council member
Jean Trainor Veridian Credit Union CEO
Joe Vich Community National Bank CEO
Jack Dusenberry Wheaton Franciscan Healthcare-Iowa CEO
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KEY to SUCCESS
The best of our abilities Skilled Iowa Initiative brings new tool to job seekers, employers By JIM OFFNER jim.offner@wcfcourier.com
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he Skilled Iowa Initiative, which Gov. Terry Branstad unveiled in 2012, is growing roots in the Cedar Valley in 2013. Branstad launched the program as a way to provide assurances to employers and potential employers that job candidates have the skills they’ll need to succeed. Iowa Workforce Development, which is implementing the program, says about half of the available jobs in Iowa fall into the category of “middle-skilled” labor positions requiring a high school diploma or associate degree, but only 33 percent of Iowa’s work force qualifies as middle-skilled workers. IWD pointed out only 18 percent of available jobs were classified as low-skill, but 38 percent of available Iowa workers were considered low-skilled workers. In 2012, 32 percent of jobs available in Iowa were for high-skilled workers, but only 29 percent of the work force was considered highly skilled. “Businesses always tell me they can’t find welders or machine operators, and I talk to people who say they can’t find a job,” IWD Director Teresa Wahlert said during a visit to The Courier. The program uses a universal testing system that rates the skills and abilities of those in Iowa’s workforce, awarding a National Career Readiness Certificate upon completion of the program. The certificate allows workers to more accurately display their skills to current and potential employers. An internship program is another component. Employers who attended recent rapid-response job fairs that followed area plant closings said Skilled Iowa’s timing was ideal. “It is an important area,” said Kevin Karms, director of support services at Power Engineering & Manufacturing Ltd. in Waterloo, who attended the job fair that followed the Wonder Bread closing that displaced about 60 workers. “As far as the manufacturing industry goes, the Cedar Valley has the highest density of that kind of business, and all of the manufacturing facilities like us are having the same kind of issues with manpower.” Skilled Iowa is a partnership with employers, said Tony Davy, recruitment/replacement rep with IowaWORKS, who also was at the Wonder job fair. “I think one of the biggest things we’ve done is remove a little bit of the stigma kind of associated with Iowa Workforce Development in the business community,” Davy said. “We want to get out there and be partners with them and not be seen as the unemployment office, but be seen as an employment agency and helping employers connect with skilled employees. We think Skilled Iowa is one piece to that, and honestly, Skilled Iowa wrapped around the career-readiness certificate program, which is a good deal.” The certificate gives job hunters some proof of their skills and provides employers with the opportunity to see there’s potential for success in graded levels, Davy said. 8
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“Of course, there are some metrics that go along with the Skilled Iowa program in order to become a work-ready community, which obviously, the Cedar Valley was recognized recently as being first in the state,” he said. The Cedar Valley was the ideal starting point for Skilled Iowa, Davy said. “We had a strong consortium of businesses who had already signed on and had made great progress toward the goals of the metrics they are measuring, and I think there’s a commitment on the part of the Greater Cedar Valley Alliance to help push that, using their influence and networking ability,” he said. “Because really, frankly, this grass-roots thing with job seekers won’t ever get started unless there is heat behind it in the business community with employers onboard, saying, ‘Yeah, we
MATTHEW PUTNEY / Courier Photo Editor
People attend a job fair at Willow Lawn Mall in Waverly in September.
recognize this. There’s some validity to a national career credit program.’” Shauna Olson, human resources executive with Cedar Fallsbased Martin Bros. Distributing Co., said her company signed on early as a private sector partner with the Skilled Iowa Initiative. Olson said the program’s internship component has particular value. “The internship will give you a look at some people who maybe don’t know anything about a distribution center and don’t understand what kind of work it is,” she said. “It helps Martin Bros. know what the skill sets are without having to do some testing on our own.” The other components drew Martin Bros. in as well, Olson said. “When Iowa Workforce Development people explained the program, we jumped on it right away,” she said. “We were pretty excited.”
PROGRESS 2013
KEY to SUCCESS
Now hiring Rural counties seek skilled workers to fill jobs By KAREN BUSHANAM karen.bushanam@wcfcourier.com
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rent Matthias has a golden headache. So does Jeff Kolb. Both economic development officials in Northeast Iowa — Matthias for Bremer County and Kolb for Butler and Grundy counties — are charged with marketing communities with relatively low unemployment rates to prospective employees. Apparently, good help can be hard to find. “It has been challenging to find workers,” said Matthias of Waverly Area Economic Development. Many Northeast Iowa communities, including those mentioned above, are looking to hire. “Our employers are just ramping up more and more and the people that have the skills that are needed, they have good opportunities,” Kolb said. “Jobs are growing faster than people can relocate,” he added. Openings in manufacturing, including ag-based businesses, are some of the most plentiful, according to Kolb and Matthias. In Bremer County, the top sector seeking more workers is health care. Of more than 120 jobs listed on the Waverly Area Economic Development’s website, which covers Bremer County and Shell Rock, 31 postings advertised medical-related openings on Jan. 22. Manufacturing and skilled trades and crafts listings totaled 20. Low unemployment can make it difficult to find enough skilled workers from the local employment pool, Matthias and Kolb said. According to Iowa Workforce Development statistics reported in November, Bremer County boasted 3.2 percent unemployment; Butler County stood at 4 percent; and Grundy County had 4.1 percent. Many neighboring counties enjoy similar statistics. “It’s not just welders and machinists, though, boy, we’ll take as many of those as we can,” Matthias said. “ ... It’s a wide variety.” In demand Jenna Wedeking of Clarksville didn’t have trouble finding a job as a medical lab technician. She finished a two-year program at Hawkeye Community College in 2006 and started work at the Waverly Health Center that same year. In addition to a need for doctors and nurses, other medicalrelated positions expected to be valuable include lab technicians like Wedeking as well as information technology and health information managers, according to the Waverly Health Center. The average lab technician is between 55 and 60 and their retirement will leave a void, according to Jan Thedens, laboratory manager at the Waverly Health Center. “There is a demand,” Thedens said. The field is “experiencing a shortage and in the next five to 10 years, we are experiencing an even greater demand.” So far, the Waverly Health Center has been fortunate to be able to find capable employees, even if they have to come from afar, according to Angie Tye, human resources director at the hospital. Waverly Health Center employees represent 46 towns, said Tye, and 63 percent of the center’s 435 employees commute PROGRESS 2013
MATTHEW PUTNEY / Courier Photo Editor
Jenna Wedeking, a medical lab technician, works on a test at the Waverly Health Center on Jan. 21. Lab technicians are among the professions likely to be in demand in the next few years.
from outside Waverly. More far-flung staff live in Cedar Rapids, Ankeny and Center Point. Melissa Funte, a lab assistant, makes a 45-minute commute from Floyd to work at the Waverly Health Center. She said she could probably find work closer to home but likes her work environment and was already traveling to Waverly for other business. “I just like the way people interact with the patients and treat the patients,” Funte said. “Everyone is always smiling.” Filling open positions hasn’t been too difficult, though some jobs that require more specialized skills may stay open longer than others, Tye said. Turnover is low, just 5 percent over the last six months, Tye said. Many job openings reflect growth. As more providers agree to offer services in Waverly, it’s necessary to hire support staff. Retraining, recruiting During the agriculture crisis years ago, rural residents migrated to cities to find work, Kolb said. Now, there’s a good chance rural Iowans can find work closer to home. Likewise, urban residents looking for work should consider commuting to outlying communities. “I’ve always been a firm believer that roads go two directions,” Kolb said. Sometimes, its just a matter of planting the idea in someone’s head and debunking stereotypes about rural Iowa. “I think the rural areas have diversified more, and I think technology has allowed that to happen as well,” Kolb said. “There’s a lot of small manufacturing areas in rural populations that go unnoticed.” “In today’s environment, a business wants to hire someone and preferably have all the skills,” said Waverly Mayor Bob Brunkhorst. Brunkhorst believes there is a skills gap. While businesses prefer to hire a worker who can hit the ground running, filling such gaps involves partnerships between companies and schools. “We are making sure we communicate out broader and also assist companies in how to mitigate the skills gap,” Brunkhorst said. > continued on page 29 wcfcourier.com/progress
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KEY to SUCCESS
Geater done
Independence manufacturer reaches out to schools to build a great workforce
MATTHEW PUTNEY / Courier Photo Editor
Alexa Brace, below, a recent Hawkeye Community College graduate, works on machinery at Geater Machining and Manufacturing Co. By MATTHEW WILDE newsroom@wcfcourier.com
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ired of wading in a relatively shallow labor pool, an Independence company started an innovative initiative to get young people excited about careers in manufacturing. Geater Machining and Manufacturing Co. of Independence, which builds precision parts for the aerospace, electronic and high-tech industries, is reaching out to area middle and high school students. The goal is to create a deep, readily available local workforce. The School Outreach Initiative, which began this summer, is already paying dividends. Geater officials hope it will ensure the longtime success of the company and community. Starmont High School junior Larry Hunt hadn’t considered a career in manufacturing until he toured the Geater plant in the fall as part of the outreach program. The 16-year-old thought being a machinist would be dirty, hard, monotonous, lowpaying work. That changed while walking through the state-of-the-art plant filled with high-tech machines. He watched fabrication experts make radio and other component boxes out of aluminum with computer numerically controlled machines in a relatively clean, climate-controlled environment. Hunt also learned a trained CNC operator, after getting a twoyear associate degree, can earn about $50,000 a year to start. “It was such a different perspective. That was pretty cool bringing us in,” Hunt said. After football season, Hunt started working at Geater part time smoothing out parts. He plans to get a CNC degree, possibly starting the process while still in high school, and work at 10
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Geater full time. Stacy Halverson, human resources manager at Geater, couldn’t be more pleased with the way the initiative is working. Participating school districts currently include Independence, Starmont, Oelwein, North Fayette, and West Central of Delaware and Jesup. The Buchanan County Success Center, a local alternative high school, is also involved. The company will continue to encourage others in the area to join. The company provides plant tours and fabrication experts to teach students about manufacturing, fixes equipment in school shop classes and will help buy equipment or get classes up and running. Students interested in getting a CNC degree can qualify for tuition reimbursement from Geater if they work for the company. Halverson said the initiative was born after a manufacturing conference at Hawkeye Community College in Waterloo a year ago. Experts at the conference said the Cedar Valley was short 100 to 200 skilled machinists and the school was only turning out 25 a year. The shortage is expected to double in the near future, Halverson said. “We can’t compete with John Deere and GMT (in Waverly). Our goal is to refocus recruiting efforts of where to get people,” Halverson said. “(Potential workers) don’t want to commute here. ... We need to grow our own.” CNC operators aren’t the only focus, Halverson said. She tells students manufacturing is more than just working with metal. Computer programers, information technology experts, bookkeepers and managers are needed, among other jobs. Geater currently employs 195 full- and part-time workers. The company celebrated its 50th anniversary last year. Some of Geater’s best customers include Rockwell Collins, Chrystal Group and General Dynamics. Geater is growing. Just before Christmas, the company started using a 27,000-square-foot addition, more than doubling the size of the plant. “We’re pushing to get our name out in the area and show kids they can get a quality job in Buchanan County,” Halverson said. Matt O’Laughlin, superintendent at Starmont Schools, said the partnership with Geater provides an opportunity for students who don’t want to attend a traditional four-year college to glimpse what a career in manufacturing could entail. In an area dominated by agriculture and small towns, O’Laughlin said good-paying jobs can be hard to find. Opportunities exist at Geater and other manufacturing plants to stay in Northeast Iowa and live well, he said. “It’s our job to prepare all students for the future, whether it’s post-secondary education, the military or to go right in the workforce,” O’Laughlin said.
PROGRESS 2013
KEY to SUCCESS
In demand
Schools working to train health care professionals By EMILY CHRISTENSEN emily.christensen@wcfcourier.com
9.8 million in 2020. The college recently expanded its master of science nursing program to help address the need for primary care providers. eorge Isley stared intently at the orange Silly Putty-like “Nurse practitioners help fill physician shortage needs as they substance clinging to his tray. can provide primary care for approximately 85 percent of clients His right arm slowly moved toward the substance, his seen in clinics, physician offices and long-term care facilities, as fingers pinching at the goo. well as serve in the role of a hospitalist,” Kramer said. “Come on. You can do it,” coaxed Diane Heller, Isley’s occupaThe college also is seeking approval from the Higher Learning tional therapist assistant at the Western Home. Commission for four new health science programs: a bachelor Heller, an August 2012 graduate of Hawkeye Community of health sciences degree with a major in public health or a denCollege, had already received a tal hygienist completion, a master job offer from Millennium Therof occupational therapy and a apy, the organization that prodoctor of education for health vides therapy services for Westprofession educators. ern Home and several other area Kramer said there is “great local facilities, prior to her gradupotential” for collaboration with ation. Her classmates — there HCC on the master of occupawere about 20 of them — also tional therapy and bachelor of had promises for gainful employscience degree for dental hygienment upon the passing of their ists because the school has lowerboards. level degree programs in both The school only recently added majors. the occupational therapy assisCareer advisers at the Universitant and physical therapy assisty of Northern Iowa and Wartburg tant programs. Both have had College also are keeping a close strong student interest and suceye on what federal statistics are cess placing students upon prosaying about the job market. At gram completion. Linda Allen, UNI, Matt Nuese, the associate the school’s president, said she director for UNI’s Career Services, doesn’t expect that kind of job knows that the university offers security will change. degrees that can land their stu“These assistants are in high dents in nearly all of the biggest demand, and it is not usual for growth fields including educathem to be hired before they are tion, accounting and several busilicensed,” Allen said. The median ness analyst areas. annual salary in 2010, according But Robert Frederick, Career to the Bureau of Labor Statistics, Services director, said like anywas $51,010 for an occupational thing, they have to be careful of therapy assistant. And the need those statistics. for additional assistants will con“Sometimes there is a big pertinue to grow by about 41 percent centage of growth, but there is DAWN SAGERT / Courier Staff Photographer through 2020. a small number of jobs. We look Diane Heller, an occupational therapy assistant and HawkBut that isn’t the only in-demand eye Community College graduate, demonstrates a hand motion at the top 20 to determine what health care profession. Allen Col- for her client, George Isley, at the Western Home, while Heller’s areas of study align closely with lege has recently expanded some supervisor, Tom Hoey, looks on. that,” Frederick said. “We are very programs and plans to add even fortunate right now that we have more in the near future. The school currently offers five different a really nice alignment based on the programs we are offering. ways for students to enter into the bachelor of science in nurs- We are the centerpiece for STEM. There is expected to be a lot ing degree program. of turnover in K-12. Our industrial tech area continues to grow.” “We are trying to meet the needs of different populations Derek Solheim, associate director for career services at Wartof people,” said Nancy Kramer, the school’s vice chancellor of burg, said the same holds true there. They have strong biology, academic affairs, speaking in particular about students who business administration, education, psychology and commuare changing their careers and entering the program with one nication arts programs, which are all areas seeing strong job degree already under their belt. “These people are a lot more growth now and projected for many years to come, Solheim mature and have experience working in a profession already.” said. In 2010 there were approximately 7.8 million health care prac“One advantage of the liberal arts degrees is the flexibility. titioners and technical occupations, according to the Bureau of “You can roll with the punches. And today, you have to be flexLabor Statistics. That number is expected to grow to more than ible and adaptable.”
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PROGRESS 2013
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KEY to SUCCESS
Driving Rapid response brings Technology order to layoff chaos in Education
By JON ERICSON jonathan.ericson@wcfcourier.com
W Driving Simulators
Virtual Hospital
Robotic Welding
More than YOU can IMAGINE!
319-296-HAWK www.hawkeyecollege.edu 12
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hen Hostess closed its doors in downtown Waterloo in November, many employees were at a loss for what comes next.
A meeting at Hawkeye Community College helped bring at least the immediate future into a bit clearer focus. A rapid response team made up of workforce and social services agencies helped the nearly 70 newly unemployed workers learn more about what comes next. For example, Arnold Paxton, an oven operator at the plant, had been contemplating what was the next step to take. The meeting helped him confirm his plans. “It was worth coming, just for all the information and opportunities that are available, especially for people with families,” he said as he left the meeting. The rapid response teams were established by a 1988 federal law called the Worker Adjustment and Retraining Notification Act. That legislation required most employers with 100 or more employees to provide 60-day warnings of plant closures or mass layoffs. In Iowa, those notifications fall on the desk of Ted Harms, the state coordinator of rapid response programs. His first step is to contact the employer and arrange a meeting. He’ll also gather together agencies like the Department of Human Services, Iowa Workforce Development, Consumer Credit and Hawkeye Community College to meet up. “I’ll bring together the agencies that have services for dislocated workers. At this management meeting we’ll have a short roundtable and talk about what agencies bring to the table,” Harms said. At the same time they will start plotting how to assist the workers. Shortly thereafter, preferably while employees still have a job, they will schedule informational meetings with employees. “Our sole goal is to make sure every impacted employee has good information and can make intelligent and reasoned decisions,” Harms said. After letting employees know about things like unemployment compensation, food or heating assistance and retraining programs, they will get together with local groups to make sure the community knows what skills the workers have and help market the newly-unemployed workers. When PFGBest suddenly closed amidst the Russell Wasendorf Sr. scandal, a local rapid response team was quickly assembled even after the business had closed its doors. It’s not the optimal situation for the rapid response organization. In a more common situation, employees will have heard rumors or been notified of upcoming layoffs when they see the rapid response group come in to meet with management. “If we all show up and have a management meeting it spreads quickly and they know they have people there to try to help us,” Harms said. “It gives employees hope. Even if it’s terrible news they’re receiving, they know there are people out there to help them.” PROGRESS 2013
KEY to SUCCESS
Area school district to participate in Skilled Iowa Initiative
UPPER IOWA UNIVERSITY Experience. Learn. Lead.
By ANDREW WIND andrew.wind@wcfcourier.com
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rea school districts are partnering with the state’s workforce development office in their quest to better prepare students for jobs and college. The Waterloo and Cedar Falls school districts are looking at ways to participate in the Skilled Iowa Initiative, which aims to ensure workers have the skill sets needed by employers. In November, both districts signed a letter of commitment to be part of the initiative. Gov. Terry Branstad announced the effort’s launch in June and talked about it in his Condition of the State address to the Legislature. The initiative is being supported by Iowa Workforce Development, which is assisting districts statewide through its IowaWORKs offices. “We’re kind of working with each school in letting each school find out how to best fit this into their curriculum,� said Ronee Slagle, northeast district manager for IowaWORKS. Her office is working with schools throughout Butler, Buchanan, Black Hawk, Bremer and Grundy counties. “It’s just a wonderful partnership we have developed with the schools.� Central to the initiative is ACT’s National Career Readiness Certification, which is earned through taking online assessments in applied mathematics, locating information and reading for infor-
“This has come at a perfect time for us. We’re equipped and ready to take this initiative on and are excited about it, too.� Crystal Buzza Waterloo Schools’ director of strategic partnerships
mation. “We’re paying for the testing for the students,� Slagle said. Districts would find ways to provide and oversee the preparation and testing in their high schools. Slagle said the tests indicate readiness for various types of jobs depending on achievement level. Students can increase their scores by going through the online tutorials and testing again. “It’s just one more credential the students can use when they are applying for a job or applying for a school,� Slagle said. “It’s an opportunity for potential employees to become careerready to gain some skills in assessment,� said Dan Conrad, Cedar Falls Schools’ director of secondary education. “I think our role as secondary schools is to be preparing potential employees for some of those skills.� He noted that the district already provides classes in a variety of career and technical areas through its dual enrollment partnership with Hawkeye Community College. “What we will be looking and asking for is some better direction,� said Conrad, both from the state and local businesses on the skills they need from high school graduates. > continued on page 31 PROGRESS 2013
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KEY to SUCCESS
I am building the Cedar Valley. Each year, the University of Northern Iowa contributes to the quality of life in the Cedar Valley. This year: n There are more than 17,000 alumni making the Cedar Valley their home n Business and Community Services served nearly 1,300 clients n More than 2,400 alumni educators are shaping the future n More than 2,800 current students come from the Cedar Valley n UNI employs more than 3,600 students n More than 500,000 guests enjoyed athletic and non-athletic events in the GallagherBluedorn Performing Arts Center, UNI-Dome and McLeod Center n UNI students volunteered more than 220,000 hours to Iowa’s community organizations and programs
uni.edu
to learn more!
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The real world
Schools polish graduates’ professionalism By EMILY CHRISTENSEN emily.christensen@wcfcourier.com
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arzad Moussavi spends a lot of time talking to former students and business professionals. As dean of the University of Northern Iowa’s College of Business Administration, he considers the conversations part of the job. He has often heard praise for the graduates. They knew the material. They were willing to work hard. But there was something missing. “That missing ingredient we came to call ‘professional skills’ because our students, most of our students, have had little professional exposure when they join us,” Moussavi said. “When they graduate, they have a world-class education and know how to work hard, but they don’t have the organizational savvy, selfassurance or assertiveness that they will need to hit the ground running as a professional.” As the job market has become more competitive, colleges and universities across the country have worked on efforts to make their students stand out in the crowd. In the UNI College of Business Administration, that meant the addition of the Professional Readiness Program. The noncredit program, mandatory for freshmen and sophomores, addresses professional attitude, organizational awareness and communication and thinking skills. Sessions are taught by professional trainers and business leaders. Students are required to dedicate about two hours a week to the program as underclassmen. David Miller, a 2012 graduate who is now a business analyst at the Target headquarters in Minneapolis, was part of the pilot class of students. Like many, he resisted the extra work. “I clearly understood the value of the program at a high level, but initially was not 100 percent committed,” he said. That changed the more he got involved with school alumni. “Reflecting now ... I am blown away by the magnitude and depth of the program and what it provides to students,” he said. “I had opportunities to meet with local and nationally renowned alumni, best-selling authors, award-winning speakers and more. This exposure was unlike any classroom experience available to me and while I graduated with an accounting degree, it was the Professional Readiness Program that gave me my true career opportunities.” Moussavi said many upperclassmen, like Miller, continue the program into their junior and senior years because of its benefits. The dean said the anecdotal evidence has been positive. “What we are hearing from the career fairs is that our students are showing up more professionally prepared,” Moussavi said. At Wartburg College, premed students are exposed to more curricular options, which educators say better prepares them for the next step. Shawn Ellerbroek, an associate professor of chemistry and biochemistry, said students take a full year of anatomy and physiology, common in premed programs. However, Ellerbroek said Wartburg’s courses focus more on problem-based learning, which isn’t always the case elsewhere. “These are the kind of critical thinking analysis skills they are going to need,” he said. Students also have a year of biochemistry, a rarity for most programs. Ellerbroek said more medical schools are requiring > continued on page 31 PROGRESS 2013
KEY to SUCCESS
Connected | Four-lane expansion on U.S. 63 opens possibilities in NE Iowa By DENNIS MAGEE dennis.magee@wcfcourier.com
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PROGRESS 2013
DENNIS MAGEE / Courier Regional Editor
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Traveling across Northeast Iowa got easier in 2012. The Iowa Department of Transportation opened an additional stretch of four-lane road on U.S. Highway 63. The segment is in Bremer and Chickasaw counties.
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ortheast Iowa shrank in 2012: Everything north of Iowa Highway 3 got closer to Waterloo and Cedar Falls. The Iowa Department of Transportation in October opened the final stretch of four-lane convenience on U.S. Highway 63, effectively reducing drive times and, in particular, blurring the line between Black Hawk, Bremer and Chickasaw counties. “It’s going to be good for the whole area,” said Larry Farley, city administrator in Denver. “It just opens up everything.” His city’s 1,780 residents can reach just about any point in Waterloo within 20 minutes and New Hampton in less than 30. “It’s quite a corridor, there’s no doubt,” Farley adds. And something worth mentioning when talking to new businesses thinking about moving or existing companies considering expansion projects, according to Tammy Robinson, director of New Hampton Economic Development. Her agency made a point of noting the new-and-improved artery when updating its promotional efforts. Residents and businesses waited a long time for the wider segment of U.S. 63. “We promised Sara Lee years ago that we would get that road four lane,” Robinson said. Unfortunately for the community, the company pulled out in 1999, long before New Hampton officials could make good on their vision. Instead, Sparboe Foods, which bought the vacant plant in 2001, will reap the benefits. Others in the city can also take advantage, according to Robinson. “For a town of New Hampton’s size, we have a lot of industries because we have a lot of manufacturing,” she said. “I know our industries are the ones that notice the most because of the shipping ease,” Robinson added. “Obviously, it just brings Waterloo that much closer to Chickasaw County.” Widening U.S. 63 from Highway 3 east of Waverly north to New Hampton represented about an $18 million project. The Iowa Department of Transportation explains why such an expenditure makes financial sense on its website. “Transportation is essential to Iowa’s economic well-being. It plays a critical role in creating jobs and stimulating lasting growth for the state,” the site explains. “Manufacturers operating in rural areas, as well as persons involved in selecting sites for new plants, consistently emphasize the importance of easy access to four-lane highways. Multilane highways reduce costs of production and distribution, especially as manufacturers increase their use of just-in-time production practices.” Robinson understands businesses’ thinking. “Cutting down on costs and making it easier — that’s big for a company. It’s all about location, getting product out, but a lot of times they also have to get product in,” Robinson said. Farley also thinks Denver may notice additional, positive sideeffects as motorists and economic development groups spread the word about U.S. 63. Robinson, too, believes the four-lane highway signals bright economic opportunities. “It will really help us in the future because it connects us — finally.”
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PEOPLE POWERED Workers are driving success for John Deere’s Waterloo operations
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ontinuous improvement is the “new normal” at John Deere’s Waterloo operations. Deere has invested $1.1 billion in its Waterloo operations — and counting — since a massive redevelopment was announced Dec. 7, 2000. But there’s another number that counts more: the 6,000 employees at Deere’s Waterloo operations. “Our employees out on the shop floor are a big part of why we’re so successful,” said Thad Nevitt, Factory Manager of the John Deere Waterloo Works. “We are fortunate to have smart, hard-working employees with high levels of technical capability. We have the best people, there’s just no question about it,” Nevitt said. “We’ve invested in both our products and process in recent years, which is a major driver for our continued success. Our competition, however, can and does make these same investments. The difference is our employees. We have a competitive advantage because of the capabilities of our people.” Recently, the company has made major improvements and investments in its drivetrain operations on Westfield Avenue, at the tractor cab assembly operations on East Donald Street and is in the middle of a modernization to the 40-year-old Waterloo Foundry. The company also continues to invest in equipment and manufacturing improvements to produce even more efficient environmentally friendly engines at the Engine Works on West Ridgeway Avenue. A substantial investment also goes into new product development at the Product Engineering Center in Cedar Falls. A major portion of recent physical improvement are part of an announcement last March that Deere was investing $70 million to expand the manufacturing capacity of its Waterloo operations, designed to increase production capacity by the middle of this year. 16
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Much of that work is already in place at the drivetrain operations on Westfield, where production lines have been added, expanding from 17 to 20, according to Mike Hilby, manager of drivetrain and service parts operations. Other lines were reconfigured or improved for more efficient production flow. It’s all in conjunction with the announcement of new tractor product lines in August. The company’s introducing 12 new models in the 105-170 hp range this year, replacing
some lines and upgrading others. A $100 million modernization of the foundry continues as the company adds a new mold line this year. It’s all indicative of the role Deere figures the Waterloo operations — the company’s largest manufacturing complex — has played and will continue to play in the company’s ongoing performance. Deere just completed a third consecutive year of record earnings with its first $3
billion profit year ever. The company had two five-year runs of record profits from 1993-98 and 2003-08. Deere’s local employment, at more than 6,000, is at its highest point in more than two decades. Just as the Waterloo operations remain an integral part of the 175-year-old company, Deere and its workers — both union-wage workers affiliated with United Auto Workers Local 838 and nonunion salaried employees — contribute massive amounts of time, talent and treasure to the Waterloo and greater Cedar Valley community it has been a part of for 95 years. Deere employees are involved in a host of community organizations, including Junior Achievement, Boys & Girls Clubs of Black Hawk County and Habitat for Humanity. The company gave $175,000 to the Northeast Iowa Food Bank as part of the company’s 175th anniversary plus more than 6,500 pounds of food. The company and its staff are a key part of the STEM (Science, Technology Engineering and Math) initiative in local schools to stimulate interest in math, science and related careers. More than 1,300 ninth graders in Waterloo and Cedar Falls toured Deere factories as part of National Manufacturing Day Oct. 25, 2012. Employees’ United Way giving increased 3 percent last year, with new contributors increase 15 percent each of the past four years. That volunteer work and the initiatives with the schools are designed to cultivate an interest in those skills in order to cultivate a skilled local work force and hiring pool for Deere and other employers. “Our employees enjoy giving back to the Cedar Valley. Community development is important to all of us because we live here and also understand how essential it is to our business,” Nevitt said. “We need the best and brightest employees to continue to improve and grow our business, so we need to have a community where these talented people will want to live and work. The success of our business is directly linked to the vitalPROGRESS 2013
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COURTESY PHOTOS
At the tractor cab assembly operations plant, Lonnis Jordan works on a steering cylinder, opposite, and Paul Johnson works at a control panel. Jim Wedeking works at the drivetrain operations plant, above.
ity of the Cedar Valley.” Deere is likewise involved at Hawkeye Community College and the University of Northern Iowa. “We have close partnerships with Hawkeye Community College and UNI. We work together to ensure that their curriculum supports our business. An example is the UNI Metal Casting Center which works very closely with our Foundry operations. “Our company needs highly technical and capable people from our local educational institutions.” One of the overall goals of school and community programs at all levels is to expose more people to Deere’s Waterloo operations. “Some people think of factories as cold, dark and dirty places to work. This view is outdated. Our modern factories are bright, clean and safe with a wide variety of high tech opportunities. Anyone would be proud to come in to work at one of our local operations each and every day,” Nevitt said. Deere operates without a lot of the fanfare accorded other new or expanding local businesses. “John Deere is a modest company, it is part of our culture to be that way. Employees enjoy working hard, doing their jobs and making sure that we take care of our customers. That’s just how we do business,” Nevitt said. PROGRESS 2013
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KEY to INNOVATION
More than the sum of its parts Rydell Chevrolet’s Evansdale warehouse has everything you need to repair a GM vehicle By MATTHEW WILDE newsroom@wcfcourier.com
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eed a body part for a General Motors vehicle currently in production? Chances are Rydell Chevrolet has it — possibly thousands of them. There are about 22,000 headlight assemblies at the company’s massive parts distribution warehouse in Evansdale. Need a hood? About 1,400 are in stock. Shelves in the 60,000-square-foot facility are packed at any given time with truck boxes, motors, transmissions, bumper covers — basically anything needed to repair a car or truck damaged in a collision. Rydell keeps dozens to tens of thousands of different parts on hand for body shops and vehicle owners, who order from a dealership parts counter or online. Rydell Chevrolet — based in Waterloo and part of a nationwide network of dealerships — has become a powerhouse in the auto parts industry. Auto industry and city officials say Rydell’s success in the collision repair business helps the company and dealerships statewide thrive. It also re-energized a commercial building boom in Evansdale and benefits the state’s economy. Selling parts has always been part of Rydell’s business model. The company decided to grab a bigger market share in 2006. “It’s the $15.7 billion monster,” said Brian Tenley, Rydell’s parts director. “Anybody who wrecks a (GM) car is my customer.” Parts sales now exceed vehicle sales as Rydell’s major source of revenue. “Wholesale for most dealers is service to the local area. We’ve taken it globally,” said Matt Halbur, Rydell general manager. Rydell found a unique way to make a profit and save customers money. General Motors used to send large quantities of surplus body parts after production runs to landfills. Rydell buys parts in bulk, often at a discount and already painted to match vehicles, which saves body shops time and money. The savings, usually 25 percent or more, are passed on Emergency Services Available to customers, Rydell MIKEFEREDAYHEATING.COM officials say. The concept has worked well, MAKE IT MIKE, A NAME YOU CAN TRUST
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BRANDON POLLOCK / Courier Staff Photographer
Caleb Thacker moves boxes of automotive parts to a waiting semi at the Rydell Chevrolet parts distribution warehouse in Evansdale. with Rydell forging relationships with insurance companies, body shops, rental companies and GM dealerships worldwide. Rydell quickly outgrew its parts facility at the Waterloo dealership and built a $1 million distribution center in Evansdale’s Prairie Industrial Park, located in the southeast corner of town near U.S. Highway 20. The facility opened in early 2011. At the time, Rydell was the fifth-largest parts distributor nationwide. Since then, body parts warehouses similar in size to Evansdale — the operation’s hub — have been built in Dallas, Boston, Sacramento, Calif., and Orlando, Fla. Evansdale supplies these facilities. Three more warehouses in major metro areas are in the works. Rydell went from supplying the eastern third of Iowa to 37 states and beyond. The company is now the largest supplier of GM collision-related parts in North America, officials said. “We’re the only one who has figured it out,” Halbur added. The business isn’t without risk. Rydell buys large quantities of parts from 27 GM factories and 140 other suppliers. At any one time, the company owns an estimated 65,000 parts housed in the Evansdale warehouse. Company officials declined to provide a value of parts on hand or annual sales. “We’ll either buy all of (a part) or none, then we’ll corner the market on them,” Halbur said. Most get sold, even parts as obscure as bumpers for pink Cadilllacs driven by Mary Kay cosmetic consultants. Sometimes the strategy fails and parts collect dust. In September, the company donated $14,000 worth of unsold inventory to 10 technical schools through the Collision Repair Education Foundation. > continued on page 34 PROGRESS 2013
KEY to INNOVATION
Opportunities for growth Blackhawk Engineering continues its search for workers By JIM OFFNER jim.offner@wcfcourier.com
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lackhawk Engineering Inc. expanded its manufacturing plant in the Cedar Falls Industrial Park last year. That wasn’t enough. The 39-year-old Cedar Falls company is growing again. And its quest for more workers continues. Blackhawk added 30,000 square feet of manufacturing capacity to an existing 55,000-square-foot facility in 2011. The company added 25 jobs in the process. Now, General Manager John Oltman said the success of Deere & Co., one of its major clients, is helping to prompt more growth. “With Deere’s business overall, their foundry has expanded and we’re producing more parts, as well,” Oltman said. “I’ve already begun working on another expansion project.” Blackhawk recently bought property to the south of its plant at 118 Blackhawk Lane in the Cedar Falls Industrial Park and is designing another addition of 40,000 square feet. “We have some new products we’ll be launching in 2013 and 2014,” Oltman said. “We’re out of space, and we’ll be purchasing some new machines to fill that need
for new products.” Construction began in April, and the new addition will be operational six to eight months later, depending on the weather,” Oltman said. The company will be looking for 12-18 more workers in the process, he said. “If we continue to grow, there will be additional employees beyond that we’ll be looking for,” he said. The company, whose primary customers are Deere & Co. in Waterloo, Dubuque and the Quad Cities and Peoria, Ill.-based Caterpillar Inc., currently employs 170 workers. Blackhawk Engineering, which was founded in 1974 as a tool and die company designing specialized equipment, has evolved more than physically, Oltman said. “During the ’90s, it transformed more into a production facility, from a job-shop type of environment,” he said. Deere, which logged its first-ever $3 billion year in 2012, has been central to Blackhawk’s growth, Oltman said. “Part of it is working with a customer that’s growing,” he said. “Logistically, we’re in a position that benefits being close to our customer and also providing a quality product on time at a reasonable cost.” Blackhawk supplies machined cast-iron castings for Deere and Caterpillar. Finding good employees to keep pace with company growth is always a challenge, Oltman said. “The way we deal with it is get as much exposure as we can, we attend as many job fairs as practical when there are plant closures, and we make contacts and try to get in front of those people and let them know we’re hiring and try to pick out those that would best work for both of us,” he said. The company’s growth looks to continue in 2013, Oltman said. Outlook for next year: “Our forecast is as good as it was for 2012, and 2012 was a very good year for us,” he said.
DAWN J. SAGERT / Courier Staff Photographer
Joe Waleski moves a differential case for a John Deere 8000 Series tractor into a large vertical turning lathe at Blackhawk Engineering. PROGRESS 2013
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KEY to INNOVATION
Spin Control Kryton Engineered Metals just keeps growing By JON ERICSON jonathan.ericson@wcfcourier.com
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he best thing ever to happen for Kevin Harberts’ career sure didn’t seem so great at the time. The chief executive officer at Kryton Engineered Metals was finishing high school and working at Hy-Vee years ago. Some hijinks in the back room got him fired, leaving him not only without a job but also in danger of not graduating because he was earning credits for a school program on the job. Harberts found another job at J & J Metal Spinning in Waterloo, a move that would set the stage for Harberts eventually to lead a company that continues to grow in Cedar Falls. Later, Harberts joined with two partners to start his own business, Iowa Metal Spinners. Operating out of a shop on Airline Highway, the business started small but continued to grow. Eventually he faced a need to expand and opened a 110,000-square foot building in the Cedar Falls Industrial Park. After the building was finished, but before the company had moved in, he came in one night and looked over the cavernous interior and thought to himself, “What did I get myself into?” The first year in the new building it was perhaps half full. Business continued to grow, save for a downturn in 2008 during the recession. Now machinery and stacks of motor housings or ventilation metal fill most of the building. More new equipment
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is on the way. “I just feel real blessed to be where we’re at,” Harberts said. Walking around Kryton, workers fashion components using CNC machines, but at the rear of the shop some are still spinning by hand, the way Harberts learned to do it years ago. “Sadly we’re getting away from the art part of it. It’s sad to see it’s a dying art,” Harberts said. The company changed names last year. It had been known as Iowa Metal Spinners for decades, but has more recently added fabricating to its capabilities, not to mention it does most of its business outside of Iowa. “Primarily we’re still a metal spinning house,” Harberts said. The fabricating part of the business came about to add value for existing customers, but also diversify the business and draw in new customers. Harberts thought their facility could give them an edge in providing products at a better cost. The company changed its name to Kryton Engineered Metals in 2011 in an effort to show the true nature of its business, going beyond metal spinning and well beyond Iowa’s borders. The change came with a hiccup, as companies needing metal spinning services now had some difficulty finding the business in searches. They’ve been working to get that fixed, though, and are excited to continue growth. “I had no idea how much stuff we had to change,” Harberts said. Many of their customers are big companies like Emerson Electric, GE and Freightliner, where they ship thousands of parts. But Kryton still caters to smaller businesses as well. Harberts said the business has had steady growth since its creation. The recession created a bump in the road in 2008, but otherwise it’s been a solid trajectory. Today they have 68 employees. Most of the credit for the company’s success can be attributed to those employees, according to Harberts. “We work hard at hiring the right employees. We try to treat people right, treat people fair,” he said. And as for the CEO, he wasn’t discouraged after that ill-fated potato fight in the back of Hy-Vee so many years ago. He had a feeling something big would happen eventually.
but also reliable, dependable service. Kryton Engineered Metals has consistently shown how customized, high quality products can be produced at a reasonable cost, within production schedules, that continually exceed customer expectations and with a relentless pursuit of excellence.
TIFFANY RUSHING / Courier Staff Photographer
Tony Cistrejon spins a motor housing for a ventilation company at Kryton Metals in Cedar Falls. 20
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KEY to INNOVATION
Building boom Auto dealerships, church projects among construction highlights By JIM OFFNER jim.offner@wcfcourier.com
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church, a growing retirement community and two car dealerships got bigger and newer during the 2012 commercial construction cycle. From the standpoint of new, Community Auto Plaza moved its Honda dealership from the Crossroads area of Waterloo to a new building at 4617 University Ave. in Cedar Falls. More in the realm of renewed, Dan Deery Toyota/Scion combined a new showroom, car wash and service department into one new building. “The former building had been remodeled and kept up, but we were due for a new building,” Dan Deery, president of Dan Deery Motors, said last summer when discussing the former showroom, which was about 60 years old. Community Honda’s move had its genesis in September 2011, when Community Motors entered into a partnership with John Deery Motors, combining Community’s Buick dealership with Deery’s GMC truck franchise. Community Auto Plaza President Jim Skarlis decided to move the combined franchise to the Community Honda location in Waterloo, now named Community Deery Buick/GMC. Because Honda requires exclusive showrooms, Community needed to find a new location for the Honda dealership. A lot next to the Community Chevrolet, Cadillac and Buick dealership at 4521 University Ave. was selected. Meanwhile, First United Methodist Church in Cedar Falls got a $2.8 million expansion and renovation, including a new entrance, which moved from 723 Washington St. to 718 Clay St. Creating the new church front meant purchasing and demolishing several properties on the entire block to provide the needed space and visibility. The exterior includes handicapped parking, landscaping, decorative colored glass windows and an enclosed ground level walkway from the northwest alley entrance to the Clay Street entrance. The building has updated handicapped accessibility, a welcome center and new lobby, plus a kitchenette/cafeteria area; a nursery with its own bathroom facilities and security; a new
chapel; and a new library/meeting room/classroom. The third-floor youth area now includes a theater, cafe and game area. The contemporary worship area has moved into Fellowship Hall. Landmark Commons completed a $6 million addition that houses 30 two-bedroom/two-bathroom apartments. The project included underground parking and an expanded dining room. Peters Construction Corp. in Waterloo was a contractor in three of the above-mentioned projects. The work at Deery probably presented the biggest challenge, said Dave Peters, president of Peters Construction. “That was also a phased project, where we went in and built the new service area behind the existing facility and got that completed, which then allowed them to move into their service area.” Salesman worked in temporary trailers while the old showroom was demolished and the new one built, Peters said. Other visible projects are ongoing, including the Northeast Iowa Food Bank’s new $6.5 million distribution center at the corner of Lafayette and Vinton streets in Waterloo, and the $27.5 million Cedar Valley SportsPlex, as well as the Deere Tractor and Engine Museum. Beyond those projects, though, 2013 may be lining up as a comparatively lean year for major construction contracts, said Gene Leonhart, president and chairman of Cardinal Construction in Waterloo. “Unfortunately, from what I see statewide, ’13 may be tighter than the last two we’ve gone through,” he said. “There’s not much good other than the Iowa City-Cedar Rapids corridor. I say that after meeting with other contemporaries. I talked with guys from eastern Iowa on into central Iowa, looking at the larger perspective. Seeing what’s available to bid and in the development stream and so forth, it’s just tight and highly competitive.” Peters said his company had $30 million in construction contracts in 2012. Some of those projects, including a new $5 million distribution center for the Northeast Iowa Food Bank, and a > continued on page 34
Photos by TIFFANY RUSHING / Courier Staff Photographer
Workers install shelving in the second of two buildings going up at Martin Bros. Distributing Co. in Cedar Falls. PROGRESS 2013
Construction work continues in one of two warehouse buildings to be completed at Martin Bros. in Cedar Falls. wcfcourier.com/progress
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KEY to INNOVATION
Going for the green Cedar Valley companies send products around the world By JON ERICSON jonathan.ericson@wcfcourier.com
market is truly nationwide, with customers from New Jersey to Hawaii. Another Cedar Falls company has been marketing globally e it golf flag sticks, school lunches or just a piece of good for a long time. Standard Golf has been in Cedar Falls for more advice, Cedar Valley products span the globe. than a century. These days, it reaches South America, Japan, While the obvious world player from the Cedar Valley is Korea, Australia and a host of other places. John Deere with its green tractors rum“We ship to pretty much every conbling across prairie and lowland, plenty tinent other than Antarctica,” said Jim of other Cedar Valley businesses make Nygren, marketing director at Standard their mark well outside Iowa’s borders. Golf. Banno is an up-and-coming technology The company produces a wide range of company specializing in financial prodproducts for golf courses. If you’ve ever ucts. The company started out in 2008 as knocked in a testy five-foot bogie putt, T8 Webware, but later changed its name. odds are you’ve plucked the ball out of a The company found its niche creating cup produced by Standard Golf. websites, and today has about 300 cliThe company sends products to 150 to ents with more than 400 websites. 200 distributors worldwide. Lately much As the company grew and got to know of the growth has come in Asia, particuits customers better, it found a niche that MATTHEW PUTNEY / Courier Photo Editor larly Korea, Japan and China, as well as needed to be filled. That niche is in an Larry Boyer welds trash cans for golf courses at Europe, South America and Africa. exploding marketplace. “We do the vast majority of our manuStandard Golf Co. on Jan. 17 in Cedar Falls. “With those 400 websites we realfacturing here in the U.S. We try to keep ized none of them had a native mobile app. Wade (Arnold), everything as local as possible,” Nygren said. our founder, realized they needed help with that,” said Bryan While Standard Golf and Banno often operate under the radar, McCarty, the compa- their Cedar Falls Industrial Park neighbor, Martin Bros. Distributny’s product market- ing, is unmistakable with trucks criss-crossing the Midwest. ing manager. The company has long delivered food products to schools So the merry band and restaurants around the Midwest, and its reach has been of web developers at growing. Illinois, Wisconsin, Minnesota and Nebraska have Banno took on a new long been part of Martin Bros. core area, but more recently the challenge over the company has been growing in Missouri and Kentucky. last two years, devel“It has primarily been our health care that has driven us into oping mobile appli- some of those other states. Then we go after schools, go after cations that let bank restaurants,” said Shawna Olson, vice president of human customers do their resources. business, even scanThe company splits its business among schools, restaurants ning checks for imme- and health care facilities. That diversification has helped them diate deposit, right grow and weather adversity. from their phones or VGM in Waterloo is quite visible in the Cedar Valley, even if its tablets. But Banno services may not be. isn’t gaining glory The company has nearly 500 employees. Altogether, VGM for it, at least outside includes about 25 businesses. of industry circles. Both the golf and medical areas serve customers in all 50 Instead they provide states. As far as the home medical business, it does a lot of apps to the banks or work in expected places. credit unions, and it’s “We have a lot of customers in places where there are a conall branded by Ban- centration of older folks. Florida and Texas are significant for us, no’s customers. but we also are strong in Rust Belt areas,” said Mike Mallaro, “Their customer chief financial officer for the company. can search for their VGM is diverse, offering services ranging from coordinating name in the app care for patients to supporting medical equipment dealers. On stores and get the the golf side, it consults many small business and teams them 988-4200 app and never even up for greater buying power. 3130 West Shaulis Rd., Waterloo, IA know that Banno It serves a number of golf courses in Iowa and the Midwest, moved to hwy. 63 1 mile S of 20 exists,” McCarty said. with larger concentrations in the South, where people can play While Banno has golf year round. customers in Iowa and the Midwest, its
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KEY to INNOVATION
CV Community Healthcare gains foothold By JIM OFFNER jim.offner@wcfcourier.com
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piraling cost of health insurance is a national issue these days, particularly with the federal government’s Patient Protection and Affordable Care Act scheduled to kick into full gear Jan. 1, 2014, barring repeal. Beyond that, two giant insurers, Wellmark Blue Cross and Blue Shield of Iowa and United Healthcare, dominate the coverage landscape across the state. But, for small businesses, a small company, operating with only four full-time employees, is working to gain a foothold in health care. Cedar Valley Community Healthcare (CVCH), headquartered at 999 Home Plaza Drive, Suite 210B, in Waterloo, says it is doing just that by emphasizing cost control, personal involvement in the cost-control process and quick responses to client concerns. “We answer our own phones,” said David Harberts, chief operating officer of CVCH, which was launched by James Thomson and Mike Hammes, who ran the now-defunct John Deere Healthcare — also known as the Heritage National Health Plan — in the mid-1980s. Thomson and Hammes are partners in Davenport-based Valley Health Services, which is affiliated with CVCH. “We characterize ourselves as the only locally owned, operated and managed health plan in the Waterloo-Cedar Falls area,” Harberts said. The company now covers more than 3,200 employees of small businesses in the area, operating in the shadow of the two giants. “If you took our provider network and match it up with a Wellmark or United, it would be pretty identical, so the first thing is to offer broad access to the people who are looking at selecting the plan,” Hammes said. “The second thing is you have to develop a good, comprehensive provider contract with those providers.” Premiums are competitive, as well, Hammes said. “The third thing is what do we do from a customer-service standpoint, and that is probably our distinguishing characteristic in this market,” he said. Clients with questions can get answers quickly and locally, Hammes said. “You know what it’s like to get your electric company, your phone company, your health-insurance carrier on the phone? You’re in endless queues; you never talk to the same person and you repeat it the next time to another,” he said. There isn’t a large administrative staff, either. “All of that gets factored into our pricing,” he said. Cedar Valley Community Healthcare has a targeted market, Thomson said. “We don’t sell today to matured fully-insured accounts over 52 employees. “We’re not in every market; we don’t sell to individuals, because that’s a very labor-intensive sales process. We do provide administrative services for large self-funded employers.” The company sees plenty of growth potential in the market it serves. “We’re not trying to replicate Wellmark or United,” Thomson said. A number of local companies have jumped aboard. Waterloobased VGM Group Inc. is one of them. “The level of service for the employees is outstanding,” said PROGRESS 2013
Mike Mallaro, chief financial officer at VGM, which employs more than 400 people and which signed up Jan. 1, 2011. “It’s local and easier to get an answer, easier to get to them.” Cedar Valley Community Healthcare’s goal of keeping healthcare dollars local as much as possible is a compelling asset, Mallaro said. Jay Bullerman, president and CEO of Financial Resource Advisors in Waterloo, has 14 employees covered by a CVCH plan. “Besides the good local relationship ... we were looking for something specific,” Bullerman said. “Our choices we found were a little more limited, and they were able to provide some flexibility and a plan that gives employees control over their healthcare dollars.” A local connection with Cedar Valley Medical Specialists, which was the first group to sign up with CVCH, led Bullerman’s company to a CVCH plan, Bullerman said. “When folks are willing to take their friends and offer something they have some confidence in it, it felt right,” Bullerman said. “They gave us the right answers. They were professional about it and to this day the expectations have been met and exceeded.” CVCH has a network that includes not only the Cedar Valley but also Iowa City, the Quad Cities and Mason City. The little company expects to get bigger in the coming years, while still operating within the same parameters, Harberts said. “I would anticipate in the next two years, we’ll double,” he said.
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BOOMER BUST?
Future cloudy as senior living options increase By MELODY PARKER melody.parker@wcfcourier. com “Your old road is rapidly agin’,” Bob Dylan sang in the 1960s protest song, “The Times They Are A-Changin’.” Turns out that Dylan — who, now at age 71, can take advantage of his own senior citizen discounts — was perhaps being prophetic, considering the driving forces that will shape senior living nationally in the next 10 years. The baby boomers are a-comin’. “It’s the pig in the python,” says Friendship Village Administrator Velda Phillips. It’s her blunt but colorful description of the sheer number of boomers who will retire with high expectations and greater demands for health and wellness services, technology, living arrangements and amenities. “Boomers have had more than any other generation and think they deserve more and will demand more. They’re not as likely to sacrifice their wants and needs to provide an estate for their children. They’re willing to spend what they have on themselves,” Phillips explains. Will they be able to afford it? Western Home Communities CEO Kris Hansen isn’t so sure. “Not all boomers will come in with the pocketbook to buy what meets their expectations. As an industry, we’re trying to get a better handle on what’s coming our way.” Already, the metro area’s senior landscape continues to change as the industry responds and adapts and anticipates the baby boomer generation, while making the best use of resources for current residents. Definitions of senior living facilities, too, are changing, with more housing, home-care and communitybased service options. Phillips points to completion of Phase II of Landmark Commons, managed by Friendship Village, which was completed in 2012 on the south-central edge of Waterloo, bringing the total number of apartment homes at Landmark Commons to 120. Additionally, the last portion of the Max Guernsey farm, donated 20 years ago to Allen Hospital, was transferred to Land24
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MATTHEW PUTNEY / Courier Photo Editor
Dave and Kathy Girsch work out in the yoga class at Landmark Commons, managed by Friendship Village. Fitness centers are on the list of amenities retired active seniors are seeking — and the industry is delivering. mark Commons. It will be the site of new residential retirement neighborhoods, Landmark Meadows, with as many as 115 single-family homes. “These will be neighborhoods around a cul-de-sac, each themed for its own identity and sense of community. We have a half-dozen floor plans so residents can essentially choose their own design,” says Phillips. Western Home Communities observed its 100th anniversary last year by announcing the implementation of a household model of nursing care, and a new active-lifestyles community for ages 55-plus, Mill Race on the River, located on the site of the former Old Broom Factory Restaurant. “The household model is much more of a familial atmosphere with groups of 20 or so residents living together in a cottage. Each resident will have a private bedroom and bath and share common spaces. They’ll direct their own lives and maintain their dignity and independence, and participate in decision-making like what’s on the menu and when to go to bed, just like a family,” Hansen explains. The development of Mill Race, with Eagle View partners Mark Kittrell and Jean Fischer, is particularly exciting, he says. “Lots of folks have been wanting us to do something downtown. Younger
retirees, especially, like the idea of an urban setting close to the river and near the trails, restaurants, shops and other downtown amenities.” NewAldaya Lifescapes, formerly Cedar Falls Lutheran Home, underwent its transformation in 2011 with the opening of a 14,000-square-foot lifestyles center called Main Street. The center includes a cafe, pub, salon, spa, performing arts center, general store and wellness center. “It was a well-thought-out strategy, and a journey that has worked well for us. We’re balancing the traditional paradigm of senior care with the shifting dynamics. We wanted residents to feel engaged and to engage the community,” says Executive Director Millisa Tierney. Construction is well under way on Village Cooperative, with a projected opening for occupancy in June, says Andrew Schaeffer, project manager for the affordable living, maintenance-free complex for active seniors being built by Real Estate Equities, based in Minnesota. The three-story building east of Prairie Parkway near Greenhill Road will have 50 one- or two-bedroom units with 10 different floor plans and amenities such as underground heated parking, a car wash, fitness center, guest suite, gardens and decks. Residents must be 55 and older and will own a share of the cooperaPROGRESS 2013
tive, a newer concept to Iowa. Units cost between $46,000 and $83,000. “Not all price points are still available. We’ve pre-sold 80 percent of the homes and hopefully, we’ll have them all filled by the time we open,” Schaeffer says. Work has just been completed on the first unit of 10 senior condos in Evansdale being built on the old Jewett school property by Evansdale Economic Development Corp. — a nonprofit group not affiliated with the city. The two-bedroom, 1,250-square-foot condos with a two-stall
garage and basement start at $179,000; without basement will start at $168,900. It’s good for the community and will enable a lot of seniors who want to downsize to stay in Evansdale. People are excited about it. We’ve had a lot of interest,” says Mary Kettwig, president. Her husband, Ron, is the general contractor, and along with other board members, the Kettwigs are volunteering their time on the project. Beyond bricks and mortar, experts cite the need for more affordable hous-
ing options for low-income Americans. There also are concerns about financial resources, increasing costs and uncertainty about future cuts to Medicare and Medicaid. “Iowa is in the top five states for quality of care but among the lowest in reimbursement from Medicare,” NewAldaya’s Tierney says. “Economics will drive the system, and it may not look the same in 10 years.”
Thanks to tenants, downtowns thrive By META HEMENWAY-FORBES meta.hemenway-forbes@wcfcourier.com
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he second floor of the building at 208 E. Fourth Street in downtown had been vacant for 50 years. JSA Development decided to change that. Recently, the company began renovating the space into a two-bedroom apartment that’s expected to be completed soon. The unit will feature a nearfloor-to-ceiling view of East Fourth Street, skylights and high-end finishes such as stainless steel appliances and granite counters. “Five decades is a long time,” said David Deeds, JSA controller. “It’s exciting to see these spaces come back to life.” The unit has already been leased, and there’s a waiting list for other downtown units undergoing renovation. JSA’s 34 residential units along Fourth Street between Lincoln Park and Washington Street are never short on tenants. “I get emails quite a bit from people interested in leasing,” said Kristina MillerBergman, JSA director of marketing and projects. “There’s a lot of excitement about what’s going on downtown. There’s so much to do.” For 30 years, Donna Nelson of Nelson Properties-Midtown Development has watched downtown Waterloo spring back to life. Nelson Properties has been part of that rebirth, in part because of the continuous tenancy of the 33 residential units it owns downtown. In the mid-1980s Nelson Properties renovated a floor above a retail space downtown Waterloo. The three apartments were a demonstration of how downtown living could be. “Those spaces haven’t been vacant since,” Nelson said. For downtowns to be revitalized and PROGRESS 2013
thrive, it takes people living there, she said. Among the tenants in downtown properties are lawyers, stockbrokers, executives and other professionals. While many are single, young professionals, there are also some retirees who’ve downsized into downtown living.
TIFFANY RUSHING / Courier Staff Photographer
Doug Schildgen of B&D Drywall finishes up ceiling work at 206 E. Fourth St. in downtown Waterloo. Vacant for decades, the space is being turned into a residential unit as demand for downtown living soars.
“There are two sets of folks that we hear over and over again that are attracted to downtown lifestyles,” said developer Mark Kittrell with Eagle View Partners LC. “Young professionals, also called the creative class, and the empty nesters who’ve had big homes in the suburbs and raised families and now want a pretty carefree (home) with not a lot of yard maintenance.” Eagle View Partners broke ground in December on the 300 State Street project in Cedar Falls, which features 21 two-bedroom loft-inspired walk-up residences. 300 State Street is the first piece in the River Place project, which anticipates four additional residential and mixed-use buildings, as well as other building projects. The State Street project is expected to be completed in late summer with leases beginning in August. “We’ve got a pretty good list of people who are interested now,” Kittrell said. “We will be taking lease applications in the next month or two, and we anticipate we’ll have a (waiting) list for several years.” The retail and residential synergy in a downtown area is well documented, Kittrell said. The more stores, restaurants and bars, the more people there are who want to live downtown. More people living downtown means more foot traffic in stores, restaurants and bars. “It just helps to continue the momentum of merchants, bars and restaurants,” said Carol Lilly, executive director of Community Main Street Cedar Falls. “It provides a whole other market for those businesses.” After the 300 State Street project is complete, the 200 State Street project will begin. It will feature residential units and amenities aimed at couples and singles. > continued on page 29 wcfcourier.com/progress
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KEY to LANDSCAPE
Cedar Valley looks to river as economic development tool By TIM JAMISON tim.jamison@wcfcourier.com and TINA HINZ tina.hinz@wcfcourier.com
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illions of dollars were spent decades ago on flood levees to protect Waterloo and Cedar Falls from the Cedar River. The cities and private developers now are spending more money on riverfront development to help save their downtowns and jobs. “From the genesis it was recognized we needed to do something to bring us more into a competitive environment both locally and nationwide,” said Dan Watters, president of the Waterloo Development Corp. “We had to have the amenities that are in tune with what the younger generation required, both business people and employees,” he added. “We had to change the image of our community to created the environment where people want to come downtown.”
ings — are in the works. Mayor Buck Clark said it’s incumbent now for community leaders to capitalize on the investment. “We are very cognizant of the fact that we built it but people aren’t just going to come without us actively marketing it,” he said. Still, Clark sees evidence already that the investment is paying off. “Certainly John Deere would not have made the investment in Waterloo — $100 million plus into remodeling their foundry and other sites — without our investment in ourselves,” Clark said. “The SportsPlex would not be in progress if we had not done that. “Also the John Deere museum, riverfront housing, the whole TechWorks project and FDP’s (planned) $50 million investment in the TechWorks absolutely would not have happened,” he added. “They were not going to do that without us developing the downtown and the riverfront.” Community Planning and Development
The WDC’s Watters said work remains. An effort is underway to connect Brinker Lake in George Wyth State Park to the Cedar River, add more docks in downtown and possibly construct a marina. “By virtue of what’s transpired and as we come to completion with some of these things — the cut into Brinker Lake, more docking on the river, the SportsPlex — we’ll take a time out to re-evaluate what we have and what the next steps should be,” Watters said. “It’s an evolutionary process and it needs to continue to be so. “It’s not the end, it’s just the beginning,” he added. “There’s more work to be done. It’s going to take the next generation to continue to move this forward.” Upstream in Cedar Falls, community leaders and private developers also are looking to capitalize on the river. The much-anticipated River Place development broke ground in early December. The first phase is expected to be done by early fall and includes 21 loft residences at 300 State St.
“More and more, companies are embracing the ‘cool communities, hot jobs’ type of thinking to try and draw new and retain existing employees,” Anderson added. The WDC is a nonprofit organization working in partnership with the city and urban planner Vandewalle and Associates to redevelop downtown Waterloo. The group’s efforts helped secure a Vision Iowa grant used to construct the RiverLoop Amphitheatre, riverfront trails and a bladder dam to raise the Cedar for boating. Other grant funds and gaming revenue helped construct the RiverLoop Expo Plaza and Public Market building and Mark’s Park. New portages to get boats around the dams, a new boathouse in Cedar River Exchange Park and private housing development on the river’s east banks followed. Construction is now under way on the Cedar Valley SportsPlex, and a new hotel and museum at the Cedar Valley TechWorks — repurposed John Deere build-
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Director Noel Anderson also said the key was maintaining “momentum.” “New construction always brings new construction,” he said. “I think the city’s investment has also helped to bring new commercial development along the Highway 218 corridor from 18th to Sixth street as well. “As we work to clean up dilapidated houses and structures, we are having developers and businesses work to build new buildings in their place. They see the city’s commitment, investment and construction in the area, followed by others in the private sector, and are joining in. “More and more, companies are embracing the ‘cool communities, hot jobs’ type of thinking to try and draw new and retain existing employees,” Anderson added.
Over the next three to five years, additional residential and mixed-use buildings, a business-class hotel, a parking ramp and an event center are planned to take shape on adjacent land. The Western Home Community’s active lifestyle residence Mill Race is progressing at the former Broom Factory site. “When we’re all said and done we’ll have almost 300 people living in the residences along the river in Cedar Falls,” developer Mark Kittrell said. Kittrell and Jean Fischer of Eagle View Partners LC have spent countless hours meeting with city officials and private and public agencies, including Community Main Street, the Greater Cedar Valley Alliance & Chamber and the Cedar Falls Historical Society. They are trying to collaborate with the efforts in downtown
PROGRESS 2013
KEY to LANDSCAPE Waterloo, as well. “They’ve been very respectful of the work that has preceded them on Main Street and the investment that has been made by the community as downtown has reinvented itself,” said Carol Lilly, executive director of Community Main Street. “I think all that helped move the project along.” The concept will breathe new life along the Cedar, utilized as an industrial waterway by mills and factories in the city’s early years, Kittrell said. “I’ve heard people say before that we’ve really built our town with the backs of all our buildings and our businesses and homes to the river,” he said. “We’re trying to change that and put the front doors to the river and get people to think of it as a recreational area.” He and Fischer were born in Waterloo but currently live in Cedar Falls. The idea for the project grew from their experience living in the 200 block of Main Street. “We loved it,” said Kittrell, who bought a condo but hopes to move back. “I don’t think people who live in the community have a sense of how much energy and excitement there is in either one of our downtowns. We’ve lived here our whole life and didn’t know there was so much going on. It’s really fun, it’s really amazing and that’s the experience we’re trying to create.” Mayor Jon Crews said the plans complement the heart of the city, a strong mix of retail, service, restaurants, entertainment and nightlife, as well as encourages walkable communities that fit with the Blue Zones Project health campaign. “More foot traffic — more people shopping downtown, eating downtown, living downtown and being downtown on a 24/7 basis,” he said. “Integrating the side streets into our design has been an initiative we have had for quite some time,” added Lilly. “It will just reiterate the importance of that moving forward to appeal to those residents and guests walking from the district to the river.” In addition to growth downtown, Washington, Island and Gateway parks are bouncing back since the 2008 flood. Mark Ripplinger, human and leisure services director, recently met with an architect to finalize the exterior design for the new Island Park Beach House. If all goes well and the project falls within budget, construction could start this summer and be completed within six to eight months. “We believe it will be heavily used again
PROGRESS 2013
for weddings, bands, family reunions, all those sorts of summer-type activities,” he said. Also, programs offered by the Cedar Falls Recreation Center, like Camp Cedar Falls, would be able to resume there. The municipal golf course at Washington closed following high water, and
wall may have deterred some people from checking out Washington Park improvements, as portions of the trail system were interrupted. “The facility should be in pretty good shape to use this summer,” Ripplinger said. “Right now I think it’s kind of still a little bit of a hidden gem. We’ll start pro-
TIFFANY RUSHING / Courier Staff Photographer
Waterloo Mayor Buck Clark believes public investment in amenities like the RiverLoop Amphitheatre, in the background, will help generate momentum for downtown and the local economy. plans to transform the space into a riverside park have been evolving over the past couple of years. A portion of Federal Emergency Management Agency money paid for five new rentable shelters, while another $30,000 was secured for playground equipment, at the entrance off of Ninth Street, through the Wellmark 3-Point Play program. For every successful University of Northern Iowa Panther football field goal and three-point basket during men’s and women’s basketball seasons, Wellmark contributes $300 and $20 respectively to support community health projects. Other park amenities include a boat launch, a relocated ball field and new fencing. A recreation trail around the perimeter and some grading and seeding are not yet complete, and outdoor exercise stations along the path are being eyed if funding becomes available. All structures are flow-through or constructed of durable materials, Ripplinger said. In the event of another flood, the city would only have to clean up debris and replace turf grass. Work on the Cedar Falls Utilities flood
moting it more this year.” Improvements to the city’s own chunk of the levy are in the preliminary study phase, according to City Engineer Randy Lorenzen. He hopes a year from now brings planned development and progress toward bid letting for the mile-long stretch from the Ice House Museum to the Western Home Communities just south of Ninth Street. At Gateway Park, the Sturgis Falls Celebration installed underground infrastructure for electricity, cable TV, Internet and security cameras to accommodate the relocation of annual festivities from flood-prone Tourist Park. Ripplinger envisions flattening out the slope along the shore, establishing concrete trails and creating areas for picnic tables below Gateway to allow easier access to the water’s edge. “Cedar Falls’ river corridor is pretty short compared to what Waterloo has, but I think the intention right now is to try to improve that as the River Place development proceeds,” he said.
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KEY to LANDSCAPE
A sporting chance SportsPlex, Build Our Ballpark, boost opportunity, economy in downtown Waterloo
COURTESY ILLUSTRATION
This artist’s rendition from the architectural firm InVision shows conceptually how the new Cedar Valley SportsPlex will look when construction is complete in downtown Waterloo later this year. By TIM JAMISON tim.jamison@wcfcourier.com
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ajor construction projects are boosting the wow factor at Waterloo’s play areas. And local youth sports organizers believe the completion of the Cedar Valley SportsPlex and continued improve-
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ments at local ball diamonds will provide more opportunities for local kids while turning the area into a mecca for tournaments and tourism dollars. “I think part of the reason we were able to raise the money was that the business community realized these would be bringing people in for tournaments on the weekend, which is good for business,” said Mark Gallagher, sports manager for Waterloo Leisure Services. “But the local people are going to be able to enjoy the fruits of the labor on Monday through Friday.” And the most high-profile of those projects is the $27.5 million SportsPlex that broke ground last year at Jefferson and West Third streets downtown. The 130,000-square-foot project — slated to open in late November — will include a fitness center, basketball courts, running track, a leisure swimming pool and a large indoor fieldhouse with synthetic turf. “It brings quite a few things to the table that we don’t have or don’t have enough of now,” said Rick Young, who is spearheading fundraising efforts for the SportsPlex, being built by the Waterloo Development Corp. “The biggest thing it brings is probably going to be the indoor soccer, baseball and softball in the winter in the fieldhouse,” Young said. “There’s no place in the region where you can do that unless you’re one of the three major college football teams in the state.” Major local employers have also stepped up with funding for the project, which they see as crucial to help attract and retain the skilled work force they need. “One of our biggest supporters is John Deere,” Young said. User groups, from seven-on-seven football programs to marching bands, also have their eyes on the fieldhouse. “This would provide an excellent playing surface for all of our programs,” said Craig Winger, club administrator for the Cedar Valley Youth Soccer Association. But the SportsPlex isn’t the only new game in town, thanks to the Build Our Ballpark program headed by advertising executive Bob Hellman. His efforts to raise money and develop firstclass youth baseball and softball diamonds reached a peak last fall with the completion of Riverfront Sports Park in Cedar River Exchange Park. A $900,000 overhaul ensured eight youth baseball and softball diamonds have new, irrigated playing surfaces, fences, electronic scoreboards, lights and bleachers, while sidewalks, signs and a new shelter are making the entire complex better for young players and their families. “What a beautiful park you’ve got sitting in Waterloo, Iowa,” said Steve Stafford, of Mid America Sports Group in Cedar Rapids. “There’s a lot of facilities around, but not like this one.” Stafford has been holding a Labor Day softball tournament for 14 years, starting in Manchester and then Grinnell before moving to Waterloo last year. The event brought teams from as far away as Canada, filling hotel rooms and boosting the economy. The fields will bring the event back this year. “They did things right and didn’t skimp on anything,” Stafford said. “I think the overall consensus was everybody was pretty happy.” Reed Spore, a partner in Full Count Sports Academy, which PROGRESS 2013
KEY to LANDSCAPE has a training facility in the Cedar Falls Industrial Park and sponsors a number of youth baseball and softball travel teams, echoed Stafford’s endorsement. “We held a tournament there last year and had great feedback from all the people that played in it,” Spore said. “It’s outstanding now that they’ve got the irrigation in it. We’re going to try to get some of those Cedar Rapids teams up here to play (next season).” Spore also attested to the tourism benefits the facilities bring to the table. “If you get people coming up from Des Moines it’s going to be a spend-the-night deal,” he said. “They’re going to buy gas, they’re going to eat at restaurants, they’re going to stay in hotels.” Thanks to tenants > continued from page 25 Responding to the demand for downtown living, Nelson Properties has plans for several more residential units in the Black’s Building in downtown Waterloo. Across the street to the east, JSA is in the midst of construction on two more units at 206 E. Fourth St., and has its sights set on renovating residential spaces from 223-229 W. Fourth St., which includes the former Walden Photo building. Nelson predicts further rapid growth downtown as interest in living there continues to rise. And that kind of uptick tends to spread beyond a downtown’s borders, she said. “The center of a city really is the lifeline of a city,” Nelson said.
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Now hiring > continued from page 9 Key to Success Building a skilled workforce requires preparing the next generation, but it also may mean teaching a veteran worker new skills. “Some of those older employees with the gaps may be the best employees,” Brunkhorst said. “They are going to be dependable.” Prepared workforce Northeast Iowa businesses also are working with high schools and colleges to make sure graduates are prepared for the workforce and aware of job opportunities that rely on math, science, engineering and technology skills. It’s also good for high school students to realize that local manufacturing jobs can offer a clean facilities and interesting work in robotics, Brunkhorst added. Economic development officials find they have to cast a wider net and rely increasingly on social media to market the potential of Northeast Iowa to prospective workers. Ideal candidates are often Iowa natives who, if given the right opportunity, want to come home, Matthias said. When it comes to building a strong workforce at home, Matthias thinks all Iowa residents should help spread the word. “I think it’s up to everybody to tell others about the Cedar Valley, which is a great way to work, play and live,” Matthias said.
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Waverly
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KEY to LANDSCAPE
Waverly enjoys a vibrant business district By KAREN BUSHANAM karen.bushanam@wcfcourier.com
Visionaries addressed everything from the need for more effective signage to a facade improvement program and upper fter flood water washed down story living. Bremer Avenue in the summer of Property owners interested in convert2008, business owners went into ing unused or underutilized upper story recovery mode. space plan to apply to the state for grant Today, Waverly’s downtown business money available to communities in coundistrict again looks forward to a bright ties most affected by the 2008 floods. future, according to Emily Neuendorf, The goal is to turn main street into a executive director of the Waverly Cham“livable community,” Waverly Mayor Bob ber of Commerce. Brunkhorst said, “where people are living “Now that we are growing out of that downtown, spending money, eating and time and are at a place where we are creating a life of its own in a downtown strong, it’s time to really rejuvenate the community,” Brunkhorst said. district,” Neuendorf said. The city also plans to work with busiAlmost every storefront is occupied ness owners to fund facade upgrades along Bremer Aveand “breathe new nue between Fourth life to our downtown Street west and Fourth because we do think Street east, which it’s a vibrant area we contains most of the can utilize,” Brunkhorst town’s main street and said. An effort will be accounts for about 70 made to pay attention businesses, Neuendorf to the structure and said. aesthetics of historic East of the Cedar buildings. River, business storeThe to-do list for fronts are at capacity. sprucing up the Of the three vacancies downtown includes on the west side, two addressing problems are being renovated with trees covering BRANDON POLLOCK / Courier Staff Photographer for prospective tenstorefronts. Other Downtown Waverly is home to a diverse cross-section of businesses. Proposals to add ants, Neuendorf said. top-ranking initiaupper story housing, fund facade enhancements and make other improvements are being “That’s huge for us,” tives identified during studied by the city. she added. the planning process Waverly’s downtown already sits in a nue and Ann’s Liquidation Service, thinks include the addition of pocket parks and strong position thanks to a diverse cross- is a smart move in meeting customer fishing and walking piers along the river section of businesses, officials and busi- needs. as well as intersections. ness owners say. The main street trifecta Support from residents is also key to a Significant changes to the streetscape of retail, dining and service strives to sustainable main street. are limited by Bremer Avenue’s designaappeal to an array of needs. “Waverly is such a friendly community, tion as a state highway — Iowa Highway Local businesses are in ample supply, and I think that’s what we’ve seen. They 3. That could change if a proposed downsome new, some decades-old. In recent really do like to go to the local businesses town bypass comes to fruition through years, Fareway opted to remain on West whenever they can,” said Vierow, who the Cedar River Parkway project, BrunkBremer Avenue when the company con- opened The Printery in 1992. horst said. structed a new store, and Walgreens also Property owners and entrepreneurs Improvements are also planned for selected a downtown site when it estab- also deserve credit for their resilience Kohlmann Park, which bumps up against lished a Waverly presence. and dedication, Neuendorf said. Waverly the Cedar River and the downtown. The Karol Simmer, the owner of the thread businesses and the chamber are also for- Greater Waverly Municipal Band is workshop Fiberworks on East Bremer Avenue, tunate to enjoy a good working relation- ing with the city to build a performance likes her location. The store sees regular ship with the city, she added. structure in the park that is part art, customers and also benefits from foot Future part functioning acoustic area for music traffic. A downtown master plan completed performances. “I think downtown is the best visible in 2012 will serve as a launch pad for According to Brunkhorst, visitors and and the least costly as far as rent,” Sim- future improvements. The study looked at newcomers comment, “It’s nice to see mer said. Bremer Avenue from Seventh Street West the interaction with the park and the Since the addition of restaurants like to Fifth Street East, as well as one block river.’” Water Street Grill and now perhaps with north and south of the main east-west the new cupcakery, Lizzy Mae’s Cupcakes thoroughfare.
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& Sweets, Julie Vierow, owner of The Printery on West Bremer Avenue, noted an uptick in foot traffic west of the Cedar River — one of the perks of a downtown location. “We have a lot of walk-in customers. We wanted to be easily accessible,” Vierow said. “Parking is good down here.” Special events like the annual Christmas Greetings on Main holiday kickoff in early December and Ridiculous Days, which offers promotions and activities in July, have become main street staples. More businesses are offering extended hours and opening on Sunday, which business owner Ann Seggerman, of Renewed Purpose on East Bremer Ave-
PROGRESS 2013
KEY to LANDSCAPE Area school district > continued from page 13 Key to Success “Our job is to get students ready for a career,” said Crystal Buzza, Waterloo Schools’ director of strategic partnerships. “This has come at a perfect time for us. We’re equipped and ready to take this initiative on and are excited about it, too.” The Waterloo district will find a place for the certification in all of the career interest academies that students must choose from during high school. “There really are a lot of great ways we can incorporate it; we just have to figure out what works best at each school,” Buzza said. Once it’s in place, all high school juniors or seniors will be encouraged to take the tests. Buzza noted the value of the math and literacy skills the tests demonstrate students have mastered. Those are “skills everybody needs in their careers, regardless of what it is,” she said. “We would not require any student to take (the tests). I would be surprised if a student wouldn’t want to attempt to take it. It’s just such an added benefit to their future.” The real world > continued from page 14 Key to Success additional biochemistry hours and Wartburg’s degree program has given its premed students an early advantage. Students are also put through the paces during voluntary mock interviews. Ellerbroek said they model the “stoic interview process to see how the students respond.” This year 10 of 13 Wartburg medical school applicants were accepted before Thanksgiving. The goal is by Christmas, Ellerbroek said. Allen College leaders rely on numerous advisory councils, including members of the profession, physicians and representatives from other colleges and professional organizations, to help guide program adjustments. “Over a period of years, with changes in nursing, they like to see nurses who are more prepared to get out there and take a leadership role, being able to delegate to other people and being able to communicate better with physicians,” said Nancy Kramer, vice chancellor of academic affairs. “Sometimes these things are frightening for an undergraduate. They have the underlying theory, but they may not necessarily want to call a doctor in the middle of the night.” Armed with those requests, Allen College leaders then work with nurse preceptors to ensure students are getting the handson training they need before graduation. And when employees aren’t equipped with the skills their employers are looking for, some businesses have turned to Hawkeye Community College for help. Pam Wright, the business development manager at HCC’s Business and Industry Center, works directly with businesses to identify specific training needs. “One of the struggles many businesses face is they will take the best person able to do a task and make them a supervisor,” Wright said. “They expect them to have the skills needed to manage others, but they need training. We are working with several businesses on that.” Wright works with the companies to identify their training needs and then creates a calendar of opportunities for the employees. Sometimes trainings is done on site for employees only. Other times employees are asked to participate in a larger training session for multiple businesses. PROGRESS 2013
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KEY to LANDSCAPE
Independence Municipal Airport’s extended runway brings more jets By JEFF REINITZ jeff.reinitz@wcfcourier.com
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ecent improvements have been paying off for the Independence Municipal Airport. “We just redid everything at the airport. Essentially everything is new here,” said Jonathan Walter of Walter Aviation, which took over as the fixed base operator for the airport in July. Before the switch, Walter had worked for the former FBO. Beginning in 2006, the airport, which goes by the FAA call letters KIIB, embarked on an expansion project. It extended its runway from 4,000 feet to 5,500 feet and added a new full-length parallel taxiway. “Once you’re over the 5,000-foot threshold, you can get more jet traffic,” Walter said. “A lot of the private jets that fly around typically, if it’s less that 5,000 feet, you start restricting who can come in and out of your airport.” He said the added length has meant an increase in jets. The airport also upgraded its instrument approaches, which help planes to land in bad weather. The old system used an A.M. radio signal to broadcast the runway’s location, and planes’ instruments would show an arrow pointing the way through the clouds. Walter said the outdated A.M. approach wasn’t very accurate and has been replaced with a new GPS-based system. “With the upgrades, we added a GPS approach to each end of the runway, so no matter which way you come in to land, you have a GPS-guided approach that’s very precise and brings the aircraft down to about 300 feet of the ground,” Walter said. “That’s very critical for the jet traffic because they are going pretty fast, and the people they are bringing in want to do business today, not tomorrow when the weather is better,” he said. Other projects have included a new terminal building with public lobby, phone for pilots and a weather information system to plan for flights. Walter’s company sells aviation fuel and offers other services for pilots and hosts flying lessons for aspiring pilots. These improvements, which were completed in 2009, bumped KIIB up into the enhanced services airport classification, one step under commercial service ports like Waterloo, Cedar Rapids and Dubuque. The Independence Municipal Airport is the only enhanced stop in Northeast Iowa. Walter said the status is a bonus for economic development in Buchanan County because businesses often look at airport facilities when they consider setting up in a community. Daily traffic at the airport can range from one or to operations to up to 60 on a busy day. He said the flights are split between lessons, local pilots, business visits and medical flights taking patients to other states for treatment.
PROGRESS 2013
KEY to LANDSCAPE
Growth spurt | Cedar Valley Industrial areas continue to develop By TINA HINZ tina.hinz@wcfcourier.com
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or businesses looking to relocate, the Cedar Valley is ready. Industrial and commercial areas in Cedar Falls, Waterloo and Evansdale continue to grow. Officials agree the central location, proximity to highways and incentives help make the area attractive. Menards and Scheels are big-ticket marquee projects in Cedar Falls that “everyone has seen and is aware of,” according to Bob Seymour, Cedar Falls community services manager. Both stores opened this spring — Menards at 1125 Brandilynn Blvd., and Scheels next to the Target store on Viking Road. “Those will have a significant impact on that whole area,” he said. The nearby industrial park also had a good year. Seymour pointed to projects in 2012 like a $4.5 million addition to a refrigerated warehouse at Martin Bros. Distributing, 406 Viking Road, and the Hilton Garden Inn, on Nordic Drive in the Cedar Falls Industrial Park. Smaller projects include a building for Xpressions, a screen printing and embroidery business at 602 Commerce Drive, and another built by Iowa Direct Equipment, Seymour said. About 80 acres owned by the city are available for immediate development utilities in place. That area primarily is west of Hudson Road. A few lots remain in the original park between Iowa Highway 58 and Hudson Road. Nearly 30 acres is designated for technology and corporate land. The completion of West Ridgeway Avenue between Hudson Road and Highway 58 widened the road to four lanes and provided access from the southern end of the industrial park. Chancellor Drive also was extended into Ridgeway down to the roundabout to disperse traffic to more areas. The construction of Prairie Parkway is expected this year to establish a north-south connection between Greenhill and Viking roads. On the north end of the city, phase one of the north industrial park area was completed in 2012. That involved building the park, which has 15 lots, along with a retention pond, infrastructure, grading and road improvements. The East Central Iowa Co-op is the only tenant so far. The next step is the design process to reconstruct Leversee Road, from the industrial park to Lone Tree Road, and Lone Tree Road from Leversee toward the interchange with U.S. Highway 218. “We are working on a couple of out-of-state companies, and we’re optimistic something will happen here in 2013,” Seymour said. “We would expect as the industrial park grows that the Lone Tree Road intersection would probably become a pretty decent area for commercial and services.” Waterloo is working to follow Cedar Falls’ model and has taken initial steps by extending Shaulis Road. The city is buying farmland for a future industrial park southeast of the U.S. Highway 20-Ansborough Avenue interchange. Tax-increment financing revenue is being used to acquire small chunks at a time. About 50 acres have been secured with the option of acquiring another 100 over the next four years or so, said Noel Anderson, community planning and development director for the city.
“We’re looking at some larger projects to try to get that area kick started,” he said. “I think it really opens up a whole new corridor in south Waterloo for residents and businesses alike.” The Country Club Business Center on the southeast corner of Ansborough Avenue and San Marnan Drive has seen the construction of the Christensen, Christensen & Freeseman dental offices, which relocated from 847 W. Fourth St. Kimball & Beecher Family Dentistry on Hurst Drive opened last year. MidAmerican Energy is building a new substation on Shaulis between Ansborough and Kimball Avenue for more electrical power in south Waterloo in preparation for development. “A little bit of the, ‘If you build it, they will come,’” said Anderson. “You have to get the infrastructure in place.” The former Waterloo Greyhound Park area is becoming a hot spot as well. The site is 40 acres. “We’re hoping to see that redeveloped potentially this year, probably torn down and something new built there,” he said. “It’s kind of wide open and a nice big site right there at the interchange.” The land is zoned industrial and is located at the interchange of Highway 20 and U.S. Highway 63, which could accommodate everything from offices to retail to industrial. The TIF district also encompasses about 100 acres owned by Harold Youngblut and another 40 to 50 acres by Rick Young on the other side of Highway 63. > continued on page 34
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PROGRESS 2013
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KEY to LANDSCAPE Rydell > continued from page 18 Key to Innovation Rydell officials say a sales team of 40 at the Waterloo store takes orders from customers by phone, email and in person. Customers can also order online at www.rydellauto.com, eBay and Amazon.com. Parts are shipped from Evansdale directly to customers or to other distribution centers for delivery. Bruce Anderson, president of the Iowa Automobile Dealers Association, said Rydell’s surplus parts business helps other dealers because they can reduce costs. “They’ve found a niche,” Anderson said. “Other dealers are thrilled to have those parts in their backyard. It was a huge overhead item. “They came up with a business model that’s growing, providing jobs and making it easier for others to get parts,” he added. “It’s a great deal for the state and regionally, a true Iowa success story.” The Evansdale location has 17 employees working two shifts. Evansdale Mayor Chad Deutsch said the added jobs are good. Attracting a cornerstone business in a new industrial park is even better. Since the warehouse was built, several other businesses have followed. Only one lot remains. “Development breeds development,” Deutsch said. “Just being a pace-setter is more important than anything.”
Growth spurt > continued from page 33 Real estate agent Jim Sulentic, investor Brent Dahlstrom and their local general contractor Tracy Rokes of Rokes Construction Service have teamed up to build a 40,000-square-foot warehouse in the South Port industrial park owned by Martinson Construction near the Waterloo Regional Airport. The facility is located along Geraldine Road, which recently was extended to open up another four or five lots. “If we get this rented out, we’ll probably build another one,” said Sulentic, who said warehouse space for big companies like John Deere is hard to come by. Scott Martinson of Martinson Construction said just more than 10 acres are left to fill, and he is in talks with prospective tenants. The France-based Laforge Industries was the first building that opened at 2950 Geraldine Road in 2010. “You’re in the middle of everything,” Martinson said. “You can get on the highway and go to Waverly. You can go to Cedar Falls. It’s a real good location.” Anderson said interest in the Northeast Industrial Area, which covers the industrial park near the John Deere Donald Street site and Tyson Fresh Meats plant, has prompted the city to look at platting more land. Activity in the former Rath Packing Co. meatpacking district continues as the city demolishes blighted buildings, some of which are being replaced by small businesses. The area also is home to the newer human services campus, including Operation Threshold, Department of Corrections and Northeast Iowa Food Bank facilities at Lafayette and Elm streets. “We’re seeing some good infill development along Highway 218, primarily from about Ninth Street to 18th Street” as well as the Crossroads area around San Marnan Drive and the TechWorks site near the downtown John Deere operations, Anderson said. Further east in Evansdale, the Prairie Industrial Park, on Doris Drive just north of Highway 20, has one 1.5-acre lot left. The 13.5-acre park was established in 2010 with its first tenant being Rydell Chevrolet’s auto parts distribution warehouse. That was followed by the nearly completed Midwest CNC Services and Millbridge Cabinets Inc., currently under construction. Most recently the City Council approved a development agreement with Nichols Construction Inc. of Jesup, which is building a manufacturing, storage and office building. A second phase of the industrial park, a 75-acre parcel just to the east across Evansdale Drive, is in the works. A major travel center expressed interest in buying the property and selling unused land — possibly about 60 acres — back to the city. That deal, however, has “kind of stalled a little bit,” as the travel center finishes work on a couple of other stores, Mayor Chad Deutsch said.
Building boom > continued from page 21 Key to Innovation $6 million warehouse expansion at Martin Bros. Distributing Co. are still going on. “We had a very good year in 2012 and, looking at it statewide, tracking projects that are out for bid, I think it was fairly stable,” Peters said. “I think it started strong but then tapered off. “I’m cautiously optimistic about 2013, but I usually am.”
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PROGRESS 2013
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