prairie business april 2011

www.prairiebizmag.comwww.prairiebizmag.com

April 2011

WOMEN IN BUSINESSFRAMING SUCCESSpg 22

TECHNOLOGYCustomers switchingtelephone services pg 40

MONEYFinancial planninghelps create‘good fortune’ pg 43

ECONOMICDEVELOPMENTTelework a positivedevelopment inEmployment pg 41

Community Spotlight:Bemidji , MN

Gateway to diversitypg 26

Company Spotlight:Regency Hotel Management

pg 16

ARCHITECTURE/ENGINEERINGpg 18

MANUFACTURINGpg 20

LEADERSHIPInnovation: Asmarter way ofdoing things pg 30

SALESMARKETINGOur mobile lifeline pg 7

Christine Hamilton - Managing Partner Kari Newman Ness - CEO

May st

st

131May

brought to you by:

4 Prairie Business April 2011

Volume 12 No. 4

16

18

20

22

26

6 From the Editor’s Desk

7 Sales and Marketing -Our Mobile Lifeline

8 Women in Business

8 Matthew Mohr

10 Prairie News

14 Prairie People

Company Spotlight:Regency Hotel ManagementRegency Hotel Management has worked its way to

being one of the top 100 management companies in the

nation. And that is just the start.

Cover Story:Architecture andEngineering - LEED design facilityconstruction increasingBusinesses are always looking at the bottom line and

when constructing a new building if there is a higher

upfront cost for a LEED certified facility, many would

balk at that. Now, things are changing.

Cover Story: ManufacturingManufacturers bouncing backManufacturing experts will tell you that the depth of

recession in the industry depended on two things. One

was the industry the manufacturer was serving and how

they were prepared for it if something happened.

Cover Story: Advice from top womenin Business.Prairie Business magazine is featuring women

who are leaders in the business communities around the

three state region of North Dakota, South Dakota, and

western Minnesota.

Community Spotlight: Bemidji, MNGateway to Diversity!Bemidji, MN has more than just a timber industry. It has

more than just a tourism industry.

30 Leadership and Management –Innovation: Smarter ways of doingthings

40 Technology - Customers switchinghome and business telephone services

41 Economic Development – Telework apositive development in employment

42 Viewpoint

43 Money - Financial planning helpscreate ‘good fortune’

46 By the Numbers

Energy: Hydrogen has future potentialRight now, production of ammonia used for fertilizer andoil refining are the two largest uses of hydrogen. However,many experts in the field believe that hydrogen can beused as a potential replacement for transportation fuels asa direct replacement or as a feed for fuel cells in electricvehicles.

Energy: Determining where oilrevenues go is anything but simpleWhile nearly every other state in the nation mustdetermine what to cut from their budgets, North Dakotais faced with deciding how to spend the vast revenuesgenerated from the oil industry. But legislators are findingthat allocating money where it is needed most, andassuring substantial revenue for years to come is no small task.

Next MonthIn May, Prairie Business magazine will focus on local tourism industry, discuss howtechnology is developing an entrepreneurial spirit, and talk about how corporateevents impact our region.

On the airJoin Prairie Business magazine editor Alan Van Ormer and host Merrill Piepkorn onTuesday, April 5 at 3 p.m. on any Prairie Public radio station to hear more about theApril cover stories. To listen to Prairie Public, visit www.prairiepublic.org/radio/hear-it-now.

On the coverChristine Hamilton, Managing Partner, Christianson Land and Cattle Ltd. Photo byBrian Rupert, 44Interactive. Kari Newman Ness, CEO, Newman Signs. Photo by JohnM. Steiner Photography, Jamestown, ND.

32

36

Contents

Creative. Innovative. Entrepreneurial. Spirited.AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION INSTITUTION und.edu

“The University of North Dakota is agreat place for a faculty member topursue research and scholarship. Itallowed me to write Pathophysiology:A Clinical Approach, Second Editionwith Carie Braun. The book is alearning tool, providing studentswith the knowledge necessary tounderstand complex conditionsthat they would encounter in theirexperiences as health professionals.Our intent was to illustrate conceptsof disease that don’t just affect oneorgan or organ system, but that haveeffects throughout the body. Thisapproach is designed to promotethe clinical application of textbookknowledge in the care of people withconditions that are both complexand common, those that afHlict manyNorth Dakotans and are signiHicantproblems nationally. Conditionssuch as diabetes, obesity, Alzheimer’sdisease, cardiovascular disease andcancer are but a few of the conditionsthat are prevalent in North Dakota,as well as in the rest of the UnitedStates.”

Cindy M. AndersonPh.D., R.N., WHNP-BC, FAAN

Associate Professor of Familyand Community Nursing

Associate Dean for Researchand Ph.D. Program Director

Robert Wood Johnson FoundationNurse Faculty Scholar


Mike Jacobs, PublisherAlan Van Ormer, EditorScott Deutsch, Sales ManagerTina Chisholm, Production ManagerBeth Bohlman, Circulation ManagerKris Wolff, Layout Design, Ad Design

NNAATTIIOONNAALL AACCCCOOUUNNTT SSAALLEESS//SSAALLEESS MMAANNAAGGEERR::Scott Deutsch 701.232.8893

Grand Forks/Fargo/Moorhead/northwestern MN

SSAALLEESS::Brad Boyd 800.641.0683

Bismarck-Mandan/ west central ND/north central SD

John Fetsch 701.232.8893Fargo/Moorhead/eastern ND/western MN

Jeff Hanson 605.271.4446Sioux Falls/southern SD/southern MN

EEDDIITTOORR::Alan Van Ormer 701.232.8893

[email protected] AAddvviissoorrss::Dwaine Chapel, Executive Director, Lake Area Improvement Corporation;Bruce Gjovig, Director, Center for Innovation; Lisa Gulland-Nelson,Communications Coordinator, Greater Fargo Moorhead EDC; Dave Haan,Director of Public Relations and Digital Development at Lawrence &Schiller; Dusty Johnson, Chief of Staff for South Dakota Gov. DennisDaugaard’s office; Brecca Kramer, General Manager of Odney; MatthewMohr, President/CEO, Dacotah Paper Company; Nancy Straw,President, West Central Initiative

Prairie Business magazine is published monthly by the Grand ForksHerald and Forum Communications Company with offices at 8083rd Ave. S., Ste. 400, Fargo, ND 58103. Qualifying subscriptionsare available free of charge. Back issue quantities are limited andsubject to availability ($2/copy prepaid). The opinions of writersfeatured in Prairie Business are their own. Unsolicited manuscripts,photographs, artwork are encouraged but will not be returnedwithout a self-addressed, stamped envelope.

Subscription requests:Free subscriptions are available online to qualified requestorsat www.prairiebizmag.com.

Address corrections:Prairie Business magazine PO Box 6008 Grand Forks, ND 58206-6008 [email protected]

Online: www.prairiebizmag.com

An SBA Award Winning Publication

For daily business newsvisit prairiebizmag.com

My most recent experience was at the Fergus Falls, MN 7thAnnual Business and Community Expo. Prairie Businessmagazine had the privilege of displaying a booth during the

Expo and that provided me even more of an experience than justattending.

From my spot, I was able to talk to the many people that strolledthrough the building. Like the other 100 or so businesses that werepresent, it was an opportunity to tell a story to not only the businesscommunity, but also those who were able to find out something theydidn’t know about a business.

I’m sure that each business had a chance to hear about therelationships that have been developed over the years. From themagazine’s perspective, people were talking about stories they had readover the years, people who they have met that worked for the magazine,and were also able to provide ideas for future use.

And I’m sure that happened to each of the other booths in thebuilding. What a great way to find out about a business! The peoplethat are stopping by these booths are the actual ones who read ourmagazine or deposit money into a bank or even get their backs adjustedin a timely manner.

My thought is participating in conferences is about as grassroots asa business can get. Personally, I don’t see how businesses can go wrongbeing part of these experiences. This is a great way to promote abusiness. And there are many more of these types of events coming upin the future. Be sure to check out our Conference Connectionswebsite at www.prairiebizmag.com to see when the next one is coming.There is always a chance that I or someone from the magazine will seeyou there. PB

Reaching out to businesses is done in a variety of different ways. Oneway that I see that seems to be appealing for the business communityis being part of a conference where you are able to display a boothand showcase your business.

From the editor’s desk

Conferences great place to network

Sales/Marketing

Call 1-800-908-BANK or visit Bremer.com.

Member FDIC. ©2011 Bremer Financial Corporation. All rights reserved.

The economy is made up of millions

of businesses – large and small.

But we’re here to focus on the most

important one. Yours. Let’s seize

opportunities and get growing. Together.

Building your business. Strengthening

our economy. Let’s take action.

Your business. Our bank.

Let’s make our ownpositive indicators.

prairiebizmag.com 7

In many businesses verticals, the value andimportance of a smartphone rivals or surpasses thedesktop PC. With Verizon finally offering the

iPhone on its network – and with Verizon 4G comingsoon – mobile computing in our market is set toexplode. Nielsen estimates that 31% of all mobilephone users today have smartphones. Thanks toplayers like Android, Apple and Facebook (yes, they arerumored to be developing their own smartphone),smartphone adoption shows no signs of slowing down.

The recent uprisings in Egypt and thegovernment’s knee-jerk reaction of “shuttingoff” Egyptian mobile and Internet connectivitywas fascinating to watch play out. While cleverworkarounds by the Egyptian people allowedTwitter and Facebook to keep us aware of thehappenings on the ground, some argue that therevolt of the people was started by social chatterand the desire to unite “in real life”. And muchof that chatter happened via mobile devices.

Businesses thrive on mobile connectivity.The workplace is no longer just a brick andmortar presence, and this is especially true forthose of us in sales and business developmentroles. Our office is in our cars, at the coffeeshop, in the waiting room, and in front of theTV. What would happen should ourconnectivity be banished indefinitely? Thepeople of Egypt – and most recently the peopleof Bahrain and Libya - experienced firsthandthe chaos caused by an instant loss of cell andInternet connectivity. If you think it couldn’thappen here, you are probably right. Butpondering the sudden absence of mobiletechnology reveals it’s worth to themarketplace. Could your business survive?Could you survive? The future is here, and thefuture is mobile. PB

Our mobile phones are no longerphones – they are powerful,micro-computers that happen tohave a phone built into them.

Mobile Lifeline

PAUL TEN HAKENPresident

Click Rain, [email protected]


Various occupations throughout her business careerhave prepared Connie Ova to be the ChiefExecutive Officer of the Jamestown/Stutsman

Development Corporation.Ova enjoys making things happen and seeing results

and growth in the community. “We have so manyopportunities that we have to let the world know about,”says Ova, who has been CEO since 2003. “I really enjoyworking with sole proprietors and small businessesassisting them to see the possibility of making theirdreams become a reality.”

The Jamestown/Stutsman Development Corporationwas organized to develop employment opportunities toimprove business conditions and advance the interests ofthe City of Jamestown, as well as Stutsman County byimplementing and sustaining an organized effort to attractnew businesses and industry, support existing businessesand industry, and encourage new business starts.Jamestown/Stutsman Development Corporation’s focus isprimary sector job creation.

One challenge is that economic development can havesuch a broad definition that at times we try to be everythingto everybody and that is virtually impossible to do so stresslevels can get high, Ova explains. “Communication,

although tremendously improved, is always a challengebecause it seems that no one knows what it is we do eitheruntil they need us or until they perceive we are doingsomething wrong,” she explains. “JSDC is funded 100percent by taxpayer dollars and so we have a fiduciaryresponsibility to do our very best to do what’s right for thecommunity and not everyone agrees with what’s right. Onthe personal side, taking time to do all that’s needed to doin this job cuts into family time and that’s one thing I don’tlike about it versus your 8-5 position.”

As economic development evolves, Ova is seeing morefocus on the “softer” side of economic development.“Specifically, the need for economic development officialsto provide assistance with community development on alarger basis than we have in the past although JSDC triesto stay within the parameters of “jobs” and primary sectorbusiness we have leaned somewhat into assistance withretail and service businesses using the Bank of NorthDakota Flex PACE program,” she says.

Ova states that lessons she has learned are beingreinforced in her economic development role. “Nothingthat is worth doing is easy. You can’t please all the people allthe time,” she says. “Be fair and honest in all that you do.”Alan Van Ormer - [email protected] PB

Connie Ova: Enjoys makingthings happen and seeing results CONNIE OVA

CEO, Jamestown/Stutsman Development Corporation

As a business grows or enters new markets, it is veryhard to keep employee statistics comparable, andcertain measures can make the expansion look

bleak. Sales per employee, profit per employee, andaverage expense per employee are interesting numbers toevaluate and can shed light on prior decisions.

In business school it is easy to put numbers togethershowing dramatic success. If an enterprise has 1,000employees achieving certain revenue, bump the number to1,500 employees and derive 50% more revenue and profit.In the real world of business, it is much harder to achievethe same relative performance, especially when you are asmall business with few employees, but as a businessmatures, the ratios can be kept up and should beunderstood.

A small two person business brings in $400,000 inprofits. Wanting to expand, the owner faces the challenge

of hiring an additional employee which will cost thebusiness salary, benefits, and other overhead. Can theowner assume profit will rise to $600,000 once the newperson is hired? In all likelihood, the new person will costthe business initially, not generate immediate profits. Thisdilemma is faced by nearly every business at one time oranother. Of course, the expectation must be once the newthird person is fully trained and able to do the job, profitswill go up. But how long will it take? A much largerbusiness can better expand hiring and expect profits inreturn, but regardless of what kind or size of business,people statistics are important to watch, understand, andmeasure. Just because you have a certain number ofemployees doing a certain volume, you cannot assume amultiple of your employment base will automaticallygenerate a multiple of your revenue. PB

MATTHEW D. MOHRCEO,

Dacotah Paper [email protected].

Women in Business

Business Advice

Employee statistics can help

prairiebizmag.com 9


Press releases and photos about business news and events in North Dakota, South Dakota andwestern Minnesota can be e-mailed to [email protected] for considerationPrairie News

SBA ANNOUNCES GRANTS AVAILABLE FORSTATE TRADE, EXPORT PROMOTION

States can apply for grants from the U. S. SmallBusiness Administration to support efforts to increaseexporting by small businesses. The State Trade and ExportPromotion (STEP) pilot grant initiative is authorized toprovide up to $90 million in grants to states over the nextthree years.

The STEP pilot program is aimed at increasing thenumber of small businesses that want to export andincreasing the value of exports for those small businessesthat currently export.

USDA CHANGES VALUE-ADDED PRODUCERGRANT PROGRAM

USDA Rural Development has announced changes tothe Value Added Producer Grant program that willprovide additional opportunities to beginning andsocially disadvantaged farmers. The change will assistindependent producers, farmer and rancher cooperatives,agricultural producer groups, and will support local andregional supply networks.

Revisions include providing up to 10 percent fundingto beginning farmers and socially disadvantaged farmersand ranchers, providing up to 10 percent funding to localand regional supply networks that link producers withcompanies marketing their products, giving priority forgrants to beginning farmers, socially disadvantagedfarmers and ranchers, and operators of small andmedium-sized family farms, and extending granteligibility to producers who market their products withintheir state or within a 400-mile radius.

BISMARCK STATE COLLEGE NUCLEARPOWER TECH PROGRAM FIRST FORINDUSTRY CERTIFICATION

Bismarck State College’s Nuclear Power Technologyprogram was accepted earlier this year as the first onlineprogram approved by the Nuclear Uniform CurriculumProgram (NUCP) for the non-licensed operator track.Students completing the associate degree in NuclearPower will receive a nuclear industry standard certificateand can substitute education for training at a nuclearfacility.

The NUCP ensures the workforce is trained and inplace at the right time by organizing industrypartnerships with two-year colleges. NUCP is managed bythe Nuclear Energy Institute (NEI), which approved BSCas a Non-Licensed Operator program.

As part of the NUCP process, BSC was required toobtain a Primary Utility Partner for the nuclear program.The college affiliated with Exelon Corp., the largestowner/operator of nuclear plants in the United States.Without a Primary Utility Partner, students could notreceive a nuclear industry standard certificate.

MILLION DOLLAR GRANT AWARDED TOSTART-UP COMPANY

The National Institutes of Health has awarded a two-year $1.08 million competitive grant to Dr. Brian Slator,North Dakota State University computer science professorfor his faculty start-up venture, WoWiWe Instruction Co.

The group develops internet-based educationalsoftware.

The Small Business Innovation Research grant throughNIH’s National center for Research Resources will be usedto develop a multi-user virtual biology environment fordiscovery-oriented science education.

NORTH DAKOTA 2010 EXPORTS UP 15PERCENT

North Dakota’s exports increased from $2.2 billion in2009 to $2.5 billion in 2010, a 15 percent increase, withU.S. exports increasing 21 percent over the same period.

The top North Dakota exports in 2010 were front endshovel loaders ($246 million, a 55 percent increase over2009), crude oil ($232 million, an 8 percent increase over2009), and canola oil ($204 million, a 124 percent increaseover 2009.)

Canada continues to be North Dakota’s number oneexport destination, with a record 62 percent of NorthDakota’s exports going to Canada (1.6 billion.)

SBA ANNOUNCES GRANT TO SMALLBUSINESS DEVELOPMENT CENTERS

Small business in North Dakota will soon have greateraccess to critical resources to help them start or grow theirbusinesses and create jobs with the help of a $325,000grant to SBA’s North Dakota Small Business DevelopmentCenter.

The funding was provided under a key provision ofthe Small Business Jobs Act of 2010 signed by thePresident last September, which provided $50 million ingrants to SBA’s Small Business Development Centersacross the country to support job creation and retentionwithin the small business community by providing in-depth business counseling and advice to entrepreneursand small business owners.

Mailway Printers hastaken the lead in digitalprinting with theacquisition of a XeroxColor 800 Press. Thedevice is the first of itskind in South Dakota,according to TerryNelson, president ofMailway Printers.

What makes theXerox 800 dry ink pressunique is its ability toprint a clear, dry inkthat creates a spotvarnish effect on thefinal product. It’s thefirst-ever digital press inthe region able toprovide that type ofhigh-end productionvalue.

The Xerox 800 canprint on paper up to13” x 19,” but unlikeother digital devices onthe market today,Mailway’s new Xerox800 press can print onpaper as heavy as 130-lb – cover somethingvery unusual for digitalprinting.

MAILWAY

PRINTERS

BRINGS

NEWTECHNOLOGY

TO REGION

prairiebizmag.com 11

www.thetitleteam.com

Abstracting

Loan Closing

1031 Exchange Services

Title Insurance

Oil, Gas and Mineral Title Services

Offices in:

Bismarck

Dickinson

Killdeer

Mandan

Minot

Mohall

Watford City

Williston

Residential | Commercial Statewide Services

You’ve got plans.Well, doodles, actually, but they’re shaping

into a great business idea.

When you’re ready to make your idea a reality,WEST CENTRAL INITIATIVE can help with advice on how tostart or expand a business in west central Minnesota, plusloan programs for qualiSed applicants. For more info,visit loans.wcif.org or call Dale Umlauf at 800 735-2239.

+... #&*(&,2 -%&/ 1 $&,"'* $-33* 1 ###/#)!$/0,"

.


Press releases and photos about business news and events in North Dakota, South Dakota andwestern Minnesota can be e-mailed to [email protected] for considerationPrairie News

NETWORK CENTER ELITE TECH COMPANYNetwork Center, Inc. has been named to the

inaugural CRN Tech Elite 250. The Tech Elite 250 servesas the industry’s definitive list of VARs with both deeptechnical expertise and premier certifications. NetworkCenter, Inc. has been recognized as a best-of-breedintegrator who has invested in technical know-how andearned premier certifications in the area ofinfrastructure for North American Customers.

Network Center, Inc. has been providing products,service, support, and expertise to clients since 1986.

MADC WEBSITE FOCUSES ON EMPLOYERS,EMPLOYEES

The Minot Area Development Corporation launcheda new website that focuses on bringing job seekers andemployers together. The website is a free service tobusinesses and provides direct access to skilled jobapplicants in various job classifications living across theUnited States. Funding was provided by the Partners inMarketing Grant, available through the North DakotaDepartment of Commerce.

MADC’s workforce development website wasdeveloped to streamline the hiring process and providecommunity information and job opportunities to out ofarea job seekers.

In 2010, workforce development staff collected andposted 960 resumes on the MADC website.

USD FOUNDATION MAKES PORTFOLIOGAINS WITH 2010 INVESTMENTS

Despite a worldwide downturn in the economy lastyear, The University of South Dakota Foundation found away to maximize investments and announced that itspooled endowment portfolio, which totals $140 million,had a one-year return of 16.4 percent at the end of 2010.

According to the Independent ConsultantCooperative (ICC), this return ranks The University ofSouth Dakota Foundation’s portfolio in the top onepercent of the ICC’s 22,000 client portfolios.

The ICC also ranked The Foundation’s 10-year returnof 7.2 percent also ranks in the first percentile while thefive year return of 6.3 ranks in the ICC’s third percentile.

NORTHLAND RECEIVES GRANTNorthland Community and Technical College has

received a $150,000 grant from the Otto BremerFoundation for health care simulation training.Northland will use the money to purchase a high qualityanatomical manikin and associated equipment.Paramedic, nursing and respiratory therapy students willuse the manikin initially, with expansion to otherdisciplines to follow.

Northland has over 2,000 students enrolled innursing and allied health programs.

St. Paul-based Otto Bremer Foundation awardsgrants for community improvement in Minnesota,Wisconsin, and North Dakota.

COMPANIES ENTER PARTNERSHIPMultiband Corporation has selected InterceptEFT to

provide processing services for customer payments nationally.Under the agreement, InterceptEFT will collect and

process electronic payments for more than 40,000Multiband partners and subscribers across the nation. Aspart of a strategic partnership, Multiband is DIRECTV’slargest master system operator in multiple dwellingunits, and also services 20 percent of all DIRECTV’ssingle-family households.

NORTH DAKOTAREPORTED AN

INCREASEOF

8,900JOBS (PLUS 2.4PERCENT) IN2010. IN THECOMPARISON,

THE U. S.PERCENT

CHANGES IN2009 AND2010 WEREMINUS 4.4

PERCENT ANDMINUS 0.8PERCENT,

RESPECTIVELY.SOURCE: LABOR MARKET

INFORMATION CENTER

TECHNOLOGY AND EDUCATION CENTER BEING COMPLETEDLATER THIS YEAR

A 100,000 square foot St. Alexius Technology and Education Center has beenunder construction and is expected to be completed in December.

The facility will house non-patient care departments and free up space formore clinical services on the main campus in Bismarck, ND.

“We wanted to incorporate innovative state-of-the-art ‘Green’ technology,”states Andrew L. Wilson, CEO and President of St. Alexius.

A recent Department of Energy Technical Study estimated energy savingspotential and simple payback periods for 15 technology options. St. AlexiusTechnology and Education Center is incorporating the top four of thesetechnologies the DOE evaluated. The estimated return on investment is fouryears or less for advanced controls and the ground source geothermal systemwith a dedicated outside air system and chilled beams having an immediatepayback.

SAUER DIRECTING NEWADMINISTRATION DEPARTMENT

Dave Sauer, formerly manager ofprocess operations at the Great PlainsSynfuels Plant, will direct Basin Electric’snew Administration department, includingboth parent and subsidiary humanresources, information systems andtelecommunications (IS&T), corporateservices, internal auditing, andprocurement divisions.

Basin Electric CEO and GeneralManager Ron Harper’s appointment ofSauer follows a realignment of duties andresponsibilities in several areas of thecooperative completed earlier this year.

ALTRU APPOINTS CHIEFOPERATING OFFICER

Brad Wehe is the Chief OperatingOfficer for Altru Health System.

As COO, Wehe is responsible for thecoordination and oversight of dailyoperations of the health system. Heparticipates with the President, ChiefExecutive Officer, and Board of Directors incharging the course of the health system inmeeting community needs.

SIOUX FALLS ECONOMICDEVELOPMENT GROUP NAMESLEADER

Jack Hopkins, President and CEO ofCorTrust Bank, N.A., a $440 million family-owned, South Dakota based, independentcommunity bank, has been selected as thenew board chair of the South DakotaDevelopment Foundation.

Other leaders on the executivecommittee are Fred Slunecka, Avera Health,vice chair; Mark Mickelson, Mickelson &Company, LLC, secretary; Tom Simmons,Midcontinent Communications, treasurer;and Cathy Clark, Wells Fargo, serving aspast Chair.

SCHILL BECOMES VICE PRESIDENTOF PRAXIS STRATEGY GROUP

Mark Schill has been promoted to vicepresident of the Praxis Strategy Group.

Schill will expand PSG’s economic anddemographic analysis services forcommunities across the nation. Through his11 years of service at PSG, Schill has providedexpertise in strategic and business planning,marketing strategy and demographicresearch, as well as developing web sites andmanaging an online community.

NORTHERN HILLS HOSPITAL CEORECEIVES AWARD

Sherry Bea Smith, Chief ExecutiveOfficer at Lead-Deadwood RegionalHospital, was named the American HospitalAssociation’s South Dakota 2010 GrassrootsChampion.

The Grassroots Champion award singlesout one hospital leader from each statewho, over the previous year, effectivelydelivered the hospital message to electedofficials, helped broaden the base ofcommunity support for hospitals, andadvocated tirelessly on behalf of patients,hospitals, and the community served bythose hospitals

NDSCS PRESIDENT APPOINTEDNATIONAL COALITION OFCERTIFICATION CENTERS BOARDMEMBER

North Dakota State College of SciencePresident Dr. John Richman has been namedTrustee of the Board of National Coalition ofCertification Centers (NC3), a coalition ofeducation and business partners working todevelop standardized, industry-drivencertifications across the transportation,energy, and aviation industries.

The College has worked in conjunctionwith NC3 since its establishment in 2009 andserves as one of the 11 Leadership Schools.


Please e-mail photos and press release announcements of hirings, promotions, awards and distinctions received by business leaders in North Dakota, South Dakota and western Minnesota to [email protected] for consideration.

DAVE SAUER

BRAD WEHE

JACK HOPKINS

MARK SCHILL

SHERRY BEA SMITH

DR. JOHN RICHMAN

Prairie People

AVERA SACRED HEART HOSPITAL NAMES TWO DIRECTORSAvera Sacred Heart Hospital, located in Yankton, SD, has named two directors to manage

departments within the health care network.Renee Tereshinski, RN, was named Director of Women’s and Children’s Services at Avera Sacred

Heart Hospital, while Kelly Schott, Pharm.D. was added as the Director of Pharmacy at AveraSacred Heart Hospital.

Tereshinski has been working as a nurse for the hospital for 17 years, while Schott worked atCarson Regional Medical Center in Carson City, NV, before accepting the position at Avera SacredHeart Hospital.

RENEE TERESHINSKI, RN KELLY SCHOTT, PHARM. D.


GGooiinngg GGrreeeenn

800-323-7583

www.dacotahpaper.com

Earth Friendly User Friendly Budget Friendly

"We're not just Blowing Hot Air" Ask Us

Answers you can trust -

From people who care

701.746.6820701.841.1000

CommercialHistoricalIndustrialEducationalResidential

heppero

lson.com

Grand Forks, ND

Buxton ND

esidentialRtionalducaEtrialIndus

oricaltHiscialommerC

om

colson.

hepper

0001.148.1070286.647.107

onuxtB

and FrG

ND

orks, NDF

houstoneng.com

Engineering.Consulting. Solutions.

% Environmental% Transportation% Surveying% -(1, ),*,&"!$,#1

% '21,4 /,3"+4.,3% 5+#(.(!2&% ',0 ),*,&"!$,#1% GIS

Engineering.onsulting. Solutions.C Solutions.

oneng.thous

% lantemnorviEn% noittaropnsarT% ngiyevurS% 1#,$!"&,,*),1(-

% /,412'% 5+#(.(!2&% ),,0'% ISG

omconeng.

,3.,3"+45+#(.(!2&

,&"!$,#1*


Gloriann Kueter, Corporate Director of Sales andMarketing for Regency Hotel Management in theheadquarters in Sioux Falls, SD, says that there are

a couple of exciting opportunities for the future; one beingthe development of a new product hotel brand.

“In addition, because of the effect of the economicslowdown, we are looking at emerging in the high barrierslower markets,” she states.

Formed in 1965, Regency Hotel Management, LLC andits affiliates currently own and/or manage more than 50hotel and 15 restaurant properties in 11 states. With morethan 70 years combined hospitality experience within themanagement team, their expertise includes hotels, resorts,indoor water parks, convention centers, full-servicerestaurants, and concessionaire management of stateparks, which include cabin rentals and a variety ofoutdoor recreational activities.

Although Regency Hotel Management operates undervarious franchises including Intercontinental HotelGroup-Crowne Plaza, Radisson, Hilton, Marriott,ClubHouse and Best Western, and several independenthotels and resorts, they have a company loyalty programthat is offered at the majority of their hotels and resorts.Their STAR Business Program is an easy and money-

saving hotel program that is available to companies andindividual travelers. STAR members receive automatichotel discounts plus a list of extra benefits, such as lastroom availability at the discounted room rate, VIP guestcheck-in and complimentary bottled water in their room.

Management services include full-service operations,sales and marketing, accounting, financial management,feasibility consulting, asset management, and acquisitionmanagement. The company’s hotels and resorts areprimarily full-service that include guestrooms and suites,conference centers, restaurants and bars, health and fitnesscenters, as well as a variety of outdoor recreationalfacilities; tennis courts, swimming pools, horseback riding,golf courses. “We’d be remiss not to mention that atCuster State Park Resort, Regency excels in management ofentertaining family fun also, such as buffalo jeep safarirides and chuck wagon cookouts at Custer State Park.”Kueter explains. “Through the years, Regency HotelManagement has learned how to manage a variety offacilities, large and small, and activities.

There are more than a dozen properties located inSouth Dakota and a half dozen combined in North Dakotaand Minnesota. The remainder of the properties is spreadout throughout the mid-section area of the United States.”

Regency Hotel ManagementCompany Spotlight

Success in hotel managementRegency Hotel Management has worked its way to being one of the top 100 managementcompanies in the nation. And that is just the start. Many in the company see opportunitiesthat can be taken advantage of in the future.

Plymouth Crowne Plaza (photo courtesy of Regency Hotel Management)


Company Spotlight

Late in 2010, Regency Hotel Management purchasedthe Historic Grand Lake Lodge in Grand County, CO. All56 renovated cabins, restaurant, bar, gift shop, andrecreational activities will be open for tourism in 2011 andreservations are being taken now.

In addition, Regency Hotel Management just openedthe Best Western Plus Bloomington Hotel at the Mall ofAmerica and partners with the Mall of America inattracting visitors to Bloomington through coopmarketing. Also, the Pierre ClubHouse Hotel & Suites isslated to open in Pierre, SD in December next to the BestWestern Ramkota Hotel.

Much of the success of the company revolves aroundthe employees and the fact that Regency HotelManagement is able to retain many of its key employees.There are more than 5,000 employees in the company,with more than 4,900 located in the hotel and resortproperties.

In addition, it also helps that Regency HotelManagement owns its own properties and also managesproperties for third party owners. Our philosophy forsuccess in third party management is “We manage allproperties as our own in order to generate the cash flow

necessary to make them financially viable,” Kueter states.One of the things that make Regency Hotel

Management unique is that it operates with little debt.“The economic slowdown did not affect us as much as itdid so many other hotel companies,” Kueter explains.

Prior to the economic slowdown, Regency HotelManagement was able to sell 15 older properties. Inaddition, Kueter says the hotel industry closely follows theeconomy. “The hospitality industry has been the mosterratic since our inception 45 years ago,” she says.

Possibly the most significant change is that thecompany has started working with more concessions andmanagement of state and national parks. For instance,Regency Hotel Management manages Sylvan Lake Lodge,State Game Lodge, Legion Lake Lodge and Blue BellLodge; all located in Custer State Park in the Black Hills ofSouth Dakota.

Also, Kueter states that Regency Hotel Management hasimplemented a multifaceted green program on theproperties to minimize the footprint that the companyleaves behind.

Alan Van Ormer - [email protected] PB

South Dakota properties:The Lodge at Deadwood, Deadwood, SDSylvan Lake, Custer State ParkState Game Lodge, Custer State ParkLegion Lake Lodge, Custer State ParkBlue Bell Lodge, Custer State ParkRock Crest Lodge in Custer, SDBest Western Ramkota Hotel, Aberdeen, SDBest Western Ramkota Hotel, Rapid City, SDBest Western Ramkota Hotel, Pierre, SDBest Western Ramkota Hotel, Sioux Falls, SDClubHouse Hotel and Suites, Sioux Falls, SDBest Western Ramkota Hotel, Watertown, SDNorth Dakota properties:Best Western Ramkota Hotel, Bismarck, NDRadisson Hotel, Bismarck, NDMinnesota properties:Best Western Plus Bloomington Hotel at Mall of AmericaThe Hotel Ivy, Minneapolis, MNArrowwood Resort and Conference Center, Alexandria, MNHilton Garden Inn, Mankato, MNCrowne Plaza Minneapolis West, Plymouth, MN

Other Regency operated properties include:Best Western Ramkota Hotel, Casper, WYArrowwood Resort and Conference Center, Okoboji, IABridges Bay Resort, Arnolds Park, IAMarina Inn and Conference Center, Sioux City, IAPark Place Hotel, Traverse City, MIClubHouse Inn & Suites, Albuquerque, NMClubHouse Inn & Suites, Topeka, KSClubHouse Inn & Suites, Chicago (Westmont), ILGrand Lake Lodge, Grand Lake, COLOCATIO

NS


COVER STORY

LEED design facilityconstructionBusinesses are always looking at the bottom line and

when constructing a new building if there is a higher

upfront cost for a LEED certified facility, many would

balk at that. Now, things are changing.

Ganapathy Mahalingam, Associate Professor in theDepartment of Architecture and LandscapeArchitecture at North Dakota State University, says

the construction of LEED certified buildings is definitelyincreasing. “They are convinced there will be savings,” he says.

Leap Chear, LEED Architect for EAPC ArchitectsEngineers, adds that it is estimated that one in 10 clientswhen they come in to talk to architects bring up LEEDcertification or LEED criteria. Chear, who is also thecurrent treasurer of the North Dakota Chapter of theUnited States Green Building Council, states that on aglobal scale, green buildings are gaining ground.

“In North Dakota, we are starting to see more projectsthat are going this route,” he explains. “A lot come fromthe owners who are being more educated and more awareof different building methods and materials. The mainsavings for owners who are operating facilities are reducedenergy consumption, water efficient fixtures, energyefficient light fixtures, low VOC materials, and that feel-good feeling that comes from being good stewards of ourplanet.”

A LEED certified building is better designed to beresponsive to the environment by using natural materialsand natural resources pertaining to different criteria thatincludes Sustainable Sites, Water Usage Efficiency, Energyand Atmosphere, Material Resources, IndoorEnvironmental Quality, Innovation and Design Process,and Regional Priority Credits. There are also four differentcertifications – LEED certified, LEED Silver, LEED Gold,and LEED Platinum. Credit points are attributed to thedifferent levels: Certified (40-49), Silver (50-59), Gold (60-79), and Platinum (80+).

The average increase in cost for LEED certifiedbuildings is $2.50 per square foot. However, Mahalingamadds that the savings will wind up at $6.50 per square foot.Mahalingam says the owners will see immediate savings,but those savings also depend on size of building, type ofbuilding, and the systems incorporated in the building.

He also states that it is important to remember thatLEED certification is saying that the architects have usedsound design practices when designing the building. “Whathas changed is the accountability for performance for thebuildings beyond cost, construction, and safety,” he explains.

In North Dakota, Renaissance Hall, the facility in whichMahalingam is located, is the first LEED certified facilitydesigned by Michael J. Burns, an architect in Moorhead,MN. There are at least three LEED certified projects inNorth Dakota with at least four or more projects to benewly certified next year.

Henry Carlson Company is a general contractor basedout of Sioux Falls, SD that does work in the followingmarket segments: health care, commercial, education,cultural, retail, and industrial. There is also an office inAberdeen, SD, and on April 1, the company opened anoffice in Fargo, ND.

Meredith Larson, who is LEED accredited, has seen anincrease in LEED facilities being constructed in SouthDakota. “The projects we have been involved with so farare projects where the owners think this is a wiseinvestment,” he says.

These projects include Heartland Consumers PowerDistrict in Madison, SD and the Rural Learning Center inHoward, SD. “Private owners want to do LEED buildings.They have done their homework and they havedetermined this is a good route for them to go,” Larsonexplains. “In the case of Heartland, they wanted to providean example to their customers.”

In addition, the state of South Dakota passedlegislation a couple of years ago requiring all new statedevelopments to be LEED Silver. One project that HenryCarlson worked on is the Wellness Center at the Universityof South Dakota in Vermillion, SD.

“On the public side, there is a consciousness at the state– particularly in the Office of State Engineer – want toimprove the quality of their buildings in terms of energyconsumption and design,” Larson states.

Sean Irvin has been a Principal and an architect withTSP in Sioux Falls for 24 years. In the company’s eightlocations across the upper Midwest, Irvin states that thecompany has had a long tradition of sustainable designthat started before the latest trends.

TSP has worked on the Honey Creek Resort in Iowa,which is one of the first hotels in the region to attainLEED rating, as well as a school in Minneapolis and multi-use office in Rochester, MN. Both attained LEED Silver.

“More clients than ever have an active interest in

ARC

HITEC

TURE

(continued on page 20)


COVER STORYARC

HITEC

TURE

sustainability and want to at least take sensible advantageof the long-term cost savings it can provide,” Ervin states.“When people see the cost of the LEED documentationprocess, it may seem daunting, but it is a proven processthat most people have heard of and shows a commitmentto the concepts that LEED promotes.”

Ervin adds that the costs for the facility are worth itdown the road when they save significant energy dollarsover the life expectancy of the building, improve usercomfort of the occupants of the building, and the sensethat an owner has taken a step beyond just recycling inorder to minimize their carbon footprint.

“The most measurable savings will be in energy savingsover the years of owning the building,” Ervin explains.“This is coupled with an extra level of operationalizing themechanical and other systems of the building, “he says.“This commissioning process verifies that the goals of thefacility are being met and works to make all of the systemswork in concert to achieve those goals. Of course, thereare a number of less measurable goals, but businesses stillnotice the difference in their employees and other users oftheir facility as well.”

Besides generating a payback, there are several reasonswhy LEED experts feel the higher upfront costs are worthit in the long haul. These include stewardship issues, aswell as water and energy conservation. A lot of the creditsare related to heating, lighting, cooling, and air quality. Inaddition, companies are finding and reusing materials.

For example, Heartland Consumers Power Districtfound old bleacher seatings and recycled them into a wood

ceiling. Another example, in Howard, materials from theformer American Legion building and gymnasium weresalvaged for reuse in the project.

Also, the upfront costs depend on the type of projects,as well as the certification level that businesses are lookingat. “There have been studies that as little as three to fivepercent upfront costs may just be looking at thecertification level,” Chear says.

Chear believes that a big issue is that energyconsumption is huge. “Owners are making more of ademand upfront in the design stage,” he explains. “Moreprominent projects across the United States extensivestudies seeing that operating costs is substantial savings.Upfront costs pay for that in 3-4 years depending on thesize of the project and implemented systems.”


COVER STORY

MANUFA

CTU

RING

Not all companies were prepared,” says Bob Kill,President and CEO of Enterprise Minnesota.“Agricultural products and food processing and

packaging did well. The building trade suffered and hasn’tcome back yet.”

Dycast Specialties Corporation, based in Starbuck, MN,is one manufacturing company that was rocked by thedownturn but has quickly made a recovery. The companythat produces die castings for Ordinance, Telecom,Datacom, Hand tools, Electronics, and Electric Motorsindustries. They saw recession impact at least six monthsbefore others. And on the other side, started moving

forward six months before other companies started tocome out of the recession.

“The depth of the recession was astonishing,” says JonHaavig, President of DyCast Specialties. “In August 2008,we had to take some serious actions for cutting back staff.That was the initial shock for people. When we werereacting to the initial downturn, most other areamanufacturers were still doing pretty good business.”

CFO Ed Bolas adds that they were seeing signs of arecession because orders were slowing down and customerswere lowering their inventories to the bare minimum.

“February 2009 was so slow we shipped a week’s worth

Manufacturers bouncing backManufacturing experts will tell you that the depth of recession in the industry depended ontwo things. One was the industry the manufacturer was serving and how they wereprepared for it if something happened.

“

(continued from page 18)



DesignFor The Test Of Time.

P h o n e : 7 0 1 . 8 3 7 . 8 7 3 7w w w. a c k e r m a n - e s t v o l d . c o m

Engineering affects everything from thewater that flows from your kitchen faucet tothe roads you drive on to the buildings whereyou live, work and shop. We provide a fullline of high quality engineering services:

. *,-1+/0,*-*!01 -1& *,-$$!( %1"!1%%,!1"

. 3-1& /3-11!1" -1& &%'%30/2%1*

. 2)1!(!/-3 %1"!1%%,!1"

. #-*%, ,%+0),(%+

. +*,)(*),-3 %1"!1%%,!1"

. (01+*,)(*!01 %1"!1%%,!1"

Our experienced team delivers engineeringservices designed for the test of time.


of product for the whole month,” Bolas states.Then in July 2009, they saw an 80 percent increase in sales,

but Haavig’s belief is that was the final burn of customerinventories. July and August 2009 were both good months,and then there was a 10 percent pullback in September. Therewas steady growth throughout the rest of the year and 2010continued strong. In 2010 there were $6.4 million in sales andthe employee base bumped up to 43 FTEs.

BAKER BOY NOT AS IMPACTEDBaker Boy in Dickinson, ND, is one manufacturer that

was not as impacted by the recession. “We are blessed to bein the food business,” says Guy Moos, President of BakerBoy. “Even during a recession, many food manufacturersincluding Baker Boy continued to grow.”

Moos adds that because the company makes basiceveryday bakery products that bakeries, schools,restaurants, and C-stores use each day, it did not see asignificant impact. Baker Boy markets frozen bakeryproducts across most of the northern part of the country tofoodservice, bakeries, convenience stores, and other foodmanufacturers. The company has been in business for 56years, has revenues of $35 million, and continues toexperience steady growth in sales.

“Our two greatest challenges are availability of labor insouthwest North Dakota and the dramatic increase incommodities,” Moos states. “To help meet increasedproduct demand while working in an environment of tightlabor, we are investing in a $13 million expansion focusingon greater automation.”

RECESSION STRIKES BOTH SIDES OFTRUCKING BUSINESS

The recession did hit Luverne Truck Equipment, Inc. in

Brandon, SD on both sides of its business. The company,which manufactures quality truck accessories, is tied toboth the automotive and heavy duty truck business.

Luverne’s response to the economic conditions over thepast three years has been to expand manufacturingcapability by adding new equipment to increaseproductivity. Luverne has actually increased its marginseach year since 2008.

“Starting in 2008, when our business was slowing downdue to the declining economic conditions facing theautomotive industry, Luverne began a program of focusingon increasing its market share,” says John Schulzetenberg.“As the market improved in 2010, the increased marketshare helped increase business significantly.”

INDUSTRY HELPS MANUFACTURERS BECOMEPRODUCTIVE

Industry groups like Dakota MEP, based in Bismarck,ND, spend much of their time working with manufacturingcompanies to be productive.

Eureka ‘Jump Start’ is a program that helps companiestaking action on innovation to grow and become moreprofitable. MEP has partnered with Eureka Ranch, theleaders in growth and innovation with clients quantifiedover $2.5 billion in new ideas and improved existing ideas,to bring the program to companies in the United States.

MEP has also partnered with RTI International, one ofthe world’s leading research institutes, to help with‘Technology Scouting.’ ‘Technology Scouting’ is a service tosearch outside a company’s normal channels to findsolutions for a specific unmet technology-based need.


COVER STORYMANUFA

CTU

RING

COVER STORY

WOMEN

IN BUSINES

S

Framing Success:Advice from top women in business

Prairie Business magazine is featuring women who are leaders in the business communities around the threestate regions of North Dakota, South Dakota, and western Minnesota.

CHRISTINE HAMILTON is a managing partner for Christianson Land and Cattle Ltd, locatednear Kimball, SD.

Hamilton credits her mother as being a far-sighted, practical woman who instilled qualitiesthat helped her in her career, as well as encouraged her to broaden her horizons.

“Attitude is everything. My advice would be to always try to be willing to learn new things,willing to go the extra mile, and be friendly along the way,” she adds. “Develop leadership skillswhenever you can, as we are never done with becoming better. And finally, give back, or pay itforward. It’s the most fulfilling way to live, I’ve discovered.”

(continued from page 20)


Eric Praus, Baker Boy


With JLG, one of the Nation’s Top PerformingHospitals* performs even better.*According to a 1996 HICA Study.

SANFORD ADDITION TO UNION HOSPITALMAYVILLE, ND

HEALTHIERHEALTHCARE

“Getting LEED Certified makesus environmentally friendly andgoodcitizens to theenvironment.It is also a huge savings in energycosts. It’s nice to set an example.”Phillip Siek, Sanford Health

W W W . J L G A R C H I T E C T S . C O M


KARI NEWMAN NESS is the CEO of Newman Signs in Jamestown, ND.Her family and life’s experiences have shaped who Ness has become. “I’ve witnessed the necessary

work ethic, the courage and risk-taking, and the interaction with employees, customers, landowners,bankers, lawyers, politicians and all the other people who help run a successful business,” she says. “Mymom raised her five children by example. Confidence, kindness, and sharing whatever gifts you haveare important to her.”

Ness states that it is important to be a solid employee. “By that I mean finish what you start, say whatyou mean and work hard. Be that person who can be counted on,” she explains. “The early years ofyour careers will go by quickly, be patient. If you are good at what you do you will be rewarded.”

LISA CARLSON is the CFO of Sanford Health in Fargo, ND.In her career in the health care industry, Carlson has had a variety of different people throughout the

years including her mother, father, and sister, as well as other significant women and men that she haveworked with during the career. “They have all made impressions on me,” she says.

One thing she recommends is to do a job that is enjoyable and enjoy the people that you work with.“You are going to spend so much time with the people you work with,” she states.

In addition, eventually young women will have families. “It is important to figure out how she (andher spouse) is going to do that together,” she adds. “Also, take advantage of opportunities that arepresented to you, advance your skills and experience, and learn to recognize good leadership when yousee it.”

MELISSA LAGE is the Chief Marketing Officer for SJE-Rhombus in Detroit Lakes, MN.Lage says her parents valued hard work, honesty, and integrity. “SJE-Rhombus’ employee-ownership

plan honors these values since each employee has a personal stake to work together to provide excellentproducts and service to our customers,” she says.

Her advice to young women coming into the business profession would be to believe strongly inproviding solutions for your customers. “When you solve a customer’s pain you build long-lastingrelationships!” she exclaims.

MICHELLE LINTZ is the Executive Director and Senior Vice President of the Rapid City Conventionand Visitors Bureau in Rapid City, SD. Lintz credits Julie Jensen who was the Executive Director of theConvention and Visitors Bureau when she started in the business. “She encouraged me to apply for herposition when she retired to raise her children. I will always acknowledge her as one that taught anddemonstrated to me the basics and value of this industry.”

Lintz gives three pieces of advice, which she also hopes has been conveyed clearly to her daughters:communicate, be kind, and give 100 percent.

“Customer service is an extremely significant component in this business. People need attention andinformation about your services.”

MARY JO VAN HORN launched BluHorn, LLC in March 2009 out of Bismarck, ND. Van Horn credits Wayne Kranzler, one of the owners of KK Bold, as someone that has hugely

influenced her career. “I learned a lot from Wayne, especially the importance of media/agencyrelationships. He introduced me to the media business and for that, I will be forever grateful.”She’s alsoinfluenced by Tami Rust, Senior Vice President of Marketing & Communications for Starion Financial.

Her best advice for women entering today’s profession is researching and networking. “Reach outto business owners, especially women owners and listen to their challenges and success stories. Mostbusinesses take longer and cost more, so plan for the best but be prepared for the worst. And nevergive up.”

CATHY CLARK is the President of Wells Fargo Bank in Sioux Falls, SD.Clark states her parents believed in a strong work ethic and education,” she says, adding that

throughout her 30-year career in banking, she had a couple of mentors that she observed and countlessothers throughout that community that she admired.

Her advice to those women entering the business profession is that you cannot have it all and that isOK. “Your priorities may change as your own dynamics change with family and work-life balance,” sheadds. “Knowledge is power when it is shared, so regardless of where you are, constantly challengeyourself to grow and learn. Ask someone to mentor you or ask for their advice. Women have awonderful perspective and willingness to share.” PB

COVER STORYW

OMEN

IN BUSINES

S(continued from page 22)

Nationally,

34%of all

businessesare at least

51% owned bywomen.


Bemidji, MN

Bemidji has been successful in forming collaborationsand partnerships to further develop our status as asuccessful regional hub,” says Lori Paris, President of

the Bemidji Chamber. Bemidji has been defying state and national trends.

During a time that most sales tax revenues are decreasing,Bemidji’s is increasing. The sales tax revenue was up 5.2percent in 2009 and is up 5.4 percent for 2010. More thana regional center, Bemidji offers a venue few can matchwith the Mississippi River, Lake Bemidji, and the naturalbeauty of the area.

March 1, North Country Health Services and SanfordHealth announced final approval of bringing the twoorganizations together.

Paul Hanson, President of Sanford Health of NorthernMinnesota, says the diverse workforce providesapproximately 1,300 jobs, as well as a mix of jobopportunities for individuals with all levels of experienceand training.

“Health care enterprises generally offer a good wageand benefit package that supports families and economicstrength throughout the region,” he says, adding that thevision for Sanford Bemidji’s future is to become theregion’s premier innovative rural health care deliveryorganization.

“This will mean significant investment in newprograms and services, technology and buildings. It willalso mean expanding our physical facilities and ourworkforce in order to support a growing scope of servicesreaching more patients throughout the region,” heexplains. “Sanford Health has committed $70 millioninvestment to the health care system in Bemidji in the next

ten years. In addition, Sanford has committed an initial $5million gift to our local Hospital Foundation. Thisinvestment will have a major impact on the local economyand the community’s health and wellbeing.”

In 2009, Bemidji established the ‘Central City Plan’ todevelop a realistic vision for the downtown area and the“Village at South Shore.” It is a 140-acre redevelopmentwith more than a mile and a half of lakeshore and includesamenities such as boat launch, public beach, and PaulBunyan all season trail along the lakeshore.

“Village at South Shore” also includes the SanfordCenter, as well as several hotels and more to come in thefuture. The 185,000 square foot facility features a 4,700seat hockey arena, as well as a 10,000 square foot ballroomand two 2,000 square foot meeting rooms.

Bob LeBarron, Executive Director of the SanfordCenter, says the hope is that by 2014 they will not need thebudgeted subsidies from the city of Bemidji to operate thefacility. “It has already had an impact,” he adds.

There have been special events nights, hockey matches,concerts and during that time LeBarron says therestaurants and other facilities in the community are full.

“I only see that continuing to happen more so inconvention side as south side development continues,” hesays. There are plans for a privately-owned hotel attachedto the Sanford Center that is expected to break groundearly summer and be completed within a year.

“The arena portion of Sanford Center is the quality oflife portion of building,” LeBarron states. “When theconventions start coming in two to four years down theroad that will bring new people into town. It will alsomean that businesses will need to hire more people and

Gateway to Diversity!Bemidji, MN has more than just a timber industry. It has more than just a tourism industry. Leaders of thecommunity, with a population of more than 13,000 people and more than 100,000 in a 50-mile radius innorth central Minnesota, see it as more of a diverse community and a strong regional hub.

Community Spotlight

“

SANFORD HEALTH

1,300BEMIDJI PUBLIC SCHOOLS

800BEMIDJI STATE UNIVERSITY

550 BETRAMI COUNTY

360JOHANNESON’S INC.

251KNIFE RIVER MATERIALS

190 HAVENWOOD CARE CENTER

150NORBORD MINNESOTA

141SYNERGY SOLUTIONS

140NORTECH SYSTEMS, INC.

117

MAJOR EMPLOYERS:

need to expand services to accommodate theincoming people from out of town.”

Sanford Center is the home of Men’s &Women’s Div I WCHA hockey program.More than 5,000 students attend BemidjiState University, a campus that offers morethan 65 majors and pre-professionalprograms. Northwest Technical Collegeprovides more than 40 different programsincluding new ones in environmentaltechnology, wind energy, and occupationalsafety.

“Bemidji State University’s economicimpact on the community is estimated atmore than $150 million a year,” reportsWilliam Maki, vice president for finance andadministration at the university. “That’s adirect result of spending in the communityby the university, its students, and campusvisitors.” Maki notes that over 2,000 jobs,both on campus and in the community, are aresult of Bemidji State’s presence in thecommunity.

Bemidji State successfully partners withthe city as well as with area business andindustry to help spur growth. “The city ofBemidji and the university have successfullypartnered to stretch resources and providethe region with facilities and services it mightnot otherwise have,” Maki says.

The 250-acre Bemidji Industrial Park,owned by the Bemidji Development



Corporation, is very well developed. Now, the city and the BemidjiDevelopment Corporation, has expanded the industrial park and addeda Second Addition providing more than 40 new parcels of shovel-readylots with lots varying in size from one acre to 50 acres.

The Bemidji Technology Park is a 60-acre research and technologypark for tech-oriented businesses. Currently, there are five tenants in thepark that offers advanced computer services, fiber optic networks andcommunications services, high-capacity backbone to the internet, anddeveloped infrastructure with underground utilities including three-phase electrical service and city water and sewer lines.

Paul Freude is the CEO and General Manager of Paul BunyanCommunications and Chief Manager of COOP Development. PaulBunyan Communications, in partnership with Beltrami Electric,constructed the Technology Park starting in 1997.

“The Technology Park was started during a time when high bandconnectivity was not available in our area and in Bemidji,” Freude says.At least 250 jobs reside within the Technology Park. “We were trying tobuild good jobs in the community and we did it,” Freude states.

Pinnacle Publishing is a telephone directory publishing company thatpublishes 243 publications in 34 states. Recently, the company increasedits workforce by 45 persons by adding 109 directories across the nation.

Rosie Berg, Marketing Manager for Pinnacle Publishing, says thecompany is helping spur growth by continuing to work with telephonecompanies across the nation. “There are many telephone companieslooking for a publisher to provide advertising solutions to theircustomers,” she says. “The more we grow the more the community cangrow. We can help Bemidji grow because we are providing moreopportunities for our employees.”

The Bemidji Regional Airport is the fourth busiest in the state behindDuluth, Rochester, and Minneapolis. The airport has three departuresdaily to Minneapolis and serves more than 21,000 commercial passengerseach year. The airport has a current $12 million project to upgrade

Bemidji, MNCommunity Spotlight

Make your meeting

Offering a beautiful northwoods,lakeside meeting setting, at an exceptional value.

The multi-use Sanford Center features a ballroom,seated arena, reception area and meeting rooms.

A variety of lodgings. Delicious dining.Unique recreations and cultural opportunities!

877-250-5959First City on the Mississippi

The Sanford Centeron Lake Bemidji

airport runways, navigational aides,lighting, and aprons. There is alsoan $8.9 million passenger terminalexpansion underway.

“The timber industry plays asignificant part of our economy inthe Bemidji area,” states MarcusWiechmann, Executive Director ofthe Joint Economic DevelopmentCommission.

Pete Aube, Lumber MillManager for Potlatch, says thatBemidji is still the lumber capital ofMinnesota. The industry has a

direct expense of more than $100 million a year and local company’spurchases woods from 100s of independent contractors. Half of thewood that provides raw material comes from public forests.

“For every one dollar spent to purchase public stumpage, 40 dollarsof economic activity is generated,” Aube explains. “Another MinnesotaDepartment of Natural Resources statistics shows that for every cord ofwood harvested generates $66 in tax income to the state. The incomefrom wood sold from the 2.5 million acres of public school trust landsin Minnesota generates returns for Minnesota’s 340 school districts.”

Aube adds that it is easy to see how the timber industry spurs growthin the region and will continue that into the future because of its forestmanagement. “In Minnesota, we only cut a third of the growth,” hestates. “There is opportunity in the state with forest management thatwe can increase our harvest toward the growth rate and capture the

Marcus WiechmannExecutive DirectorJoint Economic

Development Commission

Paul HansonPresident

Sanford Health of Northern Minnesota

Denelle HilliardExecutive Director

VisitBemidji

Lori ParisPresident

Bemidji Chamber


OUROURALL FIBER-OPTIC NETWORKALL FIBER-OPTIC NETWORKCOMBINES THECOMBINES THE BUSINESSBUSINESSCOMMUNICATION SERVICESCOMMUNICATION SERVICESYOU WANTYOU WANT --

TV / BROADBAND INTERNET / DIGITAL VOICE

218.444.1234 / 888.586.3100 / paulbunyan.net1831 Anne St. NW / Bemidji, MN 56601

-- WITH THEWITH THESPEED YOU NEEDSPEED YOU NEED

mortality and turn it into economic activity. There is real tremendousopportunity.”

Health care and the retail industry will continue to expand theeconomy of the Bemidji community. “When Bemidji hit that criticalpopulation level, we saw major retail come to town,” Wiechmann says.“There has been a major expansion in retail as we are now considereda regional retail center. Our retail service area has greatly expanded inthe last decade.”

Bemidji is unique in that the various government entities haveprovided a buffered economy, according to Paris. “We don’t experiencethe peaks and valleys,” she says. “It is not like we’ve been completelyimmune to tough times. But we seem to be a fairly stable economyand a lot of it has to do with our diversity.”

Much of the diversity is attributed to four seasons of tourism.There is always the summer season focusing on the water sports andthen the winter season focusing on snowmobiling and other outdoorwinter activities.

Then there is also what Denelle Hilliard, Executive Director ofVisitBemidji, calls spring and fall the ‘shoulder seasons’ of the year.“Summer and winter really operates itself,” she says.

Not only is the Mississippi River Headwaters a draw, Paul Bunyanand Babe are usually in the top 10 list of sites that people stop to see.The community is rich in fine and performing arts and culture. Theregion also boasts over 500 miles of trails and 400 crystal clear fishinglakes in a 25 mile radius adding to our and wide variety of tourismopportunities.



�� Newly Built Suites Hotel�� Free Hot Breakfast�� Free Weekday Dinner Social�� Free High Speed Wireless Internet�� Great Business Center�� Travel Reward Program

Ask AboutCorporate Rates!

- Or -$15 Off Weekends!

prbiz

Expires August 1, 2011. One discount per room.Some blackout periods apply.

engineering | architecture | land surveying | environmental serviceswww.wsn.us.com

alexandria | baxter | bemidji | crookston | grand forks | red wing | rochester

The Sanford Center meets B3-Minnesota State Building Guidelines.Engineering by Widseth Smith Nolting | Architecture by LEO A DALY, Houston

DESIGN FOReconomic, social, and ecological sustainability . . .

Sustainable Architecture

LEED® and B3 Design

Site Planning

Environmental Analysis

Low Impact Development

Building Energy Audits

Stormwater PollutionPrevention

»

»

»

»

»

»

»

DESIGN FOR

Sustainable Architecture

,laicos,cimonoce

LEED® and B3 Design

Site Planning

»

»

»

Rtsuslacigolocedna ...ytilibania

menta ysEnvironmental Analysis

mpac evelopmentelopLow Impact Developmen

ding tsergy ABuilding Energy Audits

utionmwater PStormwater PollutionionPreventPrevention

»

»

»

»

gneww

xelagnireenig | erutcetihcra | gniyevrusdnal | ne

ww.wsn.us.com

dnarg|notskoorc|ijdimeb|retxab|airdnaxsecivreslatnemnorivn

retsehcor|gniwder|skroffod

Many people think of innovation as the “next bigidea,” but it means so much more to the bestbusiness leaders. And to manufacturing leaders,

innovation is a mindset about the most practical ways toimprove a company. It is about finding a smarter andfaster way of growing productively and profitably.

Innovation is many things. It is leadership andsupervisory development, process improvement, adifferent marketing strategy, modification to a product,and the list could go on. Oftentimes the small steps ofinnovation will lead to the “next big idea.” This type ofinnovation is something that anyone can do by adopting amindset of continuous improvement, which allmanufacturers must do to stay competitive.

One great example of innovation is at RIE Coatings inEden Valley, MN. Their business is applying coatings forprotection and performance to a variety of surfaces, suchas ATVs and John Deere tractors, and other carbon steel,

stainless steel, zinc plating, aluminum, composites,plastics, rubber, copper, brass, and other ferrous and non-ferrous metals. Their innovation derives from theirenvironmentally sustainable process, which complies withall major environmental regulations on the books today.They’ve outmaneuvered competitors, many of whom stilluse only metal plating that generally creates hazardouswaste streams.

These many innovations have helped RIE secure newbusiness from a number of major accounts and increasesales by more than 30 percent over the past two years.

If business leaders spend time thinking about this typeof innovation, they will be ahead of the competition,improve the bottom line, and grow their businesses.

Ultimately, our success is decided by where our value iswith customers. It is innovation that helps us find thatvalue and turn it into real business results. PB

Leadership/Management

Innovation means a smarter way ofdoing things

BOB KILLPresident

Enterprise [email protected]

As president of Enterprise Minnesota, I am fortunate to visit withmanufacturing companies to hear about their business, products,markets, and key customers. It is all fascinating, but the most strikingpart is when conversation turns to innovation, as it always does.


We have people with balloon payments coming up, the value ontheir property has dropped and the banks therefore won’t beas welcoming to refinancing,” Hannaher says. “By the

government providing a 75 percent guarantee on a loan will make itmuch more attractive to the lender to help those businesses refinancetheir property.”

Hannaher recently attended an SBA-sponsored procurementconference in Jamestown, ND. The conference provided an opportunityfor small businesses to meet with government agencies for training, aswell as explaining products and services with the hope of contractsdown the road.

In an interview in Fargo, ND, Hannaher talked about the latestlegislation, which he terms as a ‘big deal’ for the SBA. “This legislationwas the largest legislative action in over a decade,” he says. “There are amulti-faceted number of issues that benefit small businesses.”

Under the leadership of the new administration the SBA isaggressively focused on capital access, counseling, and governmentcontracting. A major effort is being made to reach the goal of 23 percentof government contracting going to small businesses. “That is going tobe achieved and surpassed,” Hannaher states. “This means more jobs,more stability, and more economic growth in the small business

community. I think in everyone’s eyes the only way this country is goingto get out of the economic strife that we have been confronted with. It issmall business that creates new jobs. It is small business that leadsinnovation, competitiveness.”

An important part of Hannaher’s job is being the eyes and ears, andat times the voice of the Administration regionally. Region VIII consistsof North Dakota, South Dakota, Colorado, Montana, Utah, andWyoming.

“If we can gather good ideas from small businesses out here andbring those good ideas back to Washington, we can formulate betterpolicies for the nation,” Hannaher explains. “I am also the voiceexpressing the goals of the administration and how we would like to seethe country move forward.”

The most challenging aspect is finding opportunities for smallbusinesses that are on the cusp of success or failure, Hannaher adds.“Trying to fix those everyday small problems can be a grind,” he states.

One thing Hannaher would like to tell the business community is notto be afraid of talking with the SBA. “We have so many creative options,”he says.


One important point Region VIII Small Business Administration Regional Administrator Daniel Hannaher takes from the new SmallBusiness Job Acts is a temporary program which allows businesses to use 504 lending program to refinance commercial real estate.

New SBA legislation is ‘big deal’

32 Prairie Business Energy April 2011

Electrical vehicles are a logical step,” states MichaelReese, Renewable Energy Director, University ofMinnesota Renewable Energy Center in Morris,

MN. “It will help the hydrogen economy. Because of thestorage issues with hydrogen there is a national grouplooking at promoting and using hydrogen anhydrousammonia (NH3) as a storage medium for hydrogen.Anhydrous ammonia is the second most transportedavailable chemical in the world and is hydrogen-rich.”

Michael Holmes, Deputy Associate Director forResearch at the Energy & Environmental Research Centerin Grand Forks, ND, says experts are looking at how to usehydrogen in wider applications.

“Technology improvements are moving us toward thetargets for economics and performances in the areas ofproduction, infrastructure and end uses. There are a lot ofsuccesses being accomplished,” explains Holmes, who alsomanages the National Center for Hydrogen Technology.“Each time improvements are made that reduce costs andimprove reliability, you increase the number of hydrogenuses that make sense commercially.”

Holmes states there are growing numbers of marketsthat use hydrogen including stationary power, back-uppower, and materials handling such as forklifts inwarehouses because of noise and air quality issues. “Fuelcells are making great strides in these applications,” hestates. “Instead of being completely powered by battery, itcan be powered by a hydrogen fuel with or without a smallbattery system.”

At the South Dakota School of Mines and Technologyin Rapid City, SD, members of the Center forBioprocessing Research & Development (CBFD) arefocusing on dark fermentation for biohydrogenproduction. “Dark fermentation appears to be an idealmethod of choice to produce hydrogen at a high rate fromrenewable sources, including wastes,” says Dr. LewChristopher, Director of CBRD.

South Dakota School of Mines and Technology wasrecently awarded a grant to investigate the development ofscalable and mobile technologies for biohydrogen,biodiesel, and hydrocarbons production fromlignocellulosic waste biomass.

“The overall objective of this program is to developnovel technologies for production of biomass-derivedbiofuels suitable for deployed ground power to help theAir Force achieve their target of 18 percent biofuelproduction of current fuel consumption,” Christopherstates. “The biofuels technology would be utilized in theself sustaining, zero-host nation and environmentallyfriendly supply of fuels produced with increased use ofrenewable lignocellulosic biomass in a cost efficient andenvironmentally-friendly way.”

Hydrogen has future potentialRight now, production of ammonia used for fertilizer and oil refining are the two largest uses of hydrogen.However, many experts in the field believe that hydrogen can be used as a potential replacement fortransportation fuels as a direct replacement or as a feed for fuel cells in electric vehicles.

“

800.632.2277 www.barr.com 701.255.5460

Barr’s 500 engineers, scientists, and technicalspecialists provide engineering andenvironmental consulting services to clientsin industries such as power, mining, refining,and manufacturing, as well as with governmentagencies, attorneys, and natural-resource-management organizations.

North DakotaMinnesotaMichiganMissouriAlberta

resourceful. naturally.


Hydrogen has been part of the energy mix in the United Statessince the 1800s as a component in the gases used for heating andlighting. Hydrogen was picked by the Department of Energy as oneof the potential replacement energy carriers for transportation fuels.

Holmes states that there is 50 million tons of hydrogen producedeach year, with 9 million tons of that being produced in the UnitedStates. There are three goals for hydrogen use as an energy carrier:energy security, environmental benefits, and economic benefits.

Christopher states that about 95 percent of the current hydrogensupply is produced via steam reformation of methane, but thisprocess has many disadvantages including its major contribution toglobal warming.

“A restriction on greenhouse gas emissions is expected to increasethe demands for hydrogen due to its non-polluting nature and highenergy content,” Christopher explains.

Christopher adds that ethanol, biodiesel, and hydrogen areconsidered to be potential alternative fuels for the future. Hereiterates the important point about hydrogen is that as a fuel it doesnot release green house gases while burning. “It has been used for awide range of industrial applications, including electricity generationand automotive, thus offering a great potential with uniquecharacteristics to be a leading alternative energy carrier for the futurethan any other fuels,” he says.

The focus at the Morris, MN research center is using hydrogen toproduce anhydrous ammonia for nitrogen fertilizer. In addition, theresearchers are increasing efforts to look for storage medium for inparticular, wind energy.

“Hydrogen is difficult to store. There is no market fortransportation fuel,” Reese explains, adding that most of thehydrogen produced in is produced and used at oil refineries. “We arelooking for products that would have some salability here in theMidwest and hydrogen anhydrous ammonia came to top veryquickly,” he continues. “We live in the Corn Belt and have largestconsumption of hydrogen anhydrous ammonia in the world. It was agood fit.”

In addition to fertilizer, Reese says there are early market niches

Current Modeled Cost of an 80-kW System Based on Projection to High-VolumeManufacturing (500,000 units/year)2 Source: Department of Energy

Northern Plains Commerce Centre

North Dakota’s PremierTransload Facility

The Northern Plains Commerce Centre is aRail to Truck transfer facility offering long haul costefficiencies of the rail in combination with the shorthaul flexibility of trucking.

Operated by Mallory Alexander International Logistics

Daily rail service with access to the BNSF Railwayand Canadian Pacific.

Services include• Rail to Truck Transfer • Secure Storage• Order Management • Inventory Control• Origin and Destination Trucking

Construction ready building sites from 10-180 acres.

1901 Northern Plains DriveBismarck, ND701.255.6700www.npccbismarck.com

• Forest Products• Construction Materials• Wind Farm Components

• Pipe• Culvert• Equipment and Machinery

National Center for Hydrogen Technology

Hydrogen pumpMike Holmes, Deputy Associate

Director for Research, EERC


for hydrogen-powered utility vehicles and forklifts. Forexample, turf maintenance equipment used on golf courses atall hours of the day will run quiet not disturbing the arearesidences and does not require large volumes of engine orhydraulic oil, which can leak out damaging the turf. Inaddition, hydrogen-powered forklifts can run longer, be fueledfaster than traditional battery packs, and hydrogen fuel cellsdo not produce carbon monoxide in enclosed spaces as dogasoline-powered counterparts, Reese explains. Companiesare looking at 60 kilowatt hydrogen engine in utility vehiclesthat are used to mow grass along golf courses because of thequiet nature of the vehicle.

Holmes says that hydrogen can compete because byopening up the market for more applications, technology andmanufacturing improvements are reducing costs andimproving reliability. “These costs are further reduced everytime market expands,” Holmes explains. “There are currentlyhundreds of hydrogen fuel cell vehicles on the road and theyhave undergone millions of miles of testing over the pastdecade. Most of the major auto manufacturers have targetedthe 2015 timeframe for release of mass-produced models.”

Reese believes that hydrogen anhydrous ammonia is thebest use of hydrogen in the short term because it has anestablished market and demand. “Hydrogen is one of thosefuels that is always 10 years away,” he adds. “We need tocontinue working with hydrogen in electric powered vehiclesbecause we have an extremely volatile energy supply. We needto have a hedge, a backup plan, to provide energy. Then whenneeded, hydrogen will provide us with a reasonabletransportation fuel replacement.”

Alan Van Ormer - [email protected]

1766 - Henry Cavendish indentified hydrogen as an element andproduced it in demonstrations.

1800 - William Nicholson and Sir Anthony Carlisle discoveredelectrolysis for producing hydrogen and oxygen from water.

1800 - Hydrogen-rich town gas used in Europe for heating, cooking,and lights as a replacement for whale oil.

1839 - Swiss chemist Christian Friedrich Schoenbein discovered thatwater and electricity are formed when hydrogen and oxygen arecombined (fuel cell effect).

1959 - Harry Karl Ihrig developed the first fuel cell vehicle, a 20horsepower Allis-Chalmers tractor.

1970S - The OPEC oil embargo caused strains on the petroleumsupply, and fuel cell development for commercial applications ramped up.

2002 - The DOE FreedomCAR program began.

Source:EERC

Hydrogen Time Line


There are so many dollars in so many places, it reallyis challenging to keep our thumbs in everything,”says State Treasurer Kelly Schmidt.

The state treasurer’s website allows easy access toinformation about tax distributions via a searchabledatabase. Anyone can quickly find how much money went

to cities, counties, schools and tribes forany given time period. For instance, aquick search shows McKenzie Countycollected over $8.7 million in oil and gasgross production taxes in 2010, and thegreatest income was in September.

Quite simply, the oil boom hasbrought significant dollars to the state.Current projections for 2009-2011 are at$1.4 billion. Conservative estimates forthe upcoming biennium are at $2.1billion. But determining where the moneygoes is anything but simple. Oil and gasrevenue is distributed in a variety of ways.

North Dakota has two types of oil tax– an oil and gas production tax (GPT) of5 percent and an oil extraction tax (OET)of 6.5 percent. The 5 percent tax isdivided with one percent going to thestate general fund and four percent to the17 oil-producing counties. Thebreakdown of the four percent is based onan escalating formula where at the start ofeach fiscal year, counties receive 100percent of the revenue, and eventuallydrop to 10 percent when revenue exceeds$18 million. So far, five of the 17 countiesare at the 10 percent status.

Tax commissioner Cory Fong statesthe counties will see $168 million in thecurrent biennium, and forecasts evenmore in the next. That money is thendistributed to needs within the counties,cities and schools. The remainingpercentages in this formula go to the state

Determining where oil revenuesgo is anything but simpleWhile nearly every other state in the nation must determine what to cut from their budgets, North Dakota is facedwith deciding how to spend the vast revenues generated from the oil industry. But legislators are finding thatallocating money where it is needed most, and assuring substantial revenue for years to come is no small task.


general fund, but once that hits $71 million, it spills into the permanent oil tax trust fund –a supply of money for special projects and priorities.

The 6.5 percent tax is split between the general fund (unless it has hit the $71 millioncap), the water resources trust fund and education purposes.

The governor’s budget includes a large chunk of oil revenue slated for infrastructureimprovements in western North Dakota. He’s proposing the full one percent of the GPTthat is currently sent to the general fund be put into an oil impact fund for infrastructureneeds. He also wants to pay for it with the permanent oil tax trust fund – forecasted at $886million by the end of 2011.

“Most people think we need to take care of the infrastructure and the roads. Thediscussion is, how do you do it? Do you do it through the governor’s method or anothermethod?” explains tax commissioner Cory Fong.

Fong believes it is important to keep oil impact projects out of the general fund becausegiven the ups and downs of the oil industry, it is difficult to manage those fluctuationswithin the budget. “There is also a greater identity of those one-time funding projects whenit is off from the general fund,” he said.

While a majority of the state’s oil production is subject to the combined 11.5 percent,the current rate averaged for all production is 10.25 percent, due to incentives built into theOET which lower the rate. Most of those incentives are triggered by price. If the price of oildrops below $47.67 per barrel, the tax rate drops in an attempt to keep drilling economical.

But some legislators believe the incentives are too complicated. Rep. Shirley Meyer (D-ND) introduced legislation to simplify the extraction tax and give it a flat, predictable taxrate of 9.5 percent.


“The thought process right now is a gold rush mentality, and companiesonly drill to hold leases,” Meyer says. “After the lease holds are done, weneed them to stay, but they’ll look for the cheapest place to find oil.”

When oil companies obtain a lease, they need to keep drilling in orderto keep it. In January, Meyer said many leases were expiring, so drilling waskept at a frantic pace. But when the price of oil falls, she says NorthDakota’s weather and high tax rates won’t encourage continued drilling.

“When the oil price drops, that’s the trigger for lower taxes, but that’salso when we’ll need the money most, and it’s when we’ll lose the mostrevenue,” Meyer explains.

Another bill is circulating to modify the taxes for stripper wells, thosewells that are down to minimal production – often less than 25 barrels of

oil per day. As it stands now, oil companies do not pay any extraction taxfor stripper wells. Once it is declared a stripper site, all the wells on that siteare OET exempt. The bill states that in the past year, over six millionbarrels of oil were exempt from OET, even though they were high-producing wells.

The North Dakota Chamber of Commerce opposes the bill becausethey believe it is an unnecessary tax increase at a time when the statecoffers are substantial and taxes could be cut.

Because revenues could taper off one day, the state is preparing for thattoo. Voters decided in November to create a Legacy Fund that sets aside 30percent of oil revenues that can’t be touched until 2017.

“It is a big savings piece seen as a way to lock up dollars for the future,”Fong says.

With each oil rig generating 40 direct jobs and 80 indirect jobs, andprojections by the Department of Mineral Resources of 10,000 to 20,000wells drilled within the next two decades, it may be awhile before theLegacy Fund has to be touched.

Perhaps the best summation of the oil boom was stated by the one whowrites the checks. Treasurer Schmidt says all this revenue means one thing:opportunity. “We’ve been given an opportunity and now we need to seewhat we do with it,” she states.

Maxine Herr is a Bismarck, ND-based freelance writer. She can be reachedat [email protected].

“Most people think we need to take careof the infrastructure and the roads. Thediscussion is, how do you do it? Do youdo it through the governor’s method oranother method?”

- Tax Commissioner Cory Fong

Office of State Tax Commissioner




CURRENT OIL DOLLARPROJECTIONS FOR THESTATE IN 2009-2011

ARE AT

$1.4BILLIONCONSERVATIVE

ESTIMATES FOR THEUPCOMING BIENNIUM

ARE AT

$2.1BILLION


SAVINGS: VoIP lines typically cost about half as much as a conventional

phone line. The savings in monthly line charges can often pay for aVoIP system in a year or two – even less for organizations withmany phone lines.

SHARING:VoIP lines are virtual, not physical. If a business has dozens,

hundreds, or even thousands of locations, they can buy a pool ofVoIP lines for all locations to share. This is especially effective forretail outlets, restaurant chains, and other businesses withhundreds or thousands of business locations. Any user at anylocation in the organization can place a call using one of thepooled VoIP lines.

INTEGRATION:VoIP makes it easy to unite satellite offices, mobile users, and

work-at-home employees into a single system with a single dialingplan. This improves communications within the organization andimproves service for their customers.

So much has changed so quickly that many buyers areconfused. There are dozens of VoIP business solutions available,and they all appear to do exactly the same thing. But there arehuge disparities, both technical and financial, between theavailable VoIP products – especially for business users.

Before you switch your business telephone system to VoIP,compare several systems to find the solution that offers the bestcombination of features, quality, and reliability. You may find thatit is possible to get the latest VoIP technology with quality andservice that are superior to what you have now – at a lowermonthly cost than you currently pay for good old fashionedtelephone service. PB

Customers switching home andbusiness telephone servicesOver the past few years, the telephoneindustry has undergone a degree of changethat was unthinkable just 10 years before.Millions of customers are switching their homeand business telephone service from the PublicSwitched Telephone Network (PSTN) to Voiceover Internet Protocol, or VoIP.

Technology

ARDAY ARDAYFIOConsultant

Information ManagementSystems

[email protected]*Limited to the first 10 businesses that call orfax phone bill. Businesses must have at least 5phone lines to qualify for this special offer.

Do you want to SAVE up to50% off your current phone bill?

HERE IS AN OFFER YOU CAN’T REFUSE.Send us your current phone bill and we’ll showyou how we can SAVE you up to 50% off yourphone bill or we’ll send you a check for $25*.

Fax your phone bill to 701.364.2717 orCall us today at 701.205.3229

VoIP offers a compelling alternative to traditional PSTNtelephone lines, especially for businesses with a large numberof phone lines or multiple business locations. But VoIP also

works well for smaller businesses with just a few lines. There are manyreasons to switch to VoIP, but a few key reasons are:

RICK JOHNSTONPresident

Information ManagementSystems

[email protected]


Economic Development

The concept of teleworking or telecommuting is alsogaining a wider acceptance from employers andemployees alike, according to a recent study released

by the International Telework Association and Council(ITAC). The study concluded that telework can saveemployers money, provide workers more flexibility andimprove productivity. The concept is catching on here inour region as well. More and more employers arerecognizing the benefits financially and in retaining talentby allowing certain positions to telework fully or at leastpart of the week. Some advantages to the employers andemployees have been;

Savings in premises costs, office overhead and labor.Flexible working strategy also has the potential to reducerelocation costs.

According to the Management Technology Associates,productivity increases of up to 40% have been reported,though a range of 10-40% is typical across large scaleprograms. Teleworkers avoid travel time and interruptionsof a normal office environment. With gas prices on the riseteleworking will be a sought after feature byemployees.

Skills retention, organizationalflexibility, resilience, flexiblestaffing, and enhancedcustomer service can all bebenefits of teleworking.Improved employeemotivation bybeing trustedand having

confidence by the employer is another positive outcome.Improved work opportunities because employees are

not confined to reasonable commuting distance.

BETTER BALANCE OF WORK AND FAMILY.We have seen recently in our region that more and

more employers are looking at this option becausetechnology and broadband have been enhanceddramatically. This is good news for all employees bothseasoned and new graduates. The Midwest work ethic iswell known, and now through telework, more of ourregions citizens can continue to live here but perhaps workfor employers in another part of the country or world.The opportunity for our educational institutions is toensure we have a trained workforce in occupations mostsuitable to telework is paramount. Some of theseoccupations are in information technology, medical codingand transcription, insurance claims processing,accountants and auditors, software engineers, writers andeditors, graphic designers and many more. From aneconomic development standpoint telework is another

fundamental shift in how jobs can be created andcommunity talent enhanced. While not all jobs

may be conducive to telework, many can be.With telework we have just added more

opportunity for our workforce andour employers. PB

Telework A Positive

Development in Employment

“Teleworking” is the new buzzword that seems to be replacing the term telecommuting—whatmost people have called working from home or from remote locations.

HAROLD STANISLAWSKIHarold Stanislawski,Executive Director,

Fergus Falls EconomicImprovementCommission


ViewPoint

Economic Impact of Water and Water Infrastructure

Investments in water infrastructure create opportunitiesto support population, business, and industry growth,contributing to the overall economic health of

communities. There is also a multiplier effect from waterinfrastructure investment. According to the U.S.Conference of Mayors, every job created in rebuilding ourwater systems creates nearly 3.7 jobs elsewhere, and everydollar invested in water infrastructure adds $6.35 to thenational economy.

The importance of water and water infrastructuredevelopment can be seen first-hand in the communitiesaffected by the rapidly growing oil industry in westernNorth Dakota, where the need for water and waterinfrastructure is magnified immensely. Communities inthe region are faced with trying to find adequate watersupplies, improve water quality issues, distribute the waterwhere it is needed most, convey the wastewater to thetreatment works, and provide adequate wastewatertreatment. Without strategically developed drinking waterand wastewater infrastructure systems, communities in

this region will struggle to serve growing populations andattract and retain businesses.

From the standpoint of helping communities enticebusinesses and industries to the region, Keith Lund, VicePresident of the Grand Forks Region EconomicDevelopment Corporation, noted that, “it is critical thatstrategic infrastructure be planned in advance ofdevelopment activities. Since it can take years to designand construct infrastructure projects, it is unlikely thatcommunities will be able to successfully respond quicklyto development opportunities if no prior infrastructureplanning has occurred.”

Both planning and implementing infrastructuredevelopment is equally important. Whether it besustaining your community, attracting citizens andbusinesses, or responding to unique situations such as theoil play, water and water system infrastructure are criticalbuilding blocks to success. Water is an essential resourcefor life and for the life of a community. PB

STEVE BURIANCEOAE2S

[email protected]

Everyone is taught that water is the building block of life. We simply cannot live without it.This statement is as true for humans as it is for a City or State. Safe, reliable water andwater infrastructure are critical building blocks of growth and economic development.

MARY MEDEMASioux Falls WorkforceDevelopment Director

Sioux Falls DevelopmentFoundation and Forward

Sioux [email protected]

Opportunities for women-ownedbusinesses help communities grow

Women-owned businesses have a special and powerful impact on the success of their communities. This is certainly thecase in Sioux Falls, where there is an impressive number of women both starting and growing a business.

The trend toward women-owned businesses is part ofthe changing nature of the workforce as individualsseek to bring their own ideas to life and experience

the benefits of business ownership. The U.S. Census Survey of Business Owners (SBO)

2007 found that 7.8 million non-farm US businesses wereowned by women, a 20.1% increase in just five years.These companies accounted for 28.7 percent of all non-farm businesses in the U.S. and employed 7.6 millionpersons. Our region has registered smaller percentages ofgrowth than the U.S. average; however, the trend, evenhere in the upper plains states, shows ever-increasingnumbers and a growing variety of products and servicesoffered.

In this era of the entrepreneur, both men and womencan readily find encouragement and support in their questto launch a business. Women who are determined to startor grow their businesses will currently find some attractiveincentives to do so. For example:

*The Small Business Administration sets goals to applylending to women-owned and what they refer to as“disadvantaged women-owned businesses.”

*The SBA and other organizations offer specialassistance for women who would like to do business withthe government and government contractors.

*Women-owned business organizations offer resources,mentoring and a path to certification to ensure they cantake advantage of business opportunities.

The recent recession has been difficult for businesses,but as the economy improves, there will be even moreopportunities for the brave and creative spirit of theentrepreneur to emerge. It is the perfect time for thoseinvolved in economic and business development tocelebrate the women who own and operate smallbusinesses and to pay special attention to the unique needsof the women business owners in their quest to expandtheir operations and help their communities prosper. PB


Financial planning helpscreate ‘good fortune’

Thomas Edison said, “Good fortune is what happens when opportunity meets planning.” That’s whatfinancial planning is all about: helping create “good fortune” through a plan that makes sense insteadof relying on luck to afford future luxuries. To alleviate economic worries, plan for your future,including bumps in the road.

Money

First, plan for the unknown: unexpected bills, naturaldisasters, illness, job loss, salary cuts, nursing homeexpenses. Put at least three to six months of expenses

in a money market or short-term savings (such as acertificate of deposit) for emergencies. If your family has asingle or variable income, you should save more.

Once you have established youremergency fund, set “wants and needs”priorities into short-, medium- and long-term savings buckets. If you plan to takea vacation or buy a car soon, having ashort-term bucket of money will helpyou achieve that goal.

If you’re saving for a bigger item suchas a house down payment, collegeeducation or wedding, set up medium-term savings. Consider money marketfunds, certificates of deposit, or short-term bonds. If you are saving towardyour child’s or grandchild’s collegeeducation, consider investing thosedollars in a 529 plan.

For most, a comfortable retirement isthe most important long-term savingsgoal. Unlike your emergency, short- andmedium-term buckets, your retirementaccount is the one bucket where you havetime to ride out market ups and downs.It’s easiest to save for retirement throughyour employer’s retirement plan andIRAs. You then may have the option,based on your risk tolerance and timeuntil retirement, to invest in mutual fundsconsisting of stocks, bonds and cash.

When you start to distribute money toprovide retirement income, you will needto find an appropriate balance betweenpreserving the principal and maintaininggrowth to keep pace with inflation.

Start with the basics: think in terms of

short-, medium- and long-term goals, then use your new“savings buckets” as the foundation that will provide safecash for your living expenses and growth in your long-term investments. Financial planning will bring youfinancial peace of mind. PB

PAUL JARVISPortfolio Manager/Certified Financial

Planner TMState Bank and Trust

[email protected]

Coldset Web Printing is oneof the most economical waysto print, which can save youmoney and increase yourbottom line.

Our Web Presses can printyour newsletters, catalogs,publications and directories onuncoated stocks – includingnewsprint.

If you’re looking for waysto cut costs, we can help!

www.innovators.net

YEARS25CELEBRATING

1-800-908-BANK • Bremer.comMember FDIC

Your business. Our Bank.

!"#!#$%&'#($'')#(**+++, ,-.,-,/+++.012+ 3

PPrraaiirriiee BBuussiinneessss ttoo BBuussiinneessss


RATES: $125 (2.312 x 1.2) includes color

$250 (2.312 x 2.55) includes color

CONTACT: Phone 701-478-1139 or email: [email protected]

The Financial Link

PPrraaiirriiee BBuussiinneessss ttoo BBuussiinneessss

www.eapc.net

ar

ch

ite

ct

se

ng

ine

er

s

eapc.net.www

ar

ch

ite

ct

se

ng

ine

er

s

voice > data > video > television advertising

Call 1.800.888.1300 orVisit midcontinent.biz Making Your Business Better.

Reliable voice. Dependable data. Customized video.All with service you can count on. Contact yourMidcontinent Business Solutions™ Representativeand get connected today.



EMPLOYMENT (NOT SEASONALLY ADJUSTED)

UNEMPLOYMENT RATE EMPLOYMENT

Jan. 2010 Jan 2009 Jan. 2010 Jan. 2009North Dakota 4.5% 5.0% 347,380 343,094Fargo MSA 4.6 4.8 111,936 113,487Bismarck MSA 4.8 4.9 58,080 58,496Grand Forks MSA 5.0 5.2 51,468 52,005Minot MiSA 4.7 5.0 30,906 31,670Dickinson MiSA 2.6 3.7 15,758 13,853Williston MiSA 1.5 2.5 19,042 13,854Jamestown MiSA 4.8 4.2 10,768 11,432 Wahpeton MiSA 4.6 5.9 12,959 11,023 South Dakota 5.4% 6.0% 413,890 406,732Sioux Falls MSA 5.3 5.5 121,280 121,445 Rapid City MSA 5.6 5.6 61,175 61,735Aberdeen MiSA 4.2 4.0 22,065 21,890 Brookings MiSA 4.4 4.2 17,865 18,125 Watertown MiSA 5.3 6.1 17,480 17,555 Spearfish MiSA 5.0 4.8 12,710 12,700 Mitchell MiSA 4.6 5.5 12,275 11,945Pierre MiSA 4.0 3.5 12,050 11,885 Yankton MiSA 5.2 5.3 10,950 11,070 Huron MiSA 4.1 4.4 9,300 9,270 Vermillion MiSA 3.9 3.9 7,300 7,375 Minnesota 7.5 8.7 2,711,377 2,671,629Minneapolis-St. Paul MSA 7.0 7.7 1,696,772 1,699,698Brainerd MiSA 11.8 11.9 40,026 40,797Winona MiSA 6.8 7.3 25,703 27,381Fergus Falls MiSA 8.8 9.3 27,351 26,844Willmar MiSA 7.3 7.7 22,013 22,682Bemidji MiSA 9.0 9.2 21,083 19,549Alexandria MiSA 7.7 7.7 18,403 19,157Hutchinson MiSA 9.9 10.3 16,906 18,676Marshall MiSA 6.7 6.4 13,589 14,003Worthington MiSA 5.6 5.8 11,069 11,488Fairmont MiSA 7.3 8.0 10,459 10,876

MSA — Metropolitan Statistical AreaMiSA — Micropolitan Statistical AreaSources: U.S. Bureau of Labor Statistics, Minnesota Department of Employment and EconomicDevelopment, Job Service North Dakota, South Dakota Department of Labor

CANADIAN EXCHANGE RATE

NORTH DAKOTA OIL ACTIVITY

Sweet Crude ProductionPrice/BBL Oil-BBL/day

DEC 2010 $81.03 343,867NOV 2010 $75.74 355,038OCT 2010 $74.41 343,170SEPT 2010 $67.95 342,094

Permitting Producing Rig Wells Wells Count

Source: NDIC

JANUARY AIRLINE BOARDINGS

Minneapolis-St. Paul 2,238,076 0.59%Fargo 29,008 1.30Sioux Falls 28,549 16.60Rapid City 17,078 2.70Bismarck 14,551 - 2.51 Grand Forks 9,908 16.24Minot 9,353 107.89Pierre 1,110 30.74Source: US Customs and Border Protection

Source: Bank of Canada Data provided by Kingsbury Applied Economics

02/26/10 01/28/11 02/28/11

U.S. to Canadian Dollar- $ 1.05 or $0.95 $0.999 or $1.001 $0.974 or $1.027

U.S. to Euro $ 0.732 or 1.366 $0.735 or $1.361 $0.725 or $1.379

U.S. to Chinese Yuan $ 6.826 or $0.147 $6.581 or $0.152 $6.572 or $0.152

U.S. to Japanese Yen $88.83 or $0.011 $82.02 or $0.012 $81.91 or $0.012

U.S. to Mexican Peso $12.76 or $0.078 $12.14 or $0.082 $12.11 or $0.083

BOARDINGS % CHANGE/2009-2010

DEC 2010 134 5,331 163NOV 2010 245 5,331 158OCT 2010 232 5,300 151SEPT 2010 167 5,197 143

JAN % CHANGE JAN % CHANGE 2010 /JAN 2009 2010 /JAN 2009

CANADIAN BORDER CROSSINGS

Source: US Customs and Border Protection

AUTOMOBILES TRUCKS

MINNESOTAIntl. Falls-Rainer 31,491 9.48% 1717 - 3.43Grand Portage 18,620 36.71 1172 48.54Baudette 11,525 - 7.56 770 -27.43 Warroad 9,492 32.15 1118 3.14 Roseau 3,172 19.16 545 20.84

NORTH DAKOTAPembina 18,345 11.10 16,876 3.88 Portal 5,311 14.86 6,736 14.85Neche 3,642 7.53 946 -13.37Dunseith 3,550 15.41 2,101 10.75Walhalla 3,114 21.78 1,063 12.49Noonan 2,238 5.72 175 -11.62

By the Numbers

DEC 2010 341,990

NOV 2010352,559

OCT 2010344,038

SEPT 2010340,187

Gas Production-MCF/Day

prairie business april 2011

Documents

business communities

womenin business

oil industry

timber industry

community spotlight

cover story

local tourism industry

asmarter way ofdoing