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The Business of BrewingCraft breweries provide economic boost to downtownspg. 30

ALSOHealth Care Reform 101What businesses need to know about the Affordable Care Act

pg. 36

Dominating Diesel Tech Ed NDSCS becomes one of world's

largest training sitespg. 48

North Dakota. Doing Business Better. North Dakota was the ideal place for Field of View, LLC to develop its aerial imaging technology that helps farmers save time and money. With strong agriculture, technology and aviation sectors, we’re doing business better. Learn more about the North Dakota Department of Commerce and companies in the state at www.NDBusiness.com

Photo courtesy of Field of View, LLC

4 Prairie Business Magazine November 2013

|INSIDE|November 2013 VOL 14 ISSUE 11

FEATURES DEPARTMENTS6 Editor’s Note BY KRIS BEVILLOf shutdowns and suds

8 Business Advice BY MATTHEW D. MOHRCash flow and burn rate

10 FinanceBY DAVID FLYNNRegion’s financial strength a benefit to business

12 Research & Technology BY DELORE ZIMMERMANHey! What’s the big idea?

14 Economic Development BY PAT COSTELLOAnd the winner is ...

16 Prairie News

20 Prairie People

24 Business DevelopmentExport opportunities abound for ag businesses

26 Economic Development Public/private partnerships promote positive economic development

42 Health Care I Digital Edition OnlyThinking ‘lean’ in health care

44 Talk of the TownActive Aberdeen

48 Higher EducationDiesel tech demand drives NDSCS expansion

52 Energy

56 Expansions I Digital Edition OnlyBooming Bakken makes medical expansions a must

58 Business to Business

60 By the Numbers

Next MonthThe December issue ofPrairie Business magazine will include this year's listof the region's top 40 business professionals under the age of 40.

Fargo Brewing Co. co-owners(from left) Aaron Hill, ChrisAnderson and John Anderson atthe company's tap room in Fargo.PHOTO: KENSIE WALLNER

30 BREWERIESA Brewing IndustryCraft breweries increase in popularity throughout region

HEALTH CAREHealth Care Reform 101What businesses need to know about the Affordable Care Act

36

Scan this with your smartphone'sQR Reader to visit our website.

Follow us on Twitterhttps://twitter.com/PrairieBiz

Check us out on Facebookhttps://www.facebook.com/PrairieBusiness

Laughing Sun Brewing Co. is on pace to brew more than 400 barrels of beerby the end of its first full year of operation in downtown Bismarck, N.D.PHOTO: CHAD NODLAND

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|EDITOR’S NOTE|

Of shutdowns and suds

KRIS [email protected]

Just minutes before I started typing this column, national news outlets reported that

Congress had reached a deal to stave off a U.S. default and end the more than two-week fed-

eral government shutdown that has furloughed thousands of federal employees, closed

national parks and impacted millions of Americans to varying degrees of severity. Here at the

magazine, our work was surprisingly affected by the shutdown. Some of the data we rely on was

unavailable until the last minute because federal agencies responsible for providing that informa-

tion to the public were deemed non-essential. Interviews with federal agency officials had to be

put on hold and eventually cancelled as the shutdown dragged on beyond our deadlines. A local

small business summit had to be postponed because the keynote speaker was a government

employee and would not have been able to attend the event.

But our troubles pale in consideration to some of the issues being faced by others around the

region. Shortly after the shutdown went into effect, an historic blizzard ravaged the Black Hills,

resulting in the deaths of thousands of cattle. It is still unknown exactly how many cattle perished

in the storm, but it is estimated to be 10,000 to 20,000. Some ranchers lost everything. Many will be

economically devastated for years. Normally, ranchers in situations like this would look to the Farm

Service Agency for help in tallying their financial losses and accessing what little federal aid might

be available, but because the government was shutdown they had nowhere to turn. We hope feder-

al officials can get back to work soon enough to offer some relief to those affected by the storm.

Ironically, this issue of the magazine covers the Affordable Care Act, which was the crux of the

shutdown. In preparing for this article I attended informational meetings hosted by private indus-

try and spoke with several health reform experts who know the ins and outs of the law and have

been explaining the details to businesses and private individuals for the

past year. They all said they still come across business owners who,

either due to wishful thinking or misinformation, don’t believe that the

new law will go into effect. The shutdown didn’t help matters. So, to be

clear, the ACA is happening and will go into effect on Jan. 1. That’s the

simplest part of understanding the law. For answers to some of the

other commonly asked questions and concerns, read, “Health Care

Reform 101.”

If all this talk of shutdowns and health care policy makes you

thirsty for an adult beverage (I know it does to me) then you’ll certain-

ly want to check out our cover feature, “A Brewing Industry.” We all

know it’s not uncommon for states in this region to regularly appear

on lists that tally the number of drinking establishments or drinks con-

sumed per capita, so it is somewhat of a mystery that the number of

craft breweries in these states has been few or none. That’s beginning

to change. In the past year, a number of microbreweries have been

established throughout our readership area and are quickly becoming

known as unique places for locals to gather and as attractants for out-

of-town guests and tourists. The independent, unique vibe of these

breweries meshes well with downtown redevelopment efforts and we

expect they will play a hefty role in the rejuvenation of downtown

economies throughout our region in coming years. Cheers to that.

Our job is f inding people jobs …We love what we do!

We’re Spherion®, a local staffing firm with a passion for placing the right candidate in the right company. We have been serving the flexible and direct-hire staffing needs of businesses since 1946. Our staffing specialties include:

• Administrative & Clerical • Contact Center • Light Industrial • Non-Clinical Healthcare • Professional

When you love what you do, it shows. Put Spherion’s passion for staffing to work for you!

www.spherion.com

Fargo 701 298-8300 l Bismarck 701 250-1111 l Minot 701 839-7660

©20

13 S

pher

ion

Staf

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Serv

ices

LLC

7www.prairiebizmag.com

PrairiePrairie

northern plains business resource

BusinessMIKE JACOBS, PublisherRONA JOHNSON, Executive EditorKRIS BEVILL, EditorBETH BOHLMAN, Circulation ManagerKRIS WOLFF, Layout Design, Ad Design

Sales Director:JOHN FETSCH701.212.1026 [email protected]

Sales:BRAD BOYD - western ND/western SD800.641.0683 [email protected]

SHELLY LARSON - eastern ND/western MN701.866.3628 [email protected]

Editor:KRIS BEVILL701.306.8561 [email protected]

Editorial Advisors:Dwaine Chapel, Executive Director, ResearchPark at South Dakota State University; BruceGjovig, Director, Center for Innovation; LisaGulland-Nelson, Vice President, Marketing andP.R., Greater Fargo Moorhead EDC; Tonya Joe(T.J.) Hansen, Assistant Professor of Economics,Minnesota State University Moorhead; DustyJohnson, Chief of Staff for South Dakota Gov.Dennis Daugaard’s office; Brekka Kramer,General Manager of Odney; Matthew Mohr,President/CEO, Dacotah Paper Company; NancyStraw, President, West Central Initiative

Prairie Business magazine is published monthlyby the Grand Forks Herald and ForumCommunications Company with offices at 3752nd Avenue North, Grand Forks, ND 58203.Qualifying subscriptions are available free ofcharge. Back issue quantities are limited andsubject to availability ($2/copy prepaid). Theopinions of writers featured in Prairie Business aretheir own. Unsolicited manuscripts, photo-graphs, artwork are encouraged but will not bereturned without a self-addressed, stampedenvelope.

Subscriptions Free subscriptions are availableonline to qualified requestors at www.prairiebizmag.com

Address corrections Prairie BusinessmagazinePO Box 6008Grand Forks, ND 58206-6008Beth Bohlman: [email protected]

Online www.prairiebizmag.com


|BUSINESS ADVICE|

Cash flow and burn rateBY MATTHEW D. MOHR

With the year nearing completion, a business

should have a very good feeling for its suc-

cess (or failure) in generating additional cash

flow for the year. Profits are important as a measure of

success, but real cash flow is the measure of sustainabili-

ty over time. A business may not generate cash every

year, but over time cash must be generated to pay credi-

tors and provide a return to investors.

New enterprises, especially in technology, require

cash to operate. Without cash, wages can’t be paid and nec-

essary expenses such as rent, power, communications and

supplies can’t be acquired. The amount of cash a startup

(or even a mature business in transition) needs to pay dur-

ing a given period of time for its ongoing bills is called the

enterprise’s “burn rate.” In other words, how much cash are

you burning through during a certain period of time just

to stay alive?

One regional technology based startup I am familiar

with received sufficient funding from investors to get start-

ed, but fell short of necessary cash flow to keep paying staff

once the business got rolling. The principles accepted no

wages until the business grew to the point of being able to

pay them and all its bills. Without the initial investment the

business would have failed, but by determining its real

burn rate and having patient investors, the business made

it to the point of positive cash flow, which is not easy to do

in a pure technology enterprise. The next step for that busi-

ness will be to grow to the point where cash flow supports

expansion and extraordinary returns to its investors.

Cash flow is the true measure of success for a business

over time. PBMatthew D. Mohr

CEO, Dacotah Paper [email protected]


|FINANCE|

Region’s financial strength a benefit to businessBY DAVID FLYNN

Federal budget issues continue to dominate

headlines in seemingly endless repetition. The

divide between political parties is so extreme

that budget crises and the possibility of government

shutdowns have become a routine part of life. There

is significant uncertainty about the future of govern-

ment tax and expenditure policies and how this will

impact the country, and the region. Similar problems

exist on the monetary policy front as well.

Anyone will tell you that interest rates have

nowhere to go except up. When monetary policy is

keeping rates between 0 and 0.25 percent the only direc-

tion to go is up. The possibility of reduced bond pur-

chases by the Federal Reserve introduced significant

volatility into financial markets in the past few months.

The impacts are evident in the equity markets, the bond

markets and mortgage markets. As these policies gain

momentum the internal strength in regional financial

institutions will permit them to continue to lend, keep-

ing businesses growing and the regional economy mov-

ing forward.

On just about any measure chosen, including

unemployment, labor force growth or income, the

economies in Minnesota, North Dakota and South

Dakota are outpacing the United States. People in our

region are familiar with the contrasting success of

regional businesses and the area’s economy compared

to the national picture, but to put it into context, the

U.S. median income grew 2.49 percent from 2009 to

2012. In Minnesota, the median income increased by

10.14 percent over the same time period. North Dakota

witnessed an 11.36 percent increase and South Dakota’s

median income increased by 7.83 percent.

Among the many factors contributing to an

expansion of this sort is the strength of the financial sec-

tor. The CredAbility Consumer Distress Index (see

graph) provides great insight into the different paths

the three states took versus the U.S. (index available

from the St. Louis Federal Reserve FRED website). This

index combines measures such as unemployment,

credit delinquencies, income and saving, and net worth.

A measure of 80 or higher is indicative of a good or sta-

ble environment, while a measurement in the 70s is

indicative of an at-risk environment. Being in the 60s,

which the U.S. was after the onset of the crisis, is viewed

as an unstable situation.

The Dakotas never really fell out of the 80s despite

the massive problems in the national economy.

Minnesota followed the U.S. pattern more closely, but

overall, the region fared very well. Banks in the region

were less likely to engage in subprime lending than

those in larger cities, business lending was stronger and

problem loans were fewer than in the rest of the coun-

try. The combined effects meant that lending channels

remained open, firms could expand when necessary or

able, and growth continued in the region. Regional

strengths are important to keep in mind against the

backdrop of a national policy quagmire. PB

David T. FlynnProfessor and Chair, Department of Economics

Director, Bureau of Business & Economic ResearchUniversity of North Dakota

[email protected]

CredAbility Consumer Distress Index90

85

80

75

70

65

60

%

jan 2005 Jul 2007 Jan 2010 Jul 2012 Jan 2015

Date

MNNDSDUS


|RESEARCH & TECHNOLOGY|

Hey! What’s the big idea?BY DELORE ZIMMERMAN

Few people know it, but Daniel Burnham, a

preeminent architect of the early 20th cen-

tury, is the original voice behind these oft-

repeated words of wisdom: “Make no little plans.

They have no magic to stir men's blood and

probably will not themselves be realized." A stu-

dent of his own advice, Burnham created master

plans for Chicago and downtown Washington,

D.C. He also designed the famous Flatiron

Building in New York City and Union Station in

Washington, D.C.

What Burnham accomplished, albeit quite

big, is not the point here. I’m more interested in the

notion that we could do a little more — no, make

that a lot more — big thinking around here. The

good news is that there are some big ideas out there

right now that are worthy of pursuing.

Dakota Fiber is an initiative to bring bleed-

ing-edge bandwidth to North Dakota. Inspired by

the Google Fiber initiatives, the Dakota Fiber proj-

ect would convert all or a portion of North Dakota

into a “fiberhood.” Doug Burgum, one of North

Dakota’s preeminent entrepreneurs, is spearhead-

ing the initiative. He and other technology and

community leaders are promoting the impact that

high-speed, low-cost bandwidth would have on

the state.

An “energy corridor,” recently unveiled by

Gov. Jack Dalrymple and energy company Allete

Inc. will move oil, natural gas, electricity and water

out of western North Dakota on a right of way

adjacent to Allete's existing electric transmission

line. From Duluth, Minn., oil and natural gas

could be shipped to other markets. Pipelines could

move water to other parts of the state and waste-

water from North Dakota's oil patch. Coal-fired

power plants' carbon dioxide emissions could be

sent and stored underground or used for enhanced

oil recovery.

Free higher education for all North Dakotans

is something David Osborne, author of

“Reinventing Government” and “Laboratories of

Democracy,” once suggested North Dakota could

do to maximize the use of its resource riches to

build a more competitive economy for the 21st

century knowledge-based economy.

A big idea that strikes me like a thunderbolt

occasionally is high-speed rail from Winnipeg to

somewhere in Texas, which could serve to galva-

nize a north-to-south Great Plains economic cor-

ridor. Not possible you say? The Texas Oklahoma

Passenger Rail Study is already looking at the 850-

mile corridor from San Antonio to Oklahoma

City. It’s just another 1,100 miles to Winnipeg

from there.

A really good Big Hairy Audacious Goal

(BHAG), as characterized by Jim Collins and Jerry

Porras in the book “Built to Last,” is visionary,

strategic and emotionally compelling; it should

have a minimum length of about a decade up to a

quarter century. All of the big ideas noted above fit

these qualifications. Antoine de Saint-Exupery, a

French writer and pioneering aviator captured the

essence of how we can motivate and mobilize for

action to accomplish big goals. “If you want to

build a ship, then don’t drum up men to gather

wood, give orders and divide the work. Rather

teach them to yearn for the far and endless sea.” PB

Delore ZimmermanPresident, Praxis Strategy Group

Executive Director, Red River Valley Research [email protected]

Twitter: @DeloreZimmerman

I t ’ s a H a t T r i c k !

For the third consecutive year, Spectrum Aeromed has been added to the list of the Inc. 500/5000 Fastest Growing Companies. In addition, the company increased

their rank to number one in the top 100 in the State of North Dakota.

“Being ranked number one in the state as the fastest growing company is a huge honor because we’re a company focused on providing customers life-saving solutionsfor their air ambulances,” said Spectrum Aeromed President and CEO Dean Atchison.

“The more we grow the more impact we have on saving lives which is how we truly measure success.”

Spectrum-Aeromed.com

701.235.5478


|ECONOMIC DEVELOPMENT|

And the winner is … BY PAT COSTELLO

We were pretty excited earlier this year

when CNBC named South Dakota the

best state in the nation to do business. It is

a big honor that garnered our state some much-

deserved recognition in the business world, as well as

a good deal of media attention. But, that is just the tip

of the iceberg.

CNBC also ranked South Dakota No. 1 for afford-

able places to do business and in the Top 10 for Business

Friendliness, Economy, and Quality of Life.

But CNBC isn’t the only organization that has

taken note of South Dakota’s many favorable business

attributes. In the past year:

• Forbes ranked our two largest cities in the Top 10

of its list of Best Small Places to Do Business, with Sioux

Falls coming in at No. 2 and Rapid City at No. 9.

• The U.S. Chamber of Commerce Foundation

called South Dakota its No. 1 Enterprising State for

Business Climate.

• Pollina Corporate Real Estate named South

Dakota the eighth-best Corporate Business Climate, and

• Fast Company Magazine declared South Dakota

No. 1 in entrepreneurial growth in ranking the states

for innovation.

What’s more, South Dakota also had the largest

percentage of personal income growth, according to

the Bureau of Economic Analysis; as well as the sec-

ond-lowest state-local tax burden, according to the

Tax Foundation.

Gov. Dennis Daugaard attributes South Dakota’s

favorable business climate to our state’s history of fiscal

responsibility. I agree. Rankings like these allow busi-

nesses to plan for long-term growth. We have had a bal-

anced budget each year since becoming a state, which

proves to companies that are considering an expansion

or relocation that South Dakota can offer its businesses

stability and certainty.

That is part of the reason Barron’s ranked South

Dakota as the Best-Run State in the country. That

particular ranking looks at combined debt and

unfunded pension liabilities relative to each state’s

gross domestic product.

Clearly, South Dakota has the rankings to support

its claim of a favorable place to do business. But the

rankings also prove that South Dakota is a great place to

live and play, as well as work.

South Dakota ranks No. 3 in State Policy Reports’

The Camelot Index, which measures economic vitality,

health, education, crime, society and government. We

are second-best in George Mason University’s Mercatus

Center’s Freedom in the 50 States study that measures

economic and individual freedoms. We are No. 3 in

bankrate.com’s Best State to Retire and No. 2 in mon-

eyrates.com’s States Where Youth Rules.

In South Dakota, you will also find a high rate of

volunteerism (No. 5, Corporation for National and

Community Service), and a low commute time (No. 2,

U.S. Census Bureau).

Every day we strive not only to live up to our rank-

ings but to improve them and make South Dakota the

best place possible for companies and individuals to call

their home.

To read more about rankings in South Dakota,

visit www.sdreadytowork.com. PB

Pat CostelloCommissioner,

South Dakota Governor’s Office of Economic [email protected]

Twitter: @sdgoed



Prairie News Industry News & Trends

IDEA competition open for applications

Applications are begin accepted until Nov.

30 for the 2014 IDEA competition, an annual

event sponsored by the Northwest Minnesota

Foundation as well as multiple other organiza-

tions and private businesses focused on assisting

entrepreneurs in northwest Minnesota scale their

innovative products or processes. Three winners

will be awarded $10,000 cash each as well as

guidance from business community leaders. For

more information, visit ideacompetition.org.

ND 2Q taxable sales, purchases slower than 2012

Total taxable sales and purchases in North

Dakota during the months of April, May and

June were about $6.2 billion this year compared

to $6.4 billion during the same quarter of 2012,

equating to a drop of 2.4 percent.

The tax department attributed the decline

to adverse weather conditions, which hampered

activities in some of the state’s industries. The

transportation and warehousing sector reported

a 49.3 percent decline during the second quarter

of this year compared to 2012. Mining and oil

extraction dropped 15.7 percent while construc-

tion was down by 13.7 percent. The educational,

health care and social services sector reported a

decline of 20.1 percent.

Industries that reported growth during the

second quarter of 2013 compared to the year

prior included the utilities sector, the financial,

insurance, real estate, rental and leasing sector,

professional services, information industries,

retail and wholesale trade.

Deputy Tax Commissioner Ryan

Rauschenberger says the 2Q totals, while down

from the year prior, were still positive. “North

Dakota experienced a record-setting year for tax-

able sales and purchases in 2012, and that level of

growth was not sustainable,” he says.

Bismarck airport receivesfunding for flight servicedevelopment

According to the Bismarck-Mandan

Development Association, the Bismarck Municipal

Airport has received a $500,000 grant from the U.S.

Department of Transportation to develop addi-

tional air service to Dallas-Fort Worth and/or

Chicago. The Bismarck-Mandan Chamber of

Commerce is seeking to raise $500,000 from its

members to form a minimum revenue guaranty to

support the new flight service.

Trailer manufacturer relocating office to SD

Investors Real Estate Trustrecently began building a 252-unit apartment complex inGrand Forks, N.D., known asCardinal Point. IMAGE:INVESTORS REAL ESTATE TRUST

Minot firm begins building Grand Forks, Minot apartment projectsInvestors Real Estate Trust, an equity real estate investment trust based in Minot, N.D., has begun building apartments in Grand Forks, N.D., and Minot.

The Cardinal Point Apartments in Grand Forks will include 252 units consisting of one, two and three-bedroom floor plans. The Chateau II Apartments in

Minot are a remodel east of the firm’s currently owned Chateau Apartments that were damaged by flood and fire in 2011. The remodel will include an expan-

sion, increasing the number of units from 32 to 72.

Additionally, the firm announced that it has recently opened a 108-unit apartment project in Minot known as the Landing at Southgate and a 60-unit

Phase I River Ridge Apartment project in Bismarck, N.D.


SmithCo Manufacturing, a maker of side

dump trailers, is relocating its corporate head-

quarters from Le Mars, Iowa, to Elk Point, S.D.,

creating six jobs with the potential for additional

positions to be added within the next few years.

Greg Smith, SmithCo president, says the company

intends to maintain most of its manufacturing in

Iowa. The corporate office will also serve as a new

sales outpost for the company in South Dakota.

Rural broadband providers earn Smart Rural Community award

The NTCA-The Rural Broadband

Association recently recognized seven broad-

band providers in the nation and the communi-

ties they serve as Smart Rural Communities in

recognition for their efforts to deliver technolo-

gies to make rural hometowns vibrant places to

live and do business. Award winners include

DRN in Ellendale, N.D., Park Region

Telephone/Otter Tail Telcom in Underwood and

Fergus Falls, Minn., and West Central Telephone

Association in Sebeka, Minn., as well as three

providers in Kansas and one in Florida.

“Fergus Falls is [a] prime example of the

power of a broadband connection and a steadfast

commitment to growth and prosperity,” NTCA

CEO Shirley Bloomfield said in a news release.

“Not only are the people of Fergus Falls charting

their own path to a more prosperous future, they

are also creating a road map for many more com-

munities across the country to follow suit.”

Social enterprise 401(e)Energy Services launches in Grand Forks

401(e) Energy Services, a social enterprise

providing energy assessments, energy upgrades

and financial assistance guidance for home own-

ers, recently launched in Grand Forks, N.D. All

profits generated will be reinvested in non-profit

programs administered by Red River Valley

Community Action including programs that

provide home repair services to low-income and

disadvantaged persons and a local homeless shelter.

Jason Schaefer, 401(e) coordinator, says the

entity’s name was chosen intentionally to bring

to mind an investment plan in order to reflect its

goal of assisting homeowners in making invest-

ments in their homes and the community.

Kent Keys, director of the RRVCA, says the

|PRAIRIE NEWS|

Present the

& Pifer’s

Wednesday, November 20, 2013Wednesday, November 20, 2013Wednesday, November 20, 2013Wednesday, November 20, 20138:00 a.m. – 5:00 p.m.

Holiday Inn – Fargo, ND

Learn from Industry ExpertsINVESTING IN TODAY’S NATURAL RESOURCES

Don’t miss this one-day “university” with industry leaders speaking on a diverse portfolio of topics relating to land and minerals.

Lynn PaulsonSenior VP, Director of Agribusiness Development, Bell State Bank Farmland Values from a Lender’s Perspective

Patrick HarriganPresident/COO, Gain 1031 Exchange1031 Exchanges; How to Sell Land & Avoid Taxes

Roger MinchAttorney, Serkland Law FirmFarmland Rent Contracts; Getting Creative to Stay Competitive

Kerwin BradleyDirector of Commercialization, SimplotImpact of Biotech Potatoes on the Farming Industry

Terry SteinwandDirector, ND Game & Fish DepartmentDeclining CRP; What It Means for Habitat, Hunting and Access

William L. Guy IIIAttorney, Fredrickson & Byron Law FirmAgri Business Succession; Keeping the Farm Intact While Treating All of Your Children Fairly...But Not Necessarily Equally

Tami Norgard and David HermansonAttorneys, Vogel Law FirmBakken 101: What Every Land Owner Should Know

Bud McCroskeyVice President of Wealth Management, Jamieson CapitalDakota REIT (Real Estate Investment Trust); Achieving Success with North Dakota Real Estate Investments

Dr. Mark DotzourChief Economist and Director of Research for the Real Estate Center at Texas A&M University

- Why have land prices increased so dramatically? Are current price trends sustainable? What is the national outlook for job growth, interest rates and real estate? Dr. Tim BallEnvironmental Consultant, Speaker and Columnist based in Canada Climate Change is Normal; the Untold Perspective - No stranger to controversy, Dr. Ball’s views about CO2 not causing global warming goes against prevailing wisdom,“The fact that they’ve only heard one side of the issue – that’s the problem,” says Ball.

Stephen BarthP.C., author of Hospitality Law, attorney and founder of HospitalityLawyer.com

Have you ever made a decision based upon fear? Maybe it was the fear of land prices changing or the fear of missing an opportunity? Become an expert at recognizing fear, but not let it take control.


|PRAIRIE NEWS|

entity was created out of both necessity and ingenu-

ity. “Federal funding continues to be cut and we

realized in order to be sustainable, we had to find

another way to fund our programs,” he says.

“RRVCA has been providing energy efficiency serv-

ices for over 20 years for low-income households as

a social program. When we stopped and evaluated

what we were really good at and what this region

needs as a service, it was kind of a no-brainer.”

Feds give $2.25 million to MState, largest federal grant incollege’s history

Minnesota State Community and Technical

College has been awarded a five-year, $2.25 mil-

lion grant from the U.S. Department of

Education to expand its ability to serve low-

income students. It is the largest federal grant the

college has ever received. M State will use the

funding to create immersive technology class-

rooms on its four campuses, increase student

success and persistence through faculty develop-

ment, design and enhance student support ini-

tiatives and increase the college’s capacity for

data-driven decisions.

JLG receives design awardsGrand Forks, N.D.-based JLG Architects

recently received three design awards from the

North Dakota chapter of the American Institute

of Architects in recognition of “distinguished

accomplishments in design and the profession of

architecture.” Projects earning the awards includ-

ed the Grand Forks Central High School fine arts

addition, the Mayville State University science-

library building and the Williston State College

Frontier Hall.

UND Center for Innovationreceives national award

The University of North Dakota Center for

Innovation Foundation in Grand Forks has

received the Excellence in Technology-Based

Development award from the State Science and

Technology Institute, a national organization

focused on tech-based economic development.

The center was selected for the award in

recognition of its work to enhance the ability of

tech-based ventures to access entrepreneur capi-

tal. Since 2006, it has helped 150 angel investors

launch nine angel funds in North Dakota and

northwest Minnesota. The funds have invested in

38 ventures which have ultimately resulted in

more than $24 million of equity investing.

Topeka business, city leaders visit Fargo

About 30 business and community officials

from Topeka, Kansas, spent two days in Fargo at

the end of September as part of the Topeka

Chamber of Commerce’s annual program

designed to allow business leaders to learn from

cities of similar size. The Fargo Moorhead West

Fargo Chamber of Commerce and the Greater

Fargo Moorhead Economic Development Corp.

led the delegation on a tour of the city, including

stops at the Microsoft campus, the research and

technology park at North Dakota State

University and Concordia College’s Offutt

School of Business.

Brookings, Pine RidgeReservation selected for economic development help

The USDA Rural Development agency and

South Dakota State University in Brookings have

NDHFA Acting Director Jolene Kline (right front) accepts a $500,000 HousingIncentive Fund contribution from Marathon Oil Corp. employees. The funds willsupport affordable housing development in western North Dakota. PHOTO: NORTH DAKOTA HOUSING FINANCE AGENCY

Marathon Oil, MBI Energy Services, USBank contribute to ND HousingIncentive Fund

U.S. Bank contributed $3 million to the North Dakota

Housing Incentive Fund in August, the largest single contribu-

tion made to the fund since its creation in 2011. The fund pro-

vides a tax credit incentive for businesses providing financial

contributions toward the construction of affordable housing

projects throughout the state. U.S. Bank also contributed $1.2

million to the fund in 2011.

Additional recent contributions to the fund include

Marathon Oil Corp., which provided a $500,000 contribution

to support affordable housing development in Dickinson,

Killdeer or New Town. The company also contributed

$500,000 to the fund last year and $2.5 million in 2011.

MBI Energy Services contributed $250,000 to the fund

directed toward the Wolf Run Village development in Watford

City. Wolf Run Village is a housing project devoted to provid-

ing affordable housing for teachers, law enforcement and med-

ical personnel. The contribution marks MBI’s third contribu-

tion to the fund.


|PRAIRIE NEWS|

selected the Brookings Area Commute

Region, comprised of Brookings, Deuel,

Hamlin, Kingsbury and Moody counties,

and the Pine Ridge Indian Reservation

Districts’ Region to receive economic

development coaching and technical assis-

tance as part of the Stronger Economies

Together initiative.

The goal of the initiative is to strength-

en the capacity of rural communities and

counties to collaborate in developing and

implementing economic development

blueprints. Selected regional teams will

develop a vision and goals, examine region-

al demographics, opportunities, assets and

barriers and create a regional economic

development plan.

Work begins on Hwy 85bypass in western ND

State and local officials joined for a

groundbreaking ceremony Sept. 24 to kick

off the beginning of a bypass project that will

re-route Highway 85 traffic out of the

center of Watford City, N.D., and onto a new

roadway southwest of the town.

Phase 1 of the project will include a

four-lane highway with an entrance west of

Watford City and a reconnection south of

the town. That portion of the project is

expected to be complete at the end of the

2014 construction season.

Phase 2 will begin at Highway 23

southeast of Watford City. That project is

expected to be complete sometime in 2014.

Knife River Corp., a subsidiary of

MDU Resources Group Inc., received a $51

million construction contract for the proj-

ect. It is the largest road construction con-

tract Knife River has been awarded in

North Dakota.

The state Department of

Transportation has also begun work on a

$300 million project to expand the highway

to four lanes between Watford City and

Williston, N.D. The first phase of that

project is tentatively slated for completion

next year.

Fall enrollment steady at SD universities

The South Dakota Board of Regents

reported steady enrollment at the state’s

six public universities for the fall semester.

The number of full-time equivalent stu-

dents was up by about 300, while total

headcount was down by 65 students.

More than 36,000 students are enrolled at

the six universities.

The Board of Regents also found that

the total number of students graduating with

an associate or bachelor’s degree at the state’s

six public universities has grown by 33 per-

cent since 2005.

USDA-funded tribal administrationbuilding open

A grand opening was held Sept. 20

for the Sisseton Wahpeton Oyate adminis-

tration building in Agency Village, S.D., to

celebrate the completion of the $31.2 mil-

lion project. The project was funded by a

USDA Rural Development Community

Facilities loan and represents the largest

Community Facilities loan ever distrib-

uted by the South Dakota Rural

Development agency.

The Sisseton Wahpeton Oyate Indian

Tribe is located on the Lake Traverse

Reservation in northeastern South Dakota

and southeastern North Dakota. The new

facility will serve the tribe’s 7,000 members

and will replace 26 individual offices.

Bobcat, NDSU sign R&D deal

Bobcat Co. has pledged its continued

support of research and development at

North Dakota State University’s Technology

Incubator in Fargo, where Bobcat is an

anchor tenant.

Bobcat will match $2 for every dollar

provided by a grant through North Dakota’s

Centers of Excellence program, which pairs

research and and development hubs at the

state’s universities and colleges with private

companies in an effort to stimulate eco-

nomic growth. Bobcat is contributing

more than $400,000 toward the program,

which will result in more than $200,000 in

grants for NDSU.

InterstateTelecommunications gets broadband loan

Interstate Telecommunications

Cooperative Inc., based in Clear

Lake, S.D., will receive a $24.9 mil-

lion USDA loan to upgrade its plant

and complete an FTTP network to pro-

vided enhanced broadband services for its

customers. The loan was provided through

the agency’s telecommunications loan pro-

gram and will finance the installation of

fiber networks.

A&B Business offers erasable toner printer

In an effort to reduce paper usage,

Toshiba has launched a multifunction

printer that can erase printed images and

text, allowing paper to be reused up to five

times. The printer uses a special toner

whose color is removed by passing the

paper through the eraser at a high temper-

ature. The equipment also sorts paper into

reusable and un-reusable sheets and can

digitize documents prior to erasing.

Toshiba partner A&B Business, which has

17 locations throughout the Dakotas,

Minnesota and Wyoming, is making the

equipment available to its customers.

Study shows impact of historic preservation in SD

A study commissioned by the South

Dakota State Historical Society and conduct-

ed by Rutgers University found that about

5,500 jobs created in the state in 2011 were

directly attributable to spending on preserv-

ing and rehabilitating buildings, places and

objects of historical and cultural signifi-

cance. The study also found that historic

preservation spending of $275 million gen-

erated $96.3 million in additional income.

Tourist visiting historic and cultural attrac-

tions accounted for 22 percent of the state’s

visitors and $237 million in spending.


ND Petroleum Council inducts Mau into hall of fame

The North Dakota Petroleum Council inducted Bob Mau,

president of MW Industries, into its hall of fame during the group’s

annual meeting, held September in Grand Forks, N.D. Mau is the

10th inductee into the hall of fame and was selected for his more

than 35 years of service and commitment to promoting and devel-

oping the oil and gas industry in North Dakota.

Mau’s career in the oil industry began as a worker on service

rigs and pumping wells. He later founded several businesses, includ-

ing exploration company Eagle Operating Inc., Wolverine Drilling

Co., Eagle Well Service and, most recently, Kenmare, N.D.-based

drilling rig manufacturing company MW Industries, where he cur-

rently serves as president.

Mau has served on the NDPC board of directors and executive

committee since 1999.

Bob Mau (center) is welcomed into the North Dakota Petroleum CouncilHall of Fame by NDPC Chairman Terry Kovacevich, NDPC Hall of FamersJeff Herman and Wayne Bieberdorf and NDPC President Ron Ness.PHOTO: NORTH DAKOTA PETROLEUM COUNCIL

David MacLennan

Cargill board elects MacLennan CEO

Cargill’s board of directors has elected David

MacLennan, currently the company’s president and

chief operating officer, as CEO, effective Dec. 1. He

will succeed Gregory Page, who will serve as execu-

tive chairman.

MacLennan joined Cargill in 1991 and has

held various leadership positions within the finan-

cial, risk management, energy and animal protein

businesses in the U.S., London and Geneva. He was

elected president and chief operating officer in 2011.

In addition to his role as CEO, MacLennan

will retain the title of president of Cargill and will

continue as a director of the company.

Klein appointed to SRT board of directors

SRT Communications announced that

Deanna Klein has been appointed to the SRT board

of directors for District 4, representing Minot,

Burlington, and Surrey, N.D.

Klein is an associate professor of business

information technology and Minot State

University and has served as a public relations and

academic liaison for the InfoTech – Minot

Technology Center.

SRT Communications is based in Minot and

is the state’s largest telephone cooperative. It

employs more than 200 people and serves more

than 48,000 customers.

Starion Financial hires Dowlingas EVP of business banking

Tim Dowling has joined Starion Financial as

the executive vice president of business banking. In

this role, Dowling partners with the market presi-

dents to oversee the general management of the

designated branch locations including staff, finan-

cial and sales performance, among other duties.

Dowling has more than 40 years of banking

experience. He most recently served as a regional

president for a large community bank in

Washington state.

Hospice of the Red River Valleynames executive director

Kevin Provost has been named executive

director of Hospice of the Red River Valley in

Fargo. He holds a master of business administra-

tion degree and has more than 20 years of health

care leadership experience. He most recently

worked as a vice president at Sanford Health. Prior

to that, he served as an administrative director with

Essentia Health-St. Joseph’s Medical Center in

Brainerd, Minn.

|PRAIRIE PEOPLE|

Deanna Klein

Kevin Provost

Tim Dowling


4190 26th Ave. South • (701) 356-2136 www.uj.edu

celebrates joining the

Doctor of Physical Therapy Program This professional program is located in a new facility in the heart of Fargo’s medical community.

Effective July 31, 2013, Jamestown College PT Program has been granted Candidate for Accreditation status by the Commission on Accreditation in Physical Therapy Education (1111 North Fairfax Street, Alexandria, VA, 22314; phone: 703-706-3245; email: [email protected]). Candidate for Accreditation is a pre-accreditation status 1# -#)45-*512 "5*8 *8$ !1335,,512 12 &++/$(5*-*512 52 .87,5+-4 %8$/-07 6('+-*512 *8-* indicates that the program may matriculate students in technical/professional courses and that the program is progressing toward accreditation. Candidate for Accreditation is not an accreditation status nor does it assure eventual accreditation.

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editation status by the Commission on Accrfor Accrfective July 31, 2013, Jamestown College PT PrEf

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PrairiePrairieusiness

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online

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|PRAIRIE PEOPLE|

Riffey named Wells Fargo senior business relationship manager

Travis Riffey has joined Wells Fargo’s business

banking team in Fargo as a senior business relation-

ship manager. In this role, he will work with busi-

ness customers to help meet their commercial

deposit, cash management and credit needs. Riffey

has more than 12 years of financial services experi-

ence. He joined Wells Fargo in 2002 as a specialist

for Wells Fargo Banker Connection in Fargo.

JLG promotes Medd to branch manager

Todd Medd has been named branch manager

of JLG Architects’ Fargo office. Medd, a registered

architect and project manager, has worked on sev-

eral notable projects in the area, including the Fargo

Loretta Block building renovation, Black Gold cor-

porate headquarters and the Sanford Health clinic

in Moorhead, Minn. He is active in numerous local

and state groups and is a graduate of North Dakota

State University in Fargo and the University of

North Dakota in Grand Forks.

Medd joined JLG in 2010. He previously

worked for HKS, one of the largest architecture

firms in the country.

McQuade becomes first AE2Schief financial officer

AE2S (Advanced Engineering and

Environmental Services Inc.) has hired Sam

McQuade as the first chief financial officer for AE2S

and its affiliated companies. McQuade brings 17

years of experience with start-up, midsize, and

Fortune 500 firms, including technology and profes-

sional services businesses with engineering, con-

struction, financial services, and consulting activities.

Originally from Bismarck, N.D., he earned a

joint master of business/master of arts degree in

international business and cross-cultural commu-

nications from European University in Geneva,

Switzerland. He also has a bachelor's degree in

accounting from the University of Mary in

Bismarck and a Six Sigma Green Belt certification.

Svihovec leads direction ofSDAHO

Angelia Svihovec, administrator and CEO of

the Mobridge Regional Hospital in Mobridge, S.D.,

has been elected chairperson of the South Dakota

Association of Healthcare Organizations. Svihovec

served the last year as chairperson-elect of

SDAHO. She has worked at the Mobridge Regional

Hospital since 2001 and has served on the SDAHO

board of trustees since 2009.

As chairperson of SDAHO, Svihovec will pro-

vide leadership and direction for health care across

South Dakota on a state and federal level along

with the 10-member board of trustees. SDAHO

represents 54 hospitals and 33 long-term care facil-

ities across the state.

Larson Engineering hiresregional manager

Larson Engineering Inc. has hired Kevin

Nelson as regional manager to oversee its North

Dakota operations. Nelson will be responsible for

the company’s market expansion in the region and

developing a broad coalition of engineering servic-

es to meet the needs of its diverse client base.

Nelson was formerly the office manager for

Ulteig’s Bismarck, N.D., operations, as well as a

member of the company’s board of directors. He

currently serves on the State Board of Registration

for Professional Engineers and Professional Land

Surveyors for North Dakota.

Travis Riffey Sam McQuade

Kevin Nelson

Angelia Svihovec

Todd Medd

Mark Baron

USD professor receives excellence in education award

Mark Baron, chair of the division of educa-

tional administration within the School of

Education at the University of South Dakota, has

been awarded the Excellence in Education award by

AdvancED for his contribution to PK-12 schools

and higher education in South Dakota.

The honor is based on several criteria, includ-

ing generating a common vision and mission for

higher expectations among students, faculty and the

education community, demonstrating a record of

significant and distinguished contribution to the

education profession, providing a lasting positive

impact on student learning, and serving as a role

model for students and/or future educators.

Baron joined the USD education school in

1991. He has worked in higher education for more

than 20 years.

AdvancED is the world’s largest education

community, serving more than 30,000 public and

private schools and districts across the United States

and in more than 70 countries that educate over 16

million students.


northern plains business resource

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|BUSINESS DEVELOPMENT|

It’s not often that an event in Fargo includes

multiple interpreters for foreign language

speakers but this was the case during a welcome

event/news conference held Sept. 10 at the 2013

Big Iron farm implement show. Gov. Jack

Dalrymple and Dean Gorder, executive director of

the North Dakota Trade Office, welcomed interna-

tional attendees participating in the annual farm

implement show’s international visitor’s program

and highlighted the continued growth experienced

by North Dakota exporters in recent years.

Representatives from North Dakota implement

makers as well as a Ukrainian ag producer were also

on hand to speak on the shared benefits of contin-

ued trade among countries.

More than 100 international visitors attended

Big Iron this year, representing countries including

Kazakhstan, Nigeria, Romania, Ukraine, Uruguay,

Australia, Bosnia, Germany, Japan, Latvia, Liberia,

Malawi, Russia, South Africa, Tanzania and Zambia.

In his remarks, Dalrymple credited the NDTO

for its success in building international interest in the

event and North Dakota products, noting that the

public-private organization was established in 2005

with $75,000 in funding from the state legislature as

an experiment. The organization has since hosted 39

trade missions and welcomed more than 750 interna-

tional guests from 35 countries to Big Iron. North

Dakota’s exports have grown more than 250 percent

since 2005, accounting for nearly $4.3 billion in 2012.

Businesses in North Dakota currently export prod-

ucts to 175 countries and the state ranks fifth among

all states for export growth. And while commodities

continue to be a major source of export activity,

Dalrymple noted that the majority of export growth

over the past seven years has been in goods and serv-

ices, which is the focus of the NDTO.

“We are very proud of the actual results,”

Dalrymple said. “Export growth is what we are moti-

vated to achieve.”

Stacy Anthony, international sales manager at

Fargo-based Brandt Holdings Co., said the company

participated in its first trade mission in 2006 and has

since grown its export business exponentially. The

company currently exports products to 18 countries.

He told event attendees that the company views prod-

uct exports as a win-win, offering opportunities for

both sides of the deal to grow agriculture industries

around the world.

Volodymyr Kulshyn of Ukragroinvest Holding

in Ukraine offered an international perspective of Big

Iron during the welcome event, telling attendees he

finds the show interesting because it offers the oppor-

tunity to view a variety of equipment, meet people,

and learn about different crop seeds. He said produc-

ers in Ukraine desire to achieve levels of production

equal to U.S. producers and will continue using U.S.

equipment in order to meet that goal.

More than 800 exhibitors displayed at Big Iron this

year. Approximately 30 North Dakota companies,

including machinery manufacturers and other agribusi-

ness companies, took part in the International Visitors

Program, which included in-field demonstrations, farm

and ranch tours, educational discussions and buyer-sell-

er receptions, all coordinated by the NDTO. PB

Kris BevillEditor, Prairie Business

701-306-8561, [email protected]

Attendees of the 2013 BigIron farm show in Fargocheck out the latest in JohnDeere equipment and otherfarm implements. The annu-al event attracts more than80,000 visitors, includinginternational delegationsconsidering trade options. PHOTO: KRIS BEVILL

Export opportunities abound for ag businesses International attendance at annual farm show demonstrates trade’s role in local economyBY KRIS BEVILL




Two new Governor Research Centers locat-

ed at the South Dakota School of Mines

and Technology are home to a collabora-

tion of private industry and researchers working

to advance cutting-edge technologies that could

ultimately boost the state’s economy and make it

a hub for advanced manufacturing.

The Advanced Manufacturing Process

Technology Transition & Training center, led by

Christian Widener, is focused on developing

advanced manufacturing technologies such as cold-

spray, a technology which accelerates metal pow-

ders to supersonic speeds and can be used to restore

aircraft or heavy machinery parts that have been

damaged or corroded, potentially saving compa-

nies and the federal government millions of dollars

in expensive equipment replacements.

The new center, AMPTEC, is further advanc-

Public/private partnerships promotepositive economic developmentResearch centers at SDSMT bring industry, researchers together to advance cutting-edge technologiesBY KRIS BEVILL

David Salem, director of the Compositeand Nanocomposite AdvancedManufacturing center at the SouthDakota School of Mines andTechnology, talks with Cecille O'Neill,an advanced materials technician.PHOTO: AMY WRIGHT, SOUTH DAKOTASCHOOL OF MINES AND TECHNOLOGY

(continued on page 28)


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ing groundwork research conducted at a previous SDSMT

Governor Research Center known as the Repair, Refurbish

and Return to Service center, which was also headed by

Widener. AMPTEC is more prominently focused on private

industry relationships than its predecessor and has secured

$2 million in industry contributions in addition to the state’s

$2 million five-year investment. Global companies such as

aircraft and missile component designer Moog Inc. as well as

South Dakota companies including HFW Friction Stir

Welding, Flexible Robotic Environment and Daktronics are

among the industry partners working to develop advanced

manufacturing technologies at the center.

Widener says that because newer technologies like

those being developed in the AMPTEC lab haven’t been vet-

ted in industry, private companies benefit from the expertise

that lies in the lab. “The center is about training engineers

and technicians with experience in these technologies that

you can then forward over to the companies,” he says. “A lot

of these technologies have long learning curves. It’s not like

you can just go buy a laser and train a guy for a few months

and then he’s an expert. You need to nurture people for years

in the technology. The most cost-effective way to do that is

during their education.”

There are about 20 students actively working in the

AMPTEC center, ranging from incoming freshman to post-

doctoral students.

Potential economic development impact stemming

from AMPTEC could lie in the expansion of existing com-

panies or in the relocation of outside companies to the

state. Another source of positive economic development

impact could come from the success of startups created to

utilize technologies developed at the center. Widener says

two companies were created as a result of work done at the

Repair, Refurbish and Return to Service center. The center

also converted a $2 million investment from the state into

$5 million in revenues and the creation of 20 high-paying

jobs, with an additional 30 people at least partially support-

ed through research activities at the school. He hopes to

raise the bar higher with AMPTEC, beginning with VRC

Metal Systems, a Rapid City, S.D.-based startup which is

licensing a cold spray patent from SDSMT to manufacture

cold spray and laser powder deposition equipment. The

patent makes it the only company in the market with hand-

held high-pressure cold spray capability. The company, par-

tially owned by Widener, is in its first year and is projected

to have $1 million in revenues, with expectations that it will

continually grow and potentially attract other companies

with an interest in the technology to the area.

The Composite and Nanocomposite Advanced

Manufacturiung (CNAM) center, led by David Salem, is

focused on meeting the need for strong, lightweight materi-

als to be used for a variety of applications, including auto and

aerospace manufacturing. Salem says that while the benefits

of composite materials for use in those industries have been

known for some time, the cost to produce them has prohib-

ited their widespread use. The goal of the CNAM center is to

reduce the cost of composite materials and to further devel-

op nanocomposite technologies through partnerships with

private industry including South Dakota-based Raven

Industries Inc. and Falcon Plastics.

“What we’re doing is bringing together technologies

that already exist but need some further development,”

Salem says. He says the composite industry is fragmented

and a consortium such as the one now housed at SDSMT is

the best way to advance the technologies needed to drive

costs down. The CNAM center is believed to be the only cen-

ter in the U.S. devoted to composite and nanocomposite

technology advancements. Progress made at the center could

not only open up new markets for its partner companies, but

could also attract outside companies to expand or relocate to

South Dakota and may also spur new startups. PB

Kris Bevill

Editor, Prairie Business


"You need to nurture peoplefor years in the technology.The most cost-effective way to do that is during their education.”

- Christian Widener, director, Advanced Manufacturing ProcessTechnology Transition and Training Center

South Dakota School of Mines

(continued from page 26)


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|BREWERIES|

Fargo Brewing Co. co-owners (from left) JohnAnderson, Aaron Hill and Chris Anderson, at thecompany’s brewery and tap room in Fargo.PHOTO: KENSIE WALLNER


|BREWERIES|

A Brewing IndustryCraft breweries increase in popularity throughout regionBY KRIS BEVILL

Anew trend has been brewing throughout the north-

ern Plains over the past few years. Craft breweries,

roughly defined as independently owned micro-

breweries that produce beer unique to that establishment,

have been opening their doors throughout the region in

order to serve growing demand for craft beer and alterna-

tive gathering places. North Dakota is now home to five

breweries and multiple others have opened throughout

South Dakota and the Minnesota lakes area, with more on

the way thanks to relaxed restrictions and a public thirsty

for choices.

Opening the Legislative TapLegislative changes at the state levels have only recently

allowed breweries to open tap rooms and sell their products

in-house. Other regulatory changes have also now made it

possible for craft brewers to independently distribute their

products to other businesses without enlisting a wholesale

distributor.

Before Minnesota legalized tap rooms in 2011, brewers

could only give away samples in a sampling room, which did-

n’t exactly lend itself to profitability, says Tina Hanke, one of

four owners of the Bemidji Brewing Co. in Bemidji, Minn.

“Now you’re able to sell full pints, sample trays, in addition to

growlers and of course you can still sell wholesale,” she says.

“Having that many more products available that you can sell

directly to your customer rather than having to distribute all

of it is a huge boon, especially for a starting business.”

The state of Minnesota approved tap rooms two years

ago, but the legislature left the licensing specifics up to each

municipality, so entrepreneurs like the Bemidji Brewing

group had to engage city leaders to educate them on tap

rooms and the purpose they serve before being granted a

license to open. “They pretty much had to create a new license

for us because we’re not a bar and we’re not a restaurant,” she

says, adding that once the city council learned about the

group’s plans they quickly came on board and Bemidji

Brewing Co. was able to open its tap room in June.

North Dakota’s legislature just passed a law earlier this

year allowing craft breweries to open tap rooms and distrib-

ute their product without the use of a distributor so long as

the amount of beer sold does not exceed 10,000 barrels per

year. The new law has impacted North Dakota’s first wave of

breweries to varying degrees. The Fargo Brewing Co., which

was established in 2010 and was already using a distributor to

sell its product in the area, moved its brewing operations in-

house and opened a tap room in September. The Laughing

Sun Brewing Co. in Bismarck, which opened as a brewpub

and brewery in late 2012, is now eyeing opportunities for dis-

tributing its craft beer to other locations throughout

Bismarck-Mandan.

Thirsty for ChangeAnother factor contributing to the recent ramp-up of

craft breweries throughout the region is simple supply and

demand. The popularity of craft beer is on the rise through-

out the nation — about 7.3 million barrels of beer were sold

by craft brewers nationwide during the first half of this year,

up from 6.4 million barrels during the first half of 2012,

according to the Brewers Association. The Midwest has been

slower to embrace the craft brewery trend, as with most

national trends, but local demand has also been steadily

increasing and breweries were needed in order to serve the

market.

The fact that the local market was entirely underserved

was a deciding factor in Fargo Brewing Co.’s decision to base

its company where it did, Anderson says. When he and his

brother, John, initially began planning to open a brewery sev-

eral years ago, they intended to open a space in the craft beer-

loving Pacific Northwest, where he was first introduced to the

product. But after realizing that the existing strong market for

craft brew in that region also meant ample competition for

shelf and tap space, the pair decided to focus on Fargo

instead. “At the time there was nothing in Fargo or the sur-

rounding area,” he says. Happenstance led the brothers to

connect with Jared Hardy and Aaron Hill, who had separate-

ly also begun planning a craft brewery, and the four joined

forces to make their like-minded plans a reality in the Red

River Valley.

The founders of the Laughing Sun Brewing Co. and

Bemidji Brewing Co. share similar tales of having a passion

for craft brewing and a desire to share that passion with oth-


ers in a unique setting. Mike Frohlich and Todd Sattler,

co-owners of Laughing Sun Brewing Co., brought their

respective backgrounds in brewing and law together to

launch their business and become Bismarck’s first

brewpub in 2012. Neither Hanke nor any of her fellow

Bemidji Brewing Co. owners, Justin “Bud” Kaney, Tom

Hill and Megan Betters-Hill, are originally fromBemidji

but they chose to open their business there because they

saw the need for a unique business and had a passion

for craft brewing.

Economic ImpactsSales have met or exceeded expectations at all

breweries since opening and owners expect to continue

to grow their in-house sales as well as expand their dis-

tribution areas in the near future.

Bemidji Brewing Co., which got its start brewing

beer in a community kitchen for one tap account using

equipment the founders purchased with $16,000 raised

through a Kickstarter project, now has $30,000 invest-

ed in its tap room and brews about 20 barrels of beer

each month, equal to about 5,000 pints. “It’s quite a

bit of beer compared to what we were brewing before

but it’s still small on a scale of what breweries can do,”

Hanke says. The taproom typically offers four or five

types of beer for patrons to choose from and is open

Thursdays through Saturdays. Customers so far have

been a mix of tourists, locals and college students.

Hanke says the founders are currently focused on

growing the business large enough to support all four

owners in full-time positions and keep up with

demand from its growing customer base. “It’s a huge

financial commitment to start a brewery, so we’re eas-

ing our way into it,” she says. “The demand is there,

|BREWERIES|

Bemidji Brewing Co. founders (from left) Justin “Bud” Kaney, Tina Hanke, Tom Hill and MeganBetters-Hill brew about 20 barrels of beer each month to sell in the tap room and distributelocally. PHOTO: JOE HENSEL



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it’s just a matter of how can we grow smartly and not

take on too much debt.”

At an average age of 28, the owners of Bemidji

Brewing Co. represent a much-needed segment in com-

munities throughout the region — young entrepre-

neurs. The foursome has also embraced downtown

Bemidji for its place of business and is happy to play a

role in downtown redevelopment efforts. “It’s been a

good experience so far and I feel like Bemidji has a lot of

good energy,” Hanke says. “It’s been a nice time to start a

business in this town.”

Fargo Brewing Co. took the unique route of con-

tracting with an out-of-state brewery to produce its beer

when it incorporated in 2010, selling it at local bars and

restaurants to generate revenue and gauge the market

before moving ahead with its own brewery plan.

“Contracting allowed us to prove the business model to

ourselves, the bank and the area and move that into build-

ing our own production space here in Fargo,” Anderson

says. Total project costs for the company’s brewery, includ-

ing production equipment, the packaging line and other

items came to just over $1 million, half of which the com-

pany was able to raise through early distribution revenue

and private investors. Three of Fargo Brewing Co.’s own-

ers currently work full-time at the brewery, which offers

between four and eight styles of beer in the tap room three

days a week. The company sells between four and six kegs

each week, according to Anderson, and plans to continue

distributing to other locations, eventually expanding to

serve the entire region. “In the not too distant future we’re

looking at expanding into parts of Minnesota, South

Dakota and eventually working our way down towards

the Twin Cities,” he says.

While Fargo Brewing Co.’s tap room hasn’t been

open long enough to gauge its impact on the downtown

Fargo area, Anderson steadfastly believes that craft brew-

eries have a unique and positive impact on local

economies. “Beer and breweries tend to become social

meeting places,” he says. “They exist in an area between a

restaurant and a bar and they tend to really foster a sense

of community. A brewery can make a huge difference in a

town’s overall feel and appeal.”

Laughing Sun Brewing Co.’s Sattler agrees that brew-

eries offer a unique atmosphere and style of business that

promotes a sense of community, to the benefit their local

economies. “In a place like Bismarck, where it’s just start-

ing to get a lot of different types of businesses downtown,

we think we are a part of that,” he says. Kate Herzog, mar-

keting and assistant director for Bismarck’s downtown

business association says Laughing Sun fits well with the

downtown area’s desire to promote local and unique

experiences. “We always look for the thing that contributes

to the identity of the community,” she says. “It really did

fill a demand that we had heard of. They’re really tied into

the local economy of downtown.”

Laughing Sun Brewing Co. is open seven days a week

and usually has nine types of beer on tap for its patrons,

who can also listen to live music several nights each week

and peruse local artists’ collections hanging on the brew-

pub’s walls. The brewery is located in the historic Laskin

Building in downtown Bismarck and was renovated

almost entirely by Sattler and Frohlich, with the help of

family and friends. That sweat equity saved the pair

mightily in start-up costs and they were able to get the

business up and running for about $250,000. Sattler and

Frohlich have made the brewery their full-time occupa-

tions and currently employ a staff of eight. Sattler says the

brewery is on pace to exceed its goal of producing 400 bar-

rels of beer by the end of the year and may begin distrib-

uting product to bars and restaurants in Bismarck soon.

“Right now we’re producing all that we can and we’re

serving it all in the pub, so it’s been great,” he says.

As other taprooms and breweries open throughout

the area, including in Minot, N.D., Moorhead, Minn., and

Brookings, S.D., existing craft brewers say they welcome

the friendly competition. Anderson notes that craft brews

account for less than 10 percent of all beer sales in the U.S.,

so while they may compete with each other, there is more

camaraderie than competition among craft brewers as

they work together to compete with large breweries. “We

as craft brewers tend to have a very good working relation-

ship,” he says. “I know that if I had an issue with some-

thing, I could call any of the people I know in the indus-

try and they would help me out.”

“That’s one of the things that really appealed to me

about the industry and what we do there is a lot of collab-

oration,” adds Sattler. “That attitude brings people out

that might not have done it otherwise. When you know

you’ve got other people in the industry supporting you, it’s

a great thing.” PB



|BREWERIES|



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|HEALTH CARE|


|HEALTH CARE|

Health Care Reform 101What businesses need to know about the Affordable Care ActBY KRIS BEVILL

Just months before the largest health care reform in

recent U.S. history begins to be implemented, health

care experts in the region say they were still finding

themselves telling business owners that the Affordable Care

Act was, in fact, the law. While penalties for large businesses

have been delayed until 2015 and the roll-out of public mar-

ketplaces has been bumpy at best, the law will still go into

effect on Jan. 1 as planned, requiring all individuals in the

U.S. to carry health insurance. Welcome to the changing

world of health insurance policy, where misinformation,

delays and short timelines to react have left many impacted

parties confused and wondering how they will be affected

and what they need to do to comply with new regulations.

And while there are some blanket answers for insurance plan

reform questions, there are many more single issues that are

business specific, which makes the process of disseminating

information that much more difficult. The good news,

according to experts, is that there are multiple resources

available to help businesses identify and devise a strategy to

comply and there is still time to put a plan into action. Here,

we offer a rundown of the most common questions and

concerns, and where to look for advice on how to address

health care policy over the coming years.

Size MattersThe size of your business makes a difference as to when

and how health care reform will impact you. Businesses with

fewer than 50 full-time equivalent employees are classified as

small businesses and have requirements separate from large

businesses. But what qualifies as “full-time equivalent” and

where do part-time employees factor into the equation?

Under the ACA, a full-time equivalent employee is

defined as an employee who works 30 hours per week or an

average of 130 hours per month over the course of a year.

Hours worked by part-time employees throughout the year

must be tallied and divided by 120 to determine the number of

full-time equivalent workers employed at a business. If the

combined total of full-time and part-time employees is fewer

than 50 full-time equivalent employees, the business qualifies

as a small business. Small businesses are not required to pro-

vide health coverage for their employees, however businesses

with existing health plans that want to continue providing cov-

erage must either apply to have their plans grandfathered into

the new program, choose a new plan from a marketplace or

drop group coverage entirely and direct their employees to the

marketplace to purchase their own insurance.

Mike Potts, director of employer consulting and wellness

services at Blue Cross Blue Shield of North Dakota, says 80 per-

cent of the 5,000 large and small employers currently offering

BCBS plans have elected to keep their current policies,

although he believes many small businesses are taking a wait-

and-see approach to the federal marketplace before they make

a final decision whether to drop their coverage or maintain a

company plan in the coming years.

Small businesses with plans that are not grandfathered or

that are considering a change can utilize the federally run

insurance marketplace known as SHOP (the Small Business

Health Options Program). The marketplace offers access to

insurance plans providing a range of coverage options, from 60

percent to 80 percent, in bronze, silver and gold categories. The

SHOP website was initially scheduled to launch Oct. 1, but was

delayed until Nov. 1. Ruth Krystopolski, president of Sanford

Health Plan, says the delayed roll-out still gives small business-

es enough time to process their options, however, and that

small businesses can use SHOP to better judge the costs of

their current plans compared to the marketplace offerings.

Additionally, SHOP offers businesses with 25 or fewer employ-

ees who earn no more than $50,000 annually the possibility of

additional premium tax credits. Krystopolski encourages busi-

nesses owners who think they may qualify for those credits to

contact a tax adviser for further evaluation.

Large businesses are required to offer affordable health

insurance to full-time employees and their dependents begin-

ning in 2015 or be subject to penalties. In order to be deemed

“affordable,” the employee’s insurance premium for single cov-

erage must be no more than 9.5 percent than his/her income

and the insurance policy must meet the 60 percent actuarial

value threshold rule, meaning that the employer plan must

cover at least 60 percent of the cost of the employee’s benefits.

“If [the business] makes it past both of those tests, they’re fine,”

Krystopolski says. “If they fail on either of those tests then they

need to make a decision as to whether they’re going to do

something to pass those tests or if they’re going to be willing to

pay the penalty in 2015.”

Penalties for large businesses were originally scheduled to

kick in on Jan. 1 but now that they have been pushed to 2015,


large businesses will likely use the coming year to evaluate their

options and determine a course of action for the future. “Large busi-

nesses need to look now at where they’re at so that as they’re making

changes for 2015, the changes they make help them comply with

whatever the regulations are,” Krystopolski says.

For businesses that employ close to 50 employees, a strategy for

compliance might mean cutting back on employee hours or new

hires in order to fit within the small business category.

Specific to our region, where many agricultural producers

employ seasonal workers who work well over 30 hours per week dur-

ing a short employment period, the coming year offers the opportu-

nity to measure employee hours and determine whether their busi-

ness falls under the small or large category.

Other large employers may take a variety of measures to reduce

their costs of compliance. Ross Manson, principal at Eide Bailly,

notes several recent plan changes announced by major corporations

that indicate the range of solutions being explored by large employ-

ers: IBM announced a plan to move all retirees to a private health

plan exchange; Walgreens said it will move its current employees to

the private exchange and UPS announced it will no longer provide

coverage for spouses of employees. “There are a number of ways

businesses are evaluating this from an employer perspective,” he says.

“It’s important to determine your strategy and consider how it will

impact your competitive advantage when it comes to recruitment

and retention of employees."

Labor Pool Limits OptionsWith historically low unemployment throughout the entire

northern Plains, most health insurance experts believe companies

will continue to provide health plans for their employees in order to

attract and retain workers. “Maybe that doesn’t matter in some busi-

nesses, but in a tight employment market I think you need to factor

in the cost and retention of employees if you’re a company that does-

n’t offer health insurance,” Krystopolski says. Potts agrees that the

area’s employers feel the tight workforce means they need to offer a

competitive compensation package and will likely offer insurance

plans to their employees. Manson, however, foresees the possibility of

some companies opting to pay employees a higher wage and send

them to the public marketplace to purchase their own insurance,

where there is a chance they will qualify for individual tax credits and

pay less for insurance in the long run. “I’m guessing that lower-wage

industries will take that approach whereas higher-wage businesses

will continue to offer insurance because that’s what their talent pool

wants,” he says.

How Much Will It Cost?The full financial implications of the ACA on businesses will be

as varied as the types of businesses and their employees, but there are

a few built-in fees that will apply to every policy:

• The PCORI (Patient Centered Outcomes Research Institute)

fee will be $2 per person covered under the plan beginning in 2014.

So, if your employee insures a family of four under their policy, the

fee will total $8.

• The transitional reinsurance fee, which is a fee collected to

issue payments to insurers that cover high-risk individuals on the

public marketplace, will total $63 per person in 2014.

Fully insured plans will be assessed an additional health insur-

ance industry fee, which can be expected to increase the cost of insur-

ance premiums by about 2 percent, according to Manson. He adds

that while the ACA does contain some set increases, it would be dif-

ficult for businesses to fully attribute increased health plan costs to

the new law. “I think that would be inaccurate because a lot of it

comes back to their particular utilization,” he says.

For large businesses that choose to pay rather than play in 2015,

they can expect to receive a $2,000 fine per employee after the first 30

employees for each month that they do not offer health insurance.

Large businesses that offer insurance that is not considered afford-

able or doesn’t meet the minimum coverage threshold will be

assessed a $3,000 fine per employee. While some businesses may

believe it is less expensive to take the penalty hit as opposed to offer-

ing health plans, Krystopolski points out that businesses receive tax

incentives for paying a portion of insurance premiums whereas if

they choose to send employees to the public exchange they will

receive nothing. “You need to add all of those things together before

you know where you would land as a business,” she says.

Insurance premium changes under the ACA will vary greatly

depending on the age and health of a business’ workers. A business

with older, sicker workers may see its premiums go down in 2014,

whereas younger companies with employees who rarely use their

insurance will likely be subject to an increase. Manson says he has a

client expecting a 1 percent premium increase; another client will

incur a 30 percent increase.

|HEALTH CARE|

"It's important to determine your strategy andconsider how it will impact your competitiveadvantage when it comes to recruitment andretention of employees."

- Ross Manson, principal, Eide Bailly



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|HEALTH CARE|

What Happens Next?Businesses that haven’t yet devised a strategy to com-

ply with the ACA aren’t out of time, but experts encourage

them to begin evaluating their situation now in order to

make necessary changes. “Step back, look at your specific

situation and then make an informed decision,” Manson

says. “We’ve helped many clients establish a starting point.”

Eide Bailly has developed an analytic tool for this purpose.

The tool can be used to evaluate a number of criteria,

including identifying the number of full-time equivalent

employees and how much that number has changed over

the course of a year. Manson says he also helps clients eval-

uate their potential for premium increases, waived employ-

ees and other items of interest. Businesses may consider

adding items such as wellness programs that encourage

employees to take part in activities that could reduce their

utilization of health insurance, he says.

Organizations such as BCBS and Sanford Health have

well-versed experts on the new regulation who are ready

and willing to provide information to businesses. “If we

can’t find the answers we’ll go to whoever it is who needs to

find the answers for them,” Krystopolski says. “We are here

to help businesses of all sizes navigate through this change.”

Potts and other BCBS representatives have hosted 16

events throughout North Dakota over the past year to

inform people of the changes and will continue to provide

information as needed and requested. He says he sympa-

thizes with business owners because the numerous details

of the new law make it difficult to fully understand. “It’s

almost hard to know if you’re violating some rules,” he says.

Looking ahead to the first few years of the ACA, small

businesses and individuals are expected to feel the effects

early in 2014. Large businesses may also begin to make

changes as they prepare for 2015, but the full impacts of the

new law are not expected to be realized until 2016 and

beyond. “I think employers are going to sit back and watch

this first year and not make too many changes,” Manson

says. “You’ll obviously have your bleeding-edge employers,

but I think the majority of business owners will take a tem-

pered approach and see how the public marketplace devel-

ops, how the private marketplace develops, what other new

solutions will be out there and available and how individu-

als will react to the marketplace. That will be a big deter-

miner for employers too.”

“Prepare for the road to be bumpy, probably for the

next 24 to 36 months,” Krystopolski says. “These are not

things you can react to. You really have to think about what

you are going to do next.” PBKris Bevill

Editor, Prairie Business701-306-8561, [email protected]

Additional resources are available online:www.eidebailly.com/services/health-care-reform/

www.sanfordhealthplan.org

www.itstartswithbluend.org

www.sba.gov/healthcare

www.healthcare.gov




|LEAN HEALTH CARE|DIGITAL EDITION ONLY

Many people hear the term “Lean” and think

of automaker Toyota, which is credited for

developing a waste reduction process for its

manufacturing system that inspired wider adoption of

the lean concept in manufacturing. Lean is focused on

continuous process improvement, reducing waste,

improving work flow, reducing steps, asking questions

such as: How can we improve this process? What extra

steps can be eliminated? What is my relationship to

others in the process and how could that be improved.

Toyota, Total Quality Management (TQM) and

Continuous Quality Improvement (CQI) lead the way

to creating tools and techniques for applying this type

of thinking to people and systems in the workplace.

Quality is not a new term to the long-term care

industry, however, and neither is the lean concept. There

are national quality programs and state level quality pro-

grams that provide key quality indicators and bench-

marks for all skilled nursing and assisted living organiza-

tions. Those organizations are measured against each

other as well as others at both a state and national level to

ensure they are meeting those quality goal indicators.

In addition to quality program benchmarks,

ongoing labor market challenges, reimbursement legis-

lation in border states, rising operating costs and a

strong desire to meet the customer’s service expecta-

tions motivated Moorhead, Minn.-based Eventide

Senior Living Communities to launch a Lean Quality

journey in January.

“We recognized that our traditional management

systems were falling short of addressing the pace of

change and expectations of our organization,” says

Eventide CEO Jon Riewer.

The first step necessary in launching Lean Quality

efforts is to partner with experts who can help build the

knowledge and skills required to be successful. Thanks to

a Minnesota Job Skills Partnership grant, Eventide was

able to do that. Minnesota Job Skills Partnership grants

are designed to bring educational institutions and busi-

ness and industry together. Janelle Klinke, vice president

of human resources at Eventide, and Mary Ryan, director

of custom training services at Minnesota State

Community and Technical College (MState) in

Moorhead began outlining and planning the project in

the summer of 2012. Eventide and MSTATE Custom

Training Services in Moorhead successfully authored and

were awarded this grant in late 2012.

In January, six core groups comprising approxi-

mately 75 employees began learning the Lean concepts

and tools under the guidance of Deb Johnson, Lean con-

sultant at M State’s Detroit Lakes, Minn., location, and

immediately began creating cross-functional teams of

employees who problem solve everyday issues in the

workplace. These teams are made up of employees from

all levels of the organization including front-line care-

givers, charge nurses, nurse managers, and included

administration and ancillary departments such as activi-

ties, dining services, and maintenance. Six new Lean

teams will begin learning and applying the basic concepts

and techniques this fall and winter.

The executive team and corporate office staff are

applying Lean techniques to improve processes,

reduce waste and provide even better service to the

Eventide campuses.

Eventide has found that Lean is much more than

simple tools and techniques. It provides a framework of

working together and forming relationships with open

attitudes and new habits that allow the organization to

improve the systems in employees’ daily work life. “We

know that the culture and management process are the

systems that will sustain Lean Quality thinking at

Eventide,” Reiwer says. “We are building sustainability

across all campuses through train the trainer, process

improvement project events, and we are engaging our

staff in entirely new ways.”

Key leaders at Eventide met Oct. 11 to continue the

Lean conversation and create a strategic plan for defining

“service” at Eventide, how “hospitality” is a significant

ingredient of everything the organization does and how

it will measure employee delivery of service and hospital-

ity. Organization leaders believe that if these items can be

identified and defined it will support Lean Quality efforts

Thinking ‘lean’ in health careFocus on efficiency, waste reduction combats workforceissues and budget constraintsBY JANELLE KLINKE


DIGITAL EDITION ONLY|LEAN HEALTH CARE|

throughout the organization at all levels. For example,

service can be measured in quality and quantity related

to tasks; hospitality is a “feeling” we infuse into our envi-

ronments through people, behaviors and attitudes.

Value-added key strategies Eventide intends to

develop include:

1. Teambuilding across the organization

2. Cross-functional team development

3. Improved business processes for greater effi-

ciency and cost control

4. Better Lean leaders — knowledgeable engaged

supervisors who can lead the direct care staff through

sustaining Lean Quality

5. Improved job satisfaction across all employees

6. Improved customer satisfaction through

improvements to legacy procedures with a renewed focus

on “hospitality and service”

7. A sustainable Lean program that is integrated

with all other Quality programs at Eventide

These accomplishments tell a story about connec-

tions between people and measurable results in each of

the key areas. “The preliminary results are exciting,”

Riewer says. “I am pleased to see Eventide employees

coming together in new ways. We’re making it OK to

question legacy systems and empowering employees at

all levels to be innovative with their problem solving.

Lean at Eventide has resulted in reduced inventory, less

waste, improved time management, organized and safer

work spaces, along with enhanced problem-solving

across the organization.” PB

Janelle KlinkeVice President, Human Resources

Eventide Senior Living [email protected]


|TALK OF THE TOWN|

Active AberdeenNew housing, diverse economy makes for bustling business in SD’s northeast hubBY KRIS BEVILL

Downtown redevelopment efforts are just one part of an overallgrowth pattern taking place in Aberdeen, S.D. PHOTO: TROYMCQUILLEN, MCQUILLEN CREATIVE GROUP


Aberdeen has experienced a 72 percent increase in retail sales in the last 10 years.Our growing community is the perfect place for new and expanding businessopportunities. For more information on what Aberdeen can offer your business,contact the Aberdeen Area Chamber of Commerce at 605-225-2860.

Come GrowWith Us.

|TALK OF THE TOWN|

Aberdeen, S.D., has long served as a hub for

activity in northeastern South Dakota and its

status as the region’s economic driver has held

strong in recent years. City leaders promote the town’s

quality of life as an attractant and various national

outlets agree, recently ranking Aberdeen among the

top places in the country for young people and

retirees to live. The area’s fruitful hunting grounds are

known nationwide and have led the town to be

deemed one of the top 200 towns in the country for

sportsmen and women.

Housing BoomAberdeen is the third largest city in South Dakota,

after Sioux Falls and Rapid City, and had a population of

about 26,000 at the time of the 2010 census. However, the

community has steadily grown in recent years as busi-

nesses have expanded and more options for employment

have opened up, leading to a relative housing boom that

is expected to continue for the near future. More than

1,000 new housing units have been added in the past five

years and more are being built, both to accommodate

new growth and to provide updated housing for the

community’s current residents. “The whole housing con-

tinuum in Aberdeen is very active,” says Gail Ochs, presi-

dent of the Aberdeen Area Chamber of Commerce.

Recent development activities in Aberdeen have

included an historic building turned apartment building,

townhomes for residents aged 55 and older, single-fami-

ly homes and an affordable housing project led by the

Aberdeen Housing Authority. Additional housing units

may likely be added downtown as building owners con-

sider second-floor apartments as part of downtown revi-

talization efforts, says Heidi Appel, executive director of

the Aberdeen Downtown Association. The association

heads a Façade Grant program to support revitalization

and historic preservation efforts and has successfully

drawn in new businesses and investors that are expected

to continue having a positive impact on the community

for some time. Appel says four buildings changed hands

in a 30-day period this fall, “which in a community the


|TALK OF THE TOWN|

size of Aberdeen is a very large number,” she says.

Jim Barringer, executive vice president of the

Aberdeen Development Corp., says the town’s housing

growth stems from a city-led evaluation conducted several

years ago that identified a lack of affordable housing as an

issue impeding growth. At the time, developers were leery

of building in Aberdeen at the rates necessary to make

projects affordable for local residents, but as the recession

began to take its toll on the rest of the country, they relent-

ed and began to build out Aberdeen, one building at a time.

“Developers would build one and see how it worked. They

had it rented out before they got it completed, so they built

a second one, and a third one and fourth one,” he says.

To provide additional assurance to developers who

were unsure of success in the community, Absolutely

Aberdeen created a risk pool to guarantee developers’ hold-

ing costs in case newly built houses didn’t sell, but the pool

was never used, says Julie Johnson, executive director of the

group. “No one ever had to absorb any holding costs,” she

says. “So we took down that risk pool and reinvested in

helping some of the affordable housing projects.”

Barringer estimates the current population of

Aberdeen exceeds 27,000 people. He attributes new growth

to a number of factors, including farm retirees who are

moving into town and new residents who are relocating for

employment at organizations such as Molded Fiber Glass

Companies, Wells Fargo and Sanford Health.

Wells Fargo employs about 120 people in Aberdeen

but it is currently filling 20 new jobs as it expands its stu-

dent loan group. Company spokeswoman Staci Schiller

says that while Wells Fargo’s national student loan collec-

tions group is headquartered in Sioux Falls, the company

chose to expand the group in Aberdeen for two reasons —

available space at its existing building and the ability to

attract workers to the location. “We’ve got a pretty good

base there already,” Schiller says. “Aberdeen has also provid-

ed a fabulous workforce in the past.”

Economic VarietyAberdeen’s diverse economy saved it from the

recession, according to city leaders, and the region’s

agriculture, ranching and hunting sectors continue to be

strong performers.

From fall through spring, pheasant hunting domi-

nates the local community and drives economic activity at

retail and hotel outlets. The South Dakota Game, Fish &

Parks estimates that hunting has a $42 million annual eco-

nomic impact for Aberdeen and the surrounding area,

according to Brenda Moore, chief administrative officer of

the Aberdeen Area Convention and Visitors Bureau. The

number of out-of-state visitors to the area during hunting

season is so large that Skywest offers three flights per day to

the Aberdeen Regional Airport rather than the typical two,

which Moore says is appreciated but that the community is

working to make three flights the daily norm. “We think we

have earned our way to a third flight,” she says.

Local businesses make the most of hunting season by

offering special promotions and supplies for hunters. The

Aberdeen Hotel Alliance runs a promotion known as the

$1 Million Pheasant Hunt, which Moore says has become

very popular. The alliance consists of 12 members includ-

ing the recently opened TownePlace Suites by Marriott.

Now HiringWorkforce is an issue to be dealt with in Aberdeen as

it is in every community in the region. The town’s unem-

ployment rate sits at or below 3 percent, and community

leaders are continuously striving to attract new workers to

the area. A semi-annual regional job fair held in September

had a record 54 employers on-hand to meet with potential

employees. In October, Advantage South Dakota, a region-

al economic development initiative of Northwestern

Energy, the Aberdeen Development Corp. and Absolutely

Aberdeen and local communities, held a job opportunities

showcase designed to bring awareness to the area’s ample

employment opportunities. “As we have visited amongst

ourselves and with the power company, one consistent

challenge for all of our communities is the availability and

quality of the labor,” Barringer says. “We need to enlighten

more people about the employment opportunities here

and be able to do more training.”

Eight companies participated in the job showcase and

many others attended, representing every industry sector

and skill set in the area, according to Johnson.

Despite workforce concerns, a business friendly cli-

mate on the state and local level as well as a growing com-

munity are leaving local businesses optimistic for the near

future and many entrepreneurs are continuing to expand

and open new businesses at a steady rate, Ochs says. “They

are doing well,” she says. “Every week we hear about some-

thing new.” PBKris Bevill



SMART DESIGN FOR SMART HEALTHCARE.

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|HIGHER EDUCATION|

More than 700 people packed into

North Dakota State College of

Science’s Bisek Hall in Wahpeton,

N.D., on Sept. 20 to celebrate a much-needed

expansion to the college’s diesel technology

training program.

In his welcome remarks, NDSCS President

John Richman noted that the $10.3 million

expansion has allowed the college to increase

enrollment in the diesel tech program, adding

that while the upgraded and expanded facility

doesn’t alone determine the quality of education

provided through the program, it is a “major fac-

tor” in its success. “Ultimately, this celebration is

about the expanded capacity NDSCS will have to

educate and train future diesel technicians for

the state of North Dakota and the upper

Midwest,” he said. “This high-tech facility will

also allow the college to further utilize technolo-

gy to enhance our students’ hands-on learning

experience on the latest state-of-the-art equip-

ment.”

The expanded facility, now encompassing

nearly 125,000 square feet, makes the NDSCS

diesel tech facility one of the largest in the coun-

Diesel tech demand drivesmajor NDSCS expansion A $10.3 million expansion to Bisek Hall makes it one of the world's largest diesel technician training centers BY KRIS BEVILL

Diesel technology program students and community guests listen as N.D. Gov.Jack Dalrymple speaks at the grand opening celebration inside Bisek Hall atNorth Dakota State College of Science held Sept. 20 in Wahpeton, N.D. PHOTO:NORTH DAKOTA STATE COLLEGE OF SCIENCE


|HIGHER EDUCATION|

try and perhaps the world, according to Barb

Bang, dean of technologies and services. “We

don’t know of any school that’s even close to us,”

she says. “We think we may be the biggest in the

world.”

There are currently 251 students enrolled in

the school’s two-year diesel technology pro-

grams, representing seven states throughout the

Midwest. Several associate degree options are

offered, including a general diesel tech degree as

well as specialty programs including a Caterpillar

dealer service technology program, a John Deere

service tech program and, new this year, a John

Deere construction and forestry tech program

and a Case IH tech program.

Representatives from John Deere,

Caterpillar, Butler Machinery Co., Titan

Machinery and RDO Equipment Co. were

among the attendees gathered to celebrate the

facility’s grand opening. Richman applauded the

companies for collaborating to provide class-

room training despite the fact that they regularly

compete in the marketplace. Private industry,

including small companies as well as program

sponsors, provides the vast majority of equip-


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ment used in the diesel tech programs, according to Bang. Companies also sponsor and

recruit students to the programs to feed their growing need for workers. Job placement rates

across all of the college’s diesel tech programs is at or near 100 percent and demand contin-

ues to be high for skilled diesel technicians in many industries. Average beginning monthly

salaries for diesel technicians graduating from the schools’ programs in the 2011-’12 academ-

ic year ranged from $2,763 to $3,607.

Bang says student recruitment is a “critical component” of industry partnerships for the

diesel tech programs. Sponsorships typically include some type of financial support, often an

agreement for the company to purchase the student’s tools and/or an offer for tuition reim-

bursement upon graduation and full-time employment with the sponsor. “That’s why it

works so beautifully,” she says. “Companies are finding students in those smaller towns and

they are employees from day 1.”

John Deere is the diesel tech facility’s longest-running partnership program and has

been a sponsor for 20 years, Bang says.

Despite the facility expansion and increased enrollment capabilities, the college was still

forced to turn away some students from the general diesel tech program this fall. Diesel tech-

nicians are currently in huge demand regionwide due in the surging agriculture, energy and

heavy construction industries and Bang says interest in the programs has been increasing as

a result. “Diesel is one hot topic on our campus,” she says.

In his remarks during the grand opening, Gov. Jack Dalrymple noted the many job

openings for diesel technicians throughout North Dakota alone and said programs such as

those offered at NDSCS are “more needed now than ever before in our state, adding, “These

are not just jobs. These are careers.” PBKris Bevill


|HIGHER EDUCATION| Federal grantallows for more advancedmanufacturingtraining

The North Dakota Advanced

Manufacturing Skills Training Initiative, led

by the North Dakota State College of Science

in Wahpeton, N.D., was recently awarded a

$2.7 million, four-year grant from the U.S.

Department of Labor which will be used to

expand advanced manufacturing training

opportunities. “Ultimately, we’re going to be

increasing the things we do in automation

(robotics), welding, fabrication and precision

machining,” says Barb Bang, dean of tech-

nologies and services at NDSCS.

The grant will allow NDSCS to carry

out an expansion to the welding program at

the college’s Fargo campus, purchase a variety

of equipment for its advanced manufacturing

programs and develop curriculum for online

courses designed for students who are cur-

rently employed to work towards a degree

while maintaining full-time employment.

The college will also purchase a mobile trailer

which will allow it to deliver equipment for

any of its advanced manufacturing programs

to training sites throughout the state. The

program enhancements are slated to be

offered beginning next fall.

Bang says the college earned the grant

after working with private industry to identi-

fy educational needs and following up with a

grant application requesting funding to pro-

vide the tools needed to support those needs.

“We have really heard from industry in the

past three to four years how great their need

is,” she says.

In a joint statement, North Dakota’s

congressional delegation congratulated

NDSCS for its successful grant request and

efforts to continue providing needed train-

ing. “Partnerships between higher education

and industry, like those forged by NDSCS,

help ensure that our state’s students get the

results they need from their education, while

providing the skilled workers our businesses

need to grow and provide the best products

and services,” the delegation said.


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Business TransactionsCommercial Law – Litigation

Construction LawOil & Gas Law


Al Hodnik, president, chairman and CEO of Allete, unveilsthe company’s vision for an energy corridor to transportenergy and other products to and from North Dakota’sBakken region at a news conference held Sept. 25 at theCapitol Building in Bismarck, N.D. He is joined by Gov.Jack Dalrymple, Allete officials and representatives of thestate’s Empower Commission. PHOTO: KRIS BEVILL

Energy company floatsBakken energy corridor planGov. Dalrymple, Allete announce vision to establish 500-milepipeline system alongside existing transmission systemBY KRIS BEVILL

Natural gas flaring has become an increasingly critical issue in the Bakken but

extensive pipeline networks need to be installed before gas can be captured and

moved to locations for processing and usage. Pipelines also continue to be in demand

to move oil and wastewater out of the region. None of it can be accomplished with-

out land-use agreements to locate infrastructure, but after years of receiving continu-

ous requests to access land for various uses landowners are tiring of the process and

landowner fatigue has become a concern throughout the region as well.

Duluth, Minn.-based energy company Allete believes it has devised a plan that

could dually ease landowner fatigue and deliver energy and other products to and

from the Bakken. The company currently owns a 465-mile-long transmission line

which delivers electricity from the Milton R. Young power plant near Center, N.D.,

and the Bison Wind Energy Center near New Salem, N.D., to Duluth and is current-

ly working to expand the line about 60 miles west to a location in the Bakken region.


The company believes that an energy transportation corridor, consisting of multi-

ple pipelines, could be developed alongside the transmission line path, utilizing the

existing right of way and minimizing land use.

Al Hodnik, president, chairman and CEO of Allete, unveiled the company’s

energy corridor vision during a news conference held Sept. 25 at the North Dakota

State Capitol in Bismarck. He said the company believes a single, wide belt of right

of way would ease landowner fatigue and help solve a number of pressing energy

concerns within the state and region. Pipelines to move natural gas and oil could

reduce flaring and truck and train traffic in the Bakken. From Duluth’s port, where

the energy corridor would end, the products could easily be transported to large

markets on the East Coast, he said.

Additionally, he noted the potential for carbon dioxide from North Dakota’s

coal-fired power plants to be sent along the energy corridor to the Bakken for

enhanced oil recovery, although he admitted there is currently no demand for that

extraction method at this time. Other potential uses for the energy corridor could

include wastewater transport from the Bakken to fertilizer plants soon to be built on

the eastern side of North Dakota. Drinking water could also be moved from west-

ern North Dakota to urban populations such as Fargo. The energy corridor also

presents the potential for more wind power to be produced, stored and transport-

ed, he said.

The proposal has drawn the support of Gov. Jack Dalrymple who, along with

representatives of the state’s Empower Commission, joined Allete officials for the

announcement. “It’s very important that we reduce flaring and expand our takeaway

capacity for oil and natural gas,” Dalrymple said. “We need to move significantly

more natural gas than we are now.” He said Allete’s proposal offers the opportunity

for the state to accomplish that and he will encourage other companies to consider

participating in the project.

It is not yet known how much the energy corridor project would cost or how

it would be paid for, although one possibility is that Allete would carry out the proj-

ect and lease space in the corridor for others to use. The project is admittedly years

from fruition, but the company has already begun studying projects that could pro-

duce usage agreements, according to Eric Norberg, president of Allete Clean Energy.

“We look forward to working with project developers and government officials to

implement this vision,” he said. “We have an opportunity to pursue investments that

will help solve some current issues and lay the groundwork for more efficient move-

ment of energy products, water and wastewater in the future.” PBKris Bevill


“It’s very important that we reduceflaring and expand our takeawaycapacity for oil and natural gas. Weneed to move significantly more natural gas than we are now.”

- N.D. Gov. Jack Dalrymple

|ENERGY|


|ENERGY|

Matt Kolling, city attorney and assistantadminister for Dickinson, speaks to attendees at the Bakken ConstructionSummit on Sept. 25 in Bismarck, N.D.PHOTO: KRIS BEVILL

Controlling the chaosCity planners, developers gather to exploreBakken’s continuing development needs BY KRIS BEVILL

More than 200 developers, investors and local offi-

cials gathered in Bismarck, N.D., in late September

for the Bakken Construction Summit. Hosted by

Williston-based Dawa Solutions Group, the conference was

held to bring together interested parties to explore develop-

ment needs in western North Dakota and provide them with

information needed to successfully and thoughtfully improve

infrastructure, provide housing and develop other necessities

critical to serving the area’s rapidly growing population.

The theme of the event — Exploring a Billion Dollar

Construction Market — was based on 2012 building permit val-

uations from Bakken hub cities and city planners who presented

at the conference indicated that development activities through-

out the area will continue at a fast and furious pace for the fore-

seeable future.

Matt Kolling, city attorney and assistant administrator for

the city of Dickinson, demonstrated the rate of growth being

experienced there by noting that when Dickinson issued $57

million in new construction permits in 2009 it set a new record.


|ENERGY|

Last year, Dickinson’s new construction permits were valued at a

whopping $389 million. Through August this year, the city issued

$246 million in new construction permits.

Kolling said he doesn’t expect Dickinson’s final building permit

valuations this year to match 2012, partially because a late spring

dampened construction efforts but also because the city has adopted

a more measured approach to approving new developments. “We

don’t want to be a boom town,” he said. However he did note that the

city is currently tracking 90 development projects in its immediate

proximity, including the MDU Resources-Calumet Specialty

Products diesel refinery, known as Dakota Prairie Refinery, which is

currently under construction and expected to be complete in 2014.

Dickinson city officials have struggled to keep up with the bal-

looning workloads and infrastructure needs, but Kolling said the city

budget has grown from $21 million in 2010 to $73.4 million this year

and is in the process of hiring more personnel. The city is expected to

grow in population from an estimated 28,000 permanent residents

currently to about 42,000 residents in 2035, and is expected to require

up to $526 million of capital investments in public infrastructure over

the course of that time period. Expanded water infrastructure is

among the city’s most dire needs. Kolling said the city’s current sys-

tem has a capacity of 6 million gallons per day. This summer saw a

period of use that reached 5.8 million gallons per day.

Williams County Planning Director Ray Pacheco addressed the

wait times for project approvals and recent development moratori-

ums during his presentation, emphasizing his office’s efforts to “con-

trol the chaos” that has occurred around Williston and throughout

the county over the past few years as development activity surged.

“We’re trying to fix it,” he said. “We’re trying to clean things up.”

Included on Pacheco’s list of items to be addressed is improved regu-

lation of crew camps and thorough reviews of newly proposed proj-

ects. Proper oversight takes time and he admitted his office is also

understaffed, but said new employees were being added to help alle-

viate some of the backlog. The start-to-finish timeline for project

approval is about two months, he said. Pacheco, who joined the coun-

ty’s planning office just five months ago, said he was currently in the

process of rewriting the county’s zoning rules to offer some flexibility

in development projects. If approved, he said the rules could be in

place Jan. 1.

At just 24 years old, Watford City Assistant Planner Seth

Sampson was likely one of the youngest, and busiest, conference

attendees. Sampson has been in his role at Watford City for four

months, but learned quickly that development in the Bakken’s latest

hotbed of activity moves to the beat of its own drum. “Throw what

you know about development out the window when you come to

Watford City,” he told attendees. “It’s unlike anywhere else.”

Watford City had an estimated population of less than 2,000

people just two years ago. Today, it is estimated to have 8,000 people

living within city limits and another 4,000 people on its fringes,

Sampson said. The city is expected to require $284 million in infra-

structure expansions over the next four years, including a $56 million

wastewater treatment plant that Sampson said is first on the list of

must-haves. He said the city has witnessed an influx of developer

interest recently and expects the next two years to be “even more rapid

and chaotic.” Current housing projects recently completed or under

construction in the Watford City area include a 270-acre develop-

ment, a 280-acre development and a 90-acre development, among

others. To put it into context, Sampson said new housing projects

already on the books will more than triple the town’s size.

Public officials stressed a desire for developers to propose proj-

ects for single-family and townhome developments rather than apart-

ment units and urged caution when considering hotel projects, not-

ing that many new hotels have come online recently and the need for

additional hotels is limited. There continues to be a significant need

for commercial space throughout the region, however. Several speak-

ers indicated that as housing projects have begun to catch up with

demand, commercial development has become more feasible and

they anticipate quick ramp-ups of activity in that area in the coming

construction season. PBKris Bevill


Attendees of the Bakken Construction Summit held Sept. 25-26in Bismarck, N.D., listen as fellow attendees summarize theircompanies and networking needs during the AttendeeConnection session. PHOTO: DAWA SOLUTIONS GROUP


|EXPANSIONS |DIGITAL EDITION ONLY

Health care facilities are not exempt from the

constant struggle to keep pace with the

demands of the Bakken oil boom. Patient

loads at some western North Dakota clinics and hospi-

tals have more than tripled in the past three years as the

Bakken oil boom has drawn a historic number of peo-

ple to the region, leaving organizations strapped for

staff and space. Many facilities are also calling for addi-

tional specialties not previously necessary at their loca-

tions as they adapt to new demands associated with an

industry prone to specific injuries and an exploding

population base. And of course, housing also impacts

health care providers and organizations continue to

require additional housing units to shelter new workers.

There is no doubt that more medical services are

needed, but health care facility expansions are not easy to

pull off anywhere, much less in the fastest-growing

region of the country. And yet health care organizations

are managing to expand and improve their services in

places including Dickinson, Watford City, Tioga and

Williston, and leaders say workforce and housing short-

ages won’t deter them from providing the services need-

ed in those communities.

“These aren’t bad things in any way,” says Craig

Lambrecht, president of Sanford Health in Bismarck,

N.D. “We’re in legendary times in western North Dakota.

It’s just a matter of positioning ourselves so we’re part of

that infrastructure and recognize the challenges and take

them on. This is a great opportunity.”

Sanford Health is currently constructing a $30 mil-

lion “super clinic” in Dickinson. The new clinic is expect-

ed to open in the spring, slightly ahead of schedule, and

will replace Sanford’s current clinic, which Lambrecht

says is outdated and too small. “The building we’re in

now is a very tired building,” he says. “It does not have

enough space for us to support the medical needs of the

community or our own providers.”

At 80,000 square feet, the new clinic will be nearly

triple the size of its current facility. The clinic will also be

located on the fast-growing west side of Dickinson, as

Booming Bakken makesmedical expansions a mustSurging populations require larger facilities, more staff, more specialtiesBY KRIS BEVILL

Sanford Health is constructing aclinic in Dickinson, N.D., whichwill triple the size of its currentclinic space. The project is oneof many health care expansionprojects being carried outthroughout the region in orderto accommodate tremendouspopulation growth. PHOTO: SANFORD HEALTH


DIGITAL EDITION ONLY|EXPANSIONS|

opposed to the current clinic’s location near the center of

town, in order to better support the community’s grow-

ing population, Lambrecht says. And while construction

has been going well and the facility may open earlier than

expected, it seems it can’t open soon enough. The current

clinic saw 210 patients in one day in October, setting a

new record for the clinic and representing an incredible

task to accomplish, Lambrecht says. “And we only antici-

pate that that’s going to increase as far as patient volume

access,” he says.

When the new facility opens its doors, it will house

18 to 20 doctors and will support specialty services

including cardiology, orthopedic surgery and cancer

care, among others. Lambrecht says Sanford will also

continue to provide various specialty services as needed

throughout western North Dakota. Specifically, he says

the organization’s occupational medicine program has

been communicating with 17 counties throughout the

region in order to better meet the needs of employees

and employers. Between the expanded facility, specialty

service outreach and the organization’s new same-day

service policy, Lambrecht says Sanford has “a good

chance” of meeting the Dickinson area’s medical needs.

It can be assumed that the larger clinic will require

additional employees, but Lambrecht hesitates to esti-

mate the number of new staff members the organization

expects to add, noting that low unemployment, housing

shortages and a lack of daycare facilities make recruiting

new employees extremely difficult. Case in point, a recent

job fair hosted by Sanford in Bismarck attracted just 25

potential new hires.

“The biggest challenge we face right now in western

North Dakota, and that includes Bismarck-Mandan, is

workforce,” he says. “We need more workers. We have to

retain the workers we have. We have salary challenges

because the wages just keep escalating because the cost of

living is going up.”

In Watford City, where the pace of development has

reached a fever pitch and is not expected to slow anytime

soon, McKenzie County Healthcare Systems Inc. is also

dealing with an undersized and outdated facility, accord-

ing to Tucker Petersen, chief operating officer. The cur-

rent hospital sees an average of 550 patients per month

currently, up from an average of 120 per month three

years ago, he says.

Considering the increased need for emergency

medical services, a population that is expected to triple

within the next 15 years and a growing demand for

accommodations for elderly patients, the organization

determined that a new hospital, clinic and additional

nursing home space is desperately needed. A needs

assessment determined that an apartment building for

medical workers and additional assisted living units

should also be built.

A site for the new facilities was recently selected and

Petersen says a ground breaking is expected next spring.

The project cost is estimated at $55 million and the

organization is seeking $40 million from the USDA and

$15 from the Bank of North Dakota to fund the project.

The new hospital would have the same number of beds,

but would offer expanded emergency and operating

room spaces as well as additional lab and radiology serv-

ices. A timeline for project completion has not been

determined.

The USDA’s Rural Development office has made

health care in western North Dakota a priority, according

to Jasper Schneider, state director, and has provided more

than $20 million in funding for health care facility

expansions in recent months.

In August, the agency approved $8 million in

financing to construct a new clinic in Tioga to better

serve the facility’s rapidly growing number of patients. In

2010, the Tioga Medical Center served about 6,000

patients. This year that number is expected to be more

than 24,000, according to the rural development office.

The new, 15,000-square-foot clinic will be attached to the

existing hospital and will have 16 exam rooms, six

provider offices and space for outpatient education and

medical records storage.

In September, the rural development agency

announced that Southwest Healthcare Services in

Bowman has received $15 million to build a new hospi-

tal and clinic. Like other existing facilities throughout the

region, the current medical facilities in Bowman are out-

dated and not large enough to adequately serve the com-

munity’s growing needs for medical care. The new proj-

ect will consolidate separate hospital and clinic facilities

under one roof in a 59,000-square-foot facility which will

feature 10 inpatient beds, 24-hour emergency care serv-

ices and other services. It will be attached to an existing

long-term care center, which provides ample parking and

the potential for future development, the agency said.

The new facility is expected to be complete in 2015. PB




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EmploymentUNEMPLOYMENT RATE EMPLOYMENTJul-13 Jul-12 Jul-13 Jul-12

North Dakota 3.00% 3.10% 387,588 379,760

Bismarck MSA 2.5 2.6 61,444 61,743

Fargo MSA 3.3 3.5 116,850 116,212

Grand Forks MSA 4 4.5 49,998 51,030

Dickinson MiSA 1.4 1.5 22,293 20,749

Jamestown MiSA 3 3.1 10,017 10,746

Minot MiSA 2.7 2.6 36,412 35,747

Wahpeton MiSA 3.7 3.9 11,278 11,477

Williston MiSA 0.7 0.8 46,903 36,347

South Dakota 3.90% 4.50% 431,660 424,975

Rapid City MSA 3.5 4.3 68,181 66,302

Sioux Falls MSA 3 4 132,411 127,258

Aberdeen MiSA 3 3.6 22,786 22,597

Brookings MiSA 3.6 4.4 17,662 17,400

Huron MiSA 3 3.3 10,028 9,848

Mitchell MiSA 2.9 3.4 13,572 13,224

Pierre MiSA 2.7 3.4 12,475 12,238

Spearfish MiSA 3.7 4.4 12,913 12,659

Vermillion MiSA 4 4.8 6,641 6,694

Watertown MiSA 3 3.7 19,225 18,848

Yankton MiSA 3.3 4.1 11,839 11,621

Minnesota 5.20% 5.80% 2,824,557 2,794,166

Minneapolis-St. Paul MSA 4.9 5.8 1,804,882 1,763,444

Alexandria MiSA 3.9 4.6 21,031 20,843

Bemidji MiSA 6.7 7.7 20,642 20,342

Brainerd MiSA 6.3 6.7 45,336 45,949

Fairmont MiSA 4.9 5.6 11,078 10,907

Fergus Falls MiSA 4.6 5 30,362 30,433

Hutchinson MiSA 5.5 6.7 18,992 19,021

Marshall MiSA 4.4 4.8 13,894 14,542

Red Wing MiSA 5 5.4 24,584 25,249

Willmar MiSA 4.3 4.9 24,211 23,308

Winona MiSA 4.9 5.7 28,093 28,470

Worthington MiSA 4.2 4.6 10,925 11,084

Jul-13Jul-12

186211

95.7871.13

Average Rig Count

Jul-13Jul-12

9,3227,467

874,460676,249

179183

ProducingWells

AverageDaily

ProductionTotalPermits

Oil Production

|BY THE NUMBERS| | SPONSORED BY |

Jan2000 Jan2002 Jan2004 Jan2006 Jan2008 Jan2010 Jan2012 Jan2014

1.6

1.5

1.4

1.3

1.2

1.1

1

0.9Ca

nadi

an D

ollar

s to

One U

.S. D

ollar

94

92

90

88

86

84

821998 2000 2002 2004 2006 2008 2010 2012

MNNDSDUS

Perc

ent

Year

16.8

16.6

16.4

16

15.8

15.6

15.6

15.4

15.2

15

14.8Jul 1997 Jan 2000 Jul 2002 Jan 2005 Jul 2007 Jan 2010 Jul 2012 Jan 2015

% o

f tot

al p

erso

nal c

omsu

mpt

ion

expe

nditu

res

DateData provided by David Flynn, chair of the University of North Dakota Department of Economics. Reach him at [email protected].

Jan2000 Jan2002 Jan2004 Jan2006 Jan2008 Jan2010 Jan2012 Jan2014

7

6

5

4

3

2

1

0

Percent

E ective federal funds rate10-year treasury constant maturity rate

Interest Rates

Exchange

Percentage of residents with health insurance

Percentage of GDP devoted to health care expenditures

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