Mn valley business june2015

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Outdoor rooms are hot Also in this issue • Springwood Gardens • Glowing Hearth & Home • Valley Veggies Ryan Schmitz of Aquatic Gardens & Landscape. Photo by John Cross The Free Press MEDIA e Great Outdoors

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MN Valley Business June 2015

Transcript of Mn valley business june2015

Page 1: Mn valley business june2015

Outdoor rooms are hot

Also in this issue• Springwood Gardens

• Glowing Hearth & Home

• Valley Veggies

Ryan Schmitz of Aquatic Gardens & Landscape. Photo by John Cross

The Free PressMEDIA

The Great Outdoors

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“We couldn’t be happier with the way

the claim was handled. We are now

rebuilt, better and stronger than ever.

Thank you for everything.”

- Dennis Wolff

W.W. Blacktopping, Inc.

507.387.4081katoins.com

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Hello Business Professionals, below you will fi nd a quick survey we would appreciate you fi lling out. We try to get feed back from our viewers to keep our magazine fresh and informing. Instructions: please complete the survey, rip out the page, tape in half so the business reply is

on the outside, and place the survey in the mail. Again we appreciate your participation. If you have any questions please call 507-344-6336. Thank you!

How do you read the MVB?___ Online___ Magazine Paper___ Other _________________________

How often do you read the MVB?___ Every Month___ Bi-Monthly___ Every few months___ Barely Ever

Overall, how useful is MVB print magazine to you and your business?___ Extremely Useful___ Useful___ Unsure___ Not very Useful___ Not Useful at All

How would you describe the overall quality of MVB’s editorial content? (Select all that apply)

___ Useful ___ Comprehensive___ Irrelevant___ Informing___ Forward-thinking___ Relevant ___ Dull/Boring___ Unhelpful___ Sophisticated___ Other _________________________

Which of the following contact and general topics are you interested in seeing in MVB? (Select all that apply)

___ Digital News___ GMG News___ Data___ Politics___ Global Trends___ Trends___ Industry Talent___ Small Companies___ Technology___ Industry Specifi c (Auto, health, food)___ Other _________________________

What type of information are you most interested in reading in MVB (Select all that apply)

___ Investigative ___ Company/Executive Profi les___ News Analysis___ Best Practices___ Opinion___ Case Studies___ 40 under 40___ How-to___ In-depth/Topical Features___ News Roundup___ Data Lists/ Analysis___ Other _________________________

Which of the following departments are you interested in seeing covered in MVB (Select all that apply)

___ Ag Business ___ Industry Awards___ Opinions___ Stats___ GMG News___ Executive Moves___ Executive Interviews___ Business Strategy___ Other _________________________

What would you add or remove from MVB in order to make in more relevant to your business?____________________________________________________________________________________________________________________________________

What is your favorite section(s) to read in the MVB?____________________________________________________________________________________________________________________________________

Which of the following job titles most closely matches your current position?___ Head of Business

(Chairman, CEO Partner, Owner, Founder)___ C – Level (CMO, CFO, CSO, COO, CCO, other)___ Supervisor, VP, General Manager or

Managing Director

___ Department Head or Manager___ Sales Manager___ Media Director / Supervisor___ Media Buyer / Planner___ Ad Agency Marketing, Market Research___ Account Executive___ Creative / Production___ Analyst___ Attorney, Consultant___ Other

What is the size of your company/ Or total number of employees?___ Under 20___ 20 less than 50___ 50 less than 100___ 100 less than 250___ 250 less than 500___ 500 less than 1000___ 1000 less than 5000___ 5000 less than 10,000___ More than 10,000

What best describes your business and industry?___ Advertising Agencies___ Advertising and Marketing Support___ Manufacturers, Product Marketers___ Service Companies___ Technology Manufacturers & Services___ Consumer Package Goods___ Healthcare / Medical / Pharmaceuticals___ Automotive___ Household Goods___ Consumer Electronics___ Retail / Food Service Establishments___ Travel / Transportation Services___ Entertainment / Media / Interactive / Gaming___ Financial / Insurance / Real Estate / Legal___ Telecommunications Services and Utilities___ Government / Trade Association and

Religious Organizations___ Universities / College / Schools___ Other _________________________

Detach & Return this card so we can learn a bit more about you, your company and what you think about MN Valley Business Magazine.

If you have questions please call: 507-344-6336

Scan here to fi ll out online.

Woodhill Luxury Patio HomesMankato, MN

SOW THE SEEDS OF SUCCESS BY STAYING

CONNECTED TO OPPORTUNITIES

507.387.6031 www.eidebailly.com

Expect More From Your CPA FirmAs a regional CPA firm,

Eide Bailly delivers solutions that can help your business no matter what stage it is in. From tax and

audit services to specialty services such as technology consulting, cost segregation, wealth management

and more, we have the knowledge and understanding to help your business throughout its growth.

Our professionals can keep you connected to the opportunities that make sense for your business now, and in the future, so you can make

decisions with confidence.

MNVB June p01.indd 2 5/15/2015 10:57:54 AM

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Hello Business Professionals, below you will fi nd a quick survey we would appreciate you fi lling out. We try to get feed back from our viewers to keep our magazine fresh and informing. Instructions: please complete the survey, rip out the page, tape in half so the business reply is

on the outside, and place the survey in the mail. Again we appreciate your participation. If you have any questions please call 507-344-6336. Thank you!

How do you read the MVB?___ Online___ Magazine Paper___ Other _________________________

How often do you read the MVB?___ Every Month___ Bi-Monthly___ Every few months___ Barely Ever

Overall, how useful is MVB print magazine to you and your business?___ Extremely Useful___ Useful___ Unsure___ Not very Useful___ Not Useful at All

How would you describe the overall quality of MVB’s editorial content? (Select all that apply)

___ Useful ___ Comprehensive___ Irrelevant___ Informing___ Forward-thinking___ Relevant ___ Dull/Boring___ Unhelpful___ Sophisticated___ Other _________________________

Which of the following contact and general topics are you interested in seeing in MVB? (Select all that apply)

___ Digital News___ GMG News___ Data___ Politics___ Global Trends___ Trends___ Industry Talent___ Small Companies___ Technology___ Industry Specifi c (Auto, health, food)___ Other _________________________

What type of information are you most interested in reading in MVB (Select all that apply)

___ Investigative ___ Company/Executive Profi les___ News Analysis___ Best Practices___ Opinion___ Case Studies___ 40 under 40___ How-to___ In-depth/Topical Features___ News Roundup___ Data Lists/ Analysis___ Other _________________________

Which of the following departments are you interested in seeing covered in MVB (Select all that apply)

___ Ag Business ___ Industry Awards___ Opinions___ Stats___ GMG News___ Executive Moves___ Executive Interviews___ Business Strategy___ Other _________________________

What would you add or remove from MVB in order to make in more relevant to your business?____________________________________________________________________________________________________________________________________

What is your favorite section(s) to read in the MVB?____________________________________________________________________________________________________________________________________

Which of the following job titles most closely matches your current position?___ Head of Business

(Chairman, CEO Partner, Owner, Founder)___ C – Level (CMO, CFO, CSO, COO, CCO, other)___ Supervisor, VP, General Manager or

Managing Director

___ Department Head or Manager___ Sales Manager___ Media Director / Supervisor___ Media Buyer / Planner___ Ad Agency Marketing, Market Research___ Account Executive___ Creative / Production___ Analyst___ Attorney, Consultant___ Other

What is the size of your company/ Or total number of employees?___ Under 20___ 20 less than 50___ 50 less than 100___ 100 less than 250___ 250 less than 500___ 500 less than 1000___ 1000 less than 5000___ 5000 less than 10,000___ More than 10,000

What best describes your business and industry?___ Advertising Agencies___ Advertising and Marketing Support___ Manufacturers, Product Marketers___ Service Companies___ Technology Manufacturers & Services___ Consumer Package Goods___ Healthcare / Medical / Pharmaceuticals___ Automotive___ Household Goods___ Consumer Electronics___ Retail / Food Service Establishments___ Travel / Transportation Services___ Entertainment / Media / Interactive / Gaming___ Financial / Insurance / Real Estate / Legal___ Telecommunications Services and Utilities___ Government / Trade Association and

Religious Organizations___ Universities / College / Schools___ Other _________________________

Detach & Return this card so we can learn a bit more about you, your company and what you think about MN Valley Business Magazine.

If you have questions please call: 507-344-6336

Scan here to fi ll out online.

Woodhill Luxury Patio HomesMankato, MN

SOW THE SEEDS OF SUCCESS BY STAYING

CONNECTED TO OPPORTUNITIES

507.387.6031 www.eidebailly.com

Expect More From Your CPA FirmAs a regional CPA firm,

Eide Bailly delivers solutions that can help your business no matter what stage it is in. From tax and

audit services to specialty services such as technology consulting, cost segregation, wealth management

and more, we have the knowledge and understanding to help your business throughout its growth.

Our professionals can keep you connected to the opportunities that make sense for your business now, and in the future, so you can make

decisions with confidence.

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MN Valley Business • June 2015 • 5

F E A T U R E SJune 2015 • Volume 7, Issue 9

Terri Anderson and her husband John have operated Valley Veggies

on fifth generation family land between Mankato and Judson

on Highway 68 since 1997.

24Tim Shimek and his wife Renee own Glowing Hearth & Home, a

business that grew from his dad’s fireplace manufacturing

business, Heat-N-Glo.

20Springwood Gardens, owned by Karol and Dick Emmercich, is a

daylily paradise that sits atop a bluff overlooking the Minnesota River valley.

28

Outdoor kitchens, pond-less waterfalls, exotic fire features and

natural looking concrete pavers and stones are popular in the growing

outdoor living space trend.

16

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PUBLISHER

EXECUTIVE EDITOR

ASSOCIATE EDITOR

CONTRIBUTINGWRITERS

PHOTOGRAPHERS

COVER PHOTO

PAGE DESIGNER

ADVERTISINGMANAGER

ADVERTISING SALES

ADVERTISINGASSISTANT

ADVERTISINGDESIGNERS

CIRCULATIONDIRECTOR

James P. Santori

Joe Spear

Tim Krohn

Tim KrohnKent ThiesseHeidi SampsonNell MusolfRichard SiemersDean L. Swanson

Pat ChristmanJohn Cross

John Cross

Christina Sankey

Ginny Bergerson

Jen WanderscheidTheresa Haefner

Barb Wass

Sue HammarChristina Sankey

Denise Zernechel

June 2015 • VOLuMe 7, ISSue 9

MN Valley Business is published by The Free Press Media monthly at

418 South 2nd Street., Mankato MN 56001.

For editorial inquiries, call Tim Krohn at 507-344-6383.

For advertising,call 344-6336, or e-mail

[email protected].

$40 billion business is expandingState government has economic reach

You don’t normally think of state government as a business or the Legislature as its board of directors.

Scary thought, right?But as we sit in mid-May, we find

ourselves waiting to see just what the business of state government is deciding it will expand this year. And it does always expand.

The $40 billion biennial budget sometimes grows by 2 percent and sometimes 10 percent. This year it appears closer to 10 percent.

It sometimes grows automatically – more people become eligible for programs based on their income or need – and it sometimes grows on purpose by legislators expanding programs or boosting raw dollar amounts for any given state “business.”

The reach of that expanding business filters down to the economy in general and to a lot of smaller businesses. When the Legislature expands funding for schools -- another good bump coming this year -- every town and every city that has a school sees the gain.

The Legislature and governor had agreed in mid-May to expand spending on higher education by $166 million. That goes to cities like Mankato that have higher education institutions. We get a double shot of that because we have two state-sponsored schools in Minnesota State University and South Central College.

Minnesota’s health and human service “business” is one of the biggest state expenditures at nearly $13 billion every two years. Hospitals, home care facilities and nursing homes are funded with that money. Many small towns in the Mankato area as well as Mankato itself have lots of nursing homes and assisted living facilities.

A GOP proposal this year had funding increasing to those nursing homes by about $150 million.

The Mankato region also has a high concentration of state government employees who work for a number of state-funded businesses from MSU and SCC to the St. Peter Security Hospital and the regional Minnesota Department of Transportation office. State employees make up about 10 percent of the regional

work force.But the biggest government spending

boost to the economy would come from a massive new road funding bill. For the first time in many years, Democrats and Republicans were planning on anywhere from $7 billion to $11 billion in new spending on fixing roads and bridges over the next 10 years.

Those projects reach every county and city and small town in the state. It would bring road construction on a scale we haven’t seen in decades. It would be a headache for motorists but it sure would be a boon for the construction industry and its workers.

A 10-year road construction plan would likely bolster regional employment in a long-term sustainable way. And construction wages tend to be on the higher end of the regional wage scale.

But at the same time, there are always activities of state government that cost business money and have a negative impact on the economy.

The Mankato area’s robust agriculture industry and farmers may indeed likely face more costs as Gov. Mark Dayton pushes environmental legislation that would require farmers to take some land out of production in order to line streams and ditches with buffer strips. While the proposed mandates seemed to offer some flexibility, the alternative methods of water protection were also likely to add some cost to farming operations.

The expense side to the road construction bill would be a possible gas tax increase, which would also likely impact every business who uses vehicles or trucks to ship their goods or whose employees drive for their job.

The upside to that issue so far is that gas prices remain 40 percent below where they were last year, so even if there is a gas tax imposed, business and consumers would still be paying less.

A $2 billion state surplus will drive the growth of the government’s business this year. That’s something we haven’t seen in a while. MV

Joe Spear is executive editor of Minnesota Valley Business. Contact him at [email protected] or 344-6382. Follow him on Twitter @jfspear.

■ Local Business memos/ Company news ...............................7

■ Business and Industry trends ........9

■ Minnesota Business updates ...... 10

■ Business Commentary ................ 12

■ Construction, real estate trends . 33

■ Agriculture Outlook ..................... 34

■ Agribusiness trends. ................... 35

■ Job trends .................................... 36

■ Retail trends ................................ 37

■ Greater Mankato Growth ............. 38

■ Greater Mankato Growth Member Activities ...................... 40

■ From the editorBy Joe Spear

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Eide Bailly promotes EllingsonBen Ellingson has been named partner-in-charge of the

Mankato office of Eide Bailly, a regional certified public accounting and business advisory firm.

He assumes the role from Linda Koerselman, who retired from the firm in April.

Ellingson has more than 15 years of public accounting experience serving closely held companies and non-profit organizations. In addition, he co-chairs Eide Bailly’s First Focus Committee, which is the firm’s initiative to nurture a firmwide culture where women are as likely to succeed as men.

Ellingson is active in several professional organizations.

■ ■ ■

Javens honored by industryThe Minnesota Electrical Association honored Andrew

Javens of Javens Electric in Mankato for his contribution to the industry by serving on the MEA Board of Directors. MEA provides education, legislative representation, and industry information to electrical contractors and their stakeholders in Minnesota and surrounding states.

■ ■ ■

Lidstrom in new locationLidstrom Commercial Realtors has moved their offices

to the seventh floor of Profinium Place, 100 Warren St., Suite 708 in Mankato.

■ ■ ■

Person Elected Director of Federated InsuranceSarah Person of Mankato was elected to the board of

directors of the Federated Insurance Companies.Person is the owner of Exclusively Diamonds in

Mankato.Founded in 1904, Federated Insurance is a national

insurance and risk management organization that serves the property, casualty, health, and life insurance needs of clients in select industries.

■ ■ ■

Leibfried joins Eide Bailly partnershipBrenda Leibfried from the Mankato office of Eide Bailly,

a regional certified public accounting and business advisory firm, was accepted into the firm’s partnership.

She joins 14 other new partners bringing the total number of partners to 230.

Leibfried, a CPA, has 19 years of public accounting experience working primarily with financial institutions ranging in asset size from $10 million to more than $1 billion.

Greg Thoen honoredGregory Thoen a private wealth

advisor with Ameriprise Financial, has qualified for the company’s 2014 Circle of Success annual recognition program and will be honored for this achievement in 2015.

To earn this achievement, Thoen established himself as one of the company’s top advisors by consistently demonstrating exceptional commitment to financial planning and superior client service.

Thoen’s office is located at 1930 Premier Drive, Mankato.

■ ■ ■

Davis Comfort earns awardsDavis Comfort Systems has earned the 2014 Connected

Home Solutions Award, which recognizes the Trane heating and air conditioning dealers with the highest sales of Trane connected controls and fully integrated Nexia home automation products and Schlage door locks.

The company also earned the TCS Platinum Dealer Award, which recognizes Trane Heating and air conditioning dealers that deliver outstanding customer service based on consumer reviews submitted to Ingersoll Rand.

■ ■ ■

Condux adds James CurtisCondux Tesmec announced the

addition of James “Jimmy” Curtis as its new technical service manager. He will manage the development of training materials, as well as deliver onsite training and instruction to customers throughout the United States and Canada

Curtis brings over 20 years of customer support in the development and administration of training and instructional materials.

Condux Tesmec offers a full line of stringing equipment including pullers, tensioners and puller-tensioners, as well as productivity-enhancing conductor stringing tools and accessories.

■ ■ ■

Danberry, Standon honoredLaurie Danberry of Heintz Toyota received the 2014

Silver Level Sales Society Award for the seventh year from Toyota Motor Sales USA. This honor recognizes sales consultants that have sold over 190 new Toyotas and demonstrated outstanding customer satisfaction performance.

Jacki Standon received the 2014 Comptroller’s Award for Excellence from Toyota. The award recognizes comptrollers who successfully prepare and transmit their

■ Local Business People/Company News

Gregory Thoen

James “Jimmy” Curtis

■ ■ ■

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dealership’s financial statement according to Toyota’s accounting standards.

■ ■ ■

Winkels earns arborist credentialBridgett Winkels, and environmental scientist at ISG,

earned the credential of Certified Arborist by the International Society of Arboriculture. In addition to successfully completing the exam, certified arborists follow a code of ethics and have met all requirements to be eligible for the exam, which includes three or more years of full-time, eligible, practical work experience in arboriculture and/or a degree in the field of arboriculture, horticulture, landscape architecture, or forestry from a regionally accredited educational institute.

■ ■ ■

C.O. Brown honoredNorth Risk Partners, which includes C.O. Brown in

Mankato, has been awarded Platinum Partner agency by United Fire Group. The award is given to agencies that meet high standards of quality set by United Fire Group.

The areas of measurement include profitability, growth, retention and claim frequency.

Read us online!

To submit your company or employee news. e-mail to [email protected] Put “Business memo” in the subject line. Call or

e-mail Associate Editor Tim Krohn at [email protected]

or 344-6383 for questions.

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MN Valley Business • June 2015 • 9

AgricultureCrop prices stay low

Local corn prices in May continued to slide down continuing a several month trend. Corn was at $3.33 per bushel, down 20 cents from the previous month and down about $1 from May of 2014.

Soybean prices have held a bit steadier through the start of this year, but are still considerably lower than last year. Soybeans were at $9.36 per bushel in May, up 23 cents from the month before but below the $14.70 set in May of last year.

Hog prices rebounding After a few months of prices lower than have been seen

in more than a year and a half, hog prices perked up some in May.

A 185 pound carcass was selling locally for $80.06 in May, up from about $59 the month before but still far below the $110 it was at a year earlier.

EconomyGDP to decline in ’16

The Bureau of Economic Analysis reported that real gross domestic product (GDP) grew at an annualized rate of 2.2 percent in the fourth quarter of 2014. With the latest estimate for the fourth quarter, private inventory investment increased less than previously estimated, while consumption increased more than previously estimated.

Forecast real GDP growth reaches 2.7 percent in 2015 and declines to 2.3 percent in 2016. Growth is expected to be higher in 2015 because of greater business investment spending and increases in consumer purchases. However, a stronger dollar and lower demand from slower-growing economies are expected to reduce export growth and raise import growth.

Real disposable income grows by 3.1 percent in 2015 and by 2.2 percent in 2016. Total industrial production grows at 2.1 percent in 2015 and 2.8 percent in 2016. Projected growth in nonfarm employment averages 2.2 percent in 2015 and 1.5 percent in 2016.

■ Business and Industry TrendsInvestment growth higher

Forecast private real fixed investment growth averages 5.2% and 6.7% in 2015 and 2016, respectively, led by equipment in 2015 and by residential investment in 2016. Real consumption expenditures grow faster than real GDP in 2015 and 2016, at 3.2 percent and 2.6 percent, respectively. Durable goods expenditures drive consumption spending in both years. Export growth is 2.2 percent and 3.2 percent over the same two years, while import growth is 4.4 percent in 2015 and 5.8 percent in 2016. Total government expenditures rise 0.9 percent in 2015 and 0.5 percent in 2016.

EnergyCoal inventories up

Coal Electric power sector coal inventories increased by 3 percent in January 2015 from the previous month, leaving them 16 percent higher than in January 2014. Coal inventories have now increased for five consecutive months. The month-to-month increase was unusual, as inventories generally decrease during the winter months as coal-fired generation increases to meet winter heating demand. Warmer-than-normal January temperatures in areas where coal-fired generation is important, coupled with lower natural gas prices, contributed to the inventory growth.

Coal consumption in the electric power sector will decrease by 6 percent in 2015, despite an increase in overall electricity generation.

The retirements of coal power plants in response to the implementation of the Mercury and Air Toxics Standards also affect demand in the power sector and contribute to the decline. The full effect of the coal plant retirements will be felt in 2016, but projected rising electricity demand and higher natural gas prices increase the use of the remaining coal-fired fleet, mitigating the of the retirements as projected coal consumption in the electric power sector increases by 2 percent.

Electric rates on the riseResidential electricity prices increased during 2014, with

growth ranging from 1.3 percent in the Pacific Coast states to 9.8 percent in New England. Retail electricity rates have risen for various reasons. Many electric utilities purchase their power from regional wholesale electricity markets, which experienced higher prices last year. Other reasons commonly cited for higher retail electricity prices are the increased investment in transmission and distribution infrastructure, rising requirements to generate electricity from renewable energy sources, and utility investment in demand-side efficiency.

Ethanol to keep slippingAfter ethanol production in December 2014 topped 1

million barrels per day for the first time, it is estimated to have fallen to an average of 944,000 barrels in March 2015. Ethanol production averaged 935,000 barrels per day in 2014, and EIA expects it to average 944,000 in 2015 and 937,000 in 2016.

Biodiesel production averaged an estimated 83,000 barrels per day in 2014 and is forecast to average 82,000 barrels in 2015 and 84,000 barrels in 2016.

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■ Best Buy gives in to Apple PayAfter initially snubbing the

Apple Pay service, Best Buy has accepted the burgeoning mobile payments system launched by Apple. Apple Pay users can now make purchases using the Best

Buy iOS app, while in-store purchases at Best Buy outlets using NFC will be allowed later this year.

Best Buy adopting Apple Pay is a big deal since the retailer is also part of Merchant Customer Exchange (MCX), “a merchant’s association that backs its own mobile payments platform called CurrentC,” according to PC World.

“MCX merchants make their own decisions about what solutions they want to bring to their customers...When merchants choose to work with MCX, they choose to do so exclusively.”

Other retail giants like Wal-Mart, Rite Aid, CVS and Sears are members of MCX as well. Rite Aid and CVS stopped accepting Apple Pay transactions at their stores a week after the service was launched.

Meanwhile, Best Buy executives believe customers these days have a variety of methods to pay by, and being in the retail sector, Best Buy should provide as many options to customers as it can to make its service the best and most convenient.

■ New Target hire to redo groceryTarget has hired former Safeway and

PetSmart executive Anne Dament to lead its grocery business makeover.

The Minneapolis/St. Paul Business Journal reports that she started her career as a buyer for Eden Prairie-based Supervalu and held several

merchandising and management positions at Pleasanton, Calif.-based supermarket chain Safeway. She spent the past six years as an executive at Phoenix-based PetSmart Inc.

Dament grew up in the Twin Cities and worked at the Kowalski’s store on Grand Avenue in St. Paul during high school and college. She graduated from the University of St. Thomas in 1989.

Target is trying to liven up its grocery business over the next 12 to 18 months and said it will focus on six food groups, including healthier snacks; coffee and tea; premium sauces and oils; specialty candy; wine and craft beer; and yogurt and granola. It’s part of a larger effort to connect with millennials.

■ Minn. companies add robotsRecently, Robert Grove of Cosmos Enterprises, a small

southeastern Minnesota machine shop, invested nearly $250,000 in a robot that can handle many of the repetitive tasks in his shop. It was a response to an ongoing problem in finding enough qualified employees, according to the Rochester Post Bulletin.

A growing number of manufacturers in Minnesota are turning to robots to help ease a labor shortage.

Robots aren’t new in large manufacturing plants, but

small companies across Minnesota also are embracing a new generation of robots to stay competitive.

In Grove’s brightly lit shop, the robot sits in a cage to keep workers from walking into the rapidly moving arm. The robot’s job is to load metal blocks into computerized machine tools that shape the parts. It then removes the finished part -- all without ever eating lunch or taking a bathroom break.

“For sure you gain 45 minutes a day of production,” Grove said. “That’s real money.”

Grove said the robot doubled the output of two milling machines. It also allows his skilled workers to focus on using their skills, instead of simply loading parts into a machine all day.

Alexandria Industries has more than a decade of experience with robots. The company, which makes aluminum parts for everything from medical equipment to military rifles, is a much bigger business, employing about 370 workers.

“We have nine robots tending machines today,” engineer Todd Carlson said recently. “I’ve got two more robots on order right now and scheduled to order two more before the end of the year.”

■ Xcel: Limit solar garden sizeXcel Energy Inc.,

alarmed that its Minnesota community solar ¬program has

unleashed large-scale corporate solar development, said it will enforce size limits on projects — a controversial step that would cancel more than 80 percent of those proposed so far.

The Star Tribune reports that even with a size limit, Xcel officials said Minnesota will boast one of the largest community solar programs in the nation. Such programs, which Xcel pioneered in Colorado, let customers subscribe to shared solar arrays built by energy developers in farm fields or on large commercial rooftops.

Xcel’s size-limit directive, issued in a regulatory filing, jeopardizes plans by St. Paul-based Ecolab Inc., Macalester College in St. Paul and St. Olaf College in Northfield to offset all their electricity with subscriptions to multiple solar gardens.

Such deals by large energy users represent “a very different product than the one that was intended by the Legislature,” said Aakash Chandarana of Xcel.

Although Xcel supported the 2013 Minnesota law that authorized community solar gardens, the utility has complained that solar developers are proposing clusters of up to 40 adjacent solar gardens on single sites. Many projects, Xcel said, are being marketed only to large customers, and resemble the large “utility scale” solar projects that Xcel is developing separately at lower cost than solar gardens.

■ Minnesota Business Updates

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12 • June 2015 • MN Valley Business

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I’ve written about what makes successful entrepreneurs but someone asked me to discuss what pitfalls small business CEOs face that may make them “not so

successful.” Entrepreneurs regularly confront a host of tough challenges such as landing their first sale, growing their customer base, hiring the right employees, managing cash flow and accessing funding, among many others.

I am going to suggest that the biggest challenge entrepreneurs may face is either a self-limiting or self-inflated view of their capabilities. Fear, self-doubt, overconfidence, “in-group” thinking, misplaced commitment to a selected course of action, or entrepreneurial myopia can all lead an entrepreneur to sabotage his or her business.

Gallup research revealed several potential blind spots that can hurt the success of entrepreneurs. I really liked the report done by Sangeeta Bharadwaj Badal, senior researcher, entrepreneurship at Gallup. I will share some of her key points that she identifies as “blind spots” and then provide some advice for each:

Relentless focus on profitability: Making money is a business’ primary objective. But when profit orientation becomes an obsession, customer relationships can suffer. In a “profit first” culture, employees face immense pressure to maximize revenue with little consideration for the customer experience

Advice: Don’t lose sight of the human element in business. Keep customer expectations in mind when making decisions.

Overconfidence: Confidence grows businesses, but overconfidence can hurt them. Overconfidence leads entrepreneurs to underestimate the complexity of a situation and to overcommit resources when pursuing an opportunity without first assessing the competition.

Advice: Avoid the “speed trap.” When the window of opportunity is narrow, pause and build what-if scenarios before taking action.

Unfocused creativity: Intellectual curiosity spurs growth, but too many ideas can be counterproductive. A lack of focus might cause an entrepreneur to launch multiple initiatives at the same time, losing sight of the core business and confusing his or her teams.

Advice: Select ideas that streamline your business and add value for your customers.

Need for control: Go-it-alone entrepreneurs can single-handedly get things done in a startup environment. But as the venture grows, their need for control keeps these entrepreneurs from focusing on activities that bring the highest value to an expanding business.

Advice: Hire and train talented people, and then transfer responsibilities to them.

Ineffective delegation: Delegation is vital to growth. But setting up an effective delegation process is hard. Often, entrepreneurs hand off tasks to the least busy, and then make the mistake of micromanaging that person - behaviors that can lead to costly mistakes.

Advice: When delegating, identify the right person for the task, give clear instructions and be patient. Building your team members’ capacity takes time and effort.

Misplaced commitment to a selected course of action: Entrepreneurs with high tenacity and perseverance tend to stick with a failing strategy, even when the results consistently fall below expectations.

Advice: Set specific milestones to gauge progress on your project. Be prepared to change course if needed.

Entrepreneurial myopia: It’s not uncommon for entrepreneurs to fall in love with their idea or product. Their closeness to it and their intense desire to see it succeed blinds them to its flaws.

Advice: Be objective about what you offer to the market. Surround yourself with trusted advisers who can help you assess the situation objectively.

Ineffective networks: Robust and diversified personal networks facilitate venture growth. But many entrepreneurs fail to build an effective network or are unable to adapt it to accommodate their venture’s evolving resource needs. Advice: Figure out strategies to build your social quotient. Don’t forget to refresh and reshape your networks as your needs change.

Confirmation bias: Successful entrepreneurs have a highly positive self-image, which leads them to favor information confirming their beliefs and opinions, while discounting information that contradicts their viewpoints. This bias affects their decisionmaking. Advice: Interact with people with opposite viewpoints. Allow them to counter your ideas and concepts. This will help you perceive opportunities more realistically.

Badal summarizes her report, “Your behaviors may or may not be easy to change, but they tell you where to begin. Recognize and understand your most basic qualities. Once you understand your talents, biases and preferences, create a road map to systematically and consistently nurture your strengths and manage your areas of weakness.” Nurturing positive behaviors and finding strategies to manage behaviors that can negatively affect your business will yield extraordinary results. This approach will accelerate your personal development and positively influence your venture’s sustainability and growth. MV

Dean L. Swanson,owner of Assurance Solutions in Rochester, is a mentor with the Southeast Minnesota SCORE www.seminnesota.score.org.

Why some entrepreneurs have a tough time

■ Business CommentaryBy Dean L. Swanson

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MN Valley Business • June 2015 • 13

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14 • June 2015 • MN Valley Business

Outdoor living

Homeowners bring the indoors outside

By Tim Krohn | Photos by Pat Christman and John Cross

Ryan Schmitz has built a lot of the increasingly popular outdoor kitchens, but he knew the latest trend had really hit its stride recently when he installed a certain appliance for the first time for a customer.

“We designed an outdoor kitchen with meat lockers built into it. He had the Big Green Egg and everything and he was into dry-aging meat,” Schmitz said of the project.

At Degrood’s Home Store, manager Rich Froman said they too are seeing a lot more interest from customers in

outdoor living and relaxation.“It seems like in the ’90s the big rage was indoor

theaters and wet bars and now it’s all moving outdoors. Of course the drawback here is we only get to use it five months out of the year,” Froman said.

Being in the outdoors has always been one of the biggest joys in Lynn Demuth’s life, and her greenhouse business near Vernon Center helps others beautify and enjoy their yards.

“Growing up I much preferred the greenhouses, the

Cover Story

Ryan Schmitz, of Aquatic Gardens & Landscaping, has done a variety of outdoor living spaces such as this one in Mankato.

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MN Valley Business • June 2015 • 15

Comfy patios with fire features are popular.

barns or the fields rather than being in the house,” she said. Those early small greenhouses, started by her parents, turned in to a sizable business that Demuth operates in the spring and early summer.

Spring is a bustling time for all the businesses that cater to area residents who want to improve their yards, head to a park or lake or just get out of the house after the long winter.

Bringing the indoors outsideSince high school, Schmitz knew he wanted to be a

landscape architect.“It was a combination of being a very outdoorsy person

and growing up on a hobby farm and all through high school I was big in art. So I took the two of them and knew that landscape architecture was what I wanted to do.”

Schmitz, a Good Thunder native who attended Loyola, got his landscape design degree from South Dakota State University in Brookings. At first his goals were a bit dreamy – “I wanted to design golf courses” – but he realized there wasn’t going to be a huge amount of demand for it.

When he graduated in 1998, he opened Aquatic Gardens & Landscaping. The name he chose was for two practical reasons. “When I started, the focus was on water features because it was really hot at the time, but it’s not the top priority for people anymore. And ‘A’ gets you at the top in the phone book.”

While the name remains, about 75 percent of his business now is designing and building patios and outdoor rooms.

“We do a lot of fireplaces and kitchens,” Schmitz said.While people love the look of stone, be it for outdoor

kitchen islands, fireplaces, patios or walkways, Schmitz said they rely on natural stones less and less.

“We use some natural flagstones and things, but they’ve come so far with the patterns and textures on concrete pavers that they fool you into thinking they are natural

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16 • June 2015 • MN Valley Business

stone.”More people are also requesting permeable pavers when

building a patio or driveway. The concrete pavers themselves aren’t permeable but they are spaced farther apart with crushed granite filling in the gaps to let water drain down rather than run off. The base under the pavers is also deeper and filled with larger crushed rock to allow water to filter down quickly.

“They’re mandated in some municipal applications now. Around Lake Washington, any hard surface that’s installed has to be permeable so it doesn’t wash into the lake.”

Decks, too, are rarely made of natural materials these days, said Schmitz, who’s a certified Trex composite deck installer.

“It’s probably about four times the cost of doing just a treated wood deck, but it’s going to last a lifetime,” Schmitz said. “If people can afford it, they’ll definitely use (composite), unless you just need to spend less. I did that myself, I went with a cedar deck at my house and after several years, I redid it with Trex. I got tired of staining the wood.”

While installing ponds is less a part of his business than when he started, he still installs many water features in people’s yards or outside businesses.

“Most of them now are pond-less waterfalls. You get the waterfalls and recycle the water, but instead of a body of water at the bottom of the waterfalls, it’s an underground storage pit with rocks filling it,” he said. “There’s less maintenance and no algae to control. A lot of retirees like them because they have more time to enjoy it but they

don’t have to do all the maintenance.”Many of the outdoor projects Schmitz and his crew of

five employees do involve outdoor kitchens of some kind.“You put in fridges, stoves, sinks – anything that’s inside

a kitchen you downsize it a little and make sure it’s weatherproofed.”

Many of the kitchen projects are finished with stucco or cultured stone and granite custom counter tops or poured-concrete countertops.

Aquatic Gardens will take care of an entire project for customers, from designing a master plan (Schmitz and Luke Erickson are full-time landscape designers) to building the patios, decks, kitchens or water features and finishing it off with landscaping plants.

He said customers often initially have bigger plans than their budgets allow. “We meet with them and they say they want this and this and this and I’ll say that will cost this much, then they say, OK, we’ll have to redo that a bit.”

He tries to buy most of his landscape plants from local businesses but for some large orders he turns to wholesale purchases at Bachman’s.

In the slower winter time, his employees try to keep busy with snow removal and Schmitz started another business – Creative Closets – to fill in time in the winter installing custom closets.

Rich Froman, of Degrood’s, said the folding Adirondack chairs and Big Green Egg are popular.

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MN Valley Business • June 2015 • 17

The modern campfireThe allure of sitting around a

campfire is strong for Minnesotans, but that doesn’t mean they enjoy the sooty smoke.

“Fire pits are huge,” said Froman of Degrood’s.

“The gas-fired LP ones are more popular than wood. Midwesterners love sitting by a fire but no one likes smelling like smoke,” he said.

“The gas ones are clean and give light and are a good heat source when it’s cooler out at night.”

Schmitz said most of the outdoor projects he does include some flame. “Everyone wants some sort of fire feature.”

Those aren’t always the traditional fire pits. “Last year we made a fire feature where we got a big boulder and drilled a core through it for a gas line and hollowed out the top. There’s tumbled glass in the bowl where the fire is,” Schmitz said.

The biggest outdoor sellers at Degrood’s remain patio furniture and grills.

“People get outside in the spring and see their furniture or grill isn’t doing so good.”

Degrood’s sells higher-end grills and the Big Green Egg is the king of the heap, Froman said.

“It almost has its own cult following. If I know someone who comes in has a Big Green Egg, I’ll grab them and turn them to the customer to tell them about it because I’ve never seen an unhappy customer with a Big Green Egg. They’re a lot of fun and easy to use and have a lifetime warranty.”

Froman said people like them because they aren’t like traditional

charcoal grills. “It uses chunk charcoal and you don’t use lighter fluid and you can use the charcoal over and over. You just snuff it out when you’re done and relight it again.”

Froman said he tested some of the charcoal during a cooking demonstration at the store and left it burn on low. “It ran for about 40 hours before it finally burned out.”

Degrood’s has always had a large selection of kitchen appliances in stock and Froman said they now carry more outdoor kitchen appliances.

“There’s a lot of interest in outdoor kitchens. The outdoor appliances are heavier and a bit more expensive because they are UL listed so they can be outside. The fridges have locks on them to keep out the raccoons and critters.”

Froman and Schmitz said they think part of the growing interest in outdoor rooms was due to the recession. “I think instead of people selling their home and buying a new one, they’ve been adding more to their home,” Froman said. “You can only do so much inside, so they’ve been adding more outside, I think.”

Froman said composite patio furniture that won’t rot and holds its color is popular with those improving their yards.

“The polywood furniture is 100 percent recycled. Our brand is the Comfort Craft. It’s the only brand I’ve seen where the Adirondack chairs fold up. Those have really taken off – people like being able to fold them up and bring them to the lake or wherever,” Froman said.

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18 • June 2015 • MN Valley Business

The hobby that grewDemuth said her Wendlandt Greenhouse business was

“a hobby that got out of control.”Her parents, Tony and Ivalea Wendlandt, started with a

small glass house on their farm when Lynn was a little girl 39 years ago.

“Prior to that we had the plant porch in the house. They just like to grow things. They were giving plants away and then decided to start selling them.”

The business and number of greenhouses grew over the years and Demuth moved the greenhouse business to her and her husband’s farm site in 2003. “Mom and Dad retired but they still come out every day.”

“Primarily folks come out here and buy plants. We do some wholesale to Shellee’s Greenhouse in Madelia. We do a fundraiser for Holy Rosary Church each year and we plant 230 urns at the cemetery in Winnebago,” she said.

She and her staff raise annual bedding plants, vegetables and flowers, and they sell a small number of fruit trees, shrubs and perennials. They grow most of their own plants, except for plants that have to be purchased because they are patented.

“The Proven Winners or All-American Selections are branded and you have to pay a royalty (for their plants).”

Demuth specializes in heirloom plants. “A lot of old-fashioned plants from your grandmother’s garden. We’re a niche market – you won’t see them in big-box stores.”

She said people are often surprised at the variety of colors there are with heirloom flowers. “We’ve always had yellow petunias and lot of people have never seen them.

We have 28 varieties of marigolds, a lot of salvias and impatiens.”

She said more concern about GMO plants has more people interested in heirloom vegetables, particularly tomatoes.

The greenhouse is open until June 20. Demuth donates a lot of plants, including those left over at the end of the season. “I donate to local parks and fairgrounds and the community garden and just some folks we know on lower incomes.”

“This is very labor intensive. By the time we close, everyone is ready to be done for the year.

“This business may not make us rich, but it is so good for the soul.” MV

Lynn Demuth, above, runs Wendlandt Greenhouse near Vernon Center.

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MN Valley Business • June 2015 • 19

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20 • June 2015 • MN Valley Business

In 1975, Ron Shimek set out to find a fireplace for the family’s patio but he and his wife couldn’t find one they liked.

At that time, Ron worked as an engineer for a company out of the Twin Cities, and it was his engineering experience that led him to build a fireplace of his own in their garage.

What he created was a wood-burning fireplace that hung from the roof of their patio by a chain. The fireplace had 360 degrees of glass and hung in the center of the patio. Over the years, Ron kept tinkering with the fireplace design, had it patented, took it to a few national shows,

and developed a remote control for the fireplace. Once the remote was in place, the fireplace idea took off causing Ron to create Heat-N-Glo, which has become the largest

fireplace manufacture in the world.“By 1976, my Dad had started

Heat-N-Glo as a fireplace manufacturing business,” said Tim

Shimek, co-owner with Renee, his wife, of Glowing Hearth & Home. “Dad went from building one unit in his garage to creating a company that currently does around 350 million a year and is by far, the largest fireplace business in the US, as far as volume.”

Once Heat-N-Glo was running, it quickly became a

Profile

By Heidi Sampson | Photos by Pat Christman

Tim Shimek and his wife, Renee, operate Glowing Hearth & Home. His dad started Heat-N-Glo in the 1970s, which became the largest fireplace manufacturer in the world.

A warm glowFamily developed a huge fireplace company

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MN Valley Business • June 2015 • 21

family affair with Ron’s brother Dan joining the business. Eventually, the company revolutionized the industry by inventing the world’s first Direct Vent Gas Fireplace, allowing fireplaces to be installed in virtually any room in a home. Ron’s sons have all held active positions within Heat-N-Glo, learning the various ins and outs of fireplace construction. In fact, Tim began working for his father at 9 years old. By 1998, Heat-N-Glo had developed into a pretty significant business. As a result, the business was sold to Hon Industries.

Tim would attend college at Winona State, while continuing to work at Heat-N-Glo during the summer months. Once he graduated, he began working at Heat-N-Glo full time. Over the years, Tim worked in manufacturing, with the assembly line, as a production manager, within the engineering department, sales, research and development, and finally, ended up selling fireplaces out in the northeastern part of the United States.

“I simply got tired of traveling. At a meeting they talked about having more representation or coverage in Minnesota. I told them that was me. I wanted to get off the road and set up a couple of stores, which I wanted to run and own myself. Heat-N-Glo supported my decision and in 2002, I left Heat-N-Glo’s corporate office and started Glowing Hearth & Home with our first store opening in Jordan.

By 2006, Glowing Hearth & Home bought a Fireside and Hearth Home store, located on Riverfront Drive in Mankato. Eventually, Glowing Hearth & Home built a new building by Home Depot, where we are today. However, shortly after purchasing their Mankato location, they also bought a fireplace business in Burnsville, expanding once again by 2008.

“We started from ground zero,” said Tim. “Today, we have 35 employees and we do around eight to nine million a year. We’ve been really fortunate that we’ve been able to grow the business every year since we started the company, which means we’ve grown by 20 to 25 percent every single year. That’s due to great customers and great employees. Our Mankato location has five to six employees, Burnsville has two to three employees, and the rest of our group resides in Jordan. This is where we do all of our scheduling, our warehouse is here, our installation crew, and the main showroom, is all in Jordan.”

From Fireplaces to Linear UnitsGlowing Hearth & Home specializes in gas and wood

burning fireplaces and stoves. Typically, they will assist a customer in anything they may want, such as wood-, gas-, and pellet-burning options. Glowing Hearth & Home takes pride in handling their products from start to finish, as they have installers who can do framing, sheet rocking, gas

lines, fireplace venting, as well as the stonework surrounding the fireplace itself. Glowing Hearth & Home sell mantels, wood surrounds, and granite. Also, their Mankato location sells outdoor products, such as outdoor patio furnishings, fire products and fire pits. They even have a limited gas grill line. However, for everybody in the hearth products industry, the single fastest growing category is outdoor fireplaces.

“The other one that is really big is the linear unit,” said Tim, “which is a gas fireplace that is wider than they are tall. It’s very contemporary looking. They might be six feet wide and twenty inches high, with flames six feet wide. The best part is, they are available in many different sizes.”

Every year, Glowing Hearth & Home attends the builder’s show in the twin cities. As a result, they work with 300 builders in the Twin Cities area alone, to install

fireplaces during new construction. During the State Fair, Glowing Hearth & Home will conduct their fair specials, in which they advertise for retail customers who want to convert wood burning fireplaces to gas. Also, any homeowner can walk into their store and receive an itemized quote on a fireplace. Or, Glowing Hearth & Home will go out and help homeowners at their home location, free of charge.

“Our goal is to make owning a fireplace as easy as possible for both the builder and homeowner,” said Tim. “There is a lot of little things to know, for instance how they can vent it, how efficient they are and what the options are for installing one. We want to make that process as easy as possible.”

Glowing Hearth & Home’s busiest time of the year is September through mid-January. Typically, they not only have their builders calling to install product, but they also have a lot of homeowners who are starting to get cold and would like their

yearly service work conducted.“We do a lot of service work and annual service work of

our fireplaces,” said Tim. “Just like how we have someone come clean our furnace once a year, we do a lot of that same kind of service work with our fireplaces. That’s on top of regular installation, which makes the fall our busiest time of the year. We could take 500 calls a day. That’s not unusual. When we get to October and November, the phone just doesn’t stop. But what’s great about our entire group, is that we have a live person to answer all of our calls, and I have a great group of employees who make sure our customers are satisfied with the entire fireplace process from selection, to installation, to yearly checkups. MV

MNVB June p01.indd 21 5/15/2015 10:59:05 AM

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24 • June 2015 • MN Valley Business

Terri Anderson and her crew of volunteer helpers are busy in the early spring.

“I hate to be indoors. I can’t stand it when I’m stuck inside. I have to be outside in the sunshine and fresh air

and in the soil,” said Terri Anderson as she stood amidst the freshly planted plots that make up her family business, Valley Veggies.

Anderson, along with her husband John, has been operating Valley Veggies, 52727,

Highway 68, Lake Crystal, since 1997. Anderson is the fifth generation of her family to farm the same land. Her great-great

grandfather, Louis Seppman, built Seppman Mill in the early 1860s and the family has

remained in the area since then.“I’ve lived here all my life,” Anderson said.

“This is where I grew up and this is where we

Spotlight

By Nell MusolfPhotos by Pat Christman

A big gardening habitValley Veggies a labor of love

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MN Valley Business • June 2015 • 25

raised our four children.”While Anderson grew up in a farming family, it wasn’t

until the 1990s that her own business came to be a reality. Terri and John Anderson were team truck drivers for several years. John still drives for Estes Express Lines.

“He drives to support our 15 acre gardening habit,” Terri says.

When Valley Veggies first opened, it was basically a trailer with a canopy at the end of the Anderson’s driveway. The family then sold sweet corn, tomatoes and melons. In 2001 the family began to sell plants to the public and since then Valley Veggies has steadily grown although there was a period when the business had to be put to one side while Anderson battled West Nile fever in 2003. The virus culminated in heart failure in 2006 and it was necessary to close Valley Veggies for close to three years.

“While I was sick, my heart was down to functioning at about 16 to 17 percent. A normal heart functions at about 65 percent,” Anderson said. “I had a couple of doctors who told me that I’d never be able to work a full day again. My husband said, ‘don’t ever tell that woman ‘no, you can’t’ because she’ll prove you wrong.’ ”

Which is exactly what Anderson did. After weaning herself off prescription medications, Anderson relied on herbs and vitamins to get herself back into shape and ready to return to her beloved gardens.

“I guess I just wasn’t ready to give up. I can be pretty stubborn.”

Valley Veggies reopened in 2009 although on a smaller scale. Now in its eighteenth season, the 15-acre gardening habit is one that is in full bloom from late spring through the fall season and it keeps Anderson and her helpers hopping all year long.

“December is really the only month I have completely

off,” Anderson said. “After we close in the fall there’s a lot of clean up to do and then we start growing the plants very early in the new year. There’s always something that needs to be done.”

Valley Veggies offers a variety of plants including cold crops such as onions, bok choy, chard and celery and warm crops including eggplant, ground cherries and several different kinds of peppers. Tomatoes, herbs and flowers are also available. In addition to things that go into the ground, Valley Veggies also sells certified Omega-3 eggs.

Chemical freeA point that Anderson is very proud of is the fact that

Valley Veggies is run as a chemical-free farm. Instead of chemical pesticides, the Andersons depend on Diatomaceous earth, a natural soft sedimentary rock, to combat bugs and diseases on their plants. Diatomaceous earth is considered to be extremely environmentally friendly and is safe enough for humans to consume. A picture on Valley Veggies website (www.valleyveggiesmn.com) shows one of Anderson’’ grandsons virtually bathing in the stuff.

“Farmers have been using Diatomaceous earth for a long time,” Anderson said.

In addition to Diatomaceous earth, the Andersons employ another method of back to basics pest control. When a plant is looking less than vital, they surround it with pieces of wood at night. The wood is overturned in the morning and is usually loaded with bugs galore. The bugs are then taken care of in another chemical free manner: they are squashed. Using chemical free methods makes for hardier plants and that is Anderson’s goal.

“We have very hardy plants,” Anderson said. “We’re known for how hardy our plants are and that’s because in

Daughter Amanda has joined the business, which offers plenty of hand work and physical labor.

MNVB June p01.indd 25 5/15/2015 10:59:21 AM

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26 • June 2015 • MN Valley Business

Visit landtoairexpress.com or call 507-625-3977

In addition to theMSP Airport, Land toAir Express now offers multiple daily tripsfromMankato to Rochester and Southern MNdestinations in between. Convenient Mankatoshuttles are still available every day to and fromthe Minneapolis International Airport.

INTRODUCES YOUR

COMMERCIAL ROOFING

Roof Coatings (Flat & Metal Roofs)Mankato and Surrounding Areas - Mark: 507.779.6639

Four time award winner2011, 2012, 2013, 2014

Anderson is the fourth generation to farm on the site along the Judson Bottom Road. Her great-great grandfather, Louis Seppmann, built the nearby Seppman Mill.

addition to not using chemicals, our plants are exposed to the elements all of the time. That’s what makes a plant really hardy. Plus I touch them all the time, like when I walk past a flat. Just brushing your hand across the tops of plants makes them hardier too.”

Family, volunteers pitch inWhile Anderson is the mainstay of Valley Veggies, she

credits her mother, Karen Morse, with continual support and assistance as well as an endless stream of knowledge. Morse lives across the highway from Valley Veggies and is always available to answer questions or help out with planting.

“Even to this day I still pick her brain,” Anderson noted. “I feel very proud of that fact that my mother is still so involved in all of this. She comes and pots plants or helps with holing and if I have a question for her, she has an answer.”

Although all of the Anderson children helped out with the family business while they were growing up, Anderson says that she thinks that a lot of their help back in those days was more of just doing what they were told to do as opposed to taking an active interest in farming. Now, however, the Anderson’s oldest daughter, Amanda, has recently joined the family business and is helping with the technological aspects such as setting up a Facebook page and creating a webpage for the business.

“I think it’s pretty amazing that we have three generations working together at the same time,” Anderson said. “It’s a good feeling.”

In addition to family members keeping Valley Veggies running smoothly, a regular group of volunteers appear regularly to help out. Anderson said that there are about 30 volunteers who assist with planting, weeding and harvesting. In exchange the volunteers receive plants, fruits and vegetables. Anderson is quick to point out that the volunteers who help at Valley Veggies aren’t what she calls “random.”

“The volunteers we have come on a regular basis. They

don’t just wander in one day to help out. They are regularly scheduled. We have one family who volunteers for us because one of its members has celiac disease so they need to have a lot of vegetables in their diet. Some of our volunteers have been coming here and helping out for years,” Anderson says.

One of those volunteers is Ken Roos. Roos has been a volunteer at Valley Veggies for 10 years. He works as the Wood Products manager for Shelter Products in New Ulm and gets his fresh air at Valley Veggies on the weekends.

“I like it because I get to be out in the fresh air and sunshine,” Roos said. “I like interacting with the customers too. Plus after being out in the sun all day I don’t have to go anywhere and pay for a tan.”

Schools often visit Valley Veggies on field trips and Anderson welcomes the opportunity to show students the ABC’s of plants. Anderson also welcomes the opportunity to visit garden clubs and other facilities to discuss chemical free gardening.

Looking around her acreage, Anderson smiled.“It makes my heart beat to be out here,” she said. The

soil makes me want to live. You know, we don’t take fancy vacations and we don’t live in a fancy house or drive an expensive vehicle. Both John and I like a simple life and that’s what we have right here.” MV

MNVB June p01.indd 26 5/15/2015 10:59:40 AM

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MN Valley Business • June 2015 • 27

Visit landtoairexpress.com or call 507-625-3977

In addition to theMSP Airport, Land toAir Express now offers multiple daily tripsfromMankato to Rochester and Southern MNdestinations in between. Convenient Mankatoshuttles are still available every day to and fromthe Minneapolis International Airport.

INTRODUCES YOUR

COMMERCIAL ROOFING

Roof Coatings (Flat & Metal Roofs)Mankato and Surrounding Areas - Mark: 507.779.6639

Four time award winner2011, 2012, 2013, 2014

www.thomastreeandlandscape.com

19922 State Hwy 223 miles south on

Highway 22, Mankato

MNVB June p01.indd 27 5/15/2015 10:59:45 AM

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28 • June 2015 • MN Valley Business

xxxxxxxxx

Springwood Gardens, located on old Highway 169 near Jordan, is open to the public only during tours.

Springwood Gardens is a daylily paradise that sits atop a bluff overlooking the Minnesota River valley. These are not

public gardens that you can just drive into and look around, although there are tours by appointment. It is the home of Karol and Dick Emmerich.

It is also where Karol Emmerich is carrying out her passion to bring beauty to our northern world, developing northern-hardy daylilies.

But, you may think, we already have daylilies that grow profusely in our climate, and you’re right, especially if you like yellow and orange blooms. Emmerich, however, had bigger ideas.

“I wanted to do something that no one has seen before,” she said. “I wanted to have really, really fancy things like you saw in the South, so I mixed the things I like from the North with the things from the South. I had a

lot of misses, but I was able to bring a couple things to the North, which is the very frilly edges and instant rebloom.”

The frilly edges are technically called teeth. Rebloom means the plant grows a second

stalk or scape. Emmerich’s are what she calls “instant rebloom,” meaning the second scape is emerging while the first one is blooming. One that reblooms later in the season is not as workable in Minnesota’s short growing season.

“All of my hybrids do instant rebloom in other (warmer) parts of the country; probably 60 percent do it here in Minnesota,” she said.

Along with a fancier bloom, Emmerich has bred a whole palette of colors into her daylilies, and most of her blooms are color combinations.

She currently has 25,000 plants growing in the garden. She starts her new hybrids in the greenhouse and in the spring they are moved

By Richard SiemersPhotos by Richard Siemers

Daylily paradiseBreeder mixes fancy with hardiness

Feature

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MN Valley Business • June 2015 • 29

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outdoors.“I have seven or eight kids who strip the greenhouse in

a couple of days and plant as fast as we can,” she said. “I used to do 5,500 new seedlings a year, now I’m just doing 3,000. I’m getting tired; running out of room.”

Record keeperEmmerich has been at this for about 20 years, and at her

present location near Jordan for 15 years. She was in her mid-40s and at the pinnacle of her profession as a vice president and treasurer of the then Dayton-Hudson Corporation, when she retired because she “needed more color in my life instead of just black and white.”

Instead of studying spreadsheets, she offered free coaching for executive directors of faith-based non-profits. She did part of the coaching at her Edina home, where her garden had grown to two acres. Many folks stopped by to see it, and many visitors would ask about the names of the flowers, not all of which seemed that inspired to her.

She had friends who suggested she breed flowers, because then she could name then. Emmerich thought, “Oh, yeah, and name them after my girlfriends. I wanted to have serious names.”

She decided to take up the challenge, although she had no background in horticulture. In fact, she didn’t like biology, which is why she majored in math and finance.

“I have no interest at all in the science of this (breeding),” she said. “I apprenticed back in 1998-99 a few months a year with someone who knew what they were doing. It’s not that hard. It’s a lot of record keeping, and I’m a master record keeper.”

MNVB June p02.indd 29 5/15/2015 11:29:18 AM

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30 • June 2015 • MN Valley Business

Her studies and career had given her training in keeping good records and in logic, and one reason buyers turn to Springwood hybrids is because the genetics can be precisely traced.

“More than half of my plants go to other breeders, because of my record keeping,” she said. “I know what plants do and can do. I have one with good teeth called Gnashing of Teeth, so people who are looking to do teeth with good color, they know I’ve already run it through its paces. Or one looking for blue eyes will get my Desire of Nations. Ones who want really deep saturated purple will get one I call Sola Deo Gloria. One of my earliest ones was called Heartbeat of Heaven, and that would put ruffles on anything in the north, give it instant rebloom and good branching.”

Blooming marketThe breeders who buy her plants

are often hobbyists, backyard breeders who want to create something unique in their garden. But they are serious hobbyists, because her plants average $100 a piece. The buyers often recoup that expense by selling the extra plants they breed, often through an online auction sponsored by the American Hemerocallis Society, also called the American Daylily Society.

She doesn’t sell directly from her website because she wants to make certain her buyers have a good experience. They can send an e-mail and tell her what they want, and she will work with them to determine the best selection.

Emmerich feels she and her husband were blessed in that they both selected careers in finance, which at the time was as good a career as any, but over time became one of the highest paying. They were able to save their money and retire early.

She seems to be having too much fun to retire from daylily breeding any time soon. “I push the envelope a lot,” she said. Mixing tender Southern genetics to get the fanciness and Minnesota genetics to get hardiness, there are more varieties yet to blossom.

You may have noticed that many of the names Emmerich has given to her blooms have a biblical connotation.

“Yes, the names are the reason I started hybridizing,” she said with a smile. “I wanted people to think about them when they looked at the name tags in their garden, and be inspired.” MV

More of Karol Emmerich’s philosophy and goals, as well as history and photos of Springwood Gardens, are atwww.springwoodgardens.com.

WE’VE MOVED!Find us on the 7th Floor in the

newly constructed Profinium Place,

100 WARREN ST., SUITE 708, MANKATO, MN.

Just blocks from our former location,Lidstrom Commercial Realtors

is still conveniently located in theheart of downtown Mankato and

ready to serve all yourCommercial Real Estate Needs.

507-625-4606 • www.lidcomm.comTim Lidstrom, CCIM/Broker

Karla Jo Olson, Broker • Dan Robinson, Agent

Manufacturing & Maintenance

Public Safety & Security

Workplace Safety

Business Processes

Healthcare & EMS

Your Resource for Knowledge,

Skills & Strategies

cbi.southcentral.edu

Faribault Campus507.331.4290

North Mankato Campus507.389.7203

MNVB June p02.indd 30 5/15/2015 11:29:24 AM

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MN Valley Business • June 2015 • 31

WE’VE MOVED!Find us on the 7th Floor in the

newly constructed Profinium Place,

100 WARREN ST., SUITE 708, MANKATO, MN.

Just blocks from our former location,Lidstrom Commercial Realtors

is still conveniently located in theheart of downtown Mankato and

ready to serve all yourCommercial Real Estate Needs.

507-625-4606 • www.lidcomm.comTim Lidstrom, CCIM/Broker

Karla Jo Olson, Broker • Dan Robinson, Agent

Cory GenelinAttorney at law

w w w . g i s l a s o n . c o m

507-387-1115

BUSINESSoperations and governance

EMPLOYMENT advising Employers on Policies,

investigations, Regulations,

Discipline

Representing Employers in mediation, litigation,

government audits

Representing Highly compensated Employees and owners

Regarding Buy/sell, severance,

non competes, wrongful Termination

BANKINGcrafting complex loan

agreements for lenders

Dealing with Troubled credits

Enforcing creditors’ Rights

MNVB June p02.indd 31 5/15/2015 11:29:25 AM

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32 • June 2015 • MN Valley Business

xxxxxxxxx

We always put you FIRST!

Experienced Lenders p r o v i d i n g c u s t o m i z e d s e r v i c e f o r y o u r b u s i n e s s !

Equal HousingLENDER

Member FDIC

Visit us online at www.fnbmn.comMankato

507.625.1121St. Peter

507.931.4000Gaylord

507.237.5521

Commercial Lenders: Cory Abels, Bruce Gratz, Dan Benrud, Ken Kuehner, Craig Bode & Mike Favre

Since 1983, Blethen, Gage and Krause has made ourhome in the heart of Mankato’s City Center at 127South 2nd Street. Thanks to continued success andsteady growth, we have outgrown our current space.

We are pleased to share that we have moved to a newlocation in the Profinium Place tower at 100 Warren St.This new location is only blocks away from our formeroffice and is conveniently situated adjacent to the newCity Center Ramp.

We are excited to welcome our clients and businessassociates into our new office space and to continue ourtradition of legal excellence and personal commitment.

L I T I G AT I ON • BU S I N E S S • FA RM • P E R SONA L

SAME VISION | NEW VIEWWe’ve moved to Profinium Place!

blethenlaw.com

Mankato, Minnesota

MNVB June p02.indd 32 5/15/2015 11:29:27 AM

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MN Valley Business • June 2015 • 33

xxxxxxxxx

Construction/Real Estate

C. Sankey

3.0

3.5

4.0

4.5

5.0

5.5

DNOSAJJMAMFJ

01000020000300004000050000600007000080000

DNOSAJJMAMFJ 0

500

1000

1500

2000

DNOSAJJMAMFJ

0

55

110

165

220

275

DNOSAJJMAMFJ 0

10

20

30

40

DNOSAJJMAMFJ

0

1000

2000

3000

DNOSAJJMAMFJ0

2750

5500

8250

11000

DNOSAJJMAMFJ

Source: City of Mankato

Residential building permits Mankato (in thousands)

- 2014 - 2015

Source: City of North Mankato

Residential building permits North Mankato(in thousands)- 2014 - 2015

Source: Realtors Association of Southern Minnesota

Existing home sales: Mankato regionInformation based on Multiple Listing Service and may not refl ect all sales- 2014 - 2015

Source: Cities of Mankato/North Mankato

Housing starts: Mankato/North Mankato- 2014 - 2015

Source: City of Mankato

Commercial building permits Mankato (in thousands)

- 2014 - 2015

Source: City of North Mankato

Commercial building permits North Mankato(in thousands)- 2014 - 2015

Source: Freddie Mac

Interest Rates: 30-year fi xed-rate mortgage— 2014 — 2015

Includes single family homes attached and detached, and town homes and condos

Source: Minnesota Foreclosure Partners Council

Foreclosures: 2014 Year End

1011927702543393624

72212147282422277

-29%+11%-22%-33%+12%-44%-44%-25%-71%

Blue EarthBrownFaribaultLe SueurMartinNicolletSibleyWasecaWatonwan

County 2013 2014 Percent change

$882

$3,699$826

$452

98174

15

9

$9,885$1,236

$100$201

3.8%

4.3%

We always put you FIRST!

Experienced Lenders p r o v i d i n g c u s t o m i z e d s e r v i c e f o r y o u r b u s i n e s s !

Equal HousingLENDER

Member FDIC

Visit us online at www.fnbmn.comMankato

507.625.1121St. Peter

507.931.4000Gaylord

507.237.5521

Commercial Lenders: Cory Abels, Bruce Gratz, Dan Benrud, Ken Kuehner, Craig Bode & Mike Favre

Since 1983, Blethen, Gage and Krause has made ourhome in the heart of Mankato’s City Center at 127South 2nd Street. Thanks to continued success andsteady growth, we have outgrown our current space.

We are pleased to share that we have moved to a newlocation in the Profinium Place tower at 100 Warren St.This new location is only blocks away from our formeroffice and is conveniently situated adjacent to the newCity Center Ramp.

We are excited to welcome our clients and businessassociates into our new office space and to continue ourtradition of legal excellence and personal commitment.

L I T I G AT I ON • BU S I N E S S • FA RM • P E R SONA L

SAME VISION | NEW VIEWWe’ve moved to Profinium Place!

blethenlaw.com

Mankato, Minnesota

MNVB June p02.indd 33 5/15/2015 11:29:28 AM

Page 36: Mn valley business june2015

34 • June 2015 • MN Valley Business

Many agricultural experts and economists have been warning for the past couple of years that we could be headed for a significant correction in

farm land values in the Midwest. Based on recent data, there appears to be evidence that a reduction in average land values may be occurring in some regions of the U.S., including the Upper Midwest. Much lower corn and soybean prices in 2014 and early 2015 have lowered farm incomes, which has put pressure on land values.

Record farm income levels from 2010 to 2013 lead to major increases in land values in some areas during that that time frame. According to USDA data, there was a 14.5 percent increase in average farm land values from mid-year 2011 to mid-year 2012, followed by a 13 percent increase a year from mid-year 2012 to mid-year 2013, and an 8 percent increase from mid-year 2013 to mid-year 2014. However, more recent data would suggest that this trend is likely changing, at least in Iowa and Minnesota.

Iowa State University also does a comprehensive land value survey each December, which is regarded as one of the best resources on trends in Midwest farm land sales. Following is a table showing the average value of Iowa farm land for the past 10 years (2005-2014), and the average percentage change in farm land values from one year to the next.

Iowa farm land values rose at an incredible pace from 2004 to 2013, with only one minor decline in 2009, before a more significant decline of almost 9 percent in 2014. This was the largest annual percentage drop in Iowa farm land values since 1986. The 2014 Iowa Farmland Value Survey showed the greatest drop in land values in northwest, north central, and northeast Iowa, with large majority of counties showing a 10-15 percent decline in land values during 2014.

Trends in farm land values in southern Minnesota are fairly close to the trends shown in Iowa. Land values in portions of southeast and south central Minnesota, which had below normal crop yields in 2013 and 2014, have shown a greater decline than some other areas of the state. Some isolated land sales across southern Minnesota have

still reported fairly high values per acre; however, the overall trend in the past 12-18 months has probably been a decline of 10-15 percent in land values from the highest reported average land prices in 2013.

One of the best sources of farm real estate values in Minnesota is the U of M’s “Land Economics” web site www.landeconomics.umn.edu.

Some key observations on the South Central Minnesota land sales data:

• Average farm land values dropped in most counties from 2013 to 2014.

• Average land values rose considerably in 2014 in Martin County, which is the number one hog producing county in MN, and 2014 was a record profit year in hog production.

• Overall, most average land values in 2014 dropped back to near 2012 average land values.

• The volume of land sales dropped off considerably in 2014, compared to 2012 and 2013. Corn and soybean prices have dropped even lower since

the beginning of 2015, and profit margins in livestock production are much tighter than they were a year ago. The potential for reduced farm income in 2015 will likely continue to put downward pressure on farm real estate markets in southern Minnesota and northern Iowa. Many experts feel another decline of 10-15 percent in 2015 is highly likely. MV

Kent Thiesse is farm management analyst and vice president, MinnStar Bank, Lake Crystal. 507- 381-7960; [email protected]

Farmland values are trending lower

■ Agricultural OutlookBy Kent Thiesse

xxxxxxxxx

frandsenbank.com Member FDIC

MEET OUR NEW SENIOR VICE PRESIDENTShane Van Engen is Frandsen Bank & Trust’s new senior vice president in Mankato/North Mankato. With 13 years of banking experience and a certified public accountant’s license, Shane’s expertise and Fransden’s community-first approach will help local businesses meet their financial needs and grow.

Stop in or call Shane to congratulate him on his new role!

MANKATO507.345.5455

NORTH MANKATO507.345.5043

NORTHRIDGE507.345.5039C

A04

2315 Shane Van Engen

NMLS 1321033 507.385.4512

Planning for success?From appraisals to farm managementto real estate transactions—you can counton the professionals at Upper MidwestManagement to help you makesound decisions.

Give us a call at 507-359-2004 or visitwww.ummc.co to learn more today.

www.ummc.coNew Ulm • Olivia • New Hope • Faribault

Some key observations on the South Central Minnesota land sales data:• Average farm land values dropped

in most counties from 2013 to 2014.

• Average land values rose considerably in 2014 in Martin County, which is the number one hog producing county in MN, and 2014 was a record profit year in hog production.

• Overall, most average land values in 2014 dropped back to near 2012 average land values.

• The volume of land sales dropped off considerably in 2014, compared to 2012 and 2013. Corn and soybean prices have

dropped even lower since the beginning of 2015, and profit margins in livestock production are much tighter than they were a year ago. The potential for reduced farm income in 2015 will likely continue to put downward pressure on farm real estate markets in southern Minnesota and northern Iowa. Many experts feel another decline of 10-15 percent in 2015 is highly likely.

MV

Kent Thiesse is farm management analyst and vice president,MinnStar Bank, Lake Crystal. 507- 381-7960; [email protected]

YEAR VALUEPERACRE %CHANGE2005 $2,914 +10.8%2006 $3,204 +10.0%2007 $3,908 +22.0%2008 $4,468 +14.3%2009 $4,371 (2.2%)2010 $5,064 +15.9%2011 $6,708 +32.5%2012 $8,296 +23.7%2013 $8,716 +5.1%2014 $7,943 (8.9%)

IowAAVERAGEfARmLANdVALUEs

CoUNTY 2012 2013 2014BlueEarth $8,006 $8,426 $8,055Brown $7,533 $8,366 $8,109faribault $8,231 $8,269 $8,017Lesueur $6,249 $6,113 $6,623martin $9,188 $8,408 $9,514Nicollet $8,438 $9,682 $8,485waseca $6,915 $7,811 $7,310watonwan $7,674 $7,976 $7,792

fARmLANdsALEsPERACREsELECTEdCoUNTIEsINmINNEsoTA

MNVB June p02.indd 34 5/15/2015 11:29:29 AM

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MN Valley Business • June 2015 • 35

50

65

80

95

110

125

140

DNOSAJJMAMFJ 15

18

21

24

27

30

DNOSAJJMAMFJ

0

4

8

12

16

20

DNOSAJJMAMFJ0

2

4

6

8

DNOSAJJMAMFJ

Agriculture/Agribusiness

Corn and soybean prices are for rail delivery points in Southern Minnesota. Milk prices are for Upper Midwest points. C. Sankey

Corn prices — southern Minnesota

Source: USDA

(dollars per bushel)— 2014 — 2015

Iowa-Minnesota hog prices

Source: USDA

185 pound carcass, negotiated price, weighted average— 2014 — 2015

Milk prices

Source: USDA. Based on federal milk orders.

Minimum prices, class 1 milkDollars per hundredweight

— 2014 — 2015

Soybean prices — southern Minnesota

Source: USDA

(dollars per bushel)— 2014 — 2015

$109.88

$80.06

$3.33

$4.37

$17.30

$22.45

$9.36

$14.70

xxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxx

frandsenbank.com Member FDIC

MEET OUR NEW SENIOR VICE PRESIDENTShane Van Engen is Frandsen Bank & Trust’s new senior vice president in Mankato/North Mankato. With 13 years of banking experience and a certified public accountant’s license, Shane’s expertise and Fransden’s community-first approach will help local businesses meet their financial needs and grow.

Stop in or call Shane to congratulate him on his new role!

MANKATO507.345.5455

NORTH MANKATO507.345.5043

NORTHRIDGE507.345.5039C

A04

2315 Shane Van Engen

NMLS 1321033 507.385.4512

Planning for success?From appraisals to farm managementto real estate transactions—you can counton the professionals at Upper MidwestManagement to help you makesound decisions.

Give us a call at 507-359-2004 or visitwww.ummc.co to learn more today.

www.ummc.coNew Ulm • Olivia • New Hope • Faribault (507) 625-4171 | www.bolton-menk.com

Providing Municipal Engineering Services Since 1949

• Civil• Water• Wastewater• Transportation• Water

Resources

• Landscape Architecture

• Surveying Services

• Protective Coatings

MNVB June p02.indd 35 5/15/2015 11:29:30 AM

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36 • June 2015 • MN Valley Business

xxxxxxxxxxxxxxxxxxxx

Employment/Unemployment

C. Sankey

0

50000

100000

150000

200000

DNOSAJJMAMFJ0

2000

4000

6000

8000

10000

DNOSAJJMAMFJ

0

1000

2000

3000

DNOSAJJMAMFJ100000

111000

122000

133000

DNOSAJJMAMFJ

*Categories don’t equal total because some categories not listed.

Services consist of administration, educational, health care and social assistance, food and other miscellaneous services.

Initial unemployment claimsNine-county Mankato region

17613238

170516

13225632

151571

-25%+94%-16%-11%

+10.7%

ConstructionManufacturingRetailServicesTotal*

Major Industry

May Percent change‘14-’15‘14 ‘15

*Categories don’t equal total because some categories not listed.

Services consist of administration, educational, health care and social assistance, food and other miscellaneous services.

Minnesota initial unemployment claims

3,3792,0581,2175,102

11,756

2,8032,3691,0234,267

10,462

-17%+15%-16%

-16.4%-11%

ConstructionManufacturingRetailServicesTotal*

Major Industry

May Percent change‘14-’15‘14 ‘15

Local non-farm jobsNine-county Mankato region

- 2014 - 2015 Minnesota Local non-farm jobs(in thousands)

- 2014 - 2015

Local number of unemployedNine-county Mankato region

- 2014 - 2015 Minnesota number of unemployed - 2014 - 2015

Mankato/North Mankato Metropolitanstatistical area

(includes all of Blue Earth and Nicollet Counties)

Unemployment rates Counties, state, nation

Source: Minnesota Department of Employment and Economic Development

4.1%

56,394

2,410

3.4%

58,074

2,030

Unemployment rate

Number of non-farm jobs

Number of unemployed

March 2014 2015

Blue EarthBrownFaribaultLe SueurMartinNicolletSibleyWasecaWatonwanMinneapolis/St. PaulMinnesotaU.S.

4.2%6.6%7.0%7.7%5.8%3.8%6.4%6.2%6.2%4.8%4.5%6.8%

3.5%5.9%5.5%6.7%5.0%3.1%5.4%5.3%5.9%4.0%4.4%5.6%

County/area March 2014 March 2015

124,885128,015

2,8442,879

6,2917,355

135,243133,805

MNVB June p02.indd 36 5/15/2015 11:29:31 AM

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MN Valley Business • June 2015 • 37

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0

100

200

300

400

500

DNOSAJJMAMFJ

0

17000

34000

51000

68000

85000

DNOSAJJMAMFJ0

10000

20000

30000

40000

50000

60000

DNOSAJJMAMFJ

0

200

400

600

800

1000

1200

DNOSAJJMAMFJ

0

1

2

3

4

5

DNOSAJJMAMFJ

0

1

2

3

4

5

DNOSAJJMAMFJ

Retail/Consumer Spending

$387$406

$55,837$59,000

884

798

$45,279$56,900

$3.50

$2.44

$3.46

$2.49

(In thousands)

C. Sankey

Vehicle Sales Mankato — Number of vehicles sold

Source: Sales tax fi gures, City of Mankato

- 2013 - 2014

Lodging tax collections Mankato/North Mankato

Source: City of Mankato

- 2013 - 2014

Gas prices-Mankato

Source: GasBuddy.com

— 2014 — 2015

Gas prices-Minnesota — 2014 — 2015

Mankato food and beverage tax

Source: City of Mankato

- 2013 - 2014

Sales tax collections Mankato

Source: Sales tax fi gures, City of Mankato

- 2013 - 2014

Includes restaurants, bars, telecommunications and general merchandise store sales. Excludes most clothing, grocery store sales.

Archer Daniels

Ameriprise

Best Buy

Crown Cork & Seal

Eventis

Fastenal

General Growth

General Mills

Hutchinson Technology

Itron

Johnson Outdoors

3M

Target

U.S. Bancorp

Wells Financial

Winland

Xcel

Stocks oflocal interest May 11April 13

Percent change

+8.3%

0%

-0.6%

-10.9%

-2.6%

+3.6%

-5.6%

-0.5%

-21%

-3%

-18.2%

-2.8%

-2.5%

+0.7%

+1.5%

+24%

-2.6%

$51.60

$125.42

$36.97

$55.13

$20.21

$42.47

$27.27

$56.07

$2.03

$35.60

$27.74

$159.90

$80.61

$43.75

$28.75

$1.20

$33.42

$47.64

$125.42

$37.20

$54.62

$20.76

$40.99

$28.89

$56.37

$2.58

$36.69

$33.90

$164.50

$82.71

$43.42

$28.35

$0.96

$34.31

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MAKINGCONNECTIONSBy: John Considine III, Business Development Resource Manager, Greater Mankato Growth

As an integrated chamber of commerce and economic development organization, networking is a distinctive theme in all the work Greater Mankato Growth (GMG) does. By networking with national site selectors GMG can better showcase all the Greater Mankato area has to offer.

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Our region is experiencing unprecedented economic growth which is both exciting and daunting. While we have attracted the

attention of many businesses within and outside the state, we are relatively new to the table for many businesses considering expansion.

The Greater Mankato area is one of only three regions that formally became a Metropolitan Statistical Area (MSA) with the 2010 U.S. Census due to our population growth. We’re known as the Mankato-North Mankato Metropolitan Statistical Area (MSA), made up of Blue Earth and Nicollet Counties. Site selectors scour the nation for areas in which to either locate new businesses or expand existing ones. So it is vitally important to educate a site selector about what is unique about our region that separates us from the pack. We’re still the new kid on the block and need to get our name out there and that falls to Greater Mankato Growth (GMG).

As an integrated chamber of commerce and economic development organization, GMG works with a vast number of activities, initiatives and opportunities. From membership and community events to providing the staffing and structure for the Regional Economic Development Alliance (REDA) and visiting with new and existing businesses about their needs or information requests, there is a distinctive theme throughout all the work GMG does. That theme is one of networking and connection, connecting businesses with one another, to resources and critical business and marketplace solutions.

Just as a business owner may share his new lunch menu items available for catering at a Business After Hours, GMG relates to national site selectors such things as the new infrastructure investments in our community, the available workforce, the amenities prospective employees can enjoy and what makes us stand out over all other communities. A site selector may be a real estate broker, a financial expert, a business owner, or a number of other things. Most importantly this is the person in charge of evaluating a company’s next expansion location. In August of this year, GMG will be participating in the third “Fam Tour” (short for Familiarization Tour) with the Minnesota Marketing Partnership. The Partnership is a collaboration of cities and regions that work with the Minnesota Department of Employment and Economic Development (DEED) to develop a broad-based marketing initiative to promote Minnesota and its business economy at local, regional and national

venues. A “Fam Tour” entails hosting a site selector in the community and giving them a first-hand account of what makes the community unique, what it is like doing business in the community, and, more often than not, emphasizing that the winter weather shouldn’t keep their clients away.

GMG has taken the approach of utilizing existing businesses to tell the story of our community’s success during Fam Tours. “Greater Mankato Growth is strengthening our community by bringing key people here to learn about our community. Johnson Outdoors is happy to share about the success we have achieved in the Greater Mankato area,” says Darrell Wolf, General Manager at Johnson Outdoors. According to GMG’s newest staff member New Business Development Director Jim Santori, “Developing relationships is key to growing any business and a community is not much different. By bringing in a site selector to show them the community, GMG is able to share key points of contact in the community, the business opportunities in the marketplace and an understanding that we are a business-friendly community..” The City of Saint Peter, which is part of the Regional Economic Development Alliance, has adopted a concise message that was crafted by a local business when they were sharing their experience about coming into the area. It’s one St. Peter likes to share with any developer or site selector interested in making an investment in the community. The business outlined that, “Saint Peter rolls out the red carpet instead of the red tape.” Seeing is believing and the Greater Mankato area has a lot to show off. Past site selectors visiting the community have provided positive feedback on our access to education, our infrastructure, and our opportunity to capitalize on our agricultural prowess. By having these discussions on the Fam Tours GMG is able to begin building professional relationships with site selectors who influence which communities see new businesses, job growth and economic activity.

For more information about Greater Mankato Growth’s site selection services visit: greatermankato.com/site-selection-services.

CONNECTIONS

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An event of:

The fifth installation of

the CityArt Walking Sculpture Tour is here, featuring thirty-one new sculptures in the City Centers of Mankato and North Mankato. This year’s tour is impressive with many large scale, interactive pieces such as Greg Mueller’s “Street Seat” made from repurposed vehicular street signs and Dale Lewis’s, “Godzilla” greeting passersby on Belgrade Avenue in North Mankato. The sculpture walk also includes beautiful bronze pieces that are alive with storytelling, such as, “May Flower”, by Susan Geissler and “Da Fans” by Lee Leuning and Sherri Treeby installed in Cherry Street Plaza on South Front Street.

Vote for your favorite sculpture either online or by completing the voting ballot found in the CityArt Walking Sculpture Tour brochure. The sculptures will be on display from now until April 2016 and are available for sale or lease. For more information regarding the CityArt Walking Sculpture Tour and to vote for your favorite sculpture, visit: citycentermankato.com/walking-sculpture-tour

“May Flower” by Susan Geissler

New Sculptures Arrive in the City Centers

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Business After and Business Before Hours gives representatives from GMG member businesses at the Engaged Level or higher an opportunity to get together with one another to exchange ideas and learn about each other’s businesses. For more information on these and other member events, visit greatermankato.com/events.

April Business After Hours hosted by Community Bank

April Business Before Hours hosted by Hilltop Florist & Greenhouse

June 17 McDonald’s Restaurant, Madison AvenueJuly 15 Brennan Companies, Vanderberg Cleaning Services & Friesen’s Family Bakery & Bistro in Old Town CenterAugust 19 Minnesota Valley Federal Credit UnionSeptember 16 Monarch MeadowsOctober 21 South Central College November 11 EnventisDecember 16 Wells Federal Bank

2015 Business After Hours Sponsored by:

2015 Business Before Hours Sponsored by:

7:30 - 9:00 am5:00 - 7:00 pm

June 2 First National Bank Minnesota & Tavern on the AvenueJuly 7 CambriaAugust 4 Unique Specialty & ClassicsSeptember 1 Mayo Clinic Health System - EastridgeOctober 6 I+S GroupNovember 3 Blethen, Gage & KrauseDecember 1 Gislason & Hunter

Navigating through greatermankato.comResources available on Greater Mankato Growth’s website, greatermankato.com

A top community for young people, the fifth safest city in the state and the most affordable college town in Minnesota

are just some of the rankings and ratings that the Greater Mankato region has received. The rankings and ratings webpage

found at greatermankato.com showcases multiple reasons why the Greater Mankato region is a great place to live, work

and play. With clickable links to additional information about each list item and downloadable PDF version of the webpage

the rankings and ratings webpage is your ideal resource to showcase the awards and accolades of the community. Visit

greatermankato.com/rankings-ratings for more info.

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Growth in Greater MankatoNEW BUSINESS

Mainstream Boutique 1901 Madison Avenue East Mankato, MN

GRAND REOPENING

Mankato Ford 1935 Madison Avenue Mankato, MN

Cavaliers

Newest Greater Mankato Growth Members

Cavalier Calls on the

NEW BUSINESS

River Valley Running 1849 Adams Street Mankato, MN

Baxter’s Hair Shop 1633 Monks Avenue Mankato, MN baxtershairshop.com

American Heart Association 4701 West 77 Street Edina, MN americanheart.org

Camp Pillsbury 315 South Grove Avenue Owatonna, MN camppillsbury.com

Discover Chiropractic - Nicollet304 Pine Street Nicollet, MN mankatochiropractor.com

Freedom Home Care, LLC 209 South Second Street, Suite 202 Mankato, MN freedomhomecarellc.com

Greater Mankato on the Green is just a few months away and registration is filling up fast. This event provides

the opportunity to network at one of the best business golf tournaments in the region.Make sure to mark your

calendars and join us for this popular 18 hole golf tournament.

Visit greatermankato.com/greater-mankato-green for more

information.

Monday, July 13 Mankato Golf Club

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In celebration of National Travel & Tourism week, Visit Mankato honored four local hospitality personnel to recognize the

outstanding service they provide to Mankato visitors each day. The four award categories include: hotel, restaurant, retail and attraction. The awards are given in observance of National Travel and Tourism week, which is presented by U.S. Travel and celebrated its 32nd year May 2-10.

Linda Osborne, General Manager of the Country Inn and Suites, was awarded the Hotel Travel & Tourism Award for exceling at letting guests know everything Mankato has to offer and where to go for what to do.

Eric Jones, Marketing Manager of the Verizon Wireless Center, was awarded the Attraction Travel & Tourism Award for his dedicated work in bringing excellent variety of entertainment to Mankato, each unique event attracting thousands of people to the community. Eric’s event face is always a smile and he conquers events flawlessly.

Heather Fisher, Co-owner of Salvage Sisters, was awarded the Retail Travel & Tourism Award for her unique retail concept and endless support of local businesses. Heather and Salvage Sisters bring people in from all over the region.

John and Najwa Massad, the owners of Olives, Massad’s and Najwa’s Catering, were awarded the Restaurant Travel & Tourism Award for the hospitable feel visitors receive when entering one of the Massad’s establishments. The family owned company brought its ethnic flare to Mankato over 20 years ago and has been successfully serving citizens and visitors since.

Congratulations again to our 2015 Travel and Tourism award winners. The Mankato hospitality industry is proud to have such wonderful ambassadors.

Visit Mankato Honors Hospitality Award Recipients in Celebration of National Travel

& Tourism WeekBy: Kathryn Reeder, Brand Manager, Visit Mankato

Linda Osborne, Hotel Award Recipient

Eric Jones, Attraction Award Recipient

Meg Sieveck, on behalf of Heather Fisher, Retail Award Recipient

Najwa and John Massad, Restaurant Award Recipients

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TO PLAN YOUR VISIT to Alabama’s Robert Trent Jones Golf Trail, visit rtjresorts.com or call 1.800.949.4444 today. facebook.com/rtjgolf twitter.com/rtjgolf

HI, I’M JOE TAYLOR. Overton, Texas. What keeps me coming back to the Trail? It’s just absolutely sensational. I have people tell me what they’ve spent playing one round at Pebble Beach and a night at the hotel, or going to Pinehurst for a couple rounds. We do the entire week, travel, hotel, green fees, good meals and everything for the price of one day at these places. And it’s absolutely a sensational place to come.

RTJ747JoeTaylorAD_CNHImags.indd 1 3/28/14 12:17 PM

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TO PLAN YOUR VISIT to Alabama’s Robert Trent Jones Golf Trail, visit rtjresorts.com or call 1.800.949.4444 today. facebook.com/rtjgolf twitter.com/rtjgolf

HI, I’M JOE TAYLOR. Overton, Texas. What keeps me coming back to the Trail? It’s just absolutely sensational. I have people tell me what they’ve spent playing one round at Pebble Beach and a night at the hotel, or going to Pinehurst for a couple rounds. We do the entire week, travel, hotel, green fees, good meals and everything for the price of one day at these places. And it’s absolutely a sensational place to come.

RTJ747JoeTaylorAD_CNHImags.indd 1 3/28/14 12:17 PM

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