Mnvalley 116

Also in this issue• Beans Coffee Co.

• Vital Life Massage

• Barbara Haack, Realtor

Ed Lee, executive director of the St. Peter Chamber of Commerce. Photo by Pat Christman

The Free PressMEDIA

St. Peter bucks the trend of struggling downtowns.

Flourishingdowntown

MNVB January p01.indd 1 12/16/2015 8:10:17 AM

GOLFERS FROM AROUND THE WORLD COME TO CHALLENGE THE JUDGE and the two other golf courses in Prattville at RTJ Capitol Hill. Bring your clubs

and come take on Judge hole number 1, voted the favorite hole on the Trail. Complete your day in luxury at the Marriott and enjoy dining, fi repits and

guest rooms overlooking the Senator golf course. With the Marriott’s 20,000 square feet of meeting space, 96 guest rooms and luxurious Presidential

Cottage combined with three world-class golf courses, business and pleasure can defi nitely interact in Prattville.

THE ROBERT TRENT JONES GOLF TRAIL AT CAPITOL HILL is home of the Yokohama Tire LPGA Classic on the Senator Course

September 18 to 24, 2014. The Marriott Prattville is part of the Resort Collection on Alabama’s Robert Trent Jones Golf Trail.

Visit www.rtjgolf.com or call 800.949.4444 to learn more.

for Yourself.» COME JUDGE for Yourself.

RTJ746JudgePRATT_CNHIMags.indd 1 3/28/14 12:17 PMMNVB January p01.indd 2 12/16/2015 8:10:21 AM

GOLFERS FROM AROUND THE WORLD COME TO CHALLENGE THE JUDGE and the two other golf courses in Prattville at RTJ Capitol Hill. Bring your clubs

and come take on Judge hole number 1, voted the favorite hole on the Trail. Complete your day in luxury at the Marriott and enjoy dining, fi repits and

guest rooms overlooking the Senator golf course. With the Marriott’s 20,000 square feet of meeting space, 96 guest rooms and luxurious Presidential

Cottage combined with three world-class golf courses, business and pleasure can defi nitely interact in Prattville.

THE ROBERT TRENT JONES GOLF TRAIL AT CAPITOL HILL is home of the Yokohama Tire LPGA Classic on the Senator Course

September 18 to 24, 2014. The Marriott Prattville is part of the Resort Collection on Alabama’s Robert Trent Jones Golf Trail.

Visit www.rtjgolf.com or call 800.949.4444 to learn more.

for Yourself.» COME JUDGE for Yourself.

RTJ746JudgePRATT_CNHIMags.indd 1 3/28/14 12:17 PMMNVB January p01.indd 1 12/16/2015 8:10:24 AM

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4 • January 2016 • MN Valley Business

T - F: 8am - 6pm Sun: ClosedSat: 9am - 4pmM: 8am - 8pm

120 North Broad Street Mankato, MN 507-345-4688 www.meyerandsonstvandappliance.com

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KASASA CASH: *APY=Annual Percentage Yield. APYs accurate as of 02/12/2015. Rates may change after account is opened. Minimum to open is $1. If qualifications are met each monthly qualification cycle: (1) Domestic ATM fees incurred during qualification cycle will be reimbursed up to $25 ($4.99 per single transaction) and credited to account on the last day of monthly statement cycle; (2) balances up to $10,000 receive APY of 2.51%; and (3) balances over $10,000 earn 0.25% interest rate on portion of balance over $10,000, resulting in 2.51% - 0.25% APY depending on the balance. If qualifications are not met, all balances earn 0.05% APY. If qualifications are met each monthly qualification cycle the interest rate tiers are as follows: 2.48% interest rate applies to balances of $0.01 - $10,000 and .25% interest rate applies to balances over $10,000. If qualifications are not met each monthly qualification cycle a 0.05% interest rate applies to all balances. Qualifying transactions must post to and settle account during monthly qualification cycle. Transactions may take one or more banking days from the date transaction was made to post to and settle an account. ATM-processed transactions do not count towards qualifying debit card transactions. Transfers between multiple accounts do not count as qualifying transactions. Debit card transactions processed by merchants and received by the bank as ATM transactions do not count towards qualifying debit card transactions. Only debit card transactions processed by merchants and received by the bank as POS transactions count towards qualifying debit card transactions. “Monthly Qualification Cycle” means a period beginning one day prior to the first day of the current statement cycle through one day prior to the close of the current statement cycle. Direct deposit required to have this account. Limit one account per SSN. ATM receipt must be presented for reimbursement of an individual ATM fee of $5.00 or higher.

Lewisville • Madelia • Mankato • Mapleton • North Mankato • St. James • Lake Crystal Loan Production Office507-625-3268

MarieKRAUSE

MindyANNIS

Pioneer BankYour personal bankers in Greater Mankato

Exceeding Expectationswww.bankwithpioneer.com

507-625-4606100 Warren St. Suite 708Mankato, MN 56001

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120 North Broad Street Mankato, MN 507-345-4688 www.meyerandsonstvandappliance.com

FIND SPECIAL DEALS ON:

F E A T U R E SJanuary 2016 • Volume 8, Issue 4

Lisa Donth went back to school for massage therapy and opened

Vital Life Massage on Madison Avenue in 2013, offering massage

for therapy and for relaxation.

24Barbara Haack, owner of St. Peter

Real Estate Company, has sold homes in St. Peter for 40 years and figures she’s sold at least one home in virtually every block of the city.

20Clay Sharkey & Eric Poppler found they both loved coffee and set out

to start Beans Coffee Company in Mankato, selling at the

Farmer’s Market and online.

26

While many towns struggle to keep their downtowns from

deteriorating, St. Peter has kept a vibrant downtown with a unique mix of specialty shops and stores.

14

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KASASA CASH: *APY=Annual Percentage Yield. APYs accurate as of 02/12/2015. Rates may change after account is opened. Minimum to open is $1. If qualifications are met each monthly qualification cycle: (1) Domestic ATM fees incurred during qualification cycle will be reimbursed up to $25 ($4.99 per single transaction) and credited to account on the last day of monthly statement cycle; (2) balances up to $10,000 receive APY of 2.51%; and (3) balances over $10,000 earn 0.25% interest rate on portion of balance over $10,000, resulting in 2.51% - 0.25% APY depending on the balance. If qualifications are not met, all balances earn 0.05% APY. If qualifications are met each monthly qualification cycle the interest rate tiers are as follows: 2.48% interest rate applies to balances of $0.01 - $10,000 and .25% interest rate applies to balances over $10,000. If qualifications are not met each monthly qualification cycle a 0.05% interest rate applies to all balances. Qualifying transactions must post to and settle account during monthly qualification cycle. Transactions may take one or more banking days from the date transaction was made to post to and settle an account. ATM-processed transactions do not count towards qualifying debit card transactions. Transfers between multiple accounts do not count as qualifying transactions. Debit card transactions processed by merchants and received by the bank as ATM transactions do not count towards qualifying debit card transactions. Only debit card transactions processed by merchants and received by the bank as POS transactions count towards qualifying debit card transactions. “Monthly Qualification Cycle” means a period beginning one day prior to the first day of the current statement cycle through one day prior to the close of the current statement cycle. Direct deposit required to have this account. Limit one account per SSN. ATM receipt must be presented for reimbursement of an individual ATM fee of $5.00 or higher.

Lewisville • Madelia • Mankato • Mapleton • North Mankato • St. James • Lake Crystal Loan Production Office507-625-3268

MarieKRAUSE

MindyANNIS

Pioneer BankYour personal bankers in Greater Mankato

Exceeding Expectationswww.bankwithpioneer.com

507-625-4606100 Warren St. Suite 708Mankato, MN 56001



PUBLISHER

EXECUTIVE EDITOR

ASSOCIATE EDITOR

CONTRIBUTINGWRITERS

PHOTOGRAPHER

COVER PHOTO

PAGE DESIGNER

ADVERTISING SALES

ADVERTISINGASSISTANT

ADVERTISINGDESIGNERS

CIRCULATIONDIRECTOR

John Elchert

Joe Spear

Tim Krohn

Tim KrohnKent ThiesseDean SwansonHeidi SampsonNell Musolf

Pat ChristmanDarren Gibbins

Pat Christman

Christina Sankey

Jen WanderscheidTheresa Haefner

Barb Wass

Sue HammarChristina Sankey

Denise Zernechel

January 2016 • VOLuME 8, ISSuE 4

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].

Downtowns re-emerge

If you needed a case study on how small towns can grow and sustain their downtown retail and

entertainment districts, you could very easily consider St. Peter.

This month’s cover story provides insights into the small-town, downtown renaissance that seems to be have been quietly taking place the last few years in the 11,700 population town that is 12 miles and 10 minutes from Mankato.

The formula is not rocket science. You need longtime established retailers who are willing to change with the times but also look down the street at how the whole block can be better.

To that end, St. Peter business and civic leaders got together about 20 years ago to get grants and bring in someone to renovate the historic Nicollet Hotel, giving the downtown a landmark building that helped it establish its historic identity.

Those longtime retailers also provide stability and create a destination shopping district. You go there because you need something not offered many other places. Arrow Ace Hardware, Nutter Clothing and Swedish Kontur have certainly provided that stability and destination centerpiece.

Next, you need a new mix of specialty or niche retailers, something that will be unique to not only the town but to a wider region. St. Peter’s main street now features four clothing and specialty boutiques, a specialty cooking and kitchen store, an ethnic market store and a fair-trade store, La Mexicana Market and Fair Emporium.

Next, you need specialty shops that offer not only interesting products, but give demonstrations on how they are made. Enter Julee’s Jewelry, Stones Throw Gallery and Bob Vogel’s Stained Glass Studio.

Add to that the comfortable places to rest and get a bite to eat and a drink, and you can complete the shopping-entertainment circle with stops at the River Rock Café and the regionally drawing St. Peter Food Co-op.

Of course, it never hurts to have a private liberal arts college with many cultural and artistic offerings just a short walk up the hill. Gustavus

Adolphus College plays a big part in St. Peter’s success. It creates a generational as well as occupational mix that makes cities more vibrant.

While you need longtime businesses committed to the area, you also need entrepreneurs. St. Peter seems to be attracting its share of those folks as well.

Ashleigh Moelter and her husband moved to St. Peter from the Twin Cities. Pursuing a health care career in the metro area, she determined that career might not offer the flexibility she needed with two special-needs children.

She opened Ashleigh’s Boutique in a small space in October 2014, and early success led her last month to open a second, larger store called The Refinery.

Finally, you need a town that looks like it’s safe and fun to live in with housing stock that is priced reasonably and offers some surprises.

St. Peter has a nice mix of housing, and in particular, some nice old Victorian housing that provides the feel of old neighborhoods with mature trees that are being recreated now in some suburbs because they are so popular. But in this respect, St. Peter has the real deal.

While the re-emerging downtowns like St. Peter may seem like a replay of the old downtowns of the 1960s, there’s an important distinction. Those downtowns were indeed the retail districts where people went for almost all of their shopping.

Now, the malls and plazas have taken over some of the big volume shopping, but towns like St. Peter have captured the new niche of small volume, high quality, fun-experience shopping that more and more of us gravitate to after we’ve left our volume shopping to Amazon. 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 . 29

■ agriculture Outlook ..................... 30

■ agribusiness trends. ................... 31

■ Job trends .................................... 32

■ retail trends ................................ 33

■ Greater Mankato Growth ............. 34

■ Greater Mankato Growth Member activities ...................... 38

■ From the editorBy Joe Spear

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Specialty retail, destination shopping key



First National names officersFirst National

Bank Minnesota added two new bank officers: Michael Laskey, senior vice p r e s i d e n t -commercial lending and Jana Finken, retail banking manager, both joining the bank in

October. Laskey comes with 28 years of commercial banking

experience. He specializes in commercial and industrial loans as well as commercial real estate financing.

Finken brings 20 years of supervisory and management experience, 14 of which are in the banking industry. Her focus will be managing retail functions at the bank’s three locations; Mankato, St. Peter, and Gaylord.

■ ■ ■

Cinch Connectivity honoredWaseca Area Chamber of Commerce recognized Cinch

Connectivity Solutions as the Waseca 2015 Business of the Year. They were honored based on their longevity and significant milestones, employee impact, successful-effects of competition and market changes, business impact-management philosophy and community impact on greater Waseca.

■ ■ ■

Kato Insurance relocatingKato Insurance Agency is relocating to the second floor

of Profinium Place.President Scott Michaletz said the move will be effective

April 1.Kato Insurance was established in 1983.

■ ■ ■

Longhenry joins Century 21Crystal Longhenry has joined

Century 21 Landmark Realtors.She is a lifelong resident of southern

Minnesota moving to Mankato in 2001. She has 14 years of experience owning and managing income producing investment properties.

■ ■ ■

Farm Bureau honors HermansonThe Minnesota Farm Bureau Foundation recognized

outstanding agricultural professionals during their annual meeting.

The post-secondary educator of the year award was

given to Don Hermanson of Nicollet County. This award recognizes the educators supporting all of us in production agriculture and the important role these professionals play.

Hermanson is in his 19th year teaching at South Central College in Mankato in the Agribusiness Department. One of his most notable accomplishments was the Agriculture Literacy Institute which allowed teachers the opportunity to learn about Minnesota agriculture through tours and activities. Hermanson and his wife Rhonda live near New Sweden.

■ ■ ■

Two join GislasonGislason &

Hunter is pleased to announce that Brittany King and Dean Zimmerli have joined the law firm.

King focuses her legal practice in the areas o f employment law, family law and

agricultural law. She represents companies in all areas of employment law including unemployment, discrimination and general liability issues.

Zimmerli focuses his practice on civil litigation and business issues including agriculture law, banking, corporate and employment law. He provides a full range of legal services through conducting research, drafting agreements, contract negotiations, business growth ventures and financial strategies.

■ ■ ■

SouthPoint converts charterThe members of SouthPoint Federal Credit Union voted

in favor of a proposal to convert from a federal to a state chartered credit union. The vote was formalized at a special membership meeting held in Sleepy Eye.

They are now known as SouthPoint Financial Credit Union.

■ ■ ■

Gabriel earns certificationDiana Gabriel, certified professional

coach, successfully completed a year-long training to become a Strengths Strategy certified coach. Strengths Strategy is the leading strengths application organization in the world. The Model’s focus is teaching individuals and teams how to maximize strengths in service of “rendering weakness irrelevant” in order to create sustained superior performance.

■ Local Business People/Company News

Diana Gabriel

Brittany King Dean Zimmerli

Crystal Longhenry

Michael Laskey Jana Finken

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Schafer joins ThriveonJerry Schafer

has joined Thriveon as Project Engineer.

He brings a depth of experience in both hardware and software systems to this position that is focused on design

and implementation of Information and Technology improvements.

Schafer is a U.S. Navy veteran and holds a master of science degree in

Software Engineering, and a master’s degree in business and management.

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.

Jerry Schafer

LOCATIONS: WELLS, BLUE EARTH, MANKATO, FAIRMONT, ALBERT LEA, ST. PETER, OWATONNA, MINN. LAKE & ST. JAMES



EconomyGDP up 2.1%

The Bureau of Economic Analysis reported that real GDP increased at an annual rate of 2.1 percent in the third quarter of 2015, following growth of 3.9 percent in the second quarter of 2015.

The third-quarter growth reflected positive contributions from personal consumption expenditures, state and local government spending, and residential fixed investment.

Forecast real GDP growth is 2.4 percent in 2015 and 2.5 percent in 2016, below the 2.5 percent and 2.7 percent forecast last month.

Disposable income growsReal disposable income grows by 3.2 percent in 2015

and by 2.9 percent in 2016. Total industrial production grows by 1.3 percent in 2015 and by 0.9 percent in 2016.

Projected growth in nonfarm employment averages 2.1 percent in 2015 and 1.4 percent in 2016.

EnergyGas prices stay low

The average price of U.S. regular retail gasoline was $2.16/gallon (gal) in November, a decrease of 13 cents from October and 75 cents lower than in November 2014.

The federal Energy Information Administration forecasts U.S. regular gasoline retail prices to average $2.36/gallon for 2016.

U.S. oil production downTotal U.S. crude oil production declined by about

60,000 barrels per day in November compared with October. Crude oil production is forecast to decrease through the third quarter of 2016 before growth resumes late in 2016.

Projected U.S. crude oil production averages 9.3 million b/d in 2015 and 8.8 million b/d in 2016.

Less renewable electricity Total renewables used in the electric power sector

should decrease by 1.8 percent in 2015. Hydropower generation is forecast to decrease by 8.2 percent, and nonhydropower renewable power generation is forecast to increase by 4.2 percent.

The 2015 decrease in hydropower generation reflects the effects of the California drought. Forecast hydropower generation in the electric power sector increases by 7.3 percent in 2016. EIA expects continued growth in utility-scale solar power generation, which is projected to average 89 gigawatthours per day (GWh/d) in 2016.

EIA expects utility-scale solar capacity will increase by 123 percent (12 GW) between the end of 2014 and the end of 2016, with 4.7 GW of new capacity being built in California. Other states leading in utility-scale solar capacity additions include North Carolina and Nevada, which, combined with California, account for about two-thirds of the projected utility-scale capacity additions for 2015 and 2016.

■ Business and Industry TrendsBiodiesel to grow

On November 30, the U.S. Environmental Protection Agency finalized a rule setting Renewable Fuel Standard volumes for 2014 through 2016. Ethanol production, which averaged 934,000 barrels per day in 2014, is forecast to average about 960,000 barrels per day in both 2015 and 2016.

EIA does not expect significant increases in E15 or E85 consumption over the forecast period.

EIA expects the largest effect of the proposed RFS targets will be on biodiesel consumption, which helps to meet the RFS targets for use of biomass-based diesel, advanced biofuel, and total renewable fuel. Biodiesel production averaged 83,000 barrels per day in 2014 and is forecast to average 87,000 barrels per day in 2015 and 107,000 barrels per day in 2016.

Natural gas cheaperThe Henry Hub natural gas spot price to average $2.47/

million British thermal units this winter (October 2015–March 2016) compared with $3.35 last winter.

Electricity generated from natural gas-fired power plants exceeded generation from coal fired plants in September for the third month in a row. Before April 2015, the monthly share of total U.S. generation fueled by coal had always been larger than the natural gas share. Natural gas generation in September was 4 percent higher than the level generated by coal. This increased use of natural gas for electricity generation primarily reflects sustained low prices.

Total U.S. electricity generation in 2015 is expected to average 11.3 terawatthours per day, 0.5 percent higher than 2014 generation. Total generation grows by an additional 0.1 percent in 2016.

Although EIA projects natural gas prices to begin rising slowly, they are forecast to remain at low levels, with the Henry Hub spot price remaining below $3/MMBtu through August 2016.

These sustained low prices contribute to natural gas accounting for a historically large share of electricity generation. During 2015, EIA expects the share of total generation fueled by natural gas to average 32.4 percent compared with a share of 27.5 percent in 2014.

LOCATIONS: WELLS, BLUE EARTH, MANKATO, FAIRMONT, ALBERT LEA, ST. PETER, OWATONNA, MINN. LAKE & ST. JAMES



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■ Best Buy cuts watch priceBest Buy can’t afford to fall

further behind Amazon.com in the consumer electronics retail business and as a means to pull in consumers, Best Buy has discounted the Apple Watch by

$100.Best Buy offers the watch at $599, down from its normal

retail price of $699.Whether the move will help Best Buy is uncertain as

Apple Watch sales have been poor since the product was launched on April 7. According to research company Canalys, Apple Watch sales were 4.2 million in the second quarter. Most Wall Street Apple Inc. watchers have been disappointed by these numbers. Some even claim Apple Watch sales will not pick up unless a second version has more features, and perhaps a longer battery life.

The results of Best Buy’s most recent quarter, which ended October 31, were disappointing. Revenue dropped from $9.03 billion to $8.82 billion. Net income was tiny at $125 million.

■ Stores need to improve onlineBlack Friday and Cyber Monday brought new challenges

for brick-and-mortar retail chains this year, as more shoppers opted to do the bulk of their gift buying online over the all-important holiday shopping weekend. This meant increased traffic to many retail sites, which should have been good for business. Unfortunately, some retailers, including Target Corporation, struggled to keep pace with surging demand, according to Motley Fool.

The holiday season has proven the biggest year yet for e-commerce sales. Cyber Monday sales alone are estimated to have climbed 12 percent over last year

It’s clear from this data that more consumers are opting to shop online than ever before. Yet, some retailers still don’t have the systems in place to handle high volumes of traffic to their sites. If Target hopes to actually compete with e-commerce giant Amazon, its online channels need to be prepared to handle massive amounts of traffic.

Target has invested millions of dollars into its e-commerce business to date. However, that proved inadequate on Cyber Monday when the company’s website crashed during the busiest online shopping day of the year. Target responded by creating virtual lines that prompted shoppers to refresher their browsers and wait.

Target wasn’t alone. Saks, Neiman Marcus, PayPal, and Victoria’s Secret were some of the other companies that ran into glitches with their respective e-commerce channels during the all-important shopping weekend.

■ 3M sued over medical deviceA Louisiana woman is suing

3M for injuries she allegedly suffered from the use of heating units during surgery.

Judith Chaix filed a lawsuit in U.S. District Court against 3M and Arizant Healthcare, citing negligence misrepresentation, fraud and deceit, breach of express and implied warranty and other counts.

According to the complaint, 3M’s Bair Hugger forced-air heating pad was placed on Chaix’s body during hip replacement surgery in 2009, allegedly contaminating the surgical wound and causing an infection. As a result of the product’s defective design, the suit says Chaix suffered severe, permanent injuries, including limited mobility.

Chaix seeks compensatory and punitive damages to be determined at a jury trial.

■ Johnson posts profits Johnson Outdoors, the Racine-

based maker of Minn Kota motors, Humminbird fish finders and Old Town canoes and kayaks,

said that lower operating costs helped it swing to a profit in the typically slow fiscal fourth quarter.

Johnson reported net income for the quarter ended Oct. 2 of $1.2 million compared with a net loss of $800,000 for the same period a year ago. Net sales increased 1 percent to $85.7 million from $84.9 million

Sales for the outdoor recreational products company historically slow in the fourth quarter because of the seasonality of the business. Nonetheless, Johnson Outdoors reported strong growth in both marine electronics and outdoor gear for the quarter.

Year-over-year, net sales were up 1 percent to $430.5 million from $425.4 million, with new products in the Minn Kota, Jetboil and Old Town brands helping offset a decline in dive equipment revenue. Net income jumped 16 percent for the year to $10.6 million from $9.1 million the year before.

■ Judge rules for U.S. BankA California judge

overseeing the city of Los Angeles’ public nuisance suit against

U.S. Bancorp refused to find that the bank has a duty to repair foreclosed homes it owns, saying that finding such a “quasi-statutory duty” would not resolve any of the lawsuit’s claims.

Los Angeles Superior Court Judge Elihu M. Berle rejected the city’s request to find that property owners are required to comply with safety regulations, and thus a U.S. Bancorp subsidiary has a duty to maintain and repair the homes.

■ Minnesota Business Updates

MANKATO 507.385.4485 AMBOY 507.674.3355 I VERNON CENTER 507.549.3679

INSURANCE OFFICES LOCATED IN THE COMMUNITY BANK BUILDINGS

www.cimankato.com

QUALITY INSURANCE WITH PERSONAL ATTENTION

In the market for Health Insurance? At Community Insurance we know shopping for health insurance can be overwhelming. Let our agents match you with the perfect plan. Whether you need individual, family, or group coverage, we’ll work with you to provide you with insurance that meets your needs.

WHERE YOUR POLICY COMES WITH AN AGENT

BrittanyLinder



BUSINESS BANKING

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MANKATO 507.385.4485 AMBOY 507.674.3355 I VERNON CENTER 507.549.3679

INSURANCE OFFICES LOCATED IN THE COMMUNITY BANK BUILDINGS

www.cimankato.com

QUALITY INSURANCE WITH PERSONAL ATTENTION

In the market for Health Insurance? At Community Insurance we know shopping for health insurance can be overwhelming. Let our agents match you with the perfect plan. Whether you need individual, family, or group coverage, we’ll work with you to provide you with insurance that meets your needs.

WHERE YOUR POLICY COMES WITH AN AGENT

BrittanyLinder

Read us online!

www.bolton-menk.com

Proud to be a part of the Saint Peter Community since 1949



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“Clients (customers) leave – it’s a fact of business life. No matter how much you bend over backward to keep them, a client will likely leave you at some point.” This

comment comes from a CEO that by his 35th birthday had founded and sold two multi-million dollar companies.

Mike Michalowicz is now running his third million dollar venture, is a former small business columnist for The Wall Street Journal and other publications, is a business author (one of my favorites) and a keynote speaker.

So can you hope to get those lost clients back? He suggests that losing a client doesn’t have to be permanent, and how you handle that client’s decision to move on can make all the difference in the long run. The moment they break up with you can also be your chance to successfully set yourself up to win back their business. Here are a few of his suggestions.

Be gracious and grateful for the business you’ve received

Mike starts from the beginning, “When a client tells me they’ve decided to move on, I genuinely and sincerely thank them for their business. My goal is to be the classiest guy they’ve ever fired, and I do it for a couple of reasons. First, it’s the right thing to do. Second, folks make business decisions for all sorts of reasons — reasons I can’t control. Maybe the guy’s brother-in-law just started a company that provides the same services I do. Maybe they’re going to try out a cheaper alternative. Whatever the reason for their departure, I’m polite, appreciative and — here’s the key — I ask if it’s OK to stay in touch. I’ve never been turned down.”

Maintain the relationshipSo your client’s gone, but they’ve agreed you can stay

in touch. Once a quarter, you could give them a call or shoot them an email to see how they’re doing. You don’t ask for their business; just simply check in. Mike says, “If I see their company in the newspaper, I’ll cut the article out and mail them a copy along with my congratulations. (The old-school, snail mail approach sticks in their minds — in a good way.)” The goal is to keep the lines of communication open, just in case things change down the road.

Make the transition easyMike relates an example, “I’ve moved my accounting

business from one firm to another on a couple of different occasions. The first accountant I left made the process a nightmare. He refused to share information in a timely fashion and made everything three times more difficult than it needed to be. Years later, I switched my business from a wonderful accountant to another for personal reasons. The accountant I was leaving couldn’t have been more helpful in the transition, sending along all my records and making the transition seamless. When I needed to move my accounting business again, I went back to the second guy — the one who’d been a consummate professional.”

Conduct an exit interviewYour client might be leery of taking the time to sit

down with you after they’ve announced their plan to take their business elsewhere. But this isn’t about keeping their business. The goal of the exit interview is to improve your service to your other customers and to improve on any areas your departing client might have been disappointed in. If you’ve worked closely with the departing client, you may want to have an employee or colleague conduct the exit interview so your client can feel free to be brutally honest about

your company. This can be an opportunity to find out what you can do to improve.

Never say “I told you so.”In the event that your client does return to you, a good

practice is to be humble, gracious and focused on the excellent service that you’re going to have the privilege of providing.

Price shoppers abound these days, and customer loyalty can be hard to earn and even harder to keep. Taking a long, hard look at the quality and value of the services your company provides can help keep you both honest and relevant in your marketplace. MV

Dean Swanson is a volunteer SCORE Mentor and Regional Vice President for the North West Region.

You can win back lost customers

■ Business CommentaryBy Dean Swanson

“The goal is to keep the lines of communication open

(with a former client), just in case things change

down the road.”

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s



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Bucking the trend

St. Peter’s downtown strong, diverse

By Tim Krohn | Photos by Pat Christman



During a recent holiday shopping weekend, the streets of downtown St. Peter were bustling.

The variety of businesses to visit is far reaching. There’s the La

Mexicana Market, located next door to the Fair Emporium, which offers unique items including handmade chocolates from Italy that look like flowers.

Browsers in Swedish Kontur find high-quality Scandinavian glassware and other items. A few blocks away, renowned artist Bob Vogel is working in his Stained Glass Studio and nearby jewelers are making singular pieces at Julee’s Jewelry and Stones Throw Gallery.

River Rock Coffee and the St. Peter Food Co-op are a favorite resting spot.

Then it’s on to any number of other stores and service businesses, from Arrow Ace Hardware and Nutter Clothing to Cooks & Company and antique stores.

“I think we have a Norman Rockwell downtown,” said Chamber Executive Director Ed Lee. “St. Peter is unique because of the variety and it’s sort of an arts village. We

have just warm places.“We’re to a point where people can find everything they

need here. Products, services or groceries. With a population of 11,700, we’re fortunate to have the variety and the competition to keep prices down.”

While towns across the state struggle with faltering downtowns, St. Peter has hit a business sweet spot with virtually no empty storefronts, and those that do open up are usually filled relatively quickly.

Benefits, drawbacksConventional wisdom would hold that being just minutes

from a major shopping center like Mankato would be a hindrance to St. Peter.

But Scott Dobie, longtime owner of Nutter Clothing Co., thinks otherwise. “I think being close to Mankato is a benefit. It brings up the income of both counties. You can have someone living in St. Peter and one or both work in Mankato, but they don’t necessarily want to shop in

Cover Story

Left: Ashleigh Moelter recently opened The Refinery after opening another boutique shop last year. Right: The Refinery offers clothing, gifts and vintage furniture.



The River Rock coffee shop draws a steady stream of customers to the downtown.

Mankato.”St. Peter also has a busy Highway 169 running through

the downtown, bringing nearly 14,000 vehicles a day. For locals the highway and a major reconstruction in 2009 that added a center median is sometimes frustrating, but mostly a boon.

“We have a highway that causes a lot of problems but if they moved it, we’d be Death Valley,” Dobie said. “The new highway, the locals don’t like it because they can’t always turn where they’ve always turned. But out-of-towners like it.”

And he said the center median has made the downtown much more comfortable for pedestrians trying to cross the four-lane highway. “It’s much nicer and safer to walk across now. It used to be you went half way across and then directed traffic,” Dobie said.

Entrepreneur havenAshleigh Moelter and her husband were living in the

Twin Cities and she was pursuing a career in the health-care field. But with two special-needs children, she decided that career path wouldn’t give her the flexibility needed and she began thinking of opening her own store.

“My husband joked that we spent so much on clothes I should open a clothing store. I had $5,000 and opened one.”

Ashleigh’s Boutique opened in a small space in October 2014 at 305 S. Minnesota Ave. The business was a success and last month Moelter opened a second, larger store at 216 S. Minnesota called The Refinery.

The second store offers women’s clothing but also antiques and vintage furniture from Cheap Chics Designs, which is operated by two women Moelter met at a local flea market.

She said she tries to offer a wide variety of clothing and keeps prices affordable. “We have a rule in our store that



we will only have a handful of items over $60.”Lee said the entrepreneurial spirit has brought vitality

to St. Peter, noting that after lacking much in women’s clothing stores, the town now features four boutiques that all opened in the past year.

“I have such respect and admiration for entrepreneurs,” he said. “There’s always been risk with starting your own business, but now with regulations what they are and with what the statistics say about opening a business, it’s really challenging.”

Moelter said the town has reached a critical mass of individualized shops. “I think St. Peter has such a good variety and there are so many unique stores. There’s a lot of things you don’t see anywhere else.”

She tracks her receipts carefully and said the highway through the city, plus Gustavus Adolphus College, are definitely a big boost. “Sixty percent of our customers are just passing through and 40 percent are from the St. Peter-Mankato area,” Moelter said.

And, like other business owners, Moelter said the St. Chamber Executive Director Ed Lee.



Scott Dobie at Nutter Clothing Co.

Peter Food Co-op is a big boon for the city, drawing regular customers from a wide area.

An early founderAnders and Janet Bjorling’s downtown store is one of

the oldest current businesses. Started in 1962, his Swedish Kontur store continues to draw loyal customers and is the oldest Scandinavian store in the country.

“I was an exchange student at Gustavus and I met my wife at Gustavus. When we were in college, we noticed there was no store in the area with a concentration of Scandinavian products,” Bjorling said.

After graduation the couple lived in Sweden for four years before moving back to the area and starting the store.

He said the store’s long success is due to focusing on high-quality Scandinavian products. “And service is very important. From the beginning we offered a gift wrap, a white box with a blue ribbon. It’s become almost a tradition, when people get one, they recognize what it is.”

He said how merchandise is displayed is also key. “We get comments that it’s a wonderful experience to just walk in the store and see how things are displayed.”

Bjorling said unique shops like his have made St. Peter a destination point. “I think the specialty stores are a key. There aren’t chain stores in St. Peter,” he said.

“And the fact it’s a college town is very important.”He said the historic feel of the downtown is also a draw.

He was part of a civic group 20 years ago that secured a large state grant that allowed renovation of the old Nicollet Hotel. “It was almost torn down. We got it restored so someone could come in and take it over.”

An unsure entrepreneurDobie admits his start in business wasn’t filled with

confidence.“I bought Nutter Clothing in 1985 and I wasn’t sure I

had the ability to run it.” But that uncertainty was soon replaced with a zeal for

the business. There’s a relaxed feel in the store, something Dobie thinks brings his many return customers.

“A lot of guys don’t like to shop that much, so when they can come in and get something and it takes 40 minutes, they’re happy. If they go to the mall it’s five stores and lunch and back to the first store, and men usually don’t like that,” he said.

“There aren’t many independently owned men’s clothing stores left. Two in Mankato and mine and that’s about it in the region.”

Dobie said the specialty stores in town are a definite draw that benefits everyone. “We have people come from Sioux Falls and all over. The Cooks & Company, Contents, Swedish Kontur – they draw people from all over the state with their unique niches,” he said. “We have a wonderful coffee shop and the Food Co-op is a big draw.”

Dobie said the recent opening of Shopko has been good for the town. “I think it benefits the community. Some of our work-type clothing dropped off since they opened, so we just cut back on how much of that we stock.”

Ace is the placeThe Arrow Ace Hardware store in downtown has been

a staple for decades – the place where people not only go to get merchandise but to get advice.

“We focus on convenience, customer service and having knowledgeable people on board so people can come in and get their questions answered,” said owner Dave Neiman.

“Everybody in town knows Rose (Rustman), our store manager. You bring your problem to her and she’ll figure it out. They have a new educators breakfast in town every

Serving thecommunity

for over 130 years

220 South Third Street • St. Peter • 931-3310

The Staff of Nicollet County Bank



year and they get up and say, ‘If you need something, go see Rose,’” Neiman said.

He started working in his dad’s store 38 years ago and bought it 30 years ago this year. Since then they’ve expanded into three neighboring storefronts. He and family members also have 10 other Ace stores in the state, including one in Mankato.

He said the downtown has continued to thrive over the years. “The storefronts are pretty full. There’s a couple empty, but they always seem to fill up. Some other downtowns you start seeing a lot of vacancies, but that hasn’t hit here. I think people appreciate the personalized service they get in town.” MV

Top: Dave Neiman’s Arrow Ace Hardware store has been a fixture in downtown for decades. Right: Arrow Ace Hardware’s Rose Rustman is the person people go to when they have a question or problem.

Serving thecommunity

for over 130 years

220 South Third Street • St. Peter • 931-3310

The Staff of Nicollet County Bank



Barbara Haack has been given a prestigious award for her 40 years in real estate.



Barbara Haack, owner of St. Peter Real Estate Company, was recently awarded the Realtor Emeritus status from the Board of Directors of the

National Association of Realtors and is the first woman to have received the award in Southern Minnesota. When the award was presented Haack was asked what she viewed has been the biggest change to the real estate industry in her 40 years of work.

“The paperwork,” she said. “What started out as a one page purchase agreement with no addendums has now evolved into a manuscript.”

In order to receive the Realtor Emeritus recognition, the realtor must have 40 years of membership with the National Association of Realtors, as well as have completed at least one year of service at the National Association level. However, for those selected through 2019 the one year service requirement may also be met through service at the state or local level.

“I’ve enjoyed the people,” Haack said. “That’s really what’s kept me around for 40 years and the people of St. Peter have been so very good to me. This recognition wouldn’t have been possible without them. My husband retired several years ago and has asked me to retire too. However, my problem is that I like the people so much. I like being with them, talking with them and I love teaching – which is what is really going on in real estate today,” she said.

“We walk our buyers and sellers through the process while instructing them in real estate. As a Realtor we are someone that our buyers and sellers have to trust and that is so very, very important.”

While she is the first woman in Southern Minnesota to have received the distinction, it hasn’t been due to a lack

of women entering her field throughout the years. But many of the women haven’t stayed in the field as long, partly due to the fact that children tend to dictate more of

a woman’s hours and availability, which can be hindrance when selling homes.

At the time Haack moved to the St. Peter area and began selling homes, she had a junior, a freshman, an 8th- and a 6th-grader, all at home.

“I had four children all within five years. Being a Realtor wasn’t much of a challenge by then, I’d gotten through the first five years. On a more serious note though, I don’t come from a real estate, a broker or a sales family. What I see now is that a lot of people, who grew up with parents in real estate, are in the real estate also, and so consequently I think that we are going see lots more of that type of lineage in our future real estate agents. Of course it will be mostly men since women have families and find it difficult

to get a call at any time of the day to go out and view homes. As a realtor, it’s important to answer the phone when they call. You just hope that arrangements can be made so as not to disrupt things within your own family, but that’s not always the case.”

Early BeginningsBarbara and Dale Haack

moved to St. Peter, in 1973. Prior to her move, she had been successful in selling their homes in Falcon Heights and in Fargo. Feeling fairly comfortable with the selling process, she toyed

with the idea of selling homes for a living. Up until their move to St. Peter, she had taught Math in the Roseville School District. But she knew that with her four children she did not want to teach where they were going to school.

With the move to St. Peter complete, becoming a realtor

Profile

By Heidi Sampson | Photos by Pat Christman

St. Peter’s Realtor

extraordinaireHaack has sold homes in town for 40 years

“We walk our buyers and sellers through the process

while instructing them in real estate. As a Realtor we are

someone that our buyers and sellers have to trust and that is so very, very important.”

s

s



seemed like the next right thing to do and she passed the Realtors exam. However, after passing the test, she received a form that asked who her broker was. She didn’t even know she needed a broker. Not to be deterred from her goal, she went around town and found a man, Harold Martin, who was willing to take her in. Although, Martin wasn’t into selling homes at that time, primarily because he was more of a developer, Haack stayed on and worked for Martin for her first year. During that time, Martin’s business expanded as more of his employees obtained Realtor licenses.

“I was grateful for my time under Harold’s wing,” she said. “Ultimately, I decided that sitting on a chair selling real estate wasn’t what I wanted to do. However, because of my education, I was allowed to take the brokers exam early.”

In 1975 she passed the brokers exam and set up her own office. Originally, her office was located in half of an old funeral home converted to offices. After a few moves around St. Peter, she settled on South Third Street, a stone building and was there for 15 years. Today she works out of

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Barbara Haack has been given a prestigious award for her 40 years in real estate.



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her home.As a new Realtor she tried selling

property around the lakes - Lake Washington and Lake Jefferson - but that was mostly on weekends. While she enjoyed showing homes, she often felt more like a tour guide, which prompted her to return to only selling homes in St. Peter. Throughout her 40 years, Haack doesn’t believe that there is a block - especially in the main part of town - which she hasn’t sold a house on.

“I’ve been very successful. The St. Peter community has been so very good to me and I truly appreciate their business. Their referrals and selling homes maybe four or five times, which could be the same house or maybe some of the same buyers and sellers over multiple purchases, have been a wonderful gift.”

Over the years she has done a lot with both sides of selling, in terms of representing the listing and the buyer. While she acknowledges that some Realtors would count that as two sales, she also knows that some would count that as one sale. Although she doesn’t know which is a more accurate portrayal of her selling record, she believes that if she counts every sale equally, she’s sold 1,000 homes over 40 years.

“I used to have 40 sales a year. At one point, I had signs on eight houses in a row in town. Now that’s something you don’t see every day.”

Today Haack finds that she advises a lot of people, whether that is her fellow Realtors, buyers or sellers, she receives a lot of requests for the real estate knowledge she has acquired over the years.

“Whatever it is that I know,” said Barbara, “I am willing to share. My main goal in real estate has been to help people find their homes. That’s what makes people appreciate you and come back to you. It’s the willingness to be helpful, with their best interests at heart.” MV



Lisa Donth opened Vital Life Massage on Madison Avenue in 2013.

By Nell MusolfPhotos by Pat Christman

Tranquility amid tensionVital Life Massage aims for relaxation, therapy

The view from Vital Life Massage, 1051 Madison Avenue, Suite 1, is one of cars zipping past as they hurry at breakneck

speed toward work or play or school. The busy scene is an apropos reminder of just how hectic the pace of life is for most people. But along with all of that activity comes a healthy — or more accurately unhealthy — dose of stress. Helping people cope with stress, as well as with the other aches and pains of daily living, is massage therapist Lisa Donth.

Since opening the doors of her business in 2013, Donth has helped a steady stream of clients. In her business located just yards away

from the hustle and bustle of Madison Avenue, Donth has created a peaceful retreat filled with plants, relaxing

music and calming colors that is indeed an oasis of calm on the hilltop of Mankato.

“I feel a lot of pleasure when I come in here,” Donth said of her home away from home.

Massage, once thought to be the realm of

Spotlight



only the pampered and privileged, has become increasingly popular with people from every walk of live over the past decade and the demand for massage therapists has grown. That demand for massages, both as a form of relaxation as well as a revitalizing health technique, has ensured Donth that she made the right choice when she went back to school to receive her certification as a massage therapist.

“I went back to school as a returning student,” Donth said, “and I’m glad that I did. I believe that returning students tend to be more aware of what they want, career-wise, than they might have been when they were fresh out of high school.”

Donth attended Rasmussen College’s massage therapy program, graduating in 2011. In 2012 she passed the National Certification exam and in 2013 went on to attain Board Certification, the highest standard of achievement in the massage therapy field. Since opening her own business, Donth is enjoying her new career.

“There’s a lot to be said for owning your own business,” Donth said. “I like being the one who decides what is going to happen and I like being able to set my own hours. I like being the one to decide how to decorate and pick out what to hang on the walls. I’ve got to say that It’s fun being your own boss.”

Vital Life Massage is open by appointment (call 507-420-4643) and offers a wide variety of services including: chair massage, cold stone therapy, hot stone therapy, deep tissue massage, manual lymph drainage, myofascial massage, sports massage, Swedish massage and trigger point massage. Donth said that each massage has its own followers.

“There are a number of different modalities that I incorporate into my massages,” Donth said. “I am also a certified provider of a signature treatment called Migraine Miracle which, as it sound, deals strictly with headache relief techniques that work for both common tension headaches as well as crippling migraine headaches.”

Donth said that almost all of her massages contain techniques from both Swedish and deep tissue massages and that there are endless reasons people seek out massage therapy ranging from wanting to relax for an hour on a massage table to seeking relief from pain after being in an accident.

“The two main reasons are: relaxation and therapy for some muscular dysfunction,” Donth said. “I see people with sore shoulders, low back discomfort and stiffness in the neck — those are some pretty common ailments.”

Donth added that massage therapy is starting to be recognized for its ability to treat physical ailments of the body in both the general population as well as in the medical community.

“There are now training programs that can be taken which certify you to become a medical massage therapist,” Donth said. “Hospitals and clinics are starting to embrace the value of massage as it relates to patient recovery.”

Getting to know her clients is important to Donth’s philosophy as a massage therapist and she does everything possible to ensure that the people she works with are fully informed before their appointment as well as a part of the decision making process. Donth meets with her clients first to discuss the type of treatment they are seeking and then gives her recommendation as to what kind of treatment she believes will help them the most. Among the topics discussed during an initial consultation are: the reason why the client wants a massage, how long the

massage will be and attire for the massage. Finding out what a client wants out of a massage is vitally important.

“I will make suggestions as to the kind of treatment I think will benefit a client the most,” Donth said, “but ultimately I will abide by what my client wants. It’s my goal to create a stress-free atmosphere that will benefit a client’s health and that will have him or her leaving Vital Life Massage feeling better than when they walked through the front door.”

Stressful situations are often the trigger than brings clients to Vital Life Massage and Donth makes sure that she knows as much as possible about what is going on in her clients’ lives.

“I always start every treatment, whether new or a returning client, with a brief assessment. This is where I find out if they have an injury, such as slipping on the ice, or if they have a large stressor that has recently entered into their life, such as an ailing loved one. We do not give enough credence to how large of an impact stress has on both our mental and physical well-being,” Donth said.

Donth also makes sure to book ample time for each client.

“One thing I do is book a half an hour between clients so I don’t have to rush them out the door,” Donth said. “I never want anyone to feel like they’re being hurried or rushed. This business is about relaxation and feeling like you’re being pushed toward the exit is not at all relaxing.”

Building that half an hour between appointments also allows Donth to slip in a last minute client on occasion as well.

“I’ve gotten the phone call where someone needs an appointment as soon as possible and I do my very best to accommodate them,” Donth said. “It is a good feeling to be able to do that for my clients. When you work with people as closely as a massage therapist does, you get to know them very well and quite often they begin to feel like friends and of course I do whatever I can for my friends.”

Donth is a fan of getting massages herself although she admits that she doesn’t schedule them as often as she would like.

“I think that’s probably true of most massage therapists,” Donth said.

With four years under her belt as a certified massage therapist, Donth is looking forward to the future.

“I realize that choosing this career is not something that’s going to make me rich,” she said, “but in the end it really comes down to loving what you’re doing. And I love what I do.” MV

Donth works hard to create a relaxing, stress-free environment for her clients.



Eric Poppler (left) and Clay Sharkey check the aroma from some of their coffee beans. Right: Poppler and Sharkey operate Beans Coffee Company, a small-batch bean roaster.

Owners Clay Sharkey & Eric Poppler, of Beans Coffee Company, met five years ago. At that time, they immediately

realized that the two of them had a unique love for coffee.

When Sharkey and his wife went on their honeymoon, they toured a coffee roasting facility. He was extremely intrigued by the roasting process and on the way home, conducted a Google search. To his amazement, coffee could be roasted in a popcorn popper. Luckily, since he and his wife had recently gotten married, they had two of everything, including an extra popcorn popper. As a result, Sharkey and Poppler decided to make a trial run at roasting coffee in Clay’s small popcorn popper in 2010.

At first, they roasted coffee for themselves, family and friends. By 2011, their network of family and friends began requesting their

coffee beans for Christmas presents. Unfortunately, when roasting beans in a small popcorn popper,

one can only roast a half-cup of beans at a time, which made the increased demand for beans a bit time consuming.

However, with the need for roasted coffee swelling, the two quickly graduated to their current roaster, a six-pound drum roaster. Shortly after the purchase of a larger roaster, a friend mentioned that the two should try to the Farmers’ Market as an avenue for sales. During the summer of 2014, they took their beans to the Mankato’s Farmers’ Market. For

By Heidi SampsonPhotos by Pat Christman

Beans Coffee Co.Partners doing small-batch coffee roasting

Feature



the past two years, they’ve sold, their product at the Farmers Market, as well as online.

“What’s really cool about Mankato, is the loyalty,” Sharkey said. “People in this community are totally in support of home roasted coffee. Over the past two summers, we’ve developed more of a following. We’ve found that people who like coffee have passion.”

Through their Farmers’ Market dealings, they were contacted by a few business owners interested in their product. However, their Farmers’ Market exemption doesn’t allow for commercial retail at this time, which is something they’d like to change in the future. Currently they have been busy trying to locate commercial space in Mankato, to begin their own roasting facility.

“When we started,” said Eric, “We were roasting 2 pounds at a time. Today, we have a demand for 120 pounds or more of beans, which is significant growth for us.”

Gourmet BeansThe Beans Coffee Company strives to keep their coffee

lineup as simple and straightforward as possible. While they roast whole beans, they will also grind beans. Currently, their roasted bean selection consists of four beans: Denovo, a darker roasted coffee, which means to start anew. Their second bean is the 3Minute, which was the result of their first attempt at roasting beans that ended in failure. Although the name for the bean stuck, the roasted bean itself has become more perfected as this bean occupies the center between their darker and lighter choices. Their third, the Blue Bean, is a light roast with a hint of blueberry. Their final bean choice is a decaf Columbian, which is more of a medium blend coffee.

They purchase their beans from a wholesaler in the cities, ordering directly from them because of the supplier’s willingness to break down the traditional 150-pound burlap sack of beans, into 25-pound increments. The 25-pound bag option made obtaining beans for roasting easier, in the beginning. However, today they’ve graduated

into the 150-pound bags as the demand for their beans have increased.

“We’ve found that at the Farmers’ Market that many people want fair trade or organic beans,” Poppler said. “Currently, two out of four of our beans can be found in fair trade and/or organic. However, with the Blue Bean we are still looking for something that matches flavor in organic and fair trade.”

Due to their limited ability to sell under the Farmers’ Market exemption, the two have expanded their business to sell online while offering free delivery to those in the Mankato area. Although, most of their sales have been in the Mankato area, customers from Mankato have purchased their beans and mailed them to places as far away as Texas, Taiwan and Japan. In the future they would like to get into the Keurig-style K-Cups, as well as to expand their roasting abilities into more blends between the different coffees they offer.

“We are a unique business,” said Eric. “We enjoy delivering and getting to meet the people who drink our coffee. We’ve found that when people try our coffee, they do so because it’s local, but they return because the product is excellent. When our customers buy from us at the Farmers’ Market or online, they get coffee that is fresh, roasted the day before. That’s simply not something that can be purchased in a store, at least not at this time.” MV



Construction/Real Estate

C. Sankey

3.0

3.5

4.0

4.5

5.0

5.5

DNOSAJJMAMFJ

01000020000300004000050000600007000080000

DNOSAJJMAMFJ 0

1000

2000

3000

4000

DNOSAJJMAMFJ

0

55

110

165

220

275

DNOSAJJMAMFJ 0

10

20

30

40

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0

1000

2000

3000

4000

DNOSAJJMAMFJ0

4500

9000

13500

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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


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

$1,207

$3,182

$1,617 $3,965

214 214

1414

$3,152$1,744

$421$328

3.9%

4.0%



As we look ahead to 2016 it appears that we will have even tighter profit margins in crop production for next year, as compared to recent years. The

combination of lower projected market prices for corn and soybeans together with nearly steady input costs for seed, fertilizer, and chemicals will limit estimated potential returns over direct expenses and land costs, at average crop yields. Another major variable in breakeven levels in crop production are loan payments on capital investments such as farm machinery, facilities, and land purchases.

Approximately two-thirds of the corn and soybean acres in southern Minnesota are under some type of cash rental agreement. Based on farm business management records for southern third of Minnesota, the average land rental rate in 2014 was just over $250 per acre; however, there was a wide range in land rental rates across the region. Most likely, average cash rental rates for 2015 in many areas of the region were nearly the same as 2014, with some rental rates declining slightly as compared to a year earlier. Based on early reports from farm operators it appears that land rental rates for 2016 in some locations across the region may adjust slightly downward in response to the tighter profit margins that are likely for 2016. However, many rental rates are likely to remain quite high.

The University of Minnesota Center for Farm Financial Management has website called FINBIN, which allows farm operators, ag lenders, farm management advisors, and others to look at average income levels, direct and overhead expenses, and net return levels on farms. The data in FINBIN is based on actual farm management data

submitted by producers through the various farm business management programs. The data can be sorted on the basis of whole farms, crop or livestock farms, location, farm size or income levels, owned versus cash rent land, as well as other data sorts. Another FINBIN tool is called a “Benchmark Report,” which allows for the comparison of actual individual farm management data from a producer’s farm, compared to average data from similar farm operations in the same geographical area. (www.finbin.umn.edu)

Based on a FINBIN analysis for the years 2012-2014 of more than 800 crop farms on cash rented corn acres in southwest, south central, and southeast Minnesota, the average net return over average direct and overhead expenses, including land rent, was nearly $210 per acre per year. However, further analysis showed that there was an average of a +$348 per acre net return in 2012, a negative ($7) per acre net return in 2013, and a negative ($44) per acre net return in 2014. It is likely that 2015 will again show a negative average net return, even with the above average crop yields.

There is a wide variation in the net returns on cash rented corn acres between the top 20 percent of producers, compared to the bottom 20 percent. Based on the FINBIN data in southern Minnesota, the top 20 percent profit farms had an average net return above direct and overhead expenses in 2014 of +$143 per acre per year, compared to an average negative ($237) net return for the low 20 percent profit farms, which is a difference of approximately $380 per acre. More detailed analysis of the FINBIN data

2016 will be year of tight profit in ag

■ Agricultural OutlookBy Kent Thiesse

1. Know your “cost of production” …… this is a key for making grain marketing decisions, knowing where to lower production costs, and other management decisions. 2. Optimize crop insurance and farm program options …… these programs are key component of a good risk management plan for crop producers. 3. Negotiate land rental contracts with Landlords …… there may be opportunities to lower some very high land rental rates, or to convert to a “flexible lease” agreement. 4. Sharpen your grain marketing skills …… no matter what level grain prices are at, there is usually a large difference in average price that farmers receive for their corn and soybeans.

5. Use caution with capital investments …… from 2010-2014, many farm operators invested extra income into farm machinery upgrades, facilities, and land purchases; however, much more caution and analysis is required during these times of tighter profit margins.

6. Pay attention to family living expenses …… many farm families increased their level of family living during the higher profit years, but now may need to look for ways to scale-back the non-farm expenses. 7. Communication is key during difficult times …… sharing farm-related issues with business partner, ag lenders, farm advisors, and family members is extremely important during challenging times.

FARM MANAGEMENT STRATEGIES FOR 2016



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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

$86.62

$52.15

$3.36

$3.51

$18.28

$25.99

$8.18

$10.08

for 2014 looked at the various factors that comprise the large difference in the average net returns between the 20 percent high profit farms and the 20 percent low profit farms. The average corn yield for 2014 was 170 bushels per acre on high profit farms, and was near 158 bushels per acre on the low profit farms. The average corn market price received for 2014 was $4.19 per bushel on the high profit farms, and $3.77 per bushel on the low profit farms. The average on all farms in 2014 was a corn yield of 167 bushels per acre and a corn price of $3.97 per bushel.

There was also a significant variation in average costs per acre in 2014 between the top 20 percent profit cash rental corn farms and the low 20 percent profit farms. The average corn production expenses on all farms in 2014 were approximately $497 per acre for direct crop expenses, including seed, fertilizer, chemicals, etc., $251 per acre for land rent, and $859 per acre for total direct and overhead expenses. The top 20 percent profit farms had average expenses of around $457 per acre for direct expenses, $229 per acre for land rent, and just under $774 per acre for total expenses. The low 20 percent profit farms averaged $530 per acre in direct expenses, nearly $277 per acre in land rent, and $954 per acre in total expenses.

The average direct and overhead cost per bushel of corn produced for 2014 was $5.15 per bushel on all farms, which compares to $4.56 per bushel on the high profit farms, and $6.02 per bushel on the low profit farms. If we assume similar production expenses, land rental rates, and overhead costs for 2015 (approximately $855 per acre), with 2015 average corn yields that were approximately 10-20 percent higher than 2014 yields, the average direct and overhead cost per bushel for 2015 would be range from

$4.17 to $4.55 per bushel. The current corn price for the 2015 corn crop at most locations in southern Minnesota is below $3.50 per bushel.

As we plan ahead for very tight margins in corn and soybean production for 2016, it is a good time for farm operators to review all aspects of a crop operation. Obviously weather conditions can account for a large portion of the crop yield variation; however, there are other more controllable crop management factors that may also contribute to yield differences. Looking for ways to reduce or control direct and overhead expenses, including land rental costs, is also a key to improving profit potential for crop producers. Decisions that are made on crop marketing and crop insurance, as well as potential payments from the government farm program, can also have a significant impact on potential profitability for 2016. MV

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



Employment/Unemployment

C. Sankey

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100000

150000

200000

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

Initial unemployment claimsNine-county Mankato region

79618951

2291,265

78825748

2331,326

-3.8%+3.6%-5.9%+1.7%+4.8%

ConstructionManufacturingRetailServicesTotal*

Major Industry

November 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

12,1073,1181,3456,546

23,116

12,3693,7101,2786,272

23,629

+2.2%+19%-5%

-4.2%+2.2%

ConstructionManufacturingRetailServicesTotal*

Major Industry

December 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

2.3%

58,625

1,447

2.4%

57,729

1,389

Unemployment rate

Number of non-farm jobs

Number of unemployed

October 2014 2015

Blue EarthBrownFaribaultLe SueurMartinNicolletSibleyWasecaWatonwanMinneapolis/St. PaulMinnesotaU.S.

2.5%3.9%3.2%3.1%2.9%2.3%2.9%3.3%3.7%3.5%3.5%5.7%

2.4%2.8%3.3%3.2%4.2%2.1%2.8%3.4%3.9%3.1%3.2%4.9%

County/area October 2014 October 2015

130,468129,660

2,9112,902

3,7474,042 89,793

95,612



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200

300

400

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Retail/Consumer Spending

$539

$57,200$65,500

977870

$46,657

$43,418

$2.57

$1.89

$2.52

$1.90

(In thousands)

C. Sankey

Vehicle Sales Mankato — Number of vehicles sold

Source: Sales tax fi gures, City of Mankato

- 2014 - 2015

Lodging tax collections Mankato/North Mankato


- 2014 - 2015

Gas prices-Mankato

Source: GasBuddy.com

— 2014 — 2015

Gas prices-Minnesota — 2014 — 2015

Mankato food and beverage tax


- 2014 - 2015

Sales tax collections Mankato

Source: Sales tax fi gures, City of Mankato

- 2014 - 2015

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

Archer Daniels

Ameriprise

Best Buy

Crown Cork & Seal

Consolidated Comm.

Fastenal

General Growth

General Mills

Hutchinson Technology

Itron

Johnson Outdoors

3M

Target

U.S. Bancorp

Wells Financial

Winland

Xcel

Stocks oflocal interest Dec. 11Nov. 13

Percent change

-10.2%

-8.2%

-7.7%

-2.8%

+0.5%

+1.5%

+2.1%

+4.0%

-0.3%

+3.3%

-0.8%

-0.9%

-0.3%

-1.2%

-10.0%

-12.0%

-0.3%

$33.90

$103.28

$29.59

$48.73

$20.59

$39.20

$25.71

$58.01

$3.66

$34.78

$22.06

$155.30

$71.70

$41.90

$31.10

$1.75

$34.92

$37.76

$112.49

$32.06

$50.15

$20.48

$38.60

$25.17

$55.81

$3.67

$33.67

$22.24

$156.68

$71.93

$42.39

$34.50

$1.99

$35.01

$463


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Presented By:

On November 17, more than 500 members of the Greater Mankato community gathered to honor some of our region’s most outstanding businesses,

organizations and professionals at the Greater Mankato Business Awards & Hall of Fame. Thank you to our members and sponsors for a memorable and wonderful

event. Please join us in congratulating all of this year’s award recipients!

To view pictures and video from the event, as well as nominate a business, organization or professional visit

greatermankato.com/business-awards-hall-fame.

Dinner Sponsor Video Sponsor

Photos By Spx Sports

An event of:


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Gre

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ankato Grow

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Hall of Fame Inductees

Tailwind Group

Distinguished Business Award

Greg’s Champion Auto

Community Bank

Entrepreneurial Business Award

Freedom Home Care, LLC


Gre

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Greater M

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Brian Fazio Business Education Partnership Award

South Central College & CliftonLarsonAllen (Annual Ag Symposium)

Entrepreneurial Business Award

Hap Halligan Leadership Award

Eric Oleson Elizabeth Harstad

Young Professional of the Year


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Hospitality Award Bring it Home Award

Peter Olson, Children’s Museum

of Southern Minnesota

Minnesota Vikings 50th Training Camp

Renovation over $3,000,000 - Children’s Museum of

Southern Minnesota Building - Children’s Museum of Southern Minnesota and City of Mankato

CityDesign Awards

New Construction Under $5,000,000 - Profinium Place -

Tailwind Group and Mid Rise Holdings


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Greater M

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CityArt “People’s Choice” Award

“Godzilla” Dale Lewis

Wednesday, March 30, 2016

All business and community leaders from Greater Mankato are invited to join us at the 7th annual Greater Mankato at the Capitol on March 30, 2016 as we travel to St. Paul to raise our visibility of our region among state leaders. Visit greatermankato.com/capitol for more information and to sign up for the event.

Register Today!

Since 2011, the CityArt Walking Sculpture Tour has brought more than $1.5 million in rotating public art to the City Center and added 14 works to the community’s permanent collection.

Each year from May through October, members of the public vote for their favorite sculpture. The work of art named “People’s Choice” is then purchased by the CityArt program for permanent display in the City Center.

The 2015 “People’s Choice” award-winning sculpture is “Godzilla” by Dale Lewis of Hastings, MN. Affectionately called “Kato-Zilla” by its fans, “Godzilla” was created from hundreds of stainless steel scraps welded together to create the illusion of rough textured scales.



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307 McKinzie Street So.Mankato, MN 56001507-345-4828 507-289-4874www.paape.com

Please call for a free consultation and estimate


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