MAY/JUNE 2022

GROWING COMPANIES ENHANCING COMMUNITIES

Granite Partners is a private investment and holding company founded in 2002 in St. Cloud, Minnesota, with a mission to grow companies and create value for all stakeholders. As trusted partners, innovative leaders, and responsible stewards, we are committed to 100-year sustainability, and we aspire to world-class well-being for all people in and around the Granite community.

Granite.com

CONTENTS GROW | NETWORK | PROFIT

E X P LO R I N G C E N T R A L M I N N ES OTA’ S B US I N ESS ES .

Cover Story

PROFIT

28

IF YOU BUILD IT, THEY WILL COME Tom Frericks, owner of Ultimate Sports Bar, has almost forgotten that he once had something that he lost in a fire.

NETWORK 8 UPFRONT Valuable information designed to guide and educate 20 BUSINESS TOOLS Useful tips and intelligence on how to continue to grow your business

46 BUSINESS SPOTLIGHT Jill Magelssen, Express Employment Professionals

34 BREAKING THE RULES If you don’t have an innovation strategy, it’s time to get one.

38 TECHNOLOGY & INNOVATION DIRECTORY

GROW

M AY/ J U N E 2 0 2 2 : 4 Pr e s i d e n t ’ s Le t t e r / 6 E d i t o r ’ s N o t e / 1 8 N e t w o r k Ce n t ra l

ONLYONLINE BUSINESSCENTRAL MAGAZINE.COM

• Money Wasters • Avoiding Burnout • Improving Hybrid Work • Becoming Profitable

40 A SENSE OF PLACE Community leadership is working to turn Sauk Rapids into “Everybody’s Hometown” – and succeeding.

© Copyright 2022 Business Central, LLC. Business Central is published six times a year by the St. Cloud Area Chamber of Commerce, 1411 West St. Germain Street, Suite 101, P.O. Box 487, St. Cloud, MN 56302-0487. Phone (320) 251-2940 / Fax (320) 251-0081. Subscription rate: $18 for 1 year.

PRESIDENT’S LETTER

A delegation of Chamber volunteers visited Washington, D.C., in early April. From lef t: Hudda Ibrahim, Joe Hellie, Paula Capes, Jason Bernick, Tammy Bier y, Antoinette Valenzuela, Bernie Perr yman, Dave Borger t, Mark Osendorf, Kevin Johnson, and Chamber President Julie Lunning.

A Unified Voice

“T

he Voice of Business” is the mantra of our Chamber,

publishes research studies on state and federal tax policy.

a powerful statement that is the driving force behind

We also spent two days meeting with our Minnesota

our long-standing tradition of advocacy. By harnessing the

congressional delegation to discuss the Chamber’s business

collective power of our membership, we can join as one

priorities and our participants’ individual issues.

voice – a unified voice for businesses of all sizes, industries, and stages, to influence policy and change.

I encourage you to get involved in government affairs through events organized by the Chamber. Additional

The ability to tell your story collectively is important, and

opportunities for you to make these invaluable connections

making your individual message heard is equally valuable. If

are offered through the Chamber’s annual Session Preview,

you’ve joined me at a Friday morning Chamber Connection,

St Cloud Area Evening at the Capital, Regional Cities

Waite Park Chamber, or Sauk Rapids Chamber meeting,

Priorities Luncheon, Minnesota Chamber Day at the Capitol

you’ve come to know my tagline, “We are the voice of

– Mid-Session Review, Sessional Wrap-up, and monthly

business and strive to give business a voice.” Our Chamber

Government Affairs meetings.

does more than just carry our members’ issues forward, we

Democracy is not a spectator sport. Businesses must

work to help you make important connections that may be

play to make sure they are in the game and influencing the

difficult or intimidating to make on your own. Connecting you

outcome. Thank you for being a member of the St Cloud

with leaders and policymakers at the local, state, and federal

Area Chamber of Commerce and a partner in making a better

levels is a service we provide so you can tell your story and

future for business and Central Minnesota.

address specific needs.

The first week of April I was honored to escort 16 of our members to Washington, D.C., to make these important

“We must, indeed, all hang together, or most assuredly we shall all hang separately.” – Benjamin Franklin

connections. Members received briefings from the U.S. Chamber of Commerce in the areas of international affairs, immigration, education, and labor policy. The group was introduced to the Tax Foundation, a think tank that monitors the tax and spending policies of government agencies and

Julie Lunning President

2021-22 BOARD MEMBERS ____________________________ Marilyn Birkland, SCTimes/LocaliQ Main Phone: 320-251-2940 • Automated Reservation Line: 320-656-3826 Program Hotline: 320-656-3825 • information@StCloudAreaChamber.com StCloudAreaChamber.com

Main Phone: 320-251-4170

ST. CLOUD AREA CHAMBER OF COMMERCE STAFF ____________________________ President: Julie Lunning, ext. 104 Vice President: Gail Ivers, ext. 109 Special Events Coordinator: Laura Wagner, ext. 131 Membership Specialist: Antoinette Valenzuela, ext. 134

CONVENTION & VISITORS BUREAU STAFF ____________________________

Administrative Assistant: Vicki Lenneman, ext. 122 Administrative Assistant: Shelly Imdieke, ext. 100

Executive Director: Rachel Thompson, ext. 128 Director of Sales: Nikki Fisher, ext. 112 Sales Manager: Craig Besco, ext. 111 Marketing Manager: Emily Bertram, ext. 129 Sports and Special Events Manager Mike Johnson, ext. 110

Ron Brandenburg, Quinlivan & Hughes, Past Board Chair

Willie Jett, St. Cloud School District Kevin Johnson, K. Johnson Construction, Board Vice Chair

John Bryant, Geo-Comm

Bernie Perryman, Batteries Plus Bulbs, Board Chair

Christy Gilleland, Gilleland Chevrolet Cadillac

Paul Radeke, BerganKDV Brenda Sickler, Theisen Dental

Tanja Goering

Allison Waggoner, DCI Inc.

Joe Hellie, CentraCare

Donella Westphal, Jules’ Bistro

Ray Herrington, Pioneer Place on Fifth Patrick Hollermann, InteleCONNECT

Dr. Jason Woods, St. Cloud State University Colleen Zoffka

EDITOR’S NOTE

Dining Alfresco Far left: Editor Gail Ivers (R) with her Aunt Nancy enjoying breakfast on the Amazon River Left: Aunt Nancy having traditional Lao tea along the Mekong River in Luang Prabang, Laos

R

egular readers of this column know that I’m a recreational eater. What you might not know is that I will go out of my way to enjoy an outdoor dining experience.

My husband and I used to regularly eat on our patio. On days when most people would say it was too cold, we’d fire up our chiminea, put on full winter gear, and snuggle up to the fire with frozen fingers and rapidly cooling dinners. Gourmet? No. Memorable? You bet!

One fall we were having breakfast on the patio when the hummingbirds were migrating. I have never seen so many hummingbirds in one place before or since. We counted over 20! As they whizzed by us, chasing each other from their preferred feeders, it was like being divebombed by tiny homing missiles.

I have had the good fortune to dine outside in some pretty spectacular locations. Breakfast on the Amazon River in Peru at sunrise, listening to the jungle wake up, was particularly memorable. Enjoying tea and muffins from the back of a Land Rover in the African jungle was both amusing and a little scary. You don’t wander too far from the Land Rover in the jungle or you become breakfast.

In Laos, Aunt Nancy and I were up before sunrise to take our place along the side of the road to make our donations of sticky rice to the monks. That was followed by a traditional Lao tea with the Mekong River as a backdrop.

That same trip included outdoor dinner at sunset where

we looked across the Mekong River at fireworks and marveled at our good fortune.

Every day is a good day for ice cream. And of course, everyone eats ice cream outside. But not everyone has the opportunity to eat it in Florence.

That’s where former Chamber President Teresa Bohnen and I discovered a delicious gelato shop.

Somehow ice cream tasted even better there.

Of course Italy – and Europe in general – is better at offering outdoor dining than most of the United States.

Maybe that has something to do with mosquitos. Or maybe it has something to do with a lack of creativity on our part.

If you talk with Tom Frericks, I think he would argue the latter. Tom is the owner of Ultimate Sports Bar & Grill in Waite Park (see the story on page 28). He watched his bar burn to the ground and while it was still smoldering began plans to create a destination bar. In May 2021 he opened the new Ultimate, complete with an outdoor dining space that is both enclosed and open at the same time. Firepit tables, heat lamps, and a canvas wall create enough warmth to welcome diners to the patio on all but the coldest winter days. Come summer the canvas will be removed and – Voila! – full outdoor dining. I just have one question for Tom… Will there be hummingbirds?

Until next issue,

Gail Ivers, Editor

Publisher Julie Lunning // Managing Editor Gail Ivers CONTRIBUTING WRITERS Dr. Fred E. Hill, St. Cloud State University Gail Ivers, St. Cloud Area Chamber of Commerce Rene Kaluza, WordsWork LLC Ari Kaufman, freelance writer Julie Lunning, St .Cloud Area Chamber of Commerce Jean Massmann, BerganKDV Hannah Mayhew and Lynn MacDonald, St. Cloud State University

Jeanine Nistler, freelance writer Steve Penick, Stearns History Museum WEBSITE Vicki Lenneman ADVERTISING Associate Publisher/Sales Melinda Vonderahe Ad Traffic & Circulation Yola Hartmann, Hazel Tree Media

ART Design & Production Yola Hartmann, Hazel Tree Media Cover Story Photography Joel Butkowski, BDI Photography

1411 West St. Germain Street, Suite 101, P.O. Box 487, St. Cloud, MN 56302-0487, Phone (320) 251-2940, Fax (320) 251-0081 BusinessCentralMagazine.com For advertising information contact Melinda Vonderahe, (320) 656-3808 Editorial suggestions can be made in writing to: Editor, Business Central, P.O. Box 487, St. Cloud, MN 56302-0487. Submission of materials does not guarantee publication. Unsolicited materials will not be returned unless accompanied by a stamped, self-addressed envelope.

UPFRONT GROW | NETWORK | PROFIT

N E WS & P EO P L E T H AT M A K E U P T H E C H A M B E R N E T W O R K

I N S I D E T H I S I S S U E : People to Know / You r Vo ice in Govern me n t / Dig g in g H is to ry / T h e Tro u b le w it h B us i ne ss BOOK REVIEW

NEWS REEL

Building Resilience

CSB/SJU name new president

Business leaders can help employees deal with workplace anxiety by addressing some of the key causes.

Reviewed by Dr. Fred Hill

If you’re a manager, how do you keep up with demands while creating a lower-stress work atmosphere? How can you spot rising anxiety levels in your team members? If your employees feel overwhelmed or worried about the future, what can you do to ease their concerns?

How do you engage in productive conversations about emotions in uncertain times?

“Anxiety at Work” builds on the authors’ vast knowledge and experience working with the leaders of some of the world’s most successful organizations to offer realistic and useful strategies that can make any workplace better. — Anxiety at Work

F

ew things can paralyze the progress of any team or organization like anxiety. Many leaders strive to learn how to identify anxiety in their team members, understand the triggers, and provide the right support.

When team members feel too much anxiety, they can attack change and become combative or controlling as they try to ease the pain they feel.

Authors Adrian Gostick and Chester Elton use their extensive research to determine what they believe to be the eight leading sources of anxiety in the workplace. The book is organized around these eight sources, with a chapter for

each strategy. In addition, the book provides abundant practical tools to help leaders build resilience.

Anxiety at Work consists of nine chapters and a supporting conclusion.

The chapters are: 1. The Duck Syndrome – creating a healthy place to work.

2. How Anxiety Fills the Gap – help team members deal with uncertainty.

3. How to Turn Into More – help team members deal with overload.

4. Clear Paths Forward – help team members chart their way.

5. How “It’s Not Perfect” Can Become “It’s Good, I’ll Move On” – help

team members manage perfectionism.

6. From Conflict Avoidance to Healthy Debate – help team members find their voices.

7. Become an Ally – help marginalized team members feel valued and accepted.

8. Transform Exclusion into Connection – help team members build social bonds.

9. Turn Doubts into Assurance – how gratitude can help team members build confidence.

Be brave, take a chance, read this book.

Dr. Fred E. Hill is an emeritus professor at St. Cloud State University.

A n xi et y at Wor k ; 8 St rat e g i e s t o He lp Team s Bu ild Re s i l i e nce, Handl e Unce r t ai nt y, and Get Stu ff Don e by Ad r ian G o stic k an d C h ester E lto n , with Anthony Gos tick; Ha r per Co llin s P u blish er s, N Y; 2 02 1 ; ISBN 9 78 - 0 - 0 6 -3 0 46 15-3

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BusinessCentral Magazine.com // M AY/ J U N E 2 0 2 2

The College of Saint Benedict and Saint John’s University selected Brian J. Bruess, Ph.D., as the first president of both institutions.

Bruess is president of St. Norbert College, a nationally renowned Catholic liberal arts school in De Pere, Wisconsin.

He officially takes over his new position on July 1, 2022.

Before becoming president at St. Norbert in 2017, Bruess spent 21 years in a variety of roles at St. Catherine University, a Catholic liberal arts women’s institution in St. Paul, Minnesota.

That included more than three years as the school’s executive vice president and chief operating officer.

Berreau recognized Darold Berreau, local insurance agent and longtime SCORE (Service Corps of Retired Executives) mentor, was recently recognized by the organization for his involvement and support of businesses and SCORE clients in the St. Cloud area. SCORE is a nonprofit organization that is made up of volunteers who provide free services that help small businesses develop and grow their companies.

Send News Reel items to Gail Ivers, givers@stcloudareachamber.com for possible inclusion.

REASON #50,001

The Next 50,000

N E W AT T H E TO P

5 0 , 0 0 0 M E G A W A T T S

Greta Stark-Kraker, 47 Executive Director, Central Minnesota Community Foundation

When did you start in your current position: June 2021 What did you do in your previous position, and what will you miss most? In my previous role, I had the opportunity to help donors meet their philanthropic goals, along with developing relationships with donors and nonprofits.

I also worked with the Women’s Fund helping support women and girls in our community. My favorite event to plan was the “Women’s Fund Presents … Dancing With Our Stars” event. Now I get the opportunity to attend and support the event in my new leadership role.

What are you looking forward to the most in your new position?

I’m looking forward to helping our CMCF team

Where did you grow up?

St. Cloud/Central Minnesota What are your hobbies?

Long walks with my dogs and enjoying a quiet road trip on a backroad, snowshoeing, quilting, and spending time with family and friends.

R E A S O N S

When did you start at your company: 2001

grow, collaborating with community leaders and helping our donors achieve their philanthropic goals through the community foundation by engaging people, connecting people, and building community for all. We truly are better together. In addition, I look forward to continuing to help CMCF staff, board members, and volunteers provide a concierge level of engagement and commitment to our community as a whole.

5 0 , 0 0 0

Previous position: Director of Donor Relations, Central Minnesota Community Foundation

Delivering certainty with every renewable energy megawatt.

BlattnerCompany.com

Fun fact: I caught a 34-inch, 15-pound walleye with a pink fishing rod!

And one last thing: Kraker is pronounced Crocker The Blattner Family of Companies includes Blattner Company, Blattner Energy and D.H. Blattner & Sons.

M AY/ J U N E 2 0 2 2 // BusinessCentralMagazine.com

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NETWORK

UPFRONT

NEWS REEL Traut Companies relocates Traut Companies moved from their long-time location in Waite Park, to a new location in St. Joseph in March. The new 13-acre site includes a 24,000-square-foot building, almost twice the size of the old structure. The new location is 32640 County Road 133, St. Joseph, just two miles north of Coborn’s.

PEOPLE TO KNOW

St. Cloud Area Leadership Graduates Congratulations to the following people who graduated from the St. Cloud Area Chamber Leadership program in May. If you are looking for volunteers to serve on boards and committees, these individuals are a good place to start.

2021-2022 Leadership Class Lance Barthel, Batteries Plus Bulbs

Blake Herdina, Bradbury Stamm Construction

Amy Weisz, Inventure

Mike Brower, Ehlinger & Associates Inc./ American Family Insurance

Bambi Holloway, Catholic Charities

Erin Zondervan, Conway, Deuth & Schmiesing

Tammy Buttweiler, ConnectAbility of MN

Christine Huston, Blattner Company

Alex Cameron, Falcon National Bank

Erik Johnson, K. Johnson Construction

Alicia Chapman, Bluebird Creative

Alyssa Knese, Catholic Charities

Angie Dahle, Career Solutions

Mary Kruck, Coborn’s Inc.

Linda Dvorak, Premier Real Estate Services

Sarah Lampert, Park Industries

Great River FCU Merges Great River FCU (GRFCU) has merged with GEM Federal Credit Union of Minot, N. Dak., and Four Flags Area Credit Union of Niles, Mich. The merged credit union will have nearly 19,000 members and over $315 million in assets, with nine branch locations across three states. The GEM FCU and Four Flags Area CU will adopt the GRFCU name and eventually have the same products and services.

Dale Gruber Construction has new owner Rachel Gruber has taken over as the new owner and president of Dale Gruber Construction. Gruber joined the Dale Gruber Construction team in 2008 as marketing, human resource, and operations manager.

She has a degree in business management from St. Thomas University, and is a member of the Central Minnesota Builders Association (CMBA), chairs the CMBA Tools for Schools, and serves on the Associated Builders and Contractors Business Development committee.

BerganKDV announces merger BerganKDV and Simma Flottemesch and Orenstein (SFO), of Minneapolis, have merged, effective June 1. SFO offers extensive tax, audit, accounting and business advisory services to its clients and has been a prominent firm in the Twin Cities area since 1975. SFO will use the BerganKDV name and branding.

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LEADERSHIP

Jodi Gertken, CentraCare Chair, St. Cloud Area Chamber Leadership Program

________ (320) 251-2700, ext. 77526 gertkenj@centracare.com

Brent Frikken, U.S. Bank

Elizabeth Price, Grede

Douglas Gleisner, BerganKDV

Dana Randt, St. Cloud State University

Nathan Goebel, AIS Planning

Peter Schnobrich, American Heritage National Bank

Brittney Goebel, North Creative

Tom Seidl, Marco

Dana Gruber, Express Employment Professionals

Abbey Stemper, WhiteBox Marketing

Mitch Gwost, Conway, Deuth & Schmiesing

Candyce Thompson, Blackberry Ridge Golf Club

Patrick Hagemeier, Network Center

Laura Wagner, St. Cloud Area Chamber of Commerce

Jason Primus, BerganKDV Vice Chair, St. Cloud Area Chamber Leadership Program

________ (320) 251-7010 jason.primus@bergankdv.com

Ask for P RO G R A M D E TA I LS

St. Cloud Area Leadership Program St. Cloud Area Leadership is designed to help current and emerging leaders understand the dynamics of the community and the role leadership shares in building healthy communities.

This program brings together men and women of diverse backgrounds who share a common commitment to the future of the St. Cloud area.

St. Cloud Area Leadership: Grooms leaders who

Reinforces skills and

will contribute to your

imparts new knowledge

company

to employees

––––––––

––––––––

Provides professional

Provides greater

networking

understanding and a

opportunities and

broader perspective

enhanced community

of key issues in Central

connections

Minnesota

––––––––

––––––––

Helps employees

Encourages networking

develop greater personal

among emerging and

vision and confidence

established leaders

For Care That’s

EXCEPTIONAL When you’re looking for orthopedic care, don’t dive in to anything less than exceptional. This applies to exploring state-of-the-art technology and treatment options, as well as finding a caring and dedicated team of specialists and therapists, who are just as focused on your health and well-being as you are. When it comes to your care, you have a choice. For exceptional bone & joint care that helps you live better, ask for St. Cloud Orthopedics.

No referral necessary.

320-259-4100 Meet our team at StCloudOrthopedics.com Clinics in South St. Cloud & Sartell

Applications for the Leadership program are available online at StCloudAreaChamber.com, select “Programs” then “St. Cloud Area Leadership Program.” Applications must be submitted to the Chamber by May 15.

–––––––– For more information about participating in the 2022-23 program, call Gail Ivers at 320-656-3809 or givers@StCloudAreaChamber.com.

I N S Y M PAT H Y We extend our sympathy to the family and friends of Bob and Linda Feuling, owners of Westside Liquor. Bob passed away in February. Bob and Linda were on the cover of the SeptemberOctober 2007 issue of Business Central.

#LiveBetter

They were also the recipients of the Chamber’s 2007 Entrepreneurial Success Award.

M AY/ J U N E 2 0 2 2 // BusinessCentralMagazine.com

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NETWORK

UPFRONT

NEWS REEL

YOUR VOICE IN GOVERNMENT

Wish List Public safety is an over-arching theme for area cities.

Brenny in Top 20 Brenny Specialized, a division of Brenny Transportation, was included in the Top 20 Fleets to Drive For in 2022. The recognition comes from the Truckload Carriers Association (TCA) and CarriersEdge. The Top 20 winners are selected from for-hire trucking companies from across North America that provide exemplary work environments for their professional truck drivers and employees.

Public safety is the top concern for St. Cloud Mayor Dave Kleis.

Sauk Rapids Mayor Kurt Hunstiger (L) and City Administrator Ross Olson share plans for Mayhew Creek Park.

Waite Park Mayor Rick Miller (L) and Planning & Community Development Director Jon Noerenberg talk about the city’s comprehensive strategic plan.

Foundation awards grants The Bernick Family Foundation recently awarded grants to organizations and projects that go toward supporting youth, education, and health and wellness programs in Central Minnesota. Among the recipients was Big Brothers/Big Sisters of Central MN for its Sports Buddies program.

Falcon Bank adds staff Falcon National Bank recently added two executive level professionals to its staff. Steve Molander joined the bank as chief technology officer in January, and Mark Nettesheim filled the chief sales officer role in February.

Molander brings over 25 years of leadership experience in helping companies with operational efficiencies, technological evolution, and expansion of secure customer services. As CSO, Nettesheim will influence all major revenue driving departments including business banking, SBA, mortgage, retail banking, and equipment finance.

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Sartell Mayor Ryan Fitzthum discusses planned road construction.

“P

ublic safety is now a headwind for the entire state of Minnesota in terms of economic development.

This is new from four years ago.”

— Rick Miller, mayor of Waite Park

“O

ur top priority is public safety.

It was sales tax authorization, but now it’s workforce, especially our Police Department. Our cops aren’t leaving to go be a cop somewhere else.

They’re just leaving being a cop.”

St. Joseph Mayor Rick Schultz announces plans for a new community center.

“S

afety and security are big concerns for us.”

—Rick Schultz, mayor of St. Joseph

“S

artell used to be the place where officers went for an easier shift.

Now if something happens in St. Cloud, Sartell may be first on the scene.

We all support each other from a public safety perspective.”

—Ryan Fitzthum, mayor of Sartell

—Dave Kleis, mayor of St. Cloud

M

ayors and city administrators from St. Cloud, St. Joseph, Sartell, Sauk Rapids, and Waite Park met with business representatives at the St. Cloud Area Chamber of Commerce in February to talk about their priorities for the 2022 legislative session. In addition to public safety, city officials discussed a number of other city priorities:

Sartell received a $5.5 million bonding request last year. Road construction

will start this spring to connect the professional healthcare hub to Pinecone Road regional complexes.

Sartell had a food and beverage sales tax fail in February. It may bring it back

to a vote in the future at a general election. The money would be used for capital improvements and operation of recreational facilities.

St. Cloud is asking the legislature for a ½-cent local option sales tax for four road projects. The legislature has

recently denied using sales tax

for roads projects. All the roads connect to other cities so they should be considered “regional,” according to area mayors, but now the legislature is preventing cities from asking voters to approve the use of the local option sales tax for roads. St. Cloud plans to put it to the voters anyway.

“In addition, we want public safety money from the state to be flexible,” Kleis said. “We want to focus on retention and recruitment. ”

funding or city services will be eliminated.

been underway for several years. There is now a capital campaign in progress and the city is partnering with the St. Cloud Area Family Y. To help move the project along, the city is asking for a sales tax exemption for construction.

Waite Park is seeking $7.9 million in bonding money to add and improve

In St. Joseph, 30 percent of the properties are tax exempt. They are either

Sauk Rapids is requesting $10 million in bonding for improvements to Mayhew Creek Park. The

“We see the positive impact and the benefits of the outreach that results from this kind of program,” Mayor Rick Miller said. —GMI

educational or ecclesiastical, which means the city needs LGA (local government aid)

The biggest project in St. Joseph is the community center, a project that has

site is adjacent to school district property. The money

will be used for engineering design and construction of a regional sports complex. The total estimated project cost is $20 million during this phase.

parking for The Ledge Amphitheater.

TO P H ATS

MILESTONES 100 Years In Business: Rengel Printing, full-service printer, 1922 7th Street N, St. Cloud. Pictured: Debbie Clausen, Pete Rengel, LaRae Rengel, Dee Rengel, Kristin Hannon.

Watch for a new Community Outpost (COP) House in Waite Park similar to the one in St. Cloud.

MILESTONES 50 Year Member: Benson Funeral Home, mortuary, funeral home and crematory services, 1111 25th Ave. S, St. Cloud. Pictured: Tim McLean, Angie Benson, Mark Benson, Clint Lentner.

Rooted in your community.

Yesterday, today, and tomorrow.

We are proud to be neighbors and friends who share a long history of serving and supporting one another. Through our roots, we grow together in new ways and plant the seeds for a healthier tomorrow.

Together, our roots run deep.

CentraCare.com

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13

NETWORK

UPFRONT

NEWS REEL

DIGGING HISTORY

Stearns Bank recognized

Showtime!

Stearns Bank N.A., was named one of the best banks to work for by American Banker in its ninth annual ranking of banks in the U.S. The analysis for the ranking

St. Cloud’s Cinema 70 theater brought the latest movie technology to Central Minnesota.

By Steve Penick

is performed by Best Companies Group, which conducts extensive

St. Cloud Area Chamber of Commerce Top Hatters visited the Cinema 70 Theater af ter it opened its second wing in 1974.

Pictured: Ray Benson (L), theater manager Ed Villalta, and Cy Kuef ler

employee surveys and reviews employer reports on benefits and policies. This is the second time Stearns has received the recognition from American Banker.

–––––––– Stearns received additional recognition over the last year: the Monitor 100, which recognizes and leasing companies in the U.S.; Independent Banker’s Best of the Best list; Minnesota’s Best ag lender and bank; and St. Cloud Times Best of Central Minnesota.

DAYTA Marketing hires CEO St. Cloud-based DAYTA Marketing has hired Gordy Meyer as its chief executive officer. DAYTA Marketing also has raised more than $2 million to add new systems and technology intended to redefine marketing services. In addition to Meyer, DAYTA Marketing hired two senior leaders: Daine Billmark, chief technology officer and Tim Koivisto, vice president sales.

Billmark previously led a 40-member application development team at TransUnion and led a development team at eBureau that built an analytics platform for customers.

Koivisto has more than 20 years experience building sales functions in high-growth, Minnesota-based companies, including Native X and Optimum Communications Corp.

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B

y the early 1960s St. Cloud city leaders faced the daunting challenge of keeping their downtown economically viable. Like many across the country, they grappled with an aging infrastructure, traffic congestion, and limited parking. Plans were in motion to address these issues, such as the Division Street viaduct and lane expansion to ease traffic flow.

Business development followed the thoroughfare westward as road construction progressed.

The economic magnet ultimately proved to be Crossroads Center, an indoor shopping mall built in the mid-1960s near the St. Cloud/Waite Park city limits. The mall offered residents a new, modern comfortable shopping experience under one roof.

At one time, movie theaters had a strong presence in the central business core. The 1960 phone book listed three—the Eastman, Hays, and Paramount. Their beginnings in the downtown commercial hub reached back over 40 years, but the theaters were showing their age. The buildings and equipment needed upgrades to meet the changing expectations of theater goers.

In the spring of 1965, construction crews broke ground near the recently opened Crossroads Center for a new movie house.

Located northeast of the shopping center, Cinema 70 was named after the projection equipment that could handle 70-millimeter film. The theater also featured state-of-the-art decor, enhanced seating,

improved sightlines, and stereo quality sound.

Nothing else in the Central Minnesota market could compete with the theater’s amenities.

Robert Ross, president of St. Cloud based DriveIn Theaters, Inc., was interviewed by the St. Cloud Times about the building’s design. “Every patron will be assured of his own sight line to the screen without looking over or between the individuals in front of him,” Ross told the Times.

“This feature, and the generous spacing of the seats, will afford the utmost comfort and relaxation of the patron.” The auditorium consisted of 750 seats, with a 40-inch spread between seat rows. Theater-goers could stretch their legs in a setting cooled with climatecontrolled air conditioning.

Technological advances were also incorporated.

“Many pictures are made in both 70 and 35 millimeters.

We feel that when available it would be a real treat for

Courtesy of the Stearns History Museum

the largest equipment financing

Banking and

Imagine friendly service, local decision making, quick lines, and endless possibilities.

That’s what it’s like to partner with Farmers & Merchants State Bank. So go ahead and shoot for the stars—bank, borrow, and save with us.

An aerial view of Crossroads Center and Cinema 70 movie theater, looking south. ca 1970

the public in this area to see the brilliant 70-millimeter version with its visual and sound advantages over 35 millimeter, without traveling to Minneapolis,” Ross said in the St. Cloud Times interview. Essentially, the production process reduced background noise, allowing patrons to be wrapped in an envelope of high-quality audio.

An open house took place on November 2, 1965, with free coffee and donuts.

The following night, “It’s a Mad, Mad, Mad, Mad, World” premiered with an all-star cast including Spencer Tracy, Milton Berle, and Ethel Merman, among others. Two separate showings, one at 6:45 p.m. and another at 9:30 pm highlighted the evening.

About 10 years later in February 1974, Cinema 70 opened a second wing adding another 300 seats.

Managers selected “40 Carats” with Edward Albert,

Liv Ullmann, and Gene Kelly to be featured in the new Side Two. Side One, the original and larger theater, showed “The Sting,” starring Robert Redford and Paul Newman, which became one of the most popular films of the year. Other award-winning shows followed. Regardless, the glitz had already started to fade.

Cinema 70’s location ironically became a detriment to its existence.

A new movie house, Crossroads Cinema located northeast of Cinema 70, opened in 1981 and spelled doom for the aging duplex. Plans for a 150,000 square-foot addition to Crossroads Center expanded the building’s footprint and parking lot toward Minnesota Highway 15, crowding the theater.

By 1982, the last film hit Cinema 70’s screen and the theater was demolished within the next year.

Because friendly still counts.

FMPierz.com

Steve Penick is the head archivist at Stearns History Museum in St. Cloud.

M AY/ J U N E 2 0 2 2 // BusinessCentralMagazine.com

15

NETWORK

UPFRONT

THE TROUBLE WITH BUSINESS

S-Corp, C-Corp, LLC? Making the right decision in the alphabet soup of business tax structures is critical for every small business owner.

By Jean Massmann

still leaves the decision for a tax structure to go with it.

Sole Proprietor

Sole proprietorships are the easiest and most inexpensive structures to setup and there are few formalities to maintain. There is no separate income tax filing required, the business activity is included within the owner’s personal income tax return. All profits from trade or business activity will be subject to self-employment tax. The largest drawback for a sole proprietor is the lack of liability protection.

S Corporation

S corporations provide a solid structure for many small businesses. S corporations have an income tax return filing requirement, however the profits or losses pass through to the owners and are included on their personal income tax returns.

The self-employment tax in an S corporation is limited to the owner compensation paid through payroll, rather than applied to all profits of the business. S corporations are limited to a maximum of 100 shareholders. Partnerships, other corporations, certain kinds of

Deciding which tax structure aligns best with your unique business needs may seem complicated, but it doesn’t have to be.

L

aunching a small business is no simple feat. It’s a detailed process that requires you to make a lot of key decisions. One of the most important decisions a small business owner makes is which tax structure you want your business to fall under. Each tax structure has its own set of tax and non-tax pros and cons that must be considered along with your own goals and personal situation. Not sure which tax structure makes the most sense for your future business? Here’s a breakdown of several types of

business tax structures to help with that decision.

Limited Liability Company (LLC)

LLCs have become increasingly common, particularly for startup companies. In general, it can be easier and less expensive to set up an LLC than it is to set up a corporation. An LLC can be taxed as a sole proprietor, partnership, S corporation, or even a C corporation. Making the choice to form your business as an LLC

Contributor ________ Jean Massmann, CPA, is a tax shareholder at BerganKDV, partnering with clients on their tax, accounting and consulting needs.

16

BusinessCentral Magazine.com // M AY/ J U N E 2 0 2 2

Partnership

You may consider using a partnership structure if you have two or more owners. A partnership has similar pros and cons to a sole proprietorship. There are two types of partnerships to consider: general and limited. Partnership agreements can be flexible to fit your operating needs, but this does add a layer of complexity to the tax return preparation.

Partnerships have an income tax return filing requirement, however the profits or losses pass through to the owners and are included on their personal income tax returns. Partnerships are a good option for holding real property for investment or as a rental activity.

trusts, and nonresident aliens do not qualify as eligible shareholders.

C Corporation

C corporations are commonly known as regular corporations.

This is the only tax structure that pays its own tax, but are subject to a double system of taxation. That means that their profits are subject to income tax at a flat rate of 21 percent and they are also taxed to the shareholders if distributed as dividends. Although the taxation may seem high, many times it can be minimized when corporations put their profits back into their business to fuel future growth.

Deciding which tax structure aligns best with your unique

business needs may seem complicated, but it doesn’t have to be. By evaluating your business goals and types of activities, you can feel confident selecting a tax structure that’s beneficial to you and your tax strategy. Partnering with a tax professional to assist you in your business planning is a terrific way to ensure your startup questions are answered, and the right decisions are made so that you can focus on making your small business dreams a reality. It is also important to keep in mind that a choice of entity is not driven solely by tax considerations. There are many factors to consider, and you will want to include legal advice in the decision.

IN THE NEWS

Emerging Stars Tourism staff receive national awards Rachel Thompson, executive director of Visit Greater St. Cloud, was named one of eTourism Summit’s Emerging Tourism Stars for 2022. The program recognizes astute individuals in the eTourism community of digital and tourism professionals who are up-andcoming or new to their roles. Thompson was promoted to executive director in September.

Nikki Fisher was named a Top Young Professional in the Government Meetings Industry nationally by the Society of Government Meeting Planners (SGMP). Fisher is director of sales at Visit Greater St. Cloud. The Top Young Professionals program recognizes individuals with proven leadership skills and a dedication to the betterment and sustainability of SGMP. Members were nominated by their peers and honorees were selected by a panel of industry professionals. Fisher and the other honorees will be recognized at the SGMP conference in June. Visit Greater St. Cloud is a division of the St. Cloud Area Chamber of Commerce.

CONFIDENCE.

It’s that feeling you get when your CFP® collaborates with tax professionals for a tax-efficient wealth management strategy.

BECCA OELRICH, CFP® BerganKDV Wealth Management, LLC

STEVEN LEEN, CPA, CGMA BerganKDV, Ltd.

JEAN MASSMANN, CPA BerganKDV, Ltd.

ADAM HEATHCOTE, CFP® BerganKDV Wealth Management, LLC

IT'S NOT A SERVICE. IT'S A FEELING. bergankdv.com | #STARTHERE Investment advisory services and fee-based planning offered through BerganKDV Wealth Management, LLC, an SEC Registered Investment Advisor. Tax and Accounting Services offered by BerganKDV, Ltd.

M AY/ J U N E 2 0 2 2 // BusinessCentralMagazine.com

17

NETWORKCENTRAL GROW | NETWORK | PROFIT

E V E N T S A R O U N D T H E ST. C LO U D A R E A

M O R E O N E V E N T S : Fo r i n f o r m a t i o n o n t h e s e o r o t h e r b u s i n e s s e v e n t s , c a l l 3 2 0 -2 51 -2 9 4 0 o r v i s i t S t C l o u d A r e a C h a m b e r. c o m a n d c l i c k o n “ C a l e n d a r.”

Grow!

Lunchtime Learning and St. Cloud Area Leadership offer members the opportunity to learn from the experts.

Lunchtime Learning participants shared ideas about how to create an environment that encourages upward communication.

A panel of business leaders shared strategies for Becoming an Employer of Choice.

Kelly Cane, Gaslight Creative, provided tips on making the most out of Facebook advertising.

Erin Lucas, co-owner of Flour and Flower and Krewe Restaurant, met with the St. Cloud Area Leadership class in March.

18

BusinessCentral Magazine.com // M AY/ J U N E 2 0 2 2

Tara Gronhovd, Align, led a discussion on Leading Up.

Erin Lucas and her partner and husband, Mateo Mackbee, owners of Flour and Flower and Krewe Restaurant, were featured speakers during the Leadership program’s Entrepreneur Day.

Carrie Christenson (left at podium) and Kim Molitor, Simplicity Redefined, started the new year by sharing ideas on how to declutter your personal and professional spaces.

Cloud Area Evening at the Capital provided a unique opportunity to Network! St. network with a variety of Minnesota’s elected officials.

Rep. Lisa Demuth and Dan Ochsner, Leighton Broadcasting

Rep. Tim O’Driscoll (L), Sen. Jeff Howe, and Sauk Rapids City Administrator Ross Olson

Jason Primus, BerganKDV and Jodi Gertken, CentraCare

St. Cloud Mayor Dave Kleis (L) and Bernie Omann, St. Cloud State University

Chamber President Julie Lunning and Rep. Dan Wolgamott

TREVOR C. McIVER, MD

John Wolak, Arvig; Bernie Perryman, Batteries Plus Bulbs; and St. Cloud State University President Dr. Robbyn Wacker

Make A Better Choice:

SPINE SURGERY Surgical advancements have made it possible for many spinal surgeries to be safely and effectively performed as outpatient procedures, allowing patients to experience faster recovery while spending less out-of-pocket.

JOEL C. SHOBE, MD

At St. Cloud Surgical Center, our surgeons perform such spinal procedures as: • • • •

Anterior Cervical and Lumbar Diskectomy and Fusion Disk Replacement SI Joint Fusion Removal of Spine Fixation Device

To learn more about making a better choice for your spine surgery, call us today 320.251.8385

Better Care, Better Costs, Better Recovery… Better YOU. 1526 Northway Drive, St. Cloud, MN 56303 |

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19

BUSINESSTOOLS GROW

| NETWORK

|

PROFIT

R ES O U RC ES T H AT H E L P YO U R B US I N ESS G RO W

I N S I D E T H I S I S S U E : Management Toolkit / Tech St rate g ie s / Eco n o my Ce n t ral by Falco n Ban k MANAGEMENT TOOLKIT

First Impressions Is your website out of date? Don’t leave visitors with a bad first impression.

By Ari Kaufman

H

ow long is your first glance at a website?

Maybe 10 seconds? Nope.

That’s generally how long you look at a new person. Try maybe two seconds. It’s an infinitesimal amount. And the worst firstimpression is a website that clearly needs an update.

Many experts believe three or four years is a good benchmark for reviewing a website, and either doing a renovation or an overhaul. Before you assume that’s too frequent and daunting, realize that three years ago there was no COVID-19 or TikTok. Life and technology change, and

a website should reflect those changes. If your website design looks like it’s from the past, you are not helping your business in the present.

“People forget that their client is the hero, and they spend too much time talking about how great they are as a business, rather than showing people how their business can help people get to the end better,” Guy Magno, creative director for St. Cloud Switchboard, explained. Magno started Switchboard in 2015.

As for cost, Magno said, it depends on if your website is a brand or e-commerce website, but the average Central

Minnesota business can expect to spend $5,000-$10,000 for a good website to help convey their message. “You can get it done for less, but probably should not,” Magno said.

Visual appearance is a major element of your website. The home page design should get the most attention because it’s the gateway to your key content. Studies show half of all people abandon a website if it doesn’t load properly in fewer than four seconds.

“Be sure to have the critical information people want — business name, what you do, physical address, contact information, hours, pricing if applicable, that sort of thing,” Andy Ringsmuth said. Ringsmuth is a former Waite Park resident and current technology manager for a national publishing company. “The most common information I’m looking for on a website are hours and location, updated regularly. If there’s a holiday coming up, put a note on there about whether you’re open or closed.”

Magno said he often gets rid of 90% of the words when

Contributor ________ A former schoolteacher and historian, Ari Kaufman has worked as a journalist in various roles since 2006. He has published articles in a dozen newspapers, written three books and currently resides with his wife in St. Cloud.

20

BusinessCentral Magazine.com // M AY/ J U N E 2 0 2 2

re-designing a website, because “negative space is actually valuable.” Instead, he advises to “give viewers just enough information that they want to consume. You want a clear call to action.”

And remember, the prime goal of a website is to give your brand a strong online presence.

Yes, looks count, but if users cannot find it quickly and accurately via search engine results, you must improve your search engine optimization — or SEO — so you do not miss potential clients or readers.

Avoid the Obvious A few things to avoid when creating or re-designing your website: An outdated appearance Content that makes it slow-loading or “non-responsive” Difficulty scrolling through it in a streamlined form Confusing or extraneous information Difficulty viewing it on multiple platforms or not mobile-friendly

TECH NEWS

Dog-on-it!

Space Telescopes

Research shows that the particularly sensitive noses of some dogs can be used to accurately detect diseases such as lung cancer in human patients via the odor of their breath or urine.

Scientists are now seeking to replicate these complex canine olfactory systems in more scalable, less slobbery medical devices. Source: Future

A radical plan to launch accurate thermal infrared telescopes into space to look back down at Earth could give a more accurate picture of where energy is leaking. Buildings account for more than a quarter of greenhouse gas emissions on Earth. The information provided by the telescopes could help hold governments, businesses, and individuals accountable for climate goals – and spur them on to clean up their act. Such a project is underway at the University of Cambridge, where scientists are creating a prototype unfolding telescope that could take high-resolution infrared thermal images to track energy emissions around the world. Source: The Institution of Engineering and Technology

The Power of Automation Technology is available today to assist small business owners and marketers in every industry to bring all or part of their operations to the cloud. Think: appointment booking, proposal software, customer service, and more. Automation has top-line and bottom-line benefits that drive profits, productivity and efficiencies for your team, no matter how small, according to the CEO of Indie Brooks International. Source: Forbes

Today Institute

For more information about automation tools for small business, visit BusinessCentralMagazine.com

DELIVERING EXCELLENCE IN EVERYTHING WE DO.

NOR-SON CONSTRUCTION

Nor-SonConstruction.com Nor-Son is an awarded contractor for Sourcewell and AUTHORIZED NUCOR BUILDER.

M AY/ J U N E 2 0 2 2 // BusinessCentralMagazine.com

21

GROW

BUSINESSTOOLS

T EC H ST R AT EG I ES

Cybersafety Protecting your business from cyberattacks doesn’t need to break your budget.

Compiled by Gail Ivers

improvements. A cybersecurity risk assessment can identify where a business is vulnerable, and help you create a plan of action – which should include user training, guidance on securing email platforms, and advice on protecting the business’ information assets.

The Department of Homeland Security’s (DHS) Cyber Resilience Review is a non-technical assessment to evaluate operational resilience and cybersecurity practices. You can either do the assessment yourself, or request a facilitated assessment by DHS cybersecurity professionals.

Planning and assessment tools

C

yberattacks are a growing threat for small businesses and the U.S. economy.

According to the FBI’s Internet Crime Report, the cost of cybercrimes reached $2.7 billion in 2020 alone (most recent data available). The top three crimes reported by victims in 2020 were phishing scams, nonpayment/non-delivery scams, and extortion.

Small businesses are attractive targets because they have information that cybercriminals want, and they typically lack the security infrastructure of larger businesses. According to a recent survey by the Small Business Administration

22

(SBA), 88% of small business owners felt their business was vulnerable to a cyberattack.

Yet many businesses can’t afford professional IT solutions, have limited time to devote to cybersecurity, or they don’t know where to begin.

The SBA recommends that you start by learning about common online threats, understanding where your business is vulnerable, and taking steps to improve your cybersecurity.

Assess your business risk

The first step in improving your cybersecurity is understanding your risk of an attack, and where you can make the biggest

BusinessCentral Magazine.com // M AY/ J U N E 2 0 2 2

There’s no substitute for dedicated IT support — whether an employee or external consultant — but businesses of more limited means can still take measures to improve their cybersecurity. The federal government has a variety of tools available to help small businesses with cybersecurity.

1 The Federal Communications Commission offers a cybersecurity planning tool to help you build a strategy based on your unique business needs.

2 DHS also offers free cyber hygiene vulnerability scanning for small businesses. This service can help secure your internet-facing systems from weak configuration and known vulnerabilities.

Common Threats Cyberattacks are constantly evolving, but business owners should at least be aware of the most common types.

Malware (malicious software) is an umbrella term that refers to software intentionally designed to cause damage to a computer, server, client, or computer network. Malware can include viruses and ransomware. ___________ Viruses are harmful programs intended to spread from computer to computer (and other connected devices). Viruses are intended to give cybercriminals access to your system. ___________ Ransomware is a specific type of malware that infects and restricts access to a computer until a ransom is paid. Ransomware is usually delivered through phishing emails and exploits unpatched vulnerabilities in software. ___________ Phishing is a type of cyberattack that uses email or a malicious website to infect your machine with malware or collect your sensitive information. Phishing emails appear as though they’ve been sent from a legitimate organization or known individual. These emails often entice users to click on a link or open an attachment containing malicious code which then infects your computer.

T EC H ST R AT EG I ES

By the Numbers Internet crime is alive and well according to the FBI’s 2020 Internet Crime Report, and people are losing a lot of money.

In Minnesota:

$35.7 million

lost to business email compromise scams _______

Sources: FBI; Small Business Administration

$4.03 million

lost to corporate data breaches _______

$2.1 million

lost to tech support _______

$1.09 million

lost to phishing and its many variations

Nationwide:

$1.8 billion

lost to business email compromise scams _______

$600 million

lost to romance scams _______

$336 million

lost to investment fraud For links to the resources listed here visit BusinessCentral Magazine.com

LOOKING FORWARD TO SERVING OUR COMMUNITY IN THE COMING YEAR

TECH NEWS

Source: Future Today Institute

Taste-testers Needed Chocolate is under threat as climates in top cacao-producing countries become warmer and drier — a bad combination for this plant that thrives in humidity. Still, there may be hope. A recent study showed that wild cacao would likely thrive in an expanding habitable zone in Peru. Just in case, biotechnology could also ensure your favorite treat stays on the shelf. Researchers are working to analyze the fingerprint of raw cocoa and rebuild it in the lab, promising you won’t be able to tell the difference. No word yet on how you get on the tastetesting committee.

www.DESIGNELECT.com CONTACT US FOR ALL YOUR COMMERCIAL WIRING NEEDS STILL GREAT REBATES ON LED LIGHTING UPGRADES CONTACT OUR PROFESSIONAL SERVICE TEAM

COMMERCIAL

PH-320.252.1658

INDUSTRIAL

TRANSPORTATION

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23

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BUSINESSTOOLS

Economy Central presented by

ECONOMY CENTRAL

Where Have all the Workers Gone?

By Hannah Mayhew and Lynn MacDonald

W

ith roughly 86 percent of the U.S. adult population having received at least one dose of the COVID-19 vaccine, schools open, and restrictions being scaled back, employers are left asking, “Where are the workers?” In December 2021, the unemployment rate in the United States was 3.9 percent while the job openings rate was 6.8 percent.

A recent Pew Research survey reveals that retirements may be a key factor in the decline. Pew Research surveyed U.S. adults aged 55 and older in the third quarter of 2021, and found that 50.3 percent of respondents had retired, an increase of 2.2 percent prior to the onset of the pandemic.

Recent work by economists Alex Domash and Lawrence Summers help bolster the survey

findings that retirements, which accelerated at the start of the pandemic, are contributing to the workforce shortage. Domash and Summers compared actual retirements to the expected number of retirements using 2019 retirements as a baseline. They found that there were 1.3 million excess retirements between February 2020 and December 2021.

Furthermore, rates of retirement have been uneven across both geographic and demographic groups. The Midwest has experienced a 3 percent increase in the rate of retirements since the onset of the pandemic, exceeding that of the northeast, southern, and western regions. Although retirements are largely occurring in metropolitan areas, rural regions

Contributors ________ Hannah Mayhew is an economics student at St. Cloud State University; Lynn MacDonald is an associate professor of economics at SCSU.

24

BusinessCentral Magazine.com // M AY/ J U N E 2 0 2 2

have also experienced an uptick in the rate of retirements. Both men and women are retiring at similar rates, but college-educated white adults account for most of the retirements.

While the increase in retirements has played a role in the labor shortage, research suggests there are several important factors at play.

Domash and Summers estimate there is a labor shortfall of 6.9 million people in 2022 relative to February 2020. Of the 6.9 million, 1.3 million will come from the aging population, which is unrelated to the pandemic.

Notably, this is in addition to the 1.3 million in excess retirements.

An additional 1.5 million of the worker shortage can be attributed to COVID-19 related health concerns. Immigration restrictions, reduced incentives to work, and mandated vaccinations are also contributing factors to the worker shortage.

Interestingly, while some workers took the pandemic as an opportunity to retire, others may continue to work longer because of financial hardship.

During the pandemic, 15 percent of employers reported increases in the number of employees withdrawing from their defined contribution plans and 12 percent reported an increase in employees taking plan loans.

“These behaviors could push the workers to work longer and delay retirement to rebuild their pension wealth if the recovery continues strong and employees can readily find jobs,” according to economist Richard Freeman.

Domash and Summers estimates lead them to believe that despite these potential competing pressures from financial hardship, the worker shortage will persist through 2022. While this may not be good news, economist and researcher Tino Sanandaji and team suggest several approaches to attracting workers during a worker shortage. They offer the following ideas: check your hiring assumptions to see if they are still relevant because previous approaches may no longer be as effective, attract local talent and find ways to make it easier on commuters, adjust salaries to reflect the cost of living, and invest in COVID safety.

Labor Force Participation Prior to the pandemic, older adults were the only working age population to increase their labor force participation.

THEN

NOW

67%

63%

66%

56%

Labor force participation for the entire working age population in 2000

Labor force participation among 16-to 24-year-olds in 2000

Labor force participation for the entire working age population in 2019

Labor force participation among 16-to 24-year-olds in 2019

FUTURE CAST

40%

The projected number of 65-to 69-year-olds in the labor force by 2030, compared to 33% in 2020

Source: PEW Research Center

Recent research reveals that retirements may be a key factor in the decline of workers.

E PARK,

$200M

Residential Building Permits

November

16,523*

621,465

885,721

$80M

E PARK,

1,424*

32,948

24,272

December

Home Sales Closed

October

6 COMMUNITIES - ST. CLOUD, SAUK RAPIDS, SARTELL, WAITE PARK, ST. AUGUSTA, ST. JOSEPH

Economy September

ECO N O M I C I N D I C ATO R S & T R E N D S

Central presented by

ST. CLOUD

COLOR KEY:August

TOTAL: $4,699,408* Compiled by Shelly Imdieke, data current as of 4/1/2022

July 2022 Jan Feb December Mar Apr May June July Aug Sept Oct Nov Dec

2022

December

November

October

September

August

22 3,685,577

162 $4,529,642

2020

10

November

No data available No data available 4 $60,313

10

Food and Beverage ST. CLOUD

B U I L D I N G P E R M I T S BY C O M M U N I T Y Commercial September 2020 #/$

TOTAL: $10,431,467*

2021 #/$

August 246

282 2022 $105,238,005

40 $7,945,367

Sartell

July 309 December

158 $18,230,359

No data available No data available

$68,749,665 $15,070,149

June

TOTAL: $153,245,951*

2022* #/$

St. Cloud

1000

Sauk Rapids November 8 $30,482,808

5 Food $1,515,637and Beverage

$5,556,423

122 $11,691,421

$706,932

11 $9,754,200

12 2020 $2,774,220

St. Joseph

Mar August Feb July

51 $7,919,703

TOTAL: 182*

St. Augusta

Apr September

TOTAL: 1868

1500

TOTAL: $1,287,691

TOTAL: $1,604,677

$1500000

56 2021 $12,310,906

May Waite Park October35

TOTAL: 1823

Data not released at time of print

$1000000

Home Sales Closed in St. Cloud Area

113 $11,360,899

6 COMMUNITIES - ST. CLOUD, SAUK RAPIDS, SARTELL, WAITE PARK, ST. AUGUSTA, ST. JOSEPH

95

March $10,023,126

October

TOTAL: $10,431,467*

2022

44 $3,001,040

ST. CLOUD 12

No data available No data available 10

$263,531 $0

$300k

$

*Total as of 4/1/2022; City of Sartell and St. Augusta data not available at time of print.

Jan

$2000000

$150M TOTAL: $153,245,951* $200M

June

2000

$100M

2021

500

$500000

$50M

July

1 $5,500

2021

December

6 COMMUNITIES - ST. CLOUD, SAUK RAPIDS, SARTELL, WAITE PARK, ST. AUGUSTA, ST. JOSEPH TOTAL: $137,532,948

2021

54 $2,766,805

49

No data available

0No data available 500

January 500 *Total as of 4/1/2022; City of Sartell and St. Augusta data not 0 available at time of print.

$100M

Commercial Building Permits

$0M

June

$80M

6 COMMUNITIES - ST. CLOUD, SAUK RAPIDS, SARTELL, WAITE PARK, ST. AUGUSTA, ST. JOSEPH

2022

140 $2,570,809

February

Commercial Building Permits

2020

252 $9,116,510

2020

$60M

2022

2021

236 May $7,739,324

2019

$40M

St. Joseph

82 $2,062,785

477 $28,930,350

April $2,336,431

St. Augusta

ST. CLOUD

January$16,235,353 June

0

$20M

Sauk Rapids

TOTAL: $78,621,465

2022

560

Home Sales Closed 2022* #/$

777 2020 $31,498,210

765

$38,601,654 February July

Sartell

$80M $100M TOTAL: $88,202,416

Food and Beverage Tax Collection

ST. CLOUD

$0 $0M

2021

2021 #/$

August

Waite Park

2020

May

$60M

2020 March #/$

St. Cloud

2021

2020

2019

2021

$40M

April

$20M

September

Residential

2022 $0M

May October

BUILDING P E R M I T S BY C O M M U N I T Y April

TOTAL: $4,699,408*

2020

March

6 COMMUNITIES - ST. CLOUD, SAUK RAPIDS, SARTELL, WAITE PARK, ST. AUGUSTA, ST. JOSEPH TOTAL: $78,621,465

June November

February

January

December

November

October

September

August

July

June

May

Apr

Mar

Feb

Jan

Residential Building Permits

2021

TOTAL: $88,202,416

2021

May and St. Joseph.

Sources: Building departments for the following cities: St. Cloud, Sauk Rapids, Sartell, Waite Park, St. Augusta, Apr

TOTAL: $137,532,948

2020

2021-2022

$

December

November

October

1.0%

6%

September

J

August

J

July

June

Jan

May

April

March

1.5%

February

January

$200M

December

November

$150M

October

September

August

$100M

July

June

May

April

March

February

January

$50M

Source: positivelyminnesota.com $0 $300k

Feb 2.0%

$0M

7%

2021-22 -% CHANGE

Source: positivelyminnesota.com

8%

2020

Non-Farm Mar Jobs

Unemployment Rates

0.5%

5%

0.0%

4%

-0.5% -1.0%

3%

-1.5% 2%

J

F

M

Total as of 4/1/2022

A

M

J

J

A

S

O

N

D

J

St. Cloud Minneapolis/St. Paul Minnesota United States

-2.0%

J

F

M

Total as of 4/1/2022

A

M

A

S

O

N

D

J

F

St. Cloud, MN MetroSA Minnesota United States

M AY/ J U N E 2 0 2 2 // BusinessCentralMagazine.com

25

GROW

500

1000

E PARK,

0

16,523*

January

621,465

885,721

$100M

$80M

1500

2000

BUSINESSTOOLS COLOR KEY:

Jan December Feb Mar Apr May June July Aug Sept Oct Nov Dec

E C O N O M I C I N D I C A T O R S & T R E N DDecember S

Food and Beverage Tax Collection October ST. CLOUD

October

September

TOTAL:*

September

TOTAL: 136*

TOTAL: $10,431,467*

August

August

2022

2022

2021

O U T LO O K!

More than Taxes December

S

TOTAL:*

TOTAL: $1,287,691

Sheriff’s Foreclosure Auctions STEARNS AND BENTON COUNTIES

$0

$300k

$600k

TOTAL: $1.2M 6*

$900k

$1.5M

2022 TOTAL: 31

Residential

2019

2020

2021

Stearns Co.

34

17

6

Benton Co.

8

14

No data

Benton County Sheriff’s Civil Process; Stearn’s County Sheriff’s Office *Total as of 4/1/2022; No data for 2022 Benton County at time of print.

December

$600 million

$3.5 billion

IRS-CI budget

Illicit cryptocurrency seized by IRS-CI in fiscal year 2021. It has already seized more than this amount in fiscal year 2022.

________

$10.4 billion

SHERIFF’S FORECLOSURE AUCTIONS

November

50

October

40

September

August

July

June

TOTAL: 42

30

BusinessCentral Magazine.com // M AY/ J U N E 2 0 2 2

May

20

April

10

March

BY THE NUMBERS

2020

0

February

January

December

November

October

September

August

July

June

May

April

March

February

January

2021

TOTAL: 182*

$1.2M

2000

$2000000

2020

September

TOTAL: 1868

$1M

$1.5M

ince 2017, the IRS has been involved in more than 20 investigations August directly related to illicit money laundering by oligarchs. Their July investigations involved restitution of hundreds of millions of dollars paid, asJune well as the seizures of properties, in conjunction with fellow law enforcement agencies. Typically, these investigations require May IRS-Criminal Investigation (CI) to follow complex asset trails —any time assets are routed through United States financial systems, CI April Special Agents can trace them, and they have the ability to deanonymize Marchanonymous transactions. otherwise CI February cyberagents have also previously been engaged in the review and investigative efforts involving cryptocurrency transactions associated January with Russian-based entities for the past several months. The project, known as Sanction Evaders, is looking at blockchain transactional information associated with sanctioned countries.

Intrigued? The IRS is hiring.

TOTAL: 1823

TOTAL: $1,420,811 $800k

$1.2M

IRS Criminal Investigation is the only federal law November enforcement agency authorized to investigate and October pursue crimes such as money laundering, currency violations, and terrorist financing.

2021 Source: Tax Collections – City of St. Cloud *Total as of 4/1/2022

$900k

*Total as of 4/1/2022, data for 2022 not released at time of print.

TOTAL: $749,418

$600k

$600k

Source: Tax Collections – City of St. Cloud

1500

TOTAL: $1,287,691

TOTAL: $1,604,677

$1500000

$400k

$300k

January

Home Sales Closed in St. Cloud Area

2500

1000

Data not released at time of print

$1000000

$200k

6 COMMUNITIES - ST. CLOUD, SAUK RAPIDS, SARTELL, WAITE PARK, ST. AUGUSTA, ST. JOSEPH

$0

TOTAL: $1,142,027 Food and Beverage Tax Collection

ST. CLOUD

March February

Feb

TOTAL: $92,192*

2022

2021

ST. CLOUD

$0

2020

Lodging Tax Dollars

TOTAL: $1,287,691

500

$500000

*Total as of 4/1/2022

0

Food and Beverage Tax Collection

ST. CLOUD

$0

2020

Mar

500 1000 1500 2000 Jan $100M $150M $200M Housing/Real Estate sources: St. Cloud Area Association of Realtors, http://stcloudrealtors.com/pages/statistics.

2020

2019

2021

2020

2019

April

TOTAL: 1868

Apr

0

2022

May

May

TOTAL: $137,532,948

2021

TOTAL: $1,420,811

June

TOTAL: 2010

June

2020

26

July

July

TOTAL: $153,245,951*

December

November

October

September

August

July

June

November

May

April

March

November

February

January

UD, SAUK RAPIDS, SARTELL, WAITE PARK,

December

November

October

September

August

July

June

May

Apr

Mar

Feb

Jan

Home Sales Closed in St. Cloud ing Permits ST. CLOUD

2021

2500

Identified from tax fraud and financial crimes.

IRS-CI deterred at least an equivalent amount of such behavior.

________

4,017 Number of IRS-CI employees in 2010 vs 3,000 in 2022

Source: IRS.gov

$200M

E PARK,

$80M

1,424*

32,948

24,272

$60M

benefiting:

St. Cloud COP House and other initiatives of the Greater St. Cloud Public Safety Foundation

June 3rd | Territory Golf Club

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The foundation is led by the private sector, with collaboration from public agencies, community leaders and volunteers.

Our initiatives include building the St. Cloud Rotary/ Richard C. Wilson Community Outpost (aka COP House) in south St. Cloud, providing scholarships to those pursuing careers in public safety, supporting the wellbeing of first responders and their families, and acting as a fiscal host for other advocates of public safety. Learn more at: www.GSCSafety.org

28

BusinessCentral Magazine.com // M AY/ J U N E 2 0 2 2

IF YOU BUILD IT, THEY WILL T COME

Tom Frericks, owner of Ultimate Sports Bar, has almost forgotten that he once had something that he lost in a fire.

By Gail Ivers /// Photography by Joel Butkowski, BDI Photography

BEST BUSINESS ADVICE:

“STARE STRAIGHT AHEAD. EVERYTHING YOU CAN CONTROL IS IN FRONT OF YOU.” — STEVE LEGRAND, FRERICKS’ FORMER BASEBALL COACH

om Frericks, owner of Ultimate Sports Bar and Grill, spent 35 years dreaming of what he would do if he remodeled his bar. There were so many things – more windows, change the ceiling height, create an outdoor space, add more light, modernize the restrooms – the list went on and on. But that was just a fantasy and in his daily life what he thought was “I have a really cool bar.”

Monday, April 6, 2020, changed all that.

At 8:53 a.m. Frericks received a 911 call on his phone that the building’s heat and smoke sensors had triggered. “We’d had sensors go off before, and when you got to the bar obviously nothing was wrong. You walk through the building with the fire department and everything is good to go.”

Not this time. This time Frericks arrived at the Ultimate within about six minutes of the phone call and recognized immediately there was a problem. “I pulled around the corner and they were already shutting down Division Street,” he said. “There was smoke billowing everywhere. My mind wasn’t prepared for that.

And the smoke was so profuse. I knew at that time that we were in a lot of trouble.”

M AY/ J U N E 2 0 2 2 // BusinessCentralMagazine.com

29

COVER STORY

30

BusinessCentral Magazine.com // M AY/ J U N E 2 0 2 2

“

EVERY DAY I HAVE PEOPLE WHO COME IN AND SAY, ‘I LOVED THE OLD BAR.’ AND I THINK ‘DAMN – I ALMOST FORGOT WHAT THAT OLD BAR LOOKED LIKE.

have our surround sound on and people would come in and want to play the juke box or play pool. So we started removing all that stuff.”

It was at this point that Frericks started dreaming about what his bar could be and how he might do things differently. “In this industry, we all buy old buildings,” he said. “That’s just what we do. And then we try to make it into the coolest thing we — TOM FRERICKS can, but with that said, we’re always limited with what we can create, how far we can go, the diversity of audience The Past we can attract because the buildings are old.”

Frericks was 24 years old when he purchased the Frericks was always trying to figure out how Briar Lounge in 1986. He worked his way through he could do something better, spin something a college at the Trader & Trapper, a college bar in little differently, make the bar a little more unique Waite Park. “I was mesmerized by the industry,” than what it was. He started attending the Nighthe said. “There was just something about it that club & Bar Show in Las Vegas, and looking for new captivated me and that I really enjoyed.” He start- ideas online. He spent hours in his office planning ed looking for his own place and learned that a the next new thing to attract patrons. gentleman who owned a piece of real estate in “In this industry, when you’re the little guy, it’s Waite Park where the Briar Lounge was located all built on self-promotion. You have to promote was having a falling out with his lessee. “I was able day in and day out. ‘Why come to me?’ Because to slide in, and bought the inventory for $20,000 it’s Bingo on Tuesday and meat raffle on Friday that I borrowed from my parents.” nights. It’s a little music gig on your deck and a The building was already older, but it had a pay per view,” Frericks. “Not only do you have to nice structure on the outside and Frericks fig- keep coming up with ideas that aren’t happening ured he could do some remodeling on the inside everywhere else, but the ideas have to be finanonce he started to make some money. “I thought, cially successful. You can’t afford to lose money the harder I work the more revenue I can create, on them.” And of course, you had to be able to do which means I can start to do some interior cos- these things within the constraints of your existmetic changes.” Frericks knew exactly what he ing, old building. wanted to do – he wanted to create a sports bar.

“I never got confused with what I wanted,” The Present Frericks said. “In our industry we try to be some- The night of the fire, as Frericks talked with his thing to everyone. I stayed loyal to the sports bar children, he realized he still had plenty of passion concept and that was hard to do. We’d have game left to create a new sports bar. “I was 58 years old. day on a Sunday with Viking’s football and we’d Too young to pull the plug and way too old to

“

Still, he held onto the hope that maybe it was more smoke than fire. That end of the building was where the kitchen was located. COVID restrictions were in place and the bar was shut down. “I thought, we can get the bar cleaned up and we’ll be fine.” But that wasn’t what happened. “It burned all the way to the ground in about five hours,” Frericks said, still choked up by the memory.

That night he talked with his children about the bar, the fire and his future. He had already made up his mind. He would rebuild.

PERSONAL PROFILE

Tom Frericks, 59

Owner, Ultimate Sports Bar & Grill Hometown: St. Cloud Education: Graduated from St. Cloud Apollo High School; associate of arts degree from Fergus Falls Community College; bachelor’s degree in business from St. Cloud State University Work History: Worked his way through college at the Trader and Trapper bar in Waite Park; served as head coach of the Waite Park Silver Stars Legion Baseball program; owner of Ultimate Bar & Grill in Waite Park Family: Three children: TJ, 27; Katie, 26; Alexis, 16 Hobbies: Baseball.

“That’s always been my No. 1 passion.” Season ticket holder for all four of Minnesota’s professional sports teams; biking; walking; gardening; enjoying his three convertibles

ADVICE TO A WOULD-BE ENTREPRENEUR:

Trust in your beliefs and what you want to create.

Stand firm on what you want your business to be.

FUN FACT:

THE ULTIMATE HAS AN INDOOR AXE THROWING PIT. ONLY 2 PERCENT OF AXE THROWING VENUES IN THE COUNTRY ARE IN A BAR AND RESTAURANT ENVIRONMENT. M AY/ J U N E 2 0 2 2 // BusinessCentralMagazine.com

31

COVER STORY

SPEAKER BOXES The Ultimate in entertainment.

T

wenty years ago Tom Frericks, owner of Ultimate Sports Bar and Grill, went to a trade show. There he discovered tabletop speaker boxes that could be used by clientele at his restaurant to listen to a particular game at their table, even though it might be playing on a television set several yards away. “They’re unique to us,” Frericks said. “I don’t know why no one else uses them.”

Though they’re a little bulky, they eliminate the need to have your phone charged, to download an app, and to connect the app to the correct television. “And 20 years ago the phone concept was just getting started, so we were really ahead of the curve,” he said.

Over the years Frericks developed a good relationship with the company that built the speakers. Then COVID hit and the company closed. “My heart absolutely stopped when he told me,” Frericks said.

“It’s something that makes us unique, it separates us from other sports bars. It’s one thing to watch a game and it’s another to sit here and watch and listen to it.”

That long standing relationship paid off. The business owner did one last project for Frericks. “He built about 40 new speakers out of his garage for me.”

32

BusinessCentral Magazine.com // M AY/ J U N E 2 0 2 2

work for anyone else,” he said. “I kept telling myself, this is what you know, and as much as you’re burnt out on certain aspects of it, this is your comfort zone.”

He kept going back to the idea that for 35 years he had complained about everything he didn’t have, wouldn’t have, and couldn’t get his building to become. “I knew I’d regret this for the rest of my life if I didn’t rebuild, because now I could go from the ground up,” Frericks said. “I got to build it new with my vision. In this industry, that’s unheard of.”

It turned out that the original structure, built in the 1970s, had precast concrete floors. That meant that the flames did not get underneath the main floor, leaving the existing foundation intact. That was good news for Frericks. Now he could focus on recreating a bar that was “really, really, really different than anyone else,” he said.

He briefly considered putting in a strip mall with the bar as an anchor, but was talked out of it by a friend. “My only real hesitation with building a bar is that you’re limiting what you can sell it for down the road. A bar is a bar. But I decided that because of the uniqueness of it, that wouldn’t be a problem.”

The building was still landlocked, Frericks said, “which held us hostage. But we talked to the City [of Waite Park] and they were very receptive to try and get me moving on a rebuild.” The

City gave him a variance so he could build on the existing foundation and provided the necessary setbacks. They also negotiated vacating an alley, allowing him to increase the size of the building.

“I started designing a place that would blow this area away,” he said. “I had land to work with, a city that was cooperative, and 35 years of dreaming that I was able to turn into reality. I know it sounds arrogant, but I knew I could create something that this area had never seen.”

The new building stayed grounded in Frericks’ vision of a sports bar. But aside from the sports vibe and plenty of television sets, the two buildings have little in common. The new Ultimate is almost twice the size of the old one. “I used to think that bigger wasn’t better. Now I think it is,” Frericks said. “Bigger has turned out to be unique for me because we have this indoor-outdoor theme that means we don’t really have competitors anymore.”

Remember the hours spent in the office trying to develop a new promotional idea? A new creative activity? Those are gone. “Coming up with something that you have, and only you have, and that you might be the only one able to have it … that’s virtually impossible in this industry,” Frericks said. “And the fire gave me that opportunity.”

It’s not just the building that’s bigger. The old Ultimate had 23 employees, none of whom were full time. Today Frericks employs 90 people

“

THAT’S WHAT’S FUN ON MY END. IN THE LATTER PART OF YOUR LIFE YOU GET TO LIVE THE DREAM. I COULD NEVER HAVE IMAGINED THAT.

during the really touch on what Frerwinter and icks likes best about the an estimated new bar. “This goes back 115 during the to the fact that we all buy summer, includold things in this industry. ing 10 full time.

I didn’t know that in a bar His payroll has gone you could have a thermofrom $200,000 to $1.6 stat that you could set at 72 million and his revenue degrees and the temperature projections were so vastly would stay at 72 degrees! You underestimated as to be laughdon’t know that in the bar inable. “We were a $1.2 million dustry. The building is old, it business pre fire,” Frericks said. has cracks, you can feel breez“During the design and develes in the winter – in the build— TOM FRERICKS opment phase we had to projing – it doesn’t have great ect our estimated revenue and insulation, the equipment on I was confident we could double what we had been your roof is old. I’ve fallen in love with the newness doing, but people laughed at me. ‘A new building and efficiency of what I have now.” in this industry will not allow you to double your He’s also enjoying the new clientele and finds revenue.’ Well, we’re going to be closer to $6 mil- he’s meeting new people every day. But they have lion when this calendar year ends.” lost some of their regulars. “I always knew the Best of all, he’s created a unique indoor-out- four to six guys at the bar,” he said. “Among other door environment that can be used year-round. changes, they were used to being able to pull in The deck, at 166 square feet, has three walled sides and always find a parking spot. Now if they show and one side that is protected by a heavy, floor to up at the wrong time, they have to walk two or ceiling tarp that keeps out the winter wind while three blocks like everyone else.” only letting a little snow seep through. “We’re And speaking of parking, don’t blame Frericks. sitting here in February in the heart of winter in “The City designed the parking lot,” he said. “I what is essentially an outdoor environment,” he asked them to do that when they agreed to vacate said. As soon as there’s a nice day in April the tarp the alley. They ended up creating green space is easily pushed back to enjoy the spring weather. and eliminated nine spaces. But it was the City’s Once warm weather arrives for good, the tarp is design and the City’s choice.” removed until fall.

Starting from the ground up after 35 years in Frericks also added an axe throwing pit, an business has reminded Frericks how much he unusual activity to combine with a bar. “There’s loves the bar and restaurant industry. “I talked only one insurance company in the country that to a guy the other day for about two hours about will insure it,” he said. “It’s next to the game room what a franchise concept would look like,” he said. so it’s easy to switch out if it loses popularity. “Who knows if that will go anywhere, but I love But that’s what’s so great about this. Today we’re that I get to stare straight ahead and control my sitting at a fire-pit table. Next time you’re here own destiny. Failure is nothing more than a bad you might try the axe pit. The next time you’re decision, and I don’t have to accept failure and I here for a game and we have the tabletop speaker don’t have to accept ‘no.’ I have no one to blame boxes for you. There’s so much interaction going when it doesn’t work out and I love that.” on inside the environment that you don’t get bored with it.”

Gail Ivers is vice president of the St. Cloud Area That all sounds great from the customers’ Chamber of Commerce and editor of Business perspective, but as the business owner it doesn’t Central Magazine.

BUSINESS PROFILE

Ultimate Sports Bar & Grill 1101 Division Street Waite Park, MN 56387 (320) 251-5580 ultimatesportsbargrill.com Ownership: Tom Frericks Business Description: Sports bar and full-service restaurant St. Cloud based employees: Part time: 90 Seasonally: 115 Full time: 10

–––––––––

TIMELINE

August 1, 1986

Tom Frericks purchases the Briar Lounge in Waite Park, renaming it Ultimate Sports Bar

1988

Frericks remodels and expands the bar to 4,400 square feet

2012

Frericks adds a 2,000 square foot deck to the existing building

August 6, 2020

The Ultimate Sports Bar & Grill burns to the ground; Frericks decides to rebuild

May 1, 2021

The new Ultimate Sports Bar & Grill opens; it is now 7,800 square feet, including a 3,800 square foot, multi-season deck.

May 2022

Frericks is selected as the 2022 St. Cloud Area Small Business Owner of the Year

M AY/ J U N E 2 0 2 2 // BusinessCentralMagazine.com

33

“

Innovate More Do these innovative St. Cloud leaders have advice for those who have yet to innovate?

They sure do.

Think about work when you are not at work. Great ideas can emerge while you are in the shower or on vacation.

Continually seek creative solutions to your customers’ needs in an ever-changing environment.

F E AT U R E

Breaking the Rules If you don’t have an innovation strategy, it’s time to get one.

oogle “innovation.” You’ll not only get a definition and pronunciation, you’ll get a very short, but very important business lesson: “Innovation is crucial to the continuing success of any organization.” Leaders of successful organizations in the St. Cloud area will tell you the same.

“If you’re not thinking about innovation, you probably should be thinking about selling,” said Brad Goskowicz, Microbiologics chief executive

34

BusinessCentral Magazine.com // M AY/ J U N E 2 0 2 2

Be cognizant of the fact that less than 1 percent of companies have been in business for 100 years; about 2 percent have made it for 50. Those that survive and thrive, innovate.

Don’t fear the unknown.

By Jeanine Nistler

G

Shoot for introducing new products or services every two or three years. And drop off a few old ones at the same time.

officer. “If you’re not reinventing everything you do, somebody else out there is. The world changes, and the risk of not being innovative is severe. That doesn’t mean you have to come up with the next iPhone,” he said. Innovation “can be a big thing, but it often comes in a lot of little ways.”

Perhaps you improve product packaging. Maybe you dip your toe into a new market – or launch a partnership with a related business. Innovation could even be in the way you attract and retain talent.

If a new concept seems promising, don’t be deterred by the effort required to implement.

Tap into the drive, ambition and initiative that got you into leadership.

Embrace the spirit of competition; strive to be better than the rest.

Consider the potential personal benefits. Great risk can lead to great rewards.

Innovate in a crisis; refine when the crisis ends. The pandemic forced most businesses to punt.

If your project fails, learn from that, and move on – to another innovation.

It’s not just a school.

No matter the depth and breadth of innovation, the responsibility to innovate does not rest at the top of an organization. In fact, it should not rest there, according to local business leaders and innovation guru Jeffrey Baumgartner.

“Management’s main task is to create within the organization a culture of innovation which will empower workers to think creatively, collaborate on ideas, and contribute their ideas to the company,” Baumgartner wrote.

Among management’s responsibilities, he said: ensure an environment of trust and provide resources.

At Stearns History Museum, Executive Director Carie Essig and the staff innovate by engaging not just with each other, but with local individuals, organizations, and businesses. “We are constantly looking at opportunities in the community,” Essig said. The museum team plans and budgets for each year’s offerings and builds in “white space for creativity,” she said. “I always tell staff that they already know the answer when they come forward with something they want to do. The answer will be ‘yes’ if there’s money for it and they’re working with community partners.”

Goskowicz and Simplicity Health owner Julie Anderson, M.D., also encourage staff to be innovative – and noted that having engaged employees is essential for creativity to flourish.

Goskowicz was quoted about the importance of staff ideas in the January/February 2021 issue of Business Central. “If they wait for me to come up with all the cool, innovative ideas, we’re in trouble,” he said.

“We try to empower every one of our employees to come up with better and more efficient ways to practice,” Anderson said. Cross-training all staff can lead team members to propose fresh approaches to jobs other than those they usually perform, “and they enjoy not being pigeonholed into one thing day after day.” Another benefit of

It’s a place where students gather to learn, collaborate, and lead; be creative and innovative; and take the next step toward adulthood.

At W. Gohman, we have been creating environments where people work, play, and learn for more than 70 years. From renovation and historic rehabs to large and technically complex projects, our mission is the same: to create beautiful, functional gathering places that bring the community together. Because this isn’t just a school.

It’s our future.

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35

F E AT U R E

empowering individual team members? “The employees feel the clinic is theirs as much as mine. It’s all of ours.”

Goskowicz noted that leaders must be comfortable with employees – and the organization as a whole – making (and, of course, learning from) mistakes as they innovate. Baumgartner agrees. He has written at length about learning from failure. He lists

several questions to ask when an innovation bombs. Here’s a snapshot: What went right? It’s reassuring to know that not everything went wrong. And some of those things that went right are probably worth applying in future projects.

What went wrong? Be specific.

Why did it go wrong? Ask yourself, your team and people from the outside who can give fresh perspectives.

Are you making similar mistakes repeatedly? Stop doing that.

What assumptions did you make that proved wrong? And why?

What can be salvaged?

Baumgartner has written in an approachable, conversational style on nearly every aspect of innovation. But he is far from the only one to tackle the topic. Some experts have homed in on various models of business innovation. Take, for example, this summary from a MasterClass article:

Design

ARCHITECTURAL

SINCE 1874

AND CONSTRUCTION SERVICES

In revenue-model innovation, business owners may choose to create new products, stop selling certain products, update their supply chain, sell to new customers, or change the prices of their offerings. _________ Business-model innovation involves creating a strategic alliance with another business, accepting venture capital financing, or switching from selling at a physical location to selling only online. _________ When organizations choose industry-model innovation, they may opt to market their product to an entirely different industry or even to create a new industry to align with their mission and products.

Gary Pisano is a Harvard business administration professor and author of Creative Construction: The DNA of Sustained Innovation. He has written about four categories of innovation, summarized here:

I am happiest when I am helping others succeed.

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Contact Melinda Vonderahe Associate Publisher, 320.656.3808 MelindaV@BusinessCentralMagazine.com

What went right? It’s reassuring to know that not everything went wrong. And some of those things that went right are probably worth applying in future projects.

1 Routine innovation builds on a company’s

existing technological competencies and fits with its existing business model. Examples include new versions of Microsoft Windows and the Apple iPhone.

2 Disruptive innovation requires a new

business model but not necessarily a technological breakthrough. For that reason, it also challenges, or disrupts, the business models of other companies.

3 Radical innovation is the opposite of

disruptive innovation. The challenge here is purely technological. The emergence of

genetic engineering and biotechnology in the 1970s and 1980s as an approach to drug discovery is an example.

4 Architectural innovation combines

technological and business model disruptions. An example is digital photography, which required Kodak and Polaroid to make massive shifts.

Pisano notes that an organization’s innovation strategy must fit its overall business strategy; and he emphasizes the importance of allocating sufficient resources for both.

While Goskowicz, Anderson and Essig have used components of some of these

approaches, none have adhered strictly to any one of them. As the only nationally accredited county museum in Minnesota, Stearns History Museum works “to be in step with what state-of-the-art institutions are doing,” Essig said. That means keeping an eye on and learning from innovations at the Smithsonian, as well as the Minneapolis Institute of Art and the Science Museum of Minnesota.

Anderson, on the other hand, innovated by stepping away from the predominant corporate medical model. When she launched Simplicity Health in 2018, the entire enterprise was an innovation. The clinic, she said, intentionally has a small, welcoming, hometown feel. “It’s kind of like the doctor’s office of 50 years ago.”

Jeanine Nistler is a St. Cloud-based writer who has worked in health care, higher education, state government and as a daily newspaper reporter and editor.

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37

TECHNOLOGY & INNOVATION DIRECTORY 2022

Minnesota has proved itself as a leader in a variety of high-tech industries such as computer and electronic manufacturing and renewable energy solutions, to name a few. Minnesota ranks 6th nationwide for Technology and Science Workforce (Milken Institute, 2020) and 4th for Technology and Innovation (CNBC, 2021).

Take a look at a few of the companies in Central Minnesota that promote the industry.

Source: mn.gov/deed/joinusmn/key-industries/technology-innovation/

COMFORTED.

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SPECIAL FOCUS

f o e s n e S A e c a l P

Community leadership is working to turn Sauk Rapids into “Everybody’s Hometown” – and succeeding.

By Rene Kaluza

Ask Sauk Rapids’ community leaders about the city’s top assets, and they tick off a list.

A modern downtown with a nod to history A new elementary school with room to grow School-city-county collaborations Employers populating empty industrial park buildi ngs A community vision

Ask where they see future development, and again, it’s tick, tick, tick.

A downtown with new and expanding food and retail destinations Mixed-use neighborhoods that create a sense of place Parks and recreation areas with outdoor opportuniti es

Then ask how they will get there.

They have a plan.

Build a sense of hometown and a sense of place Collaborate – with lots and lots of folks Be creative in a uniquely focused comprehensive plan

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Photos courtesy of City of Sauk Rapids; Copper Pony

P

andemic-laced years may have slowed the push toward that vision, but anyone who has passed the lighted trees near the bridge, driven through the Pleasantview School neighborhood, or spent even a few minutes at last summer’s Rock the Riverside Nights, gets a solid look at Sauk Rapids’ future.

If they head east on Golden Spike Road toward Sauk Rapids High School, they may even see the future’s future. Sauk Rapids Mayor Kurt Hunstiger is eager to see that bigger vision realized.

He speaks excitedly about working with the school district to expand recreation and athletic facilities at Mayhew Creek Park, and he and other city leaders talk fervently of collaborating

with businesses, industries and organizations to make the best use of retail, commercial, and industrial park space.

“I hope to see Sauk Rapids become even more of a shopping and dining destination with added stores and restaurants that complement all of the wonderful things that we already have to offer in Sauk Rapids,” said Hunstiger, who was first elected mayor in 2017 and has served in several civic capacities. “I hope to see people continue to move to Sauk Rapids for the close-knit community feel, the world-class education provided by Sauk Rapids-Rice School District, and the employment opportunities available in the area.”

A Sense of Place Community Development Director Todd Schultz, City Administrator Ross Olson, school Superintendent Bradley Bergstrom as well as business owners and leaders are already working to make that happen.

To a person, they mention the city’s newest slogan, “Everybody’s Hometown.”

“We’re trying to create a sense of place that people can feel when they visit here and when they live here,” Olson said. “We have the downtown that is semi-historic, and we are trying to protect that character of a real home

Building something greater than ourselves.

Copper Pony

downtown. If you can partner with all the civic organizations and youth organizations and the school district and downtown businesses, it creates this reality where people can feel that not only do they live here, but work here and play here and want to visit here, and they all have that hometown feeling.”

Copper Pony co-owners Brandon Johnson and Joshua Hoffman recognized that effort and chose downtown Sauk Rapids for their expanded store

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SPECIAL FOCUS

because the city had the right mix of historic and modern. The move was transformational for Copper Pony, Johnson said, and prompted the business to move ahead with a bistro patio this year.

“I think they’re really starting to think about what is inviting and warm and what maybe creates a sense of charm when you drive into the city over the bridge with the backdrop of the hillside and church and steeple and the beautiful fresh buildings that are all there,” Johnson said.

Others cite the city’s development of Southside and Lions Park along the Mississippi as further evidence of successful sense-of-place development.

Thanks to a $460,000 grant, the Lions Park section will get

another boost this year with shoreline protection, a kayak and canoe launch, guardrails, lights, seating and picnic areas.

Kayakers who are up for a challenge on the water are drawn to that stretch of river rapids, which give the town its name. The city hopes to double down on that interest. “There are bazillions of parks on the Mississippi River in Minnesota, but there aren’t very many of them where you literally can walk right into the river like you can in Sauk Rapids,” Olson said.

Last year’s introduction of music in the park will be bigger and better this year. Weekly Riverside Nights at The Clearing’s amphitheater will grow to 14 Thursday concerts (June 2 -

Sept. 1). That means more local performers helping draw more people to Sauk Rapids.

Walter’s Wheelhouse, a cover band that includes Stearns County Attorney Janelle Kendall, was one of the 2021 performance groups. “What a great addition for Sauk Rapids and the entire Central Minnesota live-music community,” Kendall said. “The slope of the riverbank allows performers to really see the audience, and with the backdrop of the river, the scene creates a great energetic vibe.

YO U R D E S T I N AT I O N F O R

What’s Old can be New Again When the summer vacation bell rings at Pleasantview Elementary, demolition crews will arrive so when the back-to-school bell rings in the fall, a parking lot and an ADA-compliant playground can emerge next to a new school focused on tomorrow.

For students and staff, the school has classrooms with moveable walls, lots of natural light, a modern ScienceTechnology-Engineering-ArtsMath (STEAM) space, and a

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SAUK RAPIDS 27 N Benton Drive 320.230.2332

We Fix It!

Minnesota State Atlas of 1874 photo courtesy of Robinson-Stanton House.

Old house. New space. Big plans.

B

enton County Historical Society will open what has been known as the Robinson-Stanton House as its new offices and research center later this year. The house, built by Leonard Robinson at 202 Second St. S, is the only one constructed of Sauk Rapids granite. It has many credits: • It is one of only a handful of buildings that withstood an 1886 tornado that dramatically changed the face and future of Sauk Rapids.

• It is the oldest documented house in Sauk Rapids.

• It has been on the National Registry of Historic Places since 1982.

Now in the midst of remodeling and renovation, when the home reopens as the historical society’s base and museum, it will reflect its evolution from a family home to a board and care facility.

Plans call for exposing more of its original granite structure and eventual removal of a subsequent stucco exterior.

“Rehabilitating this historic house into a museum will allow the public to step into its long history,” said Katie Kangas of Pasque Architecture.

Kangas developed a plan for organizing the renovations.

“The granite is the primary link to the earliest history of the house.”

Owners have been Robinson, who built a riverside power plant and owned and operated significant area quarries; Judson Stanton, who operated a flourmill and became Benton County surveyor; and the Hommerding family that operated a board and care home.

After updating and renovations, the historical society operations will be on the main floor, which includes the original 1873 granite structure. The research facility will be in the 1990s addition, and the archives and records will be in the 1960s addition.

“We are amazingly grateful that the house will meet our organization’s needs, better facilitate programming, and offer a better historic environment and understanding of local history,” said Mary Ostby, executive director of the society. “It’s one of our most amazing artifacts.”

Learn more at BusinessCentralMagazine.com

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SPECIAL FOCUS

larger cafeteria. “We have significantly increased the capacity of that building,” Superintendent Bergstrom said.

The school will have the playground open to the community, and a gymnasium that can be a resource for community activities and events. “We know that our community is always looking for gym space, whether for fall or winter activities, volleyball, basketball, or wrestling,” Bergstrom said. “A tremendously large amount of

thought and purpose went into the building, so it’s really, really going to be a tremendous asset for our kids to learn in, and for the opportunities that we’ll be able to offer.”

Long-term assets.

A plan for Mayhew Creek Park, which sits alongside Sauk Rapids High School off Mayhew Creek Road, would bring together amenities the city would like to offer, the interests of community groups, and the school district. The city is seeking $10 million in

The Clearing at Southside and Lions Parks The Clearing now offers a rentable event center and building for smaller gatherings, an interactive water feature, and an outdoor amphitheater. There is also a river overlook, nearby walking trails, playgrounds and picnic tables.

A canoe and kayak launch are in the works.

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Riverside Terrace event center (above) offers a water view that’s great for corporate gatherings, wedding receptions and other events. On June 30 it will host the Sauk Rapids Chamber’s Rock the River Expo.

–––––––– A smaller building – the Lookout (right) – sits between the river and a water feature of gurgling floor fountains perfect for

children. It’s a space for smaller meetings, retreats, and birthday and family celebrations. At night, the fountains programmable LED lights create a light show.

–––––––– 1851 Square and its state-of-the-art sound system in amphitheaterstyle seating has become the Thursday night community gathering space for Rock the Riverside featuring a variety of local bands.

state bonding funds in 2022 to pair with a $10 million city commitment for a park that could result in baseball and softball fields, multi-use practice and playing fields, skating areas, and an ice arena and aquatic center. Young people and families looking for a place to call home expect to find opportunities for activities, city leaders said. And, young families will be crucial to the school district’s work to build back a three-year enrollment decline and budget deficits.

As it updates its Comprehensive Plan, the city plans to look at creative ways to create neighborhoods with a hometown feel. For example, it

could encourage neighborhoods with a high percentage of residential housing, some multifamily housing and possibly some neighborhood commercial. “I think it’s going to allow for greater creativity by developers to be able to come up with some kind of cool, unique, out-of-the-box ideas on how to develop areas and properties and neighborhoods,” Schultz said.

Those same kinds of partnerships are encouraging growth in the city’s industrial areas. Hit by the exit of multiple large-scale employers in the last few years, Sauk Rapids has had to look to unique collaborations. G&J Awning

worked with the city to build its growing business in a new industrial space off Mayhew Lake Road. The city purchased the building, which sits adjacent to city hall, for a possible public works building, but will lease it to a new business until needed.

“It’s kind of a unique time within the manufacturing industry,” Schultz said. “There’s a lot of movement. Because of the cost of construction, when a building does become available, it’s quickly gobbled up due to market conditions.”

Rene Kaluza is a freelance editor and owner of WordsWork LLC.

Save the date On June 30, the Sauk Rapids Chamber of Commerce will sponsor one of the bands at Rock the Riverside and use the event center at the park for its Rock the River Expo. This block party-like event is designed to connect community members with about 20 Sauk Rapids businesses and organizations.

Sauk Rapids Rock the River Expo June 30, 4-7:30 p.m.

The Clearing, 195 River Ave. S Band: The M8Ds Sponsor: Sauk Rapids Chamber of Commerce

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PROFIT

BUSINESSSPOTLIGHT

E X P R ESS E M P LOYM E N T P RO F ESS I O N A LS

TIMELINE

I Know Staffing

1984

When Jill Magelssen started in the staffing industry, she thought meeting with business owners sounded like scary stuff.

Instead, she found it was a perfect fit.

By Gail Ivers

PERSONAL PROFILE

Jill Magelssen, 64 Hometown: Chicago Heights, Illinois Education: Received a degree in industrial organizational psychology from Illinois State University, Bloomington, IL Family: Husband, Dave Magelssen, married 30 years; Children: Mark, 29; Jessica, 28.

Hobbies: Travel for leisure, music, crafting Fun Fact: Magelssen and her husband own three golden retrievers

Business Central: Why did you leave Manpower?

Magelssen: The travel was too much.

We had two small children, my husband had to travel some for his work, I was traveling all the time, it felt like we were doing shift changes with the kids. And Manpower was such a big corporate entity. When I couldn’t provide for the staff the way I thought we should, I decided I didn’t want to stay. That’s when I realized culture was important. I just didn’t know there was a word for it.

BC: How did you decide to buy a franchise?

Magelssen: I was exploring getting back into the staff industry and my husband, who owned his own business, said I should look at going on my own. I liked the idea of having the structure

AT A G L A N C E

Express Employment Professionals

46

and resources of a company behind me. I knew Express as a good company, a good competitor from my Manpower days. Express talked to me about selling franchises for them, but they used the word “travel” and that was a no go. Instead we were able to negotiate a resale with the owner of the Express office in St. Cloud.

BC: You and Dave?

Magelssen: Dave knew how to start and run a business. I knew staffing; so we’re partners.

BC: The recession must have been hard.

Magelssen: (Laughs) Every call I got was “We don’t need those 14 temps anymore.” We had four or five employees. We went down to just a part-time person and me. I wrote resumes for people and did career coaching to create a small income stream. And I stayed close to every client I had. I don’t think anyone knew for sure that they’d survive. What I did must have worked because when the economy came back our office tripled.

Jill Magelssen moves to St. Cloud and joins Manpower

1986–1989 Magelssen is promoted to office supervisor, manager, and then district manager

2008 Express moves from east St. Cloud to its current location on St. Germain Street

2010 Express moves to a larger space in its current building

2000

2017

Magelssen is promoted to area manager, which includes five offices in four states, and three onsite staffing locations

2018

2003 Magelssen leaves Manpower and contracts with a local media company to hire 120 traveling sales representatives

2005 Magelssen and her husband negotiate a resale with the owner of the local Express Employment Professionals franchise

Magelssen works with the corporate office to bring the Express Clydesdales to St. Cloud

Magelssen’s office wins the “Brand it Blue” philanthropy award from Express. The recognition comes with a $10,000 prize to be donated to local charities.

Magelssen presents the money to Pathways for Youth, Anna Marie’s Alliance, and the Salvation Army.

1410 W St. Germain Street, Ste 101 St. Cloud, MN 56301-6290 (320) 251-1038 expresspros.com/stcloudmn

Business Description: Locally owned employment staffing agency including project staffing, evaluation hire, direct hire, outplacement services for administrative, professional, and commercial positions; also human resources consulting.

Chamber member since 1987

Owners: Jill and Dave Magelssen

Number of Employees: 5

Opened: The Magelssen’s purchased the local franchise in 2005; it originally opened in 1987.

BusinessCentral Magazine.com // M AY/ J U N E 2 0 2 2

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