Prairie Business April 2016

Educating Engineers

Universities are expanding curriculums to meet employers’ needs pg. 30

Community Profile

Bismarck-Mandan thrives, despite oil downturn

pg. 36

Highway to Development

Private, public sectors collaborate on SD interstate project

pg. 42

We think it’s A+ to be a part of a great community that has come together to make life even better with a new hands-on, technology-rich, cross-curricular high school which is bringing a world-class education home for generations of Watford City families.

LIFE IS GREAT

| MCKENZIE COUNTY SCHOOL DISTRICT

WATFORD CITY HIGH

Rachel Smith, a mechanical engineering undergraduate student at North Dakota State University, works on a progammable robot she helped design in the robotics lab at NDSU’s College of Engineering. IMAGE: DAN KOECK/NORTH DAKOTA STATE UNIVERSITY

6 Editors Note

BY LISA GIBSON A Robust Roundtable

8 Business Advice BY

and Reward

MATTHEW D. MOHR Risk

10 Evaluation BY

ERIC NEWELL

Business Scorecard: The Key to Rapid Action

12 Leadership BY RANDY

SCHWARTZ

14 Prairie News

Mehdi Salimi Jazi is a post-doctoral mechanical engineering student at North Dakota State University’s College of Engineering. NDSU is among many schools changing education programs to produce more well-rounded engineers. IMAGE: DAN KOECK/NORTH DAKOTA STATE UNIVERSITY

LISA GIBSON Editor 701.787.6753

lgibson@prairiebusinessmagazine.com

A Robust Roundtable

On a chilly morning back in February, I sat in a spacious conference room staring out a wall of windows at the landscape south of Bismarck, N.D. I was in the Harold Schafer Leadership Center on the University of Mary campus on important business: Prairie Business was hosting its first 2016 Community Profile roundtable discussion. It would highlight the unique business environment Bismarck and Mandan have to offer, outline the cities’ strengths, areas of growth and even some struggles. I had high hopes for a robust, informative and active conversation. As I left more than two hours later, I couldn’t have been more pleased.

The 11 guests who sat in that room with Prairie Business staff were educated, informed and passionate about their respective sectors in Bismarck-Mandan and the impact they had on the communities as a whole. Bismarck-Mandan boasts four main economic drivers — higher education, government, health care and energy — and we had the key players sitting right in that room with us. I walked away from that discussion elated about the things I learned and the things our guests learned from each other. It was a perfect kickoff to the reintroduction of Community Profiles in 2016, to be followed by Fargo-West Fargo-Moorhead, Grand Forks-East Grand Forks and Minot later this year. Read more about Bismarck-Mandan starting on page 36.

This issue also explores how engineering programs at colleges and universities are growing and expanding, spurred by increased enrollment. The fact that engineers are highly recruited today prompts interest from young people in joining the sector, with high potential for jobs post-graduation. Schools are offering more courses, degrees and certificates, from minors to graduate programs. Find out what the deans of a few of North Dakota’s most prominent engineering schools say about their course offerings, the growth in the sector and the exciting prospects for their graduates. Find it on page 30.

This month’s Business Insider profiles a well-known business entrepreneur, politician, appointed federal government employee and, now, university president. Ed Schafer is serving as the University of North Dakota’s interim president until June 30, when new president Mark Kennedy takes the helm. “Jack of All Trades” is too cliché a headline, so we didn’t use it, but it’s fitting. Learn about Schafer’s many successes and why he’s happy to be in his temporary position, problems he sees with the higher education norm and what he thinks needs to change. The story starts on page 28.

Transportation is another theme in this April issue of Prairie Business, so we profile an enormous project in the works near Sioux Falls, S.D. The public-private partnership involves many entities that hope to construct an Interstate 29 interchange near Sioux Falls. The project’s supporters say the economic development benefits are reason enough to install the interchange. See who’s involved, who is bringing the cash and what further development they hope to see, on page 42.

I would also like to take this opportunity to announce that Prairie Business has redesigned its website and it’s quite impressive, if I may say so. If you haven’t yet, please take the time to peruse: www.prairiebusinessmagazine.com.

With that, I am pleased to present the April issue of Prairie Business. PB

KORRIE WENZEL, Publisher

LISA GIBSON, Editor

KAYLA PRASEK, Staff Writer

BETH BOHLMAN, Circulation Manager

KRIS WOLFF, Layout Design, Ad Design

Account Executives:

JOHN FETSCH

701.212.1026 jfetsch@prairiebusinessmagazine.com

NICHOLE ERTMAN

800. 477.6572 ext. 1162 nertman@prairiebusinessmagazine.com

Prairie Business magazine is published monthly by the Grand Forks Herald and Forum Communications Company with offices at 375 2nd Avenue North, Grand Forks, ND 58203. Qualifying subscriptions are available free of charge. Back issue quantities are limited and subject to availability ($2/copy prepaid). The opinions of writers featured in Prairie Business are their own. Unsolicited manuscripts, photographs, artwork are encouraged but will not be returned without a self-addressed, stamped envelope.

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Address corrections

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Online www.prairiebusinessmagazine.com

Risk and Reward

BY MATTHEW D. MOHR

Almost every business owner realizes his or her investment is at risk every day. An unexpected turn of the economy, a product recall, competitive challenges, employee theft or other unfortunate events can cause a business to crash, resulting in losses or a total loss to the business owner. Understanding this risk is part of commerce and can lead to sleepless nights and worry, but business risk differs from a gamble.

Business risk involves assessing opportunities, placing faith in people, products and the marketplace, and making personal efforts to positively affect the outcome. Naturally, the desired outcome is good profits, which result in a positive return on investment and cash returns. For example, an entrepreneur is offered a nice piece of equipment to improve production for $10,000. The person has to decide if it fits the business and will generate a positive cash flow after the $10,000 expenditure. The decision to invest in the equipment might also come with the realization that the owner needs to take time to learn how to operate it.

Gambling, on the other hand, involves assessing a situation, placing a bet while hoping (or praying) that luck will lead to a winning choice, while having little to no ability to influence the outcome.

One of the great thrills of owning a business is taking calculated risks and working to create a positive outcome. Of course, with the thrill of success, failure is always possible. Most successful entrepreneurs understand well the principle of risk, even though each person has a much different level of tolerance for risk and a much different willingness to put in the work and hours to get a desirable outcome.

A business owner takes risk to earn a profit — nothing like a gambler. Any business owner who constantly gambles his fortune is more likely to end up broke than successful. PB

Matthew D. Mohr CEO, Dacotah Paper Co. Fargo, N.D. mmohr@dacotahpaper.com

Business Scorecard: The Key to Rapid Action

BY ERIC NEWELL

Iwill admit, I am late to the party on the importance of scorecards in running a business.

At my previous employer, we had scorecards but I never seemed to care about them and didn’t understand why everyone else cared so much about them. Looking back, the reason it didn’t matter to me was I didn’t think I could do anything about the numbers on the fancy scorecard. It wasn’t until a few weeks after we implemented and refined our own company scorecard that I realized how powerful it can be.

A scorecard is an informative and actionable weekly view of key performance indicators. It’s critical that it’s done weekly so you can take action quickly. The scorecard doesn’t have to be a five-page blur of green, yellow and red icons. It needs to hit on the important numbers that can prompt investigation into problems, celebration of successes or a change of course in a business.

We are a software sales and consulting organization, so your scorecard will look different, but the same core ideas can apply. Our scorecard contains the following:

• The number of team members and billable team members.

• The number of projected billable hours for the week and the actual hours billed.

• The amount of projected revenue, actual revenue, estimated margin and the average bill rate for the week.

• Cash and accounts receivable balances.

• Software sales and annual subscription sales.

• Pipeline and number of new opportunities uncovered this week.

On a recent week, I noticed our actual billed hours were under our projected billed hours by a fair amount. I quickly dug in and figured out someone didn’t get his timecard entered for the week (fortunately, that doesn’t happen very often). We also saw that our accounts receivable balance was high, so we quickly reached out to two customers who have been slow to pay. In another instance, I noticed our actual revenue was low for the week. We quickly figured out we had not yet invoiced a key customer. If I didn’t have the scorecard, I would not have known about any of these issues.

In more positive examples, I’ve been able to watch our weekly estimated margin go up as we have more customer work, which is a great sign for company profitability. Our accounts receivable balance has gone down since we implemented better practices around reacting to customers who are slow to pay. Our pipeline number has continued to go up as we’ve done a better job of getting our name out there and getting conversations started with customers. All of these are healthy signs that would be hard to determine quickly if we didn’t review it every week.

The scorecard is a key agenda item on our weekly leadership meeting. We never miss a week of reviewing our scorecard. If we did, we’d miss our chance to take action quickly to continue to drive the business forward. PB

Eric Newell President, Stoneridge Software Barnesville, Minn. 218.422.7858

DCN’s North Dakota Fiber Optic Network

KLJ has operations in 23 different locations employing over 750 professionals. With KLJ’s significant growth, reliable network connectivity is a priority. DCN consistently provides outstanding services to meet KLJ’s growing needs as a corporation. DCN’s services give KLJ the capability to directly collaborate between offices via their Ethernet connections utilizing DCN’s fiber network.

“DCN has proven to be a trusted advisor by providing quality service and expertise for our corporate technology needs for more than 10 years. The ability to work on our systems remotely has allowed efficient network management of KLJ’s 23 office locations, allowing us to grow and maintain a collaborative working environment throughout our corporation and respond quickly to client needs through stable internet connections and high upload speed.”

“The quality service DCN provides has fostered a unique partnership between DCN and KLJ.”

Kenneth Redinger, Information Technology Director, KLJ Dakota Carrier Network Customer

Building Problem Solvers

BY RANDY SCHWARTZ

Solving problems is an important part of a leader’s job. It likely represents a significant time and effort. It might also mean an abundance of meetings.

The answers to problems many people might struggle with are generally more apparent to an experienced, knowledgeable and decisive leader. People naturally turn to them for solutions. Others might turn to them simply because they are in charge and are expected to have the answers. Being able to provide solutions to problems in these situations has distinct advantages, both to the person who needs answers and to the leader.

A great leader begins finding solutions to problems by shifting from a problem-solving mindset to a coaching mindset. Becoming a stronger coach helps focus the leader on the longterm development of others rather than the shortterm fix of solving the problem. Problems must still be solved, but in the process, they are harnessed purposely to grow problem-solving capacity in others.

In many organizations, a major job of a leader is to grow

new leaders. This is a tough transition for most when moving to leadership. Now, our job is no longer to solve problems ourselves — it is to grow the ability of people around us to solve problems.

Imagine you’ve hired a fitness coach to help you build muscle tone. When you arrive at the gym for your first workout, the fitness coach (who is obviously in good shape) announces that, because she is stronger than you, she will lift the weights and do the workout on your behalf, saving you time and effort and getting more weight lifted in the bargain.

This arrangement doesn’t make sense, of course, but many leaders operate like that fitness coach. When someone arrives with a problem, the leader, who has more knowledge and experience, offers to solve the problem. In the long term, taking away responsibility for the solution may undermine the development of the one who brought the problem. Instead of strengthening their “muscles,” they might become more dependent.

Moving mindset from one focused on problem solving to one focused on coaching others will serve as the foundation for the future growth of leadership capabilities and the development of others. Developing greater problem-solving capabilities is central to companies that operate in “prime” — their most successful stage. PB

John Morrison & Beth Nodland Juniper LLC, Bismarck

Fargo, N.D.-based store receives national recognition

BY LISA GIBSON

Mode, a fashion retail store based in Fargo, N.D., has been named a Dream Big Blue Ribbon Small Business Award winner by the U.S. Chamber of Commerce. Founder and Chief Operating Officer Ciara Stockeland says the application process was rigorous, but worth the work.

“We’re really excited about winning,” she says. “It gives us the opportunity to talk about the contribution we make to the state.” Mode has locations in Fargo, Grand Forks and Bismarck in North Dakota, but also in Minnesota, South Dakota, Iowa, Kansas and South Carolina. Still, those outof-state stores have an impact on North Dakota. “As we keep adding stores, we add North Dakota jobs because our headquarters is here.” All inventory comes through the Fargo office, she adds.

The U.S. Chamber of Commerce announces 100 Blue Ribbon Award winners each year, selected from applications and judged in four areas: strategic planning, employee development, customer service and community involvement. Separate from Mode’s own application, the North Dakota Chamber of Commerce nominated the company, also, based on those merits, Stockeland says.

Mode sets itself apart from other applicants in many ways, she says. It’s femaleowned and runs multiple community-oriented programs, including one in which each store location chooses a woman in the community each month and donates two pairs of jeans to her. Stockeland says that woman can be someone who has survived cancer, or someone a Mode store manager sees struggling in the grocery store. “That’s something we do to let women know we care,” she says. “It connects the employees

Ciara Stockeland, chief operating officer of Mode in Fargo, N.D. IMAGE: MODE

at the store to the community outside their doors. (It lets people know) we’re more than just sales.”

The company also is involved in mentorship programs in the communities it calls home, training women to be leaders not just in the company, but in their lives and in future employment opportunities, Stockeland says.

“Small businesses across America today face more economic and regulatory hurdles than ever before, but each of these outstanding companies is rising to the challenge,” says U.S. Chamber President and CEO Thomas J. Donahue, in a statement. “These Blue Ribbon Award winners have worked hard, taken risks and achieved success, helping strengthen their communities and local economies.”

The winners also are eligible for the Community Excellence Award, which recognizes one business with notable success and is chosen based on votes from the businesses’ communities.

North Dakota has a lot to offer by way of business, Stockeland says, and the fact that Mode received this year’s Blue Ribbon Award is a testament to that.

Minnesota also had a few winners. They are: Carlson Capital Management of Northfield, Custom Alarm of Rochester, CWS Inc. of Rochester, Domaille Engineering of Rochester, Xylo Technologies Inc. of Rochester and Minnesota Ultra Paws of Baxter. PB

Lisa Gibson Editor, Prairie Business 701.787.6753 lgibson@prairiebusinessmagazine.com

ABOVE: Seth Arndorfer, CEO of Dakota Carrier Network

UPPER LEFT: Before construction, Dakota Carrier Network's data center in Bismarck, N.D., consisted of about 40,000 square feet of space.

LOWER LEFT:When completed, Dakota Carrier Network's Bismarck, N.D., data center will be about 70,000 square feet.

IMAGES: DAKOTA CARRIER NETWORK

Dakota Carrier Network announces data center expansion in Bismarck, N.D.

BY KAYLA PRASEK

Dakota Carrier Network, headquartered in Fargo, N.D., is expanding its Bismarck data center. The 30,000-squarefoot expansion project will provide 12 times the current server floor space available at the center and will increase the center’s total space to 72,000 square feet.

DCN’s data center provides spaces companies may rent to store their servers and related equipment. DCN provides higher levels of security and more reliability than if a company was to keep its server onsite, says CEO Seth Arndorfer. The Bismarck data center is full, which prompted the company’s decision to expand. “There is a need for customers to have a reliable facility to store their data, but for most of them, it’s hard to justify building their own facility.

“DCN has existed for 20 years and has focused on businesses in North Dakota,” Arndorfer says. “With the expansion, we expect national and global companies to come to DCN for a couple reasons. Because of the climate we’re in, our cooling costs are among the lowest in the country. Geographically, we’re located in the center of the country, so companies with customers on both coasts will see better user experience. We also have fiber optic connectivity to Chicago, Denver, Seattle and Minneapolis.”

The expansion project, which is expected to be completed by early 2017, was designed by TL Stroh of Fargo, while Capital City Construction, Electric Systems Inc. and H.A. Thompson & Sons, all

of Bismarck, are providing contracting services. DCN has budgeted $6 million for the project and will take advantage of sales tax exemptions for the purchase of equipment and software for the facility provided by a bill passed last year by the North Dakota Legislature.

The expanded facility will be built to withstand F4 tornado-force winds and will have fully redundant power and cooling systems. It will also feature private suites, which will each be leased exclusively to a single customer. State-of the-art security will be incorporated throughout the data center, including multiple levels of security, biometric fingerprint scanners, personalized combination locking cabinets and 24/7 monitoring with a closed caption TV video surveillance system.

DCN houses network infrastructure for many of North Dakota’s regional banks, all 54 critical care centers, all K-12 and higher education institutions, North Dakota National Guard, 911 dispatch centers, state radio, IT companies and commercial businesses.

“Every aspect of our lives has been virtualized but few people think about how it all happens,” Arndorfer says. “Behind all of the clouds, something has to be real. The DCN data center and fiber optic network make this all work for North Dakota citizens.” PB

Kayla Prasek Staff Writer, Prairie Business 701.780.1187

kprasek@prairiebusinessmagazine.com

KLJ road bypass recognized as project of the year

BY LISA GIBSON

Atraffic bypass designed by Bismarck, N.D.-based engineering firm KLJ has been named project of the year by the North Dakota Society of Professional Engineers Chapter

3. The Watford City (N.D.) Bypass improved traffic capacity by routing highways around the city and adding two driving lanes to reduce congestion and enhance pedestrian safety, according to KLJ.

“During our initial studies, it was determined that approximately 75 percent of the traffic that was traveling on the highways within Watford City was regional in nature, meaning that most of the traffic was just passing through without stopping,” says Travis Wieber, KLJ senior project manager. “With the bypasses in place, the region traffic was diverted around Watford City, relieving the substantial congestion within town.”

The project totaled $130.3 million in construction, right-of-way acquisition and engineering costs, Wieber says. The Watford City

Bypass also was named among the top 10 projects in the Transportation Awards competition at the National American Association of State Highway and Transportation Officials conference, he adds.

“Any time we can be involved in meaningful projects that benefit people’s quality of life, is an honor and privilege,” Wieber says. “Successful completion of a project of this magnitude requires dedication and communication. KLJ’s great partnership with the North Dakota Department of Transportation drove this project to be a success for Watford City and the region.

“It is an honor to be able to serve the community and humbling to win Project of the Year.” PB

Lisa Gibson Editor, Prairie Business 701.787.6753 lgibson@prairiebusinessmagazine.com

The bypass near Watford City, N.D., routes highways around the city. IMAGES: KLJ

M State expands health care offerings

BY KAYLA PRASEK

Minnesota State Community and Technical college will offer two new health care programs at its Moorhead campus, starting this fall. The two new programs are Cardiovascular Technology - Invasive, a two-year degree program, and Dialysis Technician, a one-semester certificate program.

Planning for both programs began after M State was approached by its industry partners about the need for expanded education opportunities in the area health care community, says Jennifer Jacobson, M State’s dean of health careers. “Dialysis tech is a new field around here, and their certification falls between a nurse’s aide and LPN. With the nursing shortage, nurses are being deployed elsewhere but we still need certified people to take care of dialysis patients.”

The program was requested in response to the growing number of people who require treatment in outpatient dialysis centers, which use specialized equipment to remove waste from the blood of patients with renal failure and chronic kidney disease, according to a press release from M State. Technicians at the centers work under the supervision of registered nurses.

The Dialysis Technician program will teach students how to take care of patients going through hemodialysis. After 18 months of employment in the field, those individuals must take and pass a national certification exam. The program expects a first-year enrollment of 15 students.

Cardiac care technology is rapidly advancing, and a need for more trained technologists has accompanied those advancements, Paul Burud, director of cardiovascular services at Sanford Health, says in a statement. Burud says he expects that need to increase even more when Sanford opens its new medical facility now under construction in West Fargo.

“The specialty is constantly changing and growing,” says Burud, who serves on the advisory committee that guided M State in the creation of the cardiovascular program. “They’ve done amazing things in (cardiovascular) care within the past 24 months. As technology evolves, so does our job.”

The Cardiovascular Technology program, which will award an Associate of Applied Science degree and will have selective admission criteria, will begin training 12 to15 students during its first year. The program will train students to work alongside interventional cardiologists and nurses in a hospital’s cardiac catheterization lab to assist with the treatment of patients having heart attacks and patients who have blood clots.

Currently, the closest Cardiovascular Technology program is in St. Cloud, Minn., and Jacobson says those students usually veer toward the Twin Cities for jobs.

M State will offer a cardiovascular technology survey course this summer, which will be a required pre-program class but will also be a chance for students to decide if the cardiovascular technology field is for them.

Jacobson recommends that students who are interested in either program visit with an adviser at M State’s Moorhead campus before applying. PB

Kayla Prasek Staff Writer, Prairie Business 701.780.1187

kprasek@prairiebusinessmagazine.com

Carlie Bowditch, of Tisdale, Saskatchewan, loves ice skating and rodeo. As a student at DSU, Carlie competes as a member of the DSU Rodeo team. She also volunteers in the Dickinson community as an ice skating instructor. Carlie’s career goal is to work in agriculture as an agronomist. She enjoys the one-on-one interaction with farmers, providing solutions for crop rotations and herbicide applications. As an international student, Carlie relies on scholarships to finance her education.

“Without scholarships, I would not be able to pursue my dream of competing in college rodeo while getting a quality education. Scholarships have led me to a new country where I can build new relationships and grow as an individual.”

Carlie Bowditch ‘18

(701) 483-2486 | contact@dsufoundation.org

dsuheritagefoundation.org

SD Mines signs collaborative agreement with Harvard Business School

BY KAYLA PRASEK

South Dakota School of Mines & Technology has signed a collaborative agreement with the Harvard Business School to make the HBX Credential of Readiness (CORe) business fundamentals program available to SD Mines students.

The CORe program is a multi-week online program focused on the fundamentals of business thinking, according to a news release from SDSM&T. Designed for non-business majors, CORe consists of coursework in business analytics, economics for managers and financial accounting taught using the Harvard Business School case-study method. The program is taught by Harvard Business School faculty and is offered online through the school’s HBX platform with a worldwide cohort of students.

“Last spring when this program was launched, (SD Mines was) looking for ways for our students to get more business experience,” says Heather Wilson, president of SDSM&T. “We had three students test drive it for us, and they all thought it was an exceptional program, which is when we decided to move forward with the agreement.”

The agreement means HBX will reserve space for SD Mines students in each CORe cohort, while Mines will share information with

HBX regarding financial aid eligibility for need-based scholarships. “This program gives our students the competitive edge in the job market,” Wilson says.

Wilson says SD Mines has sought educational business opportunities for its students because about 80 percent of students go into industry. “We also have a rising number of graduates who become entrepreneurs, so we want our students to be more aware of business and not just the technical side of things, which they’re already receiving an excellent education in.”

Kelsey Hibl, a junior industrial engineering major at SD Mines, was one of the students to enroll in CORe last summer. “I decided to enroll in the program because I have always wanted to take more business classes along with my engineering classes and I always love to take on new adventures such as this one,” Hibl says. “I also knew that the school was looking for students to participate and give feedback and that was something that I was happy to provide in a way that would help them make their decision about keeping the program and partnering, or looking for a different way to offer business classes to students at SDSM&T.”

Heather Wilson, president of South Dakota School of Mines & Technology.

Kelsey Hibl, junior engineering student at South Dakota School of Mines & Technology.

Even though she’s only held her Credential of Readiness for a few months, Hibl says it’s already proved its worth. “The first chance I really was able to use the Credential of Readiness was at the fall career fair at SDSM&T, and it definitely made a difference from previous years. The employers and companies I talked to were very eager to learn about what the program was, what I had done to complete it, and what that meant for me now. After the career fair, I received countless calls for interviews and had several offers, ultimately taking an offer with Emerson as their new product marketing engineering co-op. The CORe program definitely helped me with obtaining this position since it is a business and engineering-related job, which also makes it very exciting for me to be able to use my engineering knowledge as well as my business knowledge that I gained through the HBX CORe program.” PB

Kayla Prasek Staff Writer, Prairie Business 701.780.1187

kprasek@prairiebusinessmagazine.com

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“I decided to enroll in the program because I have always wanted to take more business classes along with my engineering classes and I always love to take on new adventures such as this one”

- Kelsey Hibl junior engineering student

South Dakota School of Mines & Technology

Sanford doctor leads research on immune system-based cancer treatment

BY LISA GIBSON

Sanford Health’s Dr. Steven Powell is leading research on a treatment for a head and neck cancer, focusing first on the immune system. Many types of cancer possess a compound called PD-L1, which acts as a camouflage, allowing the cancer to damage the body undetected by the immune system, Powell says. Pembrolizumab, a Food and Drug Administrationapproved medication, could be the key to treating advanced squamous cell carcinoma of the head and neck, in collaboration with chemotherapy and radiation.

Pembrolizumab, developed by Merck, is currently used to treat melanoma and certain types of lung cancers. “That drug blocks [PD-L1] so your immune system can recognize the cancer,” Powell says. The drug is being tested for use in treatment of many different types of cancers, he adds. Squamous cell carcinoma of the head and neck begins in the mouth, nose or throat, according to Sanford. It can be caused by alcohol and tobacco use or infection with some types of the human papilloma virus. When it’s caught early, it can be cured with surgery, chemotherapy and radiation.

The clinical trial led by Powell will use a lower dose of chemotherapy than generally administered to squamous cell carcinoma patients, and add the immune therapy to augment it, he says. The goal is to determine if pembrolizumab is a safe and tolerable treatment, and how it affects the patients’ long-term outcomes. Eighteen months after the patients’ initial treatments, annual evaluations will be conducted to monitor their cancer statuses, including whether the cancer has returned.

This Merck Investigator Studies Program clinical trial is a product of laboratory research performed at Sanford by Powell and the head and neck cancer research team led by John Lee, M.D., and W. Chad Spanos, M.D. “The immune system is very important during chemotherapy and radiation treatment for head and neck cancer,” Powell says in a statement. “This laboratory research demonstrated the addition of immunotherapy can enhance the response during drug treatment.”

Sanford began enrolling patients in the clinical study in November. Participants must be 18 or older and have advanced stages of squamous cell carcinoma of the oral cavity, oropharynx, hypopharynx or larynx. Immunotherapy will be an important aspect of cancer treatment in the near future and Sanford’s goal is to stay ahead of that research, Powell says. “Immunotherapy is really going to change the way we treat cancer.” PB

Lisa Gibson Editor, Prairie Business 701.787.6753 lgibson@prairiebusinessmagazine.com

Dr. Steven Powell, Sanford Health. IMAGE: SANFORD HEALTH

North Dakota named innovation champion by Consumer Technology Association

BY LISA GIBSON

In its annual look at innovation in all U.S. states, the Consumer Technology Association has named North Dakota an innovation champion, the highest of the four distinctions, for its growth in 2015. The state ranked first in the country for entrepreneurial activity, judged by the average number of small firms created per capita.

The innovation champions ranked highly in right-to-work legislation, fast internet access, a robust entrepreneurial climate and open posture to new business models and technologies. North Dakota’s grades in the measured categories include: A+ in right to work, B- in granting STEM degrees, B for tax-friendly, A+ in entrepreneurial activity, B+ in fast internet, B in tech workforce, A in welcoming new business models and a D+ in attracting investment. That D+ could mean the state is not attracting enough venture capital money, or perhaps not enough startups are seeking venture capital money, says Izzy Santa, CTA senior manager of policy communication. In 2015, a total of only $10.48 in venture capital was spent per capita in the state, with research and development investment of about $300 per capita. To compare, the champion of attracting investment, Massachusetts, saw about $800 in research and development investment, Santa says.

From 2009 to 2013, North Dakota created 28,000 jobs, 16,000 with newly established firms. “Over the last few years, the state has really been a hub for growth,” Santa says. North Dakota’s key gains were in legalized ridesharing, friendly tax policies that allow entrepreneurism and job growth.

North Dakota was ranked an innovation leader in 2014, the second-highest distinction, and South Dakota was ranked an innovation champion. The states switched rankings in 2015. “There’s a bit of friendly competition going on,” Santa says. Minnesota also was ranked an innovation leader for 2015.

North Dakota shares its innovation champion title with Arizona, Delaware, the District of Columbia, Indiana, Kansas, Massachusetts, Michigan, Nebraska, Texas, Utah, Virginia and Wisconsin. To see the entire scorecard, visit www.cta.tech/scorecard.

“It’s incredible North Dakota really made such a huge leap,” Santa says. PB

Lisa Gibson Editor, Prairie Business 701.787.6753 lgibson@prairiebusinessmagazine.com

IMAGE: CONSUMER TECHNOLOGY ASSOCIATION

NDSCS names Student Affairs leader

North Dakota State College of Science in Wahpeton recently promoted Jane Vangsness Frisch to vice president for the new Student Affairs division.

Vangsness Frisch graduated from North Dakota State University in Fargo with a bachelor’s degree in health education and mass communication with an emphasis in public relations. She also earned a master’s degree in mass communication and is currently pursuing a doctorate in education with an emphasis in institutional analysis, both from NDSU.

Vangsness Frisch joined NDSCS in 2012 as director of student success and career services. In 2014, she was named associate vice president for student success. Before her time at the college, Vangsness Frisch worked for the North Dakota University System.

NDSU professor to serve on tribal health advisory committee

Loretta Heuer, professor in the School of Nursing in the College of Health Professions at North Dakota State University in Fargo, has been invited to serve on the advisory committee for the evaluation of tribal health opportunity grants. The program, coordinated by the Administration for Children and Families within the U.S. Department of Health and Human Services, provides temporary assistance for those in need and low-income individuals to gain an opportunity for education and training in health care fields that are expected to experience labor shortages or that will be in high demand.

Heuer, a Robert Wood Johnson Executive Nurse Fellow alumnus, also chairs the interdisciplinary Midwest Clinicians Research Committee that collaborates with the University of Chicago in an effort to improve the care provided in federally funded health centers through quality research. Heuer also has coordinated state conferences in the past four years to bring together tribal leaders, health care practitioners and others focused on American Indian nursing.

Schulze named TSP’s eastern region principal

TSP Inc. has named Principal and Senior Architect Elizabeth Schulze to lead its Minneapolis office. Schulze will direct the firm’s efforts across its Eastern Region, overseeing ongoing projects in Minnesota, Iowa and Wisconsin.

Schulze has managed numerous projects at clinics and care centers in the Department of Veterans Affairs system, and she’s designed major improvements on college campuses across South Dakota, including the Beacom Institute of Technology at Dakota State University in Madison and the South Dakota Public Universities & Research Center in Sioux Falls.

William Craft

Concordia College president appointed, elected to boards

William Craft, president of Concordia College in Moorhead, Minn., has been appointed to the board of the Association of American Colleges and Universities and elected to chair the Lutheran World Relief board of directors.

AAC&U is the leading national association concerned with the quality, vitality and public standing of undergraduate liberal education. Craft’s work with AAC&U began early in his faculty career, as a mentor in its Cultural Legacies program to diversify the American college curriculum. It has continued through his current service as chair of the Wye Seminar Council, a partnership of AAC&U and the Aspen Institute.

CHI St. Alexius Health names controller

CHI St. Alexius Health in Bismarck, N.D., has named Brandon Vaughan controller in fiscal operations. As controller, Vaughan oversees the operation of the accounting department and the mail center. He assures the development of programs, policies and procedures for the fiscal department and completes accurate monthly, quarterly and annual financial statements. Vaughan also ensures the completion of the annual budget preparation.

Before joining CHI St. Alexius, Vaughan was the chief financial officer at Jamestown (N.D.) Regional Medical Center. He earned his Bachelor of Accounting from North Dakota State University in Fargo and a Master of Business Administration from the University of Mary in Bismarck. He is a Certified Professional Accountant.

Jane Vangsness Frisch

Elizabeth Schulze

Loretta Heuer

Brandon Vaughan

KLJ engineer named NDSPE Chapter 3 Young Engineer of the Year

The North Dakota Society of Professional Engineers Chapter 3 has named Scott Kolbinger its 2015 Young Engineer of the Year. The Young Engineer of the Year Award acknowledges an outstanding engineer for achievements in education, professional societies, technical, civic and humanitarian activities, engineering and professional development.

Kolbinger works in KLJ’s Municipal Group in its Bismarck, N.D., office. He has served KLJ for more than six years, providing land development and design solutions throughout North Dakota. Kolbinger earned a bachelor’s degree in civil engineering from North Dakota State University in Fargo.

BSC’s Huber selected for council post

Lane Huber of Bismarck (N.D.) State College was chosen president-elect of the Council of College and Military Educators. Huber is BSC’s chief distance learning and military affairs officer and has been at the college since 1999. He was previously with the North Dakota National Guard as an enlisted member of the military police and an air defense artillery officer.

After his term as president-elect, Huber will become president of the CCME in March 2017 and serve one year. His responsibilities include working with policy makers in the Department of Defense, military education officers and his counterparts at colleges and universities.

Huber holds a master’s degree in management from the University of Mary in Bismarck and a bachelor’s degree in criminal justice from the University of North Dakota in Grand Forks.

Scott Kolbinger

Lane Huber

B9Creations names CEO

B9Creations of Rapid City, S.D., has named Shon Anderson its CEO. Anderson previously served as the company’s vice president of sales and marketing.

Anderson has a Bachelor of Science in Mechanical Engineering from the University of Texas at Arlington. He spent more than 16 years in various roles with Schneider Electric in Texas before moving back to South Dakota. He joined B9Creations, a 3-D printing company, in 2014.

Aldevron names vice president/general manager

Aldevron, a leading provider of products and contract manufacturing services for the pharmaceutical and biotechnology industries, has named Jenny Stafford vice president and general manager. Stafford’s responsibilities include overseeing the company’s manufacturing and client relations operations in Fargo, N.D.

Stafford previously served as director of quality and regulatory. Before Aldevron, Stafford held positions of increasing responsibility at LifeCell Corp., Merck Pharmaceuticals and PRACS Institute. Her responsibilities included managing quality systems for compliance with international regulations in the pharmaceutical, medical device and human tissue production industries.

Stafford holds a Master of Science in Chemistry from North Dakota State University in Fargo and a Bachelor of Science degree in Chemistry from Mayville (N.D.) State University.

Shon Anderson

Jenny Stafford

Preparing the Launching Pad

UND Interim President Ed Schafer uses experience to ready the university for next president

BY KAYLA PRASEK

When Ed Schafer was growing up, his father’s company, Gold Seal Co., was always part of his life. He started working in the mailroom of the Bismarck, N.D., company when he was 14, but never planned on going back when he left to attend the University of North Dakota in Grand Forks.

Schafer ended up working for his father for 15 years, with nine of those years spent leading the company. After Gold Seal was sold in 1986, Schafer launched several businesses, including a commercial real estate development company, a fish farm and a classic car dealership. Schafer served as governor of North Dakota from 1992 to 2000 and as the 29th Secretary of the U.S. Department of Agriculture under President George W. Bush. In 2000, he co-founded Extend America and served as CEO before selling the company to Sprint.

On Jan. 15, 2016, Schafer became interim president of UND, a role he says he “didn’t expect to do.” When he first heard the State Board of Higher Education would be seeking an interim president, “I pretty much dismissed it because I’m not one to be a placeholder,” Schafer says. His wife, Nancy, told him this could be a chance to get involved for a short amount of time. Schafer, along with SBHE Chair Kathleen Neset and Chancellor Mark Hagerott, set parameters defining

Former North Dakota Gov. Ed Schafer is serving as interim president of the University of North Dakota until June 30.

IMAGE: MICHAEL VOSBURG/FORUM NEWS SERVICE

what that “interim” title would mean, and once Schafer was convinced it would be a “decision-oriented” six months of work, he agreed to take on the role.

“When you look at the presidency of the university, everything I’ve done to this point fits,” Schafer says. “I’ve worked for government. I’ve worked for the private sector. Everything came together and fits for what’s going on and what needs to be done here.”

As interim president, Schafer says his “major vision” is to “prepare the launching pad for the rocket of a new president.” With a new nickname, logo, president and budget, Schafer says UND feels like a new university. “My job is to build the foundations of that so the new president can, over a long period of time, create the new university.”

While he works to prepare UND for a new president, Schafer is also acknowledging things UND, and universities in general, could be doing better. “There are a lot of challenges facing higher ed. There is a mismatch of the business community and the product of the university. Some of it is perceived, some is anecdotal and some is real. Businesses are saying universities aren’t meeting their needs, which is happening amidst a cultural change. There’s a big challenge in understanding the needs of the business community and to be able to teach and shape students to fit those needs off-campus. Building the engaged student in the community and the workforce for the future is a big challenge for the university system.”

Schafer says universities nationwide have also gone a long time without having to deal with basic structural issues, instead raising tuition to cover everything and limping along when necessary. “Today, we see our federal government that is incapable of providing any kind

of reasonable revenue streams, or even any attention or policy, for the higher ed system. We’re facing challenges in every state’s economy and challenges in how to finance higher ed. It’s gotten to … the breaking point. … For the first time, we’ve gotten to the point where the finances of the participants in higher education are not matching the expectations of the institutions. … You have a challenge of, how do you reshape a university system to fit within the financial parameters of our culture and our society.”

Public universities face a challenge of building ethics and morals into their students, something private institutions are instilling in their students and businesses are saying their new employees don’t have, Schafer says. “That’s going to be a challenge (for public universities) to meet for the future workforce out there.”

Schafer says there is also “pressure on universities to move away from liberal arts to big data generation and technology — where our culture is going, with the iPhone culture. There has to be a match in what workforce needs are and what a university turns out, but you can’t do it by abandoning the overall education of a student. If we’re going to engage students in a community, you want them to have that liberal arts appreciation. There’s the workforce pressure not to do that, but then you’re only getting a worker, not someone who’s engaged in the community.” PB

Kayla Prasek Staff Writer, Prairie Business 701.780.1187 kprasek@prairiebusinessmagazine.com

Ed Schafer takes a phone interview on Jan. 15, his first day at UND as interim president. IMAGE: JESSE TRELSTAD/FORUM NEWS SERVICE

Expansions and Opportunities

In the past 10 years, the University of North Dakota’s College of Engineering & Mines in Grand Forks has seen enrollment jump by 140 percent, with an average of 40 percent per year, according to Dean Hesham El-Rewini. With those statistics in mind, the school is one of many in our region expanding to offer new programs, degrees and opportunities for students.

“It’s a great time to be an engineer,” says North Dakota State University’s College of Engineering Dean Gary Smith. “Employment in our case for engineering students has been outstanding. It doesn’t seem like the interest in hiring has dissipated. It looks like a very strong market for the next few years here.”

BY LISA GIBSON

Engineering is always a strong career path, Smith says, but the sector is stronger now than it has been for a while. To educate the high number of new engineers eager to get into the job market, NDSU’s College of Engineering in Fargo has added three minors to its offerings. El-Rewini says UND has added undergraduate programs, seven Ph.D. programs, three master’s programs and one graduate certificate. Halfway across the state, the University of Mary in Bismarck is expanding to allow its

Engineering schools in the region are adding courses, degrees and certificates to their offerings, as enrollment jumps and employers recruit

Sahar Abuali Galedari is a Ph.D. student at North Dakota State University’s College of Engineering. Her research is focused on pipeline corrosion mitigation. IMAGE: DAN KOECK/NORTH DAKOTA STATE UNIVERSITY

engineering students to take all four years of their undergraduate courses on the campus, in lieu of the current partnership with the University of Minnesota that sends third- and fourth-year students to Minneapolis. “We’ve found that a lot of students that are enrolled in that program really would like to finish their degrees here,” says Terry Pilling, University of Mary professor of mathematics and engineering, who has recently acquired the casual title of chair of engineering. “We’re trying to produce more well-rounded engineers.”

Graduate Education

UND’s College of Engineering & Mines has expanded its programs by design as enrollment has skyrocketed, El-Rewini says, adding all levels of engineering education contribute to a well-rounded

program. “Now we have reached a good point on the undergraduate level, so now we need to also get the critical mass needed for successful graduate education, as well.

“If you want to have successful, impactful research that meets societal needs, you need with it very strong graduate education,” he adds. The school now has undergraduate degrees with increasing enrollment, graduate degrees set for increased enrollment and several research programs that will be positively impacted by new graduate degrees. “When you have these three, you have the necessary conditions to really have a successful college of engineering,” El-Rewini says.

UND’s College of Engineering & Mines also maintains a distance education program for engineers that has seen a 270 percent

Boris Curuvija conducts lab work for his master’s degree in Electrical and Computer Engineering at North Dakota State University. IMAGE: DAN KOECK/NORTH DAKOTA STATE UNIVERSITY

Hesham El-Rewini, Dean, UND College of Engineering & Mines. IMAGE: UND COLLEGE OF ENGINEERING & MINES

Gary Smith, Dean, NDSU College of Engineering. IMAGE: NDSU COLLEGE OF ENGINEERING

enrollment increase in the past 10 years. For the first time, the college will offer three graduate degrees online, El-Rewini says.

The school also is awaiting completion of the Collaborative Energy Complex, which should be open this summer. El-Rewini calls it a “new ecosystem” that will include a compelling vision, state-of-the-art facilities, needed programs, quality people, a collaboration strategy and an enabling organizational structure. It will include lab spaces and will push UND’s engineering college to the forefront of the energy industry, El-Rewini says, adding he hopes to draw interest from all of UND’s sectors to collaborate on research. “I am so excited about the future of this university because of this Collaborative Energy Complex — the entire university, not only engineering.”

Minors in Engineering

NDSU’s College of Engineering has had a strong undergraduate program since 2005, Smith says. That year, all programs also got discipline-specific Ph.D.s. “We’re currently working to move toward minors … which we’ve not had before.”

The school will add minors in reliability engineering, energy and biomedical engineering, three sectors primarily of interest to the professional engineering industry, Smith says. A reliability minor likely would interest students going to work in manufacturing or product-development industries, biomedical minors would include those in mechanical or electrical engineering and an energy minor is self-explanatory, Smith

says. “Having a background in various aspects of the energy industry we felt would be of value to students looking for employment.” He hopes they will be available to students in the fall of 2017.

“These are areas the industry is interested in, so obviously, if our students are preparing themselves with credentials in an area that’s of interest to industry, then that just heightens their opportunities for employment,” he says.

Smith says about 30 percent of the students in NDSU’s engineering program leave the state for employment post-graduation, while others stay and find careers with North Dakota’s many engineering firms. “There’s a lot of opportunity for them,” he says. “I think there’s probably opportunities that we’re not filling, but there’s a lot of attraction here from outside companies, as well.”

‘Exodus of Engineers’

Terry Pilling, of the University of Mary, says the region has seen an “exodus of engineers” post-graduation, particularly those who come to

Kouqi Liu, a petroleum engineering graduate student at the University of North Dakota’s College of Engineering & Mines, analyzes a shale sample from the Bakken Oilfield in the school’s Materials Characterization Laboratory. IMAGE: CASSANDRA VAN DELL/ UND PETROLEUM ENGINEERING

Terry Pilling, chair of engineering, University of Mary

North Dakota from elsewhere in the country and aren’t accustomed to harsh winters. North Dakota-raised students are leaving, too. “They get their degree at NDSU or UND and they get an internship somewhere and they decide not to come back to North Dakota.” With its abundance of engineering firms, Bismarck is an ideal place to offer education close to employment opportunities in an effort to keep engineers in the state, he says.

And with expanded curriculum at the University of Mary, students will now be able to finish their entire four-year bachelor’s degrees on campus. For now, the upper classmen will be taking some lab courses online through UND until the University of Mary has the resources available to offer the courses on campus. That could be soon, as Pilling plans to use space that will be vacated after the university completes a massive construction project that will reorganize existing departments. He says he has a few other tricks up his sleeve that will help provide lab space, too.

Like most engineering schools, the University of Mary worked with engineering firms and other potential employers to develop its curriculum. “We’re trying to organize our engineering curriculum so that our engineering students are exactly what the local North Dakota engineering firms want,” Pilling says. “So that means we’re discarding any outdated things they’re learning at other schools that engineering firms no longer use, and we’re implementing new things that firms wish they didn’t have to teach the students when they first come in.”

Along with mechanical, civil, electrical, petroleum and chemical engineering degrees, the University of Mary offers a construction management program for students who want to be involved in engineering, but “don’t like all that math,” Pilling says.

The school also aims to train its engineers in ethics values and community, beyond core courses. If they choose, students still can go to the University of Minnesota to finish their degrees. “We basically want our students to be able to do whatever they want,” Pilling says.

With so many program expansions, employers recruiting and opportunities for the taking, the futures of engineering students from all of these schools look bright. El-Rewini reminds that engineers have a hand in all things, from energy and security to human health and quality of life.“You’ll see the fingerprints of engineers everywhere,” he says.

“It’s a great time to become an engineer, in all disciplines, not only in petroleum, not only in energy, but in all areas of engineering,” El-Rewini says. “Students in engineering can contribute to all walks of life. I can’t be more excited about what people can do in engineering these days.” PB

Lisa Gibson Editor, Prairie Business 701.787.6753 lgibson@prairiebusinessmagazine.com

University of Mary civil engineering students practice surveying during an outdoor lab project. IMAGE: UNIVERSITY OF MARY

Booming Cities

Prairie Business profiles

Bismarck and Mandan in North Dakota, neighboring cities that see their largest economic drivers in higher education, government, health care and energy

BY KAYLA PRASEK

Each community in the Prairie Business readership area of North Dakota, South Dakota and western Minnesota has its own major sectors, people, trends and culture. Starting with this issue, Prairie Business is bringing back its Community Profiles, sending staff out on the road to find out what makes various communities’ business environments unique. Bismarck and Mandan, in central North Dakota on the edge of the Bakken oilfield, are up first. Through a round table discussion with city, business and organization leaders, Prairie Business discovered that higher education, health care, government and energy are the major factors in these cities’ economies.

The Bismarck-Mandan area has felt the effects of the oil boom in western North Dakota, with a 2013 Census population estimate of 117,441, up from 108,779 as recorded by the 2010 Census. Thanks to that growth and other incentives, downtown Bismarck and downtown Mandan have “changed dramatically” in the past decade, says Brian Ritter, president and CEO of the Bismarck-Mandan Development Association.

“In Bismarck, it’s become more restaurants and giving people an excuse to come downtown after 5 p.m.,” Ritter says. “The Five South Development, a proposed mixed-use development down the core of Fifth Street, seeks to bridge the gap between the three major shopping areas

Blarney Stone Irish Pub is an authentic Irish pub located in downtown Bismarck, N.D. Bismarck and Mandan have made thriving downtowns a priority. IMAGE: BISMARCK-MANDAN CONVENTION

VISITORS

here. They’re looking for housing, retail and a hotel from the private sector, while the public sector would put in parking infrastructure. It would bring much-needed housing plus additional retail and a signature hotel right by the events center.”

Renaissance Zone programs have brought more than $52 million in private investment and 40 new businesses to downtown Bismarck, says Keith Hunke, assistant city administrator. The city also provides subsidies to businesses that want to update their building fronts.

“We are vibrant cities for college students, and vibrant downtowns are a major part of that,” says Monsignor James Shea, president of the University of Mary. “College students love having vibrant downtowns that they can go to. University of Mary has plans in the future to establish a downtown campus, and currently we have some operations in MBA and degree

Cory Samson Fargo

Dereck Mattson Minneapolis

Jay LaDue Grand Forks

Chad Renner Bismarck

COMMUNITY PROFILE GUESTS

completion (programs) in a small office downtown. Our MBA and graduate programs in physical therapy, occupational therapy, nursing and speech/language pathology will find their headquarters downtown, adjacent to the Five South project.”

Higher Education

Higher education plays a large role in Bismarck and Mandan’s economies, with more than 8,000 college students living in the metro area, according to the BMDA. Still, Ritter says the cities don’t utilize those students as well as they could. “We need to increase our ability to keep those students here. We still have 2,500 job openings and 2 percent unemployment rate.”

Officials at the University of Mary and Bismarck State College are focused on the challenges facing their institutions and the community as a whole. The University of Mary received a $10 million gift last year to fund nursing scholarships, which Shea says is vital as the “workforce concerns in health care are really significant. … We’re training a lot of nurses from all over the world.”

The university also has seen a surge in its other health sciences programs, as well as in its business school. Most significantly, the university is launching an engineering program in the fall, offering five concentrations. Shea says the programs were prompted by more than 700 inquiries into such offerings the university didn’t have. The University of Mary launched a virtuous leadership concentration in its Master of Business Administration program and is working on plans to launch construction management and cybersecurity programs. “We’re looking at all of our schools to see where the demand is and to bring programs that will make North Dakota a better place and resonate with our students,” says John Warford, dean of the Gary Tharaldson School of Business at the University of Mary and former mayor of Bismarck.

“These programs are making a difference, even with the people who are moving back home,” says Nicole Kivisto, president and CEO of MDU Utility Group. “These things help build a workforce of people that want to stay here. As an employer, those are the kind of things we like to see, and we have seen an influx of people who want to come back.”

At Bismarck State College, administrators are coping with a $1.5 million budget cut, which Marnie Piehl, director of college relations, says hurts. “Culture has been an interesting thing to deal with during this. We won’t be filling the provost position until at least 2017, so how do you maintain culture and not throw everyone into a panic when you’re receiving a budget cut?”

Chris Jones, senior vice president of strategy and business development, Catholic Health Initiatives

Msgr. James P. Shea, president, University of Mary Keith Hunke, assistant city administrator, City of Bismarck

Marnie Piehl, director of college relations, Bismarck State College

Mike Eggl, senior vice president of communications and administration, Basin Electric Power Cooperative

Jim Neubauer, city administrator, City of Mandan

Nicole Kivisto, president/CEO, MDU Utility Group

Brian Ritter, president/CEO, Bismarck-Mandan Development Association

Arlyn Van Beek, mayor, City of Mandan

Greg Vetter, executive vice president, University of Mary John Warford, dean of the Gary Tharaldson School of Business, University of Mary

Piehl says BSC is looking forward to a surge of high school students graduating in two to three years that will boost enrollment.

Government

Higher education plays a key role in the metro area’s largest employer, state government. “This is a government town,” Warford says. “Our philosophy is a more educated workforce and lifelong learners. We’re trying to adopt that into the public sector. Our Master of Public Administration program is tapping the best and brightest to teach this program, and we’re putting in a tribal component.”

Hunke says Mary’s MPA program will help on a local government level too. “I had a great opportunity spending time to identify what our needs are as a city organization. Oftentimes we get employees who have very strong skills but identify the need of having more time with the soft skills. Our department heads will struggle with personnel issues and legal issues. We’re excited about what the program will bring us, not just for current employees, but it will bring us a new pipeline of employees, as well.”

Greg Vetter, executive vice president of the University of Mary, says the public sector has

been a good partner for the university. “Having a very welcoming public sector when we want to develop something new has been wonderful. This is something special in our community — having a public sector that doesn’t stand in the way of businesses.”

Health Care

CHI St. Alexius and Sanford Health are two of the largest employers in the metro area, and also one of the sectors with the most acute workforce needs. “When we received the gift from CHI, we quickly decided we wanted to invest it in scholarships, part of which is because our students do their clinicals locally,” Shea says. “The urgent need for health care professionals is really acute. In a growing place like this, it’s very significant.”

Chris Jones, senior vice president of strategy and business development for CHI, says the health care organization knows Bismarck and higher education are where its investment needs to be. “We need people bad. Since so many of the graduate nursing students are from out of state, they’re still looking to leave, so our retention rate isn’t as high as we need it to be. All of the infrastructure is critical to retaining them.”

Jones says the key now is figuring out how to teach culture in health sciences programs. “Health care is going to change fast. Workforce is our No. 1 issue now and 10 years from now, maybe longer.”

Warford says the University of Mary is doing what it can to respond to the workforce needs of the metro area’s top two employers,

government and health care. “We really need to keep our eye on the ball. It’s so important that we in higher ed listen to guys like Chris (Jones) so this large part of our economy — health care — is OK. Workforce is at the top of everyone’s lists, and we’re doing everything we can in higher ed.”

Energy

While Bismarck and Mandan sit on the edge of the Bakken oilfield, which is experiencing a significant slump, Ritter says the metro area’s economy will be fine because it is so diverse. “It is directly affecting Bismarck-Mandan’s housing market. I see vacancies, but I don’t see people looking to board up the doors. It wouldn’t surprise me to see more hotels in the next 36 to 48 months.”

Ritter says interest still is increasing in retail in the metro area, with H&M recently announcing its first store in North Dakota will be in Bismarck. “Retail is not slowing down,” Ritter says. “Basin Electric, U of Mary, the city of Mandan, Dakota Carrier Network and several other major companies all have construction projects going on so we will see no decline in commercial construction. The job rate isn’t going to change. I won’t say we won’t have challenges, but I am not worried how oil prices are going to impact Bismarck’s economy.”

At MDU Resources’ utility companies, “when we look at our Bakken customer growth, electric customers still grew 5 percent,” Kivisto says. “We serve the core communities so we think it’s people moving from non-permanent to permanent housing. We have seen a

Five Nations Gallery and Gifts features authentic Native American artwork, jewelry, sculptures and baskets and is located in downtown Mandan, N.D. Mandan Mayor Arlyn Van Beek says small businesses have helped revitalize Mandan’s downtown in the past 10 years.

IMAGE: BISMARCK-MANDAN CONVENTION & VISITORS BUREAU

decline in residential construction activity, but in the heart of the Bakken, we’re still seeing customer pickup. We’re also picking up the service for those moving from man camps.”

At Basin Electric, Mike Eggl, senior vice president of communications and administration, says the co-op has seen a drop-off in the Bakken, but the core drilling rigs are still going. “We’re not laying off on the transmission projects that we’ve been working on.” Basin is also expanding its headquarters, a project that has been delayed for many years, Eggl says. “We had employees at five different facilities, so we’re adding on 90,000 square feet in a way that is as limiting of a disruption as possible.” The $38 million expansion is expected to be complete in mid-2017.

Bismarck has felt western North Dakota’s oil downturn in a different way, as well. “Baby Boomers are moving to Bismarck and Fargo from western North Dakota,” Warford says. “These are people who have money, buy houses, invest in health care and make investments. It’s one of the sadder parts of the downturn in western North Dakota that has been a boon for here.”

Both BSC and Mary felt the oil boom by way of less available housing in the community for its students, and had to increase on-campus housing. “At our community college, we’ve had to open three new residence halls,” Piehl says. “That’s not the norm, but they have nowhere to go. Our residential halls have come from our foundation and community partnerships because we don’t have that operational budget.” Mary now has more than 1,000 beds, Shea says. “It’s been exciting for us because we always wanted to be more of a residential campus. Now we have a much more vibrant campus. It’s transformed our culture.” PB

Road to Growth

Public-private partnership pushes forward on Interstate 29 interchange in Sioux Falls, S.D.

BY KAYLA PRASEK

Agroup of Sioux Falls, S.D., landowners are hoping their partnership with Lincoln County, the cities of Sioux Falls and Tea, and the South Dakota Department of Transportation will lead to a new Interstate 29 interchange at 85th Street and continued economic development. The interchange would be between the 41st Street and Tea exits on I-29.

About seven primary landowners represent the 1,500 acres near I-29 and 85th Street, an area where no development has occurred yet, says Erica Beck, vice president of development for Lloyd Cos., which owns about 50 acres there. The landowners are pushing for an interchange instead of an overpass because they believe it’s necessary for economic development.

In February 2014, the landowners group started pushing forward with the project, taking it to South Dakota Gov. Dennis Daugaard and Secretary of Transportation Darin Bergquist. “This is a project that has been talked about for at least 10 years with ebbs and flows,” Bergquist says. “The landowners and Lincoln County revived the fire (behind the project) after it had been dormant for a few years. It’s a unique project because getting it completed will have tremendous impact for that area for economic development.”

While the state supported the project, it couldn’t justify allocating money toward it. The landowners will fund the engineering studies needed for an interstate justification study and report for the Federal Highway

The local landowners group envisions housing, retail and major commercial developments if a proposed interchange at Interstate 29 and 85th Street in Sioux Falls, S.D., is approved. IMAGE: CONFLUENCE

Administration, as well as up to $4 million toward construction of the interchange, Beck says. Lincoln County will borrow $15 million from the SDDOT to fund the rest of the project, says Lincoln County Commissioner Jim Schmidt. The county will also assume responsibility for two township roads that would feed into the interchange. The cities of Sioux Falls and Tea will fund the infrastructure necessary on their end as well.

“The DOT has a fund set up for a purpose like this, and when you look at the two cities, three school districts, county and townships that will all benefit, we knew we would get a return on our investment,” Schmidt says. “We haven’t had any negative feedback from any residents, which means they see the importance of this.”

With funding in place, the next step will be justifying the project to the federal government. “Right now, the federal government doesn’t take economic development into consideration when they approve an interchange,” Beck says. “They look at traffic flow and infrastructure being maxed out. But it’s not often that you get the opportunity to master plan a 1,500-acre development. This really impacts the whole region.”

Bergquist says the Federal Highway Administration will ask whether another interchange is necessary and warranted. The justification report will have to show that local roads are being overused.

The landowners group has planned out what they anticipate development in the area will look like. “The scale of development here is significant,” Beck says. “We anticipate large-scale development, office complexes and housing, all on a scale we haven’t seen in Sioux Falls. We have the ability to go in and build the infrastructure needed for large commercial companies. We’ll also be able to go after opportunities for national retailers that we haven’t been able to go after.”

The growth the interchange would bring is why the city of Sioux Falls supports the project, says Mark Cotter, the city’s director of public works. “We want to be part of this because it’s a great public-private partnership and this area is in our long-range growth plans. We want to make sure we appropriately plan a transportation system that supports the continued growth of our city.”

Bergquist says that public-private partnership is unique for this type of project. “We get these types of requests on occasion, but this project is unique for several reasons: the magnitude of the project, this many entities involved in one project, the public-private partnership and the private side seeking to be part of the financial solution.”

If the Federal Highway Administration approves the interchange, an environmental impact study will be done next. The interchange will then be designed and constructed. While there’s no set timeline as it’s up to the Federal Highway Administration to move forward, Beck says she hopes construction could start in 2018. PB

Kayla Prasek Staff Writer, Prairie Business 701.780.1187 kprasek@prairiebusinessmagazine.com

Streamlined Services

BY LISA GIBSON

After a $66 million, multi-faceted construction and remodeling project is finished, North Dakota’s Ward County will have double the capacity in its jail, new office areas for multiple county services, centrally located county offices, streamlined courthouse operations and modern updates to its historical 1929 courthouse. Not to worry, though — the original art deco decor in the courthouse will remain.

“It is truly the most beautiful county courthouse in North Dakota,” says Scott Jordan-Denny, civic practice leader and architect with JLG Architects, which designed the new facilities. “So just being very careful with that and the historical qualities of it has always been a definite goal of the county, as well as the architects.”

The updates to the courthouse consist mostly of modernizing systems such as fire sprinklers, repurposing office space and accommodating existing departments, Jordan-Denny says. “Weaving those kinds of things into the historic character of the building is challenging, but something we’re really stepping up to do and make sure we’re preserving that history and the character of the building.” The courthouse is about 62,000 square feet and the remodel will include only about half, Scott-Denny says.

A new administrative building has recently been completed, allowing staff previously housed in the courthouse to move into new, and in many cases larger, office areas. Many departments housed in the courthouse, including social services and the county commission, have moved into the new administrative offices, leaving only court-related

North Dakota’s Ward County is in the midst of an enormous project that will result in more jail space, updates to the courthouse and centralized county service offices

The Ward County, N.D., courthouse is getting some renovations as part of a massive campus-wide construction project, but the historic 1920s art deco style will remain the same. IMAGE: JLG ARCHITECTS

departments behind, for a more streamlined setup, Scott-Denny says. The new office building is a 21st Century, unique facility with a light-filled atrium and also incorporates the library, which used to be set apart at an “offbeat” location, he says. “Now it’s kind of front and center, off the atrium on the ground floor, accessible to the public.”

The courthouse remodel is underway and will be completed in eight to nine months, he says, followed by, and perhaps overlapping with, the construction of an addition to the current jail that will add about 150 cells to capacity. “We are very much looking forward to the groundbreaking on the new jail,” says Ward County Chief Deputy Robert Barnard. “We still house more prisoners than we have room for by way of transporting them to other facilities throughout the state and paying to house them there, so we’re looking forward to having our own space.” The addition will add 75,000 square feet and will house the Ward County Sheriff’s Department on one of its five floors.

After extensive construction, Ward County, N.D., will have a new office building, a jail addition with a new location for the sheriff’s department and renovations to its courthouse. This rendering shows the office building. IMAGE: JLG ARCHITECTS

About 10,000 square feet of the 38,000-square-foot existing jail will be remodeled, also, including the intake area, miscellaneous support and outdated areas. Scott-Denny says the work will not displace any inmates currently housed in the Ward County Jail. “The idea is to get the jail built and 100 percent complete and open, and then transfer the prisoners to the new jail and then go and remodel the existing jail.”

The juvenile detention facility is currently housed in the existing jail and will be moved to the courthouse basement. The majority of the detention center construction has been finished, Barnard says.

Jordan-Denny says he had never designed a jail before and the security issues and other challenges were learning opportunities. BWBR out of Minneapolis is JLG’s jail consultant on the project. “Security is definitely a concern,” Jordan-Denny says. “I think what was really interesting for me was really thinking about the safety of the sheriff’s deputies and the security staff within the jail.” He cites the goal of having no 90-degree angles where someone could hide. “You want to keep everything flowing and keep corridors wide enough that you can always have a deputy escorting a prisoner and not ever get into a compromised situation.”

Barnard says the new jail and sheriff’s department office space will help streamline operations. “We spend a lot of time, money and labor transporting inmates out of our facility, so they can be housed at other jurisdictions. That will not only save time and make things more efficient, but it’s going to save us money, as well.”

While the new cells and office space won’t mean huge changes for deputies on the road patrolling, it will for headquarters. “For the detention facility, the jail, it’s going to be a big change and a big improvement,” Barnard adds. “We’re looking forward to a large improvement.” PB

Lisa Gibson Editor, Prairie Business 701.787.6753 lgibson@prairiebusinessmagazine.com

The construction projects at Ward County facilities will result in an almost entirely new campus that will streamline processes and services for increased efficiency. IMAGE: JLG ARCHITECTS

The new jail addition, shown in this rendering, will double inmate capacity and house the sheriff’s department. IMAGE: JLG ARCHITECTS

Interest Rates

Employment

Gas Captured/Sold

Data provided by David Flynn, chair of the University of North Dakota Department of Economics. Reach him at david.flynn@business.und.edu.

Year-over-year summary

Drilling Productivity Report

Drilling Productivity Report Year-over-year summary

New-well gas production per rig

March 2016

New-well gas production per rig thousand cubic

Monthly additions from one average rig

Legacy oil production change

FordHaynesvilleMarcellusNiobraraPermianUtica

Legacy oil production change

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April-2015 April-2016

April-2015 April-2016

Indicated monthly change in oil production (Apr vs. Mar)

April-2015 April-2016

April-2015

April-2015 April-2016

Indicated monthly change in oil production (Apr vs. Mar)

barrels/day

April-2015 April-2016

BakkenEagle FordHaynesvilleMarcellusNiobraraPermianUtica

through February projected

drilling data through February projected production through April

through April

April-2015 April-2016

FordHaynesvilleMarcellusNiobraraPermian Utica

Legacy gas production change

Indicated monthly change in gas production (Apr vs. Mar)

April-2015 April-2016

April-2015 April-2016

Indicated monthly change in gas production (Apr vs. Mar)

April-2015 April-2016

BakkenEagle FordHaynesvilleMarcellusNiobraraPermian Utica

BakkenEagle FordHaynesvilleMarcellusNiobraraPermian Utica

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