SD launches new economic development programs

BY PAT COSTELLO

In economic development, we are constantly building. Whether it is building new facilities, building a job pool, or building stronger communities, we are always building.

During this past legislative session, South Dakota legislators from both parties worked together to help us with these efforts, and in doing so, took a tremendous step forward for economic development. They created SB 235, and from that, the Building South Dakota legislation was born.

The Building South Dakota legislation is a package of programs that take a multi-faceted approach to economic development, focusing on education, housing, infrastructure, local economic development efforts, and large and small project needs. The Board of Economic Development administers four of the programs resulting from the legislation, with the South Dakota Housing Development Authority and the Department of Education administering the remaining two programs.

Here is a little on each of the board’s four programs:

• The Economic Development Partnership Program is a grant program that provides matching funds to nonprofit development corporations, municipalities, counties or other political subdivisions of the state to assist with training needs, new staff, or elevating existing part-time staff, for the purpose of developing or expanding local and community economic development programs. The grants may be also be used to commence or replenish local revolving loan funds that develop or expand housing, community development and economic development programs.

• The Local Infrastructure Improvement Program provides grants to assist funding the construction or reconstruction of infrastructure for the purpose of serving economic development projects. Any local development corporation or political subdivision of the state may apply.

• The Reinvestment Payment Program provides reinvestment payments to support companies in off- setting the upfront costs associated with relocating or expanding operations, and/or upgrading equipment in South Dakota, and is intended for ventures that would not have occurred without the assistance. Under this program, project owners are eligible to receive a reinvestment payment that is not to exceed the South Dakota sales and use tax paid on project costs, on new or expanded facilities with project costs exceeding $20 million or equipment upgrades with costs exceeding $2 million.

• The South Dakota Jobs Grant Program is open to companies pursuing new or expanded facilities with total project costs of less than $20 million or equipment upgrades with total project costs of less than $2 million. The program provides grant funds that assist companies in offsetting the upfront costs associated with relocating or expanding operations, and/or upgrading equipment in South Dakota. Applications are considered based on the likelihood of whether or not the project would progress without the grant.

The Economic Development Partnership Program and the Local Infrastructure Improvement Program closed the first round of applications on July 31. The next round of applications for these programs closes on Oct. 31. The Reinvestment Payment Program and the South Dakota Jobs Grant Program both accept applications on an ongoing basis.

Each of these programs will play a vital part in boosting economic development efforts in South Dakota. I’m looking forward to using each of these new tools to help businesses create jobs and foster development in our state.

For more information and for applications, please visit www.sdreadytowork.com, and click on the “Financing & Incentives” tab. PB

Pat Costello Commissioner, S.D. Governor’s Office of Economic Development

Apartment communities under construction in Williston

A ground breaking was recently held for a 300-unit apartment community known as North Gate Apartment Homes in Williston, N.D. The $39.5 million high-end apartment project is a partnership between Bozeman, Mont.-based Braxton Development and Indiana-based The Sterling Group and will consist of 12 buildings with apartments ranging in rent from $1,950 to $3,500 per month. Features will include a locker area in each building where residents can store items with oil residue. The property is expected to open next spring. A sister property, dubbed Sierra Ridge Apartment Homes, is located in Dickinson, N.D.

Santa Barbara, Calif.-based real estate development firm Granite Peak Partners Inc. recently broke ground on a $68 million, 300-unit apartment community. The first phase of the Dakota Ridge Apartments project, consisting of six buildings housing 180 two- and three-bedroom apartments, is expected to be complete next May. The entire project consists of 10 buildings and a clubhouse. Unique features will include mudrooms in each apartment and extra-large garages designed to accommodate oversize pickup trucks. Partners on the project include Minneapolis-based Adolfson and Peterson as general contractor, Bismarck-based engineering firm KLJ and property managers Greystar Real Estate Partners.

Work begins on Sanford Health’s Bagley clinic

A groundbreaking ceremony was held June 26 for a Sanford Health clinic in Bagley, Minn. Kraus-Anderson Construction Co. is building the approximately 10,800-square-foot clinic and Bemidji, Minn.-based MJ Architectural Studios Inc. is designing the facility.

The $1.5 million project is being developed by Greater Bemidji, which will lease the space to Sanford Health.

DSU to offer accounting degrees online

Beginning this fall, Dakota State University in Madison, S.D., will begin offering bachelor of business administration degrees in accounting and its bachelor of science degrees in professional accounting online. The online option is an effort to provide added convenience for commuting students and to offer DSU degrees to a wider audience.

NJ engineering firm expands to Bismarck

Langan Engineering and Environmental Services, a New Jersey-based site engineering and environmental consulting services firm with nearly 700 employees, recently opened a regional office in Bismarck, N.D., in order to support opportunities related to the Bakken region. According to the firm, its expansion to North Dakota is an outgrowth of work it conducted in the Marcellus and Utica shale gas plays in Pennsylvania, West Virginia and Ohio.

SDTBC selects 6 companies for Accelerator program

Six entrepreneurial teams have been selected to take part in this year's Accelerator program at the South Dakota Technology Business Center. Selected participants are: Braced With Style, FarmCast Group, Fointar, Sidewalk Technologies, Nanofiber Seperations LLC and Prom-tect SD. Entrepreneurs will attend monthly, one-day sessions for six months while preparing to grow their businesses and pitch to investors and will also compete for portions of a $20,000 pool of funds and in-kind services.

The 2013 Accelerator program is sponsored by Forward Sioux Falls and South Dakota EPSCoR — the Experimental Program to Stimulate Competitive Research. EPSCoR is funded by the National Science Foundation.

Eide Bailly adds Utah firm

Lake, Hill & Myers, a Salt Lake City-based CPA (certified public accountant) firm, joined Eide Bailly July 1 as the company’s second Utah location. Ogden, Utah-based Schmitt, Griffiths, Smith & Co. joined Eide Bailly in November 2012. Dave Stende, managing partner/CEO at Eide Bailly said the addition of a second firm will strengthen the company’s presence in the western region of the U.S. The company has 21 offices in 10 states west of the Mississippi River. LHM brings 24 employees to Eide Bailly, including five partners. Kevin Anderson will serve as partner-in-charge of both Utah offices. He also serves in that role for the company’s Boise, Idaho, office.

Eide Bailly’s total revenues for the fiscal year ending April 30, 2013 totaled $167 million. LHM is expected to add $3.5 million to the combined firm.

Raven Industries collaborates with Google

Raven Industries Inc. is involved in a pilot project with Google to provide high-speed wireless Internet accessibility to rural, remote and underserved areas of the world. Raven is design- ing high-tech balloons as part of Project Loon, which will be used as a platform for providing Internet access to hard-to-reach regions. A successful trial was held in June in New Zealand involving 30 balloons provided by Raven Aerostar. According to Raven Aerostar, the project is in its early stages. The company expects several years of testing and engineering advancements as the project is expanded to other countries.

DFC Consultants gains BBB accreditation

Fargo-based DFC Consultants Ltd., a software solutions company specializing in Microsoft Dynamics GP, CRM and DFC Property Management software, has received an A+ rating from the Better Business Bureau for its positive track record, honesty, transparency and integrity. DFC has been in business for 24 years and maintains offices in Fargo, Bismarck and Dickinson, N.D. The company has seen a 20 percent customer growth rate over the past three years.

Home of Economy expands in Jamestown

Home of Economy, a retail store with six locations throughout North Dakota, is relocating its Jamestown store to the recently closed Kmart site, about one mile south of its current location. The 87,000square-foot space will make the Jamestown store the largest Home of

Cambria Suites expands to ND

Choice Hotels International Inc. and South Dakota-based KAJ Hospitality have begun construction of a Cambria Suites in West Fargo, N.D. The four-story, 103-room hotel and 15,000-square-foot conference center is expected to open next spring. It will be the first Cambria Suites

Economy in the company’s history. The company plans to hire additional staff to man the larger location and will add full tire service to the Jamestown store’s offerings. The new store is expected to open mid-August.

Home of Economy is headquartered in Grand Forks and also has stores in Devils Lake, Grafton, Williston and Minot.

ND projects receive USDA loan guarantees

Jasper Schneider, USDA Rural Development director for North Dakota, announced that the department has awarded more than $5 million in loan guarantees for two projects in the state.

Horsch Anderson LLC in Mapleton received a $5 million loan guarantee to construct an agricultural equipment manufacturing facility. When complete, the plant is expected to employ 40 people. Bell State Bank and Trust of Fargo partnered with the USDA on the guarantee.

Mayville State University Foundation received a $375,000 loan guarantee to rehabilitate Northwest Hall into an alumni center. Goose River Bank of Mayville partnered with the USDA on the guarantee.

in North Dakota. KAJ Hospitality, led by father-son team Kevin and Aaron Johnson, is owner/developer of the hotel and conference center. KAJ Hospitality has offices in Sioux Falls and Mitchell, S.D., and Wichita, Kan.

Avera expands outpatient therapy

Avera Queen of Peace Hospital has acquired University Physical Therapy in Mitchell, S.D. The outpatient rehab center will be called Avera University Physical Therapy. The acquisition was made to expand Avera’s outpatient presence in Mitchell, according to the organization. Avera plans to retain the facility’s existing staff. Scott Houwman, who established University Physical Therapy in 1998, will continue in his role as physical therapist at the facility in addition to becoming sports enhancement and outreach therapy coordinator for Avera.

Rapid City firm nabs SD’s first ADDY award

Rapid City, S.D.-based marketing and communications firm Message received a National Gold ADDY award during the 2013 American Advertising Awards for a video created on behalf of Black Hills Ammunition. It was the first National Gold ADDY awarded to a South Dakota advertiser.

The American Advertising Awards (formerly the National ADDY Awards) receives more than 60,000 entries annually. Entries are judged at local, regional and national levels as part of the selection process.

M State, MSUM partner offer reduced tuition program

Minnesota State Community and Technical College has launched a program, dubbed up2U, which will allow M State graduates to attend their junior year at Minnesota State University Moorhead at reduced rates.

To qualify, students must enroll in at least nine credits at any of M State’s four campuses or eCampus, maintain a grade point average of at least 2.0 and complete a transfer degree within three years, and then enroll at MSUM to complete a four-year degree. In return, students may receive up to a full-year scholarship for one year at MSUM, equating to a savings of more than $4,000.

M State expects about 150 students to participate in the program this year.

First International opens Moorhead branch

First International Bank & Trust recently held a grand opening for its newest location in

Daktronics, Sony partner to make video super system

Brookings, S.D.-based Daktronics, together with Sony Electronics, will manufacture a true high-definition integrated LED video super system for Levi’s Stadium in Santa Clara, Calif. The stadium, opening in 2014, will be the new home of the San Francisco 49ers.

The multi-million dollar installation will include Daktronics’ latest

Moorhead, Minn. While the bank has served Moorhead customers for some time, the new store is its first Minnesota location and was opened in order to accommodate Moorhead’s growth. Earlier this year, the bank also celebrated grand openings at new locations in Williston and Minot, N.D.

Established in 1910, the bank is owned by Watford City Bancschares Inc.

UND Aerospace Foundation donates to Calif. school

The University of North Dakota Aerospace Foundation recently provided $25,000 to the Los Angeles Unified School District’s aircraft mechanics school. The donation will be used to award scholarships to low-income students pursuing an education in fields such as trained airframe and power plant mechanics.

SD adds Governor Research Centers

A new South Dakota Research & Innovation Center has been created to link university-based research and National Science Foundation research priorities. The new center reflects collaboration among researchers from offering — digital audio mesh. The product consists of freeform LED elements which are mounted over the speaker system, allowing sound to pass through uninhibited while providing full video capability in a space that would traditionally be unusable.

South Dakota State University, South Dakota School of Mines & Technology, the University of South Dakota and private-sector involvement from Avera Health and Sanford Health, according to the South Dakota Board of Regents. Researchers will use the center to investigate new disease resistant and more productive plants and methods to heal injuries and maintain human health.

Additionally, two new Governor Research Centers — Advanced Manufacturing Process Technology Transition and Training, and Composite and Nanocomposite Advanced Manufacturing — will be located on the SDSM&T campus. Centers were chosen based on strong industry relations with companies such as Raven Technologies, Falcon Plastics and RPM, as well as out-of-state companies such as aircraft component manufacturer MOOG.

Dickinson named top small town in US

Livability.com has named Dickinson, N.D., the Top Small Town in the U.S., based on its population and economic growth rate, employment trends, cost of living and other economic factors as well as quality of life. Brookings, S.D., ranked fifth on the Top 10 list. Alexandria, Minn., took seventh place.

Jamestown Regional Med Center partners with Sanford

Jamestown Regional Medical Center has partnered with Sanford Health to provide electronic health records (EHRs) for its patients and to pursue a plan to offer expanded services, including cancer care. JRMC, a 25-bed facility, will continue to operate as an independent, community-owned hospital.

ND leads nation in housing development

According to estimates from the U.S. Census, North Dakota’s housing development rate grew by 2.3 percent last year, more than any other state. The national average growth rate was just 0.3 percent. Williams and Ward counties, home to Williston and Minot, ranked first and second in the nation in terms of growth in new housing development.

More than 7,000 housing units were added in the state last year.

NCTC hires vp of academic, student affairs

Northland Community and Technical College has hired Carey Castle to serve as vice president of academic and student affairs. He is replacing Kent Hanson, who accepted the presidency at AnokaRamsey Community College and Anoka Technical College.

Castle has 12 years of progressive leadership experience in higher education and served 26 years in the United States Air Force. Prior to joining Northland, he was the associate vice president for education at Greenville Technical College in Greenville, S.C.

Dillman named to Interstate Engineering board

Travis Dillman has been named corporate secretary of Jamestown, N.D.-based Interstate Engineering’s board of directors. Dillman, a principal engineer, has worked at the company since 1997 and has expertise in the design and rehabilitation of streets, water, sewer and other infrastructure projects.

N.D. Guaranty & Title Co. selects new manager

Jessica Holcolm has been promoted to manager of North Dakota Guaranty & Title Co.’s Bismarck closing office. Tim Pearson, president of the company, appointed Holcolm to the role and said her extensive background in title and closing made her well-suited for the new position.

Godlewski to oversee Shingobee Builders Minn., ND projects

Loretto, Minn.-based Shingobee Builders Inc. has promoted Tony Godlewski to vice president in charge of the company’s St. Cloud, Minn., office, where he will oversee the project management team providing construction services in greater Minnesota and North Dakota. Godlewski has worked for 20 years as a project manager at the company and recently led its expansion into North Dakota, managing several commercial projects in the Bakken region.

Bremer Bank names Erickson to lead Fargo charter

Russ Erickson has been appointed president and CEO of Bremer Bank's Fargo charter. He will oversee all operations, staff and business at the bank's 10 North Dakota locations and its locations in Detroit Lakes, Moorhead and Perham, Minn. Erickson has worked at Bremer for 32 years, most recently serving as president and CEO of the Grand Forks charter.

Wells Fargo names Skaley business relationship manager

Curt Skaley has been named business relationship manager for Wells Fargo in Bismarck, N.D. In this role, he will work with business customers to help meet their commercial deposit, cash management and credit needs.

Skaley joined Wells Fargo in 2010 as a personal banker in Sturgis, S.D. In April 2012, he transferred to Bismarck as a business banking trainee.

The Minnesota Job Service team from the northwest/north central region has been named “Job Service Team of the Year” by the Minnesota Department of Employment & Economic Development.

The first-time award, announced at the June 13 Workforce Development Training in Rochester, Minn., recognizes the team that provides “outstanding service to job-seeking customers, exceptional returns to taxpayer dollars and a model of performance as a team.” It also recognized that the northwest/north central team "has functioned strongly and increased their effectiveness.”

Those honored include: Tim Qualley, Melody Gorden, Angele Hartell, (Bemidji), Steve Retzer (Detroit Lakes/Moorhead), Rick Schara and John Weisenberger (Fergus Falls) Sam Kuehl and Karen Wells (Alexandria), Trudi Amundson, Peter Svendsen, Jack Gagnon, Kris Henifin and Cathy Kliber (Brainerd), Jaclyn Brekken, Bonny Stechmann (Crookston/Thief River Falls).

NMF announces staff changes

Dave West, senior program officer of business finance at the Northwest Minnesota Foundation, has retired from the position and is being replaced by Diane Morey, who previously served as senior program officer – business development.

West began working for NMF, then the Northwest Initiative Fund, in 1990 and had an integral role in building its loan portfolio from three loans to a current portfolio valued at $20 million.

Amy Tobkin will move into Morey’s previous position. Tobkin had been serving as a business development specialist for NMF and will be replaced in that role by Phil Knutson. Knutson most recently worked as the development director for the Community Violence Intervention Center in Grand Forks, N.D.

Ruliffson joins Western State Bank

Brian Ruliffson has joined Western State Bank in Fargo as the real estate lending manager. His duties will include underwriting all secondary market real estate loans, management of secondary investors/vendors and supervision of loan processors. Prior to joining Western State Bank, Ruliffson served as an underwriter/real estate loan manager for Sacramento Credit Union in Sacramento, Calif. He is originally from Mapleton, N.D.