Prairie Business February 2017

PREMIER BUSINESS MAGAZINE OF THE NORTHERN PLAINS | FEBRUARY 2017

THE NEW NEIGHBORS DEVELOPMENTS IN SIOUX FALLS, SOUTH DAKOTA, MIX HOUSING, BUSINESSES

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INSIDE

DEPARTMENTS

FEBRUARY 2017 VOL 18 ISSUE 2

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BUSINESS

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SEE PAGE 30

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EDITOR’S NOTE FINANCE, DEVELOPMENT AND RECOGNITION

BY LISA GIBSON

Energy

BAKKEN 2.0: ‘THE BEST IS YET TO COME’

BY ROB LINDBERG

Health Care ND CONFERENCE OFFERS RESOURCES TO COPE WITH BRAIN INJURIES

BY NIKKI MASSMANN

FEATURES

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Human Resources

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18

BUSINESS INSIDER

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PRAIRIE NEWS

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Generation Next

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Mixing Retail and Residential BUSINESS, OFFICE SPACE AND HOUSING COME TOGETHER TO CREATE VILLAGE-LIKE DEVELOPMENTS

In the Books LEAVE OLD BUSINESS FINANCE MISTAKES BEHIND

ON THE COVER Raquel Blount, vice president of commercial real estate at Lloyd Cos. in Sioux Falls, South Dakota.

IMAGE: HOPE PETERSON, LLOYD COS.

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3 PRINCIPLES TO RECRUIT, RETAIN AND MOTIVATE EMPLOYEES

BY KRISCHELLE TENNESSEN

HUB OF DIVERSITY AND CULTURE KILBOURNE GROUP EXEC DISCUSSES DOWNTOWN FARGO REVITALIZATION

FOLLOWING HER PASSION NORTH DAKOTA STATE UNIVERSITY JUNIOR TURNS LOVE OF HEALTH CARE INTO CAREER

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INSIGHTS & INTUITION

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BY THE NUMBERS

prairie people

DEAN ANAGNOST

VISIT WWW.PRAIRIEBUSINESSMAGAZINE.COM TO SEE THESE AND OTHER NEW HIRES, PROMOTIONS AND AWARD WINNERS IN THE REGION.

TROY TOOZ

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WAS PROMOTED TO CEO OF KLJ IN BISMARCK, NORTH DAKOTA.

WAS PROMOTED TO PRESIDENT OF LJA IN FARGO.

FEBRUARY 2017 VOL 18 ISSUE 2

Finance, Development and Recognition

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e’re talking about taxes this month because it’s timely, but also because we know a few trusted sources with advice to share. With their help, we compiled a list of the biggest mistakes small and new business owners make on their taxes or in their finances. Our experts told us why these blunders are so common and offered alternatives for business owners who find themselves making them. Look for it on page 30.

We’re also touching on real estate in this issue and came upon an innovative and modern trend: integration of residential and commercial spaces. Younger generations want their amenities in their neighborhoods, not in a business district across town. Turn to page 26 for more details and to find out where the trend is catching on most quickly.

Once again, we feature an impressive college student in Generation Next. On page 34, you’ll read about a nursing student who discovered her passion for health care at an early age. She already has an impressive resumé to transition her into her career after she graduates in December.

And in Business Insider, we talk to an executive with Fargo’s Kilbourne Group about the many projects the company has in the works, as well as the importance of revitalizing Fargo’s downtown. That starts on page 18.

Last, make sure you pick up an issue of Prairie Business next month, when we announce the winners of the Top 25 Women in Business contest. It’s one of our mostread issues of the year and features inspiring people from all over our readership area.

Yes, we’re already working on our March content. With this ed note finished, February is officially all wrapped up. PB

PUBLISHER KORRIE WENZEL AD DIRECTOR STACI LORD EDITOR LISA GIBSON STAFF WRITER KAYLA PRASEK CIRCULATION MANAGER BETH BOHLMAN LAYOUT DESIGN, AD DESIGN SARA SLABY KRIS WOLFF ACCOUNT MANAGERS NICHOLE ERTMAN

800.477.6572 ext. 1162 nertman@prairiebusinessmagazine.com

GARRETT RICHIE

248.202.8955 grichie@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. 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.

SUBSCRIPTIONS Subscriptions are free

www.prairiebusinessmagazine.com

ADDRESS CORRECTIONS Prairie Business magazine Box 6008 Grand Forks, ND 58206-6008 Beth Bohlman:

bbohlman@prairiebusinessmagazine.com

ONLINE www.prairiebusinessmagazine.com

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Energy

FEBRUARY 2017 VOL 18 ISSUE 2

Bakken 2.0: ‘The Best is Yet to Come’

By Rob Lindberg

O

ver the past 12 months, I have had a favorite line I tell people who ask what’s happening in the Bakken. It is a combination of cheeky and honest: “We’ll be at $60 per barrel in six months and someday, I’ll be right.”

Of course, the latter qualifying statement was added after a year of misplaced confidence that a recovery was imminent, during which we watched prices slide again and again to levels unimaginable in 2014 and a bottom of only $26 per barrel.

While the line is meant to add humor to a tough period, it is paired with another message given with a cold seriousness. “This is not a bust and the best is yet to come.”

The North Dakota oil and gas industry has consistently been measured by its tax revenues and drilling rigs. Consequently, when rig counts fall to the 20s and falling tax revenues cause budget shortfalls, the public gets the impression that the industry has gone bust. The truth is much different. Though the industry kept its spot as the largest taxpayer, sending $3 billion to the state’s coffers in the 2015-2017 biennium, the industry continued to employ nearly 50,000 North Dakotans directly at an average salary of over $98,000 per year, keeping its spot as the top employer by headcount and pay in the state.

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Surviving the longest dip in oil markets made for a tough two years and those who survived hold a certain balance of luck, fortitude, talent and gratitude.

Yet, strangely, the industry and its people have only scratched the surface of what is to come. Bakken 2.0, that is.

In fact, the celebration of 1 million barrels of oil per day (bopd) might not be the only million mark the Bakken ever hits. The latest projections from the federal government’s Energy Information Administration say the Bakken will grow production to 1.3 million bopd by 2019 and to 2.3 million bopd by 2040. Local industry experts don’t doubt it. Companies operating in the Bakken have called it their No. 1 or No. 2 asset in the world as West Texas Intermediate prices cross $60 per barrel. (Other U.S. shale formations produce more gas along with their oil, giving another revenue stream during low oil prices.) The North Dakota Department of Mineral Resources also sees the production climbing to 1.5 million to 2 million bopd with recovered prices.

Whether maximum production is reached at 1.5 million or 2.3 million bopd, the industry will need to drill 50,000 to 90,000 new wells in addition to the 13,000 wells currently operating. It represents hundreds

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ENERGY

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of millions of dollars of investment and, more important, will double the employment base of the industry to 100,000 or more. Note, this is direct employment without consideration of the thousands of engineers, manufacturing workers, construction crews and more that service the industry. Today, the number stands around 20,000 for the 50,000 direct workers.

Most important, the promise of Bakken 2.0 means another generation of growth and opportunity. Unsurprisingly, most growth will occur around Bismarck and west (an area now with 46 percent of the state’s population), yet the opportunity will be statewide. The west will gain steady jobs servicing the wells and maintaining pipelines, while the east has nearly unlimited opportunity to grow its business presence in manufacturing, engineering, technology and finance.

Finally, Bakken 2.0 will come with more control. Many hope to see a booming economy, but few want The Boom repeated.

This time around, we’ll have the capacity to handle an influx of activity and workers.

The roads, apartments and hotels are built.

Our regulators are more prepared and will likely better their structures and processes through the session. The industry will better see where it is headed and will have more infrastructure — hopefully to include the Dakota Access Pipeline — to less expensively and more safely get product to market.

While these factors show a bright future for the industry’s growth, the success of its workers, and, yes, state tax revenues, no one truly knows how the future will unfold.

By this time next year, my prediction of $60 oil could be doubled or halved, the former granting my prediction at least one day of accuracy. PB

Rob Lindberg DIRECTOR, BAKKEN BACKERS 701.989.5432 RL@BACKTHEBAKKEN.ORG

Experience Does Matter

Lynda Neuhalfen Account Executive 36 Years

Kelly Burd Account Executive 32 Years

Heidi Cash Account Executive 30 Years

Bruce Vaaler CEO/President 31 Years

Shelley Korynta Account Executive 30 Years

Carrie Wilson Producer/VP Customer Service 30 Years

1.800.553.4291 - www.vaaler.com Grand Forks|Fargo|Bismarck|Minneapolis 13

HealthCare FEBRUARY 2017 VOL 18 ISSUE 2

ND Conference Offers Resources to Cope with Brain Injuries

By Nikki Massmann

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HE ALTH CARE

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Professional football players’ brain injuries and concussions often get national attention, but those injuries afflict people of all ages and professions. Each year in North Dakota, an estimated 3,693 individuals sustain a traumatic brain injury (TBI). More than 13,000 North Dakotans are currently living with a longterm disability from a TBI. TBIs are complicated and their effects can manifest in different ways in different people. Some will suffer from addiction, depression, or other mental health issues, and others will have trouble with fatigue, memory loss, speech, or any combination of a multitude of other issues. Often, a friend or family member will take on a caretaker role in their loved one’s life, driving them to appointments or helping them find resources for their specific needs.

The North Dakota Brain Injury Network (NDBIN), located at the Center for Rural Health at the University of North Dakota School of Medicine and Health Sciences, helps survivors of brain injuries and their families find resources including local support groups, job training opportunities and referrals to facilities and specialists. NDBIN’s resources have grown to include a lending library, a newsletter, an online resource directory of local services, and facilitation of the annual Mind Matters Conference.

In March, more than 100 health care professionals and brain injury survivors will gather for Mind Matters in Bismarck.

Attendees will hear about the latest advances and resources available in caring for individuals who have suffered from a brain injury. Keynote speakers have included physicians and specialists from the region and nation, in addition to well-known brain injury survivors like Olympic snowboarder Kevin Pearce and singer/songwriter Christabelle Braden. This year’s keynote speakers are physician and author Cheryle Sullivan and author, speaker and Paralympian Judy Siegle. For more information, visit www.ndbin.org.

The conference brings a personal element to the statistics and raises awareness of the issues TBI survivors face in getting the care and support they need for daily life. It serves as a forum for connecting TBI survivors with their peers, which is an important part of the support they need. PB

Nikki Massmann COMMUNICATION COORDINATOR, CENTER FOR RURAL HEALTH UNIVERSITY OF NORTH DAKOTA SCHOOL OF MEDICINE AND HEALTH SCIENCES, GRAND FORKS 701.777.4205 NICOLE.MASSMANN@MED.UND.EDU

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HumanResources FEBRUARY 2017 VOL 18 ISSUE 2

3 Principles to Recruit, Retain and Motivate Employees

By Krischelle Tennessen Among the most pressing issues facing company leaders today is the ability to attract, retain and motivate employees. We all know that companies need great people and people need great jobs, but today’s workforce expects more than that.

They want to be part of something meaningful.

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As the chief human resources officer of a company that’s more than 100 years old and is still family owned, I believe success in recruiting, retaining and motivating comes down to three key principles for company leaders: be authentic, be flexible and be transparent.

Authenticity is everything. Rather than “selling” the organization to potential employees, paint a real picture so people can determine for themselves if it’s the kind of company they want to join. People want to add value, and to be valued in return. The ability to be part of an environment where they can do that is one of the hooks that energizes them about joining and remaining at your company.

Authenticity is expressed in our organization in a variety of forms. It includes championing experts at all levels of the company, talking openly and honestly about the results of our annual employee survey and celebrating the hobbies and community activities our employees participate in outside of the workplace.

Be Flexible As the world changes, a company must change with it. That could include: adjusting the dress code so manufacturing staff and company leadership can both dress in casual attire; creating flexible schedules that allow employees to better manage family commitments; and finding fun, new ways to recognize employees. Being willing to change doesn’t mean you have to change your values. It makes you flexible.

In recent years, our company has introduced a “dress for your workday” dress code, flex time and work from home hours to

better accommodate employees’ lifestyles. We’ve found that with a bit of flexibility, employees are happier — with no change to productivity.

Be Transparent

HUMAN RESOURCES

Be Authentic

For me, culture is the heartbeat of the organization. That means finding ways to engage people’s hearts and minds.

Use surveys to determine how employees are feeling about the company and then probe more deeply to understand the results. Continually talk about the culture: what it looks like, what it feels like, your expectations and theirs. Celebrate those who are doing a great job of living the culture and showcase their efforts back to your organization.

By following these three principles, today’s company leaders can better attract, retain and motivate talented associates — and create a roadmap to success for everyone in the organization.

After all, a positively engaged workforce is critical to a company’s longevity and prosperity. PB

Krischelle Tennessen CHIEF HUMAN RESOURCES OFFICER THE MARVIN COS. WARROAD, MINNESOTA 800.346.5044 KRISCHELLET@MARVIN.COM

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BUSINESSINSIDER FEBRUARY 2017 VOL 18 ISSUE 2

Hub of Diversity and Culture

Kilbourne Group’s general manager says vibrant downtowns create healthy cities

Mike Allmendinger

Mike Allmendinger, general manager of Kilbourne Group in Fargo, stands near a parking ramp the group is building as part of a multi-use project that will house retail shops and apartments in downtown Fargo.

IMAGE: DAVE WALLIS/FORUM NEWS SERVICE

General Manager, Kilbourne Group | Fargo

A.

ARE THE LARGEST PROJECTS KILBOURNE Q. WHAT GROUP IS WORKING ON NOW IN FARGO?

Kilbourne Group is driven by respect for the past, gratitude for the present and inspiration for the future. Our current projects allow our team to live these values every day.

Roberts Commons is exciting to watch. The construction site is right outside our window at the Loretta Building so we have a front-row seat. This project is powered by a public-private partnership that will be done in four phases and includes 455 parking spaces, more than 200 apartments and room for at least 12 ground-floor businesses one block off Broadway.

The Woodrow Apartments are nearing completion. The new building has 63 units and is open for tours and ready to lease. The historic school is transforming into 34 one-of-a-kind residential units. The residents will share a courtyard, indoor gathering space, community grills and more. The next step is the construction of a new 2,500-square-foot, build-to-suit retail building on the southwest corner of the block.

The renovation of the Black Building is underway.

We’ve spent months working with the businesses in the building on continuity plans, in some cases moving them within the structure or finding them temporary alternate space downtown. The Black Building has been added

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to the National Registry of Historic Places and we’re honored to play a role in returning it to its rightful place in Fargo’s history as a destination unto itself. Our goal is for the Black Building to serve as an anchor of the downtown Fargo restaurant and retail districts and to celebrate local, authentic offerings and uniquely Fargo experiences.

We’re excited to turn over the first floor of 1213 NP to Prairie Roots Food Cooperative so it can begin its fit-up.

Prairie Roots represents the first new grocery store coming to the downtown neighborhood in over a decade.

We continue work on the new third-floor addition and exploring unique opportunities to bring new life to the adjoining historic stable building.

We’re grateful to be working with The Arts Partnership to create a two-year creative incubator in the building at 225 Fourth Ave. N. The project, named Apt, includes studio spaces, gallery walls and rental areas for arts workshops, classes, rehearsals, performances and more. Apt centralizes support and maximizes resources through creative sharing to provide a creative, collaborative and safe place for artists to make art and for the community to collide with it.

GOAL FOR KILBOURNE GROUP?

A.

BUSINES S INSIDER

IS REPURPOSING AND REVITALIZING SPACE IN Q. WHY FARGO’S DOWNTOWN AREA SUCH AN IMPORTANT

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Repurposing and revitalizing space in downtown Fargo is an important goal for Kilbourne Group because vibrant downtowns create smart, healthy cities. Through the thoughtful redesign of existing structures, as well as the activation of brownfields or vacant lots through infill development projects, we strengthen our city as a whole. Our commitment to mixeduse development supports an 18-hour city, driving activity and eyes on the street 18 hours a day. It allows you the option of walking to work, to errands, to appointments and to shopping and dining.

Data and studies show that historic redevelopment and urban infill create the highest return on investment for our community without burdening taxpayers. As we’ve lost density over the past decades in Fargo, we also lost economic efficiency. More land to maintain creates higher costs for the city. Our goal for downtown Fargo is to have smart, mixed-use development in the areas that have become uneconomical and underutilized.

Kilbourne Group is a catalyst for preserving Fargo’s heritage, culture and character, working to revitalize its urban core and economic vitality, and inspiring the future.

Fargo’s historic buildings are worth saving. They tell our story, honor our shared culture and provide unique spaces for experiences you can only have in Fargo.

ARE THE BIGGEST CHALLENGES YOU FACE, LEADING Q. WHAT A LARGE, INFLUENTIAL DEVELOPMENT COMPANY?

A.

Turning the herd. There are more government-funded incentives, outright and entitlement, for greenfield development, which has pulled investment away from urban cores. Kilbourne Group is an advocate for equal incentives for main streets and downtowns where infrastructure already exists.

For years, we have accommodated Fargo’s growth with a suburban style of development that requires heavy investment in infrastructure from our city governments, which are funded by our taxes. This type of development holds very little return on investment and, in fact, creates unfunded future liabilities that we all pay for. We believe infill is a valuable factor of our growth equation and provides a bigger spectrum of choices for people.

We look to the past for inspiration, to a time when cities like Fargo were designed as close-knit hubs of activity, allowing for people to conduct their daily lives with or without a car. Walkable, mixed-use development generates higher value and more in taxes to the general fund, costs less for the city, and, according to real estate trends, is proving to be a desirable environment. Kilbourne Group projects create new choices and options for where to live or locate your business.

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BUSINESSINSIDER FEBRUARY 2017 VOL 18 ISSUE 2

Mike Allmendinger, general manager of Kilbourne Group in Fargo.

IMAGE: DAVE WALLIS/FORUM NEWS SERVICE

Q. WHAT FACTORS HAVE LED KILBOURNE GROUP TO ITS LEVEL OF SUCCESS? A. At Kilbourne Group, we are redevelopers, realtors, designers and investors who are passionate about and dedicated to a thriving downtown Fargo. We are citizens working to make our home one of the world’s most vibrant communities. We are building on the hard work of all the business owners and longtime residents who have remained committed to and have invested in downtown Fargo through good times and bad.

We don’t think of downtown as a trend; rather it’s being revitalized and brought back on the local market as an option for those who desire to live in a more urban environment. It lacked significant capital investment from the private and public sectors for so long. The City of Fargo takes input from thousands of citizens to create intensive community plans. The 2012 GO2030 is the most recent comprehensive plan, and lays out priorities including mixed-use, walkable neighborhoods and infill. It guides our work as it illustrates what is desired by the community.

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North Dakota State University establishing a downtown campus was a catalyst for bringing thousands of students into downtown, which supports a growing commercial and residential district.

Our early success had much to do with the vision and leadership of our founder, Doug Burgum, and his commitment to changing the downtown Fargo economy in a way that makes it economically viable and worth it to save the historic buildings we still have and build on the lots where we’ve torn them down. He’s an incredible builder of teams and we are no exception. He has brought many people along on this journey who share the vision of a vibrant downtown Fargo and the risk tolerance to do something about it.

Today, downtown Fargo is a hub of activity, diversity and culture. Kilbourne Group is grateful to each and every person that has been part of the journey and revitalization of downtown Fargo.

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BUSINES S INSIDER

KILBOURNE GROUP HAVE Q. DOES PLANS TO EXPAND TO OTHER

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CITIES AND EMPLOY SIMILAR REVITALIZATION EFFORTS IN THOSE DOWNTOWN AREAS?

A.

The way Kilbourne Group is currently structured, we have committed to investing the capital in only the downtown Fargo neighborhood. If we are successful, and other communities want to apply our learning and formulas to their neighborhoods, we are very excited to share what we’ve learned and help revitalize more urban areas in the Midwest. PB

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PRAIRIENEWS FEBRUARY 2017 VOL 18 ISSUE 2

Midco activates service in downtown Fargo

By Kayla Prasek While winter weather has halted underground construction on Midco’s network infrastructure in Fargo, work has continued on the city’s overhead lines. Because of that continued progress, Midco was able to activate residential and business services in downtown Fargo in January.

Midco is bringing advanced internet and networking, cable TV and phone services to Fargo as part of a multi-year investment.

“It’s really exciting to see this progress and hear from people in town how they’re happy to have our services,” says Clay Stephens, senior director of regional operations. “So far, with 85 percent of the project complete, we’ve built out more than 2.2 million feet of underground line and turned on 233 power supplies to deliver services to Fargo residents and businesses.”

When the City of Fargo lifts its construction moratorium in the spring, Midco will finish building the last 255,000 feet of underground line to deliver its services to every residential address and most businesses in the city.

Midco expects to complete the entire Fargo construction project by Sept. 1, 2017.

“We could not have made the progress we’ve made today without the hard work and dedication of each team member and the cooperation of the City of Fargo engineering group,” says Erin Hayes, Midco’s director of corporate construction. “A project of this scale could be extremely intrusive. Everyone

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understanding their role and responsibilities has significantly reduced the impact to Fargo residents.”

As construction continues, Fargo is closer to having access to internet with speeds up to 35 times the national average. Midco chose the Fargo metro area as the first market to launch Midco Gig services in early 2017, with plans to expand gigabit internet across the entire service area.

“From personal devices and TVs to complex business networking services, the Fargo area needs a network that can meet the demands of today and the future, and Midco is delivering that infrastructure,” says Justin Forde, Midco’s director of public affairs. “That’s especially important in Fargo, where we’re happy to be a part of the unprecedented growth in this community.”

Work completed thus far in Fargo makes up nearly half of the $50 million Midco invested in North Dakota in 2016. Midco also expanded its operations center in West Fargo and expects to add more than 100 jobs in the next five years. PB

Clay Stephens

Erin Hayes

Justin Forde Kayla Prasek STAFF WRITER, PRAIRIE BUSINESS 701.780.1187 KPRASEK@PRAIRIEBUSINESSMAGAZINE.COM

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PRAIRIENEWS FEBRUARY 2017 VOL 18 ISSUE 2

Sanford Health to break ground on new Sioux Falls, South Dakota, clinic

The new wellness center will offer students the opportunity to work out on campus.

IMAGE: JERRY ANDERSON/UNIVERSITY OF MARY

University of Mary opens new fieldhouse and wellness center Prairie Business Staff Report IMAGE: SANFORD HEALTH

By Kayla Prasek Sanford Health will break ground on a new clinic this spring in western Sioux Falls, South Dakota, which will accommodate the city’s growing west side.

The 42,000-square-foot clinic will be located adjacent to the Sanford Welness Center Tea-Ellis Road location and is expected to be completed in fall 2018. The $21.6 million clinic will be designed by Koch Hazard and constructed

by Henry Carlson Co. The single story clinic will offer family medicine, pediatrics, obstetrics and gynecology, acute care services, mammography, behavioral health, occupational medicine, laboratory, radiology and home medical equipment.

“This new multi-specialty clinic will be a convenience for those in the growing west side of Sioux Falls,” says Paul Hanson, executive vice president of Sanford Health. “As Sioux Falls continues to grow, so does Sanford Health as we remain committed to easy access to care for all areas of the city.”

The clinic will have room for 24 providers and will include more than 50 exam rooms for family medicine, pediatrics and OB-GYN services as well as six procedure rooms. The clinic will also offer acute care services for evening and weekend hours, a convenient lab draw and imaging services location and access to mobile mammography services. Consult rooms will give patients a private location to meet with genetic counselors, integrated health therapists and health coaches, while a community room will also provide space for educational opportunities for patients and support groups.

“Along with the conveniences offered to patients at this new clinic, the facility will also be built so providers and staff members have maximum efficiencies,” Hanson says. “This all adds up to the best possible experience for patients.”

The clinic will also be adjacent to a new Lewis Drug retail store and pharmacy. PB

Kayla Prasek STAFF WRITER, PRAIRIE BUSINESS 701.780.1187 KPRASEK@PRAIRIEBUSINESSMAGAZINE.COM

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The University of Mary in Bismarck, North Dakota, kicked off its spring semester with the grand opening of its $10 million fieldhouse and wellness center.

The 80,000-square-foot facility is a two-level multi-purpose arena with four basketball courts, tennis, volleyball and racquetball courts, a 200meter track, rock climbing wall, state-of-the-art group fitness room and studios, coaches’ offices, team and day locker rooms, meeting rooms and a lounge.

“This is truly a result of a community effort, a statewide effort, where groups and friends of the University of Mary came together from start to finish, realizing the need for a state-ofthe-art facility that will be beneficial for all our students,” says Jerome Richter, vice president for the University of Mary’s Office of Public Affairs, in a statement.

This is the second of several major construction projects to be completed in phase one of a three-phased, $272 million Vision 2030 Capital Campaign at the university. Roers Hall, the first project completed in August 2016, is a 284-bed women’s residence hall.

The third project in phase one is the Lumen Vitae University Center, currently under construction and set to open in September. Once that project is finished, phase one will continue with the School of Engineering, which will be located on the north end of campus in the current University Hall building.

To date, the Vision 2030 Campaign has raised more than $57 million. PB

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REALESTATE FEBRUARY 2017 VOL 18 ISSUE 2

Dawley Farm Village started as a retail district, attracting national chains, but several housing projects are now in the works.

IMAGE: LLOYD COS.

The younger generation wants to be able to live, work and play in the same neighborhood –RAQUEL BLOUNT

VICE PRESIDENT OF COMMERCIAL REAL ESTATE LLOYD COS.

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Mixing Retail and Residential

Businesses and residences once lived in their own separate locations, but the younger generation seeks neighborhoods with all the services and amenities

BY KAYLA PRASEK As the younger generation grows its families and establishes itself in residential neighborhoods, cities like Sioux Falls, South Dakota, are seeing a shift in what those families demand of a residential development. Where there used to be a distinct split between residential neighborhoods and retail districts, Raquel Blount, vice president of commercial real estate at Lloyd Cos., says the past two to three years have seen more integration.

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“The younger generation wants to be able to live, work and play in the same neighborhood,” Blount says, and they don’t necessarily want to be in a city’s downtown. “They want those services in their residential neighborhoods.”

Two developments Lloyd Cos. has been working on for several years started as retail, but as both developments have become established parts of Sioux Falls, Lloyd and other developers have seen an increased interest in housing in the

RE AL ESTATE

Both Dawley Farm Village (pictured above and left) and Dakota Crossing in Sioux Falls, South Dakota, have drawn a mix of businesses that will provide an array of services to future residents.

IMAGES: LLOYD COS.

developments, creating mini communities within the city.

Dawley Farm Village is a 300-acre development anchored by Walmart and Target and a project Lloyd has been involved with since the beginning. “Walmart was the first sale from the Dawley Family Farm, and then Target wanted to be involved and that was the impetus to bring others,” Blount says.

With almost 20 existing businesses, development at Dawley Farm Village hasn’t slowed down, as a coffee shop, Petsmart

and a credit union are all preparing to open.

Lloyd is also working with a restaurant group for the development, and several housing projects are in the works as well. “We’re really creating that village component,” Blount says.

Lloyd Cos. is also working on the Dakota Crossing development in south Sioux Falls, which started three years ago with another Walmart. “Since that opening, we have closed on six outlots and are going to close on three acres of land adjacent to the development.”

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REALESTATE FEBRUARY 2017 VOL 18 ISSUE 2

Several strip malls have opened as well, providing more services to future housing projects in the development.

An arterial road goes through the development and feeds into smaller

When these types of developments are done correctly, you can have all the services within walking distance of your home.

surrounding communities, and Blount expects the development to become a regional shopping center. “Three years ago, this was all ag land, and now we have 90 acres in development,” Blount says.

A Growing Trend The city of Grand Forks saw its south end develop in a similar way to what’s happening now in Sioux Falls.

The first development was a high school, but once the mall and Target were built, commercial development followed, says Keith Lund, vice president of the Grand Forks Region Economic Development Corp. The commercial development preceded the residential development, but those neighborhoods were built as people decided they wanted to live closer to services they need, Lund says.

“When these types of developments are done correctly, you can have all the services within walking distance of your home,” Lund says. “They can be like mini versions of downtown, away from downtown.”

–KEITH LUND

VICE PRESIDENT GRAND FORKS REGION ECONOMIC DEVELOPMENT CORP

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Walmart and Target proved to be the major draw for other retailers at Dawley Farm Village in Sioux Falls, similar to how development transpired in Grand Forks.

IMAGE: LLOYD COS.

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Development Association, says he continues to see “a very high level of interest in restaurant and retail.” Hay Creek Shops is a commercial development in a growing part of the city that could someday see housing develop around it.

At the same time, Ritter says building permits and home sales are up in the city, but as more businesses open in Bismarck, he expects to see more housing developments come to fruition as well. PB

RE AL ESTATE

Lund says there has also been a trend of housing being built near workplaces. “They’re a more intentional, self-contained, mixed-use development that helps make the move to a new city more attractive. It creates a sense of vibrancy.”

While the Grand Forks EDC hasn’t pushed this type of development, as its current focus is on the city’s downtown, Lund says there is more opportunity for new developments to have these features and the city’s current zoning supports it.

In Bismarck, North Dakota, the city hasn’t seen this type of development thus far, aside from the occasional mixed-use building, but there is the potential for it. Brian Ritter, president and CEO of the Bismarck-Mandan

Kayla Prasek STAFF WRITER, PRAIRIE BUSINESS 701.780.1187 KPRASEK@PRAIRIEBUSINESSMAGAZINE.COM

Interest in housing around both Dawley Farm Village and Dakota Crossing continues to increase, with no slowdown in sight for retail growth, according to Lloyd Cos. IMAGES: LLOYD COS.

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TAXES&FINANCE FEBRUARY 2017 VOL 18 ISSUE 2

Donna Remer OWNER REMER ACCOUNTING PC GRAND FORKS

Kayce Halley TAX PARTNER EIDE BAILLY FARGO

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In the Books

Tax experts share the most common mistakes they see small or new business owners make. Leave these old, harmful practices in the past for a healthier business

BY LISA GIBSON Kayce Halley, tax partner at Eide Bailly in Fargo, and Donna Remer, owner of Remer Accounting PC in Grand Forks, have worked with a multitude of businesses in the region on taxes and financial planning. They’ve seen it all and we asked them to tell us some of the most common mistakes small and new business owners make.

Here’s what they said.

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DO NOT:

Start a Business with Inadequate Capitalization Business owners who don’t have the necessary capital to start their companies sometimes end up using credit cards and digging themselves into deep debt, Remer says. It’s the No. 1 mistake she sees new business owners make. Make sure adequate funding is available to get the company off the ground before diving in.

Let Tax Savings Override Good Business Decisions

Ignore Finances Entrepreneurs often start their businesses because they have a passion or talent. Sometimes that doesn’t come with a strong business sense, Remer says. But it’s important to keep a focus on finances, taking note of where the business is strong and leveraging those aspects of the operation, she says.

The business will fare much better with an eye on those crucial topics.

Halley says small business owners often ask what they need to buy or spend before the end of the year to reduce their tax liability. She and Remer agree that spending money on business expenses at the end of the year is not always a great idea. Plan ahead, Remer advises, and make sure the expense is a good business decision and a good use of the money.

“It likely does not make sense for the business to spend money on equipment that is not currently needed in order to save tax dollars,” Halley says.

Commingle Personal and Business Funds From a legal perspective, this “pierces the corporate veil” and costs the business its corporate liability protection, Remer says.

Halley says, “It is important not to intermingle business and personal activities to ensure that business income and deductions can be segregated from personal items.” And keep proper records of business income and expenses, she adds.

Make Decisions Without Consulting an Accountant or Attorney Want to buy out a partner? Fine. But make sure the proper steps are taken to prepare.

“You’re no longer a partnership,” Remer says.

“You’re a sole proprietor and that’s a different business entity.”

Adding payroll benefits? Tell the accountant or payroll provider. Keep them in the loop.

Wait Until the Last Minute “There is very little tax planning that can be done once a year has closed as compared to the array of planning opportunities that can be accomplished in November or December of the taxable year,” Halley says. Year-end tax planning also will assist in cash flow planning to satisfy a projected tax liability.

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DO NOT:

Fail to Pay Adequate Owner/Officer Salaries “The IRS may take issue when a business owner or officer is paying himself or herself too much or too little,” Halley says. Business owners should document why their salary wage level is reasonable in accordance with their market, experience, business investment and services performed.

Misclassify Employees as Independent Contractors “This has been a hot-topic item for the past several years,” Halley says. If an employee is misclassified as an independent contractor, a small business is at risk for employment taxes — for both the employee and employer — plus interest and penalty related to the compensation of the misclassified employee.

On a related note, Remer points out that it’s important to make sure diligence is paid to reporting on employees and services rendered across state or international borders.

It’s particularly important to remember in communities close to state borders, such as Grand Forks and East Grand Forks, Minnesota, or Fargo and Moorhead, Minnesota.

“You can’t just cross the river and do business over there and not report it,” Remer says.

Ensure proper tax reporting is done for employees who might live across borders, too.

Overlook Retirement Planning Many business owners do not set up retirement savings plans, assuming selling their business will provide them with the retirement funds they need when the time comes.

That’s a risky prediction, Remer says. Selling a business can be more difficult than expected and if it doesn’t sell, the retiring owner is left with nothing. PB

Lisa Gibson EDITOR, PRAIRIE BUSINESS 701.787.6753 LGIBSON@PRAIRIEBUSINESSMAGAZINE.COM

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GenerationNEXT FEBRUARY 2017 VOL 18 ISSUE 2

Following Her

Passion 34

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BY KAYLA PRASEK

GENERATION NE X T

Mattie McGee-Anderson JUNIOR, NORTH DAKOTA STATE UNIVERSITY, FARGO MAJOR: NURSING

Education Before Mattie McGee-Anderson graduated from Bowman County High School in Bowman, North Dakota, in 2013, she had already gained considerable experience in health care, which led her to North Dakota State University’s nursing program. “I had some personal experiences with some really good nurses who showed me the type of nurse I wanted to be,” McGeeAnderson says.

She worked her way up to being a nurse, working as a dietary aide, a certified nursing assistant (CNA) and emergency medical responder through high school. “I realized I like to connect with my patients and advocate for them,” McGee-Anderson says.

“Being in the hospital is a vulnerable time, and it’s a privilege to care for them.”

McGee-Anderson chose NDSU because “the campus felt like home, the nursing instructors were friendly and the nursing program was competitive but nationally ranked.” She knew she’d be able to make plenty of connections during her time as a student at NDSU as well. She is vice president of the College of Health Professions Ambassadors, is a member of the Saddle and Sirloin Club, is a Bison Tour Guide and serves on the board of NDSU’s Student Nurses Association.

Success McGee-Anderson was named NDSU School of Nursing’s Student Nurse of the Year for the 2016-17 academic year. Student Nurse of the Year candidates are nominated by faculty and fellow students vote for the top three candidates. Professionals in the community make the final selection after an interview process.

“Knowing I was even a nominee felt good to know my hard work was recognized by my professors,” McGee-Anderson says.

“When I found out I had been chosen as Student Nurse of the

Year, it was very humbling. It’s hard to put into words. So many of my classmates deserve this, so I feel lucky to have the chance to represent NDSU nursing.”

Career McGee-Anderson hasn’t chosen a specific area she’d like to work in once she graduates in December. She says she has liked all of her clinical rotations so far, but has always enjoyed the emergency department and neonatal intensive care unit the most. Wherever she ends up, she knows she’s found a career field she’s passionate about.

“In high school, I started as a dietary aide at the nursing home in town,” McGee-Anderson says. “Then I realized I loved interacting with the residents and became a CNA. I loved getting to experience different areas of health care, so I took an emergency responder course and worked as a volunteer on our ambulance squad.” While at NDSU, McGee-Anderson has worked as a CNA at Sanford Medical Center on the medicalsurgical floor, volunteered in Sanford’s NICU and emergency department, and has worked at a child care center.

Job Market “I’m in the first spring-start nursing class at NDSU, so at first we were worried about what employment would look like when we graduate in December,” McGee-Anderson says. “Our instructors have assured us that’ll be a time when health care facilities are seeing a lull in applicants, so it’ll be a good time to get hired.”

McGee-Anderson says that she knows there are a lot of nursing job openings right now, and her class is busy filling out applications for internships and co-ops. “We’ve had nursing graduates come talk to us, and a lot of them have talked about how they either received job offers after internships or applied for jobs while they were still in school and were hired before even taking their boards.”

While McGee-Anderson is confident in finding a job in the Fargo area, her husband is in the military so there’s no guarantee she’ll be staying in North Dakota after she graduates. “I know if I move, there will be jobs, but I don’t know how many are out there.” PB

Kayla Prasek STAFF WRITER, PRAIRIE BUSINESS 701.780.1187 KPRASEK@PRAIRIEBUSINESSMAGAZINE.COM

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Insights&Intuition FEBRUARY 2017 VOL 18 ISSUE 2

INSIGHTs & INTUITION

Q.

What does your company do to encourage employee volunteerism and community involvement?

At Otter Tail Power Co., we recognize that our success is connected to the success of the communities we serve. That’s why we lend financial support to a variety of organizations in the areas where our customers and employees live and work.

Employees play a key role in directing our giving efforts through a program called The Power of Two. This program rewards projects and organizations employees directly support. When an employee volunteers at least 24 hours of personal time during the calendar year to a nonprofit organization, the company makes a $100 donation to that organization.

Sister Mariah Dietz VICE PRESIDENT OF MISSION INTEGRATION CHI ST. ALEXIUS HEALTH BISMARCK, NORTH DAKOTA

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VICE PRESIDENT OF PUBLIC RELATIONS OTTER TAIL POWER CO. FERGUS FALLS, MINNESOTA

Believing that the desire to serve others is already planted deep within us by a loving God, CHI St. Alexius Health, guided by our mission to “receive all as Christ,” invites our associates to participate in a variety of options for service — everything from preparing meals for the homeless, providing warm clothes for those in need, painting houses for the Day of Caring, to providing support for victims of domestic violence. We encourage one another to serve because in that act of generosity, we celebrate Jesus’ presence among us.

Digi-Key Electronics highly values community engagement, as does its 3,400 employees. Digi-Key Cares is a company outreach program that encourages employees to volunteer hours at any one of several local charities during or after work hours. This program also oversees dozens of fundraising events each year that are facilitated by employees for those charities. Also, Digi-Key supports grassroots fundraising that is done by employees for their fellow co-workers and their families who are going through difficult personal challenges. These fundraisers include bake/craft sales and benefit lunches.

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Cris Oehler

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Rick Trontvet VICE PRESIDENT OF ADMINISTRATION AND HUMAN RESOURCES DIGI-KEY ELECTRONICS THIEF RIVER FALLS, MINNESOTA

INSIGHTS & INTUITION

Community involvement is a core principle of the Blue Hawk family at Dickinson State University. Our students participate in service-learning and volunteer opportunities to give back to the community while also becoming lifelong learners. Our employees serve on leadership boards, volunteer at community-wide events, and share the DSU story as a reminder of our commitment to the community. DSU recently implemented the Blue Hawk Bond and Courageous Conversations, two community building initiatives designed to foster a caring, celebrative, disciplined, just, open and purposeful community. At DSU, we take pride in our mission of serving the region, and consider community involvement a salient component.

Hope Sisk PUBLIC RELATIONS SPECIALIST ODNEY BISMARCK, NORTH DAKOTA

Melanie Tucker VICE PRESIDENT OF STUDENT AFFAIRS AND ENROLLMENT MANAGEMENT DICKINSON STATE UNIVERSITY DICKINSON, NORTH DAKOTA

Our Odney employees are more than talented advertisers, artists and communicators. We’re passionate people. We look for volunteering opportunities that foster our creativity. Ask a graphic designer to design a T-shirt for the United Way and a dozen employees volunteer their time out of pride and support. Put an account manager in charge of coat drive collections and her organizational skills will translate to a warmer winter.

Play to your team’s talents and volunteering isn’t much of a chore at all, but a passion project.

Invest in your community and your community will invest in you.

At First International Bank & Trust, we are a diverse organization set in a multiworksite environment across three states ranging in size from smaller rural locations to large major metropolitan U.S. cities. As such, we place our emphasis on employee volunteerism and community service at a localized level, empowering employees in those locations to donate their time and resources to community and charitable causes that are meaningful in their own locations or to them personally. We stand behind our commitment to community at FIB&T and dedicated one of our six core values to the community cause. Whether it is through company-wide sponsored community events or through more personal, individualized volunteerism, our employees are encouraged to give back to their communities in a way that provides the best benefit to the people they seek to serve while also bringing personal fulfillment to those who choose to volunteer their time and resources.

Michelle Herrly DIRECTOR OF HUMAN RESOURCES AND LEARNING & DEVELOPMENT FIRST INTERNATIONAL BANK & TRUST FARGO

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INTERNATIONAL TRADE

FEBRUARY 2017 VOL 18 ISSUE 2

South dakota

Noncurrent Loans (90 days or more past due)

Soybean oilcake & oth solid residue, wh/not g Meat, swine, hams, shldrs, bone in, frsh or c

2014

Prepared or preserved bovine meat etc. nesoi Coniferous wood sawn, sliced etc, over 6 mm t

3.0 MN 2.5

ND

2.0

PERCENT

EXPORT IMPORT

Brewing or distilling dregs & waste, w/nt p Soybean oilcake & oth solid residue, wh/not g

2015

SD

Prepared or preserved bovine meat etc. nesoi Pipe, oil line etc ov16in ir or steel

0

0.5

100

150

200

1.5

1.0

Crude oil from petroleum and bituminous miner Lt oils, preps gt=70% petroleum/bitum nt biod

2014

0.5

0.0

2014 (Q4)

2015 (Q3)

Low erucic acid rape/colza seeds w/not broken Plat wst a scrp nt cntng oth prec mtls

2016 (Q3)

Crude oil from petroleum and bituminous miner Mech front-end shovel loaders, self-propelled

2015

Population

Compression-igntn int combustion piston eng Anhydrous ammonia

0

6

SD

5

IN MILLIONS AS OF JULY 1

EXPORT IMPORT

north dakota

MN

3

2011 2012

2013 2014

2015 2016

2000

2015

Med needles, nesoi, catherers etc and parts e Civilian aircraft, engines, and parts Crude oil from petroleum and bituminous miner Tricycle, scooter, pedal car & sim wheeled tys

0

2500

EXPORT IMPORT

2014

1 2010

1500

Med needles, nesoi, catherers etc and parts e Civilian aircraft, engines, and parts Crude oil from petroleum and bituminous miner Tricycle, scooter, pedal car & sim wheeled tys

2

0

1000

MINNESOTA

ND

4

500

1000 2000 3000 4000 5000 6000 7000 8000

Job Gains and Losses (Q1) JOB GAINS

JOB LOSSES

12

10

SD

SD

ND

ND

MN

8

MN

8

PERCENT

PERCENT

10

6

6

4

38

2010

2011 2012

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2013

2014

2015

2016

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2011 2012 2013

2014

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