Prairie Business June 2014

The Frontier of UAS Education

NCTC leads the nation in UAS technolog y pg. 28

ALSO

Suppor ting the Great Build- out Construc tion suppliers race to keep pace with regional building boom pg. 30

Designing a Better Life

Landscape architec ts focus on quality of life improvements for clients, communities pg. 38

Caterpillar’s drivetrain remanufacturing facility in North Dakota is tripling in size and adding jobs, helping to keep Cat machinery moving worldwide. Learn how the North Dakota Department of Commerce and companies in the state are doing business better at www.NDBusiness.com

Photo cour tesy of Caterpillar Inc.

28 HIGHER EDUCATION The Frontier of UAS Education

NCTC leads the nation in UAS technolog y

30 CONSTRUCTION Supporting the Great Build-out

Construction suppliers race to keep pace w ith regional building boom

38 ARCHITECTURE Designing a Better Life

Landscape architects focus on quality of life improvements for clients, communities

EVENTS

Symposium on Small Towns .........................................................................................................June 4-5 Morris, Minn. ................................................................Information: morris.umn.edu/cst/symposium/

State of Manufacturing

June 13

Fergus Falls, Minn. .......Information: enterpriseminnesota.org/state-of-manufacturing/greater-mn-events/

Export Awareness Workshop

June 17

Rapid City, S D Information: export gov/southdakota/

South Dakota Governor’s Workforce Summit

June 17

Sioux Falls, S D Information: southdakotawins com/workforcesummits/

South Dakota Governor’s Agricultural Summit ................................................................June 26 & 27

Deadwood, S D Information: sdagsummit com/default aspx

Jon Beck, unmanned aerial systems (UAS) program manager at Northland Community and Technical College, brings years of military UAS experience to the leading-edge program

PHOTO: MATTHEW BRENDEN, NORTHLAND COMMUNITY AND TECHNICAL COLLEGE

Rooftop gardens such as the Sky Prairie at Fargo’s Hotel Donaldson, are growing in popularity throughout the region. PHOTO: LAND ELEMENTS

We believe in simplicit y.

We believe in set ting the bar even higher.

We believe in doing what we say.

Thank you for believing in us.

Celebrating three years of different.

KRIS BEVILL Editor

Quality is key

Quality of life” has become the hot buzz phrase throughout the northern Plains as businesses and communities race to roll out their red carpets for newcomers. By now, our area has become synonymous with nearly nonexistent unemployment rates and strong economies, but it also struggles against the stigma of cold winters and isolated communities. So while the prospect of a good paying job in a stable community is attractive, potential new residents often need more than a job offer to make them want to live here, and forward-thinking community and business leaders have become increasingly focused on quality of life improvements to make the region more attractive to newcomers, as well as existing residents.

For “Designing a Better Life,” we talked to landscape architects in the region who are doing their part to improve the quality of life for communities through thoughtful, allencompassing design. I think readers may be as surprised as I was to learn the extent to which the concept of “quality of life” plays in landscape architecture and the long-lasting impact those projects have on that purpose Ever y part of landscape architecture is meant to enhance and improve a space environmentally, functionally and aesthetically the result of which is a place where memories are made. We need more of these spaces in our communities if we are to attract and retain the talent we need to support our strong economies, and landscape architects are eager to help fill the need

Our cover photo this month showcases Northland Community and Technical College’s unmanned aerial systems (UAS) program. The UAS industr y is considered to be the frontier of aviation and our region truly is at the forefront of the frontier, fitting for an area settled years ago by pioneers willing to take chances on new opportunities Several years ago, NCTC became the first college in the U.S. to offer UAS maintenance training (the University of North Dakota was the first to offer UAS pilot training) and the school has continued to expand its UAS training offerings to meet the emerging demand for skilled workers in the industr y. This month, the Red River Valley Research Corridor will host the 8th annual UAS Summit in Grand Forks, N.D., where industr y stakeholders from around the world are expected to come together to discuss the specifics of launching the industr y via applications in a number of sectors, including agriculture and energy, and our region has expertise in ever y targeted sector in addition to higher education. Read “The Frontier of UAS Education” to learn more about NCTC ’ s programs and where UAS training is headed next

Collaboration and team effort are also on display in this issue’s Talk of the Town, which spotlights beautiful Bemidji, Minn. The lakeside city has developed an enviable entrepreneurial community and continues to come up with new ideas to foster growth and encourage new ventures When other communities are just beginning to roll out long-term entrepreneurial support plans and workforce recruitment and retention strategies, Bemidji is already doing it. Business and community leaders are working in sync to meet their goals and say that’s the reason for Bemidji’s healthy rate of activity and anticipated continued growth and innovation Read “In it together” for more

KORRIE WENZEL, Publisher

RONA JOHNSON, Executive Editor

KRIS BEVILL, Editor

BETH BOHLMAN, Circulation Director

KRIS WOLFF, Layout Design, Ad Design

Sales Director: JOHN FETSCH

701 212 1026 jfetsch@prairiebizmag com

Sales:

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Editor: KRIS BEVILL

701 306 8561 kbevill@prairiebizmag com

Editorial Advisors:

Dwaine Chapel, Executive Director, Research Park at South Dakota State University; Bruce Gjovig, Director, Center for Innovation; Lisa Gulland-Nelson, Vice President, Marketing and PR , Greater Fargo Moorhead EDC; Tonya Joe

(T.J.) Hansen, Assistant Professor of Economics, Minnesota State University Moorhead; Dusty Johnson, Chief of Staff for South Dakota Gov Dennis Daugaard’s office; Brekka Kramer, General Manager of Odney; Matthew Mohr, President/CEO, Dacotah Paper Company; Nancy Straw, President, West Central Initiative

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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Grand Forks, ND 58206-6008

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Return on investment

BY MATTHEW D. MOHR

When an individual places money at risk in any venture, the person expects to get his/her investment back plus an additional amount for taking on the risk What is a fair return is subject to debate U.S. Treasury bills (loans to the federal government) are usually considered the least risky type of investment Historically, the Treasury has provided returns below those earned over time on common stock, corporate bonds, real estate and other more risky investments. With such a wide variety of investments available, why do people invest in a private business?

Entrepreneurs are generally motivated by a purpose to serve, not just their financial return on investment Venture capitalists own businesses to garner above-average returns for themselves, not necessarily for any altruistic reasons. In my opinion, a reasonable target for venture capital return on investment is 25 percent Others say 45 percent is more appropriate As a private business owner,

MANAGEMENT MATTERS|

achieving 25 or 45 percent return on an investment year after year is probably unlikely, but certainly a positive return every year should be expected

Rents on agricultural land in the region range from about 2 percent to 8 percent of value. The risk of owning land is through taxes, pollution, natural disaster and payment issues The individual renting the land faces greater risks through the cost of planting and tending the crops. As a result of the added risk, the renter expects a much larger return on investment, and great returns over time generally are achieved by the renter-entrepreneur

Determining what is a fair return on an investment for a private enterprise is subject to a lot of factors, and business owners will want to decide for themselves what will meet their individual objectives PB

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

I, Robot ... One more time

BY JOHN GIRARD

Imagine if you could replace your workforce with an army of robots. Be honest, whether you are a Baby Boomer who grew up watching the Jetsons or a Generation X who played with Transformers, robots have always been an intriguing idea Since Isaac Asimov’s short stories appeared in 1950, generations of business leaders have been fantasizing of the day when robots would replace humans in the workplace Almost like clockwork, ever y few years, new reports suggest the “robots are coming.”

Once again we find a number of pundits making this prediction The catalyst of the latest craze may have been Amazon’s murmuration on the delivery of unmanned aerial vehicles (UAVs) Next came the claim that savvy business leaders could cut expenditures by using robots at a fraction of the cost of humans pennies on the dollar, the robot enthusiasts prophesied to their followers.

As exciting as this proposition may sound, real

“ savvy ” business leaders understand the true cost of replacing humans with machines. It sounds a little like the promise of lower prices when we offshored manufacturing to China How much are we willing to pay for lower prices? Perhaps the time has come for us to consider investing in manufacturing jobs for people those people who live, work and contribute to our communities rather than chasing the dream of eliminating all humans from our operations. Maybe the time is right to modify Asimov’s fourth or so-called zeroth law of robotics to: A robot may not harm humanity, or, by inaction, allow humanity to come to harm (especially by taking high-paying blue-collar American jobs). PB

John Girard Professor of Management, Minot State University Founder, Sagology John@JohnGirard net Twitter: @JohnGirard

Volunteer to grow America’s economy

BY MATT VARILEK

SCORE and the U.S. Smal l Business Administration Region VIII have launched an initiative to attract more volunteer mentors with business experience to expand small business counseling and t r aining throug hout the upp er Midwest region

For 50 years, SCORE volunteers have shared their expertise with up-and-coming small business people across the country In partnership with the SBA, these volunteers have contributed to a stronger economy and small business successes in industries from retailing to manufacturing and everything in between. According to a PricewaterhouseCoopers survey, SCORE assisted clients that started 38,630 new businesses and created more than 67,000 jobs in our national economy in the past year – a remarkable achievement for an organization comprised almost entirely of volunteers

Becoming a SCORE mentor means joining an active national community of 11,000 volunteers who are committed to helping small business owners succeed SCORE volunteers come from sectors and professions including small and large businesses, the military and higher education

Often our clients ask finance-related questions, such as: How can I improve my cash flow? How can I boost my chances of obtaining a SBA loan? How do I best prepare financial statements?

John Postovit, one of our leading SCORE members in Fargo says, “Go to the local lender that partners with SBA. The lender will decide on how best to proceed with an SBA loan application ” To help determine which lenders to approach, SCORE provides a listing of banks and credit unions who have participated with SBA along with the number of loans they serviced in the last fiscal year

John indicated that one of the first questions many clients ask is, “My credit is not that good. How do I improve my situation to get the funding I need for my business?”

I asked him how he responded and he said that it depended on how ambitious the financing proposal was “If they do not need much money, they can generally shore up their equity position through gifts or loans from family or friends,” he says. “Nontraditional funding sources such as micro loans or crowd funding may be another alternative ”

SCORE mentors also help them to organize their strategy in “preparing to access capital ” They offer a guide that focuses around the 5 Cs of credit capital, collateral, capacity, character and conditions. Clients are offered some basics in how to effectively prepare for and meet a lender They also receive a loan proposal outline that provides guidance on alternative funding sources, especially if traditional funding is difficult to secure.

Occasionally new entrepreneurs just need moral support, or introductions to our network of specific industry experts We address these needs with unbiased guidance based on our own experience all on a confidential basis and at no cost to the recipient

Volunteering of any kind provides valuable benefits not only for the recipient, but also for the volunteer. With SCORE, our volunteers take pride in knowing they’re building a stronger economy and creating more opportunity for hard-working families

Maybe you ’ re already an experienced volunteer. Or maybe no one has ever asked you to volunteer before Well, today we ’ re asking: Join SCORE and use your experience to build a stronger community. To mark the 50th anniversary of SCORE, we ’ ve adopted the ambitious goal of helping 1 million new businesses to get started, one at a time, by 2017 You can help us get there.

For more information on how to become a SCORE mentor, please visit www score org/volunteer or call the local SBA office in your state. PB

Matt Varilek SBA Regional Administrator, Region VIII Matthew.varilek@sba.gov

INTEGRATION AND COMMERCIALIZATION ON THE NORTHERN PLAINS

JUNE 25 & 26

REGISTER AT THERESEARCHCORRIDOR.COM/UAS SUMMIT2014

A GLOBAL DESTINATION FOR THE UAS INDUSTRY

What many thought would takes years is now upon us with the growing use of unmanned systems in civil and commercial markets – and the pending announcement of six national test sites. With increased use of UAS by law enforcement and first responders and growing interest, new applications and research being conducted by precision agriculture, transportation, infrastructure and planning agencies, the future is indeed here.

Join North Dakota Senators John Hoeven and Heidi Heitkamp the Red River Valley Research Corridor in Grand Forks, North Dakota June 25 & 26 for the 8th Annual UAS Action Summit as we explore where the UAS industry is now and the potential it has in the future The 2014 UAS Summit is being co-hosted by Northern Plains UAS Test Site Authority and the ND Dept of Commerce, U S Senators John Hoeven and Heidi Heitkamp, Red River Valley Research Corridor, and the City of Grand Forks.

Hear from unmanned systems experts from federal agencies, universities and civil and commercial entities as they identify current and future unmanned system applications and solutions. Interface and network with presenters, industry experts, vendors and new partners during this fast-paced two day industry event.

Speaker Session Topics Include:

• Airspace Integration Strategies

• Northern Plains UAS Test Site Briefing

• Commercial Applications in Precision Ag

• Civil Applications in Law Enforcement

• UAS Flight Demos

• Privacy and Ethics Exploration

• Energy Industry - Monitoring Assets (pipelines, transmission, operations)

• International Collaboration

Featured Speakers: Michael Toscano, President of the Association for Unmanned Vehicle Systems International (AUVSI) North Dakota Governor Jack Dalrymple

Bob Becklund, Executive Director of Northern Plains Unmanned Systems Test Site

U S Senator John Hoeven

U S Senator Heidi Heitkamp

HONORARY CO -HOSTS U S SENATORS JOHN HOEVEN & HEIDI HEITKAMP

Research impacts everyday life

BY KELLY RUSCH

Whether you ’ re a business owner or a consumer, research impacts us ever y day At North Dakota State University, we strive for research that contributes to the lives of citizens in the region, fulfilling our land-grant mission

A study by EMSI showed net economic impact of NDSU research at $74.8 million annually. Licensing and royalties based on NDSU research discoveries reached a record $2 17 million Earnings effects from start-up companies sprouting from NDSU research total $3 million.

While numbers provide quantifiable results, the impact of NDSU research extends further

Perhaps your agribusiness benefits from four of the top five hard red spring wheat varieties developed through research at NDSU and the North Dakota Agricultural Experiment Station Varieties of spring wheat developed by NDSU and its partners were planted on nearly 53 percent of the acres in North Dakota in 2013 Nine of the top 10 durum varieties developed at NDSU accounted for more than 92 percent of these acres planted in the state last year. Or maybe your agribusiness depends on potatoes, flax, barley, oats or soybeans developed through NDSU research In livestock operations, NDSU research helps to maximize production and mitigate disease

Potentially, your crop byproducts might be used by North Dakota-based startup company c2renew, which arose from NDSU research focused on turning agricultural waste into biocomposite plastics

If oil development affects you, NDSU research on population projections, law enforcement needs and soil conservation provides community leaders with planning tools amidst unprecedented growth If you ’ re in energy or agriculture, unmanned aerial systems research at NDSU may benefit your business.

You may know someone in the military who may benefit from NDSU research Projects include radio

frequency identification to track assets, sensors to secure perimeter defenses, and antimicrobial tent fabric for field hospitals

In the future, someone with cancer may benefit from pharmaceutical research at NDSU investigating less toxic ways to treat tumors Or you may know someone who could benefit from NDSU research on how nutrition during pregnancy may affect an offspring’s chance of developing breast cancer in later life

Maybe you ’ re a boater or conservationist dealing with zebra mussels in area lakes who may benefit from coatings research at NDSU Or a gardener who has planted varieties of oaks, ash, and other materials developed through NDSU horticultural research.

Through research, NDSU students learn teamwork, critical thinking, and communication skills desired by your business Students can explore their entrepreneurial passions through research. For example, Streeter, N D , native Erin Nyren-Erickson received her doctorate degree in pharmaceutical sciences, master’s degree in business administration and bachelor’s degree in biotechnology from NDSU. While a student, she worked in NDSU research labs Nyren-Erickson licensed a technology she helped develop while at NDSU. This tool provides a faster, more sensitive and cost-effective method to test the blood-thinning drug heparin for contaminants Her biotech business and lab are now launched in NDSU’s Research and Technology Park.

University research opportunities play a role in shaping the future of students and the communities in which we live. How will research benefit you? PB

Kelly Rusch

Vice President for Research and Creative Activity North Dakota State University

Kelly Rusch@ndsu edu Twitter: @NDSU

NORTH DAKOTA STATE COLLEGE OF SCIENCE

WAHPETON | FARGO | ONLINE 800-342-4325 ndscs.edu

/ndscs @ndscswildcats /ndscs /ndscswildcats

GOED offers training to local partners

BY PAT COSTELLO

One of the best things about working in economic development is working with and getting to know our local counterparts around the state These hardworking individuals are constantly looking to better their communities a goal that is wholeheartedly shared by the state economic development office

And as a state organization, we often take a leadership role on many of the collaborative efforts we share with the local economic development organizations whether it is a RFI (request for information) from a prospective company, another recruitment effort such as a trade show, or a retention and expansion project

To help aid these processes, the South Dakota Governor’s Office of Economic Development is offering several training courses throughout 2014 Our objective is to get all involved parties up to speed so that when requests come in, the process runs smoothly and we are able to work together to present South Dakota in the best light possible

Among the offerings: GOED Over v iew for New Economic Practitioners:

Although we say that this course is for new practitioners, it is also open to veteran developers, board members and other interested individuals The session covers business development resources, data resources, current campaigns and cooperative opportunities, as well as an overview of the structure of the state office

The first session was held in March, but there are three more sessions remaining: June 10, Sept. 9 and Dec. 9. All remaining sessions will be held at our Pierre office

RFI Training:

When companies request information on our state, we want to be ready Our RFI Training session covers the processes we use at the GOED to respond to these requests Local economic developers will learn how their communities can take part to present the most accurate, up-to-date information to these prospects in a timely fashion

One more session of this course remains and will be held June 11 in Watertown

Looking back, we have already conducted the following courses and/or sessions this year: Workforce Development, Business Succession Planning, the Governor’s Economic Development Conference, and Building South Dakota Fund: Business Finance Programs. We will continually work to anticipate the needs of our local partners and businesses, and offer training as the need and feasibility arises

If you would like more information on any of our training opportunities, have suggestions, or would like to see another session of a course added, please contact our office at 605-773-3301 or visit www.sdreadytopartner.com. PB

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

Pat

Costello@state sd us

Twitter: @sdgoed

ND hotel room inventory exceeds 25,000

More than 6,000 hotel rooms were added in North Dakota from 2010 through 2013, increasing the total number of hotel rooms in the state to more than 25,000, according to the Destination Marketing Association of North Dakota. Half of the 79 hotel projects in the state since 2010 have been associated with a major national hotel chain.

The increase in hotel rooms has meant travelers should now be able to find available rooms throughout the state, according to the group The hotel occupancy rate through 2013 was 66 percent, down 7 percent from 2012 but still higher than the national average of 63 9 percent

Grand Forks Sleep Inn wins hospitality award

The Sleep Inn and Suites hotel of Grand Forks, N.D., is a recipient of Choice Hotels International Inc ’ s 2014 Platinum Hospitality award The hotel is a top performer among the company ’ s more than 5,100 U.S. franchised hotels and has demonstrated an exceptional focus on guest satisfaction and dedication to providing superior service, according to Choice Hotels.

The Sleep Inn is managed by Grand Forksbased Northridge Hospitality Management, which also operates Sleep Inn and Suites hotels in Bismarck, Fargo and Devils Lake, N.D. The company recently opened a Comfort Inn and Suites in Sioux Falls, S D , and has taken over management duties at the Comfort Inn in Dickinson, N.D. It is also building a Sleep Inn and Suites in Rochester, Minn , and a Sleep Inn/Mainstay in Lincoln, Neb

SD frac sand search comes up empty

A recently completed 16-month study conducted of sand from western South Dakota con-

cluded that the sand does not meet specifications recommended by the American Petroleum Institute for use in hydraulic fracturing

The study, conducted by the South Dakota Department of Environment and Natural Resources, was prompted by the high demand for sand that can be used as proppant in hydraulic fracturing operations in the Williston Basin.

The study included the evaluation of 256 samples, 26 of which were submitted by private mine operators. Complete results are available at sdgs usd edu/pubs/pdf/ogi-05 pdf

NJ firm finances Killdeer industrial park

Kennedy Funding a New Jersey-based bridge loan firm, recently completed a $2.4 million loan to Mirriah Lender LLC to develop a 96acre industrial property in Killdeer, N D , known as Mirriah Business Park. The company bought the property for $1 7 million last year after obtaining a zoning change from agricultural to commercial-industrial. Kennedy Funding says two of the park’s lots are already under contract.

“The value of this property is, in a word,

‘oil,’” Kennedy Funding CEO Kevin Wolfer says. In a news release, he noted that there are real estate shortages in all sectors of the Bakken region and the Killdeer property “is clearly poised to take advantage of that need ”

Fargo-based office furniture dealer expands

Hannaher’s Inc., a Fargo-based office furniture dealer, has expanded to include a location in Detroit Lakes, Minn The company also owns Gaffaney’s of Grand Forks, N D

“The Detroit Lakes location will allow us to better serve our many customers and showcase our products to the region,” says Paul Hannaher, company president. “Our showroom will serve not only as a model for potential clients, but a real commitment to growth in this emerging region ”

CHS, Fessenden Co-op to build fertilizer warehouse

CHS Inc. and the Fessenden (N.D.) Cooperative Association have formed a 50-50 joint venture to build and operate a fertilizer warehouse at Hamberg, N.D. Construction of

the facility, which will have a 28,000-ton storage capacity and product blending capabilities, is expected to begin this summer and be complete by next fall The facility will serve the cooperative’s farmer-owners and nearby CHS wholesale customers.

CHS and the cooperative also collaborated last year to build a greenfield grain shuttle loading facility on the BNSF rail line at Hamberg.

AE2S opens Dickinson office

Advanced Engineering and Environmental Services Inc (AE2S) recently opened an office in the newly renovated 101-year-old Elks Building in downtown Dickinson, N.D. From this location, the firm is providing civil engineering services to North Dakota cities including Killdeer, Watford City, Williston, Richardton and New Town in addition to working on a variety of other projects throughout the surrounding area

Deon Stockert, the firm’s Dickinson operations manager, says the firm has been providing services in the area since before the most recent oil boom and has grown along with Dickinson and the region. “There’s so much going on right now due to the oil industry and the development associated with it,” he says “The firm has been steadily adding staff over the past few years, just to keep up with demand.”

Valley Imports Volkswagen named top Midwest dealer

Valley Impor ts Volkswagen in Fargo has b e e n n a m e d t h e M i d w e s t re g i o n ’ s To p Volume Select Dealer for 2013. It is the seco n d co n s e c u t i ve ye a r t h e d e a l e r s h i p h a s received the honor

Twenty-one dealers in the Midwest region compete for the award, which is based on total retail sales and population base Valley Imports sold 223 new Volkswagens in 2013, edging out the second place finisher, Mikan Volkswagen of Butler, Penn , by just three units

PolyOne CEO donates to SDSMT wellness center

Construction has begun on an $8.9 million student wellness and recreation center at the South Dakota School of Mines and Technology Stephen Newlin, chairman, president and CEO of Polyone Corp. and SDSMT alumni, contributed $2 million for the project, which is expected to be complete by April 2015 The remainder of the project cost is being funded through a student-approved increase in fees. The

Minnesota State University Moorhead is an equal oppor tunity educator and employer and is a member of the Minnesota State Colleges and Universities System.

NDSCS, Komatsu partner for diesel tech program

North Dakota State College of Science in Wahpeton, N D , has partnered with Komatsu America Corp to add a Komatsu-specific program to the school’s diesel technology department. The program will launch in August and will provide students with training on Komatsu construction equipment and related products through a combination of classroom

Stephen D. Newlin Family Student Wellness and Recreation Center will provide more than 34,000 square feet of new or remodeled space and will include two basketball courts, a group fitness room, a rock climbing wall and other amenities.

Marco named small, mid-size business partner of year

Cisco recently named Marco Inc its 2013 Central Area Small to Medium Business Partner of the Year The award was presented in honor of the company ’ s leadership position in implementing unified communications and cloud networking systems amongst other Cisco technologies, according to the company Cisco also recognized Marco for creating custom processes designed to help scale resources, extend sales reach and contribute to its growth

Amity Technology, Dakota MEP receive export awards

Amity Technology, a Fargo-based manufacturer of agriculture machiner y, was named

From left: Barbara Bang, North Dakota State College of Science dean of technologies and services division; John Richman, NDSCS president; Terry Marohl, NDSCS diesel technology department chair; Donald Shilling, General Equipment and Supplies Inc. president; Mike Hayes, Komatsu North America director service marketing and distributor development; Mike Mencel, Road Machinery and Supplies Co. vice president product support.

instruction, hands-on lab instruction and cooperative educational work experience at participating Komatsu dealerships, such as General Equipment and Supplies Inc. and Road Machinery and Supplies Co. The program will be housed in the college’s recently expanded Bisek Hall.

North Dakota’s 2013 Exporter of the Year during the Global Business Awards ceremony held April 29 in Fargo The ceremony was held in conjunction with the annual Global Business Connections conference hosted by the North Dakota Trade Office The annual award recognizes a business for its expansion to a new international market, increased export sales and support of the statewide effort to expand North Dakota’s global reach Amity Technology was founded by Howard and Brian Dahl, grandsons of Melroe Co. founder E G Melroe, and manufactures the WIC Sugar Beet Equipment line Amity has exported more than $300 million in products to more than 25 markets around the world in the last decade Dakota MEP, a nonprofit group focused on helping North Dakota companies improve business results through continuous development, received the 2013 Service to Exporters award Dakota MEP was launched in 2001 and is an affiliate of the U S Department of Commerce National Institute of

Standards and Technology Manufacturing Extension Partnership

SDSMT, RESPEC launch shale research initiative

The South Dakota School of Mines and Technology and RESPEC, a Rapid City, S Dbased engineering consulting firm, have launched a shale research initiative focused on a range of energy and environment-specific experiments, including enhanced energy production, carbon dioxide sequestration, underground hydrocarbon storage and waste disposal in shale. The state-funded initiative will begin with a feasibility assessment of what would be the nation’s first underground shale research laboratory

The project is being led by SDSMT research scientist William Roggenthen and Lance Roberts, RESPEC senior vice president In a news release, Roberts says the collaboration will position South Dakota as a leader in deep underground storage and disposal in shale

PHOTO: DOUG WOLF

Representatives from the Minnesota Department of Employment and Economic Development join city leaders and executives of India-based Axis Clinicals to celebrate the company’s expansion to Dilworth, Minn

India-based clinical trials firm expands to Dilworth

City leaders and representatives from the Minnesota Department of Employment and Economic Development recently joined executives from Indiabased Axis Clinicals in Dilworth, Minn , to honor the company ’ s commitment to establish a facility there The company is investing $12 million to convert a former Wal-Mart into an operations facility that is expected to eventually employ 100 people MN DEED financed $1 million through its Minnesota Investment Fund and has agreed to provide up to $800,000 in additional grant money through its Job Creation Fund. In late April, the company said it expected to begin conducting some clinical studies in May and would become fully operational in June

Axis Clinicals CEO Dr Yati Chugh said the company selected Dilworth for its expansion project in part due to the area ’ s skilled workforce Dilworth has a population of about 4,000 and is located on the eastern edge of the Fargo-Moorhead metro.

Bismarck tech startup scores $500K angel investment

CoSchedule, a Bismarck, N D -based social media and blog publishing platform, recently closed a $500,000 angel investment led by Sandin Holdings and Bullinger Enterprises of Fargo, N.D. Matching funds were provided by the North Dakota Development Fund

CoSchedule is the first social media editorial calendar built exclusively for WordPress Company co-founders Garrett Moon and Justin Walsh says they plan to use the funding for marketing, new hires and to build out the service before scaling more widely.

USD med school expands MD class size

The University of South Dakota Sanford School of Medicine will expand its class size beginning this fall. The expansion is an effort to meet the needs of an aging state population and increasing demands placed on health care providers under the Affordable Care Act, according to the school.

Currently, 56 students are admitted to the M D program annually Eleven students will be added per class during the next four years.

KLJ opens Twin Cities office

Bismarck-based engineering, surveying and planning firm KLJ has expanded to the Twin Cities with the establishment of an office in St. Paul, Minn The firm’s initial focus in the Twin Cities market will be on transportation

Applied Engineering acquires Quiet Waters Engineering

Applied Engineering, a regional firm with offices in Fargo, N D , and Bismarck, N D ; Sioux Falls, S.D.; Brooklyn Park, Minn.; Eau Claire, Wis.; and Addison Texas, has acquired Ottertail, Minn -based Quiet Waters Engineering QWE was owned by Rhonda Menze, who took over company operations in 2013 following the death of her husband and company founder, Adam Menze Applied Engineering plans to create a legacy award to honor Adam Menze and his contributions to the mechanical engineering profession

Wahpeton company offers Bakken tour

Wahpeton, N.D.-based World Class Tours LLC has launched an Oilfield Educational Tour, a

three-day, two-night tour meant to provide a firsthand, factual perspective of the Bakken region to business professionals, local leaders, educators and other interested parties, according to the company. The initial tour is scheduled for June 3-5 and is expected to include networking opportunities with attendees as well as special guest speakers. For more information, visit wctours net

Choice Financial recognized as top performer

Grafton, N.D.-based Choice Financial earned the top place in SNL Financial’s ranking of top-performing community banks of 2013 with assets between $500 million and $5 billion The bank, with 14 locations in North Dakota and one in Minnesota, recorded double-digit loan growth in 2013, bolstered by its end-of-year acquisition of Belfield, N.D.-based Great Plains National Bank.

Choice Financial ranked 35th in SNL’s 2012 ranking

SBA names Atchison ND small business person of year

Dean Atchison, president and CEO of Fargobased Spectrum Aeromed, has been selected as the U S Small Business Administration’s 2014 North Dakota Small Business Person of the Year The award is given in recognition of exceptional business owners who demonstrate entrepreneurial spirit in starting and growing a successful business

Spectrum Aeromed, a designer and manufacturer of custom air medical and air ambulance equipment, was purchased by Atchison in mid2007 Since the first full year of his ownership, the company ’ s sales have increased 164 percent and the number of units sold has more than tripled. The business was moved from rural Minnesota to Fargo and has increased its staff to 26 full-time employees and seven part-time employees.

McFarland named SD small business person of year

Ryan McFarland, founder and CEO of Rapid City, S.D.-based Strider Sports International Inc., has been named the U.S. Small Business Administration’s 2014 South Dakota Small Business Person of the Year

McFarland formed Strider Sports in 2007. The company designs patented no-pedal balance bikes for use by children as young as 18 months and distributes its products worldwide To promote its product, the company has created and grown a series of Strider riding events and competitions since its launch, evolving to include a Strider World Championship Racing event which attracts toddler participants from around the world every year

AE2S names Boe business development director

Andrea Boe has been named business development director of AE2S Water Solutions, AE2S Industrial and AE2S Construction All are affiliated companies of Advanced Engineering and Environmental Services Inc. (AE2S), where Boe has served as marketing manager for more than 17 years

In her new role, she is responsible for directing sales, marketing and client relationship activities for the three affiliated companies, focusing heavily on design/build water projects for oil producers and industries in North Dakota’s Bakken region

In March, Boe was named one of Prairie Business magazine’s top 25 women in business for 2014

Gregg named St. Alexius human resources VP

St Alexius Medical Center in Bismarck, N D , has named Tom Gregg vice president of human resources In this role, he is responsible for providing leadership in developing and executing human resources strategy in support of the overall business plan and strategic direction of the medical center, specifically in the areas of succession planning, talent management, change management, organizational and performance management, training and development, compensation and benefits

Gregg has more than 36 years of human resources and physician medical practice experience. He most recently served as the interim president/CEO and vice president of human resources at St Peter’s Hospital

Blackhurst named MSUM president

Anne Blackhurst has been appointed president of Minnesota State University Moorhead, effective July 1. She succeeds Edna Szymanski, who has served as MSUM president since 2008 and is retiring in June

Blackhurst has served as provost and senior vice president of academic affairs at MSUM since 2011 Prior to that, she served in various roles at Minnesota State University, Mankato, including professor and chair of the department of counseling and student personnel, interim dean and dean of graduate studies and research and, most recently, acting vice president for academic and student affairs. She holds a bachelor’s degree in economics from Boise State University, a master’s degree in counseling from the College of Idaho and a doctorate in college student personnel from Ohio University.

First Bank & Trust promotes Toy

Michael Toy has been named chief operating and strategy officer at First International Bank & Trust in Fargo Toy joined the bank in 2007 and served most recently as the chief operations and chief information officer. In his new role, Toy will continue to fulfill the role of COO with a greater emphasis placed on bank-wide strategic initiatives

Dean Atchison Tom Gregg

Ryan McFarland

Andrea Boe

Anne Blackhurst

Michael Toy

Severson Entrepreneurship Academy BR ANCHING INTO TH E BAKKEN

New enhancements are on the horizon for Minot State University’s Severson Entrepreneurship Academy An expansion will empower entrepreneurs and regional business leaders to discover new opportunities in North Dakota’s booming Bakken region.

The expansion will work in two parts

study and research, which will be disseminated into the business community and be retained in an incubator for use by future students, businesses and entrepreneurs

“We will do a study that involves business faculty and students as researchers,” said Chuck Barney, Severson Entrepreneurship Academy director. “We will create a survey instrument It will be broken down by type of business, whether an extraction company, oil service company or drilling company That will also be sorted by what phase of development the company is in within the maturity process of

as a resource for businesses and entrepreneurs to employ when putting together business plans or investigating business opportunities within

The second part of the process involves an incubator Data collected through the research process will be kept in a data repository and technology incubator It will provide data for area businesses, students, faculty and staff exploring business opportunities in the Bakken It will also be used to teach current and future students and to develop online entrepreneurial opportunities. The repository will be housed in a classroom redesigned as a technology center in the College of Business.

“That involves software development, Internet, apps, websites and e-commerce,” Barney explained. “We are already talking to a number of people in the community as well as students who have ideas of what they want to develop as a business, and this will be a platform to create the business.

If you consider the business opportunities in this area right now, they are basically oil development and value-added ag. While a lot of people are already doing value-added ag, that’s not in a boom cycle, but energy is in a boom cycle This is a great opportunity for the College of Business to study the business aspects of what happens in a boom ”

In addition to the expanded services and projects, student scholarships will

also be provided

Academy and who plan future careers as entrepreneurs. This expansion of the Severson Entrepreneurship Academy is made possible by a $500,000 gift from Clint Severson ’73 and Conni Ahart along with a $250,000 grant from the North Dakota Higher Education Challenge Fund.

Schulte named Sturgis Regional Hospital CEO

Mark Schulte has been named CEO of Sturgis (S D ) Regional Hospital He replaces Van Hyde, who recently retired after serving as CEO for 10 years

Schulte previously served as CEO of Avera Creighton Hospital in Creighton, Neb., where he oversaw the hospital, a 47-bed skilled nursing facility and two clinics

Hambrick joins Cornerstone Bank

Jim Hambrick has joined Fargo-based Cornerstone Bank as a senior vice president/business banker. In this role, he is responsible for managing existing and generating new business banking relationships He is also responsible for the cash management sales for the bank

Hambrick has more than 26 years of experience in the financial services industr y in the Fargo metro He currently serves on the board of directors for the North Dakota State University Team Makers, the Red River Valley Chapter of the Red Cross and the Plains Art Museum

Eide Bailly promotes Sornsin

Joseph Sornsin has been promoted to systems engineer at Eide Bailly LLP. In this role, he is responsible for providing advanced level, end-user service support and technical business consulting while delivering on assigned tasks regarding work station and network operation systems

Sornsin joined Eide Bailly in 2012 with more than four years of IT experience He is currently pursuing a management information systems degree at North Dakota State University in Fargo

Regional Health CEO announces retirement

Dr. Charles Hart, president and CEO of Rapid City, S D -based Regional Health, has announced his retirement He has been associated with Regional Health and Rapid City Regional Hospital for 31 years. He joined RCRH as an emergency department physician in 1983 and has since served in a variety of leadership positions at the hospital.

He was Regional Health’s first president and CEO, a position he has held for a decade Under his leadership, the organization has grown to include 48 facilities throughout western South Dakota and northern Wyoming and about 4,900 employees

Hart will continue to lead the organization until his successor is in place. Regional Health has set a goal of filling the position by January

Edgewood Group hires finance, business development director

Wayne Zink has been named executive vice president/director of finance and business development for Edgewood Group LLC. In this role, Zink will lead Edgewood’s development company on turn-key development solutions He will also identify expansion opportunities at current facilities and new properties in markets supported by the strategic initiatives of the group ’ s board of directors

Zink has spent 26 years in the banking profession with a focus on commercial, commercial real estate and development financing Prior to joining Edgewood Group, he served as market president of Choice Financial in Grand Forks, N.D.

ND Chamber honors Starion Financial founder

Frank Larson, founder of Starion Financial, was presented with the Greater North Dakotan award from the Greater North Dakota Chamber during the group ’ s Governor’s Business Forum, held April 15 in Grand Forks, N D The award is the group ’ s highest honor and is given in recognition of the recipient’s business and philanthropic impact on the state.

Larson and his wife, JoAndrea, purchased First National Bank of Oakes (N.D.) in 1969. One year later they purchased a bank in Ellendale, N D In 1989, the business expanded to Mandan and, four years later, to Bismarck In 2003, the business name was changed to Starion Financial The bank continued to expand, adding locations in Madison, Wis., in 2006, the Fargo metro in 2008 and Bottineau, Dunseith and Rolla, N.D., in 2011.

Larson serves on the board of directors for the Theodore Roosevelt Medora Foundation and the Bank of North Dakota He holds an honorary degree in philanthropy from the University of Mary His family has also established community foundations in Oakes, Ellendale, Bismarck and Mandan to support community advancement projects.

Frank Larson

Wayne Zink

Mark Schulte

Charles Hart

Joseph Sornsin

Jim Hambrick

On the edge

Border city businesses face unique challenges

BY KRIS BEVILL

North Dakota’s prosperity is a benefit for ever yone in the region, including bordering Minnesota cities, says Chuck Chadwick, executive director of the Moorhead Business Association.

“We see it as an opportunity,” he says “We want [North Dakota] to be successful and continue to utilize their natural resources. With that being said we want the border cities of East Grand Forks, Moorhead, Breckenridge and Dilworth to share in those good times There are some challenges [but] it’s making us even better because it’s bringing some issues to the front and we are working through those things ”

Specifically, Chadwick says North Dakota’s current financial advantage over Minnesota is “pretty overwhelming ” Lower property taxes and fewer regulations in North Dakota can put Minnesota business owners at a disadvantage, but Chadwick says legislation created specifically to help alleviate the financial differences in border communities helps to even the playing field.

“Minnesota does recognize the issue and is doing the best it can, ” he says

The Disparity Reduction Credit applies to the four Minnesota cities along North Dakota’s eastern border and allows homeowners and businesses to

apply for a variety of property tax credits with the goal of eliminating property tax disparities and encouraging thriving business economies Les Stenerson, president of Stenerson Lumber and president of the Moorhead Business Association, says the program does help and retaining it through future years will be key to the continued growth of border town business sectors. “We need to make sure that [the program] stays as good as it is and that we can even grow it as the disparity grows, ” he says While the challenges facing Minnesota’s border communities are numerous, there are also some advantages depending upon location and industry In Moorhead, the most prominent advantage compared to neighboring Fargo is extensive flood protection, something which is lacking on the other side of the river “Moorhead is high and dry and we ’ re proud of that,” Stenerson says “We spent $90 million to protect our city from floods and that’s something we should be proud of ”

Moorhead has also recently attracted several multimillion dollar projects, including a Sam’s Club and cutting-edge Sanford Health clinic as well as notable residential development on the city’s south side, which Chadwick says should inspire confidence among the city’s business community. He adds, however, that while the association welcomes

Moorhead, Minn.’s Main Avenue bustles with weekday lunch hour traffic

new businesses to the city, it was created about five years ago to support Moorhead’s existing businesses and that will continue to be its primary focus

“We are not opposed to new business of course, but as in many communities, the existing business community tends to be forgotten and taken for granted,” Chadwick says “Our aim is to change that and develop a voice for the business community in the city.”

Stenerson Lumber has been doing business in Moorhead since 1942 and Stenerson agrees that the city’s business community was fragmented until recently “We were a lot of businesses in a town that didn’t work together and didn’t know each other,” he says. “We’re making huge strides w ith that.” Weekly networking oppor tunities bring business leaders together and concer ted efforts led by the association help to keep local legislators in tune with the needs of the business community, he says

The group hopes to also increase connections with other border city business leaders to make even more clear to the state the unique needs of border town businesses

But while the bordering communities may be at a slight disadvantage to their North Dakota neighbors, both Chadwick and Stenerson stress that the differences are not that many and are far outnumbered by shared interests For example, about 60 percent of Moorhead’s residents cross the Red River to work in North Dakota every day, so the city clearly benefits directly from North Dakota’s success, Chadwick says

But Moorhead would also like to grow its own base and promote its own unique identity no easy task for a community sitting in the shadow of North Dakota’s largest (and quickly growing) city. “We do not want to be like Fargo,” Chadwick says “That is not our goal Our goal is to be like Moorhead, Minn. We are a unique community with unique shops and people. We have lots of opportunities and a lot of advantages We just need to have those better communicated ” PB

Kris Bevill Editor, Prairie Business 701-306-8561, kbevill@prairiebizmag com

The Frontier of UAS Education

NC TC leads the nation in UAS technology

BY KRIS BEVILL

Students at Northland Community and Technical College’s unmanned aerial systems (UAS) maintenance training program learn UAS-specific maintenance concepts and operations. It is the only nationally certified program of its type in the U.S. PHOTO: NORTHLAND COMMUNITY AND TECHNICAL COLLEGE

Space may be “the final frontier,” for aviation exploration, but here on Earth, unmanned aircraft systems (UAS) represent the new aviation frontier for many industries Over the next few years, as rules for the aircraft are finalized by the Federal Aviation Administration, the UAS industr y is expected to rapidly advance as sectors including energy and agriculture are allowed to begin exploring the real potential of this technology, primarily at six federal UAS test sites, where research and development hubs will be established for testing and product development by public and private institutions.

At the front of that pack will be the northern Plains, anchored by the Grand Forks, N D , test site and supported by a network of unmatched expertise that extends west to Devils Lake, N.D., south to Fargo, N.D., and east to Thief River Falls, Minn , where aviation maintenance training has been a mainstay for more than 50 years and UAS maintenance training has already been a successful part of the school’s curriculum for several years.

“I definitely think this is an area that has been well ahead of the power curve, looking at different opportunities well in advance of a lot of other areas and the ways we can address those through the college and university system to develop the programs that we know are going to be in high demand in coming years, ” says Jon Beck, UAS program manager at Northland Community and Technical College in Thief River Falls “UND (University of North Dakota) was the first university to offer a UAS pilot certificate program. We were the first on the maintenance side. Now, in the last year and a half, you ’ re starting to see colleges across the country start to offer different courses for UAS foundation classes, pilot certificates, maintenance certificates. So you ’ re seeing a lot of the academic side starting to follow suit and realize how big this industry is going to be and the importance of proper education and training for the technicians who are going to be utilizing these things ”

NCTC began pursuing support to provide UAS maintenance training in 2010 After securing a nearly $5 million U.S. Department of Labor grant, the college launched its UAS maintenance technician program in 2011, becoming the first in the nation to offer that type of training. It is currently the only nationally certified UAS maintenance training program in the U.S. and boasts program enrollment of about 19 students from all over the country

In 2011, the college recognized further opportunity to provide specialized training for the emerging UAS industry and secured a $4 7 million Department of Labor grant to develop a geospatial intelligence program, which includes imagery analysis (IA) training. That program launched in January 2013 and provides imagery analysis training using computers, full-motion video and still imagery, as well as training for data analysis, open source and dissemination techniques to provide the student with skills needed to perform a variety of analyst activities

About 56 students are currently enrolled in the geospatial intelligence program, bringing the total number of students receiving UAS-related training at NCTC this spring to about 75

Beck says temporary tuition waivers for the maintenance and IA programs, made possible by the labor department grants increased student interest in the programs, but interest is expected to continue to be strong after the tuition waiver ends (the UAS maintenance tuition waiver ended last summer and will end this fall for the IA program) as career opportunities continue to expand along with the industry.

Precision agriculture is expected to be among the first industries to commercialize UAS and education institutions and industry in the northern Plains are primed to lead the implementation Beck says NCTC is already working with many of Minnesota’s commodity grower groups as well as implement dealers that recognize the potential for small UAS to be used in agriculture and will need UAS technicians such as those produced at NCTC who understand the principles of imagery and can help develop more usable farm management products. “That’s definitely one of the big placement opportunities,” he says

This summer, NCTC will conduct a data collection project in Roseau County using hand-launched UAS devices developed by Mankato, Minn.-based Farm Intelligence UAS maintenance students will work on the equipment used in the project and will get to see how the equipment is used in precision ag while IA and geospatial intelligence students will help interpret the collected data A certificate of authorization from the FAA needed to be obtained before the college could conduct the project, a process which took two years to complete.

Other higher education institutions in the area are also working on precision ag-related UAS projects, and Beck says he hopes to continue collaborating with colleges and universities to share knowledge gained from those endeavors “I think there will be a tremendous amount of area to work together on these different projects that we have going on around small UAS and precision agriculture,” he says “I don’t think anyone has all the answers right now [or] the solution for what that impact is going to be.”

That collaborative nature has been fostered for years between NCTC and UND as they have implemented complimentary UAS training programs and it will likely continue as the schools work to meet the overall workforce needs of an emerging industry, from pilots to maintenance technicians and data analysts “We kind of cover the whole gamut of the new positions that are beginning to be developed,” Beck says. “As companies are looking at commercialization of UAS, which is just going to increase those opportunities, we continue to work with them very closely so that we ’ ve got one voice and one solution to answer all of those needs that are being created as we speak ” PB

Kris Bevill Editor, Prairie Business 701-306-8561, kbevill@prairiebizmag com

Supporting the Great Build-out

Construc tion suppliers race to keep pace with regional building boom

BY ROB SWENSON

Prairie Supply Inc.’s outlet in Bismarck, N.D., is among the construction-supply businesses in the northern Plains that expects a busy building season

“I’ve been with the company four years Each year gets busier and busier,” says Kurt Schirado, branch manager for the Prairie Supply store in Bismarck. “We’re just trying to keep up ”

To help serve the growing demand for its construction supplies in the region, Prairie Supply is building a new facility to house its branch in the state capital. Concrete has been poured, and exterior walls of the metal building are up Schirado hopes to move the store into the approximately 30,000-square-foot facility within a year without disrupting regular business operations

The oil-production boom in western North Dakota has increased demand for the concrete-related construction supplies, which is a specialty of Prairie Supply stores, Schirado says However, demand for construction supplies also is running high in Fargo and other cities in eastern North Dakota, he says. Prairie Supply is based in West Fargo In addition to Bismarck, the company has branches in the North Dakota cities of Grand Forks, Minot and Williston

The biggest concern of many construction-supply managers in North Dakota, South Dakota and Minnesota, including Schirado, is the labor supply. Businesses throughout the region are having trouble finding as many good, skilled workers as they would like

“I haven’t heard a lot about supply shortages of products. Where we hear the

shortage is people. It’s labor,” says Russ Hanson, executive vice president of the Associated General Contractors of North Dakota “Everybody has the same concern They’re short of help ”

The AGC is a trade organization based in Bismarck that represents builders and suppliers other than home builders in the commercial construction industry

Despite labor challenges, Hanson expects members and associate members of the AGC in North Dakota to have an especially busy year.

“We’re hoping that Mother Nature will allow us a nice, long construction season, ” he says

Adverse weather, including a cold, ground-freezing winter and a wet, stormy spring, slowed construction throughout the region during the early part of the building season

Regionally, North Dakota’s economy is exceptionally strong, according to most assessments. Several cities in South Dakota, particularly in the Sioux Falls and Rapid City areas, also are growing

Minnesota, which is bigger in population and more industrialized than either of the Dakotas, was hit harder by the Great Recession, a national downturn that officially lasted from December 2007 to June 2009. But Minnesota is on the upswing, too

Labor Challenges

“The economy does seem like it’s coming back,” says Arnold Volker, president of Real Stone LLC, which is based in Bagley, Minn. and also has outlets in the Minnesota cities of Walker and Blaine “Right now we ’ re probably six weeks out in keeping with orders That’s a good problem to have ”

Real Stone sells a variety of cut stone for upscale buildings, floors and landscaping. Before the recession, Michigan was the company ’ s strongest market, Volker says Demand for nice stone has dropped in Michigan, but that state remains one of Real Stone’s best markets The company ’ s primary market also includes Minnesota, Iowa, North Dakota, South Dakota and Wisconsin.

Despite the improved economy, Real Stone is not back to pre-recession levels in sales or employment. The company used to have 24 employees; now it has eight to 10

General challenges confronting Real Stone include transportation costs and tight-inventory practices Trucking stone is expensive, if it’s not done in large volumes, and resellers don’t like to store large inventories of unsold products.

In addition, Real Stone has to compete with imported stone and, as Volker calls them, “fake stone” products. Even so, business at Real Stone is up about 20 percent from last year, and last year ’ s business was up 10 percent from the year before, he says “It’s coming back ”

About half of the precast concrete panels produced by Gage Brothers Concrete Products Inc in Sioux Falls, S D , go to projects in the Minneapolis area, says Tom Kelley, company president.

Bagley, Minn.-based Real Stone LLC specializes in cut stone for upscale building and landscaping applications PHOTO: REAL STONE LLC

Gage Brothers has provided precast cladding for Target Field, home of the Minnesota Twins, and for TCF Bank Stadium, home of the Minnesota Gophers. The company also has provided panels for several large office and residential complexes in the Twin Cities and elsewhere in the region

However, the new, nearly $500 million Sanford Fargo Medical Center under construction in Fargo will be Gage Brothers’ single largest paneling project, Kelley says

Kelley says business got off to kind of a slow start in the first quarter of 2014, but “the last three quarters are going to be every bit as busy as we ’ ve ever been ”

The biggest potential problem is the limited availability of workers, he says. Gage Brothers has about 20 job openings. The company employs about 230 people and would like to be at about 250, he says

During the past few years, the Integrity Windows and Doors plant in West Fargo has nearly doubled its workforce to about 700 people. Integrity is part of Marvin Windows, which is based in Warroad, Minn.

“Clearly being in the Dakotas has increased the challenge of growing our workforce It is a competitive environment We fully embrace this challenge,” says Jeff Johnson, human resources director.

Fiberglass window and door products are in high demand for two reasons, Johnson says First, the building industry is recovering, he says “It is not nearly at the pace that it was pre-recession, but it is up off the lows of the recession, and we anticipate that the general direction of the industry is to continue to expand,” Johnson says

Second, the company has increased its product offerings while maintaining a high level of delivery and service, he says.

“We do feel confident that we can keep up with the demand of our customers,” Johnson says

Despite the tight labor market, Al Schoeneman expects 2014 to be a good construction year in the Sioux Falls area and in other cities in the upper Midwest He is the president of Schoeneman Brothers Co , a lumber and building-supply company with outlets in Sioux Falls and Harrisburg, S.D. and in the northwest Iowa communities of Hawarden and Spencer

“I think a lot of the people plumbers, electricians, framers will be stretched to the max It will be difficult to gain more momentum than we had last year, ” Schoeneman says.

Total construction valuation for the city of Sioux Falls totaled a record high $588 million in 2013, according to the Sioux Falls planning and building services department. That was a 20 percent increase over 2012 and nearly twice the total of the recession-impacted years of 2009, 2010 and 2011 The prior record year was 2007, when construction permit values totaled $523 million

The Fargo-Moorhead area also set a record for total construction value in 2013, according to a report issued by the Home Builders Association of Fargo-Moorhead The total was $663 million

Funding, Location Challenges

Toby Crow, a construction official in South Dakota, agrees that finding good workers is a challenge for many construction businesses Crow is the executive director of Associated General Contractors chapter in Pierre, which represents businesses that work on highways, heavy

construction projects and utilities South Dakota’s AGC building chapter is based in Sioux Falls.

Crow does not expect acquiring construction materials and building supplies to be a problem “I don’t think we’ll have any trouble with our suppliers keeping up with demand in South Dakota,” he says

He is worried about federal budget allocations not keeping up with the need for infrastructure improvements in South Dakota and other states The challenge for builders is that projects such as highway construction and bridge work tend to be funded largely by the government through the federal gasoline tax.

“A lot of people the state, some of the larger cities are holding back because they don’t know if they’ll get reimbursed by the federal government,” Crow says.

Bruce Langseth is a veteran construction executive based in Minot as the construction manager for the Hegg Development Group of Sioux Falls. He is overseeing more than $300 million in development projects in the Minot, Williston and Watford City areas.

Langseth grew up in the construction industry in Minot, where his father owned a construction business However, he also has worked in construction-related management positions in Fargo, Kansas City, Mo., and Granite Falls, Minn

The construction boom in the communities on the Bakken shale formation presents tremendous opportunities and unique challenges for developers, contractors and suppliers, Langseth says.

For starters, the population of the oil-producing area is sparse, which adds to workforce and service challenges Weather conditions can be brutal, especially during the winter months. Roads and other infrastructure are lacking Getting supplies to the region can be costly In addition, companies often have to pay a premium for good, qualified contractors

“Everything isn’t as simple as it would be in downtown Sioux Falls,” Langseth says

Corey Schultz, vice president of sales for the Hebron Brick Co in Fargo, senses that the boom in western North Dakota is leveling off.

“It’s more manageable now than it was initially,” Schultz says “Eastern North Dakota and eastern South Dakota are more stable areas to be in We don’t have the super highs, but we don’t have the super lows, either,” he says.

Hebron has sales offices in Fargo, Grand Forks, Bismarck, Minot, Sioux Falls, Rapid City, and Fergus Falls, Minn The company also has a brick plant in Hebron, N.D., and a concrete block plant in Mandan, N.D.

Hebron sells its bricks nationally Roughly 20 percent of its brick production and all of its concrete block production stay in the Dakotas, Schultz says Nationally, market conditions are a little sluggish, but conditions in the Upper Midwest are good, Schultz says.

Schultz’s assessment of the construction season is similar to that of other managers in the contracting and building-materials industry: “We expect our sales in the Midwest will be up from last year, and last year we were up from the prior year. ” PB

Rob Swenson Contributing writer RobSwensonMediaServices@gmail com

Building the builder pool

Trades, higher education expand effor ts to fill construc tion jobs

BY KRIS BEVILL

At a recent multi-trade job fair in Fargo, North Dakota Building Construction Trades Council President Jason Ehlert ticked through some of the big construction projects planned for just the Fargo area that will demand thousands of construction workers to complete The under-construction Sanford Health Medical Center in Fargo, for example, is expected to need 800 workers at the peak of its construction. The proposed Northern Plains Nitrogen fertilizer plant near Grand Forks could require up to 2,000 workers Other large projects throughout the region, while in various stages of development, are numerous.

Construction workers are already in short supply and the pool is shrinking due to several factors First, the region’s low unemployment rates have left few available workers to fill demand for expanding businesses Secondly, as the nation’s economy improves, laborers who have spent the past few seasons working in our region are now able to find work in their home states Finally, like many industries, construction trades are facing a high number of retiring workers over the next few years and not enough fresh faces to fill the gap.

Jason Ehlert, president of the North Dakota Building and Construction Trades Council, talks with a potential recruit at a recent job fair held in Fargo, N D

PHOTO: DAVE OLSON/FORUM NEWS SERVICE

(continued from page 34)

Trades Team Up

That combination of factors is what prompted eight trade groups to team up earlier this year for the first time to jointly recruit as many new workers as possible. The campaign, called “Dakota Construction Careers,” (www DakotaConstructionCareers com) included job fairs in Williston, Minot, Dickinson, Bismarck, Jamestown, Fargo, Grand Forks and Devils Lake, N.D., as well as Pierre, Rapid City, Aberdeen and Sioux Falls, S D Participating trades include operating engineers, painters, iron workers, brick layers, cement masons, carpenters and laborers.

In early May, with stops remaining in only Aberdeen and Sioux Falls, Fargo had clearly been the most productive event to date About 150 people attended the Fargo job fair, held April 25 and 26, about three dozen more than any other North Dakota market In South Dakota, Rapid City drew about 60 attendees while fewer than 40 potential workers attended the Pierre event.

Despite the need for workers, Ehlert said labor shortages aren’t expected to disrupt construction progress in the region this year However, he notes that apprenticeships are a multi-year process and says it can take up to a decade to master a trade, so it is essential to attract new workers now in order to replace the highly skilled workers who are set to retire in coming years.

“We’re just trying to get out in front of it,” Ehlert says.

Residential Boost

Teresa Hall, department head of South Dakota State University’s construction and operations management program, says she also is witnessing growing demand for construction workers in all sectors and her department is ramping up efforts to recruit and fill that need

SDSU’s program was initially launched in the mid1990s with just one part-time faculty member It now boasts five faculty and about 170 students, but Hall says she needs more “I wish my enrollment numbers were a lot larger because I could place them all,” she says. “It’s just been a boom year for construction ”

The SDSU program prepares students to manage projects in three construction sectors: commercial, heavy (such as highway and utilities) and residential Commercial has been the primary focus of the program in the past, but a substantial grant awarded earlier this year by the National Housing Endowment will allow new emphasis to be placed on the residential tract

SDSU was one of just three institutions to receive the 2014 Homebuilding Education Leadership Program grant, which is a four-year grant worth nearly $100,000 Hall says the grant will be used to collaborate with home builders

associations and community colleges in South Dakota, North Dakota, Minnesota and Nebraska to increase awareness among students about the career opportunities available in residential construction, largely due to the postrecession recovery.

“Everything kind of imploded in the early 2000s and a lot of homebuilders went out of business, so there is a huge hole in the 30-to-50 age group, ” she says.

Collaborative efforts will begin in the Brookings and Sioux Falls areas but will hopefully expand to include the Fargo-Moorhead and Rapid City regions as well, according to Hall. Program instructor Ken Bertolini is leading the program ’ s grant implementation

In addition to increasing awareness throughout the region, SDSU will also add a residential-specific senior course to its construction management curriculum. “Right now we only have one residential course, so this would take it to the next level where those students would perhaps pair up with a regional builder [and] there would be internships we would support,” Hall says

The program currently offers an internship not required for credit, but 90 percent of students participate, some for credit some not, Hall says. She asks companies that hire interns for credit to donate to the university’s foundation account In exchange, those companies become familiar to staff and students, allowing easier access to potential new hires Hall says that connection may become an increasingly important recruitment tool as the need for workers nationwide increases and prompts firms from outside the region to expand their employee searches. “We’re seeing new companies that haven’t come to campus before Companies that are in Iowa, the West Coast, around Denver,” she says. “They’re coming out to look at us because they’re also struggling to find the depth in their pools to fill their needs ”

Hall says only two of her program ’ s graduating students had not yet accepted a job offer by early April, the only reason being that they were holding out for job opportunities in specific cities, she says Most graduating students received multiple offers.

“By and large, the majority of our students end up in this central region and that’s very important in terms of the need that’s here,” she says “But we ’ re getting calls from companies looking for interns, looking for hires … it’s a great time to be a graduating construction management student ”

PB

Kris Bevill Editor, Prairie Business 701-306-8561, kbevill@prairiebizmag com

UAVs: The key for precision agriculture?

BY JUAN MURGUIA

Unmanned aircraft vehicles (UAVs) may be the next tool to improve precision agriculture. By September 2015, it is expected that the Federal Aviation Administration will have regulated the commercial use of UAVs. Despite their use by law enforcement, privacy concerns may limit UAV use in urban areas Because agriculture is based in rural areas and covers a large surface, many companies are pushing hard for the development of UAV applications that will change how farms are managed

Precision agriculture is a farm management concept based on the high time frequency measurement of intra and interfield variability in crops. This allows farmers to make decisions about smaller surface units and within shorter periods of time

The introduction of GPS and global navigation satellite system technologies, together with variable-rate machiner y, allowed for the development of precision agriculture. UAVs will improve precision agriculture by collecting larger amounts of data in a shorter period of time It will allow farmers to move from sampling a crop to measuring the entire population of plants

Corn is one of many crops that will benefit from UAVs The present sampling recommendation for corn is one plant per 1,000 plants in the field This may cause an error on the estimate of the crop condition and may lead to producers making wrong decisions.

Today, nitrogen applications after crop emergence are based on the average of the sample within an area of a field. This means that too much nitrogen will be applied to half of the crop and too little to the other half With the existing variable-rate applicators, it is possible to better adjust nitrogen levels, which will increase

yields and reduce costs Even more, it is possible to reduce fall and spring nitrogen applications by increasing the precision in an after-emergence application This will reduce the total amount of nitrogen applied and nitrogen losses.

For my research, I am working to measure the economic impact of UAVs on agriculture and the implications on farm management The existing variable-rate technology on seeding, spraying and fertilizer applications will allow UAV plant data collection to have an important effect on yields

Nevertheless, the most interesting effects are related to the possibility of adjusting, with much more precision than before, fertilization requirements during the growing season The reduction in nitrogen losses may be significant and may allow for the possibility of minimizing nitrogen runoff that may be regulated in the future Even today, time restrictions create a strong incentive to fertilize before seeding, but new equipment will diminish that issue.

An example is the increasing speed of application with new equipment Another example is the use of more unmanned machiner y, such as tractors, that drastically may change the need for labor in the future and may intensify the competition among farmers for land

Unmanned is a word that is becoming common in farming, and UAVs are going to become as routine in the fields as self-propelled sprayers PB

Juan Murguia Assistant Professor North Dakota State University Agribusiness and Applied Economics Department Juan.murguia@ndsu.edu

Designing a Better Life

Landscape architec ts focus on quality of life improvements for clients, communities

BY KRIS BEVILL

It’s nearly impossible to define “quality of life” because it is an intentionally vague term used to describe a community or individual’s general well being We know that a good quality of life leads to happiness, but “happiness” is also difficult to define What makes people happy?

Generally, when community leaders on the northern Plains address quality of life improvements, they are most often referring to the establishment of public spaces such as parks, greenways, playgrounds and other leisure amenities. In western North Dakota, for example, rapidly growing communities are beginning to require that new developments include green spaces in their designs and cities are dedicating funds toward recreational amenities, oftentimes declaring that the additions are an essential component to improving quality of life. In more urban settings like Fargo, N D , and Sioux Falls, S D , “quality of life” improvements more often focus on redevelopment efforts to provide opportunities for residents to gather in public spaces or to participate in outdoor events.

Of course, careful planning is necessary in order for these projects to be successful long-term additions to a community Civil engineers often tackle tasks associated with development plans and landscapers can deftly design layouts for greenery and outdoor features, but when it comes to adding outdoor amenities to the betterment of an entire area transforming an outdoor space into an experience rather than just a place landscape architects are the true specialists

“We’re the ones designing what that experience is like and then planning for it, so that it can be more beautiful, I hope, and also possibly more efficient,” says Dominic Fischer, a landscape architect professor at North Dakota State University and part-time associate at Fargo-based landscape architecture firm Land Elements.

New Profession, Old Philosophy

Landscape architecture has been a recognized term for only about 100 years, making it a fairly new profession compared to other disciplines Newer still is its

Rooftop gardens such as the Sky Prairie at Fargo’s Hotel Donaldson, are growing in popularity throughout the region. PHOTO: LAND ELEMENTS

role as an in-demand profession in northern Plains states While landscape architects have been active in urban areas and throughout the U S coastal states for some time, landscape architecture has been a recognized licensure in North Dakota for only a little more than a decade South Dakota recognized the profession earlier, but demand for the practice also did not really begin to take off until about 10 years ago, according to Jon Jacobson, principal at Confluence, a landscape architect firm with offices in Sioux Falls, Minneapolis, Des Moines and Iowa City, Iowa, and Kansas City, Mo

Jacobson attributes the slow growth of landscape architecture in the region to the area ’ s low population and rural, agriculture-based societies. But as urban areas have grown and recruitment of new citizens has become more vital, the desire for landscape architecture services has increased “We’ve really seen the popularity of what we do grow in the last decade,” he says. “There are lots of big companies that need talented people to come here and having a nice place to live is an important part of what we do ”

At its core, the focus of landscape architecture is to design outdoor spaces that are functional and aesthetic while preserving land and protecting the health, safety and welfare of the public Landscape architects can serve in any number of roles from city planners to national park advisers and the scope of their work is vast. Think Central Park in New York City, bike trails through Theodore Roosevelt National Park, rooftop gardens, well-shaded parking lots, water management projects, playgrounds, apartment buildings with curbside appeal and backyards with outdoor kitchens and lush gardens. Landscape architects are responsible for all of these things

Green Infrastructure

Mike Allmendinger founded Fargo-based Land Elements 11 years ago this month and has spent much of the past decade educating people about the profession and its services During that time, he’s also built the firm to eight employees and has racked up an impressive portfolio that includes rooftop gardens at several downtown Fargo buildings, the most wellknown being the Hotel Donaldson’s Sky Prairie, as well as master planning for residential developments, commercial property layouts, stormwater management projects for the city of Fargo, greenspace developments at local universities and streetscape work in downtown Fargo

Allmendinger says he’s noticed growing appreciation for outdoor spaces in recent years, which has contributed to increased awareness of his profession “As soon as people start valuing their outdoor spaces and thinking about the experiences they want to have in them, they want the best design And when they want the best design, they end up seeking out landscape architects,” he says.

One of the top trends in landscape architecture in the region currently is stormwater management, which can be achieved through a

variety of methods including rooftop gardens, rain gardens or bioswales

Rooftop garden systems typically hold three-fourths of an inch of rainfall in the garden soil. Considering that about 90 percent of the annual rainfall in the region comes in increments of less than three-quarters of an inch, rooftop gardens can be a very effective method of stormwater management, Allmendinger says To date, Land Elements has created six rooftop garden projects in downtown Fargo. “We’ve had a lot of fun doing rooftops in Fargo,” he says “They’re in high demand A number of rain garden and stormwater projects are happening all over the place Every property has to manage their stormwater.”

Large stormwater management projects have traditionally consisted of retention ponds or pipe systems, which are not particularly aesthetically pleasing Keith Kinnen, landscape architect at Bemidji, Minn -based Karvakko Engineering, says bioswales can provide the same benefits as rain gardens, but at a larger scale Bioswales are long, shallow depressions with gentle slopes which allow rainwater to flow into the depression and disperse slowly through vegetation. They can be especially effective when combined with curbless parking lots, which will allow water to sheet off the lot and into the bioswale Kinnen notes that curbless pavement is also less expensive than curbed pavement

Pervious pavement, which allows water to seep into the soil between pavers, is another fairly easy-to-implement stormwater management method

One green infrastructure trend that has yet to be widely implemented in the region but offers great potential is tree boxes, Kinne says. Developed to alleviate some of the stress endured by trees when surrounded by concrete, tree boxes utilize a specific soil medium that allows water and

air to better infiltrate the surface They also incorporate a curb cut or other method of allowing rainwater to filter through that soil, which serves the dual purpose of nourishing the trees and filtering out pollutants before water meets up with the city’s drainage system Tree boxes are easiest to install when streets are being updated, according to Kinnen. “It’s an awesome practice and that’s what I’m really excited about to see more of,” he says “Honestly, I think we ’ re just at the beginning of this environmental stuff I don’t think it’s going away anytime soon ”

Masterful Planning

Residential developments and master-planned communities can also benefit greatly from the expertise of landscape architects Since launching Axtman + Associates in Bismarck, N D , about 18 months ago, Jake Axtman says he has focused heavily on large-scale land use planning, particularly in the growing communities of North Dakota’s oil patch

“That’s been pretty exciting for me, to help plan for the development of new housing developments as cities grow thinking about parks and playgrounds and walking trails,” he says. “I really enjoy [parks and other leisure amenities], especially out west where that sort of community-building infrastructure wasn’t really part of the initial plans Those things are important because people have moved here for the availability of jobs, but if we want to retain people for the long term, we have to give them things to do outside of a job As landscape architects, if we can help by doing

things like designing walking trails, parks, playgrounds and athletic fields, it gives people something to do to get out into the community, to meet new people, to feel like they’re part of something larger than themselves ”

Leaders of the booming communities in western North Dakota have become increasingly aware of the impact landscape design has on quality of life and have begun adopting commercial landscape ordinances that require developers to include landscaping in their design Axtman believes that trend will continue and become even more popular in coming years as communities continue to strive toward expanding and retaining their workforce populations

Urban Streetscapes

Streetscape projects are relatively new to our region, but are increasing in popularity as cities such as Fargo and Sioux Falls seek to modernize their city cores NDSU’s Fischer specializes in urban design and is spearheading some of downtown Fargo’s most well-known streetscape work A feasibility study he and a partner conducted several years ago to explore the impacts of switching the one-way streets of First Avenue and NP Avenue to two-way streets is largely responsible for the city’s approval to make the switch last year Now that the two-ways are in place, Fischer and Land Elements are addressing some of the existing aging infrastructure and will ultimately redevelop it from building front to building front

“We’re doing things like extending some of the curbs to reduce crossing

Landscape architecture firm Confluence served as lead consultant for the Big Sioux River Greenway-Downtown Riverfront project in Sioux Falls, S.D. The second phase of the project, shown here, included riverfront redevelopment near the Hilton Garden Inn.

PHOTO: REISTROFFER DESIGN; DOWNTOWN SIOUX FALLS

MSUM Graduate Programs Meet Students’ Needs

innesota State Universit y Moorhead’s graduate studies programs are convenient and e xible for working professionals

“While some of our graduate programs are traditional ‘bricks and mor tar,’ the majority of our graduate programs are available online or in hybrid formats,” said Boyd Bradbur y, MSUM dean of Graduate Studies “In an age of ubiquitous technolog y, working professionals should be able to get the necessar y education to advance their professional careers without leaving the comfor t and convenience of their homes ”

Robert Asp Elementary teacher Josh St Louis completed the Minnesota principal licensure program at MSUM and is working toward his master’s degree in educational leadership

“The online classes were great because I could do the work when it t into my schedule, and events such as web chats were scheduled in the evening,” St Louis said

New Graduate Programs Added

MSU Moorhead Graduate Degrees

▸ Accounting & Finance

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▸ Counseling & Student A airs

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▸ Educational Leadership (M S & Specialist)

▸ Healthcare Administration

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▸ Special Education

▸ Speech-Language Patholog y

▸ Teaching English as a Second Language

Graduate Cer ti cates

▸ Biochemistr y & Biotechnolog y Industr y

▸ Kodaly

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▸ School Counseling

▸ Teaching & Learning with Technolog y

▸ Teaching English as a Second Language

Based on input from regional employers, new master's programs have been added in business administration (executive MBA with healthcare emphasis), healthcare administration, nursing administration, and accounting and nance With these new options, graduate student enrollment has doubled in one year

“The increase in enrollment is not by accident Our graduate faculty members have made a genuine e or t to accommodate student needs and provide personalized attention,” Bradbur y said Students in MSUM online classes receive one- on- one at tention from their professors and get to know their fellow students through online chat programs

“Student interac tion and developing relationships is vital to learning Our use of technologies to emphasize personalized at tention and oppor tunities to learn from each other are cornerstones of MSUM’s programs,” said Julie Swagger t, Educational Leadership program coordinator

MSUM master’s degrees, graduate cer ti cates and licensure programs meet students’ needs by o ering exibilit y and convenience while enhancing exper tise and preparing for career advancement

Minnesota State Universit y Moorhead is an equal oppor tunit y educator and employer and is a member of the Minnesota State Colleges and Universities system

Clas s e s are o ered in late af ternoons or e vening s while hybrid programs deliver cour s e s on campus and online .

distances and helping to choose some of the historic elements that go into the streetscape so that there’s more public space for urban activities,” he says

The project is expected to begin next year and will likely take several years to complete because it will tie in with other large downtown projects, he says

Land Elements also plans to produce a book of design guidelines for streetscapes which can be applied throughout downtown Fargo. Fischer says the book will be available for private developers as well as city engineers

In Sioux Falls, Confluence has played a key role in redeveloping its downtown. The firm served as the lead consultant in the Big Sioux River Greenway-Downtown Riverfront project, an anticipated $35 million quality of life improvement project that will be realized in phases over the course of many years along with downtown redevelopment projects, Jacobson says.

The first phase of the greenway project was completed in 2012 along the riverfront in a space that once housed an industrial agriculture elevator and rail switchyard. Updates included improved greenway access as well as new public gathering spaces, seating, a pedestrian bridge and large, stone-based light piers A second phase was completed last year and consisted of similar redevelopments along the riverfront near the downtown Hilton Garden Inn. Jacobson expects up to 10 more redevelopment phases before the greenway project is complete

Jacobson says he enjoys working on public projects because they provide the most exposure for the firm and can make the most impact on the general public The firm is currently working with the city of Sioux Falls on a healthy living initiative that would incorporate public infrastructure projects to encourage residents to recreate and exercise Public outdoor exercise areas are a growing trend elsewhere in the country and Jacobson is eager to put them into play in our region

“Literally, there is outdoor fitness equipment located along trails and public gathering areas that people don’t have to pay to use, they can use it when they’re walking or using the bike trail and kind of build it into their

routine for exercise,” he says

The future of landscape architecture appears bright in the region and established professionals say they are excited for the opportunities that lie ahead for them and for the growing number of new landscape architects working in the area Fischer says that while most of NDSU’s landscape architecture graduates used to pursue their profession in Minneapolis, Chicago or along the coasts, a growing number of recent graduates are now able to find work in the region

The desire for quality of life improvements will likely continue to drive the expansion of landscape architecture throughout the northern Plains, a movement which Allmendinger says he is happy to be playing a role in.

“I believe that if you create great outdoor spaces and unique experiences, people will create memories in these spaces, and memories will help create a strong sense of community,” he says. “There are many components of making strong communities, but I absolutely feel that landscape architecture is one of them ” PB

Kris Bevill Editor, Prairie Business 701-306-8561, kbevill@prairiebizmag com

Masterful design

Minneapolis features one of the best examples of landscape architec ture to be found any where the Grand Rounds National Scenic By way, which is an interconnec ted series of parkways and parks that flow throughout the city near and around the Mississippi River The system was designed by H W S Cleveland in response to the city ’s request to connec t and preser ve the city ’s existing natural features and today, more than 100 years later, the Grand Rounds continue to be known as one of the best urban park systems in the world.

Some of Cleveland’s other projec ts included the landscape design for the Fergus Falls State Hospital in Fergus Falls, Minn , as well as the landscaping for the University of Minnesota campus. In 1873, he published a book titled “Landscape Architec ture as Applied to the Wants of the West,” in which he expressed his disdain at the carelessness with which railroad communities in the western U S were being construc ted He believed the layouts were disorderly, towns were being built too fast and not enough thought was being given to public spaces for people Today, landscape architec ts are addressing similar concerns for communities in the Bakken region.

Since launching Axtman + Associates, Jake Axtman says he has focused heavily on land-use planning and community enhancement projects, such as the New Generations park in Bismarck, N D PHOTO: JAKE AXTMAN

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In it together

Bemidji takes collaborative approach to economic development

BY KRIS BEVILL

As the saying goes, a rising tide lifts all boats. In Bemidji, Minn , business owners and city leaders are putting those words into action, taking a col labor ative appro ach toward expanding and improving one of northwestern Minnesota’s most scenic regional hubs New business owners are finding supportive mentors and launching unique and successful businesses, existing businesses are investing time and money into expansions and enhancements and community leaders are encouraging growth while emphasizing the continued quality of life that has made the lakeside community an attractive home for its more than 13,000 residents and an annual vacation destination for thousands of others

“At a time when many rural areas are struggling and declining, Bemidji is in a strong growth phase, which is a great thing,” says Dave Hengel, executive director of Greater Bemidji. “It’s a real culture shift where you have a community that is aligned from the chamber, the economic development organization (Greater Bemidji), to the city and county to private businesses in the downtown community. Everybody is aligned and moving in the same direction It’s a powerful thing ”

A driving force in Bemidji’s recent economic upswing has been young entrepreneurs, who have found a welcoming startup environment in the city. A diverse number of new businesses, including Kar vakko Engineering, Bemidji Brewing Co , LaValley Industries and AirCorps Aviation have launched in recent years. Other existing businesses, such as Stittsworth Meats,

have found new life under the leadership of the next generation of family owners “I’ve never seen a crop of young entrepreneurs come out of a community like we have today,” Hengel says. “It’s many facets of the economy the part that’s really exciting is they truly have Bemidji roots and care deeply about this community and are looking to make a difference in their own way through their company to help Bemidji prosper. ”

One important factor to sustained entrepreneurial growth is a strong mentor program, and Bemidji leaders say they have that in the large number of retired CEOs and executives who live in the area. “We have an awful lot of seasoned entrepreneurs who want to give back and have kind of partnered up with these folks,” says Lori Paris, president of the Bemidji Chamber of Commerce. “If you need a mentor or just somebody to sit down and visit with, they’re available ”

A project being developed by the chamber, Greater Bemidji and other stakeholders seeks to capitalize on the mentorship capabilities of its residents by creating a space dedicated to activities that would nurture the relationship between emerging entrepreneurs and business veterans. The space is part of a larger project known as the Minnesota Innovation Institute, created by Greater Bemidji to help the local manufacturing industry develop the community into the “go-to place” for manufacturing talent The institute’s first project was a training center, which was realized through a partnership with Bemidji State University and Northwest Technical College The training center has already graduated 141

The city of Bemidji, located on Lake Bemidji in northwest Minnesota, serves as a regional hub for nearly 100,000 people located within a 40-mile radius of the city PHOTO: CITY OF BEMIDJI

individuals and boasts an 80 percent placement rate, according to Hengel Now, the institute is working to expand its training capabilities to include a 20,000 square foot accelerator building in downtown Bemidji, which will include a highperformance training center, space for emerging companies to conduct research and development activities, a mentorship space and a high-tech meeting space for local companies to entertain new recruits and pitch Bemidji’s many opportunities

The accelerator could be operational by the end of the year

Existing businesses have also been expanding and new developments are under construction, adding to the excitement of the community. Sanford Health, which at more than 1,600 employees is the city’s largest employer, is constantly adding new hires, according to Paris. The Sanford Events Center has spurred a cascade of new developments along the city’s south shore, including two hotels, a restaurant and a townhome development, which will be built over the next couple of years The city is also considering adding a regional park and beach on the south shore, Hengel says, calling the south shore “the primest urban lake shore in northern Minnesota ”

Of course, Bemidji is not immune to the region’s workforce shortages and community leaders are working to address those issues as well. Paris says a recent job fair attracted 45 businesses listing more than 1,200 job openings “If you want a job, it’s here. It seems like everybody we talk to is hiring,” she says. To combat the skills gap in the trades industry, the chamber has teamed up with the Northwest Tech Foundation to create a program called Trade Up, which will focus on recruiting students and providing scholarships for those entering into trades, sponsored by a collaboration of businesses.

The chamber, Greater Bemidji, Bemidji State University and other stakeholders are also in the early stages of creating a workforce retention position, a community concierge if you will, who will focus entirely on assisting employers in welcoming new upper management personnel and their families into the region. Paris says that when considering companies can spend up to $10,000 recruiting a high-level employee, having a community concierge makes sense “I think it will be another piece that will kind of set us apart for someone looking to come into the community,” she says Paris says she hopes to sign on more partners to help fund the estimated $50,000 per year needed for a three-year pilot project and would like to

have the position in place this fall.

Hengel says Bemidji is also ahead of the curve in internet infrastructure, thanks largely to investments made by Paul Bunyan Communications. The cooperative began installing copper and fiber infrastructure in Bemidji in 1999 (it has since moved on to install fiber exclusively) and estimates it has invested $70 million since that time to expand its fiber network to unserved or underserved markets It currently serves 30,000 lines and offers a base speed of 20 megabytes per second with the capability to increase to any speed to meet individual business client's needs Company CEO Gary Johnson says the company will again expand its capabilities in the near future and credits the continual growth of his company and others in the city to the collaborative nature being fostered there

“As a service provider in the area, it's been very exciting to see the growth Bemidji has been experiencing, not just statistically but in the forward-thinking nature and spirit of working together,” he says. “We're really working well as a community It's been fun and I see much more to come ”PB

Kris Bevill Editor, Prairie Business 701-306-8561, kbevill@prairiebizmag.com

The Dakota Precision Ag Center at Lake R egion State College offers an A AS in Precision Agriculture, and customized precision ag-related training for agricultural producers, insurance underwriters, equipment dealers, agricultural cooperative employees, and others.

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Bakken booms in Bismarck

Energy industr y packs the state capital for annual conference

BY KRIS BEVILL

More than 200 attendees crowd into a session covering natural gas utilization techniques at the 22nd annual Williston Basin Petroleum Conference on May 20 in Bismarck, N.D.

The 22nd annual Williston Basin Petroleum Conference opened to a packed house on Tuesday, May 20 as attendees from 48 states and nine countries flocked to the Bismarck Civic Center in Bismarck, N D , to hear experts address topics ranging from liquid natural gas utilization to transportation logistics and housing

Nearly 4,000 people were pre-registered for the three-day event, which was hosted by the North Dakota Petroleum Council, the North Dakota Department of Mineral Resources and the Saskatchewan Ministry of the Economy

One of the first day’s afternoon sessions, titled “Williston Basin Solutions,” became a standing-room only event as more than 200 people crowded in to learn more about their options to best utilize some of the Bakken’s resources

Patrick Hughes, CEO of Watford City, N D -based Prairie Companies delivered an overview of the company ’ s subsidiary, North Dakota LNG, which recently announced plans to establish a liquid natural gas (LNG) production facility in Tioga, N D , later this year NDLNG expects to begin producing 10,000 gallons of liquid natural

gas each day by the end of July using residue gas obtained from the adjacent Hess Corp. natural gas processing plant. By the end of the year, Hughes says he expects the NDLNG plant to produce up to 66,000 gallons of LNG every day

In a press release announcing the project earlier in the month, NDLNG touted the potential benefits of its product to the agriculture industry as a substitute for propane But at the petroleum conference, the sole focus was oilfield applications of course Hughes said LNG can be used to completely displace diesel fuel in drilling rigs or can be used in bifuel applications The technology is fairly new the first LNG-powered drilling rig in the U S debuted in 2010 but he said advances in equipment have made it increasingly easier for drillers to apply the technology since then and estimated that there are now between 50 and 60 rigs in U S oilfields operating on either 100 percent LNG or a combination of the two fuels. He wasn’t able to specify how many of those rigs might be operating in the Bakken, but said they are becoming more common and predicted that most rigs coming into this area will use a combination of diesel and LNG rather than 100 percent LNG

Drillers can also conver t existing rigs to become bifuel compatible. Companies such as Williston, N D -based Eco Alternative Fuel Systems Inc (ECO AFS) have developed conversion kits which can be installed on rigs w ithin a few days w ithout disrupting operations, he said Once installed, the bifuel systems can reduce diesel fuel demands by more than 50 percent.

The amount of fuel used by each rig varies, but Hughes estimated that a 50-50 system would consume about 300 fewer gallons of natural gas than diesel

Refinery Update

John Stumpf, senior vice president of business development and midstream at MDU Resources, offered attendees an update on the progress of the Dakota Prairie Refinery currently under construction near Dickinson, N D

Fewer attendees were on-hand for the update compared to previous presentations, perhaps because of the scale of the project, which Stumpf described as “not a large project in Bakken standards ” The project is estimated to cost $350 million

Regardless of its size, the refinery is the first greenfield refinery to be built in the U S in more than 30 years and has required the collaborative work of four engineering firms, including Bismarck-based Bartlett & West and Barr Engineering, as well as the state, county and several company stakeholders Having so many parties involved has made the project challenging, but project leaders embraced the “design as you build” concept and have stayed on schedule since the groundbreaking last April, Stumpf said. The facility is currently 60 percent complete and is expected to enter the commissioning phase in October, with the first product shipments expected by early January Costs have exceeded initial expectations, however, and the project is $50 million over budget.

“It sounds like a slam dunk right now, ” he said “Of course anything can happen between now and then [but] I’m smiling for the first time in months ”

Todd Borgmann of Calumet Specialty Products Partners said the refiner y will pur-

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A large banner hung near the main entrance to the Bismarck Civic Center in Bismarck, N.D., welcomes attendees to the 22nd annual Williston Basin Petroleum Conference, held May 20-22

chase crude from anywhere “south of the lake [Sakakawea]” and will take in 20,000 barrels ever y day, producing a variety of products on the other side Included will be 6,500 barrels per day of naptha, which Borgmann noted has a large and growing market in Canada, as well as 6,500 barrels per day of atmospheric bottoms, referred to as ATB, which is a product of interest to refineries.

Perhaps the most widely anticipated product locally of the Dakota Prairie Refinery is the 7,000 barrels per day of No. 2 diesel that will be produced and sold into the local market at rack rates rather than utilize another distribution method “It’s pretty simple. We want to support the community and sell it to whoever wants to come buy it,” Borgmann said When asked if he has any doubt the market will be there to purchase the fuel, Borgmann smiled and said, “No, I think we’ll be able to sell it We’ve had quite a bit of interest ” Further, he said the refinery may consider producing No. 1 diesel in the future, but the market is “ so hot” for No. 2 diesel currently, it will focus on production of that product PB

Kris Bevill Editor, Prairie Business 701-306-8561, kbevill@prairiebizmag com

PRIDE THRU PERFORMANCE

505 Monthly 513 Gas

SANFORD HEALTH MOORHEAD CLINIC

FORWARD THINKING ENGINEERING

One of the goals for this project is to provide the community with the next stage of care through a for ward thinking approach

MECHANICAL & ELECTRICAL ENGINEERING OBERNEL.COM

PHOTO COURTESY OF JLG ARCHITECTS

Stephen Nelson, MD Senior Vice President, Sanford Health

Interest Rates

Employment

Data provided by David Flynn, chair of the University of North Dakota Department of

Reach him at david.flynn@business.und.edu.

A GAME-CHANGER ”

As the largest park district-owned indoor recreation center in the country, the Williston Area Recreation Center makes a big impact on a booming community. Designed by JLG Architects and the Williston Park District to attract and retain families, the Williston EDC’s “Project of the Year” includes an indoor water park with surf simulator, turf field, basketball courts, tennis courts, a 200-meter track, an elevated walking track, a daycare, a kitchen for cooking classes, a senior center and a separate teen center, a golf simulator and a high-tech pitching simulator – all of which were provided under budget and on schedule

What a fantastic place you have!”

Bismarck Tribune

Darin Krueger, Williston Parks & Rec

The Williston Area Recreation Center is so enviable that if you don’t live in Williston, it could make you wish you did.”

Gov Jack Dalymple

I haven’t seen this many happy people in this community in five years.

”