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 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

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