A great year in South Dakota

BY PAT COSTELLO

As we go into March, many of us are looking forward to spring and the warm weather that will soon be upon us. However, I would like to take a moment and look back. Last month, my office released its 2013 Annual Report. The 52-page document features our accomplishments and successes for the year, and includes hard numbers on our finance programs, state domestic product, and our progress in business development. I’d like to share some of the highlights with you.

First, let’s look at the big picture. Economic growth is up. The figures for 2012 came in midyear in 2013, and those are the most recent numbers we report. South Dakota’s Gross Domestic Product increased by 1.9 percent from 2011 to 2012. That’s the third consecutive year of growth. The manufacturing sector was up by 10 percent, which is the fifth highest increase in the nation and quite an accomplishment.

During the course of 2013, we focused our recruitment efforts on seven key industries: advanced manufacturing, biosciences, energy, financial services, professional business services, shooting, hunting and outdoors, and valueadded agriculture. And, wouldn’t you know, 80 percent of our 327 leads were in one of those industries. When broken down by industry, the shooting, hunting, and outdoor industry took the biggest piece of the pie, with 23 percent of all leads.

When broken down by state, 33 percent of our leads came from within South Dakota, which is a trend we see most years. Other top states were Minnesota, with 18 percent; California, with 8 percent; and Illinois, with 5 percent. All other states combined accounted for 32 percent of the leads, and 4 percent were from areas outside the U.S. The large number of leads in Minnesota, California and Illinois most likely reflects our recent ad campaigns.

Marmen Energy, Permian Tank and Eagle Creek are among the companies highlighted in our annual report. Both Marmen and Permian Tank conducted multi-state searches before selecting South Dakota locations. Canada-based Marmen Energy acquired a 150,000 square-foot industrial facility in Brandon that is projected to create up to 250 new jobs. Permian Tank decided to construct a 45,000 square-foot manufacturing facility in Belle Fourche’s new industrial rail park. That project is expected to create 65 new jobs in the community of 6,500. Vermillion will have as many as 200 new jobs when Eagle Creek begins providing technology services to its Fortune 1500 clients after its $10 million technology center is complete.

For more information on doing business in South Dakota, or to view the report, please visit www.sdreadytowork.com. Click on “News & Media,” then “Publications & Studies,” and then “GOED Annual Reports.” PB

Pat Costello Commissioner S.D. Governor’s Office of Economic Development Pat.Costello@state.sd.us Twitter: @sdgoed

Brookings uses billboard to advertise jobs to passersby

The Brookings Economic Development Corp. has decided to use a billboard to promote the city’s job openings website as well as retirement information website to people traveling through the community on Interstate 29. Al Heuton, executive director, says the group hopes the 24hour exposure to the public will attract attention and produce results for job seekers and new retirees alike.

“We’re trying to find a unique way to attract people to fill the more than 600 jobs we currently have available and the additional 250 we expect to become available in the next few months,” he says.

Additionally, he notes that retirees are more frequently choosing to retire in university communities like Brookings, which is home to South Dakota State University.

Border States restructures regions

Border States Electric recently announced a regional restructure of the company, from six regions to four, in order to realign its resources and establish a solid foundation for growth and expansion.

Gary Daniel will lead the reconfigured south-central region, including 19 branches in Tennessee and parts of Texas and New Mexico. Matt Eddleman will continue to lead the reconfigured southwest region, which includes 14 branches in Arizona, Colorado, Utah and parts of Texas and New Mexico.

Ken Rowland will continue to lead the northeast region, which includes 18 branch locations in Iowa Michigan, Minnesota and Wisconsin. Brad Kvalheim will continue to lead the northwest region, comprised of 10 branch locations in Montana, Wyoming and the Dakotas. The northwest region corporate office is located in Bismarck, N.D.

USDA awards loans, grants for rural economic development

The U.S. Department of Agriculture recently awarded millions of dollars in financial assistance to projects in the Dakotas through its Rural Economic Development loan and grant program. Dakota Valley Electric Cooperative Inc. in North Dakota was awarded a $1 million loan to help Farmers Union Oil of Southern Valley construct a building to manufacture trucks and trailers for fertilizer industry clients. Wahpeton, N.D.-based sugar beet producer group MinnDak Farmers Cooperative Inc. received a $1 million loan to buy equipment to process molasses byproducts into products for use pharmaceuticals, food and animal feed.

Webster, S.D.-based Lake Region Electric Association Inc. received a $300,000 grant to help Glacial Lakes Area Development re-capitalize its economic development loan fund.

Staybridge Suites Minot wins award

Staybridge Suites Minot (N.D.) recently received InterContinental Hotels Group’s newcomer property of the year award for providing superior accommodations and high levels of guest service, quality and value. The property is managed by Fargo-based National Hospitality Services.

SDSMT leases apartments to support growing enrollment

The South Dakota School of Mines & Technology has entered into an agreement with Technology Housing LLC to lease two apartment buildings through 2024 to accommodate its growing enrollment. The apartments can accommodate 269 students and will be reserved for the school’s sophomores, who are required to live on campus.

Overall enrollment at SDSMT grew nearly 9 percent this year to 2,640. The school wants to increase its number of students to 3,500 by 2020.

Jamestown e-retailer sets growth record

RealTruck.com, a Jamestown, N.D.-based aftermarket pickup truck accessory e-retailer, experienced recordbreaking growth in 2013. According to the company, revenue grew by more than 60 percent over 2012 to $28.5 million. It set a single-month sales record in December with $4 million in sales and recorded its highest one-day revenue total on Cyber Monday. The company added 17 full-time employees last year at its headquarters in Jamestown and its Fargo satellite office to keep up with the company’s pace of growth and currently employs more than 50 people.

Company CEO Scott Bintz attributes most of the company’s success to an employee-centric company culture that empowers staff to drive continuous improvement throughout the company.

CHS buys Louisiana fertilizer business

CHS Inc. has acquired the fertilizer business and related fertilizer assets of Terral RiverService Inc. in Lake Providence, La. Terral RiverService specializes in transporting and storing dry and liquid materials along the Mississippi River system, the Gulf Intracoastal Waterway and inland waterways of Louisiana and southern Arkansas.

CHS will integrate nine Terral RiverService locations into its existing crop nutrients business. Cheryl Schmura, CHS vice president, crop nutrients, says the acquisition will allow the cooperative to serve ag supply dealers throughout the lower Mississippi region.

Sanford to establish genomic medicine program

On Jan. 7, Sanford Health announced a $125 million gift from Denny Sanford to establish Sanford Imagenetics, a first-of-its-kind program to integrate genomic medicine into primary care for adults. The initiative will allow patients to undergo genetic testing and genetic counseling to provide internal medicine physicians with patient-specific information, improving their ability to prescribe them with the most effective medication, dosages and treatments. The initiative is expected to be rolledout later this year.

Arvig Enterprises buys Aevenia data communications division

Perham, Minn.-based Arvig Enterprises has acquired the data communications division of Aevenia, an Otter Tail Corp. company. The division is based in Moorhead, Minn., and provides fiber optic splicing, data cabling, surveillance and door access control, intrusion detection, wireless networks and engineering, design and consulting services. The acquisition is part of Arvig’s strategic growth plan and will allow the company to serve a broader range of customers in Minnesota and North Dakota, according to David Arvig, vice president and chief operating officer.

ND exports decrease in 2013

North Dakota exported $3.7 billion in goods in 2013, a decrease of 14 percent compared to 2012, according to the U.S. Commercial Service. The decrease is attributed primarily to the increased use of truck and rail to transport oil from the Bakken region, decreasing the amount of oil that is exported briefly to Canada by pipeline. Mineral fuel and oil products topped the state’s list of exports, totaling $1 billion in 2013, down 26 percent from the prior year. Other top export categories included self-propelled dozers ($343 million), tractors ($309 million), agricultural equipment ($185 million) and biodiesel ($156 million).

Canada continues to be North Dakota’s top export destination.

KLJ gives 3D printers to Bismarck-Mandan youth

Engineering, surveying and planning firm KLJ recently donated three second-generation 3D printers to Marketplace for Kids to be used for hands-on training by students in BismarckMandan, N.D. “3D printing is a common practice in several industries, specifically in engineering,” says KLJ CEO Niles Hushka. “Our future as a company is dependent on our youth’s education, and donating a tool that exemplifies such innovation is one way KLJ could encourage youth to explore creativity and directly support our corporate initiatives and future goals as a company.”

Shingobee Builders honored for ND casino/resort

Minnesota-based Shingobee Builders Inc. was honored by the Associated Builders and Contractors Minnesota/North Dakota chapter for its work on the Sky Dancer Casino and Resort in Belcourt, N.D., during the group’s annual awards banquet, held Jan. 30 in Minneapolis. Shingobee received an Eagle award as part of the group’s excellence in construction awards program, which recognizes firms for their work based on a project’s complexity, attractiveness, unique challenges overcome, completion time, workmanship, innovation, safety and cost. Shingobee provided pre-construction and generation contracting services for the casino/resort’s 120,000 square-foot expansion project and renovation of the existing 38,000 squarefoot casino. The project was carried out from August 2011 through June 2013. The firm overcame challenges including a tight budget, aggressive schedule, winter conditions and a remote location to meet the Turtle Mountain Band of Chippewa Indians’ project goals.

SD tourism industry sees slight growth in 2013

A report commissioned by the South Dakota tourism department found that the total economic impact of the state’s visitor industry increased by 2.8 percent in 2013, translating to an overall economic impact of nearly $2 billion. Taxable sales increased by 4.5 percent, totaling $295 million in state and local tax revenue. Visitation increased by about 3 percent, however hotel occupancy was down by nearly 2 percent compared to 2012.

Bobcat gives $15K to support Bismarck STEM education

Bobcat Co. recently donated $15,000 to the Bismarck (N.D.) Public Schools to support the system’s STEM (science, technology, engineering and math) program. The donation will help create an engineering principles curriculum for ninth-grade students at the Career Academy and help purchase Lego Mindstorm supplies for fifth-grade students to introduce them to the design process, robotics and automation.

The company’s donation was made possi- ble through an award given by parent company Doosan to a Bobcat compact excavator engineering team last summer for its work in developing a common platform approach to the design and build of Bobcat compact excavators. The team consisted of more than 100 Bobcat employees, who collectively determined the cash award should be donated to the local community.

Starion Financial receives business of year award

The Mandan (N.D.) Progress Organization presented Starion Financial with its Business of the Year award during an annual awards dinner held Jan. 27. The group was established in 1993 with a mission to enhance the city’s business climate, create and promote public events and generate community pride. Starion Financial played an integral role in forming the group and has continually supported it financially and through volunteerism, according to Del Wetsch, MPO executive director.

U of M Crookston adds entrepreneurship program

The University of Minnesota Crookston has added a major in entrepreneurship through its business department. The program will help students develop skills needed to recognize ideas and potential ventures, evaluate feasibility, assemble resources and launch new ventures, according to UMC. Susan Brorson, professor and head of the business department, says offering the new major will help meet changing demands of employers, heightened competition and enhance economic and job growth realized from entrepreneurial activity.

The major is available to students on campus and online.

Business tech program launching in western ND

The Bowman County (N.D.) Development Corp. and the Strom Center for Entrepreneurship and Innovation at Dickinson (N.D.) State University are collaborating with the Center for Technology and Business to offer a business technology acceleration program to small business owners in their community. The six-month program focuses on technology topics including social media, mobile apps, virtual IT and cloud usage and electronic payments. The program is made possible through a U.S. Department of Agriculture rural business opportunity grant. For more information, visit trainingnd.com.

Marco expands in Fargo

Marco Inc., a technology services provider serving customers throughout the upper Midwest, has expanded to a new location in Fargo. The new regional headquarters offers more space to accommodate the company’s expanded presence in the Fargo area and allows it to better serve its customers, according to the company.

SD wind project enters research phase

The Dakota Power Community Wind board of directors recently approved the purchase of a 60-meter meteorological tower to begin the research collection phase for a massive wind farm project proposed in southeast South Dakota. The tower is expected to be installed before spring, according to the group.

The proposed wind farm could produce up to 1,000 megawatts of power for the Rock Island Clean Line, a transmission project slated to cross the state of Iowa. Local landowners have so far signed up 20,000 acres of farmland, enough to support a 300-megawatt wind farm. At 300 megawatts, the project would still be the largest wind farm in South Dakota and would increase the state’s wind production by nearly 50 percent.

Dakota Gas approves urea plant addition

The Dakota Gasification Co. board of directors recently approved the addition of a urea production facility at its Great Plains Synfules Plant near Beulah, N.D. The project includes the construction of a storage facility to hold about 53,000 tons of granular urea, as well as a load-out facility for trucks and railcars, with the capacity to load up to 110 railcars in a single shipment. The urea plant is expected to be complete in 2017 and will produce 1,100 tons of urea daily using anhydrous ammonia and carbon dioxide produced at the Synfuels Plant.

Dakota Gasification Co. is a subsidiary of Basin Electric Power Cooperative.

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Starion Financial hires valuation officer

Rae Ann Seibel has joined Starion Financial as its valuation officer. In this role, she manages and maintains all aspects of the real estate analysis and appraisal process. She also provides direction in the administration of commercial, residential and/or agricultural real estate activities, conducts appraisal reviews and trains business loans staff. Seibel has more than 25 years of experience and is a licensed real estate agent.

Timmreck joins Odney

Chelle Timmreck recently joined Odney as a marketing consultant. In this role, she is responsible for providing strategic direction and account management for clients across the region. Timmreck has 15 years of marketing and media sales experience and is skilled in social networking and digital marketing. She has conducted more than 2,000 digital training seminars in the past seven years.

Fargo businessman reappointed to national hospitality committee

The InterContinental Hotels Group (IHG) recently reappointed Norman Leslie, president of Fargo-based National Hospitality Services, to the IHG Staybridge Suites committee. The committee develops and implements strategies that enhance the needs of extended stay guests and travelers seeking a residential-style hotel. The Staybridge brand currently has 191 hotels and expects to double in size over the next several years.

Henderson to lead NDHFA planning, housing development

The North Dakota Housing Finance Agency has named Jennifer Henderson to lead its planning and housing development division. She will oversee the division’s work, providing community leaders and housing developers with the technical and financial assistance needed to define local housing needs, devise development strategies and position communities for growth. Henderson previously served as a housing outreach officer within the division. She replaces Jolene Kline, who recently accepted the position of NDHFA executive director.

Muus promoted to UND chief development officer

Dan Muus has been promoted to chief development officer for the University of North Dakota Alumni Association and Foundation. Muus has worked for the organization since 2008 as a development officer for the College of Engineering and Mines. In addition to other duties as chief development officer, Muus will continue to work with the college on fundraising for the multi-million dollar Collaborative Energy Complex, which will house the petroleum engineering department and Institute for Energy Studies.

Muus replaces DeAnna Carlson Zink, who became CEO and executive vice president for the alumni association on Jan. 1.

Ackerman-Estvold hires Hibbs

Kyle Hibbs has joined Ackerman-Estvold’s Minot, N.D. office as a civil engineer. He has joined the land development team with a focus on design of municipal infrastructure. Hibbs served as a surveying technician for Ackerman Surveying & Associates Inc. for the past two years while completing course work at Concordia College in Moorhead, Minn., and North Dakota State University in Fargo.

Burwinkle joins Karvakko as regional VP

Karvakko Engineering has added Kurt Burwinkle as regional vice president of its Minot, N.D., office. In this role, he will oversee daily operations, focus on cultivating existing and potential client relationships throughout the area, and provide engineering and project management. Burwinkle has nearly 40 years of architectural, engineering and construction experience. He specializes in structural engineering and has extensive experience in overseeing multi-million dollar projects.

Walen joins Bell State financial planning team

Becky Walen recently joined Fargo-based Bell State Bank & Trust as vice president/senior wealth management advisor. In this role, she will advise customers on personal financial planning and investment management. Walen worked for nine years in wealth management for U.S. Bank. She has 15 years of financial services experience.

Giese joins Wells Fargo Private Bank

Wells Fargo Private Bank has named Mark Giese associate trust and fiduciary specialist. In this role, he will work on customized financial plans and help manage personal trust, retirement, investment and foundation/endowment relationships in western North Dakota.

Giese has been employed by Wells Fargo since 2009, when he joined the company as a mortgage consultant.

Edgewood Management names Schmidt regional VP

Edgewood Management Group LLC has named Char Schmidt Region III vice president. In this role, she will oversee the company’s senior living communities in Bismarck and Mandan, N.D. Schmidt previously served as executive director of Edgewood Bismarck – Village and as senior executive director of the company’s Bismarck-Mandan communities. She has more than 25 years of longterm care experience.

Hanson elected SD PUC chairman

South Dakota Public Utilities Commissioner Gary Hanson was elected to serve as the 2014 chairman of the PUC during a PUC meeting held Jan. 7. The election marks Hanson’s fifth time as chairman since being elected to the post in 2002. He is currently serving his second term as statewide PUC commissioner.

Heartland Trust appoints Bernier to board

Heartland Trust Co. recently appointed Sheryl Bernier to its board of directors. Bernier has been with the company since its launch in 1990. In her role as a vice president, her responsibilities include operations, compliance, internal audits and human resources.