And the winner is …

BY PAT COSTELLO

Wewere pretty excited earlier this year when CNBC named South Dakota the best state in the nation to do business. It is a big honor that garnered our state some muchdeserved recognition in the business world, as well as a good deal of media attention. But, that is just the tip of the iceberg.

CNBC also ranked South Dakota No. 1 for affordable places to do business and in the Top 10 for Business Friendliness, Economy, and Quality of Life.

But CNBC isn’t the only organization that has taken note of South Dakota’s many favorable business attributes. In the past year:

• Forbes ranked our two largest cities in the Top 10 of its list of Best Small Places to Do Business, with Sioux Falls coming in at No. 2 and Rapid City at No. 9.

• The U.S. Chamber of Commerce Foundation called South Dakota its No. 1 Enterprising State for Business Climate.

• Pollina Corporate Real Estate named South Dakota the eighth-best Corporate Business Climate, and

• Fast Company Magazine declared South Dakota No. 1 in entrepreneurial growth in ranking the states for innovation.

What’s more, South Dakota also had the largest percentage of personal income growth, according to the Bureau of Economic Analysis; as well as the second-lowest state-local tax burden, according to the Tax Foundation.

Gov. Dennis Daugaard attributes South Dakota’s favorable business climate to our state’s history of fiscal responsibility. I agree. Rankings like these allow businesses to plan for long-term growth. We have had a balanced budget each year since becoming a state, which proves to companies that are considering an expansion or relocation that South Dakota can offer its businesses stability and certainty.

That is part of the reason Barron’s ranked South Dakota as the Best-Run State in the country. That particular ranking looks at combined debt and unfunded pension liabilities relative to each state’s gross domestic product.

Clearly, South Dakota has the rankings to support its claim of a favorable place to do business. But the rankings also prove that South Dakota is a great place to live and play, as well as work.

South Dakota ranks No. 3 in State Policy Reports’ The Camelot Index, which measures economic vitality, health, education, crime, society and government. We are second-best in George Mason University’s Mercatus Center’s Freedom in the 50 States study that measures economic and individual freedoms. We are No. 3 in bankrate.com’s Best State to Retire and No. 2 in moneyrates.com’s States Where Youth Rules.

In South Dakota, you will also find a high rate of volunteerism (No. 5, Corporation for National and Community Service), and a low commute time (No. 2, U.S. Census Bureau).

Every day we strive not only to live up to our rankings but to improve them and make South Dakota the best place possible for companies and individuals to call their home.

To read more about rankings in South Dakota, visit www.sdreadytowork.com. PB

Pat Costello Commissioner, South Dakota Governor’s Office of Economic Development Pat.Costello@state.sd.us Twitter: @sdgoed

Investors Real Estate Trust recently began building a 252unit apartment complex in Grand Forks, N.D., known as Cardinal Point. IMAGE: INVESTORS REAL ESTATE TRUST

Minot firm begins building Grand Forks, Minot apartment projects

Investors Real Estate Trust, an equity real estate investment trust based in Minot, N.D., has begun building apartments in Grand Forks, N.D., and Minot.

The Cardinal Point Apartments in Grand Forks will include 252 units consisting of one, two and three-bedroom floor plans. The Chateau II Apartments in Minot are a remodel east of the firm’s currently owned Chateau Apartments that were damaged by flood and fire in 2011. The remodel will include an expansion, increasing the number of units from 32 to 72.

Additionally, the firm announced that it has recently opened a 108-unit apartment project in Minot known as

Landing at Southgate and a 60-unit Phase I River Ridge Apartment project in Bismarck, N.D.

IDEA competition open for applications

Applications are begin accepted until Nov. 30 for the 2014 IDEA competition, an annual event sponsored by the Northwest Minnesota Foundation as well as multiple other organizations and private businesses focused on assisting entrepreneurs in northwest Minnesota scale their innovative products or processes. Three winners will be awarded $10,000 cash each as well as guidance from business community leaders. For more information, visit ideacompetition.org.

ND 2Q taxable sales, purchases slower than 2012

Total taxable sales and purchases in North Dakota during the months of April, May and June were about $6.2 billion this year compared to $6.4 billion during the same quarter of 2012, equating to a drop of 2.4 percent.

The tax department attributed the decline to adverse weather conditions, which hampered activities in some of the state’s industries. The transportation and warehousing sector reported a 49.3 percent decline during the second quarter of this year compared to 2012. Mining and oil extraction dropped 15.7 percent while construction was down by 13.7 percent. The educational, health care and social services sector reported a decline of 20.1 percent.

Industries that reported growth during the second quarter of 2013 compared to the year prior included the utilities sector, the financial, insurance, real estate, rental and leasing sector, professional services, information industries, retail and wholesale trade.

Deputy Tax Commissioner Ryan Rauschenberger says the 2Q totals, while down from the year prior, were still positive. “North

Dakota experienced a record-setting year for taxable sales and purchases in 2012, and that level of growth was not sustainable,” he says.

Bismarck airport receives funding for flight service development

According to the Bismarck-Mandan Development Association, the Bismarck Municipal Airport has received a $500,000 grant from the U.S. Department of Transportation to develop additional air service to Dallas-Fort Worth and/or Chicago. The Bismarck-Mandan Chamber of Commerce is seeking to raise $500,000 from its members to form a minimum revenue guaranty to support the new flight service.

Trailer manufacturer relocating office to SD

SmithCo Manufacturing, a maker of side dump trailers, is relocating its corporate headquarters from Le Mars, Iowa, to Elk Point, S.D., creating six jobs with the potential for additional positions to be added within the next few years. Greg Smith, SmithCo president, says the company intends to maintain most of its manufacturing in Iowa. The corporate office will also serve as a new sales outpost for the company in South Dakota.

Rural broadband providers earn Smart Rural Community award

The NTCA-The Rural Broadband Association recently recognized seven broadband providers in the nation and the communities they serve as Smart Rural Communities in recognition for their efforts to deliver technologies to make rural hometowns vibrant places to live and do business. Award winners include DRN in Ellendale, N.D., Park Region Telephone/Otter Tail Telcom in Underwood and Fergus Falls, Minn., and West Central Telephone Association in Sebeka, Minn., as well as three providers in Kansas and one in Florida.

“Fergus Falls is [a] prime example of the power of a broadband connection and a steadfast commitment to growth and prosperity,” NTCA CEO Shirley Bloomfield said in a news release. “Not only are the people of Fergus Falls charting their own path to a more prosperous future, they are also creating a road map for many more communities across the country to follow suit.”

Social enterprise 401(e) Energy Services launches in Grand Forks

401(e) Energy Services, a social enterprise providing energy assessments, energy upgrades and financial assistance guidance for home owners, recently launched in Grand Forks, N.D. All profits generated will be reinvested in non-profit programs administered by Red River Valley Community Action including programs that provide home repair services to low-income and disadvantaged persons and a local homeless shelter.

Jason Schaefer, 401(e) coordinator, says the entity’s name was chosen intentionally to bring to mind an investment plan in order to reflect its goal of assisting homeowners in making investments in their homes and the community.

Kent Keys, director of the RRVCA, says the entity was created out of both necessity and ingenu-

Wednesday, November 20, 2013

8:00 a.m. – 5:00 p.m.

Holiday Inn – Fargo, ND

INVESTING IN TODAY’S NATURAL RESOURCES

Learn from Industry Experts

Don’t miss this one-day “university” with industry leaders speaking on a diverse portfolio of topics relating to land and minerals.

Dr. Mark Dotzour

Chief Economist and Director of Research for the Real Estate Center at Texas A&M University

- Why have land prices increased so dramatically? Are current price trends sustainable? What is the national outlook for job growth, interest rates and real estate?

Dr. Tim Ball

Environmental Consultant, Speaker and Columnist based in Canada Climate Change is Normal; the Untold Perspective - No stranger to controversy, Dr. Ball’s views about CO2 not causing global warming goes against prevailing wisdom,“The fact that they’ve only heard one side of the issue – that’s the problem,” says Ball.

Stephen Barth

P.C., author of Hospitality Law, attorney and founder of HospitalityLawyer.com

Have you ever made a decision based upon fear? Maybe it was the fear of land prices changing or the fear of missing an opportunity? Become an expert at recognizing fear, but not let it take control.

Lynn Paulson Senior VP, Director of Agribusiness Development, Bell State Bank Farmland Values from a Lender’s Perspective

Roger Minch Attorney, Serkland Law Firm Farmland Rent Contracts; Getting Creative to Stay Competitive

Bud McCroskey Vice President of Wealth Management, Jamieson Capital Dakota REIT (Real Estate Investment Trust); Achieving Success with North Dakota Real Estate Investments

William L. Guy III Attorney, Fredrickson & Byron Law Firm Agri Business Succession; Keeping the Farm Intact While Treating All of Your Children Fairly...But Not Necessarily Equally

Patrick Harrigan President/COO, Gain 1031 Exchange 1031 Exchanges; How to Sell Land & Avoid Taxes

Kerwin Bradley Director of Commercialization, Simplot Impact of Biotech Potatoes on the Farming Industry

Terry Steinwand

Director, ND Game & Fish Department Declining CRP; What It Means for Habitat, Hunting and Access

Tami Norgard and David Hermanson Attorneys, Vogel Law Firm Bakken 101: What Every Land Owner Should Know ity. “Federal funding continues to be cut and we realized in order to be sustainable, we had to find another way to fund our programs,” he says. “RRVCA has been providing energy efficiency services for over 20 years for low-income households as a social program. When we stopped and evaluated what we were really good at and what this region needs as a service, it was kind of a no-brainer.”

Feds give $2.25 million to M State, largest federal grant in college’s history

Minnesota State Community and Technical College has been awarded a five-year, $2.25 million grant from the U.S. Department of Education to expand its ability to serve lowincome students. It is the largest federal grant the college has ever received. M State will use the funding to create immersive technology classrooms on its four campuses, increase student success and persistence through faculty development, design and enhance student support initiatives and increase the college’s capacity for data-driven decisions.

Marathon Oil, MBI Energy Services, US Bank contribute to ND Housing Incentive Fund

U.S. Bank contributed $3 million to the North Dakota Housing Incentive Fund in August, the largest single contribution made to the fund since its creation in 2011. The fund provides a tax credit incentive for businesses providing financial contributions toward the construction of affordable housing projects throughout the state. U.S. Bank also contributed $1.2 million to the fund in 2011.

Additional recent contributions to the fund include Marathon Oil Corp., which provided a $500,000 contribution to support affordable housing development in Dickinson, Killdeer or New Town. The company also contributed $500,000 to the fund last year and $2.5 million in 2011.

MBI Energy Services contributed $250,000 to the fund directed toward the Wolf Run Village development in Watford City. Wolf Run Village is a housing project devoted to providing affordable housing for teachers, law enforcement and medical personnel. The contribution marks MBI’s third contribution to the fund.

JLG receives design awards

Grand Forks, N.D.-based JLG Architects recently received three design awards from the North Dakota chapter of the American Institute of Architects in recognition of “distinguished accomplishments in design and the profession of architecture.” Projects earning the awards included the Grand Forks Central High School fine arts addition, the Mayville State University sciencelibrary building and the Williston State College Frontier Hall.

UND Center for Innovation receives national award

The University of North Dakota Center for Innovation Foundation in Grand Forks has received the Excellence in Technology-Based Development award from the State Science and Technology Institute, a national organization focused on tech-based economic development.

The center was selected for the award in recognition of its work to enhance the ability of tech-based ventures to access entrepreneur capital. Since 2006, it has helped 150 angel investors launch nine angel funds in North Dakota and northwest Minnesota. The funds have invested in 38 ventures which have ultimately resulted in more than $24 million of equity investing.

Topeka business, city leaders visit Fargo

About 30 business and community officials from Topeka, Kansas, spent two days in Fargo at the end of September as part of the Topeka Chamber of Commerce’s annual program designed to allow business leaders to learn from cities of similar size. The Fargo Moorhead West Fargo Chamber of Commerce and the Greater Fargo Moorhead Economic Development Corp. led the delegation on a tour of the city, including stops at the Microsoft campus, the research and technology park at North Dakota State University and Concordia College’s Offutt School of Business.

Brookings, Pine Ridge Reservation selected for economic development help

The USDA Rural Development agency and South Dakota State University in Brookings have selected the Brookings Area Commute Region, comprised of Brookings, Deuel, Hamlin, Kingsbury and Moody counties, and the Pine Ridge Indian Reservation Districts’ Region to receive economic development coaching and technical assistance as part of the Stronger Economies Together initiative.

The goal of the initiative is to strengthen the capacity of rural communities and counties to collaborate in developing and implementing economic development blueprints. Selected regional teams will develop a vision and goals, examine regional demographics, opportunities, assets and barriers and create a regional economic development plan.

Work begins on Hwy 85 bypass in western ND

State and local officials joined for a groundbreaking ceremony Sept. 24 to kick off the beginning of a bypass project that will re-route Highway 85 traffic out of the center of Watford City, N.D., and onto a new roadway southwest of the town.

Phase 1 of the project will include a four-lane highway with an entrance west of Watford City and a reconnection south of the town. That portion of the project is expected to be complete at the end of the 2014 construction season.

Phase 2 will begin at Highway 23 southeast of Watford City. That project is expected to be complete sometime in 2014.

Knife River Corp., a subsidiary of MDU Resources Group Inc., received a $51 million construction contract for the project. It is the largest road construction contract Knife River has been awarded in North Dakota.

The state Department of Transportation has also begun work on a $300 million project to expand the highway to four lanes between Watford City and Williston, N.D. The first phase of that project is tentatively slated for completion next year.

Fall enrollment steady at SD universities

The South Dakota Board of Regents reported steady enrollment at the state’s six public universities for the fall semester.

The number of full-time equivalent students was up by about 300, while total headcount was down by 65 students. More than 36,000 students are enrolled at the six universities.

The Board of Regents also found that the total number of students graduating with an associate or bachelor’s degree at the state’s six public universities has grown by 33 percent since 2005.

USDA-funded tribal administration building open

A grand opening was held Sept. 20 for the Sisseton Wahpeton Oyate administration building in Agency Village, S.D., to celebrate the completion of the $31.2 million project. The project was funded by a USDA Rural Development Community Facilities loan and represents the largest Community Facilities loan ever distributed by the South Dakota Rural Development agency.

The Sisseton Wahpeton Oyate Indian Tribe is located on the Lake Traverse Reservation in northeastern South Dakota and southeastern North Dakota. The new facility will serve the tribe’s 7,000 members and will replace 26 individual offices.

Bobcat, NDSU sign R&D deal

Bobcat Co. has pledged its continued support of research and development at North Dakota State University’s Technology Incubator in Fargo, where Bobcat is an anchor tenant.

Bobcat will match $2 for every dollar provided by a grant through North Dakota’s Centers of Excellence program, which pairs research and and development hubs at the state’s universities and colleges with private companies in an effort to stimulate economic growth. Bobcat is contributing more than $400,000 toward the program, which will result in more than $200,000 in grants for NDSU.

Interstate Telecommunications gets broadband loan

Interstate Telecommunications Cooperative Inc., based in Clear Lake, S.D., will receive a $24.9 million USDA loan to upgrade its plant and complete an FTTP network to provided enhanced broadband services for its customers. The loan was provided through the agency’s telecommunications loan program and will finance the installation of fiber networks.

A&B Business offers erasable toner printer

In an effort to reduce paper usage, Toshiba has launched a multifunction printer that can erase printed images and text, allowing paper to be reused up to five times. The printer uses a special toner whose color is removed by passing the paper through the eraser at a high temperature. The equipment also sorts paper into reusable and un-reusable sheets and can digitize documents prior to erasing. Toshiba partner A&B Business, which has 17 locations throughout the Dakotas, Minnesota and Wyoming, is making the equipment available to its customers.

Study shows impact of historic preservation in SD

A study commissioned by the South Dakota State Historical Society and conducted by Rutgers University found that about 5,500 jobs created in the state in 2011 were directly attributable to spending on preserving and rehabilitating buildings, places and objects of historical and cultural significance. The study also found that historic preservation spending of $275 million generated $96.3 million in additional income. Tourist visiting historic and cultural attractions accounted for 22 percent of the state’s visitors and $237 million in spending.

Cargill board elects MacLennan CEO

Cargill’s board of directors has elected David MacLennan, currently the company’s president and chief operating officer, as CEO, effective Dec. 1. He will succeed Gregory Page, who will serve as executive chairman.

MacLennan joined Cargill in 1991 and has held various leadership positions within the financial, risk management, energy and animal protein businesses in the U.S., London and Geneva. He was elected president and chief operating officer in 2011.

In addition to his role as CEO, MacLennan will retain the title of president of Cargill and will continue as a director of the company.

Starion Financial hires Dowling as EVP of business banking

Tim Dowling has joined Starion Financial as the executive vice president of business banking. In this role, Dowling partners with the market presidents to oversee the general management of the designated branch locations including staff, financial and sales performance, among other duties.

Dowling has more than 40 years of banking experience. He most recently served as a regional president for a large community bank in Washington state.

Klein appointed to SRT board of directors

SRT Communications announced that Deanna Klein has been appointed to the SRT board of directors for District 4, representing Minot, Burlington, and Surrey, N.D.

Klein is an associate professor of business information technology and Minot State University and has served as a public relations and academic liaison for the InfoTech – Minot Technology Center.

SRT Communications is based in Minot and is the state’s largest telephone cooperative. It employs more than 200 people and serves more than 48,000 customers.

Hospice of the Red River Valley names executive director

Kevin Provost has been named executive director of Hospice of the Red River Valley in Fargo. He holds a master of business administration degree and has more than 20 years of health care leadership experience. He most recently worked as a vice president at Sanford Health. Prior to that, he served as an administrative director with Essentia Health-St. Joseph’s Medical Center in Brainerd, Minn.

ND Petroleum Council inducts Mau into hall of fame

The North Dakota Petroleum Council inducted Bob Mau, president of MW Industries, into its hall of fame during the group’s annual meeting, held September in Grand Forks, N.D. Mau is the 10th inductee into the hall of fame and was selected for his more than 35 years of service and commitment to promoting and developing the oil and gas industry in North Dakota.

Mau’s career in the oil industry began as a worker on service rigs and pumping wells. He later founded several businesses, including exploration company Eagle Operating Inc., Wolverine Drilling Co., Eagle Well Service and, most recently, Kenmare, N.D.-based drilling rig manufacturing company MW Industries, where he currently serves as president.

Mau has served on the NDPC board of directors and executive committee since 1999.

Riffey named Wells Fargo senior business relationship manager

Travis Riffey has joined Wells Fargo’s business banking team in Fargo as a senior business relationship manager. In this role, he will work with business customers to help meet their commercial deposit, cash management and credit needs. Riffey has more than 12 years of financial services experience. He joined Wells Fargo in 2002 as a specialist for Wells Fargo Banker Connection in Fargo.

JLG promotes Medd to branch manager

Todd Medd has been named branch manager of JLG Architects’ Fargo office. Medd, a registered architect and project manager, has worked on several notable projects in the area, including the Fargo Loretta Block building renovation, Black Gold corporate headquarters and the Sanford Health clinic in Moorhead, Minn. He is active in numerous local and state groups and is a graduate of North Dakota State University in Fargo and the University of North Dakota in Grand Forks.

Medd joined JLG in 2010. He previously worked for HKS, one of the largest architecture firms in the country.

USD professor receives excellence in education award

Mark Baron, chair of the division of educational administration within the School of Education at the University of South Dakota, has been awarded the Excellence in Education award by AdvancED for his contribution to PK-12 schools and higher education in South Dakota.

The honor is based on several criteria, including generating a common vision and mission for higher expectations among students, faculty and the education community, demonstrating a record of significant and distinguished contribution to the education profession, providing a lasting positive impact on student learning, and serving as a role model for students and/or future educators.

Baron joined the USD education school in 1991. He has worked in higher education for more than 20 years.

AdvancED is the world’s largest education community, serving more than 30,000 public and private schools and districts across the United States and in more than 70 countries that educate over 16 million students.

McQuade becomes first AE2S chief financial officer

AE2S (Advanced Engineering and Environmental Services Inc.) has hired Sam McQuade as the first chief financial officer for AE2S and its affiliated companies. McQuade brings 17 years of experience with start-up, midsize, and Fortune 500 firms, including technology and professional services businesses with engineering, construction, financial services, and consulting activities.

Originally from Bismarck, N.D., he earned a joint master of business/master of arts degree in international business and cross-cultural communications from European University in Geneva, Switzerland. He also has a bachelor's degree in accounting from the University of Mary in Bismarck and a Six Sigma Green Belt certification.

Svihovec leads direction of SDAHO

Angelia Svihovec, administrator and CEO of the Mobridge Regional Hospital in Mobridge, S.D., has been elected chairperson of the South Dakota Association of Healthcare Organizations. Svihovec served the last year as chairperson-elect of SDAHO. She has worked at the Mobridge Regional Hospital since 2001 and has served on the SDAHO board of trustees since 2009.

As chairperson of SDAHO, Svihovec will provide leadership and direction for health care across South Dakota on a state and federal level along with the 10-member board of trustees. SDAHO represents 54 hospitals and 33 long-term care facilities across the state.

Larson Engineering hires regional manager

Larson Engineering Inc. has hired Kevin Nelson as regional manager to oversee its North Dakota operations. Nelson will be responsible for the company’s market expansion in the region and developing a broad coalition of engineering services to meet the needs of its diverse client base.

Nelson was formerly the office manager for Ulteig’s Bismarck, N.D., operations, as well as a member of the company’s board of directors. He currently serves on the State Board of Registration for Professional Engineers and Professional Land Surveyors for North Dakota.