Economic Summit: Our Path Forward Program

2020 Rochester Area Chamber of Commerce

ECONOMIC

SUMMIT

OUR PATH FORWARD 2021

AGENDA Welcome and Introductions

7:30 - 7:40am

Kathleen Harrington President, Rochester Area Chamber Lizzy Haywood President, People’s Food Co-op Chair, Rochester Area Chamber Board of Directors

7:40 - 8:30am

Olmsted County Business Reaction in the time of COVID Jennfier Hawkins Community Economics Extension Educator University of Minnesota Extension Service

Brigid Tuck Senior Economic Analyst University of Minnesota Extension Service - Center for Community Vitality

8:30 - 9:15am

Market Behavior & Investment Landscape Gus Sauter Former CIO, Managing Director, and Portfolio Manager The Vanguard Group

COVID-19 Impact Analysis & Recovery Scenarios Shuprotim Bhaumik Partner, HR&A

Erin Lonoff Principal, HR&A

Patrick Seeb Moderator

Director of Economic Development & Placemaking, DMC

Townhall Meeting with President Kashkari Neel Kashkari President Minneapolis Federal Reserve Bank

9:15 - 10:00am

10:00 - 11:00am

Betsy Singer Moderator Anchor, ABC 6 News

TABLE OF CONTENTS Sponsor Recognition

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Welcome from Chamber Board Chair

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University of Minnesota Extension Service

5

Market Behavior & Investment Landscape

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COVID-19 Impact Analysis & Recovery Scenarios

9

Minneapolis Federal Reserve Bank

11

APPENDIX - REGIONAL ECONOMIC INFORMATION Southern Minnesota Initiative Foundation Update

15

Workforce Development, Inc. Labor Market Update

16

#ShopLocalSafely & #RochMNFood

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Thank you to our Sponsors PINNACLE

GOLD

BRONZE

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SILVER

MEDIA

COMMITTED TO THE BUSINESS COMMUNITY At Merchants Bank, we’re committed to creating vibrant local economies and helping our customers succeed. It’s who we’ve been for the last 145 years. We’re ready to be your trusted advisor, your partner, and join you every step of the way as we work toward your financial goals together.

Are you prepared for 2021? Get together with one of our local bankers for a financial check up today. Call us to get started.

Katie Lund Mortgage Lender

Jarett Jones Commercial Banker

Dan Nistler Market President

 (507) 535-1520

Member FDIC

Nick Pederson Commercial Banker

Nicole Williamson Mortgage Lender

 3586 55th Street NW, Rochester |  (507) 282-7535  www.merchantsbank.com

 1600 Greenview Drive SW, Rochester Subject to approval.

Dear Friends,

Welcome from the Board Chair

Thank you for coming today, and on behalf of my fellow Board members, welcome to the Rochester Area Chamber of Commerce’s Economic Summit.

It is our hope that you will find today’s virtual session rich with content.

We are facing a period of significant economic and physical stress due to the COVID-19 pandemic. With case counts rising and mixed responses from various agencies, the focus of this year’s Summit will be on the current state of affairs in our region, as well as forecasting what is to come.

We will hear from a leading economic figure in Minneapolis Federal Reserve Bank President Neel Kashkari. Given his position and responsibilities, President Kashkari will share policy insights and forecasting models, both for the nation and our region. We will also examine both local and county-wide trends and discuss the short-, medium-, and long-term implications that COVID-19 will have on our regional economy.

The Chamber’s mission is straightforward. We are a service organization committed to promoting business success which in turn supports a thriving community. During COVID, the Chamber has pivoted its service model to continue to deliver valuable programming, information, and resources to its members and the community.

Thank you for joining us today and investing your time in our business community. As this virtual summit wraps up, I urge you to stay informed about Chamber programming and events. There are many opportunities to engage with topics such as workforce development, public affairs, and the #ShopLocalSafely campaign.

Best wishes, Lizzy Haywood CEO, Peoples Food Co-op Chair, Board of Directors

Board of Directors

AnJuanna Napue, Mayo Clinic Cathy Fraser, Mayo Clinic Chad Behnken, Hamilton Real Estate Christine Beech, Kabara Institute for Entrepreneurial Studies Christy Blade, Post Bulletin, LLC* Dan Nistler, Merchants Bank Dave Pederson, Dunlap & Seeger, P.A. Emily Benner, Preventice* James Kelly, Construction Partnership* Jack Priggen, Cardinal of Minnesota Jessica Eidem, IBM Corporation John Eckerman, RSP Architects John Reed, Rochester Airport Co.* John Wade, RAEDI

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Joselyn Raymundo, Rochester Home Infusion Laurie Ackerman Opportunity Services Lizzy Haywood, People’s Food Cooperative* Dr. Lori Carrell, University of Minnesota Rochester Marge Kelley, Express Employment Professionals Matt Morehead, Carlson Capital Management Michael Munoz, Rochester Public Schools Nate Nordstrom, Brandhoot Omar Nur, Somali American Social Service Organization Sarah Miller, White Space Scott Eggert, Broadway Plaza* Sharon Schneller, Olmsted Medical Center Steve Dunn, Taco Jed Teresa Czaplewski, Ranfranz & Vine Funeral Home

* Denotes Officer / Executive Committee member

mayoclinic.org

Focused on a stronger, healthier Rochester.

Moving forward as a community, together.

Š 2020 Mayo Clinic

University of Minnesota Extension Service Extension plays a key role in the University of Minnesota's mission: they bring Minnesotans together to build a better future through University science-based knowledge, expertise and training. University of Minnesota Extension works in rural, suburban, urban and tribal communities and beyond. More than 1 million people are reached annually by Extension education.

Jennifer Hawkins Jennifer is a Community Economics Extension Educator with the University of Minnesota Extension Center for Community Vitality. In this role, she collaborates with partners in Southeast and Southcentral Minnesota to conduct applied research projects that inform economic development decision making. In her role, she also develops and delivers educational programming on economic and community development topics.

Brigid Tuck Brigid is the Senior Economic Analyst for the University of Minnesota Extension Center for Community Vitality. She conducts analyses and writes reports for the Economic Impact Analysis (EIA) program, which she helped launch in early 2009. Since then, the EIA program has issued more than three dozen studies, covering numerous economic sectors in Minnesota - including tourism, education, manufacturing, retail, infrastructure and local foods.

Links to More Information: ¡

Rochester Small Business Report

¡ Olmsted County Small Business Economic Impacts Report ¡

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Extension Community Vitality Research, Education, and Programs

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Individuals and Families • 401(k) rollovers • College planning • Tax savings investments • Income strategies during retirement

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Business Owners • 401(k) plans • Business and tax savings investments • SIMPLE IRA plans • SEP IRA plans

Schedule your free, no obligation consultation today or start with eMoney - a short, free questionnaire that will help you determine where you stand. Visit www.merchantsbank.com/planwithandy to start.

Andy Roberts  (507) 282-7535  1600 Greenview Drive SW, Rochester  www.merchantsbank.com/planwithandy

Financial Advisor | (507) 529-7302 ajroberts@merchantsinvest.com

Securities offered through Securities America, Inc., member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Merchants Bank, Merchants Investment Services, and Securities America companies are separate entities.

Not FDIC Insured - No Bank Guarantees - May Lose Value - Not a Deposit Not Insured by any Government Agency

Market Behavior & Investment Landscape George U “Gus” Sauter Mr. Sauter retired from his role as Vanguard’s first Global Chief Investment Officer at the end of 2012, after 25 years with the company. As Vanguard’s CIO, he was a member of the CEO’s senior staff, and he oversaw portfolio management of Vanguard’s $1.7 trillion of internally managed stock, bond, and money market funds. He also was a member of the investment committee that oversaw the portfolio management of the external advisors that Vanguard used.

Mr. Sauter worked on industry issues with governmental entities, including the SEC and the Federal Reserve, as well as providing Congressional testimony. He served as a member of various industry committees, including the Investment Company Institute Trading Committee, the NYSE Institutional Advisors’ Trading Committee, the NASDAQ Quality of Markets, and the Securities Industry Association Trading Committee. He participated on the AIMR (now CFA Institute) Best Execution Task Force.

He currently is a member of six investment committees, including a foundation, an endowment, an investment advisor, an Australian retirement fund, FINRA, and the PGA of America. He is a past member of the University of Chicago Booth School Council for the dean. He also writes articles for The Wall Street Journal online edition. He received his bachelor’s degree from Dartmouth College and his MBA from the University of Chicago.

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Introducing For over 40 years, Southern Minnesota Municipal Power Agency (SMMPA) has fulfilled its mission of safely providing our member utilities with reliable and affordable wholesale electric service in an environmentally responsible manner.

While holding fast to that mission, changing times call for bold action and we are laying the groundwork for a reimagined SMMPA which includes the following initiatives: • • • • • •

Retiring our coal generation after 2030, replacing it primarily with wind and solar Planning to be at least 80% carbon-free and reduce carbon emissions nearly 90% compared to 2005 levels in 2030 Building on successful energy efficiency programs Deploying an electric vehicle charging network connecting member communities Supporting economic development in member communities Maintaining competitive rates and striving to hold increases to at or below CPI

This is SMMPA 2.0. Learn more at www.smmpa.com/smmpa2.0

COVID-19 Impact Analysis & Recovery Scenarios Shuprotim Bhaumik, a Partner at HR&A, is an experienced real estate and economic development advisor who delivers successful strategies to realize financial, economic, and policy goals. At HR&A, Shuprotim advises clients on project financing, land use planning, economic impacts, developer procurement, and public-private partnership models. He crafts and implements public-private partnership strategies for large-scale development projects across the U.S. and in Asia, Africa, and South America, and advises his clients on leveraging technology and innovation in designing urban economic development policies for cities across the world.

Since March, Shuprotim has led HR&A’s efforts to project the current and future impacts of the COVID-19 pandemic. He has led studies in Nassau and Suffolk Counties on Long Island, NY, as well as Rochester, MN to help communities understand the economic effects of the pandemic and begin planning for economic recovery. Shuprotim also has experience working in Southern Minnesota; in 2018 he completed a long-range economic forecast for the eight-county region in Southeast Minnesota that is helping to guide local policy and investment planning.

Erin Lonoff is a Principal at HR&A Advisors, working at the intersection of the public and private sectors. She leverages her experience with urban planning, economics, and real estate to contribute to the vitality of cities and the public realm. Based in Minneapolis, Erin has worked throughout the Midwest and across the country creating open space programming and revenue generation strategies, leveraging transit investment for equitable economic growth and dense, sustainable real estate development, and developing large-scale master plans that create economic and fiscal benefits for cities and their surrounding regions.

Erin brings significant experience leading economic impact analyses that project local and regional growth. Recent work includes a long-range population and economic forecast for the eight-county region in Southeast Minnesota to help guide local planning and investment decision-making. Erin recently completed a study with the Destination Medical Center analyzing the impacts COVID-19 has had to-date on the economy and forecasting scenarios of the impacts the pandemic may have on development potential in the near- and long-term for Downtown Rochester.

Links to More Information: ¡

DMC 5 Year Update

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Webinar: Post Pandemic City

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YOUR BUSINESS RESOURCE FOR ENERGY EFFICIENCY

Whether you are retrofitting your existing building or considering new construction, it makes sense to be sure your business is as energy efficient as possible. Simply put, by reducing your energy use you can save money. RPU’s Partnering in Energy Solutions program can help. RPU designed this program to connect you with expert vendor resources, or Energy Solutions Partners (ESPs). These ESPs will: • • • • • •

Analyze your current and future energy use and needs Propose cost-cutting changes, as well as energy efficient upgrades to your equipment Provide payback analysis of suggested improvements Assist with the purchase and/or implementation of suggested improvements List and apply for all available RPU Conserve & Save® rebates Assist with applying for financing – 0% interest, up to $25,000 for qualified customers!

Visit our website at www.rpu.org to download a Partnering in Energy Solutions brochure with detailed program information. Or call your RPU Energy and Environmental Advisor to learn more:

Anna Basimamovic 507. 280.1565

Jan Blevins 507.280.1578

Dru Larson 507.280.1607

Josh Mason 507.280.1588

Townhall Meeting Speaker

NEEL KASHKARI

PRESIDENT Federal Reserve Bank of Mineapolis Neel Kashkari took office as president and chief executive officer of the Federal Reserve Bank of Minneapolis on Jan. 1, 2016, following a national search conducted by the Bank’s independent board of directors.

In this role, he serves on the Federal Open Market Committee, bringing the Ninth District’s perspective to monetary policy discussions in Washington, D.C. In addition to his responsibilities as a monetary policymaker, Kashkari oversees all operations of the Bank, including supervision and regulation, treasury services, and payments services.

Kashkari leads the Bank’s many initiatives. Among them, he was instrumental in establishing the Opportunity & Inclusive Growth Institute, whose mission is to ensure that world-class research helps to improve the economic well-being of all Americans.

Most recently, he has joined with retired Minnesota Supreme Court Justice Alan Page to propose amending Minnesota’s constitution to make a quality public education a fundamental right. This effort supports the Fed’s mandate to achieve maximum employment, with education being a key to obtaining a good job.

Under Kashkari’s leadership, the Minneapolis Fed also released an action plan on “Ending Too Big to Fail,” which calls for tighter bank regulations to avoid future taxpayer bailouts of large financial institutions.

Committed to increasing transparency at the Fed, Kashkari has published in the Wall Street Journal, Washington Post, and Financial Times and is active on Twitter and Instagram. He also serves on the board of the Economic Club of Minnesota and as a member of the Aspen Economic Strategy Group.

Kashkari began his career as an aerospace engineer at TRW in Redondo Beach, Calif., where he developed technology for NASA space science missions. Following graduate school, he joined Goldman Sachs in San Francisco, where he helped technology companies raise capital and pursue strategic transactions.

From 2006 to 2009, Kashkari served in several senior positions at the U.S. Department of the Treasury.

In 2008, he was confirmed as assistant secretary of the Treasury. In this role, he oversaw the Troubled Assets Relief Program (TARP) during the financial crisis. Kashkari received the Alexander Hamilton Award, the Treasury Department’s highest honor for distinguished service.

Following his tenure in Washington, Kashkari returned to California in 2009 and joined PIMCO as managing director and member of the executive office. He left the firm in 2013 to explore returning to public service and, in 2014, ran for governor of California on a platform focused on economic opportunity.

Raised in Ohio, Kashkari earned his bachelor’s and master’s degrees in mechanical engineering at the University of Illinois at Urbana-Champaign and his MBA from the Wharton School at the University of Pennsylvania.

He lives with his wife, Christine, children, Uly and Tecumseh, and Newfoundland dogs—Webster and Newsome—in Orono, Minn.

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Townhall Moderator BETSY SINGER ANCHOR ABC 6 News

Betsy is the weekday news anchor at 5:00 & 6:30pm on ABC 6 News in Rochester. She started at ABC 6 News in July of 2009. Betsy got her start in television news as a reporter and anchor in Columbus, Mississippi at WCBI. From there, she was the weekend anchor for WTXL in Tallahassee, Florida. She also worked as a reporter/anchor for WHBQ in Memphis, TN where she covered the Jonesboro, AR school shooting in 1998 which was the turning point of her career. She decided to get out of television and focus on her family back in MN and WI. As the youngest of seven, Betsy returned home and worked as a job coach for people with developmental disabilities in the Winona area. Within a year, the local NBC affiliate in Rochester, MN asked her to be the 6:00 and 10:00 evening anchor, where she met and married her husband, Ken Quattrin. The two were married in 2001 and have two sons.

www.shop-local-safely.com

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Additional Information from the Minneapolis Fed Minneapolis Fed and the Regional Economy ·

COVID-19 and the Ninth District economy: A dashboard

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Regional Economic Indicators

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Subscribe for Minneapolis Fed updates

Banking and Monetary Policies ·

COVID-19 stress test tool: Run your own stress tests on banks

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Medium article: “Why I dissented” (September 18, 2020)

Education and Achievement Gaps ·

Star Tribune op-ed with Justice Alan Page: “Our push for an education amendment has only gotten more relevant” (July 13, 2020)

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Education achievement gaps and constitutional amendment effort

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Minneapolis Fed report on Minnesota’s education achievement gaps

Addressing Racial and Economic Disparities ·

Racism and the Economy event series with the Minneapolis, Atlanta, and Boston Feds

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Minneapolis Fed’s Opportunity and Inclusive Growth Institute

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Subscribe to receive the Institute’s complementary print magazine, “For All”

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Minneapolis Fed’s Center for Indian Country Development

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We’re proud to be a supporter of economic development and ready to power progress in SE Minnesota.

Let us help you build or expand your business through our: Revolving Loan Fund Business Planning Support Rebates and Incentives Development Sites

Oronoco, Minnesota ph: 507.367.7000 • web: peoplesenergy.coop

MEMBER FOCUSED, COMMUNITY MINDED

MORE THAN YOUR POWER PROVIDER14

APPENDIX

REGIONAL ECONOMIC INFORMATION Southern Minnesota Initiative Foundation (SMIF) President/CEO Tim Penny

Impact Report 2020 COVID Impact Update The Case for Living Rural

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Unemployment Numbers Update November 18, 2020: • Minnesota overall rate = 3.9% (2.5% in November, 2019) • Southeast Region = 3.3% (2.2% in November, 2019) • Variations from 2.3% (Houston County) to 4.3% (Dodge County) CLICK TO VIEW: Regional Profile - Economic Development Region 10 - Southeast

Jinny Rietmann Executive Director, Workforce Development, Inc. 507.292.5165 jrietmann@wdimn.org

Mark Schultz Regional Labor Market Analyst, DEED 507.205.6068 mark.schultz@state.mn.us

#ShopLocalSafely www.RochesterMNChamber.com