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September 2011

Hospitality

MONEYpg 30

LEADERSHIPpg 40

TECHNOLOGYpg 43

SALES/MARKETING pg 19

ECONOMIC DEVELOPMENT pg 18

CommunitySpotlight:

Watford City: Flurry ofeconomic development

pg 28

Company Spotlight:Avera partnering to improvepeople’s health and lives pg 16

FinanceGrowing companies and jobsthrough angel investmentor venture capital pg 20

Retail

Fall, spring seasons importantto hospitality industry pg 24

Retail industry seeingsteady growth pg 26

4 Prairie Business September 2011

Volume 12 No. 9CONTENTS

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20

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6 From the Editor’s Desk

8 Professional Spotlight

8 Matthew Mohr

9 Prairie News

14 Prairie People

Company Spotlight: AveraPartnering to improve people’shealth and livesAvera prides itself on partnering with people and

organizations who are seeking to improve the health and

lives of people in the communities that the health care

organization serves

18 Economic Development -How are our states stacking up?

19 Sales and Marketing -Digital display marketing has power

Cover Story: Growing companiesand jobs through angel investmentor venture capitalA variety of different types of companies are finding

that an angel investor or those working with venture

capital just might be the best way to garner funds to

start a business

Cover Story: Fall, spring seasonsimportant to hospitality industryWhen it comes to the hospitality industry, people have

different perceptions about the four seasons.

Cover Story: Retail industry seeingsteady growthRetail leaders in North Dakota and South Dakota are

finding that the industry continues to steadily grow

despite economic worries that have hit other parts of

the nation

Community Spotlight: Watford Cityflurry of economic developmentThose who live in Watford City, ND have never seen

anything like what has happened over the last three years

30 Money -Acquiring small business funding

40 Leadership and Management –Maximizing productivity and profitability

42 Viewpoint

43 Technology - Importance of thedevelopment of the different onlinetraining packages

46 By the Numbers

Taking a second look at SouthDakota’s Oil and Gas ResourcesA South Dakota initiative to pull together all of its oiland gas resource data in one comprehensive, onlinelocation could have a sizeable impact on economicdevelopment in the state

Sound environmental practicesessential in oil countryHess Corporation views North Dakota as one of itslegacy homes in the world and wants to make certainthat it is the employer and neighbor people want for thelong term

Biofuels policy supported, but moreneeds to be doneMany industry leaders support a biofuels policy, but alsobelieve that more things can be done to help address anydeficiencies in a national policy

Next MonthIn October, Prairie Business magazine will discuss why a technology web strategy isimportant for business growth and also feature how the region’s health care industry issolving bringing health care professionals into the region.

On the airJoin Prairie Business magazine Editor Alan Van Ormer and host Merrill Piepkorn onTuesday, September 13 at 3 p.m. on any Prairie Public radio station to hear more aboutthe September cover stories. To listen to Prairie Public, visitwww.prairiepublic.org/radio/hear-it-now.

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Mike Jacobs, PublisherAlan Van Ormer, EditorScott Deutsch, Sales ManagerTina Chisholm, Production ManagerBeth Bohlman, Circulation ManagerKris Wolff, Layout Design, Ad Design

NNAATTIIOONNAALL AACCCCOOUUNNTT SSAALLEESS MMAANNAAGGEERR::

Scott Deutsch 701.232.8893Grand Forks/Fargo/Moorhead/northwestern MN

SSAALLEESS::

Brad Boyd 800.641.0683Bismarck-Mandan/ west central ND/western SD

John Fetsch 701.232.8893Fargo/Moorhead/eastern ND/western MN/eastern SD

EEDDIITTOORR::Alan Van Ormer 701.232.8893

[email protected] AAddvviissoorrss::Dwaine Chapel, Executive Director, Lake Area Improvement Corporation;Bruce Gjovig, Director, Center for Innovation; Lisa Gulland-Nelson,Communications Coordinator, Greater Fargo Moorhead EDC; Dave Haan,Director of Public Relations and Digital Development at Lawrence &Schiller; Dusty Johnson, Chief of Staff for South Dakota Gov. DennisDaugaard’s office; Brekka Kramer, General Manager of Odney; MatthewMohr, President/CEO, Dacotah Paper Company; Nancy Straw,President, West Central Initiative

Prairie Business magazine is published monthly by the Grand ForksHerald and Forum Communications Company with offices at 8083rd Ave. S., Ste. 400, Fargo, ND 58103. Qualifying subscriptionsare available free of charge. Back issue quantities are limited andsubject to availability ($2/copy prepaid). The opinions of writersfeatured in Prairie Business are their own. Unsolicited manuscripts,photographs, artwork are encouraged but will not be returnedwithout a self-addressed, stamped envelope.

Subscription requests:Free subscriptions are available online to qualified requestorsat www.prairiebizmag.com.

Address corrections:Prairie Business magazine PO Box 6008 Grand Forks, ND 58206-6008 [email protected]

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For daily business newsvisit prairiebizmag.com

I knew very little bit about the topic when I started. However, aftertalking to those who have been taking risks for many years, I found outjust how important this niche can be to the evolution of companies andthe creation of jobs in our region.

In short, an angel investor or a person who works with venturecapital provides some sort of risk capital to companies who are unableto find a source of capital from other sources.

What I find very interesting is the fact that many of theseindividuals or groups are taking great risk in helping get thesecompanies off the ground and therefore, growing jobs in our area.These people have to put together a pool of money to invest, then find asuccessful investment over a period of time, and then exit theinvestments in a timely and profitable manner.

In addition, there is the chance of a great failure rate of theinvestments. One number that I was given is that seven out of 10 ofthese investments fail! That is a great risk by these individuals andgroups.

Angel investment and venture capital is all about starting andgrowing companies, which also means providing jobs for our localeconomy. It is also about an angel investor or venture capitalist findingthat successful investment that will give an investor a good return andmake the investor able to re-invest into the community.

Many individuals would not take this kind of risk, but imagine whatour economy would be like if these individuals did not stick their necksout to develop companies and jobs! PB

In this month’s issue I dove into the discussion ofhow angel investment and venture capital fits intothe overall economic picture of developing jobsand companies.

From the editor’s desk

Another way to develop our economy


As a partner for the past year, she is a business consultant foragri-business and technology companies across the nation.Currently, she is working on a wind farm project in New York,

as well as working with small manufacturers in South Dakota, andassisting major venture capital companies like Linn Grove Ventureswith different projects.

Hendrickson, who lives near Lennox, SD, but works in Sioux Falls,SD, started working in microbiology and chemistry at a crime lab.After that she went to a CPA firm and then worked with a medicalgroup. She has a bachelor’s degree in Microbiology and also receivedher CPA.

Then Hendrickson had her first taste of working with newbusinesses as the Executive Director of the Enterprise Institute, anorganization known for working and helping entrepreneurs get upand running in South Dakota.

“Every experience has helped with what I am doing now,” she says.

“Initially, this is not what I wanted to do. I expected to be a scientist ina lab. After working at a CPA firm, I began to see how things fittogether, especially in the technology and business side.”

Hendrickson says her parents were a huge influence on her careerpath. “They taught me how to bounce back when things weren’t goingthe way I expected. In addition, they instilled in me that there isalways more than one way to do things.”

As for young women heading down a career path, Hendricksonrecommends they not forget the training. “You have to do the hardwork to get anywhere,” she advises. “Don’t take short cuts. Grow yoursupport network. They help you every day.

“You can never have enough people to give you opinions,” she adds.“Your network helps you grow and helps you fill in your weaknesses. Allof those things do tie together.” PB

Alan Van Ormer - [email protected]

Technology Policy

Non-traditional career path to the top

The proliferation and accessibility of technologycreates the need to have a written technology usepolicy. From cell phone and texting to web

browsing, many potential abuses can be averted byhaving a policy in place.

Most people have observed a customer waiting whilethe person employed to serve their needs takes a phonecall from a child or finishes a game on their computer.Leaving customers waiting to handle simple personalneeds does not lead to business success or customersatisfaction, so managers tend to “police” personalactivity during working hours, but many people are verycreative hiding their personal use of technology.

Without a policy in place it is hard to control theamount of time employees spend using convenienttechnology (either personally owned or businessproperty) to handle personal affairs instead of takingcare of business needs. Pornography, language choicessuch as using swear words, are easy to prohibit, but hard

to control. With a policy in place, action can be taken ifabuse is discovered. Unfortunately, many people willmake poor communication choices often offendingothers, so a business manager is often put in the positionof monitoring all employee communications.

A business technology policy should reflect theculture of the organization and keep the customer’sopinions and needs in mind. As technology proliferates,every business is placed in the position of having todecide what is and is not acceptable use of informationservices and equipment. Most business law offices willhave a sample policy available for their clients to review.PB

Professional Spotlight

Business Advice

MARCIAHENDRICKSON

PartnerValAd Services

MATTHEW D. MOHRCEO,

Dacotah Paper [email protected]

Personal cell phone usage, web browsing for personal needs, and constanttext message “chatter” is a rapidly growing problem for businesses.

Marcia Hendrickson makes no bones about the fact that she made her way to hercurrent position as a partner in ValAd Services by a non-traditional route.

Call 1-800-908-BANK or visit Bremer.com.

Member FDIC. ©2011 Bremer Financial Corporation. All rights reserved.

The economy is made up of millions

of businesses – large and small.

But we’re here to focus on the most

important one. Yours. Let’s seize

opportunities and get growing. Together.

Building your business. Strengthening

our economy. Let’s take action.

Your business. Our bank.

Let’s make our ownpositive indicators.

prairiebizmag.com 9

PROMINENT DOWNTOWNFARGO OFFICE BUILDING SOLD

Downtown Fargo’s largest multi tenantoffice building has been sold. The DakotaCenter Building at 51 Broadway, formerlyknown as Dakota Bank Building, wasrecently acquired by NetREIT, Inc., a realestate investment trust with headquartersin California. The seller was Chicago-based Dakota Bank Building LimitedPartnership which had owned the propertyfor nearly 20 years. The sale price was notdisclosed. Key tenants in the buildinginclude Merrill Lynch, RestaurantTechnology Services, UBS Financial, StateBank & Trust, and Fredrikson & Byron LawFirm.

NetREIT plans major upgrades to theproperty including renovations to thelobbies, elevators, rest rooms, commonareas, parking lot, as well as redesigning theprimary Broadway entrance. “Our visionis to re-energize this property to once againmake it the flagship office building ofdowntown Fargo,” says Gary Katz, SeniorVice President of NetREIT.

NetREIT is a diversified real estateinvestment trust which owns property inseveral western states. NetREIT was drawnto Fargo and the Dakota Center propertyafter researching the stable regionaleconomy, strong track record of recentredevelopment in downtown Fargo, andthe property’s stable tenant history. Katzsays, “I was in Fargo several times lastwinter and was continually impressed withthe local economy and resurgent ’vibe’ ofdowntown… this in spite of coming toFargo for the first time in the middle of aFargo winter.”

The Dakota Center property wasdeveloped in the 1980s in two phases as theheadquarters of Dakota Bank & Trust andfor tenant lease space. Dakota Bank &Trust was acquired by US Bank in 1992 andsince then, US Bank has been in control ofa majority of the property.

Prairie News

NDTO HOSTS INTERNATIONAL VISITORSPROGRAM AT BIG IRON

The 2011 Big Iron Farm Show will be held at the WestFargo, ND fairgrounds from Sept. 12-15.

Big Iron was designed to promote the global sale ofNorth Dakota agricultural equipment. This year morethan 100 guests are expected to attend the InternationalVisitors Program. Those buyers will be traveling fromAustralia, Kazakhstan, Ukraine, Romania, Turkey, SouthAfrica, Angola, Uruguay, Ghana, Canada, Russia, andMalawi.

The International Visitors Program is a joint effort puton by the North Dakota Trade Office and the U.S.Commercial Service. During their week visiting NorthDakota, guests will attend equipment demonstrationsincluding an equipment parade, tour NDSU’s animalresearch center, as well as local farms.

ALERUS FINANCIAL SELLS SELECT BUSINESSLINES TO FARMERS NATIONAL COMPANY

Alerus Financial has sold its land appraisal and farmmanagement services business to Farmers NationalCompany of Omaha, NE. A leading landowner servicescompany, Farmers National Company operates in over 24states, employs more than 230 employees, and has over 80years experience in landowner services.

The purchase transaction was scheduled to becomplete on Sept. 1 and will include Farmers NationalCompany offices in Grand Forks and Fargo, ND, as wellas the hiring of several Alerus employees currentlyworking in these areas.

Alerus is selling the select business lines so it candedicate all resources to growth of its core financialservice-driven business lines.

Farmers National Company’s primary focus islandowner services. Alerus firmly believes theircustomers will benefit from working with a companywith such specialized focus and expertise. Expansion inthe Red River Valley is a significant step for FarmersNational Company.


Press releases and photos about business news and events in North Dakota, South Dakota andwestern Minnesota can be e-mailed to [email protected] for considerationPrairie News

FOR FIFTH CONSECUTIVE YEAR, U OF M, CROOKSTONNAMED “A BEST IN THE MIDWEST” COLLEGE

The University of Minnesota, Crookston is one of the best colleges in theMidwest according to the nationally known education services company, ThePrinceton Review. This announcement marks the fifth consecutive year theCrookston campus has been recognized. It is one of 153 institutions ThePrinceton Review recommends in its “Best in the Midwest” section of itswebsite feature, “2012 Best Colleges: Region by Region,” that posted Aug. 1,2011, on PrincetonReview.com.

For this project, The Princeton Review asks students attending the schoolsto rate their own schools on several issues — from the accessibility of theirprofessors to quality of the campus food — and answer questions aboutthemselves, their fellow students, and their campus life. In the profile on U ofM, Crookston on the site, one student said that “During the week, life at UMCis ‘easygoing and enjoyable,’ focused on studying, sports, and club meetings.”Another student commented that the small size of the campus “give[s] you anopportunity to be a student leader and be important on campus.”

The 153 colleges that The Princeton Review chose for its “Bestin the Midwest” list are located in 12 states: Iowa, Illinois,Indiana, Kansas, Michigan, Minnesota, Missouri, Nebraska,North Dakota, Ohio, South Dakota, and Wisconsin. ThePrinceton Review also designated 220 colleges in the Northeast,121 in the West, and 135 in the Southeast as best in their localeson the company’s “2012 Best Colleges: Region by Region” lists.Collectively, the 629 colleges named “regional best(s)” constituteabout 25 percent of the nation’s 2,500 four-year colleges.

USD NAMED ‘ONE OF AMERICA’S BEST’ BY THE PRINCETONREVIEW

The University of South Dakota, Vermillion, SD, is one of the nation’s bestinstitutions for outstanding undergraduate academics, according to ThePrinceton Review and its “The Best 376 Colleges: 2012 Edition.”

USD is the only college or university from South Dakota featured on thisyear’s prestigious list and earns praise for its honors program for being “the best-kept secret in the country” and for having professors that are “nearly alwayswilling to go the extra mile for students” in classes such as pre-medicine, biology,business, psychology, and law. Additional comments in the guide’s review statesthat the University boasts winners “almost every year for big scholar ships like theGoldwater and Truman, competing with big, Ivy League, private colleges thatcharge quadruple the amount for the same education.”

“The Best 376 Colleges” is the New York-based education services company’sflagship annual college guide and lists only 15 percent of America’s 2,500 four-year colleges along with three outside the United States. The Princeton Reviewdoes not rank the colleges academically or from 1 to 376 in any category. Thelists are entirely based on The Princeton Review’s survey of 122,000 studentsattending the colleges in the book and not on The Princeton Review's opinion ofthe schools. A profile in the guide includes student responses to academics,student life as well as the publication’s own breakdown of admissions, financialaid, and the “Inside Word.”

ON THIS DATE Sept. 16, 1908General Motors automobile manufacturingcompany was founded by William Crapo ‘Billy’Durant, a Flint, MI, entrepreneur.

prairiebizmag.com 11


CATERPILLAR ANNOUNCES MAJOR WEST FARGO EXPANSIONCaterpillar Inc.’s Remanufacturing & Components Division is planning a

major expansion at its West Fargo, ND plant. In August, Caterpillar officials started a $50 million expansion project that

will create about 250 new jobs during the next three years, nearly doubling theWest Fargo plant’s current workforce of 300 employees. The project includesbuilding a 225,000-square-foot addition to the West Fargo plant whereCaterpillar employees remanufacture parts for Caterpillar mining equipment.The expansion project is slated to be completed in June 2012.

Caterpillar’s remanufacturing operations return end-of-life components totheir original condition in terms of reliability, durability, and performance. TheWest Fargo expansion will help Caterpillar meet the strong demand forremanufactured drive train components for large, off-highway trucks and othermining equipment, including final drives, transmissions, torque convertors, andsteering clutches.

The plant’s expanded footprint will house high-tech machining, metaladditive processes and a state-of-the-art metal sciences lab which will supportthe company’s increased production of remanufactured parts and advancedwear coatings.

Press releases and photos about business news and events in North Dakota, South Dakota andwestern Minnesota can be e-mailed to [email protected] for considerationPrairie News

Net EmploymentOutlook

SeasonallyAdjusted

Increase Decrease No Change Don’t Know

%%%%% %All Industries – Midwest 21 7 69 3 14 9Construction 24 7 65 4 17 –Education & Health Services 1910 67 4 -9 –Financial Activities 15 3 79 3 12 –Government 13 10 74 3 3 –Information 15 7 76 2 8 –Leisure & Hospitality 41 4 53 2 –37Manufacturing – Durable Goods 29 3 65 3 26 –Manufacturing – Nondurable Goods 24 3 70 3 21 –

Other Services 14 6 78 2 8 –Professional & Business Services 27 5 65 3 22 –Transportation & Utilities 25 5 68 2 20 –Wholesale & Retail Trade 23 3 72 2 20 –

Midwest Seasonally Adjusted Net Employment Outlook: +9%

WATERTOWN WORK READY PROJECT UNVEILEDThe Watertown WorkReady project, a community-wide effort to showcase a quality,

skilled work force, is underway.The Department of Labor and Regulation can identify and validate the work ready

skills of the work force through the National Career Readiness Certificate (NCRC), aprogram developed by ACT. South Dakota began issuing the NCRC in April 2010, andis currently one of 38 states issuing the national credential.

Through the Watertown pilot project, businesses are encouraged to have theiremployees complete the necessary assessments to earn this certification. The data canthen be compiled to showcase the work readiness of a community. As an economicdevelopment tool, it quantifies the capabilities of the work force.

Businesses are also asked to have at least one occupation profiled, using this skillsassessment system to determine the skills needed for the job. This information is thenused in the hiring process to ensure potential applicants have the right set of skills.

MINNESOTA STATE COLLEGESAND UNIVERSITIES TRUSTEES APPROVE$277.7 MILLION IN PROJECTS

The Minnesota State Colleges and Universities will seekauthorization for $277.7 million in funding next year forconstruction and remodeling projects across the state in arequest approved by the Board of Trustees.

The request is for $221.8 million in state general obligationbond financing with $55.9 million in debt service paid by thestate colleges and universities system and its institutions,bringing the total project authorization to $277.7 million. It isthe system’s smallest request in six years.

The 25 capital improvement projects focus on updatingscience and allied health facilities; renovating, demolishing andreconfiguring classrooms and other facilities; enhancingclassrooms and lab spaces for workforce development projects;and adding much-needed space at overcrowded campuses.

September 41882

Four hundred electric lights came on

in offices on Spruce, Wall,Nassau, and Pearl streets inlower Manhattan as ThomasEdison hooked up light bulbsto an underground cablecarrying direct currentelectrical power.

On This Date

PRYOR NAMED ULTEIGCHAIRMAN OF BOARD

The Ulteig (Fargo, ND) Board ofDirectors named Shepherd G. Pryor IV asChairman of the Board.

Pryor brings 40 years of experience as asenior-level financial services executive,corporate director, and managementconsultant. He currently leads Shepherd G.Pryor IV Management Consulting, a firmserving major financial institutions,Fortune 500 companies, and law firms. Healso provides value-based managementconsulting as Managing Director of BoardResources, a division of TeamWorkTechnologies, Inc. Previously, Pryor servedas a Senior Vice President and DeputyGroup Head for Wells Fargo Bank, N.A.,where he was responsible for CorporateBanking in the Midwest, Mountain, andPacific Northwest states.

Pryor joined the Ulteig Board ofDirectors in October 2009.

CLICK RAIN PRESIDENT FINALISTIN ‘ENTREPRENEUR OF 2011’CONTEST

Entrepreneur Magazine announced PaulTen Haken, President and founder of ClickRain, Inc. (Sioux Falls, SD) was recentlynamed as one of the top ten finalists intheir “Emerging Entrepreneur of 2011”contest.

Each year, Entrepreneur Magazine, alongwith the support of The UPS Store®, selectsone outstanding entrepreneur to receive thereward. Along with a list of other specificcriteria, the individual must own their ownbusiness, be involved in the day-to-dayoperations, and must show significantpositive impact on their industry,community, and employees.

The ten finalists were recently narroweddown to five semi-finalists, who wereannounced on Aug. 2. Ten Haken did notmake the final five.


Please e-mail photos and press release announcements of hirings, promotions, awards and distinctions received by business leaders in North Dakota, South Dakota and western Minnesota to [email protected] for consideration.

SHEPHERD G. PRYOR IV

BONANZAVILLE HIRES NEW EXECUTIVE DIRECTORBonanzaville, operated by the Cass County Historical Society, has

named Troy White as its new Executive Director. White, who has beenthe general manager of Odney Fargo, will be in charge of managing theoperations of Bonanzaville as well as promoting the attraction.

White has 15 of years experience in marketing and management,most recently as the general manager of the Fargo branch of Odney, aBismarck based marketing agency. Prior to joining Odney, White spent12 years as the owner and president of Image Communications.“Bonanzaville is such an understated asset to our community andregion,” said White. “I have always had a passion for historicalpreservation. When given the opportunity to combine my passion withmy strengths to make a difference in my community, I had to take it.”

Prairie People

PAUL TEN HAKEN

DR. TIMOTHY PANSEGRAU

DR. SEAN RUSSELL

MEDCENTER ONECARDIOVASCULAR SURGEONSGIVEN HIGHEST RATING BYCONSUMER REPORTS

A study released in the September editionof Consumer Reports gives Drs. TimothyPansegrau and Sean Russell, Medcenter One,Bismarck, ND, cardiovascular surgeons, aranking of three stars, which is the highestranking possible. The study ranks 323surgical groups across the country thatperform heart bypass surgery based onoverall performance, complications andadditional quality measures.

The Society of Thoracic Surgeonscompiled data for the national study.

TROY WHITE


U.S. BANK NAMES NEW VICEPRESIDENT AND RELATIONSHIPMANAGER

U.S. Bank Institutional Trust &Custody in Fargo, ND, hired Becky Walenas vice president and relationshipmanager.

Walen will be responsible fordeveloping and maintaining relationshipswith U.S. Bank Institutional Trust &Custody clients primarily in NorthDakota, South Dakota, and northernMinnesota. Her role includes providing abroad range of institutional products andservices that best suit each customer’sunique needs.

CHAMBER NAMES OFFUTT 2011LEGACY LEADER

The Fargo Moorhead West FargoChamber has named Ronald D. Offutt the2011 Legacy Leader. The award recognizesand emphasizes the important role andcontributions of long time local leaders inboth shaping and serving the metropolitancommunity and region.

Offutt will receive the award on Sept.15 at The Chamber’s Annual Meeting atthe Ramada Plaza & Suites andConference Center from noon to 1:30 p.m.

Offutt is the founder and chairman ofR.D. Offutt Company, the nation’s largestproducer of potatoes, and RDOEquipment Co., the largest network ofJohn Deere construction and agriculturalequipment dealerships in the UnitedStates. Offutt’s companies employ over3,000 people across the nation.

Offutt is a former member ofConcordia College’s Board of Regents, aposition he held for 20 years. From 1998 to2010, he held the position of Chairman ofthe Board. Offutt currently serves as amember of the Global Leadership Board ofthe Offutt School of Business at Concordia,is a board member for the FarmFoundation Round Table, the RabobankNorth American Agribusiness Advisors,Minnesota Agri-Growth Council,Minnesota FFA Foundation SponsorsBoard and the Oak Grove High SchoolFoundation. Offutt is also active in the RedRiver Valley Potato Growers Association,NDSU Teammakers Club, Fargo-MoorheadSymphony Orchestra, TrollwoodPerforming Arts Center, Boy Scouts ofAmerica and Future Farmers of America.

RONALD D.OFFUTT

BECKY WALEN

“The goldenrule for everybusiness manis this: “Put yourselfin yourcustomer’splace”. – Orison Swett Marden


For example, in the past five to 10 years, Avera haspartnered with physicians and medical clinics to formAvera Medical Group, as well as expand its hospital

system by adding Avera Marshall Hospital in Marshall,MN, and Avera Creighton Hospital in Creighton, NE.

“The Avera mission calls us to serve people andcommunities with an emphasis on rural communities,”states John Porter, President and CEO of Avera,headquartered in Sioux Falls, SD. “Avera continues thisfocus on providing quality care close to home for peopleacross our five state region. A unique model Avera hasemployed to extend specialty care to facilities is AveraeCARE™, an offering of telemedicine products thatsupport local practitioners.”

Avera eCARE Services is Avera’s nationally-recognizedmodel that provides rural patients 24-hour access tospecialty care physicians and pharmacists throughadvanced information and communication technologies.

The Avera brand is 13 years old, but the tradition ofcare has been constant since the Benedictine Sisters, whofounded Sacred Heart Monastery in Yankton, SD, leftSwitzerland in 1857 and opened their first Dakota

Territory hospital in 1897.The Presentation Sisters of Aberdeen, SD, opened St.

Luke’s Hospital in 1901 as the first hospital in their healthministry. On March 11, 1998, Presentation Health Systemand the Benedictine Health System changed its name toAvera Health.

Recently, Avera has been involved on majorconstruction projects. On the Avera McKennan campus inSioux Falls the Prairie Center was built to house the AveraCancer Institute and Avera Surgery Center. In addition,medical clinics and office buildings have been constructedin communities across South Dakota, Iowa, and Nebraska.Hospital facilities have been remodeled and updated incommunities across the region.

Avera has also committed itself to implementing aninteroperable electronic medical record system connectingall Avera clinics, hospitals, and care providers using onerecord for the patients.

“Our hospitals and many of our clinics are alreadyonboard and working with the new software,” Porterreports. “Each month over the next couple of years newfeatures and facilities will go live on the EMR until all

Avera

Partnering to improve people’s health and livesAvera prides itself on partnering with people and organizations who are seekingto improve the health and lives of people in the communities that the health careorganization serves.

Company Spotlight

Avera Cancer Institute (photo courtesy of Avera)

The Avera region includes:

51South Dakota counties,

14Minnesota counties,

9Iowa counties,

8Nebraska counties, and

3North Dakota counties

JOHN PORTERPresident/ CEO


Non-Stop Jet Service from FargoAllegiant Delta American UnitedLas Vegas

OrlandoPhoenix-Mesa

Los Angeles

Salt Lake CityTwin Cities Chicago Chicago

Denver

facebook.com/fargoairport@fargoairport

patient information is entered electronically and is accessible topatients electronically.”

Like many health care systems, Avera has had to adapt its servicesto a changing landscape.

“Health care reform has a dramatic effect on the business ofhealth care,” Porter states. “Avera is working to prepare for the newregulations in the health care reform law. This will affect the way wedo business.”

Porter adds that some of the regulations will improve the wayAvera delivers care while others will challenge the health care systemto examine processes and procedures. “The bigger challenge comingfrom the law and from the South Dakota Legislature is the reductionin reimbursement,” he explains.

Another change involves the Avera Research Institute, which hasbeen conducting research trials. “Over the past decade we havestepped up the participation in trials and has partnered with majoruniversities and laboratories across the nation to bring studies to thepatients in this area,” Porter says. “Our research is shared on thenational stage to benefit everyone.”

Heading into the future, Avera will continue to offer AveraeCARE to more of its facilities throughout the system and eventhose outside the system. “Sharing this technology with otherfacilities is of great benefit to the patients and medical staff servedby other health care providers,” Porter explains. “We are reachingout to facilities in other states to help support the care that iscurrently provided.”

Avera will also continue to focus on research using the clinicalstaff to conduct research and partner with South Dakota StateUniversity and other universities and laboratories across the countryto benefit the patients in the region.

In addition, Avera is a growing system that is reaching out toapproximately 100 communities in five states. “Over the next severalyears, we will work on gaining efficiencies and leveraging the systemstrength through system-wide initiatives,” Porter says. “Theseprojects will bring high-quality care close to home for patients andtheir family while maintaining access.”

Then there is the planning of several construction projects; a fewbeing planned will recommit Avera to providing care in the long-term care centers. Avera currently has 20 such type facilities.

“Several of these facilities will focus on improving environmentsfor residents and families over the next several years,” Porter states.“These projects range from remodeling to providing private roomsfor residents to new construction expanding the services provided.”PB


About Avera is South Dakota’s largestprivate employer with more than

16,000employees and physicians.

With assets in excess of $1.5billion, Avera continues to hold asolid position in the regionalhealth care market. Avera hasconsistently high ratings forfinancial management – A1 byMoody’s and A+ by Standardand Poor’s.

In Fiscal Year 2009-2010,inpatient, outpatient, and clinicvisits totaled more than 2.4million, a number equal toalmost 2 ½ times the populationof the Avera service area.

The Avera Heart Hospital is oneof the top 50 cardiovascularhospitals according to ThomsonReuters. This is the first year thelist has been limited to a moreelite list of only 50 hospitalsnationwide. For four consecutiveyears prior to this year, theAvera Heart Hospital achievedthe Top 100 cardiovascularhospitals distinction.

Avera


States are making hard choices about where to invest in light ofconstrained budgets, and must do without budget supportfrom the federal stimulus. With Washington effectively forced

to the sidelines, states must address fundamental economic issues ontheir own.

The 2011 Enterprising States report recently released by theNational Chamber Foundation and U.S. Chamber of Commercehighlights state-driven initiatives to redesign government andimplement forward-looking, enterprise-friendly initiatives to createjobs in each state.

Enterprising States is an attempt to find some of the mostimportant regional and policy differences to provide newinformation to local leaders and lawmakers. The report profileseconomic development efforts in all 50 states and measures thestates in 32 metrics covering economic performance,entrepreneurship and innovation, taxes and regulation, workforceand training, exports, and infrastructure.

LOCAL RESULTSNorth Dakota made a strong showing in the report’s rankings,

placing second in overall economic performance, third ininfrastructure performance, fifth in workforce quality and training,and ninth in tax and regulation. The state landed in the top ten intwelve of the 32 metrics in the report, including top five rankings infive of seven economic performance measures.

Ranking fourth overall in economic performance, South Dakota’slow tax and regulatory burden put it second in that category andfifth in infrastructure performance. It placed third in growth ofoverall economic output and saw its productivity – measured inoutput per job – grow faster than 48 other states in the past decade.

Minnesota landed in the sixth spot in the report’s workforce andtraining measures. The state is second only to Massachusetts in theeducational attainment of its young workforce, it ranks fifth inoutput of college graduates, and its workforce placement system wasthe third most efficient in the nation in 2009.

Ultimately, the road to sustainable state economies must includecontinued investments in education and infrastructure; support ofthe small businesses and the expanding companies by which mostjobs are created; a business-friendly environment free of excessivetaxation and regulation delays; and development of basic industriessuch as energy, agriculture, and manufacturing. PB

Economic Development

How are our statesstacking up?More than 18 months into the recovery from theGreat Recession, job creation in the U.S. economyis far from satisfactory.

MARK SCHILLVice President

Praxis Strategy [email protected]


The challenge is to market to them effectively while they are inyour store garnering additional sales of merchandise orservices that they may not know you offer or have in stock.

As customers wait in checkout lines they are perfect targets for amarketing message. How do you send a marketing message to them?One answer is with digital display advertising centers. A trip downthe Las Vegas strip will give you an idea of the power of digitaldisplay marketing. Large screens are driven by in-house computernetworks that display everything from headline concerts to gourmetchoices for restaurants and buffets.

Although installing digital display systems was once very costprohibitive for smaller retail outlets, new technology hassignificantly changed the digital display landscape. With your ownin-house server, a reasonably priced service computer, and a largescreen television you can build an in-house television network inany retail location.

But what keeps my digital display television network exciting?The answer is; you do. By offering your customers tidbits ofinformation like current weather forecasts, sport scores, triviaquestions or news and current events, they become entrenched inviewing the screens. It is their choice to watch, a different approachthan force-feeding audio announcements that are often too loud andinterrupt casual conversations.

Mixed in with these bits of information are marketing messagesdirected at your customers. No need for address, phone number, orweb address because they are already in your store and have to gothrough the purchasing process.

In addition to marketing and sales messages you can mix incommunity service or employee congratulation messages. Locationof the screens has no limit! They can be large and in commonwaiting areas, or small screens next to tills and checkout lines.Messages are easy to change and the changes are immediate. On ahot summer day you can run a special on ice cream, on a coldwinter day remind them how great a cup of hot chocolate would be.The goal is to be creative and timely in management of the network.

Looking for a marketing pick me up in your retail location? Investigate a digital display network. PB

Your current customers are your best resource whenit comes to sales.

Digital displaymarketing haspower

Sales/Marketing

ROD WILSONOwner/PartnerResults Unlimited

[email protected]


FinanceCS Growing companies and jobs

through angel investment orventure capital

A variety of different types of companies are finding that an angel investor or those workingwith venture capital just might be the best way to garner funds to start a business.

We’re growing companies and that means we aregrowing jobs,” states Jim Buus, President, Fargo-Moorhead Angel Investment Fund, LLC. “It all

revolves around talent. The effect of growing companies ishiring three to five people with the potential to reach 50-100 people. There is great synergy among all for theseyoung emerging companies. That is what economicdevelopment is about these days.”

Gene McGowan, CEO and Founder of the McGowanCapital Group in Sioux Falls, SD, adds that successfulinvestment also provides good returns for investors, whichin turn can be reinvested into the area. Then there is thejobs aspect. McGowan Capital Group invests in early tomid stage companies in solid business models with amission to provide select investors with private equityopportunities in regional companies.

“We believe that because of our efforts over the lastseveral years, there are several hundred people who havejobs that wouldn’t have them,” he explains. “We did thatwithout getting a vote of Congress. It is very difficult forindividual investors to have time and energy to structuredeals and opportunities. Entrepreneurs don’t usually have

that skill set or time to put it together. Someone has towork the middle to help bring capital to the entrepreneur.”

To be an angel investor or a person who works withventure capital means that you are providing risk capitalto young companies who are unable to source capital frommore traditional sources, such as banks, states MichaelJerstad, PrairieGold Venture Partners in Sioux Falls.PrairieGold Venture Partners is an early stage venturecapital firm focused on life sciences and green technology,but also is seeing an increased interest in the bio-agriculture sector.

“From an entrepreneur’s perspective, the primarydifference between venture capital and traditional debtfinancing is that the former takes some level of equityownership and control in a company, whereas the latter isa secured creditor, but does not own or control thebusiness,” Jerstad explains. “Importantly, many start-upsare not bankable because their only collateral is difficult-to-monetize intellectual property. From the venturecapitalists perspective, it is a higher risk, higher rewardproposition. Their capital is unsecured, but theirownership position entitles them to greater upside if a

JIM BUUSFargo Moorhead Angel Investment

Fund, LLC

MICHAEL JERSTADPrairieGold Venture Partners

JOHN COSGRIFFInvestAmerica Venture Group

JAMES BURGUMManaging DirectorArthur Ventures

“


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FinanceCS company succeeds.”

One capital venture firm with headquarters in CedarRapids, IA, but having a foothold in the Fargo-Moorhead areais InvestAmerica Venture Group. The company is a generalpartner and investment advisor for small venture funds.

“The focus is expanding rapid growth and working withcompanies who have a difficult time in finding funding,” saysJohn Cosgriff, Manager in the Fargo office. “InvestAmerica isinvesting in the equity of the company, meaning we haveownership and agree to invest in the company.”

For example, Cosgriff says that if a company has $2 millionin equity, InvestAmerica would possibly put in $1 million andretain 33 percent ownership of the company for a five-yearperiod. This would mean participation on the board, but notoperation of the company.

“The return on investment comes from the increased valueof the company,” Cosgriff states. “After the five-year period,the investment firm exits from the company. The easiest wayfor them is selling. Another way is allowing the owner to buythat one-third share.”

Arthur Ventures, located in Fargo, is another venturecapital firm that focuses on investments from $1 million to $2million. “There is a real need for early stage venture capital,”states James Burgum, Managing Director for Arthur Ventures.“There are very few active funds participating at that level.”

One of Arthur Venture’s success stories is Preventice, amobile health care software company that develops mobileapplications that are downloaded to a mobile phone to treatpatients. The applications provide real time information forhealth care providers. Arthur Ventures invested in 2010 andnow has helped form a Fargo office with six people with theexpectations of having as many as 12 employees by year end. “The whole idea is to improve quality of care and reduce cost,”Burgum says.

THE BEST CHANCE FOR GROWTHFor many who work with angel investment and venture

capital the main growth involves those companies related toinformation technology.

Burgum believes that information technology and healthcare IT (in particular) because of the inefficiency in healthcare will be hot markets. “Another area is ag technology, suchas GPS systems and other new technology embedded intoequipment,” he states.

PrairieGold Venture Partners seems to like the life sciencesand energy sectors. “The demographics are in our favor, andthe demand will only increase,” Jerstad explains. “These sectorstend to be less cyclical, unlike technology, where booms andbusts occur. We also think ag will become an increasinglyimportant sector as worldwide demographics evolve andinternational trade becomes even more borderless.”

The Fargo-Moorhead Angel Investment Fund is focusingon research and talent, as well as working with economicdevelopment groups in the region that are targeting specificindustries. “Our Angel Fund will try to align with thesegroups,” Buus says.

McGowan Capital Group is an investor in the SouthDakota Innovation Partners. “Everything that is accomplishedin that organization is about growth,’ McGowan says. “Theyare busy in growth of research and innovations in newtechnologies. The opportunity for high growth is there.”

McGowan adds that just simply adding money andmanagement to good companies with teams in place isanother opportunity for growth.

THE BIG CHALLENGE(S)!From Cosgriff ’s perspective, he sees three challenges. “The

first is putting together a pool of money to invest. The second isgetting a successful investment over a five-year period. The thirdis exiting the investments on a timely and profitable basis,” hestates. “Many people think it is easy. It is not! The most difficultis exiting from a company that is just doing okay.”

McGowan adds a little different spin by stating the majorchallenge for buyer, like McGowan Capital Group, is findinggreat companies at the right price with good leadership andteam in place. “We are talking to possibilities all of the time,”he says. “Ours is not about quantity. Excellence is reallyimportant. We want to take our time and be thoughtful aboutwhat we do.”

Buus says more and more entrepreneurs and businessplans are coming before the Fargo-Moorhead AngelInvestment Fund. “There is money for first round of money,but a hurdle we have is not having a lot of second roundfinancing between $1 million and $5 million,” he explains.

Burgum says it has been a great start for Arthur Venturesand others who work with angel investment or venture capital,but there is still more work to do. “We have to continue to besuccessful in moving the needle for job growth,” he states. “Wealso need to aggregate more capital in our region and do abetter job of that. Aggregation of capital is important as theseinitial funds are a critical tool in company building and jobcreation. It is high risk, but high reward for both investors andpolicy makers. Regions that have aggressive strategies to attractand build capital formation capacity will ultimately createmore jobs.” PB




HospitalityCS2 Fall, spring seasons important

to hospitality industryWhen it comes to the hospitality industry, people have different perceptions about the four seasons.

Many think that the busy seasons are winterand summer, but many who work withhospitality will tell you that the other two

seasons are just as busy and just as important forthe bottom line.

“Spring and fall are important to everyone’sfinancial success,” says Carol Johnson, GeneralManager, Ramada Plaza Suites & ConferenceCenter in Fargo, ND. “We’re able to handle businessall year around. For smaller communities thereneeds to be a draw.”

Jeff Jackson, who owns the Wrangler Inn inMobridge, SD, and is also president of the SouthDakota Retailers Association, says while thesummer season may be the most important for allthe state, the second, third, and fourth season maybe different due to what area of the state you are in.

“In some areas, there are three good seasons,” hestates.

Out in western North Dakota, Sheri Grossman,who works with the Bismarck-Mandan Convention& Visitors Bureau, says people assume that summeris the busiest time in our industry, but they forgetthat conventions and meetings play a significantpart in this industry, making spring and fall primetime for visitors to explore our area.

“People so often ask, “What are your summertravel plans?” she says. “However, for those whodon’t need to worry about school calendars, springand fall can be an ideal time to travel. The pressureto have a summer vacation isn’t something new,but spring and fall definitely have merit.”

In Fargo, Johnson breaks it down even morespecific. She says that in the summer there aremassive numbers of weddings, reunions, andassociation meetings. Sports are becoming a year-around affair. During the school year there arecorporate meetings and specifically in the wintertime, families, the entertainment industry, andspecial events book the Ramada.

“It is amazing what this city brings in,” she says.“Travelers are so much smarter. We have to stay upto speed with everything. We always have to keeprelevant because travelers are very savvy. We have totake it seriously. We want to have to earn theirdollars and we should.”

Johnson adds that the economy plays a factor inhospitality, as well as blizzards and floods.

“Hospitality has a major impact on the economy,”she says.

Grossman agrees. “The nice benefit abouttourist dollars is that it is new money to ourcommunity,” she explains. “It is not just localsbuying items, it is out-of-town and out-of-statepeople bringing dollars to Bismarck-Mandan. Eventhough visitors may spend money in just a fewareas, it certainly has a trickledown effect.”

For example, meetings, conventions, and eventsbring more than 160,000 people to Bismarck-Mandan annually spending over $35 million whilethey are in the area. “While July was our biggestmonth in 2010, April, May, September, andOctober brought nearly 52,000 delegates to ourarea,” Grossman states. “We estimate convention,meeting, and event attendees spent over $13million during those four months.”

Jackson states there are advantages to the ‘off ’season in most areas. “While not the prime orbusiest seasons, there are still many events,activities, and recreational opportunities in all theregions of the state,” he comments. “Often betterrates on lodging, guides, and admissions areavailable during the non prime seasons. Theshoulder seasons are also a great time to find amore relaxed atmosphere and a less hectic pace.Traffic is not heavy and often more personalattention is able to be offered to a visitor.”

For example, in May hotel revenue throughoutthe state was more than $25 million in 2010compared to more than $24 million the yearbefore. In October, hotel revenue was almost $30million in 2010 compared to almost $27 million in2009.

Jackson adds that for many businesses, theshoulder seasons are the opportunity to generatethat extra income that allows for improvements intheir business.

“There are challenges, but the main objective isto develop a service that can be offered to the typeof clientele that is available for travel at those timesof the year,” Jackson states. “As with all seasons, theavailability of leisure time and disposable income isa major factor in the success and profitability that ahospitality business will enjoy each year.” PB

Alan Van Ormer [email protected]

Jeff Jackson, President

South Dakota Retailers Association

Carol Johnson, General Manager

Ramada Plaza & Suites


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Shawn Lyons, Director, South Dakota RetailersAssociation, says there is no shortage of badeconomic news that starts to play on people’s psyche

concerning the last few years of crisis and impact on retail.“What we’re hearing from our members is somewhat theopposite,” he states.

The South Dakota Retailers Association conducted asurvey of its members and reflecting on the sales taxnumbers, the retail industry seems to be doing well inSouth Dakota. The state has had 15 consecutive months ofincrease in taxable sales, Lyons says.

As for employment, it has been noted that one in fivejobs in the United States have been linked to the retailindustry. “A decade ago, there were 22,000 employed in theSouth Dakota retail industry,” Lyons says. “Today, morethan 23 percent or 95,000 are employed in retail in SouthDakota. This tells me retailers and small businessescontinue to stay open.”

In Fargo, ND, Brad Schlossman, CEO of the West AcresDevelopment, says traditionally there has been steadygrowth since the West Acres Mall was developed in 1972.The mall has 120 stores. 2009 was an exception, but in2010 the mall was full and Schlossman expects that to bethe same in 2011.

Schlossman sees pockets of strength and areas ofconcern.

“For example, there is more demand for space than themall has available. However, several neighboring big boxspaces are still vacant,” he explains. “Even with ourrelatively healthy local economy, the size of North Dakotamarkets, including Fargo, is not at a level which meets thedemographic criteria of many national retailers.”

Lyons agrees that within the retail community itself,there are always battles between big box stores andindependent businesses. “We have to learn different waysto compete with one another,” he states.

Then there is the challenge of what is going to happenwith the new health care law? In addition, there isdiversification in the day-to-day aspects of the retailindustry.

“At the end of the day, shopper’s memory of anexperience lingers far longer than the impact of thespecific purchase,” Lyons says. “What did I think about thestore? What type of experience did I have?”

Lyons feels there is also a concern about Main Streetfairness or specifically, the collection and remittance ofsales tax from online companies.

From the West Acres Mall perspective, Schlossmanbelieves the challenge is attracting and keeping the beststores for the customers.

Technology has changed the retail business. “There arecertain lines of businesses that are devastated by onlinecompetition such as music stores,” Schlossman states.“However, for most retailers, it is not a concern. TheInternet is often being used to research products, but theactual transaction is taking place locally. There is also achange in how the message gets communicated tocustomers. Social media has also become a factor.”

Lyons adds that the retail industry is seeing an increasein social media attracting the customer to a specific store.“This depends on the customer. The younger generationwants instant gratification, wants to see it now, wantsaccess right now,” he states. “Part of the business plan ishow to use social media.”

The industry must also look at maintaining what it has.One thing that is occurring is seeing more interest insecession planning as part of the overall business plan.“They think about it a lot more than they used to,” Lyonssays.

Then there is the need to stay relevant. “Retailers are nodifferent than other industries,” Lyons says. “Retailers wantto make sure they appeal to consumers to come into thestore.”

Then there is the development and education of askilled work force, which Lyons says is starting earlier atthe high school level. “It’s working with our universitiesand technical schools,” he says. “It’s important developingwork force to meet demands we are seeing in the workforce development.”At the West Acres Mall, Schlossman has been focusing onmaking it a positive customer experience. “A recent marketsurvey asked customers to provide two words that describeWest Acres Mall,” he says. “Fun and convenience tied forfirst. By convenience, we need to make the experience easyfor the customer. As for fun, we’re delighted the responsecame back so high.” PB


RetailCS3 Retail industry seeing

steady growthRetail leaders in North Dakota and South Dakota are finding that theindustry continues to steadily grow despite economic worries that havehit other parts of the nation.

BRAD SCHLOSSMAN

CEOWest Acres Development

SHAWN LYONSDirector

South Dakota RetailersAssociation

Shoppers stroll through West Acres Mall inFargo, ND (photo courtesy of Scott Thune)


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Watford City

Wow!” says Kristen Bolken, who has lived inWatford City for three years and is a member ofthe Board of the area Chamber of Commerce.

“It is so busy. It has gone from zero to 125 in terms ofbusiness.”

Mayor Brent Sanford, who is also owner of S&S Motorsin the community, sums it up by saying “the feel of ourtown is chaotic. We are just trying to manage it the best wecan and stay positive.”

Statistics back up what residents in Watford City areseeing. The community has seen a 74 percent growth insales in the first quarter of 2011. One local bank has seengrowth hovering around 20-25 percent over the last fiveyears. And over a two-night period in July, traffic stoppedand nothing was moving because of road slide damage;something that those who have lived in Watford City all oftheir lives have never seen.

In addition, county taxes were up almost 50 percent in2010. During calendar year 2010 in McKenzie County,taxable sales and purchases totaled more than $78 millioncompared to $52 million in 2009. In Watford City, taxablesales and purchases totaled $47 million in 2009 comparedto $71 million in 2010.

GROWING A COMMUNITY BEFORE OILEnergy, tourism, and agriculture all have had an

economic impact on the town that was once around 2,000people. But community leaders had already started planningeconomic development before oil even hit the area. It wasneeded in order for the town to continue to grow.

Denton Zubke, CEO of Dakota West Credit Union, saysbefore the oil boom it was day-to-day in Watford City. “Wewere just trying to keep this town alive,” he states.

Steve Stenehjem, Chairman and CEO of FirstInternational Bank & Trust, was one of the catalysts of theeconomic growth. He kept the bank headquarters inWatford City and also developed a sort of convention centerfor the community that included a steakhouse lounge andmovie theater, as well as meeting space and conventioncenter. He also added a parking lot to the 37,500 square footfacility that also includes the company headquarters.

What makes it even more convincing is the fact thatwhen travelers come north on Highway 85, and just beforethey turn left to go to Williston, they can see this eye-popping building on Watford City’s Main Street. It wasdone to attract visitors to the community.

“The building got people to stop and take a look,”Stenehjem says. “I always felt if they stopped, we would getthem to take a look at the town.”

Stenehjem and other economic development leadersdidn’t stop there. To help pay for the remodeling of thefacility, city voters approved a 1 cent penny sales tax or

Flurry of economic development

Those who live in Watford City, ND have never seen anything like whathas happened over the last three years.

Watford City Visitors Center

Community Spotlight

“

Kristen Bolken,Member, Chamber of

Commerce

Brent SanfordMayor

Denton Zubke, CEODakota West Credit

Union

Steve StenehjemChairman/CEOFirst InternationalBank & Trust

Gene VeederExecutive Director

McKenzie County JobDevelopmentAuthority


what was conveniently called the ‘Roughrider Fund’ to help businessesrelocate and improve their stores.

First International Bank & Trust tore down 13 buildings to buildthe Main Street complex, but did not do that until the other businessesin those buildings were relocated in town, Stenehjem says. The fundprovided up to $25,000 per building to spruce up a building.

“It gave people confidence to improve their stores,” Stenehjemexplains. “I think it worked.”

ALONG COMES OILBack in 2004, Sanford moved from Denver back to his ‘sleepy’

hometown. “Dad thought I was nuts,” says Sanford, who is a CPA bytrade. “It slowly picked up.”

Then came the gush of oil.One thing the oil boom has changed is the real estate industry. Based on state and industry projections, Sanford has been told that

as many as 30,000 people could be working near Watford City or in thecounty. “It is an unbelievable commute from Dickinson, Minot, andWilliston to the oilfields,” he says. “Living in town would help ease thisburden.”

Dale Patten, Senior Vice President for McKenzie County Bank, sayshe has been chief real estate lender for the bank for more than 20 yearsand that part of the banking industry has skyrocketed, as has homes,credit, short term loans, and limited down payments.

“Opportunities come with challenges,” he says. “Loan activities in allrespects are seeing transition in the business environment. We areseeing opportunities for companies to get a foothold in the county orpossibly buying existing businesses. Their goal is to grow the company.”

Money

Acquiringsmallbusinessfunding Tips to help you prepare for thebusiness loan application process

Small businesses are the lifeblood of the Americaneconomy and essential to our communities. Tobe successful, small business owners need

funding – often in the form of commercial loans andcredit.

Recent economic conditions have caused bankseverywhere to take a closer look at lending practices.Even in states like North Dakota, which has weatheredthe financial storm fairly well, banks continue to seekhigher-quality credit applicants to minimize their risk.

The bank will be more likely to lend if the smallbusiness applicant is well prepared. There areimportant steps every small business owner shouldtake when applying for financing to make the processsmoother and possibly even qualify for moreaffordable credit terms.

PREPARE OR UPDATE A BUSINESS PLANSmall businesses need a well-prepared business

plan when they apply for a loan. This formal document should identify your

company and include its mission and statement ofpurpose, owners and key personnel, a companyhistory with milestones, a description of products andservices, and a list of your facilities. It should containa market analysis, including major customers,suppliers, competitors, and potential risks facing yourcompany. It’s also a best practice to include amarketing plan.

Preparing a business plan will take time, but it’sessential to the lending process and will serve as avaluable guide for policies, daily decisions and thesuccess of your company.

PREPARE OTHER DOCUMENTATIONGather copies of your tax returns and make sure

your tax filings are current. Lenders may request yourpersonal tax returns, especially if you are just startingyour business or are a sole proprietor.


Watford CityCommunity Spotlight

WATFORD CITY HAS A LITANY OF CHALLENGESThere is a housing challenge. A workforce housing project is being developed in

nearby Arnegard and 23 homes are being constructed in Veeder Estates in WatfordCity.

Electrical needs are growing. According to a report to co-op members recently,McKenzie Electric Cooperative has seen monthly sales of electricity grow from $1million to $3 million. The annual revenues have increased from $22.8 million in 2009to $29 million in 2010. In addition, the cooperative is taking out four short-termloans of $12 million to build new lines to serve oil field growth needs.

Road improvements and infrastructure are also major needs. McKenzie County isusing $24 million to gravel 122 miles and pave 12 ½ miles.

As for infrastructure needs, Watford City is using $12.3 million in state assistanceto add water and sewer lines in identified growth areas surrounding city. There is a62 mile natural gas pipeline through McKenzie County being developed by ONEOKPartners of Tulsa, OK that will process 100 million cubic feet of natural gas per day.Also, a $110 million Western Area Water Supply project is underway for domesticand industrial use.

In addition, a $680,000 grant allows McKenzie County Healthcare System to addAvera Health’s eCare services. There are discussions for long-term vision to expandthe hospital. Also, a $4.9 million, 20,000 square foot wellness center project isexpected to be completed in 2013.

CONTINUING CHALLENGES INTO THE FUTUREThere are at least four challenges that will burden the community as it moves into

the future. They include permanent housing needs, an improved highway system, anupgraded water system, and health care issues.

Gene Veeder, Executive Director, McKenzie County Job Development Authority,says maybe the biggest challenge is emergency services. There are 2-4 calls per daywith only one full-time paramedic on staff.

In addition, there is the recruitment of health care professionals. And as forworkforce, Veeder says attracting workforce is not an issue, but hiring is the issue.

“The rest of the world does not take these problems we have seriously,” Veederstates. “We have four to six people a day that stop in and want to start a business. Thechallenge for us is who is real?”

Stenehjem believes western North Dakota has forever changed. “And I think in agood way.” PB


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You will generally need three years of financialstatements and cash flow history and projections. Ifyour business is a start-up, bankers will want to seerealistic income and expense projections before makingany lending decisions. Contracts with potentialcustomers help prove future income.

Provide references from creditors, a list of suppliers,and proof of insurance.

PAINT THE WHOLE PICTURELoan officers consider many factors when making

their decisions, including your financial records,collateral and credit history. It’s important for yourorganization to build a good track record by makingtimely payments to your suppliers and vendors, andestablishing reputable business practices.

CHOOSE THE RIGHT LENDER AND LOANSmall business owners probably have broad

knowledge of many aspects of their business, includingfinancing and lending, but sometimes they need helpwith the details. That’s why it’s important to have aworking relationship with a banker you can trust, andone who has knowledge of your business, industry andthe community where you operate.

Your lender should be able to explain the variety of

loan programs available. For example, the SmallBusiness Administration (SBA) backs some loans forqualifying businesses, and the Bank of North Dakotaoffers attractive options in our state as well. Your lendershould help you explore other special financingprograms available in your area through state, countyand city economic development offices.

Bankers know how important small businesses are tothe local economy, and our goal is helpingentrepreneurs and small business owners succeed. Wecan provide information and help you select thefinancing that matches your organization’s needs andhelps you grow your business. PB

32 Prairie Business Energy September 2011

Taking a second look at SouthDakota’s oil and gas resourcesA South Dakota initiative to pull together all of its oil and gas resource data in one comprehensive,online location could have a sizeable impact on economic development in the state.

Derric Iles, State Geologist and administrator of thestate geological survey program, calls SouthDakota “under-explored” when it comes to oil and

natural gas. With an eye on what it could mean for thestate’s economy, an effort is underway to change this byenticing industry to take a second look at what SouthDakota has to offer.

“We’re pulling together every shred of information thestate has that could be relevant to the exploration of oiland gas,” comments Iles. “We’re pulling it together andmaking it available electronically.”

Iles explains that the state’s Department ofEnvironment and Natural Resources has a wealth of datathat may be relevant to oil and gas exploration, but it ishoused in at least three different locations, three differentparts of the DENR. The geological survey program hasmaps, reports, and test-hole data. The minerals andmining program, which regulates the oil and gas industryand issues permits, has hard-copy files located in theRapid City office. And the DENR’s water rights sectionhas tens of thousands of drilling records from water wells,

which may be useful especially for shallow gas exploration.By making all of these records and maps digital and

collecting them in a single location, the state hopes that itwill be easier for oil and gas companies to find theinformation they need without traveling to separate officelocations to peruse files.

“We are hoping that by making all of the relevant dataavailable, in the formats industry wants to see them in,we will get them to take a second look at South Dakota,”says Iles.

The department hopes to have the multi-year projectcomplete by June 30 of next year, and Iles says they arealready responding to requests from industry for this typeof information.

“The push is coming from the desire to have moreeconomic development in South Dakota,” comments Iles.“One way to do that is to encourage more exploration foroil and gas resources. We’re trying to make it as easy aspossible for industry to decide that South Dakota is a goodplace to explore.”

North Dakota’s Bakken formation has garnerednational attention for its vast crude oilreserves and the economic boom that hasresulted from its production. Since 2004,crude oil production in North Dakota hasgrown an average of 22 percent per year.Last year, it ranked fourth in crude oilproduction out of 31 oil-producing states.

A study done earlier this year by NorthDakota State University shows that in 2009,the petroleum industry in North Dakotaprovided more than 18,000 full-time-equivalent jobs in the state and achieved agross business volume of $12.7 billion. LynnHelms, Director of the North DakotaIndustrial Commission, says petroleumactivity in the state is currently three timesthose 2009 levels. Contrast this with SouthDakota, where fewer than 200 people areemployed in the oil and gas extraction sector.

But South Dakota officials believe thereis potential for growth. Iles notes that,although South Dakota’s geologic setting isnot quite as favorable as North Dakota, it


nevertheless has many of the same rock units. A look at a cross-section ofa geophysical log of the rock formations along South Dakota’s northernborder shows the similarities.

At a drilling depth of about 8,000 feet, South Dakota has the ThreeForks Shale, which Iles says is a large oil producer in North Dakota.Above that is the Minnelusa Formation, which only a county and a halfnorth into North Dakota is producing oil, but there it is called the TylerFormation. South Dakota also has the Englewood Limestone – a rockunit at the same depth in North Dakota is called by a different name,the Bakken Shale.

“We have similar rock units here, but we are just under-explored,”says Iles.

The Greenhorn Formation is currently the target of exploration nearFaith, SD, after the city struck oil while drilling a water well in 2009.Nakota Energy is a small company doing some test drilling there; PeteSutton with Nakota says they have drilled one well and are waiting onthe results, and they will also have a look at the city’s water well wherethe oil was originally found.

The first oil in South Dakota was discovered in Harding County in1954, part of the Red River Formation. Oil production in South Dakotatoday occurs in Harding, Custer and Fall River Counties. The WillistonBasin lies mainly in North Dakota but comes down into northwesternSouth Dakota as well, though there is it shallower. A very small part ofthe Powder River Basin touches the southwestern corner of the state inCuster and Fall River Counties. Luff Exploration is the largest oilproducer in the state today, followed by Continental Resources Inc.

Iles notes that the potential for exploration is not limited to West

River. For example, in the late 1800s a water well being drilled nearSalem revealed natural gas at very shallow levels. Test drilling done in2004 found that the methane gas is still there, although no one knows ifit’s present in commercially viable quantities. A site in Spink Countynear Ashton is also being test drilled. In the early 1900s, the city ofPierre fueled its street lights with natural gas from the local DakotaSandstone, the same methane gas that provided the “Flaming Fountain”at the state capitol.

“The potential is there,” says Iles.Hunter Roberts, South Dakota Energy Policy Director, says that

while it’s difficult to measure the exact potential economic impact,similar activity to what’s being experienced in North Dakota – even ona smaller scale – would certainly be a “shot in the arm” to SouthDakota’s economy.

“Development of this industry will create jobs, provide new careeropportunities to our young people, and increase the tax base whichprovides funding for our schools, and state and local governments,”comments Roberts. “Additionally, further access to these naturalresources would help make South Dakota and the nation more energyindependent while helping to stabilize energy costs.”

Iles says it is unreasonable to presume all of the oil and gas resourcesstop at the state line.

“We have many units that have potential, but most of them areunder-explored,” says Iles. “We don’t know enough about them. Unitsomebody can provide me with the actual scientific data, I’m notwilling to give up.”

Kristin Brekke Vandersnick is a Willow Lake, SD-based freelancewriter. She can be reached at [email protected].


Hess Corporation, who has been in the state since 1951, is one ofmany oil companies operating in the Bakken formation inwestern North Dakota. It is also one of the companies that

views environmentally sound oil fields as a key to business success.“We view compliance with the law, as well as values based on

consideration for leaving the environment in a manner that minimizesour footprint,” states Dave McKay, Director of the Bakken Project forHess Corporation. “We want to leave landowners and otherstakeholders with the feeling that we are good neighbors.”

Others agree that sound environmental policies and practices areessential to having a successful business.

“Protecting the environment and the health and safety of allconcerned are basic ingredients of good corporate citizenship, whetherin the oilfield or any other place,” states Brian Engel, Vice President,Public Affairs for Continental Resources.

For Engel, being environmentally sound means being committed toprotecting the environment through our business policies and practicesand to meet or exceed all environmental regulations.

Joseph Icenogle, Director of Environmental Affairs for FidelityExploration & Production Company, adds to be a responsibleenvironmental steward means that your organization has personnelthat are knowledgeable with the regulatory process and are proactive inobtaining the necessary permits.

“In addition, environmental stewardship goes beyond just compliancewith regulations. It means taking ownership in your facilities andmaintaining them to a higher standard than what is mandated,” heexplains. “This may mean placing facilities where surroundinglandowners are minimally affected along with conducting surveys onwildlife, soils, vegetation or water wells prior to conducting operations.”

Continental Resources has developed at least three programsincluding employee and contractor training. Another program involvesECO-Pad®: drilling four wells on one pad to minimize constructionand transportation impacts, and Closed Loop Drilling Operations:controls and recycles drilling mud to minimize environmental impact.

MDU Resources has implemented a plan called PIMA. “Through

Soundenvironmentalpractices essentialin oil countryHess Corporation views North Dakota as one of itslegacy homes in the world and wants to makecertain that it is the employer and neighbor peoplewant for the long term.


“planning” we take the responsibility to be a good neighbor by working with the landowners on whose landwe conduct operations. We “implement” that plan and focus on doing what we said we would do,” Icenogleexplains. “Once the plan is in place, we “monitor” our operations and carefully watch field operations andany potential impacts. Finally, we “adapt” as we move forward by applying new ideas and new methodsbased on what we see. It is important to be constantly learning.”

Hess Corporation is eliminating liquid reserve pits from drilling sites and moving all rigs to a closedloop system. “We aren’t digging and leaving pits in the ground with any fluid in it,” McKay explains, addingthat he believes the state is going require all oil companies to do that. “We view this as one of the things weshould be doing.”

Another major undertaking is changing the typical configuration of drilling in the Bakken, includingmoving fluid to the tanks and flaring gas. To date, Hess Corporation has invested $100 million in gatheringand processing infrastructure to conveying fluids and natural gas by pipeline to a central treatment facility.

McKay believes this will have a major impact on gathering and processing to extract liquids and sell gas,as well as reducing the impact of trucks on the road.

COMMUNICATION IS A BIG CHALLENGE“Our work involves complicated scientific and technical

operational data. The oil and natural gas business, especiallyin the Bakken in western North Dakota, involves a lot oftechnology and geophysical information,” Icenogle says.“Communicating this science and technology to the public,elected officials and regulators is challenging but veryimportant.

Engel states the major challenge is staying abreast of andincorporating industry best practices at thespeed of today’s technological innovations.“(Our focus) is doing it the right way everysingle day and striving to continuouslyimprove our health, safety and environmentalperformance,” Engel states.

Another challenge is just staying incompliance with regulations.

“In many cases, we are trying to stay aheadof compliance and regulations, somethingthat we view we are doing successfully,”McKay states

The big challenge right now is the pace ofactivity, McKay adds. “Many of the workforcein North Dakota is new to the industry,” hestates. “Keeping them safe, aligned, andmaking decisions that are appropriate isimportant. That is challenging given the scopein the workforce and the speed we are movingright now.”

Icenogle says environmental stewardshipleads to less waste which fuels a stronger returnon investment dollars. “Furthermore, when acompany has a strong environmentalcommitment they are generally strong in safetywhich provides a better work environmentwhich helps in retaining and motivating aprofessional workforce,” he explains.

Icenogle adds that our environmentalgoals are very similar to our safety goalswhere we strive for no injuries.

Alan Van Ormer [email protected]

Working in the oil fields (Photos courtesy of Hess Corporation)

Hunter Roberts, State Energy Policy Director forSouth Dakota, believes that Congress shouldrethink the biofuels policy. “There are a lot of good

things going on right now through the stimulus packagethat includes research dollars and loan guarantee programsfunneling down to support beginning and mid-stagebiofuels programs,” he states. “The federal government onthe demand side has been lacking. If we’re to increaseproduction, we need more demand for fuel.”

Alan Anderson, the Commissioner for the NorthDakota Department of Commerce, says getting everyoneto agree on a policy is the best course of action. “It’s reallyabout educating each other and then working jointly tofind solutions and generate results,” he states.

Rodney Larkins, Special Project Director of theInitiative for Renewable Energy and the Environment atthe University of Minnesota, says there are existing andnear-term technologies available which look to have theability to dramatically improve the profitability, carbonfootprint, and regional impact of ethanol plants and turnthem into true bio-refineries.

“Unfortunately, it is currently very difficult to securethe investment capital necessary to fund these innovationsor transformations,” he states. “Policy which strengthensthe industry, encourages investment, and promotes energyindependence on a local, regional, and national basis iscritically needed.”

Biofuels are developed from biomass. It is consideredcarbon neutral, as the biomass absorbs roughly the sameamount of carbon dioxide during growth, as when burnt.Some biofuels currently in use are biobutanol, biodiesel,bioethanol, biogas, and even vegetable oil.

Doug Tiffany, Assistant Extension Professor at theUniversity of Minnesota, who specializes in renewableenergy economics and technologies, says governmentsubsidies were formulated to protect the ethanol industryfrom the fate experienced by the small ethanol plants thatcame on line in the 1980s.

“The small plants were run out of business when crudeoil prices dropped in the mid-1980s,” he says.

Tiffany comments that the nation is not meeting thetargets for the advanced biofuels and cellulosic ethanolmade from things other than corn starch. “Thegovernment identified targets in the 2007 bill, but there

have been challenges in technology and bigger challengesin raising the capital needed to build those plants,” hestates. “Many start-ups spent considerable time waiting forfederal loan guarantees.”

In addition, Tiffany believes that plants have to be builtand operating for at least three years before there is muchhope of enticing private investors. “I expect some moremodifications for these targets,” Tiffany states. “Dry-grindethanol plants using corn represent technology that worksreliably and has been improved considerably in recentyears in terms of water usage, energy usage, and reductionof Greenhouse Gases. There are a number of ways toimprove the environmental performance of the existingplants by using biomass to provide process heat andelectricity or perform extraction chemistry on the by-product, distillers dried grain and solubles (DDGS).Infrastructure is in place to transport corn to the ethanolplants and then move the ethanol to get it blended into allthe gasoline in America. With a poor economy andreduced consumption of gasoline, less ethanol is needed tobe blended at current levels, which are scheduled to beincreased in the near future.”

Many believe that biofuels can help with energysecurity, as well as providing a substantial availability offuel for the nation.

North Dakota officials believe that they have a modelthat could be used as part of a national policy. The NorthDakota EmPower program was launched in 2007. Leadersfrom nearly every major traditional and renewable energycompany in North Dakota meet regularly to share insightsand ideas about all types of energy including biofuels inthe state.

The EmPower policy supports doubling NorthDakota’s energy production by 2025 and also supports thenation’s increasing renewable energy 25 percent by 2025.

“The beauty of what we do at EmPower is to bringindividuals from traditional and renewable energy togetherall at the same table,” Anderson explains. “Our goal is simple.We need to create a very cohesive and synchronized energydevelopment plan for the state of North Dakota and biofuelsis a vital part of that process. The nation really needs to look,learn, and listen to what we have done in North Dakota.”

In South Dakota, ethanol is the major biofuel beingproduced and used. There is a cellulosic ethanol pilot

Biofuels policy supported, butmore needs to be doneMany industry leaders support a biofuels policy, but also believe that more things can be doneto help address any deficiencies in a national policy.

A renewable fuels

standard was

introduced

in the 2007

Energy

Independence and

Security Act.

��

This renewable

fuels standard

established a

ceiling of 15

billion gallons per

year made from

corn starch by

2015 with the

potential for up

to 36 billion

gallons of biofuels

by 2022 including

advanced biofuels

and cellulosic

ethanol. Corn-

based ethanol,

advanced biofuels,

and cellulosic

ethanol are all

required to

reduce

Greenhouse Gas

emissions by

specific levels.



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project that POET is running in Scotland, SD, that is expected toproduce 20,000 gallons per year. In addition, there is a biodiesel plantnear Alexandria, SD, that could provide 6 million to 9 milliongallons.

The three-state region is focusing on blender pumps now that thenew policy is supportive for that infrastructure. More than half ofthe nation’s blender pumps are located within the three-state region.South Dakota was the first state to allow blender pumps.

North Dakota has installed 155 pumps and has another 115 inprogress. South Dakota has funded around 70 blender pumps. SouthDakota will have $3.5 million over the next five years to provideincentives for ethanol blender pumps and other infrastructure;approximately $1 million of that amount is available in 2011.

“Our state’s and country’s biofuels needs requires all players in theindustry to be engaged in the process together,” Anderson says. “Weneed to work collectively to develop policies to overcome obstacles,eliminate barriers and economic growth in the biofuels sector.”

Tiffany believes the country needs consistent policies in order tofoster biofuels investments or crude oil prices above $80 per barrel.“Another policy that would help the biofuels industry would bepolicies or taxes (permit fees) on Greenhouse Gases,” he states. “Thatwould provide the incentive to improve the existing corn ethanolplants and encourage the use of cellulosic crops or residues toproduce biofuels as well as process heat and renewable energy.”



The majority are seeking employees that fit theirorganization’s success characteristics. Every organization has to maximize productivity

and profitability in order to remain competitive. To alignindividual performance with their specific business goals,many companies utilize a Behavioral Assessment tool suchas the Predictive Index®. This type of tool helps businessleaders identify the behavioral strengths of their currentworkforce and new hires for improved communication,teambuilding, succession planning and maximumproductivity. It allows them to make important decisionsabout people with objectivity and specificity.

Without such a tool in place, it can be difficult for theemployer to identify that ‘fit’ from a resume. Part of theevaluation process is to review the work history and yearsof experience, education and certifications required.

Leadership positions carry expectations and candidatesmost likely to land these positions must have the followingcharacteristics.

Proven ability to lead and inspire a team to accomplishcompany objectives. Look for examples of cost savings orprocess improvements on the resume.

Strategic thinking and planning abilities. What hasbeen developed, led, or differentiated.

Critical thinking and problem solving skills. Were theysuccessful at driving strategy and building consensus?

Emotional Intelligence which often times is viewed asEmpathy, humble confidence, and/or Intuition.

INTELLIGENT AND MOTIVATED INDIVIDUALFrom the resume, one must discern if the candidate

meets the minimum of requirements; and if so, is thereenough to justify an interview? Those conducting theinterview must have a solid picture in mind so they stayfocused on the job requirements, not just that they “like”the candidate. Some candidates are good at saying whatyou want to hear or selling themselves to the point ofdistraction from the goals. Staying on target is crucial.Background checks are becoming the norm and should bepart of the offer and completed before the person starts.

It is not for the faint of heart to take on the role ofhiring. You must have the ability to ascertain theaccomplishments, skills and gifts of the candidate in frontof you. PB

Leadership

We are fortunate here in North Dakota with a healthy unemployment rate of 3.2 percent, which allowsmany companies to grow and hire for management and leadership positions.

KATHLEEN TOFTProfessional RecruiterSpherion Staffing

[email protected]

Maximizingproductivity and profitability


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The grant addresses simulation, informatics and technologyenhancement over the next three years.“We pursued this funding because we were convinced that our

undergraduate nursing students need to continue to receive cutting-edge education that prepares them to provide the highest quality andsafest patient care possible,” said Nancy Fahrenwald, who serves as theassociate dean for research and program evaluator for the grant.“Ultimately, our students will be better prepared to provide for ruralfamily health needs when they enter the nursing workforce.”

The HHS grant will provide funding for the college to purchaseinfant and child mannequins for students to practice with patients ofall ages. The College of Nursing currently owns four adult mannequinsfor laboratory simulations. The mannequins connect to a control roomwhere faculty can create a patient care scenario. Adding infant and childmannequins will give students the opportunity to practice pediatricscenarios that are common in rural environments.

Students will also be introduced to new technologies to aid ruralpatient cares, such as electronic health records, informatics applicationsand telehealth resources. An example of informatics applications is theuse of electronic monitoring devices to record vital signs and othermeasurements needed to make a diagnosis. Using telehealth resourcescomes through programs that allow health professionals to view, sendor store video and digital images for patient assessment, diagnosis,treatment and evaluation over video conferencing technology. Theprocess can be especially helpful for health facilities with limitedresources, found often in rural hospitals. By incorporating these newhealth care technologies into the nursing curriculum, students caneasily adapt to clinical settings as they advance.

“Students will have the opportunity to utilize technologies alreadybeing used in the health care setting,” said Paula Lubeck, a nursingfaculty member who serves as the grant’s project manager. “With somany new things occurring as they take on their first nursing job, whata boost for students to be able to say, ‘Yes, I am familiar with this, wehad this in school.’"

A key part of the grant to aid rural health needs includes a ruralhealth fellow program for senior clinical practitioners. Stationed in arural setting, the student fellow is exposed to an intense clinicalexperience with unique health situations. In addition, quickertechnology helps these rural health fellows receive instant direction andinformation from larger health systems when the need arises.

“The closer to reality we can make the learning, the easier it will befor students to transition to the work world as skilled, confidentnurses,” said Lois Tschetter, who serves as the assistant undergraduatenursing department health and grant project director.

By researching and evaluating the SITE program, SDSU College ofNursing expects to give better quality of care and safety to the patientsthrough an intensive, technology-based training program for itsnursing students.

Lubeck, Tschetter and Fahrenwald direct the program. Other facultymembers are involved as content experts and site coordinators.

The Nurse Education, Practice and Retention Program within theHealth Resource Service Administration of the HHS is responsible forSITE’s funding. SDSU program sites in Rapid City, Sioux Falls andBrookings will benefit from the grant. PB

SDSU College of Nursing receives grant The South Dakota State University College of Nursingreceived a $1.09 million grant from the U.S.Department of Health and Human Services to strengthenthe quality and delivery of rural nursing education.

Program directors of a $1.09 million HHS nursing grant, Lois Tschetter, on left, and Paula Lubeck observe nursing students from the nursing simulation laboratory at SDSU.


ViewPoint

Access to reliable, efficient transportationis necessary for businessNorth America’s bountiful resources and Northern Plains were largely untouched until Christopher Columbus, atransportation shipper and entrepreneur, initiated formal commercial trade in North America.

Today, successful trade still relies on transportationas a key factor in determining economic activityand business success. The Northern Plains evolved

through transportation system improvements, first withoverland ox carts and riverboats, followed by railroads andnational highway system development. As transportationprogressed, it became evident that reliable and efficienttransportation is one of the best investments a developingcountry can make to improve their economy. The samephilosophy is as vital today as it was when our country wasevolving.

An outdoor advertiser once described traffic to me as“a river of money.” Savvy developers and business ownersrecognize the value of tapping into the “river of money” asmuch as possible, not only by developing on the biggesttraffic stream, but providing the right spigot to access the

river. Modern spigots include quality internet andtelecommunications access or driveway access during peaktraffic to avoid blocking potential customers or access torail shipping. Many have experienced times whentransportation access was interrupted or less efficient.Recent examples include landslides in western NorthDakota closing highways and requiring detours more than100 miles or temporary interruptions due to weather,flooding or road construction. Successful businesses haveaction plans to endure occasional interruptions. Inaddition, business developers often conduct traffic impactstudies of proposed developments to ensure reliable andefficient transportation access to their sites. A successfulbusiness works with community and transportationprofessionals, to achieve the best access to facilities foreveryone’s continued success. Happy trails! PB

Organized capital important Capital is undeniably important in our everydaylives and we use it for many purposes.

It is critically important to our continued growth and success as acountry. Many individuals strive for wealth (accumulated capital)and others are happy with a great lifestyle (making ends meet). As a venture capitalist, capital is a big part of my life professionally

and personally. In my personal life, Kelly and I use it for everythingfrom mortgage payments to groceries to donations. It is normal day-to-day activities and frankly our capital carries some power and influencebut not much. Professionally, I have raised over $230 million andinvested in 45 companies. The power of the organization andaccumulation from numerous sources has many benefits.

With organized capital you will attract the best deals andentrepreneurs. Most experienced or professional managers are attractedto capital that can be counted on for numerous rounds. This reducesfinancing risk. Organized capital also allows the investor to influencethe value of the investment opportunity. Being in the market gives theventure capitalist a better sense of the market and appropriate pricingof the enterprise. This improves potential returns and lowers thechances of down rounds later in the companies’ life.

Organized capital brings the appropriate transaction together andencourages terms that are appropriate for the risk capital beingprovided to the company. It is almost always sophisticated capital anddelivers enough financing to reach value added milestones andappropriately incentivizes the management team and Founders.Organized capital will bring a significant network and generally helpsdrive a great board of directors that includes experienced independentdirectors. These independent directors are important from both afinancial and fiduciary point of view.

Finally, organized capital generally has experience in syndication offinancing transactions and can bring other investors to the table. It alsohas significant experience in risk identification and management plansfor companies. The more that early stage angel investors band togetherand organize themselves the more likely the financial and economicdevelopment success. PB

John Deedrick is Managing Director of Linn Grove Ventures. He can bereached at [email protected].

BOB SHANNONSenior Transportation

EngineerKadrmas, Lee & [email protected]


Technology

Importance of thedevelopment ofthe different onlinetraining packages

Have you ever heard the statistic that only30 percent of classroom students arepaying attention at any one time?

Of course, every class is different, depending on the students, the subject, and theteacher, but classrooms can be inefficient for post secondary certifications for severalreasons:

Students can have a wide background, some students can have 30 years experience, otherscan just be finishing high school

Students can have different intellectual capabilitiesStudents can have different states of mind, some might have worked all night, and others

might be fresh and ready to learn.Online education provides a method to verify all students have learned the information.

Live training classes usually require students to pass a multiple-choice test, and obtain a scorefrom 60 to 75 percent. Online training schools can require the students to pass a test at a 90percent rate (or higher), as they can retake the test online, as many times as needed.

Online education has several other advantages, such as saving travel dollars, allowingstudents to work at their own pace, and allowing 100 percent compliance (nobody can saythey were sick on training day).

For example, if someone wants their Rserving certification for Responsible Serving ofFood or Alcohol, they can enroll online, immediately get their course access, and finish thecourse that day. This allows students to finish their classes before they start work.Responsible Serving of Food trains kitchen and wait staff on the importance of food safety, toreduce incidents of food borne illness, and food poisoning. The 24-hour flu is a myth, if youhave the 24 hour flu, it is normally due to food poisoning, which can happen either at home,at a friend’s house, or at a restaurant.

For training in Responsible Serving, each state has different requirements for the training,hence the delivery method can be slightly different. Some states require countdown timerson each page, to ensure students are spending time on the pages, some states have their owntesting system to interface to, and states have different methods of generating diplomas ordatabasing students.

Another example is home inspectors. Many home inspectors are experience contractorsthat are starting to retire from construction, but have a wealth of knowledge in construction.Some are electricians, others are framers, or can be general contractors. Online educationallows students to focus on the material they do not know, and allows the contractors tobreeze through the material that is their specialty.

These courses allow students to learn at their own speed, and provide a capability toobtain 100 percent certification. In the case of Responsible Serving of Food and Alcohol, 100percent participation is very important. PB

Robb Graham, President, Professional Training Service, Online Education Specialist. He canbe reached at [email protected].

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EMPLOYMENT (NOT SEASONALLY ADJUSTED)

UNEMPLOYMENT RATE EMPLOYMENT

June 2011 June 2010 June 2011 June 2010

North Dakota 3.8 % 4.2% 368,189 364,141Fargo MSA 4.2 4.4 113,986 116,175Bismarck MSA 3.6 4.0 60,029 61,089Grand Forks MSA 5.1 5.0 52,513 52,223Minot MiSA 3.5 3.7 33,046 33,543Dickinson MiSA 2.3 2.9 17,357 15,684Williston MiSA 1.4 2.0 22,127 17,272Jamestown MiSA 3.9 4.2 10,897 11,540Wahpeton MiSA 4.1 4.8 13,639 11,955South Dakota 4.6 4.5 434,945 431,660Sioux Falls MSA 4.5 4.6 125,045 123,940Rapid City MSA 4.6 4.5 65,355 65,915Aberdeen MiSA 3.7 3.4 23,090 22,770 Brookings MiSA 4.6 4.4 17,385 17,310 Watertown MiSA 4.1 4.2 18,545 18,270 Spearfish MiSA 4.4 4.0 13,230 13,385 Mitchell MiSA 4.0 3.8 12,910 12,750Pierre MiSA 3.5 3.0 12,895 12,475Yankton MiSA 4.6 4.6 11,580 11,465 Huron MiSA 3.4 3.4 9,855 9,700Vermillion MiSA 4.6 4.4 6,850 6,875 Minnesota 6.9 7.2 2,782,497 2,766,588 Minneapolis-St. Paul MSA 6.9 7.2 1,723,729 1,716,072Brainerd MiSA 8.2 8.2 45,253 46,033Winona MiSA 6.8 7.0 26,899 23,270Fergus Falls MiSA 6.3 6.4 29,714 29,560Red Wing MiSA 6.8 7.0 24,525 24,500Willmar MiSA 6.0 5.9 23,104 23,270 Bemidji MiSA 8.7 8.2 20,365 20,244Alexandria MiSA 6.1 6.1 19,314 19,963Hutchinson MiSA 8.0 8.5 18,798 18,703 Marshall MiSA 5.6 5.4 14,499 14,405Worthington MiSA 5.4 5.2 11,161 11,292Fairmont MiSA 7.0 6.9 10,962 11,101MSA — Metropolitan Statistical Area

MiSA — Micropolitan Statistical Area

Sources: U.S. Bureau of Labor Statistics, Minnesota Department of Employment and Economic

Development, Job Service North Dakota, South Dakota Department of Labor

CANADIAN EXCHANGE RATE

NORTH DAKOTA OIL ACTIVITY

Sweet Crude ProductionPrice/BBL Oil-BBL/day

MAY 2011 $94.69 361,407FEB 2011 $78.19 348,400DEC 2010 $79.10 344,100MAY 2010 $60.10 296,422

Drilling Producing Rig Permits Wells Count

MAY AIRLINE BOARDINGS

Source: Bank of Canada Data provided by Kingsbury Applied Economics

06/29/10 05/30/11 06/29/11

U.S. to Canadian Dollar $1.03 or $0.9718 $0.96 or $1.0370 $0.95 or $1.0484

U.S. to Euro $ 0.77 or $1.3068 $0.69 or $1.4523 $0.70 or $1.4387

U.S. to Chinese Yuan $6.77 or $0.1476 $6.46 or $0.1547 $6.44 or $0.1554

U.S. to Japanese Yen $86.47 or $0.0116 $80.63 or $0.0124 $77.17 or $0.0130

U.S. to Mexican Peso $12.64 or $0.0791 $11.72 or $0.0853 $11.72 or $0.0853

BOARDINGS % CHANGE/2010-2011

MAY 2011 154 5,570 175FEB 2011 155 5,324 167DEC 2010 134 5,331 163MAY 2010 102 4,893 114

JUNE % CHANGE JUNE % CHANGE 2011 /JUNE 2010 2011 /JUNE 2010

CANADIAN BORDER CROSSINGS

Source: US Customs and Border Protection

AUTOMOBILES TRUCKS

MINNESOTA

Intl Falls-Rainer 63839 7.0% 1990 0.2%Grand Portage 35813 23.7 1559 - 2.4Baudette 17473 - 6.2 792 5.5 Warroad 15803 7.7 1111 24.3 Roseau 4999 22.4 681 10.2NORTH DAKOTAPembina 30666 11.2 18299 3.9Portal 7709 -11.8 6277 - 9.5Neche 5435 23.0 740 -28.8Dunseith 7110 3.0 2611 -10.5Walhalla 4577 30.4 1052 2.2Noonan 2381 -28.7 178 -60.4

By the Numbers

July Rig Count 183 All Time High

Rig Count 184Source: NDOMB

Minneapolis-St. Paul 1,495,302 2.2Fargo 29,496 - 4.1 Sioux Falls 36,713 18.2 Rapid City 27,905 -12.1 Bismarck 16,055 - 3.2 Duluth NA NAGrand Forks 9,437 3.7 Minot 13,322 71.4 Pierre 1,286 4.6Source: US Customs and Border Protection

PB

Delton SteeleRegional President

Fargo, ND701-280-3553

Dave RozenboomRegional President

Sioux Falls, SD605-339-8639

Cindi WalshRegional President

Aberdeen, SD605-226-4103

Pat BurchillRegional President

Rapid City, SD605-394-2021

John SnustadRegional President

Grand Forks, ND701-795-6175

Tim HennessyRegional President

Bismarck, ND701-222-6286

At U.S. Bank, we are committed to supporting the Dakotas. It’s where we work and where we live. We’re also dedicated to being your local financial partnerwith the strength, support and service you deserve. Imagine what you can do when you have the power of US working for you.

U.S. Bank is one of America’s strongest banks. Our strengths have never been more aligned with the needs of our communities, and our stability makesus even more qualified to serve you.

As our nation recovers, we will use that strength to make our communities stronger too. We are well capitalized, open for business, and poised to do whatwe’ve been doing since 1863 – making sure the financial dreams of every U.S. Bank customer take flight with a bank that is safe, strong and ready to workfor you. VViissiitt oorr ccaallll aa UU..SS.. BBaannkk bbrraanncchh ttooddaayy!!

pb september

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