prairie business april 2012

www.prairiebizmag.comwww.prairiebizmag.com

April 2012

Models of EnergyEfficiencyBuilding With Energy Savings in Mindpg. 22

Green Living Just Makes Sensepg. 26

North Dakota. Doing Business Better.

The Enchanted Highway and its larger-than-life metal art draws visitors fromaround the country to rural North Dakota. Now, with support from the North DakotaDepartment of Commerce and its Tourism Division, the Enchanted HighwayFoundation is developing a hotel, bringing additional economic activity to the area.Learn how North Dakota is doing business better at www.NDBusiness.com

4 Prairie Business April 2012

Volume 13 No. 4CONTENTS

222630

6 From the Editors Desk

8 Matthew Mohr

10 Prairie News

14 Prairie People

16 Economic DevelopmentSteady growth in North Dakotas targeted industries is

key to states strong economy

18 FinanceCustomers demand green

20 Research and TechnologyThe 21st century resurgent plains

Feature Story: If you build it...LEED building design catching on in the region

Feature Story: Energy efficient livingEnergy efficiency a must in the Midwest climate

Feature Story: Making stridesin efficiencyLeading the way efficiently

38 Business DevelopmentBrookings attracts big business

40 South Dakota:SD Wins implemented

42 Red River Valley:Architecture students helpingcommunity develop vision for growth

44 Western North Dakota:Company reaps Bakken benefits,looks to the future

46 By the Numbers

EERC developing alternative liquidfuel for militaryThe Energy & Environmental Research Center inGrand Forks, N.D., is developing alternative liquid fuelsfor military and commercial applications.

NDSU CNSE lab analyzingclay samplesScientists in a lab at North Dakota State UniversitysCenter for Nanoscale Science and Engineering inFargo, N.D., are analyzing materials that could eventuallyplay a role as an ingredient in proppants used in oilexploration.

Next MonthIn May, Prairie Business will be taking an in-depth look at tourism in the region. We willdiscuss how states are setting themselves apart with branding, as well as see how communitiesare using unique ways to attract visitors. Finally, you will learn more about how touristattractions are creating a destination.

On the airJoin Prairie Business magazine editor Alan Van Ormer and host Merrill Piepkorn on Thursday,April 12, at 3 p.m. on any Prairie Public radio station to hear more about the April coverstories. To listen to Prairie Public, visit www.prairiepublic.org/radio/hear-it-now.

On the coverThe Andrew E. Lee Memorial Medicine and Science Building at the University of SouthDakota in Vermillion, S.D., provides the universitys School of Health Sciences and StanfordSchool of Medicine with high-tech research laboratories, classrooms and offices. TheLeadership in Energy and Environmental Design certified facility, designed by Koch HazardArchitects in Sioux Falls, S.D., will help reduce waste, conserve energy and water, loweroperating costs and increase value, reduce harmful greenhouse gas emissions and be ahealthier and safer work environment for employees. (Photo courtesy of Aaron Holmberg)

34

36

C an an oceanographer in the middleof the North American continent]nd happiness studying a [oodingfreshwater lake in landlocked NorthDakota?Yes, says Dr. Xiaodong Zhang, anassociate professor in earth systemsscience and policy at the University ofNorth Dakota.While Zhang continues to studyoceans, these days much of his workfocuses on the expansion of DevilsLake 90 miles west of Grand Forks andthe seemingly intractable problems itscreated. _e lake has risen nearly 32feet since 1993, increasing in volumeby seven times and in area by nearly]ve times (261 square miles). It hasinundated prime farmland, forcedtowns to relocate, and requiredgovernment to spend more than $1billion on [ood mitigation projects.When I looked at doing research,Zhang said, I found that much of the

current research lacks a rigorous studyof the hydrological properties of notonly the lake, but also of the entireDevils Lake Basin.We developed a hydrological modelto study the rainfall and the runo^ ofthe entire basin, instead of just the lakeitself, he explained. We combinedthat model with NASA data and futureclimate predictions to see what thefuture looks like for Devils Lake. If thelake is still rising, how high will it go?While Devils Lake is considered afreshwater body, its water is relativelysalty because its a terminal lake,which means that water [owing intothe lake normally has no naturaloutlet. Evaporation causes the saltsto concentrate, which makes thelake more saline than water in thesurrounding environment._e salinity level is quite stable anddoesnt change very much, Zhang said.Its about four parts per thousand.In comparison, ocean water is about 35parts per thousand.

When Zhang came to UND in 2002,he wanted students in his class onhydrological cycles to understandhow their lessons could be applied toeveryday issues. Devils Lake was anatural ]t.In September under a NASA-fundedproject to monitor the lakes waterquality, Zhang and his students suchas doctoral student Kate Overmoe-Kenninger, whos family spent timein the Devils Lake area deployed abuoy that continuously measures watertemperature, salinity, turbidity (cloudi-ness or muddiness), dissolved oxygenlevel and chlorophyll concentration, inaddition to weather information. _ebuoy was placed in Stump Lake, whichDevils Lake drains into.By monitoring water quality, we hopeto have a better understanding of howits changing and what factors couldcause that change, he said. Wellbetter understand how the qualityof water changes in response to theweather and long-term climacticchanges.

University of North Dakota, Grand Forks, ND 1.800.CALL.UND UND.edu

C an an oceanographer in the middleof the North American continent]nd happiness studying a [oodingfreshwater lake in landlocked NorthDakota?Yes, says Dr. Xiaodong Zhang, anassociate professor in earth systemsscience and policy at the University ofNorth Dakota.While Zhang continues to studyoceans, these days much of his workfocuses on the expansion of DevilsLake 90 miles west of Grand Forks andthe seemingly intractable problems itscreated. _e lake has risen nearly 32feet since 1993, increasing in volumeby seven times and in area by nearly]ve times (261 square miles). It hasinundated prime farmland, forcedtowns to relocate, and requiredgovernment to spend more than $1billion on [ood mitigation projects.When I looked at doing research,Zhang said, I found that much of the

current research lacks a rigorous studyof the hydrological properties of notonly the lake, but also of the entireDevils Lake Basin.We developed a hydrological modelto study the rainfall and the runo^ ofthe entire basin, instead of just the lakeitself, he explained. We combinedthat model with NASA data and futureclimate predictions to see what thefuture looks like for Devils Lake. If thelake is still rising, how high will it go?While Devils Lake is considered afreshwater body, its water is relativelysalty because its a terminal lake,which means that water [owing intothe lake normally has no naturaloutlet. Evaporation causes the saltsto concentrate, which makes thelake more saline than water in thesurrounding environment._e salinity level is quite stable anddoesnt change very much, Zhang said.Its about four parts per thousand.In comparison, ocean water is about 35parts per thousand.

When Zhang came to UND in 2002,he wanted students in his class onhydrological cycles to understandhow their lessons could be applied toeveryday issues. Devils Lake was anatural ]t.In September under a NASA-fundedproject to monitor the lakes waterquality, Zhang and his students suchas doctoral student Kate Overmoe-Kenninger, whos family spent timein the Devils Lake area deployed abuoy that continuously measures watertemperature, salinity, turbidity (cloudi-ness or muddiness), dissolved oxygenlevel and chlorophyll concentration, inaddition to weather information. _ebuoy was placed in Stump Lake, whichDevils Lake drains into.By monitoring water quality, we hopeto have a better understanding of howits changing and what factors couldcause that change, he said. Wellbetter understand how the qualityof water changes in response to theweather and long-term climacticchanges.

University of North Dakota, Grand Forks, ND 1.800.CALL.UND UND.edu

UND researcher Dr. Xiaodong Zhang and students like North DakotanKate Overmoe-Kenninger (inset photo with Zhang), who is pursuing herdoctorate from UND, are studying the hydrology of the Devils Lake basin.


Mike Jacobs, PublisherAlan Van Ormer, EditorTina Fetsch, Production ManagerBeth Bohlman, Circulation ManagerJen Braaten, Marketing ManagerJoe Greenwood, Multi-Media ConsultantKris Wolff, Layout Design, Ad Design

SSAALLEESS DDIIRREECCTTOORR::

John Fetsch [email protected] eastern ND

SSAALLEESS::Brad Boyd [email protected] western ND/western SD

Shelly Larson [email protected] eastern ND/western MN/eastern SD

EEDDIITTOORR::Alan Van Ormer [email protected]

EEddiittoorriiaall AAddvviissoorrss::Dwaine Chapel, Executive Director, South Dakota State UniversityInnovation Campus, Brookings.; Bruce Gjovig, Director, Center forInnovation; Lisa Gulland-Nelson, Communications Coordinator, GreaterFargo Moorhead EDC; Tonya Jo (T. J.) Hansen, Assistant Professor ofEconomics, Minnesota State University Moorhead; Dusty Johnson, Chiefof Staff for South Dakota Gov. Dennis Daugaards office; Brekka Kramer,General Manager of Odney; Matthew Mohr, President/CEO, DacotahPaper Company; Nancy Straw, President, West Central Initiative

Prairie Business magazine is published monthly by the Grand ForksHerald and Forum Communications Company with offices at 3752nd Avenue North, Grand Forks, ND 58203. Qualifyingsubscriptions are available free of charge. Back issue quantities arelimited and subject to availability ($2/copy prepaid). The opinionsof writers featured in Prairie Business are their own. Unsolicitedmanuscripts, photographs, artwork are encouraged but will not bereturned without 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 Beth Bohlman: [email protected]

Online: www.prairiebizmag.com

An SBA Award Winning Publication

For daily business newsvisit prairiebizmag.com

Those were the words of Sarah Spagnol, a mid-marketaccount manager for Google Enterprise, summing upin a nutshell what cloud computing has done for the

business community. Spagnol also discussed several business trends.One of them involved companies working together and

people all over the world are competing for jobs. Speed isimportant, Spagnol says, adding that businesses have to payattention to this and get to the market faster. It is alsoimportant to note that people in the past were working alone.Now, they are working together.Spagnol also believes that 9 to 5 is going away mentioning

that work gets done when it gets done and people are notworking in the office and are able to work from anywhere.In the news business, speed and accuracy has always been

our trademark. The Internet has made that even moreimportant. A case in point was a recent article that appeared in the

March issue of Prairie Business magazine discussing a possiblemerger between Eide Bailly LLP and Wipfli LLP. The day themagazine was printed the two major accounting firmsdecided to call off talks for the merger. Without the Internet,Prairie Business would have had to wait at least another 30days to make our readers aware of the change. With theInternet, we were able to put this breaking news on ourwebsite immediately.Granted, readers grab the magazine for its in-depth view

of the business world, but with the Internet we are able toprovide one more service for our customers anytime,anyplace, with anyone and with any device.And the cloud computing seminar in Fargo in February

just reinforced how important that is.

A recent cloud computing seminar in Fargo, N.D., pointed outone key issue: business can be done anytime, anyplace, withanyone and with any device.

From the editors desk

Business speeding up!

prairiebizmag.com 7


As one would suspect, the higher the grossretail sales per square foot of space occupiedthe better the results a retailer has produced.

A good number to watch for in all businesses is salesper dollar of assets. Industry comparables are hardto find for many businesses, but trends over timewill tell a business owner if the business isimproving, deteriorating, and most importantly, if itcan support the target sales level.If, for every dollar of sales, a business normally

requires 40 cents in assets, and the owner wants todouble sales volume. Calculating the new target salesper asset should give good guidance concerning theneed for additional investment.An associate of mine has rapidly expanded his

business over the last three decades, and as a result,moved multiple times. As with any businessexperiences, deciding when to move to a largerfacility is a challenge. Watching product movement

per square foot and per stock keeping unit (SKU)gave him solid guidance. Although he was constantlytold by staff space was short, by using hisbenchmarks, he made better decisions on when tomove, and as a result, faced little to no disruptionsin his service to customers. In addition to his spaceneeds benchmarks, he also uses inventory on handper dollar of sales, and does very specific cash use,needs and sources forecasting.When evaluating asset utilization numbers, use

total assets (both current assets and fixed assets), socash, accounts receivable, inventory, property, plantand equipment all need to be included.Sophisticated analysis can include liabilities

(particularly the adjustment in current liabilities asvolume changes), and gross trading margin alongwith net cash flow when determining business needsand expected results. PB

Business Advice

MATTHEW D. MOHR

CEO, Dacotah Paper Company

[email protected]

Asset UtilizationA benchmark used in retailing is sales per square foot.

FOUNDATIONAWARDED $120,000The Otto Bremer

Foundation, majorityowner of Bremer Bank,awarded $120,000 to theNorth Dakota StateCollege of ScienceFoundation. The fundswill be used to updatetechnology in the NDSCSAllied Dental EducationClinic on the Wahpeton,N.D., campus. Through the

combination of donation,grant and fundraisingdollars, the NDSCS dentaldepartment will be able toupgrade dental chairs andtechnology, reach more ofthe community to providegeneral services, and helpan increased number ofunderserved children atthe annual Give Kids aSmile event.

BUSINES

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PrairiePrairieusinessnorthern plains business resource

B

Make theswitch.

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Your onlinemagazineis stellar.

- Mike Hammerberg,

retired Cooperstown, N.D., educator.


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

CHAMBER MIXER HIGHLIGHTS PRAIRIE CENTERA recent Chamber Mixer in Sioux Falls, S.D., allowed visitors to view the newly-constructed Prairie Center,

home to Avera Cancer Institute and Avera Surgery Center.The $93 million, five-story, 260,000-square-foot building provides a comprehensive healing environment, with

virtually all cancer services provided under one roof. Programs are designed to see patients through the entire realmof cancer care from prevention and diagnosis to various treatment modes to survivorship care. The ACI is home tothe latest cancer care technology, as well as the latest evidence-based protocols and cutting-edge clinical trials. ThePrairie Center's interior, complete with indoor gardens, waterfalls and an extensive original art collection, isdesigned to inspire dignity, courage and hope.Avera Health has facilities in 300 locations in South Dakota, North Dakota, Minnesota, Iowa and Nebraska.

Along with Sioux Falls, there are hospital locations in Mitchell, Yankton, Aberdeen and Marshall, Minn. Julie Dixen, outpatient cancer program manager says the new facility allows the patients to become confident in

the care that is being provided as soon as they enter the doors. Our patients and support persons told us they dontwant to be treated as a number, she says. Rather, treat me as an individual and have a human connection. In ourother facility, it wasnt welcoming for families to be present during treatments. Families are now engaged andinvolved in the treatment process.

KEYNOTE SPEAKER: NORTH DAKOTA LEADING THE WAYThe lead economist for the Wall Street Journal told almost 450 people

gathered at the Holiday Inn of Fargo, N.D., on Feb. 28 that the right set of policiescould bring out a big boon for the economy.States like North Dakota are going to lead the way, says Stephen Moore, the

keynote speaker at the February Economic Outlook sponsored by the FargoMoorhead West Fargo Chamber of Commerce.Moores keynote speech focused on regaining prosperity, noting that North

Dakota has become an engine of growth for the United States economy.Also participating in the Economic Forum was Robert Benson, president and

CEO of the North American Coal Corporation, who discussed the local impact ofthe energy industry and the economic opportunities. He stresses that the majorthreats to the coal industry include EPA regulations, surface mining regulations,administration policies, foreign demand and energy exports.Peter Christianson, president and chief operating officer of Titan Machinery

notes that since 2003, Titan Machinery has 94 stores operating in eight states.Christiansen says that what has driven the strong agriculture economy isincreased growth in developing crops, increased demand for biofuels andtechnological advances.A third panelist, Shawn Dobberstein, executive director of Hector

International Municipal Airport Authority in Fargo, N.D., says in 2010, the Fargoairport had 366,000 boardings, which is the highest ever. Recently, Fargo AirCenter started providing flights to oil country.

Stephen Moore, lead economist for the Wall Street Journal,spoke on regaining prosperity at a recent Economic Outlooksponsored by the Fargo Moorhead West Fargo Chamber ofCommerce. (Photo courtesy of Legacy Photography)

The $93 million, five-story,260,000-square-foot Prairie

Center provides acomprehensive healing

environment, with virtuallyall cancer services providedunder one roof. (Photo byAlan Van Ormer/Prairie

Business magazine)

prairiebizmag.com 11

1-800-908-BANK (2265)Bremer.comMember FDIC. 2012 Bremer Financial Corporation. All rights reserved.

COUNTUS IN.

If you have the ingenuity and the drive to make your operationthrive and grow, count us in. Theres a Bremer banker nearbywith comprehensive solutions to help you manage all yourbusiness finances. Get the resources you need, without therunaround. Talk to your local Bremer business banker today.

SBA LICENSES FUND The U.S. Small Business

Administration licensed the firstnationally focused Impact InvestmentFund, SJF Ventures III, LP. The fundwill make equity investments incleantech and technology companiesin communities nationwide as part ofan impact investment initiative toinvest up to $1.5 billion in high-growth small businesses.SJF Ventures invests growth equity

in companies with strong financial,community and environmentalresults. SJFs areas of focus includes:efficiency and infrastructure; reuseand recycling; sustainable agricultureand food safety; and technologyenhanced services. The fund iscommitting up to $75 million ofinvestment capital over the next fiveyears.

For more information on theimpact investment initiative visitwww.sba.gov/content/impact-investment-initiative.

MERGER DISCUSSIONS CEASEEditor's Note: The March issue of

Prairie Business Magazine containeda feature story on the possible mergerof Eide Bailly LLP and Wifpli LLP.The March issue was already printedwhen news came that the two firmsdecided not to proceed with theproposed merger.Executives of Wipfli and Eide

Bailly, two prominent accounting andconsulting firms that rank among thelargest in the country, decided not toproceed with the proposed mergerand will continue to operate asseparate CPA firms. Eide Bailly managing partner and

CEO Jerry Topp and Wipflimanaging partner and CEO RickDreher say the firms decided toamicably discontinue mergerdiscussions because they could notcome to an agreement on key terms,according to a press release.


ALEXANDRIA COMPANY RECOGNIZEDAt its annual meeting, the Alexandria (Minn.) Area

Economic Development Commission recognizedAlexandria Industries as a Distinguished EconomicDevelopment Partner. Alexandria Industries inAlexandria, Minn., (the parent company of AlexandriaExtrusion Company, Alexandria Extrusion South,Alexandria Plastics, and Alexandria PrecisionMachining) was selected to receive this recognitionbased upon a number of factors, including thecompanys long-term commitment to the Alexandriacommunity, continued organizational growth andinvestment in the area, and investments in workforcedevelopment initiatives throughout the region. Alexandria Industries is a privately held, short lead

time, precision manufacturer of engineered productswith customers in a wide range of industries, nichemarkets and global locations. Since the companysfounding in 1966, employees and corporate leadershiphave been committed to utilizing industry-leadingtechnology and the highest quality workforce to provideinnovative design and manufacturing solutions to astrategic customer base who are challenged withdynamic and critical supply chain needs.

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

ALTRU EXPANDINGGrand Forks, N.D.-based

Altru Health System plans toexpand and rennovate itshospital and main clinic facilitieson Columbia Road and acquiresome of the properties on SouthWashington Street owned by theAurora group.The health system has added

41 physicians in 2011 and 2012.In addition to those starting thisyear, Altru is adding doctors toits clinics in Grand Forks overthe next few years.Altru completed a master

plan last March with severalpriorities: improve the careexperience for patients, makingmore hospital rooms private,accommodate growth fueled byphysician recruitment, relievecongestion at the ColumbiaRoad campus by movingservices to other locations, andreplace aging infrastructure andfacilities, according to an AltruHealth System press release.

FIRST FEDERAL BOUGHT South Dakota-based Great

Western Bancorporation says itis buying the company thatowns First Federal Savings Bankof Iowa for $41.5 million. The corporate parent of

Great Western Bank expects itsdeal for North CentralBancshares to close by summer. Under the deal, each share of

North Central common stockwill be converted into the rightto receive $30.58 per share, a 39-percent premium over theMarch 12 closing price. The deal will bring Great

Western up to 200 locationsthroughout Iowa, Nebraska,Arizona, Colorado, Kansas,Missouri and South Dakota. Thecompany says that after theclosing, it will have assets ofabout $8.9 billion and depositsof about $6.7 billion.

The Alexandria Area Economic Development Commission recognized Alexandria Industriesas a Distinguished Economic Development Partner. Pictured (L to R): Dan Olson(Douglas County), H. Dan Ness (city of Alexandria), Tom Schabel (Alexandria Industries),and Kevin Kopischke (AAEDC board chair) (Photo courtesy of Alexandria EconomicDevelopment Commission)

CHAMBERCHOICE AWARD FINALISTS ANNOUNCEDThe Fargo Moorhead West Fargo Chamber of Commerce

announced the names of 18 award finalists at its annualChamberChoice Reception on March 22, an event sponsored andhosted by Wells Fargo Bank. The ChamberChoice Awards Luncheon is scheduled for May 17

from noon to 1:30 p.m. at the Holiday Inn Fargo in Fargo, N.D.The ChamberChoice Awards program honors successful

organizations in the Fargo Moorhead West Fargo area that aredemonstrating growth and innovation and contributing to the areaseconomy and quality of life. Following, listed in alphabetical order bycategory, are the names of the 2012 ChamberChoice Award finalists:

Small Business of the Year: dogIDs, Onsharp, YHR Partners, ArchitectsBusiness of the Year: General Equipment & Supplies Inc., Park Co. Realtors, Warner and Company InsuranceSmall Not-For-Profit of the Year: Freedom Resource Center for Independent Living Inc., Junior Achievement, Ronald McDonald House Charities of the Red River ValleyNot-For-Profit of the Year: Community Living Services Inc., Dakota Boys and Girls Ranch, United Blood ServiceYoung Professionals Best Place to Work:Advanced Engineering and Environmental Services Inc., Blue Cross Blue Shield of North Dakota, Choice FinancialEntrepreneur of the Year: Barry Batcheller, Mark Schroeder, Alex Warner


REGION IN ECONOMIC EXPANSION The area represented by the Federal

Reserve Bank of Minneapolis is in aneconomic expansion.Toby Madden, a regional economist in

the public affairs department at the FederalReserve Bank of Minneapolis, told at least50 people attending Expo 2012 at theBigwood Event Center in Fergus Falls,Minn., that companies are producing morethan has ever been produced in Minnesota.Business is remaining optimistic

about their communities economy, henotes. However, in Maddens opinion, thenations high debt is what could hold thecountry back.According to a recent survey of regional

business leaders, in 2012, employment isexpected to increase by 1.2 percent, theunemployment rate is expected to dropbelow 5 percent by the end of the year,wages could increase 2 to 3 percent, andpersonal income is expected to increasemore than 5 percent.Along with Maddens presentation,

Nadene Kruize, senior vice president ofMinnesota Business Finance Corporation,discusses opportunities in financing dealswith the Small Business Administration;Greg Smedsrud, CEO of Communicatingfor Agriculture Education Programs (FergusFalls-based international ag internshiporganization with offices in 23 countries andmore than 27,000 placements on fourcontinents) talked about the importance ofbecoming a global player and building yourown international presence; and Rob Fuglie,innovator and entrepreneur, explained howhe started Fergus Foods, a manufacturer ofsunflower allergen-free snack food.

Toby Madden, a regional economist at thepublic affairs department at the FederalReserve Bank of Minneapolis, says duringExpo 2012 in Fergus Falls, Minn., thatstates within the area of the Federal ReserveBank of Minneapolis are in an economicexpansion. (Photo by Alan VanOrmer/Prairie Business magazine)

TMI HOSPITALITY EXPANDSLEADERSHIP TEAMAs part of the companys renewed focus

on development and growth, TMIHospitality Inc., one of the largestindependently owned select service andextended stay hotel companies in thenation, is expanding its leadership team atthe companys headquarters in Fargo, N.D. Robert Butch McConn, Jr. is general

counsel, Lisa Helbling is the companys newchief financial officer and Tracy Koenig ischief information officer as well aspresident of TMI Communications Inc., thetelecommunications division of parentcompany TMI Hospitality that also servicesthe hospitality industry nationwide.As general counsel, McConn will

supervise and develop systems andprocesses for addressing legal risk to thecompany ranging from work completedinternally, to selecting and managingoutside legal counsel. In Helblings role as TMI Hospitalitys

CFO, she will oversee the financialfunctions and performance of thecorporation. She will also oversee humanresources, project management, internalaudit and business risk management. As CIO of TMI Hospitality, Koenigs

role will provide solutions that not onlymanage and keep data secure, but moreimportantly will lead the IT strategy thatwill help support the companys growthplan and enhance customer experiencethrough technology.

NEW SENIOR BUSINESSRELATIONSHIP MANAGERCraig Ohlhauser has been named senior

business relationship manager for WellsFargo in Bismarck, N.D. In his new role,Ohlhauser will work with businesscustomers to help meet their commercialdeposit and credit needs.A native of Linton, N.D., Ohlhauser

joined Wells Fargo in 2005 as a personalbanker. Since 2006 he has worked withbusinesses across North Dakota, SouthDakota and western Minnesota as a salesconsultant for Wells Fargo MerchantServices. Prior to joining Wells Fargo,Ohlhauser served in sales and managementroles for Vallely Sport and Marine andCombined Insurance, both in Bismarck.

BECK TO LEAD MINNEHAHALINCOLN DEVELOPMENT GROUPErica Beck, economic development

manager for the city of Sioux Falls, hasbeen selected as the new executive directorof the Minnehaha and Lincoln CountyEconomic Development Associations. Becksucceeds Jeff Eckhoff, who recently becamethe state director for the South DakotaSmall Business Development Center. Beck has served Sioux Falls since 2005,

working with urban planning and localgrowth initiatives that helped maximize thecommunitys economic prosperity. In 2010,she was chosen to be economicdevelopment manager in the CommunityDevelopment department. In that capacity,she has administered the citys TaxIncrement Finance incentive, coordinatedand managed numerous downtowndevelopment projects and worked closelywith Downtown Sioux Falls, the Sioux FallsDevelopment Foundation, South EasternCouncil of Governments, the GovernorsOffice of Economic Development and theSioux Falls Area Chamber of Commerce.

BIBERDORF TO SERVE AS ENERGYIMPACT COORDINATORWayne Biberdorf will serve as western

North Dakotas energy impact coordinator.Biberdorf, a Williston, N.D., resident, willwork in the Oil Patch to help meet thechallenges that come with rapid development. In his new role beginning the first week

of April, Biberdorf will monitor local issuesand report on the regions needs to theGovernors office, cabinet members and toother state agency officials. Biberdorf grew up on a farm in

Bottineau County (N.D.) and graduatedfrom Willow City (N.D.) High School in1970. He received bachelors degrees inmath and physics from Minot StateUniversity and a civil engineering degreefrom the University of North Dakota inGrand Forks. Biberdorf started his career asa teacher in the Minot, N.D., Public SchoolSystem and has also worked for HessCorporation in Tioga, N.D., where he heldvarious engineer and managementpositions before retiring in 2010. He hasbeen active in the Williston communitywith his involvement on the NorthwestWorkforce Advisory Board and the NorthDakota Training Advisory Board atWilliston State College.


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.

ROBERT BUTCHMCCONN, JR.

LISA HELBLING

TRACY KOENIG

CRAIG OHLHAUSER

ERICA BECK

WAYNE BIBERDORF

Prairie People


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Steady growth in North Dakotas targetedindustries is key to our states strongeconomy and diversification. These

targeted industries include advancedmanufacturing, energy, value-addedagriculture, technology-based business andtourism.Our technology sector has gained national

recognition and our information technologysubsector job growth has been triple that of thenation. Microsoft and Amazon have bothrecently expanded. Amazon added a 30,000-square-foot facility that will expand itscustomer service operations in Grand Forksand create 200 full-time jobs. Microsofts Fargocampus is one of the larger Microsoft locationsworldwide, and its three buildings house over1,500 employees, vendors and contingent staff.Manufacturing also continues to grow in

North Dakota. One example is the recentexpansion announcement by Caterpillar inWest Fargo. Construction has started on a $50million project that will create about 250 newjobs during the next three years, nearlydoubling the plants current workforce.Caterpillar officials told us that North Dakotaspro-business climate was a major factor in itsdecision to expand in West Fargo. PhoenixInternational, a company that manufactureselectronics for John Deere, recently brokeground on a $22 million expansion project thatwill include 90,000 additional square feet inFargo for an expanded workforce.

The states business growth also includesexpansions at WCCO Belting inWahpeton, Harris Manufacturing in Oakes, andat the Monsanto and Cargill facilities in theFargo area. Cargill recently started a $50-million expansion project and Monsanto hascompleted a $17.5 million expansion that hascreated 20 new jobs. Tourism is another area that continues to

drive North Dakotas economy as the third-largest contributor to gross state product. Thetourism industry growth is visible by looking atthe number of new hotels constructed acrossthe state. In the past two years, 21 new hotelshave opened, adding 1,474 sleeping rooms in 11communities. Another 24 hotels are underdevelopment and are expected to add another1,800 rooms by later this year.North Dakota has the lowest unemployment

rate in the nation; we have 16,000 plus jobsopenings, with 60 percent of those outside ofoil-producing counties. In fact, the countieswith the greatest number of job openings rightnow are Cass with 3,684 and Burleigh with2,797. North Dakota has added nearly 50,000 new

jobs in the last decade. The American economygrew at a pace of 2.9 percent last year, whileNorth Dakotas economy increased by 7.1percent last year.Oil is just one piece of our economic success

and our economy is much bigger and morediverse than ever before. PB

Growth in targetedindustries key to NorthDakotas strong economy

North Dakota has one of the strongest economies in the nationand while oil plays a role it is only one piece of the puzzle,making up just 25 percent of our state revenue collections.

ALAN ANDERSONCommissionerNorth Dakota

Department of Commerce701-328-5312

[email protected]

Economic Development


DALE CARNEGIETRAINING

Partnering strategically with companies since1912 to increase their capacity to execute and

drive business results.

North Dakota &Western Minnesota | www.northdakota.dalecarnegie.comSouth Dakota & Nebraska | www.nesd.dalecarnegie.com

Green: its everywhere. Its at the center ofmany corporate manufacturing andmarketing policies. And whether you believe

in climate change or still have doubts, consumersare now demanding green. Adopting environmentally friendly and energy

efficient business practices provides numerousbenefits to new and existing small business ownerslooking to control costs, attract customers andbecome socially responsible. Recycled, energyefficient, eco-friendly; these terms, and others, allhelp define the fast-growing green market.So what can you do as a small business?

Remember, that regardless of what options youchoose, each one of them should and must beconnected to your marketing strategy and companymessaging. If you adopt energy efficiency practices,let your customers know; if you are committed tolocal agriculture, let them know, and if yourproduct contains recycled byproducts, let themknow. Four out of five consumers say they are stillbuying environmentally friendly products andservices today which sometimes cost more evenin the midst of a recovering economy.Save energy now. The prudent use of energy is

one of the easiest and most cost-effective steps youcan take to cut costs and increase profitability rightnow. Take these steps to get started:

Conduct an energy audit to quickly identifyareas where you can save energy costs.

Purchase Energy Star appliances and officeequipment.

Provide energy saving tips to your employees

Look for green power and renewable energysources

Be green-minded. You can own a restaurant, adry cleaners, a construction company, a cardboardmanufacturerthe type of business does notmatter. You can go green with little or very largeinvestments. A local restaurant may advertise farm-to-table food choices, the dry cleaners offers a localbio-degradable detergent option, the manufacturerof pipes invests in a zero-pollution state-of-the artwaste recycling facility.You can decide that your entire operation goes

green, or take a more incremental and affordableapproach.Build green. If you are opening a business in a

new or remodeled building, make sure you buildgreen by installing energy efficient heating and airconditioning systems, appliances, equipment andlighting. And consider Leadership in Energy andEnvironmental Design (LEED) certification. As aninternationally recognized mark of excellence, itprovides small businesses a framework forimplementing measurable green building design,construction, and maintenance solutions.

HOW CAN SBA HELP?SBA is committed to providing entrepreneurs

with access to the resources they need to plan,market and finance their green business ideas,services and products. For example, through the504 loan program we have helped finance over 15LEED certified projects and our Small BusinessInnovation Research program has fundednumerous research grants, including economicaland low capital intensive methods to dissolve heavymetal contaminants. PB

For a free comprehensive online guide to greenbusiness practices and other resources connect towww.sba.gov and type Green Business Guide in thekeyword search.


Customers demand green Green dry cleaners.

Green energy.

Green car washes.

Green wall paints.

Green grease removal.

DAN HANNAHERRegional Administrator,

Region VIIISmall BusinessAdministration303-844-0505

[email protected]

FINANCE


Were looking for highly qualified peoplein these industries:

Customer Service RepresentativesFiber Glass FabricationMetal FabricationEmployment VerificationPrinting & Press OperationsElectronics ProductionHealthcareWelding

For further information contact the SDDepartment of Labor at 605.626.2340 ordlr.sd.gov and www.aberdeensd.com

Aberdeenis Growing!!


Research/Technology

For much of the past century the GreatPlains has been caricatured as a greatmistake.

You can survive on the plains according toconventional wisdom but hold your aspirationsand dreams in check because you certainly canthope to thrive in flyover country.In the next few decades, the plains states and

prairie provinces could well prove a criticalasset for the continent. During the currentglobal economic crisis, the plains and prairieregion has been experiencing a largelyunheralded economic and social revival. The oil and gas boom is certainly a big

contributor to the regions rising economicfortunes and ambitions. Surely this growthcomes with challenges. But it also compelsleaders in government, business and othersectors to plan and work together to takeprompt action to build 21st centurycommunities through investments ininfrastructure, transportation, communityfacilities, public services, workforcedevelopment and housing. Conventional wisdom about the Great

Plains states and prairie provinces is beingshattered in other unexpected ways. The Great Plains is urbanizing, and some

small and medium-sized cities enjoy the fastestjob growth in the nation. Multi-purpose hubsthat serve as regional trade, government andservice centers with universities or colleges areshowing the strongest growth but many smallercommunities in proximity to economicopportunities in energy and manufacturing areexperiencing new growth too.

Agriculture is booming and becomingincreasingly knowledge-intensive as tech-savvyfarmers adopt precision agriculture practicesand work with processors to reach high-valuemarkets in food, fuel, fiber and pharma. Alooming world population of 9 billion assures agrowing long-term market for commoditiesand specialty products. The Great Plains is a relatively

undiscovered hotspot for science andtechnology-based development. The region haslong boasted better education scores than mostcoastal states. North Dakota has the third-highest percentage of college educated peopleunder 34 of any state. There is also rapidgrowth of technology corridors, includingaround Winnipeg, Manitoba, the Red RiverValley, Sioux Falls and in parts of the Texasprairie.In 2010, Inc. Magazine highlighted the Red

River Valley Research Corridors emergingvaccine and infectious diseases industry but thecorridor is also on the leading edge inmicroelectronics, manned/unmanned aviation,remote sensing, farm machinery andequipment, off-road vehicles, energy,agriculture, coatings and surfaces, and advancedmanufacturing.Our challenge will be to build on our

existing and emerging opportunities, whileensuring that the benefits accrue as broadly aspossible. This will require investments ineducation, training and infrastructure and thevigorous creation of networks aroundsynergistic opportunities in agriculture,manufacturing and energy.

The 21st century resurgent plainsONE OF THE LEAST ANTICIPATED DEVELOPMENTS IN THE GLOBALGEOGRAPHY OF THE 21ST-CENTURY IS THE RESURGENCE OF THEGREAT PLAINS OF NORTH AMERICA.

DELOREZIMMERMAN

President,Praxis Strategy Group and

Executive Director,Red River Valley

Research Corridor


NEW LEASE SIGNEDLuminart Corp., the

parent company of Black &Blue Water Service LLC andB 3 Well Services, announcedthe signing of an 80 acrematerials lease contract inNew Town, N.D. Adding tothe fully operational 160acres also located in MontrailCounty, this gives B 3 240acres of aggregate mining inthat area alone. It's estimated that the 80

acres has approximately ahalf million ton in reserve. B3 generates revenue throughthe sale of the aggregates andthe trucking of the productto oil production and roadconstruction sites. Thecompany currently hascommitted reserves capableof providing 160,000 tonsper month over the nextthree years.

BUSINES

S NEW

S

Architects/Engineers

Energy efficiency experts are seeing growth in Leadership inEnergy and Environmental Design (LEED) certified andother green-type building designs in the region.

Rebecca Molldrem, LEED accredited architect at JLGArchitects in Fargo, N.D., believes the green energy phenomenonis about values. People are realizing that population growth,health issues and environmental issues are a problem. They areeducating themselves, saying theyre not okay with how thingsare and want to change it, she says. Value systems are changing.Owners are saying they expect a green, sustainable building andwill consider additional costs (to a point) to get that. Much likewhen people are willing to pay a slight premium for organicfoods they value the product because they feel it is healthier forthem and more environmentally friendly to produce, and adjusttheir budgets accordingly.Stacey McMahan, principal and LEED accredited professional

at Koch Hazard in Sioux Falls, S.D., believes the United States is acash-crop society, but that people are also realizing the intrinsicand health value propositions. The bottom line is effective indriving a lot of change, she says. There are different green building definitions, but the

definition most always includes designing buildings that will lastlonger, are more efficient, cost less to operate, and contribute tohealthier living and working environments.LEED certification is a point-based system where building

projects can earn LEED points for satisfying specific greenbuilding criteria. The five categories include sustainable sites,water efficiency, energy and atmosphere, materials and resourcesand indoor environmental quality. There are also four levels ofLEED certified, silver, gold and platinum.

According to the Green Building Certification Institute(GBCI) website, there are nine LEED certified projects in NorthDakota. The highest LEED standard is gold in the state. Fourbuildings meet those standards - GRE/Gagnon Office Building inBismarck, GSA Land Port of Entry in Antler, Microsoft Fargo inFargo, and Standing Rock Community Elementary School inFort Yates.South Dakota has 22 LEED certified buildings. Two are

platinum, which is the highest level that can be achieved.Heartland Consumers Power District in Madison and Museumof Visual Materials in Sioux Falls have both reached that level.

MINNESOTA LEADS IN LEED CERTIFIED BUILDINGS Minnesota has the most LEED certified buildings in the three-

state region with 160. There are nine platinum facilities. In westernMinnesota, the University of Morris Community Service Buildingin Morris is rated gold. Silver certified buildings include EvergreenHall at the University of Minnesota-Crookston, Lakeland MentalHealth Center in Fergus Falls, North Country Health Service SeniorHousing in Bemidji, and West Central Research and OutreachCenter in Morris.Mike Smoczyk, director of education at Kraus-Anderson and

LEED green associate housed in the Twin Cities and also on theboard of directors of the Minnesota chapter of the United StatesGreen Building Council, says there is an increase in theawareness of energy efficient buildings. He notes that inMinnesota public buildings, like county facilities, universitiesand state schools, are working to meet the B3 guidelines focusedon energy.B3 guidelines for both new buildings and major renovations

If you build it...LEED building designs catching on in the region

The National Energy Center of Excellence on the Bismarck State College campus is designed to meetthe requirements of silver-level LEED certification. (Photo courtesy of EAPC Architects Engineers)



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must exceed the state energy code by at least 30 percent, focus onachieving the lowest possible lifetime costs, encourage continual energyconservation improvements, include air quality and lighting standards,create and maintain a healthy environment, facilitate productivityimprovements, specify ways to reduce material costs, and consider thelong-term operating costs of the building including the use ofrenewable energy sources and distributed electric energy generationthat uses a renewable source or natural gas or a fuel that is as clean orcleaner than natural gas. The state of Minnesota insists that their buildings meet the three

guidelines focused on energy, he says. It is also easy to access goodinformation so people everywhere are more aware.Kraus-Anderson is working on two LEED registered facilities in

western Minnesota. One is in Wadena, the community that wasdevastated by a tornado a few years ago. The high school will be readyto go within six months, Smoczyk says. They were interested in energyefficiency, in particular, investing in insulation and taking measures thatwill save money for the life of the building, he states.Alexandria is also pursuing a LEED registered building that will be

breaking ground in the spring. There was very much of an interest bythe community, Smoczyk says. They brought up sustainability andenergy efficiency. People are concerned about that and wanted that.He also believes that LEED, Energy Star and B3, which are state and

national programs that assist with energy efficiency and sustainability,are spurring green building.People are becoming more aware of energy and environmental

needs, as well as saving money in the long run, Smoczyk states. We areall taxpayers and with public buildings, should thoughtfully plan tosave energy and money.Smoczyk says many are trying to educate people to invest more

upfront and understand that there will be a payback in an eight yeartime period or less and savings for many years after that. That is moreand more the way buildings are being built, he says.

THE NUMBER OF SQUARE FOOTAGE OF LEEDCERTIFIED BUILDINGS IS INCREASING EACH YEARAccording to Leap Chear, LEED certified architect at EAPC

Architects Engineers in Fargo, N.D., in 2011 there was 1.7 billion feet ofcommercial space. Buildings that have gone through the LEED processare starting to collect more data and learning that LEED buildings areenergy efficient and sustainable and they are starting to get the proof,he says.Chear notes that EAPC has several projects that have potential for

LEED certification. We are hoping to put more up in the comingyears, he says, adding the firm has set a goal for one LEED certifiedproject for each office per year.He also says that in North Dakota more projects are going through

the registration process. Government projects, both new and majorrenovations, are required to be LEED certified, he states. It is good toincorporate those LEED strategies even if they are not going through theprocess.McMahan says the United States government is leading the change.

GSA (U.S. General Service Administration) is requiring LEEDcertification. Other departments are assessing for LEED but notrequiring it, she explains.McMahan notes there are programs in nearly every state studying

environmental impact, sustainability or requiring LEED buildingcertification. For instance, Sioux Falls is currently engaged in asustainability MP including a greenhouse gas (GHG) assessment. There

are also comprehensiveprograms in Austin, Texas andChicago, as well as pilot cityprograms in Charleston, S.C.,and Fayetteville, Ark.Another reason why LEED

certified square footage isgrowing is that information isspreading and manufacturersand the construction industryare taking the lead and makingtheir product more sustainableand environmentally friendly.However, Chear states that

costs are coming down becausethere are better materials andproducts being manufacturedevery year, as well as moreefficient equipment. Thebenefit is so great, that theseinitial investments are worth it.You can expect higherperforming business withoutinitial higher investment, hesays. With the LEED process, ittakes more effort and time inthe design stage because itrequires a much higher level ofdesign strategy. Green projectsor green buildings continue tocost more at the same rate.Manufacturing industries arestarting to adapt to it and priceswill eventually come down.The main benefits of

building green include reducing energy consumption, protection ofecosystems and improved occupant health.McMahan states that architects need to take the long view in regard to

costs as well as a more comprehensive one to include embodied costs ofmaterials and projects. For example, expending energy extracting virginmaterials when materials can be reused from another deconstructedbuilding, or shipping tile from China instead of using a more localmaterial, preserving and renovating a building instead of tearing onedown and constructing buildings to last 100 years instead of 30.There are also several challenges associated with constructing LEED

buildings.Smoczyk believes that the major challenge is always the upfront

costs to invest in better windows, better building envelopes, and moreefficient mechanical systems that over time will have a payback.Chear says, for one, developers are slow to embrace it because of the

initial investment. They need to look at it as an investment down theroad, he states. Invest in the building upfront and reap the benefits forthe life cycle of the building. The payback is going to be there. Molldrem states that with the change in the energy code, in

particular the R value (insulation properties), it is causingmanufacturers to change the way they detail products. Now the morewe get into design build, the construction managers are asking us to doinitial energy calculations, she says. Architects are taking on moreresponsibility for energy efficiency earlier in the design. PB

Rebecca Molldrem, LEED accreditedarchitect at JLG Architects in Fargo, N.D.

Leap Chear, LEED certified architect atEAPC Architects Engineers in Fargo, N.D.

Architects/Engineers


Midwest Models

Most architects and engineers who design buildings in theregion are conscious about energy efficiency using varioustechniques to assist homeowners and commercial buildings.

It is important to do this in this region because of the climatewe live in, says Mic Buschette, vice president of operations atDynamicHomes, headquartered in Detroit Lakes, Minn.Starting in 2012, every home sold by DynamicHomes will be

Energy Star ready with R21 insulation for the walls and R50insulation for the ceiling. The standard in Minnesota is R19/R44.The homes are constructed in the production facility in DetroitLakes and then delivered to the building site. Once there, Energy Starcertifies it on site.Energy Star is a residential program implemented by the U.S.

Environmental Protection Agency and the Department of Energythat maintains energy efficiency standards 15 percent higher thanthat of the International Residential Code.We are practically doing it now anyway, Buschette explains. We

have the ability to guarantee people what they are getting and meetEnergy Star requirements also.Phil Stahl, principal architect for Stahl Meland Architects and

Builders in Fargo, N.D., says architects and engineers have been taughtsince the 1970s about energy efficiency in buildings. Good buildersbuild good homes, he states. It is so ingrained in everything we do.Good green design is part of what we do.

TRANSFORMING A RESIDENT HALL TO LEEDWhile DynamicHomes is constructing 200 homes a year and

Stahl Meland Architects and Builders continues to add energyefficiency in construction of $400,000 to $1 million homes, highereducation campuses across the region are focusing on Leadership inEnergy and Environmental Design (LEED) standards for differentfacilities.The University of Minnesota Crookstons Evergreen Hall is the

first University of Minnesota LEED registered residence hall. The 32-bedroom apartment with 128 beds was constructed in 2008 and is

Energy efficient livingEnergy efficiency a must in the Midwest climate

The University of Minnesota Crookstons Evergreen Hall is the first University of Minnesota LEED registered residence hall. The32-bedroom apartment with 128 beds was constructed in 2008 and is silver certified. (Photo courtesy of U of M Crookston)

Starting in 2012, every home sold by DynamicHomes will be Energy Starready with R21 insulation for the walls and R50 insulation for the ceiling.The standard in Minnesota is R19/R44. (Photo by Alan Van Ormer/PrairieBusiness magazine)

Paul Fick Homes, in Sioux Falls, S.D., is finding that being part of thegreen building program in the city is paying big dividends in itshomebuilding operations. (Photo courtesy of Paul Fick Homes Inc.)

Stahl Meland Architects and Builders in Fargo, N.D.continuously work various energy efficient items inconstruction. (Photo courtesy of Stahl MelandArchitects and Builders)


silver certified.In my view every building

should be built like this up-frontbecause it uses less energy, saysDaniel Svedarsky, director, Center forSustainability on campus. It hasresulted in less energy being used inoperations, but were not sure exactlyhow much since we are still in theprocess of getting better monitoringequipment.

LEED consists of a suite ofrating systems for the design,construction and operation of high-performance green buildings, homesand neighborhoods. LEED is intended

to provide building owners and operators a concise framework foridentifying and implementing practical and measurable green buildingdesign, construction, operations and maintenance solutions.The new dormitory was constructed in part because students at the

university decided it was important to take a long-term view of thefacility and look at energy efficiency.More than 99,000 plastic bottles were saved by using Bolyu carpet.

All the appliances are Energy Star rated. The counter tops consist ofrecycled banana peels. All kitchen cabinet hardware in the apartmentswere salvaged from McCall Hall, refinished and installed. Lightingpendants located in the first floor lounge were salvaged from KiehleHall and refurbished for use in Evergreen Hall. Vetrazzo countertopsfound in the first floor common bathrooms are made from recycledapple juice jugs, root beer, vanilla and medicine bottles.The campus needed to do this to show the way and to demonstrate

how to live life with less, Svedarsky says. This is a living example ofsustainability and using resources in a way that wont adversely impactfuture generations.The university is planning another energy efficient residence hall and

is expected to break ground in the spring and be completed in 2013.Svedarsky says one of the challenges of LEED certified campus

facilities is management of construction debris because of the LEEDrecycling process. Overall, Svedarsky and the campus community hopesto transition to a greener campus.It is the right thing to do for the planet, as well as the right thing to

do for the pocketbook, he states. It all boils down to economics, butwe have to look at the long-term.

GREEN BUILDING PROGRAM IN SIOUX FALLSPaul Fick Homes, in Sioux Falls, S. D., is finding that being part of

the green building program in the city is paying big dividends in itshomebuilding operations.Locally, Im trying to push it more often, states Paul Fick, who is

the owner/president of Paul Fick Homes Inc., and also a member of theNational Association of Home Builders (NAHB). Part of it is educationto the public and other home builders. Im convinced that under newbuilding codes well soon be required to do it anyway.Green building is something that the Sioux Falls homebuilder has

been studying over the past three years and incorporating in all of hisbuilding projects, so it was just a natural fit to become part of the greenbuilding program. There is a National Green Standards booklet with sixchapters that discusses different aspects of green building. Like LEED

certification, the green buildingprogram accumulates points that leadto brown, silver, gold, or emeraldcertification.People around Sioux Falls are

becoming more aware of the programand the houses legitimize what theyare seeing, Fick notes. It is a betterbuilt home, lasts longer and is moreenergy efficient. They are going tonotice it.At first, paperwork and education

was a challenge, but now Fick believesthat the challenges are in the past.Even though we are improving scoresin some areas, the building is still going to be built green.

WORKING IN AN ENERGY EFFICIENT ENVIRONMENTWhile all construction is not LEED certified or Energy Star certified

across the region, architects continuously work various energy efficientitems into construction.For example, Stahl says geothermal is taking off in the area.

Companies are doing a good job of marketing geothermal decreasedcosts in the long run, he says. It is expensive to put in geothermal butthe owners are going to see savings 15 years out.In addition, Stahls buildings will use structural insulated panels

with a higher thermal performance than 2x6 insulated stud walls.Typically, we build structures with insulated panels saving thehomeowner 50 to 60 percent in energy costs, he states. We are alwaysconscious about energy efficiency.Many architects say that the design portion of the construction of a

building is the important point in dealing with energy efficiency. Forexample, Stahl has fiddled with passive design by using more naturallight in his own office space. In addition, anywhere the employees walkthey are looking at a window area.Other examples of his construction projects are routing water to a

planting bed and installing radiant floor heat. What is also happening isthat codes are catching up to what architects and engineers are doing,meaning it is in their best interest to become more energy efficient indesigning projects.By designing every home as an Energy Star home, DynamicHomes

is hoping to increase its $18 million a year gross revenue and add to its100 or so employees.It is going to help our business going forward, states Paul Nord, chief

financial officer. It gives our dealer network a leg up on our competition.Along with the increased R-values, DynamicHomes adds vapor

barriers to keep air infiltration to a minimum, has installed air-tightceiling fixtures, and is foaming all ceiling and exterior walls.In its marketing brochure, DynamicHomes says it can provide a

certain amount of savings for its three-bedroom rambler depending onwhere its located in the region. For example, in southeastern SouthDakota a homeowner has a 52 percent savings, in south central a 74percent savings, and in northeastern Minnesota a 61 percent savings.In addition, the construction company is finding that homeowners

are seeing a savings of up to 50 percent or more, reducing the chance ofmold and pollutants, and reducing air infiltration up to 66 percent. PB

Alan Van Ormer - [email protected]

Midwest Models

Daniel Svedarsky, director,Center for Sustainability at U of M Crookston.

Paul Fick, owner/president ofPaul Fick Homes Inc.


Efficiency Leaders

Dave McFarlane found his niche later in life about thetime he was getting ready to retire from running abusiness in Grand Forks, N.D.

Now retired, McFarlane has relocated to Fort Meyers, Fla.,and is involved with retrofitting projects all across the nationwith his company Technical Commissioning Inc. In essence,McFarlane is one leader who is helping make strides inefficiency across the region and the nation.To be a leader in building energy efficiency, McFarlane

says it takes good engineering skills and technicians that areskilled in the ability to measure airflow and temperatures,and to develop packages that you can take to people andprovide opinions on what they are going to save.

WHAT IT TAKES TO BECOME A LEADER INENERGY EFFICIENCYDesigning energy efficient buildings is increasingly

becoming a global issue. The number and intensity of high-level discussions regarding energy costs and the reduction inconventional energy resources is increasing, says DavidCrutchfield, assistant professor for architecture andlandscape architecture at North Dakota State University inFargo. To a great extent, the market is demanding it; theprofession is telling us they want graduates who understandenergy use, and our students want to learn how to do these

things.Crutchfield teaches a course titled Environmental Control

Systems in Architecture. In this, the first of two semester-long courses on building technology systems, students aretaught how to design buildings that minimize energyconsumption and respond effectively to their climateconditions.As a whole, our entire curriculum in architecture is

geared to the reduction of energy use, he states. From thebeginning to the end, we strongly emphasize theconsideration of energy consumption and environmentalimpact in the design of buildings.Crutchfield sees firsthand the next generation of leaders

who will be developing the energy-efficient buildings of thefuture.Education is a big part of this. Understanding the

fundamentals and keeping-up with the latest technologies isnot easy. Crutchfield notes. Leadership is a significant partof this as well this includes the ability to think beyondnormal conventions as well as the willingness to accept therisks of innovation. All of this is required of great leaders inenergy efficiency.Along with leadership skills, other traits include being an

effective communicator, being proactive and wanting tomake a difference. It also requires an analytic mind, a

Making strides in efficiencyLeading the way efficiently

Since retro-commissioning of the Grand Forks County OfficeBuilding, the county saved more than $1.4 million in energycosts. (Photo courtesy of Dave McFarlane)

The first year after tune-up and retro-commissioning of the Grand ForksCounty Courthouse, the county saved more than $40,000 in energy costs.(Photo courtesy of Dave McFarlane)

32 Prairie Business Energy April 2012

Efficiency Leadersperson who not only wants to understand complex systems butseeks to understand the interactions and integration of complexsystems, Crutchfield states. Our students need to understand notonly how systems work but how they interact together to create aneffectively designed environment.More importantly, once they are in the profession, they become

decision makers. What designers really do is make many, manydecisions, Crutchfield explains. We continuously seek to reconcilenumerous competing factors throughout the design process eachwith varying weights of importance - including energy efficiency.In this way, the decisions designers make impact everyone downthe line to manufacturers. It really has a rippling impact all the waythrough the economy when architects make these decisions.

DEVELOPING RETRO-COMMISSIONING McFarlane was one of those architects that had to make tough

decisions during his career.As owner and manager of McFarlane Inc., he and his staff have

performed heating ventilation air conditioning (HVAC) retro-commissioning for more than 30 years. He has developedprocesses and techniques to help minimize problems in existingbuildings.McFarlane first developed the retro-commissioning approach

30 years ago while working with the University of North Dakota(UND) in Grand Forks to help correct problems in existingbuildings.The retro-commissioning process produces buildings where all

equipment and controls work as owners expect. Through hisinvolvement with the National Environmental Balancing Bureau(NEBB), McFarlane has helped form U. S. national standards forenvironmental balancing in HVAC systems. He has 35 years ofexperience with industrial, design-build, commissioning and retro-commissioning projects.Two major retro-commissioning projects he worked on in

Grand Forks include the Grand Forks County Courthouse andGrand Forks County Office Building. The County saved more than$1.4 million in energy costs at the county office building.Complaints dropped by 90 percent, since people stoppedcomplaining when they knew their workspaces were maintainedwithin agreed-upon temperature ranges. The first year after thetune-up and retro-commissioning of the courthouse, the countysaved more than $40,000 in energy costs.McFarlane has been developing the retro-commissioning in

western Minnesota and North Dakota for the past 10 years. Hestarted working for the Air National Guard three years ago and hascompleted projects in Ohio, Missouri and Iowa.He notes there is a market demand for this type of work. The

federal government has mandated that (energy use) in all federalbuildings be lowered by 30 percent by 2020, he says. Every federalbuilding has to do what we know how to do well. Personally, I findit very rewarding working with owners interested in doingsomething right opposed to doing something that is cheapest.In order to provide energy efficiency, Technical Commissioning

provides a benchmark for buildings to see how much energy isbeing used and compare that to what a typical efficient building ofsimilar size would use. For example, an office building that is20,000 to 30,000 square feet should use in the range of 90,000 Btuper square foot per year.The firm uses three years worth of data, converting kilowatt-

hours and therms of gas into energy usage and determining howmuch energy it is using per square foot. Then McFarlane makes

small changes or what he likesto call tune ups to get thebuilding running as efficientas possible.It is very simple when

you know what you arelooking for, he says.Those who use Technical

Commissionings method arereducing energy bills by 30percent and also arecomfortable in the building,McFarlane notes. He also believes it is

important to be a leader inbuilding efficiency because ifnot, the competition will havea competitive edge. It benefits your company by bettering thefinancial statement.McFarlane is finding that customers are more educated. They

are finding out who the leaders are and developing relationships,he says. Most of our work is with state, local and federalgovernment. North Dakota energy is still quite low compared toother parts of the country. That will start going up and when itdoes the private sector will be jumping in. PB

Alan Van Ormer - [email protected]

Dave McFarlane, owner of TechnicalCommissioning Inc.


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EERC deputy associate director for research, MikeHolmes, says developing alternative liquid fuels willimprove energy security, cost and efficiency,

sustainability and develop the availability of a system thatcan coproduce electricity and liquid fuels.The military has been good at developing products

that private companies and consumers can benefit from,he states. This has the possibility for development ofmoderate-scale systems that allow distributed productionof power and fuels, utilizing coal and regional sources ofbiomass.The Connecticut Center for Advanced Technology Inc.

(CCAT) in East Hartford, Conn., awarded EERC a$906,000 contract to develop alternative liquid fuels. The

EERC will demonstrate gasification-based technologies forconverting nonpetroleum feedstocks, such as coal andbiomass, into liquid fuels.Tom Maloney, CCATs director of technology, research

and applications, says the military will benefit fromtechnologies that are commercially viable. He adds thereare at least two reasons CCAT and EERC are workingtogether on the project.We would rather use an existing facility rather than

duplicate facilities, he says. We also want to utilize thebest resources, like EERC, to save money. Thecollaboration among EERC, DoD (Department ofDefense), DOE (Department of Energy), CCAT, andproject partners like Arcadis and Avetec have allowed us to

The Energy & Environmental Research Center (EERC) in Grand Forks, N.D., isdeveloping alternative liquid fuels for military and commercial applications.

EERC developing alternativeliquid fuel for military

Energy & Environmental Research Center (EERC) research manager,Josh Stanislowski, stands in front of one of the EERC's uniquegasification systems used to create liquid fuels. (Photo courtesy of EERC)


leverage the existing EERC resources to thebenefit of everybody involved.According to a joint press release, the

EERC is supporting the CCAT team by usingthe EERCs transport reactor developmentunit and bench-scale entrained-flow gasifier(EFG) systems to evaluate the impact of fuelquality and operating conditions onsynthetic gas composition, gas clean-up,system performance, overall processefficiency and CO2 emissions.The EERC is a research, development,

demonstration and commercializationfacility recognized as one of the worldsleading developers of clean, more efficientenergy technologies, as well asenvironmental technologies to protect andclean air, water and soil.CCAT helps private and public entities to

apply innovative tools and practices toincrease efficiencies, improve workforcedevelopment and boost competitiveness.In January 2010, CCAT started looking at

different gasification techniques to assist themilitarys mandate on becoming moreenergy independent through the utilizationof sustainable energy and fuels. EERCs

previous gasification testing drew CCATsattention and a partnership was formedbetween the two entities to test the viabilityof wood and algae as biomass for jet fuel.Previous testing performed in the EERCs

gasification systems shows that a highly cleangas can be produced from coal and coal-biomass mixtures, which is essential for theproduction of quality liquid fuel, accordingto the joint press release.This will show the versatility of the

system for various biomass feedstocks to beutilized at different bases, Holmes says.Maloney envisions a plant system in

either the military or consumer sector. Thegoal is to have a commercial plant up andrunning by 2020, he says.The major challenge is gathering more

data and conducting more testing in order toprove the economic and technical viability ofmaking liquid fuels from coal and biomassmixtures. We still have a lot to learn,Maloney says.

Alan Van Ormer [email protected]

EERC deputy associate director forresearch, Mike Holmes

CCAT director of technology,research and applications, Tom Maloney


Scientists in a lab at North Dakota StateUniversitys Center for Nanoscale Science andEngineering (CNSE) in Fargo, N.D. are analyzingmaterials that could eventually play a role as aningredient in proppants used in oil exploration.

As part of a research agreement with theNorth Dakota Geological Survey (NDGS) inBismarck, N.D., the Materials Characterizationand Analysis Laboratory at NDSU CNSE isanalyzing 198 clay samples to determine theircomposition and suitability for use as acomponent in hydraulic fracturing. The claysshow early promise for potential use as a keymaterial known as ceramic proppant, used in thefracking process to help keep fractures open. Thefracking process is used to extract oil and naturalgas deep within the ground in places such as theWilliston Basin and the Bakken Oil ShaleFormation.

The MCAL lab at CNSE provides scientific

expertise and a unique set of analyticalcapabilities and instruments not typically foundin other settings. The lab has excellent analyticalequipment, a very good reputation for generatingaccurate results in a timely manner, and the labpersonnel are easy to work with, says Ed Murphy,state geologist for North Dakota.

Energy industry publications have referencedshortages of proppant. Results from the scientificstudy of the samples could shed light on whetherNorth Dakota could eventually supply some ofthe proppant materials needed for oil exploration.

The clay, known as kaolinite, is found in somehillsides in western North Dakota. Researchers atNDSU CNSE will use x-ray fluorescence todetermine which elements and how much ofthose elements are contained in samples from thevarious locations.

Prairie Business staff and wire reports

800.632.2277 www.barr.com 701.255.5460

Barrs 500 engineers, scientists, and technicalspecialists provide engineering andenvironmental consulting services to clientsin industries such as power, mining, refining,and manufacturing, as well as with governmentagencies, attorneys, and natural-resource-management organizations.

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NDSU CNSE lab analyzing claysamples

38 Prairie Business SD April 2012

Business Development

We cant sit here on an island. We continue to lookat the whole area, says Brookings mayor TimReed. One of the key selling points is that we are

doing something for the whole region. Dairy farms, smalltowns and communities in the region will all prosper.The cheese facility will be located just north of the Swiftel

Center in the Foster Industrial Park just off Interstate 29. It isestimated that 200 jobs will be created in each of two phasesfor a total $160 million investment. An estimated 12,000 to14,000 dairy cows will be needed to support the cheesefactory. The economic impact per dairy cow is $13,500 per

year. In addition, the cheese plant will produce 11,000 metrictons of cheese per year and will need at least 2 millionpounds of milk per day once the second phase is completed.Bel Brands hopes to break ground in July 2012 and start

manufacturing in 2013. Full production of the first phase isslated for July 1, 2014. Phase 2 will start depending on themarket.The cheese factory is the latest addition in a string of

companies locating in Brookings, representing the dairyindustry cluster. Other cluster components include SterlingTechnologies, DairyNet Inc., South Dakota State Universitys

Brookings attracts big businessWith the news that Chicago-based Bel Brands USA will be building a 170,000-square-foot facilityto process cheese, Brookings, S.D. has added another piece to its manufacturing portfolio.

Bel Brands USA will be building a 170,000-square-foot facility to process cheese on this piece ofbusiness property in Brookings. (Photo courtesy of Brookings Economic Development Commission)

Dairy Science Program, and several regional dairies.Growing value-added agricultural businesses are onecomponent of Brookings targeted industry developmentstrategy.Brookings employs the largest number of

manufacturing workers in South Dakota behind SiouxFalls. It consists of such stable manufacturing companies asDaktronics (nationally known producer of scoreboards),Larson Manufacturing (windows) and 3M (medicalequipment.)In addition, Brookings has three industrial parks

available for manufacturing companies. There is theTelkamp Industrial Park, which has 18 acres available.There is still 30 acres available in the Foster Industrial Park.The Svennes Industrial Park has a 14-acre parcel and a 25-acre parcel ready for a manufacturing company.Brookings economic strategy was developed six years

ago after a day-long visioning charrette. The charretteprocess involved more than 120 community residents in anexercise to discuss desired economic growth scenarios andcommunity design features, says Al Heuton, executivedirector of the Brookings Economic DevelopmentCorporation.Brookings strategy involved five broad areas animal

health, human health, green energy, agriculture and plantscience and high technology (advanced manufacturing).

.The strategy is closely aligned with research taking place atSDSU.A key challenge going forward is access to human

capital, Heuton says. SDSU is the largest provider of newhuman capital opportunities in the region.Six years ago, the community discussed economic

scenarios that included business development, recruitingand maintaining a workforce and housing. There was ahousing shortage, but since then the community has added1,400 housing units.Reed says because the groundwork had been laid earlier

the community was ready for a large manufacturingcompany like Bel Brands. However, the community wasnot looking at adding a large manufacturing company; themain emphasis has been to target recruiting with a primaryfocus on smaller manufacturers, and science andtechnology companies.South Dakota was contacted by a site selector through

the Sioux Falls Development Foundation in October 2010.A company was looking at the I-29 corridor fromBrookings to Sioux City, Iowa. The foundation contactedthe South Dakota Governors Office of EconomicDevelopment in Pierre, S.D. Brookings received theinformation in December 2010.Initially, we were eliminated, Heuton says. We

produced additional information that got us back in.Brookings was finally selected as the community Bel

Brands would build its third plant. The other two arelocated in Kentucky and Wisconsin.Heuton believes a big advantage was the May start-up

of a $9 million SDSU Dairy Science Research facility thatproduces milk, ice cream and cheese. In addition,Brookings County has the largest number of dairy cows inthe state. Then there was the site, which is located at twointerstate exchanges and has a visible location from theinterstate.What was critical for us was that it ties into our

comprehensive strategy, Heuton says. Brookings justshows extremely well. We have a lot to offer prospectivebusinesses and residents.The workforce was also critical and with SDSU in the

community, Heuton says Bel Brands will be able to add theworkers gradually.As part of its strategy, the BEDC continues to discuss

workforce needs with manufacturers and how to solveissues.At this point we arent trying to recruit larger

businesses, Heuton states. We wont be looking at thatunless the opportunity (like Bel Brands) comes along toadd a level of diversity. PB

Alan Van Ormer [email protected]

Mayor Tim Reed, Brookings, S.D.



South Dakota

SD Wins implementedA commitment to maintaining South Dakotas quality of life and growing thestates economy led Gov. Dennis Daugaard to implement development of SDWins the South Dakota Workforce Initiative.

The long-term program is bringing government, educationand business leaders together to capitalize on SouthDakotas potential for growth and development in many

different ways. Objectives of the program include developing andattracting a strong, educated workforce to help position the stateto compete in a global economy.Gov. Daugaards policy advisor, Kim Olson, says SD Wins

targets four categories that are key to the states success incontinued growth.In order to prepare youth for South Dakotas workplace, our

education system is helping students understand what their careeroptions are, Olson says. We are seeing profound shortages ofskilled workers so this program will assist both traditional studentsand non-traditional students in gaining access to the necessarytraining. We also see a growing demand for health care professionalsin rural areas. If quality healthcare isnt available in rural areas, it willbe more difficult to attract other work forces there. To meet thatneed, SD Wins promotes rural health care occupations.The fourth component addressed by SD Wins is new South

Dakota residents. Either former residents or those coming to livein the state for the first time will find a favorable atmosphere forliving and working there.These categories were developed after a year of visits and

discussions with businesses and community members acrossSouth Dakota, Olson says. Over 200 businesses provided inputabout what they and their community needed in order to growinto the future. Workforce was the common theme identifiedwhen those comments were analyzed.Students with science and math aptitudes will be in great

demand in every aspect of South Dakotas future workplace. Inaddition to rewarding science and math teachers in the state, SDWins utilizes the SD MyLife web portal to give students access tocareer information and facilitates hands-on career cluster campsin engineering, IT, skilled trades and other high-demand areas. Through SD Wins, well also broaden the K through 12

experience, giving more personalized education to those whoneed remediation or are ready for advanced placement or collegecourses, Olson says. There may be those in the workforce whorequire additional training to reach their career potential. FederalCommunity Block Grant dollars will be used to help provideadditional workforce training opportunities.SD Wins will add more capacity to the states medical and

physicians assistant education and expand recruitment andretention incentives to include more providers and more ruralcommunities. New South Dakotans will find a reinvigoratedDakota Roots program that partners with businesses to recruitnew pioneers, new South Dakotans to the state to take chronicallyunfilled, open positions in the workplace and in communities.Regular monitoring through housing surveys will assist

communities in development and marketing of housing optionsand investment opportunities.Governor Daugaard notes that bringing South Dakotas leaders

together is key to the states growth and development.The success of South Dakotas economy depends upon the

strength of our workforce, Daugaard says. Thats why wevelaunched South Dakota Wins, a workforce development programthat brings together leaders in business, education and policy tocapitalize on South Dakotas tremendous potential. The SouthDakota Wins

prairie business april 2012

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