prairie business september 2013
DESCRIPTION
Northern Plains Business ResourceTRANSCRIPT
www.prairiebizmag.com
September 2013
Developing the BakkenReal estate firms from around the world enter the marketpg. 24
ALSOTalk of the Town - MinotThe Magic City prospers post-flood, mid-boompg. 38
Saving History, Benefiting the FutureRedevelopment of historic Fergus Falls building expected to boost local economypg. 48
4 Prairie Business Magazine September 2013
-|INSIDE|SEPTEMBER 2013 VOL 14 ISSUE 9
FEATURES DEPARTMENTS6 Editor’s Note
BY KRIS BEVILL
Under development
8 Business Advice BY MATTHEW D. MOHR
Agriculture: Our enduring strength
10 FinanceBY ROB MONTGOMERY
Helping those riding the ND ag and oil boom
12 Research & Technology BY DWAINE CHAPEL
Research park encourages economic development
14 Economic Development BY HAROLD STANISLAWSKI
Being prepared for development is key to growth
16 Prairie News
20 Prairie People
22 Business DevelopmentRetail owner gets into franchise mode
38 Talk of the TownRe-imagining the Magic City
44 TransportationRe-imagining the Magic City
48 RedevelopmentBack from the brink
50 MarketingMarketing on the move
51 Business to Business
52 Energy
56 By the Numbers
Next MonthThe October issue of Prairie Business magazine will highlight the region's blossomingresearch and technology industry and the investors responsible for funding it. Theissue will also profile one of the region's most inspiring business women.
On the CoverMinot, N.D., has experienced apopulation boom over the pastfew years in relation to oil produc-tion in the nearby Bakken region.Main thoroughfares includingBroadway, shown here, nowbustle with traffic 24 hours a day.PHOTO: ROBERT LINDEE
24 REAL ESTATEDeveloping the BakkenReal estate opportunities in western NDattract investors from around the world
REGIONAL DEVELOPMENTRising Up to Meet DemandLarge developments throughout theregion illustrate overall growth
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6 Prairie Business Magazine September 2013 6www.prairiebizmag.com
|EDITOR’S NOTE|
Under development
To say that real estate development in the region is on the upswing would be an understatement.
Communities are breaking building permit records and new developments are springing up nearly
everywhere you turn in cities throughout the Dakotas and western Minnesota. And it’s not just a few
houses here or a new grocery store there. I spoke with many developers for this issue who are investing hundreds
of millions of dollars into massive projects including hotels, housing developments, retail strip malls and more.
Of course, the Bakken region is a hotspot for development right now as communities call for more every-
thing. In "Developing the Bakken," (page 24) we highlight methods developers are using to finance their laundry
list of projects, including overseas investments and Wall Street equity funds. Competition appears to be getting
stiffer for developers in the Bakken, but there is plenty of work to go around if building permit numbers are any
indication. Last year’s building permit valuations for Williston, Minot and Dickinson, N.D., totaled more than $1
billion and communities throughout the region continue to grow.
Communities outside of the Bakken are also growing rapidly. In Sioux Falls, S.D., the city is building a $117
million events center, scheduled to be complete next fall. The city issued 4,516 building permits through July,
making the first half of this year the fourth busiest on record. In Bemidji, Minn., approximately $50 million in
new development projects is slated for the town’s south shore. Grand Forks, Fargo and Bismarck, N.D., are also
experiencing major growth in terms of new housing projects, hotels and retail projects. There are simply too
many to list, but we’ve tried to zero in on the largest and most unique projects that are either currently under
construction or scheduled to begin construction within the next year. Check out our digital edition for details.
Finally, a quick reminder: We are accepting nominations for our annual 40 under 40 list until Oct. 1. Don’t
delay in submitting your nomination and be sure to check out our December issue for the results. Nomination
details are available at www.prairiebizmag.com/pages/40under40form.
KRIS [email protected]
To nominate someone, please go to prairiebizmag.comand click on the “40 under40
Submission” tab.
The deadline for submissions is Oct. 1.
Do you know a young professional who
deserves recognition?
7www.prairiebizmag.com
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northern plains business resource
BusinessMIKE JACOBS, PublisherRONA JOHNSON, Executive EditorKRIS BEVILL, EditorBETH BOHLMAN, Circulation ManagerKRIS WOLFF, Layout Design, Ad Design
Sales Director:JOHN FETSCH701.212.1026 [email protected]
Sales:BRAD BOYD - western ND/western SD800.641.0683 [email protected]
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Editor:KRIS BEVILL701.306.8561 [email protected]
Editorial Advisors:Dwaine Chapel, Executive Director, ResearchPark at South Dakota State University; BruceGjovig, Director, Center for Innovation; LisaGulland-Nelson, Vice President, Marketing andP.R., Greater Fargo Moorhead EDC; Tonya Joe(T.J.) Hansen, Assistant Professor of Economics,Minnesota State University Moorhead; DustyJohnson, Chief of Staff for South Dakota Gov.Dennis Daugaard’s office; Brekka Kramer,General Manager of Odney; Matthew Mohr,President/CEO, Dacotah Paper Company; NancyStraw, President, West Central Initiative
Prairie Business magazine is published monthlyby the Grand Forks Herald and ForumCommunications Company with offices at 3752nd Avenue North, Grand Forks, ND 58203.Qualifying subscriptions are available free ofcharge. Back issue quantities are limited andsubject to availability ($2/copy prepaid). Theopinions of writers featured in Prairie Business aretheir own. Unsolicited manuscripts, photo-graphs, artwork are encouraged but will not bereturned without a self-addressed, stampedenvelope.
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8 Prairie Business Magazine September 2013
It’s a competitive world. Train for it.
Williston State College Lake Region State CollegeNorth Dakota State College of Science Bismarck State College
Powered by:
www.trainnd.com
TrainND provides training for North Dakota business and industry, enhancing
their ability to compete globally.
|BUSINESS ADVICE|
Agriculture: Our enduring strengthBY MATTHEW D. MOHR
We are benefiting financially in North Dakota
from the extraction of carbon-based natural
resources, but our long-term regional strength
is agriculture and the many businesses here that support
our farmers and ranchers.
According to a recent North Dakota State Historical
Society publication, from 1890 to 1950 the number of
farms grew from 27,611 with about 7.6 million acres of
land to 65,410 farms with about 41.1 million acres. The
average number of acres per farm also increased signifi-
cantly during this time frame, from an average of 277.43
acres per farm in 1890 to 629.78 acres per farm in 1950.
This statistic supports the fact technological advancements
have been made in land production, and also provides an
indication why there are fewer people employed on farms
today than in the past.
Although farm employment may be down in num-
bers, the statistics do not necessarily reflect the many jobs
which have been created in the region for equipment man-
ufacturing, food processing and agribusiness research and
development.
From the giant manufacturers such as Case IH and
Bobcat to many successful smaller manufacturers such as
Willrich and Amity Technology, our region is dominated
by great agribusiness opportunities.
Employment in our region is strong due to the oil
boom and we have seen tremendous wealth flow into the
hands of many land and mineral rights owners the past few
years. Realistically, the mineral wealth has always been here,
we just discovered a way to turn the wealth to cash flow.
This tremendous cash flow has created a whole new eco-
nomic environment. The long-term investors and land
owners are using the newfound excess cash to improve
production techniques and buy more land.
Oil and coal extraction may be a permanent part of
our state’s economy, and we should be thankful for the
windfall we are receiving, but agriculture is our enduring
stronghold. PBMatthew D. Mohr
CEO, Dacotah Paper [email protected]
9www.prairiebizmag.com
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and click on the “40 under40Submission” tab.
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PrairiePrairie
n
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10 Prairie Business Magazine September 2013
|FINANCE|
Helping those riding the ND ag and oil boom BY ROB MONTGOMERY
North Dakota is in the national headlines on a
frequent basis due to its booming agricul-
ture and oil businesses. But there’s another
news headline that is very applicable to our state —
CNN’s recent rating of the best jobs in America.
Last year, CNN analyzed jobs in America and rated
financial advising as the the sixth best job in the U.S.
because of the great personal and financial rewards that
advisors receive by helping others achieve their dreams.
We aren’t talking about wheeling and dealing in the
stock market. This is helping people with real life needs
— like people in North Dakota who have found them-
selves in the enviable position of new wealth. But with
new wealth comes new responsibilities, including pro-
tecting those new dollars for the future when the winds
of economic change may shift yet again.
Let’s take a look at some of the stats. Last year
North Dakota once again blew every state out of the
water in economic growth. North Dakota’s gross
domestic product (GDP) rose 13.4 percent in 2012,
the fastest in the nation, according to a report released
by the U.S. commerce department’s Bureau of
Economic Analysis. Texas was a distant second, with
real GDP growth of 4.8 percent. The national average
was 2.5 percent.
Bruce Gjovig, founder of the Center for
Innovation at the University of North Dakota, said in a
recent Reuters article that the boom could be creating
up to 2,000 millionaires a year in North Dakota. The
same article points out that Mountrail County, posi-
tioned in the middle of North Dakota oil country, is
now among the 100 richest U.S. counties.
Sure, some of this new wealth is showing up in
new pick-up trucks, overseas vacations and second
homes in warmer climates. And enjoying what you
reap is indeed an important aspect of our new econo-
my. But helping people with the sometimes complicat-
ed tasks of protecting new wealth and continuing to
grow their life savings for their children and grandchil-
dren is what makes financial advising one of the best
jobs in America.
In fact, CNN lists work satisfaction as a key com-
ponent in making financial advising one of the best jobs
in America. According to CNN, “Advisers help clients
achieve financial success, which feels pretty warm and
fuzzy. And they can hang a shingle for themselves, work
as part of a larger firm or even work virtually if their
clients are comfortable with it.”
The salary and anticipated demand for financial
advisors are also worth noting. Median pay for financial
advisors across America is $90,000, according to CNN,
with top pay over $200,000. The U.S. Bureau of Labor
Statistics reports that the U.S. economy will need 66,400
more financial advisors by 2020.
As a native North Dakotan, I don’t believe there’s a
better place in the country to join the ranks of financial
advisors today than our growing state. As David Wald, a
financial advisor at Securian’s Bismarck, N.D., office
says, “I wanted to help people, and their two top needs
are health and money.”
So mothers, don’t let your sons become cowboys.
Here in North Dakota, your sons and daughters can
have one of the best jobs in America by becoming a
financial advisor. PB
Rob MontgomeryPresident, Securian Financial Advisors of North Dakota
12 Prairie Business Magazine September 2013
|RESEARCH & TECHNOLOGY|
Research park encourages economic developmentBY DWAINE CHAPEL
The Research Park at South Dakota State
University is a strong economic and real estate
development tool set up to encourage collabo-
ration between university and industry professionals.
The park lies adjacent to the SDSU campus and
encompasses 125 acres with complete infrastructural
amenities installed. It hosts the Innovation Center,
SDSU Seed Tech Lab and a 15,000-square-foot spec
building. The initial master plan is currently being
revisited to ensure that the economic-based park aligns
with the local economic development corporation.
The park provides a unique opportunity for entre-
preneurial growth in the Innovation Center. It sits
within a stone’s throw away from a dynamic and diverse
collection of forward-thinking researchers located on
the SDSU campus. The university provides faculty,
graduate students and undergraduate students a strong
and positive environment to commercialize technolog-
ical innovation.
The park’s board of directors has created a strong
partnership with Sioux Falls, S.D.-based Lloyd
Companies in setting up a 15,000-square-foot spec
building. Businesses interested in the building are pro-
vided the opportunity to have the space built out to
their own specifications.
The board has worked to ensure development by
creating relationships with capital investors. Businesses
interested in moving to the Research Park are provided
several options to get started. They may be provided low
interest funds to build as well as options to rent to own.
The research park has redesigned its website to
assist in locating the amenities associated with the
Innovation Center as well as building sites and available
building space within the park. The site can be viewed
at www.researchparkatsdstate.com.
Recruiting research to the area is one of the key
tasks for the research park staff. The marketing consists
of developing strong industry relationships with busi-
nesses that have the potential of creating collaborative
partnerships with SDSU. The faculty at SDSU plays a
strong role in this process. It is their expertise that is
showcased to industry. It is the unique knowledge base
that exists on campus that encourages businesses to
locate in the park.
Marketing the high quality of human capital
located at SDSU is an important component to the con-
tinued growth of the research park. There have already
been key successes, with researchers from around the
globe relocating into the park.
Continued economic and real estate development
of the park will provide sustainable growth for the com-
munity and region. The process will take 15 to 25 years
to complete. The research park provides a unique and
important tool for the local economic development
corporation and university to build into the future. PB
Dwaine ChapelExecutive director
Research Park at South Dakota State [email protected]
13www.prairiebizmag.com
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14 Prairie Business Magazine September 2013
|ECONOMIC DEVELOPMENT|
Being prepared for development is key to growthBY HAROLD STANISLAWSKI
Shovel-ready sites simplify the development
process and greatly reduce risk by eliminating
most of the unknowns from the site selection
decision and increasing the predictability of getting
the land developed, the building constructed, and the
business up and running. Fergus Falls and other
cities in Minnesota have gone through steps to certi-
fy our industrial parks as “Shovel Ready.” A process
has been developed by the Department of
Employment and Economic Development of
Minnesota (DEED) to accomplish the shovel-ready
certification for interested communities.
Benefits for community, site owners
Shovel-ready certification offers several benefits for
communities and site owners, but let’s begin with the
most important: Increased visibility in a crowded mar-
ketplace. Minnesota’s shovel-ready sites are heavily mar-
keted at national conferences and trade shows as well as
on the property search tool DEED provides for site
selectors. The result is improved visibility for both the
community and the community site. Certified shovel-
ready status is fast becoming a standard for sites being
marketed throughout Minnesota. Having certified sites
demonstrates that communities, including micropolitan
communities such as Fergus Falls, are progressive, busi-
ness-oriented and prepared for new development. For
communities serious about taking their efforts to attract
new commercial and industrial growth to a whole new
level, the Shovel-Ready Site Certification Program is the
natural next step. Shovel-ready sites are in growing
demand among companies and site selection consult-
ants, and they are an increasingly popular tool for com-
munities to attract new business and industry. It has
been our experience that the more ready a site is, the eas-
ier it is to market to a prospective buyer.
What you need: • Sites that have had all planning, zoning, surveys,
title work, environmental studies, soil analysis
and public infrastructure engineering
completed prior to putting the site up for sale.
• Site must be under the legal control of a
community or other third party.
• A description of the current owner.
• Documentation of title to the property. This is
a benefit to companies and site selectors
because it takes much of the time, expense,
unpredictability and risk out of development.
• Aerial photos noting site boundaries.
• The current price offering for the land.
• Infrastructure including sewer, water, gas,
electrical and telecommunications.
• Distances to major highways and interstates.
• Rail access.
• A list of any economic incentives zones the land
area qualifies for, such as New Market Tax
Credits, EB5 designation, TIF, SBA Hubzone,
and any state and federal economic
development legislation.
• Expansion possibilities.
• Current real estate taxes and special assessments
on all parcels that make up the site.
Because the sites are more likely to catch the eye of
corporate site selectors or site selection consultants,
they’re also a distinct competitive advantage for site
owners and communities. To learn more about how to
become a certified shovel ready site contact your state
economic development office.
Minnesota offers economic tools that also can
assist getting a project off the ground. It is best to con-
tact your local economic development officials to learn
what the options might be. Another important factor in
site selection is the service and relationship building that
is essential in making a deal happen and then helping
the owners and employees thrive in the community.
That requires teamwork and a desire to succeed. PB
Harold StanislawskiExecutive director,
Fergus Falls Economic Improvement [email protected]
15www.prairiebizmag.com
SMART DESIGN FOR SMART COMMUNITIES.
16 Prairie Business Magazine September 2013
Prairie News Industry News & Trends
Marco named Cisco partner of the year
Marco Inc. was named the 2013 Break
Away Partner of the Year from Cisco during
its annual partner summit held in June in
Boston. Marco is the only Minnesota head-
quartered company to win an award at this
year’s event. Marco received the award in
honor of its commitment to planned and
well-executed accelerated growth and for
its investment in several specializations.
Marco currently provides communications
services to customers in the Dakotas,
Minnesota, Wisconsin and Iowa.
Marco Inc. CEO Jeff Gau and Tony Mason, partner account manager for Cisco, with Marco’spartner of the year award. PHOTO: MARCO INC.
Sioux Falls electronics recyclergets environmental thumbs up
Bargain Bytes, a Sioux Falls, S.D.-based
company specializing in recycling and refurbish-
ing computer components, computer hardware
and other consumer electronics, has received e-
Stewards certification from the Basel Action
Network in recognition of its responsible and safe
recycling practices. In order to become certified,
the company demonstrated to third-party audi-
tors that its workers are protected from workplace
emissions, that toxic electronic waste is not dis-
posed of in landfills, that electronics are recycled
domestically rather than shipped to outside drop
points and that hidden private data is destroyed as
part of the recycling process. According to BAN,
Bargain Bytes is the first company in the Dakotas
to achieve e-Stewards certification.
SD promotes tourism destinations to Chinese
The South Dakota Department of Tourism
recently hosted its first Chinese familiarization
tour to showcase the state as a tourism destina-
tion for Chinese travelers. Twelve Chinese tour
group operators spent four days in the state visit-
ing Rapid City, Badlands National Park, Sturgis,
Deadwood, Mount Rushmore National
Memorial, Crazy Horse Memorial and Custer
State Park. Maureen Droz, international and
domestic trade sales manager, says the tour has
already resulted in booked trips from Chinese
tour operators.
Skincare, beauty web retailerraises $1 million
Glisten, a Fargo-based high-end skincare
and beauty products web retailer, recently raised
$1 million in seed capital investment from a
number of angel investors to build the company’s
inventory and expand its marketing efforts. A
brick-and-mortar location is also in the works.
Company founder Tommy Leikas says the seed
capital raised is the company’s first step in its goal
to become a global leader in the beauty and cos-
metics business.
Sanford recognized for IT useSanford Health facilities in Aberdeen and
Sioux Falls, S.D., and Fargo, N.D., have received
“Most Wired” designations from Hospitals &
Health Networks magazine based on survey infor-
mation and a benchmarking study that measures
the level of information technology (IT) adoption
in U.S. hospitals and health systems. To date,
Sanford has installed its electronic medical
records (EMR) system in 30 of its 35 hospitals.
The organization plans to install the EMR system
at its remaining five hospitals within the next year.
Cirrus Aircraft makes progresson personal jet program
Duluth, Minn.-based Cirrus Aircraft
announced it has made significant progress
toward certification of its Vision SF50 personal
jet program. The company has acquired manu-
facturing equipment to build the new airplane
and will build conforming aircraft for further
certification testing while continuing to pre-
pare its Duluth headquarters and Grand
Forks, N.D., manufacturing facility for pro-
duction. The first delivery of the new product
is scheduled for 2015.
Lawrence & Schiller, SEPConnect partner
Sioux Falls, S.D.-based Lawrence & Schiller
TeleServices has partnered with California-based
SEP Connect, a world leader in search engine
placement, to sell search engine placement serv-
ices to businesses. Lawrence & Schiller will hire
new sales people dedicated to the project while
SEP Connect will provide training and back-end
support services.
17www.prairiebizmag.com
Grand Forks airport, FedEx ink 10-year lease
The Grand Forks (N.D.) Regional Airport
Authority has signed a 10-year lease agreement
with Federal Express Corp. (FedEx) for its
North Dakota sort facility. FedEx flies two
Boeing 757s daily into Grand Forks and sorts
cargo into smaller aircraft and trucks for distri-
bution throughout the state. The relationship
between the airport authority and FedEx dates
back to 1984.
As part of the lease agreement, the airport
authority will complete a 3,000-square-foot
addition and an $800,000 upgrade to the sorting
facility. The addition is expected to be complete
by early October.
AE2S receives GIS awardAE2S (Advanced Engineering and
Environmental Services Inc.) received the special
achievement in GIS (Geographic Information
System) award during the 2013 Environmental
Sciences Research Institute International User
Conference held July 10 in San Diego. The firm’s
work on the North Dakota Western Area Supply
Project played a significant role in its earning the
award, according to Roger Grimsley, AE2S geo-
matics manager. “We work with a number of
municipalities and regional water systems in the
heart of oil country in western North Dakota,
and we leverage GIS to help the region quickly
respond to rapid growth with ensuring that
future needs are also considered,” he says.
Medgene Labs gets grant for cancer research
Brookings, S.D.-based Medgene Labs has
received a grant from the National Institutes of
Health for research related to breast cancer. The
product development company will receive more
than $135,000 in Small Business Innovation
Research grant funding for the initial phase of a
project aimed at developing methods to deliver
treatments to stimulate the regeneration of the
lymphatic system in breast cancer survivors. The
company expects the initial award to lead to
additional funding for more than $1 million to
support the project’s second phase.
Medgene is a portfolio company of
Innovation Partners, a venture capital firm with
offices in Brookings and Sioux Falls, S.D.
Edgewood acquires 4 SD senior living communities
Grand Forks, N.D.-based Edgewood Group
LLC has expanded its South Dakota operations
to include assisted living communities in
Mitchell, Sioux Falls and Watertown, and an
independent living community in Watertown.
Edgewood Real Estate Investment Trust, a North
Dakota unincorporated business trust created
for the purpose of owning assisted living and
memory care communities acquired the proper-
ties and entered into a long-term agreement to
lease the facilities to Edgewood Group. The trust
currently owns six assisted living communities in
Minnesota, South Dakota and Idaho, and is in
the process of purchasing more, which it will also
lease to Edgewood Group.
Waste Management acquires2 ND energy companies
Waste Management Inc. announced it has
acquired Williston, N.D.-based Summit Energy
Services and Liquid Logistics. The company says
the acquisitions will enhance its environmental
service offerings to oil and gas industry cus-
tomers working in the Bakken region.
The acquisition includes 140 employees
from the two companies. The same private
owner held both companies. Other terms of the
deal were not disclosed.
Exports up in ND metro areas
Export data from the U.S.
Department of Commerce’s
International Trade Administration
shows a substantial increase in merchan-
dise exports from North Dakota’s three
metro areas from 2011 to 2012. The
Fargo-Moorhead area exported a record
$786 million in merchandise in 2012, up
8 percent from the previous year. Grand
Forks-East Grand Forks exports totaled
$225 million, up 28 percent from 2011.
Bismarck’s merchandise exports totaled
$64 million in 2012, up 45 percent from
the previous year.
Key export categories included
machinery and crops in the Fargo and
Grand Forks areas and chemicals and
machinery in Bismarck.A group of agricultural machinery buyers from Africa tour a Titan Machinery dealership nearMoorhead, Minn. The tractor shown is manufactured in Fargo at Case New Holland. PHOTO: HEATHER RANCK, U.S. COMMERCIAL SERVICE
|PRAIRIE NEWS|
18 Prairie Business Magazine September 2013
SD Community Foundationgives $15K for rural housing
The South Dakota Community
Foundation, a nonprofit organization focused
on investing in programs that promote the
social and economic well-being of the people of
South Dakota, awarded a $15,000 grant to
Dakota Resources on behalf of the Rural
Housing Collaborative. The RHC consists of
representatives from 26 organizations and exists
to address the challenges of rural housing.
The grant received from the South Dakota
Community Foundation will support the
Home Address project. The project was
launched in 2012 with a purpose of assisting
rural communities in developing housing
plans. Selected sites include Miller, Wagner,
Faulk County and Martin/LaCreek District
Pine Ridge Reservation.
ND Tourism offers $750K grant for infrastructure development
North Dakota Tourism is offering a grant
to one or more tourism attractions that can
draw more visitors to the state. Funds can be
used for building new attractions, major
expansions, offering a new experience or sup-
porting services for visitors.
The program is a matching grant program,
meaning that sponsors must provide one dollar
for every dollar of grant money requested. The
deadline for applications is Oct. 18. More details
are available at NDtourism.com.
Corporate Technologiesamong Top 100 cloud services providers
Nine Lives Media, a division of Penton, has
ranked Corporate Technologies LLC among the
world’s Top 100 Cloud Service Providers.
“We are excited to be named to Talkin’
Cloud’s list of top cloud service providers again
this year,” CEO Jim Griffith says. “As one of the
largest managed service providers in the country,
we continue to look for affordable and scalable
technology solutions for our small- and medi-
um-sized clients and utilizing cloud services was
a perfect fit. We plan to grow our cloud service
practice and look forward to supporting the
evolving technology needs of our customers.”
Border States Electric acquires UtiliCor
Border States Electric has agreed to pur-
chase Tennessee-based The UtiliCor Corp., a
sales and services company for electrical and
communications products serving the Tennessee
Valley Authority, Arkansas and part of Missouri.
BSE CEO Tammy Miller says the acquisition
strengthens BSE’s position in the utility market
and complements its Harris Electric division in
Tennessee.
Aldevron part of 1.3 millioneuro research project
Biotechnology firm Aldevron is participat-
ing in a three-year joint research project in
Germany to generate synthetic blood vessel
bypasses for coronary artery disease patients and
to improve treatment options for artery block-
ages. The total cost of the project is expected to be
about 1.3 million euros.
Aldevron is headquartered in Fargo. The
company's Frieburg, Germany, office will partic-
ipate in the project, which is being partially fund-
ed by the German state.
Business consultancy firm relocates
Mojo, a Fargo-based brand consultancy
firm recently relocated to a new location in
downtown Fargo. Founded in 2007 by Mark
Olson, a former brand director at Great Plains
Software and Microsoft Business Solutions,
Mojo specializes in helping businesses develop
brand strategies that simplify and clarify their
products and services.
Representatives of the South Dakota Community Foundation present a $15,000 contribution to DakotaResources on behalf of the Rural Housing Collaborative to support the Home Address Program. PHOTO: SOUTH DAKOTA COMMUNITY FOUNDATION
|PRAIRIE NEWS|
19www.prairiebizmag.com
Every child deserves a chance to play baseball
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20 Prairie Business Magazine September 2013
|PRAIRIE PEOPLE|
Starion Financial hires Neurohras business banking officer
Todd Neurohr has joined Starion Financial as
a business banking officer. He is located at the
bank’s Mandan, N.D., location.
In his role, Neurohr maintains and develops
existing loan portfolios and works to build and
strengthen customer relationships. He also works
to develop new loans, promoting and selling addi-
tional bank products and services.
Neurohr has 20 years of agricultural lending
experience, most recently as a farm loan manager.
Bremer Bank names Petersonpresident, CEO of Grand Forkscharter
Tammy Peterson has been promoted to presi-
dent and CEO of Bremer Bank’s Grand Forks char-
ter. Peterson has spent her entire career at Bremer
Bank, most recently as a senior vice president and
senior business banking manager in Grand Forks.
She will be responsible for bank locations in Grand
Forks, Grafton, Larimore, Fordville and Gilby, N.D.,
and Fisher, Crookston and Warren, Minn.
Peterson joined Bremer in 1996 as a credit
analyst. Three years later, she was promoted to a
business banker, taking on expanded supervisory
and leadership responsibilities over the next nine
years. In 2007, she developed and began managing
the Small Business Administration department for
North Dakota. A year later, she was promoted to
senior vice president and business banking manag-
er for the Grand Forks Charter. Peterson has a
bachelor’s degree in accounting from the University
of North Dakota.
Ackerland joins Western State Bank
Matt Ackerland recently joined Western State
Bank as vice president of retail banking. His duties
include directing and supervising the retail bank-
ing efforts in the bank’s seven locations.
Ackerland has over 12 years of experience
in the banking industry. Prior to joining
Western, he served as a district manager at Wells
Fargo. He currently resides in Fargo with his
wife and two children.
Petty named dean of enrollment at USD
The University of South Dakota has hired
Mark Petty as dean of enrollment. Petty, a native of
Sioux City, Iowa, will manage enrollment services
overseeing the undergraduate admissions operation.
Petty previously served as associate vice
president and dean for admission at Iowa
Wesleyan College. His accomplishments there
include enrolling the largest freshman class in
three decades for two consecutive years, increas-
ing the average student profile of the entering
class and implementing a new scholarship pro-
gram as the institution changed athletic affilia-
tions. Petty was also an active member of the Iowa
Association for College Admission Counseling
where he most recently served as president.
Additionally, he was a member of the Iowa ACT
Council, planning chair for Iowa Private College
Week, president of the Mount Pleasant Area
Chamber Alliance and the 2010 Iowa ACAC
Admissions Professional of the Year.
Todd Neurohr
Tammy Peterson
Matt Ackerland
Rammie Olson
Mark Petty
Spectrum Aeromed hires project coordinator, promotes 3Rammie Olson has joined Spectrum Aeromed in a newly created position as project coordinator. In this
role, Olson will guide projects from the initial sale to delivery and will serve as the primary liaison to customers.
She will coordinate the activities of all collaborators on air medical equipment projects from sales, design, and
product development.
Former project manager Michael Gallagher has been promoted to director of production. Gallagher’s new
role in the company calls for him to oversee the production, quality assurance, project management and purchas-
ing departments.
Boyd Johnson has been promoted from quality assurance manager to production and quality assurance
manager. Johnson now supervises the welding and fabrication department in addition to his responsibilities as
quality assurance manager.
Laurie Lundstrom was promoted from assistant office manager/AS9100 coordinator to assistant office man-
ager/AS9100 management representative. She will continue her duties as assistant office manager and also man-
age the implementation and maintenance of Spectrum Aeromed’s quality management system, ensuring it com-
plies with the requirements of AS9100 Rev C and ISO 9001:2008. She will also serve as the lead internal auditor
for the program.
21www.prairiebizmag.com
|PRAIRIE PEOPLE|
Hellerstein, McCracken electedto MDU Resources board
Mark Hellerstein and William McCracken
have been elected to the MDU Resources Group
Inc. board of directors.
Hellerstein is the retired president, CEO and
board chairman of St. Mary Land & Exploration Co.
(now SM Energy Co.). He led St. Mary's growth
from an $80 million private company to a $2.5 bil-
lion public company listed on the NYSE. His 17-year
career at the company also included positions as
executive vice president and chief financial officer.
McCracken is the retired CEO and board
chairman of CA Technologies, one of the world's
largest information technology management soft-
ware companies. He currently serves as an executive
adviser to the company.
SDSMT professor to leadmathematicalassociation section
Kyle Riley, head and
associate professor of the
Department of Mathematics
& Computer Science at the
South Dakota School of
Mines & Technology, has been named chair elect of
the Rocky Mountain Section of the Mathematical
Association of America, the organization’s highest
ranking officer. Beginning in April 2014, Riley will
serve a two-year term on the executive committee,
managing finances of the regional section, planning
annual conferences and spearheading the effort to
establish future conferences. The MAA is the largest
professional society for mathematicians in North
America. It supports a professional development
program and fosters mathematical excellence at the
high school, undergraduate, graduate and profes-
sional levels.
Kyle Riley
Mark Hellerstein William McCracken
22 Prairie Business Magazine September 2013
|BUSINESS DEVELOPMENT|
Ciara Stockland, founder of retail outlet store MODE, recently franchised the concept and plans to open 75 locations within the next decade. PHOTO: STUDIO A PHOTOGRAPHY
23www.prairiebizmag.com
|BUSINESS DEVELOPMENT|
Ciara Stockland had been running her first retail
boutique, a Fargo-based maternity clothing store
called Mama Mia, for about a year when her hus-
band presented her with a challenge and opportunity: A
freight company he worked for had amassed a quantity
of random merchandise in damaged shipping containers
and someone needed to sell it. Could she do it?
Stockland agreed to give it a try and turned the vacant
retail space next to Mama Mia into a temporary store to
sell the goods at liquidated prices. She received such pos-
itive responses from customers that she set her sights on
growing the concept into something bigger, combining
outlet store and retail boutique concepts to bring a
sophisticated atmosphere to the low-price, liquidated
merchandise model.
The result, MODE, opened in Fargo in April 2008. The
concept and customer list continually grew from the start,
leading Stockland to launch a wholesale division in 2009
dedicated to brokering goods between large suppliers and
buyers throughout the country and a plan to expand the
store’s reach to include other communities. Not willing to
drive the long distances between store locations in other
parts of the region, Stockland determined that franchising
the MODE concept would be worth the expense. “We felt
like franchising was the best way to [expand] because we
would be opening stores in communities where women
know their customer,” she says.
MODE’s first franchise location opened in 2011 in
Bismarck, N.D., followed by another in Grand Forks, N.D.
Earlier this year, the franchise’s first South Dakota location
opened in Sioux Falls. Stockland’s near-term plans are to
continue expanding the franchise to other communities in
the Dakotas, specifically Minot, N.D., and Rapid City, S.D.,
and in Minnesota. The company’s ideal community ranges
in population from 60,000 to 200,000 and has a significant
number of female residents, preferably between the ages of
35 and 40. “We have demographics that we want to hit, so
we don’t want to go into communities that are too small to
support it,” Stockland says. “Minnesota has a lot of potential
for quite a few stores.”
Long term, Stockland’s goal is to open 75 stores with-
in the next 10 years in locations stretching from Winnipeg,
Manitoba, to Laredo, Texas. “We feel that from here to Texas,
that Midwestern person loves value,” she says. “We want to
hit the whole Midwestern corridor all the way down.”
So far, all of MODE’s franchisees have been customers
of the store. Stockland plans to continue seeking owner-
operators as future franchisees, at least for the short term,
because she believes they will spend time in the store and get
to know their customers best. On average, a MODE fran-
chisee can expect to invest about $120,000 for a 1,500-
square-foot store and will be responsible for paying a 6 per-
cent royalty fee on the store’s gross sales.
Stockland declined to provide revenue data from the
Fargo location, but says the company has grown substantial-
ly since 2010. She backs it up by pointing out the increase in
sales of the company’s main item — $40 designer jeans. In
2010, the Fargo location sold 1,000 pairs of $40 jeans. This
year, Stockland expects MODE’s four stores will sell more than
10,000 pairs.
While she’s confident in the brand and franchise con-
cept, Stockland admits that launching a national retail
franchise concept from Fargo can make spreading aware-
ness of the opportunity a challenge. She combats that by
attending conferences, brainstorming with customers and
vendors and networking everywhere she goes. “We travel a
lot for the product we buy and everywhere we go we talk
about MODE,” she says. “We’re ready to sell them and
make it happen.” PBKris Bevill
Editor, Prairie Business701-306-8561, [email protected]
Retail owner gets intofranchise modeFargo-based outlet store sets goal of 75 stores in 10 yearsBY KRIS BEVILL
24 Prairie Business Magazine September 2013
|REAL ESTATE|
North Dakota Developments LLC is raising funds in Australia to build workforce lodging near Watford City, N.D. IMAGE: NORTH DAKOTA DEVELOPMENTS LLC
25www.prairiebizmag.com
|REAL ESTATE|
Developing the Bakken Real estate opportunities in western ND attract investors from around the worldBY KRIS BEVILL
If you’re a real estate developer and you’re not consider-
ing options in western North Dakota, you’re missing
out on a $1 billion construction market, says Jeff
Zarling, president of Williston, N.D.-based Dawa Solutions
Group. Building permit valuations last year in the Bakken’s
three hub communities — Williston, Minot and Dickinson
— totaled more than $1 billion with millions of dollars in
additional activity taking place in other oil patch commu-
nities like Watford City, Stanley and Tioga. And Zarling
says the pace of development shows no signs of slowing
down soon. Dawa Solutions Group will host a conference
later this month in Bismarck focused on providing the
most recent Bakken-related development information to
real estate developers, investors, construction companies
and service providers.
“It has taken a long time to prove to developers and
investors that this energy development is different than the
two previous oil development cycles in North Dakota,”
Zarling says. “We have come a long way since the first hotel
and apartment projects cracked the nut in 2008.”
International InterestThe list of developers working in the Williston Basin has
indeed become increasingly diverse in the past 12 to 24
months as investors and developers who initially hesitated to
enter the market have come to view it as a long-term play.
Regional developers who were among the first to recognize
26 Prairie Business Magazine September 2013
|REAL ESTATE|
western North Dakota’s emerging market continue to be
active in the area, but they are now sharing the space with
Wall Street investors and international firms representing
investors from Australia to Singapore. Among them is North
Dakota Developments LLC, a subsidiary of UK-based real
estate investment firm Property Horizons.
“We’re looking to capitalize, as everyone is, on the huge
boom that is happening in western North Dakota,” says
North Dakota Developments CEO Robert Gavin.
Property Horizons began exploring commercial and
residential real estate investment opportunities in the Bakken
about two years ago, according to Gavin. After concluding
that the situation was not a typical boom-bust oil cycle, the
company formed North Dakota Developments and spent
about a year building relationships before moving forward
with project plans.
The company is currently at various stages of develop-
ment on three projects with a combined estimated cost of
about $250 million. A workforce lodging project just outside
of Watford City known as the Great American Lodge has
been permitted for 204 beds and is expected to be fully oper-
ational this month. Gavin says the company has already sub-
mitted an application to add another 240 beds and could
potentially expand to 1,000 beds in the future if demand war-
rants the increase and regulators approve. At 1,000 beds, the
property represents a $70 million investment, which will be
funded by overseas investors. Earlier this year, North Dakota
Developments successfully raised between $4 million and $5
million over the course of five weeks in Australia to help fund
the project and the company expects to gather up to $40 mil-
lion in the coming year. Gavin says Australia has been a suc-
cessful fundraising market for the company’s North Dakota
projects because that country is also experiencing a commod-
ity boom by way of iron ore, so investors understand the sit-
uation they are being asked to participate in. “When they hear
about a boom happening because of the availability of anoth-
er commodity such as oil it’s very easily recognizable to them
because that’s what they are experiencing in their own coun-
try,” he says.
North Dakota Developments has also tapped investors
in Singapore for its Bakken projects. Gavin says that market
has produced slightly more investment dollars than Australia
to date, but he expects Australia’s significantly larger popula-
tion to offer greater long-term fundraising potential.
Other projects in the works at North Dakota
Developments include a $75 million, 228-acre residential
development north of Williston known as Horizon Ridge.
The development is expected to consist of high-end, single-
family homes ranging in price from $300,000 to $400,000. In
late July, Gavin said the company was finalizing a marketing
plan for the development and expected to finance the project
through local banks, which he says are quite comfortable
financing residential properties.
Additionally, the company is awaiting tribal approval to
move forward on a $100 million, 40-acre mixed use develop-
ment in New Town which is expected to include housing and
a travel center.
After two years of boots-on-the-ground involvement in
the Bakken, Gavin says he’s noticed that there are good and
bad aspects of being a foreign business in the area. “The bad
thing is you really need to put a lot of time and effort into
building up relationships and trust,” he says. “It’s not like
London or New York City where you can bring a big suitcase
of money and do business. It’s about trust … and it takes a lot
of time to be trusted. But the great thing about working with
Midwesterners is once you’ve built that trust and credibility
up, they’re great people to work with. By doing the ground-
work we’re now progressing things incredibly fast and mak-
ing huge progress.”
Gavin agrees that many developers and investors doubt
the reality of the Bakken’s real estate climate until they make
a site visit and see it for themselves. His company has estab-
lished a Williston office and regularly entertains clients to
show them the opportunities available for investment. He
believes the root of the misunderstanding is as simple as the
terminology used most frequently to describe the production
ramp up. “The problem is that when people hear the word
‘boom’ they also think ‘bust,’” he says. That notion should be
discredited, he says, adding that his firm is fully committed
to the Bakken’s development. “We wouldn’t put all our
resources from three offices across three continents into
North Dakota if we didn’t think this was a long-term proj-
ect that we’ve committed to,” he says. “We fully intend to be
in western North Dakota for the next 20 to 30 years.”
Enter Wall StreetCompared to international firms, regional developers
may have cultural and technical advantages when dealing
with the people and climate in western North Dakota, but
they also face challenges in the unique business environment.
Paul Hegg, president and CEO of Sioux Falls, S.D.-based real
27www.prairiebizmag.com
|REAL ESTATE|
estate investment and development firm Hegg Companies,
says his firm began exploring the Bakken’s development
opportunities about two years ago and soon learned that the
fast pace of business is unlike anywhere else. “You don’t get
60 to 90 days to look at an opportunity. You have a week,” he
says. “You have to react fast and if you don’t, you lose out on
the deal.”
Land prices can change by the day, sometimes by the
minute, he says, so companies need to be nimble and able to
lock in prices quickly. Construction costs are also higher in
the Bakken compared to other areas in the region.
Additionally, Hegg cautions that acquiring financing for
Bakken projects is not always easy, and it is not likely to be
had at normal market condition terms. He says that while it’s
Paul Hegg, president and CEO of Hegg Companies, has formed a private equity fund to attract Wall Street investors toBakken region projects. PHOTO: HEGG COMPANIES
28 Prairie Business Magazine September 2013
|REAL ESTATE|
Scott Johnson, a developer at Oppidan Investment Co., stands in front of the company’s Watford Plaza development inWatford City, N.D. PHOTO: OPPIDAN INVESTMENT CO.
not uncommon to finance 75 to 80 percent of a project in
South Dakota, the current standard in the Bakken is 50 to 60
percent loan to cost. “That in itself is a sweeping change from
what people expect,” he says. “It requires more equity, or what
we’ve done, which is bring in Wall Street money.”
Hegg formed a private equity fund known as Bakken
Select earlier this year with the specific intent of educating
Wall Street investors on real estate opportunities in western
North Dakota and raising money to finance its development
projects. The structure of the fund is rather unique in the
Bakken market, according to Hegg, in that it creates a stop-
gap between the first position mortgage and equity, resulting
in an equity commitment that more closely resembles normal
market conditions. Hegg says investors have been attracted to
the company’s local knowledge and expertise, but also to the
fact that the company has scaled its projects up to a size wor-
thy of investment. “They aren’t really going to look at any-
thing that isn’t north of $100 million in size, so we scaled it
north of that number which attracted them to us and allowed
us to create that unique financing structure,” he says. “We
think we’re one of the few that has come to the market with
that concept.”
While Hegg Companies remains active in markets in
Sioux Falls and elsewhere throughout the region, most of the
company’s focus is now on the Bakken. The company is cur-
rently developing several projects with a combined estimated
cost of $100 million. Among them is a $42 million, 239-unit
high-end apartment complex in Minot known as North
Highland Apartments. Construction began in August and the
entire complex is expected to be complete next summer. The
company is also working on an office space in Williston,
workforce housing in Watford City and storage facilities
throughout the region.
Local FundingJoe Oppidan, president of Minneapolis-based Oppidan
Investment Co., says his company does not find financing to
be particularly difficult in the Bakken region and he takes
pride in the fact that the firm uses internal equity and com-
munity and regional banks to finance its projects. “This is
rural America in an emerging growth industry in a state that
is multi-dimensional,” he says. “We have to work with our
lenders and price appropriately [and] the lenders are there.
The smaller banks, the regional banks that have got to work
for loans, understand it.”
Oppidan Investment Co. also became involved in the
(continued on page 30)
Launching this fall to provide in-depth executive leadership
development to business owners, emerging and mid-level
leaders, and executives.
01| 02|
BUSINESS OWNERSSOLUTION SERIES
“Grow Your Business…And Get Yourself Out of the Way”
September 27th from 7:30am to 4:00pm
Join other business owners to explore the hidden agents and
leadership challenges aEecting your company’s growth and health.
Learn about the stages of business growth and how sustainable
leadership can bring your business to the next level.
LEADERSHIP EXCELLENCEADVANCEMENT PROGRAM
The 7 Mindsets at Work”
October 3rd from 11:30am to 4:30pm
Scott Shickler, co-author of The 7 Mindsets,
and local leaders present this session on
how your mindset impacts your happiness
and your success.
Register and find more information on this new program at: www.ndsu.edu/dce
30 Prairie Business Magazine September 2013
Conference to Focus on $1 Billion Bakken Market
In late September, developers, investors, builders and service providerswill come together in Bismarck, N.D., to attend the Bakken ConstructionSummit. The two-day conference, hosted by Williston, N.D.-based DawaSolutions Group, will be held Sept. 25-26 at the Bismarck Civic Center inBismarck, N.D., with the goal of providing attendees the opportunity toexplore construction and development opportunities throughout theWilliston Basin’s $1 billion market. Kathy Neset of Neset Consulting willdeliver a keynote presentation on the current industry conditions in theBakken region and the future direction of energy production in thearea. Nancy Hodur and Dean Bangsund, researchers at North DakotaState University, will present a review of economic studies conductedon employment, housing and population projections throughout theWilliston Basin. Additionally, city officials from Bakken communities willpresent their latest plans for development. Breakout sessions will covera variety of topics, including the hotel market, finance, housing andworkforce retention.
For registration and detailed agenda information, visitBakkenConstructionSummit.com.
Bakken region about two years ago. It has made rapid
progress since, completing apartment buildings in Watford
City and Williston and welcoming its first tenants to a
120,000-square-foot commercial development in Watford
City and a 180,000-square-foot commercial development in
Minot. The company is also at various stages of development
on large commercial projects in Tioga, Stanley and Dickinson
and a residential development in New Town. All told,
Oppidan estimates the company’s financial stake in the
Bakken region to total more than $150 million.
“We’re going vertical,” he says. “This is not speculative
development. We’re truly in the game to elevate the lifestyle to
assist the livability of these communities in whatever fashion
they will allow and are requesting.”
While the Bakken region is not Oppidan Investment
Co.’s main focus, Oppidan says he is passionate about devel-
oping that region because he hails from a small Minnesota
Iron Range town and understands the mining economy. “I
just like making projects happen in these smaller communi-
ties,” he says. “We just need to educate people that this oil
thing is going to go for a long time and give them the oppor-
tunity to see it first-hand.” PBKris Bevill
Editor, Prairie Business701-306-8561, [email protected]
|REAL ESTATE|
(continued from page 28)
31www.prairiebizmag.com
32 Prairie Business Magazine September 2013
|REGIONAL DEVELOPMENT|
It is no secret that the Bakken region of North
Dakota is a hotbed of real estate development
activity. But communities throughout the
Dakotas and western Minnesota are experienc-
ing their own building booms, thanks to a vari-
ety of reasons including prosperous agriculture
economies and growing populations. Included
below is an overview of some of the most inter-
esting projects taking place in the area.
Sioux FallsAccording to Ron Bell, chief building official for
the city of Sioux Falls, S.D., building permits issued
from January through July this year totaled 4,516 —
Rising Up to Meet Demand Large developments throughout the region illustrate overall growthBY KRIS BEVILL
Construction workers are a common sight along VeteransBoulevard in West Fargo, N.D., as new businesses arebuilt to support the growing community. PHOTO: KRIS BEVILL, PRAIRIE BUSINESS MAGAZINE
33www.prairiebizmag.com
|REGIONAL DEVELOPMENT|
the fourth busiest year in the city’s history in terms of permit num-
bers. The city experienced an “incredible surge in building activity”
in the early part of the year but began to slow down in June, which
Bell says is understandable given the high rate of activity early in the
year. Nearly 90 percent of the building permits issued so far this year
has been for residential projects, which is typical for the city.
After putting the project on hold for several years, Universal
Properties LLC recently began work on an 80-acre residential and
business development in northwest Sioux Falls dubbed University
Hills Village. The company had hoped to begin construction in
2009, but tabled it due to the global recession. “We took it off the
table with the slowing of the economy,” says Danielle Merrow, bro-
ker and owner of Dynamic Real Estate LLC. “For the past year, we’ve
been ramping up momentum on the project. There’s a huge influx
of interest in the northwest. We’re really excited to be part of the
growth of the area.”
The first apartment building is scheduled to be complete next
summer and will include 122 units. The entire project could include
up to 10 apartment buildings, housing 1,500 people, when complete
sometime within the next decade, according to the company. Single-
family and multi-family homes are also planned as well as restau-
rants, shops and office spaces.
The city of Sioux Falls is also undertaking a massive develop-
ment project and is nearing structural completion of the Denny
Sanford PREMIER Center, also known as the Sioux Falls Events
Center. When complete, the $117 million project will provide a
state-of-the art facility for sporting events, concerts, conventions and
other large gatherings. The center will be built to accommodate
The $117 million Sioux Falls Events Center is scheduled to be complete next fall. PHOTO: KOCH HAZARD
34 Prairie Business Magazine September 2013
|REGIONAL DEVELOPMENT|
12,000 people and will add 64,000 square feet to the existing facili-
ties. The center is expected to be complete next fall.
Bemidji AreaDave Hengel, executive director of Greater Bemidji, the eco-
nomic development agency for the Bemidji, Minn., area, says the city
of Bemidji is experiencing a major surge in development activity
along the city’s south shore near the Sanford Events Center. More
than $50 million will be invested in new developments in that area
over the next 12 months and will include two hotels, a restaurant
and a 40-unit townhome community, according to Hengel.
North of Bemidji, work is nearing completion on a $1.8 mil-
lion clinic in Bagley, Minn., the result of a collaborative effort among
Sanford Health, Greater Bemidji, the city of Bagley, TEAM
Industries, the Headwaters Regional Development Commission,
First National Bank Bemidji, Deerwood Bank, Riverwood Bank and
Security Bank USA. Greater Bemidji will own the building and lease
it to Sanford Health. TEAM Industries, an engineering and manu-
facturing firm with approximately 280 employees at its Bagley head-
quarters, donated $200,000 toward the land purchase and construc-
tion costs. The city provided tax-increment financing and loans
while Headwaters Regional Development Commission and partici-
pating banks assisted with the project’s financing.
Hengel says Greater Bemidji was willing to step in as owner of
the new clinic building, which will be three times larger than the cur-
rent clinic, because the clinic will contribute to the agency’s goal of
recruiting new businesses and talent to the region by providing qual-
ity healthcare and therefore also improving quality of life. “We are a
fairly aggressive region, interested in driving development and creat-
ing prosperity for our region,” he says. “If that entails constructing a
building to support development, we will find a way. We are open to
using non-traditional means to support development and ensure we
are a very business-friendly region.”
The new clinic is expected to open by winter.
Grand ForksA number of new developments are being added in Grand
Forks, N.D., particularly along what has been dubbed the 42nd
Street corridor, which runs parallel to Interstate 29 and provides
access to the Alerus Center, the University of North Dakota and
Altru Health System. Recent development projects include a 600-
bed student housing facility and multiple hotels near the Alerus
Center.
ICON Architectural Group has been very active in developing
the corridor, serving as owner/developer of two large projects and
championing a larger effort to transform the area into a destination
center for students, visitors and local residents. The company recent-
ly completed the 42nd Street Square, a 15,000-square-foot, $3 mil-
lion retail strip center, which will soon welcome its first tenant. The
firm is also responsible for the 42nd Street Commons, a $2 million,
mixed-use project which will include underground parking, com-
mercial space and three floors of high-end apartments. The
Commons is the third building on ICON’s corporate campus.
ICON and engineering firm AE2S are both headquartered in the
The Sanford Bagley Clinic is scheduled to be complete this winter and will be approximately 10,800 square feet, three times larger than the current clinic.IMAGE: MJ ARCHITECTURAL STUDIOS INC./SANFORD HEALTH
35www.prairiebizmag.com
|REGIONAL DEVELOPMENT|
Professional Services Building on the campus.
Mike Kuntz, a principal at ICON, says the overall vision for the
corridor is to create a space that includes public art installations, an out-
door concert venue, a destination space that could be used for events
such as markets and festivals, and low-density, mixed-use retail and
housing developments. ICON and other proponents of the project are
working with the city to plan those elements ahead of development in
order to avoid doubling back afterward to design art features and parks.
Kuntz has been instrumental in designing the initial plan for the corri-
dor and says he was inspired by Omaha, Neb., which he says has been
successful in spreading art throughout the city, resulting in a distinct
feel that sets it apart from other Midwest cities. Grand Forks residents
have called for more art and entertainment options to be added to the
city and the plan for the corridor appears to be well-received to date,
however it will likely be some time before the vision becomes a reality.
Building permit valuations were approaching last year’s total by
the end of July this year, according to city officials. In 2012, the city
issued 1,506 permits for a total value of about $127.7 million. Between
January and July this year, the city issued 903 permits, valued at near-
ly $126 million. City planner Brad Gengler says the multi-family resi-
dential market is the busiest it’s been in over a decade. Among the
developers active in that sector is Enclave Development, which recent-
ly broke ground on a $18.8 million, 141-unit master planned rental
community known as Cottage Grove Apartments and Townhomes. A
grand opening for the apartment phase of the project is expected in
February. Enclave Development is also developing a 192-unit retire-
ment community, dubbed Silver Waters, which is scheduled to open
next July. The total project cost is $25 million, according to firm co-
founder Austin Morris.
Fargo MetroDevelopment activity of all types is outpacing previous years
throughout the Fargo metro area. From January through July, Fargo
issued 1,457 building permits with a combined value of more than
$204 million, approximately $46 million above last year’s permit valu-
ations for the same time period. “We’re on a real busy pace,” says Jim
Gilmour, city planner.
Demand for all types of housing in the Fargo area has been strong
throughout the year this year, resulting in a fast-paced housing devel-
opment market. The city of Fargo issued more single-family, twin
home and apartment unit permits during the first half of this year than
the same time frame last year, and Gilmour says that trend will contin-
ue as developers hurry to meet continued demand. A quarterly report
on apartment vacancies for the Fargo metro area during June, typical-
ly the slowest time of the year for apartment rentals, showed an overall
vacancy factor of just 2.56 percent for 23,000 units. Lack of available
units is being reflected in rental prices, which are increasing and will
continue to go up until sufficient supply is introduced to the market,
according to the report. Gilmour says there are currently more than
30,000 apartment units in Fargo and if demand continues at its current
rate it could take two years of fast-paced development in order to bring
the overall vacancy rate up to the acceptable 4 percent.
A number of new hotels and commercial spaces are also being
developed throughout the metro area. In June, KAJ Hospitality broke
ICON Architectural Group is active in developing the 42nd Street corridor in Grand Forks, N.D., and is developer/owner of the 42nd Street Square. IMAGE: ICON ARCHITECTURAL GROUP
36 Prairie Business Magazine September 2013
ground on a 103-room Cambria Suites and a 15,000-square-foot con-
ference center in West Fargo. The Cambria Suites West Fargo is expect-
ed to cost more than $17 million and will create 75 jobs at the hotel and
convention center when complete next spring. The project is located
along the 9th Street and Veterans Boulevard corridor, which is being
rapidly developed. Nine of the top 20 permits in valuation issued by the
city in 2012 were located along that corridor.
In Fargo, any remaining undeveloped lots along 45th Street near
West Acres Mall are prime real estate. Several projects are planned for
the area, including a $13 million, 60,000-square-foot retail strip mall
dubbed Prairie Stone Center. The center is owned and developed by a
new partnership between Rick Berg and Ace Brandt, two well-known
names in real estate. Goldmark Schlossman Commercial Real Estate
Services Inc. is the project’s broker. As of mid-August, a groundbreak-
ing for the center was scheduled for early September, with an anticipat-
ed completion date of next spring. Jim Buus, vice president of
Goldmark Schlossman, says the center is being developed with an eye
toward quick-serve restaurants, high-end retailers and service providers
and women-centric health and wellness businesses. He expects the
project will draw in national chains that are new to the area and high-
er-end businesses. “Due to the higher than average rent structure and
the high-impact location we expect it to be upscale-types of retailers
and service businesses,” he says. A number of potential tenants had
signed letters of intent by mid-August and Buus expected to begin
completing lease agreements in the near future.
BismarckThe city of Bismarck actually issued fewer permits in the first half
of 2013 as compared to last year, but the valuation of permits issued is
well above last year’s. Nearly $232 million in permits were issued
through July this year compared to about $156 million during the same
time frame last year, according to the city. A wet spring is to blame for
any slowdown in permits issued, according to city engineer Mel
Bullinger, who says development activity is quite brisk, primarily on the
north side of the city. A new elementary school and high school are
planned for that area of the city and a number of large residential proj-
ects are expected to be developed near the schools, he says. Additionally,
engineering firm KLJ is locating its new headquarters, an 80,000-
square-foot facility, on the north side of Bismarck.
Brian Ritter, acting executive director of the Bismarck-Mandan
Development Association, says that overall development activity has
definitely increased over the past year. “We’re fortunate in that we have
a dynamic, diverse economy that features strong government, medical
and energy sectors while also benefitting from activity in the Bakken
and agriculture,” he says. Included on the list of large projects is a rede-
velopment project downtown which will convert a city block into a
three-story mixed use space for restaurants, offices and residential con-
dominiums. Ritter says the project, called Broadway Centre, is believed
to be the first of its kind in Bismarck. A new Walmart Supercenter in
Mandan has spurred additional developments in the surrounding area,
including a new hotel, office spaces and eateries, he says. A number of
public projects are also underway, including a $13 million parking
ramp in downtown Bismarck, a $27 million expansion to the Bismarck
Civic Center, and a more than $40 million expansion at the North
Dakota Heritage Center. “Needless to say, we’re very excited about
Bismarck-Mandan’s future,” Ritter says.” PBKris Bevill
Editor, Prairie Business701-306-8561, [email protected]
Prairie Stone Center, a 60,000-square-foot retail center located along 45th Street in Fargo, is expected to be complete next spring. IMAGE: GOLDMARKSCHLOSSMAN COMMERCIAL REAL ESTATE SERVICES INC.
Minot, North Dakota is booming with business from the oil industry and more. But there’s more to life than business, so we’re building a great quality of life at the same time. Minot is home to a dynamic downtown, beautiful parks, new schools, stores, apartments, family neighborhoods and soon, a new airport. We’re booming with the good life!
Good Life, Magic City!
N O R T H D A K O T A
Minot Area Development Corporationwww.MinotUSA.com
|TALK OF THE TOWN|
Re-imagining the Magic CityMinot continues to rebound and reshape itselfBY KRIS BEVILL
Minot, N.D., has experienced a population boom over the past few years in relation to oil production in the nearby Bakken region. Main thoroughfaresincluding Broadway, shown here, nowbustle with traffic 24 hours a day.PHOTO: ROBERT LINDEE
Prairie Business Magazine September 201338
|TALK OF THE TOWN|
In June 2011, more than 11,000 residents were forced to evacuate
Minot, N.D., as the Mouse River rose to a historic level and
threatened to destroy the city causing more than $100 million in
damages to the city’s infrastructure. At about the same time, the oil
boom in the nearby Bakken region kicked into high gear and Minot
began experiencing a surge of interest from businesses and workers
wanting to make Minot their home base. As clean-up commenced
and residents returned to their homes, the Magic City faced the inter-
esting challenge of recovering from a historic flood while simultane-
ously accommodating historic new population growth. It’s difficult
to pinpoint the exact current number of residents, given the contin-
ued rapid growth rate, but best estimates place Minot’s current pop-
ulation somewhere between 45,000 and 48,000 people, compared to
the U.S. Census count of 40,888 in 2010.
Indeed, the oil boom in western North Dakota has had an obvi-
40 Prairie Business Magazine September 2013
ous impact on the community and continues to be a major
driver in the city’s growth. The Great Plains Energy Park has
been fully leased by various oil service companies since
opening in 2010 and has generated more than $300 million
in capital investment from a $3.5 million infrastructure
investment. Halliburton Co. is the largest tenant of the
park and has enabled the city to expand its infrastructure
in that area to further support the city’s growth, according
to Jerry Chavez, president of the Minot Area Development
Corp. In fact, he says the park has been so successful that a
second energy park is being developed to provide even
more space for oil-related service companies seeking work
space in the area.
The community is also investing in making the most
of its proximity to rail by developing the Port of North
Dakota. Billed as the largest development between Seattle
and Chicago in BNSF Railway territory, the port provides
easy transloading for oil and agriculture businesses and is
expected to become a significant draw to the city’s industri-
al corridor. In late July, Chavez says five businesses had so
far agreed to locate at the port. Among them is United Pulse
Trading Inc., which recently completed a $30 million food
processing plant capable of processing more than 75,000
metric tons of locally grown pulse crops such as lentils,
chickpeas and dry beans each year. The plant will employ
approximately 45 people.
The United Pulse plant serves as an example of
Minot’s continued focus on agriculture, which remains the
state’s top industry. And while oil is expected to also remain
a major part of Minot’s economy for many years, the
MADC has identified manufacturing as another industry
with great potential for growth in the city and is actively
recruiting new businesses such as Missouri-based pipe
manufacturer United Poly Systems, which received initial
approval from the city’s MAGIC Fund Screening
Committee in late July for a $400,000 grant to build a facil-
ity at the port.
Steady SourcesWhile Minot is happily welcoming new businesses to
the city, previously existing economic drivers continue to
play a vital role as well. The Minot Air Force Base, with
approximately 6,700 full-time employees, accounts for up
to 29 percent of the area’s economy, according to John
MacMartin, president of the Minot Area Chamber of
Commerce. He points out that dependents living on the air
base often fill lower-paying jobs that don’t provide enough
income for an individual with rent or mortgage to pay.
“With our unemployment rate as low as it is [about 2 per-
cent], any base dependent who wants a job has one,” he
says. “If the base was to suddenly close and those depend-
ents were no longer in the area, it would be devastating.”
Minot State University will celebrate its centennial this
month. The university contributed $183.6 million to
Minot’s economy in fiscal year 2011, according to a North
Dakota University System economic impact report. Student
spending generated another $67 million in economic activ-
ity. In the fall of 2010, approximately 3,000 full-time stu-
dents were enrolled at the university. Business activity
resulting from MSU’s expenditures was capable of support-
ing 497 secondary jobs in 2011 in addition to the 632 posi-
tions at the university, according to the report.
Trinity Health continues to be the city’s largest private
sector employer, with about 2,500 full-time employees as of
the first quarter of 2013.
Imagining a New DowntownMinot is also rebuilding its downtown to be better
than ever. Millions of local, state and federal dollars have
been earmarked for the “Imagine Minot” downtown rede-
velopment effort, including $18 million recently awarded
from the U.S. Economic Development Administration dis-
aster recovery fund for infrastructure repairs and expan-
sions to support the redevelopment. The total redevelop-
ment plan is expected to cost $140 million and includes
plans for housing as well as business and entertainment
spaces. One of the most unique projects planned for the
area is Artspace, which will provide space for arts and cul-
tural activities on the ground floor and affordable housing
for artists and their families on upper levels. The project
recently received a nearly $98,000 grant from the U.S.
Department of Agriculture to provide assistance to Native
American artists and entrepreneurs and will provide space
to the Turtle Mountain Tribal Arts Association for training,
workshops and gallery space.
Residential DevelopmentLike other oil patch communities, Minot has strug-
gled to keep up with demand for all types of housing for
its residents, but city leaders say progress is being made.
The city has launched an entry-level home initiative and is
challenging developers to build 2,000 homes in the
$150,000 price range. Many new apartment complexes are
also in the works. In May 2012, the city issued just six
|TALK OF THE TOWN|
(continued on page 42)
41www.prairiebizmag.com
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42 Prairie Business Magazine September 2013
|TALK OF THE TOWN|
apartment unit building permits. This May, 150 apartment unit
permits were issued.
Single-family home construction was down this May com-
pared to the previous year, but MacMartin says flooded homes that
have been renovated are entering back into the market and new
homes that were previously selling at inflated prices are beginning
to come down in price, reflecting a housing market that is return-
ing to normal as availability catches up with demand. Likewise, he
says rent prices for apartments are decreasing somewhat as more
units are built. “The apartments haven’t fallen enough yet in price
point, but as hundreds of apartments come onto the market, that
should help,” he says.
MacMartin says Minot is dedicated to maintaining quality of
life for its residents and wants to attract families to the city. It has
also made an effort to control its growth in a way that maximizes
available infrastructure without putting too much pressure on
existing residents. “Minot isn’t growing just for growth’s sake,” he
says. “I think we’re taking a careful approach to what we’re doing.”
PB
Kris BevillEditor, Prairie Business
701-306-8561, [email protected]
(continued from page 40)
0 500 1,000 1,500 2,000 2,500 3,000
Trinity Health
Cognizant – INGMinot Service Center
Marketplace Foods
KALIX – Minot Vocational Adjustment Workshop
Menards
Wal-Mart Supercenter
MLT Vacations (reservation center)
SRT Communications Inc.
Grand International Hotel
Dakota Boys & Girls Ranch
SOURCE: MINOT AREA DEVELOPMENT CORP.
Top 10 Private Sector Employers(full-time employees as of 1Q 2013)
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43www.prairiebizmag.com
44 Prairie Business Magazine September 2013
|TRANSPORTATION|
Instructor Greg Blanchfield teaches CDL students the basics of driving truck as part of a training course offered at the campus of Lake Region StateCollege in Devils Lake, N.D. PHOTO: ERIN WOOD, LAKE REGION STATE COLLEGE
45www.prairiebizmag.com
|TRANSPORTATION|
Aprogram recently developed and implemented by
Cankdeska Cikana Community College, a tribal college
located on the Spirit Lake Reservation near Devils Lake,
N.D., and TrainND Northeast, located at Lake Region State College
in Devils Lake, is training a new pool of recruits to fill the need for
commercial driver’s license (CDL) drivers throughout the region.
The program is unique in that it is designed for students with no
prior experience driving big rigs. While other programs require
trainees to have a standard set of skills, this program allows the
extra time needed to bring students up to speed and provide them
with the knowledge they need to continue on the road toward
obtaining their CDL license.
“We have students who have never driven a manual transmis-
sion, and never backed up even a small trailer, but they are looking for
a career and we are willing to take the extra time to train them,” says
Greg Blanchfield, CDL trainer.
Edie Armey, director of TrainND Northeast, says TrainND’s
short-course for drivers was developed with the agricultural industry
in mind and requires attendees to have a CDL permit before taking
the course. The longer version now offered at LRSC includes a week
of training to prepare students to take their permit test, complete with
hands-on training using semis owned by Blanchfield and leased by
TrainND. The program was made possible through a combination of
Job Service of North Dakota funding, geared toward providing train-
ing for veterans and Native Americans in fields such as welding and
truck driving, and a grant obtained by CCCC. The cost to attend the
Demand drivesnew truckertraining course Training program teaches new recruits truck driver basicsBY KRIS BEVILL
46 Prairie Business Magazine September 2013
course is about $5,500, compared to $1,000 for the 45-hour short course. Two training sessions have been held
so far, with a total of 20 students. Of those, seven participants have received their CDLs and are currently
employed, according to Evelyn McDonald, director of workforce training at CCCC.
Armey foresees continued demand for CDL training in the eastern part of the state due partially to indus-
try growth, but also because companies are losing workers to higher paying opportunities in western North
Dakota. And job opportunities there, and throughout the region, are expected to continue to increase as well. Job
Service projects an 18.4 percent increase in the transportation and material moving job category by 2014. Armey
says TrainND is planning an industry forum in Grand Forks, N.D., on Oct. 9 to gauge interest in raising funds to
continue providing CDL training as needed. The state has provided a $1 million grant to TrainND to use as
deemed necessary and could be utilized for CDL training, but the grant is a dollar-for-dollar match program so
industry members will need to step in to provide some of the training money, she says.
South Dakota is facing similar CDL driver shortages, according to Dawn Dovre, director public affairs at the
South Dakota Department of Labor and Regulation (DLR). “The DLR has identified truck drivers as one of our
high-demand, high-wage occupational groups,” she says. “We realize the opportunities available for truck drivers
and are working to supply a workforce for those job openings.”
South Dakota provides financial assistance for CDL students and has purchased equipment for training
providers in the past, according to Dovre. All four of the state’s technical institutes offer CDL training as do sev-
eral other training centers. The state has also received a Community Development Block Grant to further sup-
port truck driving training. PBKris Bevill
Editor, Prairie Business701-306-8561, [email protected]
|TRANSPORTATION|
48 Prairie Business Magazine September 2013
Ray Willey was flipping through a National Trust
for Historic Preservation magazine one day
about a year ago when his attention was imme-
diately captured by a photo of a “beautiful, structure —
like a Lichtenstein castle." The photo was included in a
section that listed historic buildings in danger of being
demolished. “I thought, ‘There’s got to be a way to do
something,’” he says. “I couldn’t believe that this could be
a candidate for being torn down.”
The building in the photo was the historic Kirkbride
building in Fergus Falls, Minn. Built in the late 1800s, the
massive complex — sprawling across more than 600,000
square feet — has been listed on the Federal Register of
Historic Places since 1986. Originally one of three state
insane asylums, it had been used most recently as a mental
health treatment facility, operating as the Fergus Falls
Regional Treatment Center until the state closed the facili-
ty and sold the property to the city in 2007. The city had
since been trying to attract developers to the property,
offering incentives including a state redevelopment grant
that could help ease the financial burden of redeveloping
the historic property, but no takers had been found and the
city was facing a looming grant deadline and no other
options besides demolishing the complex.
But, as fate would have it, Willey is CEO of Georgia-
based Historic Properties Inc., a company with 30 years of
experience redeveloping historic properties around the
country. Spurred by Willey’s desire to save the Kirkbride,
the company evaluated the property and determined that
not only was the Kirkbride structurally sound, it had
potential for rental income and offered favorable financial
incentives. The firm submitted a redevelopment proposal,
and received unanimous approval from the city council
earlier this year.
The estimated $41.4 million project, designed by
Fargo-based Mutchler Bartram Architects, is slated to
include a 60-unit apartment complex, a 120-room bou-
tique hotel complete with conference and lounge space as
well as indoor/outdoor pool and spa amenities, a health
club for hotel guests and tenants, an 83,000-square-foot
eatery section and office space for property managers and
employees. It is the largest project ever undertaken by
Historic Properties and is its first Minnesota property. The
company formed a stand-alone subsidiary, Historic
Kirkbride LLC, to carry out the project and has brought in
Charles Noh, co-chairman of California-based hotel man-
agement firm Bernard Hotels International, as a principal
partner for the hotel portion of the project, which
accounts for about half of the complex’s square footage.
The optimistic timeline for completion has city work
beginning this fall, followed by renovations beginning next
July and a grand opening occurring by Christmas 2015,
The century-old Kirkbride build-ing in Fergus Falls, Minn., is list-ed on the Federal Register ofHistoric Places and is one ofonly a few remaining examplesof a building design popular inthe late 19th century for mentalhealth treatment facilities.PHOTO: CITY OF FERGUS FALLS
|REDEVELOPMENT|
Back from the brinkFergus Falls approves redevelopmentplan for historic Kirkbride complexBY KRIS BEVILL
49www.prairiebizmag.com
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Saturday, Sept. 21, 2013 (Centennial Program at 2 P.M.)
Noon – 4 P.M. Old Main EllipseIn case of inclement weather, the event will be
in the Dome. Sponsored by Minot YP.
It’s a party to celebrate our Centennial – we are 100!
Go to www.MinotStateU.edu/100 for details. We want to see you!
OTHER SPECIAL HOMECOMING EVENTS: Monday, Sept. 23 – Switchfoot Concert Tuesday, Sept. 24 Friday, Sept. 27 – Soccer vs. Winona; Alumni and Friends Reunion
Saturday, Sept. 28 – Parade, Tailgating & Football, plus a special Centennial Celebration photo
but Willey anticipates that the complex financial
aspects and sheer size of the Kirkbride will demand
a lengthier timeline. The company plans to package
together a number of financial mechanisms to fully
fund the project, including an EB5 Regional
Investment Center loan for up to $23.5 million,
several federal and state historic tax credit pro-
grams and federal housing and urban development
(HUD) funding.
Fergus Falls Mayor Hal Leland says the city
council is “absolutely delighted” that the Kirkbride
restoration project is finally happening and the city
will do “everything humanly possible” to help
restore the complex’s position as an economic
engine for the community. “We’ll have to provide
the infrastructure that is needed and the efforts to
preserve the structure and help secure the kind of
financing [Historic Kirkbride] needs in order to
move this project forward,” he says. “I think we’re
prepared very much to stand behind that and make
this successful.” PB
Kris BevillEditor, Prairie Business
701-306-8561, [email protected]
|REDEVELOPMENT|
50 Prairie Business Magazine September 2013
|MARKETING|
Earlier this year, Gartner Inc., one of the world’s leading information
technology research and advisory companies, released data that fore-
casts a nearly 8 percent decline in the worldwide traditional comput-
er market this year as consumers increasingly shift their daily usage habits to
handheld devices. The firm expects that trend will continue in coming years
and predicts a steady decline of desktop and notebook computer sales
through 2017 as tablet and mobile phone sales continually increase.
For business owners, understanding the consumer's shift from comput-
er to mobile device use can be critical to developing the appropriate website
and marketing campaign. If more consumers are using mobile devices to
search the Internet for information, businesses need to ensure their websites
are designed to function on those devices. There are a number of options
available, ranging from simply designing the site to be mobile friendly to
responsive design, which enables the website to automatically resize for the
device used to access the site.
Brian Meckler, marketing adviser at Absolute Marketing Group in Fargo,
N.D., says businesses in the Midwest are a little behind the coasts in terms of
optimizing websites for mobile users, however an increasing number of his
firm’s clients are keeping mobile capabilities and social media in mind when
going through the website design process. Cost remains a barrier for some
business owners considering mobile optimization options, but Meckler says
that while those designs, particularly responsive design, may be slightly more
expensive than other options, the added cost is often not as much as cus-
tomers anticipate.
Absolute Marketing has been assisting Fargo-based JL Beers in imple-
menting a mobile-ready, social media-based marketing plan for the past four
years. Lance Thorson, partner and director of development at JL Beers, says
the bar/restaurant embraced that type of marketing strategy in part because
its initial location, a 24-seat facility in downtown Fargo, was too small to war-
rant a mass media marketing campaign. The business has since expanded to
include multiple locations in North Dakota, South Dakota and Minnesota but
it continues to employ a mobile-heavy marketing strategy. The business touts
a text club program, which allows the business to communicate directly with
its customers, and recently introduced a smartphone app, developed by
Absolute Marketing, that features up-to-date beer menus and the ability for
customers to take notes and provide feedback to the business.
The company’s mobile marketing strategy will also make it easier to
spread the word about new location openings as JL Beers moves forward with
a recently announced franchise plan, according to Thorson. Customers in new
markets who have patronized an existing JL Beers location and have stayed in
touch through social media will be easy to inform about new store openings.
Thorson says the company has invested “a good amount” of money to
develop the specialized app and mobile marketing strategy, but he believes it
has already proven to be worth the cost. “You see people using the app, you see
people talking about it … I think it’s been a great method for us,” he says.
“Everyone has an iPhone or an Android now and they’re the searching the
Internet that way for instant information. If you’re able to provide that, you’re
steps ahead.” PBKris Bevill
Editor, Prairie Business701-306-8561, [email protected]
Fargo-based JL Beers targets handheld deviceusers through a marketing campaign thatincludes a text club and a specially designedapp for smartphones. PHOTO: JL BEERSMarketing on the move
Mobile marketing strategies grow in importance as handheld device use increasesBY KRIS BEVILL
51www.prairiebizmag.com
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52 Prairie Business Magazine September 2013
In 2007, North Dakota established the EmPower
Commission to develop a comprehensive ener-
gy policy for the state’s diverse and growing
energy industry. Sixteen representatives from all of
the state’s energy industries were elected to the
commission and asked to work collectively to
develop the state’s diverse energy resources in order
to meet the energy needs of North Dakota and the
nation without government mandates. The com-
mission set a goal to double the state’s total energy
production by 2025. This summer, the commission
announced the state has met that goal — 13 years
ahead of schedule.
“Our group set a goal to double North Dakota’s
energy production from all sources by 2025 in an
environmentally friendly way to drive economic
growth and help the nation achieve greater energy
independence,” says Al Anderson, commissioner of
the North Dakota commerce department and
EmPower Commission chairman. “That goal is now
met, 13 years early, with an overall increase of 154 per-
cent. This is a significant accomplishment for the state
of North Dakota.”
Considering the accelerated ramping up of oil
and gas production in North Dakota since 2007, it
comes as no surprise that the state would surpass any
energy production goal set pre-boom in record time,
but it should be noted that the state’s renewable ener-
gy producers also experienced significant growth over
the past five years, due at least partially to the EmPower
Commission’s support for renewable energy produc-
tion incentives and strong energy policies across all
sectors for the overall industry growth. According to
data gathered from the U.S. Energy Information
Administration, renewable energy production in
North Dakota, including wind, ethanol, biodiesel and
biomass sources, has increased by 225 percent since
2007. Marketed natural gas is up 125 percent while oil
production has increased by a whopping 386 percent
ND doubles energy production in 5 years Diversified energy strategy contributes to growth throughout all industry sectorsBY KRIS BEVILL
Data gathered from the U.S. Energy Information Association shows that overall energyproduction has more than doubled since the formation of the North Dakota EmPowerCommission in 2007. SOURCE: NORTH DAKOTA DEPARTMENT OF COMMERCE, U.S. ENERGY INFORMATION ASSOCIATION
Increased oil and gas production contributes heavily to North Dakota’s energy produc-tion growth rate, but the state’s renewable energy industries have also grown signifi-cantly since 2007. SOURCE: NORTH DAKOTA DEPARTMENT OF COMMERCE, U.S. ENER-GY INFORMATION ASSOCIATION
53www.prairiebizmag.com
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|ENERGY|
since 2007. The commission noted in a news release
that the state’s lignite industry also continues to play a
vital role in the state’s energy mix, accounting for a $3
billion economic impact.
It is unclear whether the commission will
establish a new energy production goal. It is cur-
rently focusing on identifying value-added mar-
keting opportunities for energy-related products,
concentrating on ethanol and natural gas liquids,
and is backing a study to evaluate those options.
Results of the study are expected to become avail-
able next spring.
Mike Fladeland, manager of business develop-
ment at the North Dakota Department of
Commerce, says the state’s growing energy sector and
interest in value-added options translates into the
potential for a number of new business opportunities
throughout the state. “The oil and gas business and
other energy resources are going to be around for a
long time, but we want to get past the point where
we’re depending primarily on those raw resources
and sending them down the pipeline elsewhere for
value to be added,” he says. “We want to add that
value here.” PBKris Bevill
Editor, Prairie Business701-306-8561, [email protected]
"Our group set a goal todouble North Dakota'senergy production from allsources by 2025 in an environmentally friendlyway to drive economicgrowth and help the nationachieve greater energyindependence. That goal isnow met, 13 years early,with an overall increase of154 percent."
- Al AndersonNorth Dakota commerce department
commissioner, Empower Commission chairman
54 Prairie Business Magazine September 2013
A 440-acre rail terminal project proposed nearBelfield, N.D., could create up to 200 jobsaccording to the project's developers.
Multi-million dollar railterminal planned for NDStark County officials consider impacts of facilityBY BRYAN HORWATH
If two Washington developers have their way,
Belfield, N.D., could be home to a multi-
million dollar rail terminal site.
Stu Stiles and Jim Hereford of Belfield
Railroad Enterprises fielded questions from about
a dozen attendees at a public informational meet-
ing Aug. 14 at Memorial Hall, where a number of
concerns were raised about the proposed facility.
Plans for a 440-acre site — three miles east of
Belfield — to be rezoned from agricultural use to
industrial use were slated to go before the Stark
County Zoning Board on Aug. 29. Stating the
project would be expected to cost “north of $40
million,” Hereford said the complex could eventu-
ally provide up to 200 jobs.
Most of the concerns raised at the meeting
centered around increased truck traffic in the area
— especially on Highway 10 — that would mate-
rialize as a result of the facility, which would be
largely for importing and storing frac sand and
other construction and oil field-related supplies.
“I’m very concerned about the added truck
traffic that this would bring,” said Curt Buckman
of Belfield. “I have a daughter who’s going to be 16
and is just starting to drive. It’s dangerous enough
on the roads in this area, but old (Highway) 10
was one of the last safe roads around. Most of the
traffic there is local people.”
Touting the economic impact the facility
would have on the Belfield area, Stiles said the ter-
minal site would bring good-paying jobs, largely
as the result of a frac sand manufacturing plant
that would be on-site.
“We describe it as a multi-use rail facility,”
Stiles said. “There’s a company called Epropp that
has an option with us to purchase 51 acres on the
property. They’re a company that has a patented
process to manufacture a ceramic proppant prod-
uct. It’s an interesting endeavor. He will tell you
that he believes a manufacturing plant could
employ 105 people and we believe that these will
be head-of-household jobs — permanent
employment for people.”
Stiles said the facility would be different
from outfits like the Bakken Oil Express, which is
west of Dickinson, because it would mainly
import product.
South Heart Mayor Floyd Hurt expressed his
concern about the possibility of increased truck
traffic — something Hereford acknowledged
would become reality — while Peggy O’Brien
raised several concerns, including the aesthetic
nature of the facility and its proximity to
Theodore Roosevelt National Park, which is about
a 20-minute drive from Belfield. PB
Bryan HorwathEnergy reporter, Forum Communications Co.
|ENERGY|
55www.prairiebizmag.com
56 Prairie Business Magazine September 2013
Oil Production
EmploymentUNEMPLOYMENT RATE EMPLOYMENTMay-13 May-12 May-13 May-12
North Dakota 3.20% 3.00% 387,865 379,197
Bismarck MSA 2.4 2.5 59,988 60,164
Fargo MSA 3.1 3.1 117,125 116,436
Grand Forks MSA 3.5 3.8 51,282 51,865
Dickinson MiSA 1.3 1.4 21,446 19,832
Jamestown MiSA 2.8 2.8 9,994 10,672
Minot MiSA 2.7 2.5 36,146 35,392
Wahpeton MiSA 3.5 3.5 11,332 11,676
Williston MiSA 0.7 0.7 43,500 33,640
South Dakota 4.00% 4.40% 431,662 425,570
Rapid City MSA 3.9 4.4 65,442 64,693
Sioux Falls MSA 3.3 4 131,100 127,140
Aberdeen MiSA 3.3 3.6 22,708 22,666
Brookings MiSA 3.4 3.7 18,137 18,095
Huron MiSA 3.4 3.3 9,841 9,748
Mitchell MiSA 3.2 3.4 13,213 12,950
Pierre MiSA 2.8 3.2 12,188 12,010
Spearfish MiSA 4 4.5 12,386 12,380
Vermillion MiSA 4.1 4.3 6,767 6,827
Watertown MiSA 3.4 3.7 18,714 18,514Yankton MiSA 3.6 3.9 11,619 11,598Minnesota 5.30% 5.70% 2,832,097 2,798,906Minneapolis-St. Paul MSA 4.7 5.2 1,797,050 1,760,022
Alexandria MiSA 4.1 4.3 20,234 20,455
Bemidji MiSA 6.7 6.7 20,418 20,762
Brainerd MiSA 6.6 6.7 44,101 44,635
Fairmont MiSA 4.7 4.9 10,889 11,033
Fergus Falls MiSA 4.9 4.7 29,305 29,865
Hutchinson MiSA 5.7 6.4 18,327 18,493
Marshall MiSA 4.1 4 14,206 14,339
Red Wing MiSA 4.7 5 24,323 24,422
Willmar MiSA 4.2 4.4 24,085 24,236
Winona MiSA 4.7 4.8 27,749 28,221
Worthington MiSA 3.8 3.9 10,938 11,115
Data provided by David Flynn, chair of the University of North Dakota Department of Economics. Reach him at [email protected].
Exchange
Interest Rates
Homes Built
Home Prices
May-13May-12
187211
87.8479.44
AverageRig Count Price
May-13May-12
8,9157,205
810,129639,277
211180
ProducingWells
AverageDaily
ProductionTotal
Permits
|BY THE NUMBERS| | SPONSORED BY |
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