Different but Equal Minnesota employers grapple with the needs of Muslim employees, such as prayer breaks and dress code variatons - PageTurnPro
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U LAW SCHOOL LOSSES | HIGH-SPEED RAIL TO ROCHESTER | 12 GROWTH CO’S FACING CHANGE JUNE 2016 TCBMag.com Different but Equal Minnesota employers grapple with the needs of Muslim employees, such as prayer breaks and dress code variatons.
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CONTENTS Features Commentary June 2016 24 Northern Exposure After a double-digit drop in tonnage at the Duluth-Superior Port in 2015, the port’s leaders 5 Editor’s Note | Other States Are Cutting Taxes By Dale Kurschner envision a growth strategy based on Duluth’s 7 Letters | Minnesota’s Wealth Migration Has Impact Great Lakes location. By Gene Rebeck 19 Personal Brand | Off-Site Meetings By Roshini Rajkumar 26 Law and Disorder Law schools are on trial in the marketplace, and law 21 Explanation of Benefits | firms are courting fewer graduates. Sound Mind, Sound Business By Burl Gilyard By David Burda 32 Mystery Train 22 Performing Philanthropy | Is a proposal to build a 200 mph train from the metro A New Narrative for North Minneapolis area to Rochester with $4 billion in private capital By Sarah Lutman 26 too good to be true? By Adam Platt 70 Marketing Mash-Up | Brick and Click By Glenn Karwoski 38 Crisis of Faith (cover story) Muslim religious practices have intensified the 71 Corner Office | Teaching New Dogs Old Tricks challenge that production line businesses face By Mark W. Sheffert in religious accommodation. By Chris Clayton 72 Open Letter | (Anti) Social Media By Vance Opperman Trending 45 12 Companies to Watch | Pivot Points By Burl Gilyard 32 50 Law | Think Globally, Act Legally | By Gene Rebeck 53 Meetings | Distinctive Event Venues By Melinda Nelson Departments 72 8 Starters n A Smashing Startup n A Price for Farmers’ Data 15 n One Cable at a Time 14 A & E | Paul Simon and More in June tcbmag Archives By Tad Simons n Shakopee Mdewakanton Sioux continue to place chips on Mystic Lake Casino. n Duluth’s Glensheen mansion 15 Concierge | On the Water gains visitors with new marketing plan. n Downtown By Melinda Nelson Minneapolis sees a comeback in the condo market. 16 Plugged In | The Best Opportunities for Networking 16 By Kate LeRette 18 Beyond These Pages Scenes from TCB’s Women in Corporate Leadership. 20 Health Beat High Cost of Insulin n Before Surgery, Print and Practice TWIN CITIES BUSINESS, Vol. 23, No. 10. © 2016 MSP Communications. The opinions of columnists are their own. Unsolicited manuscripts or artwork will not be returned unless accompanied by a self-addressed, stamped envelope. Telephone 612-339- 7571. Fax 612-339-5806. E-mail: edit@tcbmag.com. TWIN CITIES BUSINESS (ISSN 1072-673X) is published monthly by MSP Communications, 220 S. Sixth St., Suite 500, Minneapolis, MN 55402-4507. Subscriptions available for $24.95 per year; foreign subscriptions, $169.00 per year; back issues, $10.00. To subscribe or change address, visit tcbmag.com/subscriptions.aspx. For back issue requests, contact tcbservice@tcbmag.com or 612-339-7571. Periodicals postage paid at St. Paul, MN, and at additional mailing offices. POSTMASTER: Send all UAA to CFS. (see DMM707.4.12.5); NON-POSTAL AND MILITARY FACILITIES: send address corrections to TWIN CITIES BUSINESS, Subscription Processing, P.O. Box 5846, Harlan, IA 51593. 2 TWIN CITIES BUSINESS tcbmag.com JUNE 2016
“These are exactly the kinds of questions we need help with.” As industries evolve, BDO continues to find new ways to help our clients run their organizations more efficiently, and compete more effectively. As one of the world’s leading accounting and consulting organizations, we provide clients with a wide range of assurance, tax, consulting, and advisory services to help manage the many complexities of today’s rapidly changing business environment. BDO Minneapolis Michael Metz Allen Kaufmann 952 854 5700 Tax Office Managing Partner Audit Office Managing Partner mmetz@bdo.com akaufmann@bdo.com Accountants and Consultants www.bdo.com © 2016 BDO USA, LLP. All rights reserved.
Twin Cities Business Magazine Staff CBIZ is Proud Editor in Chief Dale Kurschner dkurschner@tcbmag.com Publisher Shelly Elmore selmore@tcbmag.com to Sponsor the Executive Editor Adam Platt aplatt@tcbmag.com Trending Editor Liz Fedor lfedor@tcbmag.com Senior Writer Burl Gilyard bgilyard@tcbmag.com CFO Forum Online & E-Newsletter Editor Andre Eggert aeggert@tcbmag.com Online & E-Newsletter Writer Sam Schaust sschaust@tcbmag.com Northern Minnesota Correspondent Gene Rebeck grebeck@tcbmag.com Copy Editors Judy Arginteanu judarg@gmail.com Sherri Hildebrandt s_hildebrandt@yahoo.com Editorial Intern Kate LeRette klerette@tcbmag.com Design Director Chris Winn cwinn@tcbmag.com Account Director Traci Auger tauger@tcbmag.com, 612-336-9214 Senior Account Manager Rian Heaslip rheaslip@tcbmag.com, 612-336-9215 Senior Account Manager Andrea Shapiro ashapiro@tcbmag.com, 612-336-9211 Marketing and Events Manager Caitlin French cfrench@tcbmag.com, 612-336-9288 Marketing and Events Intern Lilly Shapiro lshaipro@tcbmag.com Sales and Marketing Coordinator Hailey Johnson hjohnson@tcbmag.com, 612-373-9584 Sales and Marketing Intern Kaeli Wuotila kwuotila@tcbmag.com Contributing Writers David Burda > Nancy Crotti > Suzi Frisch > Fran Howard > Glenn Karwoski > Sarah Lutman > Melinda Nelson > Roshini Rajkumar > Mark W. Sheffert > Tad Simons > Megan Wiley MSP Communications CEO & General Counsel VP, Manufacturing & Delivery Systems Vance K. Opperman Mary K. Authier CFO Charles F. Thell VP, Creative Director Jayne Haugen Olson COO Nathaniel Opperman VP, Finance & Administration John Bienias President Gary Johnson VP, Project Management Frank Sisser VP, Publishing Deborah Hopp VP, Digital Director Kevin Dunn Credit Manager Dave Gschlecht Senior Digital Strategist Carly Ferry Office Manager Dustin Tuley Social Media & Analytics Specialist Senior Accountant Anne McPhillips Isabelle Wattenberg Administrative Assistant Patty Mikres Corporate Circulation Director Production Manager Tim Dallum Bea Jaeger Production Supervisor Paul Marihart Director, Circulation Marketing Financial & Tax Services | Business Consulting Production Associate Allison Cook Colleen Puent Digital Prepress Group Fulfillment Coordinator Valerie Asante Succession & Estate Planning > Steve Mathewson Circulation Manager Carin Russell > Bill Sympson Circulation Assistant Anna Buresh Valuation & Litigation Support CMS Coordinator David Roberts Creative Marketing Group Senior Web Developer David Waters > Katie Shaw Employee Benefits Consulting | Payroll, COBRA, Flex Web Developer Ricky Hannigan > Janice Hamilton Mobile Application & E-Newsletter > Joy Wagner Enrollment Services | Human Capital Services Developer Lauri Loveridge Network Administrator Steve Swanson Risk Management Assistant Network Administrator Matthew Nimmo Contact Us To sub sc ri b e > tcbmag.com/subscribe > tcbservice@tcbmag.com > 612-339-7571 To c h a ng e a n a d d re ssorre ne w > tcbmag.com/myaccount > tcbservice@tcbmag.com > 612-339-7571 Forb a c k i ssue sorm i ssi ng issue s> tcbservice@tcbmag.com > 612-339-7571 Forre pri nts, PDFs> cfrench@tcbmag.com > 612-336-9288 222 S. 9th Street, Suite 1000 Forpe rm i ssion to c opy > dkurschner@tcbmag.com > 612-336-9299 To m a ke e ve ntre se rva ti ons> cfrench@tcbmag.com > 612-336-9288 Minneapolis, MN 55402 To a d ve rtise > see account executive listings > or contact cfrench@tcbmag.com > 612-336-9288 612.376.1264 | www.cbiz.com To sub m i ta pre ssre le a se > edit@tcbmag.com To pi tc h a story > see editorial staff listings or contact dkurschner@tcbmag.com > 612-336-9299 © Copyright 2015. CBIZ, Inc. NYSE Listed: CBZ. All rights reserved. Twin Citi e sBusi ne ssis a publication of MSP Communications 220 S. 6th St., Suite 500, Minneapolis, MN 55402-4507 612-339-7571, fax 612-336-9220 4 TWIN CITIES BUSINESS tcbmag.com JUNE 2016
Take Note: Others Are Cutting Taxes Several states are implementing innovative tax policies good for the short and long haul. S ince our April cover story, “Bye-Bye, Billions,” we’ve received a lot of feedback—most positive, some negative. Thank you to everyone who responded. taxes on $64,500). To help compensate for the tax cuts, the state added new sales taxes on repair, installation and maintenance (expected EDITOR’S NOTE One question I heard from some of you (especially those to bring in $160 million a year at first, and grow after that). by Dale Kurschner more skeptical of our findings) was, “Which wealthy indi- The state’s Division of Motor Vehicles will increase fees by viduals recently left, or are leaving the state for tax reasons?” about 30 percent (bringing in about $153 million a year). This can only be answered by those of you reading this col- And slight increases in the fee paid to screen newborn babies, umn who are wealthy and have moved for tax reasons. If one and community college tuition, are expected to generate or more of you would come forward, it could spark a broader additional dollars. discussion, as it did when it was revealed in late April that The bet with the changes, of course, is that wealthier North hedge-fund billionaire David Tepper moved from New Jersey Carolinians will reinvest rather than move, while local busi- to Florida. He took with nesses will expand where they are rather than in other states. him hundreds of millions One other plus was North Carolina’s significant overhaul of its of dollars in tax payments. unemployment insurance program: it improved its perfor- Many of you worked hard mance, reduced fraud, allowed the state to pay what it had bor- to make Minnesota’s fu- rowed to keep it afloat, and is expected to save employers there ture brighter; why give up more than $240 million a year in tax savings. (Of course, ben- on that by staying silent efits from all of the above could go down the toilet if the state on a trend that will hurt doesn’t change its stance on transgender use of bathrooms.) this state? Another frequent Elsewhere question was “How can n I first heard about Tennessee’s tax climate when a Wayzata we reduce income taxes, wealth advisor told me of an entire family of Minneso- while ensuring there’s still tans—three generations—that moved there a few years ago. adequate funding for the Two months ago, Tennessee became even friendlier when it programs and budgets decided to become the nation’s eighth no-income-tax state that help make our state after phasing out its tax on dividend and interest income great?” The second part between now and 2022. This follows by three years its deci- is critical. Too many, sion to kill its estate tax by the end of 2015. Given the latest however, quickly say you changes, the state is expected to move from 15th to 11th on can’t cut taxes and maintain a high quality of life. These nay- the State Business Tax Climate Index. sayers need to spend some time in and studying how, some Indiana a few years ago started a multi-year process of states are indeed balancing tax relief with maintaining if not phasing down its corporate flat rate from 8.5 percent to 6.5 improving quality of life. Here are a few examples: percent today, and 4.9 percent by 2021, according to Scott Drenkard, director of state projects at the Tax Foundation North Carolina in Washington, D.C. The individual flat rate also has been Surely there are some n A series of changes in 2013 flipped North Carolina from decreasing, though less dramatically, and is now at 3.3 per- examples out there that being one of the worst to one of the best states in terms of cent,” he says. The changes led to Indiana moving from 44th Minnesota’s legislators could taxes. That year it slashed income tax rates, eliminated the es- to 16th in one year on the tax climate index. Meanwhile, tax adapt for use here. tate tax and expanded sales taxes. All told, its reforms moved revenues have grown due to economic growth, while state it from 44th to 16th on the Tax Foundation’s State Business spending is being better managed. Tax Climate Index. Additional reforms in 2015 moved it to Florida in recent years has cut taxes by more than $1 15th (Minnesota ranks 47th). billion, making it to the fourth-best state in the country The state is on track to have its corporate income tax rate for business tax climate. This year, it passed another $129 drop to 3 percent in 2017, depending on whether net general million a year in cuts including: elimination of sales tax on fund tax collections exceed $21 billion in a future year. If 3 manufacturing equipment; exemption of sales taxes on food percent is obtained, it will represent the lowest corporate and drinks sold by veterans’ organizations; and phase-out by income tax rate of any state that levies such a tax. 2019 of a sales tax on asphalt used for government projects. Changes in 2015 reduced income taxes by $400 million The measure also sets up a three-day back-to-school “holi- a year. The personal income tax rate is set to drop from 5.75 day” during which shoppers can avoid sales tax on clothes percent to 5.5 percent for 2017: this would be lower than that cost up to $60, and school supplies of $15 or less. neighboring Virginia (5.75 percent), Georgia (6 percent) Several other states also are working hard to find better, and South Carolina (7 percent). North Carolina also in- and less expensive ways to tax individuals, while improving creased the standard 2016 deduction by $500, to $15,500 for government-funded programs and initiatives. Surely there married filers (a couple that earns $80,000 only pays income are some examples out there that Minnesota’s legislators could adapt for use here. tcbmag JUNE 2016 tcbmag.com TWIN CITIES BUSINESS 5
Here’s to the ingenious individuals who make growth happen Congratulations to the EY Entrepreneur Of The Year® Upper Midwest Award finalists. Their inspirational stories will take center stage as we celebrate their achievements at our gala awards. June 9, 2016 | JW Marriott, Mall of America | Minneapolis, MN For more information or to reserve your seat at the gala, contact Jim Kowitz at jim.kowitz@ey.com. Regionally sponsored by © 2016 Ernst & Young LLP. All Rights Reserved. ED0317 Locally sponsored by
LETTERS Financial and cultural effect of state’s wealth migration is enormous n Thank you for the excellent article (“The Great Migration,” April) concern- ing the huge negative impact Minneso- ta’s punitive tax rates are having on our economy. I personally have noted the migration of successful Minnesotans who have exited Minnesota for lower taxes and warmer weather. Another impact of the migration, other than lower net tax revenue, lower “Our bank has contributions and fewer business investments, is that these people spent their $1.5 billion of income and $12 billion in net worth in Minnesota. They built homes, bought vehicles, purchased insurance, food, clothing and other items. They also got haircuts, ate out at restaurants and attended sporting events. They spent their money in Minnesota. helped us to double-digit growth.” All of these activities created wealth for the working-class people of Minne- sota who also paid taxes and spent their earnings, creating a multiplier effect. The state of Minnesota’s 26 rules for becoming classified a nonresident compounds this issue, because the state’s approach is forcing people to move all of their Min- – Loren O’Brien, President/CEO nesota relationships out of state. As a result, the real financial and cultural impact of these policies is even greater than the article noted. B&F Fastener Supply, Ramsey, MN Many have noted that Minnesota tax policies are similar to the Eagles song Hotel California. The song lyrics are: “You can check out any time you like, but you can never leave.” B&F Fastener Supply is a premium industrial and construction supply William A. Cooper, Wayzata distributor, serving customers in five states. CEO Loren O’Brien explains, The writer is the former CEO and current chairman of TCF Financial Corp. “We have 14 stocking warehouses, 80 delivery trucks, and literally thousands of products.” Loren works with Cindy Carlson, SVP of Commercial Banking at Western Bank. “We’ve been with them since 2011. It’s only our second bank in 27 years of business. And they made the transition seamless.” Richard Copeland, At Western Bank, bankers like Cindy get to know your business founder right down to the last decimal point. Loren says, “Our business can be of Thor Construction complex; we do packaging, and even custom machined parts. But Cindy (center), with superintendent Leo knows distribution and manufacturing. She knows our business. And she Copeland (left) and knows what the numbers mean.” CEO Ravi Norman (right) on site at U.S Your goals are our business; that’s the Western way. And Loren Bank Stadium. is an enthusiastic fan, “They helped us build the infrastructure that Private businesses can fuel was needed to fuel consistent double-digit growth. They’re proactive in turnaround in north Minneapolis bringing us ideas.” If you’re looking for a banker with the resources and the n I am glad to hear about Richard Copeland’s plans to move his company, Thor Construction, to north Minneapolis (“Why Are So Few Businesses Located on understanding to help your business grow, talk to Cindy Carlson. Minneapolis’ North Side?” June). The private sector— not another government As Loren says, “We don’t need to look at other banks.” program or useless speech — can address poverty. Stop into any of the Western Bank offices in the Metro, and discover After 50 years of the federal government’s war on poverty, if we are still wait- banking, the Western way. Or go to Western-Bank.com. ing on them to help we are not thinking correctly. Folks in north Minneapolis need the same thing all people need—a good-paying job. Enough of the prom- ises of the nonprofits and foundations, which only help the board members and a few top employees. The one thing the state could do is help 15- to 18-year-old students be prepared for the real world, where they need to add value to any job they get. We should change the high school experience from taking useless classes to ones that offer job readiness. Good luck to Mr. Copeland. Joe Smith WB5209A Testimonial 4pt5625x10pt75.indd 1 7/29/15 8:38 AM JUNE 2016 tcbmag.com TWIN CITIES BUSINESS 7
PETER CROUSER One Cable at a Time Why is it taking three construction seasons to redesign Nicollet Mall? n The $50 million Nicollet Mall renovation project is entering its of the public realm . . . that will be a centerpiece for our city.” second summer, with a third summer of construction to come Frey shrugs off analogies to other construction projects next year. The pedestrian mall is out of commission, covered around the metro, such as the one-year rebuild of Hwy. 169 in construction equipment, earthen holes, and barriers. More from Golden Valley to Eden Prairie or the two-season rebuild St. Jude Medical agreed to sell itself than a few are grumbling about the modest project’s length and and widening of Hwy. 100, calling them “apples to lasagna” to Illinois-based Abbott Laboratories why it was staged to close the mall for three consecutive “patio comparisons. for $25 billion. Last year, St. Jude seasons,” when restaurant and bar patrons flock downtown to Downtown Council President Steve Cramer is confident that reported 18,000 global workers and enjoy the weather. the refreshed Nicollet Mall will make up for three summers of $5.54 billion in revenue. Difficulties obtaining bids for paving materials cost the project disarray. an additional summer, as its end date was moved from mid-2017 He says this summer the Downtown Improvement District will Carlson Companies announced its to end of next year. All the disruption to date has been to allow roll out signage that helps preview the final results as a reminder intention to sell its lodging businesses utilities to upgrade infrastructure under the street, and that phase of what all the dust and noise is in service to. to Chinese conglomerate HNA has to finish before the cosmetic changes to the mall begin. And Cramer says he believes that the two summers of utility Tourism Group. Terms were not “This isn’t your typical street re-do,” says Jacob Frey, City work helps future-proof the street. “Once it’s done,” he says, “we’ll disclosed, but Bloomberg estimated Council member for the Third Ward, which includes the northern have 25 years of peace.” At least until the city needs to tear up the the deal could be worth $2 billion. half of Nicollet Mall. “It tackles the guts, and it’s a massive overhaul street to add a proposed streetcar. —Andre Eggert 8 TWIN CITIES BUSINESS tcbmag.com JUNE 2016
ar Ye ice h t r v 29 Se of The Paper Chase Sure Stop Floor Safety “your fast and dependable solution to any slippery floors and steps” Star Tribune grows circulation of ad-based weekly. call 763 571-1769 We do lavatories and shower areas loading docks industrial wash areas machine tool cutting areas! www.surestop.com INDUSTRY EXPERTS 2545902_17956 4.5625x7.875 4c n The death knell for the newspaper business has been ringing for years. “Print is dead!” say the digital diehards. But the Star Tribune Media Co. is actually boosting the circulation of its free weekly StribExpress from 85,000 copies to 100,000 copies. Your neighbor first. StribExpress is six-page paper that serves as a binder of sorts for advertising: inserts, circulars and coupons provided to the newspaper by the advertiser. It Your banker next. launched in 2010 with a modest circulation of 20,000 copies. The articles in it are stories that have already appeared in the daily paper. Wells Fargo is now part of “It’s not going to be hard news,” says spokesman Steve Yaeger, noting the freebie Now Downtown East and is looking open . emphasizes “lifestyle, food, entertainment and human interest stories.” e. S forward to getting to know you. Av While many might see StribExpress as a throwaway, Yaeger notes that it’s only S. 3 th rd Right in your neighborhood, you Fif delivered to people who request it, an important selling point for advertisers. Paul St. Kasbohm, chief revenue officer for Star Tribune, says StribExpress was created in can enjoy one-stop convenience for S. 4 direct response to advertisers who wanted to reach more homes in certain zip codes th St. financial guidance and services, than the newspaper delivers papers to. from managing daily expenses and S. e. ve. Av Kasbohm says it’s evidence that old-school print still works. “Preprints continue S. 5 saving for your child’s education, dA k th Par n to be one of the most effective and utilized advertising vehicles in terms of driving St. to keeping your retirement goals rtla Po shopping behavior,” he says, and notes that StribExpress is tailored to a specific on track. Come see us for your audience: “the female decision-maker of the household.” complimentary financial review Downtown East StribExpress is hardly the only non-daily in the company’s 12-publication niche 600 S. Fourth St. and let’s have a conversation portfolio. It includes Homes magazine and The Good Life, a quarterly aimed at seniors. 612-478-3220 about your financial goals. Since 2004, the paper has also published Twin Cities Values, a free four-page weekly designed to house advertising inserts and circulars, with circulation of about a Monday – Friday Please stop by and see us soon — half-million copies. It is delivered en masse by mail and newspaper carriers to non- 9:00 a.m. – 6:00 p.m. Saturday we’re on your way. newspaper subscribers; customers have to “opt out” by telling the newspaper to stop delivery. 9:30 a.m. – 2:00 p.m The privately held company does not disclose revenue. Billionaire Glen Taylor bought the company in 2014. The following year the newspaper acquired City Pages, which distributes 50,000 free copies every week—half the circulation of StribExpress. In-mid April, the company announced it was investing in an upgrade of its printing plant in the North Loop. Says Kasbohm: “$5 million is a lot of money for us. I think you wellsfargo.com can read that appropriately as a signal that print is important to us.” © 2016 Wells Fargo Bank, N.A. All rights reserved. Member FDIC. (2545902_17956) —Burl Gilyard 2545902_17956 4.5625x7.875 4c.indd 1 4/26/16 10:44 PM JUNE 2016 tcbmag.com TWIN CITIES BUSINESS 9
2008 founded 1 location 23 employees (5 managers, 18 dog handlers) 32,150 dog visits in 2015 (a multi-night stay would be considered one visit) 1: 12–15 staff-to-dog ratio during the day 110 daytime dog capacity FRESH COAST COLLECTIVE 75 overnight dog capacity 11,000 COMPETITIVE EDGE indoor square footage 3,500 Dog Day Care outdoor square footage 11 An independent stays the course as the big boxers move in. webcams n At Pampered Pooch Playground in St. “You go to some of the other places, and its workers’ compensation insurance Louis Park, dog day care reservations there are flat-screen TVs in some of the premium would triple if it did. RATES routinely fill up two to three days in dogs’ rooms,” says Miller. “We’d much But, bully breeds or not, fights are $6/hour or $30/day advance—sometimes weeks in advance rather put money into the staff or new play inevitable. “It’s like kids,” says Miller. “You (multi-day discounts) before heavy travel periods. equipment for the dogs.” see one dog picking on another dog, well, $43–$61/night Co-owner Keith Miller says his day Most dogs attend day care at eventually somebody’s going to snap. So (discounts for 10+ nights) care offers an above-average ratio of Pampered Pooch two to three days a week. it’s trying to manage that, and I think that staff to dogs and services like proprietary “We try to talk people out of [coming] every comes down to having enough people reservations software and app, which show day, only because that becomes hard on in the rooms to do it.” It also means vacancies in real time and allow clients to the dog,” says Miller, who notes that as a occasionally having to kick out dogs that OVERHEAD, BY RANK book without having to call or wait for an larger day care, Pampered Pooch is best show aggression. Labor/payroll (52% of total email confirmation. Miller says the software suited to active, playful pups. While Minnesota doesn’t regulate dog expenditures) is also an enormous time-saver for the staff: Dogs can play in one of three rooms day cares, Pampered Pooch is a member Rent “Before, we were spending three hours based on the dog’s size, from 6:30 a.m. to of the Twin Cities Dog Daycare Association, Taxes a day responding to emails and putting 7 p.m. Those who stay overnight sleep in a group of independent day cares working reservations in.” the same rooms they play in, so as not to to set standards of care locally by following When Miller and his wife, Patrycia, introduce new sounds or smells at bedtime. the regulations currently in place in other RESERVATIONS opened Pampered Pooch eight years While 60 percent of Pampered states. 75% ago, the local dog day care market was Pooch’s revenue comes from overnight After researching a second location, booked online or via app burgeoning. Today the market is saturated, stays, which are typically multiple nights, the Millers thought it might cannibalize they say, particularly in the western and Miller says having the day care helps build business at the original. So to diversify and 25% southern suburbs, and franchises like overnight bookings. The biggest risk for dog expand, in 2011 they started the dog-wash email or phone Camp Bow Wow and pet store chains Petco day cares is injury. To that end, Pampered chain Bubbly Paws, which has now grown and PetSmart have started to corporatize Pooch doesn’t allow “bully breeds,” such as to three locations. —Megan Wiley a niche pioneered by independent owners. pit bulls and chow chows, in part because 10 TWIN CITIES BUSINESS tcbmag.com JUNE 2016
A Price for Farmers’ Data Farmobile has figured out a source of income for farmers that isn’t dependent on the weather. n Jason Tatge isn’t a farm kid. He grew sell their information. When a transaction up in Plymouth, but he’s spent much of this occurs, the farmer and Farmobile split the spring traveling around rural Minnesota to proceeds 50-50. sign up farmers for his Farmobile Data Store The Data Store is being developed this program. At a time when crop prices are low, year in Minnesota, and Tatge hopes to list Tatge is offering at least $2 an acre to farmers 250,000 acres of state farmland in the willing to collect data on their planting choices, program. Participating farmers attach orange fertilizer applications and crop yields. passive uplink connection (PUC) devices to Tatge, CEO and co-founder of Kansas- their tractors and combines to collect data. It early adopter to the Farmobile program economics and started his career as a grain based Farmobile, says fertilizer and seed is translated into electronic field records. because he was familiar with a previous trader for Pillsbury, has raised $5.5 million companies and other for-profit businesses Bob Swedberg, who farms about 2,000 Tatge enterprise. in venture capital for Farmobile. He now has will pay for accurate and timely data about acres outside of Owatonna, is among the From 2002 to 2013, Tatge was CEO of more than 1,000 PUC devices in the field. farm operations. Farmobile has developed farmers taking part in the Farmobile launch Farms Technology LLC, which developed a Building sound relationships with farmers is technology to gather the data and store it. phase. “There are a lot of people who want dynamic pricing platform that allowed farmers crucial. “These guys appreciate the fact that What’s novel about Farmobile’s approach to know what I planted and where I planted and grain buyers to trade grain online. The we are trying to create a revenue stream for is that the data remain “farmer-owned and it,” Swedberg says. “It would be nice to be company was sold to DuPont Pioneer. them,” Tatge says. “Everybody wants to sell controlled,” Tatge says. The Farmobile Data compensated for that.” Swedberg is a corn Tatge, who graduated from Gustavus the farmer something, but the farmer has Store serves up options for the farmers to and soybean farmer who agreed to be an Adolphus with a degree in financial always owned the risk.” —Liz Fedor Set big goals. We’ll help you achieve them. We blend a full suite of loans, leases and lines of credit with the proven advice of experienced professionals who will be with you every step of the way. Turn your dream into a reality by contacting a banker today at AnchorLink.com. FINANCING | CASH MANAGEMENT | SBA | MORTGAGE | PRIVATE BANKING AnchorLink.com I Member FDIC | Equal Housing Lender | ©2016 Anchor Bank, N.A. Ad_Print_TCBiz_BigDreams_01_2016.indd 1 1/13/2016 1:16:30 PM JUNE 2016 tcbmag.com TWIN CITIES BUSINESS 11
A Smashing Startup How one business hopes to morph Minnesota passive-aggressiveness into a destructive business. n Rather than performing yoga or pouring a and a booking fee let you smash it in her cold one, Theresa Purcell has long taken a more space. “Although that doesn’t necessarily destructive approach to blowing off some steam. mean you can come wheel your old Since 2001, when she began attending the refrigerator in on a dolly,” she adds. University of Minnesota, stress relief often came in Purcell isn’t a pioneer of the “you the form of pulverizing old tube TVs or dinnerware buy it, you break it” business. Sarah’s Smash Shack Village in Brooklyn Center and St. Paul electronics with a sledgehammer. in San Diego (now defunct) was the first to try it in recycler Tech Dump are providing Purcell a “I was a pretty strait-laced kid, but also an angry 2008. Later attempts, such as the Anger Room in no-cost supply line to a deep reservoir of junk. kid,” she says, “so I’d smash the hell out of whatever, Dallas or The Smash Shack in Jacksonville, N.C., She even has plans to take the Break Room to and it’d feel incredible.” A decade and a half later, have managed to stay afloat off of people’s wild downtown Minneapolis in the style of a food truck. Purcell quit her job at internet marketing agency Irish side. The Break Room will open in St. Paul’s Midway “That way, people can come down from their Titan to offer aggressive stress relief for a price. neighborhood this summer as part of a franchise desk and pay for 5 to 10 minutes of smashing,” she At her soon-to-open store, the Break Room agreement with the Rage Room, a similar operation says. Even though Minnesotans are legendary for (breakroommn.com), discarded chairs ($15), inkjet in Toronto. “For a one-time franchise fee [of $500],” being passive-aggressive and keeping a tight lid on printers small and large ($15 to $45), stacks of plates Purcell says, “they’re going to help me promote, be negative feelings, Purcell is confident her business ($5) and more meet the same shattering fate. Even there for startup advice, legal advice and get me will find plenty of takers. “I don’t claim that this is cars ($250 and up) are on offer. If spring cleaning through the hiccups and growing pains.” therapy or a way to release your aggression,” she has uncovered a box of unwanted breakables, $10 Partnerships with thrift store Arc’s Value says. “It’s just fun.” —Sam Schaust DID YOU KNOW? Clayton D. Halunen, We fight for the Managing Partner underdog. We live by this simple, straightforward philosophy. For just $2.45 you can provide The heroics of whistleblowers and those treated unfairly in a meal to someone living in the workplace inspire us to poverty, for $24.45 you can feed a child for ten days. be smarter, better, and more tenacious. I learned about corporate mistreatment of workers when I was a kid in northern Minnesota. As an adult, it has been my personal and professional mission to do something about it. LET’S TAKE A STAND PLEASE HELP Visit cctwincities.org or call 612-204-8374 612.605.4098 HALUNENLAW.COM Double your impact! A generous donor will match gifts in June. 12 TWIN CITIES BUSINESS tcbmag.com JUNE 2016
Take My Boxers, Please Mulberrys wants to do your laundry. All of it. n A hard-working and frugal midwesterner revenue with alterations, wedding gown can always justify sending a suit or dress to the cleaning and preservation, shoe shine cleaners. But soiled undergarments? and repair leather and cleaning making Since its inception in 2009, Mulberrys up the rest.) Laundry is priced $2.99 per Cleaners has looked for ways to set itself apart. pound, as opposed to dry cleaning, which Cliffs Natural With the launch of home laundry service this is priced by quantity and type. app takes an Uber approach, where interested Resources reported March, it offers a luxury once only available to The option of having laundry picked up within drivers input personal information, which then a Q1 profit and royalty or Kardashians. (A small amount of work an hour is currently only available to those in the allows them access to a list of pickup and delivery announced plans that can be delegated to an underling remains: Minneapolis area—with plans to expand to St. orders. “In the next few months we will be able to reopen its two Customers sign up online or through Mulberrys’ Paul by the end of the year, assuming more- to send a notification when your driver is on their shuttered Minnesota mobile app, schedule a pickup time, gather the conservative St. Paulites are willing to turn over way,” says Miller. He adds that before a new taconite plants. laundry in a bag and select a return time.) their sweat socks to a stranger. driver is allowed to accept jobs, they must pass a CEO Dan Miller aims to broaden his base with Mulberrys offers next-day delivery for laundry background check. the new service. “We hope to expand our reach to a service, but “our goal in the next few months will Laundry isn’t the only thing on Mulberrys’ younger clientele. People are getting used to having allow our clients to schedule pickup at breakfast,” agenda; the company is set to expand to Los what they want, when they want it, on demand.” says Miller, “and have their clothes ready by the Angeles later this year. –Kate LeRette Miller’s goal is to do 10 percent of sales in time they are home from work.” laundry by the end of the year. (Dry cleaning While eight staff drivers do majority of the currently accounts for 85 percent of Mulberrys’ pickup and delivery, the Mulberrys Driver mobile New Space or Upgrading an Existing Space? 1976-2016 7910 State Highway 55 Collaboration and Conference, Training Video Walls and Rockford, MN 55373 Huddle Spaces and Boardrooms Marketing Displays 763-477-6931 • 800-362-3674 Contact EPA for a free evaluation and consultation www.epaaudio.com of your new or existing space Your Space... 763-477-6931 | 800-362-3674 Our Technology epastaff@epaaudio.com Twin Cities Business.indd 1 4/25/16 10:20:30 AM JUNE 2016 tcbmag.com TWIN CITIES BUSINESS 13
A&E by Tad Simons From the editors of Paul Simon South Pacific n Simon’s 13th album, Stranger to n Artistic director Joseph Haj’s first original Stranger, is released June 3, and this production at the Guthrie’s helm is Rodgers and Hammerstein’s two-night Orpheum stand will be one of the classic musical about life on an island military outpost during World first in support of the new effort. Though War II. The trend in recent years has been to dial back the camp songs on the new album will get a chance and allow the show’s more serious themes—namely, racism and to breathe, the legend never leaves his war—to come through. Haj’s approach remains to be seen, but he audiences disappointed. How could he? has said that those themes are what continue to make the musical Nobody has a deeper well of hits to draw relevant today. That, and all those classic songs. from, and his devoted, albeit aging, fan base June 18-Aug. 28, Guthrie Theater, Mpls., still has plenty of adoration to spare. 612-377-2224, guthrietheater.org June 14-15, Orpheum Theatre, Mpls., 612-339-7007, hennepintheatretrust.org BLM, Contempo Physical Dance Florence and the Machine n Black Label Movement and n After blanketing Europe, South America Contempo Physical Dance are BILL CAMERON and Australia, Florence Welch is bringing two of the Twin Cities’ most her How Beautiful tour back to the U.S. for dynamic and athletic dance a flurry of shows into mid-summer. It’s only companies. The companies join been a couple of years since her ecstatic forces here for the first time to present an evening of dance that but relatively humble show at the Minnesota includes two world premieres. One is a duet between respective Zoo, but now F&M is a full-fledged arena artistic directors Carl Flink and Marciano Silva dos Santos; the act. She’s more energetic and anguished other is an ensemble piece that combines the considerable skills than ever, and when it really gets cranking, of both troupes. The program will also include a highlight from her band truly is a remarkable machine. each company’s repertoire. June 2, Xcel Energy Center, St. Paul, June 17-25, Cowles Center, Mpls., 651-726-8240, xcelenergycenter.com 612-206-3600, thecowlescenter.org For businesses that just need to get down to business. You need to stay on top of your goals. We want to help. Our business banking experts will prepare you for what’s ahead. Bremer.com 800-908-BANK (2265) Member FDIC. ©2016 Bremer Financial Corporation. All rights reserved. 14 TWIN CITIES BUSINESS tcbmag.com JUNE 2016
CONCIERGE Star treatment for VIP clients and guests. by Melinda Nelson On the Water When it’s summer in Minnesota, spend a memorable day on one of the Twin Cities’ beloved lakes and rivers. Lake Minnetonka n With 125 miles of lakeshore, dozens of bays, countless multimillion-dollar estates, and a handful of dockside restaurants for sunning, sipping mojitos and beautiful-people watching, Lake Lake Calhoun Minnetonka is always a good idea. To boat like you own it, join the Bay to Bay Boat Club (baytobayboatclub. com), where members can show up and drive off in a speedboat, runabout or deck boat. For all the fun without the commitment, half-day and full-day pontoon rentals and guided fishing tours are available. If your clients are the sporty type, head over to Tommy’s Tonka Trolley (tonkatrolley.com) at the picturesque Port of Excelsior. Tommy’s is command central, with kayaks and by the unassuming clubhouse on the stand-up paddleboards for rent. Once northeastern edge of Lake Calhoun. On you come off the lake, join the crowd for Wednesday evenings throughout the beer and burgers on the patio at Haskell’s summer, rent cruiser bikes from Wheel (haskellsport.com) on aptly named Water Fun Rentals (wheelfunren- Street in downtown Excelsior. tals.com) and watch C Fleet and Laser races as you circle Lake Nokomis the lake on its three-mile bike n Clients who live in cities where lakes path. Afterwards, repair to aren’t part of the collective urban birth- the patio at The Tin Fish (tin- right will be charmed by very accessible fishmn.com) for a cool glass Lake Nokomis, named after Hiawatha’s of wine, grilled mahi mahi, grandmother in the Longfellow poem. and stellar onion rings. Park at West Beach and head over to Wheel Fun Rentals (wheelfunrentals. Lake Waconia com) where you can channel the spirit of n If your clients ascribe to the Hiawatha in a canoe. For a more modern belief that a bad day fishing experience, get out on the water in a is better than a good day at kayak, pedal-boat or a stand-up paddle- the office, take them out to board. If the water’s too choppy for boat- Lake Waconia. Park at the ing, take a spin around the lake on a bike In Towne Marina (intowne- or a newfangled surrey and then head marina.com), where you can over to Sandcastle (sandcastlempls.com) fill your cooler with live bait for well-deserved Pabst Blue Ribbon tall and rent a fishing boat or boys and Nokomis hot dogs with coleslaw pontoon. Spend a day fishing and peppers. for muskie, largemouth bass, St. Croix River etc., and then head over to Lake Calhoun Lola’s Lakehouse (lolaslakehouse.com) St. Croix River nesota and Wisconsin shores, cross over n Clients who sail will be delighted by for dinner. Dock your boat, take a table on n For a dynamic day on the water, take to Hudson on the Wisconsin side. Take the historic Calhoun Yacht Club (lakec- the patio overlooking the water, and enjoy your clients out to “the river,” otherwise a table on the patio at Pier 500 (pier- alhoun.org), established in 1901 to pro- a pint of locally brewed beer, walleye cakes, known as the St. Croix. At the colorful fivehundred.com) and order a round of mote the very civilized pursuits of yacht Lola’s signature Asian-spiced chicken Beanie’s at Maui’s Landing (boatin- martinis and the signature “steak and and canoe racing, iceboating, tennis and wings and a spectacular summer sunset. gatbeanies.com) in Lakeland on the lake” platter of grilled top sirloin and other pleasures. Clients used to grand, co- Minnesota side, rent Jet-Skis by the hour, parmesan-crusted walleye before heading lonial-style yacht clubs may be charmed or fishing boats, pontoon boats and even back to Minnesota houseboats for long weekends or a week. After cruising past views of the Min- JUNE 2016 tcbmag.com TWIN CITIES BUSINESS 15
PLUGGED IN The best opportunities for networking this month. By Kate LeRette June 6 & 7 ACG MN Upper Midwest Capital Connection This Association for Corporate Growth event kicks off with a golf tournament, lawn bowling and an opening-night reception at Orchestra Hall, where attendees can network with more than 500 financial experts and leaders in a relaxed atmosphere. Day two consists of a panel discussion on creating a new investment environment, one-on-one meetings about acquisition opportunities and criteria, and a chance to meet and discuss growth and financing opportunities with several private equity firms. 7:30 a.m., tickets start at $350, Hyatt Regency Minneapolis, acg.org/minnesota/ June 4 MIA Gala 2016 Come togetherJoin with Mia supporters, community leaders and special guests for the Minneapolis Institute of Art’s annual black-tie gala. Guests will not only enjoy Mia’s displays of art, but also The evening includes a gourmet dinner a seated dinner with excellent wine and gourmet food, along with all the art on view. After dinner, enjoy music, entertainment and stunning visual displays at the museum’s popular summer party. 6 p.m., tickets start at $750, Minneapolis Institute of Art, Mpls., 612-870-3023, new.artsmia.org/gala-summer-party-2016 FAN CONNECTION People Places ZONE Being a Best Place to Work is about more than just cool amenities - it’s about finding and retaining the top talent in your industry. At Colliers International, we’ll work with you to find a space that not only helps your bottom line, but also keeps your employees engaged, productive, and happy. colliers.com/msp Local Expertise. Global Reach. Welsh partners with Colliers International for brokerage and real estate management services. Architecture • BrokerAge • cApitAl • construction • FAcility services • project mAnAgement • reAl estAte mAnAgement 16 TWIN CITIES BUSINESS tcbmag.com JUNE 2016
June 11 Northern Spark 2016 The theme for this year’s all-night art festival will focus on climate change. Explore how several artists address global climate challenges through video projections, performances and installations at various sites across the Twin Cities. The evening will SARAH BERNIE DANKS begin with a pre-festival launch party in the Mill Ruins Courtyard and an opening concert at the Convention Center, followed by late-night workshops, a dance performance and a shadow puppet show. Food trucks will be on-site throughout the night. CRAIG BARES PHOTOGRAPHY 7 p.m., $60-$250, Mill City Museum, Mpls. info@northern.lights.mn, 2016.northernspark.org June 24 MnSearch Summit Bringing together marketing and business professionals from around the Midwest, this June 11 one-day conference provides insights on 2016 Gala: Celebration of Korea topics such as SEO, paid search techniques, Join more than 300 community and business content marketing strategies and analytics leaders for Global Minnesota’s annual gala. This from numerous industry leaders. The day year’s outdoor celebration will highlight Korean will consist of three keynote speakers and a culture, with national cuisine and entertainment, variety of smaller sessions led by more than as well as Tour the World live and silent a dozen leaders and experts in the field. auctions. Funds from the evening will support 8:30 a.m., $359, Minneapolis Global Minnesota’s mission to help Minnesotans Convention Center, Mpls., live, work and lead globally through educational 612-567-2736 mnsearch.org/summit and cultural programs. 4:30 p.m., tickets start at $200, Long Lake, 612-626-2406, IAN PLANT globalminnesota.org/events/gala Rolene Owens Digital Signage Specialist Marco audio/video magic Marco’s innovative audio/video technology empowers customers to work smarter, collaborate easier and communicate with more impact. Talk about a competitive advantage. Learn more and get empowered at marconet.com. taking technology further marconet.com #mpowering JUNE 2016 tcbmag.com TWIN CITIES BUSINESS 17
tcbmag BEYOND THESE PAGES Thinking about your business is a big part of ours. PUT OUR TAILORED INSIGHTS TO WORK FOR YOU. To make confident decisions about the future, middle market leaders need a different kind of advisor. One who starts by understanding where you want to go and then brings the ideas and insights of an experienced global team to help get you there. Experience the power of being understood. Women in Corporate Leadership Experience RSM. More than 400 people attended TCB’s fifth-annual Women in Corporate Leadership luncheon at the Golden Valley Country Club on April 13. Pictured above from left are rsm us.com panelists Corie Barry, chief strategic growth officer, Best Buy; Nancy Dahl, president and COO, Tastefully Simple; Gina Kastel, partner and management board member, Faegre Baker Daniels; and Deborah Koland, business strategist and researcher. Today’s News RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax and consulting firms. Visit rsmus.com/aboutus for more information regarding RSM US LLP and RSM International. AP-CN-ALL-ALL-0116 Statewide news and perspective on business-related expansions, shakeups, successes, wrongdoings and more. Go online to: tcbmag.com Life Style The best places to take your VIP guests, most significant networking opportunities in the month ahead, how to boost your personal brand Minnesota-style, and more. Go online to: tcbmag.com/Life-Style Events Join us June 15 for our annual CFO discussion on today’s most significant challenges and opportunities including in the areas of earnings improvements, cyber-security and strategic planning. Panelists will be Steve Fray, Jack Link’s Beef Jerky; Ann Gugino, Patterson Cos.; Alec Mahmood, Prime Therapeutics; Successful leaders often talk about the importance and Tim Skidmore, CHS Inc. Nicollet Island Pavilion, 3 p.m. to 6 p.m. of having great mentors, but we rarely hear those To register, go online to: tcbmag.com/CFO16 mentors’ stories. Join us on August 17 as we honor E-newsletters five marvelous mentors who have helped others Catch the latest business news—and explore what it means—every become successful Minnesota business leaders. Tuesday and Thursday in Briefcase. And our monthly Minnesota Small Business e-newsletter, Headway, provides features, tips and insights SAVE THE DATE! for small businesses across the state. To sign up, go online to: tcbmag.com/E-Newsletters August 17, 2016 // Nicollet Island Pavilion Register today at tcbmag.com/mentors16 On the Air Tune in to 830 WCCO-AM every Monday at 10:35 a.m. to hear TCB’s @tcbmag #TCBMentorAwards take on the week’s top business and economic news and trends; and KARE 11 every Thursday at 11 a.m., for perspective on the state’s most Presented By: Presenting Sponsor: significant business developments. Go online to: http://kare11.tv/1YWnvqg Social Media Event Sponsor: Venue Sponsor: Join us as we engage with others through … Twitter: @TCBmag | Facebook: facebook.com/twincitiesbusiness LinkedIn: linkedin.com/company/twin-cities-business YouTube: tcbmagvideos 18 TWIN CITIES BUSINESS tcbmag.com JUNE 2016
Your power Off-Site Meetings Stay loose, but don’t lose decorum. source for brilliant P uerto Rico, London, Hilton Head . . . those are some of the destinations you may find for career advancement and lateral moves within a company,” says Barclay, who advises that you avoid hanging business yourself in for an off-site company meeting or incentive trip. Perhaps your out with your immediate coworkers. outcomes. PERSONAL BRAND organization books at a less glamorous Handshakes by Roshini Rajkumar locale. Regardless, leaving the office and other greetings doesn’t mean leaving decorum and Once you approach people for vari- professionalism behind. Here are some ous conversations, understand and thoughts on how to project your brand employ handshake basics. Barclay says to make these events work for you. don’t be a bone-crusher, but suggests a firm handshake, “connecting at the Pack for success soft fleshy area between the thumb In the wardrobe arena, “less and forefinger, and have three pumps, is more” takes you far. Try all while maintaining eye contact.” to pack items that easily Getting past the handshake is just the transition from day into beginning, though. night. “Choose colors that make you radiate and avoid Make merry, but not too merry distractions,” says image Off-sites lead to many opportuni- consultant Joyce Rosenblad ties to eat and drink with immediate of Minneapolis-based True colleagues as well as others around the The staffing and You Consulting. She sug- company, plus vendors and clients. gests leaving fashion glasses or acces- Alcohol is typically a big part of these consulting super sories behind because they take away gatherings. “Remember this is still a connectors. from your true essence. business function so avoid excessive For women, Rosenblad’s must- drinking, off-color jokes about politics haves include a pencil skirt in a or sex, and bringing uninvited guests,” We help you embrace change so breathable fabric and a color you love, stresses Barclay. a skinny pant or go-to trouser, a jacket I can’t emphasize enough that all the in a flexible fabric and a couple great years you’ve taken to build your brand your business can All the years mixable accessories. For gentlemen, Rosenblad says you and grow credibility within the organiza- tion can be wiped out in one night of evolve. you’ve taken can’t go wrong with flat-front with drunken folly. Have fun, but proceed to build your no cuffs, a jacket or suit, a couple nice with discipline within your limits. brand and grow shirts and ties, and one or two pairs credibility within of shorts if you are in warmer climes. Post-trip debrief the organization And men aren’t immune to a woman’s A successful off-site meeting may lead can be wiped out penchant for shoes. Pack a solid pair of to new work once you return to the dress shoes plus one pair of great casual office. Use time during your trip home in one night of Let’s get solving. shoes and a pair of sandals, if weather- to make to-do lists. Does someone drunken folly. appropriate. “Everything should feel want an example of your latest win or like part of who you are and not a perhaps a part of your portfolio that uniform,” reminds Rosenblad. If you could lead to other projects for you are ever in doubt about attire, check and your team? Whatever the request, with the trip planner or with colleagues jot it down so you’re poised to produce See how we can help. who have been to this locale before. soon after you return. Have fun and make your next off- Watch our video at Plan for face time site great for your brand. tcbmag Is there a VIP or department head salollc.com/solving you’d like to meet? Etiquette coach Roshini Rajkumar is a personal brand Laura Barclay of Civility & Etiquette strategist and presence engineer. She is FINANCE Centre of Minneapolis and Tampa host of News and Views with Roshini ACCOUNTING suggests you plan ahead for this op- Rajkumar on WCCO Radio and author HUMAN RESOURCES portunity and make your move at a re- of Communicate That! For additional CHICAGO & MINNEAPOLIS ception or meal. Stay professional but communication tips, visit Communica- use this lower-stress setting to boost teThatBook.com. Interface with Roshini at your brand within other parts of the roshini@roshinigroup.com. © 2016 Salo company. “Networking can be critical JUNE 2016 tcbmag.com TWIN CITIES BUSINESS 19
HEALTH BEAT News, trends and analysis about Minnesota’s health care industry Insulin Prices are Shooting Up Mayo Clinic Bets on a Gut Feeling n Eagan-based Prime Therapeutics is reporting that insulin for the patients who were studied. The study analyzed 4 million costs for patients with diabetes increased 80 percent over of its 26 million members located throughout the United States. n The teeming microbial world that is the human gut—in four-and-a-half years. A separate study found that insulin use Diabetes is the seventh leading cause of death in the addition to being rather disgusting to think about— among diabetic patients has spiked 50 percent over the same United States, according to the Centers for Disease Control. traditionally hasn’t held much interest for researchers period, from January 2011 through June 2015. Nearly one in ten Americans is estimated to have diabetes. A seeking new ways to treat disease. The patent for Lantus, which has been the most 2012 study from the American Diabetes Association on the But that is quickly changing as the Mayo Clinic and the commonly used, long-acting insulin, expired in February economic costs of the disease estimated that a patient with pharmaceutical industry continue a pattern of ever-bigger 2015, which brings lower-cost generic options to the market. diabetes pays 2.3 times more for medical expenses than venture capital investments into But the debut of one of those new drugs, Basaglar, has been someone who does not have diabetes. a growing coterie of biotech pushed to December 2016, per the settlement in a patent Owned by 13 nonprofit Blue Cross and Blue Shield companies at the cutting edge infringement lawsuit. plans, Prime Therapeutics is pharmacy benefits manager for of microbiome research, which Prime Therapeutics also found that the cost of all drugs for customers including health plans, employers and government some are actually calling the next diabetes increased 168 percent during the same time period programs including Medicare and Medicaid. —Burl Gilyard big thing in biotech. These firms are promising to corral the nasty herds of gut bacteria into the fight against illness, starting with inflammatory bowel disease, obesity, HCMC Reaches Across Town diabetes and colorectal cancer. One such company is San Francisco-based Second Genome, which first became a With North Loop Clinic Mayo Clinic Ventures portfolio company in 2014 as part of a clinical research collaboration. In April, it was announced Mayo extended its venture stake in Second Genome as n Hennepin County Medical Center plans to open a 7,660-square-foot clinic and pharmacy in the burgeoning North Loop part of a $42.6 million Series B financing round led by neighborhood, where it will offer general care services to treat illnesses such as a common cold, along with access to Big Pharma giants Pfizer and Roche. The biotech firm chiropractic care, acupuncture, nutrition and fitness programming. previously raised a total of about $12 million from investors, HCMC’s move into the North Loop is not the hospital’s only downtown Minneapolis expansion in the works. Construction including Advanced Technology Ventures, Morgenthaler recently began on its new 377,000-square-foot ambulatory clinic and surgery center on the 700 block of South 8th Street. That Ventures and Seraph Group. $220 million care center is expected to open January 2018. Second Genome’s product is a platform that The North Loop clinic is expected to open later this year. It will be located on the first floor of the TractorWorks building, “combines genomics technologies, computational biology, a popular office space that has attracted a number of new tenants recently, including logistics company C.H. Robinson and and phenotypic screening” to allow researchers to develop marketing firm FLM+. —Sam Schaust drugs targeting the secreted functional proteins, peptides and metabolites of various gut microbes that are suspected Before Surgery, Print and Practice of playing “a causal role in human disease and wellness.” The Second Genome investment from Mayo, Pfizer, Roche and others is one of the biggest so far in the micobiome field, and is being seen as further evidence n In the medical industry, 3D printing is no longer limited from CT and MRI scans was important in the the sector is gaining traction – indeed, it is being hailed by to patching hearts and reconstructing lost or broken teeth. planning processes in these complex surgeries. some as “the next big thing” in biotech. It’s revolutionizing the way surgeons tackle complicated The conjoined twins case involved five surgical Mayo’s terms with Second Genome call for the operations, and the practice of simulating surgeries with disciplines and hundreds of people observing the company to identify areas where the microbiome has a anatomically correct, patient-specific models is becoming surgery. Since that time, the technology has been potential role in fighting disease, and then work with Mayo a tactic widely adopted by medical professionals at Mayo used by several other other surgical specialties. clinicians specializing in each of the designated disease Clinic’s Rochester campus. TCB recently conducted a Q&A with Mayo experts on areas. So far, Mayo’s Center for Individualized Medicine The use of this technology gained steam about eight how this technology is creating a paradigm shift in surgical says it is collaborating with Second Genome in areas such years ago, when 3D models were made to prepare for the preparation, cost controls and patient awareness before as irritable bowel disease, obesity/metabolic disease and separation of twins conjoined at the liver and chest. Mayo going under the scalpel. It’s available online at http://bit. surgery in obese patients with and without Type 2 diabetes. quickly realized the accurate representation of data taken ly/1NWUGJO). —Don Jacobson 20 TWIN CITIES BUSINESS tcbmag.com JUNE 2016
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