35c february / march

Green Global Horizons: Selling their tale I Life is a stage for Owatonna mortician

FEBRUARY/MARCH 2009CCommerce along the I-35 Corridor35

Interstate appealSharon Broin and Ariel Preferred have grand plans for Preferred Outlets at Medford

Bucking the trend: Noble RV has seen growth despite economic woes.

Hard times: With auto sales down, I-35 corridor dealer-ships try to hang on.

35C Business Magazine • P.O. Box 537 • Northfield, MN 55057

35C cover (Feb. 2009).indd 1 1/21/09 3:28:52 PM

2 FEBRUARY/MARCH 2009 35C 35Cbusiness.com

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DECEMBER 2008/JANUARY 2009 35C 35Cbusiness.com 3

FEBRUARY/MARCH 2009 35C 35Cbusiness.com 3

6 Banking on outdoor fun

Sharon Broin unveils Ariel Preferred’s plans for transform-ing the Medford outlets.

12 Riding the storm outArea auto dealerships are doing their best to ride out the worst auto sales crisis in years.

22 A very green taleJerry and David Behr think their idea of turning plastic bottles into baseball caps will take off.

Cover story

Since opening its doors in 2006, Noble RV has been bucking the national trend in RV sales.

16

s

Volume 1, Issue 4Copyright © 35C 2009Published Feb./March 2009 by: I-35 Target Media, P.O. Box 537, Northfield, MN 55057 / 507-645-1136Send releases and story ideas to: Jerry Smith at 35C Business Magazine, [email protected]

Publisher: Sam GettSales Director: Julie Frazier Associate Editor: Jerry Smith Account Executive: Machelle KendrickGraphic Designer: Catherine Roberts

Contributing writer: Sue Wold (Minnesota WorkForce Center)

Cover PhotoAriel Preferred Retail Group hired shopping center development expert Sharon Broin to transform Preferred Outlets of Medford into a thriving center. (Photo by Thom Caya)

About Us

Departments4 35Commentary5 35Confab10 35Catalyst 11 35Commendation21 35Culinary26-27 35Chamber28 35Construction29 35Commercial Directory30-31 35Charitable

31 Stage savvy35Caricature: Owatonna’s Tim Thomas finds acting a diversion from his job as a mortician.

Contents35

35C page 3 (Feb. 2009).indd 1 1/21/09 3:41:38 PM


No matter what the economy, mak-ing the right connections can help your business grow.

I am a Business Services Specialist, one of the Minnesota Department of Employment and Economic Development’s pros on the ground that can connect you with the many programs and services available to help busi-nesses succeed.

Here’s how DEED can help:Business development

The Small Business Assistance Office is the point of contact for individuals and firms with questions about start-ups, business operations or expansions.

Technical assistance, a wealth of informa-tion and 13 publications are available at no cost to help with tax, regulatory and busi-ness structure questions. Two of the SBAO’s most popular publications are “A Guide to Starting a Business in Minnesota” and “An Employer’s Guide to Employment Law Issues in Minnesota.”

For more information, call 1-800-310-8323 or visit www.positivelyminnesota.com/publications/index.htm#bus.

A network of Small Business Development Centers (call 1-800-658-2354 to contact a Rice County SBDC) offer one-on-one coun-seling www.mnsbdc.com/counseling.htm) on business planning, financing, market-ing, regulations and other areas of business management and operations.

Workshops and training programs that cut across industry lines; loan packaging;

and access to business information are other services offered. For workshop information, visit www.mnsbdc.com/workshops.htm.

Minnesota Trade Office offers export as-sistance to businesses new to exporting and to established international companies, edu-cation and training services, export counsel-ing, and market research and consultation. Recruiting strategies

Need to find the right local talent to launch your business toward prosperity? Check out WorkForce Centers and Minneso-taWorks.net.

Minnesota WorkForce Centers — there are 47 statewide — are bricks-and-mortar “storefronts” that help people connect with your employment opportunities.

Staff can work with you to hold job fairs, screen applicants, provide office space for interviews and orientations, and help design interview questions.

For the WorkForce Center closest to you, call 1-888-GET JOBS (1-888-438-5627) or visit www.mnwfc.org/field.

MinnesotaWorks.net, the state’s largest

online resume and job-matching system, uses cutting-edge technology to help con-nect employers and job seekers at no fee. That’s like having your own Human Re-sources expert on the job around the clock. For more information, visit www.Minnesota-Works.net.Financial tools

Work Opportunity Tax Credit is a federal tax credit for businesses that hire workers from certain targeted groups, including vet-erans, ex-felons, high-risk youth, and people with mental or physical disabilities.

Visit the WOTC Web site at www.positive-lyminnesota.com/wotc.Retention programs

A variety of services can help you increase retention of employees, such as job accom-modations, job coaching and workplace seminars. The Shared Work Program (www.positivelyminnesota.com/sharedwork/) allows you to divide available work hours among a group of employees instead of laying people off, which helps to maintain morale, produc-tivity and flexibility in the workplace.

For Shared Work Program information, call 651-296-0593, ext. 45583 or e-mail [email protected].

You can check out these and other DEED programs at www.PositivelyMinnesota.com.

— Sue Wold is a Business Services Specialist for the state. She can be reached at the Work-Force Center in Faribault at (507) 333-2082 or by email at [email protected].

Commentary35Helping businesses grow is DEED’s job

GuestColumnistSusan Wold

35C page 4 (Feb. 2009).indd 1 1/21/09 3:42:04 PM


?5 Takeaways from

Dr. Robert Hoffman

There aren’t too many business people in Southern Minnesota that believe

the I-35 Business Corridor isn’t poised for major growth.

Dr. Robert Hoffman isn’t in that small minority. In fact, the Vice President of Strategic Business, Education and Regional Partnerships at Minnesota State University, Mankato is leading the charge to bring higher education and businesses along I-35 together.

“I feel there is much more we can be,” says Hoffman, who is a part of the I-35 Alliance that is trying to make the partner-ship a reality. “There is no doubt post-sec-ondary education is critical in this partner-ship.”

Hoffman’s background in business and education make him a perfect catalyst to bring both groups together.

“We need to turn this into the Silicon Valley of Education,” Hoffman said. “We’re going to have the opportunity to have classes online and to bring our students into the real world at the same time.

“This is about how we can set the stage to provide growth opportunity and a more skilled workforce along the I-35 Business Corridor.”

Q: What is the I-35 Alliance?

It includes governmental units, business-es, educational institutions and anyone else interested in the economic develop-ment of the I-35 Corridor. Our mission is to identify, develop and/or enhance the potential opportunities that exist for part-nerships between colleges and universities and those entities that make up the I-35 Alliance. My role is to be the catalyst to bring communities and businesses along I-35 together so this region can prosper.

Q: When was the idea hatched for the I-35 Alliance?

It started several years ago and was driven by MnSCU. Everyone is convinced that the I-35 Corridor will have explosive growth in the next five to 10 years. In addition, the Global Economy is requiring

major changes to take place rapidly. We need to develop learning sites — within companies, communities or other areas — where there is interest or need. We must build in flexibility and convenience for the continuing learner, as there will be a higher level of skill required of the worker of tomorrow.

Q: What is the goal of the I-35 Al-liance?

To support and enhance future econom-ic development along the I-35 Corridor, including Northfield and Waseca. We want to connect knowledge to the real world and to play a significant role in the future growth. Plus, we need to be proactive in order that we can be prepared for the op-portunities that will be available.

Q: How will you achieve this?

By partnering with Riverland Commu-nity College, South Central College and Dakota County Technical College. The tremendous growth being anticipated will require that we combine our resources at Minnesota State University, Mankato with our three partners and with the many businesses in the area. We’ll definitely have to do things differently in the future in order to meet the needs of the area.

We are presently working with Sage, Federated, Viracon, Brown Printing, the Allina and Mayo Health Systems, Shat-tuck-St. Mary’s and several other start-up companies in order to gather the expertise necessary to partner with them. Plus, the I-35 and County 70 interchange in Lakeville will be a major growth area with business and retail, and we can be a contributing factor in that development too.

Finally, if we can work together and pool our areas of expertise, the result will be very positive for the area. Collaboration will be a key component in the success of the I-35 Corridor. We cannot be one city, one campus or one business anymore. With our Alliance, we have the momentum to develop and implement a plan that is not only innovative but successful.

1. We must connect knowl-edge to the real world.

2. The I-35 Corridor is poised for significant growth, and we must be ready to lead or to col-laborate and assist.

5. At the University, we edu-cate, we create knowledge and we disseminate how that can be applied. Consequently, we must make it easy and poten-tially profitable for the external community to partner with us.

4. Higher education must strive to be agile, competitive, adaptive and responsive in order to be a contributor in developing the solutions for tomorrow’s challenges.

3. The continuous learner of tomorrow will require flexibility and convenience.

Confab35 A chat with MSU, Mankato educator Bob Hoffman

“There will be a higher level of skill required of the worker of tomorrow.

35C page 5 (Feb. 2009).indd 1 1/21/09 3:42:48 PM

By JERRY SMITHAssociate Editor

A bad economy hasn’t swayed Mike and Pat Noble from their

quest of selling fun.In April 2006, the brothers opened

Noble RV Inc. in Owatonna with the idea of selling 110 recreational ve-hicles in the remaining nine months of the year. They did that and more, moving nearly 200 units and gross-ing $4.2 million.

Then in 2007, with the economy starting to tank and people begin-ning to tighten their grip on dis-posable income, Noble RV’s sales increased to 330 units for a total gross of $8.8 million. In doing so, the company’s growth that year bucked

the national trend and far exceeded the state average of less than 2 percent growth.

Not a bad start for a couple of guys who had limited knowledge of the recreational vehicle industry.

“There wasn’t an RV center in Owatonna and after researching the industry for a year and attending the RV national convention in Louisville (Ky.), we thought it was a business that we could be successful in,” said Mike Noble, who helped finance the opening with money he received from the 2003 sale of the successful Owatonna-based Retrofit Companies Inc. to its co-founder.

That two-year winning streak was in jeopardy the next year as all signs pointed to a terrible 2008 in the RV industry as the economy went into

a downward spiral. While the industry prognosticators were >>>


Bucking the trendDespite the horrible economy, Noble RV’s sales continue to rise

35C photo by Thom Caya

Pat and Mike Noble took a chance on the RV industry and have been pleased with sales.

35C page 6 (Feb. 2009).indd 1 1/21/09 3:45:01 PM



Pat and Mike Noble believe the more than $4 million in inventory they have on two lots along I-35 have helped the success of Noble RV, which was opened in April 2006.

>>> right about falling sales — RV motorized sales dropped 39.5 percent from the year before and RV towable sales were down 21.4 percent from 2007 — Noble RV somehow escaped the effects of a terrible economy.

In fact, the Nobles bucked the na-tional trend in 2008 despite skyrocket-ing gas prices and tighter credit as sales increased 15 percent to 379 units and a gross of just under $10 million. Lead-ing the way in sales were travel trailers and fifth-wheel trailers.

“It’s a lifestyle and there are many people who enjoy it,” Mike Noble said. “The bottom line is that this is their hobby, their form of entertainment.

“I think there will always be people with significant disposable income who will spend the money on RVs.”

That has certainly been the case na-tionwide as RV ownership has reached record levels, according to industry expert Dr. Richard Curtin, Director of Consumer Surveys at the University of Michigan. Curtin says approximately 8.2 million American households own an RV — a 16 percent increase since

2001 and a 64 percent gain since 1980. By 2010, he predicts that 8.5 million households will own RVs.

“It’s still the cheapest vacation,” Pat Noble said. “Even with gas prices soar-ing like they have, a family that owns an RV can still save money by camping instead of staying at hotels and eating out all of the time.”

According to PKF Consulting, an internationally known consulting firm with expertise in travel and tourism, “Typical RV family vacations are on average 26 percent to 74 percent less expensive than other types of vaca-tions.”

Because RV family vacations are cheaper, campground owners across the U.S. say RV reservations grew 5 percent to 15 percent in 2008. The online reservation system for private campgrounds in North America re-ported that online bookings were up 22 percent compared to 2007.

“Even in a tough economy people need to take vacations and get away,” Pat Noble said. “We’re here to help make that happen. We’re really selling fun here. It’s a want and not a need.”

Paving the way

While Noble RV’s location across I-35 from Cabela’s and a 10-acre lot adjacent to the outdoor outfitter has helped make this RV startup a success, the Nobles like to think there have been other factors involved.

“Our location has certainly helped, but our selection, quality, service and quality of our employees has been a big part of it as well,” Pat Noble said. “We work hard to get customers and to keep them. There aren’t too many people walking through our doors in this type of economy, so we work a little harder to find them ourselves. So far, it’s worked out pretty well.”

Mike Noble agrees, saying that because of the slower traffic, his sales people are on the phone contacting prospective buyers every day.

“We can sit here and wait for the business to come through the doors or we can bring them here,” he said. “You have to work hard and smart and hire the right people to be successful and that’s what we’ve done.” >>>

“Even in a tough economy, people need to take vacations and get away. ... We’re selling fun here.”— Pat Noble, co-owner of Noble RV in Owatonna

35C page 7 (Feb. 2009).indd 1 1/21/09 3:45:46 PM


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A look into the futureThe Nobles say they count

their blessings every day for the success they’ve had since opening in 2006. While they both agree that the success will continue, they sometimes find themselves waiting for the other shoe to drop.

“Right now, credit is at its worst and people are waiting for the economy to improve,” Mike Noble said. “I want to be optimistic, but I expect us to be down a bit over last year. We could see things slowing down the last part of the year in 2008. If people don’t have jobs, people won’t be buying

campers, it’s that simple.”Like many businesses along

the I-35 corridor, Noble RV has had to tighten its belt. Work-ing both harder and smarter and downscaling is a must in this type of economy, Mike Noble said. But it doesn’t mean you need to be less confident.

“No matter what I’ve done in life, failure is not an option,” Mike Noble said. That applies here, too. We’ll continue to do what we’ve been doing to remain successful. We’ve got great products, a great loca-tion and great people here. We’ll continue to do fine.” r


Travel trailers and fifth-wheel trailers have been the hottest sell-ers at Noble RV since the company opened in 2006.

35C page 8 (Feb. 2009).indd 1 1/22/09 4:41:13 PM


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Gift shops holding their own in shaky economyBy JERRY SMITHAssociate Editor

In an economy that has taken many small busi-nesses in Northfield with

it on its downward spiral, one business had its “best year ever.”

Monarch Gift Shop in down-town Northfield, which will celebrate its eighth anniversary in February, tweaked the way it did business and found even more success than it has had in its the first seven years.

“We found a great book called Strength Finder and after reading it and taking the tests, we started focusing on the strengths rather than the weaknesses of our business,” said Monarch store manager Gina Lovestrand. “We restruc-tured the way we did things and employees are doing what they are best at. They are much happier.”

In recent weeks, three

downtown businesses closed their doors, including Carleton College’s River City Books, Sweet Lou’s Waffle Bar and Café and Mr. Movies. Each cited the economy as the rea-son for closing.

Lovestrand believes the shop’s focus on inspiration and empowerment is another reason for the good year.

“In the last year, there was a lot of stress,” said Lovestrand, who cited natural stone jewelry and stones with symbolic mes-

sages as the top sellers. “I think inspiration and empowerment are what people needed. I think people took advantage of what we offered.”

Lovestrand believes the reason why small gift shops are doing so well in the current economy is because they offer unique purchases.

“This is good energy for Northfield,” she said. “My sense is that the bigger stores are suffering, but shops with unique gifts are doing pretty well. People want unique gifts and smaller shops can offer that.”

Small town, big successTucked away in the small

town of Blooming Prairie is a gift shop called “A Touch of Charm.”

In that small shop, not only can you find gifts, decorating ideas and home accents, you also can make all of your floral purchases in the full service

floral shop.In the current economic

downturn, “A Touch of Charm” held its own, match-ing sales from a year ago. For owner Leanne Hanson, that was a coup for the shop.

“That’s remarkable consider-ing the times,” she said. “We found success when other small businesses are closing their doors all around us and the pictures being painted about the economy are so bad.”

Hanson credits the shop’s success to the uniqueness of its gifts and something she calls “small town nice.”

“We make sure each custom-er gets full attention,” Hanson said. “Customer service is our top priority.”

Another plus is the full ser-vice floral business.

“Right now, we are the oldest flower shop in Steele County,” Hanson said. “We’ve weathered the storm.” r


Monarch’s sales staff, includ-ing Sara Wahl, are key in the Northfield gift shop’s success.

35C page 9 (Feb. 2009).indd 1 1/21/09 3:46:39 PM


4.

STEPPING UP IN FARIBAULT

One of the first friends Tami Schluter made when she moved to Farib-ault a year ago was Marie McCarthy.

The two were kindred spirits as Schluter and her husband Doug were just

opening Histor-ic Hutchinson House, and McCarthy and her husband Kerry were

in the midst of opening Sweet Spot Candies.

In early November, that friendship grew leaps and bounds when Schluter stepped up and organized a large movement to help cover two weeks worth of shifts at the candy store after the McCarthy’s son, Zack, was seriously injured in an auto accident.

“She needed us and we wanted to be there for her,” Schluter said of the group effort. “For a place like Sweet Spot to open, then have to close for two weeks, it might not have survived.”

2.

NORTHFIELD PLANNER

Jane Fenton wears many hats as the Director of Community Relations at Laura Baker Services in Northfield.

As a fundraiser for this nonprofit that helps disabled people develop life skills, Fenton takes the lead role in plan-ning the annual Laura Baker Golf Tournament and Gala.

“This is a fun part of my job,” Fenton said. “We’re successful because I have huge amounts of help from the community.”

Fenton’s planning expertise extends into her personal life as well. She is now helping to plan the 50th anniver-sary celebration of the Northfield Arts Guild.

“I’m very interested because I am in plays here and so are my two sons,” she said. “A lot of communities don’t have what we have so it’s nice to give back. It’s infectious.”

1.

WASECA’S AGAMBASSADOR

When talk turns to agri-culture in any setting, you can bet Dr. Ed Frederick tunes in.

As Chairman of the Board of Directors for FarmAmerica in Waseca, Frederick is involved in ag-

riculture nearly every day. But it goes deeper than that.

“It all goes back to my

passion in life, which is agriculture,” said Freder-ick, the founding and sole chancellor of the Univer-sity of Minnesota, Waseca from 1971-1990 when it closed its doors.

Frederick is an ambas-sador for The Minnesota Agricultural Interpretive Center (FarmAmerica) and has been on the board and involved as a volun-teer since 1978.

“FarmAmerica tells a whale of a story,” Frederick said. “We just celebrated our 30th an-niversary. I’m happy to be a part of it.”

3.

WORKING FOR OWATONNA

Doug Hughes is a huge advocate for Owatonna.

Hughes and his com-pany, Arise Group LLC, were instrumental in keeping Cybex Interna-tional in the city. With that decision, more than 250

jobs remained in Owatonna.

“Everybody benefitted from Cybex staying,” said

Hughes, who has been in Owatonna for 35 years.

Hughes and Arise Group also helped keep the Workforce Center and Sterling Drug in Owaton-na, working in harmony with the city planners.

“We’ve developed good relations with the city because we include their needs and objectives in our projects,” he said. “We’re a part of the three-legged stool: the devel-oper, the customer and the city, which unlocks the door. We try to make sure all three components work together.”

Catalyst35Four who are making things happen

along the I-35 business corridor

“Exploring the Intimate Landscape” exhibit by Frederick Somers will run through Feb. 7 at the NAG Gallery.

(NEW) 35C page 10 (Feb. 2009).in1 1 1/21/09 4:55:07 PM


Commendation35/Owatonna/

Riverland recognized as ‘Best Place to Work’

Riverland Community College, which has a campus in Owatonna, was recently recognized as one of the “Best Places to Work in Southeast Min-nesota” by Workforce Develop-ment Inc.

The purpose of the awards program is to recognize some of the best employers in the area and provide vital informa-tion to companies about the practices they use to attract and retain employees. Each company participating was required to complete a 40-question survey that allowed their employment practices to be analyzed by a Florida-based consulting firm.

Riverland was just one of two

participating organizations recognized in the “over 100 employees” category.

/Northfield/

Neuger promotes Hillemann, acquires Esse

Penelope Hillemann has been promoted to vice president of Neuger Communications Group, a full-service strategic communications firm special-izing in marketing and public relations.

Hillemann, who now holds the title of vice president and senior communications counselor, has been a member of the firm since 2004.

A graduate of Brown University in Providence, R.I., Hillemann holds a bachelor’s degree in psychology and received her

law degree from the University of Wisconsin Law School. She served as a lawyer in Milwaukee and a Web manager and com-munications associate at 89.3 WCAL.

• Neuger Communications Group recently announced the acquisition of Esse Advertis-ing, a Northfield advertising company headed by longtime Northfield resident Richard Esse.

Esse Advertising was founded in 1993.

A graduate of St. Olaf College, Esse began his communications career as the director of adver-tising for the Northfield News. After a successful tenure at the News, Esse launched his own business.

Esse lives in Northfield with his wife, Pam, and their college-age son, Alex.

/Waseca/

Mickelson resigns from Associated Lumber

Associated Lumber Marts, Inc. recently announced the res-ignation of its president, Bob Mickelson.

Mickelson has accepted a position as a Senior Project Manager for I&S Group, a multi-disciplined architecture and engineering firm with offices in Mankato and Faribault. Mickel-son plans to remain in Waseca and continue his involvement in the community.

Owners John Snow and Brad Wendland will assume Mickel-son’s duties.

Associated Lumber Marts has been doing business in Waseca and the surrounding area since 1962.

Recognizing individuals and companies who excel in business along the I-35 corridor

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Crisis modeBy JERRY SMITHAssociate Editor

After battening down the hatches, cutting the fat and hunkering

down, area car dealerships are finding now that only time will cure what ails the auto industry.

The industry ended 2008 with its worst sales in 16 years, and owners along the I-35 corridor say that all they

can do is wait out the current crisis.

“One thing cures it all — time,” said Rick Peterson, co-owner of the Waseca Chrysler Center. “As the flow of money returns, people will start buying again.”

As recession fears grew in December, sales for the U.S. auto market’s five largest manufacturers fell sharply (36 percent). Leading the way was Chrysler, which saw a 53

percent drop. Toyota sales fell 37 percent, Honda’s sales dipped 35 percent, Ford sales plummeted 32 percent and General Motors said its sales fell 31 percent.

Sales for the year weren’t much better, according to industry research firm Auto-data. U.S. sales totaled 13.24 million units in 2008, down 18 percent for the year and the fewest since 1992. >>>

“Without question, this by far has been the most difficult

year in the car busi-ness.”

— Rick Peterson, co-owner of

Waseca Chrysler Center

Local auto dealerships prepare to wait out industry wide sales woes

Because of the decline in sales, more than 900 of the 20,770 new car dealers in the U.S. went out of business in 2008. Among the closures were six Denny Hecker Automotive Group dealerships in Minnesota. Along the I-35 corridor, Countryside Motors in Waseca closed its doors in December, in part due to the economy.

“It’s a good time to get out of the business,” said Dick Arnold, who owned Countryside with his brother, Gary. “We’re not closing because we have to, we’re closing because it’s time. We’ve had 37 profitable years in the business and thought the timing was right to retire.”

Dealerships along I-35 and all over the country have seen hard times before, but many haven’t seen the likes of the current dip in sales in a long time.

“Without question, this by far has been the most difficult year in the car business,” said Peterson, who has been in the industry for 19 years. “It’s as bad as anybody has seen.”

While auto industry executives attributed the poor sales to the economic downturn — first the housing crisis, then the credit freeze — one local dealership owner says other factors were involved as well.

“It’s the perfect storm of troubles,” said Clancy Dokmo, owner of Dokmo Ford-Chrysler in Northfield. “We’ve all enjoyed the growth in our area the last few years, so the recent decline in construction has hit us hard. A lot of our customers aren’t our custom-ers anymore.”

Dokmo also blames the fluctuation in the cost of gasoline as another factor.“The cost of gasoline went up so high that it put the burden on everybody,” Dokmo said. “The energy meltdown was a big factor.

It certainly made the climate more challenging for car dealers.”With sharp declines in sales, consumer confidence at one of its lowest points in recent history and no end in sight to the down-

turn, U.S. automakers sought help from Congress to avoid financial collapse. In December, the U.S. government provided a $13.4 billion short-term loan to bail out the crippled U.S. auto industry and help assure that none were forced to file for bankruptcy.

The loan, drawn from the $700 billion rescue fund, provided General Motors with $9.4 billion and Chrysler LLC with $4 billion in December and January. An additional $4 billion may be available in February, according to the U.S. government.

Downturn changing habitsWhen Peterson sees a customer walk through the showroom doors, he’s not certain what he will get. Habits have changed, he

said. In good markets, people who liked a car usually bought the car.“Now, we find people come in who like a car, apply for a loan, get approved and then not buy the car,” Peterson said. “They just

can’t seem to pull the trigger. I’ve never seen it happen so much as it does now.”While Dokmo can’t wait for the crisis to take a turn for the better, if his 30 years in the business has taught him anything, it’s that

consumer buying habits are unpredictable.“Anybody who has the capacity to make large consumer purchases has to be cautious,” said Dokmo, who has been in Northfield

for 25 years. “People are shopping if they need a new car. But in the end, there’s never been a good time to buy something you don’t need.”

Used car sales surgeUsed car sales have been the mainstay of Harry Brown’s business for the past 42 years. With one of the biggest selections of used

cars in the region, the Faribault auto dealership has suffered less than others in the region.“Used car sales are up,” said Mike Brown, owner of Harry Brown’s. “The new car sales portion of the industry has dropped drasti-

cally, but we’ve seen steady business on the used car side.”Brown says that the other departments at his dealership in Faribault — service, parts, body, detail and car wash — have been do-

ing better than expected during the auto industry crisis. “The slowdown in new car sales has made it crucial that we tighten our belts,” Brown said. “A year ago we started the process of

consolidating our two locations under one roof and that has helped keep costs lower. It has also helped keep our other departments, including used cars, operating at higher levels.”

Customers of Dokmo Ford-Chrysler in Northfield will begin to see fewer new cars on the lot in the near future. That’s because Clancy Dokmo sees a future rise in used car sales.

“I see a stronger used car market in 2009 and beyond,” Dokmo said. “Manufacturers will reduce supply in the future and with that the incentives to buy new cars won’t last. We’re moving to purchase more newer used cars in anticipation of that so we can take care of our customers’ needs.”

Crystal ballMike Brown has been in the auto industry most of his life and is all too familiar with the ups and downs. While he knows he can’t

predict with certainty when the auto industry crisis will begin to ease, his educated guess is as good as anyone’s.“I think the first part of 2009 will be about the same as 2008,” Brown said of new car sales. “Past the second quarter this year,

we’re going to see an up-tick. I think we’re going to see a shortage of new cars and trucks and that will lead to a pent-up demand for new cars. I think you’ll see a nice surge both in new and used car sales.”

Mike Hamilton, general sales manager at Hursh Motors in Owatonna, believes consumer confidence will determine how quickly the auto industry woes will end.

He’s confident that Hursh Motors will weather the storm because the dealership has been in the same town for 50 years.“We’re going to ride it out. We’ve been here before,” Hamilton said. “You just have to keep inventory in control and think about

every expenditure and be smart.”Dokmo agrees.“If there is a positive here, it’s that the time is right to buy a car with all of the incentives and the inventory on hand at dealer-

35C page 12 (Feb. 2009).indd 1 1/21/09 3:47:45 PM


>>> Because of the decline in sales, more than 900 of the 20,770 new car dealers in the U.S. went out of business in 2008. Among the closures were six Denny Hecker Automotive Group dealerships in Minnesota. Along the I-35 corridor, Countryside Motors in Waseca closed its doors in December, in part due to the economy.

“It’s a good time to get out of the business,” said Dick Arnold, who owned Countryside with his brother, Gary. “We’re not closing because we have to, we’re closing because it’s time. We’ve had 37 profit-able years in the business and thought the timing was right to retire.”

Dealerships along I-35 and all over the country have seen hard times be-fore, but many haven’t seen the likes of the current dip in sales in a long time.

“Without question, this by far has been the most difficult year in the car busi-ness,” said Peterson, who has been in the industry for 19 years. “It’s as bad as anybody has seen.”

While auto industry executives attributed the poor sales to the economic downturn — first the hous-ing crisis, then the credit freeze — one local dealer-ship owner says other fac-tors were involved as well.

“It’s the perfect storm of troubles,” said Clancy Dokmo, owner of Dokmo Ford-Chrysler in Northfield. “We’ve all enjoyed the growth in our area the last few years, so the recent decline in construction has hit us hard. A lot of our cus-tomers aren’t our customers anymore.”

Dokmo also blames the fluctuation in the cost of gasoline as another factor.

“The cost of gasoline went up so high that it put the burden on everybody,” Dokmo said. “The energy

meltdown was a big factor. It certainly made the cli-mate more challenging for car dealers.”

With sharp declines in sales, consumer confidence at one of its lowest points in recent history and no end in sight to the downturn, U.S. automakers sought help from Congress to avoid financial collapse. In December, the U.S. govern-ment provided a $13.4 bil-lion short-term loan to bail out the crippled U.S. auto industry and help assure that none were forced to file for bankruptcy.

The loan, drawn from the $700 billion rescue fund, provided General Mo-tors with $9.4 billion and Chrysler LLC with $4 billion in December and January.

An additional $4 billion may be available in February, ac-cording to the U.S. govern-ment.

Economic woes changing habits

When Peterson sees a customer walk through the showroom doors, he’s not certain what he will get. Habits have changed, he said. In good markets, people who liked a car usu-ally bought the car.

“Now, we find people come in who like a car, ap-ply for a loan, get approved and then not buy the car,” Peterson said. “They just can’t seem to pull the trigger. I’ve never seen it happen so much as it does now.” >>>

Industry woes

With recession fears swirling, the auto industry saw one of its worst years in terms of sales in 16 years. A closer look reveals the cata-strophic decline in sales in 2008.• Chrysler sold 1.45 million units (a 30 percent de-crease from 2007)• GM sales to-taled just under 3 million (down 23 percent)• Ford sold nearly 2 million vehicles (down 21 percent)• Toyota sold 2.22 million vehicles (down 15 percent)• Honda’s sales totaled 1.43 mil-lion units (down 8 percent)

A bad December

The year ended with a thud as December sales of new cars, minivans and trucks fell 36 percent. Chrysler led the way.• Chrysler sales were off 53 per-cent• Toyota sales fell 37 percent• Honda sales dropped 35 per-cent• Ford sales dropped 32 per-cent• GM sales down 31 percent

— Autodata


Pat O’Connor, Service Manager at Waseca Chrysler Center, helps Dodge owner Mike Drabek with service. The Waseca business has seen an increase in service work since Country-side Motors closed its doors in December 2008.

35C page 13 (Feb. 2009).indd 1 1/21/09 3:49:01 PM


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>>> While Dokmo can’t wait for the crisis to take a turn for the better, if his 30 years in the business has taught him anything, it’s that consumer buying habits are unpredictable.

“Anybody who has the capacity to make large consumer purchases has to be cautious,” said Dokmo, who has been in Northfield for 25 years. “People are shop-ping if they need a new car. But in the end, there’s never been a good time to buy something you don’t need.”

Used car sales surgeUsed car sales have been the mainstay

of Harry Brown’s business for the past 42 years. With one of the biggest selections of used cars in the region, the Faribault auto dealership has suffered less than oth-ers in the region.

“Used car sales are up,” said Mike Brown, owner of Harry Brown’s. “The new car sales portion of the industry has dropped drastically, but we’ve seen steady business on the used car side.”

Brown says that the other departments at his dealership in Faribault — service, parts, body, detail and car wash — have been doing better than expected during the auto industry crisis.

“The slowdown in new car sales has made it crucial that we tighten our belts,” Brown said. “A year ago we started the process of consolidating our two locations under one roof and that has helped keep costs lower. It has also helped keep our

other departments, including used cars, operating at higher levels.”

Customers of Dokmo Ford-Chrysler in Northfield will begin to see fewer new cars on the lot in the near future. That’s because Clancy Dokmo sees a future rise in used car sales.

“I see a stronger used car market in

2009 and beyond,” Dokmo said. “Manu-facturers will reduce supply in the future and with that the incentives to buy new cars won’t last. We’re moving to purchase more newer used cars in anticipation of that so we can take care of our customers’ needs.” >>>


Mike Brown, owner of Harry Brown’s in Faribault, says that while new car sales have dipped drastically, used car sales are up. Many I-35 corridor auto dealerships are pre-paring for consumers to buy more used cars and fewer new cars in 2009.

“The slowdown in new car sales has made it crucial that we tighten our belts.”— Mike Brown, owner of Harry Brown’s in Faribault

35C page 14 (Feb. 2009).indd 1 1/21/09 3:49:38 PM


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Crystal ballMike Brown has been in

the auto industry most of his life and is all too familiar with the ups and downs. While he knows he can’t predict with certainty when the auto indus-try crisis will begin to ease, his educated guess is as good as anyone’s.

“I think the first part of 2009 will be about the same as 2008,” Brown said of new car sales. “Past the second quarter this year, we’re going to see an up-tick. I think we’re going to see a shortage of new cars and trucks and that will lead to a pent-up demand for new cars. I think you’ll see a nice surge both in new and used car sales.”

Mike Hamilton, general sales manager at Hursh Motors in

Owatonna, believes consumer confidence will determine how quickly the auto industry woes will end.

He’s confident that Hursh Motors will weather the storm because the dealership has been in town for 50 years.

“We’re going to ride it out. We’ve been here before,” Hamilton said. “You just have to keep inventory in control and think about every expen-diture and be smart.”

Dokmo agrees.“If there is a positive here,

it’s that the time is right to buy a car with all of the incen-tives and the inventory on hand at dealerships,” Dokmo said. “There is money out there and credit for people to buy cars. It’s a great time to buy a new car.” r


Rick Peterson, co-owner of Waseca Chrysler Center, cleans off snow from some of the inventory on his lot.

35C page 15 (Feb. 2009).indd 1 1/21/09 3:50:13 PM


Interstate appealAriel Preferred has grand plans for Medford Outlets

35

By JERRY SMITHAssociate Editor

Sharon Broin knows a lot about change.

In fact, she’s been an agent of change at many — 26 to be exact — regional shopping centers throughout the country in her 19 years in the shopping center development and man-agement industry. Ten of those projects have been major devel-opment projects.

That’s why she’s a perfect fit at the Preferred Outlets of Medford.

Broin was brought in by Ariel Preferred Retail Group in No-vember 2008 to help facilitate the major redevelopment that is planned in the coming months and years in Medford.

“I think my redevelopment background was a big factor because they knew they were planning major changes here at the center,” Broin said.

Broin has been involved in the changes at many high profile shopping centers in Minnesota,

including Southdale Shopping Center in Edina in 1991, which was the center’s first major reno-vation since it opened in 1955; Rosedale Center in Roseville in 1992; Brookdale Center in Brook-lyn Center in 2002; and River Hills Mall in Mankato.

The project Broin is particularly proud of involves the changes she helped bring about at The Shoppes at Arbor Lakes in Maple Grove. The center was the first “Lifestyle Center” in Minnesota and received awards for its archi-tecture and successful retail mix.

“The developer created a strolling environment that keeps the shopper relaxed and enter-tained,” Broin said. “That’s what we’ll try to achieve here at Pre-ferred Outlets at Medford.”

Broin’s vision is to bring in a nationally recognized chain res-taurant that will be visible from I-35 and also focus on attracting the right mix of outlets and retail stores.

“We’re not at full capacity right now,” Broin said. “We’ll bring

in more stores with a fresh new presence. In our site plan, there is an expansion area that we are ready to develop and we are look-ing for the right mix of stores.

“Ariel is being careful in consid-ering who to bring here because it is a part of the whole success package. If the full vision is real-ized, we would probably have close to 55 stores, which is an increase from the 34 we presently have.”

The process of bringing in that “perfect” mix has already begun in Medford. In November, the Pendleton Outlet Store opened, making it only the second store in Minnesota.

“We’re very lucky in these economic times to be able to attract new stores but we are,” Broin said. “Preferred Outlet at Medford is perfect for transforma-tion.”

In a 35C interview, Sharon Broin talks about the major redevelop-ment plans and her vision of Pre-ferred Outlets at Medford. >>>

35C page 16 (Feb. 2009).indd 1 1/21/09 3:50:41 PM

Q: Can you summarize what is go-ing on at the center?

A: Ariel Preferred is the management and the team that sees the vision for this property. In this property they see a great opportunity because of the other outlet centers in the Twin Cities area and the southern location of this one, which is in a real ripe area to entice retailers to the center.

During the last few years, there’s been a lot of retail developed in Minnesota and it wasn’t the outlet’s time to evolve. It is now. Throughout the country, outlet centers are in a growing mode right now and we’re finding that retailers are expanding their own retail operation and including outlets in their portfolios, which makes this property ripe for bringing those new retailers with outlets to this market.

Q: Is this more than a facelift?

A: It’s a total package. It has to be new to the custom-ers and the retail-ers. Retailers today are very savvy and they all know what the combination of success requires. It is different in every state and every region and every retail district. However, there is one common denominator and that is that the consum-er or shopper has the right retail mix so when they come to the center, they stay and shop. They want the center to have an environment that feels good to shop. The visual piece of it, the friendliness of it, the staff at the stores, all play a big part in the customer deciding where to shop. They have many choices today, so are they going to choose the outlet center or are they going to choose another retail venue?

Now that our economy is taking a dif-ferent road, value will be a big piece of the survival of the retail operations in mar-kets throughout the country. That, too, gives Medford the opportunity to attract the retailers that currently do have outlets and those who are making transitions within their own organizations to begin

outlet locations. The other piece that is important for the

redevelopment is the visual piece. That has to do with the renovation. It needs to be fresh, it needs to be very visible and it needs to be very current looking. It’s not something you can just put a coat of paint on. You can’t do that anymore. You have to have very good visibility and the own-ers are working with architects who are retail experts. Retail is what they do and they are well known in the industry.

Q: It seems the Medford outlets are a destination. Is this the case and if so, what is its market?

A: It is, but I think this property can be more than the traditional outlet. The property has not really maximized those opportunities and that will be in the marketing plan for 2009, 2010, 2011 and so on. We will focus on our groups and bringing more of them here. We found in our 2008 consumer research study, over 46 per-cent cross-shopped five times or more here at this center and at regional shop-ping centers. I was completely surprised by that. This is great

news for our stores and future stores. We are the destination shopping spot

for customers from Iowa and Sioux Falls, S.D. We have many tour groups that see us as a destination as well. We definitely will be focusing on our regional markets and our local communities.

Q: What kind of shoppers are you looking for and how far do they come to shop at this outlet center?

A: We want to maximize all markets. That is very clear. We want to provide more selection so customers will stay here and shop for all of their needs. We want to attract the drivers who are driving in from Iowa and from other places on I-35, whether we’re the destination or they’re just driving by. We want them to stay and have a reason to stay and shop, and in the future, dine. >>>



Sharon Broin, Center Manager for Pre-ferred Outlets at Meford, looks over the plans for the center’s renovation.

Sharon Broin filePositionCenter Manager at Pre-ferred Outlets at Medford since November 2008

ResidenceChaska

FamilySon Colin, 17; step daughter Ashley, 18

CareerWent to school for in-

terior design, moved into commercial interior design and managed a facilities planning department for the St. Paul Company for seven years before switch-ing to the retail arena.

Involved in the devel-opment of 26 regional shopping centers located throughout the country and of those centers, 10 were major redevelop-ment projects.

Some local projects include the 1991 renova-tion of Southdale Shop-ping Center in Edina, the first since it was built in 1955; the first major renovation of the Rose-dale Center in Roseville in 1992; renovations at the Brookdale Center in Brooklyn Center in 2002, River Hills Mall in Mankato, and the man-agement of The Shoppes at Arbor Lakes in Maple Grove, which was the first “lifestyle” center in Min-nesota.

35C page 17 (Feb. 2009).indd 1 1/21/09 3:51:42 PM

Q: Who are the Meford outlet’s primary customers?

A: Because of our location and be-ing an outlet center we also have a few non-outlet stores like J. Jules Fashion, The Bag Lady and a couple of other stores. This makes us a unique retail venue. We have an opportunity to continue attract-ing customers in Southern Minnesota and from outside our region. Many shop-ping centers don’t have that. They have a three- to six-mile radius in which they draw from because they have to. There is so much competition and there are other regional shopping centers in their market. We draw from three hours travel time. Those cities and surrounding areas bring demographic markets that will drive our store mix. So, the center’s customer is poised to bring more loyal shoppers and tourism.

Q: Would a restaurant help in-crease loyalty and tourism traffic?

A: Having a restaurant here is very critical to our mix. It’s a piece that has been missing. It is definitely in our vision to have a nationally recognized restaurant

that meets the family tourism appetite. This, along with new stores, encourages shoppers to shop the Preferred Outlets at Medford. We feel that the market here, with the visibility from I-35, is primed for a restaurant. Now that we have an oppor-tunity, we have one space that we have earmarked for a restaurant because of the highway visibility. Having a restaurant is like having more decorations on the cake. That is our number one complaint, that we don’t have a place to sit down with a full menu.

Q: You have had success at The Shoppes of Arbor Lakes, the first lifestyle center in Minnesota. What is a lifestyle center?

A: It’s a buzz word that has taken off the last 10 years or so and everybody is on the bandwagon to create a lifestyle center. I think it means different things to different people. Some people see it as a status type of shopping environment and some people might look at it as a place to kind of relax and hang out.

Originally, home furnishings busi-nesses were always a part of the mix. It really attracted the female shopper. They were typically large box retailers with a sprinkling of small retailers. It has kind of evolved into a mix of retailers that meet all of the needs of that region or that market. It was never thought of that Min-nesotans would ever gravitate to a lifestyle center. With The Shoppes of Arbor Lakes and the success of the whole Maple Grove area on the north side of town, that is not true. We are very hearty people and we do not mind parking and meandering through a center to shop. Our goal here is to create more of that lifestyle feeling when customers walk through our prop-erty. >>>



Preferred Outlets at Medford Center Manager Sharon Broin chats with Diane Kortuem at The Painted Porch.

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Q: Is the concept of outlet centers changing?

A: It is. And it’s a great evo-lution. I think retailers always felt that value was just for a certain sector of people and they could just have a box with a sign on it and people would come. That’s really not true today. The consumer today is expecting, no matter how much they pay, to have an environment where they feel good and enjoy their experi-ence when shopping. Outlet centers are very inclusive to the lifestyle shopping center concept but with value.

Q: Why are outlet centers becoming more popular?

A: I think that is true for a couple of reasons. I do believe that our country today as a whole is looking for value and outlet centers provide that. The retailers are also look-ing to expand their business to attract shoppers who are looking for value. It has little to do with economic profiles and everything to do with everybody wanting to get the best purchase for their money, especially if designer or brand names are part of the store

choice. Retailers know that and retailers see that there is a value and that the outlet developers are willing to bring up the architectural standard and provide ambience and a retail mix.

Q: How important is the shopping experience at the Medford outlets?

A: It is extremely impor-tant. It is important for every shopping center, whether it is an outlet center or a strip center or a regional mall to keep the shopper there. That points to having the mix and having the environment where they can visually see where the stores are located. We have at this center, which is probably higher than many that I have seen in research, data show-ing that our customers shop five stores every time they come here. It was a very high percentage for an outdoor cen-ter and that is great. If we can move it to six or seven because we completed our retail mix, we’ve hit a home run. That is what we are focused on. We are finding that full price retail-ers want to nestle in between the outlet stores and take advantage of the positioning that outlets bring. >>>


Sharon Broin, Center Manager for Preferred Outlets at Meford, looks at clothing with Deb Vizina at Lane Bryant Outlet.

35C page 19 (Feb. 2009).indd 1 1/21/09 3:52:49 PM


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Q: You have been in-volved in shopping center development and man-agement for 19 years and have been a key person in the redevelopment of many centers. Why is redevelopment important for Preferred Outlets of Medford?

A: We want to fill the cen-ter with the right tenants and the right stores for our con-sumers. That has a snowball effect. During that process, our marketing plan takes on a broader reach and then we will be able to hone in specifi-cally on the tourism market in a much grander way. Our marketing programs will change and we will be able to do more for our customers when they are here. We want this to be more than just a place to shop. We want it to be a place where families can come and have a full day of fun. With our redevelopment plans, we will increase the traffic, expand our customer base and in turn increase store sales.

We’ll bring in food and more national names that are popular today because we have the space and expansion areas that give us a wide range of possibilities for selecting the right stores and restaurant. We have name recognition already and our current stores give us a good start. The retailers that we are talking to see what we

have and they see the oppor-tunity of fitting into our mix. As retailers continue to close markets, they have to open them up somewhere else and we feel the outlet markets are going to be a part of their expansion success stories.

Q: What is the time-frame for starting and completing the project?

A: We have some target times that our architects and development teams are work-ing on. We’ve already started installing two 124-foot long sign walls on the front of the property facing the highway. That has always been a chal-lenge for this property. People on the highway can see only three stores. We are putting the sign walls out there with the logos of our stores and as we go forward in our proj-ect we’ll be adding the new stores to those signs. That has already started. This is an exciting time here. It’s a good time to start.

Q: How has Cabela’s and the other businesses along I-35 helped attract business to Preferred Out-let Centers of Medford?

A: Those businesses help immensely. The more develop-ment that begins and grows out here, whether it is retail or whatever, makes our position-ing here that much greater. r

Preferred Outlets at Medford Center Man-ager Sharon Broin chats with Jo Win-ter about the product-line at Harry & David Gifts.


35C page 20 (Feb. 2009).indd 1 1/21/09 3:53:16 PM


Culinary35I-35 corridor restaurants are ready to serve

Torey’s Restaurant & Bar685 W. Bridge St. Owatonna

Torey’s, located one block east of the Bridge St. exit off I-35, has fantastic food and friendly

service and offers a full service bar and an

extensive wine list, all in a sports bar atmosphere.

Known for its lunch buffet, Torey’s is a perfect place to go if you are looking for a casual meal and great service.

Torey’s also offers a banquet room for those special occasions or business dinners and provides full service catering.

Specialties: Seafood, award-winning ribs, char-grilled steaks, Asiago chicken, pastas, spinach artichoke dip, seafood cakes and deck wings.

For a full menu and wine list, go to www.toreys.net.

Information and reserva-tions: Call Torey at 507-455-9260.

Traxler’s Hunting Preserve and Wild Game Restaurant37699 Hunting Preserve LaneLe Center

If it’s a unique wild game dining experience you seek, Traxler’s is the place to be.

Featuring items such as alligator, New Zealand Red Deer, Caribou Moose, game birds, waterfowl and exotic fish, Traxler’s menu — which also includes traditional meals

— changes nightly so patrons can experience entrees prepared by Chef Mark Moore and Sous Chef Jim Traxler.

Traxler’s offers dinners every other Thursday evening from Septem-ber through March by reservation only. Traxler’s also offers lunch Tuesday through Sunday from 10 a.m. to 2 p.m.

Reservations: For more information, visit Traxler’s Web site at www.traxlers.com. For individu-al and group reservations, call 507-357-6940.

Patrick’s on Third125 S. Third St.Saint Peter

Welcome to Patrick’s, home of the World Famous Patty Melt, Best Burger on the Planet, Buck-

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& Bugle Corps, Drum Corps Museum and a number of other really weird and wacky things.

If it’s an amazing burger you crave, Patrick’s is the place to go.

Patrick’s also offers a variety of menu items from steaks and burgers to pasta and Mexican to Italian.

If it’s beer you crave, Patrick’s offers 20 craft beers on tap.

Enjoy a laid back atmosphere where there’s Trivia Night each Tuesday, a Karaoke Buffet every Wednesday, kids eat for $1 on Thursdays after 4 p.m. and Crib-bage on Sundays.

Patrick’s on Third is open ev-ery day from 11 a.m. to 1 a.m. For reservations, call 507-931-9051.

Richard’s Restaurant & Pub408 South 3rd StreetSaint Peter

Richard’s Restaurant & Pub recalls turn of the century elegance.

Located in the historic Kons-bruck Hotel, friends, family or business

associates will find a comfort-able yet sophisticated environ-ment in which to enjoy fine food — prepared by chef Emily Streeter — and beverages atten-tively prepared and served.

Whether you are celebrating a special occasion or you just want a variety of food options, come eat with us.

Our delicious dishes are freshly prepared and offered at very affordable prices.

Reservations: For more information and/or to set indi-vidual and group reservations, please call 507-934-4988 or e-mail [email protected].

The Tavern of Northfield212 Division StreetNorthfield

The Tavern of Northfield Restaurant & Lounge is a great place for people of all ages.

The Tavern has been making its breads, soups and sauces from scratch for nearly 24 years.

Located in the basement of the historic Archer House in North-

field, the Tavern features a full breakfast, lunch and dinner menu and a full bar.

The Tavern has been a restau-rant of choice in Northfield for business people and families alike.

The service is great, but you’ll return for the great prices and the quality menu.

Reservations: For more information about the menu and for reservations for parties of five or more, please call 507-663-0342.

Photo of chefs Shelly Krenilc and Melanie Johnson

by Thom Caya

35C page 21 (Feb. 2009).indd 1 1/21/09 3:53:42 PM


American bottle capsBy JERRY SMITH Associate Editor

Joe Dokken has quite the story to tell.

It goes something like this: Three guys,

interested in helping the earth and starting a new business at the same time, decide to brainstorm ways to sell green.

They already know a fair amount about such things. One is an inventor. One has connections in the sales and marketing world. The third knows how to tell a tale that leaves people begging for more. Between them they know that just saying it’s green isn’t going to be enough — green is hot now, everybody’s into it.

But the three wonder if

people know the sustain-able products they buy are most likely either made overseas or made here with recycled waste from over-seas. They wonder what people would think if they promised a product that is not only green, but also made from recyclables col-lected and processed solely in America.

And that’s how Green Global Horizons was born.

The big ideaIt was somewhere

around May or June last year, Joe Dokken says, that he and the Behr brothers, Jerry and David, hit upon their big idea.

Jerry and Joe are North-fielders and all three are affiliated with Behr’s USA Flooring there. They’d all

noted the increasing popu-larity of carpeting, made by Mohawk, that was woven out of recycled plastic bottles.

And Jerry Behr was no stranger to big ideas. He had several inventions under his belt — for bleu cheese dressing, kids’ toys and one that bears his name, the Behr Claw, a carpet stretching tool that installers all over the nation now were using.

But what the three of them had in mind was more innovation than invention, Jerry said. The materials were already all there, they just intended to put them together.

The research & the product

By materials, Dokken and

the Behrs meant all those plastic bottles languish-ing in landfills all over the country. According to the national Clean Air Council, Americans throw away 2.5 million plastic bottles every hour.

The three men knew that “green” was hot. Everybody was attempting eco-marketing and manu-facturing. But in doing some research, the three discovered that not all was what it seemed.

“We found that most of what was out there be-ing marketed as ‘green,’ was really only about 50 percent American recycled waste,” said Joe Dokken. “The rest was imported.”

That meant that while American landfills were fill-ing up at an alarming >>>

Green Global Horizons: Turning plastic bottles into ‘green’ baseball hats

35C page 22 (Feb. 2009).indd 1 1/21/09 3:55:56 PM


Green Tops

Name: Green Global

Horizons

Employees: 3

Location: 1325

Armstrong Road, Northfield, MN

55057

Web site: http://Green-

GlobalHorizons.com

E-mail: Info@greenglob-

alhorizons

Phone: 507-664-2021

Manage-ment team

Managing Principal:

Brett D. Reese

Managing Partner

Jennifer Sawyer

Managing Partner

Craig Ibsen

Marketing/Operations

Jerry Behr

Marketing/Operations David Behr

Marketing/Operations Joe Dokken


Jerry Behr and Joe Dokken of Green Global Horizons show some of the hats the company makes from recycled plastic bottles collected and processed solely in America.

“We found that most of what was out there being marketed as ‘green’ was really only about 50 percent American recycled waste.”

— Joe Dokken, marketing/operations at Green Global Horizons

>>> rate, people were snatch-ing up “green” products that were actually not helping much to reduce waste in the United States.

Dokken said the three men were big enough thinkers to realize that success comes from finding the one thing that’s not out there — what if they could market a product that was guaranteed made from plastic that came only from American landfills? And, even better, what if the plastic was reprocessed here, spun into fiber here and the prod-uct made here?

Additional research revealed three mills that were govern-ment-certified as using only American recyclables, and three custom sew shops that used the American-made fiber spun from the PET (Polyeth-ylene Terephthalate) flakes

generated from recycling plastic waste.

“We wanted American waste, American processed,” Joe said.

In the meantime, they also looked for the one “green” product that no one else was making. Quickly, they found it: Baseball caps, the no. 1 promotional giveaway item used by companies in the United States.

The planFrom there, the three

had to find financing. In the Northfield News, they’d read about a group of local investors who had created an Angel Fund to help budding local entrepreneurs. They ap-proached them and received not only funding but three successful businesspeople — Jennifer Sawyer, Brett Reese

and Craig Ibsen — to serve on the new company’s board and help the three men develop a business plan.

After that, it just became a matter of spreading the word.

Right now, the company is based in the Behr’s USA Flooring store in Dundas. As you walk in the showroom, the only hint you get of the innovative company being grown is an 8 ½ x 11 piece of paper taped above the fax machine with the Green Global Horizons logo and a box of hat tags on the recep-tion desk. The hat tags tell the company’s story and feature a giant “3” on them, the num-ber of recycled bottles it took to make the hat.

Another less obvious hint is the framed picture on the back wall of the showroom of a huge chunk of a >>>

35C page 23 (Feb. 2009).indd 1 1/21/09 3:56:32 PM


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>>> glacier falling into the ocean with a Psalm written below: “Therefore we will not fear though the earth gives way and the mountains fall into the sea.”

“For us, it bothered us greatly that it wasn’t American waste, American pro-cessed,” Joe said. “We want to be true to that mission.”

Now, Joe and David spend more than 75 percent of their 12-hour working days making hundreds of cold calls seeking customers and additional investors for their baseball caps and aprons (a later addition to the product line). So far, they’ve netted three serious customers. Their first order, due to arrive any day, was from The Wedge, a co-op in Min-neapolis.

The Wedge’s research and education director, Barth Anderson, said David Behr was a long-time customer and first pitched them the idea of selling Green Tops, the nickname for their baseball caps, with The Wedge’s logo on it. This was after Behr’s USA Flooring had part-nered with The Wedge and chipped in a percentage of their profits from selling “green” carpeting to provide flood relief to southern Minnesota farmers.

Anderson said he was immediately intrigued.

“My reaction was ‘Wow, what’s not to

like?’” said Anderson, who is also respon-sible for the co-op’s Web site and news-letter. “As a marketer, to be able to tell such a cool story; we’re proud to have our logo on their product.”

Dokken and the Behrs are also in nego-tiations with the Girl Scouts of America. If they can seal that deal, their Green Tops products — now four lines of baseball hats with many color and material op-tions, and four lines of aprons — will be featured in a catalog that circulates to more than 3 million households, Dokken said.

Next up for the company will be T-shirts and fleecewear. Dokken said fleecewear heavyweight Patagonia offers products that are 100 percent made from recycled plastic, but that it’s imported waste.

“We can compete with them,” he said. “That’s one of our huge advantages. They may have the name, but we’ve got our story.”

And apparently, despite the economy, it’s one people are willing to at least listen to.

“We’re looking for — and finding — customers who care where the prod-uct with their name on it is made,” Joe said. “We want people who care that the story is the truth.” r

Sam Gault’s taking a sentimental journey I ID Insight fi ghts identity theft

DECEMBER 2008/JANUARY 2009

CCommerce along the I-35 CorridorCCC35

Flowery dispositionJulie Donahue Zweber inherited her father’s knack for marketing at Donahue’s Greenhouse

Credit crunch:Homebuilders, banks, farmers at crossroads.

Fitness fanatics: Cybex’s state-of-the-art facility keeping more people � t.

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Patrick Burkhartzmeyer wants to take over the

world, one T-shirt at a time. Burkhartzmeyer, 25, and

his brother, Ryan, 22, both Faribault natives, have created a new company, Cultural Cot-ton, which they operate out of a Minneapolis apartment.

Their goal? To deliver to the world “silent mind bombs” in

the form of T-shirts with socially con-scious messages.

Patrick consid-ers T-shirts public space; even though they’re only on one person’s body, ev-erybody has to look at them. And the messages parading around town these days are often not

funny, but rather misguided and at times, downright of-fensive.

“We were just tired of look-ing at them,” Patrick said. “I believe the T-shirt is one of the best mediums to reach the public. We’re founded on the idea of getting the right mes-sages out there.”

After graduating from Drake University with a degree in graphic design, Patrick worked part-time for a T-shirt printer

and got excited about the work. Last June, he and his brother conceived the idea of Cultural Cotton. They lever-aged everything they owned to get a start-up loan, and by October they were up and running. Patrick handles the creative part of the busi-ness, and Ryan, still studying finance at Augsburg College, handles the company’s books.

With the target demograph-ic of 18- to 35-year-olds, the two confine marketing efforts to word of mouth through family and friends, a Web site (culturalcotton.com), and a Facebook page.

On the Web site, messages like “Stop being lazy” and “We need more than two ways” come with statements explaining the context and meaning of the shirt. Each shirt retails for about $25.

The fact that the “Stop being lazy” tee is eco-friendly and that Cultural Cotton’s shirts are made by American Apparel, a hip, green com-pany based in Los Angeles, is just icing on the cake.

“We really want to take over the T-shirt world,” Burkhartz-meyer said. r

— Jerry SmithAssociate Editor

Patrick

Ryan

Getting the message out one T-shirt at a time

35C page 25 (Feb. 2009).indd 1 1/21/09 3:57:31 PM


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Chamber35A look at what’s new in the region’s Chambers of Commerce

Sleigh & Cutter Festival takes over WasecaThe oldest running parade in

the U.S. — Waseca’s Sleigh & Cutter Festival — will be cel-

ebrating its 59th year. The event will run

each weekend in Feb-ruary, beginning Feb.

5 with the Waseca County Histori-cal Society’s “Ice Harvest” at Clear

Lake.The tradi-

tional Sleigh and Cutter parade will be held at 1 p.m. on Feb. 14 in downtown Waseca.

Other

attractions include the Jesse James Gang, Cannon Old West Society, Snowball dance, Snowmobile Drag Racing and more.

For more information, visit www.sleighandcutter.org or www.wase-camn.info.

Experience dinner theater“We Gotta Bingo,” a hilarious interac-

tive St. Paul dinner theater experience, is coming to Waseca for one show only on March 28. The event is sponsored by the Waseca

Area Chamber of Commerce Ambas-sadors.St. Paul’s longest running comedy is

open to the public. Call 507-835-3260 for more information.

• To see more Waseca Chamber events, log onto www.wasecachamber.com.

35C page 26 (Feb. 2009).indd 1 1/21/09 3:58:10 PM


Faribault Northfield Owatonna St. PeterThird Thursday Networking event set for Feb. 19Share leads with more than 50

business leaders from noon-1 p.m. at Roosevelt School.

Chamber Business After Hours slated for Feb. 24Network with about 100 busi-

ness leaders in the Owatonna area from 5:30-7 p.m. at the Gainey Conference Center.

Minnesota Deer & Turkey Expo coming in MarchVisit more than 200 booths

and attend any of the 30 new seminars, special events and special displays.Visit www.deerinfo.com for

more information.

North America Farm & Power Show set for MarchAttend the eight-annual NAFP

Show. For more information, visit www.owatonna.org.

• To see more Owatonna Chamber events, log onto www.owatonna.org

Leadership program offered to community on Feb. 19-20A leadership program spon-

sored by the Northfield Area Chamber of Commerce is set for Feb. 19-20 at the Community Resource Bank’s Community Room.“You, The Inspired and Suc-

cessful Leader,” will offer differ-ent types of leadership tools for success in business and commu-nity organizations.Registration for the program

is required. For a brochure and registration information, contact the Chamber office.

Chamber Recognition Banquet set for Feb. 27 The Northfield Area Chamber

of Commerce Annual Meet-ing and Business Recognition Banquet is planned for Feb. 27 at The Grand Event Center.For additional details, contact

the Chamber office.

• To see more Northfield events, log onto www.north-fieldchamber.com.

‘Meeting of the Minds’ series set for Feb. 17The Faribault Chamber will

be hosting a free lunch-time seminar as part of its “Meeting of the Minds”s series on Feb. 17 at noon in the Chamber Confer-ence Room. The seminar is titled, “The

Economy — How to make sense of financial ups and downs.”The seminar will include panel-

ists with expertise in the fields of banking, accounting, invest-ment and workforce. For more information, go to

www.faribaultmn.org.

Faribault Business Expo looking for vendorsThe Faribault Area Business

Expo is returning to the Farib-ault Ice Arena on April 23. Join one of more than 60 vendors displaying at the Expo by calling the Faribault Chamber at 507-334-4381.

• Get connected in Faribault

by clicking into EVENTS at www.faribaultmn.org.

St. Peter gears up for Winterfest celebration The fifth annual St. Peter Win-

terfest will take place Feb. 6-15. Winterfest was created to bring

local businesses and organiza-tions together and offer a variety of public events throughout the nine-day festival. Those events are as eclectic as

the groups that sponsor them, from one-of-a-kind pottery filled with homemade soup at the Arts Center, to the Nicol-let County Sheriff’s Office frigid Polar Plunge benefiting Special Olympics.Other highlights include the

Medallion Hunt, Festive Lights competition, Winterfest Parade, Richard’s Winter Wine Tasting, North America Canned Beer In-vitational, snow golf, poker tour-nament and extreme dodgeball tournament.For more information, visit

www.tourism.st-peter.mn.us.

• To see more St. Peter Cham-ber events, log onto www.tour-ism.st-peter.mn.us.

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For a list of current offerings provided through the Center for Business & Industry, visit our website:

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35C page 27 (Feb. 2009).indd 1 1/21/09 3:58:45 PM


Construction35Projects contributing to the growth of the I-35 corridor

Ritchie Bros. ready for March 19 grand opening

As the final touches are being made in-side and out to two buildings along I-35 in Medford that will house Ritchie Bros. Auc-tioneers, officials made plans for a March 19 opening.

The final sale of heavy construction equipment at its current Lakeville location took place on Dec. 10. There are currently 35 auctions scheduled for the new location in Medford.

— 35C photos by Jerry Smith

TOP: Construction began on the $5.3 million GrandStay Residential Suites Hotel shortly after the Nov. 18 ground-breaking. The 59-suite Faribault hotel is located at the corner of highways 3 and 21. RIGHT: The $6.2 million District One Hospital expansion is on schedule.

Dan Miller (left) from Healy Construction of Faribault works on exterior walls at the new River’s Edge Clinic building (shown above), which is scheduled to be up and running by mid-April. (35C photos by Kurt Hildebrandt)

35C page 28 (Feb. 2009).indd 1 1/21/09 3:59:23 PM


Commercial Directory35Professional resources along the corridor to help grow your business

• For information on including your services, please contact Machelle Kendrick at [email protected]

Tim O’Connell, CPA

Carlson, Branstad & Co.

Barbara Burke and Assoc., Inc.

Making Words Work Brenda Elsagher

Renee’ Rongen & Assoc., LLC

Met-Con

Carriage Cleaning

Elite Shredding

Technology Navigators Inc.

NelsonAgency

Hoffman Law

Environmental Financial

Northfield

Owatonna

Northfield

Northfield

Burnsville

Fertile

Faribault

Faribault

Owatonna

Owatonna

Waseca

Five corridor locations

Minneapolis/ St. Paul

Tax, accounting, consulting for construction, manu-facturing, retail, real estate and hospitality industries.

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Provides tools for assisting individuals and organiza-tions in becoming more passionate and productive.

Construction services, including site design, bud-geting, expansion, relocation and building design.

Using the most advanced cleaning equipment, chemicals and techniques on your floors, carpets.

Providing your business with the most secure way to destroy your confidential documents on-site.

Strategic business and technology planning with services including network security.

Farmers Insurance offers home, auto, life and busi-ness insurance. Offering great service for 40 years.

Complete regional legal services providers along the I-35 business corridor.

Trained and certified solid waste management con-sultants who reduce costs of recycling and waste.

Ph: 507.645.8735

Ph: 507.444.9754

Ph: 507.663.7232Fax: 507.663.0472

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carlsonbranstad.com

barbaraburke.com

MakingWordsWork.biz

livingandlaughing.com

reneerongen.com

met-con.com

carriagecleaning.com

eliteshredding.com

ITnav.com

jphoffmanlaw.com

envfinsol.com

Name City Business Description Contact Web site

ACCOUNTING

CONSTRUCTION

SOLID WASTE MANAGEMENT

COMMUNICATIONS

DOCUMENT SHREDDING

INFORMATION TECHNOLOGY

INSURANCE

LEGAL SERVICES

CLEANING SERVICES

35C page 29 (Feb. 2009).indd 1 1/21/09 4:01:54 PM

December 2008

Santa Anonymous receives $10,000 WASECA — The Boxcar Bar was turned

into an auction block last month with all the proceeds going to help those less fortunate in the community have a happy Christmas.Boxcar Bar owner Todd Schmidt said

around 150 people attended the auc-tion.Even in these shaky economic

times, the auction was able to raise $10,090.50.The money raised is given to the Wase-

ca Area Neighborhood Service Center for the purchase of presents as part of its Santa Anonymous program.Along with Schmidt and Boxcar

Manager Tae Born, volunteers Russ

Lashbrook, Robin Spooner and Twyla Schmidt scoured the greater Waseca area for donations from local businesses in the month leading up to the auction.“They went around and probably hit

up around 400 businesses,” Schmidt said.

Businesses as close as Waseca and as far away as Elysian and Owatonna do-nated to this year’s auction.The Santa Anonymous program helps

eligible low-income parents in the county receive holiday gift assistance for their children.This is the 13th year the Boxcar has

hosted the auction, and the 10th with Schmidt as the owner.“It’s a very good cause,” Schmidt said.

“Every kid should have a Christmas.”Jodi Root, an accountant with the ser-

vice center, said the Santa Anonymous program wouldn’t be the same with out the Boxcar Bar auction.“The auction is one of the greatest

fundraisers we receive as an organi-zation,” she said. “It provides about 75 percent of our Santa Anonymous program.”

—Drew Amo for 35C

Waseca County News photo

Boxcar Bar owner Todd Schmidt and manager Tae Brown present Neighborhood Service Cen-ter Director Christine Baidoo with a faux check in the amount of $10,090.50.

Charitable35

October 2008

Waseca lottery winners give $1 million to hospitalWASECA — It isn’t every day that keynote

speakers surprise a non-profit audience with a million dollar donation to their cause. That’s what happened Oct. 11 when Paul

and Sue Rosenau surprised supporters of Waseca Medical Center — Mayo Health System by announcing their decision to donate $1 million to the medical center.A standing ovation from local guests

showed appreciation to the Rosenaus, who made their presentation at Farmamerica after speaking at Waseca Medical Center’s Benefit Dinner.“I am overwhelmed by the generosity

shown with this donation,” said Mike Mil-brath, executive vice president of Waseca Medical Center. The Rosenaus presented their gift after

sharing their story of winning the lottery. Paul and Sue Rosenau claimed the state’s highest-ever Powerball winnings in early May.The couple is currently in the process of

forming a private charitable foundation called “The Legacy of Angels.” The founda-tion will award grants to help in the expan-sion of the Newborn Screening Program to include testing for Krabbes Disease at birth, and to assist in research for treatment and a cure of both Krabbes and Cystic Fibrosis. The Rosenaus lost their first grandchild, Makayla Pike, to Krabbes Disease. “We appreciate how much this community

cared about and supported us when we lost Makayla,” Paul Rosenau told the audience. “We wish to thank this community by pre-senting this gift to Waseca Medical Center.”

We would like to hear from you35C welcomes announce-

ments for your upcoming charitable events and news of those that have passed. We are looking to publish

information and photos relating to fundraising and philanthropic efforts along the I-35 business corridor.For consideration, please

e-mail information and pho-tos to Associate Editor Jerry Smith at [email protected]. Please include the date, time, place, event name, details and charity served.

Sue and Paul Rosenau receive a lump sum check of $180.1 million — the state’s highest-ever Power-ball winnings — from Lottery Director Clint Harris.


Charitable35

35C page 30 (Feb. 2009).indd 1 1/21/09 4:02:23 PM


Caricature35Corridor business people draw strength

from outside the office

Life is a stage for Owatonna mortician By JERRY SMITHAssociate Editor

Tim Thomas sees dead people for a living.

As a licensed mortician and funeral director at Brick-Meger Funeral Home in Owatonna the past two years and a death in-vestigator for Hennepin County for many more, Thomas has seen his share of unpleasant moments.

“I’ve seen people killed in small plane accidents and senseless murders in my role as a death investigator,” Thomas said. “And I’ve seen people killed in horrifying auto acci-dents and many other strange deaths as a mortician.

“You have to keep your professional hat on in both jobs and remember you are serving your community and just do-ing your job.”

While Thomas takes his job of serving his community in a professional capacity seriously, he is equally thrilled to serve it

on another stage: community theater.

As a diversion from the death and sadness in his professional life, Thomas has immersed himself in many roles on the Little Theatre of Owatonna stage.

“It’s a great way to invest yourself not only with your body, but with your mind,” Thomas said. “It takes you to another place. You can wrap yourself in a character.

“I’m in love with theater. It’s a great hobby and a diversion from what I do for a living.”

Thomas’ love of acting began about the same time he started thinking about what he wanted to do for a living. For a fleeting moment, he even considered trying his hand at professional acting.

“My passion for theater goes back to high school,” Thomas said. “I had a strong desire to enter it as a means to earn a living.”

While he was never able

to break into the Hollywood scene, he says something even better came out of his love of acting. Thomas met his wife (Bonita) while on the stage at Sibley High School in Iowa. As he recalls, her interest in the art came from a different place.

“She used theater to find a boyfriend,” Thomas joked. “She was my high school sweetheart and we’ve been married 28 years now.”

While acting didn’t take with Bonita, the Thomas’ have an-other budding thespian in the fold. Thomas’ youngest daugh-ter, Natalie, got some of dad’s acting genes and is involved in community theater as well.

“I was thrilled when we got to act on the same stage two summers ago in ‘Guys and Dolls,’” said Thomas, who has two daughters (Caroline and Natalie). “She’s up and running on her own.”

For Thomas, acting is a way of forgetting about work. How-ever, like most things in life, it

comes with responsibility.“When you do something on

stage, the audience can easily detect who is in character and who is not,” Thomas said. “That’s a big commitment as an actor, to get to know those lines upside down, inside out and not have to think about them. You are living your char-acter. Obviously on stage you can’t be thinking about what just went on at work.”

Owatonna’s leading man

Tim Thomas has been cast in many Little Theatre of Owa-tonna plays. Here are a few of his favorite roles:

• Randall P. Murphy in “One flew Over the Cuckoo’s Nest”• Col. Nathan R. Jessep in “A Few Good Men”• John Proctor in “The Cru-cible”• Sgt. Toomey in “Biloxi Blues”• Vic in “Funny Money”• Juror #10 in “12 Angry Men”

After dealing with death all day, Tim Thomas turns to acting as a diversion

Tim Thomas (left) as Vic in “Funny Money”— Photo by Thom Caya

35C page 31 (Feb. 2009).indd 1 1/21/09 4:02:49 PM

35C page 32 (Feb. 2009).indd 1 1/22/09 4:21:22 PM

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