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2009-03-01 Eagan Business NewsBy the numbers • 52,000:Number of jobs in Eagan • 67,000:Number of residents in Eagan • 98:percentage of Eagan residents surveyed who rated quality of life excellent or good • 17:Eagan’s ranking by Money magazine in its 2008 “America’s Best Small Cities” listing (50,000 – 300,000 population) • 8:Eagan’s size ranking com- pared to other Minnesota cities • 1:Eagan’s ranking by BusinessWeek as top Minnesota city to raise kids (2009) JOURNAL OF THE EAGAN BUSINESS COMMUNITY First Quarter 2009 Vol. 8 No. 1 Business News Beginning April 15, visit www.cityofeagan.com/EBN for NEWSbriefs, Eagan Business News’ new online publication. Eagan State of the City offers six goals, many examples of success Mayor focuses on Eagan’s “far horizon” Eagan business continues to show signs for optimism: Strong commercial construction—at Rasmussen Business College, Health East, Kowalski’s and Cub, among others—continued in 2008. New restaurants, such as Café Chili Peppers, Papa Murphy’s Pizza, and Ansari’s Mediterranean Grill, quickly replaced other restaurants that closed last year. Major employers—Thomson Reuters, Blue Cross Blue Shield and Delta—continue to call Eagan home. And Biothera, a privately held biotech company, is not only undertaking a $1.2 million expansion but planning to hire 20 employees over the next two years. Maguire then introduced six two-year goals, beginning with a focus on preserving and expanding Eagan’s economic vitality. The long-awaited Cedar Grove redevelopment, he offered, is moving forward thanks to the City’s forethought in assembling all properties. The Phase I concept plan, which includes a hotel, apartment complex and senior housing, has been approved for further discussion. Infrastructure, too, is an investment in the City’s future; in 2008, Eagan’s first round- about was completed as was its first City- owned bridge, Northwood Parkway Overpass —and at $400,000 less than estimated thanks to a slow construction market. That fiscal prudence was reflected in the City’s second two-year goal, which strives not only to maintain careful management of taxpayer dollars—Eagan has an Aa1 credit and bond rating—but to pursue greater self-reliance and independence from the unpredictability of State funds. In his third-annual State of the City address on March 19, Mayor Mike Maguire offered wide-ranging examples of success in Eagan and drew attention to the City’s 2009-2010 goals—while acknowledging today’s challenging economy. “When you leave today, look across the street at what will become a full parking lot for today’s job fair at the Civic Arena, and you’ll know we are not immune,” Maguire said to packed Chamber, referring to residents who need employment. He also mentioned the growing need in Eagan to stock food shelves for needy families and individuals. But Maguire was quick to point out that the City of Eagan is faring better than many other metro communities: Home foreclosures in Eagan lagged behind many Dakota County cities in 2008, unem- ployment in Eagan ranks two full points lower than Minnesota in general, and By the numbers epage 1 Mayor focuses on Eagan’s “far horizon” (page 2 Eagan businesses face tough economy head on How’s business? inside this issue Tpage 3 Briefly: E-TV, Northwest Airlines, and free fill continued on page 4 Quinn Hutson, principal and lead architect of CNH Architects, finds his company in a similar boat. “Business is a bit slower than it has been in past years, but we can weather the ups and downs a bit better with our experience,” he says, adding that their mix of work is changing. “Our religious building projects are holding their own, if not increasing. Some clients are taking more time in moving ahead with projects. And we’re seeing a resurgence in opportunities for creative reuse of buildings.” Being open to change is a constant theme for many business owners. “It’s best to adapt to the changing environment,” says Jan Stapleton, co-owner of Insty-Prints with her partner, Joe Dwyer. She counsels clients not to completely stop their printed marketing—“that’s not necessarily the best investment in the future”—but to run printed projects in smaller quantities. “Clients are concerned about managing printed inventory,” says Stapleton. “We’re a small, customer-focused printer, so we can be flexible with small print runs.” Long before the financial downturn, Dan Sjolseth, owner of Superior Mechanical & Collision, was accepting change as a fact of life: His 27-year-old company needed to Eagan businesses face tough economy head on 2 Eagan Business NEWS Business Quick Tips “Demonstrate your commit- ment to the community—and get your company name out there—by giving back through in-kind services.” —Jan Stapleton, co-owner of Insty-Prints Outsource your meeting RFPs to the Eagan Convention and Visitors’ Bureau. “Our services are free, we guaran- tee the best rates and the best amenities, and we take a lot off business owners’ plate,” says Brent Cory, executive director, Eagan Convention and Visitors’ Bureau. Rather than build new in the current economic climate, consider creative reuse of an existing building. “In a rela- tively depressed real-estate market,” says Quinn Hutson, principal and lead archi- tect of CNH Architects,“a client could come out with a very good project with more equity than a new building.”■ First Quarter 2009 JOURNAL OF THE EAGAN BUSINESS COMMUNITY Brent Cory, executive director, Eagan Convention and Visitors’ Bureau, celebrating its 15th anniversary in 2009 “Like everyone else, we’re seeing a downturn. Our mission is to build leisure travel business, entice visitors to come for the weekend to enjoy the amenities in Eagan and throughout the region. These days, we have to be as creative as possible, be as aggressive as we can in the marketplace, and optimize the heck out of our Web site.”■ Roberta Venaglia, co-owner of Peanut’s Place, providing dog daycare, boarding and grooming since 2003 “We just moved to a new location to provide an even better environment for our dogs, including a large outdoor play area and a front reception area. This past year has been challenging financially; our new location helps us lower our overhead so we can continue to provide quality care at an affordable rate. Fortunately, our clients still need and want dog daycare.”■ “Everybody better batten down the hatches,” says Rick Waldeland, owner of 33-year-old Waldeland Jewelry & Gifts, referring to the current economic plunge. Talk to a dozen businesspeople in Eagan, and there’s plenty of worry to go around. But some optimism too. The state predicts a budget deficit of $4.6 billion; Minnesota’s unemployment rate jumped to 6.9 percent in December, with Dakota County just behind at 6.1 percent; the state’s 2008 home foreclosures hit a record 27,000, including 2,000 in Dakota County; and consumer buying is down significantly, including at hometown hitters like Target and Best Buy. Throughout 2009, local business owners will be striving to keep business steady —or at least solvent. And no one is sitting still. “Our advertising this year will be more ‘in-your-face,’ especially using TV and the Internet,” Waldeland says, adding that his sales are feeling a pinch but not the decline others might be experiencing. “We’re fortunate,” he says. “We’ve been around so long, we have a tremendous number of customers.” How’s Business? • Debuting last month was E-TV,a new television studio operated by the City of Eagan and located at Thomson Reuters’ Minnesota division. Minnesota’s first public-corporate community TV partnership, E-TV boasts a 2,500-square-foot facility, including a control room, an 870-square-foot studio and staff offices. Tune into E-TV on cable channels 15 (public access), 16 (government) and its newest channel, 20, which will feature youth- and community-driven programming. And don’t miss “Talking Business,” the Dakota County Regional Chamber’s new monthly business show, beginning April 6. ■ • Northwest Airline’s Eagan headquarters will remain open—for now. Late in January, the Metropolitan Airports Commission approved a deal with Delta that will retain—at least through 2016—10,000 Minnesota airline jobs, including the pilot training center and technology center in Eagan, and ensure Delta pays off Northwest’s $245 million bond debt by 2016. Because the debt payoff is com- pleted six years earlier than was originally required, the MAC won’t penalize Delta for closing Northwest’s Eagan headquarters within the next few years. Delta also will be required to maintain a hub at Minneapolis-St. Paul Airport through 2020. ■ • Need fill for your building or landscaping project? Thanks to the expansion of the Eagan post office, nearly 250,000 cubic yards of dirt will be removed from the site. To avail yourself of the free fill, please call 612-290-3740. ■ Eagan Business NEWS 3 2009 First QuarterJOURNAL OF THE EAGAN BUSINESS COMMUNITY Briefly David Walsh, vice-president of communications, Biothera, focusing on pharmaceutical and food-grade ingredient businesses “We recently secured a state grant to add two labs and office space. Depending on our growth, we may add up to 20 employees over the next few years. It’s great to be part of a growing company, but we’re mindful that other businesses are struggling. For us, fundraising is harder, but we have such a good story that our company is still really attractive to investors.”■ relocate from its previous Cedar Grove location due to redevelopment. Today, Sjolseth is a bit sheepish about his company’s current success: “While the winter weather kind of stunk for every- one else, January was our best month ever,” he says. Of course, Superior’s big numbers weren’t due to Mother Nature alone, but to the new more visible location on Cedarview Drive, a new service shop, added to his core body-shop business, and a major trend: people aren’t buying new vehicles. “Owners are keeping vehicles on average 9.2 years, up from 7 years,” he says. “And when they do buy, they buy used cars, which still need service work.” Looking ahead, however, Sjolseth acknowledges that the financial descent may still cause challenges for those in his industry. “If someone just lost a job and gets into a car accident, he’s not going to use the insur- ance money for body- work. People will strategize, replacing headlights and taillights, and just keep the car going down the road straight.” That’s likely a perfect metaphor for businesses in 2009. Jan Stapleton gets the last word: “Things will turn around.” ■ “I’ve never laid off anyone when business has been slow. I’ve always tried to keep our people working 40 hours a week. I’m going to be on top of this. They’re not just workers, they’re family and friends.” Rick Waldeland, owner of 33-year-old Waldeland Jewelry Eagan In addition, while Eagan has the third-lowest cost of services per capita of any Minnesota city with 50,000-plus people, “in the future, we may have to do less with less,” said Maguire, adding that the City’s conservative spending decisions and efficiencies continue to serve Eagan well. “Infostructure” bandwidth, capacity and the Internet speed needs of Eagan’s residents and employers are emphasized by the third goal: to ensure the economic competitiveness of Eagan. Noting that Internet traffic doubles every 12 to 15 months, Maguire pointed out that in 2008 the City laid 3.6 miles of fiber and installed conduit “placeholders” in under- construction trenches for future use; in 2009-2010, the City will continue to pursue technology balanced by market forces in its desire to improve broadband capability and availability. Supporting public and private initiatives addressing the City’s changing demographics is the fourth goal—especially keeping in mind the lifestyle needs of an aging population. “In our recent community survey, an astounding 98 percent of Eagan residents rated the quality of life in Eagan as excellent or good,” Maguire offered. That said, he provided further ideas for exploration, including: increasing the community’s walkability, adding more recreation program choices and 4 Eagan Business NEWS Business News epage 1 Mayor focuses on Eagan’s “far horizon” (page 2 Eagan businesses face tough economy head on How’s business? Tpage 3 Briefly: E-TV, Northwest Airlines, and free fill inside this issue 3850 Pilot Knob Road ●Eagan, MN 55122 Standard U.S. Postage PAID St. Paul, MN Permit #7732 amenities, considering changing transportation needs, ensuring a variety of housing, and much more. “It’s all the rage to ‘Save the Planet in Five Easy Steps,” joked Maguire about the fifth goal, “but that’s not what this goal is about.” Instead it focuses on environmental sustainability and energy efficiency, exploring alternative energy sources, per- forming energy audits of City buildings, and trying to reduce “our footprint and our costs, both financial and environmental.” The sixth goal—“strengthening our community through volunteerism and civic engagement opportunities”—called attention to the Fourth of July celebration at Central Park, Eagan’s Market Fest, Showcase Eagan, the City’s new community television partnership with Thomson Reuters, and neighborhood rain garden projects. Maguire then highlighted examples of exemplary business service to Eagan, including Patsy Thomas of Eagan Floral who moved her business to smaller location rather than lay off her employees; and Blue Cross Blue Shield CEO Pat Gerhety, whose company is “taking an active role in improving Minnesotans’ health while containing costs.” In conclusion, Maguire recalled other tough times in Eagan’s history, noting that “our community has always found a way forward, adapting to new challenges with innovation and hard work.” ■ Eagan’s “far horizon” continued from page 1 Editor Karin B. Miller, Working Words, Inc. Designer Brent Kastler, Kastler Art & Design Like our new look? Send comments and story ideas to EBN@cityofeagan.com.