2011-12-01 Eagan Business NewsFourth Quarter 2011 Vol. 10 No. 4
Business News
JOURNAL
Eagan add;
A high-tech
Need offsite data
storage or disaster -
recovery backup?
You'll soon have
a new high-tech
option in Eagan.
Until now, Minnesota
businesses with
offsite data -storage
or disaster -recovery
needs had only one
primary option: the
Minnesota Gateway in
downtown Minneapolis.
BUSINESS COMMUNITY
business
center
1
The Connexion, a privately owned and operated 138,000 -square -foot data
center, will be located along Yankee Doodle Road, west of Pilot Knob.
Not anymore: The City of Eagan announced
in November the planned development of a
new 138,000 -square -foot, carrier -neutral data
center called the Connexion, scheduled for
completion by the third quarter of 2012.
"Customers tell us there is a current lack
of high-quality, data -center options in the
marketplace," says Doug Hollidge, CEO of
Five 9s Digital, the North Carolina firm that
plans to develop and own the Connexion.
"In our solution, the Connexion
will provide high connectivity,
private data suites, route
redundancy and environmental importar
efficiencies." It will also act benefits
as its name implies — as a highly ot
connection point to multiple redunday
telecom providers. to
serve -
Brett Severson of Jones
Lang LaSalle, a consultant to
the project, applauds the
approach: "Because the
Connexion will be the first multi -tenant,
LEED-certified, Tier III facility of its kind,
purpose-built to accommodate the latest
needs of data -center users, we think it will
drive market demand."
Feasibility study determined viability
Less than a year ago, the City of Eagan —
building on its already favorable fiber -optic -
rich environment for large businesses and
with the close cooperation of the Eagan
Technology Working Group —
ands the
proactively funded a $185,000
? long-term feasibility study to determine
the viability of adding a carrier-
. d and neutral data center to the
icenter City's business offerings.
The idea, says Mayor Mike
isiness Maguire, was to bring together
the technical analysis and
market forces to allow such
an investment to happen.
continued on page 2
Fourth Quarter 2011
JOURNAL OF THE EAGAN BUSINESS COMMUNITY
Eagan jobs increase, biz climate good, say survey respondents
Business respondents shared largely positive feedback to a
survey distributed by the City of Eagan in September. Most
impressive: Thirty-six percent of respondents have added jobs to
their firms since 2009, while 37 percent have maintained staff
levels; only 27 percent have reduced staffing. Additionally,
37.2 percent and 54 percent, respectively, expect to increase or
maintain staff levels during the next 24 months. Just 2.9 percent
expect to make a staffing decrease; 5.9 respondents were
unsure of future staffing needs.
"While we know the economic downturn has affected many
job -seekers, it's great to learn how many Eagan businesses are
hiring," says Mayor Mike Maguire. On a similar note, the survey
also looked at businesses' physical growth, with 51 percent
maintaining their square footage and 14 percent expanding
over the past two years; just 6 percent had reduced their
business's footprint.
The survey was sent to approximately 1,900 businesses
throughout Eagan, with a 10 percent response rate by the close
of October. Fifty-three percent of businesses responding had been
in business ten -plus years, 33 percent three -to -ten years and
14 percent two years or less.
High marks for business climate
Overall, Eagan's business climate is excellent or good, said a
whopping 80 percent of survey respondents; only 6.4 percent
said it was poor. While 37 and 45 percent, respectively, asserted
that Eagan's business climate was better than the Twin Cities and
the nation as a whole, 56 percent and 49 percent thought it was
about the same. Just 7 and 6 percent, respectively, thought it
was worse.
High-tech data center continued from page 1
Because of Five 9s' experience in site selection and
development of mission -critical, multi -tenant facilities, the firm
was selected to conduct the study and given the option to
develop and own such an Eagan facility if the study proved
compelling. Together with Five 9s, five other firms comprise
the design -and -development team: Jones Lang LaSalle, Pope
Architecture, MMC Mechanical Contractors, Hunt Electric and
McGough General Contractors. Fifty construction workers will
have jobs thanks to the project.
This new data center, known as a colocation facility, will
be open to all telecommunications and Internet service
providers, as well as local and regional companies needing
2 Eagan Business NEWS
According to respondents, the top four serious issues facing
Eagan businesses are, in order of importance, the general
economy, health insurance, doing more with less and taxes.
Other issues weighing on local businesspeople included
an affordable Internet, employee training, lack of available
credit/business financing and finding the right workers.
Split response to government intervention
The survey also asked respondents to comment on
the topic of government intervention: Fifty-one percent
welcomed City intervention in business issues, while
49 percent saw the City playing no role. Of those who
desired assistance, some respondents wanted the City
to lower property taxes, lessen government regulation,
assist with Internet availability and/or allow more business
signage. Eighty percent of those who had used City services
rated them excellent or good; and 81 percent judged City
staff members to be extremely helpful.
Other noteworthy findings/comments:
• 16.7% of respondents were home-based business
owners, desiring help with fiber -optics, an Eagan business
directory, Wi-Fi and an incubator office
• 80% found getting a City permit/approval fast, efficient
or reasonable
• 45% wanted to enable employees to work at home if
needed but said higher Internet speeds are required
• Some respondents would like to have high-speed Internet
at business parks
• Some wondered about the possibility of businesses banding
together to purchase employee health insurance ■
offsite data -storage or disaster -recovery options. Overall
private investment in the project is estimated to be between
$75 and $100 million, including initial facility development
plus subsequent tenant investment and installation of
mission -critical equipment.
With the addition of the Connexion, says Tom Garrison,
liaison to the task force, Eagan will attract data -center
end-users due, in part, to the Upper Midwest's climate that
allows data centers to use "free cooling." Minnesota also has
a relatively low risk of natural disasters, compared with other
areas of the country.
Additionally, the Connexion will solve the region's single -point -
of -failure problem: Many area high-capacity fiber networks
offer some route diversity for fiber-optic lines and self -healing
JOURNAL OF THE EAGAN BUSINESS COMMUNITY
Ring Road signals increased business traffic
A Tires Plus employee rolled to first place during the grand
opening of the new Duckwood Drive Overpass in mid-
November. The race -across -the -bridge event brought out the
winning tire roller, plus Chili's waiters running with trays of
water glasses and Best Western employees pushing maid
carts. The light-hearted event—complete with mascots,
duck -topped trophies and a champagne christening of the
bridge that spans 1-35E—celebrated serious business,
20 years in the making.
"Creating this Ring Road has been a transportation priority
for city councils since 1991," says Tom Hedges, Eagan's
city administrator. "The road benefits residents, shoppers,
businesses and more."
Now complete with the opening of the overpass, the Ring
Road enables motorists to bypass 1-35W and the Yankee
Mayor Mike Maguire (far left) and City Councilmember Gary Hansen
(far right) flank representatives from Chili's, Spring Hill Suites and
Tires Plus at the opening of the Duckwood Drive Bridge.
networks, yet often funnel through the
Minnesota Gateway before transmitting
to the rest of the country or world —
a problem first recognized by the
Minnesota Ultra High Speed Broadband
Task Force in 2009. Now there will be
two such colocation centers in the area,
which makes both entities stronger.
Among the firms already committing to be one of the Connexion's
fiber -service providers is XO Communications. Says Mark Feil,
the firm's general manager for Minnesota: "With our nationwide
fiber-optic network running directly through Eagan, we are able
to provide another major route for Internet traffic into and out
of the Upper Midwest for businesses' IP connectivity needs." ■
Doodle/Pilot Knob
intersection—Dakota
County's second
busiest. Instead, driv-
ers and pedestrians
can travel a three-
mile loop, packed
with local businesses;
it also provides a
faster route for
emergency vehicles.
The route includes
2011 Fourth Quarter
Duckwood Drive, Federal Drive, Central Parkway, Northwood
Parkway and Denmark Avenue.
Judging from the Ring Road's previous success with the
opening of the Northwood Parkway Bridge three years ago,
more traffic will be brought to the area. "The number -one thing
[the Northwood Parkway Bridge] has allowed is one more way
for customers on the other side of the freeway to access our
store," says Michael MacRae, Byerly's general manager.
"We get a lot more business from people on Denmark Avenue
accessing us on the bridge and zipping by our store here.
If you're in a place that increases traffic, that's key."
While businesses near the new Duckwood Drive Overpass
have yet to experience the business boost from the new route,
dozens of businesses, including other grand -opening event
participants—Caribou Coffee, Holiday Station, Rasmussen
College and Argosy University—will likely benefit.
The Duckwood Drive
Overpass and the
Northwood Parkway
Bridge cost about
$8.5 million; both
were built by Lunda
Construction. The City
paid for the majority
of each, although
County and Federal
agencies provided
$1.6 million. ■
Tom Colbert, Eagan's
longtime Director of
Public Works, takes
the first official ride
across the bridge in
the truck that cut the
ceremonial ribbon.
EBN is printed on paper which contains a minimum of 10% post consumer fiber.
Eagan Business NEWS 3
City of Evan
3830 Pilot Knob Road • Eagan, MN 55122
Editor Karin B. Miller, Working Words, Inc.
Designer Brent Kastler, Illumine Associates, Inc.
Send comments and story ideas to
EBN@cityofeagan.com.
Briefly
• PEOPLE: Biothera has named Patricia Molloy, M.D., its chief
medical officer; she will be responsible for the clinical development
of Imprime PGG, an immunotherapeutic oncology drug.... Blue Cross
and Blue Shield of Minnesota announced the appointments of three
new officers: Anthony Marichal is a Client Services vice president
with a focus on operational support; Michael McGuire is a Client
Services vice president responsible for customer -facing business
processes; and Ernest Valente, Ph.D. is vice president of Health
Economics in the Finance Division.
• BUSINESS: To free up cash to invest in a variety of wellness
initiatives, Blue Cross and Blue Shield of Minnesota plans to sell
and lease back 1.1 million square feet of property—nearly all the
office buildings it occupies in Minnesota, including its six buildings in
Eagan.... Eagan -based Delta Dental of Minnesota plans to add
approximately five individual health plans to its current dozen or so
over the next two years.... Memphis -based Pinnacle Airlines will close
Mesaba Airlines' Eagan headquarters Dec. 26, cutting 193 jobs;
roughly 600 jobs will remain in Minnesota. Pinnacle purchased
Mesaba for $62 million in 2010; both airlines are regional carriers
for Delta Air Lines.... Kaman Industrial Technologies
Corporation will lease nearly 30,000 square feet from Meritex
at the Lexington Corporate Center in Eagan; the industrial -part
distributor will use the space for a distribution and customer -service
center.... After several years of significant losses, Minnesota's
industrial employment only dropped by one percent from October
2010 to October 2011, according to the 2012 Minnesota
4 Eagan Business NEWS
Standard
U.S. Postage
PAID
St. Paul, MN
Permit #7732
Manufacturers Register.... Eagan's Outdoor Greatroom was
recently awarded a federal patent for an electric grill.... Thomson
Reuters' FindLaw has introduced Legal Pulse, legalnews.findlaw.com,
which offers continuously updated legal headlines, plus news, photo
feeds and analysis; also, Thomson Reuters' Eagan campus was
recently honored with a "highly protected risk" (HPR) award, an insur-
ance -industry classification, for its best -in -class facilities.... Frandsen
Corp. of Eagan moved one of its companies, Springer Magrath,
from McCook, Neb., to Glencoe, Minn., in October. The 15 -employee
company manufactures and distributes stock prods and veterinary
supplies.... The YogaSoul Center, located on Town Centre Drive, was
listed in Minnesota Monthly's October issue as one of the best places
in the metro to take yoga classes.... Despite the fire this fall at
Cherokee Sirloin Room, brothers Jim and Rick Casper continued
their nearly 20 -year Thanksgiving tradition, providing over 3,300 free
Thanksgiving dinners to needy individuals at their West St. Paul
location while the Eagan site is being remodeled.
• GOVERNMENT: Eagan will likely be named one of the first
Minnesota GreenStep Cities by completing all of the required
best practices for Step III recognition. That's thanks in part to the
two-year-old Eagan Energy and Environment Advisory Commission
and the fact that the City Council has made sustainability a priority..
Five-year-old Eagan Market Fest was voted top large farmer's
market in Minnesota and placed among the top 20 in the nation in a
contest sponsored by American Farmland Trust. ■