Groundbreaking in Burnsville

Quality Ingredients Corporation Breaks Ground on Job-Creating Expansion

Quality Ingredients Corporation announces that construction is underway to expand their certified spray dry operation for food ingredients, and held a ground-breaking ceremony today at their Burnsville, Minnesota plant. Attendees from the community included Elizabeth Kautz Mayor of Burnsville, Craig Ebeling, Burnsville City Manager, Chris Slania, City Planner, Skip Nienhaus, Economic Development Coordinator and Jenni Faulkner, Community Development Director. Attending from Appro Development, the general contracting firm for the project were Jack Matasosky, CEO, Jim Connelly, EVP/Design Lead, Kathy Morse, VP, and Pat Simpkins, Project Manager.

The expansion will double the company’s spray dry capacity, offer customers new and unique capabilities for specialized ingredient processing, and add 20 skilled manufacturing jobs to the area. Four positions have been filled, including the hiring of two veterans. Recruiting efforts are underway for the remaining positions.

Work began in late 2011 to manage the logistics and scheduling required to expand this complex operation, and to customize the two new tower dryers to meet the company’s exacting specifications. Earlier this year, interior work began to accommodate the added equipment in a manner that protects the integrity of current operations. “To effectively scale up a truly first-class operation is no small undertaking, and we are extremely fortunate to have Bob Freemore lead our team of industry experts and qualified contractors”, said Isabelle Day, CEO of Quality Ingredients Corporation. “This expansion will reflect the industry-leading quality that has come to symbolize the products and service we offer.”

Construction will continue through September, with final completion expected in October. “We will integrate the new dryers into our current operations as swiftly as possible to meet the growing demand for our services”, noted Day.

About Quality Ingredients Corporation

Celebrating its 25th year of service to the food industry, Burnsville, Minnesota-based Quality Ingredients is a 100% Employee Stock Ownership Plan (ESOP) company leveraging expertise in drying technology to create proprietary and custom powdered ingredient systems as well as provide toll drying and blending services for food processing companies across North America and beyond. Please visit www.qic.us for more information.

In It Together

I am a member of a 150 year old Protestant denomination called “Covenant.” I have been learning more about our denomination’s history the last year or so, and some of its founding principles. One of its main principles is that we are all Christian brothers and sisters working together for the common cause of Christ. Our particular church location adopted the theme “in it together” this year, to emphasize the relevance and applicability of our denomination’s founding beliefs in today’s society.

I have recently realized that this motto is not just applicable for those in our denomination or for Christians in general, but for all people. It emphasizes a team spirit in accomplishing common goals such as our construction projects, and gives a positive way of looking at solving problems, when all team members realize that, when one of us has a problem, we all have a problem.

The above philosophy leads toward an all-for-one and one-for-all “three musketeers” attitude among team members, and can make a person realize that most any problem can be put into proper perspective and solved expeditiously, if one realizes how much potential support exists within the team in the form of the other team members.

I’ve expressed “in it together” to our customers and co-laborers on projects recently, and have been pleasantly surprised with how in agreement people are with the philosophy. Just talking about it builds team attitude. When problems later arise and we all work together to solve the problem, or when people abandon their own work efforts for a minute or two to help someone else who is struggling and needs a bit of help to keep their work going, it reinforces the team building in an even more demonstrative physical way.

“In it together” has become my theme verse this year in everything I do. It has comforted me, inspired and bonded together others, advanced our company’s goodwill with those we deal with in business, and will likely result in higher profits and more business. Why? When everyone works together to solve problems, problems are minimized, resulting in less cost to those who ultimately have to pay for the fix. And who wouldn’t rather work with someone more interested in the common good of solving each other’s problems than someone who points fingers and stands back to allow others to fail when they have difficulties? Not many people I know. And our customers generally have these same beliefs. They wouldn’t be very good business people if they didn’t recognize such common sense principles and their value.

In it together: Good for you, good for me, good for others. Give it a try! I guarantee you’ll like it!

Pat Simpkins,

PE, LEED AP, PMP

Project Manager, APPRO Development

Sustainable Commercial Development

Last night, I was watching an interesting program on Minnesota Public Television (TPT) called “Shaping the Urban Environment.” During the show they talked about the challenges and decisions communities are faced with when developing land in an area that has scarce and delicate natural resources. They began by explaining how commercial construction and even residential development of the past generations did not focus on their impact on the local environment, particularly. This piece just reinforced how important it is for development companies to make sure they are integrating green construction options for a sustainable future. This the best way for the commercial construction industry to make sure they are a focus on environmental sustainability. APPRO Development is committed to sustainable construction services and has been for 25 years.

Below is the link if you want to watch the whole program:

http://www.tpt.org/?a=programs&id=19807

Think Green – Benefits of going paperless

I know we’re all somewhat de-sensitized to the words “environmentally friendly” and “go-green” as companies abuse the terms as marketing approaches, such as labeling something “low fat” when it’s so high in sugar the full fat version would probably be healthier! ANYHOW… We, at APPRO Development and CERRON Commercial Properties, feel that we live on a pretty cool planet and would like to do our part where we can to take care of our neighborhood. In doing so, we are also finding ways for us all to save a bit of “green”, dollars that is!

We’ve made the switch over the past few months to create our subcontract agreements, change and purchase orders, and other documents using Adobe software so that we are able to send them via e-mail. The benefits in doing so are:

Quicker turn around time = more efficiency on the job site and increased workflow, this benefits the Owner of our projects tremendously by getting the projects started on time and keeping them on time!

Better communication = less chance for confusion and increased accuracy. Whether the job is here in Minnesota or on the plains of North Dakota or Montana, if there’s wireless coverage the subcontractor can view contracts or change orders in their e-mail inbox vs. needing to “check back at the office”. Any changes to the contract can be easily communicated with the Project Owner for review as well.

More $ in everyone’s pockets!!! By opting for electronic contracts, we are able to reduce the amount of supplies used, including: printer ink, paper, envelopes and stamps, the savings passed on to the Project Owner as well! Once the signature pages are printed and signed, they can be faxed or e-mailed back to us, therefore saving the subcontractor the cost of stamps and envelopes, along with providing a peace of mind that their documents will arrive quickly and safely to us.

Easy filing – We are saving our documents in PDF files so that they can be stored electronically to access for years to come. Once we scan all supporting documents and signature pages with the contract, change or purchase order, we e-mail a copy to the appropriate person(s) for their records, helping everyone to “be green”.

Call APPRO Development to discuss sustainable construction services for designing, constructing or remodeling energy efficient buildings.

New Health Care Tax 3.8%

In 2010, Federal legislators passed a 3.8% tax on some real estate transactions to help fund $210 Billion for President Obama’s Healthcare Plan and goes into effect in 2013. While it will not effect all real estate transactions, it will significantly affect commercial real estate transactions that are typically purchased with pass through entities such as Limited Liability Corporations or Sub-S Corporations. The type of entity that is common for small business owners.

In 2013, real estate transactions may have a 3.8% tax on some (but not all) income from interest, dividends, net rents and net capital gains for individuals (or entities that have pass-through income) with an adjusted gross income (AGI) above $200,000 and couples filing a joint return with more than $250,000 AGI.

Most small businesses are formed as pass through income entities. This income is different than W-2 income. If you own commercial real estate, the IRS does not allow you to fully deduct your expenses when they are actually paid. Property improvements must be amortized over 39 ½ years. In essence you have to deduct the cost over time in the form of depreciation, instead of taking the expense in the year it occurred in to reflect the useful life of the property.

It is not uncommon for small business income to be over $200,000 on the tax return, but since expenses aren’t realized immediately, the number is inflated. At this level, income taxes are 35% to the IRS and 8% to Minnesota. With the additional healthcare tax that is 46.8% tax rate. Commercial property taxes are typically $3.00/SF – $7.00/SF per year. To put it in perspective, a 2,000 square foot building (or small shop) would pay $6,000 – $14,000/year in property taxes. This 3.8% tax will only come into play if a property is sold or inherited, so consult your tax advisor to see how this affects you. You may want to consider selling your property this year to avoid the tax.

This legislation was passed along party lines March 23, 2010 with little or no prior discussion on this tax.

The National Associations of Realtors has a brochure with examples:

: Brochure Link

MNCAR Report

Thank You APPRO Development!!!

This is my last week with APPRO Development and it has been a great five years working and growing with the company. I am very fortunate to have learned the commercial and industrial construction world from such a reputable company. There is a lot that I will miss about construction especially the relationships that I have developed with owners, subcontractors and my fellow co-workers. I wish APPRO Development the best of luck in the future. I believe you are positioned to expand the company and secure your future as a great design build general contractor!

Should you refinance?

I recently received an e-mail from SPEDCO with the following information. The 20-year SBA effective rate is 4.711% for the month of February, continuing the low rate trend we’ve been witnessing for the past fifteen months. (Please be aware this rate applies to those loans that were approved after October 1, 2011. Loans approved before that date have an even lower rate of interest because they do not carry one of the new servicing fees instituted recently by the government.) The 10-year rate is even sweeter: approximately 3.818% %!

Please note the approximate interest rate for 504 loans using debt refinance provisions are 4.914% for 20-year loans and 4.341% for 10 year loans as the SBA charges a higher rate of interest for loans in this category.

On October 11, 2011 SBA published a major revision to the current 504 temporary debt refinancing regulations. These enhancements have made the 504 program much more useful to many small businesses seeking to refinance their debt or obtain today’s extraordinary 504 rates.
New! Refinance of Eligible Business Expenses allowed for first time, including:
 Utility Bills
 Property taxes that are not past due
 Rent paid to an unrelated party
 Salaries
 Inventory
 Pay off/pay down Business Line of Credit
 Building upkeep and improvement

Keep in mind that this program enhancement is in effect only for 7 more months, until September 27, 2012. SBA is expecting that the $7.5 billion it has set aside for the program will be fully used up – so don’t delay to make certain you receive the full benefit of these and other changes.

For information about refinancing options for your commercial project, please contact the team at APPRO and CERRON.

Building Additions/Remodels

Appro Development is adding an additional 27,000 S.F. to the existing 50,400 S.F. Souris Valley Hotel in Minot, North Dakota

Appro Development has completed all of the framing and roofing on the building and is now working on all the interior plumbing piping, HVAC duct work, electrical rough ins and sprinkler piping. Along with that we are starting on the exterior stone work, siding and EFIS.

The 27, 000 S.F. additions will consist of 47 new hotel rooms to help accommodate with the booming economy in North Dakota. The hotel addition is expected to be completed in early April 2012.

As a General Contractor for the last 20 plus years APPRO Development has remodeled building and have added additions to many office, warehouse and production areas and passed along savings to the building owners. Call us today at APPRO Development if you plan to remodel, build or add on this summer.

Construction update!

APPRO Development has completed footings and is in the process of installing the Wells Concrete wall and roof panels at ConAgra Foods in Lakeville, MN. APPRO Development is the design build general contractor for the project.

The 27,700 SF addition will be used to expand ConAgra’s current shipping abilities and consists of 16 dock doors, trailer staging areas, and a truckers vestibule and office. The project is expected to be complete June of this year.