2006: Turning point year for business in Bismarck-Mandan

 
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Jan 14, 2007 - 04:04:40 CST
What a year for business in Bismarck-Mandan.

Storefronts climbed the horizons in the north and south, while others closed in the shadows of the box stores. New restaurants piqued palates, and old restaurants got facelifts. Gas prices rose, dropped and rose again. Rental property availability tightened and pre-owned home prices increased by nearly 14 percent over 2005. Companies expanded, or downsized, or stayed comfortable in the Bismarck community.

"Ithink 2006 was a real turning point year for this community,"said Kelvin Hullet, president of the Bismarck-Mandan Chamber of Commerce. "Ithink we accomplished a lot of things we intended to get done in 2006."

Some of the highlights.

Raging retail

The new signs around town are hard to miss, with two new Super Wal-Marts, a new, larger Target, and numerous additions to the Pinehurst Square Shopping Center.

An Old Navy came to town, with a David's Bridal opening close behind it. An I Sold It!eBay store took up residence in the square, too, and Vlana Vee's set up shop, with its boutique, contemporary furniture pieces.

Gateway Mall was and still is going through a complete transformation, with new owner Raymond Arjmand and mall property manager Cheryl Hansen picking up the pieces from a struggling space and maxing out the retail space within six months. Arjmand has said he plans to pump more than $10 million into the mall's renovation, and has hinted about tempting Macy's to Bismarck.

But with the addition of major national chains came community losses. Marv's Hardware in Mandan closed its doors after 45 years in business, and Mandan Drug changed hands after the owners decided it was time for a break. True Value in Bismarck shut its doors to competition, and Ace Hardware announced their intentions to move into the old space.

Restaurants opened and changed, too:Within the last couple of months, a Qdoba and Johnny Carino's opened up. The head chef at Castillo's moved to Meriweather's, and Speedway was bought and is still being transformed by an owner of East 40 into Prime Steer, a beef smokehouse.

New at Northern Plains

Retail growth could have been overshadowed by the addition of a transmodal facility in southeast Bismarck, and the commitment of its first two tenants, Hullet said.

Fargo-based Bobcat moved into its facility at Northern Plains Commerce Centre in July, and an international peas and lentil leader, Saskan Pulse Trading Inc., picked up the second lease.

With the addition of the $10 million pulse crops processing facility comes the potential for pulse crops for farmers in the area, state Agriculture Commissioner Roger Johnson said in an interview earlier this year. Already, the state is the nation's leader in annual peas and lentils production, with 60 percent to 70 percent of that being exported out of the country.

The new facility, which will be called United Pulse Trading, will be 50,000 square feet and employ up to 60 workers, Murad Al-Katib, president of the company, said. Its annual processing capacity will be 150,000 metric tons, and it could use up to 7,500 rail cars a year.

Tapped-out work force

With the growth came questions of sustainable infrastructures, such as expanding schools, building and maintaining roads, providing amenities for a growing population base.

But 2006's biggest challenge, officials say, was its work force.

"One of the key challenges going into 2007 and beyond is how do we continue to build on those primary sector jobs,"Hullet said.

Because truly, worker shortages prevailed across the markets, from the hospitality industry, to general labor, to nursing and medical assisting in the area's hospitals.

While the western part of the state struggled to attract and retain workers to oil fields, Bismarck companies and city officials thought outside of the box to do the same for their own labor forces.

In the summer, Mandan's Cloverdale Foods Co. began to look at the long-term realities of a tapped-out general labor work force in Bismarck, and focused their attentions on attracting groups from outside of the state.

"We're targeting certain ethnic groups, and going to them,"said Scott Russel, "Instead of waiting for them to come to us, we're going to them."

Dan Schumacher with Job ServiceNorth Dakota said the shortages shouldn't change drastically in 2007, but was encouraged by recruiting efforts and an in-migration trend that seems to be bringing individuals from the coasts into the Midwest.

"We do see an increasing number of individuals from out of state coming into our part of the country,"Schumacher said. "That, of course, helps offset the tight labor market."

Looking forward

Despite the growth and the challenges that come with it, Hullet assured that Bismarck-Mandan is not experiencing another "boom-bust"cycle, but a sustainable, steady shift to a solid city.

And the nation's taking notice. The area has been featured numerous times in the Wall Street Journal and New York Times, which Hullet said helps instill a sense of pride in area residents.

"There's been an attitude shift within the community,"Hullet said. "What's occurred in the last year has really created a sense of pride in this community."

(Reach reporter Crystal Reid at 250-8261 or at crystal.reid@;bismarcktribune.com.)

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2006: Turning point year for business in Bismarck-Mandan
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