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July 1993

State Roundups
Minnesota

Appleton built it ... and they came

City officials in Appleton have reason to smile these days. They signed a contract in April with the Commonwealth of Puerto Rico to fill all 516 beds at the Prairie Correctional Facility, the municipally owned and operated medium-security prison.

This is good economic news for the town of about 1,800 and for largely rural southwestern Minnesota because the prison, built as an economic development venture, sat empty for nearly a year while contracts for inmates were sought.

However, the facility is not without problems. An inmate disturbance in mid-June underscored the communication problem among inmates and guards, and some state officials have voiced concern about the prison's readiness. But prison officials are confident that the facility will fare well during its July inspection and attain full licensing status.

The $28.5 million facility, built to stem the tide of an economic downturn in the area, will provide as many as 170 jobs when the inmate transfer process is complete in late summer. "Eighty-one percent of the first 113 employees live within 30 miles of Appleton and 56 of those have Appleton addresses," says Bob Thompson, Appleton city manager.

The facility is unique in the United States, according to Thompson, and has brought optimism to the five-county area. "This project has had a positive effect on the whole region. It shows us that people want to stay in this area or move back here as long as there are jobs," says Paul Michaelson, executive director of the Upper Minnesota Valley Regional Development Commission.

Retail business is up and grocery stores are competing for prison concession contracts, while Appleton is moving ahead with infrastructure improvements such as a new airport, water tower and sewers. A 34-unit Super 8 Motel was built during the prison's construction phase, and additional single and multi-family housing units are under construction.

To accommodate the Spanish-speaking inmate population, a full-time Spanish teacher has been hired. "We've found some good people in the area that speak Spanish," Thompson adds.

John Kohl, interim warden at Prairie Correctional, says Spanish classes have been accelerated for prison staff, who are offered incentives for passing proficiency tests. "We've added a unique new job description for inmates—'interpreter.' Signage, policy statements and inmate handbooks have all been translated to Spanish," Kohl says.

Prison staff has ordered library books and newspapers written in Spanish and has made arrangements with a local cable television company to access a Spanish television channel. In addition, five Puerto Rican correctional officers are temporarily working at the prison to help with communications between prisoners and staff in return for training at the on-site prison academy.

—Christine Power

Common materials evolve into new products

Two new products, both made from recycled resources, have emerged from south-central Minnesota: a granitelike building material made of newsprint and soy resin, and an erosion-control block composed of old tires.

Environ, a building material that is made from recycled newspaper and local soybeans, was developed by the fledgling Phenix Composites Inc. of Mankato. Somewhat flexible and workable like wood, Environ is three-and- one-half times harder than oak and contains no hazardous or toxic materials. The material can replace wood in construction of furniture, ceilings, walls, counter tops, awards, plaques and signs.

The company expects to have samples of Environ to industry by midsummer and an inventory by fall, according to Scott Taylor, vice president of sales and marketing. Funding for production machinery was obtained through a $1 million grant, the top award from the Alternative Agricultural Research and Commercialization Center, a federal agency that promotes alternative uses of agricultural products.

With 25 employees now, Phenix expects to hire 100 more over the next few years as it reaches full production. In addition to providing new jobs in the area, Environ may benefit local soybean farmers: One bushel of soybeans is used per 22 board feet.

Whereas Environ is intended to ease the depletion of forests and stimulate the farm economy, another Mankato business is out to reduce an unsightly commodity: discarded tires.

Multi Bloc makes machines that form interlocking blocks out of shredded tires. Latex and a hardener are added for adhesive and strength. The Legolike blocks, which come in two sizes, are used along river banks, lake shores and in ravines to control erosion. The larger block weighing 750 pounds uses 40 car tires.

Multi Bloc sells the machinery and license agreements to rubber processing plants, then receives a royalty for each block made. Some municipalities have expressed interest in the equipment; in the United States, 3 billion tires are stockpiled, and 250 million more are generated annually.

The three-year-old company, which expects its crew of 17 to reach 24 during peak production, currently has sales orders for $1.6 million worth of its machines, a figure that is projected to double by year end.

Why both businesses began in Mankato is no mystery to either company. Terry Drews, Multi Block president, says that the city is active in luring small businesses. When Drews sought a location for his business, Mankato responded with equity investment, advice and a year's lease in its small business incubator building.

Further, Mankato State University's influence is woven tightly into the fabric of the business community. Phenix, for example, is one of three spinoffs of Rho Delta, a company formed by a group of Mankato State University professors to market their inventions.

Larry Forsyth, director of planning and development services for the city, says Mankato is experiencing a spurt of commercial growth, mainly in retail and in the expansion of existing companies.

—Nettie Pignatello