TUESDAY, FEB. 12, 2019  |  IN THIS ISSUE  
 
Paul Pate 
Iowans nearly broke the state record for most new businesses created in one month during January 2019, according to the Secretary of State's Office.  
 
The office reported processing 2,195 new business filings last month, just nine shy of the previous record of 2,204, set in March 2018.

Iowa is also on pace to again break the annual record for new businesses created in a fiscal year. Nearly 14,000 new business filings were processed during the first seven months of fiscal year 2019, which runs from July 2018-June 2019. The annual record was set in fiscal 2018, with 23,649.

"This is another indication that our economy continues to grow and thrive," Secretary of State Paul Pate said in a release. "Each of the past three years, entrepreneurs have launched more than 20,000 new businesses in Iowa. The majority of jobs are created by small businesses, and since we also have the lowest unemployment rate in the nation, Iowa is clearly moving in the right direction."

Mr. Pate's office launched a Fast Track Filing system for new businesses last year to expedite the process. The average processing time during regular business hours is now less than 10 minutes, he said.  
 
Mike Draper, shown on the cover of this week's CBJ. 
Des Moines-based RAYGUN, which operates stores in both Cedar Rapids and Iowa City, has reported raising $582,000 in funding, according to a filing with the Securities and Exchange Commission.  
 
The chain, famous for its tongue-in-cheek, Midwest-themed slogans on t-shirts, postcards and other items, brings in about $4.3 million in annual revenue, according to corporate insight website Crunchbase.

Reached by email, RAYGUN founder and owner Mike Draper said he raised the funds by selling company member units to "non-managing members" - mostly other business owners he's known for years, and most of whom are Iowans.

Mr. Draper stressed these members were not professional investors or venture capitalists, adding "I did all one-on-one meetings, pitching individuals that I wanted to include." About $18,000 of the company's member units were set aside for employee ownership. 
 
"As we head into a new phase and slightly new structure, I wanted to make sure to include those who have been here a long time and give them some ownership as a sign of appreciation for everything they do," he said.

The company will remain an LLC with Mr. Draper continuing as the only managing member, although the new investors will act as a "cool, informal board."

"As we plan to grow into the future, I wanted to strengthen our balance sheet, as well as include some other great entrepreneurs," he added, underlining that he was "doubling down, not cashing out."

In a separate interview with the CBJ last week, Mr. Draper described how one early stumble helped the company grow from a single Des Moines shop to a small Midwest empire over 14 years. The Van Meter native, who returned to his parents' home in 2005 with the idea of launching a screen-printing operation, outlined several fumbles that almost put the fledgling company out of business - including an ill-fated venture into the jeans-making business that turned into a visionary moment. CBJ members can read the full feature in this week's edition of the CBJ.
 
The Corridor Business Journal has announced its speaker lineup for the upcoming CBJ Commercial Real Estate Luncheon. 

The event, which will be held March 7 at the Coralville Marriott, will connect the dots on the changing commercial real estate landscape. Topics will include retail, multifamily housing and senior housing, which is in the midst of a regional boom.

Art Cox, director for the University of Northern Iowa Center for Real Estate Education, will begin the program with a discussion on shifting demographics within the region, and the effect they've had on local real estate economies.

Following Mr. Cox's presentation, Kenneth Riggs, Jr., president of Situs Real Estate Research Corporation (RERC), will deliver a keynote on the state of retail and multifamily housing. Mr. Riggs has long been recognized for his research in the real estate industry. He spearheaded the primary research behind the "Emerging Trends in Real Estate" report until 2000, and serves as publisher of the RERC Real Estate Report and co-publisher of Expectations & Market Realities in Real Estate, an annual forecast report.

Dustin Shandri, senior analyst, market research and analytics at Life Care Services, will follow up with a presentation on senior housing. Mr. Shandri will provide insights into broader senior housing trends nationally and what they mean for the Corridor.

The event will conclude with a local development update from City of Coralville Administrator Kelly Hayworth.

Tickets are $50 per individual and $450 per table of 10. For more information or to register, visit www.corridorbusiness.com/events or call Ashley Levitt at (319) 665-6397, ext. 311. Registration closes February 28. 
Story4Iowa reps lead charge for biodiesel tax credit renewal
 
A biofuels plant in southeast Iowa. CREDIT EMERY STYRON 
Iowa's biodiesel producers, farmers and fuel distributors are urging Congress to act swiftly on passage of a biodiesel and renewable diesel tax credit, which expired in 2017.
 
Under the leadership of Iowa Rep. Dave Loebsack, a Democrat, and Illinois Rep. Darin LaHood, a Republican, 44 representatives signed and delivered a letter to House leaders this week, saying they "strongly support a multi-year extension of the incentive to provide the policy certainty necessary to help the biodiesel industry and rural economies continue to grow."
   
The letter notes that the biodiesel tax incentive was retroactively renewed for 2017 in February of last year, but left expired for 2018 and beyond.

In a statement, Iowa Biodiesel Board Executive Director Grant Kimberley thanked Mr. Loebsack for spearheading the House effort, along with newly-elected Iowa Representatives Cindy Axne and Abby Finkenauer for signing onto the House letter of support. Rep. Steve King also signed onto the letter.

Noting that Mr. King is a Republican and the three other Iowa representatives are Democrats, Mr. Kimberly said, "When it comes to biodiesel, we're thankful our Iowa congressional delegation is of one bipartisan mind. I urge the rest of Congress to follow suit. A funding package required by Feb. 15, to avoid another government shutdown, provides a golden opportunity to include the biodiesel tax credit."

FUELIowa, the state's fuel marketing trade association, also urged its members to ask Congress to support the measure. The organization recently re-branded, removing "petroleum" from its name.
 
Iowa is a national leader in biodiesel production, with its 12 plants producing a record-breaking 365 million gallons in 2018, according to the Iowa Renewable Fuels Association. That is expected to account for nearly 20 percent of the nation's total biodiesel production in 2018. 

Debby Bell, 59, of West Liberty, works for University Housing and Dining at the University of Iowa to cover the cost of her husband's medical bills. CREDIT: LILY SMITH/THE DAILY IOWAN
A 58-year-old man has stage four chronic obstructive pulmonary disease, an intense respiratory failure disease that requires him to rely on an oxygen machine around the clock and prevents him from working. Much of his costly medical expenses for this disease, widely
known as COPD , aren't covered by Medicare.

So, his 59-year-old wife, Debby Bell, uses her health benefits as a University of Iowa employee to cover the cost of his checkups, prescriptions and medical machines that supply him oxygen and stimulate normal breathing. One prescription is for an inhaler that costs more than $500 a month. Checkups are required every six months and include an echocardiogram costing $1,500.

"There's no way a normal person can pay that," Ms. Bell said. "Even someone with a much better job than I have ... you could go broke real quick."

Ms. Bell is one of many Iowans nearing retirement age who are remaining in the workforce because of the high cost of health care that their life savings cannot cover. The Pew Research Center reports that 10,000 baby boomers hit retirement age every day.

The youngest are starting to retire at age 54, according to the senior advocacy group, AARP. But most aren't leaving the labor market. The number of boomers in the work force shows a steady 4.5 percent increase since 2014, the U.S. Bureau of Labor Statistics reports. An estimated 9.7 million Americans age 65 and older remain in the U.S. workforce, the U.S. Census Bureau reported last year . 

Ms. Bell and her husband, Jeffrey, live in West Liberty. Without the health benefits that go with Ms. Bell's employment at the University of Iowa's Burge Market Place, the couple would not have been able to pay their mortgage or utility bills, she said. She is approaching retirement but fears it won't be an option if she doesn't have decent health insurance to supplement Medicare and cover prescription medicines for her and her husband.
 
To read the full report from Iowa Watch writer Nichole Shaw and The Daily Iowan, click here. This story was produced by the Iowa Center for Public Affairs Journalism-IowaWatch.org, a nonprofit, online news website that collaborates with Iowa news organizations to produce explanatory and investigative reporting, with assistance from The Daily Iowan.
 
Feb. 12
Business Lunch Roundtable , by SCORE of East Central Iowa, noon-1 p.m., Granite City Food & Brewery, 4755 First Ave. NE, Cedar Rapids. Abusiness topic will be discussed along with networking opportunities. Free. To register, visit scorecr.org.
 
Business Startup Basics , by SCORE of East Central Iowa and Kirkwood Community College, 6-8 p.m., Kirkwood Linn County Regional Center, 1770 Boyson Road, Hiawatha. This three-night series will explore the basic steps in starting a business. This night will cover legal concerns and building a web presence. Cost: $59, covers all three nights. To register, visit scorecr.org.
 
Feb. 13
1 Million Cups, by 1MC Cedar Rapids, 8:15-9:15 a.m., Geonetric, 415 12th Ave. SE, Cedar Rapids. Join for community connections, free coffee, and presentations by entrepreneurs, established companies, experts and more. Free. For more information, visit facebook.com/1MCICR.
 
1 Million Cups, by 1MC Iowa City, 9-10 a.m., MERGE, 136 S. Dubuque St., Iowa City. Join for community connections, free coffee, and presentations by entrepreneurs, established companies, experts and more . Free. For more information, visit facebook.com/1MillionCupsIC/.
 
UIRP Lunch & Learn , by UI Research Park, BioVentures Center, 2500 Crosspark Road, Coralville. Join for a free lunch, a tour of the BioVentures facility and a presentation by Paula DeGrandis on keeping legal budgets under control. Free, but RSVP by Feb. 11. For more information, visit bit.ly/2MR0XZr
 
Feb. 14
Lessons Learned from Leadership Iowa and NewBoCo, by PMI Eastern Iowa Chapter, 7:15-9 a.m., The Hotel at Kirkwood Center, 7725 Kirkwood Blvd. SW, Cedar Rapids. NewBoCo's Chief Relationship Officer David Tominsky will discuss how new projects and programs are introduced and executed at NewBoCo, and how Leadership Iowa is fostering leadership around the state. Cost: $13 for chapter members, $20 for guests. For more information, visit bit.ly/2TybOty.
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Headlines from CBS2/FOX 28
These news items are provided by CBS2/FOX 28  
 
The victim in Monday's fatal crash on Blairs Ferry Road and Feather Ridge Road in Cedar Rapids has been identified. The Linn County Sheriff's Office says Katelyn Miranda, 18, of Washington, Iowa, died in the crash. Police say Ms. Miranda lost control of her vehicle while traveling westbound at 8:06 a.m. and slid into oncoming traffic. Authorities on scene said icy road conditions likely caused the crash but the investigation is ongoing. The driver in the other vehicle, Susan Geels, 54 of Cedar Rapids, was taken to the hospital with non-life threatening injuries.

Street departments in the Corridor are feeling the weight of heavy snow accumulation over the past couple of weeks. This past month's snow depleted Iowa City's salt supply, so they are conserving what they have now until they get more from the Quad Cities. "But we're not in an emergency status," said John Sobaski, Iowa City's assistant superintendent of streets and traffic engineering. "We are conserving and being smart about the way we use it." Those salt shipments can cost about $76 dollars per ton. "We reached $500,000, and in worst winters you can get up to $600,000-$700,000," said Mr. Sobaski. In Cedar Rapids, crews already plowed through 9,000 tons of salt, but they purchased more in advance and have additional reserves to avoid running out. "We're at about $700,000 dollars in salt use at this point. Our contract is just short of $1 million dollars. We can go beyond that and we probably will this year," said Mike Duffy, Cedar Rapids' street operations manager. However, the biggest challenge for both departments is scheduling their staff. "You need to stagger your teams or even partial teams in order to keep someone here at all times," said Mr. Sobaski. Plow truck operators may accumulate 30-40 hours in overtime, including weekends, in Cedar Rapids, which adds up quickly. "The overtime is the issue generally, because it's hard to budget for an overtime budget, but really what's the alternative?" said Mr. Duffy. "We're going to have to go out there and push the snow in order to keep people safe." 

T hese news items are provided by CBS2/FOX 28 
CBS2 Chief Meteorologist Terry Swails' Weather First Forecast

A Winter Storm Warning is in effect for the entire area until Tuesday evening. Temperatures will remain steady in the 20s. Light snow will continue early this morning, then taper off this afternoon. Winds will begin to pick up with wind gusts of 30-40 mph. Some patchy areas of blowing and drifting snow will be possible today, especially in the northeast. That will lead to some reduced visibility and slick roads in open and rural areas. Temperatures will be in the mid to upper 20s and fall through the afternoon. Colder air moves in behind the storm Wednesday. Temperatures will start near zero with wind chills below zero. Temperatures will be in the teens and 20s Wednesday and Thursday afternoons. A front will move through the area Thursday afternoon and a few flurries or light snow showers will be possible. Colder air will move in and send temperatures below zero Thursday night.