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Office of Economic Development
April 16, 2007 DSE CEO Eric Lemm describes the venture as “a wonderful opportunity for the Lower Sioux to create a profitable entity on the reservation that has the capacity to create dozens of well paying jobs for the local community.” JYMRSA is an environmental protection firm that specializes in infectious disease control, mold abatement, and industry leading energy efficient HVAC systems. According to JYMRSA’s website the JYMRSA approach to infectious disease and contamination markets is unique because they combine medical training, advanced technologies, and science-based protocols to revolutionize the science of creating healthy, disease-free environments. Furthermore, the economics of this product translates into significant savings in dollars, but most importantly, in lives. The goal of InvisiMED will be to improve the hospitality and gaming industries while also providing cost efficient solutions to governmental entities on the local, state and federal level. The services may also be used in the health care, construction, hospitality, sports, and travel industries. Business Entities InvisiMED InvisiMED is the result of a joint venture partnership with Jymrsa, Inc. out of Robbinsdale, MN. InvisiMED provides: mold remediation, asbestos abatement, smoke and odor remediation, 99.999% effective hand sanitizer, and energy efficient HVAC system services to the marketplace. InvisiMED is still in its initial stages of development, but DSE believes that the excellent training from Jymrsa and the strong demand from the hospitality, healthcare, government, and construction industries alone will help create well paying jobs on the Lower Sioux Reservation for community members. Dakotah-Prinzing Motor Coaches
DPMC is a luxury auto-manufacturer located out of Redwood Falls, MN. They are responsible for manufacturing automobiles for the wedding and limousine industries. The cars are /higher-end early 20th century automobiles that appeal to people who like to ride in luxury and class. Max Prinzing is the original designer of DPMC and serves as President. Lowell Peterson serves as Chief Operating Officer. Dakotah Prinzing Motor Coach, LLC
Mission Statement In order to create a sustainable economic development system DSE must separate its decision making process from the Lower Sioux political system. The purpose is to create an entity that can use the benefits of being a tribe, but is outside of the political system in order to maximize business development opportunities. It is through this separation of business and politics that we will be able to create an economic development arm that will eventually be bigger than the gaming operation. In a Harvard Project on American Indian Economic Development, conducted by Miriam Jorgenson and Jonathon Taylor, What determines Economic Success? Evidence from Tribal and Individual Indian Enterprises, the evidence is staggering. “[Tribal] Enterprises whose management is insulated from elected bodies face odds of profitability of nearly seven-to-one, whereas enterprises where elected leaders participate in management face odds of profitability little better than one-to-one.” Basically, it is a statistical fact that separating enterprise management from tribal politics leads to a larger chance of success. Times of Change However, times change; our environment changes, the economy changes, politics change and the Lower Sioux must adapt to these changes. Whether it is the Lower Sioux Community population that is increasing 5%-10% annually, or a state legislature that continually debates the commercialization of gaming in the State of Minnesota the Lower Sioux Community must prepare for what is ahead and must ensure community members that there will always be opportunities to live and work on the Lower Sioux Reservation. Economic Questions
The economic and demographic facts are that the population of the Lower Sioux Community will double over the next 18 years, which means there will be even more demand for the community to provide services to its members and to generate additional revenue to cover the increase. Another basic economic fact is that if gaming is commercialized in the State of Minnesota like it is in South Dakota and other surrounding states, the revenues at Jackpot will decrease due to an increased supply of legal gaming opportunities. Basically if gaming supply goes up, demand to go to Jackpot Junction goes down. Four Basic Approaches
Two Major Activities
The question is with all of these paths to take, which one will lead us down the right road? Primary Goal DSE will also continue to try to recruit businesses to the reservation, but this will be our secondary objective. DSE will also assist any community member interested in starting up or purchasing a business by supplying them with the proper governmental and business support programs that will help the entity succeed. Sustainable Approaches Jobs and Income Approach The problem is that the approach typically does not work. What doesn’t work is that the businesses lack the ability to sustain the long term ups and downs of business cycles. Everyone knows the stories are recognizable. A business gets started but fails to live up to its advance billing or the tribe provides a grant that provides start-up funding for a project, but when the grant runs out there’s no more money and the project starts going downhill. Or, an investor shows up but gets entangled in tribal politics, loses heart, and eventually disappears. Or a new business gets underway with lots of fanfare and has a good first year, but then the tribal government starts liquidating the profits to meet its payroll or some other need, and as a result there’s no money to fix a structural problem such as a damaged roof or to improve the accounting system and soon the business is back in trouble. Or the business becomes primarily an employment service as people demand that it provides lots of jobs, costs rise, it finds itself unable to compete with non-reservation businesses whose labor costs are less, it becomes another drain on the tribal treasurer and two years later goes under and the jobs it provides disappears. Or the new tribal chairman decides to make it a family business and only hires their political supporters without looking at their business skills, each election the business changes managers and operating guidelines, customers are cynical, quality declines, and the business collapses. As a result planners, tribal administrators, and development directors feel as if they are banging their heads against the wall. Jobs and Income Approach simply does not work. Nation Building Approach The solution is to build a nation in which both businesses and human beings can flourish. The approach requires creating an environment in which people want to invest because they believe their investment has a good chance of paying off. It may produce monetary profits, job satisfaction, raise the quality of living, reduce dependence on governmental programs and bolster tribal sovereignty. The point is that most investors have choices. If they don’t see a good chance of their investment paying off here, there is little to stop them from going somewhere else or doing something different. An investor is anybody with time, energy, ideas, skills, goodwill, or dollars that is willing to bet those assets on the tribe’s future. A nation building approach doesn’t say “lets start a business”, instead it says “let’s build an environment that encourages investors to invest, that helps businesses last, and that allows investments to flourish and pay off.” The jobs and income approach sees development as an economic problem and focuses energy on grants, finding a joint venture partner, or any other strategy that might produce usable capital. The nation building approach sees development as first and foremost a political problem. It focuses attention on laying a sound institutional foundation, on strategic thinking, and on informed action.
Two Concepts of Economic Development
Dakota Services Enterprise Board of Directors The Board of Directors is responsible for identifying and properly investing in the future of the Lower Sioux Indian Community
Corporate Bios |
