Business People: Arise Community Credit Union becomes Minnesota’s first Black-led credit union

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OF NOTE

Debra Hurston

The Minnesota Department of Commerce announced it has issued a charter for Arise Community Credit Union, based in Minneapolis. It is the first new state-chartered credit union in 23 years and the state’s first Black-led credit union. Arise will be a not-for-profit cooperative owned by members, with membership open within Hennepin and Ramsey Counties. The Association for Black Economic Power, under the leadership of Executive Director Debra Hurston, has led the creation of the organization.

ADVERTISING/PUBLIC RELATIONS

Minneapolis-based digital-first media agency KOSE announced the promotion of Colin Murphy to group media director. Murphy’s career includes working with such brands as Buffalo Wild Wings, American Express, General Mills, Nestle, Purina, H&R Block and 3M. … Lime Valley Advertising, Mankato, announced it has received two Service Industry Advertising Awards for communication excellence this year: Gold Award — Minnesota Valley Lutheran High School, Building on the Rock Casebook; and Silver Award — North American Society for Trenchless Technology, No-Dig Show 2024 – Sponsor & Exhibitor Prospectus.

ARCHITECTURE/ENGINEERING

Wold Architects & Engineers, St. Paul, announced the promotion of Jacob Windschitl to the Associates Leadership Team. … Braun Intertec, a Bloomington-based engineering and environmental consulting and testing firm, announced the retirement of Chief Executive Officer and President Jon Carlson, to be succeeded by Tim Lenway. Lenway has been with Braun Intertec since 2007 and was named a corporate officer in 2018.

ATTRACTIONS

The Science Museum of Minnesota, St. Paul, announced the following new members to its board of trustees: Dr. Bret Haake, Regions Hospital; Jennifer Hellman, Goff Public; Sri Koneru, Winnebago Industries; Jennifer Lastine, Securian Financial; Timothy M. O’Brien, Ecolab; Claudine Rydstrand, Delta Air Lines; Arvind Sharma, Ameriprise Financial; Susan Rundell Singer, St. Olaf College, and May yer Thao, Hmong American Partnership.

GOVERNMENT AFFAIRS

Stateside Associates, an Arlington, Va.-based state and local government lobbying firm, announced that Kurt Daudt is joining the firm as vice president. Daudt is a former Minnesota state representative and served as Speaker of the House from 2015 to 2019 and House Republican minority leader.

MANUFACTURING

New Wave Design and Verification, an Eden Prairie-based maker of digital electronic interfaces for business, announced the appointment of Darlene Weiss as director of human resources. Weiss has held similar roles at Donaldson, Medtronic, Integra LifeSciences and Lockheed Martin.

MILESTONES

Steve’s Appliances, a Mounds View retailer, announced its 50th anniversary in business.

NONPROFITS

Operation Underground Railroad, a Salt Lake City, Utah-based organization focused on combating human trafficking that plans to expand to Minneapolis, announced that Tammy Lee has been appointed chief executive officer. Lee previously led Xena Therapies, a med-tech company based in Red Wing, Minn. In conjunction, Xena announced that Lee’s business partner and co-founder Mitch Abrahamsen becomes CEO with Lee assuming the role of board chair. … Twin Cities Habitat for Humanity announced the following new board members: Cecilia Stanton Adams, The Diversity Institute; Steve Albrecht, Shakopee Mdewakanton Sioux Community; Brian Durmaskin, North America Surgical, Ecolab; Lara Koza, Longevity Holdings; Jamie McCarty, Dorsey and Whitney; Tariq Malik, Securian Financial; Tara Norgard, Carlson Caspers; Rich Rubenstein, General Mills; Jonathan Sage-Martinson, Amplio Economic Development Corp.; Board Chair is Nash Shaikh, Blue Cross and Blue Shield of Minnesota; executive committee: Tony Barranco, Ryan Cos.; Jim Mulrooney, Bremer Bank; Keiko Sugisaka, Maslon LLP, and Paul Delahunt, community volunteer. … Woodbury Community Foundation announced the following new board members: Erich Mische, SAVE (Suicide Awareness Voices of Education), and Ross Hillukka, Thrivent. Both are residents of Woodbury.

SERVICES

St. Paul-based Ecolab, which provides businesses with sanitary protection products and services and also runs several related subsidiaries, announced it has appointed Judson Althoff to its board. Althoff is chief commercial officer at Microsoft.

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EMAIL ITEMS to businessnews@pioneerpress.com.

Murphy, Sperling: How a California climate win could end up destroying rainforests — and what to do about it

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Half the diesel fuel in California is made not from unsustainable petroleum but from renewable biomass such as waste and plant oils. Soon all our diesel will be biofuels. This is particularly good for the environment if the fuel is made from wastes and residues, but it’s much less so if it’s made from crops that use energy and land but don’t produce food.

Unfortunately, a proposed amendment to California’s Low Carbon Fuel Standard threatens to put the state, the country and the world on a course toward relying more heavily on diesel produced from crops, ensuring more widespread destruction of rainforests and diversion of farmland from food to energy production.

California pioneered the standard to support the development and use of lower-carbon fuels for transportation. It effectively encourages oil companies to subsidize low-carbon fuels and electric vehicles without bankrupting them, and the only costs to taxpayers are administrative. This innovative policy has been replicated in Oregon, Washington and Canada, while other states and Congress are considering comparable measures.

The fuel standard incentivizes the use of renewable diesel made from oil waste and crops, a major success of the policy. Renewable diesel can be used in virtually any diesel engine, reducing greenhouse gas emissions by 70% or more when it’s made from waste oils.

The environmental benefits are much less substantial, however, when the fuel is made from crop-based oils such as soybean or canola.

That’s because those crops require energy, fertilizer and land, among other environmental consequences.

Renewable diesel offers such a compelling business opportunity to oil companies that two Bay Area refineries are being converted to produce it, possibly by the end of this year. California-inspired renewable diesel is booming across the country.

As the industry grows, however, it’s having some unintended consequences.

Until recently, most renewable diesel was made from waste cooking oil, rendered beef fat and corn-ethanol byproducts. But now those domestic sources of waste oil are largely tapped out. Indeed, the U.S. has to import not only waste-based fuels but also the wastes and residues themselves to supply our processors.

That means more and more renewable diesel is likely to come from oil produced from soybeans and other food crops.

We know from experience that increasing demand for plant-based oils — whether for food, animal feed or biofuels — leads to more slashing and burning of tropical rainforests in Southeast Asia and South America to expand palm and soy oil production. This deforestation releases mass quantities of greenhouse gases by burning trees that have sequestered carbon over centuries. It also harms watersheds, disrupts Indigenous communities and causes a raft of other social and environmental problems.

If what happened in California stayed in California, we wouldn’t be so concerned. Global vegetable oil producers probably could replace California’s remaining fossil-fuel-based diesel without much additional harm.

But other jurisdictions that have adopted or are considering policies like California’s are watching the state carefully. And the Treasury Department, European Union and global airlines are about to embrace plant oils as a substitute for the fossil fuels used in aviation. What California decides about renewable diesel will therefore have far-reaching effects.

The California Air Resources Board is updating the Low Carbon Fuel Standard this year to raise its targets and make other adjustments, including expanding its scope to include jet planes operating within the state. It is not, however, proposing to rein in the use of crop-based fuels. If the board does not address this issue, it could spur extensive conversion of tropical forests and food production to energy generation.

So what should be done? We have two ideas.

The first is to update the fuel standard’s almost 10-year-old estimate of the greenhouse gas impact of increased crop production. There is considerable evidence that the current estimate greatly understates actual emissions. Crops such as soybeans would become less attractive for renewable diesel production if the standard were corrected.

It’s an elegant and seemingly simple adjustment. The problem is that there is no scientifically established method for making an estimate, even after extensive study. Picking a new number risks interminable debate and lawsuits by the oil industry and other threatened interests.

We lean toward a second idea, which is to cap the use of crops to produce fuels. Most environmental groups favor this approach, and the California Air Resources Board has considered it. But while it’s a straightforward concept, it would be complicated to implement and would have to be updated frequently to provide flexibility to companies as conditions change.

Whatever approach regulators take, they should do it quickly, before the rapid growth of renewable diesel has irreversible repercussions. Inaction risks sending one of California’s key climate policies off course in ways that will reverberate around the world.

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Colin Murphy is the deputy director of the UC Davis Policy Institute for Energy, Environment and the Economy, where he co-leads the Low Carbon Fuel Policy Research Initiative. Daniel Sperling is a professor of engineering and environmental science and policy at UC Davis and a former member of the California Air Resources Board. They wrote this column for the Los Angeles Times.

Real World Economics: How Haiti now reflects age-old economic teachings

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Edward Lotterman

Haiti, the Caribbean country with a tragic history that shares the island of Hispaniola with the Dominican Republic, between Cuba and Puerto Rico, has become a failed state in the truest sense of the word.

Government has all but collapsed. Feuding criminal gangs vie for control. The value of output, already low, is falling and health and nutrition, already bad, are worsening.

With the eyes of the world focused on acute geopolitical dangers in Ukraine and the Middle East, there has been passing attention paid to an island country with a population of 11 million, who are overwhelmingly Black. Understandable but tragic.

Haiti’s travails eventually may affect our nation slightly, but with the closest sea distance to Florida six times greater than that from Cuba, there is little chance of a small-craft armada like the 1980 Mariel boatlift that brought 125,000 Cubans to our country. The Biden administration, already tarred as having failed on immigration, studiously avoids the issue.

But going beyond the immediate foreign policy challenge, it might be good to start paying attention. Why? Because Haiti’s situation forces us to think about age-old economic questions to which we still have no clear answers: Why are some nations almost inherently more productive and prosperous than others? Why do some have more successful governments? Why do some have societies that are more cohesive and just than others?

Why, for example, is Uruguay both more prosperous, more stable politically and with better social indicators of health, nutrition and education than its otherwise similar neighbor Argentina just across an estuary? Why did 19th century Japan take off economically when no other Asian country did? Why did the republics of the Netherlands and the city-state of Geneva have such dynamic economies and intellectual ferment in the 1700s, while France, Spain and other monarchies stagnated?

And at a different level, why do Oregon and Minnesota, for example, consistently best Alabama and Mississippi in every economic and social indicator?

Sometimes we can get “new ideas from dead economists,” in a phrase Todd Buchholz used as a title for his excellent introduction to economic thought.

Eighteenth-century Scottish philosopher Adam Smith knew a little about Haiti, but his ideas sift through factors that explain its situation — vis-à-vis even its more prosperous neighbor, the Dominican Republic. A man-made line geographically divides the island. But a world divides their economies.

One may not always agree with Smith’s conclusions, but his questions and insights remain invaluable to both curious and influential minds.

In his best-known 1776 book, “An Inquiry into the Nature and the Causes of the Wealth of Nations,” Smith argued that prevailing beliefs in his day in having government take large roles in economic activity were not just wrong, but strongly counter-productive. And he railed against remaining elements of the medieval guild system that sharply limited who could do what in professions and skilled trades.

However, perhaps more importantly but less well known, Smith had written an earlier relevant book. In “The Theory of Moral Sentiments,” Smith examined how and why people, motivated in great part by self-interest, still develop empathy, a concern for others, a willingness to cooperate with others, and how this trait contributes to effective and just societies.

So one might ask what sorts of policies Haiti has followed? What sort of social ethos has developed there? And how would Smith explain this?

Generally through history, regardless of laws that remain nominally in effect, Haiti has been a kleptocracy, a political and economic system based on theft by controlling individuals or groups.

While Christopher Columbus never actually got to any of our 50 states, he landed on Hispaniola on his very first voyage. Within a few decades, virtually all of the native population died of violence, disease and brutal slavery.

Spain retained a colonial government on most of the island, with the French eventually gaining the western section, what is now Haiti. Both were repopulated by slaves violently brought from Africa by English merchants, who financed the slave ships that handled the largest part of the trade. This brought enormous wealth to Britain during Smith’s life, something he notes, but does not really examine.

Slave labor for sugar cane production in Haiti was probably the most brutal and deadly in any slave nation. There were numerous slave revolts in the 1700s, all put down with extreme cruelty and savagery. One in the 1790s eventually led to the nation’s independence in 1804.

However, France still had clout to force the Haitians pay reparations to France for property taken — including themselves as former chattel. The initial payment was five times the country’s annual budget, so interest accrued. In the 1920s, what is now Citibank took over the Haitian promissory note from France and collected payments until 1947.

Adding yet another factor of U.S. involvement, in addition to our commercial interests always having influence in Haiti’s economy and government, we sent Marines to occupy the whole country in 1914. They stayed until 1931. So Haiti was a de facto U.S. colony for nearly two decades. Moreover, after leaving, we manipulated who had power and oversaw the ascension of Francois Duvalier, who ran a brutal dictatorship for 31 years.

So U.S. hands are covered with Haitian blood. We were part of the process by which that country became dominated by a French-speaking economic and political elite that extracted wealth at the expense of the Creole-speaking masses.

De facto economic institutions and policies in Haiti have left little to market forces. Outright corruption and a bureaucratic system of licenses and permits dominate resource allocation — similar to the merchant guild system that Smith denounced. The judicial system is corrupt. Government fails to deliver even basic services.

All this tragic history means that Smith’s “moral sentiments” never had an opportunity to prosper in Haiti as they had in 1700s Amsterdam and Geneva. Nor have the “mediating structures” that sociologist Peter Berger and theologian Richard Neuhaus saw as vital to society gained a footing. All of these traits, when generally adopted by a population, become “values,” in that they bring value to a society and an economy.

Will they ever in Haiti? The U.S. occupation a century ago gave Haiti roads, water and sewer systems along with schools and clinic buildings. But it also cemented the power of the elites and established a brutal dictatorship. U.S. peacekeepers sent in 2004 restored order and made room for some political reform, but a massive earthquake in 2010 and hurricane in 2016 were harsh blows.

So Smith gave us some reference points into the knotty issues of failing governments and economies as do many more recent scholars including not only Berger but Robert Putnam on “social capital.” Robert Axelrod’s insights on “the evolution of cooperation” deals with issues parallel to Smith’s moral sentiments.

And what does this say about us? With rampant road rage, random shootings, customers throwing hot coffee back in the faces of food servers, obstreperous passengers in airplanes, brawling melees at amusement parks, malls and on cruise ships, one may wonder whether our own moral sentiments are dying, our mediating structures collapsing and our social capital melting away. Perhaps they are. We are more bitterly divided now than we have been for more than a century. Haiti offers us a lesson both about the underlying reasons, and the consequences.

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St. Paul economist and writer Edward Lotterman can be reached at stpaul@edlotterman.com.

Why new ‘Top Chef’ host Kristen Kish didn’t call Padma Lakshmi for advice

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Kristen Kish was going through airport security in Dubai when the call came in that provoked the sort of clock-ticking, accelerated-heart-rate feeling the former “Top Chef” winner was familiar with during all those Quickfire challenges.

Like most fans of Bravo’s cooking competition, Kish was stunned to learn last June that Padma Lakshmi was stepping down as host of Bravo’s “Top Chef” after 19 seasons. “I couldn’t believe it,” Kish said.

Not long after the announcement, while traveling back home to New York from a work trip in Thailand, Kish and her wife landed in Dubai. They were scurrying to catch their connecting flight when Kish powered up her phone and saw texts from her manager trickle in. She called her back, thinking something was wrong, only to find out that Bravo wanted to talk to Kish about hosting the show.

“I call her as I’m waiting in line for security to push my suitcases through,” Kish recalled on a recent video call. “She was like, ‘They would love for you to fly to L.A. on Tuesday’ — and it was a Sunday. I was like, ‘Sure.’ That was it.”

Kish takes over as host on Season 21 of “Top Chef,” set in Wisconsin, premiering Wednesday.

The comeback to “Top Chef” is fitting for the 39-year-old chef. As a Season 10 contestant, Kish was the easygoing yet particular front-runner before she was eliminated following the show’s signature Restaurant Wars challenge, after taking responsibility as team leader for the poor preparation timing and a gelatin fumble by a fellow teammate. But she earned a spot back in the finale after winning on the companion web series “Last Chance Kitchen,” and then, with the help of an impressive five-course meal that included chicken liver mousse, the overall competition.

In the time since, Kish co-wrote a cookbook, opened the restaurant Arlo Grey in Austin, Texas, and has become more comfortable in front of the camera by appearing on shows like “Fast Foodies” (truTV), “Iron Chef: Quest for an Iron Legend” (Netflix) and “Restaurants at the End of the World” (National Geographic). Still, Kish is aware that she has big shoes to fill. After all, Lakshmi nurtured the role and elevated it over nearly two decades, earning four Emmy nominations as host. But Kish didn’t hesitate to accept the opportunity, even if she second-guessed herself.

“You’re like, ‘Whoa, meee?’” Kish says. “It completely caught me off-guard. It’s not like I was, in my brain, preparing for it or even considering that I would even be considered. I don’t want to take away the fact that I was honored and so excited.”

Kristen Kish attends the 2023 Time100 Next at Second on Oct. 24, 2023, in New York. (Arturo Holmes/Getty Images/TNS)

Kish spoke to The Times about the first day as host, the season’s callback to her “Top Chef” origin story and whether she reached out to Lakshmi while filming. This conversation has been condensed and edited for clarity.

Q: You’ve done your share of hosting and on-camera work in the time since you won “Top Chef.” But is it weird to go from being an ex-contestant of “Top Chef” to its host?

A: I’ve known the show to be Padma hosting, just like so many of us. And to be the new person in that mix is the most — I don’t even know if I have a word for it. I probably leaned on the fact that I have been on the show, and have won the show, as a comfort and a validation for myself that I deserve to be there. I think it was just the idea that everybody is probably gonna get used to having to see a new face in that role. As did I.

Q: Is there preparation? Where did you begin?

A: No, no preparation. I knew from the moment I said yes and the job was offered to me, you just have to be you. I think, for me, it was more of a mental preparation of wrapping my brain around the idea that it is me doing it. Whenever you put yourself out there to be judged by the masses — by a lot of people you don’t know, and, quite frankly, don’t know you — it’s terrifying because the internet can be a scary place sometimes. People can be very cruel. What I will say is the feedback and the amount of support has far outweighed any troll here and there.

Q: How was that first day on set as host? What do you remember about walking out there, delivering the first lines?

A: The beauty about television is that I can repeat a line over and over and over. And I had to because, here’s the thing, there’s no teleprompter. They tell you in your ear the details of the challenge so you don’t mess it up, right? Because you have to deliver it so everyone at home understands the rules. I don’t register information by hearing it.

Q: I could never. That sounds terrifying to me.

A: I’m a visual person. On “Iron Chef,” when I had to deliver lines, I had a teleprompter and all I had to do was read. So, for me, having to hear it and then push it out took some time. There was one line — I was trying to introduce somebody and I just could not get it right for the life of me. I did it over and over and over. Gail [Simmons], on the first day, was like, “We can be here as long as you need; everyone’s going to need to do do-overs. And it’s OK.” I knew that stuff, but hearing permission from seasoned pros, “take your time, take what you need,” that was really supportive, and the support from the crew was wildly helpful.

Q: I know Padma sent you flowers as you began this journey. But what advice did she share?

A: She didn’t really give me advice. I think that’s a really great compliment because she knows that I have to figure it out on my own. She can’t tell me how to do her job because she knew how to do her job in the way that worked for her. I have to do it in a way that it is me. What she did offer me was complete support — call, text, write, snail mail, whatever; if I need her, she will be available.

Q: Did you find yourself reaching for the phone?

A: No, I was too busy!

Q: This season introduces new rules to the competition: Immunity from elimination is no longer linked as a Quickfire prize but granted to the winner of the main challenge. What did you think of that change?

A: I love an immunity just like from a pure contestant point of view. It gives you a minute to really focus. But to win immunity for Quickfire to go into that same challenge, like you’re not saying that you don’t try as hard. But it does relieve a little bit of pressure, right? When you have to do immunity to win the next immunity, it only fuels you to make the immunity again. I feel like it pushes you harder, as opposed to knowing that you can just chill for a second [with the Quickfire immunity], if that makes sense.

Q: Things kick off in a way that brings your journey full circle. The first challenge pays homage to how you scored your spot on “Top Chef” in Season 10. You had to make a soup for Emeril Lagasse, who viewed soup-making as a way to test whether a chef knew how to develop flavor.

A: We were having a conversation, during the preproduction time: If you could come up with a challenge that really showcases what a great chef needs to have, what would it be? There’s so many. All three [tasks] of what Tom [Colicchio], Gail and I chose certainly prove that. But I feel for me, it was the only natural place to want to go and be like, “Well, I had to do it on my spot, so now you have to do it to earn your spot.” It was a no-brainer when they first asked.

Q: Take me back to 20-something Kristen Kish. Where you were in your life when you auditioned for the show and got the call to be a contestant?

A: I was in a place where “Top Chef” wasn’t even on my radar. Never thought I could do it, I never wanted to be on TV. It was my boss at the time and she was like, “You got to do it, you can do it.” Oftentimes you need other people to see your ability and your greatness to help push you along. And that’s what happened, in combination with the fact that I was maybe a couple years into my job and it was [on] autopilot a little bit. It was still fun, but it was a little easy.

Q: You were eliminated during “Restaurant Wars, ” but your comeback story was insane. Thanks to “Last Chance Kitchen,” where eliminated contestants compete for a shot to return, you came back and faced off in the finale against Brooke. A truly epic showdown and you won. How do you remember that whirlwind of time?

A: I remember getting eliminated and I can still hear Padma’s voice: “Please pack your knives and go.” Sometimes there’s a hiatus between the main season before the finale, and there was for mine. I was home watching the season play out just like everyone else was, knowing that I still have “Last Chance Kitchen” to go. I didn’t know my fate. I was living in this “Top Chef” purgatory being like, “OK, well, I still have, what, two or three more ‘Last Chance Kitchens’ to do in order to get back on.” By the time I got to the finale, so much time had passed that I was at peace with whatever was going to happen. Luckily, it worked in my favor.

Q: How was it for you delivering the first “Please pack your knives and go”?

A: In my head, I kept saying it over and over and over and over again, even before we started filming. “Please pack your knives and go”— where should I put the inflection? “Please pack your knives and go.” You kind of like play around with it.

Q: Was there any thought of giving you a different phrase?

A: Well, “Top Chef” has always had that since Katie Lee’s season. I can’t remember what they said specifically about “Please pack your knives and go,” but in terms of, “Your time starts now,” they were like, “Play around with it; say what you want to say.” But sometimes there’s only one way to say it. It’s all in the tone.

Q: What can you tease about the season? Were there any moments from the season that surprised?

A: I don’t know if it’s a tease, but I think it’s a really interesting twist. You’ve already talked about the immunity, and I love the challenge that that puts in place. I was very excited about, on the back half of the season, having Tom and Gail be part of Quickfires [typically it’s the host and a guest judge]. I like hanging out with them. To be able to have the three of us, tasting the food together, means that if we need — and it’s not every time or, quite frankly, it’s just simply in the moments — if something is so close, and you need to revert back to a Quickfire, you can. I feel like that was a nice thing to have in place.

Q: Padma has hosted the show for 19 seasons. If you had your way, how long do you see yourself in this role?

A: As long as they’ll have me. I feel like the beauty of “Top Chef” is not who hosts it or who judges it or what guest judges or celebrities you have on. It is a show for the chefs; it is a show of an opportunity for chefs who are really good at what they do to come on and showcase that and be celebrated for it and to ultimately walk away … with a pocket of opportunities that they wouldn’t have otherwise had before. I know there’s a lot of like, “Oh, Kristen is the new host” right now. But … without the chefs, you have no show.

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