Who Knew ... That the Boulder Valley and Northern Colorado Would Lead the Country in Lobbying the Federal Government Aug

NEWSMAKERS

NEWSMAKERS 2014 2014

THE BUSINESS JOURNAL OF THE BOULDER VALLEY AND NORTHERN COLORADO VOLUME 33 | ISSUE 25 | DEC. 26, 2014 - JAN. 8, 2015 Who knew ... that the Boulder Valley and Northern Colorado would lead the country in lobbying the federal government Aug. for an open Internet, 8 dwarfing the response of larger tech-savvy communities such as Silicon Valley, or that home Feb. affordability was slipping away 7 with each passing month, or even that the National Center for Atmospheric Research was struggling to maintain its climate research Oct. initiatives in the face of shrinking staff 17 and a budget that for years remained essentially flat. These and other stories have shaped our lives, our communities and our businesses. With this inaugural edition of Newsmakers 2014, the staff at BizWest has brought you the top news stories of 2014 and the latest updates on where things stand now. Top stories of 2014 n Front Range wineries outpacing Grand Valley ...... 3 n Employers shifting health-care costs to employees ...... 29 n Developer embarks on $180 million multiuse plan ...... 4 n Gessler rule stifles B corp signups ...... 30 n Otterbox moves to settle suit ...... 6 n JBS fine highlights meatpacking dangers ...... 31 n Mall redevelopment clears hurdle ...... 8 n Oil and gas firms dig deep for new water ...... 32 n NoCo home affordability takes a dive ...... 10 n Area voice strong for net neutrality ...... 33 n Boulder, Xcel feud over system repair ...... 12 n More cities eye broadband bandwagon ...... 34 n NoCo factories slow to add jobs, boost wages ...... 14 n A year later, a long road back ...... 35 n Group envisions brand for region ...... 16 n Fort Collins, Loveland eye independent airport commission .. 36 n FirstNet opens technical HQ in Boulder ...... 18 n Recovery spurs cities’ spending surge ...... 37 BY STEVE LYNN n Cash-only pot sales irk state, owners ...... 20 n As budget stagnates, staff shrinks at NCAR ...... 38 Wineries in the Front Range n Thousands in area face ACA penalties ...... 22 n Local clinics snared in DaVita settlement ...... 39 for the first time produced more wine than those in Western n Private railway wins federal grant ...... 24 n More injections sought despite quakes ...... 40 Colorado’s Grand Valley during fiscal 2013, according to the n n Colorado Wine Industry Devel- Banner Health, others sue MediCare ...... 26 Credit cards hacked? Who pays ‘em back? ...... 41 opment Board. n n The Front Range produced Life science VC deals hit post-recession high ...... 28 Local drillers see shares tumble as oil price drops ...... 42 583,000 liters of wine in 2013, outpacing Grand Valley production of 551,000 liters of wine last year. That’s a big jump from a decade ago, when Front Range Adam Sweetman, Clinton Baker, Partner, wine production totaled just Kennedy and Coe Sweetman Investments 118,000 liters, or one third of Grand Valley production of 339,000 liters. The Grand Valley still produced 80 percent of the state’s grapes last year, but more wineries are locating closer to the state’s most populated region, said Doug Caskey, executive director of the Colora- GET THE BUSINESS do Wine Industry Development Board, a division of the state Department of Agriculture that promotes OUT OF THE OFFICE. the Colorado wine industry.

At Kennedy and Coe, we have the courage to do something GL΍HUHQWWRJHWWRQHZSODFHV Even if it means rolling up our sleeves, and our trousers.

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2 | Dec. 26,2014 - Jan. 8, 2015 BizWest | www.bizwest.com BizWest | www.bizwest.com Jan. 10-23 n Employers shifting health-care costs to employees ...... 29 Top stories n Gessler rule stiﬂ es B corp signups ...... 30 online:

Front Range n OtterBox unveils n JBS ﬁ ne highlights meatpacking dangers ...... 31 slimmest case yet n Oil and gas ﬁ rms dig deep for new water ...... 32 n Arc Thrift Store to n Area voice strong for net neutrality ...... 33 relocate to Midtown wineries outpacing Commons n More cities eye broadband bandwagon ...... 34 n Sunset Events n A year later, a long road back ...... 35 Center building sold Grand Valley for $1.5 million n Fort Collins, Loveland eye independent airport commission .. 36 n DORA: Level of n coercion from Udall Recovery spurs cities’ spending surge ...... 37 ‘zero’ BY STEVE LYNN $1 More than half of the state’s 108

WATER MALL INTERRUPTED Storm brewing over Revised plan heads to wineries now are located on the n As budget stagnates, staff shrinks at NCAR ...... Public Trust Doctrine. FC Council Jan. 14. 38 3 5 n Brinkman to build Wineries in the Front Range Volume 19 Issue 9 | Jan. 10-23, 2014 Front Range, Caskey said. Some Mortgage loan rules tighten today new headquarters for the ﬁ rst time produced more BY MOLLY ARMBRISTER of the Grand Valley vineyards have ing and home-buying, two sectors of expensive as banks cover the costs of affecting borrowers with weaker n [email protected] the economy that saw improvement the added paperwork, according to ﬁnancials. Local clinics snared in DaVita settlement ...... 39 in 2013. the Colorado Bankers Association. More than a year in the making, New federal mortgage underwrit- The rules call for stricter docu- Others, including non-bank lend- the final rule was created in early ing rules going in effect today may mentation of the borrower’s ability ers and Realtors, believe the new rules 2013, and then amended several times wine than those in Western cause a slowdown in residential lend- to pay and could make loans more impact will be more muted, largely ➤ See Lending, 8 opened locations everywhere from

Northern Colorado Business Report Avago/LSI Colorado’s Grand Valley dur- Northern Colorado Business Report Centennial to Boulder. n More injections sought despite quakes ...... 40 combo to ing fi scal 2013, according to the boost NoCo Wine drinkers in Colorado tech sector BY STEVE LYNN Colorado Wine Industry Devel- [email protected] are now imbibing 3.1 gallons per FORT COLLINS – The $6.6 bil- n Credit cards hacked? Who pays ‘em back? ...... lion acquisition of LSI Corp. by Avago 41 Technologies will play a critical role in shoring up Northern Colorado’s opment Board. ailing technology economy, as Avago capita annually, 24 percent more moves to nearly double its worldwide market share in the lucrative world of custom networking applications. IMAGES BY JONATHAN CASTNER Avago (Nasdaq: AVGO), a spinoff The Front Range produced Jack Cantley uncorks a bottle of wine at Loveland’s Sweetheart City Winery. The winery is part of a booming wave of winemak- of Agilent Technologies Inc. (NYSE: than the national average of 2.5 ing on the Front Range. Below, a cask of Cabernet Sauvignon ferments. A), will expand offerings for such products as cell phones and tablets to include cloud computing infrastruc- n Local drillers see shares tumble as oil price drops ...... 42 Front Range wineries outpacing Grand Valley ture provided by LSI (Nasdaq: LSI) in the acquisition. 583,000 liters of wine in 2013, BY STEVE LYNN 551,000 liters of wine last year. That’s Avago’s largest campus worldwide gallons. [email protected] a big jump from a decade ago, when is located at 4380 Ziegler Road in Fort Front Range wine production totaled Collins. The company said in Decem- LOVELAND – Wineries in the just 118,000 liters, or one third of ber it would buy LSI, including its Front Range for the first time pro- Grand Valley production of 339,000 Fort Collins operations, for $11.15 duced more wine than those in West- liters. per share in a transaction funded with outpacing Grand Valley produc- ern Colorado’s Grand Valley during The Grand Valley still produced $1 billion in cash, a $4.6 billion term The state’s wineries account fiscal 2013, according to the Colorado 80 percent of the state’s grapes last loan from a group of banks and a $1 Wine Industry Development Board. year, but more wineries are locating billion investment from private-equi- The Front Range produced closer to the state’s most populated try Development Board, a division of ty firm Silver Lake Partners, which 583,000 liters of wine in 2013, out- region, said Doug Caskey, executive the state Department of Agriculture once owned Avago before taking the tion of 551,000 liters of wine last pacing Grand Valley production of director of the Colorado Wine Indus- ➤ See Wineries, 4 ➤ See Growth, 12 for 5 percent of market share in CONTENTS Serving Northern Colorado Visit ncbr.com for breaking news Health care Briefcase ...... 16 Newsmaker ...... 15 Small businesses Business News Digest .....6 On The Job ...... 16 tiptoe toward insurance Calendar ...... 18 Online Poll ...... 22 year. That’s a big jump from a exchange ...... 2 Editorial ...... 22 The Eye ...... 3 Colorado, according to a recent Legislature For The Record ...... 19 Time Out ...... 16 Energy, biz tax credits on NoCo lawmakers plate ...... 3 List Keep it legal Mortgage lenders ...... 11 A primer on eminent decade ago, when Front Range domain ...... 10 study done by Colorado State Adam Sweetman, Clinton Baker, Partner, wine production totaled just University for the wine industry Kennedy and Coe Sweetman Investments 118,000 liters, or one third of board. The economic contribu- Grand Valley production of 339,000 liters. tion of the state’s wind industry, meanwhile, tripled The Grand Valley still produced 80 percent of to $144 million from $42 million in 2005 when a the state’s grapes last year, but more wineries are similar study was done. About two thirds of the locating closer to the state’s most populated region, total economic impact came from tourism. said Doug Caskey, executive director of the Colora- How good is Colorado wine? The state’s wineries GET THE BUSINESS do Wine Industry Development Board, a division of have won awards in the Jefferson Cup Invitational, a the state Department of Agriculture that promotes 14-year-old contest in Kansas City, Mo., that honors OUT OF THE OFFICE. the Colorado wine industry. the best wines nationwide.

At Kennedy and Coe, we have the courage to do something GL΍HUHQWWRJHWWRQHZSODFHV UPDATE Even if it means rolling up our A late spring freeze and harsh winter tempera- to Front Range wineries, which in turn, have had to sleeves, and our trousers. tures led to a crop loss of 30 percent to 60 percent in look outside Colorado for their grapes. the Grand Valley this year, Caskey said. Merlot was “Wineries on the Front Range, unless they own particularly hard hit, though preliminary reports a vineyard somewhere, they were scrambling for indicate that the grapes the state harvested were of grapes,” he said. “It’s going to squeeze the smaller, high quality. newer wineries that don’t have wineries of their The crop loss means that many of the Grand Val- own or don’t have longstanding contracts with ley wineries have kept the grapes they normally sell somebody.”

www.kcoe.com | 800.303.3241 Consultants

BizWest | www.bizwest.com BizWest | www.bizwest.com Dec. 26, 2014 - Jan. 8, 2015 | 3 Jan. 17-30

Top stories online: n Brewer buys more Developer embarks property for expansion n Council to hear plan for St Julien property on $180 million n Construction begins on community in Erie n Developer adding condos above retail multiuse plan space

BIZWEST STAFF $1 Road owned by the Sutherland n Boulder Outlook family that was home to their SCHOOL GUIDE BANKING/FINANCE Expansion in works Sunflower Bank hotel sells for $9.3 at Dawson School enters local market 13A 17A Real estate development fi rm Volume 33 Issue 1 | Jan. 17-30, 2014 hardware store and lumberyard. million COMMERCIAL RESIDENTIAL RETAIL Developer ElementProperties LLC and REAL ESTATE REAL ESTATE It also included adjacent parcels “Sales are “We’re not “The general embarks on expected to projecting any consensus is improve at the big slides in that things $180 million Twenty Ninth Sopher Architects LLC sub- 2014 or 2015.” look quite at 3195 Bluff St., and 3200 Bluff Street shopping optimistic.” multiuse plan KATE HONEA district in Boul- LYNDA GIBBONS RYAN McMAKEN spokeswoman, communications Sutherlands site sits president/ Twenty Ninth Street der throughout mitted concept plans with the managing broker, director/economist in transit-village area St., homes to Columbine Plas- 2014.” Gibbons-White Inc. Colorado’s Division of Housing BY JOSHUA LINDENSTEIN [email protected] CYBERSECURITY city of Boulder in January for a BOULDER —Real estate devel- tics Corp. and an Airgas branch opment firm ElementProperties LLC “Many and Sopher Architects LLC submit- enterprises FORECAST ted concept plans with the city of Boulder recently on a proposed rede- are not yet velopment of the former Sutherlands proposed redevelopment of the Lumber Co. site that could cost up to store, respectively. prepared to $180 million. respond to 2014 The plans call for 680,000 square emerging feet of building space, including room RICK DAKIN The Boulder County Business Report asked people in for apartments, office, retail and res- (cybersecurity) former Sutherlands Lumber Co. chief security seven key industires what they expect in 2014. taurant uses as well as a 140-room The Sutherland family boutiquestyle hotel. There will also strategist, risks.” Coalfire Systems Inc. Stories begin on 6A. be a large public plaza that could someday serve as a train platform for a FasTracks commuter rail stop. Dubbed Spark — short for Suther- site that could cost up to $180 land Park in homage to the longtime retains ownership of the 3390 TECHNOLOGY BANKING HEALTH CARE owners of the site — the development will sit on roughly eight acres. “… I wouldn’t “We anticipate “We will That includes the 5.9-acre parcel at 3390 Valmont Road owned by the million. be surprised higher continue to Sutherland family that was home to Valmont property and is a to see (several earnings, place patients their hardware store and lumberyard. It also includes the adjacent parcels at companies) go greater capital at the center of 3195 Bluff St., the site of Columbine down (the IPO) formation all we do as we Plastics Corp., and 3200 Bluff St., home to an Airgas branch store. The plan called for 680,000 path.” and increases DAVE HAMM navigate (the) The site lies within the city of partner with Element in the ERIC MITISEK BARBARA WALKER chief executive/ Boulder's Transit Village Area Plan, in lending.” impacts to our chief executive, executive director, president, commonly known as Boulder Junc- Colorado Independent Exempla Good industry.” tion, which was adopted in 2007 and Technology Bankers Samaritan Medical is bounded roughly by Valmont Road square feet of building space, Association of Colorado Center to the north, Foothills Parkway to the redevelopment. They closed east, Pearl Parkway to the south and ➤ See Developer, 26A

CONTENTS Serving Boulder & Broomfield Counties Awards ...... 34A For the Record ...... 27A including room for apartments, Boulder County’s Business Journal Bank Notes ...... 20A Legislative Preview ...... 24A the 25,000-square-foot store in BCBRdaily ...... 2A Nonprofit Network ...... 34A Business Digest ...... 33A On the Job ...... 35A Calendar ...... 34A Product Update...... 34A Discoveries...... 10A Publisher’s Notebook ...... 38A Editorial ...... 38A Real Estate ...... 36A offi ce, retail and restaurant uses Eye ...... 3A Sales Smarts ...... 12A 2010, renovated it and leased it LISTS Certified Public Accountants ...... 23A Staffing Agencies ...... 9A as well as a 140-room boutique- SBA Lenders ...... 18A to various businesses. style hotel. Also included was The plan called for a mix a large public plaza that could of four- and five-story build- someday serve as a train platform for a FasTracks ings. That included about 248,000 square feet of commuter rail stop. offi ce space, 6,500 square feet of restaurant space, Dubbed S’Park – short for Sutherland Park 12, 610 square feet for retail and about another in homage to the longtime owners of the site – 61,000 square feet of fl exible street-level com- the original plan covered roughly 8 acres. That mercial space. That’s in addition to the hotel and included the 5.9-acre parcel at 3390 Valmont 180 apartments.

UPDATE

Developers plan to submit a more formal site added to the project. That plan calls for 24 for-sale review plan sometime in early 2015. three-bedroom townhomes with one-car garages Boulder-based Element’s Scott Holton said the and 45 two- and three-bedroom rental townhomes plan for S’Park has been reﬁ ned considerably, tak- and ﬂ ats with one carport per unit. ing into account things the public liked and didn’t “Whereas many of the other Boulder Junction like. The hotel is no longer part of the plan, replaced projects are marked by their mass and height, we’re instead by some additional affordable housing. designing with much more variety and intention to The NEWSMAKERSdevelopers also submitted a separate con- serve our community’s needs and aspirations for a cept review over the summer that covered three creative and inclusive place in Boulder,” Holton said additional parcels along Bluff Street that have been recently.

NEWSMAKERS 2014 2014 4 | Dec. 26, 2014 - Jan. 8, 2015 BizWest | www.bizwest.com Best wishes for a happy, healthy 2015!

Mark McFerran, MD Rocci Trumper, MD Dale Martin, MD Kirk Kindsfater, MD Michael Houghton, MD Trauma & Fracture Surgery Knee Disorders Sports Medicine Joint Replacement Surgery Athletic & Reconstructive Joint Replacement Surgery Sports Medicine Knee & Shoulder Disorders Surgery of the Foot & Ankle

Road owned by the Sutherland family that was home to their hardware store and lumberyard. It also included adjacent parcels at 3195 Bluff St., and 3200 Bluff St., homes to Columbine Plas- tics Corp. and an Airgas branch Sean Grey, MD Mark Durbin, MD Robert Benz, MD David Beard, MD Satoru Chamberlain, MD store, respectively. Shoulder Disorders Hand & Upper Spine Disorders Sports Medicine Hand & Upper The Sutherland family Sports Medicine Extremity Surgery Spine Surgery Joint Replacement Surgery Extremity Surgery retains ownership of the 3390 Valmont property and is a partner with Element in the redevelopment. They closed the 25,000-square-foot store in 2010, renovated it and leased it to various businesses. The plan called for a mix Robert Baer, MD William Biggs, MD Wesley Jackson, MD Michael Rusnak, MD Dana Clark, MD of four- and five-story build- Trauma & Fracture Surgery Adult & Pediatric Spine Athletic & Reconstructive Trauma & Fracture Surgery Joint Replacement Surgery ings. That included about 248,000 square feet of Disorders & Surgery Surgery of the Foot & Ankle Knee Disorders & Surgery ofﬁce space, 6,500 square feet of restaurant space, 12, 610 square feet for retail and about another 61,000 square feet of ﬂexible street-level commercial space. That’s in addition to the hotel and 180 apartments.

Steven Seiler, MD Ryan Hartman, MD Bret Peterson, MD Thomas Hecker, DPM Nathan Hunt, DPM Hand & Upper Pediatric Orthopaedics Hand & Upper Podiatric Medicine Podiatric Medicine Extremity Surgery Sports Medicine Extremity Surgery Foot & Ankle Sports Medicine Diabetic Foot Care added to the project. That plan calls for 24 for-sale three-bedroom townhomes with one-car garages and 45 two- and three-bedroom rental townhomes and ﬂats with one carport per unit. “Whereas many of the other Boulder Junction projects are marked by their mass and height, we’re designing with much more variety and intention to serve our community’s needs and aspirations for a creative and inclusive place in Boulder,” Holton said Stephen Yemm, MD Thomas Sachtleben, MD Vincent “Skip” Ross, MD Thomas Anderson, DO Alissa Wicklund, PhD Sports Medicine Sports Medicine Sports Medicine Sports Medicine Sports Concussions recently. Non-Surgical Orthopaedics Non-Surgical Orthopaedics Non-Surgical Orthopaedics Non-Surgical Orthopaedics Neuropsychology

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BizWest | www.bizwest.com BizWest | www.bizwest.com Dec. 26,2014 - Jan. 8, 2015 | 5 Jan. 24-Feb. 6

Top stories online: n OtterBox reaches Otterbox moves settlement in whistleblower lawsuit n Noosa Yoghurt constructing $5M to settle suit expansion

| n Ofﬁ ce buildings 2013 % INCREASE % INCREASE BY STEVE LYNN $1 SALES PRICE SALES AVG. PRICE then imported those products 4,016 $275,921 14.7% 7.0% 2,373 $276,908 17.1% 4.8% 4,534 $223,864 20.1% 9.5% at MCR sold for $56 10,923 $254,509 17.4% 7.1% AGRICULTURE REAL ESTATE for distribution and retail sale. Cropland values Home demand high as soar 22 percent. supply shrinks. million Otter Products LLC, the 3 7 OtterBox was responsible for Volume 19 Issue 10 | Jan. 24-Feb. 6, 2014 company that makes OtterBox Small businesses shun health exchange the submission of entry docu- BY MOLLY ARMBRISTER shunning the new health-insurance Fort Collins, said that roughly 70 As of Jan. 2, of the thousands of [email protected] exchange, opting instead to renew exist- percent of the companies with which small businesses in Colorado, only ing “grandfathered” plans to avoid what he works opted to renew their plans about 100 had purchased plans Thousands of Colorado small busi- are often double-digit rate increases. late last year, worried about projected through the exchange. The Small smartphone and tablet cases, nesses – ineligible for federal subsidies Jim Sampson, employee beneﬁts cost increases that have ranged from Business Marketplace opened along ments to U.S. Customs and for

and unable to afford high prices - are executive at Flood and Peterson in 20 percent to 63 percent. ➤ See Insurance, 22 y

Northern Colorado Business Report WE’VE GOT THE paid $4.3 million to the U.S. y OtterBox BIG C THING DOWN. the payment of any customs Northern Colorado Business Report

government to settle allega- y moves to duties owed on those imported yOPTIONS Like Chemo& Brachytherapy settle suit LOCATED in e BY STEVE LYNN tions that the company violated Comft & [email protected] products. Convenience FORT COLLINS – OtterBox is your hometown negotiating a settlement with a for- by some of the most mer employee Competent, who ﬁled a whis- North Colorado Medical Center tleblower law- McKee Medical Center federal law by underpaying cus- Sterling Regional MedCenter OtterBox, however, know- CARING, suit alleging the cell-phone case COMPASSIONATE & maker underpaid y federal import

y taxes on prod- toms duties, the U.S. Attorney’s JONATHAN CASTNER ucts it made in ingly omitted a portion of the Years of drought and declining herds have caught up with beef prices, with shortages causing prices to rise in a good-news/ China. Richardson bad-news scenario for ranchers and consumers. Cattle pictured here are owned by Briggsdale rancher Larry Croissant. Fort Collins- b a s e d O t t e r Products LLC, which sells OtterBox, Ranchers bullish but consumers may have beef the No. 1-selling smartphone case Offi ce for the District of Colo- in North America, is taking steps to value of OtterBox cases on BY STEVE LYNN year’s dry conditions as other ranchers High feed and fuel prices as well resolve the lawsuit filed by Bonnie M. [email protected] sent their herds to slaughter. as prolonged drought combined to Jimenez of Brighton. But his and others’ situation has create a few difficult years for cattle Jimenez, who worked in customs BRIGGSDALE – Cattle rancher improved since feed prices have ranchers, said Kevin Good, senior compliance as OtterBox’s supply- rado said in April. Larry Croissant could see relief this dropped and returns on cattle have analyst for Englewood-based beef chain director, contended the com- imported product documents year after tough times of drought risen. analyst CattleFax. That led many pro- pany failed to pay customs duties on and high feed costs, although his “I think everybody’s outlook is a ducers to sell their cattle for slaughter the full value of its cell-phone cases, improved fortune may not trickle little better,” Croissant said. because they could not afford to feed violating the False Claims Act. down to consumers. Ranchers are welcoming the higher them. “The settlement discussions are Croissant had to make a big invest- prices, but those same high prices Recently, lower feed costs along open and ongoing,” an OtterBox The settlement stemmed ment in his 250-head Red Angus herd mean rising food costs for consumers, with record higher beef values spokeswoman said in an email. “It and made false statements in to keep his operation afloat during last agribusiness experts said. ➤ See Cattle, 24 ➤ See OtterBox, 4

CONTENTS Serving Northern Colorado Housing Briefcase ...... 23 Newsmaker ...... 17 Visit ncbr.com for breaking news Fort Collins eyes Business News Digest .....6 On The Job ...... 23 from a whistleblower lawsuit new rules on Calendar...... 20 Online Poll...... 30 other documents submitted to affordability ...... 5 Editorial ...... 30 The Eye ...... 3 Columns For The Record ...... 27 Time Out ...... 21 Marketing...... 17 Lists Small Commercial general contractors...... 10-11 Business Adviser ..... 17 Landscape architecture firms ...... 12 fi led in U.S. District Court in Careers...... 19 Electrical contractors ...... 13 Customs and Border Protec- Business parks...... 14 Denver by former OtterBox Office furniture and design studios...... 25 tion, federal authorities alleged. supply chain director Bonnie As a result of OtterBox’s omis- Jimenez in 2011. Jimenez, of sions and false statements, Brighton, was to receive $830,000 in the set- OtterBox knowingly underpaid customs duties it tlement negotiated by Assistant U.S. Attorney owed and violated the False Claims Act. Amanda Rocque. OtterBox, which saw rapid global growth dur- Whistleblowers with knowledge of fraud ing the period, denied that it knowingly underpaid against the U.S. can present those allegations to customs duties and noted that the company settled the government. If an investigation confi rms those the case without admitting liability. The company claims, the whistleblower shares in a settlement. corrected payment discrepancies, enhanced its Between 2006 and 2011, privately held Otter- internal controls and paid all duties that it owed, Box made many of its products in China, and former CEO Brian Thomas said at the time.

UPDATE

U.S. District Judge Raymond Moore dismissed LifeProof in 2013, has been violating an agree- the lawsuit April 28. OtterBox announced in ment that had granted Belkin exclusive rights to November that Thomas left the company and distribute LifeProof cases in Europe, the Middle that chief operating ofﬁ cer Peter Lindgren had East and Africa. succeeded him as CEO. The lawsuit comes amid reports that OtterBox Meanwhile, OtterBox is embroiled in another is exploring a sale of the company. In August, lawsuit. California-based consumer products Reuters reported that OtterBox is exploring a company Belkin International Inc. is suing Otter- sale valuing the company at more than $2.5 bil- Box inNEWSMAKERS U.S. District Court in California, seek- lion. Citing anonymous sources, the report stated ing damages of $10 million. The suit alleges that OtterBox has hired investment bank Gold- that OtterBox, which purchased competitor man Sachs Group Inc. to manage the process.

NEWSMAKERS 2014 2014 6 | Dec. 26, 2014 - Jan. 8, 2015 BizWest | www.bizwest.com Volume 33 : Issue 25 Dec. 26, 2014- Jan. 8, 2015 )25./,)7 02'(/&3<' /($6(63(&,$/ Copyright 2014. BizWest Media LLC. +6(5,(6 Reproduction or use of editorial or graphic content without written per- mission is prohibited. 6WDQGDUG)HDWXUHV PRQWK /EV&DSDFLW\ ([SLUHV'HF BizWest (USPS 018-522, ISSN 1528-6320) #/RDG&HQWHU is published biweekly, with an extra issue in December, by BizWest Media *0/7,(5,9/3*(QJLQH LLC, a Colorado LLC, 1790 30th Street, Suite 300, Boulder Colorado, 7ULSOH6WDJH8SULJKW 80301. ,QWHJUDO6LGH6KLIWHU )RUNV Periodical Postage Paid at Boulder, CO and at additional mailing ofﬁ ces. 6ROLG3QHXPDWLF7LUHV Subscriptions are $49.97. International subscriptions are $180.00. )ODVKLQJ%HDFRQ %DFN8S$ODUP POSTMASTER; Send change of address notices to: )XOO/LJKW3DFNDJH BizWest Media LLC Subscriber Service, 2SWLRQDO)HDWXUHV PO Box 17125, North Hollywood, CA 91615-7125 'XDO)XHO *DV/3 )DLU0DUNHW9DOXH/HDVHPRQWKWHUPZLWKFUHGLWDSSURYDO3OXVORFDOGHOLYHU\ 303-630-1953 n 970-232-3143 n E-mail:[email protected] 6ROLG3QHXPDWLF DSSOLFDEOHWD[HVPDLQWHQDQFHDQGLQVXUDQFH1RGRZQRUDGYDQFHGSD\PHQWVKUV PD[\HDU5HVWULFWHGWRQRUPDOFOHDQDSSOLFDWLRQ)2%)0+&DOOIRUPRUHGHWDLOV 1RQ0DUNLQJ7LUHV &$//$1'25'(572'$< CORRECTIONS *OREHYLOOH5RDG'HQYHU&2 BizWest will correct any errors that appear in its pages. To suggest a correction or clariﬁ cation, please contact Executive Editor Jerd Smith at Material Handling Solutions )D[ 303-630-1951, or email at [email protected]. )&,1''

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BizWest | www.bizwest.com Dec. 26,2014 - Jan. 8, 2015 | 7 Jan. 31-Feb. 13

Top stories online: n Work to begin on Mall redevelopment Gunbarrel Center in March n Markel Homes acquires land from clears hurdle hospital n Investors buy BY JOSH LINDENSTEIN $1 The agreement canceled the former Sam’s site in need for an April jury trial that HIGH-TECH HEALTH MARKETPLACE AND WELLNESS Rebound developing High-tech equipment Louisville nontoxic refrigeration aiding area hospitals Several months of legal wran- 5A 9A would have determined the price Volume 33 Issue 2 | Jan. 31 - Feb. 13, 2014 gling between city of Longmont Mall redevelopment clears hurdle of the Dillard’s store. And it fol- BY BETH POTTER domain case against Dillard’s Inc. n [email protected] Work on Village at the Peaks (NYSE: DDS) for the 94,000-square- Institute plans to foot store and the 7.1 acres around it. LONGMONT – The legal wran- could start as early as February LURA — which is made up of officials and clothing retailer gling is over and work can begin on Longmont’s elected city council mem- lowed a December 2013 decision transforming the beleaguered Twin Jan. 21 to pay Dillard’s Inc. $5.5 early as Feb. 18. bers — approved measures related to Peaks Mall into the open-air Village million for its store and property in The Longmont Urban Renewal the settlement agreement. The trans- at the Peaks. Longmont, paving the way for an $80 Authority earlier in January reached fer of the Dillard’s title to developer sue CDOT over U.S. ➤ Dillard’s Inc. came to a halt in Longmont’s elected officials agreed million redevelopment of the mall as an agreement to settle its eminent- See Mall, 13A by a three-member panel that UCAR reups Someone’s in the kitchen with Sterling-Rice 36 Advertising agency in Boulder cooking up ideas for its food and beverage clients January, fi nally clearing the way to manage had set a preliminary value of NCAR for for redevelopment of the Twin 5 more years $6.3 million for the property. n Avaya may set Agreement worth about Peaks Mall. $800 million in funding Longmont offi cials earlier that BY DOUG STORUM up shop in Boulder [email protected] The University Corporation for Atmospheric Research will manage That’s when Longmont’s city the National Center for Atmospheric year had offered Dillard’s $3.6 Research for another five years after renewing its contract with the National County Science Foundation. UCAR and NCAR have a staff of council, acting as the Long- about 1,400 employees. They contrib- million, while Dillard’s request- uted about $420 million to the state economy in fiscal year 2012, supporting direct and indirect employment of more than 3,100 workers. The five-year contract is not to exceed mont Urban Renewal Author- $800 million and will run through Sept. ed $5 million. An appraiser 30, 2018. The money comes from the

National Science Foundation, as well as PETER WAYNE money that comes from various federal Kevin Appel, left, associate culinary director; Christie Wood, accounting director and culinary strategist; and Buddy agencies and passes through the founda- Ketchner, president of the Sterling-Rice Group in Boulder, stand in the advertising agency’s new kitchen where food and tion to NCAR. marketing ideas are cooked up for its clients in the food and beverage sector. See story, 7A. ity, settled its eminent-domain ➤ See UCAR, 22A for the city valued the store at CONTENTS Serving Boulder & Broomﬁeld Counties Boulder County’s Business Journal Advertising ...... 7A Eye ...... 3A Awards ...... 18A For the Record ...... 14A case against Dillard’s, agree- BCBRdaily ...... 2A Medical File...... 10A $3.03 million, while a Dillard’s Business Digest ...... 18A Nonproﬁt Network ...... 18A Calendar ...... 19A Observations ...... 22A CEO Roundtable ...... 4A On the Job ...... 19A Editorial ...... 22A Real Estate...... 20A ing to pay $5 million for the LISTS appraiser had said it was worth Hospitals ...... 12A 94,000-square-foot store and 7.1 $6.3 million entering the emi- acres around it at the mall. The nent-domain case. city also agreed to pay Dillard’s NewMark Merrill, which $500,000 to cover legal fees. owned all of the mall site except for Dillard’s, need- Fort Collins-based NewMark Merrill Mountain ed title to the store before work could begin because States, developer of the new open-air Village at the Dillard’s held a reciprocal easement agreement that Peaks shopping center that will replace the mall, gave it veto power over any redevelopment at the ultimately paid the $5 million purchase price. site. The store was also an unwilling seller.

UPDATE

With the court case in the rearview, the devel- and Bad Daddy’s Burger Bar have also inked leases opers broke ground on Village at the Peaks Aug. 1. at Village at the Peaks, along with Verizon Wireless Ironically, the only portion of the old mall that will and Paciﬁ c Dental. Whole Foods, originally slated remain is the Dillard’s building, though it will be to occupy 30,000 square feet, upped the size of its divided up among multiple new tenants. commitment to 40,600 square feet. The $85 million, 480,000-square-foot redevel- The city and its taxpayers are kicking in $27.5 opment, on track to open in the fall of 2015, will million toward the development, money that will be anchored by a Regal Cinemas 12-screen movie be paid back over the next 23 years through tax theater, Sam’s Club, Whole Foods Market, Sports increment ﬁ nancing – money generated through the Authority, Gold’s Gym and Wyatt’s Wine and expected future tax revenues from the site. Spirits. Restaurants like The Melt, Parry’s Pizza

NEWSMAKERS

NEWSMAKERS 2014 2014 8 | Dec. 26, 2014 - Jan. 8, 2015 BizWest | www.bizwest.com Heather West Josh Landwehr Bryan Guest Andrea Walrath Abigail Shepherd Jenny Schultz Mortgage Mortgage Originator Market President, Business Banker, Fort Business Banker, Fort Business Banker, Fort Manager Greeley Collins Collins Collins,

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BizWest | www.bizwest.com Dec. 26,2014 - Jan. 8, 2015 | 9 Feb. 7-20

Top stories online: n CooperSmith’s Pub NoCo home changing hands after 25 years n Dean of CSU business school to step affordability down n Stadium critics create online petition takes a dive n Home sales slow in Loveland, Fort Collins

BIZWEST STAFF $1 affordable are the median-priced n Loveland’s Em- ADVANTAGE BANK AGRIBUSINESS Key capital levels hit new World demand for local beef homes. low, raise red ﬂag. sends exports soaring. bassy Suites ranked 3 7 An index compiled by the Volume 19 Issue 11 | Feb. 7-20, 2014 The index is designed to mea- best in world Colorado Association of Realtors NoCo home affordability takes a dive sure how much a family earning BY MOLLY ARMBRISTER means more people are likely to be 13 percent in the past two years in Morgan counties. [email protected] priced out of the fast-growing resi- Northeastern Colorado. The index As of the fourth quarter of 2013, dential market. is based on data from Realtor asso- the index was 142 for the northeast Homes for Northern Colorado’s A housing affordability index com- ciations in Estes Park, Fort Collins, Colorado region, compared with 154 middle class are becoming less afford- piled by the Colorado Association Boulder, Greeley, Loveland/Berthoud two years earlier. Housing affordabili- in February showed that homes able, according to a key index, which of Realtors has dropped by nearly and Longmont as well as Logan and ➤ See Affordable, 10 the median income can afford

Audio alert Northern Colorado BusinessWoodward Report director goes on Loveland startup tackles booming ear-bud markets are becoming less affordable for Northern Colorado Businessopen-market Report buying spree assuming it doesn’t want its

BY STEVE LYNN [email protected] Who is Paul Donovan? the region’s middle class. Paul Donovan has mortgage payment to exceed 28 FORT COLLINS – Paul Donovan, been a Woodward an independent director of Woodward board member Inc., has spent much of the past 16 since 2000. He also months buying thousands of shares of serves on the board the company’s stock on the open mar- of directors for The index was based on data ket. Analysts call the move a strong Clarcor Inc. (NYSE: percent of pre-tax income and CLC), which makes vote of confidence in the 150-year-old industrial water and manufacturer of defense, energy and air filters. aerospace components. From August 1999 to June 2003, Donovan Donovan, 66, most recently was executive vice president and chief financial bought more than 1,100 shares of officer of Wisconsin Energy Corp. in Milwaukee. from Realtor associations in Fort Collins-based Woodward (Nas- Previously, Donovan worked as executive that a 20-percent down payment daq: WWD) for nearly $50,000. His vice president and chief financial officer of purchases spanned three days from Sundstrand Corp. in Rockford, Ill., from 1988 Jan. 29 to Jan. 31 as Woodward’s to 1999. stock hovered around $42. Woodward paid Donovan $93,750 during “When I see corporate executives fiscal 201, which ended Sept. 30. Donovan Estes Park, Fort Collins, Boulder, received another $84,200 in option awards for will be made. putting their money where their a total of $177,950 in compensation. mouth is and investing in their own Source: Woodward Inc. stock with their own dollars, I tend to JONATHAN CASTNER view that as a pretty good barometer,” These new ear buds are made from a moldable plastic that is heated and then said Michael Ciarmoli, vice president shareholder on the board. That honor Greeley, Loveland/Berthoud shaped to each user’s ear. See story, 3. of Equity Research for KeyBanc Capi- goes to John Halbrook, who owns At the time, the median single- tal Markets. “It’s a very good indicator nearly 1.3 million shares and controls that there’s an internal confidence more than 1.8 percent of all outstand- level, an internal belief in terms of ing stock, according to Woodward’s the growth prospects or profitability latest annual report. Woodward is one JBS blazing sustainable-beef trail prospects of the company.” of the largest private-sector employ- and Longmont. Information was Attempts to reach Donovan ers in Northern Colorado with about family home price in Fort Collins, BY STEVE LYNN “sustainable beef” as the embattled were unsuccessful and a Woodward 1,475 employees in a 2013 tally. [email protected] industry seeks to utilize more envi- spokesman also declined to arrange Donovan has done well with the ronmentally sensitive, humane meth- an interview with him. purchases to date. He started buying GREELEY – JBS USA is lead- ods to raise cattle. Donovan’s purchases, while note- in September 2012 when shares were also compiled from Logan and ing a worldwide initiative to define ➤ See JBS, 11 worthy, don’t make him the largest ➤ See Donovan, 2 for example, was $261,000. The CONTENTS Serving Northern Colorado Visit ncbr.com for breaking news Small Business Briefcase ...... 18 On The Job ...... 17 Innovation Business News Digest .....6 Online Poll ...... 22 SBIR program Calendar ...... 16 The Eye ...... 3 Morgan counties. reauthorized ...... 5 Editorial ...... 22 Time Out ...... 15 median household income in Hospitality For The Record ...... 19 New speakeasy in Old Town ...... 13 Labor brain Wage-hour probes Lists In the fourth quarter of 2013, focus on eateries ..... 13 Agribusinesses ...... 9 2012, meanwhile, was $53,359. the index w as 142 for northeast- Twenty-eight percent of that ern Colorado, down from 154 income is $14,941, or $1,245 per nearly two years earlier. Hous- month. At 4.5 percent interest, Competitive Rates t'MFYJCMF5FSNTt-PDBM%FDJTJPOT ing affordability index levels above 100 indicate meanwhile, the mortgage payment on that $261,000 that median family income is above what is needed home, with a 20-percent down payment, would be to afford the median-priced home assuming cur- $1,058, making it still affordable by the realtors’ rent interest rates. The higher the index, the more index standards but less so than two years ago.

UPDATE We've become the most popular locally owned bank in Northern Colorado by being dedicated to the Since that time, home prices in the Boulder percent to $268,000. And in Loveland/Berthoud, Valley and Northern Colorado have only risen. it was up 2.8 percent to $267,250. IFBMUIZHSPXUIPGCVTJOFTT in our community. The median price in Fort Collins in October was By comparison, median household income in $283,800, up nearly 11 percent from the same Colorado rose by just 2.4 percent in 2013, according $BMMPSTUPQCZUPEBZUPEJTDVTTZPVSCPSSPXJOH month a year earlier. In Boulder, the median single- to Census Bureau ﬁ gures. Average mortgage rates OFFETXJUIRVBMJíFEBOESFTQFDUFEMFOEFST family home price was $655,000, up 6.5 percent. for 30-year ﬁ xed-rate loans have dropped about half Greeley’s median for October was up a whopping of a percentage point since the early part of this year, www.HomeStateBank.com 23 percent from a year earlier, from $165,000 to according to bankrate.com. $203,000.NEWSMAKERS In Longmont, the median was up 2.1

NEWSMAKERS

2014 (970) 203-6100 (303) 682-7100 Loans subject to credit approval. 2014 Member FDIC 10 | Dec. 26, 2014 - Jan. 8, 2015 BizWest | www.bizwest.com State of Vision

Vision is more than sight; it is also insight. The proposed Temple Grandin Equine Center helps realize her vision. It will bridge the gap between human and animal, providing unique therapies for those with physical, emotional, and developmental challenges. Led by her vision, we all see further. affordable are the median-priced homes. The index is designed to measure how much a family earning the median income can afford assuming it doesn’t want its mortgage payment to exceed 28 percent of pre-tax income and that a 20-percent down payment will be made. colostate.edu At the time, the median single- family home price in Fort Collins, Photo by Rosalie Winard for example, was $261,000. The median household income in 2012, meanwhile, was $53,359. Twenty-eight percent of that income is $14,941, or $1,245 per month. At 4.5 percent interest, Competitive Rates t'MFYJCMF5FSNTt-PDBM%FDJTJPOT meanwhile, the mortgage payment on that $261,000 home, with a 20-percent down payment, would be $1,058, making it still affordable by the realtors’ index standards but less so than two years ago.

We've become the most popular locally owned bank in Northern Colorado by being dedicated to the percent to $268,000. And in Loveland/Berthoud, it was up 2.8 percent to $267,250. IFBMUIZHSPXUIPGCVTJOFTT in our community. By comparison, median household income in Colorado rose by just 2.4 percent in 2013, according $BMMPSTUPQCZUPEBZUPEJTDVTTZPVSCPSSPXJOH to Census Bureau ﬁgures. Average mortgage rates OFFETXJUIRVBMJíFEBOESFTQFDUFEMFOEFST for 30-year ﬁxed-rate loans have dropped about half of a percentage point since the early part of this year, www.HomeStateBank.com according to bankrate.com.

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BizWest | www.bizwest.com Dec. 26,2014 - Jan. 8, 2015 | 11 Feb. 14-27

Top stories online: n Uptown Broadway Boulder, Xcel feud apartments sell for $27M n Falafel King recalls hummus, chili wraps over system repair n Westminster investors buy shopping BIZWEST STAFF $1 beneath Boulder-owned open center space. The work was necessary SMALL BUSINESS CONSTRUCTION Living Design winner Multifamily housing in Chase/Google contest booming in Broomfield If there was any question 3A 15A due to 2013fl ood damage to a n Volume 33 Issue 3 | Feb. 14-27, 2014 Buildings under over whether emotions were Boulder, Xcel feud over system repair line serving the neighborhood. BY JOSHUA LINDENSTEIN agreement between the city and Xcel [email protected] Utility refutes city’s accusation that it to install the new line to Shanahan way at Lafayette Ridge beneath Boulder-owned open BOULDER — Xcel Energy Inc. is ‘running distribution system down’ space. running high over Boulder’s denied accusations by the city of The work is necessary due to Sep- But the city also made clear Boulder that the power company is And Xcel fired back its own belief basic engineering and practical stand- tember flood damage to a line serving letting its distribution system fall into that a solution proposed by the city point.” the neighborhood on the south edge disrepair because of the city's pending to build a new distribution line serv- The latest spat in Boulder’s munici- of town. But Boulder's release also Crossing attempt to create a municipal electric ing south Boulder’s Shanahan Ridge palization quest came following a Feb. made clear that the city had lobbied municipalization debate, the utility. neighborhood was “inferior from a 6 city press release that outlined an ➤ See System, 24A that it had lobbied for a different

Hub of natural/organic food production LAEC, city city answered that by leveling Boulder Valley food manufacturers servicing small food companies negotiating solution, one that would have n Boulder’s wellness some serious accusations at Xcel on economic run a feeder out of the substa- development program improving Economic council might Energy Inc. in February. run Longmont’s programs tion near the National Center for BY BETH POTTER health [email protected] LONGMONT — Represen- That’s when city officials tatives are negotiating terms of Atmospheric Research, running a contract that lays out how the Longmont Area Economic Coun- cil might take over the city of Longmont’s economic development efforts, according to assis- alleged that they believed the tant city manager Shawn Lewis. beneath sidewalks and other Longmont city council members in January voted to consolidate all city economic development efforts with the Longmont Area Economic Council. The group is a public- electric company was allowing private partnership funded by the pavement along easements. city and area companies. It has JONATHAN CASTNER Risi Moffett, an employee of beverage producer Saquito Mix LLC, mixes a batch of the company’s chai energy product representatives from private com- at The Kitchen Coop in Broomﬁeld, which provides food-manufacturing space for small companies. For a look at how panies on its board. the Boulder Valley has become a hub for natural and organic food production. See story, 11A. “The contract will entail LAEC its distribution system to fall assuming the city’s economic Instead the city agreed to ➤ See Economic, 8A

CONTENTS Serving Boulder & Broomfield Counties Awards ...... 28A For the Record ...... 25A Boulder County’s Business Journal Bank Notes ...... 6A Natural Products ...... 11A into disrepair because of the BCBRdaily ...... 2A Nonprofit Network ...... 28A allow Xcel to bore beneath open Business Digest ...... 28A On the Job ...... 29A Calendar ...... 29A Product Update...... 28A Discoveries...... 9A Publisher’s Notebook ...... 30A Editorial ...... 30A Real Estate ...... 22A Eye ...... 3A Sales Smarts ...... 7A city’s pending attempt to create LISTS space to route the new portion Engineering Firms ...... 10A Residential Property a municipal electric utility. Natural-Products Companies ...... 12A Management Firms ...... 21A of the old line from the Eldo- Xcel fi red back that the accu- rado Springs substation. The sations were baseless and that damaged line had previously countered that a solution proposed by the city to run through some adjacent private property to build a new distribution line serving south Boul- which Xcel no longer could gain access. der’s Shanahan Ridge neighborhood was “inferior Xcel argued that the city’s solution would from a basic engineering and practical standpoint.” have required double the wire distance and cost The argument stemmed from a city press four times as much, while the city maintained release outlining an agreement between the city that Xcel’s solution did little to mitigate future and Xcel to install the new line to Shanahan Ridge fl o o d r i s k s .

UPDATE

Xcel moved forward with making the repairs system anyway, Xcel moved to dismiss that suit, and rerouting the line through the city’s open saying the court didn’t have jurisdiction without space. But the municipalization debate has gone the PUC fi rst approving Boulder’s plan. Finally, far beyond trading barbs over system repairs. Three Xcel fi led a suit against the city, saying city council lawsuits are briefed and pending a judge’s decisions did not meet city charter requirements for forming in district court. its own utility. First, Boulder is appealing a ruling by the Public Those are in addition to a petition fi led by Xcel Utilities Commission that the city must clear its requesting that the Federal Energy Regulatory municipalization plan with the commission before Commission declare that the city must seek the fi ling a condemnation suit. As Boulder fi led its regulators’ approval to acquire the high-voltage condemnationNEWSMAKERS suit to acquire Xcel’s distribution transmission loop that serves the city.

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BizWest | www.bizwest.com Dec. 26,2014 - Jan. 8, 2015 | 13 Feb. 21-March 6

Top stories online: n NoCo factories slow to 800 multifamily units planned at Foothills n Fort Collins names add jobs, boost wages new deputy city manager

BY STEVE LYNN $1 gled when Congress waited until n Design team picked IN FLIGHT HEALTH CARE the beginning of 2013 to renew Aviation firms, cities eye Wellness programs endure new industry collaboration. although ROI in doubt. for Old Town Square Politicians and industry lead- 3 7 the production tax credit and had Volume 19 Issue 12 | Feb. 21-March 6, 2014 ers called for a rebirth of Ameri- NoCo factories slow to add jobs, boost wages to lay off hundreds of workers. BY STEVE LYNN of improvement still years away. in 2012. Advanced Energy Industries new products, chief executive Tom [email protected] Northern Colorado’s prominent Inc. (Nasdaq: AEIS) shed 100 jobs, Gendron said. As the company nears n COO for Banner Fort manufacturers either saw no growth from 500 to 400 year-over-year in the production phase, it will add FORT COLLINS – Even as politi- or downsized their operations last Fort Collins, the headquarters of the additional employees in Northern can manufacturing this year, but cians and industry leaders call for a year from the year before. solar-invertor and thin-films manu- Colorado. Some manufacturing com- rebirth of American manufacturing, Woodward Inc. (Nasdaq: WWD) facturer. “We’re starting to forecast ramp- the picture in Northern Colorado’s employed 1,475 people last year, Woodward’s production employ- up in employment,” he said. factories is grim, with overall man- about the same number of workers ment has remained flat during the Advanced Energy, for its part, has Collins Medical Center ufacturing job numbers remaining the Fort Collins aerospace and energy past few years while it has added outsourced manufacturing on its solar Northern Colorado Business Report the picture in Northern Colo- largely flat or down and the likelihood control systems company employed engineering employees to develop ➤ See Manufacturing, 19 panies such as Otter Products Northern Colorado Business Report chosen Discoveries: Space sheep Chambers rado’s factories remained dismal, mull stance LLC, which makes OtterBox with overall manufacturing job on pot-shop smartphone and tablet cases, had n membership Blue Ocean invests BY MOLLY ARMBRISTER numbers remaining largely fl at [email protected] seen great success, but overall Chambers of commerce in North- ern Colorado are trying to decide $5 million in St. whether to allow marijuana dispensaries to become members, should such or down. a business want to join. Northern Colorado had seen All three chambers in Northern JONATHAN CASTNER Colorado’s largest cities – Fort Col- Dr. Christian Puttlitz, left, pictured here with Ph.D. student Ben Gadomski, is studying sheep to help NASA better lins, Loveland and Greeley – opposed Renatus understand bone strength and healing in space. Amendment 64 prior to the 2012 election, arguing that passing the engineering and head of the CSU measure would be bad for Colorado. Northern Colorado’s promi- See related story stronger employment growth in Animals help NASA research team, is responsible for The amendment, which legalized Use of sheep in research effort closely landing a $1.2 million grant from sales of recreational marijuana in bone up health watched, page 16. NASA to fund the study. Colorado in small amounts and for issues for astronauts “It is estimated that it could take those age 21 or older, was a divisive travel safer. anywhere from nine to 12 months issue for the business community, but nent manufacturers had either BY MELISSA SCHAAF The federal space agency hopes to travel to Mars and back depend- now that the dispensaries are legal health care, retail and services [email protected] to send astronauts to Mars by 2030, ing how long [the astronauts] stay commercial entities, chamber officials but it needs more information about when they get there,” Puttlitz said. must reconcile their past stance with Colorado State University, the impact of weightlessness on the “Two big risk factors that could the new reality. NASA and a herd of sheep have body first. Christopher Puttlitz, affect them psychologically and The Fort Collins Area Chamber is seen no growth or downsized teamed up to make human space associate professor of mechanical ➤ See Sheep, 17 ➤ See Chambers, 26 than in manufacturing.

CONTENTS Serving Northern Colorado Visit ncbr.com for breaking news Airport Briefcase ...... 26 Marketing ...... 21 Higher fuel sales offset Business News Digest .....6 On The Job ...... 25 their operations from 2012 to passenger losses ...... 2 Calendar ...... 24 Online Poll ...... 30 Woodward also expects hiring Health care Editorial ...... 30 The Eye ...... 3 Ranks of primary-care For The Record ...... 27 Time Out ...... 23 docs measured ...... 3 Agribusiness Beef industry examines 2013. Fort Collins-based Wood- feed supplements ...... 5 Lists to pick up substantially after its Medical Clinics ...... 14-15 ward Inc. (Nasdaq: WWD) new headquarters, at the inter- employed about 1,400 in 2013, section of Lemay and Lincoln about the same number of peo- avenues, is complete in 2015. ple as in 2012. Fort Collins-based Advanced Energy Advanced Energy, however, conﬁ rmed additional Industries Inc. (Nasdaq: AEIS) employed about 400 layoffs this summer, though the company did not people in the city last year, down from about 500 in say how many people lost their jobs. The company 2012 from restructuring. has outsourced manufacturing on its solar subas- Vestas Wind Systems saw a steep drop to 1,300 semblies from Fort Collins to Shenzhen, China, employees in 2013 from 1,700 employees in 2012, while also contending with lower sales of solar also as part of a restructuring. The company strug- inverters.

UPDATE

Overall, the manufacturing sector has seen gains had a goal to increase its workforce to 2,000 in in Boulder, Fort Collins, Loveland and Greeley Colorado, the most it has ever employed statewide. areas, according to data from the Colorado Depart- Statewide, manufacturing employed 140,500 ment of Labor and Employment. people in October 2014, up from 130,600 in Janu- From January 2013 to October 2014, the number ary 2013. of Boulder area manufacturing jobs had grown from Average weekly income from manufacturing 16,900 to 17,800, according to state data. jobs, however, has seen only modest gains. In the Fort Collins and Loveland area manufacturing Boulder area, the average weekly wage for a manu- jobs have risen to 12,000 from 11,600 during the facturing employee rose to $1,560 during the sec- period, while Greeley area manufacturing jobs have ond quarter from $1,530 during the same period a grown to 11,900 from 11,300. year earlier. “ThatNEWSMAKERS is a substantial growth rate,” said Joe Win- In Fort Collins and Loveland area, the average ter, senior economist with the Department of Labor weekly wage increased to $1,450 in the second and Employment. quarter from $1,400 the same quarter last year. The

Vestas,NEWSMAKERS for example, has ramped up its hiring average weekly wage in Greeley for a manufacturing due to increased wind turbine orders. The company employee rose to $850 from $790. 2014 2014 14 | Dec. 26, 2014 - Jan. 8, 2015 BizWest | www.bizwest.com OurOur businessbusiness isis takingtaking carecare ofof youryour businessbusiness

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970-226-4000 | www.prpa.org

BizWest | www.bizwest.com Dec. 26,2014 - Jan. 8, 2015 | 15 Feb. 28-March 13

Top stories online: n City of Boulder-Xcel Group envisions task force disbands n 4 restaurants sign on at Lafayette Crossing brand for region n Centura to build 3 health, wellness JOSH LINDENSTEIN $1 the BEDC announced its initial centers name change and a shift to a AVIATION ECON DEVELOPMENT Aircell provides Wi-Fi SBDC’s pilot program on business aircraft offers tools for growth One year after rebranding as 9A 12A more regional focus. Volume 33 Issue 4 | Feb. 28 - March 13, 2014 the Northwest Denver Economic Group envisions brand for region In February of 2014, the BY JOSHUA LINDENSTEIN Inside [email protected] Economic-development organization n Center helps small businesses 12A n Longmont, LAEC negotiating 13A Development Partnership, the BROOMFIELD — One year after wants to aid new, existing businesses NDBP was still refining its rebranding as the Northwest Den- ver Economic Development Partner- west Denver Business Partnership. build a business brand for the region. Hunter Douglas in Broomﬁeld. “We ship, the former Broomfield Eco- While economic development is still “The economic development think we can help with the attraction nomic Development Corp. continues an ancillary goal, the new name helps groups are always looking for someone of new business, and help with (the former Broomfield Economic to evolve as it strives to provide a emphasize that the organization’s new to come in, but what about all the businesses) that are here so they don’t speciﬁ c functions and working regional voice for business. main objective will be to help compa- people already here,” said Mike Cien- feel like they’re left out.” The nonprofit organization has nies located in the northwestern por- ian, a board member of the NDBP and The specific functions of the changed its name again – to North- tion of the metro area do business and vice president of quality assurance at ➤ See Brand, 13A %XPERTISE&OCUS2ESULTS Development Corp. continued to Climbing hard to build membership and the walls at CU Boulder company evolve as it attempted to provide creates 7,000- gain feedback from members square-foot challenge for students

Eldorado Climbing Walls a regional voice for businesses. in Boulder recently on what they wanted from the ﬁnished a 7,000-square- foot climbing wall for the University of Colorado- Boulder’s recreation center expansion project. The nonprofit organization In addition to college organization. settings, the company’s markets include municipalities, military, commercial gyms and changed its name again early in high-end residential. Covering an area bounded See story, 3A 2014 to Northwest Denver Busi- roughly by Interstate 70 to the Mattress Liquidators, Inc.

ness Partnership. With economic COURTESY ELDORADO CLIMBING WALLS/HEAD RUSH TECHNOLOGIES south, the foothills to the west,

CONTENTS dba Serving Boulder & Broomﬁeld Counties Boulder County’s Business Journal Awards ...... 18A High Tech ...... 6A BCBRdaily ...... 2A Medical File...... 7A development still an ancillary Business Digest ...... 18A Nonproﬁt Network ...... 18A Interstate 25 to the east and the Calendar ...... 19A Observations ...... 22A CEO Roundtable ...... 4A On the Job ...... 19A Editorial ...... 22A Product Update ...... 19A Eye ...... 3A Real Estate...... 20A For the Record ...... 15A

goal, the new name was meant LISTS Economic-Development northern Boulder County line Aircraft Companies ...... 10A Organizations ...... 14A to emphasize the organization’s to the north, speciﬁ c tasks were and has been acquired by main objective of helping com- to include assisting growth of panies located in the northwest- the area’s key industries, doing ern portion of the metro area do business and build policy advocacy at the state and local levels, provid- has been acquired by a business brand for the region. ing networking and educational events and building &INANCIAL!DVISORY The NDBP ultimately came about after a 2010 a business brand for the region that organizers said decision by the city of Broomﬁ eld to hire its own didn’t exist. economic development director and cut its funding The idea was that the NDBP would work with to the BEDC from $246,000 per year to $100,000 both local and regional organizations to help attract the next year and zero after that. In March of 2013, employers but also not to duplicate services.

UPDATE

Building membership didn’t go as well as it nization might simply have been ahead of its time. needed to, however, to keep the NDBP aﬂ oat. The “At the end of the situation, people were joining organization dissolved in September. but it wasn’t at a fast enough rate,” Cienian said. “We CEO Mike Kosdrosky and board chairman Dave had all kinds of positive feedback saying this is just Marusiak couldn’t be reached for comment. But what the area needs. It just didn’t happen in time. It NDBP board member Mike Cienian of Hunter Doug- was kind of disappointing because all the indicators las in Broomﬁ eld said he thought the idea for the orga- had been really positive.”

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BizWest | www.bizwest.com Dec. 26,2014 - Jan. 8, 2015 | 17 March 21-April 3

Top stories online: n OtterBox settles FirstNet opens case with ex-employee n Six area companies join Innosphere technical HQ n World must come to Feld’s door – or else n Department cracks in Boulder down on employer retaliation BY JOSH LINDENSTEIN THE LIST UTILITY PROVIDERS: TOP POWER COMPANIES, PAGE 8A | SUBMIT BUSINESS INFORMATION FOR FUTURE BIZWEST LISTS AT [email protected] But it is in Boulder that engi- MEDIA BizWest papers merge, new pub announced. 20A-21A TECHNOLOGY Fast-growing telecom, Zayo, stretching neers and other technical and its legs nationwide. 3A DISCOVERIES t CU-Boulder researchers strive to n Court waits to see improve space gardens. 13A A new federal initiative to VOLUME 33 | ISSUE 5 | MARCH 21-APRIL 3, 2014 support staff will work to design, if Butterball property create a nationwide wireless FirstNet opens technical HQ in Boulder test and set specifi cations for a BY JOSHUA LINDENSTEIN headquarters in Boulder this spring. public safety. Boulder, Larimer and Weld counties, [email protected] The First Responders Network Since the Sept. 11, 2001, terrorist the public turned en masse to mobile sells Authority, or FirstNet, has leased attacks, the nation has wrestled with devices to document events and check BOULDER – A new federal initia- 28,000 square feet of space at 3122 how to ensure first responders can on loved ones. As the surge of cell broadband network for police tive to create a nationwide wireless Sterling Circle, and will hire 100 communicate during public emer- signals hit the airwaves, some first nationwide network. broadband network for police and employees to begin designing the gencies. responders saw their own communi- firefighters is opening its technical ground-breaking system dedicated to Last September, as floods ravaged ➤ See FirstNet, 26A and fi refi ghters opened its tech- Water prices This area was chosen in part create woes nical headquarters in Boulder in for affordable because of the proximity to the development BY MOLLY ARMBRISTER the spring. [email protected] Public Safety Communications Deviations in the way water prices are determined by area water districts could keep affordable real estate development out of some of Colo- rado’s fastest-growing areas. The First Responders Network Many water districts in Colorado, Research lab, a joint effort of the including East Larimer County Water District and Fort Collins Utilities, charge for raw water based on a tiered system that takes into account the size of the residential lot where the Authority, or FirstNet, leased JONATHAN CASTNER water will be used. National Institute of Standards Using this approach, these districts Synergy Resources Corp. workers – from left, Loren are able to keep costs down on smaller Williams, Jason McKenzie and Joe Edgerton – operate lots, something real estate profession- ROBOTICS IN THE FIELD robotic equipment in a “dog house,” the main control als believe will help keep develop- a 28,000-square-foot space at room for a drilling rig. ➤ See Page 7A. ➤ See Water, 11A and Technology and the NTIA Bipartisan bill would reward energy efficiency in home loans 3122 Sterling Circle where it BY JOSHUA LINDENSTEIN comply with new mortgage lending lenders to take into account energy Association of Homebuilders to the that is located in Boulder. The [email protected] rules that went into effect in January cost savings of a particular home Natural Resources Defense Council, with the federal Dodd-Frank Act. when considering a loan applicant’s some question how much positive You’ve found your dream home, If that home you covet is more eligibility for federally backed mort- impact the legislation will have and crunched the numbers and decided energy efficient than most, you might gages – about 90 percent of all new whether it might entangle the loan you can swing the monthly payments. be in luck if the SAVE Act is passed. home loans. application process further. plans to hire 100 employees who The only problem is that your debt- Co-sponsored by Sen. Michael Despite a wide coalition of sup- Bennet and Sen. Johnny Isakson, PSCR already has been focused to-income ratio is a shade too high to Bennet, D-Colo., the bill requires porters ranging from the National ➤ See Loans, 15A

Serving Boulder Valley and Northern Colorado. Visit bcbr.com and ncbr.com for breaking news. CONTENTS will begin designing the ground- Health care on research, development and Despite national Briefcase ...... 22A Online Poll ...... 38A decline, local jobs Business News Digest .. 6A Sales Smarts ...... 25A on the rise ...... 2A Editorial ...... 38A Small Business Adviser 19A Banking For The Record ...... 27A The Eye ...... 3A Dodd-Frank, marijuana On The Job ...... 24A Time Out ...... 23A breaking system dedicated to rules have banks on testing to improve fi rst-respond- edge ...... 3A public safety. er communications. The area’s Congress established FirstNet thriving telecommunications in 2012, allocating $7 billion for industry, meanwhile, could ben- the build-out of a network that would help ensure efi t by FirstNet’s arrival, as well as provide FirstNet fi rst responders can communicate during public with access to valuable expertise. emergencies, when a surge of cell signals hitting the Operations in Boulder are expected to take at airwaves can often bog down networks. least a year to ramp up completely. PSCR operations FirstNet is an independent authority within the and technical manager Jeff Bratcher led the initial National Telecommunications and Information efforts locally as deputy chief technology offi cer of Administration that is based in Northern Virginia. FirstNet.

UPDATE

The FirstNet technical headquarters in Boulder meetings, developing requests for proposal and so far employs about 20 people. That includes First- providing support for early project builders like Net chief technology offi cer Ali Afrashteh, who was Adams County, which is building out its own fi rst hired in late April. responders network that will be interoperable with Afrashteh will be charged with planning, devel- the nationwide FirstNet network. oping, monitoring and coordinating the implemen- FirstNet as a whole has also been busy conduct- tation ofNEWSMAKERS all network activities within FirstNet. The ing consultations with public safety offi cials in all technical offi ce will also be responsible for testing 50 states to understand the needs of each, as well various technologies to ensure that the network is as sending out requests for information to industry

b u i l t e fNEWSMAKERS ﬁ c i e n t l y . to assess the capabilities, opportunities, risks and So far, those in the Boulder ofﬁ ce have been business partnerships that could support construc- largely focused on vendor and market research tion of the network. 2014 2014 18 | Dec. 26, 2014 - Jan. 8, 2015 BizWest | www.bizwest.com WE ALL NEED HEALTH INSURANCE IT’S TIME TO CHOOSE YOUR FirstNet opens 2015 COVERAGE technical HQ in Boulder

But it is in Boulder that engi- neers and other technical and support staff will work to design, test and set specifications for a nationwide network. This area was chosen in part because of the proximity to the Public Safety Communications Research lab, a joint effort of the National Institute of Standards and Technology and the NTIA that is located in Boulder. The PSCR already has been focused on research, development and testing to improve first-respond- er communications. The area’s thriving telecommunications Enrollment Centers Are Open industry, meanwhile, could benefit by FirstNet’s arrival, as well as provide FirstNet 7ALK INSWELCOMEs.OAPPOINTMENTNEEDEDs&REEEXPERTHELP with access to valuable expertise. Operations in Boulder are expected to take at least a year to ramp up completely. PSCR operations Adams County - Lafayette and technical manager Jeff Bratcher led the initial Kids First Health Care 84PVUI#PVMEFS3Et-BGBZFUUF efforts locally as deputy chief technology officer of FirstNet. &UI"WFt$PNNFSDF$JUZ 4VO".1. Sat — 9 A.M.-3 P.M. Wed — 3-7 P.M. Sat — 11 A.M.-3 P.M. Denver - 16th Street Mall UIBOE$BMJGPSOJBt%FOWFS Southeast Denver/Aurora .PO4BU/PPO1. &)BNQEFO"WF 4VJUFt%FOWFS 5VFT5IVST1. Lakewood - St. Anthony Hospital .FEJDBM1MB[B0/& Wheat Ridge - Liberty Tax O ce 8OE1MBDF 'JSTU'MPPSt-BLFXPPE 8BETXPSUI#MWEt8IFBU3JEHF 4FFXFCTJUFGPSUJNFT .PO'SJ".1.

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BizWest | www.bizwest.com Dec. 26,2014 - Jan. 8, 2015 | 19 April 4-17

Top stories online: n Twitter acquiring Cash-only pot sales Boulder-based Gnip Inc. n Fort Collins to explore joint irk state, owners agreement with CSU on stadium costs

BY STEVE LYNN THE LISTS LOCAL BANKS RANKED BY ASSETS | NONLOCAL BANKS RANKED BY ASSETS | LAW FIRMS banks felt those advisories did 2013 HEALTH CARE -17.27 2012 $29,954 With open enrollment closed, focus 37.61 shifts to small businesses. 2A $36,208 $96,777 n -6.73 Clap along: Fort $70,326 $13,047 ENERGY 12.93 Former tea maker tests new hydrogen $13,988 $17,470 37.7 not go far enough in addressing fuel cell. 3A $15,470 $8,543 37.59 $6,204 $22,478 BANKING 30.74 $16,337 $62,565 t Collins, Boulder -9.71 Tax collectors have been VOLUME 33 | ISSUE 6 | APRIL 4-17, 2014 their concerns. among happiest cities almost as frustrated as owners Cash-only pot sales irk state, owners Mark Bower, chief ﬁ nancial BY STEVE LYNN cash only. But collecting all of that revenue Sawyer is one of many who have [email protected] Ginny Sawyer, policy and project may prove challenging if banking raised concerns about an absence of manager for the city of Fort Collins, with cash-only marijuana businesses accountability in the marijuana indus- FORT COLLINS – Tax collectors said the city expects to receive at remains illegal. try since Colorado voters in November are almost as frustrated as owners of least $700,000 annually from retail “It’s a challenge,” she said. Cash- passed Amendment 64, which legal- of pot shops as they wrestle with pot shops as they wrestle with how marijuana establishments after they only business “probably lends itself to officer for Home State Bank, n to collect taxes in an ancient way – get started. potential fraud.” ➤ See Pot, 10A Spice of Life how to collect taxes in an ancient Cities’ clout told BizWest he would like to Catering managing Women in cable talks way – cash only. showing questioned as do business with marijuana dis- new events space in craft merger looms A lack of banking regulations breweries: Local franchise fees top $3.5 million pensaries. If he did so, however,

BY JOSHUA LINDENSTEIN Boulder [email protected] has made paying taxes more dif- YES, Keeping the local Comcast cus- he would be violating the Bank tomer service store in town is a top priority of Loveland ofﬁcials as they hash out a new franchise agreement with the cable television giant. Multiple cities on the Northern ﬁ cult for marijuana businesses WE CAN Front Range are in the midst of renego- Secrecy Act. JONATHAN CASTNER/FOR BIZWEST tiating agreements with Comcast. The Lauren Salazar, with New Belgium Brewing in Fort Collins, is leading a new class of young female brewmasters. It’s an problem is that cities don’t have a lot uphill climb, though, with women comprising just 29 percent of craft brewery employees nationwide. of leverage in such negotiations. Addi- n VanDyne tionally, the pending merger between BY MELISSA SCHAAF is gaining momentum across the the production, sales and manage- Comcast and Time Warner might well and just as problematic for cities [email protected] nation and throughout Colorado: ment side of craft beer as well.” only tip the scales further in favor of the “While the Department of women in craft beer. Salazar prefers flipflops over cable company in future negotiations. Lauren Salazar drinks beer for “We’re seeing more and more boots. A Georgia native, she got her The contracts allow the cable com- a living. women brewers emerge,” said Steve start at New Belgium in 1997 as an pany access to city rights of way for SuperTurbo raises Salazar, 43, is New Belgium Kurkowski, marketing and commu- assistant to Kim Jordan, owner and servicing its infrastructure while pro- Brewing Co.’s wood cellar manager, nications director for the Colorado founder of the brewery. Through viding the cities with much-needed to collect them. sensory analyst, specialty brand Brewers Guild. “They’re wearing education and dedication, Salazar revenue for their general funds. By Justice said they weren’t going to manager, Lips of Faith program boots and walking around the brew went from pursuing a career in law, cities can charge cable television creator and beer recipe designer. house and making beer. Addition- geriatric social work to pioneering providers up to 5 percent of the com- She also is part of a movement that ally, we’re seeing more women in ➤ See Women, 27A panies’ gross revenue generated within $15 million ➤ See Cable, 28A Still, marijuana tax reve- CONTENTS prosecute, it doesn’t mean that Serving Boulder Valley and Northern Colorado. Visit bcbr.com and ncbr.com for breaking news.

Floods Briefcase...... 20A Oil and gas panel eyes new Business News Digest ...... 6A disaster response plan ...... 3A Editorial...... 30A Energy For the Record...... 25A nue has poured into state cof- Battery breakthroughs On the Job ...... 22A the (Federal Deposit Insurance changing the landscape 4A Online Poll...... 30A Ethics Marketing...... 17A BBB rolls out Center for The Eye ...... 3A fers. Despite the added tax rev- Character Ethics...... 9A Time Out ...... 23A Corp.) doesn’t have all of their enue, concerns remain about power and authority to fi ne us whether the state has received and put us in jail,” he said. “It’s its rightful share from the cash- going to take legislation at the only operations. federal level to fi x this.” Many medical marijuana businesses have oper- Erica Freeman, co-owner of Choice Organics, ated as cash businesses for years in Colorado, but Larimer County’s fi rst retail marijuana store, agreed cash-only transactions still put businesses at greater that federal regulators need to address the situation. risk of being robbed. “A cash-only business is ridiculous,” she said. The U.S. Treasury and Justice departments “There are many, many, many stores that can’t even issued recent guidelines to increase the availability pay their own taxes because they have to have a of fi nancial services to marijuana businesses, but bank account to do it.”

UPDATE

Colorado has since granted a charter for the ﬁ rst National Credit Union Administration and Federal ﬁ nancial institution to serve the marijuana industry, Reserve. The Fourth Corner Credit Union. Fourth Corner must get a master account from The Colorado Division of Financial Services the Federal Reserve and insurance from the Nation- issued the charter in November to The Fourth al Credit Union Administration. Fourth Corner Corner Credit Union, which could open in January. can operate until the NCUA makes a decision on “For now, this has at least the potential to present the latter. Colorado with immediate relief,” Skyler McKinley, Attorney Mark Mason, an organizer of Fourth deputyNEWSMAKERS director of marijuana coordination for Gov. Corner, said the credit union administration review John Hickenlooper, told BizWest. could take as long as two years. However, before the credit union can open per-

manentlyNEWSMAKERS for business, action is also required by the The Associated Press contributed to this report. 2014 2014 20 | Dec. 26, 2014 - Jan. 8, 2015 BizWest | www.bizwest.com AN ADVERTISING FEATURE OF BIZWEST ThoughtLeaders BUSINESS ANSWERS TO PRESSING B2B MATTERS

HEALTH CARE ACCOUNTING COMMERCIAL REAL ESTATE

What is Assisted Living Colorado Child Care Tax Credit Rising Costs Raise Concerns at Lakeview Commons? TIMELY REMINDER Tax Savings Tip - Most of us realize The recent run up in residential land development and understand the federal tax bene ts of charitable costs have caused signi cant concern among industry Assisted Living is designed to provide services in donations, but many of us are unaware of the Colorado leaders that prices are rising faster than the apprecia- between Independent Living and tax credits that are available when tion rate of housing values. Said Skilled Nursing Care. It is perfect for you make donations to promote another way, the cost of building those who need more assistance child care. Earlier this year, we houses going up faster than the than what they can provide for learned that the popular Colorado value of said houses. themselves and who want to safely Childcare Tax credit is not only With the recent increases in banks felt those advisories did maintain their independence. back, but is now guaranteed from costs for materials, labor, and fees, Sta is available 24 /7 to assist not go far enough in addressing 2013 through 2015 tax years. residential developers are aggres- residents with everyday activities their concerns. Clinton Dale, Essentially, this means that you Ryan Sanger, CPA sively trying to nd alternative John Baker such as bathing, dressing, and Administrator Cassidy Turley could recoup your entire state Tax Senior Manager cost saving measures in order to Mark Bower, chief financial personal hygiene. LPNs are on sta Lakeview Commons Anton Collins Mitchell Assisted Living tax liability each year for the next deliver an aordable product. and provide medical oversight to officer for Home State Bank, three years through charitable Many creative measures exist our residents. With direct access giving to quali ed providers. including alternative utility providers, phased develop- told BizWest he would like to to nurse practitioner services, outpatient therapy, home ment, metropolitan districts, etc. However, without a care, and companion care, we are able to provide indi- do business with marijuana dis- The basics of the credit are that you can make a cash signi cant decrease, the greatest impact of the rising vidualized attention. pensaries. If he did so, however, donation to a qualifying organization and receive a 50% costs is felt by the landowner in the value of the land. Lakeview Commons oers a multitude of services CO state tax credit in addition to your federal deduction. Identifying eciencies and alternatives for a site is he would be violating the Bank including; housekeeping, laundry, transportation for The credit is limited to the lesser of $100,000 or your integral to recognizing the full value of the asset. Secrecy Act. medical appointments and outings, and three meals a Colorado tax liability, and will carry forward for up to ve “While the Department of day served in our restaurant-style dining room with a full years. This dramatically increases the amount of impact time chef on sta. you’re able to make with your contribution. Justice said they weren’t going to We provide a varied activity program for our residents’ prosecute, it doesn’t mean that social, recreational, and educational needs. Some of our the (Federal Deposit Insurance popular activities include Wii bowling, story time, and bingo. Corp.) doesn’t have all of their John Baker power and authority to fine us Clinton Dale, Administrator 772 Whalers Way, #200 and put us in jail,” he said. “It’s Lakeview Commons Assisted Living Ryan Sanger, CPA Fort Collins, CO 80525 1422 W 29th Street 970.352.1700 Phone: 970.267.7402 going to take legislation at the Loveland, CO 80538 [email protected] [email protected] federal level to fix this.” 970-237-1470 www.acmllp.com www.cassidyturley.com Erica Freeman, co-owner of Choice Organics, Larimer County’s first retail marijuana store, agreed that federal regulators need to address the situation. “A cash-only business is ridiculous,” she said. “There are many, many, many stores that can’t even At Columbine, pay their own taxes because they have to have a bank account to do it.” you're family.

HOME CARE | INDEPENDENT LIVING | ASSISTED LIVING REHABILITATION | NURSING HOMES | MEDICAL EQUIPMENT www.columbinehealth.com

BizWest | www.bizwest.com Dec. 26,2014 - Jan. 8, 2015 | 21 April 18-May 1

Top stories online: n Low-cost street Thousands in area weed gives legal vendors heartburn n OtterBox pays U.S. $4.3 million to settle face ACA penalties whistleblower lawsuit n Apartment complex THE LISTS PRIVATE-SECTOR EMPLOYERS | PUBLIC-SECTOR EMPLOYERS BIZWEST STAFF 73% 73% The penalties escalate in subse- NEBRASKA WELD OIL AND GAS66% 66% 60% in Fort Collins sells for WYOMING

COLORADO quent years, topping out in 2017, $39 million April estimates by the Colo- KANSAS when the same family would pay VOLUME 33 | ISSUE 7 | APRIL 18 - MAY 1, 2014 rado Health Institute showed a maximum fee of more than n Hain acquires Thousands in area that more than 58,000 people face ACA penalties $2,000 or 2.5 percent of income. Estimates: Uninsured Fines for the uninsured Rudi’s bakery for to top 58,000 Those who remain uninsured, unless exempted, will have to pay a penalty when BY MOLLY ARMBRISTER they file their in Boulder, Broomfi eld, Larimer [email protected] 2014 income 2.5% After that, the penalties will be taxes. of annual household More than 58,000 people in Boul- $61.3 million income der, Broomfield, Larimer and Weld 2% or Drones’ use counties will likely remain unin- of annual $695/ sured, despite the Affordable Care household and Weld Counties would likely income adult adjusted for infl ation annually. Act, according to new estimates, and thousands of them will be subject to or up in the air penalties on their federal tax returns $325/ next year. adult DOUG STORUM/BIZWEST This year, an uninsured Colorado 1% remain uninsured despite the Christine Humphreys, a Louisville -based wildlife and real estate photogra- family of four would pay a maximum of annual The penalties for 2014 will pher, attaches a camera to a two-pound DJ1 Phantom to take aerial shots. fee of $285 or 1 percent of income, household n whichever is greater. The penalties income Class A offi ce or escalate dramatically in subsequent FAA rules leave commercial users in fog years, topping out in 2017, when that $95/ Affordable Care Act, and thou- same family would pay a maximum adult be enforced when taxpayers fi le BY DOUG STORUM Questions are also being raised fee of more than $2,000 or 2.5 per- 2014 2015 2016 [email protected] about the FAA’s legal authority to cent of income. $47.40 each $162.50 per $347.50 per building set for stop drone use for commercial pur- With the closure March 31 of the for child under child under child under The Federal Aviation Admin- poses while the agency crafts a new sign-up period for the new health the age of the age the age 18 with a of 18 of 18 istration has begun to enforce its set of regulations to govern them. insurance exchange, officials now are maximum sands would be subject to penal- longstanding ban on the commer- As more businesses explore how examining how many people failed of $285 per Sources: IRS and Healthcare.gov their 2014 tax returns at the cial use of small-drone technology, to use small-drone technology in to enroll and how many will pay the family. downtown Boulder creating confusion among operators real estate, commercial photogra- required fines under the new law. who are trying to use the new tech- phy, crop management and prod- Those who remain uninsured will under the ACA. The penalties will nology for profit. ➤ See Drones, 14 be subject to penalties unless they be enforced when taxpayers file their ties. qualify for one of several exemptions ➤ See Health, 9 beginning of 2015. Low-cost street weed gives legal vendors heartburn The Colorado Health Insti- BY STEVE LYNN plummeted. Since opening his retail half ounce and ounce for $140 and opened Jan. 1, illegal marijuana sales Pinning down exactly how [email protected] store Feb. 18, higher marijuana prices $280, respectively. have continued to thrive – if not blos- have helped lift his business. “It’s hard to ask a legitimate busi- som – after voters legalized recre- BOULDER – Dylan Donaldson is But he knows he may have a tough ness who pays taxes and license fees ational marijuana in November 2012. glad he converted his medical mari- time competing with the cheaper of tens of thousands of dollars to Marijuana grow operations that juana dispensary to a retail marijuana black market for marijuana sales, compete with someone who doesn’t,” feed illegal street sales are proliferat- tute’s figures showed that by store, Karing Kind LLC in Boulder. where a half ounce of weed can go for Donaldson said. “What’s going to ing, thanks to new laws that allow many people in Colorado are He had struggled with his medical $100 and one ounce can sell for $180. happen longterm?” marijuana to be grown and small marijuana business when prices of pot Karing Kind sells its least expensive Since retail marijuana stores first ➤ See Marijuana, 21

Serving Boulder Valley and Northern Colorado. Visit bcbr.com and ncbr.com for breaking news. CONTENTS 2016, about 6.4 percent of Lar- BBB Torch Awards Briefcase...... 18 uninsured is difficult. But an Students immersed in Business News Digest ...... 6 ethics debate...... 5 Editorial...... 30 For the Record...... 24 Careers Newsmaker Q&A...... 15 Making tough choices isn’t Nonproﬁt Network...... 19 imer County, 7.4 percent of taught in school...... 15 On the Job ...... 19 October 2013 survey by the Keep it Legal Online Poll...... 30 Pot businesses can’t bank on The Eye ...... 3 Weld County, 6.6 percent of much ...... 23 Time Out ...... 17 Colorado Health Institute esti- Boulder County and 4.7 percent mated about 640,000 working of Broomfield County would age Coloradans were without be uninsured, though not all would be subject to health insurance. That’s about 19.6 percent of the penalties. population. However, not all are subject to penal- The penalties for remaining uninsured under ties due to various exemptions under the ACA, and the ACA are signiﬁ cant. In 2014, an uninsured one economist estimated that 78 percent of those From our business to yours, we wish you Colorado family of four paid a maximum fee of who remained uninsured after the ACA rollout in $285 or 1 percent of income, whichever was greater. Colorado would be able to avoid the penalties. the best of the Holiday Season

UPDATE & joy for the coming New Year!

An August Gallup poll showed that Colorado had she said her organization is hoping to have some enjoyed the fi fth-largest percentage drop in unin- better estimates in about a month. sured rates nationwide since the ACA rollout, drop- As for the state’s health exchange, Connect for ping from 17 percent in 2013 to 11 percent in 2014. Health Colorado, that organization reported 24,800 Colorado Health Institute senior director of health-plan enrollments through the fi rst month of operations and communications Deb Goeken said open enrollment, which began Nov. 15. That’s com- her organization is working on a project to update pared to 12,700 health-plan enrollments through Your Perfect Financial Fit its projections of how many Coloradans will remain the fi rst month last year. uninsured by 2016. Of the 24,800 people who signed up, one third She said the April numbers were compiled early are customers new to the exchange. The remaining in the ACA rollout with the best available data then. two thirds have re-enrolled for coverage for next But withNEWSMAKERS the fi rst year of the ACA in the rearview, year.

NEWSMAKERS

ANBbank.com 2014 Member FDIC 1360 Walnut St., Boulder 2108 Milestone Dr., Ft. Collins 2014 303-394-5100 970-282-2400 22 | Dec. 26, 2014 - Jan. 8, 2015 BizWest | www.bizwest.com Thousands in area face ACA penalties

The penalties escalate in subsequent years, topping out in 2017, when the same family would pay a maximum fee of more than $2,000 or 2.5 percent of income. After that, the penalties will be adjusted for inflation annually. The penalties for 2014 will be enforced when taxpayers file their 2014 tax returns at the beginning of 2015. Pinning down exactly how many people in Colorado are uninsured is difficult. But an October 2013 survey by the Colorado Health Institute estimated about 640,000 working age Coloradans were without health insurance. That’s about 19.6 percent of the population. However, not all are subject to penalties due to various exemptions under the ACA, and one economist estimated that 78 percent of those From our business to yours, we wish you who remained uninsured after the ACA rollout in Colorado would be able to avoid the penalties. the best of the Holiday Season & joy for the coming New Year! she said her organization is hoping to have some better estimates in about a month. As for the state’s health exchange, Connect for Health Colorado, that organization reported 24,800 health-plan enrollments through the first month of open enrollment, which began Nov. 15. That’s compared to 12,700 health-plan enrollments through Your Perfect Financial Fit the first month last year. Of the 24,800 people who signed up, one third are customers new to the exchange. The remaining two thirds have re-enrolled for coverage for next year.

ANBbank.com Member FDIC

1360 Walnut St., Boulder 2108 Milestone Dr., Ft. Collins 303-394-5100 970-282-2400

BizWest | www.bizwest.com Dec. 26,2014 - Jan. 8, 2015 | 23 May 2-15

Top stories online: n 10 things Boulder Private railway can learn from Greeley n OtterBox tops BizWest’s Mercury wins federal grant 100 list n Fort Collins council BY STEVE LYNN THE LISTS AEROSPACE COMPANIES | BIOSCIENCE COMPANIES | GIS COMPANIES | INTERNET SERVICE PROVIDERS | MOBILE-APP DEVELOPERS to the Colorado Department of BLUEPRINTS Construction Directory featuring approves Foothills Green Building Guide. Inside HEALTH Insurance exchange seeks new funds to cover operations. 3 Transportation, which aided the TECHNOLOGY amendment May is the month for startup weeks. 7 As hundreds of Colorado VOLUME 33 | ISSUE 8 | MAY 2-15, 2014 company in submitting its grant businesses scrambled to get loans Private railway wins federal grant application to the federal gov- battered companies late last year, The grant to rail and real estate resentative of OmniTRAX did not Great Western taps one of Colorado’s wealthiest busi- magnate Pat Broe came after Col- respond to requests for comment. n Developers to public money for nessmen received a federal grant orado’s Democratic U.S. Sens. Udall spokesman Mike Saccone to repair his privately held rail net- Mark Udall and Michael Bennet said the transportation department to help rebuild their fl ood-rav- flood repairs work. wrote letters to the Federal Rail- received the grant to partner with ernment. Other railroads such Great Western was the only railroad Administration supporting the Great Western Railway to complete BY STEVE LYNN road in Colorado to receive federal grant request. The funds were deliv- repairs. [email protected] grant money, which doesn’t have ered through CDOT. Broe is a mod- “It wasn’t an earmark, it was a present concept to be repaid, after last September’s est, although longtime contributor competitive grant,” he said. “There JOHNSTOWN – As hundreds devastating floods, according to the to Udall, among other politicians. were no politics involved.” aged companies late last year, Pat of Colorado businesses raced to get Colorado Department of Transpor- A spokesman for the Federal as BNSF and Union Pacifi c were loans to help rebuild their flood- tation. Railroad Administration and a rep- ➤ See Railway, 20 plans for Longmont Broe, one of Colorado’s wealthi- Direction ineligible because they are con- Butterball site change est businessmen, was slated to urged for sidered long-haul railroads. wider I-25

receive a nearly $1.7 million fed- BY STEVE LYNN The deluge impaired nearly [email protected] n FORT COLLINS – Local lead- Potential developer ers have redoubled their efforts to expand Interstate 25, with calls for eral grant to repair his privately the Colorado Department of Trans- 150 miles of railroad tracks and portation to consider adding lanes to the major thoroughfare starting in Fort Collins and working south. provides glimpse of JONATHAN CASTNER/FOR BIZWEST Such a move would reverse the held rail network. Schaeffer Gast and Lindsay London, both from Denver, try samples at Upslope Brewing in Boulder. transportation department’s plans to damaged bridges, leading to mil- expand the interstate from the Denver BY JOSHUA LINDENSTEIN capacity for that,” said New Belgium metropolitan area north to Fort Col- Craft brewers [email protected] chief executive Kim Jordan, not- lins. Local ofﬁcials see their advocacy Butterball project ing the increased hiring of brewers, as a way to obtain additional, badly If passed by Congress, the Small packagers and sales reps that would needed lanes in both directions from Great Western was the only push bills to BREW Act could mean more than follow. Colorado Highway 66 east of Long- lions of dollars in damage. The $1.6 million in annual excise-tax Unfortunately for Jordan and oth- mont all the way north to Fort Collins. savings for New Belgium Brewing, ers like her, passage of the Small Sandra Solin of the Northern Col- serve up new based on the Fort Collins brewery’s BREW Act probably is a few years orado Legislative Alliance, the lobby- 2013 production. off at best, even if the issue is one ing arm of the Fort Collins, Loveland railroad in Colorado to be award- tax reduction “We could buy a fair amount of ➤ See Brewers, 11 and Greeley chambers of commerce, disaster stymied crude-oil rail ➤ See I-25, 14

Serving Boulder Valley and Northern Colorado. Visit bcbr.com and ncbr.com for breaking news. CONTENTS Hospitality Briefcase ...... 24 Boulder’s St Julien may Business News Digest ...... 6 hold key to Fort Collins’ Editorial ...... 38 ed federal grant money, which hotel future ...... 3 shipments for Noble Energy Inc. For the Record ...... 27 Energy Labor Brain ...... 21 Abound cleanup snarled in Newsmaker Q&A ...... 21 delays ...... 5 On the Job ...... 26 Banking & Finance Online Poll ...... 38 Credit union health continues The Eye ...... 3 doesn’t have to be repaid, after Time Out ...... 23 to improve ...... 8 (NYSE: NBL), among the larg- devastating ﬂ oods in September est oil and natural-gas companies 2013. in Northern Colorado. It also The company approached the delayed rail shipments of Vestas transportation department for its help with submit- Wind Systems’ (OMX: VWS) wind turbine com- ting the grant to the Federal Railway Administra- ponents. tion. Great Western estimated that it had $2.4 The grant to Broe, a rail and real estate magnate million in damages at the time. Broe’s company who owns Great Western Railway of Colorado, The Broe Group owns OmniTRAX, a network came after Colorado’s Democratic U.S. Sens. Mark of railroads in North America that includes Great Udall and Michael Bennet wrote letters to the Western. Federal Railroad Administration supporting the Great Western qualiﬁ ed for the grant because of grant request. Broe is a modest, although longtime its designation as a short-haul railroad, according contributor to Udall, among other politicians.

UPDATE

The taxpayer dollars from the Federal Railroad Administration are supposed to reimburse Great Western for reconstruction of railroad track and ﬁ ve bridges in Weld and Larimer counties, said Ken Koff, senior vice president of corporate development for OmniTRAX in Denver. Great Western Railway was to contribute $434,000 in matching funds, though it has not received the federal grant yet. NEWSMAKERS

NEWSMAKERS 2014 2014 24 | Dec. 26, 2014 - Jan. 8, 2015 BizWest | www.bizwest.com Just because your server is paid for The kind of personal service you just don’t get anywhere else! At Summit Bank & Trust we believe when a community bank gets to know you, great things happen; like quick and easy loan approvals, and products and services that make banking more doesn’t mean enjoyable. Our wide variety of accounts and loans are backed by experienced, knowledgeable Private railway professionals ready to help with all of your business and personal banking needs. So come on in it isn’t costing or log on to www.summitbt.com, and get to know the bank that gets to know you. you a lot of wins federal grant money… to the Colorado Department of Wendy Reynolds Christopher Combs Steve Slaughter Kurt Sava Power to operate the server, power to cool the server, 460.4703 439.4864 460.4704 460.4702 Transportation, which aided the company in submitting its grant oor space, ongoing maintenance, downtime, loss of application to the federal gov- data, loss of productivity, obsolescence, replacements, ernment. Other railroads such migrations, the list goes on and on. These are all very as BNSF and Union Paciﬁ c were real costs of owning technology. ineligible because they are con- There is a much better way. Stephanie Miller Andy Fritz Drew Sauer sidered long-haul railroads. 460.4713 460.4733 460.4711 The deluge impaired nearly Let’s talk about Game Changing 150 miles of railroad tracks and (&RDOWRQ5G %URRPÀHOG damaged bridges, leading to mil- Solutions for Main Street! • Private cloud computing resources that reduce your costs :DVKLQJWRQ6W lions of dollars in damage. The 7KRUQWRQ disaster stymied crude-oil rail • Getting only the exact resources you need 6%ULJJV6W shipments for Noble Energy Inc. Loveland, Colorado ZZZ6XPPLW%7FRP • A level of security far greater than what you have now (ULH (NYSE: NBL), among the larg- (970) 776-3777 • The ability to work from any location [email protected] est oil and natural-gas companies EQUAL HOUSING in Northern Colorado. It also LENDER delayed rail shipments of Vestas Wind Systems’ (OMX: VWS) wind turbine components. Inductee and Alumni The grant to Broe, a rail and real estate magnate who owns Great Western Railway of Colorado, Call for Nominations Reception came after Colorado’s Democratic U.S. Sens. Mark (open only to inductees, Udall and Michael Bennet wrote letters to the alumni and sponsors) Federal Railroad Administration supporting the March 18, 2015 grant request. Broe is a modest, although longtime contributor to Udall, among other politicians. Induction Luncheon April 29, 2015 11:30-1:30 p.m. The Boulder County Business Hall of Fame The Boulder County Business Hall of Fame Plaza recognizes outstanding business leaders from is a nonprot corporation, with all proceeds Conference Center the present and past. Inductees honored have supporting the Hall of Fame and its programs. 1850 Industrial Circle, been instrumental, through business-related Every year, the Hall of Fame donates scholarships Longmont, CO 80501 e orts, in providing direction, energy and to deserving students at the University of Colorado support to the shaping of Boulder County since Leeds School of Business. In both 2012 and 2013, its inception. four scholarships totaling $10,000 were presented.

16th Annual Boulder County Business

HALL of FAME´´´´

´´´´ 17th Annual Boulder County Business HALL of FAME

Submit nominations for the

Top row: Jeff Schott, Jerry Lewis and 100 C 50 M 100 K Second row: Lou DellaCava, 2015 class at www.hallo amebiz.com Jay Elowsky, William Boettcher.

May 1 - 14, 2009 Contact Chris Wood at 303-630-1942 or SECTION B [email protected], for nomination or sponsorship information. 100 C 50 M 100 K

BizWest | www.bizwest.com Dec. 26,2014 - Jan. 8, 2015 | 25 May 16-29

Top stories online: n Investor foreclosing Banner Health, on Loveland’s Advantage Bank n Saunders takes 50% stake in Heath others sue MediCare Construction n Marijuana growers BIZWEST STAFF THE LISTS ASSISTED-LIVING CENTERS | HIGHEST-PAID EXECS | INDEPENDENT-LIVING CENTERS | PUBLIC COMPANIES | SKILLED-NURSING FACILITIES hospitals were given for imple- HEMP FARMS Region accounts for one-third of can’t use water from registered growers to date. 3A HEALTH CARE Hospice mergers on the rise. 7A mentation and a lack of guidance EXECUTIVE PAY WATCH federal projects Level 3 CEO top earner. 19A A new rule designed to reduce VOLUME 33 | ISSUE 9 | MAY 16-29, 2014 on the rule. The rule could also costs and limit charges to out- Floods lower property values, tax revenue prove quite costly for hospitals. BY MELISSA SCHAAF rado history, Larimer and Boulder Property owners in both coun- $575,000 and Larimer estimating [email protected] counties saw $420 million in prop- ties will experience lower tax bills an overall decline of $700,000 to $1 n Longmont erty value evaporate. this year as a result of last year’s million. After the waters receded last Sep- Boulder County was hardest hit, flood. County governments will a see Although both counties are expe- patients so irked the hospital tember in what would become the losing $320 million in value, while decline in tax revenues as well, with riencing a strong rebound in construc- The rule stemmed in part eliminates economic- second most expensive flood in Colo- Larimer County lost $100 million. Boulder forecasting a loss of nearly ➤ See Assess, 18A community that many institu- TECH BACKERS from pressure on CMS to reduce development positions SEE COLO. AS tions – including Banner Health, ‘SILICON VALLEY the amount paid to hospitals OF WEED’ BY STEVE LYNN which has a heavy presence in [email protected] nationwide as the nation’s debt BOULDER – Tom Bollich sees similarities between the mari- n juana business and the tech sector Galvanize plans to in which he saw extraordinary Northern Colorado – jointly success. increases and baby boomers age Bollich, co-founder of Zynga Inc. (Nasdaq: ZNGA), the San Francisco-based online gaming open location in Fort company that developed the popular franchise FarmVille, filed suit in April against the has entered Colorado’s fledging into Medicare. The CMS says it legal marijuana industry as chief executive of Surna Inc. (OTCQB: JONATHAN CASTNER/FOR BIZWEST SRNA) in Boulder. With plans to Collins Katie O’Block stands in Surna Inc.’s test grow room. The company has developed a new chiller it believes will improve yields ➤ See Surna, 4A U.S. Department of Health and from marijuana plants. also addresses a growing prob- Colorado joins quake work group Banner Health, others sue Medicare BY STEVE LYNN BY MOLLY ARMBRISTER filed suit against the U.S. Department Human Services. [email protected] Colorado officials will work with [email protected] of Health and Human Services. lem in health care with hospitals, the Interstate Oil and Gas Compact The “two midnights” rule, imposed Colorado is joining a 10-state Commission and the Groundwa- A new rule designed to reduce by the Centers for Medicare and working group examining earth- ter Protection Council, both based costs and limit charges to outpatients Medicaid Services, changes the way quakes caused by disposal of waste- in Oklahoma City, to study links has so irked the hospital community hospitals are paid by Medicare for water from hydraulic fracturing into between human-caused earthquakes that many institutions – including patients who stay only one night in a Under the “two midnights wells thousands of feet underground. Banner Health and the American due to uncertainty about pay- ➤ See Earthquake, 34A Hospital Association – have jointly ➤ See Medicare, 17A

CONTENTS Serving Boulder Valley and Northern Colorado. Visit bcbr.com and ncbr.com for breaking news. Keep it Legal Briefcase ...... 24A-26A rule” imposed by the Centers for By Dan Jones ...... 32A Business News Digest ...... 6A ments, implementing long peri- Real Estate Editorial ...... 46A By Dave Pettigrew ...... 33A For the Record ...... 37A Guest Opinion ...... 47A Sales Smarts Newsmaker Q&A ...... 23A By Bob Bolak ...... 31A On the Job ...... 27A Small Business Adviser The Eye ...... 3A Medicare and Medicaid Services, By Carl Dierschow ...... 23A Time Out ...... 28A-29A ods of observation care in which Medicare will not reimburse the patients are kept at hospitals for hospital at inpatient rates unless extended periods of time with- a patient has stayed for two con- out ever being truly admitted. secutive midnights. The patients must be classifi ed But Banner Health chief fi nancial offi cer Dennis and charged on an outpatient basis if they stay only Dahlen said the rule could mean millions of dol- one night. lars in lost revenue for hospitals. For example, if a The American Hospital Association led the fi ling patient is classifi ed as being in observation care as of the lawsuit in U.S. District Court in Washington opposed to inpatient, the hospital makes about 80 D.C. to stop the rule because of the short window percent less for the same treatments.

UPDATE

W ith full enforcement of the rule partially delayed Kevin Brady, chairman of the Ways and Means Sub- to March 31, 2015, the lawsuit in Washington contin- committee on Health, unveiled a discussion draft ues to make its way through the court system. of the Hospitals Improvements for Payment Act “It’s still in process and we’re going to see this of 2014. The bill is part of the committee’s efforts process through,” Banner Health spokesman Paul aimed at Medicare reform, and would repeal the Matthews said. two-midnights rule while laying out new solutions In November, meanwhile, Texas Republican Rep. for short inpatient stays.

NEWSMAKERS

NEWSMAKERS 2014 2014 26 | Dec. 26, 2014 - Jan. 8, 2015 BizWest | www.bizwest.com A Subscription You Can Sink Your Teeth Into SUBSCRIBE TODAY Want to purchase Receive (3) $10 GIFT CARDS to Hot Corner Concepts Restaurants Banner Health, with a new paid 2-year subscription to BizWest for only $89.97* minerals and other others sue MediCare oil/gas interests. hospitals were given for imple- mentation and a lack of guidance on the rule. The rule could also Subscription each year includes 26 Bi-weekly issues of BizWest, prove quite costly for hospitals. Book of Lists, special editions and more… The rule stemmed in part from pressure on CMS to reduce Send details to: Ready to bite? the amount paid to hospitals nationwide as the nation’s debt Call 970-232-3143 or 303-630-1953 today! increases and baby boomers age into Medicare. The CMS says it P.O. Box 13557, Denver, also addresses a growing problem in health care with hospitals, due to uncertainty about payments, implementing long peri- CO 80201 ods of observation care in which patients are kept at hospitals for *Offer valid for new subscribers purchasing a 2 year subscription only. Quantities limited. Payment must be received before gift extended periods of time with- card is mailed. Terms of use are the sole responsibility of Hot Corner Concepts. No cash redemption. out ever being truly admitted. But Banner Health chief fi nancial offi cer Dennis Dahlen said the rule could mean millions of dollars in lost revenue for hospitals. For example, if a patient is classifi ed as being in observation care as opposed to inpatient, the hospital makes about 80 percent less for the same treatments.

BizWest | www.bizwest.com Dec. 26,2014 - Jan. 8, 2015 | 27 May 30-June 12

Top stories online: n Xcel sues city of Life science VC Boulder, challenges municipal utility n Koelbel buys land for project in North deals hit post- Boulder n Group buys Windsor tract for development recession high n Average rents spike 17% in Fort Collins, Boulder BIZWEST STAFF THE LISTS AUTO DEALERS | BREWERIES AND BREWPUBS | SUBMIT BUSINESS INFORMATION FOR FUTURE BIZWEST LISTS AT [email protected] Nationwide, biotechnol- BIZWEST STAFF ENERGY STOCKS Oil companies energized: Stocks up across the board, 3A EMAIL Bipartisan initiative to boost ogy companies accounted for privacy protections, 3A TRANSPORTATION n MAX early rider numbers Toll Brothers high, 7A First-quarter venture-capital THE BUSINESS JOURNAL OF THE BOULDER VALLEY AND NORTHERN COLORADO VOLUME 33 | ISSUE 10 | MAY 30-JUNE 12, 2014 $1.1 billion through 112 deals, A study produced by Seattle- purchases 166 acres deals for life sciences companies Organic farms declining, even as sales soar while medical device companies based health-care analytics com- BY STEVE LYNN and the Boulder Valley since 2007, and Boulder counties, according to business. USDA surveys farmers and [email protected] driven in part by rising water prices, censuses taken in 2007 and 2012 by ranchers, regardless of size or type of in south Fort Collins according to the 2012 Census of Agri- the U.S. Department of Agriculture. operation, for the census every five WELLINGTON – The number of culture. First conducted in 1840, the agri- years. were the strongest they’d been certified organic farms has declined Organic product sales, however, cultural census is the leading source Weld County had 27 certified attracted $588 million in 61 pany Milliman Inc. last spring dramatically in Northern Colorado have risen sharply in Weld, Larimer of facts and figures about U.S. agri- ➤ See Organic, 12A since the Great Recession started NREL, banks deals. showed that employees’ health craft plans for in 2007, with biotechnology and solar lending Greg Vlahos, a life-sciences insurance costs rose faster than BY MOLLY ARMBRISTER [email protected]

Bankers and energy experts, work- medical device companies raking ing in conjunction with the Golden- partner at PwC, said the bump those of their employers as the based National Renewable Ener- gy Laboratory, have formed a new group to in $1.4 billion nationwide. help streamline early in the year was a good sign employers shifted more of the ﬁnancing of solar projects. JONATHAN CASTNER/FOR BIZWEST Spurred by Colorado State University’s Greg Miknis, associate director of the rising popu- Thomas The ﬁ gure marked a 15 per- the Colorado Center for Drug Discovery (C2D2), holds one of the larity of solar for a couple of reasons. For one, burden to combat increasing pre- C2D2 IN DISCOVERIES powders a joint research group believes holds promise in treating – the market traumatic brain injuries among combat veterans, football players and jumped more than 40 percent from others. ➤ See Discoveries, 14A 2012 to 2013 – the group formed earlier this month to begin developing standardized loan documents and cent increase over the same peri- underwriting criteria for residential the second and fourth quarters miums. Life science VC deals hit post-recession high and commercial projects, according to NREL. More than 50 banks and BY DOUG STORUM $7.3 million. There were 173 deals worth $1.7 industry organizations are part of [email protected] The value of life-sciences sec- billion during the quarter, compared the group, including Denver-based tor venture-capital deals across the with $1.4 billion and the same num- Vectra Bank. od a year earlier. BOULDER – First-quarter ven- nation in that period increased 15 per- ber of deals during the same period “There are specific legal issues, historically have produced the The Milliman Medical Index ture-capital deals backing biotechnol- cent compared with the same period a in 2013. underwriting issues, regulatory issues ogy and medical-device companies year ago, according to “Biotech Deals Biotechnology companies attract- and a lack of available historical data were the strongest for life-science Rising,” a report released earlier this ed $1.1 billion through 112 deals, and on this sector, which provides chal- investments since the Great Reces- month by PricewaterhouseCoopers medical-device companies attracted lenges unique to this industry,” said The numbers came from sion started in late 2007, with two LLP and the National Venture Capi- $588 million in 61 deals. Shaw Thomas, senior vice president largest investments in life sci- showed that employees’ health Boulder Valley companies netting tal Association. ➤ See Biotech, 16A ➤ See Solar, 2A

CONTENTS Health care Briefcase ...... 21A a report released by Pricewa- Terminally ill have new access to experimental drugs ... 5A Business News Digest ...... 6A ences companies. For another, insurance costs rose 6 percent in Manufacturing Editorial ...... 30A Colorado seeking federal advanced For the Record ...... 24A manufacturing funds...... 4A Nonprofit Network...... 21A Newsmaker Q&A ...... 17A Banking On the Job ...... 20A Flatirons Bank rated ‘satisfactory’ for The Eye ...... 3A low-income loan activity ...... 13A terhouseCoopers LLP and the Time Out ...... 19A he said investors generally shy 2014 compared to 5.4 percent BizWest is an independent, locally owned business journal. National Venture Capital Asso- away from sectors with longer for employers. The study also ciation. investment durations and higher showed that it costs more than The $1.4 billion total came capital requirements like biotech twice as much to insure the aver- on 173 deals. Broomfi eld-based Accera Inc., which and medical device companies see. age family in 2014 compared to 10 years earlier, a is developing therapeutic drugs for Alzheimer’s “We’re continuing to see interest in these busi- fi gure that rose from $11,192 to $23,215. and Parkinson’s diseases, led the way among local nesses, especially in the early stages of their develop- According to the study, 2014 marked the ninth companies with $5 million in venture capital, while ment,” Vlahos said at the time. “Venture capital’s year in a row in which families’ health insurance Boulder-based Mosaic Biosciences Inc. pulled in ability to monetize their earlier investments and costs have risen by more than $1,100. $2.3 million for its work to create synthetic materi- source early-stage investments is a positive sign for The study came as Colorado and other states als that support tissue regeneration. ongoing investments in life sciences.”

UPDATE UPDATE

Right on cue, second-quarter venture-capital Third-quarter life-science investment, however, The 17-member Colorado Commission on investment in life sciences companies was the high- cooled off despite still enjoying a year over year Affordable Health Care – a collection of doc- est it’s been since the PwC series of reports began in increase. PwC’s third-quarter report showed that tors, insurance industry representatives, hospital 1995, with both biotech and medical devices seeing there were 188 deals totaling $1.6 billion, compared administrators and health-care policy experts – was double-digit growth over the previous year. to $1.5 billion on 192 deals a year earlier. ofﬁ cially commissioned in September and has met VentureNEWSMAKERS capitalists funded 195 deals in the sec- But Vlahos said he believes the overall environ- once per month since. ond quarter worth $2.5 billion, compared to $2 ment for such deals remains strong, noting that 18 The ultimate goal is to analyze costs and make billion on 197 deals in the second quarter of 2013. out of 23 initial public offerings in the third quarter policy recommendations to the governor and law-

The averageNEWSMAKERS deal size cranked up as well, rising 26 were for life sciences companies. makers that could help lower those costs in Colorado. percent year over year to $12.8 million. Bill Lindsay, president of Lockton Beneﬁ t Group 2014 2014 28 | Dec. 26, 2014 - Jan. 8, 2015 BizWest | www.bizwest.com June 13-26

Top stories online:

Employers shifting n Developers submit plans for armory property

n State stops oil health-care costs and gas wastewater well activity after earthquakes

n Super-tall climbing to employees gym planned

n Colorado Medicaid enrollees eligible for BIZWEST STAFF THE LISTS SUBMIT BUSINESS INFORMATION FOR FUTURE BIZWEST LISTS AT [email protected] launched investigations into why RIVER DISTRICT New historic design guidelines on tap, 3 dental beneﬁ ts AGRIBUSINESS health-care costs continue to Pilgrim’s Pride to keep shopping despite failed Hillshire bid, 5 HEALTH CARE Federal partnership helps A study produced by Seattle- hospitals cut costs, 9 increase so dramatically. Colo- THE BUSINESS JOURNAL OF THE BOULDER VALLEY AND NORTHERN COLORADO VOLUME 33 | ISSUE 11 | JUNE 13-26, 2014 n Activists concerned based health-care analytics com- Employers shifting health-care costs to employees rado lawmakers earlier this year

BY MOLLY ARMBRISTER in an attempt to combat ever-increas- rose by 5.4 percent. The employer pays $13,250 of that [email protected] ing premiums. At the same time, it costs more cost, and the employee, through pay- about downtown A new study called the Milliman than twice as much to insure a family roll deductions, co-pays and deduct- pany Milliman Inc. last spring Health-insurance costs rose for Medical Index, produced by Seattle- in 2014 as it did in 2004, according to ibles, pays $9,695, an increase of approved creation of the Colo- both employers and their employees based health-care analytics company the study. Then, it cost an average of $1,185 from 2013. in 2014, according to a new analysis, Milliman Inc., shows that employees’ $11,192 to insure one employee and “Even if we are bending the cost but costs rose faster for employees as health insurance costs rose by 6 per- his or her dependents, compared with curve, there are few other household showed that employees’ health employers shifted more of the burden cent in 2014, while employers’ costs $23,215 in 2014. ➤ See Rate, 24 rado Commission on Affordable Greeley wells Loveland vote insurance costs rose faster than pits frack Health Care. attackers vs. those of their employers as the backers The reason for the shift from

BY STEVE LYNN [email protected]

LOVELAND – Sharon Carlisle is employers shifted more of the deep in campaign mode in a garage employer to employee, accord- in downtown Loveland, which she hopes will become the latest Front Range city to approve a ban on the oil and natural-gas drilling technique burden to combat increasing pre- known as fracking. ing to Scott Rankin of Greeley- Literature contending that hydraulic fracturing, or fracking, poses risks JONATHAN CASTNER/FOR BIZWEST to health is stacked on a card table Collective shines on, using community approach to solar. ➤ See Energy & Utilities, 11 in the back of the garage. Large signs CLEAN ENERGY leaning against the wall tout a mora- miums. torium. based insurance brokerage Lead- Carlisle, an artist who has lived CU technology spinoffs survive at higher rates in Loveland for more than 20 years, founded anti-fracking activist group BY JOSHUA LINDENSTEIN All but 27 of the 132 companies Impressive as the numbers are on Protect Our Loveland last year to [email protected] formed around CU technology since their face, a closer look shows that – of campaign for a moratorium on oil The Milliman Medical Index the school’s 1994 fiscal year are still the 83 companies old enough – 68 and gas development in the city. ing Edge Financial Group, is that BOULDER – Startups spun out operating or have been acquired by survived at least five years. That 82 per- Carlisle said around 200 people have of University of Colorado technology companies still operating. That’s not cent five-year survival rate holds true volunteered to campaign for the have enjoyed a much higher survival counting nine more that have been for companies formed from fiscal year moratorium, which voters will con- rate than the average small business formed in fiscal year 2014, which 1996 to 2006, the period analyzed by sider in a municipal election June 24. showed that employees’ health nationally or statewide, according runs through June 30. The latest CU the Colorado Innovation Network for Ballots were mailed to households as premiums go up, employers to figures released recently by CU’s figures cover only companies formed its 2013 Innovation Report. That study earlier this month. technology transfer office. through fiscal year 2013. ➤ See Tech, 7 ➤ See Loveland, 2

CONTENTS insurance costs rose 6 percent in Health Care Briefcase ...... 20 can only afford so much before Small companies continue to shun Business News Digest ...... 10 insurance exchange ...... 6 Editorial ...... 34 Sales Smarts For the Record ...... 23 By Bob Bolak ...... 14 Nonprofit Network...... 21 Newsmaker Q&A ...... 17 Small Business Adviser On the Job ...... 19 By Carl Dierschow ...... 17 2014 compared to 5.4 percent The Eye ...... 3 they’re forced to stop providing Time Out ...... 22 for employers. The study also BizWest is an independent, locally owned business journal. benefi ts altogether. showed that it costs more than The only solution to slowing twice as much to insure the aver- premium growth, Rankin said, age family in 2014 compared to 10 years earlier, a is to reduce health-care costs. But a U.S. Bureau of fi gure that rose from $11,192 to $23,215. Economic Analysis showed that health-care spend- According to the study, 2014 marked the ninth ing rose in the fi rst quarter of 2014 at its fastest year in a row in which families’ health insurance pace since 1980. Some of that can be attributed to costs have risen by more than $1,100. expanded access to care thanks to the ACA, but The study came as Colorado and other states it’s also due to higher costs at the provider’s offi ce.

UPDATE

The 17-member Colorado Commission on and interim chair of the CCAHC, said most of the Affordable Health Care – a collection of doc- work so far has been laying a foundation for the work tors, insurance industry representatives, hospital the commission will do between now and 2017. administrators and health-care policy experts – was That includes putting together bylaws and issuing offi cially commissioned in September and has met requests for proposal for staff support. once per month since. Lindsay expects election of permanent offi cers The ultimate goal is to analyze costs and make and the hiring of staff to be completed by mid- policy recommendations to the governor and law- January, when the real work will begin. The com- makers that could help lower those costs in Colorado. mission’s fi rst report is due to the legislature in Bill Lindsay, president of Lockton Benefi t Group November of 2015.

BizWest | www.bizwest.com Dec. 26, 2014 - Jan. 8, 2015 | 29 June 27-July 10

Top stories online: Gessler rule stifl es n Fabled Caribou Ranch sells for $25 million n Foothills Mall B corp signups developer lets bond deadline pass n Restaurant closes BY STEVE LYNN THE LISTS COMMERCIAL REAL ESTATE BROKERAGES | COMMERCIAL DEVELOPERS | RESIDENTIAL BROKERAGES | SBA LENDERS wages to employees or invest TECHNOLOGY Town hall meetings take to Twitter, 3A due to hepatitis A DISCOVERIES Growers experiment with climate-friendly corn, 18A in environmental programs, for SMALL BUSINESS GUIDE Tools for keeping your business threat on track, INSIDE Many Colorado companies THE BUSINESS JOURNAL OF THE BOULDER VALLEY AND NORTHERN COLORADO VOLUME 33 | ISSUE 12 | JUNE 27-JULY 10, 2014 example, instead of devoting all failed to register as public ben- Gessler rule stifles B corp signups their cash to the bottom line. Public benefit law the socially responsible designation, effect April 1. however, they can do such things as n Tynan, church because of a rule from Secretary of Proponents say they expected far pay higher wages to employees or raises concerns at State Scott Gessler’s office that could more Colorado companies to adopt the invest in environmental programs, for efi t corporations, despite a new require them to disclose their financials. designation, which safeguards busi- example, instead of devoting all their Under a new law, businesses Colo. Sec. of State Just 55 companies have registered nesses from shareholder lawsuits when cash to the bottom line. BY STEVE LYNN as public benefit corporations in Colo- they engage in socially responsible Under a new law, businesses now [email protected] rado, according to Gessler’s office. By activities that don’t necessarily help can register with the Secretary of propose new contrast, 250 businesses registered in maximize profits. In the past, busi- State’s Office to attain recognition as Many Colorado companies are fail- the first four months after a similar nesses have been legally obligated to a public benefit corporation. Gessler’s law providing for the socially ing to register as public benefit corpora- law was passed in Nevada. Colorado’s maximize shareholder returns and office, however, has said it may require can register with the Secre- tions, despite a new law providing for public benefit corporations law took profits. Under this new classification, ➤ See B corp, 4A construction responsible designation, because Electric-car tary of State’s Offi ce to attain backers push Secretary of State Scott Gessler workplace recognition as a public benefi t charging n More development BY YUCHEN WU offi ce has said it would require [email protected] corporation. Gessler’s office, Clean-running electric vehicles would be used more if employees could utilize charging stations at the planned in Transit office, an idea regional transportation planners would like to see catch on. those companies to disclose their Lisa Rephlo, executive director of however, has said it may require Colorado Clean Energy Cluster in JONATHAN CASTNER/FOR BIZWEST Fort Collins, came across the work- Nick Chase, head brewer at Pateros Creek in Fort Collins, is helping grow Colorado’s craft brewing industry. place idea in May at the 2014 Interna- Village Area tional Cleantech Network Summit in fi nancials. Copenhagen, Denmark. The cluster companies that register to also Workers per barrel slide as brewers grow is a nonprofit organization dedicated to growing clean energy jobs in Colo- BY JOSHUA LINDENSTEIN Fort Collins business. ued growth and efficiency is tied rado. [email protected] Tops on the list these days are largely to bigger equipment and the Most car use occurs when peo- another fermenter to help increase automation of processes. ple drive to and from work, Rephlo Earlier this year, just 55 com- Pateros Creek Brewing Co.’s own- production and large serving tanks Making beer, after all, isn’t all said, so anything that can be done to fi le under the state’s Charitable ers have a wish list stored on Google so the taproom can quit pouring out that different than any other manu- make charging cars easier is likely to Drive. It’s where they keep track of of kegs. As with the owners of many facturing process. Increasing scale increase use. and prioritize all of the equipment, growing breweries in the region, increases production per worker. To that end, Rephlo and others, employees and other new wrinkles the father-son duo of Bob and Steve including Drive Electric Northern they want to someday add to the Jones know that the path to contin- ➤ See Beer, 25 Colorado and the city of Fort Col- panies had registered as public ➤ See Electric, 2A Solicitations Act, which forces

CONTENTS Briefcase ...... 26A Real Estate Business News Digest ...... 6A benefi t corporations in Colora- Major commercial projects reshape Fort Collins ...... 7A Editorial ...... 30A them to disclose their revenue For the Record ...... 20A Real Estate Nonprofit Network...... 27A Construction quest maps regional projects ...... 8A Newsmaker Q&A ...... 23A Keep It Legal On the Job ...... 21A Know your boundaries: surveys worth the cost ...... 23A The Eye ...... 3A do, according to Gessler’s offi ce. Time Out ...... 27A and charitable contributions. BizWest is an independent, locally owned business journal. By contrast, 250 businesses reg- No other states require com- istered in the fi rst four months panies to register as a charity in after a similar law was passed in order to be designated as a public Nevada. Colorado’s public benefi t corporations law benefi t corporation. took effect April 1. Gessler’s rule has dissuaded larger, private com- The designation, which safeguards businesses panies from registering because they are wary of from shareholder lawsuits when they engage in sharing their fi nancial performance, said Erik Tro- socially responsible activities that don’t necessarily jian, director of policy for Wayne, Pa.,-based B Lab. help maximize profi ts. In the past, businesses have The nonprofi t certifi es what it calls “B Corpora- been legally obligated to maximize shareholder tions,” or companies that meet its standards of social returns and profi ts. Under this new classifi cation, and environmental performance, accountability and however, they can do such things as pay higher transparency.

UPDATE

Gessler decided not to run for a second term as secretary of state, and that’s probably just ﬁ ne with B corps supporters, who likely will look to incoming Republican Wayne Williams for a more favorable interpretation of the B corps law. More than two- dozen states as well as the District of Columbia have authorized B corps.

NEWSMAKERS

NEWSMAKERS 2014 2014 30 | Dec. 26, 2014 - Jan. 8, 2015 BizWest | www.bizwest.com July 11-24

Top stories JBS ﬁ ne highlights online: n District approves historic water-rate increases meatpacking dangers n Construction ﬁ rm shutdown costs local jobs

BY STEVE LYNN THE LISTS BANKS BY DEPOSITS | OUTDOOR EQUIPMENT MANUFACTURERS measures, JBS employee Ralph ARTS Tax District proposal pulled, 3 ENERGY n Boulder fi les to Colo. delegation pushes liquefied natual gas, 3 E. Horner, 54, of Wellington BANKING Regional banks pass key community lending test, 11 condemn Xcel’s JBS USA agreed to pay THE BUSINESS JOURNAL OF THE BOULDER VALLEY AND NORTHERN COLORADO VOLUME 33 | ISSUE 13 | JULY 11-24, 2014 died in June after becoming JBS fine assets $100,000 in fi nes to settle safe- highlights trapped in a conveyor. Horner meatpacking ty and health violations hand- dangers was pronounced dead at the Safety improving, n JBS fi ne highlights ed down by the Occupational risks to industry’s scene after he was found by workers remain

BY STEVE LYNN Health and Safety Administra- [email protected] employees. The Weld County meatpacking dangers GREELEY – JBS USA agreed to pay $100,000 in fines to settle safety and health violations hand- ed down by the Occupational Health and Safety Administration tion in May, according to federal just two-and-a-half weeks before Coroner’s Offi ce ruled his death the death of one of its employees JONATHAN CASTNER/FOR BIZWEST Fine spray from an automated farm sprinkler system in Weld County catches the sunlight on a cornfield east of LaSalle, off in its giant meat processing plant, Weld County Road 26½. Prices on the water used to irrigate these fields are rising dramatically as the region’s largest supplier according to federal documents. of agricultural water, the Northern Colorado Water Conservancy District, moves to approve increases from roughly $10 per unit The federal agency had accused today to $80 per unit by 2023. JBS USA in Greeley of 20 health documents. and safety violations at the com- an accident. pany’s beef processing plant more than a year ago. JBS, which did not admit to the allegations, also Northern Colorado faces must take steps to make its workplace safer as part of the settle- The federal agency had ment. The safety violations and The settlement in May followed an inspection by OSHA historic water rate hike in December 2012 that revealed potential for conditions that accused JBS USA in Greeley of Higher prices history, reflects the ever-rising price Established in 1937, Northern could lead to amputations and fall Horner’s subsequent death of the resource on the Front Range Water operates the federal Colora- hazards in elevated work areas, may also spur and the agency’s struggle to maintain do-Big Thompson Project, which among others. its sprawling, cash-strapped system. diverts water from the Colorado Despite the settlement and the conservation Under current projections, rates River Basin on the Western Slope to improved safety measures, JBS for Colorado-Big Thompson Proj- the South Platte River Basin through employee Ralph E. Horner, 54, 20 health and safety violations BY STEVE LYNN ect water could rise from $28 to a system of reservoirs and tunnels. of Wellington died June 10 after underscore the dangers of [email protected] more than $100 per unit for munici- The agency, the largest wholesale becoming trapped in a conveyor. pal users and from $10 to $80 per water provider in Colorado, deliv- Horner was pronounced dead at BERTHOUD – Northern Water’s unit for agricultural users by 2023, ers an average of 215,000 acre feet the scene after he was found by proposal to dramatically increase according to documents from the of water annually for municipal, employees. water rates, the largest dollar increase Northern Colorado Water Conser- agricultural and industrial uses in Authorities have ruled out foul at the company’s beef process- in the public water district’s 77-year vancy District. ➤ See Water, 6 ➤ See JBS, 2 meatpacking, an industry that

CONTENTS Briefcase ...... 27 Banking Business News Digest ...... 8 ing plant. JBS, which did not Commercial lending strong, growing ...... 9 Editorial ...... 38 involves work with machin- For the Record ...... 28 Careers Cultivating your presence key to landing jobs ...... 23 Nonproﬁt Network...... 29 On the Job ...... 25 Marketing The Eye ...... 3 Spreading content across platforms now the norm ...... 26 admit to the allegations, also Time Out ...... 29 ery that processes heavy cattle BizWest is an independent, locally owned business journal. must take steps to make its carcasses. The last employee workplace safer as part of the death at the JBS plant in Gree- settlement. ley occurred in 2008 when a The settlement followed an inspection by worker was hit by a truck outside the plant. OSHA in December 2012 that revealed potential Another worker employed by Pilgrim’s Pride for conditions that could lead to amputations and Corp. (Nasdaq: PPC), in which JBS USA owns a fall hazards in elevated work areas, among others. controlling interest, died when he was struck by The company employs more than 4,200 people a chunk of ice while working at a Pilgrim’s Pride in Greeley, where its beef plant’s daily processing chicken processing plant in Mount Pleasant, Texas, capacity totals 5,400 cattle. in October. Authorities ruled the death of Pablo Despite the settlement and the improved safety Lopez Romero, 55, an accident.

UPDATE

Pilgrim’s Pride also faces $170,000 in ﬁ nes for The meatpacking industry remains more danger- alleged safety violations at its De Queen, Ark., ous than the average across all industries. plant. The company was accused in July 2013 of In 2012, nonfatal injuries in meatpacking totaled exposing workers to hazardous chemicals, among 5.8 cases per 100 workers, according to the U.S. other allegations. Pilgrim’s Pride has disputed the Bureau of Labor Statistics. In poultry processing, allegations. workers had 4.9 injuries per 100 workers. Media reports indicate that two other workers The average across private industry, however, have died this year at facilities operated by JBS and totaled 3.4 cases per 100 workers. Pilgrim’s Pride in North America.

BizWest | www.bizwest.com Dec. 26, 2014 - Jan. 8, 2015 | 31 July 25-Aug. 7

Top stories online: n Amgen shutting Oil and gas fi rms dig Area voice strong down Boulder, Longmont sites n Hickenlooper to make statement on deep for new water for net neutrality oil, gas local control n Two Nine North BY STEVE LYNN THE LISTS CHAMBERS OF COMMERCE | SUBMIT BUSINESS INFORMATION FOR FUTURE BIZWEST LISTS AT [email protected] tions for non-tributary water MALL PROJECTS Dogged by reluctant retailers, 3 apartments in Boulder CANNABIS RESEARCH UNC studying cancer-fighting potential of marijuana, 4 use specifically for oil and gas DISCOVERIES International climate change sell for $93.5M research center at CU/CSU, 9 Applications to the state of THE BUSINESS JOURNAL OF THE BOULDER VALLEY AND NORTHERN COLORADO VOLUME 33 | ISSUE 14 | JULY 25-AUG. 7, 2014 before 2011, said Kevin Rein, Colorado to use deep under- Oil and gas firms dig deputy state engineer in the state n Judge quashes Fort deep for new water ground aquifers for oil and gas in Lake Loveland. Division of Water Resources. Applications to tap An acre-foot equals 326,000 gal- groundwater soar lons, or enough to supply the needs of 2.5 households in one year. By con- Collins’ fracking ban BY STEVE LYNN trast, the state agency saw no appli- development in Northern Colo- [email protected] cations for non-tributary water use The present oil boom began in specifically for oil and gas before 2011, Applications to the state of Colora- do to use deep underground aquifers See related story for oil and gas development in North- Are the recent Greeley quakes ern Colorado have surged, reflect- tied to to disposal of fracking wastewater? rado surged, refl ecting the new ing the new lengths that oil and gas Page 3 2009 after EOG Resources Inc. companies have gone to obtain the scarce resource in the South Platte said Kevin Rein, deputy state engi- River Basin. neer in the state Division of Water More than a dozen distinct parcels Resources. The present oil boom of land have applied to withdraw began in 2009 after EOG Resources lengths that oil and gas companies a total of 35,600 acre feet of non- Inc. (NYSE: EOG) drilled the Jake (NYSE: EOG) drilled the Jake tributary groundwater for potential well. Last year, oil production set a use in oil and gas development since record at more than 64 million bar- 2011, according to the state Division rels, 80 percent of which came from of Water Resources. The total nearly Weld County. have gone to obtain the scarce triples the 12,700-acre-foot capacity ➤ See Water, 11 well. Last year, oil production set resource in the South Platte River Loveland kickstarts downtown a record at more than 64 million plan with 15-parcel purchase

BY DOUG STORUM a major new office space on the site. WHAT’S [email protected] The Loveland City Council earlier Basin. this month approved use of $6.25 barrels, 80 percent of which came LOVELAND – The city of Love- million to buy the land, now occupied NEXT land is buying 15 parcels of land in by old houses, duplexes and small downtown Loveland, a key step in businesses. Some of the contracts FOR revitalizing a two-block area that has include allowances for businesses to More than a dozen distinct been on the city’s development wish relocate. The city is using $2.25 mil- from Weld County. list for the past four years. lion from its general fund and $4 mil- I-25? But questions remain about how lion from its council capital reserves Truck traffic may be the project will be financed, whether to purchase the properties. blessing in disguise. the city will need to condemn proper- The South Catalyst Project bound- ➤ See story, 7 ties if owners don’t agree to sell, and ary runs from First to just north of parcels of land have applied to what role Larimer County will play Third streets south to north, and Unlike rivers and streams JONATHAN CASTNER/FOR BIZWEST in the deal. The county is building ➤ See Loveland, 2

CONTENTS Briefcase ...... 19 withdraw a total of 35,600 acre Job creation Business News Digest ...... 8 where people own water rights Colorado ranks near the top ...... 15 Editorial ...... 30 Sales smarts For the Record ...... 23 By Bob Bolak ...... 15 Nonprofit Network...... 19 Real estate On the Job ...... 17 feet of non-tributary groundwa- By Dave Pettigrew ...... 16 The Eye ...... 3 in various places, non-tributary Time Out ...... 18 ter for potential use in oil and gas BizWest is an independent, locally owned business journal. water can be diverted by prop- development since 2011, accord- erty owners if they can show ing to the state Division of Water it would not affect stream and Resources. The total nearly triples the 12,700-acre- river fl ows. Applicants must demonstrate through foot capacity in Lake Loveland. scientifi c evidence and modeling that the aquifers An acre-foot equals 326,000 gallons, or enough to are in fact non-tributary before they can receive state supply the needs of 2.5 households in one year. Non- permits to use the water. tributary means groundwater that is not believed to Noble Energy Inc. (NYSE: NBL), among the top signifi cantly connect to tributary water that feeds oil and natural-gas producers in the region, alone has surface water systems such as rivers. The ancient applied for nearly 4,700 acre feet on the Wells and water typically is located hundreds of feet below the Ball ranches in Weld County. The company last year surface and derived from glacial melt or prehistoric said about 80 percent of its water came from wells seawater. Drilling wells to reach it can be costly. and ponds, 18 percent came from cities and 2 percent By contrast, the state agency saw no applica- is recycled.

UPDATE

Rein, the deputy state engineer, said that the “For those that have been approved, although they Division of Water Resources has not approved any are required to keep records of their pumping, at this additional non-tributary water use for oil and gas time we are not requiring submittal of those records,” development since BizWest ﬁ rst reported the story he said. “So I can’t answer as to the amount, if any, in July. that is being used or is involved in a sale.” Meanwhile, it’s unclear how much of the water A Noble Energy spokesman did not respond to is beingNEWSMAKERS pumped or sold for oil and gas development requests for comment on the company’s use of non- for applications that the state has approved. tributary water.

NEWSMAKERS 2014 2014 32 | Dec. 26, 2014 - Jan. 8, 2015 BizWest | www.bizwest.com Aug. 8-21

Top stories online: Oil and gas ﬁ rms dig Area voice strong n CSU athletic director Jack Graham ﬁ red

n Google Boulder deep for new water for net neutrality eyes new ofﬁ ces at Pearl Place

n 30 local companies BY JOSH LINDENSTEIN THE LISTS CONTINUING-EDUCATION | PRIVATE SCHOOLS | UTILITIES | OIL-PRODUCTION | ENERGY-EVALUATION | NATURAL-GAS PRODUCTION And it hasn’t just been resi- ECONOMIC PROFILE Demographics, community/ industry profiles, and more, INSIDE make Inc. 5000 list of CONSTRUCTION CSU-city stadium IGA put on hold dents speaking out on the issue until fall, 2A ENERGY Boulder, Xcel utility battle The fierce debate over net reaches critical mass, 15A locally. Broomfi eld-based Level fastest growing THE BUSINESS JOURNAL OF THE BOULDER VALLEY AND NORTHERN COLORADO VOLUME 33 | ISSUE 15 | AUG. 8-21, 2014 neutrality hasn’t occurred with- Area voice strong for net neutrality 3 Communications Inc., one Tech cities hammer public comments to the Federal Com- until you consider the ratio is one ments favor rules that would prevent n munication Commission register- comment for every 286 people nation- ISPs from charging content providers Bidder for FCC; comment rate ing at a rate 48 percent higher than ally. In Denver, it’s one in 235 and in for so-called fast lanes to ensure their out plenty of input from Colo- the national average, according to an Colorado Springs it’s one in 423. In traffic arrives to consumers efficiently. of the nation’s largest Internet exceeds U.S. average analysis by BizWest. the tech mecca of San Francisco, it’s It’s not just individuals who are From the six largest local cities – one in 132. raising their voices locally. Broom- BY JOSHUA LINDENSTEIN Fort Collins, Boulder, Greeley, Long- Boulder’s ratio is one comment field-based Level 3 Communica- [email protected] mont, Loveland and Broomfield – one per 82 residents, with Fort Collins tions Inc. (NYSE: LVLT), one of the Advantage Bank suing radans. comment has been filed with the (1/205) and Longmont (1/207) also nation’s largest Internet backbone backbone providers, has long The Boulder Valley and Northern FCC for every 192 residents. That’s weighing in heavily. providers, has long been a major force Colorado are making their voices roughly one half of 1 percent of the Good luck finding someone who in the debate in Washington as well. heard in no uncertain terms in the population. is on the side of the Internet service Perhaps it’s not surprising given A BizWest report in August fierce debate over net neutrality, with That might not seem significant providers. Almost all of the com- ➤ See Net, 4A been a major force in the debate creditor Computer revealed that one comment has studies attract in Washington. few women BY JOSHUA LINDENSTEIN been fi led with the Federal Com- [email protected] The outspokenness on the Success in luring more female students into computer science programs has proved elusive, with Colo- rado’s largest research universities munications Commission on the enrolling far fewer women than men. issue locally is perhaps driven by At the University of Colorado Boulder, the number of female students in those programs has remained flat, at around 14 percent for more In the rough than a decade. At Colorado State issue from residents in Fort Col- University in Fort Collins, the rate the thriving startup economies has stalled out at about 8 percent. JONATHAN CASTNER/FOR BIZWEST If left unchecked, experts say the Golfer Ken Brunner of Windsor squeezes in some course time at Pelican Lakes Golf Course. With the exception of 2012, golf lack of diversity among programming course rounds have been declining in the Boulder Valley and Northern Colorado. professionals will continue to hinder industry’s ability to maximize new lins, Boulder, Greeley, Long- BY YUCHEN WU economic recovery has put more technology because the talent pool’s in Boulder County and Fort Col- [email protected] recreation dollars back in people’s range of perspectives is narrower Golf courses pockets. than it could be. Golf continues to lose its allure, Player rounds have been declining “It doesn’t help to have a narrow struggle with with courses across the Boulder Val- in the region during the past five years population of people developing soft- mont, Loveland and Broomfi eld sub-par demand ley and Northern Colorado witness- at public courses in Boulder, Fort Col- ware,” said Jim Martin, who chairs ➤ ➤ lins. The tech community, from ing an exodus of players even as the See Golf, 6A See Women, 9A

CONTENTS Briefcase ...... 22A-23A for every 192 residents in those Hick’s new pact faces Business News Digest ...... 8A large companies like Google to tough battle on setbacks ...... 3A Editorial ...... 30A Dierschow: Workplace diversity For the Record ...... 27A more critical than ever ...... 21A Nonprofit Network...... 25A Tech Trends: Key indicators On the Job ...... 25A that you’ve been hacked ...... 21A The Eye ...... 3A communities. Time Out ...... 24A small startups, has been a major BizWest is an independent, locally owned business journal. In Boulder, that figure was net neutrality advocate, arguing one comment for every 82 that an open Internet is essential residents, compared to Denver to the success of innovation. where it was one for every 235, San Francisco where The deluge of comments to the FCC stemmed it was one for every 132 and nationally where it was from a new set of proposed rules in May that would one for every 286. allow ISPs to arrange some “commercially reason- And almost all of the comments are from people able” deals in which content providers could pay favoring rules that would prevent Internet service ISPs for preferential treatment of their traffi c. Those providers from charging content providers for so- proposed rules had come in the wake of a U.S. called fast lanes to ensure their traffi c arrives to Court of Appeals decision in January striking down consumers more effi ciently. Essentially, network the FCC’s rules on net neutrality from 2010, stating neutrality is the idea that all Internet traffi c should that the FCC overstepped its authority in barring be treated equally. ISPs from slowing selected web traffi c.

UPDATE

The FCC has since worked to craft a set of rules viders to ISPs but where a “lighter regulatory touch” that is addresses the desires of net neutrality advo- would be given to the transmission of data from ISPs cates and has the ability to stand up in court. to the consumers. In October, the New York Times reported that A couple of weeks later, President Obama urged FCC staff were moving toward a sort of hybrid the FCC to adopt strict net neutrality rules and solution in which utility-like regulations would be regulate the Internet like utilities such as telephone imposed on the exchange of data from content pro- and electric service.

BizWest | www.bizwest.com Dec. 26, 2014 - Jan. 8, 2015 | 33 Aug. 22-Sept. 4

Top stories online: More cities eye n Belkin suing OtterBox over distribution rights; reports indicate broadband bandwagon smartphone case maker is exploring a sale BY JOSH LINDENSTEIN net service in cities around the THE LISTS ENGINEERING FIRMS | BUSINESS PARKS | PROPERTY & CASUALTY INSURANCE FIRMS | COLLEGES & UNIVERSITIES n OIL AND GAS Real estate lawyer PDC Energy facing class action, 3 REAL ESTATE & CONSTRUCTION nation where it competes against Noble Energy’s expansion in Greeley marches on, 9 among victims of DISCOVERIES Local governments in 2014 Mapping the wind with municipal broadband networks ﬁber-optic light detector, 23 small-plane crash THE BUSINESS JOURNAL OF THE BOULDER VALLEY AND NORTHERN COLORADO VOLUME 33 | ISSUE 16 | AUG. 22-SEPT. 4, 2014 stepped up their interest in More cities eye broadband bandwagon than it does locally. High-speed networks looking at going head-to-head with Comcast, for instance, promotes Fort Collins is exploring the value creating municipal broadband private Internet service providers to lower pricing for its fastest tier of of such a publicly owned network. Detractors of municipal would compete with build super-fast broadband networks Internet service in cities around the Boulder will ask voters in November they say are critical to their com- nation, such as Chattanooga, Tenn., to remove legislative barriers put in private-sector offerings munities’ economic health and that and Burlington, Vt., where it com- place by the state that keep munici- n Stretch of U.S. 36 private companies aren’t providing. petes against municipal broadband palities from offering telecommu- BY JOSHUA LINDENSTEIN But these governments’ efforts networks. nications services without special Internet networks that they [email protected] may do even more, spurring private Longmont is building out its own approval from voters. broadband say launching such a companies to offer faster service at ﬁber-based broadband network that Detractors of municipal broad- Local governments in the Boulder lower prices in places where cities also will offer 1-gigabit data speeds to band say launching such a network to close next week believe are critical to their com- Valley and Northern Colorado are are in the game. every home and business in town. ➤ See Broadband, 6 network in hopes of disrupting munities’ economic health. the market is a gamble given the n Blue Ocean plans Longmont began buildout of risks involved for local taxpayers

ANN DALLOCCHIO / FOR BIZWEST Larimer County is proposing an extension of its open-space tax to continue funding acquisition of scenic, high–value landscapes, such as this Horsetooth Mountain Open mixed-use project Space, west of Fort Collins. its fi ber-based broadband net- Local tax issues head for a ballot box in your neighborhood if the new utility doesn’t end up of a quarter-cent, if approved by vot- in Fort Collins River Transportation projects, ers Nov. 4, will extend for 25 years Up to the voters flood-repair work and beginning Jan. 1, 2019, when the Tax increases and extensions on the November ballot. work that will offer 1-gigabit Boulder County supporting itself. But the cities current sales and use tax expires. City of Boulder more in the lineup The amended measure would evenly .185-percent sales and use tax, which equals .3-cent sales and use tax from 2015 .2 cents on a $10 purchase, for flood recovery. split proceeds to cities and Larimer to 2018 to fund a variety of capital Extension of a .9 mill ad valorem property improvement projects.* District BY STEVE LYNN County, while cities used to receive tax for another 15 years to help fund social services. [email protected] a greater share of the tax to divide City of Longmont among themselves. .75 cent sales and use tax for 10 years upload and download speeds Larimer County believe they can bring both fast- Voters in the Boulder Valley and The county’s portion of the tax has to fund transportation maintenance, .25-cent sales and use tax extension for 25 operations and improvements. Northern Colorado on Nov. 4 will conserved about 33,000 acres, as well years to fund county and city open spaces. .10-cent sales and use tax for an animal decide on numerous requests by local as 83 miles of trail to date at open Town of Windsor control facility beginning Jan. 1 and ending governments to increase sales and use spaces. The county maintains open .75 cent sales tax increase for 20 years when debt is paid or by Dec. 31, 2020. to fund a $16.1 million expansion of taxes to fund everything from open spaces such as Devil’s Backbone, Her- .2-percent sales and use tax to fund the Community Recreation Center.* to every home and business in space to transportation projects and mit Park, Red Mountain and Horse- operations of Larimer County Jail for 25 years. er speeds and lower prices – and flood-related repair work. tooth Mountain. The percentage equals 1.5 cents on a $10 *Must first be approved by local governments. purchase. In Larimer County, the Help Pre- Also on the ballot will be a citizen- Sources: Boulder and Larimer counties, cities of Boulder and Longmont and town of Windsor. n Magpul serve Open Spaces sales and use tax ➤ See Tax, 2 town. Fort Collins and Boulder do it faster than the ISPs would. CONTENTS Briefcase ...... 28 Careers Carrie Pinsky ...... 27 Business News Digest ...... 8 nixing Cheyenne Keep it Legal Editorial ...... 38 Dan Jones...... 5 For the Record ...... 33 both began their explorations Marketing Nonprofit Network...... 30 Comcast and CenturyLink Laurie Macomber...... 27 On the Job ...... 32 Real Estate The Eye ...... 3 Dave Pettigrew ...... 13 Time Out ...... 31 construction plans into doing the same. BizWest is an independent, locally owned business journal. offi cials said they’re largely tak- after leaving Erie In addition to providing ser- ing a market demand approach vice they don’t believe tradi- to adding 1-gigabit service in tional Internet service providers like Comcast and older areas while making an effort to build it in from CenturyLink will provide the majority of their the start in newer developments. That left too much residents for several years, the moves by the cities gray area for Longmont. could help spur competition. “If Comcast and CenturyLink were going to build A BizWest analysis in August found that Com- a network like this here in the city, we wouldn’t have cast offered lower prices for its fastest tier of Inter- done it,” Roiniotis said.

UPDATE

The ﬁ rst Longmont residents were able to begin service to residents and businesses. The vote is buying Internet service from the city in early expected to start the process of exploring the ben- November for a charter member rate of $50 per eﬁ ts and costs involved in doing such a network. month for the 1-gig service. The rollout will be Fort Collins, meanwhile, is expected to do such phased over the next two to three years, with the studies over the coming year before holding a similar entire city to have access to the network by 2017. vote. In Boulder, meanwhile, voters in November Those initial votes are similar to the one Long- voted overwhelmingly to approve a measure that mont held in 2011 that led to that city’s move allows NEWSMAKERSthe city to provide high-speed broadband toward its own municipal broadband utility.

NEWSMAKERS 2014 2014 34 | Dec. 26, 2014 - Jan. 8, 2015 BizWest | www.bizwest.com Sept. 5-18

Top stories More cities eye A year later, online: n CU falls, CSU rises in U.S. News’ best public school rankings broadband bandwagon a long road back n Drillers piling up debt faster than fortunes in shale

BIZWEST STAFF THE LISTS BOULDER VALLEY PHYSICAL THERAPY & REHABILITATION | LARGEST NORTHERN COLORADO REHABILITATION PROVIDERS their towns. STARTUPS Women have edge in crowdfunding, 3 n Schlumberger to CONGRESS Lyons, a town with an annual Clinics’ budget prognosis uncertain, 12

HEALTH CARE One year after the historic Coverage still at a premium for some, 16 budget of $1 million, saw $45 build $10.5M facility THE BUSINESS JOURNAL OF THE BOULDER VALLEY AND NORTHERN COLORADO VOLUME 33 | ISSUE 17 | SEPT. 5-18, 2014 2013 floods ravaged Boulder Food labels million in damage to public in Windsor stir debate, County and much of Northern naturally infrastructure and 20 percent GMO issue n Luxury apartment Colorado, residents and ofﬁ cials heads for ballot of its 960 homes damaged or BY JOSHUA LINDENSTEIN [email protected]

Proponents of Colorado’s complex underway in were touting local communities’ Proposition 105 are girding for destroyed. And yet, in a town an election-season fight similar to the one California saw on a genetically modified food labeling initiative in 2012 that ulti- JONATHAN CASTNER/FOR BIZWEST Johnstown Vast swaths of asphalt were washed away during last year’s flooding. Here, on U.S. Highway 36 north west Lyons, repair work mately failed, in part because resolve, celebrating the repairs is under way. Repairs are expected to cost $20 million and are scheduled to begin next summer. of heavy corporate spending in that relies heavily on tourism as opposition. Colorado’s Prop 105, to be THE 1,000-YEAR RAIN SEPTEMBER 2013 voted on in November, would require food manufacturers to that had been made, and at the label packaged food produced a gateway to Estes Park, sales tax with genetically modified organ- isms. Proponents argue that the new rule would give consum- A YEAR LATER, ers more knowledge and choice n Fired Smashburger about what types of ingredients same time girding for the long are in the food they’re purchas- revenue through the fi rst eight ing. Opponents say the initiative is misleading and would drive up A LONG ROAD BACK costs for producers and consumers alike. CEO sues chain, says track as it is to contain, as property Spending on the debate in recovery still ahead. months of this year was even Full recovery owners continue to see new flood- Inside Colorado has been tame so far. related issues arise a year after a Right to Know Colorado GMO, n Deluge of donations from flood will weeklong, thousand-year rainstorm the group responsible for gather- slows to a trickle, 2 take costly years ravaged much of the Front Range ing signatures to place the mea- he’s owed millions in – particularly Boulder County and n Lyons’ “islanders” plan a sure on the ballot, had raised As the anniversary of the Northern Colorado. parade, 3 $117,430 and spent $90,304 as of with the same period in 2013 BY JOSHUA LINDENSTEIN “The damage estimates keep n Little change yet for oil, its Aug. 1 filing with the Colora- [email protected] growing,” said Val Beck, commu- gas safety, 7 do Secretary of State’s office. The nications director for the Colorado Coalition Against the Misleading The Colorado Office of Emer- Recovery Office. n Tales of pain, gain for amall Labeling Initiative, meanwhile, severance gency Management now estimates The disaster took the lives of nine businesses, 20 has raised $199,150 and spent floods rolled around in Sep- the damage toll for the September people. Hundreds of residents still about $113,000 as of the same before the floods hit, despite n Costs of recovery, 2013 floods to be $3 billion. find themselves displaced, or perhaps by the numbers, 20 That number is as difficult to ➤ See Road, 20 ➤ See GMO, 5

tember, the Colorado Offi ce of CONTENTS town offi cials’ initial projections Briefcase ...... 30 Sales Smarts Bob Bolak ...... 27 Business News Digest ...... 10 Editorial ...... 38 Tech Trends For the Record ...... 33 Hans Broman ...... 27 Nonprofit Network...... 32 Emergency Management esti- On the Job ...... 32 of a 40-percent slide in tax rev- The Eye ...... 3 Time Out ...... 33 mated the damage toll to be BizWest is an independent, locally owned business journal. enues for 2014. $3 million. The number is one Estes Park, too, was seeing tax that keeps rising as fl ood-related revenues rebound more quickly issues continue to arise for property owners after a than expected. weeklong, thousand-year rainstorm swamped much One thing that really can’t be sped up, however, of the Front Range. is reconstruction of the hundreds of miles of roads Depending on the community, offi cials expect and thousands of homes that were damaged. Ten that full recovery could take two to 10 more years. thousand homes were affected, with hundreds But there are also those communities – like Estes destroyed, in Boulder County alone. At one point Park and even Lyons, one of the hardest-hit – during the fl ood, 645 lane miles of roads were closed where offi cials were looking back with the belief in Weld County. About 118 miles of state and fed- that things could have turned out much worse for eral highways were damaged.

UPDATE

Colorado Department of Transportation offi cials banks to be restored. have said highway repairs will take about three “We are sticking with the message that this last more years. While CDOT had all of its highways, year we got through was a sprint,” Val Beck, com- including U.S. Highways 34 and 36 to Estes Park, munications director for the Colorado Recovery opened within a couple of months of the fl ood with Offi ce, said as the fl ood’s anniversary approached. temporary fi xes, permanent repairs to 36 didn’t fi n- “That’s the stuff that needed to be repaired as soon ish until this fall. Permanent repairs to 34 and other as possible. But we’re headed into the marathon of area highways won’t even begin until 2015 or later. all of this. And it’s going to be a long haul.” There are also streams to be rerouted and river-

BizWest | www.bizwest.com Dec. 26, 2014 - Jan. 8, 2015 | 35 Sept. 19-Oct. 2

Top stories online: Fort Collins, Loveland Recovery spurs cities’ n Homebuilder has 116 acres under contract in Fort Collins n Coloradoan plans eye independent spending surge reorg, layoffs to editorial team BY YUCHEN WU n State demographer: Population shifts airport commission Municipalities across the will alter workforce Boulder Valley and Northern makeup Colorado have spent roughly

BY STEVE LYNN THE LISTS AGRIBUSINESSES | FARM-EQUIPMENT FIRMS | SUBMIT BUSINESS INFORMATION FOR FUTURE BIZWEST LISTS AT [email protected] The commission would $2.1 billion in 2014, up about PEARL WEST Luxe office project may help relieve n Oilfi eld executive downtown space squeeze, 3 AVIATION Fort Collins and Loveland to form replace a steering committee $200 million, or 11 percent, over independent airport commission, 3 AGRIBUSINESS pays $2M for Record corn crop not all good news, 9 Business people welcomed THE BUSINESS JOURNAL OF THE BOULDER VALLEY AND NORTHERN COLORADO VOLUME 33 | ISSUE 18 | SEPT. 19 - OCT. 2, 2014 made up of the mayors, city last year. Berthoud property an effort by the city managers Focus sharpens on end-of-life decisions council members and city man- The surge in spending is true BY STEVE LYNN End-of-life planning has gener- trying to assess what kind of care most likely to need this assistance will [email protected] ated controversy in the past, with an unresponsive person might have receive it. opponents of the Affordable Care wanted. As of July 2012, 686,012 people in FORT COLLINS — Conversa- Act claiming the practice was akin to Medicaid, the program that serves Colorado were enrolled in Medicare. from Loveland and Fort Collins tions between doctors and patients the use of “death panels.” The plan- the poor, as well as private insurance Everyone from patients with ter- agers of both cities that handles across the board, from larger about planning for death could ning sessions, however, have gained companies already reimburse health- minal cancer to younger persons who become more prominent in Colorado more prominence at health facilities care providers for end-of-life plan- might die in a car crash could benefit n hospitals if the federal government statewide as hospitals seek to improve ning. But if Medicare moves forward from such assistance. The outcome of New Belgium goes forward with Medicare reim- patient outcomes, save money and with the practice, it will mean that the discussions can range from want- to develop the framework for bursements next year. reduce stress for doctors and nurses millions of elderly people who are ➤ See Medicare, 6 lesser airport matters. The city communities, such as Louis- Brewing forms Big Apple- a new commission that would style parking councils of Loveland and Fort ville, Longmont and Loveland, political action in Boulder? include residents of the cities to Ask the robot Collins generally decide on more to small towns such as Welling- BY DOUG STORUM committee [email protected] help govern the airport. BOULDER — Business people who important matters, such as bud- ton, according to an analysis by land an office in downtown Boulder’s high-profile Pearl West development will pay about $200 a month to store the Benz or Tesla in a super-secure, Development of the commis- $1.2 million robotic parking garage. BizWest. According to the developers of gets and leases. the project, the garage is the first of its kind in Colorado, joining similar garages in New York, Los Angeles, Miami and soon Dubai. sion comes after Allegiant Air, Pearl West is the redeveloped The joint ownership of the After years of recession-driv- site that housed the Daily Camera newspaper a t 11t h View Video online and Pearl Go to BIZWEST.com. streets. It the airport’s sole commercial will consist of retail shops, restaurants airport by the cities of Fort Col- en budget cuts, 25 cities are loos- – including one on the rooftop – and office space in addition to under- JONATHAN CASTNER/FOR BIZWEST ground parking, both automated and University of Colorado Boulder research technicians conventional, when it opens in 2016. BIOSERVE: LET’S DO LAUNCH prepare experiments for life in space. Page 14. The project is expected to help ease carrier, departed the airport in ➤ See Parking, 13 lins and Loveland can create ening the purse strings this year,

CONTENTS Briefcase ...... 20 Keep it Legal Dan Jones...... 7 Business News Digest ...... 8 October 2012. The company Editorial ...... 30 hardships, especially when it with some cities seeing budgets that are more than Guest Opinion Marilee Boylan ...... 18 For the Record ...... 27 Marketing Nonprofit Network...... 24 Laurie Macomber...... 19 On the Job ...... 22 Real Estate The Eye ...... 3 cited too many general-aviation Dave Pettigrew ...... 26 Time Out ...... 25 comes to doing business at the 50 percent higher than they were in 2008. BizWest is an independent, locally owned business journal. aircraft in the sky as its reason airport, according to business- Longmont, for instance, has increased its spend- for leaving. The decision to leave people. ing dramatically since the recession, laying out came despite higher numbers of “The fundamental problem $230.5 million last year, up 26 percent from the passengers boarding airplanes there. right now is that the airport’s owned and operated Offi cials have discussed an airport commission by two separate cities,” said Jim Sampson, founding for some time, but only recently have they moved CEO of Scion UAS LLC, which makes unmanned UPDATE forward with the proposal. The idea to create an aircraft and has an offi ce next to the airport. “What airport commission would represent a key change that means is it’s quite time-consuming and tedious City tax revenues are likely to continue growing to an intergovernmental agreement between the to try to get anything approved. Even something as in 2015, thanks to ongoing strength in the economy. cities of Fort Collins and Loveland, which jointly simple as a lease for a hangar can take quite a long Next year, for example, Longmont is expected to operate the facility. time.” spend $273 million. Housing continues to improve, which bodes well for growth fees that cities collect and the ongoing UPDATE recovery in property tax values. The Fort Collins and Loveland City Councils committee has,” Cahill said. However, “The coun- met jointly on Nov. 3, and city staff members have cils broadened the defi nition of city representatives been following up with the necessary changes to the on the commission so that it is not limited to mayors intergovernmental agreement between the cities, and city managers, but instead may be any member Loveland’s city manager Bill Cahill said. He expects of the councils or staff.” a draft agreement for both councils to consider soon. “TheNEWSMAKERS Commission will still have increased pow- Reporter Doug Storum contributed to this report. ers and authorities beyond what the present steering

NEWSMAKERS 2014 2014 36 | Dec. 26, 2014 - Jan. 8, 2015 BizWest | www.bizwest.com Oct. 3-16

Top stories Fort Collins, Loveland Recovery spurs cities’ online: n Fort Collins’ director of sustainability resigns eye independent spending surge n Effort underway to form private regional eco/devo group with ‘NoCo’ brand BY YUCHEN WU THE LISTS CREDIT UNIONS | MORTGAGE LENDERS | CLEAN-TECH COMPANIES | ENERGY EVALUATION FIRMS | RECYCLING COMPANIES $182.4 million it was able to BANKING Mobile deposits: Fad or not?, 9 RETAIL Longmont releases $10.3 ml for Village at the Peaks, 3 spend in 2008. FLOOD Anglers, shops worry over St. Vrain’s trout decline, 3 n 12 of region’s airport commission Municipalities across the THE BUSINESS JOURNAL OF THE BOULDER VALLEY AND NORTHERN COLORADO VOLUME 33 | ISSUE 19 | “The city was hit very hard by Boulder Valley and Northern Recovery spurs cities’ spending surge the fl ood in September 2014, and breweries win medals BY YUCHEN WU lion, or 11 percent, over last year. budget cuts, 25 cities are loosen- from $29 million in 2008 to $43 [email protected] The surge in spending is true ing the purse strings this year, with million in 2013, according to the across the board, from larger cities some seeing budgets that are more city’s budget documents. This year at Great American Municipalities across the Boul- such as Louisville, Longmont and than 50 percent higher than in it is spending about $64.5 million, Colorado have spent roughly der Valley and Northern Colorado, Loveland to small towns such as 2008. up from $59.5 million in 2013. a large portion of the increased thanks in large part to the economic Wellington, according to an analysis Louisville has increased its “In part due to the floods of last recovery, are spending roughly $2.1 by BizWest. expenditures dramatically since September, the city has been work- The commission would $2.1 billion in 2014, up about billion in 2014, up about $200 mil- After years of recession-driven the recession, up almost 50 percent ➤ See Spending, 39 budget is for repair and mainte- Beer Fest Tweet or replace a steering committee $200 million, or 11 percent, over tweak, nance of infrastructure damaged then send n Planners steer all made up of the mayors, city last year. Twitter map by the fl ood,” said Barb McGrane, new lobbying tool for bankers NoCo road funding to BY DOUG STORUM council members and city man- The surge in spending is true [email protected] business services and strategic

Most U.S. Senate and House members use Twitter as a way to engage with constituents. Not to Interstate-25 agers of both cities that handles across the board, from larger be left out, the American Bankers planning manager for the city. Association has created an online KNOWING THE DRILL map-based Twitter platform that allows bankers across the nation to KEEPING FOCUS CLOSE TO HOME FUELS SYNERGY shoot prewritten tweets about the JONATHAN CASTNER/FOR BIZWEST industry’s burning issues to those lesser airport matters. The city communities, such as Louis- Synergy Resources Corp. has managed to keep its drilling costs well below industry averages by keeping a lid on overhead. politicos. McGrane also said that the Online: www.aba.com/advocacy/ BY STEVE LYNN producer, headquartered in unincor- equity analyst for Wunderlich Securi- grassroots/pages/Twitter-map.aspx? [email protected] porated Weld County near Platte- ties. Haas has rated the stock a “buy” ville, have risen 30 percent this year. with a $16 price target. The stock By hovering over a state on the n Landmark Homes PLATTEVILLE – Synergy George Seward, the company’s direc- traded around $12 earlier this month. map, bankers can choose a member councils of Loveland and Fort ville, Longmont and Loveland, Resources Corp. revenues have more tor, made a large open-market insider Synergy has ridden an oil boom of Congress and tweet a prewritten city is recovering, but there are than doubled and the company is purchase of nearly $520,000 in shares that set a statewide record of 64.1 message, or tweak that tweet, stay- continuing to gain steam with its last month. million barrels last year and has ing within 140 characters. homegrown approach to drilling “The fact that he is buying stock at shown no sign of abating. Companies The hope is to make it easy for that has won admirers locally and on this particular level is a really bullish operating in Weld County produced Twitter-friendly bankers to ﬂood to build condos in Fort Collins generally decide on more to small towns such as Welling- Wall Street. signal,” said Irene Haas, Houston- 80 percent of the state’s oil. Synergy lawmakers’ Twitter accounts urg- some revenues, such as property Shares of the oil and natural-gas based managing director and E&P ➤ See Synergy, 37 ➤ See Twitter, 18

CONTENTS Briefcase...... 28 Collins Public companies important matters, such as bud- ton, according to an analysis by Local stock report...... 2 Business News Digest ...... 8 taxes, that have not come back to Editorial...... 38 Energy For the Record...... 31 Advanced Energy: optimism despite turbulence...... 5 Nonproﬁt Network...... 29 Insurance On the Job ...... 26 Health premiums spike in NoCo ...... 7 The Eye ...... 3 gets and leases. BizWest. Time Out ...... 30 pre-recession levels. BizWest is an independent, locally owned business journal. The joint ownership of the After years of recession-driv- Farther North, the eco- airport by the cities of Fort Col- en budget cuts, 25 cities are loos- nomic picture also continues lins and Loveland can create ening the purse strings this year, to strengthen. Loveland, for hardships, especially when it with some cities seeing budgets that are more than instance, has increased its spending 29 percent since comes to doing business at the 50 percent higher than they were in 2008. the recession. Tiny Wellington, northwest of Fort airport, according to business- Longmont, for instance, has increased its spend- Collins, is among the biggest spenders on a percent- people. ing dramatically since the recession, laying out age basis, with plans to bump outlays by 92 percent, “The fundamental problem $230.5 million last year, up 26 percent from the from $17.4 million, up from $9 million in 2013. right now is that the airport’s owned and operated by two separate cities,” said Jim Sampson, founding CEO of Scion UAS LLC, which makes unmanned UPDATE aircraft and has an ofﬁ ce next to the airport. “What that means is it’s quite time-consuming and tedious City tax revenues are likely to continue growing to try to get anything approved. Even something as in 2015, thanks to ongoing strength in the economy. simple as a lease for a hangar can take quite a long Next year, for example, Longmont is expected to time.” spend $273 million. Housing continues to improve, which bodes well for growth fees that cities collect and the ongoing recovery in property tax values.

BizWest | www.bizwest.com Dec. 26, 2014 - Jan. 8, 2015 | 37 Oct. 17-30

Top stories online: As budget stagnates, Local clinics snared n BizWest unveils 40 Under 40 for Northern Colorado n UCHealth enters staff shrinks at NCAR in DaVita settlement deal to buy Longmont Clinic

BY YUCHEN WU THE LISTS ARCHITECTS | OFFICE FURNITURE SUPPLIERS | PROPERTY-MANAGEMENT FIRMS Beside NSF funding, NCAR BY STEVE LYNN REAL ESTATE An historic cottage n Tebo Properties looks to the future, 9 The National Center STARTUPS also receives funding from other All4Staff offering a paperless hire, 5 CONSTRUCTION plans retail center in for Atmospheric Research Brinkman lands ﬁre dept. contract, 11 agencies, such as the Environ- DaVita Healthcare Partners THE BUSINESS JOURNAL OF THE BOULDER VALLEY AND NORTHERN COLORADO VOLUME 33 | ISSUE 20 | OCT. 17-30, 2014 Louisville (NCAR), one of the world’s As budget stagnates, staff shrinks at NCAR mental Protection Agency, the Inc. said in October it agreed to

BY YUCHEN WU “We have to think very strategical- from down from its high of 880 in budget and planning office. [email protected] ly about where we invest our money,” 2009. Research power house said Jim Hurrell, director of NCAR. “I think all institutions across the Nestled against the foothills just premier climate research insti- One of the country’s largest cli- “The reality is we’ve had staff layoffs country that receive federal funding below the Flatirons, NCAR has been Department of Energy (DOE) undo a Colorado joint venture mate research facilities, Boulder’s because the budget pressures have for research have been experienc- an international leader in climate National Center for Atmospheric become higher.” ing many of these pressures. It’s not research, as well as meteorology, Research (NCAR,) is struggling to During the past decade, NCAR’s unique to NCAR,” Hurrell said. atmospheric chemistry, and solar- n Developer eyes maintain its rich research environ- headcount has varied dramatically, In 2013, NCAR spent $165.8 mil- terrestrial interactions. ment in an era of stagnant budgets according to NCAR’s budget and lion, down about 3 percent from For decades, NCAR, managed by a tutions, has been struggling to and a staff that has shrunk to its low- planning office. The agency now $171.3 million in 2009, without con- consortium of universities, has relied and the National Oceanic and involved in an illegal kickback restart for Old Town est level in more than a decade. employs 804 full-time staffers, down sidering inflation, according to the ➤ See NCAR, 8 maintain its ground-breaking Dream Chaser Atmospheric Administration scheme that included clinics in North rerouted after scientifi c initiatives in an era of NASA rebuff (NOAA), and those funding Boulder and Longmont as part Private-sector space travel stagnant budgets and a staff that potential boon streams have been highly vari- of a $389 million settlement JOSHUA LINDENSTEIN [email protected] LOUISVILLE - After missing out on a major multibillion-dollar NASA contract, Sierra Nevada has shrunk to its lowest level in Corp. is forging ahead with the able as well, NCAR’s director with the Department of Justice Dream Chaser spacecraft program in a way that wouldn’t have been possible 20, or even 10, years ago. more than a decade. SNC had always planned that Jim Hurrell said. stemming from a whistleblower its versatile space plane could be marketed for a variety of pur- poses and now, as the market for commercial space transport blos- soms, that planning is paying off, This year, NCAR has 804 in part because of the company’s Linda Mearns, the Director lawsuit fi led in Denver federal other partnerships. If a company has developed good private partners, says aero- JONATHAN CASTNER / FOR BIZWEST space analyst Marco Caceres, full-time staffers, down from Students at Aims Community College will get more it can survive a rejection from of the Weather and Climate court. scholarship support as part of the city of Greeley’s NASA. ‘COMMUNITY CAPITALISM’ G.Town initiative. Story, page 3 ➤ See Dream Chaser, 6

CONTENTS Briefcase ...... 23 its high of 880 in 2009. In 2013, Public Companies Impacts Assessment Science Denver-based DaVita Business News Digest ...... 4 Energy sector mixed ...... 2 Editorial ...... 30 Real Estate For the Record ...... 27 Days to offer dropping ...... 10 Nonprofit Network...... 24 On the Job ...... 25 it spent $165.8 million, down Marketing The Eye ...... 3 Program (WCIASP) and a senior (NYSE: DVA), a Delaware cor- Advertising best method ...... 21 Time Out ...... 26 about 3 percent from $171.3 BizWest is an independent, locally owned business journal. scientist at NCAR, said that she’s poration, agreed to the settle- million in 2009, according to witnessed a decline of NSF fund- ment to resolve claims that it its budget and planning offi ce. ing and a dramatic increase of violated the False Claims Act by However, the agency’s headcount and expenditure funding from other sources, which is called “soft paying illegal kickbacks to physicians who referred have varied dramatically during the past decade, money,” over the past few years. patients to dialysis centers in which the physicians according to the NCAR’s budget and planning offi ce. “I can’t say that the soft funding is dramatically had an ownership stake. DaVita has dialysis clinics NCAR is an international leader in climate going up… But if you suddenly take out the soft in 46 states and Washington, D.C., and cares for research, as well as meteorology, atmospheric money, NCAR will just collapse,” Mearns said. nearly 170,000 kidney patients. chemistry, and solar-terrestrial interactions. According to NCAR’s budget offi ce, the spend- In announcing the settlement Oct. 22, DaVita For decades, the institution has relied on funding of soft money at NCAR has increased from said it did not knowingly engage in any wrongdoing from the National Science Foundation (NSF), $61.2 million in 2004 to $69.6 million in 2014. ing. which is a U.S. government agency that supports However, its proportion of total spending has But the company said that it planned to undo fundamental research and education in all the non- remained fl at, at about 42 percent. 11 joint-venture transactions covering 26 of its medical fi elds of science and engineering. “If the overall funding situation into NCAR However, that funding has been relatively fl at continues to stay fl at or decline, we are going to or sub-infl ationary for much of the past 10 years. continue to face tough decisions,” Hurrell said.

UPDATE UPDATE

NCAR offi cials expect to see a small uptick in team has attempted to focus on projects with David Barbetta, of Virginia, will receive a $65 federal funding next year. the highest priority, which includes the modeling million share of the settlement as part of the law- Jim Hurrell, director of NCAR, said that the systems, the data simulation systems and its work suit he fi led against DaVita in U.S. District Court agency expects to see an increase of 3.2 percent in in observational science using data collected from in 2009. Whistleblowers with knowledge of fraud its federal funding in 2015. radars and satellites. against the U.S. can present those allegations to WithNEWSMAKERS limited funding, NCAR’s management the government. If an investigation confi rms those claims, the whistleblower shares in a settlement. Barbetta’s attorney declined to comment.

NEWSMAKERS 2014 2014 38 | Dec. 26, 2014 - Jan. 8, 2015 BizWest | www.bizwest.com Oct. 31-Nov. 13

Top stories As budget stagnates, Local clinics snared online: n Longmont United Hospital to join Centura Health staff shrinks at NCAR in DaVita settlement n Report: Boulder most expensive home market in state

BY STEVE LYNN THE LISTS IT CONSULTANTS | DATA-STORAGE COS | TELECOM | SOFTWARE COS | SUBMIT INFORMATION FOR FUTURE LISTS AT [email protected] 2,119 clinics. One of those joint BOOMERS INSIDE TECHNOLOGY n LogRhythm named Accelerators proliferate; shakeout predicted, 3 ventures was Mountain West DISCOVERIES Ebola containment research in full force at CSU, 14 tech company of the DaVita Healthcare Partners THE BUSINESS JOURNAL OF THE BOULDER VALLEY AND NORTHERN COLORADO VOLUME 33 | ISSUE 21 | OCT. 31-NOV. 13, 2014 Dialysis Services LLC, includ- Inc. said in October it agreed to Local clinics snared in DaVita settlement ing the Boulder Dialysis Cen- year BY STEVE LYNN DVA), a Delaware corporation, ing the settlement Oct. 22, the com- Between March 1, 2005, and Feb. [email protected] agreed to the settlement to resolve pany said it did not knowingly engage 1, 2014, DaVita identified physician claims that it violated the False Claims in any wrongdoing. groups that had significant patient BOULDER — DaVita Healthcare Act by paying kickbacks to physicians DaVita said in October that it populations suffering renal disease undo a Colorado joint venture Partners Inc. will undo a Colorado who referred patients to dialysis cen- planned to undo 11 joint-venture and offered them lucrative opportuni- ter and the Longmont Dialysis joint venture involved in an illegal ters in which the physicians had an transactions covering 26 of its 2,119 ties to partner with DaVita by acquir- kickback scheme that included clinics ownership stake. DaVita has dialysis clinics. One of those joint ventures ing or selling an interest in dialysis in Boulder and Longmont as part of clinics in 46 states and Washington, was Mountain West Dialysis Services clinics to which their patients would n a $389 million settlement with the D.C., and cares for nearly 170,000 LLC, including the Boulder Dialysis be referred for treatment. Coloradoan cuts Department of Justice in a whistle- kidney patients. Center and the Longmont Dialysis The whistleblower lawsuit was filed involved in an illegal kickback blower lawsuit. DaVita did not respond to requests Center, as well as other centers in by David Barbetta, a resident of Vir- Center, as well as other centers Denver-based DaVita (NYSE: for comment. However, in announc- Lakewood and Arvada. ➤ See DaVita, 6 four editorial staffers scheme that included clinics in Rising prices barring debt-burdened college grads from buying homes in Lakewood and Arvada.

BY DOUG STORUM [email protected] Boulder and Longmont as part High housing costs are locking Between March 1, 2005, and thousands of young, college graduates and first-time Colorado homebuyers out of the market as wages stagnate n and tuition loan payments rise. Microlender Accion In Larimer and Weld counties, of a $389 million settlement where the median home price is Feb. 1, 2014, DaVita identi- $241,750 and $210,000 respectively, some debt-burdened grads can afford homes providing they can come up with a 20 percent down payment receives $1 million with the Department of Justice and are willing to spend 43 percent fi ed physician groups that had of their income on a mortgage payment, according to a new report by RealtyTrac. In fact, the report concluded that investment grads meeting those criteria could stemming from a whistleblower buy homes in 96 percent of the hous- patients with kidney disease and ing markets RealtyTrac examined. But it’s more difficult in Boulder and Broomfield counties, where the median home price is $350,000 and $306,180, respectively. lawsuit fi led in Denver federal The report said first-time home- offered them lucrative opportu- buyers on average need a minimum income of $37,010 in Weld County, DOUG STORUM/ BIZWEST $41,474 in Larimer County, $50,532 Recent college graduates in the United States strapped with student-loan debt need to make 34 percent more to buy a medi- in Broomfield County and $56,693 an-priced home than do recent grads who don’t have student loans, according to RealtyTrac. But those first-time homebuyers in Boulder County. Those salaries are court. in the city of Boulder face a much steeper challenge because its homes cost much more than those in surrounding areas. ➤ nities to partner with DaVita by See Homebuyers, 18

CONTENTS Briefcase ...... 22 Who owns the water rights? Business News Digest ...... 7 Denver-based DaVita Oil companies asked to identify water sources, just not in acquiring or selling an interest Editorial ...... 30 Colorado or Wyoming ...... 4 For the Record ...... 26 Keep it legal Nonproﬁt Network...... 25 By Dan Jones, Esq...... 20 On the Job ...... 24 Marketing The Eye ...... 3 (NYSE: DVA), a Delaware cor- By Laurie Macomber ...... 21 Time Out ...... 23 in dialysis clinics to which their BizWest is an independent, locally owned business journal. poration, agreed to the settle- patients would be referred for ment to resolve claims that it treatment. violated the False Claims Act by DaVita further ensured paying illegal kickbacks to physicians who referred referrals of patients to the clinics through a series patients to dialysis centers in which the physicians of secondary agreements with the physicians, who had an ownership stake. DaVita has dialysis clinics agreed not to compete with DaVita, preventing the in 46 states and Washington, D.C., and cares for physicians from referring their patients to other nearly 170,000 kidney patients. dialysis providers. In announcing the settlement Oct. 22, DaVita Meanwhile, physicians received an upfront said it did not knowingly engage in any wrongdo- payment and continuous “extraordinarily high ing. returns” of from 120 percent to 220 percent on But the company said that it planned to undo their investments in the joint ventures, according 11 joint-venture transactions covering 26 of its to the Justice Department.

UPDATE

David Barbetta, of Virginia, will receive a $65 The government reached an agreement on Bar- million share of the settlement as part of the law- betta’s share of the proceeds on Oct. 16, according suit he fi led against DaVita in U.S. District Court to a court fi ling. DaVita paid the settlement to the in 2009. Whistleblowers with knowledge of fraud government on Oct. 30. against the U.S. can present those allegations to U.S. District Judge William Martinez dismissed the government. If an investigation confi rms those the lawsuit Nov. 3. The Justice Department, mean- claims, the whistleblower shares in a settlement. while, has indicated it will not investigate doctors Barbetta’s attorney declined to comment. involved in the scheme.

BizWest | www.bizwest.com Dec. 26, 2014 - Jan. 8, 2015 | 39 Nov. 14-27

Top stories online: More injections n Despite retail failure, GoLite founder hoping for comeback n Indiana ﬁ rm plans sought despite quakes nursing/rehab facility in Fort Collins

BY STEVE LYNN THE LISTS EMPLOYEE BENEFITS | HOSPITALS | ACUPUNCTURE CLINICS | SUBMIT BUSINESS INFORMATION FOR FUTURE LISTS [email protected] posal permit. The investigation BY DOUG STORUM HEALTH CARE Small-biz health-insurance premiums n Galvanize taking exceeding state forecast, 17 ECONOMIC DEVELOPMENT SBDC and UNC incubator combine remains open. forces, 3 TRANSPORTATION Plan for new authority advances at 27,000 square feet at Loveland/Fort Collins Airport, 5 NGL Water Solutions DJ THE BUSINESS JOURNAL OF THE BOULDER VALLEY AND NORTHERN COLORADO VOLUME 33 | ISSUE 22 | NOV. 14-27, 2014 The permit, granted in the As credit card breaches at Pearl West LLC, the company operating the More injections sought despite quakes spring of 2013, allows the com- some of the country’s major Investigation into last spring, has asked to boost by 20 as the event that triggered a state inves- The permit, granted in the spring percent the amount of water it can tigation. of 2013, allows the company to inject wastewater well inject underground, despite ongoing Last summer, the Colorado Oil 10,000 gallons of wastewater daily. remains open low-level quake activity captured by and Gas Conservation Commission After the incidents last spring, howev- fracking-fl uid disposal well linked a new state monitoring program. briefly suspended activity after large er, the state required NGL to cut back pany to inject 10,000 gallons retailers continued to capture BY STEVE LYNN Since injections were temporarily quakes struck and a public outcry the amount of water it injected. The [email protected] suspended at the well in June, earth- erupted. Injection activity was then amounts injected have been allowed quakes have occurred every month at allowed to resume in late July and the to increase gradually and subsequent n 52-bed hospital GREELEY — NGL Water Solu- the 10,400-foot-deep well, according state launched an investigation into small quakes have been documented. tions DJ LLC, whose fracking-fluid to documents obtained by BizWest whether NGL had violated the terms NGL declined to comment for this to earthquakes near the Greeley disposal well was linked to earth- through a Colorado Open Records Act of its disposal permit. The investiga- article. of wastewater daily. After the headlines in 2014, the battle proposed for quakes near the Greeley Airport late request. At least one was nearly as large tion remains open. ➤ See Wells, 6 Airport late last spring, asked the Analysts are incidents last spring, however, between banks, credit unions Broomfi eld’s Arista bullish on new state of Colorado if it could boost telecom merger the state required NGL to cut and retailers over who is respon- Level 3 posting development profits as it by 20 percent the amount of closes tw deal back the amount of water it sible for reimbursing consumers

BY JOSHUA LINDENSTEIN [email protected]

The recently completed merg- water it can inject underground er of Colorado telecommunica- injected. The amounts injected whose credit cards have been tions companies Level 3 Com- munications Inc. and tw telecom n Affordable housing inc. should lead to faster growth in revenue and market share than despite ongoing low-level quake the two could have achieved on have been allowed to increase compromised heated up. their own, according to analysts, and any job losses associated with cost-saving synergies are expect- complex sold, ed to be “gentle” in relation to other mergers. activity captured by a new state Level 3 (NYSE: LVLT), which gradually and subsequent small Big data breaches such as employs about 2,400 people at its headquarters in Broomﬁeld, JONATHAN CASTNER/FOR BIZWEST closed its acquisition of Littleton- renovations in the Boulder-based Dr. Michael Wertz, right, one of the ﬁrst surgeons in the United States to based tw telecom on Oct. 31. The use 3-D printed knee implants, inserted one in patient Duane Duggan’s right knee in Sep- deal, announced in June, was monitoring program. 3-D KNEE tember and is to replace Duggan’s left knee this month. Story, page 14 ➤ See Level 3, 18 quakes have been documented. those at Heartland, Target,

CONTENTS works Briefcase ...... 28 Technology Business News Digest ...... 8 Since injections were tempo- By Jon Thompson ...... 22 Editorial ...... 38 NGL declined to comment. Staples and Home Depot have Marketing For the Record ...... 31 Nonprofit Network...... 25 By Marilyn Heywood Paige ...... 23 On the Job ...... 26 GMO labeling initiative The Eye ...... 3 rarily suspended at the well in Boulder voters surprise result on Proposition 105 ...... 3 Time Out ...... 24 In Northern Colorado, the drawn attention to a problem BizWest is an independent, locally owned business journal. June, earthquakes have occurred drilling technique known as that has been around for years, near the 10,400-foot-deep hydraulic fracturing generates but is escalating because of more well, according to documents enormous amounts of wastewa- sophisticated hackers and the obtained by BizWest through a Colorado Open ter that oil companies typically inject thousands of millions of consumers whose bank accounts and Records Act request. At least one was nearly as large feet underground. Fracking involves pumping mil- personal data have been pilfered. as the event that triggered a state investigation. lions of gallons of water mixed with sand and chemi- Financial institutions are on the hook for reim- Last summer, the Colorado Oil and Gas Conser- cals into a drilled hole to extract oil and gas from bursing their customers for fraudulent charges vation Commission briefl y suspended activity after dense shale formations. Injection wells such as the large quakes struck and a public outcry erupted. one operated by NGL are designated specifi cally for Injection activity was then allowed to resume in wastewater and regulated by state authorities. Some late July and the state launched an investigation 29 permitted disposal wells are operating in Weld into whether NGL had violated the terms of its dis- County. NGL operated 11 of those wells as of July.

UPDATE UPDATE

In an Oct. 28 email, NGL told the state oil rate limit. All of the bantering comes as a class-action suit commission that it was “not aware of any abnormal The state oil commission, though it collects ﬁ led by a group of banks against Target to recoup seismic activity in the area” and asked the agency to monthly reports on volumes of water injected by millions of dollars from the recent Target breach is increase its maximum daily injection rate to 12,000 well operators, has no gauges to monitor exactly playing out in court. barrels of wastewater per day. how much water a company has injected. Meanwhile, Visa and MasterCard, along with The state oil commission has not approved that “Most injection well operators have equipment other credit-card companies, have made clear that request, said Matt Lepore, director of the agency. that monitors the injection on at least a daily Meantime, the agency says it a 10,000 barrel per basis, and we can obtain those records,” said Todd day maximum listed on the permit “is not a binding Hartman, spokesman for the state Department of limit.” NGLNEWSMAKERS has said it “vigorously objects” to the Natural Resources, which oversees the state oil state oil commission establishing a daily injection commission.

NEWSMAKERS 2014 2014 40 | Dec. 26, 2014 - Jan. 8, 2015 BizWest | www.bizwest.com Nov. 28-Dec. 13

Top stories Credit cards hacked? online: n Boulder Google campus gains conditional planning Who pays ‘em back? board approval n UCHealth to build emergency center on Harmony Campus BY DOUG STORUM THE LISTS INVESTMENT ADVISOR FIRMS | CPA FIRMS whether they are responsible for HEALTH GIVING Prognosis mixed for wellness plans, 3 GUIDE BANKING & FINANCE the breach or not. But they want GIVING GUIDE n CU report: Local As credit card breaches at THE BUSINESS JOURNAL OF THE BOULDER VALLEY AND NORTHERN COLORADO merchants to chip in to cover some of the country’s major Credit cards hacked? Who pays ‘em back? these costs and help pay for the economy to keep Banks, credit unions, compromised in data breaches. retailers spar over Big data breaches such as those are responsible for the breach or not. is responsible. … We don’t want to at Heartland, Target, Staples and But they want merchants to chip in put retailers out of business, but we growing in 2015, but liability for breaches Home Depot have drawn attention to cover these costs and help pay for need statutory change. Maybe not a retailers continued to capture to a problem that has been around the costs of reissuing cards when data 100 percent reimbursement from the costs of reissuing cards when BY DOUG STORUM for years, but is escalating because of breaches occur through their point- parties at fault, but there should be [email protected] more sophisticated hackers and the of-sale systems. some sharing of covering reimburse- millions of consumers whose bank “Right now banks are having to ments to customers.” A battle is brewing between banks, accounts and personal data have been cover the costs, even when they are speed bumps could credit unions and retailers over who pilfered. not at fault,” said Don Childears, Many costs involved headlines in 2014, the battle is responsible for reimbursing con- Financial institutions are on the president of the Colorado Bankers Childears said the cost of reissuing data breaches occur through sumers whose credit cards have been hook for reimbursing their customers Association. “Congress needs to cre- ➤ between banks, credit unions See Credit, 18 loom FALLING COSTS OPEN 3-D PRINTING TO THE MASSES their point-of-sale systems.

BY YUCHEN WU and retailers over who is respon- [email protected] While banks are in the pro- 3-D printing, the process in which lasers are used to imprint a variety of materials, from paper to plastics and n metals, has become so cost-effective Despite retail that local copy shops are starting to sible for reimbursing consumers offer the service to walk-in custom- cess of implementing more ers. Costs have come down dramatically, primarily because of the expi- failure, GoLite founder ration of early patents. The cost now whose credit cards have been is low enough that longtime Boulder secure microchip credit cards, print shop Eight Days A Week Imag- ing and Copy Center plans to open a 3-D printing store early next year. Sam Sussman, co-owner of the hoping for comeback company, said he has been offering compromised heated up. 3-D printing services for almost two banks believe retailers that fail years, but he believes interest and proﬁt margins are strong enough to warrant opening a 3-D-only store. Sussman said 3-D printing will make manufacturing costs much Big data breaches such as cheaper. to make their point-of-sale sys- “It’s a quick way to prototype products,” he said. “In the next couple of years, I think it will turn into a manu- n Google made facturing process as more emphasis those at Heartland, Target, JONATHAN CASTNER/FOR BIZWEST goes into products. Actually, GE has tems compatible should pay the Nick Aquero sets up and monitors 3-D print jobs at a new store in Broomﬁeld. The service is being offered to walk-in customers. ➤ See Printing, 4

CONTENTS staying in Boulder Briefcase...... 24 Staples and Home Depot have Real Estate Business News Digest ...... 8 consequences. By Dave Pettigrew ...... 20 Editorial...... 30 Small Business Adviser For the Record...... 26 Nonproﬁt Network...... 23 By Carl Dierschow...... 21 On the Job ...... 23 priority in expansion Guest Column The Eye ...... 3 drawn attention to a problem By Paul Mueller ...... 31 Time Out ...... 22 “The cost should be paid by that has been around for years, BizWest is an independent, locally owned business journal. the party whose systems were at quest but is escalating because of more fault in a breach,” Shawn Osthoff, sophisticated hackers and the president of Bank of Colorado in millions of consumers whose bank accounts and Fort Collins, told BizWest in November. personal data have been pilfered. Those in the retail industry, however, contend Financial institutions are on the hook for reim- that merchants already pay ﬁ nancial institutions bursing their customers for fraudulent charges extra fees for data encryption and other services.

UPDATE

All of the bantering comes as a class-action suit “any actor” without chip-based card technology in ﬁ led by a group of banks against Target to recoup place by October of 2015 will be forced to bear the millions of dollars from the recent Target breach is cost of fraud. playing out in court. Meanwhile, Visa and MasterCard, along with Reporter Josh Lindenstein contributed to this report. other credit-card companies, have made clear that

BizWest | www.bizwest.com Dec. 26, 2014 - Jan. 8, 2015 | 41 Dec. 12-25

Top stories online: n CU report: Local Local drillers see economy to keep growing in 2015, but speed bumps could loom shares tumble n McWhinney, Sage plan hotel in downtown Fort Collins n Boulder Google as oil price drops campus gains conditional planning BY STEVE LYNN to reveal their capital spending THE LISTS ADVERTISING, MARKETING, PR FIRMS, WEB DESIGN COMPANIES | COMMERCIAL PRINTERS | SUBMIT INFORMATION [email protected] board approval ECONOMIC DEVELOPMENT plans for 2015, and some analysts ENERGY

SPECIAL PUBLICATIONS Stocks of oil companies that INSIDE say those budgets will face cuts. n Despite retail THE BUSINESS JOURNAL OF THE BOULDER VALLEY AND NORTHERN COLORADO VOLUME 33 | ISSUE 24 | drill wells in Weld County have Scheme takes Ecrypt stock on wild ride Since June, global oil sup- failure, GoLite founder BY JOSHUA LINDENSTEIN pany with registered and legal offic- officer, in a phone interview. “We’re warning on Ecrypt’s stock to alert [email protected] es in Boulder whose executives are working with the exchange commis- investors that there may be reason to plunged with declining oil pric- spread throughout the United States sion. Obviously we’re just incredibly exercise extra care and due diligence plies have risen with ballooning BOULDER — Data security firm and Canada. forthcoming. They ask questions, and when making decisions related to the Ecrypt Technologies Inc. has seen its The company’s co-founder, Brad we’re trying to respond to them.” security. stock price take a wild ride over the Lever, contends that the company is OTC Markets Group, the opera- Ecrypt, which plans to take its hoping for comeback past couple of weeks as the result an innocent bystander in the activities tor that oversees the marketplaces for Ecrypt One product to market early of what appears to be a paid stock that have helped drive its stock price over-the-counter stocks, or those secu- in 2015, is trying to use the newfound es, potentially leading to lower pump-and-dump scheme. up fourfold since Nov. 20. rities that trade off of the New York attention – negative or otherwise – to production in the United States Ecrypt (OTCQB: ECRY) is a “There’s not a lot we can do,” said Stock Exchange or Nasdaq exchange, get the word out about itself. 7-year-old development-phase com- Lever, the company’s chief operations on Dec. 9 placed a “Caveat Emptor” ➤ See Ecrypt, 6 capital spending in 2015. Local drillers see and as Libyan crude supplies CSU STADIUM: shares tumble as n Spier’s new GOAL TO GO oil price drops PDC Energy Inc. (Nasdaq: BY STEVE LYNN have returned online following Dec. 5, Colorado State [email protected] University’s governing board authorized GREELEY — Stocks of companies investment fund that operate in Northern Colorado President Tony Frank have plummeted with falling oil pric- PDCE), which drills oil and to move forward with es, potentially leading to decreased conflict in 2011, according to a controversial plan for capital spending next year. PDC Energy Inc. (Nasdaq: PDCE), a new stadium. In its which drills oil wells in Weld County, raises $32.8 million actions the board: posted among the steepest declines. Company shares sank to a 52-week natural-gas wells in Weld Coun- n Approved construction of a new low of $27.91 in December after Moody’s Investor Service. Grow- stadium located on Colorado State reaching a high of $70.44 in June, a 60 percent decline in six months. University’s main campus. Oil prices began falling from n Authorized Frank to return to the around $100 per barrel in July to $67 in December after OPEC said ty, has seen among the steep- board with a final program and it would not cut production. Energy ing demand next year, however finance plan in February. stocks, meanwhile, have fallen with the decline in oil prices, in some n Authorized Frank to select a scope cases losing nearly half their value of plan and financing option that from highs seen this summer. The minimizes risk to the general fund. downturn in oil prices comes as oil est declines. PDC’s stock fell producers plan to announce their will slow the fall in oil prices. Now the city of Fort Collins is preparing capital spending plans for 2015, and to weigh in. And not everyone’s happy. some analysts believe those budgets could see cuts. FULL STORY, PAGE 3 Moody’s Investor Service issued a report last month cutting esti- to a 52-week low of $27.91 in ➤ In December, PDC Energy See Oil, 14

CONTENTS Briefcase...... 26 Keep It Legal Business News Digest ...... 7 December after hitting a high By Dan Jones, Esq...... 21 Editorial...... 30 said it would slash its 2015 capi- Labor Brain For the Record...... 28 Nonproﬁt Network...... 27 By Kalen Fraser...... 21 On the Job ...... 24 Tech Tends The Eye ...... 3 of $70.44 in June, a 60 percent By Hans Broman...... 31 Time Out ...... 23 tal budget to $557 million, a BizWest is an independent, locally owned business journal. decline in just six months. 14 percent decline from the Oil prices began falling from company’s $647 million capital around $100 per barrel in July to budget for 2014. The company, prices nearing $60 in December after OPEC said it however, will increase its spending in the Wat- would not cut production. Meanwhile, Northern tenberg ﬁ eld, which includes territory in Weld Colorado oil company stocks have collapsed with County, to $516 million for next year, up from the drop in oil prices, with many losing nearly half $272 million this year. It has decided to idle a drill- their value from highs seen this summer. ing rig in Ohio to focus on higher return projects The oil prices slump comes as oil producers plan in the Wattenberg.

UPDATE

Weld County, where companies produced 80 value the year before. percent of Colorado’s record-breaking 64.1 million Since the county assesses property values every barrels of oil last year, plans to watch the situation, other year, a downturn that occurs in any year said county spokeswoman Jennifer Finch. would not be felt through property taxes until two Property taxes make up the foundation of Weld’s years later. budget. Last year, oil and gas accounted for $3.9 “The downturn in oil prices, should it remain, billion, or 55 percent of the $7.1 billion of assessed would not be felt by Weld County with regard to the propertyNEWSMAKERS value in Weld. That’s up from $3.4 billion county budget for two years,” Finch said, “providing in assessed oil and gas property value, or 52 percent time for us to revise, and if needed cut, the budget of Weld’s $6.5 billion in total assessed property to handle the ﬁ nancial loss.”

NEWSMAKERS 2014 2014 42 | Dec. 26, 2014 - Jan. 8, 2015 BizWest | www.bizwest.com Manage your energy your way with

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To nominate a Forty Under 40 leader, go to www.fortyunderforty.com

For information about sponsorships, contact Sandy Powell at 303-630-1954 or [email protected]

BizWest | www.bizwest.com Dec. 26,2014 - Jan. 8, 2015 | 43 BIZWEST MEDIA LLC POST OFFICE BOX 270810 FT COLLINS CO 80527

Presents

2015

BizWest is pleased to present Save the Date! 2015 Economic Forecast BizWest’s Economic Forecast luncheon Tuesday, January 21, 2015 11:00 a.m. - 1:30 p.m. opens the 2015 BizWest event series. University Center Ballroom, University of Northern Colorado 2045 10th Avenue, Greeley This is where you’ll hear the news and Tickets including lunch: $39 views you need to deﬁne your business Don’t miss this in-demand event. strategies for the coming months.

Reservations open online at BizWest.com

Presenting Sponsors

Associate Sponsors

For corporate sponsorship opportunities, corporate table reservations or more information contact Sandy Powell at [email protected] or 970-232-3144