EXECUTIVE POSITION PROFILE

President/Chief Executive Officer

http://www.apexgetsbusiness.com

On behalf of our client, the Area Partnership for Economic Growth, KeyStone Search is conducting a retained search for its President/ Chief Executive Officer. www.keystonesearch.com
January 2012

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INTRODUCTION TO THE POSITION OF PRESIDENT/CEO Area Partnership for Economic Growth

Organized as a 501-C6 not-for-profit corporation in 2003, the Area Partnership for Economic Expansion (APEX) is a private-sector lead business and economic development corporation based in Duluth, Minnesota. The purpose of APEX is to drive investment in northeastern Minnesota and northwestern Wisconsin through attracting businesses that are strategically aligned with the regions capabilities, expanding businesses throughout the region and ensuring that successful businesses are retained. APEXs 60 plus member investors represent many of the most influential companies in the region with a collaborative approach to creating sustainable economic growth throughout the Northland. Since its founding, APEX has had a very high retention rate among its member investors and continues to grow its membership base. It is governed by a 24 member Board of Directors and has an Executive Committee of 9. The estimated annual economic impact of the combined APEX membership is over $3 billion according to research completed by the University of Minnesota Duluths Labovitz School of Business. APEX enjoys strong participation and leadership from the chief executives of major companies and private not-for-profit institutions, as well as support and involvement from key public stakeholders including governmental units, higher education and economic developers in the area. APEX has a strong regional brand while gaining stature throughout the State and is recognized as a regional leader/partner in enhancing public/private sector cooperation. The organization also has a wholly owned for profit subsidiary. The APEX Strategic Resources Group, Inc. (SRG) provides businesses and organizations throughout the region with access to a team of seasoned consultants. These professional advisors marshal the resources necessary to help businesses solve problems or take advantage of opportunities in a cost-effective and efficient manner. Whether in late-stage development or in the mature phase of the clients business life cycle, SRGs clients benefit from practical, effective strategies and advice to achieve their stated objectives.

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APEX TRACK RECORD

The stature and reputation of APEX is the result of tangible accomplishments over the past 7 years. The successes include retention and attraction of smaller businesses as well as those that employ or will employ several hundred people. As with other successful regional ED organizations, APEX is often in a lead role in attraction, retention and expansion, but there are many times when APEX is playing a support role with one of its partners. The results reported herein reflect both situations. Overall results for APEX since operations began in May of 2004 show the following: Jobs Impacted 1,374 1,031 170 151 2,726 Estimated Wages $60,640,000 31,722,000 8,765,000 5,819,000 $106,766,000*

Retention Strategies Attraction Strategies Expansion Strategies Consulting Strategies Totals over 7 years

*Wages are based on best estimates at the time of the engagement and reflect a variety of information sources including actual company data and other data from secondary sources. One example of APEXs success with retention is Altec, an Alabama-based leading national provider of products and services to the electric utility, telecommunications and contractor markets. Altec was considering consolidation and closing the Duluth operation which employed about 100 people, moving those jobs to St. Louis, MO. APEX convinced management that productivity, quality and overall costs actually would be lower by keeping the Duluth operation running. Altec not only stayed in Duluth, but also made this operation their profit center for specialty manufacturing and custom work. Today, Altecs Duluth facility employs about 120 people and is one of their most productive profit centers for the company. An expansion success story is SISU, a company formed in 1997 as a cooperative providing IT services to small rural hospitals. In effect, the company serves as its owners IT management team. As smaller hospitals have come under severe cost pressures, it was evident that SISU needed to find new sources of revenue. SISU retained APEXs Strategic Resource Group to provide direction and a plan to drive new revenues and income to the company. SRG worked with the management team to redefine the mission, vision and overall business strategy for going forward. SISU has formed its own for profit IT consulting arm and has increased revenues and staffing as a result. The company is well on its way to driving significant incremental revenues thereby ensuring its long term viability. And finally, an impressive attraction victory for APEX is the new Involta Inc. Data Center. In 2006, APEX developed a data center attraction strategy because the region offers the perfect cool climate for data centers and Minnesota Powers costs are among the lowest 10% in the Nation. Further, the region has no earthquakes, hurricanes, tsunamis and severe weather is an anomaly and most important, the region has very robust fiber and telecom infrastructure. One might say its a perfect storm for data center attraction.

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At the same time, several APEX members expressed an interest in having a data center in this region including Essentia Health, SISU, Enventis Telecom and others. APEX attended several conferences, built relationships and referral sources and in 2010, began meeting with Involta, a company out of Cedar Rapids Iowa that builds and manages collocation data centers for data storage and disaster recovery. In the early fall of 2011, Involta made a decision to build a data center in Duluth. Phase one will require about $12.5 million and three phases are planned over the next few years that will require a total investment of $45 million. Further, the company has taken an existing building and converted it for data storage. These are jobs that pay an average of $70,000 a year and while the number may only be about 20 for phase one, for every data center job, about 5 additional IT jobs are created. Involta expects to fully operational in the fall of 2012.

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THE NORTHEASTERN MINNESOTA NORTHWESTERN WISCONSIN REGION

Over 500,000 people work, live and play in this vibrant area we call the Northland. Four distinct seasons offer year-round opportunities for fun and relaxation. Outdoor enthusiasts enjoy crystal clear lakes, lush forests and rugged shorelines. Yet, the most sophisticated tastes are satisfied with rich cultural venues including world class music, dance, fine arts and entertainment. Quick facts about the region: Labor & Workforce Regional labor pool is over 173,000 Average unemployment rate in Duluth is 6.8% and is well under the national average throughout the region averaging about 7.8%. Low employment turnover rate at under 2% compared to 15% on a national basis The median regional wage rate is $15.48 an hour compared to a statewide median wage of $17.60 an hour and a national rate of $16.55 an hour. Thus, the region has a distinct competitive labor advantage in recruiting and retaining businesses. Academic Achievement 90% of the regions population are high school graduates compared to 78% in the nation 20.9% have bachelors degrees or higher Minnesota has lead the nation in ACT scores for 7 straight years and Duluths scores have lead the State Core Industries Aerospace/Aviation Manufacturing Clean Energy & Biofuels Healthcare IT/Data Storage Mining & Metallurgy Precision Machining Heavy Fabrication, Castings & Steel Production Forest Products Tourism & Hospitality Applied Technology/Call Centers Infrastructure International seaport shipping 44 million metric tons/year and 14 day ship time to Europe International airport three commercial carriers, 14 flights/day Four major railways (BNSF,CN,CP and UP) Electric rates among the lowest 10% in the nation Redundant 10G+ fiber optic networks 41 trucking companies Interstate highway and heavy haul corridors Extensive natural gas pipelines

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Quality of Life Residents of the Northland enjoy an unsurpassed quality of life. The region is home to spectacular scenery and outdoor adventures for every season. Voyageur's National Park, the Boundary Waters Canoe Area Wilderness, Superior National Forest and Lake Superior are just a few of its natural treasures. Ranked as one of the country's Top 10 Places to Live by Outside Magazine, as well listed in the same Magazine's "Top 10 Dream Town", Duluth's unique geography, historic downtown, easy access to Lake Superior, and its rich art and culture scene make the city an attractive place to live. The region offers championship golf, world-class skiing, art galleries and museums, and a full slate of entertainment that includes a symphony orchestra and nationally acclaimed ballet troupe. Safe neighborhoods, quality schools, affordable housing, progressive health care, an active citizenry and minimal traffic congestion enhance the experience. Over three million people visit the area every year for vacations and to enjoy all the amenities of the Northland. There are hundreds of festivals, include the famous Bluesfest in Duluth. And, Grandmas Marathon attracts thousands of runners and supporters every June. Health Care The region has several community hospitals and two world class health care systems. Essentia Health has over 11,000 employees and 5 hospitals and 17 clinics in the East Region. St. Lukes has over 2,300 employees and 37 clinics. Housing At the end of 2011, there were about 3,200 active home listings. In addition, there were over 450 townhome and condominiums listed in the region. The median home price was $143,000 with the average selling price at about $166,000. The average townhome was about half the price of a single family dwelling. Education There are 14 community and technical colleges in region along with the University of Minnesota Duluth (12,000 students), University of Wisconsin Superior (2,600 students) and the College St. Scholastica (4,000 students). The total college enrollment is 26,000.There are several private academies and excellent public schools throughout the area. Funding and Investment Over $6.0 billion of investment is currently planned for northeastern Minnesota. Northwestern Wisconsin could be well over a billion as a result of the potential iron mining south of Ashland. Major recent or planned investments include: Essar Steel (Nashwauk) $1.6 billion planned for mining and steel processing facilities PolyMet (Hoyt Lakes) $400 million nonferrous mining development and processing plant Duluth International Airport - $68 million for new terminal Duluth Public Schools - $256 million in new schools and updates US Steel Keetac (Keewatin) $300 million in capital improvements Magnetation (Keewatin/Taconite/Chisholm) $360 million in planned development and capital investments SAPPI Paper (Cloquet) $170 million investment in chemical cellulose mill Duluth Entertainment & Convention Center - $350 million in capital improvements

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KEY ACCOUNTABILITIES
The APEX President/Chief Executive Officer is responsible for providing the overall direction, leadership and management of the organization. The President/CEO works closely with partners and stakeholders in the private, public and philanthropic sectors to attain strategic alignment and thereby implement the APEX vision, mission and strategic direction. The President/CEO is responsible for the effective use of the organizations financial and human resources while also leveraging the extensive personal capital found within its Board of Directors and members. He or she builds the APEX brand by increasing awareness and understanding of the organizations mission, vision and capabilities among targeted audiences. The President/CEO reports to the Board of Directors and works closely with the APEX Executive Committee to develop and implement strategies for attraction, retention and expansion of businesses within the region. He or she recruits and hires staff, develops annual plans and reviews staff performance. The President/CEO also oversees the Strategic Resource Group (SRG) and is ultimately responsible for its profitability. The APEX budget in 2012 is $976,000 with 51% of the revenue from investor/member dues, 13% from a marketing contract with the Itasca Economic Development Corporation in Grand Rapids, MN, and the remaining 36% from SRG revenues. Major Responsibilities Include: I. Recruit, hire, and manage an exceptional staff Recruit and hire people who are passionate about their jobs and the region Work with the staff to develop plans and direction that will enable them to be an effective and energized part of the APEX team while realizing their own full potential Delegate the responsibility and authority needed for each staff person to be effective in fulfilling their responsibilities Evaluate and reward performance or modify performance of staff members on a timely basis Ensure that APEX remains competitive in wages and benefits II. Effectively market the region to prospective businesses that are aligned with the regions capabilities. Identify target market categories/segments for recruitment of businesses within selected target markets which offer the most promising potential for recruitment to the region Coordinate with partners and stakeholders to leverage relationships and resources Develop and implement a communications plan to reach targeted companies for recruitment that may include online strategies, direct marketing, trade shows, public relations, select advertising and personal calls Oversee the development of sales promotion materials for distribution to build awareness and preference for the region including the preparation of sales presentation materials Cultivate relationships within targeted categories/segments and build referral sources including working with site selectors, state and local economic development agencies, trade associations and others Build, and when appropriate, lead presentation teams Provide direction for the management of the APEX database to identify and track leads

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Work in support of other economic development organizations in assisting them in attracting businesses to the region or fulfilling their missions

III.

Expand and grow high potential businesses within the region Identify those businesses within the region which have significant growth potential Develop relationships with potential expansion prospects through managing a call program and leveraging APEX member/investors relationships Connect the dots between various resources which can assist existing businesses with growth including financial institutions, finding capital, other businesses that may be part of supply chains, real estate developers, consultants (including SRG), partners and others who can assist a growing business. Work with the State Chamber of Commerce and the Grow Minnesota program to participate in a regional calling program which can identify new growth and expansion opportunities Retain key businesses within the region Identify businesses where succession planning may ensure that the business continues in operation after current owners exit Monitor the region and identify those businesses which may be vulnerable to attraction strategies implemented by other states or regions within Minnesota and proactively work to retain any business which appears to be vulnerable to moving Work with those businesses who experience issues such as finding qualified and trained employees, zoning, permitting, financing and other issues to find solutions which ensure they stay and thrive in the region Develop and maintain strong partnerships Support other economic development partners in both the private and public sector in their efforts to attract, expand or retain businesses in the region Provide expertise as needed including strategy development, marketing support, financial support or support from member/investors as needed to help partners fulfill their missions Play a secondary or even tertiary role when necessary in support of the success of partners in the region Work with various partners and organizations ensuring that future labor and training needs are well aligned with training being offered by educational institutions, state and local entities and others. Continue to build and maintain the APEX brand Take an active role in select community and professional organizations to build the brand, create solid relationships and foster strong partnerships with key stakeholders, influencers and decision makers Ensure that the APEX brand is one that is associated with adjectives such as integrity, trust, cooperation, commitment and an exceptional work product for the improvement of the economic and business climate throughout the region Reinforce the image and reputation of the APEX brand with clients, partners, key stakeholders and member/investors Maintain the financial integrity of APEX Maintain a solid balance sheet and ensure that revenues and operating expenses are in alignment with the annual budget

IV.

V.

VI.

VII.

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Work with the APEX accountant, and its auditor, to ensure that monthly statements are properly prepared and reviewed by the Executive Committee. Oversee the annual audit of the organization and report results in a timely manner Direct the ongoing effort to recruit and retain member investors Continually evaluate and look for ways to enhance APEXs revenues

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QUALIFICATIONS
The ideal candidate for this position is an entrepreneurial, goal-driven leader with a passion for creating and maintaining high quality job and wealth creation opportunities for their region. This individual must possess outstanding interpersonal and leadership skills. He/she must work at the highest levels of integrity, honesty and openness to create effective relationships with business prospects, investors and APEX partners. This individual will be a creative and effective problem solver, matching regional strengths with the needs of existing and new businesses. Leading and leveraging resources will be paramount to the ultimate effectiveness of the President/CEO position. A minimum of a Bachelors Degree is required with a Masters degree preferred. Executive level experience in business, education or economic development is required including a track record of successfully leading and growing an organization. Other essential skills and experience include: Big picture thinking skills, especially the ability to think strategically about achieving the regions future economic goals Proven track record of creative problem solving and innovation Experience working with and supporting a Board of Directors including leveraging the Boards talents and resources Politically savvy; skilled at working with business, civic and political leaders. Ability to be an externally-facing executive with exceptional skills in connecting and relating with a broad range of constituency groups Exemplary interpersonal skills including the ability, savvy and credibility to engage and interact with key leaders from the communitys businesses, government, nonprofit organizations, foundations and other target audiences. Strong marketing skills and the ability to develop and execute a targeted marketing initiative that defines and builds on the strengths of the region Demonstrated financial acumen and skills. Experience structuring creative financing packages that may include a wide variety of equity and debt instruments. Broad knowledge of the principles and practices of job creation and economic development. Experience working with international companies and cultures; comfortable in a global marketplace. Leadership experience and skills that produce positive actions, results and accountability. Ability to hire, train and motivate staff. Strong entrepreneurial instincts and initiative, coupled with effective management ability. The willingness, presence and ability to be the organizations face to the public, which includes being an effective communicator, a persuasive influencer, and a good listener Experience managing an investor relations program that is Board driven. The interpersonal dedication and style of engaging and motivating a dynamic volunteer base in a collaborative manner. Demonstrated commitment to promoting business and community growth as evidenced through volunteer work, civic appointments or employment

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COMPENSATION
The salary for this position is commensurate with individual experience and competitive with executive compensation at similar organizations.

FOR MORE INFORMATION, PLEASE CONTACT:

Rebecca Driscoll Principal 612-375-8841 rebeccad@keystonesearch.com

Because Culture Matters

KeyStone Search is a prominent Minnesota-based executive search firm with a special emphasis on corporate culture fit. KeyStone Search has specialized expertise in the recruitment of C-Suite leaders in general management, sales/marketing, financial, technical/operations, and human resources as well as non-profit executives.

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