SPIRIT LAKE - KAPCO was started in 1993 by Leo Kofoot. Assembly, inventory management and warehousing were the main components of the business for many years. In 2002, Kofoot's daughter Angela Chavez and her husband Tom purchased the business from him.

Over the past ten years, the Chavez's have watched the inventory management portion of their business increase, assembly drop, and pack and ship go through the roof. They put a lot of emphasis on pack and ship when they bought the business. "We saw that part of the business as having the greatest potential," said Tom. "We've had good success at growing that part of the business. It nearly doubled each of the first four years we started." They also added an eBay sales service to their Spencer location a few years ago; an interesting business that has steadily grown.

While they ship via FedEx, UPS, SpeeDee Delivery and freight, they also have the capability to receive packages and freight. Furniture, special construction materials and even snowmobiles have been delivered to their business.

"We're pretty creative and flexible," said Angela. And they need to be for some of the items they are asked to ship. She recalled barn cupolas and a bumper car that made its way to Nevada to race in the desert as some of the more interesting shipments.

The two buildings to the west of KAPCO are owned by Tom and Angela, but you wouldn't know it to look at them. They are leased to two businesses: Polaris and Intercept Industries, a Polaris sub-contractor. Intercept approached the Chavez's last fall and told them they needed an extra 10,000 square foot building, and fast. Working with Henningson Construction in Spencer, the agreement was signed the first week of November. Concrete was poured in two weeks, and the building materials were delivered in five weeks. "We're extremely impressed with the construction job," said Tom. The building was finished by January 31.

They worked with several local companies to complete the project; Phillips Electric, Midwestern Mechanical, Great Lakes Concrete and Bank Midwest all contributed. "We try to keep our business local as much as we can," said Angela. She also noted assistance with tax abatements from the Iowa Lakes Corridor Development Corporation and the City of Spirit Lake.

With the expansion, Intercept Industries took the opportunity to extend their lease for five more years and add to their staff. "They're a really good group," said Tom. Intercept is a wheel assembly company headquartered in Roseau, Minn.

Polaris has leased a building at KAPCO for over a decade. "They can do whatever they need to in that building with all the open space, away from the hustle and bustle of their normal production area," said Angela. When Polaris first acquired the Indian Motorcycle line, the KAPCO building is where the machines were stored.

KAPCO assists other businesses through their inventory management services. They are able to warehouse raw goods and packaging materials for companies that don't have the storage space available. Some companies have the items delivered to KAPCO, and KAPCO creates a schedule to bring the materials to the company as needed. "Their space should be dedicated to manufacturing," said Tom. "We work with their supplier, and free up a footprint on their floor by storing this bulky material at our site. It also frees up capital and creates a better cash flow for them." He noted Eaton Corporation and Metal Works as two companies that use their inventory management services.

KAPCO's Spirit Lake facility is located at 2601 15th Street, and the Spencer facility is located at 112 W 6th Street. Contact the Spirit Lake office at 712-336-2636, and the Spencer office at 712-262-0351.

Blankets, bibs, hats and more are available

Garden Babies of Alta creates custom products for babies and toddlers, including bibs, car seat covers, blankets, bedding and more.

ALTA - Erin Berentschot didn't know how to sew until five years ago, when her kids needed fleece hats. Her husband was the one to teach her. Her friend Kelli Pedersen had been sewing for years, and the two decided to get together to make baby blankets for friends and family.

Everyone told them they were good enough to sell, so they tested out the market at the Craft Fair at the Southpark Mall in Spencer in February two years ago. The test went well, and Garden Babies was created.

Since then, they have attended craft fairs in Algona, Emmetsburg, Aurelia, Cordyn, Inwood, Newell Fonda, Storm Lake Saint Mary's, Mothers of Preschoolers in Alta, and Trinity Lutheran Church in Alta.

 They have also broadened their inventory to include a multitude of items: bibs, burp rags, block towers, lovies, nursing covers, car seat tents, crinkle toys, crocheted hats, boy's ties, hair bows, wipe cases and changing pads.

With seven children between the two of them, Berentschot and Pedersen are busy ladies. They order fabric they like from local stores and online, and get together about once a month to cut the fabric for different items. Their children are often the reason they come up with new products, such as the tummy time mat for infants, and the tutus for toddlers.

 Berentschot and Pedersen truly believe in their products. The bibs have batting in the middle to absorb spills and dribbles, and have either cotton or flannel on the back. The blankets and lovies have either cotton, flannel, and ultra soft minky fabric incorporated into them, and car seat tents can have the same options on the back.

The pair also makes custom bedding sets that include a dust ruffle, sheet, crib blanket and bumpers. "The bedding is the most unique thing we make," said Berentschot. Creating custom bedding can take up to three weeks to complete.

"There are many products made in the Iowa Lakes Corridor and we are proud to help showcase them as we learn about them," said Kathy Evert, president and CEO of the Iowa Lakes Corridor Development Corporation.

Garden Babies' Facebook page is the main way they get their products out. On Facebook they have pictures of all their products in many different fabrics. A price list of all their items can be found under the Notes. They can also be contacted at gardenbabies@hotmail.com.

Congressman Steve King met with a group of delegates from the Iowa Lakes Corridor region during the annual DC Summit.

Each spring, a group of delegates from the Iowa Lakes Corridor region head to Washington, D.C. to meet with members of the legislature. This year, 10 delegates, led by Shaun Arneson, Vice President of the Iowa Lakes Corridor, made the trip. The delegates this year are business leaders, elected officials, and two high school seniors.

The group met with Congressman Steve King, Congressman Tom Latham, Senator Tom Harkin, Senator Chuck Grassley, Congressman Dave Loebsack, Chiefs of Staff for Congressmen Bruce Braley and Leonard Boswell, and Molly Harris of the Federal Aviation Administration. The trip is beneficial for strengthening relationships with Iowa's delegation, while advocating for priority projects in the Corridor region.

The delegates discussed several topics at each meeting. The transportation issue includes the long-term surface transportation reauthorization bill. Priority regions for the Corridor include Iowa Highway 86 (to be reconstructed in 2013); Iowa Highway 9 from Estherville to Spirit Lake (completion postponed beyond 2013); completion of 4-lane construction on US Highway 20 (Rockwell City to US Highway 71 by 2013; remaining 40+ miles uncertain).

The infrastructure issue discussed was to provide direct funding to cities, counties and states for major infrastructure projects, especially those that are federally-mandated. Specifically, the Corridor discussed the issue of the Spencer combined sewer overflow and rehabilitation program intent to meet the EPA Clean Water Act. They requested funding to help offset the cost so the rates don't continue to increase.

In their meeting with Harris of the FAA, they discussed Congress's approval and reauthorization the FAA. This will allow the community of Spencer to continue their efforts to be eligible and compete for a Unmanned Aircraft System Test Site included in the FAA reauthorization bill. There is a 60 day comment period, and they anticipate publishing a RFP by July with the first five to six sites selected in December. The Corridor will continue to monitor the process.

Another topic of discussion was the National Guard's contract with Polaris. The Corridor group asked for funding of the National Guard's September 2010, five-year contract with Polaris Industries for the fielding of All Terrain Ultra Light Tactical Vehicles to all 50 states and 4 territories, to conduct homeland and disaster relief support and sustainment missions. These ATULTV vehicles are manufactured in Spirit Lake, and directly benefit the regional economy in terms of jobs and investment.

The Corridor group asked the delegates to renew the production tax credit for wind energy development for multiple years, with a three year minimum. The Iowa Lakes Corridor region has three new wind farm developments still on hold; the projected investment of these three developments is estimated at over $500 million. The region also has one of the premier wind energy technician training programs in the United States at Iowa Lakes Community College. We are working to add other types of businesses and jobs in the region to build upon this industry, but it is in jeopardy or is uncertain without the renewal, long-term, of the production tax credit.

Workforce issues, such as training and retraining, tech programs in schools, and expanding tech training at community colleges was discussed. The Corridor encouraged the federal government to provide necessary resources for education, training and retraining at the state and regional level. The legislators recommended that the Corridor continue to work with the local community colleges and universities.

The last topic to discuss with the legislators was housing in the Corridor region. It is estimated, based on surveys and housing needs assessments conducted in each of the county seat communities in the Corridor region, there is a need for over 1500 additional housing units by 2020. The Corridor group encouraged the delegation to fund HUD Home and CDBG programs to help address the new challenges imposed on local banks that are making home mortgages more difficult. The Corridor requested examples and models that have been successful in other districts; we will work with IFA, HUD, and USDA on housing resources.