Some basic math on the Affordable Care Act

How were you at math word problems in school? This one ought to be easy enough.

A school district has 1,000 full-time employees and spends $4,800 a year on each of them for group health insurance. If the school district doesn’t pay for this insurance, it faces an annual fine of $3,000 per employee. How much can the school district save each year by dropping its group health insurance?

Brian McKellar

The answer is $1,800 per employee. Multiply that by 1,000 and you have $1.8 million in savings.

Idaho School districts are some of the largest employers in the state, yet Idaho pays schoolteachers some of the lowest salaries in the nation, starting at $31,248.00 and capping at $57,782 after 25 years of service. Although it’s exciting that there is a plan to raise teachers’ base salary to $40,000 over the next five years, according to a study done in 2013 a family of four in Bonneville Country requires $54,939 to “get by.”

Unless both parents work, Idaho teachers still have to struggle to make ends meet. In fact, I personally don’t know any teacher whose spouse also doesn’t work.

Wouldn’t it be great if somehow we could put some extra cash in their wallets?

The Affordable Care Act stipulates that any company with more than 100 employees is required to offer health insurance. If it doesn’t, it faces a maximum penalty of $3,000 per employee. But based on the clients who have approached us, school districts are paying much more than that simply to cover their employees. Incredible as it sounds, by dropping group health coverage, even with the $3,000 maximum penalty figured in, some school districts could easily save more than a million dollars and give every teacher a raise.

This doesn’t even address coverage for families. Many school districts contribute $0 towards family health insurance, and some teachers are paying more than $600 a month on their school group plans.

The ACA has made it easier than ever for people to qualify for inexpensive health coverage. A family of four in Bonneville County earning $54,939 (the “get by” number from above) would qualify for a $380 monthly tax credit, making the price of the second lowest silver-level exchange plan $336.82 a month.

Do the math. Show your work. Class dismissed.

Brian McKellar is an independent agent with McKellar Insurance and a member of the Square One business development group.

Freddy's Frozen Custard plans to open Wednesday

The scene Monday morning at Freddy's, as training enters the home stretch.

The Freddy's Frozen Custard and Steakburger at 355 North Woodruff Avenue in Idaho Falls is looking at opening Wednesday morning at 10:30. Training has been taking place this past week in preparation, and anyone interested in going to work there can apply online at www.freddysusa.com.

Juicy burgers and fries!

The store’s hours will be 10:30 a.m. to 10 p.m. Sunday through Thursday and 10:30 a.m. to 11 p.m. Friday and Saturday.

Founded in Wichita, Kan., in 2002, Freddy’s began franchising two years later and has since been recognized by Technomic — an online food industry research and consulting firm — as the seventh fastest growing burger chain in the U.S. with sales of less than $200 million. Between 2012 and 2013, the company saw a $42.7 million jump in sales, an increase of 41.8 percent.

While frozen custard is featured in the restaurant’s name, at the heart of the operation is its 1950s-style burgers. Last year, the company's burgers ranked ninth in a survey conducted by Consumer Reports of the Best and Worst Fast-Food Restaurants in America.

“The savory steakburger is inspired by the ’50s style staple and reminiscent of an era focused on quality, cooked-to-order meals that bring families and loved ones together,” the company's Web site says.

Dunkin' Donuts in 2015? Chain plans major expansion

Screenshot from the Dunkin' Donuts Web site

I've been told by a source I trust that it's only a matter of time before Dunkin' Donuts comes to the Idaho Falls area, but it's been a waiting game.

The Quincy, Mass.-based chain has 10 stores open in the Salt Lake City-Ogden area, but none in Idaho so far. Conventional wisdom would lead one to think that Boise is where the first one will go, but who knows?

The reason I am writing about this is this article that ran Tuesday in Business Insider: Dunkin' Donuts is Expanding Like Crazy. Rest assured that I have my sources and will be keeping on top of this one.

New Year's Day 1965: '12 hours of color' on KIFI

NBC Sportscaster Jim Simpson

Some of you are probably aware that I write the Looking Back column that runs every Thursday in the Post Register. Examining the papers from late 1964, I was intrigued by an ad posted by KIFI. What different times we lived in! All the bowl games were played on the same day, and none of them had corporate sponsorships. Color TV was still a novelty. In fact, I'd be curious to know if there's any way of finding out how many homes in Idaho Falls actually had color TVs.

Anyway, here is what ran in today's column:

50 years ago
KIFI Channel 8 was advertising "12 Hours of Color" on New Year's Day 1965. The fun on the NBC affiliate was to start at 9 a.m. in Miami with the Orange Bowl parade, hosted by Dennis Weaver. At 9:30 a.m. came the 76th Annual Tournament of Roses Parade, hosted by Lorne Greene and Betty White. At 11:45 a.m. came the conclusion of the Sugar Bowl (Syracuse vs. Louisiana State), followed at 2:45 p.m by the conclusion of the Rose Bowl (Michigan vs. Oregon State), then at 5:45 p.m. the conclusion of the Orange Bowl (Alabama vs. Texas), then a sports roundup at 8:30 p.m. featuring host Jim Simpson.

2014 was an active year for development

Construction work at Sand Creek Commons, where Cabela's is being built and Hobby Lobby is slated to go.

Here we are at the end of 2014, with the temperature below zero and little to report in the way of new development. Let’s take a look at the top business stories of the year.

Cabela’s, Hobby Lobby
For years, everyone has known the southeast corner of Sunnyside and Hitt was prime for commercial development. This year was when things got rolling in earnest, first with the announcement that Cabela’s would be building a store, then in September with confirmation that Hobby Lobby was coming. The third anchor tenant is Rigby-based Broulim’s. Other tenants include D.L. Evans Bank and Mountain America Credit Union.

Also worth noting, the cities of Idaho Falls and Ammon came up with an mutually acceptable agreement in September to share the cost of widening Hitt Road south of the Sunnyside intersection, estimated at $2 million. Because Hitt Road lies within Idaho Falls city limits, this has not always been an easy point of negotiation over the past 20 years.

Growth at Snake River Landing
This year has seen a massive amount of development at Snake River Landing, south of Pancheri Drive. In early summer, Scientech moved into its approximately $9 million, 110,000-square-foot facility. Brandon River Apartments opened a complex of 48 one- and two-bedroom apartments, and residential development by Kartchner Homes proceeded as well. On the retail side, Bill’s Bike and Run and McKenzie River Pizza opened, and foundation work began on a Home2 by Hilton hotel just south of Stockman’s Restaurant.

New Car Dealerships
Teton Toyota gained Teton Volkswagen for a neighbor in June, and in the Smith Group opened its Honda and Chevrolet dealerships across Sunnyside Road to the southwest, on 17 acres. Each dealership is just shy of 30,000 square feet. Owner Stafford Smith said he plans to have a grand opening in spring 2015, but is happy to show the place to guests now.

Opting to stay in Idaho Falls, Broadway Ford began work on a new dealership that will include an 8,196 square-foot showroom and a parts and service department of 21,429 square feet. Owner Mont Crnkovich and his management team had been talking for several years about a new showroom and service department, with a more efficient layout out and up-to-date amenities. The building permit valuation from city of Idaho Falls is $4.8 million.

Melaleuca Moves Headquarters
Melaleuca, Inc., one of the county’s major employers, moved its headquarters from South Yellowstone to its new $50 million complex near Interstate 15 Exit 113. A grand opening is likely to be held sometime in early 2015.

Camping World
If you’re driving over the new Pancheri overpass, you’ll notice a lot of dirt being moved to the southwest. That would be Kentucky-based Camping World, which is developing 12 acres. The company and its Boise developer, Zoke LLC, signaled in May they wanted to develop the land.

Because it was designated for high-density residential development in the city of Idaho Falls’ comprehensive plan, the City Council had to take action before annexation could take place and work could get started. Once that happened, Camping World both the OK Trailer RV dealership in Shelley. An opening is tentatively planned for May.

Guns and Gear
The $3.5 million Guns and Gear, opened in November, and while it has given firearms enthusiasts something unlike anything they have ever seen here its broader effect may be on the surrounding land.  Dixie and Shane Murphy and their partner, Ryan Later, spent $2.8 million on the two-story, 15,000-square-foot building, which overlooks the Snake River Landing development, and $700,000 on equipment.

This provided the impetus for the city of Idaho Falls to establish the 55-acre Eagle Ridge Urban Renewal District. What this will allow is tax increment financing through the Idaho Falls Redevelopment Agency. Put simply, while taxes are collected on the land the way they always have been, money collected on improvements to the land goes to the Redevelopment Agency to be spent on roads, water, sewer and power lines in the district. Snake River Landing, Taylor Crossing on the River and the hotels on Lindsay Boulevard all lie within urban renewal districts.

D Street Underpass opens
Does anyone notice how much easier it is to get into downtown Idaho Falls since the city opened the D Street Underpass in August? The new structure provides two westbound lanes, one eastbound lane, a wide sidewalk and a traffic signal that allows left-hand turns.

New Restaurants
Restaurants come and go, but one thing that remains constant is the interest in them shown by BizMojo Idaho readers. While there was nothing on the Olive Garden or Chick-fil-A level to provide excitement in 2014, there were some new entries into the market. Gator Jack’s moved into the old Winger’s location on Hitt Road. Togo’s Sandwiches opened in Rexburg and is poised to open its first Idaho Falls store in January. Noodles & Co. is also coming to Hitt Road, and Freddy’s Frozen Custard and Steakburger is poised to open on Woodruff Avenue in early January. Downtown, Alchemy Bistro has moved in to where Il Castello used to be, and the Park Avenue Grill has reanimated the long-dormant location at 950 Park Avenue.




Comment sought on long range transportation plan

Everyone's favorite intersection, 17th Street and Hitt Road.

Next time you're waiting at a traffic light and muttering under your breath, think about this. The Bonneville Metropolitan Planning Organization is updating its long range transportation plan and seeking public comment. You do have a voice.

The survey can be found here: https://www.surveymonkey.com/r/BMPOTransportationSurvey2015. Even if you are waiting at the Hitt Road and 17th Street intersection, please do not attempt to fill it out on your smart phone. Do it when you get to where you're going. The deadline for responses is Jan. 16.

In case you are curious, here are two of the 15 questions:

• In your opinion what will be the three most significant transportation challenges in our region in the next 25 years? 
• If you only had $100 to spend on funding transportation improvements, how would you prioritize projects? 

The plan’s purpose is to identify existing and future transportation deficiencies and problems, rank projects in order of priority, and develop policies and strategies for preserving and maintaining the transportation network. Federal transportation policy calls for the plan to be updated every every five years. If it isn’t, Idaho misses out on federal highway funding.

The survey can also be be found at www.bmpo.org, or a hard copy can be obtained by calling the BMPO office at (208) 612-8509.

Timing is everything, so make a plan

Tanyan Davies-Wall

The new year is almost here, which means it’s time to make some plans. If you are buying or upgrading a home, here’s something to think about: Mortgage Professional America Magazine reports that in 2015 rates are expected to rise to an average of 4.6 per cent on a 30-year fixed-rate mortgage, up from around 4 percent, where they are right now. What's more, those rates are expected to reach 5 percent by the end of 2015.

With interest rates on the rise, understanding how they affect your payment is crucial to your decision making. The first thing that I advise clients to do is set a budget based on a payment they are comfortable with, not on a home price they think they can afford. The price of a home means little compared to the cost of covering the debt service.

For example, if you can comfortably afford a $1,200 monthly house payment, right now you could purchase a $200,000 home once you figure in taxes and insurance. But if the interest rate rises to 5 percent this year, the same payment will only afford you a $178,000 home. We’re looking at a negative impact on your buying power of nearly 10 percent.

Understanding how interest rate fluctuations impact buying power will allow you to make educated financial decisions.

Also, remember that you will always make more money when there is “blood in the water.”

The adage is that investors make their highest returns when everyone else is losing money. Buying a home is no different. I tell buyers that if they are looking for a good deal, winter is often the best time to find one. People needing to sell their homes tend to become more desperate in the winter, knowing that it is harder to sell a home when there is snow on the ground.

If you are planning to buy in the near future, you may want to leverage your buying power and the time of year to get the best deal. If winter house hunting isn’t your thing, the very least you can do is get your ducks in a row. I suggest working with a licensed Realtor and a reputable lender to ensure that you are ready to move come spring time. This affords you two things: it allows you to continually see what the real estate market is doing and the ability to time interest rates to improve your buying power.
Tanyan Davies-Wall is an agent with Voigt-Davis Realtors and a member of the Square One business development organization.