Illinois-based Agracel Inc. focuses on 'agurban' development, and works to bring a variety of industries to its hometown.

When CEO Jack Schultz founded Agracel Inc. in 1986, the company focused on farmland investment. After a few years, it moved into development, focusing on work in Schultz's hometown of Effingham, Ill. According to President Dean Bingham, the company has grown significantly, and now has properties in 12 states, although the majority of its projects are still based in Illinois.

Its operations also include a public warehousing company with three locations in Illinois and a short line railroad. Agracel continues to develop property in Effingham and Greenville, Ill., and considers itself the premier “agurban” developer in the Midwest. “Agurban is a trademarked word that we developed,” Bingham says. It's one of the topics in Jack Schultz's book, Boom-town USA: The 7-1/2 Keys to Big Success in Small Towns.

As Bingham explains, the book outlines keys to making small towns successful. “It was basically formed from his different travels, looking at different communities,” Bingham says.

“It looks at attributes, entrepreneurship, building brands and vision. The book is somewhat of a how-to for improving small towns and is targeted for community leaders. For the company, it has built relationships, and we hope to gain some development opportunities from that exposure.”

In 2005, Schultz was named Ernst & Young's Entrepreneur of the Year, and received the Beta Gamma Sigma Medallion for Entrepreneurship in 2006. The company's name was chosen to honor the values of the farming community. “Farmers are down to earth people, merging cutting edge technology in a very tough business,” the company explains. “They survive on razor-thin margins, have to react instantly to unpredictable changes, control their resources meticulously, and constantly innovate to solve problems and improve their operations.

“Farmers build long-term relationships,” it adds. “They treat their land as a long-term steward, concerned about the next generation and generations after. If you took away the words farms, farmers, crops and agriculture, it would sound like us. So even though there are better names than Agracel, we've decided to keep it because it ties us to the land and the good things that farmers stand for. Excellence not only in agriculture, but in everything they do.”

Rosebud Theater
One of the company's premier projects is the Rosebud Theater in Effingham. “We formed a pool of local investors to build a Branson-style entertainment theater,” he says.

The $6 million facility will include 1,556 seats and is scheduled to bring in 60 entertainment shows per year, “from country/western to southern gospel to comedians and rock shows,” he explains.

“This is a unique project because we're a small town, and we went out and raised money through a number of people in the community. They're all taking a small piece in it. We have maybe 30 people working to bring something like this to Effingham.”

Agracel hired a company based in Branson, Mo., to help it design the facility. The Rosebud Theater is scheduled to be completed in September or October of this year, and will begin booking shows in the near future, Bingham says.

Firefly Restaurant
Nearby, the company built Firefly Grill, a fine-dining restaurant. “That's a unique story,” Bingham says. “A local girl had gone away and married a chef, and they were operating a restaurant in San Francisco. We convinced them to come here and start a restaurant. It's the best restaurant between St. Louis and Chicago. We hope to bring in people to eat at the Firefly and see a show at the Rosebud.”

Agracel acts as owner and landlord for many of its properties. For Firefly and Rosebud, however, it acts as a managing partner of the respective LLCs.

Pinnacle Foods
The company is working on another development project with Pinnacle Foods, in which Agracel has purchased an old industrial building.

The building was previously a plant owned by the Quebecor printing company and employed 1,000 people before it was shut down, Bingham notes. “We've turned it from a vacant eyesore, redeveloped it and signed a lease with Pinnacle Foods to operate a distribution center out of the facility,” he says. “We are adding 100,000 square feet for a total of 645,000 square feet.

“They'll do their Midwest distribution out of this facility,” he adds. “They anticipate moving some product in as early as April, and the project will be completed in June.”

Small-Town Values
Bingham describes Agracel's culture as family oriented. “Family is very important to all of us,” he says.

“We have small-town values. Our word is our bond. We do a lot of handshake agreements - of course, we have to get the paperwork afterwards, but our reputation is paramount. We do a lot of business that's repeat business because we did what we said we were going to do. It's a fun group.”

In 2003, the company set a company-wide financial goal, and took everyone in the office and their spouses on a cruise when the goal was met.

The company has set another goal for this year, and will take the group on another trip in 2008 if that challenge is met, he explains.
Bingham says the future looks good for Agracel. “We have a good backlog of projects right now, and we continue to expand our presence,” he says. “Jack, in his speaking with the book, gives us more exposure nationwide. We have a good, core group of people who are really dedicated, enjoy coming to work and like to make things happen.”