Research Book
Transcription
Research Book
Stewart Mills (MN-08) Research Book The following report contains research on Stewart Mills, the Republican candidate in Minnesota’s 8th District. Research for this research book was conducted by the Democratic Congressional Campaign Committee’s Research Department between August and November 2014, with additional research completed in February 2016. By accepting this report, you are accepting responsibility for all information and analysis included. Therefore, it is your responsibility to verify all claims against the original documentation before you make use of it. Make sure you understand the facts behind our conclusions before making any specific charges against anyone. Table of Contents Introduction / Executive Summary ........................................................ 3 Key Moments on Video ......................................................................... 32 Biography ............................................................................................... 39 Personal Information ............................................................................. 48 …Personal Finance ................................................................................ 48 Professional Career................................................................................ 77 …Mills Properties, Inc........................................................................... 79 …Mills Fleet Farm ................................................................................. 81 …Mills Automotive Group.................................................................. 110 …Mills Gas Mart ................................................................................. 116 Political Career .................................................................................... 119 Wrong for Minnesota .......................................................................... 138 Immature Behavior.............................................................................. 142 Abortion and Family Planning Issues ................................................ 152 Budget and Economy Issues ................................................................ 155 Environmental Issues .......................................................................... 158 Foreign Policy Issues ........................................................................... 162 LGBT Issues ......................................................................................... 167 Gun Issues ............................................................................................ 168 Health Care Issues ............................................................................... 176 Immigration Issues .............................................................................. 187 Labor Issues ......................................................................................... 189 Senior Issues ......................................................................................... 194 Tax Issues ............................................................................................. 196 Trade Issues.......................................................................................... 200 Women’s Issues .................................................................................... 205 Appendix I – Campaign Finance ........................................................ 207 Appendix II – Paid Media Summary.................................................. 211 Appendix III – Mills Fleet Farm Court Cases ................................... 223 Appendix III – Mills Auto Cash for Clunkers ................................... 232 2 Introduction / Executive Summary Mills Fleet Farm History Stewart C. Mills, Sr. Founded Mills Companies In 1922; Started With Auto Dealerships And Then Established An Oil Company. “1922: Mills Company Founded. Brainerd, MN. Mills companies are founded when Stewart C. Mills Sr. buys the Lively Auto Company in Brainerd selling Chevrolets and Hupmobiles … 1923: Mills starts Crow Wing Oil. Mills starts Crow Wing Oil Company, the region’s largest pure oil and bulk oil distributor and gas station operator.” [Mills Fleet Farm, “Our History,” accessed 1/15/16] First Fleet Wholesale Supply Store Opened In Marshfield, Wisconsin, In 1955. “1955: First Fleet Wholesale Supply opens. Marshfield, WI. Stewart C. Mills, his sons Stewart, Jr., and Henry C. Mills II open the first Fleet Wholesale Supply in Marshfield, WI, to sell merchandise direct to farmers.” [Mills Fleet Farm, “Our History,” accessed 1/15/16] Mills Fleet Farm Building A New Store In Hermantown, Minnesota, Expected To Open In 2016; Expanded The Chain To 36 Locations In Minnesota, Wisconsin, Iowa, And North Dakota. “Site work for the new 183,000-square-foot Mills Fleet Farm store in Hermantown continued in earnest this past week. By the time the preparations are complete, an estimated 200,000 cubic yards of material will have been moved. Fleet Farm Vice President Stewart Mills III said he expects the store's precast concrete walls to be tilted into place and reinforced with steel in the next week or two. ‘It's imperative we get the store enclosed before winter, and fortunately, we've been able to stay on schedule so far,’ Mills said. He said he hopes to open the new Hermantown store by late summer or the early fall of next year. It will be the 36th retail outlet in the Brainerd-based chain. Mills Fleet Farm most recently opened a store this March in Mankato, Minn. The company now boasts stores in Minnesota, Wisconsin, Iowa and North Dakota.” [Duluth News-Tribune, 9/14/15] Mills Fleet Farm Was Run By Members Of The Mills Family. “The Mills Companies were started in 1922 in Brainerd MN, by Stewart Mills, Sr. with an emphasis in the automotive industry. The Fleet Farm component of the Mills Companies was added by Stew Jr. and Hank Mills in 1955 as outgrowth of Stewart Sr.’s auto parts stores. Mills Fleet Farm is a growing, closely held, multi-generational family business based out of Brainerd with 32 retail locations and on the web at www.fleetfarm.com. Today the Mills Companies are headed by Henry Mills II and Stew Mills Jr., assisted by their children Charlie, Andrew, Marisa and Stewart.” [Stewart Mills Facebook, “About,” accessed 1/16/15] October 2015: Announced That Mills Fleet Farm Was In The Process Of Being Sold To New Owners; Employed 6,000 People As Of October 2015 And Had More Than 30 Stores In Four States October 2015: Announced That Mills Fleet Farm Was In The Process Of Being Sold To New Owners; Currently Employed 6,000 People And Had More Than 30 Stores In Four States. “Mills Fleet Farm may have a new ownership later this year or early in 2016. Wednesday, Mills Fleet Farm confirmed it is in the process of looking at a large pool of business suitors to find the right one to take the company to the next level of growth for the future. The family company, which makes its headquarters in Brainerd, first started serving customers as Fleet Wholesale Supply in 1955 and now employs about 6,000 3 in Minnesota, Wisconsin, Iowa and North Dakota. The company's 36th store is currently under construction in Hermantown, Minn., near Duluth and will continue for a planned 2016 opening.” [Forum News Service, 10/07/15] Mills: “We Have Several Interested Parties … We Care Very Much About Our Employees And We Want To Make Sure Whoever The New Owners Are They Take Very Good Care Of Them.” “‘We have several interested parties, but we are sorting through those interested parties to make sure they are the best fit for us organizationally and also the best fit for our employees,’ Mills said. ‘We care very much about our employees and we want to make sure whoever the new owners are they take very good care of them. (The employees) have taken very good care of us.’” [Forum News Service, 10/07/15] Said It Was “A Painful Decision For The Mills Family” But The Right One For The Company’s Long-Term Future; Said Capital From A Larger Company Was Necessary To Continue Mills Fleet Farm’s Growth Said It Was “A Painful Decision For The Mills Family” But The Right One For The Company’s Long-Term Future; Said Capital From A Larger Company Was Necessary To Continue Mills Fleet Farm’s Growth. “Mills Fleet Farm's employees learned of the news in company meetings hosted at each location last Friday. Mills said the company reached a point where, in order to continue to grow at a speed to be competitive, it needs to look for outside sources for capital and can't continue to finance growth solely through its own checkbook. Mills said they could sustain a much slower growth rate, but they know the business potential is there for more and the decision to move forward was made by the family as a group. ‘For the long term, this is what is right for the business, this is what is right for our employees,’ Mills said. ‘It's a very, very painful decision for the Mills family.’” [Forum News Service, 10/07/15] Said He Would Not Be Involved With The Company Until The Sale Was Completed Next Year; Denied That The Sale Was Linked To His Political Goals Said He Would Not Be Involved With The Company Until The Sale Was Completed Next Year; Denied That The Sale Was Linked To His Political Goals. “Mills said he will no longer be involved in the company as the transaction is completed, probably sometime next year. The potential sale of the business, he said, has nothing to do with his political aspirations.” [Forum News Service, 10/07/15] Planned To Get Involved In “Very Quiet Philanthropy, But Also Very Loud Public Service” Since He Was Leaving The Company Planned To Get Involved In “Very Quiet Philanthropy, But Also Very Loud Public Service” Since He Was Leaving The Company. “Discussions on the company's future predate his interest in politics, Mills said. He ran for the Minnesota 8th District Congressional seat in 2014 and expects an official announcement on his intentions for the next election within the next two weeks. Mills said his personal intention for his future is to engage in ‘very quiet philanthropy, but also very loud public service.’” [Forum News Service, 10/07/15] Mills And Other Shareholders Stood To Profit As Much As $1.1 Billion From The Sale 4 Mills And Other Shareholders Stood To Profit As Much As $1.1 Billion From The Sale. “According to Mergermarket.com, privately held, Brainerd-based Mills generates about $130 million annually in operating profit. Solid retailers are selling for up to nine-times earnings before interest, taxes and depreciation. That would gross $1.1 billion for CEO Stewart Mills III and other shareholders.” [Star Tribune, 10/17/15] January 2016: KKR, A Private Equity Firm Based In New York City, Bought Mills Fleet Farm For An Estimated $1 Billion January 2016: KKR, A Private Equity Firm Based In New York City, Bought Mills Fleet Farm For An Estimated $1 Billion. “Kohlberg Kravis Roberts & Company will buy Mills Fleet Farm, a familyowned discount retailer with stores in the Midwest, for undisclosed terms in its first deal of the year and one that builds on its portfolio of retail companies. Mills Fleet Farm, based in Appleton, Wis., and Brainerd, Minn., sells a range of goods, including clothes, children's toys, auto parts, firearms and farming supplies through 35 stores in Minnesota, Wisconsin, Iowa and North Dakota. It was founded in 1955 by Stewart Mills Sr. and has been run by his sons, Henry Mills II and Stewart Mills Jr. The founder's grandson, Stewart Mills III, is running for Congress in Minnesota. Hugh Leasum, who is on Mills Fleet Farm's executive team, is expected to stay with the company after the deal closes. The family will retain a minority stake … Mills Fleet Farm said last fall it was exploring a sale, looking for new capital to help expand. Earlier reports said Kohlberg Kravis paid about $1 billion.” [New York Times, 1/06/16] Estimated That KKR Bought Mills Fleet Farm For More Than $1.2 Billion, Including Debt. “Buyout firm KKR & Co Lp is in the lead to acquire U.S. outdoor retailer Mills Fleet Farm for more than $1.2 billion, including debt, according to people familiar with the matter, defying a slowdown in private equity dealmaking.” [Reuters, 12/10/15] Exact Terms Of The Sale Were Not Disclosed But Value Of Sale Was Based On Estimates. “Family-owned Mills Fleet Farm has agreed to sell to New York-based KKR, one of the country’s largest investment concerns that has holdings in various industries totaling about $100 billion. Terms of the deal, expected to be announced Tuesday, were not disclosed. However, after the Mills family put the privately held chain of 35 stores up for sale last fall there was speculation in the investment trade nationally that it would fetch in neighborhood of $1 billion. Reuters last month cited unnamed sources putting a likely price tag at more than $1.2 billion, including debt.” [Star Tribune, 1/05/16] Mills Fleet Farm Employed 6,500 Full And Part-Time Workers. “Mills Fleet Farm, which doesn’t publicly disclose sales or results, operates its stores in rural towns and suburbs of Minnesota, Iowa, Wisconsin and North Dakota. It employs 6,500 full- and part-time workers, including about 75 at its corporate office in Brainerd. It also employs several hundred employees in merchandising and operations in Appleton, Wis., said Hugh Leasum, a senior executive of Mills who will remain with the company.” [Star Tribune, 1/05/16] Said He Was Saddened About The Sale Of His Family’s Business. “Stewart Mills III told WCCO’s Pat Kessler recently that he was saddened by the family’s sale. Business experts say it is rare for a family business to maintain control beyond several generations.” [CBS Minnesota, 1/05/16] 5 KKR Said They Would Invest In Opening More Stores As Well As Adding Infrastructure And Jobs KKR Said They Would Invest In Opening More Stores As Well As Adding Infrastructure And Jobs. “‘We anticipate investing significantly in the business, adding infrastructure, stores and local jobs,’ Taylor said in a statement. He added that KKR would ‘remain committed to Mills Fleet Farm’s founding values — and those shared by KKR — of honesty, integrity, hard work, service and loyalty to our customers and partners.’” [Star Tribune, 1/05/16] Said Mills Fleet Farm Needed More Capital To Build More Stores And Upgrade Their Warehouse. “The family has declined to comment to the Star Tribune since the business went up for sale last fall. Stewart Mills III, a third-generation executive, told the Brainerd Daily Dispatch in October that the retailer needed deeper pockets to expand in order to add stores and update the company’s warehouse. He also said the distribution network needs updating and investment. Stewart Mills III is a grandson of the founder and is making a second run for Congress in the Eighth District.” [Star Tribune, 1/05/16] Mills Fleet Farm Sought Additional Capital To Expand Their Stores Outside Of The Midwest. “Despite the company’s 60 years of success, Mills Fleet Farm did not have the necessary resources to expand beyond the Midwest. That is why company owners decided the best thing to do was put the chain up for sale. New York investment firm KKR announced Tuesday it had reached a deal to acquire Mills. But the challenge for KKR will be navigating the needed changes while not alienating the chain’s loyal customer base.” [CBS Minnesota, 1/05/16] KKR Also Owns Academy Sports, Outdoors, US Foods, And Toys “R” Us Stores. “The private equity firm also owns stakes in Academy Sports and Outdoors of Katy, Tex.; US Foods in Chicago; and Toys ‘R’ Us of Wayne, N.J. … Nathaniel H. Taylor, the head of Kohlberg Kravis's consumer retail group in the Americas, said the firm would invest in Mills Fleet Farm to add infrastructure and stores.” [New York Times, 1/06/16] Mills Family Still Retaining A Small Ownership Stake In The Company And Members Of The Family Were Expected To Keep Offices And Serve As Advisers Mills Family Still Retaining A Small Ownership Stake In The Company And Members Of The Family Were Expected To Keep Offices And Serve As Advisers. “The Mills family will retain a small ownership stake in the company. Some Mills family members are even expected to maintain offices and work as advisers.” [CBS Minnesota, 1/05/16] KKR History KKR Described As An Investment Firm That Manages Private Equity, Energy, Infrastructure, Real Estate, Credit Strategies, And Hedge Fund Investments KKR Described As An Investment Firm That Manages Private Equity, Energy, Infrastructure, Real Estate, Credit Strategies, And Hedge Fund Investments. “KKR is a global investment firm that manages investments across multiple asset classes, including private equity, energy, infrastructure, real estate, credit strategies and hedge funds. As investors with an industrialist vision, we aim to generate 6 attractive investment returns by following a patient and disciplined approach, employing high-quality people, pursuing the highest standards of excellence, and aligning our interests with those of all our investment partners.” [KKR, “KKR Today,” accessed 1/12/16] September 2015: Managed $98.7 Billion In Assets. [KKR, “KKR Today,” accessed 1/12/16] January 2016: KKR Recommended Holding More Cash Than Stocks Due To Potential Risks, Said They Anticipated 2016 Would Be “Chaotic.” “For the first time in five years holding cash could provide better returns than other assets as risks grow for global stocks, according to KKR & Co., the private equity firm that correctly predicted the global stock rebound last quarter. KRR’s Global Macro & Asset Allocation team recommends its clients hold 7 percent of their assets in cash, up from 1 percent in September, according to its 2016 outlook report posted on its website. It also lowered holdings of global equities to 51 percent from 55 percent, marking the first underweight rating since 2011. ‘Unfortunately, as we look ahead, we do not see 2016 as a less chaotic year,’ the KKR team, led by Henry Mcvey, wrote in the report. ‘We want to create a cash buffer at the start of the year that we can deploy amidst any downdraft in risk assets.’” [Bloomberg, 1/12/16] KKR Specialized In Leveraged Buyouts 1995: Leveraged Buyouts Had Become Less Common And Were Characterized As Part Of Wall Street Decadence Of The 1980’s. “Once the rage of Western capitalism, leveraged buyouts have lost their glamour and much of their respectability. Suggest an LBO today as a healthy way to create value, and polite company outside of Wall Street will assume you are just trying to stimulate lively conversation. Propose it as a means of improving operating performance by restoring strong, constructive relationships among owners, managers, and other corporate stakeholders, and you may be viewed as a refugee of the 1980s, deluded by the decade of greed.” [Harvard Business Review, May-June 1995] Leveraged Buyouts Became Known For Resulting In Layoffs And Cuts In Research Spending. “It’s easy to see why LBOs have developed such a negative image. Even when they were booming, critics complained about ‘paper entrepreneurs.’ And when the boom faded, a wave of bankruptcies ensued. Since 1987, scores of companies that had been acquired in highly leveraged transactions and that managed more than $65 billion in assets have filed for bankruptcy. The spectacular fall of Drexel Burnham Lambert and junk-bond pioneer Michael Milken added to the perception that the LBO wave had been whipped up and sustained by unscrupulous financiers who enriched themselves at the expense of others. Harrumphing members of Congress held hearings. Soon, a chorus of I-told-you-sos from LBO critics and fingerpointing in the savings-and-loan and banking industries turned leverage into a dirty word. Even the LBOs that ‘worked’ were dismissed as good luck or, more often, the result of deep and painful cuts in employment, investment, and R&D spending.” [Harvard Business Review, May-June 1995] KKR Founders Pioneered Leverage Buyouts Jerry Kohlberg Honed The Leverage Buyout Model Where An Equity Firm Bought Companies With Borrowed Money And Then Sold Them For A Profit After A Few Years. “He discovered at Bear Stearns that a small circle of investors could buy a company with borrowed money … use cash flow to pay down the debt … and then sell the company or take it public at a big profit. He had unwittingly 7 stumbled upon the essentials of leveraged buy-outs or, as they are known today, private equity investments.” [Forbes, Obituary for Jerry Kohlberg by George Anders, 8/03/15] The Washington Post Described Henry Kravis, One Of KKR’s Founders, As “The King Of RoughAnd-Tumble Leveraged Buyouts.” “Henry Kravis, the king of rough-and-tumble leveraged buyouts, picked up a phone at his home in Palm Beach, Fla., and called the chief executive of one of Spain’s biggest producers of building materials. At 70, Kravis, who’s worth $4.8 billion according to the Bloomberg Billionaires Index, shows no sign of getting ready to retire. He and co-founder George Roberts, also 70, are eager to make sure they don’t miss a juicy deal. They have been using their legendary names to open doors and transform KKR into a nimble credit player that can act as lender, investor and syndicator at the same time, making it reminiscent of banks such as Goldman Sachs, minus the sales and trading, before regulators curtailed their reach.” [Washington Post, 7/25/14] Kravis, His Cousin George Roberts, And Jerome Kohlberg All Left Bear Stearns And Founded KKR In 1976. “Kravis founded KKR in 1976 with Roberts, his first cousin, and their former Bear Stearns boss, Jerome Kohlberg. Three years later, they captivated Wall Street with a $380 million purchase of industrial pumps maker Houdaille Industries. The deal’s cutting-edge debt architecture, consisting of bank loans and junior debt, became the prototype for every leveraged buyout that followed. Kohlberg Kravis Roberts dominated the buyout world in the 1980s, even after Kohlberg left in 1987. Its 1988 victory in the $31 billion takeover battle for RJR Nabisco inspired the bestseller ‘Barbarians at the Gate.’” [Washington Post, 7/25/14] Leveraged Buyouts Became Known For Cutting Staff And Selling Purchased Companies After A Few Years KKR Founder Pioneered Leveraged Buyout, Famous For Cutting Staff And Selling Purchased Companies After A Few Years. “In the 1960s Jerome Kohlberg Jnr pioneered the leveraged buyout, or LBO, in which a company is bought using significant amounts of borrowed money. He went on to cofound one of the most feared powerhouses in the private equity industry, Kohlberg Kravis Roberts & Co, probably best known for the audacious purchase of the tobacco and food conglomerate Nabisco for a then record $30.1bn…Refining the methods pioneered at Bear Stearns, KKR borrowed large sums from institutions such as insurance companies and pension funds to buy underperforming firms. They would retain existing management but cut staff, unload unprofitable assets and end costly perks like private jets, then sell the company in whole or in parts within a few years.” [Independent, 8/24/15] Forbes: “KKR Is Beginning To Look Like The Goldman Sachs Of Private Equity.” [Forbes, 10/28/2015] Wall Street Journal Called KKR’s Purchase Of RJR Nabisco “A Resounding Flop” Though It Was The Biggest Buyout In History At The Time; Company Was Inspiration For Book And HBO Movie “Barbarian At The Gates” Wall Street Journal Called KKR’s Purchase Of RJR Nabisco “A Resounding Flop” Though It Was The Biggest Buyout In History At The Time; Company Was Inspiration For Book And HBO Movie “Barbarian At The Gates.” “It was the biggest buyout in U.S. corporate history, a six-week takeover battle that captivated the nation and defined the ‘greed’ decade of the 1980s, spawning a bestselling book 8 and a made-for-TV movie along the way. Now, six years later, the $25-billion (U.S.) leveraged buyout of RJR Nabisco Inc. has ended as a resounding flop for Henry Kravis and George Roberts, leaders of the powerful New York leveraged buyout company of Kohlberg Kravis Roberts & Co., and for dozens of institutional investors whose money they used. KKR, accustomed to annual returns of 25 per cent to 30 per cent on its buyouts in the 1980s, is barely scratching out single-digit yearly returns for its $3.1-billion investment. Since it made its investment in RJR at an average cost of $5.62 a share, RJR's stock price has risen only 2.3 per cent to $5.75, not counting dividends. In the same period, the Standard & Poor's Corp.'s 500 rose 47 per cent.” [Wall Street Journal, 3/17/95] Book Explored KKR’s Leverage Buyout Of RJR Nabisco And Corporate Maneuvering Between Executives. [New York Times, 1/21/90] New York Times Book Review Said The Book Was “One Of The Finest, Most Compelling Accounts Of What Happened To Corporate America And Wall Street In The 1980’s.” [New York Times, 1/21/90] Barbarians At The Gate Tagline: “After A Power Breakfast They’ll Still Eat You For Lunch.” [IMDB, accessed 1/28/16] [IMDB, accessed 1/28/16] 9 Analysts Said KKR Overpaid For RJR Nabisco And Soon Faced Costly Lawsuits Over The Company’s Tobacco Division. “What went wrong? Analysts say KKR got caught up in a frenzied takeover fight and paid too much for RJR at the peak of the '80s merger boom. And the firm bought into the wrong industry - tobacco - not long before cigarette price wars and threat of litigation laid waste to tobacco stocks.” [Wall Street Journal, 3/17/95] Bought Safeway In The 1980’s Which Resulted In Layoff Of 63,000 Workers Bought Safeway In The 1980’s Which Resulted In Layoff Of 63,000 Workers. “On the eve of the 1986 leveraged buy-out of Safeway Stores Inc., the board of directors sat down to a last supper. Peter Magowan, the boyish-looking chairman and chief executive of the world’s largest supermarket chain, rose to offer a toast to the deal that had fended off a hostile takeover by the corporate raiders Herbert and Robert Haft … By selling the publicly held company to a group headed by buy-out specialists Kohlberg Kravis Roberts & Co. and members of Safeway management, ‘you have saved literally thousands of jobs in our work force,’ Mr. Magowan said. ‘All of us — employees, customers, shareholders — have a great deal to be thankful for.’ … Nearly four years later, Mr. Magowan and the KKR group can indeed count their blessings. While they borrowed heavily to buy Safeway from the shareholders, last month they sold 10% of the company (but none of their own shares) back to the public — at a price that values their own collective stake at more than $800 million, more than four times their cash investment … Employees, on the other hand, have considerably less reason to celebrate. Mr. Magowan’s toast notwithstanding, 63,000 managers and workers were cut loose from Safeway, through store sales or layoffs. While the majority were re-employed by their new store owners, this was largely at lower wages, and many thousands of Safeway people wound up either unemployed or forced into the part-time work force. A survey of former Safeway employees in Dallas found that nearly 60% still hadn’t found full-time employment more than a year after the layoff.” [Wall Street Journal, 5/16/90] NOTE: For additional examples of layoffs that resulted from KKR buyouts please see the “KKR History” section of the “Mills Fleet Farm” chapter of the book. June 2015: SEC Charged KKR With Misallocating Broken Deal Expenses June 2015: SEC Charged KKR With Misallocating Broken Deal Expenses. “The Securities and Exchange Commission today charged Kohlberg Kravis Roberts & Co. (KKR) with misallocating more than $17 million in so-called “broken deal” expenses to its flagship private equity funds in breach of its fiduciary duty. KKR agreed to pay nearly $30 million to settle the charges, including a $10 million penalty.” [SEC Press Release, 6/29/15] KKR Paid $30 Million To Settle SEC Charges That They Misallocated $17 Million In Broken Deal Costs. “KKR will pay $30 million to settle allegations the private equity giant breached its fiduciary duty by misallocating more than $17 million in so-called broken deal costs to its flagship private equity funds. Announcing the settlement Monday, a Securities and Exchange Commission order said KKR amassed $338 million in broken deal or due diligence expenses related to unsuccessful buyout opportunities and related issues during a six-year span that ended in 2011. KKR co-investors, including the company's executives, participated in the firm's private equity transactions and benefited from deal-sourcing efforts during that time, the SEC said. Yet KKR for years failed to require them to shoulder any of the broken deal expenses, the SEC said.” [USA Today, 6/30/15] 10 Broken Deal Expenses Defined As Equity Companies Passing Along Costs From Failed Investments To Their Investors; KKR Had Passed Along Over $17 Million In Broken Deal Costs. “For years, private equity firms operated behind a curtain of mystery when it came to how they passed along expenses to investors. The Securities and Exchange Commission is now beginning to pull back the curtain and shine a light on those practices. In a first, the commission on Monday said that the private equity giant Kohlberg Kravis Roberts & Company breached its fiduciary duty when it passed along more than $17 million in ‘broken deal’ expenses to its investors. The action is expected to lay the groundwork for similar cases in the coming months.” [New York Times, 6/29/15] 2006-2011: KKR Incurred $338 Million In Broken Deal Costs From Unsuccessful Buyouts And Passed On Costs To Limited Partners Including Several Public Pension Funds. “Some private equity investors — which include public pension funds that invest on behalf of police officers, firefighters, teachers and other government employees — have lately already been questioning their investments in private equity funds. Such pension funds and other investors are known as limited partners in industry parlance, and they typically make up a significant portion of the money that private equity firms then use to undertake buyouts and other deals. Of concern to the S.E.C. is what private equity firms like K.K.R. charge their limited partners and how that differs from the amount coinvestors — which include private equity executives — are required to pay in fees. Over a six-year period, until 2011, K.K.R. incurred $338 million in expenses related to unsuccessful buyouts, the S.E.C. said. Instead of making its own executives absorb some of those costs, the firm passed them on to the funds of their limited partners without informing them.” [New York Times, 6/29/15] KKR Did Not Admit Or Deny The Charges But Paid To Settle The Charges. “The firm has agreed to pay nearly $30 million to the settle the accusations … Private equity firms charge investors a management fee of 1 to 2 percent of assets under management, as well as around 20 percent of any gains each year. But there are other transaction costs that are often not disclosed, including “broken deal” expenses, costs for monitoring investments and legal fees. These undisclosed fees often represent a substantial weight on returns for investors, according to recent study by CEM Benchmarking. Kohlberg Kravis Roberts, which neither admitted nor denied the S.E.C.’s accusations, sought to put the issue behind it on Monday, saying that the settlement related to past issues and not current practices at the firm.” [New York Times, 6/29/15] California Public Employees’ Retirement System Had Investments With KKR. “For some investors, that pledge may come too late. In June, the California Public Employees’ Retirement System, known as Calpers, announced plans to reduce the number of private equity funds it invests in to 30 from 98 as it moves to simplify its portfolio. Calpers executives have also acknowledged that the fees they pay to private equity firms are not transparent. Wylie A. Tollette, the chief operating investment officer at Calpers, recently told an investment committee that the $300 billion pension fund could not track those fees. Calpers is an investor in K.K.R. As part of the settlement, K.K.R. agreed to pay a $10 million penalty, more than $14 million in disgorgement as well as more than $4.5 million in prejudgment interest. It had previously refunded clients $3.26 million.” [New York Times, 6/29/15] 11 Admitted To Colluding With Other Private Equity Groups To Not Bid Against Each Other In A Series Of Corporate Takeovers Including AMC Entertainment And Aramark During The Mid2000’s; Paid $475 Million Settlement Admitted To Colluding With Other Private Equity Groups To Not Bid Against Each Other In A Series Of Corporate Takeovers Including AMC Entertainment And Aramark During The Mid2000’s; Paid $475 Million Settlement. “The Carlyle Group paid $115 million to settle a collusion case Friday, less than a week before it was due for a major hearing on the lawsuit in Boston. District-based Carlyle was the last of several private equity firms, including Blackstone Group, KKR and TPG, to settle the seven-year-old case. Plaintiffs had alleged that Carlyle and the other private equity firms had colluded, mostly through e-mail, not to bid against one another on takeover targets during the mid-2000s. Carlyle declined to comment, and a person close to the negotiations said Carlyle settled the case without admitting any wrongdoing on its part. Six private equity defendants had already agreed to pay $475 million to settle the collusion lawsuit. A group of plaintiffs, suing in federal court, accused Carlyle, Blackstone Group, TPG Capital, KKR and others of agreeing among themselves not to bid against one another in eight corporate takeovers that included theater chain AMC Entertainment, food service firm Aramark and casino operator Harrah's Entertainment. The plaintiffs were represented by Patrick Coughlin, an experienced class action attorney.” [Washington Post, 8/30/14] May 2013: KKR Hired Former U.S. General, CIA Director David Petraeus As Chairman, Who Has Supported TPP May 2013: KKR Hired Former U.S. General, CIA Director David Petraeus As Chairman. “Private equity firm Kohlberg Kravis Roberts & Co (KKR.N) said it appointed former CIA Director David Petraeus as chairman of the newly created KKR Global Institute, which will study the investment implications of global macroeconomic, social and geopolitical issues. Petraeus will also support KKR's investment teams in the diligence process, particularly in considering investments in new geographies, KKR said.” [Reuters, 5/30/13] Petraeus Co-Wrote An Op-Ed In Support Of The Trans Pacific Partnership. “Both parties and the Obama administration should conclude agreements such as the Trans-Pacific Partnership, important for economic growth as well as for setting appropriate standards to help incentivize China to reform economic practices (because TPP membership will not be available to China until it does so).” [USA Today, 10/12/15] Also Wrote That Congress Should Avoid A Shutdown Over Deficit And Urged Both Parties To “Recognize The Importance Of Government Programs In Areas Such As Scientific Research, Infrastructure Investment And Education.” “Congress should avoid any government shutdown or self-induced debt crisis over anything except the most historic and major issues (which we do not see on the horizon). Democrats and Republicans, in shaping their messages and agendas for the 2016 election, should recognize the importance of government programs in areas such as scientific research, infrastructure investment and education, and then fashion budget priorities accordingly.” [USA Today, 10/12/15] Petraeus Also Co-Wrote An Op-Ed Calling On Congress To Reauthorize The Export-Import Bank. “Congress is now considering whether to renew funding for the Export-Import Bank. That should not be a 12 tough call. Economic and national security concerns argue strongly for continued funding. The Bank is, of course, a small U.S. government agency designed to help American companies compete more effectively for business abroad, by backing up loans and helping with financing in ways that wind up typically costing the American taxpayer nothing or even (as in recent years) turning a profit. As things stand, the Bank will stop functioning on June 30 unless action is taken. Beyond the specific economic benefits of Ex-Im Bank actions, many of them to assist small companies and collectively helping sustain more than one million American jobs, there is another reason to renew the Bank—strengthening the foundations of American power. To see why, it is important not to focus just on the Bank by itself but to place it in a broader context of long-term national economic strategy.” [National Interest, 6/10/15] February 2016: Refused To Respond To Direct Question About His Position On The Trans-Pacific Partnership; When Asked If He Did Not Want To Talk About TPP During The Campaign, He Said “I Don't Want To Talk About Issues That Have Nothing To Do With Moving This District Forward” February 2016: Refused To Respond To Direct Question About His Position On TPP; When Asked If He Did Not Want To Talk About TPP During The Campaign, He Said “I Don't Want To Talk About Issues That Have Nothing To Do With Moving This District Forward.” “‘Do you just not want to talk about the TPP in this campaign?’ asked Minock. ‘Well, I don't want to talk about issues that have nothing to do with moving this district forward,’ said Mills.” [Northland News Center, 2/07/16] Called TPP A “Non-Issue” And Said It Was “Was Dead On Arrival” Because It Would Not Get A Vote. “KDLH's Nick Minock sat down with Mills to get answers. ‘They (U.S. Senators) are not going to vote on it. So, it's a non issue. The TPP is dead on arrival,’ said Mills.” [Northland News Center, 2/07/16] Said He Was “Hesitant To Give … A Direct Answer” On TPP. “‘KKR - the company that bought Mills Fleet Farm - I was looking on their website and they support the Trans Pacific Partnership. Does that impact your view of the TPP at all?’ asked Minock. ‘I have looked, first of all, I am making up my own mind and in Washington D.C., I will read the agreements and the bills that I vote on and that is why I'm hesitant to give you a direct answer,’ said Mills.” [Northland News Center, 2/07/16] Said KKR’s Support Of TPP Would Not Affect His Position On The Issue. “‘So are you saying KKR or Ford Motor Company - their decision on policy isn't going to impact your decision on this issue?’ asked Minock. ‘Absolutely not. It will not impact my position on this issue,’ said Mills. Congressman Rick Nolan is against the Trans Pacific Partnership. Nolan is concerned that the TPP would cost the United States jobs, just like NAFTA did.” [Northland News Center, 2/07/16] Faced Pressure To Provide An Answer On His Specific Position On TPP. “The Trans Pacific Partnership continues to be one of the biggest issues in the Stewart Mills Rick Nolan rematch. On Saturday, the Republican Party endorsed Mills in McGregor. Now that Mills has secured the GOP's backing, he is facing more questions on where he stands on the TPP. It's a trade agreement that has many on the Iron Range concerned for their jobs.” [Northland News Center, 2/07/16] 13 November 2015: Questioned Whether Rep. Nolan Had Read The Text Of The TPP Deal “In Its Entirety,” Said He Was Undecided On Whether Or Not To Support It November 2015: Questioned Whether Rep. Nolan Had Read The Text Of The TPP Deal “In Its Entirety,” Said He Was Undecided On Whether Or Not To Support It. “Fleet Farms executive Stewart Mills (R) said he still hasn’t finished reading the Trans-Pacific Partnership’s text and hasn’t decided whether he supports it or not. He also questioned whether Rep. Rick Nolan (D) has actually read it in its entirety. ‘I don’t believe he has fully read every word of that bill,’ Mills said.” [National Journal, 11/30/15] Mills Gas Mart Had Several Leaks Between 1997 and 2007, several Mills Fleet Farm “Gas Marts” had gas leaks. [Minnesota Pollution Control Agency, accessed 8/21/13] September 2011: Mills Fleet Farm Posted Fake Gas Prices to Keep Costumers Away In September 2001, in the midst of the September 11th terrorist attacks, a Mills Fleet Farm gas station raised “fake gas prices” were an attempt to disperse long lines of customers due to lines of cars attempting to buy gas blocked traffic on a nearby avenue. [Legal Ledger, 9/17/01] 2008: Mills Gas Mart Customers Only Received 4.5 Gallons Of Gas When They Paid For 5 Gallons In 2008, an inspection report showed that a Mills Fleet Farm gas pump in Waite Park, Minnesota was off by 130 cubic inches, resulting in costumers only receiving four and a half gallons for every five gallons they paid for. [St. Cloud Times, 7/06/08] January 2016: Mills Fleet Farm In Mankato Was Fined For Selling Gas At Illegally Low Prices That Drove Smaller Competitors Out Of The Market; Agreed To Pay $40,000 Penalty To State Of Minnesota January 2016: Mills Fleet Farm In Mankato Was Fined For Selling Gas At Illegally Low Prices That Drove Smaller Competitors Out Of The Market; Agreed To Pay $40,000 Penalty To State Of Minnesota. “The Mankato Mills Fleet Farm became the second local fuel seller in three months to be ordered by the state of Minnesota to stop selling gasoline so cheaply and to pay a substantial financial penalty for illegally low gasoline prices last spring and summer that resulted in area drivers paying some of the lowest prices in the state. Fleet Farm joins Sam's Club in agreeing to pay a $40,000 civil penalty, although each company will see half of the total forgiven if it stays in compliance with Minnesota's fuel pricing law in the future, according to the Department of Commerce. The law aims to keep large fuel sellers from offering fuel at extremely low levels to drive smaller competitors out of the market. The arrival of the Fleet Farm store on Premier Drive just off of Highway 22 on the north end of Mankato seemed to be the impetus for a price war that most other gas stations and convenience stores were caught up in from April through mid-July.” [Mankato Free Press, 1/09/16] State Identified At Least 20 Violations That Mills Fleet Farm Had Incurred; Company Would Only Be Responsible For Paying $20,000 If They Stayed Compliant With The Order. “Local prices were often 20 cents per gallon lower than other parts of the state with the discount sometimes 14 topping 25 cents, prompting smaller convenience stores to file complaints with the Commerce Department, which launched an investigation. Some pointed to Fleet Farm as the instigator while others suggested Fleet Farm was doing nothing more than matching Sam's Club. In the end, state investigators found both companies were selling at prices below the minimum allowed by law. A ‘cease and desist order’ was issued to Sam's Club, located on Madison Avenue, in late October. A nearly identical order came to Fleet Farm last month. ‘ ... From April 14, 2015 through May 19, 2015 respondent (Fleet Farm) engaged in the continuing offer and sale of gasoline by way of posted price or indicating meter below the minimum allowable price at its store located at 1850 Premier Drive, Mankato, Minnesota,’ the Dec. 15 order states. ‘At least 20 violations ... were identified.’ The Fleet Farm investigation covered the same dates as the Sam's Club investigation, also found 20-plus violations and resulted in the same penalty — ‘that respondent shall pay to the State of Minnesota a civil penalty of $40,000, of which $20,000 shall be stayed upon the condition that respondent remain in compliance with this order.’”[Mankato Free Press, 1/09/16] News Report Alleged That New Mills Fleet Farm Store In Hermantown Received Public Subsidies But Were Not Required To Hire Percentage Of Union Workers Thus Allowing Them To Pay Below Prevailing Wage; Mills Responded Angrily On Social Media To This Report News Report Alleged That New Mills Fleet Farm Store In Hermantown Received Public Subsidies But Were Not Required To Hire Percentage Of Union Workers Thus Allowing Them To Pay Below Prevailing Wage. “Despite its $900,000 gift, Hermantown officials green-lighted the project without requiring that a percentage of the work go to union tradespeople. As a result, Fleet Farm can pay workers well below prevailing wages.” [City Pages, 11/18/15] Headline: “Stewart Mills Gets $1.5 Million In Welfare; His Workers Aren't So Lucky.” [City Pages, 11/18/15] Mills Was Upset About Article’s Portrayal Of Mills Fleet Farm And Accused DCCC Of “Peddl[ing] Lies.” [Twitter, 11/19/15] Mills Stated In A Facebook Post That He Was Not “Anti-Union” And That Some Of The Project’s Funds Had Gone To Non-Union Contractors. “Normally I don’t respond directly to comments on Facebook as the back and forth can take on a life of its own, but I feel there may be some folks that have bought into the Democrats deceptive narrative of me and have the wrong idea about what I stand for. First of all, Right to Work is a state issue, and I am running for federal office. As someone who respects the Constitution and the Bill of Rights, I believe that the 10th Amendment reserves such decisions the individual states themselves, and I will fight to keep the Federal Government out of state affairs. Secondly, whoever says Fleet Farm’s Hermantown project is nonunion is deliberately misleading you. The truth is the majority of the contract dollars were awarded to union shops. The Mills Family has always run an open bidding process, open to both union and nonunion shops. Some of the project dollars (a minority) were awarded to non-union contractors. We have not tilted the playing field either way. Our general project manager goes through the bids and selects the ones that can get the job done right, at the right time, at the right price. Union firms, as a percentage of project cost, were over represented in that selection. If anyone tries to tell you I am antiunion they are liars, I believe strongly in the open bidding process, and American Free Enterprise that has created and sustained both union and non-union jobs. –Stewart Mills” [Facebook, 12/02/15] 15 Education Between 1992 And 1995, Mills Attended Northwood University In West Palm Beach, Florida. [Mills for Congress Website, accessed 8/23/13] Mills Earned A Bachelor’s Degree In Business Administration From Northwood University In West Palm Beach, Florida. [Facebook, accessed 9/22/15] 2015: Keiser University Purchased Northwood University’s West Palm Beach Campus. “Northwood University is handing its West Palm Beach campus over to Keiser University, which now has its first residential campus. Located at 2600 Military Trail, the 100-acre site will be the second campus in the city for non-profit Keiser University and the 17th in Florida. It has dormitories, a gymnasium and a student center. Financial terms of the deal weren't announced … Northwood University's main campus is in Midland, Mich. It said its students in West Palm Beach would have the opportunity to become Keiser University students starting July 1. Most of its programs there are in business education. On the South Florida Business Journal's list of largest local colleges, Northwood University reported having 749 students in fall 2014 compared to 7,341 for Keiser University. Northwood University currently has 586 students, according to school officials.” [South Florida Business Journal, 3/18/15] Northwood University Described Its Cores Values As Belief In “Entrepreneurial, Free-Enterprise Society” And “Individual Freedom And Individual Responsibility.” “We believe in: the advantages of an entrepreneurial, free-enterprise society. individual freedom and individual responsibility. functioning from a foundation of ethics and integrity. promoting and leveraging the global, diverse and multi-cultural nature of enterprise.” [Northwood University, About, accessed 9/22/15] University Website Said They “Practice A Healthy Skepticism Of Large And Powerful Government” Because It Causes “Loss” Of “Freedom.” “We practice a healthy skepticism of large and powerful government because we think history has clearly demonstrated that such structures move rapidly from being of the people toward being over the people, and freedom is lost in the balance. Our intolerance of monolithic power is consistent across the business, labor, and government spectrum. We suspect, furthermore, that as a society we cannot gain from the establishment of legal monopolies except in a very few and constrained circumstances.” [Northwood University, About, accessed 9/22/15] University Had Several Locations Across The Country, Primarily In Michigan And Texas. [Northwood University, Locations, accessed 9/22/15] Crain’s Detroit Business Called Northwood University “The Nation’s Pre-Eminent Auto Retailing School.” “Northwood University is selling its 31-year-old campus in West Palm Beach, Fla., a year after shutting its residential campus near Dallas. The nation's pre-eminent auto-retailing school is also restructuring its operations to improve revenue. The moves are in part because of recent poor financial results.” [Crain’s Detroit Business, 6/09/15] Northwood University Was Established In 1959 And Focused On Free Enterprise. “Mills received a business degree at Northwood University, a non-traditional higher education school created in 1959 that focuses on free enterprise. He turned his attention after getting his degree on the family business, serving 16 in a variety of positions. In one of his television ads, Mills proudly says he started out sweeping floors and graduated to stocking shelves. He's now a vice president.” [Mesabi Daily News, 9/30/14] 2000-2010: Director Of Personnel For Fleet Farm Between 2000 and 2010, Mills served as the director of personnel for Mills Fleet Farm. He oversaw the administration and management of a workforce of more than 6,000 and health insurance, 401k, profit sharing and other benefit plans. [Stewart Mills Campaign Website, accessed 9/06/13] 2010-Present: Vice President For Fleet Farm Since 2010, Mills has served as the Vice President of Mills Fleet Farm. According to his campaign website, he was the “originator of FleetFarm.com, innovative health care plans, Mills Indoor Shooting and Archery, brands of Firearms and accessories and the “We Love It! Outdoors” Television series. [Stewart Mills Campaign Website, accessed 9/06/13] 2000-2010: Oversaw Health Insurance And Other Benefit Plans Between 2000 and 2010, Mills served as the director of personnel for Fleet Farm and oversaw health insurance and other benefit plans. [Stewart Mills Campaign Website, accessed 9/06/13] July 2013: Said He was Plan Administrator and the Fiduciary of Company Health Care Plan In July 2013, Mills said he was the plan administrator and the fiduciary the company’s health care plan. “I am the plan administrator and the fiduciary of our company’s health care plan,” Mills said. [Crow Wing County GOP 2nd Amendment Rally, 7/20/13] Family Business Accepted Millions Of Taxpayer Dollars Between 1983 and 2013, Mills Properties received nearly $1.7 million from state governments. [Chanhassen Villager, 3/28/13; City of Menomonie; Tax Increment Development Agreement, Oakdale Minnesota, 6/19/13] Company Benefited From Cash For Clunkers In 2009 and 2010, Mills Motor, Mills Auto Center and Mills Auto Enterprises participated in the Federal Government’s “Cash for Clunkers” program, which was a program that offered $3,500 to $4,500 for people who traded in an old car for a new one with higher fuel economy. The auto centers made 144 transactions from the program, totaling $620,000 in federal dollar rebates, and sold $3,146,560.00 worth of inventory. [New York Times, 7/30/09; Cars.gov] NOTE: See “Cash for Clunkers” appendix for a full breakdown of all Mills Auto Center’s Cash for Clunkers transactions. 17 2009: Mills Automotive called themselves the “Cash for Clunkers Headquarters” In July 2009, Mills Automotive Group advertised themselves as the “Cash for Clunkers Headquarters!” on their YouTube page. [Mills Automotive YouTube, Uploaded 7/30/09] Company Denied Salvation Army The Right To Place Bell Ringers Outside Their Stores In November of 2011, Mills’ father announced that Mills Fleet Farm would not allow Salvation Army bell ringers at their 31 locations. Mills’ father said that allowing bell ringers would open the floodgates to anyone else who wanted to use the company’s property. Salvation Army Captain Brian Goodwill estimated the loss due to Mills Fleet Farm’s decision would be tens of thousands of dollars. [WAOW, 11/28/11] Said Decision Was a “Win-Win” In November 2011, Mills said the Fleet Farm’s decision to give individual donations to local Salvation Army chapters was a “win-win.” [Associated Press, 11/29/11] Reversed Course to Allow Salvation Army Ringers to Stand Outside Mills Fleet Farm Stores In late November 2011, Mills Fleet Farm reversed course and allowed Salvation Army bell ringers outside their stores. “In an attempt to continue our longtime support of the Salvation Army we decided this year to make direct donations instead of allowing bell ringers on our property to conduct their red kettle fundraising drives. We felt that this would immediately benefit the local Salvation Army chapters in the communities we operate stores. We were wrong. Our customers have spoken and in addition to the money that we donated, they feel the red kettles and ringing bells raise awareness of those in need in our community,” Mills said. [Brainerd Dispatch, 11/29/11] Local Labor Union Accused Mills Fleet Farm Of Using Temporary Workers At Minimum Wage In 2011, the Twin Cities chapter of the Laborers’ International Union of North America accused Mills Fleet Farm Stores of using temporary workers at minimum wage for the construction of a new store in Carver, Minnesota. “Fleet Farm should be ashamed that it’s taking the cheapest and riskiest route possible to put up this outlet in Carver,” said Tim Mackey, business manager for Twin Cities-based Local 563 of the Laborers’ International Union of North America. [Star Tribune, 11/16/11] …Mills’ Father Disputed the Accusations of Labor Exploitation 18 In 2011, Mills Fleet Farm CEO, Stewart Mills Jr., disputed the claims of the local labor unions on worker exploitation at the Mills Fleet Farm store in Carver. Mills claimed that contractors were paying substantially more than minimum wage and that the jobs were created locally. “There isn’t anyone paying minimum wage,” Mills said. [Star Tribune, 11/16/11] …But Mills Fleet Farm Contractor Breitbach Confirmed Some Workers Received Only Minimum Wage In 2011, Mills Fleet Farm contracted out its concrete construction to Breitbach Construction Company, which in turn hired four men through the firm Labor Ready. Breitbach reportedly paid $18 and $19 an hour for the four men they hired, but discovered that Labor Ready was only giving the men the minimum wage of $7.25 an hour. After a grievance was brought by the local union, Breitbach said it “completely discontinued” its relationship with Labor Ready. [Star Tribune, 11/16/11] Health Care Issues Repeatedly Claimed He Had Seen The Negative Impacts Of Obamacare Repeatedly Claimed He Had Seen The Negative Impacts Of Obamacare. “I’m the plan administrator of our company’s self-insured health plan. I have seen first hand how our employees have been negatively impacted by Obamacare. Not only that, all throughout our part of Minnesota, I’ve seen how people have been hurt by Obamacare—higher co-pays, higher deductibles, higher premiums, skinnier networks— people are paying a lot more and they’re getting a lot less.” [WDIO, 10/28/14] When Asked What His Specific Plan To Replace Obamacare Was He Said It Was To Secure “Legal Protections For Social Safety Nets Programs … And … The Free Market” When Asked What His Specific Plan To Replace Obamacare Was He Said It Was To Secure “Legal Protections For Social Safety Nets … And … The Free Market.” “[5:49] Q: What is your specific alternative to the Affordable Care Act? A: Well, it’s a combination of two things. It’s on one hand, legal protections for social safety nets and on the other hand the free market.” [WCCO, 10/21/14] Said “All Options On The Table” For Social Security Reform In October 2014, Mills said that all options need to be on the table when considering Social Security reform. “After identifying the problem, we have to come together on a bi-partisan solution because we don’t need to do to social security and Medicaid, what the Democrat party has done to America with Obamacare. It has to be both houses of congress, both sides of the isle, putting all options on the table to make sure that 19 we are able to make good on those promises to our seniors,” said Mills. [Minnesota Public Radio Debate, 10/07/14; Minnesota Public Radio, 10/07/14] Said He Liked “The Good Things” The Affordable Care Act Had Done Said He Liked “The Good Things” The Affordable Care Act Had Done. “By the time Mills conceded there were outcomes of the Affordable Care Act he wished to keep – ‘I do like the good things it has done,’ he said -- the divide between the major party candidates seemed narrower than expected.” [Forum News Service, 10/07/14] Opposed Children Staying On Their Parents Health Plans Until They Reach Twenty Six In 2014, Mills opposed children staying on their parents’ health plans until they reach twenty six. “Mills said parents who want that should pay for it, not pass along the cost to everyone else,” Minnesota Public Radio News reported. [Minnesota Public Radio News, 2/12/14] Said He Would Replace Obamacare With A Free Market System, Tort Reform, And Health Savings Accounts Said He Would Replace Obamacare With A Free Market System, Tort Reform, And Health Savings Accounts. “The Nisswa man called for the repeal and replacement of the law, often called Obamacare. In comments after his speech, Mills said he would replace the law with a free market-based system with price transparency, purchases across state lines, tort reform and health savings accounts.” [St. Paul Pioneer Press, 4/12/14] Said He Would Replace Obamacare With “Something That's Free-Market Based And Actually Works.” “Mills wants the Affordable Care Act repealed and says he has a sketch of a plan on what to replace it with. ‘Something that's free-market based and actually works,’ he said.” [Duluth News-Tribune, 4/20/14] Said More Flexible Health Savings Accounts Would Reduce Health Care Costs. “He ran the employee health care program at Mills Fleet Farm for 14 years, he said, and he found there are three essential parts to keep in control and keep costs down: Supply, demand and delivery. Cutting costs and increasing quality of care is the goal of the current effort, he said, but ‘Obamacare is bringing us in the exact opposite direction. It's driving up costs and bringing down quality.’ Mills said he would open the insurance market across state lines and would increase the flexibility of health savings accounts. ‘Allow people to contribute more and then, when it gets to a certain point, they can put that money into their retirement accounts or into college savings plans.’ He said there also needs to be better transparency on nonemergency medical procedures. ‘You should know what the prices are.’ He said he also would advocate tort reform to limit claims made against practitioners.” [Duluth News-Tribune, 4/20/14] 2015: Said He Would Make Replacing Obamacare A Central Focus Of His Campaign Platform And Was “Still Very Much Against Obamacare” 2015: Said He Would Make Replacing Obamacare A Central Focus Of His Campaign Platform. “Mills says many of the campaign issues will be the same: Replacing the Affordable Care Act with a 20 private-focused alternative, including Health Savings Accounts and the ability to buy catastrophic health coverage across state lines. He says he’ll make ‘replacing Obamacare’ a focus.” [CBS Minnesota, 10/13/15] Said He Was “Still Very Much Against Obamacare. “There's also an interesting turn in the their debate over Obamacare, which was a focal point in the 2014 campaign. ‘I'm still very much against Obamacare,’ Mills said. ‘Rick Nolan is for Obamacare as a good first step to single payer.’” [Duluth News Tribune, 10/18/15] Minnesota Had The Fifth Lowest Rate Of Uninsured People In The Nation In 2014 Star Tribune Headline: “Minnesota's Uninsured Rate Plunges As Affordable Care Act Kicks In.” [Star Tribune, 9/17/15] 5.9% Of Minnesotans Were Uninsured In 2014, Fifth Lowest Rate Of Uninsured In The Country; 8.2% Of Minnesotans Were Uninsured In 2013. “The share of Minnesotans without health insurance fell to a record low last year, as new provisions of the Affordable Care Act kicked in with a historic expansion in the nation’s insurance markets. Just 5.9 percent of the state’s population was uninsured in 2014, giving Minnesota the fifth-lowest rate in the nation, according to the U.S. Census Bureau’s annual report on income and insurance. That was a sharp drop from 2013, when 8.2 percent of Minnesotans lacked health insurance. Nationwide, the uninsured rate fell from 13.3 percent in 2013 to 10.4 percent last year. The dramatic drop came as more consumers used state and federal online insurance exchanges to buy coverage and tax penalties loomed for those who lacked health insurance at the beginning of this year. The numbers were greeted as vindication of the controversial federal law, especially by elected officials who embraced it early.” [Star Tribune, 9/17/15] 325,000 People Had Enrolled In Insurance Coverage Through The State’s Exchange Program. “Since November, more than 325,000 Minnesotans have signed up for health insurance using the state’s MNsure exchange. The vast majority landed in Medical Assistance or MinnesotaCare, public health insurance programs that now cover one of every five Minnesotans. About 70,000 Minnesotans signed up for private plans on the exchange, with more than half receiving premium public subsidies. Minnesota Human Services Commissioner Lucinda Jesson said that although government insurance rolls are growing, the state will benefit from a healthier population … Between 2008 and 2013, Minnesota’s uninsured rate hovered around 8 to 9 percent. But in 2014, the number of uninsured shrank by 123,000 people.” [Star Tribune, 9/17/15] Second Amendment Issues Created A Video Letter Against Gun Regulations, Including An Assault Weapons Ban In Wake Of Newtown Shooting In 2013, Mills released a video letter for Congressman Rick Nolan and Senators Franken and Klobuchar on gun control legislation. 21 Mills’ main purpose of the video was to tout his opposition against gun regulations and to demonstrate that Nolan’s duck gun was more “lethal and impractical” than assault rifles. [HuldraArms YouTube account, uploaded 1/10/13] Mills: “Gun Control Isn’t About Controlling Guns, It’s About Controlling People And Limiting Your Freedom.” [Huldra Arms YouTube, 1/10/13] Mills: “Gun Free Zones Are Killing Our Kids … We Need To Put Armed Security In Every School And Fund That Price Tag … We Need To Stop Guarding Our Banks And Our Sports Stadiums Better Than We Guard Our Children.” [Huldra Arms YouTube, 1/10/13] Mills: “This Is About Politics … This Is About Gun Control Measures … They Really Don’t Care About Solving The Problem. They Just Are Not Gonna Let A Good Crisis Go To Waste And They’re Gonna Push Their Political Agenda.” [Huldra Arms YouTube, 1/10/13] Suggested That Violent Video Games And Mental Health Were Responsible For Gun Violence. [Huldra Arms YouTube, 1/10/13] Mills: “Gun Control Will Not Work … It Will Only Endanger Us.” [Huldra Arms YouTube, 1/10/13] Said We Need To Put Armed Security In Every School And Fund That Price Tag. [Huldra Arms YouTube, 1/10/13] Claimed Sporting Rifles Were Less Dangerous Than Duck Hunting Shot Guns. [Huldra Arms YouTube, 1/10/13] Called For Armed Security at Schools, Even If It Meant Increasing Federal Taxes On Firearms In Mills’ video letter to Congressman Rick Nolan and Senators Franken and Klobuchar on gun control legislation, he called for armed security at local schools, even if it meant increasing federal taxes on firearms to finance the measure. From his video: “So what’s the solutions, we need to put armed security in every school and fund that price tag. We have to stop putting things on our credit card and mortgaging our children’s future to China. The ATF collects approximately $ 24 billion a year in excise fees. If we need to increase the 11% ATF excise fee on firearms to 15% or whatever to pay for it, we need to do that. We need to stop guarding our banks and our sports stadiums better than we guard our children. There’s only so much money out there. We need to reform certain institutions and the way that we collect taxes. We need to balance our priorities to get them straight. The priority should be the security of our children. Locally here, in the Brainerd Lakes area, we have an excellent law enforcement program. However, we graduate more candidates than there are law enforcement positions for. I believe we should take the reallocated funds and distribute it to local law enforcement to hire security police to guard the doorways and hallways of our local schools.” [YouTube, posted 1/10/13; MinnPost, 7/9/14] 22 Tea Party Express Endorsed Mills, But Refused To Label Himself A Tea Partyer Tea Party Express Endorsed Mills. “Mills, a relatively young and hip, long-haired businessman, has fashioned himself as a small-government Republican. Though he touts more libertarian ideas than socially conservative ones, Mills did garner an endorsement Tuesday from the Tea Party Express.” [Star Tribune, 10/08/14] …But Said It Was Not “Entirely Accurate” To Call Him A Tea Partyer But Welcomed Tea Party Endorsement Hours Later. “In a debate early Tuesday in Duluth, GOP House candidate Stewart Mills said it wasn't accurate to portray him as aligned with the Tea Party. ‘I keep getting accused (of) being a Tea Partyer and I'm not sure that's entirely accurate,’ Mills said, when answering a question about the virtues of the Keystone oil sands pipeline in a debate with Democratic Rep. Rick Nolan and Green Party candidate Ray ‘Skip’ Sandman. A few hours later, the Tea Party Express threw its support behind Mills, saying he ‘isn't your typical politician. He is someone that understands hard work and will stop at nothing in order to fix a problem -- traits he picked up from his family's huntingcamp doctrine.’ … Mills’ camp responded Tuesday, noting, ‘We welcome the endorsements of all political persuasions, from the National Rifle Association to the Farm Bureau, from the National Federation of Independent Businesses to the Fraternal Order of Police.’” [Star Tribune, 10/07/14] Refused To Accept Labels, Said He Did Not Belong To Any Wing Of The Conservative Movement. “You know I’ve never had really any involvement with the tea party up until running for office. And I’ve met with them and the one thing that impresses me about them is that they care more about your rights and your liberties than anything they would want for themselves from the government … I am not gonna define myself or accept any labels. But I consider myself a conservative—and that is the business community, the second amendment rights community, the Republicans, the constitutionalists, the Libertarians, and that also includes the tea party. So I’m not necessarily in any wing of the conservative movement.” [KBJR, 4/19/14] October 2015: Spoke At A Tea Party Event. [Minnesota Tea Party Alliance, 10/05/15] Abortion Issues Said He Was Pro-Life And Was “Very, Very Strongly Against Federal Funding … Going To Any Abortion Provider” Said He Was Pro-Life And Was “Very, Very Strongly Against Federal Funding … Going To Any Abortion Provider.” “Mills said his social issue is being pro-life, although he added it wasn't one of his main motivators for running. ‘I'm very, very strongly against federal funding — our tax dollars — going to any abortion provider,’ he said.” [Forum News Service, 10/18/15] Criticized Nolan For Receiving A Donation From Planned Parenthood And For Supporting Continued Funding For The Group. “For Mills, this involves channeling uproar 23 sparked with recently released anti-abortion videos that purport to show Planned Parenthood's sale of fetal tissue for research. ‘Rick Nolan not only received money from Planned Parenthood, Rick Nolan still wants to send money to Planned Parenthood,’ Mills said.” [Forum News Service, 10/18/15] Said Planned Parenthood Was Using “A Shell Game” And Called On Them To Stop Providing Abortions Said Planned Parenthood Was Using “A Shell Game” And Called On Them To Stop Providing Abortions. “Mills acknowledged there's already a law prohibiting federal funding from going directly to abortion, ‘but it's a shell game’ he said.” [Forum News Service, 10/18/15] Mills: “If Planned Parenthood Really Is Serious About Providing Women's Services, They Should, In An Instant, Stop Providing Abortions” Mills: “If Planned Parenthood Really Is Serious About Providing Women's Services, They Should, In An Instant, Stop Providing Abortions.” “‘Let's look at this way,’ Mills said, ‘Planned Parenthood says that only 3 percent of their services are abortion-related. Well, you can't fund one arm that then supports the other. If Planned Parenthood really is serious about providing women's services, they should, in an instant, stop providing abortions.’” [Forum News Service, 10/18/15] Said The “Core Mission” Of Planned Parenthood Was To Provide Abortions And Accused Them Of Using “Accounting Gimmicks” To Conceal Use Of Federal Funds For Abortion Services Said The “Core Mission” Of Planned Parenthood Was To Provide Abortions And Accused Them Of Using “Accounting Gimmicks” To Conceal Use Of Federal Funds For Abortion Services. “The ‘core mission’ of Planned Parenthood is still abortion, Mills said. ‘It's accounting gimmicks and it's semantics, but at the end of the day, through Planned Parenthood, our tax dollars are going to fund abortions, and I am against that,’ he said.” [Forum News Service, 10/18/15] Opposed Abortion Rights In June 2013, Mills opposed abortion rights. [Hot Dish Politics, 6/26/13] Opposed Abortion Rights. “Mills has also contrasted his record with Nolan on supporting gun rights (Nolan received an “F” rating from the NRA) and opposing abortion to appeal to socially conservative Democrats who make up a significant share of the electorate.” [National Journal, 9/19/14] Said He And His Wife Were “Proud To Support” The Lakes Area Pregnancy Support Center, A Local Crisis Pregnancy Center And “Provide Resources To Those Experiencing Unexpected Pregnancies” To “Protect The Most Vulnerable Among Us” Said He And His Wife Were “Proud To Support” The Lakes Area Pregnancy Support Center, A Local Crisis Pregnancy Center And “Provide Resources To Those Experiencing Unexpected 24 Pregnancies” To “Protect The Most Vulnerable Among Us.” “The Lakes Area Pregnancy Support Center is such an important part of our community. My wife Heather, and I are proud to support them and help provide resources to those experiencing unexpected pregnancies. We must protect the most vulnerable among us.” [Facebook, 4/15/14] Lakes Area Pregnancy Support Center Is A Crisis Pregnancy Center. “Women and men are making difficult choices every day. We can help them get the facts to make an informed decision about their unplanned pregnancy.” [Lake Area Pregnancy Center Facebook, accessed 10/05/14] Crisis Pregnancy Centers Known For Providing Misleading Information To Patients About Their Options For Reproductive Services. “Operators of religious pregnancy centers have sued Atty. Gen. Kamala D. Harris to block a new California law that requires such clinics to provide information about abortion and contraceptive services offered by other providers. Under the legislation, which was sponsored by Harris and abortion rights group NARAL Pro-Choice America, health clinics that offer certain pregnancy-related services have to tell patients that California has public programs that offer low-cost or free family planning options, including contraception and abortion. The clinics must provide a phone number to the patient's local county social services office. Abortion rights supporters say these religious clinics, known as crisis pregnancy centers, offer false or misleading information about abortion and reproductive health.” [Los Angeles Times, 10/13/15] 2015: Had Net Worth Between $34 And $115 Million 2015: Had Net Worth Between $34 And $115 Million. “Lawrence is also worth more than Stewart Mills, the 2014 candidate in Minnesota’s Eighth District. Mills, who was attacked for his wealth, has a stake in his family Fleet Farm business with a net worth between $34 million and $115 million last year.” [Twin Cities Pioneer Press, 9/09/15] Found Claim That The Wealthy Do Not Pay Their Fair Share In Taxes “Personally Offensive” 25 Found Claim That The Wealthy Do Not Pay Their Fair Share In Taxes “Personally Offensive.” In June 2013, Mills said he found the claim that the wealthy did not pay enough taxes “personally offensive.” From an event in Baxter, Minnesota: “What happened in the last couple elections, where you have folks saying that the wealthy are not paying their fair share that there are all these loopholes and they don’t pay any taxes and we have to make them pay more. Well you know what… we’ve paid all of our taxes, we reinvest the money that we make into our business. We provide jobs for people, we provide health insurance for people. We are part of this community and then beyond that we support community and civic endeavors. We donate to charity, we help with events, we do a lot of things for this community, and to be singled out as a deadbeat, is personally offensive. [Crow Wing County GOP 2nd Amendment Rally, 7/20/13] Said His Family Got Their Hands Dirty And Claimed A Flax Tax Would Help Main Street Said His Family Got Their Hands Dirty And Claimed A Flax Tax Would Help Main Street. “Mills defended his company and family, saying they work hard and play hard and building the business meant their hands got dirty and even ‘a little bit bloody sometimes.’ Mills said he favored flattening the tax code to be friendlier to Main Street.” [Star Tribune, 10/08/14] Touted His Blue Collar Roots; Said The Mining And Timber Industries Were In His Blood And That Energy Policies Should Support These Industries Touted His Blue Collar Roots; Said The Mining And Timber Industries Were In His Blood And That Energy Policies Should Support These Industries. “‘Job creation on main street in mining and the timber industry is in my blood,’ he said. ‘We have to look toward making sure we have an economy that can foster that growth, but also not limit our timber industry from fully reaching its potential, but also making sure our mining industry is supported, but not handicapped by unnecessary hurdles and regulations.’ An energy policy that can facilitate a healthy and robust economy is crucial to the mining and timber industries, he said.” [International Falls Journal, 9/02/14] Said He Had “Iron Ore” In His Blood Because His Great-Grandfather Worked In An Iron Mine. “Mills is vice president of Mills Fleet Farm, a family-owned company with more than 30 retail stores in Minnesota, Wisconsin and Iowa. He cited his family's longtime work in the timber industry as common ground with the Iron Range's miners. He said his great-grandfather even mined iron on the southern edge of the Cuyuna Range in Crow Wing County. ‘I've got iron ore in my blood,’ Mills said, before explaining that he believes he has an earnest connection with the Iron Range.”[Duluth News Tribune, 8/29/14] Said His Great-Great-Grandfather Worked In Timber. “‘My great-great-grandfather came up from the Cities in the 1870s to work in the timber industry,’ Mills said at a café across from his campaign office in Brainerd. ‘Those folks came up to work in the mining industry. The fact they all came here in the 1870s through 1900 to work in the natural resource industries; there's a 26 commonality. So it's really easy to make connections with those people.’” [Duluth News Tribune, 8/29/14] Said His Family Sometimes Had “Callouses” On Their Hands. “And Stewart Mills, the Republican challenger, refrained from using a label. Instead, the wealthy heir to the successful Mills Fleet Farm stores strove for commonality with voters by saying of his family, ‘Sometimes we have callouses on our hands.’” [Duluth News Tribune, 10/08/14] Advocated For A “Flatter” And “Fairer” Tax Code According to his campaign website Mills said he would “fight for a flatter, simpler, fairer tax code in Washington.” [Stewart Mills for Congress, accessed 8/1/14] Flatter Tax Lowers Tax Rate for High-Income Earners In 2011, Alan Binder, former vice chairman of the Federal Reserve, wrote in the Wall Street Journal that “Eliminating the biggest deductions and exclusions is extremely unlikely, and flatter rates alone won't make the tax system any simpler. It would, however, make it far less progressive.” [Wall Street Journal, 11/14/11] Called For A “Flatter, Fairer” Tax That He Claimed Would Benefit The Middle Class. “Mills called for a ‘flatter, fairer’ tax that he said would be simple and fair and benefit the middle class. He faulted Nolan for backing the Obama administration's Affordable Care Act and for his support for a single-payer universal health care system. Mills also touted his endorsement from the National Rifle Association and noted that the NRA gave Nolan an ‘F’ rating. ‘Representative Nolan talked about common sense solutions,’ Mills said. ‘I hope that single-payer government-run health care is not a common-sense solution to what we have to do with our health care economy.’” [Associated Press, 10/07/14] Called For “Simple And Fair” Flat Tax In October 2014, Mills supported a “flat tax that would be simple and fair and benefit the middle class,” though he declined to offer details on his tax plan. [MPR News, 10/07/14] 15% Rate Would Give the Richest One Percent a $391,330 Tax Cut Recently, Presidential Candidate Newt Gingrich proposed to change the personal income tax by introducing a “flat tax” that is described as having a single rate at 15 percent. “Former House Speaker Newt Gingrich’s $18.1 trillion tax plan would give the richest one percent of Americans an average tax cut of $391,330, which would be over 190 times as large as the average tax cut of $1,990 that the middle fifth of Americans would receive.” [Center for Tax Justice, 1/06/12] Flat Tax Raises Taxes On Middle Class to Cut Taxes for Rich According to Citizens for Tax Justice the flat tax, “…would dramatically shift the tax burden away from the wealthy--and onto the middle class and the poor.” [Citizens for Tax Justice testimony before the Joint Economic Committee, 5/17/95] 27 Flat Tax Would Shift Burden from Rich to Non Rich According to a report by the Economic Policy Institute, lower tax rates for the wealthy under a flat tax will have to be financed by some combination of higher taxes on the middle class and larger budget deficits. A flat tax that raises the same revenues as our current tax code would shift a significant portion of the tax burden from the rich to average workers. According to Citizens for Tax Justice, under a flat tax, the fortunate few with incomes above $200,000 will see their taxes fall by an average of $53,940. [Falling Flat: The Dubious Case for a Flat Tax, Economic Policy Institute, 1/17/96] Wife Posted Photos of Mills Drinking Out of Beer Funnel In February 2009, Mills’ wife posted photos of Mills drinking out of a beer funnel. Below are pictures taken from her Facebook page: [Heather Mills Facebook, posted 2/15/09] 28 [Heather Mills Facebook, posted 2/15/09] NOTE: As of August 2013, the photos have been removed from Facebook. Headline: Stewart Mills, GOP congressional candidate, hits a beer bong [PHOTOS] [City Pages, 11/22/13] Featured In Photo Licking Woman That Isn’t Than His Wife In December 2008, Mills’ stepdaughter posted a picture of Mills licking a woman’s lips. This woman was not his wife. Below is the picture taken from her Facebook page: 29 [Whitney Murraye Thomsen Facebook, posted 12/28/08] July 2015: Cut His Signature Long Hair After What He Described As A July 4th “Grilling Incident” July 2015: Cut His Signature Long Hair After What He Described As A July 4th “Grilling Incident.” “Former Eighth District Congressional candidate Stewart Mills III is sporting a new short haircut after his long locks were singed at a barbecue on July 4th. A picture on Mills’ Twitter account showed the short cut. Mills tweeted, ‘Lost some hair, & a lot of pride, in a July 4 grilling ‘incident.’ Might be time for a new look. #StillHaveEyebrows.’ In another tweet he says, ‘The new look after my July 4th Bar-B-Q singeing. The haircut fixed a lot; luckily my eyelashes aren't as noticeable.’” [Star Tribune, 7/09/15] Said He Was Trying To Light His Father’s Gas Grill When His Hair Was Burnt; Planned To Keep His Hair Short. “In a phone interview, the Republican from the Brainerd area said he tried to light his father's gas grill ‘once, twice and three times ... [and] when it went, it went.’ Mills said he's certainly not the first backyard chef to get a hot blast while igniting a gas grill, but added, ‘I suppose having these long locks singed was more noticeable.’… If he does hit the campaign trail again, Mills said he plans to keep 30 his shorter cut. He called the fuss over his hair ‘much ado about nothing,’ but did admit he has gotten a lot of positive attention from the change. ‘It is comfortable and easier to maintain,’ he said.” [Star Tribune, 7/09/15] Previously Dubbed “The Brad Pitt” Of The Republican Party Politico Headline: “The ‘Brad Pitt’ Of The GOP.” [Politico, 6/23/14] His Long Hair Generated Attention And Drew Brad Pitt Comparisons, Said He Did Not “Look Like A Typical Politician.” “Mills, with his jaw-length blond locks and muscular physique, has been compared to the heartthrob movie star by everyone from a national party official to adoring teenage girls. And if it seems a little trivial and objectifying — he is, after all, running in one of the more closely watched, competitive House races in the country — Mills doesn’t mind. To the contrary, the 42-year-old businessman has put his distinctive looks front and center in his sales pitch to voters — that he is not your father’s Republican. ‘Certainly, I stand out in a crowd, like I did today,’ Mills said in an interview after appearing with other, more traditionally coiffed Republicans vying for state office here. ‘The hair — I mean, everybody else there was very groomed.’ His latest ad opens with Mills saying, with a shrug, ‘I guess I don’t look like a typical politician.’” [Politico, 6/23/14] National Journal Headline: “The Most Interesting Candidate of the Year.” [National Journal, 9/19/14] Said He Took The Fire As “A Sign From God” That He Should Cut His Hair. “On his newly shorn hair: ‘I was in a hurry on the Fourth of July, I had pretty hungry guests and I fired up the gas grill and got a hot flash. … My hair got singed, and I took that as a sign from God.’” [Politico, 9/23/15] Mills: “My Wife Loves Romance Novels, And She Loved The Fact That I Looked Like Fabio”; She Did Not Want Him To Get A Haircut. “Mills is sporting a new look too, having cut his famously long hair after a summer grilling accident. His hair was once the target of millions of dollars in negative ads from outside groups. ‘My wife loves romance novels, and she loved the fact that I looked like Fabio,’ he said, ‘And she was the last person in the world who wanted me to get my hair cut. But finally I had this Fourth of July grilling incident, where I got a hot flash from a gas grill, and it took that for me to convince my wife that it was time for me to get a haircut.’” [CBS Minnesota, 10/13/15]ion / Execu tive Su 31 Key Moments on Video The following section provides an overview of key moments on video of Mills. February 2016: Refused To Say Where He Stood On The Trans-Pacific Partnership During Interview Interviewer: I sat down with Mills to get some answers. SM: Uh, they are not going to vote on it. So it’s a non-issue. The TPP is dead on arrival. Interviewer: Do you just not want to talk about the TPP in this campaign? SM: Well, I don’t want to talk about issues that have nothing to do with moving this district forward. Interviewer: So KKR, the company that bought Mills Fleet Farm—I was looking on their website and they support the Trans Pacific Partnership. Does that impact your view of the TPP at all? SM: Um, you know, I have looked, you know first of all, I’m making up my own mind and in Washington, DC, I will read the agreement and the bills that I vote on and that’s why I’m hesitant to give you a direct answer. Interviewer: So are you saying that KKR or Ford Motor Company, their decision on policy isn’t going to impact your decision on this issue? SM: Absolutely not. Uh, it will not impact one iota my position on this issue. [Northland News Center, 2/07/16] Said “All Options On The Table” For Social Security Reform In October 2014, Mills said that all options need to be on the table when considering Social Security reform. “After identifying the problem, we have to come together on a bi-partisan solution because we don’t need to do to social security and Medicaid, what the Democrat party has done to America with Obamacare. It has to be both houses of congress, both sides of the isle, putting all options on the table to make sure that we are able to make good on those promises to our seniors,” said Mills. [Minnesota Public Radio Debate, 10/07/14; Minnesota Public Radio, 10/07/14] Created A Video Letter Against Gun Regulations, Including An Assault Weapons Ban In 2013, Mills released a video letter for Congressman Rick Nolan and Senators Franken and Klobuchar on gun control legislation. 32 Mills’ main purpose of the video was to tout his opposition against gun regulations and to demonstrate that Nolan’s duck gun was more “lethal and impractical” than assault rifles. [YouTube, posted 1/10/13] Below is a full transcription of the video: Name: Duck Hunting Shotgun Proven To Be More Dangerous Than A Huldra AR-15 Date: 1/10/13 Posted by: SM– Stewart Mills RSO– Range Safety Officer [Video opens on Stewart Mills standing in the snow outside of a Mills Street Farm shooting range.] SM: “This is Stewart Mills of Mills Street Farms. I’m standing in front of Mills indoor shooting and archery, soon to open on the corner of 210 and 371 in Baxter Minnesota. Behind me is one of our 32 Fleet Farm stores. We’re an upper Midwestern retailer soon to open our 33rd store in Ankeny, Iowa. This is our open letter to our Congressman, Rick Nolan and our Senators, Amy Klobuchar and Al Franken. The 2nd Amendment of our Bill or Rights states, “The right of the people to keep and bear arms shall not be infringed.” But yet on Tuesday, the 8th of January 2013, our Congressman Rick Nolan stated, “I’m a hunter; I don’t need an assault rifle to shoot a duck or to protect my family.” Well, nowhere in our Constitution or our Bill of Rights is duck hunting ever described or mentioned. Furthermore, Rick Nolan’s duck gun is much more lethal and impractical than the so called assault rifles that he would legislate away. We’re gonna go inside and demonstrate just that. Hopefully, this video letter will educate and inform our uniformed and misguided Congressman and Senators about the issues they are about to vote on. [Video moves to the inside of his archery and shooting range.] SM: We’re inside our latest venture that we’re just about ready to open, a indoor archery range and an indoor shooting range that will allow us to shoot rifles and pistols indoor. [Points] This is our pro shop. We employ, Fleet Farm as a whole, over 6,000 employees. Our shooting sports and hunting categories are one of the cornerstones that allows us to pay the wages of those 6,000 people and benefits. Our Huldra Mark 4 line of rifles and accessories, exclusive to Mills Street Farms, has allowed our shooting sports department to be successful, which in turn has allowed us to hire more people and continue to expand. Our rifles may look a little scary to some, but they really do not operate any different than any semiautomatic shotgun or rifle. This is a perfect precision firearm for sport shooting and competition, for hunting, and also for defense. It is your second amendment right. So let’s head into the range, put Rick Nolan’s duck hunting shotguns against one of our Huldra Mark 4’s and really see what is the true destructive device. [Cuts to Mills in the shooting range] 33 We’re inside our 50 yard range, probably at the 20 yard mark. We’re here to put this innocent looking duck hunting shotgun with a wood stock and a wood grip, up against this slightly suspicious, at least to the uninformed, looking modern sporting rifle. Well we’re gonna demonstrate the destructive power of this 12 gauge shotgun versus the precision nature of our Huldra Mark 4 modern sporting rifle. Well to do our demonstration and to prove our point, I’m gonna hand things over to our range safety officer. [Mills hands both guns to the Range Safety Officer. The RSO hands the guns to two assistants.] RSO: Thank you. [RSO holds up ammunition for both rifles] RSO: Today I’m going to show you the size difference in comparison of the projectile that exits the modern sporting rifle, the Huldra, and the duck hunting 12 gauge shotguns. To show that nothing has been changed to the shotgun shell, I’m going to cut the shell open, so you can see what’s all inside. Here we have our packing, and our 9 pellets right here. Compare that to the one projectile from the modern sporting rifle, to the 12 gauge duck hunting shotgun. Today we’re gonna have Connie shooting the Huldra Mark 4, modern precision sporting rifle. [RSO motions for Connie to come forward] Ok Connie, course of fire today, I’m going to have you at the 20 yard line shooting five shots per target down range. When you’re ready, get yourself in a good shooting position, take the weapon of safe. When you’re ready commence firing when you hear the beep of the timer. [Timer beeps; Connie begins firing Huldra Mark 4 at targets downrange] RSO: Weapon on safe, let it hang. Ok, that took Connie 33.18 seconds to fire five rounds in each target for a total of 25 rounds. Let’s go down range and mark the targets. [Cuts to black. Following message is displayed in white letters: “Based on Military and Police After Action Reports, in the majority of cases, multiple single projectile bullets are required to stop attacker.] [RSO marks targets on silhouettes with a pen.] RSO: Alright, let’s have Nicole come in with the 12 gauge duck hunting shotgun. [Addressing Nicole] Ok, the course of fire is gonna be one round per target, for the total of five rounds. With 9 pellets in each shot, that’s 45 pellets down range. [Nicole fires shotgun at shotguns downrange.] 34 RSO: Ok, that time it took Nicole 3.59 seconds to put five shots downrange for a total of 45 projectiles. [RSO marks targets with marker.] RSO: That’s our shot pattern here. In this target here we can see the difference between the Huldra Mark 4 modern precision sporting rifle, with its shot here, about the size of the pen. And here we can see the 12 gauge double aught buck from the duck hunting 12 gauge, where the pen will go almost all the way through. [RSO pokes pen through bullet holes.] [Cuts to black. Following message is displayed in white letters: “It took 33.18 seconds with the Huldra vs. 3.59 seconds with the duck hunting shotgun to neutralize targets.] [Cuts to Stewart Mills, standing in front of target silhouette with holes shot through.] SM: So what did we learn today? Hopefully, we came to the conclusion that gun control isn’t about controlling guns, it’s about controlling people and limiting your freedom. The reality is, [points vehemently to target silhouette with holes], a duck hunting shotgun loaded with double aught buck, is a heck of a lot more destructive and lethal than a precision modern sporting rifle. The reality is, if you live in a rural environment where the response times for law enforcement for could be as high as 20 or 25 minutes, you’re gonna wanna make sure that you have a modern sporting rifle there to defend you and your family against multiple attackers until law enforcement arrives. [White text appears under SM and states the following: “Even if you only had seconds, a Huldra would be a lifesaver against multiple attackers.] [Cuts to a different target, SM points at target] SM: Let’s take a look at this target. This target really brings the story home. [points to bullet holes] The Huldra Mark 4 is a modern precision sporting rifle. The shotgun, the duck hunting shotgun that looked innocent with wood on it, turned out to miss the mark, injure the assailant, and kill or wound whoever was behind it. When I’m defending my family, the last thing I’m gonna wanna do is jeopardize the safety of my wife or my children. We as a free people must stand together and reject any erosion of our second amendment rights. We need to stand up for liberty and freedom, and the ability to defend ourselves in the way that we see fit. So what’s the solution? Well I can tell you what the problem is, gun-free zones are killing our kids. The proposal on the table right now is we’re gonna double down and make our schools which are already gunfree zones, which already are magnets for every psychopath to spread murder and mayhem within these gun-free zones, we’re gonna double down on that and make ‘em super gun-free zones. So what’s the solutions, we need to put armed security in every school and fund that price tag. We have to stop putting things on our credit card and mortgaging our children’s future to China. The ATF collects approximately $ 24 billion a year in excise fees. If we need to increase the 11% ATF excise fee on firearms to 15% or whatever to pay for it, we need to do that. We need to stop guarding our banks and our sports stadiums better than we guard our children. There’s only so much money out there. We need to reform certain institutions and the way that we collect taxes. We need to balance our priorities to get them straight. The priority should be the security of our children. Locally here, in the Brainerd Lakes area, we have an excellent law enforcement program. However, we graduate more candidates than 35 there are law enforcement positions for. I believe we should take the reallocated funds and distribute it to local law enforcement to hire security police to guard the doorways and hallways of our local schools. We have wonderful school resource officers, but their primary responsibility is not to provide security for our children. Their job is to work with teachers, with administrators, with students and with parents. They cannot be there to guard the safety of our children the way we need them to. The problem with this most recent round of gun control is that it grandfathers in the current 270 million guns that are already on the street, leaving our children that much more vulnerable, unless we protect them. That tells me two things. First of all, this is about politics. This is about gun control measures little by little, so that later on they can go back and get the 270 million guns that we as responsible citizens own and cherish. The second thing that it tells me is they really don’t care about solving the problem. They just are not gonna let a good crisis go to waste, and they’re just gonna push their political agenda. Around the same time the Sandy Hook disaster, there was a stabbing of 22 children in China. Most of them survived. Recently while watching CNN I listened to Piers Morgan and Fareed Zakaria. They both articulated that had we had Chinese Communist-style gun control in the United States, the children at Sandy Hook would have been stabbed instead of shot. Well they’re giving me two choices, one between having my children, and the other between having my children stabbed. Well I’m gonna take the third option, cause I’m gonna reject the first two. I want our children protected from knives and from guns and from bombs. The only way we can do that is to put armed security in our schools now. We also need to look at the effects of violent video games and imagery on vulnerable and impressionable at-risk children, and we need to look at the mental health issues facing this county. So that is my video letter to our Congressman and Senators. Gun control will not work. It will only endanger us. Do not strip away our freedoms due to ignorance or politics. Put politics to the side and put the safety of our children front and center. Do the math; you have 270 million guns on the street. The legislation that you are pushing currently does nothing to address that, it only limits our freedoms in the future. Do not play politics. Make our children safe. Do the right thing. Know the facts. Know the issues before you vote or before you speak. Thank you. [Cut to black, white text appears on the screen: “It is intellectually dishonest to insist that the Second Amendment of the Constitution is about duck hunting and that one semi-automatic firearm is more acceptable than another.] [Cuts to a picture of Congressman Rick Nolan, labeled as such, in duck hunting gear with a rifle accompanied by two other hunters on either side of him with their faces blurred out. On the bottom fourth of the screen, the text reads: “Honesty, Integrity, and Intellectual Consistency… PLEASE!] [Youtube, posted 1/10/13] Used Video to Promote Fleet Farm Stores, Showed Cased Firearms and Fire Ranges In Mills’ video Mills also used the video as a promotional tool for the Fleet Farm stores, showcasing the firearms and firing ranges available at their stores. [YouTube, posted 1/10/13] Mills Fleet Farm Sells Assault Weapons 36 In 2011, Mills III announced that Mills Fleet Farm was entering the gun market with assault weapons made by Huldra. “Mills Fleet Farm is very proud of how our shooting sports category has been received by our customers; our employees are excited. Now is the right time for us to enter the shooting sports category in a meaningful way with our Huldra modern sporting rifles, handguns and tactical accessories,” Mills III said. [Brainerd Dispatch, 9/09/11] October 2014: Debate vs. Rep. Nolan There was only debate ahead of the 2014 election. The debate can be viewed here. A full transcript is available here. [The Uptake, Debate Transcript, 10/06/14] Notable statements from the debate: Said He Had Seen Firsthand How Obamacare Had Negatively Impacted People, Said They Paid More And Got Less. “Ah and one of those many hats I wear as Vice President is looking out for our six thousand employees. And one of those hats is Plan Administrator of our company’s self-insured health plan. I have seen firsthand how Obamacare has affected negatively our employees and their families. And not only that, I have seen all throughout our part of Minnesota how people have been negatively impacted by it. Higher premiums, higher co-pays, higher deductibles, skinnier networks, they’re paying more, they’re getting less.” [The Uptake, Debate Transcript, 10/06/14] Remarked That His Family’s Business Had “No Venture Capital Money” Or “Private Equity Money.” “Again, we’re we’re not publicly traded. There’s no venture capital money. There’s no private equity money. It’s a family business like any other. And if they want to attack me and my family for the success and the jobs that we’ve created, well, then that’s their message. Their message is picking on my hair.” [The Uptake, Debate Transcript, 10/06/14] Said He Never Claimed That There Were Not Many People With Pre-Existing Conditions But That He Was Referring To People Not Covered By HIPAA. “First of all, I never said there aren’t many people that have pre-existing conditions. What I said is that as plan administrator, there are few people that I’ve run across that are not covered by HIPAA, which allows you to go from your existing plan to another plan without having to worry about preexisting conditions. Also, I never said there was a federal government program that never worked.” [The Uptake, Debate Transcript, 10/06/14] Said He Was “For Healthcare Reform” But Against A Big Government Program, Supported Strengthening Social Safety Nets Instead. “I am for healthcare reform. Healthcare reform that actually brings down costs and increase access. And I’m also for the goals of the Affordable Care Act. Which is making sure people don’t have to worry about pre-existing conditions, lifetime maximums, or if they have a catastrophic health condition that they don’t have to worry about where the care is coming from. However, we have to decide who we are as a people. Who we are as a society. Are we a society of social safety nets and legal protections? Or are we a welfare state? With a government big enough to give us everything, but also big enough to take it away. So we need to strengthen social safety nets. Social safety nets such as MCHA, Minnesota Comprehensive Health Association, which due to Obamacare, is going to be closing at the end of this year.” [The Uptake, Debate Transcript, 10/06/14] 37 Said We Should Allow The Free Market To Fix Health Care Economics. “We could have worked on our social safety nets and legal protections as HIPAA, and then let the free market bring the medical economy, the inflation rate of the medical economy, in line with inflation rate with the rest of the economy. Because. We know the free market works.” [The Uptake, Debate Transcript, 10/06/14] Said He Believed In Preserving Social Security And Medicare But Had To Be Mindful That They Have “A Date Of Insolvency.” “Because I want to stand for what I stand for, and what I will stand for you in Washington DC. And I preserve – I believe in preserving and protecting Social Security and Medicare. But we have to be cognizant of the fact that these programs have a date of insolvency. And we can’t just keep kicking the can down the road.” [The Uptake, Debate Transcript, 10/06/14] 38 Biography Education Between 1992 And 1995, Mills Attended Northwood University In West Palm Beach, Florida. [Mills for Congress Website, accessed 8/23/13] Mills Earned A Bachelor’s Degree In Business Administration From Northwood University In West Palm Beach, Florida. [Facebook, accessed 9/22/15] 2015: Keiser University Purchased Northwood University’s West Palm Beach Campus. “Northwood University is handing its West Palm Beach campus over to Keiser University, which now has its first residential campus. Located at 2600 Military Trail, the 100-acre site will be the second campus in the city for non-profit Keiser University and the 17th in Florida. It has dormitories, a gymnasium and a student center. Financial terms of the deal weren't announced … Northwood University's main campus is in Midland, Mich. It said its students in West Palm Beach would have the opportunity to become Keiser University students starting July 1. Most of its programs there are in business education. On the South Florida Business Journal's list of largest local colleges, Northwood University reported having 749 students in fall 2014 compared to 7,341 for Keiser University. Northwood University currently has 586 students, according to school officials.” [South Florida Business Journal, 3/18/15] Northwood University Described Its Cores Values As Belief In “Entrepreneurial, Free-Enterprise Society” And “Individual Freedom And Individual Responsibility.” “We believe in: the advantages of an entrepreneurial, free-enterprise society. individual freedom and individual responsibility. functioning from a foundation of ethics and integrity. promoting and leveraging the global, diverse and multi-cultural nature of enterprise.” [Northwood University, About, accessed 9/22/15] University Website Said They “Practice A Healthy Skepticism Of Large And Powerful Government” Because It Causes “Loss” Of “Freedom.” “We practice a healthy skepticism of large and powerful government because we think history has clearly demonstrated that such structures move rapidly from being of the people toward being over the people, and freedom is lost in the balance. Our intolerance of monolithic power is consistent across the business, labor, and government spectrum. We suspect, furthermore, that as a society we cannot gain from the establishment of legal monopolies except in a very few and constrained circumstances.” [Northwood University, About, accessed 9/22/15] University Had Several Locations Across The Country, Primarily In Michigan And Texas. [Northwood University, Locations, accessed 9/22/15] Crain’s Detroit Business Called Northwood University “The Nation’s Pre-Eminent Auto Retailing School.” “Northwood University is selling its 31-year-old campus in West Palm Beach, Fla., a year after shutting its residential campus near Dallas. The nation's pre-eminent auto-retailing school is also restructuring its operations to improve revenue. The moves are in part because of recent poor financial results.” [Crain’s Detroit Business, 6/09/15] Northwood University Was Established In 1959 And Focused On Free Enterprise. “Mills received a business degree at Northwood University, a non-traditional higher education school created in 1959 that 39 focuses on free enterprise. He turned his attention after getting his degree on the family business, serving in a variety of positions. In one of his television ads, Mills proudly says he started out sweeping floors and graduated to stocking shelves. He's now a vice president.” [Mesabi Daily News, 9/30/14] Said He “Swore” Never To Get Involved In Politics But Saw It As “An Opportunity For Service”; His Mother Frequently Volunteered For Political Campaigns, Met Reagan As A Child Said He “Swore” Never To Get Involved In Politics But Saw It As “An Opportunity For Service”; His Mother Frequently Volunteered For Political Campaigns, Met Reagan As A Child. “Stewart Mills III said he considers himself an accidental candidate who feels called to serve in Washington to deal with political issues that have grated on him. His mother was heavily involved in politics, he said. He met President Ronald Reagan as a child. He saw firsthand the machinations his mother went through with campaigns. ‘It's something I swore I would never do myself,’ he said in an interview last week with the News Tribune. ‘I never had any interest in it until it became an opportunity for service.’” [Duluth News Tribune, 4/20/14] Met Ronald Reagan As A Child [Facebook, 2/06/14] Met George Bush, Sr. As A Child 40 [Facebook, 6/12/14] Criminal Record The following outlines Mills’ criminal record: 1991: Received Drinking Violation as 19 Year-Old In July 1991, when Mills was 19 years old, he received a drinking violation from the Appleton City Police Department. [Appleton Police Department Summary Report, 8/20/13] From the Appleton Police Department summary report: 41 [Appleton Police Department Summary Report, 8/20/13] NOTE: The City of Appleton destroyed the record due to a state retention law, which is seven years. Driving Record The following outlines Mills’ driving record: 1989: Received Traffic Citation for Speeding In 1989, Mills received a traffic citation for speeding. From the City of Appleton’s summary report on Mills: 42 [City of Appleton Police Department Summary Report, 8/20/13] 1989: Received Traffic Citation for “Fast Condition” In 1989, Mills received a traffic citation for “fast condition.” From the City of Appleton’s summary report on Mills: 43 [City of Appleton Police Department Summary Report, 8/20/13] 1991: Received Traffic Citation for Improper Stop In 1991, Mills received a traffic citation for an improper stop. From the City of Appleton’s summary report on Mills: [City of Appleton Police Department Summary Report, 8/20/13] 1993: Received Warning for Defective Head Light In 1993, Mills received a warning for a defective head light. From the City of Appleton’s summary report on Mills: 44 [City of Appleton Police Department Summary Report, 8/20/13] 1995: Received Traffic Warning for Speeding In 1995, Mills received a traffic warning for speeding. From the City of Appleton’s summary report on Mills: 45 [City of Appleton Police Department Summary Report, 8/20/13] 2009: Convicted of Speeding In 2009, Mills pleaded guilty of driving 71 mph in a 60 mph speed limit zone. He paid a grand total of $140.00 for the fine. [Case No. 65-VB-09-244, filed 2/19/09] Voting Record 1990: No Evidence Of Voting As of August 2013, there is no evidence of Mills voting in 1990 as an 18-year old. [Wisconsin Government Accountability Board, accessed 7/18/13; Minnesota Secretary of State, accessed 7/26/13; Florida Division of Elections, accessed 7/26/13] 1994 To 1998: No Evidence Of Voting As of August 2013, there is no evidence of Mills voting in the 1994, 1996, and 1998 elections. [Wisconsin Government Accountability Board, accessed 7/18/13; Minnesota Secretary of State, accessed 7/26/13; Florida Division of Elections, accessed 7/26/13] 1992, 2000, 2002, 2004: Voted In Wisconsin Elections In 1992, 2000, 2002 and 2004, Mills voted in elections in Wisconsin. Below is the table outlining his voter history in Wisconsin: 46 [Wisconsin Government Accountability Board, accessed 7/18/13] October 2000: Was Registered to Vote in Wisconsin In October 2000, Mills registered to vote in Wisconsin. [Wisconsin Government Accountability Board, accessed 7/18/13] 2004 To 2014: Voted In Minnesota Elections Between 2004 and 2014, Mills voted in Minnesota elections. Below is the table outlining his Minnesota voter history: [Minnesota Secretary of State, accessed 7/26/13] 47 Personal Information Suggested he was Paying 39% in Taxes In 2013 Mills suggested he paid 39.6% in taxes. “The problem with that isn’t necessarily paying the fair share it’s the political pandering. Because what happens is that under the Obama administration our taxes went from 35% to 39.6% that we are sending to Washington D.C,” said Mills. [Crow Wing County GOP 2nd Amendment Rally, 7/20/13] Described as “Image-Conscious” From Politico, “He is also image-conscious, changing clothes at least three times over the course of a recent day and evening.” [Politico, 6/23/14] …Personal Finance Significant Findings Had a net worth estimated between $34 and $115 million in 2015 His share in his family’s business was valued between $41 and $150 million 2015: reported $210,165 in earned income 2015: Held at least in $135,983,020 assets and income of at least $182,508 from assets Held 25 positions in Mills Fleet Farm family company 2015: held liabilities between $4,850,008 and $18,750,000 In 2015, Mills reported $210,165 in earned income and at least $182,508 in income from assets. According to news reports, he had an estimated net worth between $34 and $115 million in 2015 and his share in the family business was valued between $41 and $150 million. Mills reported at least $135,983,020 in assets and liabilities between $4,850,008 and $18,750,000. He also listed that he held 25 positions at Mills Fleet Farm including Vice President and Plan Administrator of their deferred compensation and cafeteria plans. 48 2015 Personal Financial Disclosure Form 2015: Had Net Worth Between $34 And $115 Million 2015: Had Net Worth Between $34 And $115 Million. “Lawrence is also worth more than Stewart Mills, the 2014 candidate in Minnesota’s Eighth District. Mills, who was attacked for his wealth, has a stake in his family Fleet Farm business with a net worth between $34 million and $115 million last year.” [Twin Cities Pioneer Press, 9/09/15] His Share In His Family’s Business Was Valued Between $41 And $150 Million His Share In His Family’s Business Was Valued Between $41 And $150 Million. “Mills’ stake in the family business is valued between $41 million and $150 million, according to campaign finance documents.” [Legal Ledger, 7/15/14] A review of Stewart Mills’ Personal Financial Disclosure form was conducted in order to examine Mills’ personal finances, investments and any potential financial problems that may have taken place in his past. In 2015, Mills Received $210,165 In Earned Income Between January and October of 2015, Mills earned $210,165 in salary from Fleet Wholesale Supply Col, Inc, Brainerd, MN. [Personal Financial Disclosure Form, October 2015] In 2014, Mills Received $273,487 In Earned Income In 2014, Mills earned $ $274,938 in salary from Fleet Wholesale Supply Col, Inc, Brainerd, MN. [Personal Financial Disclosure Form, October 2015] In 2015, Mills Held Assets Worth At Least $135,983,020 And Earned Income Of At Least $182,508 Off Assets. In 2014, Mills Earned Income Of At Least $3,260,012 Off Assets. Between January and October of 2015, Mills reported having assets worth between $135,983,020 and an amount more than $249,145,000 (One of Mills’ assets was listed as worth “more than $50 million,” making Mills’ upper asset worth impossible to calculate). Mills earned between $182,508 and $1,200,200 of income on the assets in 2015 from January to October. He earned between $3,260,012 and $17,195,200 off income on the assets in 2014. [Personal Financial Disclosure Form, October 2015] Current Year Income (Jan. – October 2015) Asset/Source of Income Value of Asset Type of Income Fleet Wholesale Supply Co., Inc. Profit Sharing 401(k) Plan (Vanguard Institutional Index) $250,001 $500,000 TaxDeferred $0 49 Income for Previous Year (2014) $0 Mills Automotive Group Reinsurance, LTD (Self-Insurance Company related to Mills Automotive Group, Retail sales and service, MN) $1,001 $15,000 Note Receivable - Closely Held Co Crow Wing Oil Company $100,001 $250,000 Note Receivable - Closely Held Co Lively Auto Company None $0 $0 Interest $2,501 - $5,000 $5,001 $15,000 $500,001 $1,000,000 Interest $15,001 $50,000 $15,001 $50,000 Note Receivable - Closely Held Co Lively Auto Company $100,001 $250,000 Interest $5,001 $15,000 $15,001 $50,000 Stewart C. Mills, III Irrevocable Trust (Great-West Life and Annuity Insurance Company) 1,000,001 $5,000,000 None $0 $0 Stewart C. Mills, III Irrevocable Trust (Note-Receivable - The Steward C. Mills, Jr., Irrevocable Trust) 1,000,001 $5,000,000 Interest $100,001 $1,000,000 $100,001 $1,000,000 Stewart C. Mills, III Irrevocable Trust (US Bank bank account) $1,001 $15,000 Interest $0 $0 Stewart C. Mills, Jr., Irrevocable Insurance Trust Agreement (GreatWest Life and Annuity Insurance Company) 1,000,001 $5,000,000 None $0 $0 The Jade Dalen Mills Irrevocable Trust (Demand Note Receivable Crow Wing Oil Company) $250,001 $500,000 Interest $5,001 $15,000 $5,001 $15,000 50 The Stewart C. Mills, III 2012 Irrevocable Trust (Mills Properties, Inc) Description: Closely held business operated as “Mills Fleet Farm,” Retail, WI, MN, IA, and ND Comments: The primary purpose of this S-Corporation distribution was to pay taxes. Mills Fleet Farm and associated companies are S-Corporations and taxed at the individual level. These taxes were paid to the federal government as well as to the states of IA, MN, ND, and WI where $25,000,001 Mills Fleet Farm operates. $50,000,000 The Stewart C. Mills, III 2012 Irrevocable Trust (Demand Note Receivable - Crow Wing Oil Company) 1,000,001 $5,000,000 The Stewart C. Mills, IV Irrevocable Trust (Demand Note Receivable - Crow Wing Oil Company) S-Corp Distribut $0 $100,001 $1,000,000 Interest $50,001 $100,000 $15,001 $50,000 $250,001 $500,000 Interest $5,001 $15,000 $5,001 $15,000 The Stewart C. Mills, Jr., Grandchildren’s Trust Agreement (Lively Auto Company) Description: Closely held business operated as “Mills Fleet Farm,” Retail, WI, MN, IA, and ND. $500,001 $1,00,0000 S-Corp Distribut $0 $0 The Stewart C. Mills, Jr., Grandchildren’s Trust Agreement (Mills Supply, Inc.)Description: Closely held business operated as “Mills Fleet Farm,” Retail, WI, MN, IA, and ND. $5,000,001 $25,000,000 S-Corp Distribut $0 $0 51 The Stewart C. Mills, Jr., Irrevocable Trust (Fleet and Farm of Green Bay, Inc.) Description: Closely held business operated as “Mills Fleet Farm,” Retail, WI, MN, IA, and ND Comments: The primary purpose of this SCorporation distribution was to pay taxes. Mills Fleet Farm and associated companies are SCorporations and taxed at the individual level. These taxes were paid to the federal government as well as to the states of IA, MN, ND, and WI where Mills Fleet Farm $25,000,001 operates. $50,000,000 S-Corp Distribut $0 $1,000,001 $5,000,000 The Stewart C. Mills, Jr., Irrevocable Trust (Fleet Wholesale Supply Co., Inc.) Description: Closely held business operated as “Mills Fleet Farm,” Retail, WI, MN, IA, and ND Comments: The primary purpose of this SCorporation distribution was to pay taxes. Mills Fleet Farm and associated companies are SCorporations and taxed at the individual level. These taxes were paid to the federal government as well as to the states of IA, MN, ND, and WI where Mills Fleet Farm $25,000,001 operates. $50,000,000 S-Corp Distrib $1,000,001 $5,000,000 52 $0 The Stewart C. Mills, Jr., Irrevocable Trust (Mills Properties, Inc) Description: Closely held business operated as “Mills Fleet Farm,” Retail, WI, MN, IA, and ND Comments: The primary purpose of this S-Corporation distribution was to pay taxes. Mills Fleet Farm and associated companies are S-Corporations and taxed at the individual level. These taxes were paid to the federal government as well as to the states of IA, MN, ND, and WI where $50,000,000 Mills Fleet Farm operates. $50,000,000 S-Corp Distribut $0 $1,000,001 $5,000,000 The Stewart C. Mills, Jr., Irrevocable Trust (US Bank bank account) Description: Trust bank account Interest $1 - $200 US Bancorp – Roth IRA - Nuveen Funds (FAEIX) 15,001 $50,000 US Bank Bank Account $1,001 $15,000 15,001 $50,000 Total $135,983,020 $249,145,000+ $1 - $200 TaxDeferred $0 $0 None $0 $0 $182,508 $1,200,200 $3,260,012 $17,195,200 * Asset class details: Fleet Wholesale Supply Co., Inc. Profit Sharing 401(k) Plan Stewart C. Mills, III Irrevocable Trust Stewart C. Mills, Jr., Irrevocable Insurance Trust Agreement The Jade Dalen Mills Irrevocable Trust The Stewart C. Mills, III 2012 Irrevocable Trust The Stewart C. Mills, IV Irrevocable Trust The Stewart C. Mills, Jr., Grandchildren’s Trust Agreement The Stewart C. Mills, Jr., Irrevocable Trust US Bancorp – Roth IRA [Personal Financial Disclosure Form, October 2015] Trusts Held 53 Mills Held At Least $135,016,013 Of Assets In Trusts in 2015, And Earned Income Of At Least $160,005 Off Assets Held In Trusts. In 2014, Mills Earned Income Of At Least $3,225,009 Off Assets Held In Trusts. Of his assets held between January and October of 2015, Mills reported holding between $135,016,013 and an amount more than $247,065,000 in trusts (One of Mills’ trusts was listed as worth “more than $50 million,” making Mills’ upper asset worth impossible to calculate). During that time, Mills earned between $160,005 and $1,130,200 in income from his assets held in trust. In 2014, Mills earned between $3,225,009 and $17,080,200 in income from his assets held in trust. [Personal Financial Disclosure Form, October 2015] Asset/Source of Income Value of Asset Type of Income Current Year Income (Jan. – October 2015) Stewart C. Mills, III Irrevocable Trust (Great-West Life and Annuity Insurance Company) 1,000,001 $5,000,000 None $0 $0 Stewart C. Mills, III Irrevocable Trust (Note-Receivable - The Steward C. Mills, Jr., Irrevocable Trust) Stewart C. Mills, III Irrevocable Trust (US Bank bank account) 1,000,001 $5,000,000 $1,001 $15,000 Interest $100,001 $1,000,000 $100,001 $1,000,000 Interest $0 $0 Stewart C. Mills, Jr., Irrevocable Insurance Trust Agreement (GreatWest Life and Annuity Insurance Company) 1,000,001 $5,000,000 None $0 $0 The Jade Dalen Mills Irrevocable Trust (Demand Note Receivable Crow Wing Oil Company) $250,001 $500,000 Interest $5,001 $15,000 $5,001 $15,000 54 Income for Previous Year (2014) The Stewart C. Mills, III 2012 Irrevocable Trust (Mills Properties, Inc) Description: Closely held business operated as “Mills Fleet Farm,” Retail, WI, MN, IA, and ND Comments: The primary purpose of this S-Corporation distribution was to pay taxes. Mills Fleet Farm and associated companies are S-Corporations and taxed at the individual level. These taxes were paid to the federal government as well as to the states of IA, MN, ND, and WI where $25,000,001 Mills Fleet Farm operates. $50,000,000 The Stewart C. Mills, III 2012 Irrevocable Trust (Demand Note Receivable - Crow Wing Oil Company) 1,000,001 $5,000,000 The Stewart C. Mills, IV Irrevocable Trust (Demand Note Receivable - Crow Wing Oil Company) S-Corp Distribut $0 $100,001 $1,000,000 Interest $50,001 $100,000 $15,001 $50,000 $250,001 $500,000 Interest $5,001 $15,000 $5,001 $15,000 The Stewart C. Mills, Jr., Grandchildren’s Trust Agreement (Lively Auto Company) Description: Closely held business operated as “Mills Fleet Farm,” Retail, WI, MN, IA, and ND. $500,001 $1,00,0000 S-Corp Distribut $0 $0 The Stewart C. Mills, Jr., Grandchildren’s Trust Agreement (Mills Supply, Inc.)Description: Closely held business operated as “Mills Fleet Farm,” Retail, WI, MN, IA, and ND. $5,000,001 $25,000,000 S-Corp Distribut $0 $0 55 The Stewart C. Mills, Jr., Irrevocable Trust (Fleet and Farm of Green Bay, Inc.) Description: Closely held business operated as “Mills Fleet Farm,” Retail, WI, MN, IA, and ND Comments: The primary purpose of this SCorporation distribution was to pay taxes. Mills Fleet Farm and associated companies are SCorporations and taxed at the individual level. These taxes were paid to the federal government as well as to the states of IA, MN, ND, and WI where Mills Fleet Farm operates. $25,000,001 $50,000,000 S-Corp Distribut $0 $1,000,001 $5,000,000 The Stewart C. Mills, Jr., Irrevocable Trust (Fleet Wholesale Supply Co., Inc.) Description: Closely held business operated as “Mills Fleet Farm,” Retail, WI, MN, IA, and ND Comments: The primary purpose of this SCorporation distribution was to pay taxes. Mills Fleet Farm and associated companies are SCorporations and taxed at the individual level. These taxes were paid to the federal government as well as to the states of IA, MN, ND, and WI where Mills Fleet Farm operates. $25,000,001 $50,000,000 S-Corp Distrib $1,000,001 $5,000,000 56 $0 The Stewart C. Mills, Jr., Irrevocable Trust (Mills Properties, Inc) Description: Closely held business operated as “Mills Fleet Farm,” Retail, WI, MN, IA, and ND Comments: The primary purpose of this S-Corporation distribution was to pay taxes. Mills Fleet Farm and associated companies are S-Corporations and taxed at the individual level. These taxes were paid to the federal government as well as to the states of IA, MN, ND, and WI where $50,000,000 Mills Fleet Farm operates. $50,000,000 S-Corp Distribut $0 $1,000,001 $5,000,000 The Stewart C. Mills, Jr., Irrevocable Trust (US Bank bank account) Description: Trust bank account Interest $1 - $200 $1 - $200 $160,005 $1,130,200 $3,225,009 $17,080,200 Total 15,001 $50,000 $135,016,013 $247,065,000+ [Personal Financial Disclosure Form, October 2015] Liabilities Between January and October 2015, Mills held between $4,850,008 and $18,750,000 of liabilities that were incurred between January 2000 and December 2014. [Personal Financial Disclosure Form, October 2015] The following outlines Mills’ liabilities: 57 Date Incurred Creditor Aug 2013 Crow Wing Oil Company Crow Wing Oil Company The Stewart C. Mills, Jr., Irrevocable Trust Stewart C. Mills, III Irrevocable Trust The Stewart C. Mills, Jr., Irrevocable Trust Lively Auto Company Stewart C. Mills, III Irrevocable Trust Crow Wing Oil Company The Stewart C. Mills, Jr., Irrevocable Insurance Trust Stewart C. Mills, Jr., Grandchildren's Trust Stewart C. Mills, Jr., Grandchildren's Trust Dec 2014 Apr 2003 Apr 2009 Sep 2007 Jan 2000 May 2012 Jan 2014 Type Value Demand Note Payable $100,001 - $250,000 Demand Note Payable $500,001 - $1,000,000 Stock Purchase Promissory note $1,000,001 - $5,000,000 Demand Note Payable $1,000,001 - $5,000,000 Demand Note Payable $1,000,001 - $5,000,000 Demand Note Payable $500,001 - $1,000,000 Stock Purchase Promissory note Demand Note Payable $500,001 - $1,000,000 $250,001 - $500,000 $4,850,008 $18,750,000 Total [Personal Financial Disclosure Form, October 2015] Positions Held Position Vice-President Vice-President Vice-President Vice-President Vice-President Vice-President Vice-President Vice-President Vice-President Vice-President Vice-President Vice-President Vice-President Name of Organization Fleet Wholesale Supply of Fergus Falls, Inc Fleet and Farm of Green Bay, Inc Fleet and Farm of Manitowoc, Inc Fleet and Farm of Menomonie, Inc Fleet and Farm of Plymouth, Inc Fleet and Farm of Waupaca, Inc Fleet and Farm Supply Company of West Bend, Inc. Mills Supply, Inc Mills E-Commerce Enterprises, Inc Lively Auto Company Fleet Wholesale Supply Co., Inc Mills Fleet Farm, Inc Mills Properties, Inc 58 Vice-President Vice-President Vice-President Director/Secretary/Vice President Plan Administrator Trustee/Administrator/Fiduciary Trustee Trustee Plan Administrator Plan Administrator Plan Administrator Director Mills Trucking, LLC Crow Wing Oil Company Fleet and Farm of Alexandria, Inc Mills Auto Group Reinsurance Limited Mills Supply, Inc Deferred Compensation Plan Mills Companies Employee Welfare Benefit Plan Trust Fleet Wholesale Supply Profit Sharing 401 (k) Plan and Trust Mills Auto Group Profit Sharing 401 (k) Plan and Trust Mills Companies Premium Payment Plan Mills Companies Cafeteria Plan Fleet Wholesale Supply Co., Inc Deferred Compensation Plan Minnesota Fraternal Order of Police Foundation [Personal Financial Disclosure Form, October 2015] 2014: Held Assets and “Unearned Income” Between January and May of 2014, Mills earned $88,109 in salary from Fleet Wholesale Supply Col, Inc, Brainerd, MN. [Personal Financial Disclosure Form, May 2014] 2013: Mills Received $273,487 in Earned Income In 2013, Mills earned $273,487 in salary from Fleet Wholesale Supply Col, Inc, Brainerd, MN. [Personal Financial Disclosure Form, May 2014] 2014: Mills Held Assets Worth At Least $47,218,022, and Earned Income of At Least $1,321,012 off Assets. In Preceding Year, 2013, Mills Earned Income of At Least $3,350,015 off Assets. Between January and May of 2014, Mills reported having assets worth between $47,218,022 and $153,696,000. Mills earned between $1,321,012 and $8,057,900 of income on the assets in 2014 from January to May. He earned between $3,350,015 and $18,155,400 of income on the assets in the preceding year, 2013. [Personal Financial Disclosure Form, May 2014] Asset/Source of Income Fleet Wholesale Supply Co., Inc. Profit Sharing 401(k) Plan Vanguard Institutional Index Value of Asset Amount of Amount of Income for Income for Type of Current Preceding Income Year (Jan. – Year May 2014) (2013) $250,001 $500,000 TaxDeferred 59 None None Mills Automotive Group Reinsurance, LTD Location: Brainerd/Crow Wing, MN, US Description: Self-Insurance Company related to Mills Automotive Group, Retail sales and service, MN. Mills Financial Services, Inc. Location: Brainerd/Crow Wing, MN, US Description: Holding Company for Mills Resolute Bank Comments: S-Corporation distribution is reflective of the divestment of the underlying asset, Mills Resolute Bank $1,001 $15,000 None None None $1 - $1,000 S-Corp Dist None $100,001 $1,000,000 Note Receivable - Closely Held Co Crow Wing Oil Company None Interest None $2,501 $5,000 Note Receivable - Closely Held Co Crow Wing Oil Company $100,001 $250,000 Interest $1,001 $2,500 $2,501 $5,000 Note Receivable - Closely Held Co Lively Auto Company Note Receivable - Closely Held Co Lively Auto Company Stewart C. Mills, III Irrevocable Trust Great-West Life and Annuity Insurance Company Stewart C. Mills, III Irrevocable Trust, Note-Receivable - The Steward C. Mills, Jr., Irrevocable Trust Stewart C. Mills, Jr., Irrevocable Trust US Bank bank account Stewart C. Mills, Jr., Irrevocable Insurance Trust Agreement Great-West Life and Annuity Insurance Company The Jade Dalen Mills Irrevocable Trust Demand Note Receivable - Crow $500,001 $100,000 $500,001 $1,000,000 $5,001 $15,000 $5,001 $15,000 $15,001 $50,000 $5,001 $15,000 Interest Interest $1,00,001 $5,000,000 None None None $1,000,001 $5,000,000 Interest $100,001 $1,000,000 $100,001 $1,000,000 $1,001 $15,000 Interest $1 - $ 200 $1 - $200 $1,000,001 $5,000,000 None None None $250,001 $500,000 Interest $2,501 $5,000 $5,001 $15,000 60 Wing Oil Company The Stewart C. Mills, III 2012 Irrevocable Trust Demand Note Receivable - Crow Wing Oil Company The Stewart C. Mills, III 2012 Irrevocable Trust Mills Properties, Inc. Description: Closely held business operated as “Mills Fleet Farm,” Retail, WI, MN, IA, and ND Comments: The primary purpose of this S-Corporation distribution was to pay taxes. Mills Fleet Farm and associated companies are S-Corporations and taxed at the individual level. These taxes were paid to the federal government as well as to the states of IA, MN, ND, and WI where Mills Fleet Farm operates. The Stewart C. Mills, IV Irrevocable Trust Demand Note Receivable - Crow Wing Oil Company The Stewart C. Mills, Jr., Grandchildren’s Trust Agreement $1,00,001 $5,000,000 Interest $5,001 $15,000 $15,001 $50,000 $5,000,001 $25,000,000 S-Corp Dist $100,001 $1,000,000 $100,001 $1,000,000 $250,001 $500,000 Interest $2,501 $5,000 $5,001 $15,000 Lively Auto Company Description: Closely held business operated as “Mills Fleet Farm,” Retail, WI, MN, IA, and ND. The Stewart C. Mills, Jr., Grandchildren’s Trust Agreement $250,001 $500,000 S-Corp Dist None None Mills Supply, Inc. Description: Closely held business operated as “Mills Fleet Farm,” Retail, WI, MN, IA, and ND. The Stewart C. Mills, Jr., Irrevocable Trust Fleet and Farm of Green Bay, Inc. $1,000,001 $5,000,000 S-Corp Dist None None $5,000,001 $25,000,000 S-Corp Dist $100,001 $1,000,000 $1,000,001 $5,000,000 61 Description: Closely held business operated as “Mills Fleet Farm,” Retail, WI, MN, IA, and ND Comments: The primary purpose of this S-Corporation distribution was to pay taxes. Mills Fleet Farm and associated companies are S-Corporations and taxed at the individual level. These taxes were paid to the federal government as well as to the states of IA, MN, ND, and WI where Mills Fleet Farm operates. The Stewart C. Mills, Jr., Irrevocable Trust Fleet Wholesale Supply Co., Inc. Description: Closely held business operated as “Mills Fleet Farm,” Retail, WI, MN, IA, and ND Comments: The primary purpose of this S-Corporation distribution was to pay taxes. Mills Fleet Farm and associated companies are S-Corporations and taxed at the individual level. These taxes were paid to the federal government as well as to the states of IA, MN, ND, and WI where Mills Fleet Farm operates. The Stewart C. Mills, Jr., Irrevocable Trust Mills Properties, Inc. Description: Closely held business operated as “Mills Fleet Farm,” Retail, WI, MN, IA, and ND Comments: The primary purpose of this S-Corporation distribution was to pay taxes. Mills Fleet Farm and associated companies are S-Corporations and taxed at the individual level. These taxes were paid to the federal government as well as to the $5,000,001 $25,000,000 S-Corp Dist None $1,000,001 $5,000,000 $25,000,001 $50,000,000 S-Corp Dist $1,000,001 $5,000,000 $1,000,001 $5,000,000 62 states of IA, MN, ND, and WI where Mills Fleet Farm operates. The Stewart C. Mills, Jr., Irrevocable Trust US Bank bank account Description: Trust bank account US Bancorp – Roth IRA Nuveen Funds (FAEIX) US Bank bank account Total $15,001 $50,000 $1,001 $15,000 $100,001 $250,000 $47,218,022 $153,696,000 Interest $1 - $200 $1 - $200 TaxDeferred None None None None None $1,321,012 $8,057,900 $3,350,015 $18,155,400 * Asset class details: Fleet Wholesale Supply Co., Inc. Profit Sharing 401(k) Plan Stewart C. Mills, III Irrevocable Trust Stewart C. Mills, Jr., Irrevocable Insurance Trust Agreement The Jade Dalen Mills Irrevocable Trust The Stewart C. Mills, III 2012 Irrevocable Trust The Stewart C. Mills, IV Irrevocable Trust The Stewart C. Mills, Jr., Grandchildren’s Trust Agreement The Stewart C. Mills, Jr., Irrevocable Trust US Bancorp – Roth IRA [Personal Financial Disclosure Form, Filed 5/14/14] 2014 Personal Financial Disclosure Form Mills Held At Least $45,751,013 of Assets in Trusts in Current Year, and Earned Income of At Least $1,310,008 off Assets Held in Trusts. In 2013, Mills Earned Income of At Least $3,225,009 off Assets Held in Trusts. Of his assets held between January and May of 2014, Mills reported holding between $45,751,013 and $151,515,000 in trusts. During that time, Mills earned between $1,310,008 and $8,025,200 in income from his assets held in trust. In the preceding year, 2013, Mills earned between $3,225,009 and $17,080,200 in income from his assets held in trust. [Personal Financial Disclosure Form, May 2014] Asset/Source of Income Value of Asset Type Stewart C. Mills, III Irrevocable Trust Great-West Life and Annuity Insurance Company $1,00,001 $5,000,000 None 63 Amount of Amount of Income for Income for Current Preceding Year (Jan. – Year May 2014) (2013) None None Stewart C. Mills, III Irrevocable Trust, Note-Receivable - The Steward C. Mills, Jr., Irrevocable Trust Stewart C. Mills, Jr., Irrevocable Trust US Bank bank account Stewart C. Mills, Jr., Irrevocable Insurance Trust Agreement Great-West Life and Annuity Insurance Company The Jade Dalen Mills Irrevocable Trust Demand Note Receivable - Crow Wing Oil Company The Stewart C. Mills, III 2012 Irrevocable Trust Demand Note Receivable - Crow Wing Oil Company The Stewart C. Mills, III 2012 Irrevocable Trust Mills Properties, Inc. Description: Closely held business operated as “Mills Fleet Farm,” Retail, WI, MN, IA, and ND Comments: The primary purpose of this S-Corporation distribution was to pay taxes. Mills Fleet Farm and associated companies are SCorporations and taxed at the individual level. These taxes were paid to the federal government as well as to the states of IA, MN, ND, and WI where Mills Fleet Farm operates. The Stewart C. Mills, IV Irrevocable Trust Demand Note Receivable - Crow Wing Oil Company The Stewart C. Mills, Jr., Grandchildren’s Trust Agreement Lively Auto Company Description: Closely held business operated as “Mills Fleet Farm,” Retail, WI, MN, IA, and ND. $1,000,001 $5,000,000 Interest $100,001 $1,000,000 $100,001 $1,000,000 $1,001 $15,000 Interest $1 - $ 200 $1 - $200 $1,000,001 $5,000,000 None None None $250,001 $500,000 Interest $2,501 $5,000 $5,001 $15,000 $1,00,001 $5,000,000 Interest $5,001 $15,000 $15,001 $50,000 $5,000,001 $25,000,000 S-Corp Dist $100,001 $1,000,000 $100,001 $1,000,000 $250,001 $500,000 Interest $2,501 $5,000 $5,001 $15,000 $250,001 $500,000 S-Corp Dist None None 64 The Stewart C. Mills, Jr., Grandchildren’s Trust Agreement Mills Supply, Inc. Description: Closely held business operated as “Mills Fleet Farm,” Retail, WI, MN, IA, and ND. The Stewart C. Mills, Jr., Irrevocable Trust Fleet and Farm of Green Bay, Inc. Description: Closely held business operated as “Mills Fleet Farm,” Retail, WI, MN, IA, and ND Comments: The primary purpose of this S-Corporation distribution was to pay taxes. Mills Fleet Farm and associated companies are SCorporations and taxed at the individual level. These taxes were paid to the federal government as well as to the states of IA, MN, ND, and WI where Mills Fleet Farm operates. The Stewart C. Mills, Jr., Irrevocable Trust Fleet Wholesale Supply Co., Inc. Description: Closely held business operated as “Mills Fleet Farm,” Retail, WI, MN, IA, and ND Comments: The primary purpose of this S-Corporation distribution was to pay taxes. Mills Fleet Farm and associated companies are SCorporations and taxed at the individual level. These taxes were paid to the federal government as well as to the states of IA, MN, ND, and WI where Mills Fleet Farm operates. The Stewart C. Mills, Jr., Irrevocable Trust Mills Properties, Inc. Description: Closely held business operated as “Mills Fleet Farm,” Retail, WI, MN, IA, and ND Comments: The primary purpose of $1,000,001 $5,000,000 S-Corp Dist None None $5,000,001 $25,000,000 S-Corp Dist $100,001 $1,000,000 $1,000,001 $5,000,000 $5,000,001 $25,000,000 S-Corp Dist None $1,000,001 $5,000,000 $25,000,001 $50,000,000 S-Corp Dist $1,000,001 $5,000,000 $1,000,001 $5,000,000 65 this S-Corporation distribution was to pay taxes. Mills Fleet Farm and associated companies are SCorporations and taxed at the individual level. These taxes were paid to the federal government as well as to the states of IA, MN, ND, and WI where Mills Fleet Farm operates. The Stewart C. Mills, Jr., Irrevocable Trust US Bank bank account Description: Trust bank account Total $15,001 $50,000 $45,751,013 $151,515,000 Interest $1 - $200 $1 - $200 $1,310,008 $8,025,200 $3,225,009 $17,080,200 [Personal Financial Disclosure Form, May 2014] Held Liabilities of $8,100,007 to $37,250,000 Between January and May 2014, Mills held liabilities of $8,100,007 to $37,250,000 that were incurred between January 2000 and January 2014. [Personal Financial Disclosure Form, May 2014] The following outlines Mills’ liabilities: 66 Date Incurred Creditor Type Value Aug 2013 Crow Wing Oil Company The Stewart C. Mills, Jr., Irrevocable Trust Stewart C. Mills, III Irrevocable Trust The Stewart C. Mills, Jr., Irrevocable Trust Lively Auto Company Stewart C. Mills, III Irrevocable Trust Crow Wing Oil Company The Stewart C. Mills, Jr., Irrevocable Insurance Trust Crow Wing Oil Company Stewart C. Mills, Jr., Grandchildren's Trust - Stewart C. Mills, Jr. Stewart C. Mills, Jr., Grandchildren's Trust - Crow Wing Oil Company Demand Note Payable $100,001 - $250,000 Stock Purchase Promissory note $1,000,001 - $5,000,000 Demand Note Payable $5,000,001 $25,000,000 Demand Note Payable $1,000,001 - $5,000,000 Demand Note Payable $250,001 - $500,000 Stock Purchase Promissory note $500,001 - $1,000,000 Demand Note Payable $250,001 - $500,000 Apr 2003 Apr 2009 Sep 2007 Jan 2000 May 2012 Jan 2014 $8,100,007 – $37,250,000 Total [Personal Financial Disclosure Form, May 2014] Position Name of Organization Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Fleet Wholesale Supply of Fergus Falls, Inc. Fleet and Farm of Green Bay, Inc. Fleet and Farm of Manitowoc, Inc. Fleet and Farm of Menomonie, Inc. Fleet and Farm of Plymouth, Inc. Fleet and Farm of Waupaca, Inc. Fleet and Farm Supply Company of West Bend, Inc. Mills Supply, Inc. Mills E-Commerce Enterprises, Inc. Lively Auto Company Fleet Wholesale Supply Co., Inc. Mills Fleet Farm, Inc. 67 Vice President Vice President Vice President Vice President Director/Secretary/Vice President President Plan Administrator Trustee/Administrator/Fiduciary Trustee Trustee Plan Administrator Plan Administrator Plan Administrator Director/Secretary/Vice President Mills Properties, Inc. Mills Trucking, LLC Crow Wing Oil Company Fleet and Farm of Alexandria, Inc. Mills Auto Group Reinsurance Limited Mills Financial Services, Inc. Mills Supply, Inc. Deferred Compensation Plan Mills Companies Employee Welfare Benefit Plan Trust Fleet Wholesale Supply Profit Sharing 401(k) Plan and Trust Mills Auto Group Profit Sharing 401(K) Plan and Trust Mills Companies Premium Payment Plan Mills Companies Cafeteria Plan Fleet Wholesale Supply Co., Inc Deferred Compensation Plan Minnesota Fraternal Order of Police Foundation [Personal Financial Disclosure Form, May 2014] 2013: Held Assets and “Unearned Income” According to Mills’ 2013 personal financial disclosure statement, he held $46,534,023- $150,260,000 in assets and “unearned income.” [Mills PFD, filed 8/20/13] The following table outlines his assets and unearned income: Asset or Income Source US Bank Account Note ReceivableClosely Held Co Crow Wing Oil Co Note ReceivableClosely Held Co Crow Wing Oil Co Note ReceivableClosely Held Co Lively Auto Value of Asset Type of Income Current Year Preceding Year $15,001-$50,000 None None None None Interest $5,001-$15,000 $5,001-$15,000 $100,001$250,000 Interest $2,501-$5,000 $2,501-$5,000 $500,001$1,000,000 Interest $5,001-$15,000 $5,001-$15,000 68 Company Note ReceivableClosely Held Co Lively Auto Company Fleet Wholesale Supply Co Inc. Profit Sharing 401(k) Plan US BancorpRoth IRA FAEIX-Nuveen Funds Mills Automotive Group Reinsurance, LTD -self insurance company related to Mills Auto Group retail sales and service, Minnesota Mills Financial Services, Inc. The Stewart C. Mills, Jr., Irrevocable Trust *closely held businesses operated as “Mills Fleet Farm” Retail WI, MN, IA, ND: -Fleet Wholesale Supply Co., Inc. -Fleet and Farm of Green Bay, Inc. -Mills Properties, Inc. US Bank Account Stewart C. Mills, III Irrevocable $500,001$1,000,000 Interest None None $250,001$500,000 Tax-Deferred None None $1,001-$15,000 Tax-Deferred None None None None $1,001-$15,000 $1,001-$15,000 S Corp Dist. None None $5,000,001$25,000,000 S Corp Dist. None $100,001$1,000,000 $5,000,001$25,000,000 S Corp Dist. None $1,000,001$5,000,000 $25,000,001$50,000,000 $15,001-$50,000 S Corp Dist. None Interest $1-$200 $1,000,001$5,000,000 $1-$200 $1,000,001$5,000,000 Interest $100,001$1,000,000 $100,001$1,000,000 69 Trust -Note Receivable, The Stewart C. Mills, Jr. Irrevocable Trust US Bank Account Great-West Life & Annuity Insurance Company-Whole Life Policies Stewart C. Mills, Jr. Irrevocable Insurance Trust Agreement - Great-West Life & Annuity Insurance Company-Whole Life Policies The Stewart C. Mills, III 2012 Irrevocable Trust *closely held businesses operated as “Mills Fleet Farm” Retail WI, MN, IA, ND -Mills Properties, Inc. The Stewart C. Mills, III 2012 Irrevocable Trust -Demand Note Receivable, Crow Wing Oil Company The Stewart C. Mills, Jr. Grandchildren’s Trust Agreement *closely held businesses $1,001-$15,000 Interest $1-$200 $1-$200 $1,000,001$5,000,000 None None None $1,000,001$5,000,000 None None None $5,000,001$25,000,000 S Corp Dist. None $100,001$1,000,000 $500,001$1,000,000 Interest $5,001-$15,000 None $1,000,001$5,000,000 S Corp Dist. None None 70 operating as “Mills Fleet Farm” Retail WI, MN, IA, ND -Mills Supply, Inc. -Lively Auto Company -Demand Note Receivable, Crow Wing Oil Company The Stewart C. Mills, IV Irrevocable Trust -Demand Note Receivable, Crow Wing Oil Company The Jade Dalen Mills Irrevocable Trust -Demand Note Receivable, Crow Wing Oil Company Total $250,001$500,000 $50,001$100,000 S Corp Dist. None None Interest $2,501-$5,000 None $250,001$500,000 Interest $2,501-$5,000 $5,001-$15,000 $100,001$250,000 Interest $2,501-$5,000 $5,001-$15,000 $125,010$1,065,400 $2,322,512$13,065,400 $46,534,023$150,260,000 [Mills PFD, filed 8/20/13] MinnPost Headline: Nolan opponent Stewart Mills' stake in Fleet Farm: Between $41M and $150M In their 2013 article about Mills’ stake in Fleet Farm, the MinnPost gave it the headline, “Nolan opponent Stewart Mills' stake in Fleet Farm: Between $41M and $150M.” [MinnPost, 8/29/13] Held $13,850,008 to $66,750,000 in Trusts According to Mills’ 2013 personal financial disclosure statement, he held $13,850,008 to $66,750,000 in trusts. [Mills PFD, filed 8/20/13] The following table outlines his trusts: Asset or Income Source Value of Asset Type of Income 71 Current Year Preceding Year Stewart C. Mills, III Irrevocable Trust -Note Receivable, The Stewart C. Mills, Jr. Irrevocable Trust Stewart C. Mills, Jr. Irrevocable Insurance Trust Agreement - Great-West Life & Annuity Insurance Company-Whole Life Policies The Stewart C. Mills, III 2012 Irrevocable Trust *closely held businesses operated as “Mills Fleet Farm” Retail WI, MN, IA, ND -Mills Properties, Inc. The Stewart C. Mills, III 2012 Irrevocable Trust -Demand Note Receivable, Crow Wing Oil Company The Stewart C. Mills, Jr. Grandchildren’s Trust Agreement *closely held businesses operating as “Mills Fleet Farm” Retail WI, MN, IA, ND -Mills Supply, $1,000,001$5,000,000 Interest $100,001$1,000,000 $100,001$1,000,000 $1,000,001$5,000,000 None None None $5,000,001$25,000,000 S Corp Dist. None $100,001$1,000,000 $500,001$1,000,000 Interest $5,001-$15,000 None $1,000,001$5,000,000 S Corp Dist. None None 72 Inc. The Stewart C. Mills, IV Irrevocable Trust -Demand Note Receivable, Crow Wing Oil Company The Jade Dalen Mills Irrevocable Trust -Demand Note Receivable, Crow Wing Oil Company The Stewart C. Mills, Jr., Irrevocable Trust *closely held businesses operated as “Mills Fleet Farm” Retail WI, MN, IA, ND: -Fleet Wholesale Supply Co., Inc. Total $250,001$500,000 Interest $2,501-$5,000 $5,001-$15,000 $100,001$250,000 Interest $2,501-$5,000 $5,001-$15,000 $5,000,001$25,000,000 S Corp Dist. None $100,001$1,000,000 $110,004 to $1,025,000 $310,005 to $3,030,000 $13,850,008 to $66,750,000 Earned Income According to Mills’ 2013 personal financial disclosure statement, he earned a salary of $568,329 from Fleet Wholesale Co, Inc. in 2012. [Mills PFD, filed 8/20/13] The following table outlines his earned income: Source Fleet Wholesale Supply Co, Inc. Brainerd MN Type Salary Current Year $196,707 Preceding Year $568,329 [Mills PFD, filed 8/20/13] Liabilities According to Mills’ 2013 personal financial disclosure statement, he held $7,750,005-$36,500,000 in liabilities. 73 The following table outlines his liabilities: Creditor Date Incurred Type of Liability Stock Purchase Promissory Note Amount of Liability $1,000,001$5,000,000 Stewart C. Mills, Jr. Irrevocable Trust --Stewart C. Mills, III Irrevocable Trust --Lively Auto Company Stewart C. Mills, III Irrevocable Trust --Crow Wing Oil Company Stewart C. Mills, Jr. Irrevocable Insurance Trust --Crow Wing Oil Company Stewart C. Mills Jr., Grandchildren’s Trust Agreement --Stewart C. Mills, Jr. Total April 2003 Demand Note Payable Demand Note Payable $5,000,001$25,000,000 $1,000,001$5,000,000 January 2000 Demand Note Payable $250,001$500,000 May 2012 Stock Purchase Promissory Note $500,001$1,000,000 April 2009 September 2007 $7,750,005$36,500,000 [Mills PFD, filed 8/20/13] Positions Held According to Mills’ 2013 personal financial disclosure statement, he held 26 positions. The following table outlines these positions: Position Vice President Name of Organization Fleet Wholesale Supply Co., Inc. 74 Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Mills Fleet Farm, Inc. Mills Properties, Inc. Mills Trucking, LLC Crow Wing Oil Company Fleet and Farm of Alexandria, Inc. Fleet Wholesale Supply of Fergus Falls, Inc. Fleet and Farm of Green Bay, Inc. Fleet and Farm of Manitowoc, Inc. Fleet and Farm of Menomonie, Inc. Fleet and Farm of Plymouth, Inc. Fleet and Farm of Waupaca, Inc. Fleet and Farm Supply Company of West Bend, Inc. Mills Supply, Inc. Mills E-Commerce Enterprises, Inc. Lively Auto Company Mills Automotive Group Reinsurance Ltd Mills Financial Services, Inc. Mills Supply, Inc. Deferred Compensation Plan Mills Companies Employee Welfare Benefit Plan Trust Fleet Wholesale Supply Profit Sharing 401(K) Plan and Trust Mills Auto Group Profit Sharing 401 (K) Plan and Trust Mills Companies Premium Payment Plan Mills Companies Cafeteria Plan Fleet Wholesale Supply Co., Inc. Deferred Compensation Plan Minnesota Fraternal Order of Police Foundation Vice President Vice President Vice President Director/Secretary/Vice President President Plan Administrator Trustee/Administrator/Fiduciary Trustee Trustee Plan Administrator Plan Administrator Plan Administrator Director [Mills PFD, filed 8/20/13] Earned Millions More While Taking Salary Pay Cut Between 2012 and 2013 Mills increase in Unearned Assists between $1,027,503 and $5,090,000, while taking a $294,842 pay cut in salary. 2013 Unearned Assists: $3,350,015 and $18,155,400 The following table outlines his assets and unearned income: Asset/Source of Income Value of Asset Type of Income Amount of Income for Current Year (2014) 75 Amount of Income for Preceding Year Total $47,218,022 $153,696,000 $1,321,012 - $8,057,900 (2013) $3,350,015 $18,155,400 [Personal Financial Disclosure Form, Filed 5/14/14] 2013 Mills Received $273,487 in Earned Income According to Mills’ 2013 personal financial disclosure statement, he earned a salary of $273,487 from Fleet Wholesale Co, Inc. in 2013. [Personal Financial Disclosure Form, May 2014] 2013 Mills Collected Up to 93.6% of his Asset Income from S-Corp In 2013, Mills collected between $3,200,005 and $17,000,000 in S-Corp distribution, while collecting between $3,350,015 and $18,155,400 in total asset income. [Personal Financial Disclosure Form, May 2014] 2012 Unearned Assists: $2,322,512 and $13,065,400 The following table outlines his assets and unearned income: Asset or Income Source Total Value of Asset Type of Income $46,534,023$150,260,000 Current Year (2013) $125,010$1,065,400 Preceding Year (2012) $2,322,512$13,065,400 [Personal Financial Disclosure Form, Filed 8/21/13] 2012 Earned Income: $568,329 According to Mills’ 2013 personal financial disclosure statement, he earned a salary of $568,329 from Fleet Wholesale Co, Inc. in 2012. [Personal Financial Disclosure Form, Filed 8/21/13] 2012 Mills Collected Up to 91.8% of his Asset Income from S-Corp In 2012, Mills collected between $2,200,004 and $12,000,000 in S-Corp distribution, while collecting between $2,322,512 and $13,065,400 in total asset income. [Personal Financial Disclosure Form, May 2014] 76 Professional Career Significant Findings 2015: Listed 25 different positions on personal financial disclosure form 2013: Listed as Vice President of oil company In 2015, Mills listed 25 different positions that he held on his personal financial disclosure form. In 2013, Mills listed 26 different positions on his personal financial disclosure form, including as vice president of an oil company. 2000-2010: Director Of Personnel For Fleet Farm Between 2000 and 2010, Mills served as the director of personnel for Mills Fleet Farm. He oversaw the administration and management of a workforce of more than 6,000 and health insurance, 401k, profit sharing and other benefit plans. [Stewart Mills Campaign Website, accessed 9/06/13] Worked For His Family’s Businesses Since He Was 14 Years Old According to Mill campaign website, Mills has been working at his family’s businesses since he was 14 years old and that after graduating college “entered Fleet Farm’s store management program, working at a number of different Fleet Farm stores.” [Stewart Mills Campaign Website, accessed 2/22/14] 2010-Present: Vice President For Fleet Farm Since 2010, Mills has served as the Vice President of Mills Fleet Farm. According to his campaign website, he was the “originator of FleetFarm.com, innovative health care plans, Mills Indoor Shooting and Archery, brands of Firearms and accessories and the “We Love It! Outdoors” Television series. [Stewart Mills Campaign Website, accessed 9/06/13] Earned Income According to Mills’ 2013 personal financial disclosure statement, he earned a salary of $568,329 from Fleet Wholesale Co, Inc. in 2012. [Mills PFD, filed 8/20/13] The following table outlines his earned income: Source Fleet Wholesale Supply Co, Inc. Type Salary Current Year $196,707 77 Preceding Year $568,329 Brainerd MN [Mills PFD, filed 8/20/13] 2013: Disclosed 25 Positions In Mills Fleet Farm Company Family According to Mills’ 2013 personal financial disclosure form, he held 25 positions within the Mills Fleet Farm company family. The table below outlines these positions: Position Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Director/Secretary/Vice President President Plan Administrator Trustee/Administrator/Fiduciary Trustee Trustee Plan Administrator Plan Administrator Plan Administrator Name of Organization Fleet Wholesale Supply Co., Inc. Mills Fleet Farm, Inc. Mills Properties, Inc. Mills Trucking, LLC Crow Wing Oil Company Fleet and Farm of Alexandria, Inc. Fleet Wholesale Supply of Fergus Falls, Inc. Fleet and Farm of Green Bay, Inc. Fleet and Farm of Manitowoc, Inc. Fleet and Farm of Menomonie, Inc. Fleet and Farm of Plymouth, Inc. Fleet and Farm of Waupaca, Inc. Fleet and Farm Supply Company of West Bend, Inc. Mills Supply, Inc. Mills E-Commerce Enterprises, Inc. Lively Auto Company Mills Automotive Group Reinsurance Ltd Mills Financial Services, Inc. Mills Supply, Inc. Deferred Compensation Plan Mills Companies Employee Welfare Benefit Plan Trust Fleet Wholesale Supply Profit Sharing 401(K) Plan and Trust Mills Auto Group Profit Sharing 401 (K) Plan and Trust Mills Companies Premium Payment Plan Mills Companies Cafeteria Plan Fleet Wholesale Supply Co., Inc. Deferred Compensation Plan [Mills PFD, filed 8/20/13] 78 …Mills Properties, Inc. Significant Findings Received maximum public subsidy of $1.48 million from City of Carver State Department of Transportation money contributed $300,000 in road work to help with traffic flow at a new Farm Fleet location Received $10,500 from City of Menomonie for sewer and water improvements Mills Properties has received nearly $1.8 million in public subsidies funded by federal taxpayers and taxpayers in Minnesota and Wisconsin. Family Business Accepted Millions Of Taxpayer Dollars Between 1983 and 2013, Mills Properties received nearly $1.7 million from state governments. [Chanhassen Villager, 3/28/13; City of Menomonie; Tax Increment Development Agreement, Oakdale Minnesota, 6/19/13] 2013: Received Projected Maximum Public Subsidy $1.48 Million From City Of Carver In March 2013, the City of Carver, Minnesota Council agreed to provide Mills Properties a maximum public subsidy of $1.48 million for launching development of the freeway commercial district. The Chanhassen Villager reported that the interest earnings increased the projected total subsidy pay-out to $1, 485, 975, according to the city's financial consultant, Ehlers Inc. of Roseville. The maximum base subsidy for Mills Properties was $991, 287 but that amount was supplemented by simple, non-compounding interest at 6.5 percent per year. [Chanhassen Villager, 3/28/13] Public Subsidy Paid from 90 percent of Tax Money Funneled into the TIF District In March 2013, the Chanhassen Villager reported that the subsidy to Mills Properties was paid from 90 percent of the tax money that would be funneled into the TIF district, according to the tax increment promissory note issued in August 2012. The city government would keep the other 10 percent as an administrative fee. [Chanhassen Villager, 3/28/13] City Scheduled to Rebate $94,410.11 of 2013 taxes to Mills Properties 79 In March 2013, the City of Carver was scheduled to rebate $94, 410.11 of 2013 taxes to Mills Properties. [Chanhassen Villager, 3/28/13] City And State DOT Contributed $300,000 In Road Work For Traffic Flow At Farm Fleet Location In 2009, the Department of Transportation money contributed $300,000 in road work to help with traffic flow at a new Farm Fleet location. Mills Fleet Farm planned to cover $1 million of the $1.3 million cost. [Star Tribune, 8/02/09] 1983: Received $10,500 From City Of Menomonie For Sewer And Water Improvements In 1983, Mills Properties, Inc. received $10,500 from City of Menomonie, Wisconsin for sewer and water improvements. [City of Menomonie] NOTE: Mills did not have an executive position in the company at this time. 1989: Entered In A TIF Agreement With Oakdale, Minnesota In June 1989, the City of Oakdale’s Housing and Redevelopment Authority funded part of a Mills Properties construction project by financing public improvements and site improvements from general oblation tax increment bonds. According to the agreement, the city agreed to reimburse Mills Properties $96,000 for the cost of a portion of the site improvements. The agreement also state that the construction would cost no less than $4,254,600. [Tax Increment Development Agreement, Oakdale Minnesota, 6/19/13] Company Reportedly Paid $26,000 In Property Taxes On A Taxable Valuation Of $3.3 Million According to the Free Press, Fleet Farm paid $26,000 in property taxes on a 3.3 million taxable valued piece of land. [Free Press, 2/03/13] 80 …Mills Fleet Farm Significant Findings November 2015: Company was in the process of being sold, which Mills said was a “painful decision” for his family Mills and other shareholders stood to profit a potential $1.1 billion from the sale January 2016: KKR, a private equity firm based in New York City, purchased Mills Fleet Farm for an estimated $1.2 billion; exact terms of the sale were not disclosed Family members retained a minority stake in the company and were expected to serve as advisers Has been Vice President of Mills Fleet Farm since 2010 and worked for the company since graduating college January 2016: the state of Minnesota fined Mills Fleet Farm in Mankato $40,000 for selling illegally gas prices that drove out smaller neighboring competitors Company denied Salvation Army the right to place bell ringers outside his stores Local labor union accused Mills Fleet Farm of using temporary workers at minimum wage Small fishing store closed its doors because of Mills Fleet Farm store competition Local bait shop owner complained of Mills Fleet Farm’s “dominance” Man was accused of buying firearms without a license at several Mills Fleet Farm stores, he tried selling gun online for a profit Courts found Mills Fleet Farm liable in four cases, individuals were awarded $3,772.04 81 Mills is following in his family footsteps and currently serves as the vice president of Mills Fleet Farm. The company denied the Salvation Army the right to place bell ringers outside his stores. A local labor union accused Mills Fleet Farm of using temporary workers at minimum wage. Small business owners claim that Mills’ company is pushing them out of business. A small fishing store closed its doors because of Mills Fleet Farm store competition and a local bait shop owner complained of Mills Fleet Farm’s “dominance.” In addition, individuals bought supplies from the Mills Fleet Farm retail stores to make pipe bombs and a man was accused of buying firearms without a license at several Mills Fleet Farm stores, he tried selling gun online for a profit. In October 2015, Mills announced that the company was preparing to sell the company in order to remain competitive and fuel its growth. Mills said it was a “painful decision” for his family but was right for the company’s long-term future. He also said they hoped to take care of their employees when finalizing details of the sale. Mills said that he would no longer be involved in the company until the deal was completed, which was likely to be sometime in 2016. Mills said he planned to be involved with “very quiet philanthropy, but also very loud public service” once he was left the company until the sale was completed. Mills and other shareholders stood to profit a potential $1.1 billion from the sale. In January 2016, KKR, a private equity firm based in New York City, bought Mills Fleet Farm for an estimated $1.2 billion, including debt though exact terms of the sale were not disclosed. Mills said he was saddened by the sale but that the company was looking for additional capital to expand locations beyond the Midwest and update their warehouse and infrastructure. Members of the Mills family retained a minority stake in the company and planned to keep their offices while serving as advisers to the company. At the time of the purchase, Mills Fleet Farm employed 6,500 full and part-time workers. Mills Fleet Farm History Stewart C. Mills, Sr. Founded Mills Companies In 1922; Started With Auto Dealerships And Then Established An Oil Company. “1922: Mills Company Founded. Brainerd, MN. Mills companies are founded when Stewart C. Mills Sr. buys the Lively Auto Company in Brainerd selling Chevrolets and Hupmobiles … 1923: Mills starts Crow Wing Oil. Mills starts Crow Wing Oil Company, the region’s largest pure oil and bulk oil distributor and gas station operator.” [Mills Fleet Farm, “Our History,” accessed 1/15/16] First Fleet Wholesale Supply Store Opened In Marshfield, Wisconsin, In 1955. “1955: First Fleet Wholesale Supply opens. Marshfield, WI. Stewart C. Mills, his sons Stewart, Jr., and Henry C. Mills II open the first Fleet Wholesale Supply in Marshfield, WI, to sell merchandise direct to farmers.” [Mills Fleet Farm, “Our History,” accessed 1/15/16] 82 Mills Fleet Farm Building A New Store In Hermantown, Minnesota, Expected To Open In 2016; Expanded The Chain To 36 Locations In Minnesota, Wisconsin, Iowa, And North Dakota. “Site work for the new 183,000-square-foot Mills Fleet Farm store in Hermantown continued in earnest this past week. By the time the preparations are complete, an estimated 200,000 cubic yards of material will have been moved. Fleet Farm Vice President Stewart Mills III said he expects the store's precast concrete walls to be tilted into place and reinforced with steel in the next week or two. ‘It's imperative we get the store enclosed before winter, and fortunately, we've been able to stay on schedule so far,’ Mills said. He said he hopes to open the new Hermantown store by late summer or the early fall of next year. It will be the 36th retail outlet in the Brainerd-based chain. Mills Fleet Farm most recently opened a store this March in Mankato, Minn. The company now boasts stores in Minnesota, Wisconsin, Iowa and North Dakota.” [Duluth News-Tribune, 9/14/15] Mills Fleet Farm Was Run By Members Of The Mills Family. “The Mills Companies were started in 1922 in Brainerd MN, by Stewart Mills, Sr. with an emphasis in the automotive industry. The Fleet Farm component of the Mills Companies was added by Stew Jr. and Hank Mills in 1955 as outgrowth of Stewart Sr.’s auto parts stores. Mills Fleet Farm is a growing, closely held, multi-generational family business based out of Brainerd with 32 retail locations and on the web at www.fleetfarm.com. Today the Mills Companies are headed by Henry Mills II and Stew Mills Jr., assisted by their children Charlie, Andrew, Marisa and Stewart.” [Stewart Mills Facebook, “About,” accessed 1/16/15] January 2016: KKR, A Private Equity Firm Based In New York City, Bought Mills Fleet Farm For An Estimated $1 Billion January 2016: KKR, A Private Equity Firm Based In New York City, Bought Mills Fleet Farm For An Estimated $1 Billion. “Kohlberg Kravis Roberts & Company will buy Mills Fleet Farm, a familyowned discount retailer with stores in the Midwest, for undisclosed terms in its first deal of the year and one that builds on its portfolio of retail companies. Mills Fleet Farm, based in Appleton, Wis., and Brainerd, Minn., sells a range of goods, including clothes, children's toys, auto parts, firearms and farming supplies through 35 stores in Minnesota, Wisconsin, Iowa and North Dakota. It was founded in 1955 by Stewart Mills Sr. and has been run by his sons, Henry Mills II and Stewart Mills Jr. The founder's grandson, Stewart Mills III, is running for Congress in Minnesota. Hugh Leasum, who is on Mills Fleet Farm's executive team, is expected to stay with the company after the deal closes. The family will retain a minority stake … Mills Fleet Farm said last fall it was exploring a sale, looking for new capital to help expand. Earlier reports said Kohlberg Kravis paid about $1 billion.” [New York Times, 1/06/16] Estimated That KKR Bought Mills Fleet Farm For More Than $1.2 Billion, Including Debt. “Buyout firm KKR & Co Lp is in the lead to acquire U.S. outdoor retailer Mills Fleet Farm for more than $1.2 billion, including debt, according to people familiar with the matter, defying a slowdown in private equity dealmaking.” [Reuters, 12/10/15] Exact Terms Of The Sale Were Not Disclosed But Value Of Sale Was Based On Estimates. “Family-owned Mills Fleet Farm has agreed to sell to New York-based KKR, one of the country’s largest investment concerns that has holdings in various industries totaling about $100 billion. Terms of the deal, expected to be announced Tuesday, were not disclosed. However, after the Mills family put the privately held chain of 35 stores up for sale last fall there was speculation in the investment 83 trade nationally that it would fetch in neighborhood of $1 billion. Reuters last month cited unnamed sources putting a likely price tag at more than $1.2 billion, including debt.” [Star Tribune, 1/05/16] Mills Fleet Farm Employed 6,500 Full And Part-Time Workers. “Mills Fleet Farm, which doesn’t publicly disclose sales or results, operates its stores in rural towns and suburbs of Minnesota, Iowa, Wisconsin and North Dakota. It employs 6,500 full- and part-time workers, including about 75 at its corporate office in Brainerd. It also employs several hundred employees in merchandising and operations in Appleton, Wis., said Hugh Leasum, a senior executive of Mills who will remain with the company.” [Star Tribune, 1/05/16] Said He Was Saddened About The Sale Of His Family’s Business. “Stewart Mills III told WCCO’s Pat Kessler recently that he was saddened by the family’s sale. Business experts say it is rare for a family business to maintain control beyond several generations.” [CBS Minnesota, 1/05/16] KKR Said They Would Invest In Opening More Stores As Well As Adding Infrastructure And Jobs KKR Said They Would Invest In Opening More Stores As Well As Adding Infrastructure And Jobs. “‘We anticipate investing significantly in the business, adding infrastructure, stores and local jobs,’ Taylor said in a statement. He added that KKR would ‘remain committed to Mills Fleet Farm’s founding values — and those shared by KKR — of honesty, integrity, hard work, service and loyalty to our customers and partners.’” [Star Tribune, 1/05/16] Said Mills Fleet Farm Needed More Capital To Build More Stores And Upgrade Their Warehouse. “The family has declined to comment to the Star Tribune since the business went up for sale last fall. Stewart Mills III, a third-generation executive, told the Brainerd Daily Dispatch in October that the retailer needed deeper pockets to expand in order to add stores and update the company’s warehouse. He also said the distribution network needs updating and investment. Stewart Mills III is a grandson of the founder and is making a second run for Congress in the Eighth District.” [Star Tribune, 1/05/16] Mills Fleet Farm Sought Additional Capital To Expand Their Stores Outside Of The Midwest. “Despite the company’s 60 years of success, Mills Fleet Farm did not have the necessary resources to expand beyond the Midwest. That is why company owners decided the best thing to do was put the chain up for sale. New York investment firm KKR announced Tuesday it had reached a deal to acquire Mills. But the challenge for KKR will be navigating the needed changes while not alienating the chain’s loyal customer base.” [CBS Minnesota, 1/05/16] KKR Also Owns Academy Sports, Outdoors, US Foods, And Toys “R” Us Stores. “The private equity firm also owns stakes in Academy Sports and Outdoors of Katy, Tex.; US Foods in Chicago; and Toys ‘R’ Us of Wayne, N.J. … Nathaniel H. Taylor, the head of Kohlberg Kravis's consumer retail group in the Americas, said the firm would invest in Mills Fleet Farm to add infrastructure and stores.” [New York Times, 1/06/16] Mills Family Still Retaining A Small Ownership Stake In The Company And Members Of The Family Were Expected To Keep Offices And Serve As Advisers 84 Mills Family Still Retaining A Small Ownership Stake In The Company And Members Of The Family Were Expected To Keep Offices And Serve As Advisers. “The Mills family will retain a small ownership stake in the company. Some Mills family members are even expected to maintain offices and work as advisers.” [CBS Minnesota, 1/05/16] October 2015: Announced That Mills Fleet Farm Was In The Process Of Being Sold To New Owners; Employed 6,000 People As Of October 2015 And Had More Than 30 Stores In Four States October 2015: Announced That Mills Fleet Farm Was In The Process Of Being Sold To New Owners; Currently Employed 6,000 People And Had More Than 30 Stores In Four States. “Mills Fleet Farm may have a new ownership later this year or early in 2016. Wednesday, Mills Fleet Farm confirmed it is in the process of looking at a large pool of business suitors to find the right one to take the company to the next level of growth for the future. The family company, which makes its headquarters in Brainerd, first started serving customers as Fleet Wholesale Supply in 1955 and now employs about 6,000 in Minnesota, Wisconsin, Iowa and North Dakota. The company's 36th store is currently under construction in Hermantown, Minn., near Duluth and will continue for a planned 2016 opening.” [Forum News Service, 10/07/15] Mills: “We Have Several Interested Parties … We Care Very Much About Our Employees And We Want To Make Sure Whoever The New Owners Are They Take Very Good Care Of Them.” “‘We have several interested parties, but we are sorting through those interested parties to make sure they are the best fit for us organizationally and also the best fit for our employees,’ Mills said. ‘We care very much about our employees and we want to make sure whoever the new owners are they take very good care of them. (The employees) have taken very good care of us.’” [Forum News Service, 10/07/15] October 2014: Remarked During Debate That His Family’s Business Had “No Venture Capital Money” Or “Private Equity Money.” “Again, we’re we’re not publicly traded. There’s no venture capital money. There’s no private equity money. It’s a family business like any other. And if they want to attack me and my family for the success and the jobs that we’ve created, well, then that’s their message. Their message is picking on my hair.” [The Uptake, Debate Transcript, 10/06/14] Said It Was “A Painful Decision For The Mills Family” But The Right One For The Company’s Long-Term Future; Said Capital From A Larger Company Was Necessary To Continue Mills Fleet Farm’s Growth Said It Was “A Painful Decision For The Mills Family” But The Right One For The Company’s Long-Term Future; Said Capital From A Larger Company Was Necessary To Continue Mills Fleet Farm’s Growth. “Mills Fleet Farm's employees learned of the news in company meetings hosted at each location last Friday. Mills said the company reached a point where, in order to continue to grow at a speed to be competitive, it needs to look for outside sources for capital and can't continue to finance growth solely through its own checkbook. Mills said they could sustain a much slower growth rate, but they know the business potential is there for more and the decision to move forward was made by the family as a group. ‘For the long term, this is what is right for the business, this is what is right for our employees,’ Mills said. ‘It's a very, very painful decision for the Mills family.’” [Forum News Service, 10/07/15] 85 Anticipated Possibility Of Mills Fleet Farm Opening Up To Four New Stores Annually. “Looking at the total picture — the company's past success and where it could go - at a certain point the decision has to be made that is right for the business, Mills said. The company's warehouse and distribution system needs a significant upgrade requiring considerable capital investment to remain competitive, he said. With a modernized warehouse and distribution center, Mills said he personally could see a growth of three or four stores annually.” [Forum News Service, 10/07/15] Said The Company Needed Additional Capital To Continue Its Growth. “‘In the last several years business has been extremely strong and that strength has been enhanced by very successful new store locations,’ the company reported in a written statement. ‘Continual reinvestment back into Fleet Farm has fostered that healthy growth. Fleet Farm has now reached a point where to continue that necessary pace of growth, it needs to look for outside sources of capital in order to remain competitive and keep creating and maintaining good paying jobs with excellent benefits. To ensure the strength of business going forward, the company is in the process of bringing in an outside partner to work with and enhance the current management structure. ‘This very, very tough decision was made because it is ultimately in the best interest of our wonderful team members, the company and Fleet Farm's ability to meaningfully impact the many communities it serves. The possible transition to new ownership structure will create additional opportunities for our team members and allow Fleet Farm and its team members to prosper while continuing to meet the needs of our customers for years to come.’” [Forum News Service, 10/07/15] Said His Family Would Continue To Be Involved In Philanthropic Efforts In The Community Said His Family Would Continue To Be Involved In Philanthropic Efforts In The Community. “From the beginning, the Mills ownership has been a quiet but strong philanthropic force in the community from support for the Fourth of July parade, to honoring the fallen and the survivors of the Bataan Death March, providing area scholarships, and donating to individual requests by those who want to make a community difference even as they are suffering from the final stages of terminal cancer. The family has supported Shriners Hospitals for Children and The Salvation Army, among other charities through the generations. ‘The Mills family isn't going anywhere and our philanthropic efforts are still going to be here for the community,’ Mills said.” [Forum News Service, 10/07/15] Said He Would Not Be Involved With The Company Until The Sale Was Completed Next Year; Denied That The Sale Was Linked To His Political Goals Said He Would Not Be Involved With The Company Until The Sale Was Completed Next Year; Denied That The Sale Was Linked To His Political Goals. “Mills said he will no longer be involved in the company as the transaction is completed, probably sometime next year. The potential sale of the business, he said, has nothing to do with his political aspirations.” [Forum News Service, 10/07/15] Planned To Get Involved In “Very Quiet Philanthropy, But Also Very Loud Public Service” Since He Was Leaving The Company Planned To Get Involved In “Very Quiet Philanthropy, But Also Very Loud Public Service” Since He Was Leaving The Company. “Discussions on the company's future predate his interest in politics, Mills said. He ran for the Minnesota 8th District Congressional seat in 2014 and expects an official 86 announcement on his intentions for the next election within the next two weeks. Mills said his personal intention for his future is to engage in ‘very quiet philanthropy, but also very loud public service.’” [Forum News Service, 10/07/15] Mills And Other Shareholders Stood To Profit As Much As $1.1 Billion From The Sale Mills And Other Shareholders Stood To Profit As Much As $1.1 Billion From The Sale. “According to Mergermarket.com, privately held, Brainerd-based Mills generates about $130 million annually in operating profit. Solid retailers are selling for up to nine-times earnings before interest, taxes and depreciation. That would gross $1.1 billion for CEO Stewart Mills III and other shareholders.” [Star Tribune, 10/17/15] News Report Alleged That New Mills Fleet Farm Store In Hermantown Received Public Subsidies But Were Not Required To Hire Percentage Of Union Workers Thus Allowing Them To Pay Below Prevailing Wage; Mills Responded Angrily On Social Media To This Report News Report Alleged That New Mills Fleet Farm Store In Hermantown Received Public Subsidies But Were Not Required To Hire Percentage Of Union Workers Thus Allowing Them To Pay Below Prevailing Wage. “Despite its $900,000 gift, Hermantown officials green-lighted the project without requiring that a percentage of the work go to union tradespeople. As a result, Fleet Farm can pay workers well below prevailing wages.” [City Pages, 11/18/15] Headline: “Stewart Mills Gets $1.5 Million In Welfare; His Workers Aren't So Lucky.” [City Pages, 11/18/15] Mills Was Upset About Article’s Portrayal Of Mills Fleet Farm And Accused DCCC Of “Peddl[ing] Lies.” [Twitter, 11/19/15] Mills Stated In A Facebook Post That He Was Not “Anti-Union” And That Some Of The Project’s Funds Had Gone To Non-Union Contractors. “Normally I don’t respond directly to comments on Facebook as the back and forth can take on a life of its own, but I feel there may be some folks that have bought into the Democrats deceptive narrative of me and have the wrong idea about what I stand for. First of all, Right to Work is a state issue, and I am running for federal office. As someone who respects the Constitution and the Bill of Rights, I believe that the 10th Amendment reserves such decisions the individual states themselves, and I will fight to keep the Federal Government out of state affairs. Secondly, whoever says Fleet Farm’s Hermantown project is nonunion is deliberately misleading you. The truth is the majority of the contract dollars were awarded to union shops. The Mills Family has always run an open bidding process, open to both union and nonunion shops. Some of the project dollars (a minority) were awarded to non-union contractors. We have not tilted the playing field either way. Our general project manager goes through the bids and selects the ones that can get the job done right, at the right time, at the right price. Union firms, as a percentage of project cost, were over represented in that selection. If anyone tries to tell you I am antiunion they are liars, I believe strongly in the open bidding process, and American Free Enterprise that has created and sustained both union and non-union jobs. –Stewart Mills” [Facebook, 12/02/15] 87 January 2016: Mills Fleet Farm In Mankato Was Fined For Selling Gas At Illegally Low Prices That Drove Smaller Competitors Out Of The Market; Agreed To Pay $40,000 Penalty To State Of Minnesota January 2016: Mills Fleet Farm In Mankato Was Fined For Selling Gas At Illegally Low Prices That Drove Smaller Competitors Out Of The Market; Agreed To Pay $40,000 Penalty To State Of Minnesota. “The Mankato Mills Fleet Farm became the second local fuel seller in three months to be ordered by the state of Minnesota to stop selling gasoline so cheaply and to pay a substantial financial penalty for illegally low gasoline prices last spring and summer that resulted in area drivers paying some of the lowest prices in the state. Fleet Farm joins Sam's Club in agreeing to pay a $40,000 civil penalty, although each company will see half of the total forgiven if it stays in compliance with Minnesota's fuel pricing law in the future, according to the Department of Commerce. The law aims to keep large fuel sellers from offering fuel at extremely low levels to drive smaller competitors out of the market. The arrival of the Fleet Farm store on Premier Drive just off of Highway 22 on the north end of Mankato seemed to be the impetus for a price war that most other gas stations and convenience stores were caught up in from April through mid-July.” [Mankato Free Press, 1/09/16] State Identified At Least 20 Violations That Mills Fleet Farm Had Incurred; Company Would Only Be Responsible For Paying $20,000 If They Stayed Compliant With The Order. “Local prices were often 20 cents per gallon lower than other parts of the state with the discount sometimes topping 25 cents, prompting smaller convenience stores to file complaints with the Commerce Department, which launched an investigation. Some pointed to Fleet Farm as the instigator while others suggested Fleet Farm was doing nothing more than matching Sam's Club. In the end, state investigators found both companies were selling at prices below the minimum allowed by law. A ‘cease and desist order’ was issued to Sam's Club, located on Madison Avenue, in late October. A nearly identical order came to Fleet Farm last month. ‘ ... From April 14, 2015 through May 19, 2015 respondent (Fleet Farm) engaged in the continuing offer and sale of gasoline by way of posted price or indicating meter below the minimum allowable price at its store located at 1850 Premier Drive, Mankato, Minnesota,’ the Dec. 15 order states. ‘At least 20 violations ... were identified.’ The Fleet Farm investigation covered the same dates as the Sam's Club investigation, also found 20-plus violations and resulted in the same penalty — ‘that respondent shall pay to the State of Minnesota a civil penalty of $40,000, of which $20,000 shall be stayed upon the condition that respondent remain in compliance with this order.’”[Mankato Free Press, 1/09/16] Mills Fleet Farm Was Building A New Store In Hermantown, Minnesota, Was Expected To Open In 2016; Expanded The Chain To 36 Locations Mills Fleet Farm Was Building A New Store In Hermantown, Minnesota, Was Expected To Open In 2016; Expanded The Chain To 36 Locations. “Site work for the new 183,000-square-foot Mills Fleet Farm store in Hermantown continued in earnest this past week. By the time the preparations are complete, an estimated 200,000 cubic yards of material will have been moved. Fleet Farm Vice President Stewart Mills III said he expects the store's precast concrete walls to be tilted into place and reinforced with steel in the next week or two. ‘It's imperative we get the store enclosed before winter, and fortunately, we've been able to stay on schedule so far,’ Mills said. He said he hopes to open the new Hermantown store by late summer or the early fall of next year. It will be the 36th retail outlet in the Brainerd-based chain. 88 Mills Fleet Farm most recently opened a store this March in Mankato, Minn. The company now boasts stores in Minnesota, Wisconsin, Iowa and North Dakota.” [Duluth News-Tribune, 9/14/15] Mills Said The Company Was “In A Growth Spurt.” “‘We are definitely in a growth spurt,’ Mills said, pointing to the recent investments in Hermantown and Mankato. While Mills Fleet Farm continues to consider other potential locations, Mills said no other projects are actively in the works at present. ‘I think right now, we're probably going to have to step back and look at some of our infrastructure -- our logistics and our warehousing. Because we have been building stores that have been successful, it has put a strain on our logistics, so we're going to have to take a look at how we can best serve the stores we already have,’ he said. [Duluth News-Tribune, 9/14/15] New Store Was Expected To Cost $18 Million. “In all, Mills Fleet Farm is expected to pour about $18 million into its latest project, according to Adam Fulton, Hermantown's community development director. The 38 1/2 -acre site for the new store is off Loberg Road, just south of Hom Furniture and west of Sam's Club. The new retailer's parking lot will accommodate 619 vehicles. Fulton said the project will lead to the redevelopment of an abandoned gravel pit that occasionally had attracted unauthorized dumping. He credited Mills Fleet Farm for returning the property to a productive use.” [Duluth News-Tribune, 9/14/15] April 2015: Opened A New Store In Mankato, Minnesota April 2015: Opened A New Store In Mankato, Minnesota. “The most anticipated store in recent Mankato, Minn., history opened its doors on April, as Fleet Farm showed off a new store design with several new offerings for the Midwest chain. ‘Of all the other stores we’ve opened, this one is it,’ said Stewart Mills II, who with his brother Hank built the Fleet Farm company after gaining their work ethic and business acumen from their father who owned car dealerships and other businesses in Brainerd. Mills said the Mankato store holds a special place, as it was a long time coming and was put together thanks to his childhood friend, the late John Kahler.” [Farm Forum, 4/02/15] Mills Fleet Farm Earned $130 Million Annually; Mills Stood To Make $1.1 Billion From The Company’s Sale. “Mills Fleet Farm is for sale after three generations of family ownership. The company is declining interview requests. That doesn’t stop the buzz in the investment banking community, heading for another record year of peddling companies, according to Dealogic, Thomson Reuters and other scorekeepers. According to Mergermarket.com, privately held, Brainerd-based Mills generates about $130 million annually in operating profit. Solid retailers are selling for up to nine-times earnings before interest, taxes and depreciation. That would gross $1.1 billion for CEO Stewart Mills III and other shareholders. A company executive, Mike Sidders, didn’t respond to a telephone message last week. Mergermarket.com said Greene Holcomb is the investment banker. No comment there either.” [Star Tribune, 10/18/15] 2010 to Present: Vice President of Mills Fleet Farm From 2010 to present, Mills has served as the Vice President of Mills Fleet Farm. [Mills Campaign Website, accessed 9/13/12] KKR History 89 KKR Described As An Investment Firm That Manages Private Equity, Energy, Infrastructure, Real Estate, Credit Strategies, And Hedge Fund Investments KKR Described As An Investment Firm That Manages Private Equity, Energy, Infrastructure, Real Estate, Credit Strategies, And Hedge Fund Investments. “KKR is a global investment firm that manages investments across multiple asset classes, including private equity, energy, infrastructure, real estate, credit strategies and hedge funds. As investors with an industrialist vision, we aim to generate attractive investment returns by following a patient and disciplined approach, employing high-quality people, pursuing the highest standards of excellence, and aligning our interests with those of all our investment partners.” [KKR, “KKR Today,” accessed 1/12/16] September 2015: Managed $98.7 Billion In Assets. [KKR, “KKR Today,” accessed 1/12/16] January 2016: KKR Recommended Holding More Cash Than Stocks Due To Potential Risks, Said They Anticipated 2016 Would Be “Chaotic.” “For the first time in five years holding cash could provide better returns than other assets as risks grow for global stocks, according to KKR & Co., the private equity firm that correctly predicted the global stock rebound last quarter. KRR’s Global Macro & Asset Allocation team recommends its clients hold 7 percent of their assets in cash, up from 1 percent in September, according to its 2016 outlook report posted on its website. It also lowered holdings of global equities to 51 percent from 55 percent, marking the first underweight rating since 2011. ‘Unfortunately, as we look ahead, we do not see 2016 as a less chaotic year,’ the KKR team, led by Henry Mcvey, wrote in the report. ‘We want to create a cash buffer at the start of the year that we can deploy amidst any downdraft in risk assets.’” [Bloomberg, 1/12/16] KKR Specialized In Leveraged Buyouts 1995: Leveraged Buyouts Had Become Less Common And Were Characterized As Part Of Wall Street Decadence Of The 1980’s. “Once the rage of Western capitalism, leveraged buyouts have lost their glamour and much of their respectability. Suggest an LBO today as a healthy way to create value, and polite company outside of Wall Street will assume you are just trying to stimulate lively conversation. Propose it as a means of improving operating performance by restoring strong, constructive relationships among owners, managers, and other corporate stakeholders, and you may be viewed as a refugee of the 1980s, deluded by the decade of greed.” [Harvard Business Review, May-June 1995] Leveraged Buyouts Became Known For Resulting In Layoffs And Cuts In Research Spending. “It’s easy to see why LBOs have developed such a negative image. Even when they were booming, critics complained about ‘paper entrepreneurs.’ And when the boom faded, a wave of bankruptcies ensued. Since 1987, scores of companies that had been acquired in highly leveraged transactions and that managed more than $65 billion in assets have filed for bankruptcy. The spectacular fall of Drexel Burnham Lambert and junk-bond pioneer Michael Milken added to the perception that the LBO wave had been whipped up and sustained by unscrupulous financiers who enriched themselves at the expense of others. Harrumphing members of Congress held hearings. Soon, a chorus of I-told-you-sos from LBO critics and fingerpointing in the savings-and-loan and banking industries turned leverage into a dirty word. Even the LBOs that ‘worked’ were dismissed as good luck or, more often, the result of deep and painful cuts in employment, investment, and R&D spending.” [Harvard Business Review, May-June 1995] 90 KKR Founders Pioneered Leverage Buyouts Jerry Kohlberg Honed The Leverage Buyout Model Where An Equity Firm Bought Companies With Borrowed Money And Then Sold Them For A Profit After A Few Years. “He discovered at Bear Stearns that a small circle of investors could buy a company with borrowed money … use cash flow to pay down the debt … and then sell the company or take it public at a big profit. He had unwittingly stumbled upon the essentials of leveraged buy-outs or, as they are known today, private equity investments.” [Forbes, Obituary for Jerry Kohlberg by George Anders, 8/03/15] The Washington Post Described Henry Kravis, One Of KKR’s Founders, As “The King Of RoughAnd-Tumble Leveraged Buyouts.” “Henry Kravis, the king of rough-and-tumble leveraged buyouts, picked up a phone at his home in Palm Beach, Fla., and called the chief executive of one of Spain’s biggest producers of building materials. At 70, Kravis, who’s worth $4.8 billion according to the Bloomberg Billionaires Index, shows no sign of getting ready to retire. He and co-founder George Roberts, also 70, are eager to make sure they don’t miss a juicy deal. They have been using their legendary names to open doors and transform KKR into a nimble credit player that can act as lender, investor and syndicator at the same time, making it reminiscent of banks such as Goldman Sachs, minus the sales and trading, before regulators curtailed their reach.” [Washington Post, 7/25/14] Kravis, His Cousin George Roberts, And Jerome Kohlberg All Left Bear Stearns And Founded KKR In 1976. “Kravis founded KKR in 1976 with Roberts, his first cousin, and their former Bear Stearns boss, Jerome Kohlberg. Three years later, they captivated Wall Street with a $380 million purchase of industrial pumps maker Houdaille Industries. The deal’s cutting-edge debt architecture, consisting of bank loans and junior debt, became the prototype for every leveraged buyout that followed. Kohlberg Kravis Roberts dominated the buyout world in the 1980s, even after Kohlberg left in 1987. Its 1988 victory in the $31 billion takeover battle for RJR Nabisco inspired the bestseller ‘Barbarians at the Gate.’” [Washington Post, 7/25/14] Leveraged Buyouts Became Known For Cutting Staff And Selling Purchased Companies After A Few Years KKR Founder Pioneered Leveraged Buyout, Famous For Cutting Staff And Selling Purchased Companies After A Few Years. “In the 1960s Jerome Kohlberg Jnr pioneered the leveraged buyout, or LBO, in which a company is bought using significant amounts of borrowed money. He went on to cofound one of the most feared powerhouses in the private equity industry, Kohlberg Kravis Roberts & Co, probably best known for the audacious purchase of the tobacco and food conglomerate Nabisco for a then record $30.1bn…Refining the methods pioneered at Bear Stearns, KKR borrowed large sums from institutions such as insurance companies and pension funds to buy underperforming firms. They would retain existing management but cut staff, unload unprofitable assets and end costly perks like private jets, then sell the company in whole or in parts within a few years.” [Independent, 8/24/15] Forbes: “KKR Is Beginning To Look Like The Goldman Sachs Of Private Equity.” [Forbes, 10/28/2015] Bought Safeway In The 1980’s Which Resulted In Layoff Of 63,000 Workers 91 Bought Safeway In The 1980’s Which Resulted In Layoff Of 63,000 Workers. “On the eve of the 1986 leveraged buy-out of Safeway Stores Inc., the board of directors sat down to a last supper. Peter Magowan, the boyish-looking chairman and chief executive of the world’s largest supermarket chain, rose to offer a toast to the deal that had fended off a hostile takeover by the corporate raiders Herbert and Robert Haft … By selling the publicly held company to a group headed by buy-out specialists Kohlberg Kravis Roberts & Co. and members of Safeway management, ‘you have saved literally thousands of jobs in our work force,’ Mr. Magowan said. ‘All of us — employees, customers, shareholders — have a great deal to be thankful for.’ … Nearly four years later, Mr. Magowan and the KKR group can indeed count their blessings. While they borrowed heavily to buy Safeway from the shareholders, last month they sold 10% of the company (but none of their own shares) back to the public — at a price that values their own collective stake at more than $800 million, more than four times their cash investment … Employees, on the other hand, have considerably less reason to celebrate. Mr. Magowan’s toast notwithstanding, 63,000 managers and workers were cut loose from Safeway, through store sales or layoffs. While the majority were re-employed by their new store owners, this was largely at lower wages, and many thousands of Safeway people wound up either unemployed or forced into the part-time work force. A survey of former Safeway employees in Dallas found that nearly 60% still hadn’t found full-time employment more than a year after the layoff.” [Wall Street Journal, 5/16/90] Wall Street Journal Called KKR’s Purchase Of RJR Nabisco “A Resounding Flop” Though It Was The Biggest Buyout In History At The Time; Company Was Inspiration For Book And HBO Movie “Barbarian At The Gates” Wall Street Journal Called KKR’s Purchase Of RJR Nabisco “A Resounding Flop” Though It Was The Biggest Buyout In History At The Time; Company Was Inspiration For Book And HBO Movie “Barbarian At The Gates.” “It was the biggest buyout in U.S. corporate history, a six-week takeover battle that captivated the nation and defined the ‘greed’ decade of the 1980s, spawning a bestselling book and a made-for-TV movie along the way. Now, six years later, the $25-billion (U.S.) leveraged buyout of RJR Nabisco Inc. has ended as a resounding flop for Henry Kravis and George Roberts, leaders of the powerful New York leveraged buyout company of Kohlberg Kravis Roberts & Co., and for dozens of institutional investors whose money they used. KKR, accustomed to annual returns of 25 per cent to 30 per cent on its buyouts in the 1980s, is barely scratching out single-digit yearly returns for its $3.1-billion investment. Since it made its investment in RJR at an average cost of $5.62 a share, RJR's stock price has risen only 2.3 per cent to $5.75, not counting dividends. In the same period, the Standard & Poor's Corp.'s 500 rose 47 per cent.” [Wall Street Journal, 3/17/95] Book Explored KKR’s Leverage Buyout Of RJR Nabisco And Corporate Maneuvering Between Executives. [New York Times, 1/21/90] New York Times Book Review Said The Book Was “One Of The Finest, Most Compelling Accounts Of What Happened To Corporate America And Wall Street In The 1980’s.” [New York Times, 1/21/90] Barbarians At The Gate Tagline: “After A Power Breakfast They’ll Still Eat You For Lunch.” [IMDB, accessed 1/28/16] 92 [IMDB, accessed 1/28/16] Analysts Said KKR Overpaid For RJR Nabisco And Soon Faced Costly Lawsuits Over The Company’s Tobacco Division. “What went wrong? Analysts say KKR got caught up in a frenzied takeover fight and paid too much for RJR at the peak of the '80s merger boom. And the firm bought into the wrong industry - tobacco - not long before cigarette price wars and threat of litigation laid waste to tobacco stocks.” [Wall Street Journal, 3/17/95] 2007: Purchased Texas Power Company, TXU Corp. For $31.8 Billion, The Largest Leveraged Buyout At The Time 2007: Purchased Texas Power Company, TXU Corp. For $31.8 Billion, The Largest Leveraged Buyout At The Time. “Texas power company TXU Corp. TXU.N said on Monday it agreed to be acquired by a group led by private equity firms Kohlberg Kravis Roberts & Co. KKR.UL and Texas Pacific Group TPG.UL for $31.8 billion in the largest leveraged buyout in history. The investor group will pay $69.25 per share for TXU, a 15.4 percent premium over TXU's closing stock price of $60.02 on Friday. The previous leveraged buyout record was the $25.1 billion takeover of RJR Nabisco, also by KKR, announced in 1988.” [Reuters, 2/26/07] 93 KKR And TXU Corp. Pledged To Cutting The Number Of Coal-Fueled Power Plants They Ran; Promised To Make The Company More Environmentally Friendly And Cut Back From Eleven Coal Powered Plants To Three. “TXU and its new buyers made several pledges to improve the company's environmental policies, including not building most of the planned coal plants. The acquisition won the blessing of the Environmental Defense Fund and Natural Resources Defense Council. Under the agreement, TXU said it would cut the number of planned coal-fueled generation plants to 3 from 11, and implement 10 percent price cuts that would result in annual savings of about $250 a year for the average household … TXU said the plan to scale back coal-plant expansion would prevent 56 million tons of annual carbon emissions. The company said it would also invest $400 million in conservation and energy efficiency activities over the next five years.” [Reuters, 2/26/07] 2009: TXU Corp, Was Now Energy Future Holdings, And Nearing Bankruptcy. “The 2007 takeover of Texas utility TXU was to be a crowning glory for Texas Pacific Group, Goldman Sachs and Kohlberg Kravis Roberts. At $48 billion it was (in inflation-adjusted terms) as big as KKR’s famed buyout of rjr Nabisco. Two years later the deal is shaping up to be a disaster. Except for the insiders. TXU, now called Energy Future Holdings, has barely enough operating profit to cover $3 billion in annual interest payments and no chance of paying off $22 billion in debt maturing by the end of 2014. ‘EFH’s capital structure is untenable,’ says Carl Blake, analyst at bond research firm Gimme Credit. ‘They overpaid. The earnings power is not there to support the balance sheet.’” [Forbes, 8/20/09] 2014 Bloomberg Headline: “KKR’s Record TXU Buyout Risks Chaos On Path To Bankruptcy.” [Bloomberg, 2/24/14] 2014: Energy Future Holdings Was Close To Bankruptcy, Had $45.6 Billion In Debt. “Energy Future Holdings Corp.’s march toward the largest leveraged-buyout bankruptcy in history is in jeopardy of deteriorating into a free-for-all among Wall Street titans ranging from KKR & Co. to Centerbridge Capital Partners LP and Apollo Global Management LLC. A month before the energy company’s auditors are likely to raise doubts about its ability to remain a going concern, triggering a default on $45.6 billion of debt, Energy Future’s creditors and management have yet to sign nondisclosure agreements that would permit private talks to work out a plan … The Dallas-based company, which has suffered because of a decline in natural gas prices since its 2007 buyout, has proposed bankruptcy options and management has been in talks with banks this month about raising debtor-in-possession financing that would see it through a Chapter 11 filing, according to people familiar with the situation.” [Bloomberg, 2/24/14] KKR’s 2007 Purchase Was Based On The Prediction That Natural Gas Price Would Rise But Prices Fell. “The 2007 acquisition was essentially a bet, using $40.1 billion of debt, that natural-gas prices would rise. Instead prices, which set the cost of electricity, have fallen 54 percent since 2008.” [Bloomberg, 2/24/14] KKR Laid Off 6,000 First Data Employees After 2007 Leveraged Buyout KKR Laid Off 6,000 First Data Employees After 2007 Leveraged Buyout. “KKR took [First Data] private in 2007 in a leveraged buyout deal that was funded with more than $23 billion in debt. That's how leveraged buyouts work: Private equity owners lard acquired companies up with debt that is used to 94 finance the acquisition. The bonds issued to pay for such deals typically are viewed as below investment grade -- dubbed "junk" on Wall Street -- because of the high amount of debt compared with the amount of money the company makes…[First Data] struggled with profitability for years after the KKR purchase. In response, KKR slashed costs, paring down a network of 12 data centers to three, two of which remain in Omaha. Layoffs and closures have reduced the company's overall head count to 23,000 from 29,000 in 2007, though Omaha has absorbed hundreds of employees from cities, including Denver, as other locations have been downsized.” [Omaha World-Herald, 7/19/15] May 2015: KKR-Owned Data First Announced Thousands Of Layoffs And Moving Jobs Overseas. “Amid improved first-quarter earnings, First Data Corp. on Monday announced a cost-reduction plan that a company official said would include "a few thousand" layoffs. The plan is expected to take shape in the coming months…Himanshu Patel, executive vice president in charge of strategy, planning and business development for the payments processing and technology company, said the "head-count reduction" would take place across the organization's global footprint…In addition to layoffs, part of the initiative includes "offshoring" of jobs, Patel said…Kohlberg Kravis Roberts & Co., the private equity parent company of First Data, reported April 23 that its investment in the organization increased in value for the second-straight quarter.” [Omaha World-Herald, 5/05/15] July 2013: KKR-Owned First Data To Suspend 401(k) Contributions. “First Data Corp. will suspend 401(k) contributions to employees… Private-equity giant KKR & Co. took First Data private in 2007 for about $26 billion in one of the biggest leveraged buyouts ever but has struggled with the deal since.” [Wall Street Journal, 7/15/13] 2007: KKR Bought Dollar General Stores For $7.3 Billion, Was The Largest Buyout Of An American Retail Chain 2007: KKR Bought Dollar General Stores For $7.3 Billion, Was The Largest Buyout Of An American Retail Chain. “Kohlberg Kravis Roberts, the giant buyout firm, said Monday that it would pay $7.3 billion to take the discount retailer Dollar General private in the largest buyout of a U.S. retail chain. The deal would be a very lucrative one for Dollar General shareholders, who would receive $22 a share — a premium of nearly a third over the stock's closing price on Friday. Shares of Dollar General jumped $4.29, or 26 percent, to $21.07 a share in New York on Monday. Analysts said that Dollar General was an ideal target in many ways for a private equity firm like Kohlberg Kravis. With 8,260 stores and sagging profits, the retailer would benefit from the type of consolidations that are common in the aftermath of a private equity buyout, analysts said … Because it caters to lower-income consumers, Dollar General has been particularly vulnerable to economic forces like spikes in gasoline prices and stagnant wage growth, which have hurt other retailers like Wal-Mart. With gasoline prices down and wages growing far ahead of inflation, analysts have raised their outlooks for retailers like Dollar General.” [New York Times, 3/12/07] 2013: KKR Sold Their Shares In Dollar General. “KKR & Co. and Goldman Sachs Group Inc.'s private-equity arm quietly closed out their investment in Dollar General Corp. late Wednesday, with investors agreeing to pay nearly three times what they offered in the retailer’s initial public offering. The move caps what has been something of a best-case scenario for KKR and Goldman: a four-year rally in the retailer that enabled a series of increasingly lucrative stock sales as they cashed out their investment. KKR and Goldman agreed to sell their remaining 4.2 million Dollar General shares Wednesday, 95 according to people familiar with the matter. Buyers offered $60.71 a share to Barclays PLC, which bought the entire block and flipped it to investors in its role underwriting the deal, these people said. By comparison, Dollar General’s 2009 IPO priced at $21 a share. The deal was valued at about $252 million.” [Wall Street Journal, 12/13/13] June 2015: KKR-Owned US Foods Planned To Close Distribution Center, Affecting Hundreds Of Workers June 2015: KKR-Owned US Foods Planned To Close Distribution Center, Affecting Hundreds Of Workers.” “Food supplier US Foods has reached a tentative decision to close its Anne Arundel County distribution center, a move that could affect hundreds of Maryland workers…The company has been shedding jobs in Maryland for years. US Foods is owned by private equity firms Kohlberg Kravis Roberts (NYSE: KKR) and Clayton, Dubilier & Rice… The company closed its Columbia office in 2009, a move that eliminated 150 jobs.” [Baltimore Business Journal, 6/17/15] September 2015: Samson Resources, A KKR-Owned Oil Company Filed For Bankruptcy After It Laid Off Employees In Tulsa, Oklahoma September 2015: Samson Resources, A KKR-Owned Oil Company Filed For Bankruptcy After It Laid Off Employees In Tulsa, Oklahoma. “Oil and gas driller Samson Resources Corp. filed for Chapter 11 bankruptcy in Delaware on Wednesday night…Founded during the early 1970s, the Schusterman family sold the Tulsa-based Samson to private equity firm Kohlberg Kravis Roberts & Co. for $7.2 billion in 2011. As of Dec. 31, 2014, Samson Resources' balance sheet featured a $2.1 billion net loss that included a $91.9 million interest payment…Samson laid off 196 local workers at the end of March, a reduction that dropped its Tulsa-area workforce to less than 400 people.” [Tulsa World, 9/20/15] May 2015: KKR-Owned Oil Company Fired 270 Employees. “The 44-year-old Samson had been one of the nation's largest privately held energy producers when the founding Schusterman family sold it to New York equity firm KKR & Co. and other buyers for $7.2 billion in 2011. Since then, Samson's debt load has risen steadily while oil and gas prices declined. The company announced several years ago that it planned to go public eventually. Late last year, Moody's downgraded corporate family rating on Samson's weakness in margins, cash flow and increased leverage. The company burned through $325 million in free cash flow last year and laid off 270 employees, including nearly 200 in Tulsa. Those layoffs cost Samson $22 million in severance commitments for the first quarter.” [Tulsa World, 5/21/15] Samson’s Debt Became Overwhelming. “KKR went on to complete a couple of relatively small but hugely profitable shale deals before Jefferies in 2011 pitched the big one: Samson Investment Co., one of the largest closely held energy producers in the U.S. KKR bit, in the biggest-ever buyout of an oil-and-gas company. Now, the investment is deep in the red, as falling oil prices amplify struggles Samson has faced since its $7.2 billion acquisition. Almost immediately after the deal closed, natural-gas prices plunged to their lowest level in a decade, hurting profits. Meanwhile, the Tulsa, Okla., company, now known as Samson Resources Corp., had to contend with $3.6 billion of debt it took on in the takeover.” [Wall Street Journal, 12/17/14] Laid Off 120 Employees To Cut Costs. “Samson’s woes stand as a cautionary tale of the U.S. shale boom. Fed by cash from Wall Street and private-equity firms, drillers in recent years rushed to tap new 96 oil-and-gas deposits across the country—and contributed to the collapse in prices for both fuels. Samson’s woes have been exacerbated by the very tools private-equity firms use to juice their returns: Samson carries debt used to fund its own purchase and pays fees to its owners. Last week, Moody’s Investors Service downgraded Samson’s credit rating while taking the unusual step of simultaneously flagging the company for further downgrade … To cut costs, Samson laid off 120 employees. It embarked on asset sales that have so far brought in more than $1 billion. It is currently shopping assets that account for about 25% of its production and are expected to bring in as much as $1.1 billion, Barclays analysts estimated last month. Samson said it has also reduced drilling costs.” [Wall Street Journal, 12/17/14] 2010: KKR Invested $400 Million In Shale Gas Producer Based In Houston 2010: KKR Invested $400 Million In Shale Gas Producer Based In Houston. “Two words for President Obama, should he bring up the subjects of cleaner energy and climate change when he addresses the nation on the gulf oil spill tonight: shale gas. He could point to a recent Financial Times headline saying it ‘will change the world,’ and the fact that the $54 billion private equity firm Kohlberg Kravis Roberts & Co. appears to believe it. On Monday, it announced a $400 million investment in a Houston shale gas producer. That came just two weeks after KKR, whose major offices are split between New York and the Bay Area, sold its stake in a Pennsylvania shale gas producer to Royal Dutch Shell PLC for $4.7 billion, a fourfold return on its original investment. The lure of this previously hard-toproduce source of natural gas is its abundance - 100 years' worth in the United States, and as much if not more in Asia and Europe - plus its cleanliness, compared with coal and oil - and its cheapness.” [San Francisco Chronicle, 6/15/10] Admitted To Colluding With Other Private Equity Groups To Not Bid Against Each Other In A Series Of Corporate Takeovers Including AMC Entertainment And Aramark During The Mid2000’s; Paid $475 Million Settlement Admitted To Colluding With Other Private Equity Groups To Not Bid Against Each Other In A Series Of Corporate Takeovers Including AMC Entertainment And Aramark During The Mid2000’s; Paid $475 Million Settlement. “The Carlyle Group paid $115 million to settle a collusion case Friday, less than a week before it was due for a major hearing on the lawsuit in Boston. District-based Carlyle was the last of several private equity firms, including Blackstone Group, KKR and TPG, to settle the seven-year-old case. Plaintiffs had alleged that Carlyle and the other private equity firms had colluded, mostly through e-mail, not to bid against one another on takeover targets during the mid-2000s. Carlyle declined to comment, and a person close to the negotiations said Carlyle settled the case without admitting any wrongdoing on its part. Six private equity defendants had already agreed to pay $475 million to settle the collusion lawsuit. A group of plaintiffs, suing in federal court, accused Carlyle, Blackstone Group, TPG Capital, KKR and others of agreeing among themselves not to bid against one another in eight corporate takeovers that included theater chain AMC Entertainment, food service firm Aramark and casino operator Harrah's Entertainment. The plaintiffs were represented by Patrick Coughlin, an experienced class action attorney.” [Washington Post, 8/30/14] June 2015: SEC Charged KKR With Misallocating Broken Deal Expenses June 2015: SEC Charged KKR With Misallocating Broken Deal Expenses. “The Securities and Exchange Commission today charged Kohlberg Kravis Roberts & Co. (KKR) with misallocating more 97 than $17 million in so-called “broken deal” expenses to its flagship private equity funds in breach of its fiduciary duty. KKR agreed to pay nearly $30 million to settle the charges, including a $10 million penalty.” [SEC Press Release, 6/29/15] KKR Paid $30 Million To Settle SEC Charges That They Misallocated $17 Million In Broken Deal Costs. “KKR will pay $30 million to settle allegations the private equity giant breached its fiduciary duty by misallocating more than $17 million in so-called broken deal costs to its flagship private equity funds. Announcing the settlement Monday, a Securities and Exchange Commission order said KKR amassed $338 million in broken deal or due diligence expenses related to unsuccessful buyout opportunities and related issues during a six-year span that ended in 2011. KKR co-investors, including the company's executives, participated in the firm's private equity transactions and benefited from deal-sourcing efforts during that time, the SEC said. Yet KKR for years failed to require them to shoulder any of the broken deal expenses, the SEC said.” [USA Today, 6/30/15] Broken Deal Expenses Defined As Equity Companies Passing Along Costs From Failed Investments To Their Investors; KKR Had Passed Along Over $17 Million In Broken Deal Costs. “For years, private equity firms operated behind a curtain of mystery when it came to how they passed along expenses to investors. The Securities and Exchange Commission is now beginning to pull back the curtain and shine a light on those practices. In a first, the commission on Monday said that the private equity giant Kohlberg Kravis Roberts & Company breached its fiduciary duty when it passed along more than $17 million in ‘broken deal’ expenses to its investors. The action is expected to lay the groundwork for similar cases in the coming months.” [New York Times, 6/29/15] 2006-2011: KKR Incurred $338 Million In Broken Deal Costs From Unsuccessful Buyouts And Passed On Costs To Limited Partners Including Several Public Pension Funds. “Some private equity investors — which include public pension funds that invest on behalf of police officers, firefighters, teachers and other government employees — have lately already been questioning their investments in private equity funds. Such pension funds and other investors are known as limited partners in industry parlance, and they typically make up a significant portion of the money that private equity firms then use to undertake buyouts and other deals. Of concern to the S.E.C. is what private equity firms like K.K.R. charge their limited partners and how that differs from the amount coinvestors — which include private equity executives — are required to pay in fees. Over a six-year period, until 2011, K.K.R. incurred $338 million in expenses related to unsuccessful buyouts, the S.E.C. said. Instead of making its own executives absorb some of those costs, the firm passed them on to the funds of their limited partners without informing them.” [New York Times, 6/29/15] KKR Did Not Admit Or Deny The Charges But Paid To Settle The Charges. “The firm has agreed to pay nearly $30 million to the settle the accusations … Private equity firms charge investors a management fee of 1 to 2 percent of assets under management, as well as around 20 percent of any gains each year. But there are other transaction costs that are often not disclosed, including “broken deal” expenses, costs for monitoring investments and legal fees. These undisclosed fees often represent a substantial weight on returns for investors, according to recent study by CEM Benchmarking. Kohlberg Kravis Roberts, which neither admitted nor denied the S.E.C.’s accusations, sought to put the issue behind it on Monday, saying that the settlement related to past issues and not current practices at the firm.” [New York Times, 6/29/15] 98 California Public Employees’ Retirement System Had Investments With KKR. “For some investors, that pledge may come too late. In June, the California Public Employees’ Retirement System, known as Calpers, announced plans to reduce the number of private equity funds it invests in to 30 from 98 as it moves to simplify its portfolio. Calpers executives have also acknowledged that the fees they pay to private equity firms are not transparent. Wylie A. Tollette, the chief operating investment officer at Calpers, recently told an investment committee that the $300 billion pension fund could not track those fees. Calpers is an investor in K.K.R. As part of the settlement, K.K.R. agreed to pay a $10 million penalty, more than $14 million in disgorgement as well as more than $4.5 million in prejudgment interest. It had previously refunded clients $3.26 million.” [New York Times, 6/29/15] 1991: Two Teachers Sued KKR For Investing State Pension Funds In Junk Bonds To Fund Their Buyouts 1991: Two Teachers Sued KKR For Investing State Pension Funds In Junk Bonds To Fund Their Buyouts. “Two school teachers sued convicted junk-bond king Michael Milken and the leveraged buyout firm of Kohlberg Kravis Roberts & Co. for $1 billion yesterday, charging they misappropriated hundreds of millions of dollars of state employee pension funds. The class-action suit in U.S. District Court in Seattle alleges that KKR improperly siphoned investors' money to Milken, who participated with the Wall Street firm in some of the biggest takeovers of the 1980s. The state retirement funds of Oregon and Washington invested money in many KKR buyouts, including Beatrice Foods Co. The suit charges that KKR improperly gave Milken a bonus for selling the junk bonds that financed the buyouts, cutting into the return that should have gone back to the original investors.” [Boston Herald, 10/10/91] May 2013: KKR Hired Former U.S. General, CIA Director David Petraeus As Chairman, Who Has Supported TPP May 2013: KKR Hired Former U.S. General, CIA Director David Petraeus As Chairman. “Private equity firm Kohlberg Kravis Roberts & Co (KKR.N) said it appointed former CIA Director David Petraeus as chairman of the newly created KKR Global Institute, which will study the investment implications of global macroeconomic, social and geopolitical issues. Petraeus will also support KKR's investment teams in the diligence process, particularly in considering investments in new geographies, KKR said.” [Reuters, 5/30/13] Petraeus Co-Wrote An Op-Ed In Support Of The Trans Pacific Partnership. “Both parties and the Obama administration should conclude agreements such as the Trans-Pacific Partnership, important for economic growth as well as for setting appropriate standards to help incentivize China to reform economic practices (because TPP membership will not be available to China until it does so).” [USA Today, 10/12/15] Also Wrote That Congress Should Avoid A Shutdown Over Deficit And Urged Both Parties To “Recognize The Importance Of Government Programs In Areas Such As Scientific Research, Infrastructure Investment And Education.” “Congress should avoid any government shutdown or self-induced debt crisis over anything except the most historic and major issues (which we do not see on the horizon). Democrats and Republicans, in shaping their messages and agendas for the 2016 election, should recognize the importance of government programs in areas such as scientific research, 99 infrastructure investment and education, and then fashion budget priorities accordingly.” [USA Today, 10/12/15] Petraeus Also Co-Wrote An Op-Ed Calling On Congress To Reauthorize The Export-Import Bank. “Congress is now considering whether to renew funding for the Export-Import Bank. That should not be a tough call. Economic and national security concerns argue strongly for continued funding. The Bank is, of course, a small U.S. government agency designed to help American companies compete more effectively for business abroad, by backing up loans and helping with financing in ways that wind up typically costing the American taxpayer nothing or even (as in recent years) turning a profit. As things stand, the Bank will stop functioning on June 30 unless action is taken. Beyond the specific economic benefits of Ex-Im Bank actions, many of them to assist small companies and collectively helping sustain more than one million American jobs, there is another reason to renew the Bank—strengthening the foundations of American power. To see why, it is important not to focus just on the Bank by itself but to place it in a broader context of long-term national economic strategy.” [National Interest, 6/10/15] Earlier Controversies Surrounding Mills Fleet Farm Company Denied Salvation Army The Right To Place Bell Ringers Outside Their Stores In November of 2011, Mills’ father announced that Mills Fleet Farm would not allow Salvation Army bell ringers at their 31 locations. Mills’ father said that allowing bell ringers would open the floodgates to anyone else who wanted to use the company’s property. Salvation Army Captain Brian Goodwill estimated the loss due to Mills Fleet Farm’s decision would be tens of thousands of dollars. [WAOW, 11/28/11] Said Decision Was a “Win-Win” In November 2011, Mills said the Fleet Farm’s decision to give individual donations to local Salvation Army chapters was a “win-win.” [Associated Press, 11/29/11] Reversed Course to Allow Salvation Army Ringers to Stand Outside Mills Fleet Farm Stores In late November 2011, Mills Fleet Farm reversed course and allowed Salvation Army bell ringers outside their stores. “In an attempt to continue our longtime support of the Salvation Army we decided this year to make direct donations instead of allowing bell ringers on our property to conduct their red kettle fundraising drives. We felt that this would immediately benefit the local Salvation Army chapters in the communities we operate stores. We were wrong. Our customers have spoken and in addition to the money that we donated, they feel the red kettles and ringing bells raise awareness of those in need in our community,” Mills said. [Brainerd Dispatch, 11/29/11] December 2012: Man Slipped $1,111 in Salvation Army Kettle One Year Later 100 In December 2012, a man slipped $1,111 in the kettle at Mill's Fleet Farm in Waite Park. [St. Cloud Times, 12/22/12] Store Criticized By Local Newspaper Editorial For Not Showing Christmas Decorations In October 2000, the Saint Paul Pioneer Press criticized Mills Fleet Farm for putting out a catalog without using Christmas or showing any Christmas decorations. From the Saint Paul Pioneer Press: “Mills Fleet Farm should receive the Ebenezer Scrooge Bah Humbug award. I received its catalog for the coming season, that season that climaxes on Dec. 25. They have managed to put out an entire catalog without ever once using that terrible word "Christmas" or showing a single statue, outdoor figure or image that might remind the customer of why he or she is supposed to spend their money at Mills Fleet Farm. At least Scrooge was not hypocritical enough to try and make money from the holiday he humbugged.” [Saint Paul Pioneer Press, Editorial, 10/14/00] Local Labor Union Accused Mills Fleet Farm Of Using Temporary Workers At Minimum Wage In 2011, the Twin Cities chapter of the Laborers’ International Union of North America accused Mills Fleet Farm Stores of using temporary workers at minimum wage for the construction of a new store in Carver, Minnesota. “Fleet Farm should be ashamed that it’s taking the cheapest and riskiest route possible to put up this outlet in Carver,” said Tim Mackey, business manager for Twin Cities-based Local 563 of the Laborers’ International Union of North America. [Star Tribune, 11/16/11] …Mills’ Father Disputed the Accusations of Labor Exploitation In 2011, Mills Fleet Farm CEO, Stewart Mills Jr., disputed the claims of the local labor unions on worker exploitation at the Mills Fleet Farm store in Carver. Mills claimed that contractors were paying substantially more than minimum wage and that the jobs were created locally. “There isn’t anyone paying minimum wage,” Mills said. [Star Tribune, 11/16/11] …But Mills Fleet Farm Contractor Breitbach Confirmed Some Workers Received Only Minimum Wage In 2011, Mills Fleet Farm contracted out its concrete construction to Breitbach Construction Company, which in turn hired four men through the firm Labor Ready. Breitbach reportedly paid $18 and $19 an hour for the four men they hired, but discovered that Labor Ready was only giving the men the minimum wage of $7.25 an hour. 101 After a grievance was brought by the local union, Breitbach said it “completely discontinued” its relationship with Labor Ready. [Star Tribune, 11/16/11] Small Fishing Store Closed Its Doors Because Of Mills Fleet Farm Store Competition In 2005, the owners of a small sporting goods store in Stillwater, Minnesota after eight years in operation, closed their store because they could not compete with big sporting-goods retailers, including Mills Feel Farm. “While Gander Mountain, Cabela's and Mills Fleet Farm battle each other for dominance in Minnesota's fishing market, little bait-and-tackle stores are suffering the most, the Saint Paul Pioneer Press reported. [Saint Paul Pioneer Press, 4/10/05] Local Bait Shop Owner Complained Of Mills Fleet Farm’s “Dominance” In July 2008, a local bait shop owner complained of Mills Fleet Farm’s “dominance.” “It's unfortunate, but those large retail shops attract a lot of customers…Our bread and butter is the bait, and it's hard to sell enough in those areas to succeed. People should take a second look and make sure they are supporting their small-town bait shops and other businesses to make sure that they do survive,” the shop’s owner said. [St. Paul Pioneer Press, 7/27/08] Parent Of Son Who Made Pipe Bombs Bought Gun Powder From Fleet Farm Store In 2009, Robert Masters, father of a son who made pipe bombs to blow up in mailboxes, bought two pounds of gunpowder with a credit card twice. Masters said that the power was to load a muzzle-loading gun. [St. Paul Pioneer Press, 9/17/10] Man Was Accused Of Buying Firearms Without License At Several Mills Fleet Farm Stores In April 2013, a man was accused of buying firearms without a license at several Mills Fleet Farm stores. Mills Fleet Farm contacted the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives to report that the man had made repeated purchases of assault rifles at various store locations. [Winona Daily News, 4/18/13] NOTE: No other coverage was found regarding this incident Man Later Sold Firearms Online After the man purchased a semi-automatic rifle for about $579 with tax, he tried selling online for a base price of $825. [Winona Daily News, 4/18/13] Mills Fleet Farm Employee Was Charged With Felony Theft 102 In December 2001, a Mills Fleet Farm employee was charged with felony theft in connection with taking $4,500 from the Mills Fleet Farm office tray and safe and altering bank deposits. [Saint Paul Pioneer Press, 12/07/01] Store Employee Sued Store For Terminating Him After Medically Diagnosed As Unable To Do Job In 1995, a Mills Fleet Farm employee filed a lawsuit against Mills Fleet Farm for terminating him after he was medically diagnosed as incapable of performing the essential functions of his job. The employee claimed that, even though he was disabled and could not perform the essential functions of the job he was assigned, the employer had an obligation to find him some other job that would fit his restrictions. [Minnesota Employment Law Letter, 4/95 United States District Court, 97-2655] Court Said Mills Fleet Farm Was Not Required to Create Position for Employee In April 1995, the court said Mills Fleet Farm had the right to terminate the employee from the temporary clerical job that he was given after he was medically diagnosed as unable to do his job and that the employer was not required to create a position for the individual. The court also noted that there were no regular full-time vacant positions available at the time of termination. [Minnesota Employment Law Letter, 4/95; United States District Court, 97-2655] Judgment Ruled Against Plaintiff In 1997, the United States District Court ruled against the plaintiff . [United States District Court, 97-2655] Neighbors Petitioned Against 56-Foot Silo Proposed By Mills Fleet Farm In 2003, sixty neighbors petitioned against a 56-foot silo proposed by Mills Fleet Farm. The City Council compromised, approving the silo, but not in the preferred corporate colors of orange, black and white. [Associated Press, 10/14/03] Store Agreed To Pay For Making And Installing News Signs After Highway Was Renamed In 2005, Mills Fleet Farm agreed to pay for making and installing signs along the highway that would bear the new designation of a highway that was named to honor wounded killed military. [St. Cloud Times, 3/18/05] Residents Complained About Mills Fleet Farm Retail Store Near Townhouse Development In 2009, Blaine, MN residents complained about a Mills Fleet Farm retail store near a townhouse development. From the Star Tribune: 103 “The glowing orange and white lights from the Mills Fleet Farm sign beam through the windows of the neighboring townhouses in Blaine until after midnight. The delivery trucks arrive early in the morning, lurching noisily into the parking lot and occasionally honking their horns before the residents are awake.” [Star Tribune, 9/27/08] Store Agreed to Turn Lights Off at 9 pm, But Entrance Sign Light Stayed on Past Midnight According to the Star Tribune, Mills Fleet Farm had originally agreed to turn off their parking lights at 9 PM, but the lights from the entrance sign and an illuminated orange silo stayed on past midnight because those lights were not considered parking lot lights. From the Star Tribune: “When she asked why the light poles needed to be 42 feet tall when the zoning ordinance limits them to 20 feet, the project engineer Bruce Buxton said they would need four times the number of poles if they were 20 feet, according to minutes from a planning commission meeting. Schafer said Fleet Farm agreed to turn the parking lot lights off when the store closes around 9 p.m. But the lights from the entrance sign and the illuminated orange silo stay on until shortly past midnight. Begin and Tipler said the city told them those are not considered parking lot lights.” [Star Tribune, 9/27/08] Opened new store in hermantown, MN. Iowa DOT Officials Discussed Overhung Sign In July 2013, Iowa Department of Transportation employees discussed a Mills Fleet Farm sign that overhung in a fenced area. From an Iowa Department of Transportation email chain: 104 [Iowa Department of Transportation Employee Emails] Blaine City Council Approved A Zoning Change To Mills Fleet Farm In May 2007, the Blaine City Council approved a zoning change that would make a Mills Fleet Farm store possible. The zone change went from one type of commercial zoning to another type of commercial zoning that would allow auto repairs. [Star Tribune, 5/09/07] Mills Fleet Farm Owned 38-Acre Site for 12 Years Prior Mills Fleet farm owned the 38-acre site for 12 years prior to the zoning change. [Star Tribune, 5/09/07] Town Officials Were Surprised They Planned to Build Store In April 2007, city official were surprised that the company planned to build the stores. “In some respects, I think maybe we're a little surprised they are building, given the fact that they hadn't built on it the last several years,” said Bryan Schafer, Blaine's planning and community development director. [Minneapolis St. Paul Business Journal, 4/09/07] Withdrew Petition For Site Deemed Unacceptable For Large-Scale Commercial Development 105 In June 2001, Fleet Farm withdrew an annexation petition for a land site in Milwaukee, Wisconsin that was deemed unacceptable for large-scale commercial development by several state agencies, including the state Departments of Transportation and Natural Resources. [Milwaukee Journal Sentinel, 6/19/01] City Council Previously Denied Annexation Petition, Land was Outside Sewer Service Plans In April 2000, the Milwaukee Common Council previously denied Feel Farm’s annexation petition to build a new store at Highways 33 and Z because the land was outside of sewer service plans. [Milwaukee Journal Sentinel, 4/04/13] Fleet Farm Ran Radio Commercials Urging Approval of Land Site In March 2000, Mills Fleet Farm ran a radio advertisement urging the Milwaukee Common Council to approve their rezoning petition that would’ve enabled for the construction of a Mills Fleet Farm store. [Milwaukee Journal Sentinel, 3/21/00] 2012: Mills Properties Ranked 10th Top Property Taxpayer In 2013, the Winona Post reported that Mills Properties was ranked the top 10th highest property taxpayer in Winona, Minnesota in 2012. [Winona Post, 5/29/13] Company Failed To Label Non Hardy Plant Material In Store In a May 2013 North Dakota Department of Agriculture inspection, a Mills Fleet Farm store in North Dakota failed to label their “non hardy” plant materials with the label, “not hardy in North Dakota.” [North Dakota Department of Agriculture] Note: The letter informing the company of this violation was sent in August, 2013. 106 [North Dakota Department of Agriculture, 8/16/13] Mills Fleet Farm Sponsored Central Minnesota National Veteran’s Awareness Week In November 2008, Mills Fleet Farm sponsored the central Minnesota national veteran’s awareness week. [St. Cloud Times, 11/15/08] Driver Taking Shortcut Through Parking Lot Injured A Mills Fleet Farm Employee In July 2009, a driver that took a shortcut to avoid traffic congestion struck and injured a Mills Fleet Farm employee walking to his car. [Star Tribune, 7/13/09] Bear Was Shot And Killed Near Mills Fleet Farm In April 2003, a bear was shot and killed near a Mills Fleet Farm store. [St. Cloud Times, 4/09/03] Two Retail Chains Were Listed Under Top Ten DNR License Agents In Minnesota In July 2008, the Brooklyn Park and Baxter Mills Fleet Farm stores were listed under the top ten DNR license agents in Minnesota. [St. Paul Pioneer Press, 7/24/08] Court Cases Mills Fleet Farm Settled With Plaintiffs Four Times, Individuals Awarded $3,772.04 107 Mills Fleet Farm settled with plaintiffs four times, awarding $3,772.04 to individuals. Below is a table outlining these cases: Plaintiff Mike Edwards Defendant Mills Fleet Farm Case Number 82-CO-092160 Terry Kreiling Mills Fleet Farm 73-CO-111063 Harold Dobel and Kenneth Dobel Mike Edwards Mills Fleet Farm Mills Fleet Farm C7-85-602 82-CO-092160 Overview Plaintiff alleged that he purchased a lawn-mower and after three uses, the engine seized up. The plaintiff asked for his money back after the store said they were not going to repair it. Plaintiff alleged that his vehicle was damaged during installation of a trailer hitch purchased at Mills Fleet Farm. Plaintiff (a minor) alleged that he was greatly injured in character and reputation after he was falsely accused of taking an un-purchased retail merchandise and was detained in the store Plaintiff alleged that he 108 Judgment Settled, $348.52 in favor of Plaintiff Court Washington County District Court Settled, $75 in favor of Plaintiff Dakota County District Court Settled, $1,000 paid to Kenneth Dobel, $1,000 paid to Harold Dobel, $1,000 paid to Smith, Pringle and Hayes Settled, $348.52 in Sherburne County District Court Washington County District purchased a lawn-mower and after three uses, the engine seized up. The plaintiff asked for his money back after the store said they were not going to repair it. Total favor of Plaintiff Court $3,772.04 [Washington County District Court, Sherburne County District Court and Dakota county District Court] NOTE: See “Appendix III – Mills Fleet Farm Court Cases” for a full list of cases that Mills Fleet Farm was involved in 109 …Mills Automotive Group Significant Findings Mills held a financial stake in companies that benefited from “Cash for Clunkers” program, called themselves the “Cash for Clunkers Headquarters” Listed positions as with Lively Auto Company and Mills auto group Mills listed positions with Lively Auto Company and Mills Automotive Group Reinsurance Ltd. The auto centers benefited from the federal “Cash for Clunkers” program, making 144 transactions from the program that totaled $620,000 in federal dollar rebates, and sold $3,146,560.00 worth of inventory. The company called themselves the “Cash for Clunkers headquarters.” Listed Positions With Mills Automotive Groups In Mills’ personal financial disclosure form, he listed positions with Lively Auto Company and Mills Automotive Group Reinsurance Ltd. The following table outlines the positions he disclosed on his personal financial disclosure form related to Mills Auto: Position Vice President Vice President Director/Secretary/Vice President Trustee Name of Organization Lively Auto Company Mills Trucking, LLC Mills Automotive Group Reinsurance Ltd Mills Auto Group Profit Sharing 401(K) Plan and Trust [Personal Financial Disclosure Form, October 2015] Mills Auto Center Part of Fleet Mills Farm Family According to the Mills Automotive Group website, the Mills Automotive Group is part of the Mills Family of Companies. [Mills Auto Website, accessed 9/05/13] Lively Auto Company Part of Mills Auto Group In 1922, Stewart C. Mill, Sr. purchased the Lively Auto Company. From the Mills Automotive Group’s website: 110 [Mills Auto Website, accessed 9/05/13] Company Benefited From Cash For Clunkers In 2009 and 2010, Mills Motor, Mills Auto Center and Mills Auto Enterprises participated in the Federal Government’s “Cash for Clunkers” program, which was a program that offered $3,500 to $4,500 for people who traded in an old car for a new one with higher fuel economy. The auto centers made 144 transactions from the program, totaling $620,000 in federal dollar rebates, and sold $3,146,560.00 worth of inventory. [New York Times, 7/30/09; Cars.gov] NOTE: See “Cash for Clunkers” appendix for a full breakdown of all Mills Auto Center’s Cash for Clunkers transactions. 2009: Mills Automotive called themselves the “Cash for Clunkers Headquarters” In July 2009, Mills Automotive Group advertised themselves as the “Cash for Clunkers Headquarters!” on their YouTube page. [Mills Automotive YouTube, Uploaded 7/30/09] From their YouTube page: 111 [Mills Automotive YouTube, Uploaded 7/30/09] Touted Cash for Clunkers on YouTube Page In July 2009, Mills Automotive Group touted the Cash for Clunkers program on their YouTube page. From their YouTube page: 112 [Mills Automotive YouTube, Uploaded 7/27/09] Mills Sold $3.1 Million in Inventory with “Cash for Clunkers” In 2009 and 2010 Mills Motor, Mills Auto Center and Mills Auto Enterprises sold $3,146,560 worth of cars based on the Manufacturer Suggested Retail Price (MSRP) with the “Cash for Clunkers” program. [Cars.gov, accessed 11/6/13; Star Tribune, 1/9/14] 2009: Mills Motors Director of Operations Said Cash for Clunkers was “Boost to Business” In 2009, Mills Motors director of operations Rick Goble said of the Cash for Clunkers program, “It worked very well for sales […] It was a challenge to administer. There was a great deal of confusion but it was certainly a boost to business.” [Brainerd Dispatch, 9/23/09] Cash for Clunkers Created about 60,000 Jobs According to the Congressional Research Service, because of Cash for Clunkers, “About 60,000 jobs were estimated to have been created in auto parts, assembly, and sales, and an estimated $7.8 billion added to U.S. Gross Domestic Product.” [Congressional Research Service, 3/3/10] …then Criticized Cash for Clunkers In 2014 Mills criticized the Cash for Clunkers program. 113 “Cash for Clunkers was a lemon and I had a front row seat,” Mills said. [Brainerd Dispatch, 1/3/14] Headline: Congress candidate Stewart Mills profited big from Cash for Clunkers program he now decries [City Pages, 1/27/14] Court Cases Courts in Minnesota ordered Mills Fleet Farm Automotive Group to pay plaintiffs twice, awarding $748.65 to individuals. Below is a table outlining these cases: Plaintiff Katie Hawkinson Defendant Mills Fleet Farm Case Number 27-CO-101812 Warrren Samuel Mills Fleet Farm S8-05-609 Overview Plaintiff went to Mills Fleet Farm for new front tires and alleged she requested two new front tires, Mills Fleet Farm mistakenly replaced rear tires and disposed of those tires. Store refused to fully compensate Plaintiff for her loss. Plaintiff alleged he took car to Mills Fleet Farm to show slow leaks in three tires; When the store was finished fixing his car, they parked it in a pool of break fluid and Plaintiff had to 114 Judgment Against Mills Fleet Farm, $257.67 Court Hennepin County District Court Against Mills Fleet Farm, $490.98 Crow Wing County District Court pay to get it fixed and towed. Total $748.65 NOTE: See “Appendix III – Mills Fleet Farm Court Cases” for a full list of cases that Mills Fleet Farm Automotive Group was involved in 115 …Mills Gas Mart Significant Findings Had several gas leaks Posted fake gas prices to keep customers away after September 11 th attacks 2008: Customers only received 4.5 gallons of gas when they paid for five gallons Mills Gas Marts have had several gas leaks. One of their branches posted fake gas prices to keep customers away on September 11th. A 2008 inspection report claimed that costumers only received 4.5 gallons of gas when they paid for five gallons. September 2011: Mills Fleet Farm Posted Fake Gas Prices to Keep Costumers Away In September 2001, in the midst of the September 11th terrorist attacks, a Mills Fleet Farm gas station raised “fake gas prices” were an attempt to disperse long lines of customers due to lines of cars attempting to buy gas blocked traffic on a nearby avenue. [Legal Ledger, 9/17/01] Took Out a Full-Page Newspaper Ad to Explain Fake Prices Was Not Right Action In September 2011, Mills Fleet Farm took out a full-page newspaper ad to say that posting the fake prices “was not the right action to take.” The ads explain that posted gas prices of $4 and $6 a gallon was an attempt to disperse long lines of customers, not to gouge anyone. [Legal Ledger, 9/17/01] 2008: Mills Gas Mart Customers Only Received 4.5 Gallons Of Gas When They Paid For 5 Gallons In 2008, an inspection report showed that a Mills Fleet Farm gas pump in Waite Park, Minnesota was off by 130 cubic inches, resulting in costumers only receiving four and a half gallons for every five gallons they paid for. [St. Cloud Times, 7/06/08] Mills Gas Mart Had Several Leaks Between 1997 and 2007, several Mills Fleet Farm “Gas Marts” had gas leaks. [Minnesota Pollution Control Agency, accessed 8/21/13] The following table outlines the Minnesota Pollution Control Agencies’ documentation of these leaks: Site Name Leak Address City County Leak ID Number 116 Contamination Released Discovered Release Report Complete Site Fleet Farm 3551 S Broadway Rochester Olmsted 17013 11633 Mills Fleet Farm C Store Mills Fleet FarmBrooklyn Park Mills Fleet FarmLakeville Mills Fleet FarmOakdale Mills Fleet FarmOwatonna 14114 Dellowood Dr Baxter Crow Wing 11422 8400 Lakeland Ave N Brooklyn Park Brooklyn Park 9235 17070 Kenrick Ave Lakeville Dakota 10837 5501 Hadley Ave N Oakdale Washington 15407 2121 W Bridge St Owatonna Steele 15260 Ground Contamination Ground Contamination -- 10/01/07 10/02/07 Closure Date 9/11/08 8/05/98 8/09/98 1/22/01 9/09/97 9/09/97 9/15/00 Groundwater Contamination 5/01/96 5/01/96 4/07/97 10/06/97 10/06/97 4/23/98 9/16/03 9/17/03 6/12/08 6/09/03 6/09/03 5/05/05 -- Free Product Observed, Groundwater Contamination Groundwater Contamination [Minnesota Pollution Control Agency, accessed 8/21/13] Mills Fleet Farm Gas Station Leaked 2,900 gallons in Storm Sewer and Wetland In 2003, a Mills Fleet Farm gas station in Oakdale, Minnesota leaked than 2,900 gallons of gas into a storm sewer and a wetland. From the St. Paul Pioneer Press: “In 2003, a leak at a Mills Fleet Farm gas station in Oakdale sent more than 2,900 gallons of gas into a storm sewer and nearby wetland. Nate Blasing, an MPCA inspector, says the leak was an enigma. The tanks and piping were all protected by secondary containment. Mills Fleet Farm hired contractors to run every possible test to try to find the source of the leak. But everything seemed to be intact. Mills Fleet Farm said its spokesman was not available to comment and declined to provide someone else to speak about the incident.” [St. Paul Pioneer Press, 4/26/08] Mills Fleet Farm Car Wash Court Cases Courts in Minnesota ordered Mills Fleet Farm car wash to pay plaintiffs twice, awarding $3,772.04 to individuals. Below is a table outlining these cases: 117 Plaintiff Sandra Gohmann Defendant Mills Fleet Farm Case Number 73-CO-08-225 Randy Berggren Mills Fleet Farm 02-CO-13-864 Overview Plaintiff alleged that her car was damaged at a Mills Fleet Farm car wash. Plaintiff claimed damage to car from Mills Fleet Farm car wash. Total Judgment In favor of Plaintiff, $857.70 Court Dakota County District Court Against Mills Fleet Farm, $2,213.79 Anoka County District Court $3,071.49 NOTE: See “Appendix III – Mills Fleet Farm Court Cases” for a full list of cases that Mills Fleet Farm car wash was involved in 118 Political Career 2014 Congressional Campaign Significant Findings June 2013: Announced run for Congress Used campaign Facebook account to advertise his company’s indoor shooting and archery range Took a leave of absence from Mills Fleet Farm during his 2014 congressional bid Was dubbed the “Brad Pitt” of the Republican Party by Politico, said he was glad that he did not look like a typical politician Steve Biondich, who appeared in a campaign ad for Mills, posted sexist memes and cartoons on social media Used video letter to Nolan to promote Fleet Farm stores, showcased firearms Used campaign website detailing company’s history and website address Donor accused of political activism with local television stations Endorsed by Tea Party Express hours after denying Tea Party bent Lost 2014 election by 1.4 percent Touted his family’s hunting camp doctrine—“if you complain about something, you get the job to fix it”—as a reason why he was running in ads and media appearances Announcing a run for Congress in June 2013, Mills used his campaign Facebook account to advertise his company’s indoor shooting and archery range. He also used a video letter to Nolan to promote Fleet Farm stores, showcasing firearms. In his campaign website’s “About Stewart Mills” section, he also advertised his company by detailing a history of the company and their company website’s address. He also told the Star Tribune that he considered his lack of experience a plus. 119 June 2013: Announced Run for Congress In June 2013, Mills announced his run for Minnesota’s Eighth Congressional District. [MinnPost, accessed 6/26/13] Took A Leave Of Absence From Mills Fleet Farm During His 2014 Congressional Bid Took A Leave Of Absence From Mills Fleet Farm During His 2014 Congressional Bid. “Mills had taken a leave of absence from his Mills Fleet Farm position to run for Congress. Mills, although saying he holds no grudges about the personal attacks, said Nolan was being ‘disingenuous’ when he claimed the third party ads from the Democratic Congressional Campaign Committee were too mean-spirited. But the congressman claimed in media interviews, including one with the MDN, that he could not tell a thirdparty group to pull the ads. ‘It would be against campaign law,’ he said. ‘When Congressman Nolan says he strongly disliked the third party ads and was frustrated that he didn't have the ability to pull them down, that is a bunch of hooey,’ Mills said.” [Mesabi Daily News, 11/22/14] Used Campaign Facebook Account to Advertise Company’s Indoor Shooting and Archery Range In September 2013, Mills used his campaign Facebook account to advertise his company’s shooting and archery range. The campaign Facebook page had shared a link to an article that featured a video and article of Mills touting the range and but mentioned nothing about his campaign. [Mills’ campaign Facebook page, Posted 9/09/13] From his Facebook page: 120 [Mills’ campaign Facebook page, Posted 9/09/13] Two Months Later, Posted Another Video Promoting His Company 121 In November 2013, Mills posted a video on his congressional campaign Facebook page that promoted his company. From his Facebook page: [Mills Campaign Facebook Page, accessed 11/12/13] Used Anti-Gun Control Video To Promote Mills Fleet Farm Stores, Showcasing Firearms And Fire Ranges In Mills’ 2013 video letter to Congressman Rick Nolan and Senators Franken and Klobuchar on gun control legislation, he used the video as a promotional tool for the Fleet Farm stores, showcasing the firearms and firing ranges available at their stores. “I’m standing in front of Mills indoor shooting and archery, soon to open on the corner of 210 and 371 in Baxter, Minnesota. Behind me is one of our 32 Fleet Farm stores…our Huldra Mark 4 line of rifles and accessories, exclusive to Mills Street Farms, has allowed our shooting sports department to be successful, which in turn has allowed us to hire more people and continue to expand,” Mills said. [HuldraArms YouTube account, uploaded 1/10/13] NOTE: See “Key Moments on Video” section for a full transcription of the video. Used Campaign Website To Advertise His Company In September 2013, Mills used his campaign website to advertise his company. [Stewart Mills Campaign Website, accessed 9/11/13] From his “About Stewart Mills” section: 122 [Stewart Mills Campaign Website, accessed 9/11/13] Previously Dubbed “The Brad Pitt” Of The Republican Party Politico Headline: “The ‘Brad Pitt’ Of The GOP.” [Politico, 6/23/14] His Long Hair Generated Attention And Drew Brad Pitt Comparisons, Said He Did Not “Look Like A Typical Politician.” “Mills, with his jaw-length blond locks and muscular physique, has been compared to the heartthrob movie star by everyone from a national party official to adoring teenage girls. And if it seems a little trivial and objectifying — he is, after all, running in one of the more closely watched, competitive House races in the country — Mills doesn’t mind. To the contrary, the 42-year-old businessman has put his distinctive looks front and center in his sales pitch to voters — that he is not your father’s Republican. ‘Certainly, I stand out in a crowd, like I did today,’ Mills said in an interview after appearing with other, more traditionally coiffed Republicans vying for state office here. ‘The hair — I mean, everybody else there was very groomed.’ His latest ad opens with Mills saying, with a shrug, ‘I guess I don’t look like a typical politician.’” [Politico, 6/23/14] His Hairstyle Made Headlines National Journal Headline: “The Most Interesting Candidate Of The Year.” [National Journal, 9/19/14] Wall Street Journal Headline: “Challenger’s Hair Style On Trial In Minnesota House Race.” [Wall Street Journal, 10/02/14] Wall Street Journal: “Not Since Michelle Obama Got Bangs Has A Hairstyle Generated This Much Discussion.” “Not since Michelle Obama got bangs has a hairstyle generated this much discussion.” [Wall Street Journal, 10/02/14] Mills: “This Is The Way I’ve Looked Forever And I’m Not Going To Change It … It’s Too Late To Cut It Now — Not That I Want To.” “Mr. Mills himself has shrugged off the controversy around his tresses, saying he has no plans to get a trim. ‘This is the way I’ve looked forever and I’m not going to change it,’ he said in an interview Tuesday. Democrats are dodging talking about policy issues by focusing on his hair, he said. ‘It’s too late to cut it now — not that I want to.’” [Wall Street Journal, 10/02/14] 123 Steve Biondich, Who Appeared In A Campaign Ad For Mills, Posted Sexist Memes And Cartoons On Social Media Steve Biondich Appeared In Ad For Mills Entitled “Steve” In Which Biondich Touted Mills’ Support For Mining Jobs On The Iron Range. [YouTube, 9/10/14] Biondich Posted A Series Of Sexist Memes And Cartoons On Social Media Including One That Read “If She Wants To Walk Down The Aisle…Send That B**** Grocery Shopping.” [City Pages, 9/11/14] Reposted Sexist Pictures And Cartoons. “But after seeing the footage, a tipster drew our attention to Biondich's Facebook page, which contains at least a few posts belying the notion his support for Mills goes beyond party affiliation. Biondich's page also contains other posts cringe-worthy in light of the hole the Republican Party dug itself in recent years with its so-called ‘war on women.’ On that note, here's a photo Biondich shared back in 2012:” [City Pages, 9/11/14] Posted An Offensive Cartoon About Women’s Decision Making. “Along the same lines, here's another post from earlier this year:” [City Pages, 9/11/14] 124 Said A Meme Stating “If She Wants To Walk Down The Aisle…Send That B**** Grocery Shopping” Was “Awesome.” “Just a few weeks ago, Biondich shared this photo... and added this commentary:” [City Pages, 9/11/14] 125 2015: Posted Images Disparaging Immigrants, Syrian Refugees, And The Black Lives Matter Movement. [Facebook, 9/13/15, 9/24/15, 9/03/15] 126 Donor Accused Of Political Activism With Local Television Stations TV Ad Against Mills Pulled by Stations Owned by Mills Financial Backers Hubbard Broadcasting affiliates WDIO in Duluth and KSTP in the Twin Cities pulled a TV ad against Stewart Mills that highlighted his inherited wealth. The ad was paid for by House Majority PAC and AFSCME. Democrat Congressman Rick Nolan claims the decision to pull the ad is due to Executive Stanley Hubbard’s conservative leanings. So far this election cycle, Hubbard Broadcasting executives and family members have donated at least $14,000 to the Mills campaign. [KBJR, 8/06/14] Station that Pulled Anti-Mills Ad an Ally of Mills’ Campaign In August 2014, a local NBC affiliate and Congressman Nolan criticized local ABC affiliates for pulling an ad critical of Stewart Mills. The ABC affiliate is owned by an ally of Mills and executives and family from the stations have donated over $14,000 to the Mills campaign. [KBJR, 8/06/14] Hubbard Broadcasting Accused of Political Activism by Taking Down Democratic Group’s Commercial In 2014, Northland News Center reported that Hubbard Broadcasting was accused of political activism by taking down a Democratic leaning group’s advertisement. “Democratic leaning groups say the 127 conservative political leanings of Hubbard Broadcasting executives were a defining factor on why the anti-Republican ad was recently taken down,” Northland News Reported. [Northland News Center, 8/7/14] Headline: National media outlets call out WDIO & KSTP for “political activism” [Northland News Center, 8/7/14] Held Boehner-Headlined Fundraiser Sponsored by Hubbard Broadcasting Executives In August 2014, the Star Tribune reported: “Boehner will host a fundraiser for Mills, who is challenging incumbent Democratic Rep. Rick Nolan, at the Grand View Lodge in Nisswa Aug. 14. Gold sponsors of the fundraiser include Stanley and Karen Hubbard, executives of Hubbard Broadcasting.” [Star Tribune, 8/08/14] Headline: GOP Speaker Boehner, Hubbard Broadcasting owners throw Mills fundraiser [Star Tribune, 8/08/14] Campaign Accepted Thousands From Hubbard Family 2015: Hubbard Family Contributed $7,400 From October 2015 To December 2015. [FEC, accessed 2/11/16] Name Virginia A. Hubbard Robert Hubbard Karen H. Hubbard Stanley S. Hubbard TOTAL Date 12/30/15 11/15/15 10/28/15 10/28/15 Amount $1,000 $1,000 $2,700 $2,700 $7,400 [FEC, accessed 2/16/16] In 2014 the National Journal reported: “In Minnesota, Hubbard donated the maximum of $5,200 to Mill's campaign, and two family members employed by Hubbard Broadcasting also reported contributing a combined $6,200. In 2011, Hubbard Broadcasting donated $100,000 to American Crossroads.” [National Journal, 9/30/14] Republican Donor Hubbard: I “Had Nothing To Do With” Pulling Anti-Mills Ad In August 2014, Stanley Hubbard, Republican donor and television station owner, said the Hubbards “had nothing to do with” the decision to pull an anti-Stewart Mills television ad from two stations. The ad was still being aired by other stations. “Our stations do not get involved in politics, period,” said Hubbard. [Minneapolis Star Tribune, 8/11/14] Headline: Hubbard says he 'had nothing to do with' pulling anti-Mills ad [Star Tribune, 8/11/14] MSNBC, National Journal Reported on Hubbard Broadcasting Links to Mills 128 In August 2014, MSNBC and National Journal both reported on Hubbard Broadcasting’s decision to pull an ad critical of Stewart Mills. The Hubbard networks were the only networks to pull the ad and the company’s chairman, Stanley Hubbard, is the second highest Republican donor in Minnesota. “So the government can’t police campaign ads but apparently, it’s ok for this one guy who is a clear partisan political activist to act as his own personal Ministry of Truth when ads don’t look so good for one of his candidates,” said Krystal Ball of MSNBC. [Northland News Center, 8/07/14] Headline: National media outlets call out WDIO & KSTP for “political activism” [Northland News Center, 8/07/14] Mills Wrongly Bragged About Getting HMP Ad Against Him “Yanked” In August 2014, Mills incorrectly bragged to supporters that he was able to get the AFSCME/HMP ad aired against him “yanked.” The ad had been pulled from stations owned by Hubbard Broadcasting for being “misleading” but was still airing on other stations. [Star Tribune, 8/06/14] Headline: Eighth District ad not completely 'yanked' [Star Tribune, 8/6/14] CityPages: “It’s Tough to Say [HMP/AFSCME]’s Attacks are Misleading” In August 2014, the Minneapolis CityPages blog reported that “raw footage of the speech in question makes clear Mills is indignant about wealthy ‘job creators’ being portrayed as exploitative, selfish jerks,” and that “Mills believes society is best off when the rich can keep as much of their money as possible.” The reported concluded that “ it’s tough to say their attacks are misleading.” [Citypages Blog, 8/07/14] Headline: Hubbard Broadcasting's decision to pull anti-Stewart Mills attack ad sparks controversy [City Pages, 8/7/14] Considered Lack Of Experience “A Plus” In June 2013, Mills considered his lack of experience “a plus.” “Mills, who considers his lack of political experience a plus, will run in a northern district once considered a Democratic stronghold that has flipped between parties lately,” the Star Tribune reported. [Star Tribune, 6/26/13] NRCC Poll: Mills 36 Percent, Nolan 36 Percent In July 2013, the National Republican Congressional Committee polled Mills with 35 percent of the vote and Nolan with 36 percent of the vote. [Hot Dish Politics, 7/19/13] 2014: Contributed Heavily To His Campaign, Loaned His Campaign Over $400,000 In June 2013, Mills said he planned to fund some of his campaign. 129 “Am I going to self-fund to a large extent… No. I'm going to work for it,” Mills said. [Hot Dish Politics, emphasis added, 6/26/13] 2013: Gave His Campaign $10,400. [FEC accessed, 2/16/16] Contributor Stewart C. Mills III Stewart C. Mills III Stewart C. Mills III Stewart C. Mills III Total Date 7/18/13 7/18/13 7/01/13 7/01/13 Amount $2,600 $2,600 $2,600 $2,600 $10,400 [FEC accessed, 2/16/16] 2014: Gave His Campaign $1,510.73. [FEC accessed, 2/16/16] Contributor Stewart C. Mills III Total Date $1,510.73 Amount $1,510.73 $1,510.73 [FEC accessed, 2/16/16] 2014: Loaned His Campaign $402,950. [FEC, accessed 2/18/16] Loan Source Stewart C. Mills III Stewart C. Mills III Stewart C. Mills III Stewart C. Mills III Stewart C. Mills III Stewart C. Mills III Stewart C. Mills III Stewart C. Mills III Stewart C. Mills III Total Date 10/23/14 10/23/14 10/15/14 10/06/14 8/11/14 7/22/14 6/30/14 6/17/14 6/04/14 Amount $42,950 $35,000 $25,000 $50,000 $82,270 $46,000 $36,000 $47,230 $38,500 $402,950 [FEC, accessed 2/18/16] March 2015: Minnesota Republican Party Owed Consultants Over $200,000 For Work Done On Mills And McFadden Campaigns. “In e-mails to state GOP Chairman Keith Downey, top executives at Salt Lake City-based Arena Communications and the Kansas-based Singularis Group blasted the Minnesota Republican Party in unusually frank language. They said the party has failed to pay its bills for direct mail and other political communications on behalf of federal and state GOP candidates running for office in Minnesota last fall … Asked how much the party still owed vendors, Downey put the figure at about $300,000 … Peter Valcarce, founder and manager of Arena Communications, wrote in a Feb. 23 email to Downey that his firm is still owed $211,473 for work it did for the party to aid the U.S. Senate campaign of Mike McFadden and the congressional campaign of Stewart Mills in northeastern Minnesota.” [Star Tribune, 3/03/15] 130 Endorsed By The Minnesota Farm Bureau In August 2014, Mills was endorsed by the Minnesota Farm Bureau. [Minnesota Farm Bureau, 8/19/14] Endorsed By Tea Party Express Hours After Denying Tea Party Bent In October 2014, Mills was endorsed by the Tea Party Express hours after saying in a debate that “I keep getting accused (of) being a Tea Partyer and I'm not sure that's entirely accurate.” Tea Party Express said Mills “isn't your typical politician. He is someone that understands hard work and will stop at nothing in order to fix a problem -- traits he picked up from his family's hunting-camp doctrine.” [Minneapolis Star Tribune, 10/07/14] Headline: A few hours after saying he is not a Tea Partyer, Tea Party Express endorses Stewart Mills [Star Tribune, 10/7/14] Accepted Support From Congresswoman Bachmann In October 2014, Congresswoman Bachmann fundraised fir Mills. [City Pages, 10/23/14] Headline: Michele Bachmann Fundraising for Stewart Mills [City Pages, 10/23/14] Campaign Commercial Star’s Criticized For Facebook Posts In September 2014, Mills came under fire for sexist and misogynistic comments on the Facebook page of the ad’s star, Steve Biondich. The station reporting on the ad, Northland News Center, reported that the content of the Facebook page was too inappropriate to show. [Northland News Center, 9/16/14] Biondich Under Fire for Sexist Facebook Posts In September 2014, Mills’ new ad featuring Aurora steelworker Steve Biondich came under fire for Biondich’s sexist and misogynistic facebook posts, including positive comments on overtly sexist pictures. [City Pages, 9/11/14] Headline: Star of Stewart Mills's Latest Ad Has Off-Color Facebook Page [City Pages, 9/11/14] Headline: DFL Ralliers Criticize Comments Made by Man in Mills Ad [WDIO, 9/12/14] Mills Disagreed With Ad Stars’ Sexist Comments but Would Not Pull Ad In September 2014, Mills dismissed a rally by the DFL to criticize comments made by Steve Biondich, who appeared in a recent Mills attack ad. The Mills campaign said he disagreed with Biondich’s sexist and misogynistic comments but that he would continue to air the ad. [WDIO, 9/13/14] Defended Attacks On Hairstyle 131 In October 2014, Mills said that he would not cut his hair after multiple democratic attacks on his hair style as a proxy for his wealth. “This is the way I’ve looked forever and I’m not going to change it. It’s too late to cut it now — not that I want to,” said Mills. [Wall Street Journal, 10/02/14] Headline: Challenger’s Hair Style on Trial in Minnesota House Race [Wall Street Journal, 10/02/14] Chamber Of Commerce Ran Ads Supporting Mills Chamber Of Commerce Ran Ads Supporting Mills. “The Chamber of Commerce is launching a $3 million advertising campaign to boost preferred candidates and incumbents in 10 House races nationwide in its first major shift toward the general election … The House ads will run for two weeks and are supporting GOP Reps. Andy Barr (Ky.), Dan Benishek (Mich.), Mike Coffman (Colo.), Chris Gibson (N.Y.), Joe Heck (Nev.) and David Valadao (Calif.), as well as GOP candidates Bob Dold, running for his old seat in Illinois; Stewart Mills, challenging Democratic Rep. Rick Nolan in Minnesota; former Rep. Doug Ose, challenging Rep. Ami Bera (D-Calif.); and Richard Tisei, challenging Rep. John Tierney (DMass.).” [The Hill, 5/08/14] 2014: Lost Election 48.5 Percent To 47.1 Percent, By Margin Of 1.4 Percent; Was The Eighth Most Expensive Race In The Country 2014: Lost Election 48.5 Percent To 47.1 Percent, By Margin Of 1.4 Percent. “A final count gives Nolan 128,820 to 125,184 for Mills -- a 48.5 percent to 47.1 percent margin. Nolan and Mills volleyed the lead for about two hours until the congressman opened about a 2 percent lead at 10 p.m., which he maintained with only slight slippage until Wednesday morning when his lead was too much to overcome. The two candidates were gracious in victory and defeat. ‘While the results last night were not what we were hoping for, I'm incredibly thankful that I had the opportunity to run in this race,’ said Mills. ‘I'm deeply grateful for all the support I received throughout this campaign, and to all the volunteers who worked so hard to bring change to the 8th District.’ Mills went on to praise his competitors. ‘I also want to thank my opponents, Ray 'Skip' Sandman and Congressman Rick Nolan,’ continued Mills. ‘They're both good men who really care about Minnesota and our country, and it was a honor to run with them. I've given Congressman Rick Nolan a call this morning to congratulate him on his victory, and extend my thanks for a hard-fought race.’” [Mesabi Daily News, 11/07/14] Lost By A Little More Than 3,600 Votes. “Candidates for 8th District Congress from the Brainerd Area received 254,004 votes on Tuesday, with Democratic U.S. Rep. Rick Nolan polling a mere 3,636 more ballots than Republican Stewart Mills.” [Mesabi Daily News, 11/07/14] 2014 Race Was Eighth Most Expensive Race In The Country; $15.8 Million Spent Total And $12.5 Million In Independent Expenditures. “It wasn't hair or money that mattered in this election, according to Republican activist Justin Krych, who said he had become annoyed with the common argument that GOP candidate Stewart Mills had the wrong pro-file for the district. Initially heralded as one of the GOP's most promising challengers in 2014, Mills inspired big spending on both sides of the race; with a total of about $15.8 million spent, including $12.5 million worth of independent expenditures, the race was the 132 eighth most expensive in the country this year, according to the Center for Responsive Politics.” [Legal Ledger, 11/12/14] Touted His Family’s Hunting Camp Doctrine — “If You Complain About Something, You Get The Job To Fix It” — As A Reason Why He Was Running In Ads And Most Media Appearances Touted Family’s Hunting Camp Doctrine—“If You Complain About Something, You Get The Job To Fix It”—As A Reason Why He Was Running In Ads And Media Appearances. “Eighth District voters should expect to hear a lot about Stewart Mills’ ‘hunting camp doctrine’ between now and November. The doctrine — that, in the Mills family, if you complain about something, you try to fix it — is the centerpiece of the Republican's second campaign ad, released on Thursday. ‘I'm fed up with Washington, the bickering, the debt, Obamacare,’ Mills says between shots of a cabin and a group out on a hunting trip. ‘Instead of complaining, I'm going to fight to fix it.’ ‘This hunting camp could teach Washington a thing or two.’ Besides the ad, Mills has espoused his hunting camp doctrine in interviews and on the stump as his reasoning for running against incumbent U.S. Rep. Rick Nolan — rather than complain about what Congress is doing, he'll try winning a seat instead.” [MinnPost, 6/05/14] Campaigned On “Four Pillars” Of Repealing And Replacing Obamacare, Reducing Small Business Taxes, Preserve Gun Rights, And Eliminate Federal Debt Campaigned On “Four Pillars” Of Repealing And Replacing Obamacare, Reducing Small Business Taxes, Preserve Gun Rights, And Eliminate Federal Debt. “Issues: Has a ‘four pillars’ approach: Repeal and replace the Affordable Care Act, reduce tax burden on small businesses, defend gun rights and create fiscal policy to deal with federal debt.” [Duluth News-Tribune, 4/20/14] Supported Term Limits Supported Term Limits. “Mills said he is not a career politician and favors term limits, similar to that of the president, for all federal elected offices.” [The Journal, 9/03/14] 2015: Said He Was Open To Running Again, Claimed He “Didn’t Lose … So Much As Rick Nolan Rode Al Franken's Coattails” July 2015: Said He Was Open To Running Again, Claimed He “Didn’t Lose … So Much As Rick Nolan Rode Al Franken's Coattails.” “When asked about a possible future congressional bid, Fleet Farm executive and 2014 nominee Stewart Mills (R) said, ‘I'm definitely keeping my options open.’ He added that he didn't perform poorly in 2014, all things considered. ‘Really, I didn’t lose that election so much as Rick Nolan rode Al Franken's coattails,’ he said. ( Duluth News Tribune ) [The Hotline, 7/01/15] Said The “Ground Game” On His 2016 Campaign Would Be “Greatly Advanced.” “On what he’ll do differently this time around: ‘Rather than doing cable in Minneapolis, we’re definitely going to be up on broadcast and our ground game will be greatly advanced.’” [Politico, 9/23/14] Planned To Run Ads In The Expensive Minneapolis Market And Was Willing To Self-Finance That Effort; Gave His Own Campaign $400,000 In 2014. “On his willingness to self-fund his campaign, after putting in $400,000 of his own money last year: ‘I don’t have that bracket set up yet, of a maximum 133 or minimum. … I’m going to devote the time and resources necessary to fundraising, but at the end of the day, I’m not going to ask my donors to do anything I’m not prepared to do myself. We’re planning on doing expensive television in Minneapolis market, so if I have to write myself a check or checks to make that happen, then I’ll do it.’” [Politico, 9/23/14] Took Issue With 2014 Campaign Ads Said He Was Keeping His Options Open To Another Run. “Stewart Mills has no ‘harsh feelings’ about the unrelenting campaign attack ads that mocked his personal appearance and portrayed in a harsh way his family's business success and wealth that were earned through hard work. But the 42-year-old 8th District Republican unsuccessful challenger to Democratic U.S. Rep. Rick Nolan is not about to write off another journey into the modern-day political world where nasty personal attacks are fair game. ‘At this time I can't make a decision on whether I will run again. All I can say is I intend to keep my options open," Mills said in an email conversation with the Mesabi Daily News. Mills lost by only 3,732 out of 254,446 votes cast -- 48.51 percent to 47.11 percent. It was his first try at elective office. However, name identification was not a big problem for the first-time candidate. He is a third-generation vice president of the Midwest Mills Fleet Farm retail chain, which is known for its extensive outdoors merchandise.” [Mesabi Daily News, 11/22/14] Said He Went Back To Work Immediately After Losing The Election. “Mills, a strong champion of the private sector, took a good-natured post-election jab at Democratic Party candidates. ‘I saw in a recent article that you attempted to contact the campaign, but got no response. As the old saying goes ... a Democrat loses an election and he is out of a job, a Republican loses an election and he goes back to work. I went right back to work after the election and that is where you will find me,’ he wrote in an email.” [Mesabi Daily News, 11/22/14] Said It Was “A Bunch Of Hooey” That Nolan Was Frustrated About The Ads Attacking Him. “Mills had taken a leave of absence from his Mills Fleet Farm position to run for Congress. Mills, although saying he holds no grudges about the personal attacks, said Nolan was being ‘disingenuous’ when he claimed the third party ads from the Democratic Congressional Campaign Committee were too mean-spirited. But the congressman claimed in media interviews, including one with the MDN, that he could not tell a third-party group to pull the ads. ‘It would be against campaign law,’ he said. ‘When Congressman Nolan says he strongly disliked the third party ads and was frustrated that he didn't have the ability to pull them down, that is a bunch of hooey,’ Mills said.” [Mesabi Daily News, 11/22/14] Claimed He Had No “Harsh Feelings” About The 2014 Campaign But That Nolan’s “Revisionism” About The Campaign Was “Provably False.” “‘I don't have ‘harsh feelings’ about anything that happened during the campaign. I knew going into this was going to be a tough race, and the more we talked about issues, the more both Congressman Nolan and the outside groups were going to engage in personal attacks. ‘I had full knowledge going into it ... and thick skin. However, Congressman Nolan's revisionism (is) provably false,’ Mills said.” [Mesabi Daily News, 11/22/14] Said He Was Frustrated That Ads Went After His Personal Appearance And His Family’s Success. “The ads were viewed by political friends of Mills as ridiculous, offensive and personally nasty. ‘They're just so absolutely not grounded in any sense of reality. They're going after a person's appearance and also 134 success ... and isn't success the American Dream,’ Mills said during an interview during the campaign.” [Mesabi Daily News, 11/15/14] July 2015: Cut His Signature Long Hair After What He Described As A July 4th “Grilling Incident” July 2015: Cut His Signature Long Hair After What He Described As A July 4th “Grilling Incident.” “Former Eighth District Congressional candidate Stewart Mills III is sporting a new short haircut after his long locks were singed at a barbecue on July 4th. A picture on Mills’ Twitter account showed the short cut. Mills tweeted, ‘Lost some hair, & a lot of pride, in a July 4 grilling ‘incident.’ Might be time for a new look. #StillHaveEyebrows.’ In another tweet he says, ‘The new look after my July 4th Bar-B-Q singeing. The haircut fixed a lot; luckily my eyelashes aren't as noticeable.’” [Star Tribune, 7/09/15] Said He Was Trying To Light His Father’s Gas Grill When His Hair Was Burnt; Planned To Keep His Hair Short. “In a phone interview, the Republican from the Brainerd area said he tried to light his father's gas grill ‘once, twice and three times ... [and] when it went, it went.’ Mills said he's certainly not the first backyard chef to get a hot blast while igniting a gas grill, but added, ‘I suppose having these long locks singed was more noticeable.’… If he does hit the campaign trail again, Mills said he plans to keep his shorter cut. He called the fuss over his hair ‘much ado about nothing,’ but did admit he has gotten a lot of positive attention from the change. ‘It is comfortable and easier to maintain,’ he said.” [Star Tribune, 7/09/15] Said He Took The Fire As “A Sign From God” That He Should Cut His Hair. “On his newly shorn hair: ‘I was in a hurry on the Fourth of July, I had pretty hungry guests and I fired up the gas grill and got a hot flash. … My hair got singed, and I took that as a sign from God.’” [Politico, 9/23/15] Mills: “My Wife Loves Romance Novels, And She Loved The Fact That I Looked Like Fabio”; She Did Not Want Him To Get A Haircut. “Mills is sporting a new look too, having cut his famously long hair after a summer grilling accident. His hair was once the target of millions of dollars in negative ads from outside groups. ‘My wife loves romance novels, and she loved the fact that I looked like Fabio,’ he said, ‘And she was the last person in the world who wanted me to get my hair cut. But finally I had this Fourth of July grilling incident, where I got a hot flash from a gas grill, and it took that for me to convince my wife that it was time for me to get a haircut.’” [CBS Minnesota, 10/13/15] 2016 Congressional Campaign October 2015: Announced He Was Running Again; Said He Was Going To Finish What He Started October 2015: Announced That He Was Running Again; Said He Was Going To Finish What He Started. “Minnesota businessman Stewart Mills announced his second challenge to 8th District Democratic Rep. Rick Nolan Tuesday morning. ‘In 2014, I decided it was time to stop talking about the problems facing our country and start doing something to solve them,’ Mills said in a statement. ‘I intend to finish what I started, and look forward to working for the people of the 8th District.’ Mills lost to Nolan by less than 2 points in 2014. He has been mulling a rematch for months and formed an exploratory 135 committee last month. Nolan has been expecting the Republican to challenge him again, he told CQ Roll Call last month.” [Roll Call, 10/13/15] Mills Claimed That “Obamacare Continues To Hurt Families” And Minnesota’s “Mining Industries Are Suffering.” “‘I’m thrilled to continue the fight to take the commonsense values of 8th District voters to Washington. Every day we see that the status quo is not sustainable and new ideas are badly needed. Obamacare continues to hurt working class families; too many folks in the 8th District struggle with unemployment, and our mining industries are suffering. In Congress, I will fight fiercely for our priorities and answer only to 8th District voters,’ said Mills. ‘In 2014, I decided it was time to stop talking about the problems facing our country and start doing something to solve them. I intend to finish what I started, and look forward to working for the people of the 8th District.’” [Mills for Congress, accessed 10/13/15] Called Himself A “Job Creator” And “Avid Hunter.” “Stewart Mills is a job creator, avid hunter, and the sixth generation of his family to live in Minnesota’s 8th congressional district. As a father, husband, and business owner, he understands that Minnesota cannot continue with the current representation in Washington DC.” [Mills for Congress, accessed 10/13/15] Campaign Website Featured A Picture Of Him Chopping Wood In The Background Of The Home Page. [Mills for Congress, accessed 10/13/15] [Mills for Congress, accessed 10/13/15] February 2016: Minnesota Republican Party Endorsed Him February 2016: Minnesota Republican Party Endorsed Him. “Mills himself was endorsed by 8th Congressional District Republican Party Saturday. ‘With a unanimous grassroots-led vote, the unwavering support for Stewart Mills' campaign was tremendous,’ a Mills campaign release said.” [Brainerd Dispatch, 2/08/16] 136 Declined To Indicate Who He Supported In The 2016 Republican Presidential Primary But Said There Was “A Wide Range Of Very Qualified And Exceptional Candidates” Declined To Indicate Who He Supported In The Republican Presidential Primary But Said There Was “A Wide Range Of Very Qualified And Exceptional Candidates.” “Both candidates in Minnesota's 8th District were reticent Monday when asked about their preferred candidate in the presidential primary. Republican Stewart Mills said in a written statement he didn't have a primary pick. ‘I feel the Republican Party has a wide range of very qualified and exceptional candidates, which is a striking difference from the Democratic Party,’ he stated. ‘The candidates are still making their case to the voters on their policy positions and vision of how to solve the issues of a very stagnant economy and disastrous foreign policy. Regardless of who the eventually nominee for either party will be, I will do my part as a congressman and work across party lines to solve the issues we have within the 8th District and the threats we face around the world.’” [Brainerd Dispatch, 2/08/16] 137 Wrong for Minnesota Significant Findings Tea Party Express endorsed him despite his claim that he refused to accept labels and said he did not belong to any wing of the conservative movement Touted Packers loyalty Lived, owned property, paid taxes and has voted in Wisconsin Mills is an unapologetic Green Bay Packers fan and his father serves as Directors Emeritus for the publicly owned team. Mills has lived, owned property, voted in Wisconsin and even paid taxes in Wisconsin. In addition to his Wisconsin ties, Mills is more extreme than he portrays himself to be. In 2014, the Tea Party Express endorsed him despite his claim that he refused to accept labels and said he did not belong to any wing of the conservative movement. He continues to maintain his Tea Party ties and spoke at a Tea Party event in 2015. Tea Party Express Endorsed Mills, But Refused To Label Himself A Tea Partyer Tea Party Express Endorsed Mills. “Mills, a relatively young and hip, long-haired businessman, has fashioned himself as a small-government Republican. Though he touts more libertarian ideas than socially conservative ones, Mills did garner an endorsement Tuesday from the Tea Party Express.” [Star Tribune, 10/08/14] …But Said It Was Not “Entirely Accurate” To Call Him A Tea Partyer But Welcomed Tea Party Endorsement Hours Later. “In a debate early Tuesday in Duluth, GOP House candidate Stewart Mills said it wasn't accurate to portray him as aligned with the Tea Party. ‘I keep getting accused (of) being a Tea Partyer and I'm not sure that's entirely accurate,’ Mills said, when answering a question about the virtues of the Keystone oil sands pipeline in a debate with Democratic Rep. Rick Nolan and Green Party candidate Ray ‘Skip’ Sandman. A few hours later, the Tea Party Express threw its support behind Mills, saying he ‘isn't your typical politician. He is someone that understands hard work and will stop at nothing in order to fix a problem -- traits he picked up from his family's huntingcamp doctrine.’ … Mills’ camp responded Tuesday, noting, ‘We welcome the endorsements of all political persuasions, from the National Rifle Association to the Farm Bureau, from the National Federation of Independent Businesses to the Fraternal Order of Police.’” [Star Tribune, 10/07/14] 138 Refused To Accept Labels, Said He Did Not Belong To Any Wing Of The Conservative Movement. “You know I’ve never had really any involvement with the tea party up until running for office. And I’ve met with them and the one thing that impresses me about them is that they care more about your rights and your liberties than anything they would want for themselves from the government … I am not gonna define myself or accept any labels. But I consider myself a conservative—and that is the business community, the second amendment rights community, the Republicans, the constitutionalists, the Libertarians, and that also includes the tea party. So I’m not necessarily in any wing of the conservative movement.” [KBJR, 4/19/14] October 2015: Spoke At A Tea Party Event. [Minnesota Tea Party Alliance, 10/05/15] Touted Packer Loyalty; Said He Never Tried To Hide His Love Of The Packers, And That His Father Had Ties To The Team In June 2013, after pictures of Mills in a Packers jersey at a Minnesota Vikings game were published, Mills said, “Oh! They caught me!” [Hot Dish Politics, 6/27/13] From Mills’ statement after an article revealing his Packers loyalty: “Oh! They caught me! Although I never tried to hide it, it would be tough to…My father became a Packer fan as a kid, a long, long time before the Vikings existed. In 1941 his/our cousin Gene Bierhaus, University of Minnesota All American, was drafted by the Packers to be their Quarterback; that kind of cemented it. Gene never got to play professional football for the Packers though. Instead Gene served in the US Marines during World War II. The extensive wounds our cousin sustained on the battlefield of Iwo Jima prohibited a career in professional sports after the Marines. My father is also good friends with Bud Grant and went to school with him at the University of Minnesota, since and after the time of Bud being the coach of the Vikings we, as a family, have had to take turns as to who we root for. (Seriously) Half the family for the Vikes, and the other for the Packers. I have continued that tradition in my own household, my wife and two step-sons are rabid Vikings fans. I suspect my daughter is going to be a Vikings fan, but my son loves the Green and Gold. My stepdaughter could care less,” Mills said. [Hot Dish Politics, 6/27/13] 139 [Heather Mills Facebook, 1/01/09] [Heather Mills Facebook, 1/01/09] NOTE: The original photos were later taken down from Mills’ wife Facebook page. Mills’ Father Served on Packers’ Directors Emeritus 140 In August 2013, Mills’ father served on the Packers’ Directors Emeritus. Below is a list of the Directors Emeritus from the Packers’ website: [Packers.com, accessed 8/22/13] Headline: On Eve of Big Game, DFL Goes Hard After Stewart Mills for Being a Packers Fan [City Pages, 10/1/14] Headline: Vikings-Packers Game Big Deal To Minn. Political Campaigns [CBS Minnesota, 10/2/14] Unabashed Packers Fan; Packers Drafted A Family Cousin In The 1940’s. “Mills makes no excuses for being a Green Bay Packers fan. A large part of the family business has roots in Wisconsin, and his father and uncle became Packers fans before there was an NFL team in Minnesota. It didn't hurt that the Packers once drafted, in the 1940s, a Mills family cousin. Stewart Mills III grew up in Appleton, Wis., and Brainerd as a child, shuttling with his father between centers of the family business. He said his father knows legendary Vikings coach Bud Grant, further mixing allegiances. At home, his wife and kids are solid Vikings fans, he said. ‘We've had some interesting afternoons on Sunday.’” [Duluth News-Tribune, 4/20/14] Voted in Wisconsin Elections In 1992, 2000, 2002 and 2004, Mills voted in elections in Wisconsin. Below is the table outlining his voter history in Wisconsin: 141 [Wisconsin Government Accountability Board, accessed 7/18/13] October 2000: Was Registered to Vote in Wisconsin In October 2000, Mills registered to vote in Wisconsin. [Wisconsin Government Accountability Board, accessed 7/18/13] Note: As of August 2013, there is no evidence of Mills voting in the 1994, 1996, and 1998 elections. [Wisconsin Government Accountability Board, accessed 7/18/13; Minnesota Secretary of State, accessed 7/26/13; Florida Division of Elections, accessed 7/26/13] Immature Behavior Significant Findings Wife posted pictures of Mills drinking beer from a funnel Pictured licking a woman who was not his wife Received underage drinking violation at 19 years old Received multiple speeding tickets Has a history of posting odd photos on social media, including ones where he is shirtless or displaying his muscles Mills has a long record of immature behavior – starting at 19 years old. In 1991, he received an underage drinking violation from the City of Appleton (Wisconsin) Police Department. In February 2009, his wife posted photos of Mills drinking out a beer funnel. He was also in a picture licking the lips of a woman other than his wife. In addition, he has received multiple speeding tickets. 142 Mills has toned down the inappropriate nature of his social media posts but continues to post odd, self-aggrandizing photos including ones where he is shirtless and hunting with his children. Wife Posted Photos of Mills Drinking Out of Beer Funnel In February 2009, Mills’ wife posted photos of Mills drinking out of a beer funnel. Below are pictures taken from her Facebook page: [Heather Mills Facebook, posted 2/15/09] 143 [Heather Mills Facebook, posted 2/15/09] NOTE: As of August 2013, the photos have been removed from Facebook. Headline: Stewart Mills, GOP congressional candidate, hits a beer bong [PHOTOS] [City Pages, 11/22/13] Described as “Image-Conscious” From Politico, “He is also image-conscious, changing clothes at least three times over the course of a recent day and evening.” [Politico, 6/23/14] Featured In Photo Licking Woman That Isn’t Than His Wife In December 2008, Mills’ stepdaughter posted a picture of Mills licking a woman’s lips. This woman was not his wife. Below is the picture taken from her Facebook page: 144 [Whitney Murraye Thomsen Facebook, posted 12/28/08] Note: See “Inappropriate Photos of Heather Mills” for more photos. 1991: Received Underage Drinking Violation As 19 Year-Old In July 1991, when Mills was 19 years old, he received an underage drinking violation from the Appleton City Police Department. [Appleton Police Department Summary Report, 8/20/13] From the Appleton Police Department summary report: 145 [Appleton Police Department Summary Report, 8/20/13] NOTE: Because the Cities of Appleton and Grand Chute are only required to keep reports for seven years, none of the above reports were available. Representative from Appleton Police Department Confirmed Underage Drinking Citation In September 2013, a representative from the Appleton Police Department confirmed that the drinking violation Mills received as a 19 year old in 1991 was an underage drinking citation. The email sent by Dana Schmidt read, “In researching the age of the citation, it appears that it is an underage drinking citation.” [Appleton Police Department, 9/10/13] Received Multiple Speeding Tickets In 1989 and 1995, Mills received two speeding tickets from the Appleton City Police Department. [Appleton Police Department Summary Report, 8/20/13] Featured in Photo Holding Beer In April 2010, April Wilkus, a friend of Mills and his wife, posted a photo of Mills holding a beer bottle. [April Wilkus Facebook, posted 4/26/10] 146 [April Wilkus Facebook, posted 4/26/10] November 2015: Engaged In Twitter Exchange With DCCC Staffer Over News Article News Article Alleged That New Mills Fleet Farm Store In Hermantown Received Public Subsidies But Were Not Required To Hire Percentage Of Union Workers Thus Allowing Them To Pay Below Prevailing Wage. “Despite its $900,000 gift, Hermantown officials green-lighted the project without requiring that a percentage of the work go to union tradespeople. As a result, Fleet Farm can pay workers well below prevailing wages.” [City Pages, 11/18/15] Headline: “Stewart Mills Gets $1.5 Million In Welfare; His Workers Aren't So Lucky.” [City Pages, 11/18/15] 147 Was Upset About Article’s Portrayal Of Mills Fleet Farm And Accused DCCC Of “Peddl[ing] Lies.” [Twitter, 11/19/15] 148 [Twitter, 11/19/15 & 12/15/15] Stated In A Facebook Post That He Was Not “Anti-Union” And That Some Of The Project’s Funds Had Gone To Non-Union Contractors. “Normally I don’t respond directly to comments on Facebook as the back and forth can take on a life of its own, but I feel there may be some folks that have bought into the Democrats deceptive narrative of me and have the wrong idea about what I stand for. First of all, Right to Work is a state issue, and I am running for federal office. As someone who respects the Constitution and the Bill of Rights, I believe that the 10th Amendment reserves such decisions the individual states themselves, and I will fight to keep the Federal Government out of state affairs. Secondly, whoever says Fleet Farm’s Hermantown project is non-union is deliberately misleading you. The truth is the majority of the contract dollars were awarded to union shops. The Mills Family has always run an open bidding process, open to both union and non-union shops. Some 149 of the project dollars (a minority) were awarded to non-union contractors. We have not tilted the playing field either way. Our general project manager goes through the bids and selects the ones that can get the job done right, at the right time, at the right price. Union firms, as a percentage of project cost, were over represented in that selection. If anyone tries to tell you I am anti-union they are liars, I believe strongly in the open bidding process, and American Free Enterprise that has created and sustained both union and non-union jobs. –Stewart Mills” [Facebook, 12/02/15] Other Odd Social Media Photos [Facebook, 7/9/15] 150 [Twitter, 10/11/15] 151 Abortion and Family Planning Issues Significant Findings Opposed abortion rights Said he and his wife were “proud to support” a local crisis pregnancy center, which helped “to provide resources to those experiencing unexpected pregnancies”—crisis pregnancy centers known for providing misleading information about abortion to women Opposed federal funding for Planned Parenthood Said Planned Parenthood’s “core mission” was performing abortions Accused Planned Parenthood of using “accounting gimmicks” and called on them to stop performing abortions Said if Planned Parenthood was serious about providing women’s health services then they would stop abortion services In June 2013, Mills said he opposed abortion rights. Then, in 2015, in the wake of videos purporting to show Planned Parenthood staff members selling fetal tissue for profit, Mills said he favored ending federal funding for the group. He said he was staunchly pro-life and “very, very strongly against federal funding … going to any abortion provider.” Mills also claimed that Planned Parenthood’s “core mission” was performing abortions and accused them of using “accounting gimmicks” to use federal funds for abortions. He added that if the organization was serious about providing women’s health services then they would stop offering abortion services. Said He Was Pro-Life And Was “Very, Very Strongly Against Federal Funding … Going To Any Abortion Provider” Said He Was Pro-Life And Was “Very, Very Strongly Against Federal Funding … Going To Any Abortion Provider.” “Mills said his social issue is being pro-life, although he added it wasn't one of his main motivators for running. ‘I'm very, very strongly against federal funding — our tax dollars — going to any abortion provider,’ he said.” [Forum News Service, 10/18/15] Criticized Nolan For Receiving A Donation From Planned Parenthood And For Supporting Continued Funding For The Group. “For Mills, this involves channeling uproar 152 sparked with recently released anti-abortion videos that purport to show Planned Parenthood's sale of fetal tissue for research. ‘Rick Nolan not only received money from Planned Parenthood, Rick Nolan still wants to send money to Planned Parenthood,’ Mills said.” [Forum News Service, 10/18/15] Said Planned Parenthood Was Using “A Shell Game” And Called On Them To Stop Providing Abortions Said Planned Parenthood Was Using “A Shell Game” And Called On Them To Stop Providing Abortions. “Mills acknowledged there's already a law prohibiting federal funding from going directly to abortion, ‘but it's a shell game’ he said.” [Forum News Service, 10/18/15] Mills: “If Planned Parenthood Really Is Serious About Providing Women's Services, They Should, In An Instant, Stop Providing Abortions” Mills: “If Planned Parenthood Really Is Serious About Providing Women's Services, They Should, In An Instant, Stop Providing Abortions.” “‘Let's look at this way,’ Mills said, ‘Planned Parenthood says that only 3 percent of their services are abortion-related. Well, you can't fund one arm that then supports the other. If Planned Parenthood really is serious about providing women's services, they should, in an instant, stop providing abortions.’” [Forum News Service, 10/18/15] Said The “Core Mission” Of Planned Parenthood Was To Provide Abortions And Accused Them Of Using “Accounting Gimmicks” To Conceal Use Of Federal Funds For Abortion Services Said The “Core Mission” Of Planned Parenthood Was To Provide Abortions And Accused Them Of Using “Accounting Gimmicks” To Conceal Use Of Federal Funds For Abortion Services. “The ‘core mission’ of Planned Parenthood is still abortion, Mills said. ‘It's accounting gimmicks and it's semantics, but at the end of the day, through Planned Parenthood, our tax dollars are going to fund abortions, and I am against that,’ he said.” [Forum News Service, 10/18/15] Opposed Abortion Rights In June 2013, Mills opposed abortion rights. [Hot Dish Politics, 6/26/13] Opposed Abortion Rights. “Mills has also contrasted his record with Nolan on supporting gun rights (Nolan received an “F” rating from the NRA) and opposing abortion to appeal to socially conservative Democrats who make up a significant share of the electorate.” [National Journal, 9/19/14] Said He And His Wife Were “Proud To Support” The Lakes Area Pregnancy Support Center, A Local Crisis Pregnancy Center And “Provide Resources To Those Experiencing Unexpected Pregnancies” To “Protect The Most Vulnerable Among Us” Said He And His Wife Were “Proud To Support” The Lakes Area Pregnancy Support Center, A Local Crisis Pregnancy Center And “Provide Resources To Those Experiencing Unexpected 153 Pregnancies” To “Protect The Most Vulnerable Among Us.” “The Lakes Area Pregnancy Support Center is such an important part of our community. My wife Heather, and I are proud to support them and help provide resources to those experiencing unexpected pregnancies. We must protect the most vulnerable among us.” [Facebook, 4/15/14] Lakes Area Pregnancy Support Center Is A Crisis Pregnancy Center. “Women and men are making difficult choices every day. We can help them get the facts to make an informed decision about their unplanned pregnancy.” [Lake Area Pregnancy Center Facebook, accessed 10/05/14] Crisis Pregnancy Centers Known For Providing Misleading Information To Patients About Their Options For Reproductive Services. “Operators of religious pregnancy centers have sued Atty. Gen. Kamala D. Harris to block a new California law that requires such clinics to provide information about abortion and contraceptive services offered by other providers. Under the legislation, which was sponsored by Harris and abortion rights group NARAL Pro-Choice America, health clinics that offer certain pregnancy-related services have to tell patients that California has public programs that offer low-cost or free family planning options, including contraception and abortion. The clinics must provide a phone number to the patient's local county social services office. Abortion rights supporters say these religious clinics, known as crisis pregnancy centers, offer false or misleading information about abortion and reproductive health.” [Los Angeles Times, 10/13/15] 154 Budget and Economy Issues Significant Findings Said stimulus was a “sugar high” Said Washington, D.C. and St. Paul have “never created a job” Refused to support or condemn the government shutdown Did not specify how he would address the federal deficit Opposed Paul Ryan’s FY15 budget proposal because he said it did not address health care issues sufficiently Said President Obama oversaw “the worst economic recovery in US history” In 2014, Mills criticized the federal stimulus program calling it “sugar high” and a failure. The stimulus cut taxes for 95 percent of working families. Mills also claimed that Washington, D.C. and St. Paul never created a job. He also refused to say whether he would have voted for the government shutdown. Mills has never specifically outlined how he would address the federal deficit but insists that it is a pressing issue. He said he opposed Paul Ryan’s budget proposal because it did not sufficiently address health care issues and the deficit. Mills also said that President Obama had presided over “the worst economic recovery in US history.” Said The Stimulus Was A “Sugar High” In 2014, Mills referred the stimulus as a “sugar high.” “And the last round of tax, spend and borrow stimulus, which is nothing but one sugar high after another, negatively affected our part of Minnesota because had none of the benefits from it, but yet we’re the ones who are going to have to pay the bills. If we’re going to reignite our economy, we have to do it from the ground up, not from the top down. Washington DC or St. Paul does not create jobs, Main Street does. We have to create jobs from Main Street on up,” said Mills. [Northern Alliance Radio Interview, 11:41, 1/4/14] Referred the Job Stimulus Program as a Failure 155 In 2014, Mills called the job stimulus program “another failed example of Washington, D.C., trying to legislate the free market.” [Star Tribune, 1/9/14] Stimulus Cut Taxes for 95 Percent of Working Families From Politifact: “During the campaign, the independent Tax Policy Center researched how Obama's tax proposals would affect workers. It concluded 94.3 percent of workers would receive a tax cut under Obama's plan based on the tax credit to offset payroll taxes. According to the analysis, the people who wouldn't get a tax cut are those who make more than $250,000 for couples or $200,000 for a single person. Obama said he intended to raise taxes on those high earners, a promise he reiterated during the State of the Union, and that revenue would offset the stimulus tax cut. Because the stimulus act did give that broad-based tax cut to workers, we rate Obama's statement True.” [PolitiFact, 1/27/10] Said Washington, DC And St. Paul Have “Never Created A Job” In 2013, Mills said Washington, D.C. and St. Paul have “Never Created a Job.” “…St. Paul has never created a job in its entire existence and Washington D.C. has never created a job in its entire existence. We don’t have big corporations up here, it’s going to be individuals that own businesses that are taxed at the personal rate that have the ability to do it,” said Mills. [Crow Wing County GOP 2nd Amendment Rally, 16:56, 7/20/13] Refused To Support Or Condemn The Government Shutdown In 2013 Mills refused support or condemn the government shutdown. “I’m not in Washington and I’m not privy to their conversations. I can neither commend nor condemn the votes that they’ve made because I just don’t have access to the strategies or the back-end. There is such a divisive culture in Washington DC that it would have not been necessary to shut down the government if people were able to come together, put their cards on the table. When you take a look at what the Republicans were asking for, some of this, in hindsight, wasn’t unreasonable,” said Mills. [Minn Post, 11/7/13] Did Not Specify How He Would Address The Federal Deficit Did Not Specify How He Would Address The Federal Deficit. “Getting the federal budget out of the red is ‘a math problem. It's just pure math,’ Mills said. He says the U.S. will look more like Greece or Cyprus if it doesn't take measures to cut debt and debt service. How he would get that done, Mills didn't say.” [Duluth News-Tribune, 4/20/14] Opposed Paul Ryan’s FY15 Budget Proposal Opposed Paul Ryan’s FY15 Budget Proposal. “He said he doesn't support the recent budget proposed by U.S. Rep. Paul Ryan, something that surprised the Nolan camp. Mills said he can't support a budget that doesn't offer a way to fix the health care economy in line with the rest of the economy. He said 156 President Obama has refused to work with Congress, and the House and Senate need to start putting bills on his desk.” [Duluth News-Tribune, 4/20/14] Said President Obama Oversaw “The Worst Economic Recovery In US History” Said President Obama Oversaw “The Worst Economic Recovery In US History.” “He also pledged to support what he called the 8th District's Main Street economy of small- and medium-sized businesses. ‘We need to stop putting targets on those folks’ backs,’ Mills said. Mills criticized President Barack Obama for presiding over ‘the worst economic recovery in U.S. history’ and said he would champion the Polymet mining plans as well as others.” [Brainerd Dispatch, 4/12/14] 157 Environmental Issues Significant Findings Attacked Congressman Nolan for not opposing EPA regulations of water Supported oil pipelines and expanded mining on the Iron Range Criticized Nolan’s vote against the Keystone XL pipeline Supported PolyMet proposal to open a new copper-nickel mine Refused to take a position on climate change, said countries such as China, India, and Russia needed to “clean up their own act” Said he was “open-minded to both sides of the debate” but questioned whether the climate was actually changing and if human activity was causing climate change Said a carbon tax would “absolutely kill mining on the Iron Range” In 2014, Mills criticized Congressman Nolan for not opposing EPA Regulations of water. Mills also supported oil pipelines such as Keystone XL and Sandpiper as well a proposal to open a copper-nickel mine that could potentially damage water quality and protected areas. Mills refused to take a position on climate change and insisted instead that countries such as China, India, and Russia needed to “clean up their own act.” He said he was “open-minded to both sides of the debate” but questioned whether the climate was actually changing and if human activity was causing climate change. Mills also supported a proposal to open a new copper-nickel mine which had the potential to damage water quality and a protected waterway in northeast Minnesota. The project has yet to gain state approval. Attacked Congressman Nolan For Not Opposing EPA Regulations Of Water In September 2014, Mills attacked Nolan for supporting too many regulations, particularly for his opposition to a bill which prevented the EPA from redefining which waters it can regulate under the Clean Water Act. 158 “Rick Nolan has cast some very bad votes in direct opposition to what his district needs. He’s voted for the carbon tax, and he’s also voted to have the EPA regulate our family farms to the point that it would be devastating to them,” said Mills. [MPR News, 9/13/14] Opposed EPA Water Regulations In September 2014, Mills opposed EPA regulations, specifically the proposed “Waters of the US” rule or any sort of restrictions on carbon. “We've spent a lot of time with farmers and ranchers in the 8th District, and these are businesses. These are farms that have been in their family for 5, 6 generations. And, certainly, they don't need people from Washington D.C. in white tieback suites wandering across their farms, and their ranches, to tell them how to be good stewards of their land,” said Mills. [Northland News Center, 9/22/14] Supported Oil Pipelines And Metal Mining On The Iron Range Supported Oil Pipelines And Metal Mining On The Iron Range. “In the 8th District, Democratic incumbent Rick Nolan held a slim lead most of Tuesday night over Republican challenger Stewart Mills, before finally clinching the seat early Wednesday morning. The Democratic Congressional Campaign Committee bankrolled a series of ads against Mills, mocking his shoulder-length hair and portraying him as a wealthy businessman out to protect his own pocketbook over the interests of everyday Minnesotans. Mills, 42, of Nisswa, campaigned on a pro-gun rights and anti-Affordable Care Act platform. The vice president of Mills Fleet Farm, his family's business, he supports oil pipelines across the region and precious-metals mining on the Iron Range.” [St. Paul Pioneer Press, 11/04/14] Touted His Blue Collar Roots; Said The Mining And Timber Industries Were In His Blood And That Energy Policies Should Support These Industries Touted His Blue Collar Roots; Said The Mining And Timber Industries Were In His Blood And That Energy Policies Should Support These Industries. “‘Job creation on main street in mining and the timber industry is in my blood,’ he said. ‘We have to look toward making sure we have an economy that can foster that growth, but also not limit our timber industry from fully reaching its potential, but also making sure our mining industry is supported, but not handicapped by unnecessary hurdles and regulations.’ An energy policy that can facilitate a healthy and robust economy is crucial to the mining and timber industries, he said.” [International Falls Journal, 9/02/14] Said He Had “Iron Ore” In His Blood Because His Great-Grandfather Worked In An Iron Mine. “Mills is vice president of Mills Fleet Farm, a family-owned company with more than 30 retail stores in Minnesota, Wisconsin and Iowa. He cited his family's longtime work in the timber industry as common ground with the Iron Range's miners. He said his great-grandfather even mined iron on the southern edge of the Cuyuna Range in Crow Wing County. ‘I've got iron ore in my blood,’ Mills said, before explaining that he believes he has an earnest connection with the Iron Range.”[Duluth News Tribune, 8/29/14] Said His Great-Great-Grandfather Worked In Timber. “‘My great-great-grandfather came up from the Cities in the 1870s to work in the timber industry,’ Mills said at a café across from 159 his campaign office in Brainerd. ‘Those folks came up to work in the mining industry. The fact they all came here in the 1870s through 1900 to work in the natural resource industries; there's a commonality. So it's really easy to make connections with those people.’” [Duluth News Tribune, 8/29/14] Said His Family Sometimes Had “Callouses” On Their Hands. “And Stewart Mills, the Republican challenger, refrained from using a label. Instead, the wealthy heir to the successful Mills Fleet Farm stores strove for commonality with voters by saying of his family, ‘Sometimes we have callouses on our hands.’” [Duluth News Tribune, 10/08/14] Criticized Nolan’s Vote Against The Keystone XL Pipeline; Supported Plan To Open PolyMet’s Copper-Nickel Mine In Northeast Minnesota Criticized Nolan’s Vote Against The Keystone XL Pipeline; Supported Plan To Open CopperNickel Mine In Northeast Minnesota. “Mills criticized Nolan for votes he made against funding for Veterans Affairs and against the Keystone XL pipeline project. He also accused Nolan of ‘waffling’ on Polymet's plans for a copper-nickel mining operation in northeastern Minnesota.” [St. Paul Pioneer Press, 4/12/14] 2014: Said PolyMet’s Plan To Open A Copper-Nickel Mine Was “Amazingly Well-Thought Out” During Debate. [YouTube, 10/07/14] Mine Was Expected To Create 360 Permanent Jobs. “PolyMet projects that the copper-nickel mine will create 360 permanent local jobs, and hundreds more indirectly. The company estimates it will produce $80 million annually in federal, state and local taxes.” [Star Tribune, 6/24/15] Refused To Take A Position On Climate Change, Said Other Countries Such As China, India, And Russia Should “Clean Up Their Own Act” Refused To Take A Position On Climate Change, Said Other Countries Such As China, India, And Russia Should “Clean Up Their Own Act.” “Asked about his position on climate change, Mills says it's important to examine what other countries, like China, India and Russia, are doing to address the issue. ‘Rather than us crippling our economy, we need other countries to clean up their own act,’ he said.” [Greenwire, 9/29/14] Said He Was “Open-Minded To Both Sides Of The Debate” But Questioned Whether The Climate Was Actually Changing And If Human Activity Was Causing Climate Change Said He Was “Open-Minded To Both Sides Of The Debate” But Questioned Whether The Climate Was Actually Changing And If Human Activity Was Causing Climate Change. “In a November 2013 interview with the news website MinnPost, Mills offered a similar response while noting he is ‘openminded to both sides of the debate.’ ‘Certainly we don't want to do anything that's going to jeopardize the future of our planet, but at the same time we have to be realistic that: Is the climate changing? Is man causing the climate to change?’ Mills said in that interview. [Greenwire, 9/29/14] 160 Supported The Sandpiper Oil Pipeline Supported The Sandpiper Oil Pipeline. “Mills compared Sandpiper to the proposed Keystone XL pipeline, which is not planned to run through Minnesota but is also highly controversial. ‘The Sandpiper Pipeline, like Keystone XL, is a much needed project that will not only have immediate economic benefits for our part of Minnesota, but will also create jobs, lower energy costs, strengthen our state's steel industry, and streamline a highly inefficient oil transportation process,’ Mills said in the statement.” [Bemidji Pioneer, 8/10/14] October 2015: Minnesota Supreme Court Was Expected To Review At A Ruling Overturning Land Permits For Sandpiper Pipeline. “Attorneys for both Enbridge Energy and state regulators on Wednesday asked the Minnesota Supreme Court to take up review of a ruling that overturned a permit for the Sandpiper crude oil pipeline. In September, the Minnesota Court of Appeals overturned the Minnesota Public Utilities Commission's approval of a certificate of need for the Sandpiper project because the PUC did so without an Environmental Impact Statement, a specific kind of environmental study. In court documents dated Wednesday, Enbridge argued the Court of Appeals usurped the authority of the PUC and the Environmental Quality Board, as well as incorrectly applied the Minnesota Environmental Policy Act. ‘The Court of Appeals decision creates uncertainty for this and future projects because the Court improperly substituted its own judgment for that of the regulators, and in doing so, incorrectly interpreted and applied MEPA,’ Enbridge's petition for review read. In the PUC's own petition to the Supreme Court, also dated Wednesday, the commission claimed the Court of Appeals cast aside a ‘longstanding process set forth in Minnesota law and ordered a duplicative and premature second layer of environmental review even before the need for the pipeline is determined.’” [Brainerd Dispatch, 10/16/15] Said A Carbon Tax Would “Absolutely Kill Mining On The Iron Range” Said A Carbon Tax Would “Absolutely Kill Mining On The Iron Range.” “He's focused largely on wooing voters outside his home base, like chipping support away from Nolan on the Iron Range. He's criticized Nolan's vote for a budget bill that included a carbon tax, which Mills said ‘would absolutely kill mining on the Iron Range.’” [Associated Press, 9/27/14] 161 Foreign Policy Issues Significant Findings Refused to respond to direct question about his position on the Trans-Pacific Partnership, called TPP “a non-issue” When asked if he did not want to talk about TPP during the campaign, he said “I don't want to talk about issues that have nothing to do with moving this district forward” Questioned whether Rep. Nolan had read the entire TPP deal and said he was undecided on whether or not to support it Said 8th District residents “aren’t concerned” with foreign policy Argued that the US should play “some role” in the Middle East and had to lead in the fight against the Islamic State Said an increased number of US troops in Iraq would have prevented the Islamic State from gaining more power Opposed Iranian nuclear deal; said the deal would allow Iran to develop a nuclear weapon Claimed the deal would lead to an arms race and nuclear proliferation in the Middle East Mills sent out a press release stating that Rep. Nolan “voted to fund terrorist organizations” because he supported the Iranian nuclear deal, later clarified that he believed Nolan was “wrong” and “short sighted” for supporting the deal In February 2016, Mills refused to respond to a direct question about his position on the Trans-Pacific Partnership during a TV interview. He said TPP was a “non-issue” and “dead on arrival” because it would not be brought to a vote. When asked directly if he simply did not want to discuss TPP during the campaign, he responded by stating that he did not want to talk about issues that had “nothing to do with moving … [the] district forward.” Mills also insisted that KKR’s stance on TPP would not impact his 162 position on the issue. In November 2015, he questioned whether Rep. Nolan had read the entire deal and said he was undecided on the issue. In 2014, Mills said 8th District residents were not “concerned” with foreign policy. Mills did support President Obama’s plan to strike ISIS. He believed that the US should play “some role” in the Middle East and lead in the fight against the Islamic state. Mills also argued that an increased number of US troops in Iraq would have prevented the Islamic state from gaining more power. Mills opposed the Iranian nuclear deal, saying that it would inevitably allow Iran to obtain a nuclear weapon. He also claimed that the deal would lead to an arms race and nuclear proliferation in the Middle East. February 2016: Refused To Respond To Direct Question About His Position On The Trans-Pacific Partnership; When Asked If He Did Not Want To Talk About TPP During The Campaign, He Said “I Don't Want To Talk About Issues That Have Nothing To Do With Moving This District Forward” February 2016: Refused To Respond To Direct Question About His Position On TPP; When Asked If He Did Not Want To Talk About TPP During The Campaign, He Said “I Don't Want To Talk About Issues That Have Nothing To Do With Moving This District Forward.” “‘Do you just not want to talk about the TPP in this campaign?’ asked Minock. ‘Well, I don't want to talk about issues that have nothing to do with moving this district forward,’ said Mills.” [Northland News Center, 2/07/16] Called TPP A “Non-Issue” And Said It Was “Was Dead On Arrival” Because It Would Not Get A Vote. “KDLH's Nick Minock sat down with Mills to get answers. ‘They (U.S. Senators) are not going to vote on it. So, it's a non issue. The TPP is dead on arrival,’ said Mills.” [Northland News Center, 2/07/16] Said He Was “Hesitant To Give … A Direct Answer” On TPP. “‘KKR - the company that bought Mills Fleet Farm - I was looking on their website and they support the Trans Pacific Partnership. Does that impact your view of the TPP at all?’ asked Minock. ‘I have looked, first of all, I am making up my own mind and in Washington D.C., I will read the agreements and the bills that I vote on and that is why I'm hesitant to give you a direct answer,’ said Mills.” [Northland News Center, 2/07/16] Said KKR’s Support Of TPP Would Not Affect His Position On The Issue. “‘So are you saying KKR or Ford Motor Company - their decision on policy isn't going to impact your decision on this issue?’ asked Minock. ‘Absolutely not. It will not impact my position on this issue,’ said Mills. Congressman Rick Nolan is against the Trans Pacific Partnership. Nolan is concerned that the TPP would cost the United States jobs, just like NAFTA did.” [Northland News Center, 2/07/16] Faced Pressure To Provide An Answer On His Specific Position On TPP. “The Trans Pacific Partnership continues to be one of the biggest issues in the Stewart Mills Rick Nolan rematch. On Saturday, the Republican Party endorsed Mills in McGregor. Now that Mills has secured the 163 GOP's backing, he is facing more questions on where he stands on the TPP. It's a trade agreement that has many on the Iron Range concerned for their jobs.” [Northland News Center, 2/07/16] November 2015: Questioned Whether Rep. Nolan Had Read The Text Of The TPP Deal “In Its Entirety,” Said He Was Undecided On Whether Or Not To Support It November 2015: Questioned Whether Rep. Nolan Had Read The Text Of The TPP Deal “In Its Entirety,” Said He Was Undecided On Whether Or Not To Support It. “Fleet Farms executive Stewart Mills (R) said he still hasn’t finished reading the Trans-Pacific Partnership’s text and hasn’t decided whether he supports it or not. He also questioned whether Rep. Rick Nolan (D) has actually read it in its entirety. ‘I don’t believe he has fully read every word of that bill,’ Mills said.” [National Journal, 11/30/15] Said 8th District Residents “Aren’t Concerned” With Foreign Policy In September 2014, Mills declined to take a position on intervention in Iraq and Syria against ISIS after Nolan came out against intervention, saying that foreign policy wasn’t a priority to residents of the eighth district. “The people within the 8th District aren’t necessarily concerned with foreign policy first,” said Mills to the Duluth News Tribune. [Northland News Center, 9/07/14] Supported President Obama’s Plan To Strike ISIS In September 2014, Mills supported President Obama’s planned strikes against ISIS militants. Mills emphasized that concrete actions needed to be taken beyond simply humanitarian aid, which Mills characterized as “naïve at best.” [StewartMills.com, 9/10/14] …but Campaign Criticized Nolan for Vote Against Arming and Training Syrian Rebels In September 2014, Mills criticized Nolan for his vote against training and arming Syrian rebels. “Rick Nolan’s vote tonight against the bipartisan agreement to equip and train Syrian rebels was deeply disappointing. The solution was a responsible way to fight ISIS without putting any American troops on the ground, but Rick Nolan continued his trend of voting against what’s best for our troops and veterans. He wants to ignore the gathering threat of ISIS for philosophical reasons, but once again, his vote was wrong for the 8th Congressional District,” read a Mills release. [WDIO, 9/18/14] Argued That The US Should Play “Some Role” In The Middle East And Had To Lead In The Fight Against The Islamic State Argued That The US Should Play “Some Role” In The Middle East And Had To Lead In The Fight Against The Islamic State. “Mills, however, contends that what's ‘naïve’ is to diminish the threat the Islamic State poses to the United States. ‘Like it or not, we have to play some role here,’ Mills said. ‘And 164 for Congressman Nolan to take those positions, I think, leaves America in an even weaker position than we have been in the past. We can't lead from behind. We have to lead.’” [St. Cloud Times, 9/12/14] Said An Increased Number Of US Troops In Iraq Would Have Prevented The Islamic State From Gaining More Power Said An Increased Number Of US Troops In Iraq Would Have Prevented The Islamic State From Gaining More Power. “Mills said the Islamic State might not have gotten as strong as it is now had the United States found a way to keep more forces in Iraq.” [St. Cloud Times, 9/12/14] Opposed Iranian Nuclear Deal Opposed Iranian Nuclear Deal. “His 2016 campaign will look much the same as his first bid, though Mills cut his signature chin-length hair after a grilling incident this summer. Mills said he'd echo many of the same criticisms of Nolan, like his votes to ban assault weapons and other gun control measures and his support of President Barack Obama's health care law. He'll mix in more recent votes, too, like Nolan's support of the Iran nuclear deal.” [Associated Press, 10/13/15] Said The Deal Would Allow Iran To Develop A Nuclear Weapon In Time. “Mills criticised Nolan for his support of the recently negotiated Iran deal, which Mills said paves the way for the rogue nation to get its hands on a weaponized nuclear device. ‘It's not a matter of ‘if’ they get a nuclear weapon, it's a matter of ‘when’,’ Mills said.” [Duluth News Tribune, 10/18/15] Claimed The Iran Nuclear Deal Would Lead To “An Arms Race And Nuclear Proliferation On The Arab Strait” Claimed The Iran Nuclear Deal Would Lead To “An Arms Race And Nuclear Proliferation On The Arab Strait.” “Mills predicted other nuclear programs popping up in countries near Iran as a result of the deal. Saudi Arabia, Egypt and Turkey will make their own initiatives to obtaining a nuclear weapon, he said. ‘We will have an arms race and nuclear proliferation on the Arab Strait,’ he said.” [Duluth News Tribune, 10/18/15] Mills Said Rep. Nolan “Voted To Fund Terrorist Organizations” Because He Supported The Iranian Nuclear Deal Mills Sent Out A Press Release Stating That Rep. Nolan “Voted To Fund Terrorist Organizations” Because He Supported The Iranian Nuclear Deal. “The Iran Nuclear Deal is taking center stage in Congressman Rick Nolan's reelection campaign. Right now, Stewart Mills is calling Nolan out on his support of the controversial agreement. It's the first big attack from the Mills campaign this year. ‘Our position very early on stated, inevitably, it was going to fund terrorism,’ Mills told KDLH on Friday. Just hours before our interview, Mills sent reporters a press release titled, ‘Secretary Kerry Confirms Rick Nolan Voted to Fund Terrorist Organizations.’” [Northland News Center, 1/27/16] Called Nolan’s Support “Wrong” And “Short Sighted.” “Mills is referring to the Secretary of State's comments in a CNBC interview. During the interview, Kerry said that some of the $100 billion in unfrozen assets returned to Iran will likely be used to fund known terrorist organizations. The 165 measure was a part of President Obama's nuclear deal with Iran. A deal Congressman Rick Nolan supported. ‘Rick Nolan did not see that far ahead. Now Secretary Kerry has now made it more than plain, that Rick Nolan support and his vote in favor of that was exactly wrong and was very short sighted,’ Mills added.” [Northland News Center, 1/27/16] Denied That He Was Saying Nolan Supported Funding Terrorism But That He Had Not Thought Through The Implications Of Supporting The Deal. “But on the campaign trail, Mills is using the Iran Nuclear Deal as a pivotal issue of difference between him and Nolan. ‘Are you saying that a Congressman who swore an oath to his country, that he would protect the country, are you saying that Congressman - Congressman Rick Nolan - is trying to fund terrorism organizations?’ KDLH's Nick Minock asked Stewart Mills. ‘No. He just has the policy wrong,’ said Mills. ‘Rick Nolan's initial support and his vote in favor of the Iran Deal isn't saying Rick Nolan was in favor of funding terrorism, it's just he didn't think it all the way through.’” [Northland News Center, 1/27/16] 166 LGBT Issues Significant Findings Did not take position on same-sex marriage, said state has already decided the issue Mills did not take a position on same-sex marriage. Instead, he said the state has already decided the issue. Did Not Take Position on Same-Sex Marriage In June 2013, Mills did not take a position on same-sex marriage. “He did not take a position on same-sex marriage because he said the state has already decided the issue. Such marriages are to become legal in Minnesota on Aug. 1,” the Star Tribune reported. [Star Tribune, 6/26/13] 167 Gun Issues Significant Findings Famous for creating a video letter against gun regulations, including an assault weapons ban Said gun control “would not work” and would “endanger” people Called for armed security at schools, even if it meant increasing federal taxes on firearms Claimed Second Amendment rights were under attack, said legislators should “stop playing politics with our God-given constitutional rights” NRA endorsed Mills and spent $750,000 on TV ads supporting him Criticized Nolan for supporting a ban on assault weapons Willie Robertson of the Duck Dynasty show recorded a message asking people to vote for Mills Said the 2016 election “isn’t going to be about guns” December 2015: Shared NRA President, Wayne LaPierre’s video about preventing gun violence on his campaign’s Facebook page Mills received widespread attention for creating a video letter for Congressman Nolan and Senators Franken and Klobuchar on gun control legislation in early 2013 in the aftermath of the Newtown shooting. The video went viral and as of October 2015, it had over 314,000 views. In the video, Mills called for all schools to have armed guards instead of implementing any gun control measures. During the 2014 campaign, Mills touted his “A” rating from the National Rifle Association and they spent $750,000 on ads supporting him. He is a staunch gun rights supporter and called gun control efforts an attempt to limit personal freedom. He conceded that the 2016 election “isn’t going to be about guns.” 168 Created A Video Letter Against Gun Regulations, Including An Assault Weapons Ban In Wake Of Newtown Shooting In 2013, Mills released a video letter for Congressman Rick Nolan and Senators Franken and Klobuchar on gun control legislation. Mills’ main purpose of the video was to tout his opposition against gun regulations and to demonstrate that Nolan’s duck gun was more “lethal and impractical” than assault rifles. [HuldraArms YouTube account, uploaded 1/10/13] “Rick Nolan’s duck gun is much more lethal and impractical than the so-called assault rifles that he would legislate away […] Hopefully, this video letter will educate and inform our uninformed and misguided congressmen and Senators about the issues,” Mills said. [HuldraArms YouTube account, uploaded 1/10/13] NOTE: See “Key Moments on Video” section for a full transcription of the video. Used Video to Promote Fleet Farm Stores, Showed Cased Firearms and Fire Ranges In Mills’ video, he used the video as a promotional tool for the Fleet Farm stores, showcasing the firearms and firing ranges available at their stores. “I’m standing in front of Mills indoor shooting and archery, soon to open on the corner of 210 and 371 in Baxter Minnesota. Behind me is one of our 32 Fleet Farm stores…our Huldra Mark 4 line of rifles and accessories, exclusive to Mills Street Farms, has allowed our shooting sports department to be successful, which in turn has allowed us to hire more people and continue to expand,” Mills said. [HuldraArms YouTube account, uploaded 1/10/13] Wore Fleet Farm Logo and Filmed Video Outside of Store In Mills’ video, Mills wore a fleet farm logo on his jacket and filmed the video outside of a Mills Fleet Farm store. From a screenshot of the video: 169 [HuldraArms YouTube account, uploaded 1/10/13] Mills: “Gun Control Isn’t About Controlling Guns, It’s About Controlling People And Limiting Your Freedom.” [Huldra Arms YouTube, 1/10/13] Mills: “Gun Free Zones Are Killing Our Kids … We Need To Put Armed Security In Every School And Fund That Price Tag … We Need To Stop Guarding Our Banks And Our Sports Stadiums Better Than We Guard Our Children.” [Huldra Arms YouTube, 1/10/13] Mills: “This Is About Politics … This Is About Gun Control Measures … They Really Don’t Care About Solving The Problem. They Just Are Not Gonna Let A Good Crisis Go To Waste And They’re Gonna Push Their Political Agenda.” [Huldra Arms YouTube, 1/10/13] Suggested That Violent Video Games And Mental Health Were Responsible For Gun Violence. [Huldra Arms YouTube, 1/10/13] Mills: “Gun Control Will Not Work … It Will Only Endanger Us.” [Huldra Arms YouTube, 1/10/13] Said We Need To Put Armed Security In Every School And Fund That Price Tag. [Huldra Arms YouTube, 1/10/13] Claimed Sporting Rifles Were Less Dangerous Than Duck Hunting Shot Guns. [Huldra Arms YouTube, 1/10/13] In Mills’ video, he said gun control will not work and would only further endanger us. “So that is my video letter to our Congressman and Senators. Gun control will not work. It will only endanger us. Do not strip away our freedoms due to ignorance or politics.” [HuldraArms YouTube account, uploaded 1/10/13] 170 Called For Armed Security at Schools, Even If It Meant Increasing Federal Taxes On Firearms In Mills’ video letter to Congressman Rick Nolan and Senators Franken and Klobuchar on gun control legislation, he called for armed security at local schools, even if it meant increasing federal taxes on firearms to finance the measure. From his video: “So what’s the solutions, we need to put armed security in every school and fund that price tag. We have to stop putting things on our credit card and mortgaging our children’s future to China. The ATF collects approximately $ 24 billion a year in excise fees. If we need to increase the 11% ATF excise fee on firearms to 15% or whatever to pay for it, we need to do that. We need to stop guarding our banks and our sports stadiums better than we guard our children. There’s only so much money out there. We need to reform certain institutions and the way that we collect taxes. We need to balance our priorities to get them straight. The priority should be the security of our children. Locally here, in the Brainerd Lakes area, we have an excellent law enforcement program. However, we graduate more candidates than there are law enforcement positions for. I believe we should take the reallocated funds and distribute it to local law enforcement to hire security police to guard the doorways and hallways of our local schools.” [YouTube, posted 1/10/13; MinnPost, 7/9/14] Alcohol, Tobacco, Firearms No Longer Imposes an Excise tax “ATF no longer administers the Firearms and Ammunition Excise Tax (FAET) provisions of law. That authority rests with the Alcohol and Tobacco Trade Bureau (TTB) within the U.S. Dept. of Treasury. Accordingly, the following information is provided to help increase importers’ awareness of the tax and their possible liability for the tax depending on the nature of their operations.” [Bureau of Alcohol, Tobacco, Firearms and Explosives, accessed 2/20/14] Firearms and Ammunition Excise Tax Collects 10% of the Sales of a Pistols or Revolvers and 11% of Other Firearms Sold According to the Alcohol and Tobacco Tax and Trade Bureau, “The tax rates are 10% of the sale price of pistols and revolvers; 11% of the sale price of firearms other than pistols and revolvers, shells and cartridges.” [Alcohol and Tobacco Tax and Trade Bureau, accessed 2/20/14] Firearms and Ammunition Excise Tax Is Based Upon Wholesale Price According to the Alcohol and Tobacco Tax and Trade Bureau, “Taxable sale price is based upon the taxable article’s wholesale price. When the taxable article is not sold to a wholesale distributor in an arms-length transaction, a constructive sale price (CSP) can be used as a substitute tax base. The sale situation will dictate whether the taxpayer can elect or is required to use a CSP.” [Alcohol and Tobacco Tax and Trade Bureau, accessed 2/20/14] …Similar Legislation was Criticized by the National Rifle Association 171 2013: Democrats Proposed Doubling the Tax on Handguns to Fund Law Enforcement In 2013, Democratic Congressmen William Pascrell, D-N.J., and Danny Davis, D-Ill proposed the Gun Violence Prevention and Safe Communities Act, that according to Fox News would “nearly double the current 11 percent tax on handguns, while raising the levy on bullets and cartridges from 11 percent to 50 percent. […] “The lawmakers say the bill would generate $600 million per year, which would be used to fund law-enforcement and gun violence prevention.” [Fox News, 8/26/13] Citizens Committee for the Right to Keep and Bear Arms: Called it “Confiscatory Taxation” In 2013, Alan Gottlieb, chairman for the Citizens Committee for the Right to Keep and Bear Arms said of the legislation, “What the anti-gun interests can’t ban, they want to tax it out of existence […] It’s nothing more than confiscatory taxation.” [Fox News, 8/26/13] National Rifle Association Suggested the Legislation was “Ridiculous” In 2013, the National Rifle Association posted on Facebook that the Gun Violence Prevention and Safe Communities Act, would nearly double the current 11% tax on handguns, while raising the levy on bullets and cartridges from 11% to 50%. LIKE if you think this is ridiculous!” [National Rifle Association Facebook, 8/27/13] Headline: Bill would trigger huge new taxes on guns, ammo [NRA, 8/27/13] Headline: Dem bill would trigger huge new taxes on guns, ammo [Fox News, 8/26/13] Criticized Government On Infringing 2nd Amendment In June 2013, Mills criticized the government for infringing on 2nd Amendment run rights. [Legal Ledger, 6/05/13] National Rifle Association Endorsed Mills And Spent $750,000 On TV Ads Supporting Him National Rifle Association Endorsed Him. “The candidates spent at least as much time on guns as they did on mining. Mills made much of his recent endorsement from the National Rifle Association, which has many members and supporters in Northern Minnesota. Nolan, said Mills, got an ‘F’ from the NRA. The NRA, said Nolan, is more driven by selling guns (in stores like the ones owned by Mills' family) than it is about protecting gun owners.” [Hibbing Daily Tribune, 10/12/14] NRA Spent $750,000 On TV Ads Supporting Him. “The nation's most powerful gun rights group plans to spend close to $1 million in a weeklong, pre-Election Day ad blitz targeting Minnesota U.S. Rep. Rick Nolan. The National Rifle Association's massive ad buy - $750,000 over just one week starting Oct. 28, according to public filings - adds to the flood of outside money that has made the race for the 8th Congressional District the most expensive contest in Minnesota by far. NRA spokeswoman Jennifer Baker confirmed the ads would focus on the 8th District but declined to say whether they would criticize 172 Nolan, boost his Republican challenger Stewart Mills or both. No matter the message, it could be potent in the 8th District, home to northeastern Minnesota counties with some of the highest gun permit ownership rates in Minnesota. Guns have played heavily into the high pressure race, making appearances in nearly every ad, debate and interview the two candidates have done. Mills has tried to put Nolan on defense with gun owners, accusing the Democratic congressman of trying to strip gun owners of Second Amendment rights.” [Associated Press, 10/9/14] Willie Robertson Duck Dynasty Recorded A Message In Support Of Mills And His Second Amendment Stance; Video Was Posted On YouTube Link to video here. Willie Robertson: Hey Minnesota, it’s Willie Robertson from Duck Commander. I just wanted to ask that you vote for Stewart Mills. Stewart’s all about hunting and he’s pro second amendment and that’s the kind of guys we need up in Washington. So support Stewart Mills in the next election. Stewart Mills: I’m Stewart Mills—I approve this message because I’ll defend the second amendment always. [YouTube, uploaded 10/31/14] Claimed Second Amendment Rights Were Under Attack, Said Legislators Should “Stop Playing Politics With Our God-Given Constitutional Rights” Claimed Second Amendment Rights Were Under Attack, Said Legislators Should “Stop Playing Politics With Our God-Given Constitutional Rights.” “Mills plans to talk about ‘four pillars’ in his campaign. One is gun control; the others are health care, the federal debt, and tax burdens on small businesses. He talked about each one last week. Here is the rundown: Gun control ‘Our Second Amendment is very much under attack,’ Mills said. ‘There's definitely real threats both on the state level and the national level. If I can be part of the dialogue statewide, that's fine.’ … Mills said guns should be off the table in Washington. ‘Stop playing politics with our God-given constitutional rights.’” [Duluth News-Tribune, 4/20/14] Criticized Nolan For Supporting A Ban On Assault Weapons Criticized Nolan For Supporting A Ban On Assault Weapons. “Mills called for a ‘flatter, fairer’ tax code and criticized Nolan for supporting President Barack Obama's health care overhaul, as well as votes to ban assault weapons and on other gun control measures. Nolan, 70, defended his stance on guns, saying he doesn't need an assault rifle to go hunting.” [Associated Press, 11/05/14] Posted Photos Of Himself Teaching His Young Son To Shoot A Gun On Social Media 173 [Facebook, 8/13/15] 174 [Facebook, 8/13/15] Said The 2016 Election “Isn’t Going To Be About Guns” Said The 2016 Election “Isn’t Going To Be About Guns.” “Mills said the 2016 election ‘isn't going be about guns.’ ‘The gun component of it - I think we've established who's A-rated, and who's F-rated,’ Mills said.” [Duluth News Tribune, 10/18/15] December 2015: Shared NRA President’s Video On Preventing Violence On His Campaign’s Facebook Page; Wayne LaPierre Argued That “Gangbangers” And “Thugs” And Failure To Prosecute Criminals Were Responsible For Violence, Not Honest Gun Owners December 2015: Shared NRA President’s Video On Preventing Violence On His Campaign’s Facebook Page; Wayne LaPierre Argued That “Gangbangers” And “Thugs” And Failure To Prosecute Criminals Were Responsible For Violence, Not Gun Owners. [Facebook, 12/05/15] 175 Health Care Issues Significant Findings Opposed health care reform Indicated he didn’t support covering pre-existing conditions and allowing children on parents’ health care until they are 26 Said popular elements of ACA not necessarily part of future reform 2000-2010: Oversaw health insurance at Mills Fleet Farm 2013: Plan administrator and fiduciary of company health care plan Claimed his company’s health care plan “has been taxed to subsidize Obamacare” Repeatedly claimed that he had seen the negative impacts of Obamacare Claimed that 140,000 Minnesotans had lost their health care coverage because of Obamacare Said he would replace Obamacare with legal protections, safety net programs, and the free market Said he was “for healthcare reform” but against a big government program, supported strengthening social safety nets instead Said he liked “the good things” that the Affordable Care Act had done Said he had received the “cold shoulder” from a Nolan staffer when he complained about Obamacare Minnesota had the fifth lowest rate of uninsured in the country in 2014 Mills announced his opposition to the Affordable Care Act. He said it would result in rationing of care and increase costs. He also said health care reform needed to be 176 “repealed and replaced.” Mills even opposed popular elements of the Affordable Care Act that included covering people with pre-existing conditions and allowing children to stay on their parents’ plans until they are twenty six years old. Between 2000 and 2010, Mills oversaw health insurance and other benefit plans as the director of personnel for Mills Fleet Farm. In July 2013, he said he was the plan administrator and the fiduciary of company health care plan. Mills claimed he had seen firsthand the negative impacts of Obamacare as the company’s plan administrator and that their plan had been taxed to subsidize the new law. He later shifted to say that the law should simply be replaced but when asked what he would replace it with he responds in generalities such as a free market system, safety net protections, tort reform, and health savings accounts. Mills conceded that he liked the good things that the Affordable Care Act had done but said replacing it would be a central focus of his 2016 campaign. Opposed Health Care Reform In July 2013, Mills announced his opposition to health care reform. “…And what Obamacare has done it has decreased the supply of healthcare, it’s done nothing to change how we deliver it, and it’s increased the demand. Anytime time that happens you are going have cost go through the roof,” Mills said. [Crow Wing County GOP 2nd Amendment Rally, 7/20/13] Mills: “Obamacare will Create Rationing Situation and Increase Costs” In July 2013, Mills said “Obamacare will create rationing situation and increase costs.” “What is happening with Obamacare will not accomplish what it set out to accomplish. All that it will do is it will create a rationing situation, it will increase cost, it will have an opposite effect,” Mills said. [Crow Wing County GOP 2nd Amendment Rally, 7/20/13] Mills: Health Care Reform Needs to be “Repealed and Replaced” In July 2013, Mills said health care reform needed to be “repealed and replaced.” “It is something that needs to be repealed and replace by something quite frankly just the opposite of the direction that they are going because healthcare is way more important than to have government, or government bureaucrats, come between you and your doctor. It is person, and needs to be treated like its personal,” Mills said. [Crow Wing County GOP 2nd Amendment Rally, 7/20/13; Minnesota Public Radio, 10/10/13] … Despite the Effect Repeal Would Have on the 8th Minnesota Congressional District According to 2011 analysis by the minority staff of the Energy and Commerce Committee, the Affordable Care Act provided significant benefits to Minnesota’s congressional district: 177 Allowing insurance companies to deny coverage to 113,000 to 283,000 individuals, including 7,000 to 34,000 children, with pre-existing conditions. Rescinding consumer protections for 396,000 individuals who have health insurance through their employer or the market for private insurance. Eliminating health care tax credits for up to 16,600 small businesses and 185,000 families. Increasing prescription drug costs for 13,900 seniors who hit the Part D drug “donut hole” and denying new preventive care benefits to 125,000 seniors. Increasing the costs of early retiree coverage for up to 9,500 early retirees. Eliminating new health care coverage options for 1,500 uninsured young adults. Increasing the number of people without health insurance by 22,000 individuals. Increasing the costs to hospitals of providing uncompensated care by $120 million annually [Minority Staff of Energy and Commerce Committee, 1/18/11] … Though Repeal Jeopardizes Children, Pregnant Women, and Cancer Survivors If Mills gets his way, insurance companies could deny coverage to children with pre-existing conditions, pregnant women and breast cancer survivors. Repealing Health Care Reform Would Re-Legalize Allowing Insurance Companies to Drop Coverage for People with Pre-Existing Conditions In March 2010, the Philadelphia Inquirer reported that six months after the Health Care Legislation is signed, health plans would be prohibited from excluding children who have preexisting conditions. In 2014, this prohibition would be extended to adults. That year, insurers would no longer be allowed to set annual limits, rescind coverage, or impose excessive waiting periods before coverage starts. [Philadelphia Inquirer, 3/22/10] … Including Children According to the Philadelphia Inquirer, six months after health care legislation was signed, health plans would be prohibited from excluding children who have preexisting conditions. [Philadelphia Inquirer, 3/22/10] … Including Pregnant Women According to PolitiFact.com, pregnancy was considered a pre-existing condition. “But for now, Rohack is correct that pregnancy is considered a pre-existing condition and prevents many women from getting coverage if they seek insurance on the individual market,” the website explained. [politifact.com, 8/18/09] … Including Breast Cancer Survivors According to PolitiFact.com, cancer was considered a pre-existing condition. [politifact.com, 8/18/09] And according to U.S. News, breast cancer was specifically considered a pre-existing condition. 178 “Starting in 2014, insurers won't be able to deny applicants based on, say, an earlier diagnosis of breast cancer,” the story reported. [usnews.com, 1/14/11] … Though Repeal Would Make Millions of Seniors Pay More for Prescription Drugs If Mills gets his way, millions of seniors would pay more for prescription drugs. Repealing Legislation Would Re-Enact the Donut Hole for Seniors In March 2010, the Philadelphia Inquirer reported that Medicare seniors with Medicare prescription coverage prior to the signing of the Health Care Legislation must pay out of their pocket for drug spending that falls between $2,830 and $6,440 because of the “doughnut hole” in the Medicare law. Seniors who hit this “idiosyncratic feature” this in 2010 would get a $250 rebate. In 2011, the gap would be reduced through a discount on brand-name drugs. By 2020, it should be eliminated, although seniors would still have to pay 25 percent of their prescription-drug costs. [Philadelphia Inquirer, 3/22/10] 2016: Seniors In The “Donut Hole” Set To Receive Discounts And Savings Of 55% On Brand Name Drugs And 42% On Generic Drugs. “The Affordable Care Act makes Medicare prescription drug coverage more affordable by gradually closing the gap in coverage where beneficiaries had to pay the full cost of their prescriptions out of pocket, before catastrophic coverage for prescriptions took effect. The gap is known as the donut hole. The donut hole will be closed by 2020. Because of the health care law, in 2010, anyone with a Medicare prescription drug plan who reached the prescription drug donut hole received a $250 rebate. In 2011, beneficiaries in the donut hole began receiving discounts and savings on covered brand-name and generic drugs. People with Medicare Part D who are in the donut hole in 2016 will receive discounts and savings of 55 percent on the cost of brand name drugs and 42 percent on the cost of generic drugs.” [CMS, “More than 10 million people with Medicare have saved over $20 billion on prescription drugs since 2010,” 2/08/16] 2015: Minnesota Saw Discounts Of $285 Million Impacting More Than 73,000 Beneficiaries Resulting In Average Savings Of $981 Per Beneficiary. [CMS, “Part D donut hole savings by state YTD 2015,” accessed 2/08/16] … Though Repeal Would Eliminate Tax Breaks for Small Businesses If Mills gets his way, small businesses would lose tax breaks that help make health insurance more affordable. Repealing Legislation Would Eliminate Tax Breaks for Small Businesses Businesses with fewer than 25 Employees and average wages of less than $50,000 could qualify for a tax credit of up to 35 percent of the cost of the premiums. [MSNBC, 3/22/10] 179 … Though Repeal Would Prevent Young People From Staying on Parents’ Plans If Mills gets his way, young people would not be able to stay on their parents’ plans until age 26. Repealing Healthcare Reform Would Prevent Dependent Children from Staying of Parents’ Plans Until Age 26 According to 2010 analysis by Kaiser Health News, under healthcare reform, dependent children could remain on their parents’ health insurance plans until age 26. [msnbc.com, 3/22/10] … Though Repealing Health Care Could Eliminate Up to 400,000 Jobs According to the Center for American Progress, the repeal of health insurance reform could eliminate 250,000 to 400,000 jobs annually over the next ten years. [Center for American Progress, 1/07/11] … Though Repeal Would Add $230 Billion to the Deficit According to the nonpartisan Congressional Budget Office, the repeal of health care reform would increase the deficit by $230 billion by 2021. The CBO’s previous score of the Affordable Health Care Act had it decreasing the deficit by $143 billion over 10 years. [Politico, 1/06/11] Indicated That Popular Parts Of The ACA Such As Allowing Children To Remain On Their Parents Plan Until They Are 26 And Covering Pre-Existing Conditions Were Not Necessarily Part Of Future Health Care Reform Efforts In 2014 Mills indicated not supporting covering people with pre-existing conditions and not allowing children to stay on their parents health care. Mills, “said that the law’s relatively popular provisions — such as ending the ban on pre-existing conditions, allowing children on their parents’ plan until they’re 26, etc. — wouldn’t necessarily be a part of a future reform effort,” the Minn Post reported. [Minn Post, 8/25/14] Opposed Children Staying On Their Parents Health Plans Until They Reach Twenty Six In 2014, Mills opposed children staying on their parents’ health plans until they reach twenty six. “Mills said parents who want that should pay for it, not pass along the cost to everyone else,” Minnesota Public Radio News reported. [Minnesota Public Radio News, 2/12/14] Later Said He Supported Reform That Included Protections For Those With Pre-Existing Conditions Later Said He Supported Reform That Included Protections For Those With Pre-Existing Conditions. “On the Affordable Care Act, Mills said he favored health care reform that protects people with pre-existing conditions but he supports reforming the law to allow people to buy and sell plans across state lines.” [Star Tribune, 10/8/14] 180 Said Popular Elements Of ACA Not Necessarily Part Of Future Reform In August 2014, Mills claimed that Social Security and Medicare need to be fixed, but besides repealing the Affordable Care Act, Mills offered no policy specifics. Mills also said that the ACA’s “relatively popular provisions — such as ending the ban on pre-existing conditions, allowing children on their parents’ plan until they’re 26, etc. — wouldn’t necessarily be a part of a future reform effort,” the Minneapolis Post reported. [Minneapolis Post, 8/26/14] Supported Repealing The Affordable Care Act And Repealing Cuts To Medicare Advantage In August 2014, Mills supported repealing the Affordable Care Act, but was also in favor of removing cuts to Medicare Advantage before changing the medical insurance system in the United States. “I agree with repealing Obamacare but I don’t agree with the cuts to Medicare Advantage. I believe that money should be returned to Medicare and then we have to reform the system ... That’s how it becomes sustainable,” said Mills. [Minneapolis Star Tribune, 8/29/14] Said There Were “Very Few” With People With Preexisting Conditions Note: A correction was issued that Mills meant to say that few people have “True Preexisting Conditions that didn’t have a Health Insurance Portability and Accountability Act Certificate” Mills Said People with Preexisting Conditions were “Very Few.” In 2014, the Brainerd Dispatch reported that Mills had said that in his experience as a vice president and health plan administrator of Mills Fleet Farm, cases of people with preexisting conditions were “very few” in number. [Brainerd Dispatch, 1/30/14; Mills for Congress, accessed 8/25/14] Brainerd Dispatch: Mills Said Few People have “True Preexisting Conditions that didn’t have a Health Insurance Portability and Accountability Act Certificate” Brainerd Dispatch issued correction to its January 30th article on Stewart Mills, reporting that “inadvertently omitted a portion of the comments” made by Mills and that he said “there were very few people with true preexisting conditions that didn’t have a Health Insurance Portability and Accountability Act certificate. The Dispatch regrets the error.” [Brainerd Dispatch, 2/19/14] October 2014 Debate: Said He Never Claimed That There Were Not Many People With PreExisting Conditions But That He Was Referring To People Trying To Switch Plans Who Were Not Covered By HIPAA. “First of all, I never said there aren’t many people that have pre-existing conditions. What I said is that as plan administrator, there are few people that I’ve run across that are not covered by HIPAA, which allows you to go from your existing plan to another plan without having to worry about preexisting conditions. Also, I never said there was a federal government program that never worked.” [The Uptake, Debate Transcript, 10/06/14] 181 Said He Was “For Healthcare Reform” But Against A Big Government Program, Supported Strengthening Social Safety Nets Instead Said He Was “For Healthcare Reform” But Against A Big Government Program, Supported Strengthening Social Safety Nets Instead. “I am for healthcare reform. Healthcare reform that actually brings down costs and increase access. And I’m also for the goals of the Affordable Care Act. Which is making sure people don’t have to worry about pre-existing conditions, lifetime maximums, or if they have a catastrophic health condition that they don’t have to worry about where the care is coming from. However, we have to decide who we are as a people. Who we are as a society. Are we a society of social safety nets and legal protections? Or are we a welfare state? With a government big enough to give us everything, but also big enough to take it away. So we need to strengthen social safety nets. Social safety nets such as MCHA, Minnesota Comprehensive Health Association, which due to Obamacare, is going to be closing at the end of this year.” [The Uptake, Debate Transcript, 10/06/14] DCCC Ad Against Mills “Correct” That He Did Not Like Popular Provisions In Affordable Care Act In August 2014, a DCCC IE ad against Stewart Mills was “correct that Mills isn’t keen on Obamacare, including two provisions that are relatively popular with the public.” [MPR News, 8/29/14] 2000-2010: Oversaw Health Insurance And Other Benefit Plans Between 2000 and 2010, Mills served as the director of personnel for Fleet Farm and oversaw health insurance and other benefit plans. [Stewart Mills Campaign Website, accessed 9/06/13] July 2013: Said He was Plan Administrator and the Fiduciary of Company Health Care Plan In July 2013, Mills said he was the plan administrator and the fiduciary the company’s health care plan. “I am the plan administrator and the fiduciary of our company’s health care plan,” Mills said. [Crow Wing County GOP 2nd Amendment Rally, 7/20/13] Touted Health Care Healthy Lifestyle Reimbursement Plan In July 2013, Mills touted his support of his company’s healthy lifestyle reimbursement plan. “…we actually came up with a contribution reimbursement program in which we allowed our employees to buy their contributions down to zero through healthy life style…we came up with six different metrics and if they engaged in all of those and they were healthy they could by it down to zero…And it was a great system,” Mills said. [Crow Wing County GOP 2nd Amendment Rally, 7/20/13] Claimed His Company’s Health Care Plan “Has Been Taxed To Subsidize Obamacare” Claimed His Company’s Health Care Plan “Has Been Taxed To Subsidize Obamacare.” “Many of Mills' points were covered in the Republican's 2010 "Pledge to America" and Mitt Romney's plan to replace the health care act as he ran for president in 2012. Mills Fleet Farm is a self-insurer, meaning it 182 runs its insurance in-house. More than half of workers in the country fall under similar plans and most were exempted from requirements under the Affordable Care Act. Mills said his company of more than 6,000 employees is still taking a hit as insurance costs have risen and the company is subject to ‘fees that our employees have not received the benefit of. Our plan has been taxed to subsidize Obamacare.’” [Duluth News-Tribune, 4/20/14] Repeatedly Claimed He Had Seen The Negative Impacts Of Obamacare Repeatedly Claimed He Had Seen The Negative Impacts Of Obamacare. “I’m the plan administrator of our company’s self-insured health plan. I have seen first hand how our employees have been negatively impacted by Obamacare. Not only that, all throughout our part of Minnesota, I’ve seen how people have been hurt by Obamacare—higher co-pays, higher deductibles, higher premiums, skinnier networks— people are paying a lot more and they’re getting a lot less.” [WDIO, 10/28/14] October 2014 Debate: Said People Were Paying More And Getting Less Because Of Obamacare. “Ah and one of those many hats I wear as Vice President is looking out for our six thousand employees. And one of those hats is Plan Administrator of our company’s self-insured health plan. I have seen firsthand how Obamacare has affected negatively our employees and their families. And not only that, I have seen all throughout our part of Minnesota how people have been negatively impacted by it. Higher premiums, higher co-pays, higher deductibles, skinnier networks, they’re paying more, they’re getting less.” [The Uptake, Debate Transcript, 10/06/14] Claimed 140,000 Minnesotans Had Lost Their Health Care Coverage Because Of Obamacare Claimed 140,000 Minnesotans Had Lost Their Health Care Coverage Because Of Obamacare. “And also we’re willing to stand up against Obamacare. I’m the plan administrator of Fleet Farms self-insured health plan that covers over 6,000 of our team members and their family members. And we’ve seen firsthand what Obamacare has done to our plan, not only our plan but the 140,000 Minnesotans that have lost their plans under Obamacare.” [WCCO, 10/21/14] Said He Liked “The Good Things” The Affordable Care Act Had Done Said He Liked “The Good Things” The Affordable Care Act Had Done. “By the time Mills conceded there were outcomes of the Affordable Care Act he wished to keep – ‘I do like the good things it has done,’ he said -- the divide between the major party candidates seemed narrower than expected.” [Forum News Service, 10/07/14] When Asked What His Specific Plan To Replace Obamacare Was He Said It Was To Secure “Legal Protections For Social Safety Nets Programs … And … The Free Market” When Asked What His Specific Plan To Replace Obamacare Was He Said It Was To Secure “Legal Protections For Social Safety Nets … And … The Free Market.” “[5:49] Q: What is your specific alternative to the Affordable Care Act? A: Well, it’s a combination of two things. It’s on one hand, legal protections for social safety nets and on the other hand the free market.” [WCCO, 10/21/14] 183 Said He Would Replace Obamacare With A Free Market System, Tort Reform, And Health Savings Accounts Said He Would Replace Obamacare With A Free Market System, Tort Reform, And Health Savings Accounts. “The Nisswa man called for the repeal and replacement of the law, often called Obamacare. In comments after his speech, Mills said he would replace the law with a free market-based system with price transparency, purchases across state lines, tort reform and health savings accounts.” [St. Paul Pioneer Press, 4/12/14] Said He Would Replace Obamacare With “Something That's Free-Market Based And Actually Works.” “Mills wants the Affordable Care Act repealed and says he has a sketch of a plan on what to replace it with. ‘Something that's free-market based and actually works,’ he said.” [Duluth News-Tribune, 4/20/14] Said More Flexible Health Savings Accounts Would Reduce Health Care Costs. “He ran the employee health care program at Mills Fleet Farm for 14 years, he said, and he found there are three essential parts to keep in control and keep costs down: Supply, demand and delivery. Cutting costs and increasing quality of care is the goal of the current effort, he said, but ‘Obamacare is bringing us in the exact opposite direction. It's driving up costs and bringing down quality.’ Mills said he would open the insurance market across state lines and would increase the flexibility of health savings accounts. ‘Allow people to contribute more and then, when it gets to a certain point, they can put that money into their retirement accounts or into college savings plans.’ He said there also needs to be better transparency on nonemergency medical procedures. ‘You should know what the prices are.’ He said he also would advocate tort reform to limit claims made against practitioners.” [Duluth News-Tribune, 4/20/14] Said We Should Allow The Free Market To Fix Health Care Economics Said We Should Allow The Free Market To Fix Health Care Economics. “We could have worked on our social safety nets and legal protections as HIPAA, and then let the free market bring the medical economy, the inflation rate of the medical economy, in line with inflation rate with the rest of the economy. Because. We know the free market works.” [The Uptake, Debate Transcript, 10/06/14] Said He Had Received A “Cold Shoulder” From A Nolan Staffer When He Complained About Obamacare Said He Had Received A “Cold Shoulder” From A Nolan Staffer When He Complained About Obamacare. “Mills, 42, said that as administrator for his family corporation's health care plan, he had received a ‘cold shoulder’ when he tried to tell a Nolan staff member the Affordable Care Act wouldn't work.” [St. Paul Pioneer Press, 4/12/14] Minnesota Had The Fifth Lowest Rate Of Uninsured People In The Nation In 2014 Star Tribune Headline: “Minnesota's Uninsured Rate Plunges As Affordable Care Act Kicks In.” [Star Tribune, 9/17/15] 184 5.9% Of Minnesotans Were Uninsured In 2014, Fifth Lowest Rate Of Uninsured In The Country; 8.2% Of Minnesotans Were Uninsured In 2013. “The share of Minnesotans without health insurance fell to a record low last year, as new provisions of the Affordable Care Act kicked in with a historic expansion in the nation’s insurance markets. Just 5.9 percent of the state’s population was uninsured in 2014, giving Minnesota the fifth-lowest rate in the nation, according to the U.S. Census Bureau’s annual report on income and insurance. That was a sharp drop from 2013, when 8.2 percent of Minnesotans lacked health insurance. Nationwide, the uninsured rate fell from 13.3 percent in 2013 to 10.4 percent last year. The dramatic drop came as more consumers used state and federal online insurance exchanges to buy coverage and tax penalties loomed for those who lacked health insurance at the beginning of this year. The numbers were greeted as vindication of the controversial federal law, especially by elected officials who embraced it early.” [Star Tribune, 9/17/15] 325,000 People Had Enrolled In Insurance Coverage Through The State’s Exchange Program. “Since November, more than 325,000 Minnesotans have signed up for health insurance using the state’s MNsure exchange. The vast majority landed in Medical Assistance or MinnesotaCare, public health insurance programs that now cover one of every five Minnesotans. About 70,000 Minnesotans signed up for private plans on the exchange, with more than half receiving premium public subsidies. Minnesota Human Services Commissioner Lucinda Jesson said that although government insurance rolls are growing, the state will benefit from a healthier population … Between 2008 and 2013, Minnesota’s uninsured rate hovered around 8 to 9 percent. But in 2014, the number of uninsured shrank by 123,000 people.” [Star Tribune, 9/17/15] Also Wanted To Replace MNsure, Minnesota’s State Health Exchange; Said People Were Paying More And Getting “A Lot Less” Also Wanted To Replace MNsure; Said People Were Paying More And Getting “A Lot Less.” “He said he would also stress the need to replace MNsure and the federal health care overhaul. ‘People are paying a lot more and getting a lot less,’ Mills said. He said Minnesotans should be able to buy health care across state lines and have price transparency for their health care decisions. He would also back transferable health savings accounts and specialized courts to deal with medical malpractice suits.” [Pioneer Press, 10/13/15] Republican Legislators In Minnesota Wanted To Eliminate MNsure And Move The State To The Federal Exchange. “Minnesota Republicans are calling for an end to Minnesota’s online health care exchange. Republican lawmakers met at the State Capitol on Monday to hold a news conference after 180,000 Minnesotans on MnSure had their renewals delayed last week. Republicans are calling for an immediate review of the oversight committee and to get rid of MNsure completely. Democratic Gov. Mark Dayton has expressed he wants to wait until January to talk about any changes. That’s when a Blue Ribbon Health Care Commission Report comes out … The Republicans want Minnesotans to transition to the Federal government’s health exchange. Two weeks ago, the Supreme Court made a ruling upholding the Affordable Care Act.” [CBS Minnesota, 7/13/15] 2015: Said He Would Make Replacing Obamacare A Central Focus Of His Campaign Platform And Was “Still Very Much Against Obamacare” 185 2015: Said He Would Make Replacing Obamacare A Central Focus Of His Campaign Platform. “Mills says many of the campaign issues will be the same: Replacing the Affordable Care Act with a private-focused alternative, including Health Savings Accounts and the ability to buy catastrophic health coverage across state lines. He says he’ll make ‘replacing Obamacare’ a focus.” [CBS Minnesota, 10/13/15] Said He Was “Still Very Much Against Obamacare. “There's also an interesting turn in the their debate over Obamacare, which was a focal point in the 2014 campaign. ‘I'm still very much against Obamacare,’ Mills said. ‘Rick Nolan is for Obamacare as a good first step to single payer.’” [Duluth News Tribune, 10/18/15] 186 Immigration Issues Significant Findings Said Syrian refugees should not be allowed in the country after the November 2015 attacks in Paris Said Donald Trump’s call to ban Muslims from the country distracted from “the real issues” and called his rhetoric “overly bombastic and overly hyperbolic” In November 2015, Mills said that he thought Syrian refugees should not be allowed in the country in the wake of the November 2015 attacks in Paris. He added that the US should provide humanitarian aid to refugees but needed to protect itself from the threat of Islamic extremism. Said Syrian Refugees Should Not Be Allowed In The Country After November 2015 Paris Attacks Said Syrian Refugees Should Not Be Allowed In The Country After The November 2015 Attacks In Paris. “Candidates from both sides of the aisle in Minnesota's Eighth District race weighed in Tuesday on whether or not to allow Syrian refugees to be resettled in the U.S. Resettlement of the refugees has become politically controversial following a terrorist attack in Paris Nov. 13. The nationwide argument over whether to continue to allow refugees quickly formed along partisan lines. In response to a request from the Dispatch, Republican Stewart Mills' campaign emailed a statement saying the refugees should not be allowed in, while U.S. Rep. Nolan's congressional office sent one from the Democrat lawmaker saying the refugees should still be allowed access.” [Brainerd Dispatch, 11/18/15] Said The US Should Provide Humanitarian Aid To Refugees But That The Country Needed To Be Protected From Islamic Extremism. “Mills’ statement said his top priority was ‘the safety and security of the American people when addressing the very real threat of radical Islamic terrorism, as seen in the recent attacks in Paris.’ ‘We need to protect ourselves here at home by resolving the underlying problem of Islamic extremism that is creating instability and oppression in the Arab world,’ the statement read. ‘Our hearts go out to the families suffering under this oppression and our policy should be to provide humanitarian aid in the Arab region to those families, not relocating them to our country, and more importantly help those refugees eventually reclaim their rightful homes.’” [Brainerd Dispatch, 11/18/15] 187 Said Donald Trump’s Call To Ban Muslims From The Country Distracted From “The Real Issues” And Called His Rhetoric “Overly Bombastic And Overly Hyperbolic” Said Donald Trump’s Call To Ban Muslims From The Country Distracted From “The Real Issues” And Called His Rhetoric “Overly Bombastic And Overly Hyperbolic.” “Republican presidential candidate Donald Trump's proposal to temporarily ban Muslim citizens of foreign countries from entering the United States drew bipartisan criticism on Wednesday from both major candidates running for the seat in Minnesota's 8th Congressional District. Stewart Mills, the Republican challenger, said in a phone interview that Trump's comments distracted attention from ‘the real issues’ and refocused it on Trump himself. ‘His rhetoric, which is overly bombastic and overly hyperbolic, doesn’t address or frame the debate in a way that is constructive,’ he said. The issue of security remains, Mills said, but it can’t be solved with a ‘religious litmus test.’” [Brainerd Dispatch, 12/10/15] Said That Visas For People From Certain Countries Should Be Given Extra Scrutiny. “However, Mills noted that one of the San Bernardino shooters, Tashfeen Malik, was in the United States on a visa. Mills suggested adding a higher level of scrutiny for visa applicants based on their country of origin. ‘When it comes to dealing with people that are coming from countries—and again, it has nothing to do with religion—but countries that have movements that are anti-American, whether it is (the Islamic State group), whether it is Al Qaida, whether it's Al Shabaab, we have to do a much better job of screening the people that we are issuing visas to.’” [Brainerd Dispatch, 12/10/15] 188 Labor Issues Significant Findings Called raising the minimum wage and extending unemployment insurance an “admission of failure” Said minimum wage jobs were “stepping stone jobs designed for 16- and 17- yearolds to get their next paying jobs” Labor union accused Mills Fleet Farm of using temporary workers at minimum wage Did not know the correct unemployment rate Criticized for accepting support from the Koch brothers who shut down Minnesota plant United Steel Workers op-ed called the idea that Mills supported working people “downright laughable” Mills called raising the minimum wage and extending unemployment insurance an “admission of failure.” In 2011, the Twin Cities chapter of the Laborers’ International Union of North America accused Mills Fleet Farm Stores of using temporary workers at minimum wage for the construction of a new store in Carver, Minnesota. Mills also did not know the correct unemployment rate and was criticized for accepting support by the Koch Brothers who shut down a Minnesota plant. During a 2014 debate, Mills argued that minimum wage jobs were just “stepping stones” for teenagers, not full time working adults. United Steel Workers Op-Ed Called The Idea That Mills Supported Working People “Downright Laughable” United Steel Workers Op-Ed Called The Idea That Mills Supported Working People “Downright Laughable.” “The idea that Stewart Mills III would be on our side as working people on the Iron Range is downright laughable. Mills is a multi-millionaire who has never had to apply for a job in his life, opposes a minimum wage increase, and wants to cut taxes for millionaires such as himself. Worse, Mills refuses to distance him-self from his Republican allies who want to use Chinese steel and undermine our livelihood. The USW represents 850,000 workers in North America employed in many industries, 189 including metals, rubber, chemicals, paper, oil refining, mining and the service and public sectors.” [Grand Rapids Herald-Review, 9/24/14] 190 Called Raising The Minimum Wage And Extending Unemployment Insurance An “Admission Of Failure” In 2014, Mills called raising the minimum wage and extending unemployment insurances a “stunning admission of failure.” [Star Tribune, 1/9/14] Criticized by Rep. Nolan for Not Supporting Minimum Wage In 2014 Mills was criticized by Congressman Nolan on not supporting minimum wage increase. [KBJR, 8/1/14] Headline: Rick Nolan calls out Stewart Mills on minimum wage [KBJR, 8/1/14] Endorsed by Minnesota Republicans who Supported Raising the Minimum Wage In 2014, Republicans Senator Paul Gazelka, Representative Ron and Senator Carrie Ruud, “all said they’d support conforming to the federal minimum wage of $7.25 per hour. In Minnesota minimum wage is $6.15 for large employers; $5.25 for small employers; with a training wage minimum set at $4.90 per hour.” [Brainerd Dispatch, 1/23/14] Headline: Lawmakers consider minimum wage hike proposals [Brainerd Dispatch, 1/23/14] …Same Three Republicans Endorsed Stewart Mills III. According to a Stewart Mills press release, Republicans Senator Paul Gazelka, Representative Ron and Senator Carrie Ruud all endorsed Stewart Mills III. [Mills for Congress, accessed 2/7/14] Said Minimum Wage Jobs Were “Stepping Stone Jobs Designed For 16- And 17-Year-Olds To Get Their Next Paying Jobs” Said Minimum Wage Jobs Were “Stepping Stone Jobs Designed For 16- And 17-Year-Olds To Get Their Next Paying Jobs.” “Mills described minimum wage as ‘stepping stone jobs designed for 16- and 17-year-olds to get their next paying jobs.’ The comment drew a collective gasp from the crowd, but Mills finished the thought by saying the scarcity of better-paying jobs is ‘a stunning indictment of Democrats.’” [The Pine Journal, 10/09/14] Local Labor Union Accused Mills Fleet Farm Of Using Temporary Workers At Minimum Wage In 2011, the Twin Cities chapter of the Laborers’ International Union of North America accused Mills Fleet Farm Stores of using temporary workers at minimum wage for the construction of a new store in Carver, Minnesota. “Fleet Farm should be ashamed that it’s taking the cheapest and riskiest route possible to put up this outlet in Carver,” said Tim Mackey, business manager for Twin Cities-based Local 563 of the Laborers’ International Union of North America. [Star Tribune, 11/16/11] …Mills’ Father Disputed the Accusations of Labor Exploitation 191 In 2011, Mills’ father and Fleet Farm CEO, Stewart Mills Jr., disputed the claims of the local labor unions on worker exploitation at the Mills Fleet Farm store in Carver. Mills claimed that contractors were paying substantially more than minimum wage and that the jobs were created locally. “There isn’t anyone paying minimum wage,” Mills said. [Star Tribune, 11/16/11] …But Mills Fleet Farm Contractor Breitbach Confirmed Some Workers Received Only Minimum Wage In 2011, Mills Fleet Farm contracted out its concrete construction to Breitbach Construction Company, which in turn hired four men through the firm Labor Ready. Breitbach reportedly paid $18 and $19 an hour for the four men they hired, but discovered that Labor Ready was only giving the men the minimum wage of $7.25 an hour. After a grievance was brought by the local union, Breitbach said it “completely discontinued” its relationship with Labor Ready. [Star Tribune, 11/16/11] Denied Conflict Of Interest With Mills Fleet Farm On Federal Minimum Wage Proposal In August 2014, Mills reiterated his position to increasing the federal minimum wage. Mills claimed his company pays above the state minimum wage, but did not address the proposed $10.00 federal minimum wage. “Stewart does not support an increase in the federal minimum wage. But that’s because he thinks that the best way to create jobs, the best way to help people in minimum wage jobs is to make sure that there are better paying jobs; more jobs that require higher skills and the way to get those jobs is to grow the economy,” said Mills campaign spokesperson Chloe Rockow. Said Mills Fleet Farm Employees Are Paid Above Minimum Wage “Mills says his company, Mills Fleet Farm, pays its employees a rate above the state minimum wage.” [Northland News Center, 8/02/14] Criticized For Receiving An Outsized Executive Salary While Opposing Minimum Wage Increase In August 2014, Nolan criticized Mills’ wages from his families company, claiming they are over six times “the going rate for a position like his.” “Ironically, my opponent, Stewart Mills III, is paid $570,000 a year – nearly $300 an hour – by his family firm, even though $45 an hour is the going rate for a position like his. And yet he has the audacity to oppose raising the minimum wage for everyday hardworking Americans to $10.10 an hour?” Nolan said. [Northland News Center, 8/02/14] 192 2014: Did Not Know The Correct Unemployment Rate In 2014, Mills said, “We have an 8 percent unemployment rate currently. Contrast that with a 4.5 percent unemployment rate statewide. We know we can do better.” [WDIO, 6/6/14] May 2014: National Unemployment Rate is 6.3% [Bureau of Labor and Statistics, accessed 6/18/14] April 2014: Minnesota Unemployment Rate is 4.7% [Bureau of Labor and Statistics, accessed 6/18/14] April 2014: Duluth, MN-WI Unemployment Rate is 5.9% [Bureau of Labor and Statistics, accessed 6/18/14] Criticized For Accepting Support By The Koch Brothers, Who Shut Down A Minnesota Plant 2012: Koch Brother’s Closed Georgia-Pacific Plant in Duluth “Georgia-Pacific said Tuesday it will close its Duluth hardboard plant at the end of the month and put the building up for sale. The move will put 140 people out of work, the Duluth News Tribune reported. The employees will be paid and receive benefits for 60 days. The Duluth facility makes a thin hardboard product called Superwood that is used in the auto industry. Production of that product will be moved to other Georgia-Pacific facilities.” [Minnesota/St. Paul Business Journal, 8/21/12; Star Tribune, 10/22/12] Koch-Backed Americans for Prosperity Bought $225,000 in Television Ads “Minnesota AFP director John Cooney says the group bought $225,000 in television time over three weeks. It will pay for ads in the Twin Cities and Duluth TV markets.” [Associated Press, 12/26/13] AFP: Social Security Privatization “Pro-Growth, Supply-Side Alternative to the Austerity Approach” In April 2014, Americans for Prosperity, a Koch-backed group, released their budget principle. The Principles included proposals for Social Security reform, potentially by “[investing] in real assets that earn a higher rate of return,” or privatizing the program. Americans for Prosperity Recommendations for Budget Reform: “The real investment option is clearly superior to a massive tax hike, and makes sense both economically and politically. It is the pro-growth, supply-side alternative to the austerity approach, giving workers a better deal by boosting capital formation and growing the economy. Real investment could be managed like a pension, as President Clinton proposed, or it could reside in optional individual accounts that workers own and control.” [Americans for Prosperity Recommendations for Budget Reform, 4/08/14] Mill Received Over $2,000 from Koch Industries PAC. In 2014, Mills received $2,500 from Koch Industries PAC. [FEC, filed 7/15/14] Protested Against Outside Closed Koch Brothers Plant 193 In August 2014, Mills’ candidacy was protested at a closed Koch brothers plant in Duluth. The protesters claimed Mills was out of touch with the district. “Stewart Mills doesn’t care about that. He doesn’t care about jobs all he’s worried about is getting the money from his rich friends, letting him ruin the environment and whatever else,” said one protester about the plant’s closure. [Fox 21, 8/13/14] Headline: Group Protests Stewart Mills at Closed Plant [FOX 21, 8/13/14] Characterization Of MN-08 Economy Rejected By Economist In August 2014, Mills’ assessment of the unemployment rate was criticized. Mills claimed that the 8th District’s higher than state average unemployment, 5.8 percent, was a scandal, but economist Richard Lichty disagreed with Mills’ gloom and doom prognostications. “I think our region is doing fairly well right now by all indicators in job growth, income growth, GDP growth. All of those indicators show we are growing,” said Lichty. [Northland News Center, 8/29/14] Distanced Himself From McFadden And Chinese Steel Comments In August 2014, Mills distanced himself from Republican Senate candidate Mike McFadden’s claims that he’d build a major federal project with Chinese steel if it were cheaper. Mills claimed he would “absolutely not” use imported steel. Mills had toured the district with McFadden in the past year. [Duluth News Tribune, 8/28/14] Senior Issues Significant Findings Said “all options on the table” for social security reform Said he believed in preserving Social Security and Medicare but had to be mindful that they have “a date of insolvency” Opposed Paul Ryan’s FY15 budget proposal because he said it did not address health care issues sufficiently Mills said “all options [were] on the table” for Social Security Reform. During an October 2014 debate, he said that he believed in preserving Social Security and Medicare but that the programs had “a date of insolvency.” In 2014, he said he opposed 194 Paul Ryan’s budget proposal because it did not sufficiently address health care issues and the deficit. Said “All Options On The Table” For Social Security Reform In October 2014, Mills said that all options need to be on the table when considering Social Security reform. “After identifying the problem, we have to come together on a bi-partisan solution because we don’t need to do to social security and Medicaid, what the Democrat party has done to America with Obamacare. It has to be both houses of congress, both sides of the isle, putting all options on the table to make sure that we are able to make good on those promises to our seniors,” said Mills. [Minnesota Public Radio Debate, 10/07/14; Minnesota Public Radio, 10/07/14] October 2014 Debate: Said He Believed In Preserving Social Security And Medicare But Had To Be Mindful That They Have “A Date Of Insolvency” October 2014 Debate: Said He Believed In Preserving Social Security And Medicare But Had To Be Mindful That They Have “A Date Of Insolvency.” “Because I want to stand for what I stand for, and what I will stand for you in Washington DC. And I preserve – I believe in preserving and protecting Social Security and Medicare. But we have to be cognizant of the fact that these programs have a date of insolvency. And we can’t just keep kicking the can down the road.” [The Uptake, Debate Transcript, 10/06/14] Opposed Paul Ryan’s FY15 Budget Proposal Opposed Paul Ryan’s FY15 Budget Proposal. “He said he doesn't support the recent budget proposed by U.S. Rep. Paul Ryan, something that surprised the Nolan camp. Mills said he can't support a budget that doesn't offer a way to fix the health care economy in line with the rest of the economy. He said President Obama has refused to work with Congress, and the House and Senate need to start putting bills on his desk.” [Duluth News-Tribune, 4/20/14] 195 Tax Issues Significant Findings Found claim that the wealthy do not pay their fair share in taxes “personally offensive” Advocated for a “flatter” tax code Called for “simple and fair” flat tax Called for armed security at schools, even if it meant increasing federal taxes on firearms Said the tax code should be simple enough that you could fill out taxes “on the back of a postcard” Mills said claims that the wealthy do not pay enough taxes were “personally offensive” to him because he contributed to the community in other ways. He has also called for a flatter tax code with a “simple and fair” flat tax. Mills called for armed security at schools, even if it meant increasing federal taxes on firearms. Mills said he wanted the tax code to be simple enough that anyone could fill out their taxes “on the back of a postcard.” Found Claim That The Wealthy Do Not Pay Their Fair Share In Taxes “Personally Offensive” Found Claim That The Wealthy Do Not Pay Their Fair Share In Taxes “Personally Offensive.” In June 2013, Mills said he found the claim that the wealthy did not pay enough taxes “personally offensive.” From an event in Baxter, Minnesota: “What happened in the last couple elections, where you have folks saying that the wealthy are not paying their fair share that there are all these loopholes and they don’t pay any taxes and we have to make them pay more. Well you know what… we’ve paid all of our taxes, we reinvest the money that we make into our business. We provide jobs for people, we provide health insurance for people. We are part of this community and then beyond that we support community and civic endeavors. We donate to charity, we help with events, we do a lot of things for this community, and to be singled out as a deadbeat, is personally offensive. [Crow Wing County GOP 2nd Amendment Rally, 7/20/13] 196 Coverage of Personally Offensive Tour Headline: DFL kicks off “personally offensive” tour against GOP's Stewart Mills [Northland News Center, 8/13/14] WDIO, 8/13/14 WDIO, 8/13/14 WDIO, 8/13/14 KBJR, 8/13/14 KQDS, 8/13/14 KQDS, 8/13/14 Advocated For A “Flatter” And “Fairer” Tax Code According to his campaign website Mills said he would “fight for a flatter, simpler, fairer tax code in Washington.” [Stewart Mills for Congress, accessed 8/1/14] Flatter Tax Lowers Tax Rate for High-Income Earners In 2011, Alan Binder, former vice chairman of the Federal Reserve, wrote in the Wall Street Journal that “Eliminating the biggest deductions and exclusions is extremely unlikely, and flatter rates alone won't make the tax system any simpler. It would, however, make it far less progressive.” [Wall Street Journal, 11/14/11] Called For A “Flatter, Fairer” Tax That He Claimed Would Benefit The Middle Class. “Mills called for a ‘flatter, fairer’ tax that he said would be simple and fair and benefit the middle class. He faulted Nolan for backing the Obama administration's Affordable Care Act and for his support for a single-payer universal health care system. Mills also touted his endorsement from the National Rifle Association and noted that the NRA gave Nolan an ‘F’ rating. ‘Representative Nolan talked about common sense solutions,’ Mills said. ‘I hope that single-payer government-run health care is not a common-sense solution to what we have to do with our health care economy.’” [Associated Press, 10/07/14] Called For “Simple And Fair” Flat Tax In October 2014, Mills supported a “flat tax that would be simple and fair and benefit the middle class,” though he declined to offer details on his tax plan. [MPR News, 10/07/14] 15% Rate Would Give the Richest One Percent a $391,330 Tax Cut Recently, Presidential Candidate Newt Gingrich proposed to change the personal income tax by introducing a “flat tax” that is described as having a single rate at 15 percent. “Former House Speaker 197 Newt Gingrich’s $18.1 trillion tax plan would give the richest one percent of Americans an average tax cut of $391,330, which would be over 190 times as large as the average tax cut of $1,990 that the middle fifth of Americans would receive.” [Center for Tax Justice, 1/06/12] Flat Tax Raises Taxes On Middle Class to Cut Taxes for Rich According to Citizens for Tax Justice the flat tax, “…would dramatically shift the tax burden away from the wealthy--and onto the middle class and the poor.” [Citizens for Tax Justice testimony before the Joint Economic Committee, 5/17/95] Flat Tax Would Shift Burden from Rich to Non Rich According to a report by the Economic Policy Institute, lower tax rates for the wealthy under a flat tax will have to be financed by some combination of higher taxes on the middle class and larger budget deficits. A flat tax that raises the same revenues as our current tax code would shift a significant portion of the tax burden from the rich to average workers. According to Citizens for Tax Justice, under a flat tax, the fortunate few with incomes above $200,000 will see their taxes fall by an average of $53,940. [Falling Flat: The Dubious Case for a Flat Tax, Economic Policy Institute, 1/17/96] Said His Family Got Their Hands Dirty And Claimed A Flax Tax Would Help Main Street Said His Family Got Their Hands Dirty And Claimed A Flax Tax Would Help Main Street. “Mills defended his company and family, saying they work hard and play hard and building the business meant their hands got dirty and even ‘a little bit bloody sometimes.’ Mills said he favored flattening the tax code to be friendlier to Main Street.” [Star Tribune, 10/08/14] Claimed He “Never” Called For A Tax Break For The Wealthy According to Mills website, “Stewart has never once called for a tax break on the wealthy.” [Stewart Mills for Congress, accessed 8/01/14] Called For Armed Security at Schools, Even If It Meant Increasing Federal Taxes On Firearms In Mills’ video letter to Congressman Rick Nolan and Senators Franken and Klobuchar on gun control legislation, he called for armed security at local schools, even if it meant increasing federal taxes on firearms to finance the measure. From his video: “So what’s the solutions, we need to put armed security in every school and fund that price tag. We have to stop putting things on our credit card and mortgaging our children’s future to China. The ATF collects approximately $ 24 billion a year in excise fees. If we need to increase the 11% ATF excise fee on firearms to 15% or whatever to pay for it, we need to do that. We need to stop guarding our banks and our sports stadiums better than we guard our children. There’s only so much money out there. We need to reform certain institutions and the way that we collect taxes. We need to balance our priorities to get them straight. The priority should be the security of our children. Locally here, in the Brainerd Lakes area, we have an excellent law enforcement program. However, we 198 graduate more candidates than there are law enforcement positions for. I believe we should take the reallocated funds and distribute it to local law enforcement to hire security police to guard the doorways and hallways of our local schools.” [Youtube, emphasis added, posted 1/10/13] Criticized Government for Increasing Taxes In June 2013, Mills criticized the government for increasing taxes. [Legal Ledger, 6/05/13] Said Tax Code Should Be Simple Enough That You Could Fill Out Taxes “On The Back Of A Postcard” Said Tax Code Should Be Simple Enough That You Could Fill Out Taxes “On The Back Of A Postcard.” “On the issue of taxes, Mills called for a simpler tax code -- one ‘so simple you could fill it out on the back of a postcard,’ he said.” [The Pine Journal, 10/09/14] 199 Trade Issues Significant Findings Refused to respond to direct question about his position on the Trans-Pacific Partnership, called TPP “a non-issue” When asked if he did not want to talk about TPP during the campaign, he said “I don't want to talk about issues that have nothing to do with moving this district forward” Questioned whether Rep. Nolan had read the entire TPP deal and said he was undecided on whether or not to support it 2014: Said he would not vote to reauthorize the Export-Import Bank Did not take a position on the Trans-Pacific Partnership; said he had not read it yet Said China was cheating by subsidizing their workforce In February 2016, Mills refused to respond to a direct question about his position on the Trans-Pacific Partnership during a TV interview. He said TPP was a “non-issue” and “dead on arrival” because it would not be brought to a vote. When asked directly if he simply did not want to discuss TPP during the campaign, he responded by stating that he did not want to talk about issues that had “nothing to do with moving … [the] district forward.” Mills also insisted that KKR’s stance on TPP would not impact his position on the issue. In November 2015, he questioned whether Rep. Nolan had read the entire deal and said he was undecided on the issue. Mills said he would not vote to reauthorize the Export-Import Bank. He also has not taken a position on the Trans-Pacific Partnership saying that he had not read the agreement yet. February 2016: Refused To Respond To Direct Question About His Position On The Trans-Pacific Partnership; When Asked If He Did Not Want To Talk About TPP During The Campaign, He Said “I Don't Want To Talk About Issues That Have Nothing To Do With Moving This District Forward” February 2016: Refused To Respond To Direct Question About His Position On TPP; When Asked If He Did Not Want To Talk About TPP During The Campaign, He Said “I Don't Want To Talk 200 About Issues That Have Nothing To Do With Moving This District Forward.” “‘Do you just not want to talk about the TPP in this campaign?’ asked Minock. ‘Well, I don't want to talk about issues that have nothing to do with moving this district forward,’ said Mills.” [Northland News Center, 2/07/16] Called TPP A “Non-Issue” And Said It Was “Was Dead On Arrival” Because It Would Not Get A Vote. “KDLH's Nick Minock sat down with Mills to get answers. ‘They (U.S. Senators) are not going to vote on it. So, it's a non issue. The TPP is dead on arrival,’ said Mills.” [Northland News Center, 2/07/16] Said He Was “Hesitant To Give … A Direct Answer” On TPP. “‘KKR - the company that bought Mills Fleet Farm - I was looking on their website and they support the Trans Pacific Partnership. Does that impact your view of the TPP at all?’ asked Minock. ‘I have looked, first of all, I am making up my own mind and in Washington D.C., I will read the agreements and the bills that I vote on and that is why I'm hesitant to give you a direct answer,’ said Mills.” [Northland News Center, 2/07/16] Said KKR’s Support Of TPP Would Not Affect His Position On The Issue. “‘So are you saying KKR or Ford Motor Company - their decision on policy isn't going to impact your decision on this issue?’ asked Minock. ‘Absolutely not. It will not impact my position on this issue,’ said Mills. Congressman Rick Nolan is against the Trans Pacific Partnership. Nolan is concerned that the TPP would cost the United States jobs, just like NAFTA did.” [Northland News Center, 2/07/16] Faced Pressure To Provide An Answer On His Specific Position On TPP. “The Trans Pacific Partnership continues to be one of the biggest issues in the Stewart Mills Rick Nolan rematch. On Saturday, the Republican Party endorsed Mills in McGregor. Now that Mills has secured the GOP's backing, he is facing more questions on where he stands on the TPP. It's a trade agreement that has many on the Iron Range concerned for their jobs.” [Northland News Center, 2/07/16] November 2015: Questioned Whether Rep. Nolan Had Read The Text Of The TPP Deal “In Its Entirety,” Said He Was Undecided On Whether Or Not To Support It November 2015: Questioned Whether Rep. Nolan Had Read The Text Of The TPP Deal “In Its Entirety,” Said He Was Undecided On Whether Or Not To Support It. “Fleet Farms executive Stewart Mills (R) said he still hasn’t finished reading the Trans-Pacific Partnership’s text and hasn’t decided whether he supports it or not. He also questioned whether Rep. Rick Nolan (D) has actually read it in its entirety. ‘I don’t believe he has fully read every word of that bill,’ Mills said.” [National Journal, 11/30/15] 2014: Said He Would Vote Against Reauthorizing The Export-Import Bank; Claimed That Its Loans Had Been “Detrimental To Job Growth” 2014: Said He Would Vote Against Reauthorizing The Export-Import Bank; Claimed That Its Loans Had Been “Detrimental To Job Growth.” “Stewart Mills, who is challenging Democratic Rep. Rick Nolan in Minnesota's competitive 8th District, pointed to the Caterpillar sale and said he wouldn't vote to reauthorize the Export-Import Bank in its current form because ‘its loans have at times been detrimental to job growth’ in the region.” [Politico, 7/13/14] 201 Minnesota 8th District Exports Over $120 Million Worth of Products According to the Export-Import Bank of the United States, the Minnesota 8th Congressional District exports $120,351,054 worth of products. [Export-Import Bank of the United States, 9/15/14] 3,800 Jobs Displaced in the 8th District due to the U.S. Trade with China According to a 2012 Economic Policy Institute chart 3,800 jobs have been displaced due to trade with China. [Economic Policy Institute, 2012] Table: Exporter City Districts A.S.V Inc. Grand Rapids 8 Baby Elephant Ears Inc. Cambridge 8 Bay Side Recycling Corporation Duluth 8 Bendtec Inc Duluth 8 Cirrus Design Corporation Hermantown 8 Concrete Pump Repair North Branch 8 Electric Power Door, A Div. Of Broncho Company Hill Wood Products, Inc. Hibbing 8 Cook 8 Ikonics Corporation Duluth 8 Iracore Hibbing 8 Product Total Shipments Machinery Manufacturing and Sales Administrative, Management and Support Services Other Misc Mfg and Sales of Non Capital Equipment Fabricated Metal Product Manufacturing and Sales Transportation Equipment Manufacturing and Sales Machinery Manufacturing and Sales Fabricated Metal Product Manufacturing and Sales Wood Product Manufacturing and Sales Chemical Manufacturing and Sales Plastics and $8,761,819 Total Export Value $8,761,819 $194,638 $194,638 $8,760,028 $8,760,028 $42,300,000 $55,750,000 $1,497,658 $1,721,179 $400,484 $449,750 $1,273,154 $1,273,154 $3,733,434 $3,733,434 $1,641,014 $1,641,014 $36,353,347 $36,353,347 202 International, Llc Rosenbauer Holdings Inc Total: Wyoming 8 Rubber Products Mfg and Sales Group 2 $697,199 $1,712,691 $105,612,775.00 $120,351,054.00 [Export-Import Bank of the United States, 9/15/14] 2013: Export-Import Bank Awarded $694 Million Loan To Roy Hill Mine In Australia For American Made Equipment 2013: Export-Import Bank Awarded $694 Million Loan To Roy Hill Mine In Australia For American Made Equipment. “A massive new Australian iron ore mine will get a $694 million loan from the Export-Import Bank of the U.S. under a deal approved Thursday morning in Washington that some say could cost jobs on Minnesota’s Iron Range. The bank’s board of directors gave final approval to the loan for Australia’s Roy Hill mine, with the money going to buy U.S.-made bulldozers and trucks from Caterpillar, locomotives from General Electric and drilling rigs from Copco. The deal was praised Thursday as an effort to bolster 3,400 U.S. manufacturing jobs and U.S. exports for mining equipment that, if not for the loan, otherwise might be purchased from China, Japan or Korea.” [Pioneer Press, 12/19/13] Minnesota Mining Companies And Legislators, Including Rep. Nolan, Opposed The Loan Because It Could Harm American Mining And Iron Companies. “But the loan, first reported by the News Tribune in August, has been strongly criticized by Minnesota mining interests and some members of Congress who say it’s helping an Australian mine gain a foothold in the global iron ore trade that could hurt Minnesota jobs. Because the Australian ore probably will go to Asian steel mills, Minnesota officials fear that additional Asian steel someday will displace U.S.-made steel, and that will cut demand for Minnesota taconite and could threaten jobs on the Iron Range. Minnesota U.S. Rep. Rick Nolan and Sens. Amy Klobuchar and Al Franken, all Democrats, wrote letters urging the Export-Import Bank to deny the loan, as did Michigan lawmakers, all to no avail.” [Pioneer Press, 12/19/13] Roy Hill Mine Was Projected To Produce More Iron Ore Than All American Mines. “The loan, which received preliminary approval in November, has been especially criticized by Cliffs Natural Resources, the Cleveland-based mining company that operates three taconite iron ore mines in Minnesota and one in Michigan. The Roy Hill project in Australia’s outback is so big and so remote that entire new cities, ocean ports, roads, an airport and a 220-mile railroad are being built for a single mine that annually will produce 55 million tons — more iron ore than all U.S. mines combined. The project is owned by billionaire Gina Rinehart, the richest person in Australia.” [Pioneer Press, 12/19/13] Iron Ore Companies Worried That Roy Hill Could Eliminate $600 Million In American Iron Ore Exports And $1.2 Billion In Domestic Sales. “Cliffs officials had said Roy Hill will ‘substantially injure U.S. iron ore producers’ by pushing down the global price of iron ore by increasing the supply of iron ore. Cheaper ore to Asia probably will displace any potential North American ore sales to Asia. But it also means cheaper Asian steel that could displace U.S.-made steel, further reducing demand for Minnesota ore. Cliffs estimated Roy Hill’s output would displace nearly 203 $600 million of U.S. iron ore exports and cause a reduction of about $1.2 billion in U.S. domestic sales. The United Steelworkers Union joined Cliffs, some domestic steel producers in opposing the loan.” [Pioneer Press, 12/19/13] Caterpillar Argued That The Loan Would Create American Jobs To Manufacture The Equipment. “Caterpillar said the $694 million contract to provide giant haul trucks, bulldozers, lift shovels and more is a huge contract that will spur jobs in places such as Decatur, Aurora and East Peoria, Ill., and Milwaukee.” [Pioneer Press, 12/19/13] Mills Wrote An Op-Ed Entitled “Create And Protect Jobs” Addressing His Opposition To The Export-Import Bank. [Mesabi Daily News, Mills Op-Ed, 10/27/15] Criticized Export-Import Bank For Awarding Roy Hill Mine The Loan And Rep. Nolan For Supporting The Bank; Said The Loan Would Result In Job Losses On The Iron Range. “Sadly, when the Roy Hill Mine is fully operational it will supply more iron ore product than all of Minnesota’s production combined. Further injuring our economy, Roy Hill Mine then ships its product to China. Leading to the mass production of inferior foreign steel. This in turn leads to why so many of our miners are laid off or insecure about their jobs. The EXIM Bank and their deal with Roy Hill Mine hurts the Iron Range, yet Congressman Nolan shows zero concern for the damage it does. He recently doubled down on his support for the bank.” [Mesabi Daily News, Mills Op-Ed, 10/27/15] Said The Iron Range Had “Paid With Jobs” For The Bank’s Decision To Support The Roy Hill Mine. “The EXIM Bank supports .01 percent of all U.S. businesses, leaving the other 99.9 percent of businesses and their employees paying for it. That is the case with the Roy Hill mining deal, and the Iron Range paid with jobs. Congressman Nolan is out of step with our district and doesn’t understand how our economy works. He supports an organization that continues making bad trade deals and contributes to layoffs on the Iron Range.” [Mesabi Daily News, Mills Op-Ed, 10/27/15] Said The Bank Was “Bad Trade Policy” And Vowed Not To Support It; Said He Would Advocate For A “Robust Enhanced Trade Remedy Law.” “EXIM Bank is bad trade policy. It costs jobs, it costs taxpayers billions, and it threatens our way of life in Minnesota. As your congressman, I vow to never support trade deals like that. In Congress, I will vote against any deals that will hurt Minnesota jobs. I will also strongly advocate for a robust Enhanced Trade Remedy Law.” [Mesabi Daily News, Mills Op-Ed, 10/27/15] Said China Was Cheating By Subsidizing Their Workforce Said China Was Cheating By Subsidizing Their Workforce. “In distancing himself from McFadden, Mills is putting at arm's length a candidate with whom Mills has toured the district in the past year. When asked if he would use Chinese steel on something such as Enbridge Energy's proposed 610-mile Sandpiper project across Minnesota, Mills was unequivocal. ‘Absolutely not,’ said the 42-year-old candidate. ‘First of all, they're manipulating their currency. Second of all, it's a communist country that is directly subsidizing their workforce. So how can you compete on a level playing field? Why would we ever want to reward them for cheating?’ Mills’ has come out in favor of PolyMet and other mining projects throughout his campaign, which began in 2013.” [Duluth News-Tribune, 8/29/14] 204 Women’s Issues Significant Findings Touted participation in a mile-long walk where he wore high heels to support efforts combatting violence against women on social media and a campaign ad Mills has touted his participation in the In Her Shoes walk, which helps efforts to combat violence against women. He sports high heels during the walk and footage from his participation was featured in a 2014 campaign ad narrated by his wife. Touted His Participation In A Mile Long Walk Where He Wore High Heels To Support Efforts Combatting Violence Against Women On Social Media And A Campaign Ad In July 2011, Mills walked one mile in women’s high heels to protest rape, sexual assault and gender violence. From the Brainerd Dispatch: [Brainerd Dispatch, 7/20/11] Also Participated In The Race In 2015. [Facebook, 8/17/15] 205 2014 Campaign Ad Entitled “In Her Shoes” Narrated By His Wife Touted His Participation In The Walk Heather Mills Praised Her Husband For Participating In The “In Her Shoes” Event; Said He Was “A Guy’s Guy.” [YouTube, 6/25/14] 206 Appendix I – Campaign Finance Items of Interest Accepted $360, 950 from PACs from 2013 to 2014 John Boehner spoke at a fundraiser for him in August 2014 January 2016: said he had raised more than $250,000 and that most of his donors were from Minnesota Raised more than $2 million, gave $360,000 to his own campaign in 2014 Said he was prepared to “put more in” for his 2016 campaign and would do what it takes to win Received $10,000 from the Koch Brothers During his 2014 campaign, Mills received $6,600 from political action committees and $932,494 in individual contributions. Mills ended up giving his own campaign $360,000 in 2014 and raised over $2 million. He said he was prepared to “put in more” for his 2016 campaign and would do what it takes to win. In January 2016, he reported raising over $250,000 for his 2016 campaign and said most of his donors were from Minnesota. January 2016: Said He Had Raised More Than $250,000 And That Most Of His Donors Were From Minnesota January 2016: Said He Had Raised More Than $250,000 And That Most Of His Donors Were From Minnesota. “Republican Stewart Mills says he is starting his campaign for Congress this year on a strong note. We sat down with Mills just ahead of the candidate's announcement of his fundraising total for the end of last year. In about three months, Mills says he raised over $250,000 for his campaign against Democratic Congressman Rick Nolan. ‘Fundraising is going very good because people are really responding to our message. And a lot of it, most of it, is in the state of Minnesota - in our part of Minnesota,’ Mills said. ‘And it's a lot of small dollars donations, too. But there are also people who are making some big investments, too.’” [Northlands News Center, 1/25/16] February 2016: Contributed $11,000 To His Campaign 207 February 2016: Contributed $11,000 To His Campaign. “Wealthy Minnesota businessman Stewart Mills is making a second attempt to unseat the Democratic congressman who defeated him by a point and a half in 2014. Mills' 4th-quarter fundraising report shows him raising $258,000 for his bid for the 8th District. That's more than Rep. Rick Nolan's $187,000, even excluding Mills' $11,000 contribution to his own campaign. Nolan still has some $400,000 more in the bank.” [CQ News, 2/03/16] 2015: Family Members Contributed $10,800 To His Campaign 2015: Family Members Contributed $10,800 To His Campaign. [FEC, accessed 2/18/16] Name Charles H. Mills Sandra R. Mills Sandra R. Mills Heather Mills Total Date 12/21/15 12/18/15 11/23/15 9/23/15 Amount $2,700 $2,700 $2,700 $2,700 $10,800 [FEC, accessed 2/18/16] 2014: Family Contributed Authorized Maximum Individual Amount to Campaign According to Mills’ October quarterly report, Mills’ family, which included his wife, sister, mother, father, grandfather, and other relatives contributed heavily to his campaign. Below is a table outlining these contributions: Name Andrew Mills Charles H. Mills Nancy Mills Henry Mills Andrew Mills Andrew Mills Andrew Mills Travis D. Mills Travis D. Mills Henry C. Mills Henry C. Mills Sandra R. Mills Sandra R. Mills Marisa Mae Mills Marisa Mae Mills Heather Mills Heather Mills Total Date 10/29/14 8/01/14 2/22/14 1/31/14 1/21/14 12/18/13 11/18/13 9/30/13 9/30/13 9/23/13 9/23/13 9/06/13 9/06/13 7/18/13 7/18/13 7/01/13 7/01/13 Amount $2,600 $2,600 $2,600 $5,000 $120 $120 $120 $2,600 $2,600 $2,600 $2,600 $2,600 $2,600 $2,600 $2,600 $2,600 $2,600 $39,160 [FEC, accessed 2/18/16] 208 From 2013 to 2014, Mills received $932,494 in individual contributions. [FEC, 2014 Friends of Stewart Mills] PAC Contributions From 2013 to 2014, Mills received $360, 950 in PAC contributions. [FEC, 2014 Friends of Stewart Mills] Notable PAC Contributors include: Name Koch Industries Inc PAC Koch Industries Inc PAC Koch Industries Inc PAC NRA Political Victory Fund NRA Political Victory Fund Tea Party Express PAC American Bankers Association PAC American Bankers Association PAC American Bankers Association PAC American Bankers Association PAC Blue Cross and Blue Shield Association PAC Exxon Mobil Corp PAC Halliburton PAC Date 9/23/14 8/1/14 6/30/14 9/23/14 7/22/14 10/1/14 10/27/14 10/13/14 8/4/14 6/10/14 11/12/13 7/30/14 11/6/14 Amount $5,000 $2,500 $2,500 $4,950 $4,950 $5,000 $2,000 $1,000 $1,000 $2,000 $1,000 $5,000 $1,000 [FEC, 2014 Friends of Stewart Mills] Party Committee Contributions From 2013 to 2014, Mills received $6,600 in party committee contributions. Name Aitkin County Republican Committee Aitkin County Republican Committee Wadena County Republican Party Wadena County Republican Party Cass County Republicans 8th Congressional District Republican Party of MN Date 10/17/14 10/17/14 10/10/14 10/8/14 10/1/14 4/14/14 Amount $200 $200 $500 $500 $500 $5,000 [FEC, 2014 Friends of Stewart Mills] 2014: Spent $2,083,131 In Operating Expenditures According to Mills’ FEC reports, his 2014 campaign had $2,083,131 in operating expenditures. Paid Law Firm $7,134.71 209 According to Mills’ October quarterly report, Mills’ campaign paid $7,134.71 to a Minnesota law firm, Larkin Hoffman Daly & Lindgren Ltd. [Mills October Quarterly Report, FEC, filed 10/15/13] 2014: Received Contributions From PACs Belonging To Steve Scalise, Mitch McConnell, And Darrell Issa Received Contributions From PACs Belonging To Steve Scalise, Mitch McConnell, And Darrell Issa. “During April, May and June, Eighth Congressional District candidate Stewart Mills III attracted contributions from the leadership PACs of new House Majority Whip Steve Scalise of Louisiana, Senate Minority Leader Mitch McConnell of Kentucky, House Ways and Means Committee Chairman Dave Camp of Michigan, House Oversight and Government Reform Committee Chairman Darrell Issa of California and Cathy McMorris Rodgers of Washington, chair of the House Republican Conference.” [Star Tribune, 7/20/14] John Boehner Spoke At A Fundraiser For Him In August 2014 John Boehner Spoke At A Fundraiser For Him In August 2014. [Lakeland News, 8/14/14] Mills Said Boehner Would Help Bring Attention To His Message. [Lakeland News, 8/14/14] Press Was Not Allowed At The Fundraiser; Tickets Ranged From $250 To Over $10,000. [Lakeland News, 8/14/14] Raised Over $2 Million, Gave His Own Campaign $360,000 In 2014; Said He Was Prepared To “Put More In” For His 2016 Campaign Gave His Own Campaign $360,000 In 2014; Said He Was Prepared To “Put More In” For His 2016 Campaign. “In 2014, the Minnesota 8th District race cost $17 million, with much of the money coming from outside groups. Mills raised more than $2 million for his campaign, $360,000 of which he lent his own campaign. ‘We're prepared to put more in,’ he said.” [Pioneer Press, 10/13/15] Mills: “I'm Going To Do What It Takes. I'm Not Going To Go Through Everything I Went Through Last Time To Lose By 1.4 Percent” Mills: “I'm Going To Do What It Takes. I'm Not Going To Go Through Everything I Went Through Last Time To Lose By 1.4 Percent.” “According to personal financial disclosure documents he filed last year, his net worth is between $34 million and $115 million. He laughed when asked whether he would invest millions in his rerun but said: ‘I'm going to do what it takes. I'm not going to go through everything I went through last time to lose by 1.4 percent.’” [Pioneer Press, 10/13/15] 210 Appendix II – Paid Media Summary This was all the paid for the 2014 election cycle. Friends of Stewart Mills Friends of Stewart Mills: “Obamacare” 5/15/14 You can view ad: Here Mills: I’m Stewart Mills. My family operates Mills Fleet Farm. Mills: As a teenager I worked here stocking shelves, then I got promoted to mopping floors. Mills: Now I run the health care program for a thousand of our employees and their families. Mills: Every day I see how Obamacare is hurting small businesses and the middle class, as your Congressman I’ll replace it. Mills: I’m Stewart Mills I approved this message, because we need to grow the middle class and get Minnesota backed to work. Friends of Stewart Mills: “Hunting Camp” 6/5/14 You can view ad: Here Mills: I’m Stewart Mills. I guess I don’t look like a typical politician so people always ask me why I am running for Congress. Mills: It starts with my families hunting camp doctrine, if you complain about something, you get the job to fix it. Mills: Well I’m fed up with Washington, the bickering, the debt, Obamacare. Mills: Instead of complaining, I’m going to fight to fix it. Mills: I’m Stewart Mills and I approved this message, because this hunting camp can teach Washington a thing or too. Friends of Stewart Mills: “In Her Shoes” 6/24/14 You can view ad: Here Heather Mills: I’m Heather Mills. My husband Stewart is a guy’s guy. He loves to hunt and you can’t keep him away from the outdoors. 211 Heather Mills: But Stewart as a big heart too. Every year he participates in the walk a mile in her shoes event. Heather Mills: My husband puts on pink heels to raise money for victims of domestic violence. It’s one of the strongest things he does. Heather Mills: In Congress, Stewart will stand up for what’s right Heather Mills: I’m Stewart Mills and I approved this message. Friends of Stewart Mills: “2nd Amendment” 7/9/14 You can view ad: Here Mills: I’m Stewart Mills and I’m a lifelong hunter, but the Second Amendment isn’t just about recreation, first and foremost it’s about protecting our liberties. Mills: Far too many politicians in Washington have no respect for the second amendment. Rick Nolan is one of them. Mills: Around election time, Rick will put on his hunter’s orange and grab a rifle, but in Washington he’s repeatedly voted to take away your rights. Mills: I’m Stewart Mills, I approved this message, because I’ll defend the Second Amendment always. Friends of Stewart Mills: “Salmon Cheese Catfish” 9/02/14 You can view ad: Here Mills: Rick Nolan’s DC friends are attacking me with flat-out lies. Mills: Their ads are so blatantly false that TV stations have refused to air them. Mills: I could take Rick Nolan’s words out of context too… Nolan Videos Cut Together: My name is Rick van Winkel and I’m putting an end to salmon cheese catfish. Mills: …But I’m not going to be stooping to their level. Mills: We deserve better than Rick Nolan and his DC friends. Mills: That’s why I’m running for Congress. I’m Stewart Mills and I approve this message. Friends of Stewart Mills: “Minnesota Way – Duluth” – 9/04/14 212 You can view the ad: Here V/O: Stewart Mills is running for Congress to defend our Minnesota way of life, stand up for middle class families, and create better paying jobs on the Iron Range. V/O: Mills will fight back against the special interests and stop DC politicians like Rick Nolan from mortgaging our kids’ futures. V/O: Here’s Stewart Mills: Mills: Duluth is a long way away from Washington. Here, we value hard work, honesty, and integrity, and we don’t spend money we don’t have. Mills: But in Washington, it’s a whole different story. Politicians spend endlessly and put their own interests ahead of us, the people. V/O: Washington politicians, like Rick Nolan, have failed us. Stewart Mills will shake up Congress, create jobs, and put middle class families first. Mills: The hunting camp doctrine says if you complain about something, you get the job to fix it. Mills: I’m Stewart Mills, I’m running for Congress, and I approve this message, because I’m fed up with Washington, and I’ve decided to do something about it. V/O: Paid for by Friends of Stewart Mills, Inc. Friends of Stewart Mills: “Minnesota Way” 9/04/14 You can view the ad: Here V/O: Stewart Mills is running for Congress to defend our Minnesota way of life, stand up for middle class families, and create better paying jobs. V/O: Mills will fight back against the special interests and stop DC politicians like Rick Nolan from mortgaging our kids’ futures. V/O: Here’s Stewart Mills: V/O: In Minnesota, families work hard, play by the rules, and pay their bills. That’s the Minnesota way. V/O: But it’s not how they do things in Washington. Politicians like Rick Nolan waste our tax dollars, borrow from China, and mortgage our kids futures to spend even more. That’s the Washington way. V/O: Washington politicians, like Rick Nolan, have failed us. Stewart Mills will shake up Congress, create jobs, and put middle class families first. 213 Mills: I’m Stewart Mills, I’m running for Congress, and I approve this message, because in Congress, I’ll live by the hunting camp doctrine, and leave the campsite better than I found it. V/O: Paid for by Friends of Stewart Mills, Inc. Friends of Stewart Mills: “Gladys” 9/04/14 You can view the YouTube: Here Eschenbacher: My name is Gladys Eschenbacher. I’ve lived in Crow Wing County for over 70 years. Eschenbacher: I am concerned with Rick Nolan’s position on my second amendment rights. Eschenbacher: I own a .32 caliber Colt pistol and have for many years. I have my permit to carry and intend to do so for as long as possible. Eschenbacher: My husband and I, we travel a lot, and when we do, this lets us feel safe and secure. Eschenbacher: When Rick Nolan was in Congress, he said he would vote to ban firearms such as this, meaning I could not buy one nor could I own this one. Eschenbacher: Rick Nolan is not supporting my second amendment rights, and I don’t think he’s supporting yours. Mills: I’m Stewart Mills. I approve this message because I’ll defend the second amendment always. Friends of Stewart Mills: “Steve” 9/10/14 You can view the ad: Here Steve: I’ve been a steelworker with Local 6115 for six and a half years Steve: People in the Iron Range are a highly trained workforce. They know how to put a good day’s work in for an honest day’s pay. We can get the job done. We just need the opportunity to work. Steve: Working Class Minnesotans are paying the price for the failures in Washington. Rick Nolan doesn’t have any sense of what’s going on in northern Minnesota. Steve: Since Rick Nolan’s been elected, I haven’t seen him once in the Iron Range. He’s gone to Washington. He’s part of the problem. Job’s aren’t being created. The wages aren’t going up. People are having a hard time paying the bills. [Middle Class Families Squeezed as Expenses Soar, Wages Stall, Washington Post, 4/26/14] Steve: It’s not about Democrats or Republicans anymore. It’s about our jobs and about our way of life. Look past the party, and start looking at candidates. 214 Steve: Look at people like Stewart Mills. Stewart Mills is going to fight for the working class people here in Minnesota. Steve: If you like the direction the country is headed, you can vote for Rick Nolan. If you want a change in this country, and you want to create jobs, and you want to see less red tape from Washington, then you can vote for Stewart Mills. Mills: I’m Stewart Mills, and I approve this message. Friends of Stewart Mills: “Double Talk” 9/25/14 You can view the ad: Here V/O: The Iron Range needs jobs, but Rick Nolan only give us D.C. double talk on creating mining jobs. V/O: And Nolan voted for job destroying EPA regulations that will drive up energy cost for Minnesota families. V/O: Stewart Mills will stand up to the EPA and get the Polymet mine built. V/O: Mills has spent his life creating good jobs in Minnesota. We can trust Stewart Mills to fight for middle class families Mills: I’m Stewart Mills, I’m running for Congress, and I approve this message, because in Congress, I’ll live by the hunting camp doctrine, and leave the campsite better than I found it. Mills: I’m Stewart Mills, and I approve this message. Friends of Stewart Mills: “Sarah’s Story” 10/07/14 You can view the ad: Here Woman: I have 3 kids. My family lost our health insurance because of Obamacare. We were told if you would like to keep your health insurance you will be able to and that turned out to be a lie. Woman: I feel like our family has paid the price for the lies of Obamacare. And the fact that Rick Nolan thinks that Obamacare did not go far enough is very offensive. Woman: Rick Nolan is out of touch with the average American and family. It is time for someone new. Friends of Stewart Mills: “Chops” 10/10/14 You can view the ad: Here Mark Bateman: I’ve known Stewart Mills for 30 years. Those ads attacking Stewart’s hair are pretty funny. I’ve been busting his chops about that for years. 215 Bateman: But the rest if Rick Nolan’s attacks? Ridiculous. Bateman: Attacking Stewart Mills for helping lead a business that created thousands of good jobs for people like me is stooping pretty low. Bateman: Stewart Mills works hard and gets results, and we sure could use more of that in Washington. Mills: I’m Stewart Mills and I approved this message. Friends of Stewart Mills: “Working Class” 10/20/14 You can view the ad: Here Dwight Behn: My name is Dwight Behn. I’ve known Stewart Mills for more than 20 years. Behn: Stewart cares about families here, works hard, and gets results. We could use more of that in Washington. Behn: Rick Nolan has voted for more debt and higher taxes, putting the Washington special interests first. [Star Tribune, 2/11/14; AP, 4/7/14] Behn: Nolan and his DC friends have forgotten about who makes this country great – workers like us at Mills Fleet Farm. Behn: We’ll be better off with Stewart Mills in Congress. Mills: I’m Stewart Mills, and I approve this message. Friends of Stewart Mills: “Values” 10/27/14 You can view the ad: Here Mills: I’m Stewart Mills. Minnesota is my home. It’s where I learned to play hockey, hunt and fish growing up. Mills: And it’s where I swept floors and stocked shelves at our family’s store. Mills: The values I learned then are the values Heather and I are teaching our kids today: hard work, honesty, accountability, and those are the values I’ll take to Washington. Mills: Working every day to help families here in Minnesota. Mills: I’m Stewart Mills, and I approve this message because I’d appreciate your vote. Friends of Stewart Mills: “Apologize” 10/13/14 You can view the ad: Here 216 Mills: It seems Rick Nolan has based his campaign on attacking me for having long hair and a family that started a successful business. Well I don’t apologize for either one. Mills: But politicians like Rick should apologize for using our tax dollars to make themselves and their friends even richer. Raising their own pay, sending our tax dollars to Wall Street bankers, and trade deals that reward outsourcers, while killing Minnesota jobs. Mills: I’m Stewart Mills and I approve this message, because I’m on your side, not theirs. Nolan for Congress Nolan for Congress: “The Right Way” 8/27/14 You can view ad: Here Nolan: Washington can’t seem to see it, but we sure do in Minnesota. Stop wasting taxpayer dollars on so-called nation building overseas, and other programs that don’t work. Fix those that do. Nolan: But when it comes to Social Security and Medicare, seniors have earned it. We’ve got to protect it. Nolan: I’m Rick Nolan, and I approve this message, because we’ve got to balance the budget, but we’ve got to do it the right way. Nolan for Congress: “Struggle” 9/13/14 You can view the ad: Here Patty: It's hard work but I feel good about it at the end of the day. I'll never understand multi-millionaires like Stewart Mills. He doesn't know what it's like to work for minimum wage and try to figure out how to pay your bills. Patty: He's offended when he's asked to pay his fair share, but opposed to raising the minimum wage. Patty: Rick Nolan, he understands what people go through. Patty: That the minimum wage needs to be raised. That women should get equal pay for equal work. Patty: Rick just gets it. Nolan for Congress: “Cares” 9/28/14 You can view the ad: Here 217 Phil: I served in the Navy. The USS Reuben James. Your body takes a beating. There isn’t a VA hospital within 60 miles. Phil: When I had a heart attack, they flew me from Onamia, Minnesota, to St. Cloud Hospital. Phil: The government stuck me with a thirteen thousand dollar bill -- for the flight. Phil: I contacted Rick Nolan -- and he made the government do what’s right. Phil: Now he’s working to give vets care closer to home. Phil: I'm a Republican. But I'm for Rick Nolan. 'Cause he cares about veterans a lot. Nolan for Congress: “Bickering and Gridlock” 10/09/14 You can view the ad: Here V/O: While some choose bickering and gridlock, Minnesota’s Rick Nolan works across party lines to get something done. V/O: Praised for the influence he is wielding, Nolan passed legislation to boost Great Lakes shipping. And mandated all energy pipelines built here cont 100 percent American steel. Nolan: It’s time to stop the so-called nation building abroad and start reinvesting in America. Nolan for Congress: “It Happened Here” 10/21/14 You can view the ad: Here V/O: It happened here in Duluth. The New York billionaire Koch Brothers closed their plant, outsourcing over 100 jobs. V/O: They’ve spend over $200,000 trying to elect Stewart Mills to Congress. Why? V/O: Because Mills promised to protect their special tax breaks for corporations shipping jobs overseas. V/O: Rick Nolan fought to end tax breaks for outsourcing corporations and mandate all pipeline built here contain American steel. Nolan for Congress: “Right Here” 10/25/14 You can view the ad: Here Nolan: It seems like all my opponent wants to do is run a smear campaign. Talk about how he’s opposed to raising the minimum wage, and he’s personally offended when millionaires like himself are asked to pay their fair share. 218 Nolan: Here’s what I think we should do. Creat good paying middle class jobs, and end nation building overseas so we can rebuild right here in America. Nolan: I’m Rick Nolan and I approve this message, to rebuild the middle class. DCCC DCCC: “Cost” 9/16/14 You can view the ad: Here V/O: It costs a lot to get this look. V/O: Lucky for Stewart Mills the third, he inherited millions and a job with a six-figure salary. V/O: But that’s not enough for Mills. So he’s running for Congress to give millionaires like himself another big tax break. V/O: Even as he opposed tax cuts for nearly everyone else. V/O: Stewart Mills is looking out for himself, costing you more. V/O: The Democratic Congressional Campaign Committee is responsible for the content of this advertising. DCCC: “Big One” 9/22/14 You can view ad: Here V/O: It’s not your typical fish story... V/O: Stewart Mills III caught a big inheritance and a job at the family business that pays half a million a year. V/O: But in Congress, Mills will leave you on the hook for higher taxes because Mills opposed tax cuts for the middle class even as he wants to give another huge tax break to millionaires like himself. V/O: With Stewart Mills, there’s always a catch. DCCC: “Another Big One” 9/29/14 You can view the ad: Here V/O: In every hunting camp, there’s always someone who talks a good game, but whose aim is off. Stewart Mills III inherited millions, and, now, wants to be your Congressman. 219 V/O: But in Washington, Mills will give more big tax breaks to millionaires like himself even as he opposed cutting taxes for nearly everyone else. V/O: Making you pay more so he pays less. V/O: Stewart Mills has a target on the middle class. DCCC: “Lifestyle” 10/08/14 You can view the ad: Here V/O: He’s become a minor celebrity but behind the glamorous lifestyle, Stewart Mills III has an agenda we can’t afford. V/O: Mills inherited millions, and, now, he’s running for Congress on a plan to give more big tax breaks to millionaires like himself – even as he opposed cutting taxes for 95 percent of Minnesotans. V/O: Stewart Mills III is for himself, not you. DCCC: “Coverage” 10/15/14 You can view the ad: Here [Announcer #1] Welcome back to our coverage. This is Stewart Mills the third. [Announcer #2] Lotta controversy around this guy. [Announcer #1] Yeah, Mills inherited a fortune. [Announcer #2] And now he’s campaigning to give more big tax breaks to millionaires like himself. [Announcer #1] But Mills opposed cutting taxes for ninety-five percent of Minnesotans. [Announcer #2] That’s just classic Mills right there. [Announcer #1] Yeah, well, let’s face it, Stewart Mills the third is for himself, not you. [Announcer #2] Certainly not me. [Announcer #2] The Democratic Congressional Campaign Committee is responsible for the content of this advertising. DCCC: “Handed” 10/28/14 You can view the ad: Here V/O: When you work for every dollar, you don’t expect any hand-outs. 220 V/O: But Stewart Mills the third has been handed everything. Inheriting millions and a six figure salary. V/O: Now Mills wants a seat in Congress, where he’d hand millionaires like himself a big tax break, but for ninety five percent of Minnesotans, he opposed tax cuts. V/O: So don’t hand Stewart Mills a seat in Congress. He’s not for you. Outside Groups for Nolan AFSCME People: “Inherited” 7/24/14 You can view ad: Here Mills: “Folks saying that the wealthy are not paying their fair share […] 2% the 1% whatever percent you want […] is personally offensive […] personally offensive. V/O: Stewart Mills inherited his millions and got a family job paying $560,000 dollars a year. V/O: Now Stewart Mills is against raising the minimum wage, but wants another tax break for the wealthy. V/O: Because paying his fair share is… Mills: Personally offensive. V/O: Stewart Mills is just out of touch. V/O: Ask AFSCME People is responsible for the content of this advertising. House Majority PAC: “Middle Class” 8/8/14 You can view ad: Here Mills: “Folks saying that the wealthy are not paying their fair share is personally offensive. V/O: Stewart Mills inherited his millions and got a family job paying $560,000 dollars a year. V/O: And now Stewart Mills wants another tax break for people in his tax bracket. V/O: Rick Nolan opposes tax cuts for the wealthy instead Rick Nolan supports tax credits for business that expand manufacturing in Minnesota. V/O: That’s how you create good middle class jobs. V/O: House Majority PAC is responsible for the content of this advertising. 221 House Majority PAC: “Context” 9/29/14 You can view the ad: Here V/O: Remember this clip of Stewart Mills? Mills: Folks say the wealthy are not paying their fair share is personally offensive V/O: Now he claims it was out of context? You decide. The whole video is on Stewart Mills’ own youtube channel. Stewart Mills inherited his millions and wants another tax break for the wealthy. Because paying his fair share of tax is Mills: Personally offensive V/O: Stewart Mills, what context makes that ok? House Majority PAC: “Billioniares” 10/23/14 You can view the ad: Here V/O: Why are New York billioniare Koch Brothers spending hundreds of thousands to elect Stewart Mills? In Duluth, the Koch Brothers outsourced 140 Minnesota jobs but Stewart Mills would still give them more tax breaks. They’re against raising the minimum wage. So is Stewart Mills. And Stewart Mills says millionaires paying their fair share in tax is Mills: Personally offensive V/O: That’s music to the Koch Brothers’ ears. Millionaire Stewart Mills and his billionaire friends don’t care about you. 222 Appendix III – Mills Fleet Farm Court Cases This appendix contains a summary of all the court cases examined for this research book. For this search, court records were examined at several Wisconsin and Minnesota court houses and the United States Courts system. Copies of every case available were received where the company’s name was mentioned. While not every case may have been written up in the book, the table below provides a comprehensive summary of what was available and analyzed. United States District Court Plaintiff Defendant Case Number 97-2655 Overview Judgment Michael Maziarka Mills Fleet Farm Plaintiff alleged that he was wrongfully terminated from Mills Fleet Farm store due to an illness Against Plaintiff John M. Greenberg Mills Fleet Farm 97-1733 Dismissed without prejudice Armament Systems and Procedures, INC. Christopher Modland Mills Fleet Farm 06-C-0832 Plaintiff demanded $22,000 from Mills Fleet Farm because of job discrimination The Plaintiff accused Mills Fleet Farm of patent infringement Mills Fleet Farm 04-CV03051 PAM-RLE Against Plaintiff Staton Holdings Mills Fleet Farm 06-CV0711-BECF Plaintiff claimed a paper and pencil questionnaire used by Mills Fleet Farm, Inc. was used to discriminate against applicants on the bases of race and gender. Plaintiff alleged that a communication carrier was unauthorized and violated the FCC’s toll-free number regulations after the carrier granted permission of a telephone number to Mills Fleet Farm James Steele Fleet and Farm of Green Bay Mills Fleet Farm 03-5467 ADM/AJB 09-CV-498JBC Plaintiff claimed age job discrimination Plaintiff alleged Mills Fleet Farm of copyright infringement of a cat Dismissed with prejudice Plaintiff voluntarily dismissed the action; Case dismissed without The Bandana Co 223 Dismissed with prejudice Dismissed with prejudice for failure to state a claim DuWayne Olson and Jacqueline Olson TPI Plastics, Inc J Kinderman & Sons Inc Dragon Claw (USA) Inc Richard and Lois Moran State of Wisconsin potholder prejudice Cosco and Fleet Farm 92-CV00362RHK-FEB Plaintiff demanded $5,000 for a breach of contract Dismissed Popp Cem Tile Prod, et al Rudolph T Randa, presiding Inliten LLC and Mills Fleet Farm Mills Fleet Farm Mills Fleet Farm, Aetna Life & Casualty Company, Delta International Machinery Corporation and Regent Insurance Company Junker Landfill Trust, Andersen Corporation, Minnesota Mining And Manufacturing Company, Chicago & Northwestern Transportation Co., Croix Oil Company, Dahl Tech Plastics, Erickson's Diversified Corp., George 96-cv00158-RTR Trademark Infringement (Lanham Act) Judgment on Consent 01-cv01235-LA Copyright Infringement Dismissed - Settled 02-cv00698-RTR 95-cv00215-jcs Copyright Infringement Dismissed - Settled No cause code entered Dismissed - Settled 97-cv00139-jcs No cause code entered Judgment - Judgment on Consent 224 Edmund Lee and Barbara M Webster, Church Mutual Insurance Company Tony Rizzo Siegfried Construction, Glass Service Company, Johnson's Body Shop, Maple Island, Inc. , Mills Fleet Farm, Toro Company, U.s. West, Ufe Incorporated, Town Of Troy, Northern States Power, Washington County, Ameritech, Minnesota Department Of Transportation, City Of Glenwood, Minnesota Department Of Corrections, City Of Lake Elmo, Stillwater Housing Partners Black and Decker, Fleet Wholesale Supply South Bend Sporting Goods, Maurice Sporting Goods, Pamida Stores 05-cv00549-bbc Injuries and damages sustained 09-CV00189-BBC Trademark Infringement Dismissed - Settled (Lanham Act) Plaintiff alleged Mills Fleet Farm using Plaintiff’s design and trade name without being granted the right do so 225 Transfer/Remand Remanded to State Court Operating Co, Blain Supply, Mills Fleet Farm, Walmart [United States District Court] Minnesota – Washington County District Court Plaintiff Case Number Fleet and Farm 82-CV-11of Menomonie, 5842 Inc. Overview Judgment Plaintiff alleged that she was on store’s property in Hudson, Wisconsin and opened the door to a large entertainment center on display and the cabinet fell over on top of Nordstrom causing permanent injuries. Dismissed Michelle Zeigler and Ronald Zeigler Mills Fleet 82-C2-05Farm and Mills 004432 Properties Plaintiff alleged that he slipped and fell on sidewalk outside of Mills Fleet Farm store, suffering permanent injuries to her right knee. Dismissed Clarence R McSherry Mills Fleet Farm 82-C1-00001089 Plaintiff alleged that he fell Dismissed while inside an accessory building while waiting for assistance in a Mills Fleet farm store where he purchased a mower. Suzanne DeMar and Todd DeMarr Fleet and Farm of Green Bay 82-C4-00000-504 Plaintiff alleged that she moved a roll of linoleum, causing it to fall off the shelf. As a result, the roll of linoleum hit her food, causing personal injuries. Chelsea Nordstrom Defendant 226 Dismissed Mike Edwards Mills Fleet Farm 82-CO-092160 Plaintiff alleged that he purchased a lawn-mower and after three uses, the engine seized up. The plaintiff asked for his money back after the store said they were not going to repair it. Settled, $348.52 in favor of Plaintiff [Washington County District Court] Individual Sued Store for Cabinet Falling, Claimed Permanent Injuries In May 1997, Chelsea Nordstrom filed suit against the Mills Fleet store in Hudson, Wisconsin for a cabinet falling on top of her and causing permanent injuries. The case was dismissed. [82-CV-11-5842] Individual Sued Store for Permanent Injuries from Sidewalk that Allegedly Was Not Maintained In December 2002, Plaintiff Michelle Zeigler claimed she slipped and fell on a sidewalk outside of Mills Fleet Farm store, suffering permanent injuries to her right knee. She claimed that the store was “careless and negligent in the maintenance of their property on said date by failing to remove the snow and ice. The case was dismissed [82-C2-05-004432] Minnesota – Douglas County District Court Plaintiff Defendant Mary Lynaugh Mills Fleet Farm Case Number 21-CO-0815 Overview Judgment Plaintiff alleged that her truck was scratched from new trees she had put in her car by Mills Fleet Farm employees Dismissed [Douglas County District Court] Minnesota – Dakota County District Court Plaintiff Defendant Joseph Kulhanek Mills Fleet Farm and Unknown Cement Case Number 19-C2-068935 Overview Judgment Plaintiff alleged that he tripped and fell in a Mills Fleet Farm store because of the work being performed on Dismissed 227 Contractor Maria Mootz Virginia Bowman, Linda Nelson, Lanna Tschetter, LaDonna Clement and Mills Fleet Farm the floor that he was shopping in and sustained significant and permanent damage. Defendant allegedly failed to warn of the dangerous condition plaintiff’s fall. 19HA-CV08-2624 Plaintiff alleged that Mills Fleet Farm was careless and negligent in failing to surprise the use of its motorized carts; failing to train or instruct operators as to the proper and safe use of its mortised carts; and careless and negligent in failing to warn of the dangerousness of its mortised carts among other negligent acts. Dismissed [Dakota County District Court] Minnesota – Stearns County District Court Plaintiff Defendant Overview Mills Fleet Farm Case Number 73-CO-111063 Terry Kreiling Judgment Sandra Gohmann Mills Fleet Farm 73-CO-08225 Plaintiff alleged that her car was damaged at a Mills Fleet Farm car wash. Kenneth Korman Mills Fleet Farm CX-99-5000 Defendant alleged that while Dismissed shopping at a Mills Fleet Farm store in Waite Park, a large box was pushed off of an upper level shelf, by a Mills Fleet Farm employee, and fell directly upon the Plaintiff. As a result, the Plaintiff suffered serious injuries and emotional harm. Plaintiff alleged that his Settled, $75 in favor of vehicle was damaged during Plaintiff installation of a trailer hitch purchased at Mills Fleet Farm. 228 In favor of Plaintiff, $857.70 Mary Jo Crever and Jerry Crever Fleet and Farm of Green Bay X8-99-2385 Defendant alleged that while Dismissed shopping at a Mills Fleet Farm store, she sustained a severe injury to her neck when a box fell from a display shelf and struck her. [Dakota County District Court] Minnesota – Washington County District Court Plaintiff Defendant American Family Mutual Insurance Company General Electric Company, Electric Insurance Company and Fleet Farm Case Overview Number 2011CV0099 American Family Insurance Company provided insurance to William and Jessica Knaus whose house caught on fire because of a dehumidifier, which was bought at Mills Fleet Farm. Judgment Plaintiff Dismissed case [Washington County District Court] Minnesota – Olmsted County District Court Plaintiff Defendant Howard Sawallisch Mills Fleet Farm Case Number S7-05-798 Overview Judgment Plaintiff claimed that while his car was being repaired for two new front struts, a front tire and an alignment, the vehicle stopped running. Against Plaintiff [Olmsted County District Court] Minnesota- Anoka County District Court Plaintiff Defendant Randy Berggren Mills Fleet Farm Case Number 02-CO-13864 Overview Judgment Plaintiff claimed damage to car from Mills Fleet Farm car wash. Against Mills Fleet Farm, $2,213.79 [Anoka County District Court] Minnesota – Crow Wing County District Court 229 Plaintiff Defendant Scott Mattson Mills Fleet Farm Case Number CO-92-1011 Overview Judgment Plaintiff alleged Mills Fleet Farm wrongfully terminated his employment in violation of the Minnesota Human Rights Act. Dismissed Dismissed Paula Bickford, as mother and natural guardian of Jamie Vogt, a minor Mills Fleet Farm and Fleet Wholesale Supply Co., Inc. C6-00-489 Plaintiff alleged Mills Fleet Farm negligently placed a thing rope around their vacant lot at various levels, causing the plaintiff to get caught on the rope at his neck and fall off the bicycle resulting in severe and permanent injuries. Warrren Samuel Mills Fleet Farm S8-05-609 Plaintiff alleged he took car to Against Mills Fleet Mills Fleet Farm to show Farm, $490.98 slow leaks in three tires; When the store was finished fixing his car, they parked it in a pool of break fluid and Plaintiff had to pay to get it fixed and towed. Leonard Locher and Lorraine Locher Mills Fleet Farm Supply C7-99-641 Plaintiff alleged he was struck Dismissed Plaintiffs’ by a cart operated by a Mills pretended cause of Fleet Farm employee action, awarding Mills Fleet Farm its costs, disbursements and reasonable attorneys’ fees and other further relief the court deems just and proper [Crow Wing County District Court] Minnesota – Hennepin County District Court Plaintiff Defendant Katie Hawkinson Mills Fleet Farm Case Number 27-CO-101812 Overview Judgment Plaintiff went to Mills Fleet Farm for new front tires and alleged she requested two Against Mills Fleet Farm, $257.67 230 new front tires, Mills Fleet Farm mistakenly replaced rear tires and disposed of those tires. Store refused to fully compensate Plaintiff for her loss. Jessica Borchardt Mills Fleet Farm 27-CO-109552 Plaintiff alleged she tried to return a defective battery with the receipt within the 30 day grace period and was denied a refund and/or exchange. N/A [Hennepin County District Court] Minnesota – Sherburne County District Court Plaintiff Defendant Harold Dobel and Kenneth Dobel Mills Fleet Farm Case Number C7-85-602 Overview Judgment Plaintiff (a minor) alleged that he was greatly injured in character and reputation after he was falsely accused of taking an un-purchased retail merchandise and was detained in the store Settled, $1,000 paid to Kenneth Dobel, $1,000 paid to Harold Dobel, $1,000 paid to Smith, Pringle and Hayes [Sherburne County District Court] Minnesota – Court of Appeals District Court Plaintiff Defendant Scott Mattson Mills Fleet Farm Case Number CO-92-1011 Overview Judgment Plaintiff alleged Mills Fleet Farm wrongfully terminated his employment in violation of the Minnesota Human Rights Act. Against Plaintiff [Court of Appeals District Court] 231 Appendix III – Mills Auto Cash for Clunkers In 2009 and 2010, Mills Motor, Mills Auto Center and Mills Auto Enterprises participated in the federal government’s “Cash for Clunkers” program, a program that offered $3,500 to $4,500 for people who traded in an old car for a new one with higher fuel economy. The auto centers made 144 transactions from the program, totaling $620,000 in federal dollar rebates, and sold $3,146,560.00 worth of inventory. [New York Times, 7/30/09; Cars.gov] The following table outlines these transactions: Invoice Date Invoice Amount 7/30/09 $4,500.00 7/30/09 $4,500.00 7/30/09 $4,500.00 7/30/09 $4,500.00 7/30/09 $4,500.00 7/30/09 $4,500.00 7/31/09 $4,500.00 7/31/09 $4,500.00 8/1/09 $4,500.00 7/31/09 $4,500.00 8/1/09 $4,500.00 8/3/09 $4,500.00 8/4/09 $4,500.00 8/4/09 $4,500.00 8/7/09 $4,500.00 8/12/09 8/17/09 $3,500.00 $4,500.00 Dealer Name MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO 232 Address 2000 South 1st Street 2000 South 1st Street 2000 South 1st Street 2000 South 1st Street 2000 South 1st Street 2000 South 1st Street 2000 South 1st Street 2000 South 1st Street 2000 South 1st Street 2000 South 1st Street 2000 South 1st Street 2000 South 1st Street 2000 South 1st Street 2000 South 1st Street 2000 South 1st Street 2000 South 1st Street 2000 South 1st City State Zip Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar Willmar MN MN 56201 56201 8/17/09 $4,500.00 8/17/09 $4,500.00 8/18/09 $4,500.00 8/19/09 $4,500.00 8/24/09 $4,500.00 7/28/09 $4,500.00 7/27/09 $4,500.00 7/29/09 $4,500.00 7/29/09 $4,500.00 7/29/09 $4,500.00 7/29/09 $4,500.00 7/29/09 $4,500.00 7/29/09 $4,500.00 7/29/09 $4,500.00 7/29/09 $4,500.00 7/29/09 $4,500.00 7/30/09 $4,500.00 7/30/09 $3,500.00 8/1/09 $4,500.00 8/1/09 $4,500.00 7/31/09 $4,500.00 7/31/09 8/1/09 $3,500.00 $4,500.00 CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO 233 Street 2000 South 1st Street 2000 South 1st Street 2000 South 1st Street 2000 South 1st Street 2000 South 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar Willmar MN MN 56201 56201 7/31/09 $4,500.00 8/1/09 $4,500.00 7/31/09 $4,500.00 7/31/09 $3,500.00 8/4/09 $3,500.00 8/4/09 $4,500.00 8/4/09 $3,500.00 8/4/09 $4,500.00 8/4/09 $4,500.00 8/5/09 $4,500.00 8/7/09 $4,500.00 8/7/09 $4,500.00 8/8/09 $4,500.00 8/10/09 $3,500.00 8/10/09 $4,500.00 8/10/09 $3,500.00 8/10/09 $4,500.00 8/11/09 $4,500.00 8/11/09 $4,500.00 8/12/09 $4,500.00 8/12/09 $4,500.00 8/12/09 8/13/09 $4,500.00 $4,500.00 CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO 234 Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar Willmar MN MN 56201 56201 8/13/09 $4,500.00 8/17/09 $3,500.00 8/17/09 $4,500.00 8/18/09 $4,500.00 8/18/09 $4,500.00 8/18/09 $3,500.00 8/18/09 $4,500.00 8/20/09 $4,500.00 8/20/09 $4,500.00 8/21/09 $4,500.00 8/21/09 $4,500.00 7/29/09 $4,500.00 8/11/09 $4,500.00 7/31/09 $4,500.00 7/31/09 $4,500.00 8/2/09 $4,500.00 8/10/09 $4,500.00 8/10/09 $4,500.00 8/14/09 8/20/09 $4,500.00 $3,500.00 CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO CENTER, INC. MILLS AUTO ENTERPRISES, INC. MILLS AUTO ENTERPRISES, INC. MILLS AUTO ENTERPRISES, INC. MILLS AUTO ENTERPRISES, INC. MILLS AUTO ENTERPRISES, INC. MILLS AUTO ENTERPRISES, INC. MILLS AUTO 235 Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 2000 S 1st Street 14138 Dellwood Drive 14138 Dellwood Drive 14138 Dellwood Drive 14138 Dellwood Drive 14138 Dellwood Drive 14138 Dellwood Drive 14138 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Willmar MN 56201 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter Baxter MN MN 56425 56425 ENTERPRISES, INC. MILLS AUTO ENTERPRISES, INC. MILLS AUTO ENTERPRISES, INC. MILLS AUTO ENTERPRISES, INC. MILLS AUTO ENTERPRISES, INC. MILLS AUTO ENTERPRISES, INC. MILLS AUTO ENTERPRISES, INC. 8/20/09 $3,500.00 8/20/09 $3,500.00 8/20/09 $4,500.00 8/22/09 $3,500.00 8/22/09 $4,500.00 8/22/09 $4,500.00 7/27/09 MILLS $4,500.00 MOTOR INC. 7/27/09 MILLS $4,500.00 MOTOR INC. 7/27/09 MILLS $4,500.00 MOTOR INC. 7/27/09 MILLS $4,500.00 MOTOR INC. 7/27/09 MILLS $4,500.00 MOTOR INC. 7/27/09 MILLS $3,500.00 MOTOR INC. 7/27/09 MILLS $3,500.00 MOTOR INC. 7/27/09 7/27/09 MILLS $4,500.00 MOTOR INC. MILLS $4,500.00 MOTOR INC. 236 Dellwood Drive 14138 Dellwood Drive 14138 Dellwood Drive 14138 Dellwood Drive 14138 Dellwood Drive 14138 Dellwood Drive 14138 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 7/27/09 MILLS $3,500.00 MOTOR INC. 7/27/09 MILLS $4,500.00 MOTOR INC. 7/28/09 MILLS $4,500.00 MOTOR INC. 7/28/09 MILLS $4,500.00 MOTOR INC. 7/28/09 MILLS $4,500.00 MOTOR INC. 7/28/09 MILLS $4,500.00 MOTOR INC. 7/29/09 MILLS $4,500.00 MOTOR INC. 7/29/09 MILLS $4,500.00 MOTOR INC. 7/29/09 MILLS $4,500.00 MOTOR INC. 7/29/09 MILLS $4,500.00 MOTOR INC. 7/29/09 MILLS $4,500.00 MOTOR INC. 7/29/09 MILLS $4,500.00 MOTOR INC. 7/31/09 MILLS $4,500.00 MOTOR INC. 7/31/09 MILLS $4,500.00 MOTOR INC. 7/31/09 MILLS $4,500.00 MOTOR INC. Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 237 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 7/31/09 MILLS $4,500.00 MOTOR INC. 8/1/09 MILLS $4,500.00 MOTOR INC. 7/31/09 MILLS $4,500.00 MOTOR INC. 8/2/09 MILLS $4,500.00 MOTOR INC. 8/1/09 MILLS $3,500.00 MOTOR INC. 8/2/09 MILLS $3,500.00 MOTOR INC. 8/2/09 MILLS $3,500.00 MOTOR INC. 8/1/09 MILLS $4,500.00 MOTOR INC. 8/2/09 MILLS $4,500.00 MOTOR INC. 8/4/09 MILLS $4,500.00 MOTOR INC. 8/4/09 MILLS $4,500.00 MOTOR INC. 8/6/09 MILLS $4,500.00 MOTOR INC. 8/6/09 MILLS $4,500.00 MOTOR INC. 8/6/09 MILLS $4,500.00 MOTOR INC. 8/8/09 8/8/09 MILLS $4,500.00 MOTOR INC. $3,500.00 MILLS 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 238 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter Baxter MN MN 56425 56425 MOTOR INC. 8/8/09 MILLS $3,500.00 MOTOR INC. 8/8/09 MILLS $4,500.00 MOTOR INC. 8/10/09 MILLS $4,500.00 MOTOR INC. 8/10/09 MILLS $4,500.00 MOTOR INC. 8/10/09 MILLS $4,500.00 MOTOR INC. 8/10/09 MILLS $3,500.00 MOTOR INC. 8/11/09 MILLS $4,500.00 MOTOR INC. 8/18/09 MILLS $3,500.00 MOTOR INC. 8/18/09 MILLS $4,500.00 MOTOR INC. 8/20/09 MILLS $3,500.00 MOTOR INC. 8/20/09 MILLS $4,500.00 MOTOR INC. 8/20/09 MILLS $3,500.00 MOTOR INC. 8/20/09 MILLS $3,500.00 MOTOR INC. 8/21/09 8/24/09 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood Drive 14858 Dellwood MILLS $4,500.00 MOTOR INC. MILLS $3,500.00 MOTOR INC. 239 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Baxter MN 56425 Drive Total $620,000 240