Kalamazoo Deborah County regroups Prato takes after housing helm at proposal fails The Rapid PAGE 6 PAGE 22

MARCH 29, 2021 • VOL. 33/NO. 12 • $3.00 SERVING WESTERN MICHIGAN BUSINESS SINCE 1988 www.mibiz.com ‘Substantial and far-reaching’ Federal proposal to change some metropolitan areas’ status could jeopardize crucial funding and economic development From left: Award-winning designer Joey Ruiter sits on his NOMOTO motorcycle concept at his design studio in Ada. A rendering of Buell Motorcycles’ 1190 Super Touring bike. Ruiter and Buell recently formed a new collaboration. PHOTO BY KATY BATDORFF. COURTESY RENDERING By KATE CARLSON | MiBiz [email protected] ot many designers — if any — fea- has turned heads over the years with his trans- ture a portfolio of work quite like portation curiosities. everal Michigan communities Design Joey Ruiter. In 2019, Ruiter teamed up with fellow con- are at risk of losing crucial federal From award-winning office ceptual designer Rem D. Koolhaas to host funding under proposed changes furniture designs to a project he an exhibition called DISRUPTORS at the to their designation as metropoli- Disruptor Ncalls Snoped, a reimagined, black aluminum Los Angeles-based Petersen Automotive tan areas, which local officials say snowmobile that rides like a cafe racer, the Museum, showcasing conceptual approaches Swould negatively affect services and economic Grand Rapids-based Ruiter is not your typical to automotive design. development efforts. Ada-based designer nine-to-five office furniture designer. As a self-described minimalist in his The White House Office of Management In fact, it’s his work with cars, motorcycles, trade, Ruiter generally begins each of his and Budget (OMB) is considering a proposal Joey Ruiter leaves his boats and other transportation elements that projects by first stripping an object down to to redesignate 144 U.S. Metropolitan Statistical minimalist mark on the has grabbed attention from nationwide media its core only to build it back up in unique and Areas as “Micropolitan vehicle and furniture and enthusiasts alike. unexpected ways. Statistical Areas” that are “Some of my work is provocational,” Ruiter One such example is his NOMOTO, a based on smaller popula- industries and starts a said. “It’s a piece of art. People will look at it motorcycle concept where a metal, graffiti- tion sizes. The proposal new collaboration with and I want them to ask questions and for it to clad body completely camouflages the bike would affect metropoli- raise emotions.” against typical urban settings. The bike is also tan areas in Niles, Battle Buell Motorcycles With his studio located in Ada, Ruiter’s fully functional. Creek, Jackson, Midland, bread and butter might be lending designs to The Consumer Car is another highlight Bay City and Monroe. some of West Michigan’s top furniture manu- in Ruiter’s portfolio. Beginning with a 1993 Currently, By JAYSON BUSSA | MiBiz facturers — names like Steelcase Inc., Herman Ford Festiva GL chassis and drivetrain, Ruiter Metropolitan Statistical Hackbarth [email protected] Miller Inc. and Nucraft Furniture Co. — but he See RUITER on page 3 Areas must contain a U.S. Census Bureau-delineated urban area with a population of at least 50,000, while micropol- itans are areas with populations of 10,000 to 50,000. Experts seek federal guidance as employers offer COVID-19 vaccine incentives The OMB’s proposed change would increase the minimum population to qualify By MARK SANCHEZ | MiBiz if they get the dual-dose vaccine from Pfizer Inc. or company has 127 stores in Michigan, Indiana and as a Metropolitan Statistical Area from 50,000 [email protected] Moderna Inc. The amount will more than compen- Ohio, more than 2,300 employees, and is one of the to 100,000. sate employees for the time they may need to leave nation’s largest tire dealers. OMB published a notice on the proposed growing number of employers are work to get vaccinated, company officials say. “We want all of the employees of all types to change on Jan. 19, kicking off a public comment offering incentives to their workers “We want to make sure all of the employees be able to do that so that they feel when they are period that ended March 19. OMB will consider who opt for getting a COVID-19 vac- who want the vaccination can get it and feel safe, at work it’s safe to be at work,” Barnes told MiBiz. recommendations from a review committee cine, including with extra paid time off and that they don’t have to choose between stay- “We want to make sure we create a safe working and public comments, and any revisions will or small cash bonuses. ing on the clock and earning an hourly wage versus environment for all and we don’t want any of our be announced in a final notice. The potential AAt automotive repair center Belle Tire, employ- trying to get the vaccination,” said Don Barnes III, teammates to hesitate.” changes could go into effect in 2023. ees are paid $25 for each vaccination visit, or $50 total president of the Allen Park-based Belle Tire. The See VACCINE INCENTIVES on page 9 See MSA AND CENSUS on page 5

PERIODICALS Geography adds to talent challenges INSIDE: for northwest Michigan Utilities manufacturers & Energy PAGE 4 SEE PAGE 10

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Meanwhile, children play in Employers’ role in wellness the background or attend virtual schooling, spouses work shoulder-to-shoulder. Employers have adopted a variety of tactics to promote This new reality of working from home can be chaotic, social interactions among their employees and ease mentally draining and unhealthy. the burden of the pandemic. Lyng and Wong, both MiBiz recently hosted a free webinar with occupational occupational therapy students at the Chan Division to software to track employee activity and monitor their Though the COVID-19 pandemic has forced both therapy practitioners Anita Joy Edwards, Kara Wong and for Occupational Science and Occupational Therapy at activity at home. While these programs can be effective employers and their workers to adapt in unfamiliar and Sydney Lyng of health consulting firm GIG Design LLC the University of Southern California, noted some from a profitability perspective, they also easily blur the uncomfortable ways, incorporating wellness techniques to discuss the importance of wellness in mitigating the companies host virtual happy hours. Others hold “health lines between clock time and personal time and risk total and strategies into daily life can help everyone improve physical and mental toll of working from home. circles” – meetings among peers in a safe environment surveillance of their employee and the employee’s family. their physical and mental health. 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Endless Zoom bonuses related to health and wellness. the design of their technologies.” employers, including an employee wellness survey and calls and increased screen time have led to digital eye However, the speakers indicated the most essential follow-up consulting services. strain and anxiety. And unclear work-life boundaries have thing employers can do for their worker’s wellness is to Personal Tactics yielded longer hours and increasing burnout. According listen, empathize with their employees’ concerns and GIG Design is a team of health consultants who help to a study from staffing firm Adecco, social burnout from troubles, and above all, remain flexible. On a personal level, Edwards and the other speakers noted individuals achieve their personal, health, and wellness the pandemic is estimated to cost the global economy “There’s a positive correlation between flexible work that individuals can take small actions throughout the day goals. 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2 MARCH 29, 2021 / MiBiz Visit www.mibiz.com included a custom-designed motorcy- the company announced that it would curious to see how we can keep up with RUITER cle. Melvin invited Ruiter to use Buell be releasing 10 performance models by that without starting over.” Continued from page 1 as a starting point. the year 2024. While Ruiter didn’t ultimately Limited edition Buell bikes are cur- On an island created a hyper-minimal design that use the bike for his finished project, rently in production as the company’s Published since 1988 essentially looks like a black box on the relationship led to collaboration leadership focuses on its larger plans Ruiter continues to raise his profile MiBiz® is a registered trademark of wheels. between Ruiter and Buell. and new models for 2022 through 2024. in the design community despite MiBiz, Inc. The outrageous creations also Ruiter designed Buell’s recently “The timing is really set up nicely,” the geographical barriers that come include Reboot Buggy, an ultra-prac- unveiled 1190 Super Touring bike, Melvin said. “There are a number of with operating out of West Michigan Publisher tical off-road vehicle that was fea- sporting the ultra-modern look that has changes in the two-wheel market and as opposed to one of the design epi- Brian Edwards / [email protected] tured in WIRED Magazine and was become a calling card of Ruiter’s work. we feel like those things line up very centers on the coasts. Associate Publisher Denise Montambo / [email protected] purposely stripped of its luxuries and “Our super touring bike is a varia- well for Buell. Ruiter has made frequent trips to frills that coddle the driver. Ruiter is tion of the platform but is also a very “Also, the platform had been lim- events and galleries in both New York Editor also the brainchild of Tinnie 10, a tri- broad market segment for motor- ited in the past through previous own- City and Los Angeles and said that Joe Boomgaard / [email protected] angle-shaped minimalist outboard cycles,” said Melvin, who owns Buell ership and those shackles are off. There many people in those circles don’t Managing Editor motor boat. after his Grand Rapids-based liquida- is a broader market available, so that’s even know he lives in Michigan. Andy Balaskovitz / [email protected] Right now, he is building two elec- tion company Liquid Asset Partners really nice. And the setup for what we “It doesn’t really matter where you (energy, policy) tric cars, one modeled as a big 1960s- LLC acquired the assets in 2016 for a brought together here really allows us live today,” said Ruiter, who grew up Senior Editor era American sedan and the other he reported $2 million. to take our time.” in Grand Haven and attended both Jayson Bussa / [email protected] described as “a monster — a com- “(The design) is super cool. You Muskegon Community College and (manufacturing, tech, sports) pletely ridiculous, over-the-top, go- look at it and you think that would Old brand, new design Kendall College of Art and Design Senior Writer anywhere, top-down, off-road vehicle be in a movie. When Matt Damon is (KCAD). “Maybe five years ago, but not Mark Sanchez / [email protected] meets ’30s race car.” The two designs stranded on Mars a second time, he’s With Buell, Ruiter faced the task today. And, definitely not post-COVID. (finance, health care, life sciences) are an exploration in how drivers can going to hop on this bike and race to of stepping in to design for a brand I’m actually working with more clients Staff Writer restore a passion for the drive despite get to the rocket,” he said. that has lingered in the market for 35 that aren’t local now probably because Kate Carlson / [email protected] the often generic, uninspiring design Melvin also said that, if the project years, cultivating international loy- it’s more acceptable to not be there in (real estate & development, small biz) and features of electric vehicles. is right, Buell would continue to tap alty and recognition. person.” Contributing Reporter “With electric cars, people tend into Ruiter’s design prowess. “I’m pretty familiar with the Buell But, for his contributions to the fur- Josh Spanninga to ask two questions: How fast is it “(Ruiter) is a disruptor and Buell, brand and what (founder) Erik (Buell) niture industry — work that has cooled Contributing Photographer and what’s the range?’” Ruiter said. in the next 10 years, people are going had done in the beginning,” Ruiter off during the COVID-19 pandemic — Katy Batdorff “Those are boring questions. There is to see that we’re disrupting things and said. “He was definitely a leader in it does help to be close to many of the VP of Production & not much to ask about them. No one doing things that people want to buy pushing the envelope from an engi- companies he works with on a regu- Audience Development wants to pop the hood of an electric and enjoy but also have products that neering standpoint. lar basis. Kristi Kortman / [email protected] car and check out how many volts it is.” surprise people,” Melvin said. “There “Aesthetically, they’re beasts. For KCAD President Tara McCrackin Digital Specialist are some things we can’t go into quite him, it was function way over form. … said technology has allowed design- Danielle Affholter / [email protected] Ruiter meets Buell yet, but we’re looking to have products I think they got stigmatized early, but ers to feel less pressured to migrate to Graphic Designer that are going to surprise people and when you get to know the bikes more, one of the coasts in order to produce Kaylee Van Tuinen / [email protected] When iconic American superbike broaden the market.” they’re actually quite beautiful how nationally recognized work. West maker Buell Motorcycles relaunched In February of this year, Melvin they’re put together.” Michigan is an attractive destination Senior Advertising Consultant and set up shop in Grand Rapids, it announced that the Buell Motorcycles Another design challenge Ruiter for designers for several reasons, she Shelly Keel / [email protected] caught Ruiter’s attention. brand is back and the bikes will be encountered was the fact that Buell bikes said, including being “design centric” Sales & Marketing Associate “I read something about Buell produced in Grand Rapids. Until that are generally tough to deconstruct and with an increasingly innovative manu- Lauren Frailey / [email protected] being in town and I kind of reached point, Melvin maintained low-vol- customize. For the final design, Ruiter facturing base. out to meet with them,” Ruiter said. ume bike production in Grand Rapids wanted to “put an exclamation mark on McCrackin called Ruiter’s overall Director, Finance & Administration “I called (CEO Bill Melvin) and he under the name EBR Motorcycles. The the things Buell does well.” work aesthetic “gritty glamor” that Tarah Buchan / [email protected] told me to come by and check it out. company earned the rights to use the Ruiter said that he is very interested broadly applies design basics. She I described what I did as a designer in Buell Motorcycles name in April of in working with the brand to move it also called his acheivements a suc- Circulation For address corrections or town and some of my motorcycle work 2020. forward. cess for the local design community subscriptions, contact MiBiz at I had already done.” The company is currently building “I think carrying the brand forward that “puts us on the radar — puts us 1-877-443-1977 or [email protected] At the time, Ruiter was working on out its advisory board and executive will be really fun to do and see how on the map. pieces for a show at the San Francisco team, focusing on new products and we can push it forward,” he said. “The “It expands our reach and it draws MiBiz ISSN 1085-4916 • USPS 017-099 Museum of Craft and Design, which their launch dates. Earlier in the year, industry is changing really quickly. I’m talent to West Michigan.” Established 1988

MiBiz is published every other week by MiBiz, Inc., P.O. Box 1629, Grand Rapids, MI 49501. Telephone (616) 608-6170. Fax (616) 608-6182. E-mail: [email protected]. Subscription changes: subscribe@mibiz. com. Periodicals Postage is paid at Grand BIZ BRIEFS Rapids, MI. A recap of recent stories from MiBiz.com. POSTMASTER: Send address changes to MiBiz, P.O. Box 1629, Grand Rapids, MI Amway cutting 6% of World Headquarters in Ada,” markets in the country. The Michigan to the fifth largest last week by wide margins 49501. Subscriptions are available without global workforce said Susan Nemes, manager of Michigan Gaming Control market in the country, where it — House Bills 4346 and cost to qualified readers. Paid subscriptions global PR at Amway. The com- Board recently released is expected to settle after over- 4354 — that would require are available to those not meeting qualified Global direct selling giant pany expects 90 percent of the February data showing that taking Indiana. The country’s health insurers to cover oral circulation requirements. Paid subscriptions Amway Corp. announced expected layoffs, or about 800 internet sports betting opera- top markets are in New Jersey, oncology drugs at the same are $99/year. Single copy and back issues it is cutting 6 percent of its positions, will come from its tors grossed $9.5 million while Nevada, Pennsylvania and rate as intravenous chemo- (when available) are $3 each, plus first class global workforce, or about West Michigan operations. handling $301.9 million in Illinois. therapy, which costs much postage. Call 1-877-443-1977 to order. 900 people, most of whom are The company expects the bets. This was a 162-percent more. The legislation would based at the company’s world majority of the layoffs to take increase from the $115.2 mil- also cap consumer co-pays Biz coalition says MIBIZ INC. headquarters in Ada. Eligible place from July through the lion licensed operators took at $50 for a 30-day supply health care bills will 1059 Wealthy St. SE, #201 employees were notified this end of 2021. in during the last 10 days of of insulin. The Michigan Grand Rapids, MI 49506 month about a “voluntary January and a slight drop in drive up costs for Affordable Healthcare 616-608-6170 phone • 616-608-6182 fax separation plan” aimed at Michigan emerging per-day averages, from $11.5 employers Coalition argues that nei- helping the company to bet- million in bets per day in A coalition of Michigan ther mandate actually as top sports COPYRIGHT ©2021. All Rights Reserved. ter focus on its health and January to $10.8 million per business groups is urging reduces costs or prices — Reproduction or use of any portion without wellness business and bol- betting, online day in February. Combined state senators to reject leg- just what consumers pay permission of the publisher is prohibited. ster its digital presence for its gaming market with retail sports betting islation that they claim will out of pocket. If enacted, the independent business own- Another busy stretch of sports inside casinos around the drive up the cost of health bills would drive up health ers and their customers. The betting and online gam- state, Michigan sports books coverage for small employ- premiums for fully insured move will largely affect people ing in Michigan has put the took in $325.6 million in bets ers. At issue are two bills small businesses, the coali- in “professional roles at our state among some of the top for February. The totals push the state House passed tion argues.

Visit www.mibiz.com MiBiz / MARCH 29, 2021 3 MANUFACTURING Geography adds to talent challenges for northwest Michigan manufacturers

By JAYSON BUSSA | MiBiz little bit disabled there. We can’t attract people [email protected] from all directions.” This leaves a finite talent pool for a small area s Michigan manufacturers of all seg- that features some surprisingly large manufactur- ments continue grappling with a per- ers, including names like Metalworks, styrofoam sistent talent shortage and skills gap, products manufacturer FloraCraft Corp., preci- furniture-maker Metalworks Inc. sion extruded aluminum components manufac- has to contend with a unique set of turer UACJ Automotive Whitehall Industries Inc. Ahurdles. and furniture maker Brill Co. These are problems the company, which also In the case of Metalworks, about two-thirds of does business as Great Openings, shares with its 200-employee workforce is shop workers while A machine on the shop floor of Ludington-based FloraCraft Corp. COURTESY PHOTO its manufacturing brethren in Ludington and the other third serve in support functions. throughout the rest of the northwestern Lower Peninsula. Collaboration vs. competition which is a part of the Mason County Geography — with Ludington fairly isolated Growth Alliance, is an effective resource along the Lake Michigan coast between Muskegon The manufacturers concentrated in this area are in developing ideas that can help all manu- and Traverse City — is one of the most prominent left to find a balance between working collabora- facturers in the area. issues making it tough for these manufacturers tively to find ways to keep the talent pool stocked “One of the things we talk about as to acquire talent. while also engaging in healthy competition for an association is we’re not competitors “Normally you can draw a 60-mile radius workers. in the markets we serve but we do com- around your business or town and draw (tal- Scott Lakari, vice president of operations for pete for the same workforce,” said Lakari, ent) from that, but we only have half of that,” Metalworks, said that resources like the Mason who leads the MCMA. “If we consider that Metalworks President Tom Paine said. “We’re a County Manufacturers Association (MCMA), 60-mile land lock with the group we have, Erwin Lakari Paine we are competing for the same people and trying to make sure that when we hire a person ‘John, it’s time, we have an opportunity for you,’” we’re not losing them to FloraCraft or one of the Erwin said. other manufacturers in the community.” Phil Gable, vice president of extrusion for WEST MICHIGAN’S LEADING At the moment, Metalworks isn’t in a panic to FloraCraft, has a similar story. He moved away bring on new talent after the COVID-19 pandemic from Ludington, acquired a master’s degree and decimated the office furniture industry when cor- served with the military before returning to the COMMERCIAL ROOFING CONTRACTOR porations across the country made a mass exodus area and taking his post at FloraCraft. from offices and transitioned to working from home. “Being able to recruit these people to this area, However, the company is working to ensure we find we have a far greater opportunity to do it that current employees remain engaged and plans with people who are familiar with what northwest- to hire additional workers when business volumes ern Michigan has to offer,” Erwin said. return to normal, which the company is expecting will happen near the end of this year. Fortifying a pipeline FloraCraft President and CEO Eric Erwin agreed that manufacturers in the area need to Within such a tight-knit community, the role of West engage in both collaboration and competition. Shore Community College becomes amplified as a By his assessment, the COVID-19 pandemic resource to develop talent for local businesses. revealed the need for both affordable housing Crystal Young, director of the college’s and accessible child care in the Ludington area Business Opportunity Center, said West Shore has — issues where businesses could collaborate. regular conversations with area manufacturers. “That being said, my belief is that FloraCraft “(Manufacturing) is changing every day with needs to be the employer of choice in Mason technology, with automation and with robotics,” County,” Erwin said. “We’re competing for a Young said. “We really have to be in continuous scarce resource like highly qualified labor. It’s communication with our manufacturers as to FloraCraft’s responsibility to recruit the best and what they need. They’re pivoting on dimes and retain the best. That doesn’t mean we necessarily academia doesn’t always pivot on a dime.” collaborate with our competition. In October of 2020, the school partnered with “So, I believe in a marketplace of good ideas the West Shore Educational Service District (ESD) and if we treat our employees better than other to hire a talent pipeline coordinator to engage K-12 folks, then we want people to come and work here.” students and encourage talent development and One talent-attraction strategy that FloraCraft retention in the area. has used is a “return to Ludington” movement, in West Shore Community College also designs which the company targets talent originally from labs and curriculums based on the needs of area the area that has left. manufacturers. A few years ago, the school jointly That’s how FloraCraft ultimately landed CFO purchased a CNC machine with UACJ Automotive John Nielsen. Whitehall Industries Inc. The machine was the “Through networking within town, we were same type found on the shop floor at the company, able to identify this former resident and connect giving the school an opportunity to train both stu- with him a little over a year and a half ago. As we dents and new hires at Whitehall Industries. EASTMUSKEGON.COM stayed in touch, we knew what his longer term Similarly, FloraCraft made a recent capital goals were and when an opportunity arose here investment in robots to boost efficiency, which at FloraCraft, it made it very easy for us to say, changed its talent needs.

4 MARCH 29, 2021 / MiBiz Visit www.mibiz.com ECONOMIC DEVELOPMENT

transportation, planning and housing. MSA AND Joe Sobieralski, president and CEO of Battle “There are so many CENSUS Creek Unlimited, believes businesses will con- ripple effects. If this Continued from page 1 tinue moving to areas where they can find talent regardless of whether it’s in an MSA. However, los- change were in place ing the designation could cause trailing repercus- The Census-based formula is “tweaked” every sions that affect whether businesses will move to today, it would be 10 years, but Metropolitan Statistical Area (MSA) the area, he said. standards have been in place since the 1950s, “Our transportation system is not fully self- directly impacting a said Chris Hackbarth, director of state and fed- sufficient and relies on federal government sup- eral affairs at the Michigan Municipal League. plements and dollars from the city’s general fund,” host of communities The League is opposed to the proposed change. Sobieralski said. “Something like that could even- The OMB considers the tually affect employment in Battle Creek.” and the COVID-19 relief changes as a way to update they’re expecting.” and standardize the Census In the dark process, but it is much more complicated because Sobieralski also said that it remains unclear based — CHRIS HACKBARTH of the data collection and on OMB guidance whether the change in MSA Director of State and Federal Affairs, federal funding tied to the designation would mean less federal funding and Michigan Municipal League Metropolitan Statistical Area data collection. title, Hackbarth said. “They want to downgrade it but are not being “There are so many rip- forthcoming on what that will mean,” he said. “I also Cleveland A FloraCraft Corp. employee at the ple effects,” Hackbarth said. think it’s bad timing. I’m sure this was in the works company’s Ludington facility. COURTESY PHOTO “If this change were in place for a while, but you’ve got all of this remote work today, it would be directly and moving about. We need to take a pause and step proposal is based on “continuing change in U.S. “We’re competing impacting a host of com- back and wait to get past this pandemic.” population and activity patterns.” munities and the COVID-19 Sobieralski said Battle Creek Unlimited has had However, local leaders from the potentially for a scarce resource relief they’re expecting.” some conversations with business leaders on the affected West Michigan communities told MiBiz like highly qualified Local officials and proposed changes, but that the economic develop- they feel in the dark about the reasoning for the congressional lawmak- ment organization is focused on moving past the changes and what the effects will be. labor. It’s FloraCraft’s ers in Michigan have also pandemic. Despite a lack of notice from OMB about “I’m not sure any of us really know what the responsibility to recruit expressed concern about the change, Sobieralski believes the issue is gaining cause of this was,” Cleveland said. “Losing the MSA Sobieralski the OMB proposal. U.S. Sen. enough opposition that it could be paused. designation will be significantly detrimental to com- the best and retain the Gary Peters, D-Detroit, issued a letter to OMB In its January notice, the OMB said part of the munities like ours.” best. That doesn’t mean in mid-March calling the potential effects “sub- stantial and far-reaching.” we necessarily collaborate “If this change was finalized, communities in my home state of Michigan and across the coun- with our competition.” try could lose access to vital federal resources that they rely upon,” according to Peters’ letter. Coming Soon! — ERIC ERWIN President and CEO, FloraCraft ‘Devastating to the community’ A metropolitan area designation not only helps CULTURE AND communities qualify for federal funding includ- ing community development block grants, but it GENERATIONAL “The West Shore program will be a fun- also provides valuable data to companies that are nel to bring people that will be trained in the considering locating in communities, said Rob operation of our facility,” Erwin said. “We Cleveland, president and CEO of Cornerstone CHANGE work with them and provide a work study Alliance, a Benton Harbor-based economic devel- program for many of those students and it’s opment organization for Southwest Michigan. APRIL 26, 2021 a great recruiting area for us.” “The loss of an MSA designation will be dev- The workforce in West Michigan includes Just as important as bringing qualified astating to the community,” Cleveland said. “It talent through the door, cultivating talent is would eliminate in-depth accurate data that we four generations — Boomers, Gen-X, also a point of emphasis for Metalworks and use for economic development, workforce devel- Millennials, Gen-Y — with very different area manufacturers. opment, transportation, land use and other plan- ideas about work and the workplace. We’ll Metalworks offers a program called ning purposes. Reducing data and eliminating dig into how West Michigan companies, UGotClass through West Shore Community data that we get for the MSA designation will nonprofits and governmental organizations College, which helps employees develop directly impact our area planning efforts and competencies in business that allow them ultimately it will lead our community leaders to are evolving to deal with the range of to elevate to higher positions and pay grades. make decisions with less information.” issues presented by the generational For shop floor workers, Metalworks offers its Berrien County Administrator Brian Dissette changes happening in the workplace. Master Series, which is similar to UGotClass. said whether a community is within a designated We’ll also present a special webinar, FloraCraft also places a strong empha- MSA is an early consideration of site selectors. featuring a panel of experts on the topic of sis on keeping employees engaged through “At this point, we’re concerned about a down- ongoing training. It offers the FloraCraft turn in block grant funding to all of the county, generational change. Academy for high potential employees. This specifically to Benton Harbor and the Niles area, is a two-year curriculum akin to a college and we’re concerned about general economic Don’t wait to be in this issue! Contact us by course. That has been on hold for the last development efforts,” Dissette said. Wednesday, April 14 to advertise. six months but will return when FloraCraft The Berrien County Board of Commissioners is able to hold their sessions according to passed a resolution on March 18 in support of health guidelines. maintaining its local MSA designation. Berrien Contact Us Today! “It’s something we’re really proud of,” County Community Development Director [email protected] Erwin said. “We’re providing excellent Dan Fette told commissioners during the meet- [email protected] instruction including outside lecturers, ing that the proposed change could potentially who comment on specific topics. We know eliminate monthly industry data, possibly dis- 616-608-6170 it’s really contributing to (employee) engage- qualify the county from cost of living indexes, ment.” and could cause federal funding reductions for

Visit www.mibiz.com MiBiz / MARCH 29, 2021 5 REAL ESTATE & DEVELOPMENT Kalamazoo County regroups after ‘golden opportunity’ for housing falls through

By KATE CARLSON | MiBiz “Many of us knew for a while that something big- [email protected] ger was needed,” said Kalamazoo County Board of Commissioners Chairperson Tracy Hall. KALAMAZOO — Kalamazoo County is determining The new millage expands on the existing tax how to allocate funding from a recently approved by increasing the number of people who can housing millage after a failed attempt to turn the access funding. It will also go toward creating vacant Lakeside Academy campus into a much- permanent affordable housing. Previously, the needed housing development. funding was only available to families with chil- The county has been gathering public comment dren enrolled in a local school district, but the and hired former county Treasurer Mary Balkema qualifications have broadened to include rent Kalamazoo County officials unsuccessfully offered $6 million to purchase the Lakeside Academy as its housing director to oversee funding from the subsidy programs, constructing permanent property in Kalamazoo for emergency and affordable housing. PHOTO BY ANDY BALASKOVITZ new Homes for All millage that voters approved in housing units and support services for cost-bur- November. The .75-mill property tax will be levied dened households. “Since no county in Michigan has ever levied a “Since no county in for eight years — from December 2021 to December The county has spent the past few months gath- millage like this, we are kind of building the boat 2028 — and is expected to raise about $6.4 million in ering public comment on exactly how the funding while we are in the water,” Balkema said. Michigan has ever levied its first calendar year. The millage replaces a .1-mill should be spent. The county has a severe shortage Michigan State Housing Development Authority tax that has raised nearly $800,000 annually over the of affordable housing units, which has caused many rent subsidy vouchers are also going unused a millage like this, we are past six years, which has helped more than 500 fami- people to live in tents, hotels, doubling up or live out because of the lack of available affordable housing, lies secure affordable housing. of their cars, Balkema said. she said. kind of building the boat The county Board of Commissioners is planning while we are in the water.” a retreat on May 15 to determine a housing policy and vision for the new millage money. A request for proposals on affordable housing projects is —MARY BALKEMA expected in July. The goal is for funds to be released Kalamazoo County Housing Director for approved projects in March 2022 from tax bills GET THE LATEST that are levied in December this year. “The decisions will ultimately be made by the Board of Commissioners and so the projects will be E-NEWS SENT picked by them and the policy will be set by them. I backyard, even though we work all over the state. I think there is a lot of wisdom in that because there am very optimistic about what the millage can do.” will be continuity with the plan,” Balkema said. “This process will live on in perpetuity and addi- ‘Back to the drawing board’ TO YOUR INBOX tional feedback can be given every year as we learn what works and doesn’t work. Next year we’ll do this The county planned to use funding from its recently MiBiz publishes free e-newsletters work all over again.” approved housing tax to purchase the former The timeline is strategic because it aligns with Lakeside Academy property at 3921 Oakland Drive highlighting local news and data, MSHDA application deadlines for housing incen- in Kalamazoo. Plans sought to create emergency as well as best practices, events tives, Balkema said. housing for the large homeless community in the “There are resources available to create afford- county, as well as turn part of the building into per- and resources: able housing such as (Low-Income Housing Tax manent affordable housing units. Credits), but those are limited resources and don’t The Lakeside Academy Board of Directors n MiBiz Morning Edition – A daily weekday roundup of business news and intelligence. always get you all the way there or make a project declined the county’s $6 million bid and instead feasible,” said Jason Muniz, vice president of Portage- opted to sell the property for the same amount of n NEW! Real Estate/Development Report – A weekly digest of the West Michigan region’s based Hollander Development Corp. “That’s where money to Oakland Finance LLC. The company is commercial real estate, development and economic development activity. I think the millage could play a key role.” registered to Jordan Schau, an attorney with Lake, Meanwhile, construction costs have “skyrock- Parfait & Schau PLC in Kalamazoo. Schau did not n Small Biz – A bi-weekly compendium of news, best practices and events. eted,” which was exacerbated during the COVID- respond to requests for comment from MiBiz. n Manufacturing Report – A bi-weekly digest of local manufacturing news. 19 pandemic in part because of supply availability “This was like one of those golden opportuni- and tariffs, Muniz said. Construction for housing ties that we thought we had and we couldn’t pass n West Michigan Nonprofits Report – A monthly roundup of news and information is cost-prohibitive across the board for single and up,” Hall said. “This is our most challenging issue, affecting the nonprofit sector. multi-family homes, making affordable projects that housing in general.” much harder, he added. County commissioners and administrators took “Affordable housing” is defined by the U.S. two tours of the facility and presented its plan to the Sign up today at mibiz.com/subscribe/e-newsletters Department of Housing and Urban Development Lakeside Academy Board of Directors in November as a household paying up to 30 percent of its income 2020. A majority of the board members voted against on housing expenses, which includes rent, utilities, the county’s proposal. taxes and insurance. Based on 2019 Census data, the Losing out on purchasing the 55-acre property median household income for Kalamazoo County was disappointing, especially because there is not is $56,511 for a family of four. much available space in the county, Hall said. West Michigan Business News & Intelligence “We would like very much to be involved in add- “There were so many reasons why it was such ing more affordable housing through this process,” a good project,” Hall said. “Now we’re back to the Muniz said. “Kalamazoo is our hometown, our drawing board figuring out what’s next.”

6 MARCH 29, 2021 / MiBiz Visit www.mibiz.com State lawmakers consider tax-free savings accounts for first-time homebuyers

By MARK SANCHEZ | MiBiz Department of Treasury, told lawmakers in com- BE THE [email protected] mittee testimony earlier this month. Despite the changes in the House bills since irst-time homebuyers could save for a down introduction, the Treasury Department still payment or closing costs through new tax- opposed the legislation. Connors urged lawmak- exempt savings accounts under legislation ers to get financial institutions involved in the dis- that’s designed to promote home owner- cussion as they work to craft final versions of the ship and retain talent in Michigan. legislation. FUnder separate bills pending in both the state House Tax Policy Committee Chairman Rep. House and Senate that have cleared their respective Matt Hall, R-Marshall, expects further changes in committees, first-time homebuyers could save up to the bills. Legislation supporters “are trying to get FIRST $50,000 in an account they open with a bank, credit to a place where everyone supports this,” Hall said. union or other financial institution. Another change to the House version addressed Designated accounts opened under the pro- a concern raised by state Rep. Steve Johnson, posed First Time Home Buyers Savings Program R-Wayland, about account withdrawals that do not could accrue tax-free earnings for up to 20 years. meet requirements and become subject to a 10 per- Consumers who create cent penalty. Johnson cited an example of someone an account to save for the serving in the military who opens an account to save future purchase of a primary for a future home purchase and then gets deployed residence could also claim or re-assigned out of Michigan. At Johnson’s urging, TO an income tax deduction on the committee added an exemption to the penalty their state tax return under for military personnel. the legislation. The bills would The Legislature passed similar bills in late 2018 allow a single tax filer to take to allow tax-free accounts for first-time homebuy- a deduction of up to $5,000 ers, only to have them vetoed by then-Gov. Rick annually, and up to $10,000 Snyder. He “indicated support for the goal, but Damoose for a joint return. questioned the use of the tax code to incentivize tax- Bill co-sponsor Rep. John payer behavior,” according to a House Fiscal Agency Damoose, R-Harbor Springs, analysis of the legislation — House Bills 4289-4290 KNOW touts the legislation as a way and Senate Bills 145-146. to “help even more Michigan citizens achieve what’s always Realtors support been the foundation of the American dream, which is Nine other states have enacted legislation to allow home ownership.” tax-free savings accounts for first-time homebuyers, Damoose described the according to Brad Ward, vice president of public Manoogian accounts as “an innovative policy and legal affairs at the Michigan Association savings device designed to encourage people to of Realtors. plan for the future with a specific goal of home Most of those state laws have passed within the ownership in mind.” last few years and little information is available yet “Home ownership matters in Michigan. It leads on their effectiveness in promoting home owner- to the economic stability in communities through- ship, although “we do believe that this program can out our state,” Damoose said during a recent House be successful (and) we want to be ambassadors for Tax Policy Committee hearing. this program,” Ward said. Michigan Association of Rely on MiBiz to break through the noise, go beyond the State Rep. Mari Manoogian, D-Birmingham, Realtors has been a “big proponent” of the idea, he easy stories and deliver top-notch local business news says allowing residents to form tax-free accounts said. to buy their first home promotes financial literacy. “It gets at part of the affordability question that and information not available from any other source. Helping people gain a small tax advantage to save we’re wrestling within in this state, from at least the for a future home purchase can also contribute to savings side,” Ward said. “Owning a home is one of the addressing “brain drain” of “our bright young folks fastest ways to build wealth in America and we want to to other states and large cities” that’s been occurring make sure more people have that opportunity to do so.” For a $99 annual subscription, or $10 per month for years in Michigan, Manoogian said. While few people will have the ability to deposit monthly subscription, get 24/7 access to high-quality “We should be working to keep those young large sums into an account, even doing a few hun- people and their talents and those new families dred dollars annually over a period of years adds up journalism, including web-only stories, breaking news, here in Michigan,” she said. and “makes a big difference for them” when they go The House Tax Policy Committee last week to buy their first home, Ward said. research and exclusive reporting on West Michigan cleared two bills that allow the formation of the sav- Other organizations backing the legislation business news that matters. ings accounts and create the tax deductions. The include the Michigan Credit Union League, the bills are now up for consideration in the full House. Michigan Mortgage Lenders Association, the Home The Senate Finance Committee also passed its Builders Association of Michigan, chambers of com- version of the bills and recommended approval in merce in Grand Rapids and Detroit, the Michigan Visit mibiz.com/subscribe to sign up today. the full Senate. Chamber of Commerce, and Habitat for Humanity. As lawmakers continue to work on the bills, the Changes likely Michigan Association of Realtors remains open to working with the state Treasury Department The versions that the House committee passed to address concerns that also include “guardrails” sought to address Michigan Department of Treasury to ensure consumers properly use the savings concerns about the administrative burden of the accounts for eligible purposes, general counsel savings accounts and ensure their proper use. Brian Westrin said. West Michigan Business News & Intelligence “This is a laudable goal, but the trick is in the “We want to make sure that this gets established effectiveness of the legislation and also its execu- and that those expectations for an account holder tion,” Paul Connors, legislative liaison with the are clear,” Westrin said.

Visit www.mibiz.com MiBiz / MARCH 29, 2021 7 ADVERTISEMENT HEALTH BIZ UPCOMING EVENTS FOR FAMILY BUSINESS ALLIANCE

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VISIT FBAGR.ORG TO REGISTER Patient Co.’s SimPull equipment assists hospital staff with moving patients, which company officials say can help prevent injuries. COURTESY PHOTOS OR SCAN THE QR CODE BELOW Medical startup raises $1M for equipment to move patients, protect nurses

ADVERTISEMENT By MARK SANCHEZ | MiBiz lift no more than 35 pounds at a time. As a result, Patient Co. recently closed on the $1 million seed [email protected] it usually requires six or seven people to move a capital round that drew about a dozen investors UPCOMING EVENTS FOR patient laterally and takes more than 20 minutes including Spectrum Health, Red Cedar Ventures, GRAND RAPIDS — The $1 million raised from just to gather enough staff. Invest Detroit Ventures, MedTech Ventures, PEOPLE FIRST ECONOMY investors moves medical product startup Patient SimPull requires only one clinician and takes and Quantum Medical Concepts, an early-stage Co. closer to the marketplace for an innovation just a couple of minutes, creating “pretty stagger- investment fund the Michigan State Medical Society designed to assist nurses and other caregivers mov- ing” workflow efficiency and time savings for hos- formed in 2017. Ben & Jerry’s: A Business ing hospital patients. pital staff, which comes on top of improved safety, The capital, some of which came in early Built on Putting People First The company’s SimPull Heuerman said. 2020, enabled Patient Co. to take a prototype April 19 at 9:00am safety equipment gently “This is one of the most common ways that nurses and “turn it into something we can actually use slides a patient laterally from are getting injured,” he said. “In order to protect our and sell in the field,” said Heuerman, a Grand From the first day in operation, Ben their hospital bed and onto a nurses, we feel like this is a problem we have to pri- Valley State University graduate with a degree in & Jerry’s has implemented policies gurney to transport them, for oritize through development of this technology.” kinesiology. and made purchasing decisions instance, for a surgical proce- The company this year aims to move further dure or diagnostic test such as down the commercialization pathway, including in order to address community Product development a medical scan. going through federal regulatory review. They hope inequities and these values have Founders of the Grand Peters and Heuerman met when they worked to begin selling SimPull to hospitals by late summer strengthened alongside the growth Rapids-based Patient Co. — together on a project at Spectrum Health or early fall. Heureman of the company. In this dialogue, which has offices in Traverse Innovations that led to SimPull’s development. Using the capital, the company plans to pilot the Milinda Ysasi, Grand Rapids City City and Scottsdale, Ariz. — Through Spectrum Health Innovations, they ana- SimPull this summer at five partnering health sys- Commissioner and President of tout SimPull as a way to pre- lyzed a problem raised in 2016 by a patient transport tems, including Spectrum Health in Grand Rapids The Source will speak to David vent muscle strains or other manager who was worried about injuries to his co- and Sparrow Health in Lansing, Heuerman said. injuries to nurses and care- workers, specifically from lateral patient transfers, He hopes the health systems piloting SimPull turn Rapaport, Global Social Mission givers, and to drive efficiency. Heuerman said. into paying customers, and believes that SimPull Officer about the role of business Instead of taking several peo- “He just thought there had to be a better way to can prevent thousands of injuries a year at hospitals. in addressing social inequities and ple to move a patient from a do it. He felt, is there some way we could look into “This device from a value side is really straight- systems that create barriers for bed to a gurney or back, the this further and create a device that could help solve forward. It should be a really clear value-add for hos- everyone in a community to prosper. SimPull device allows a single this problem?” Heuerman said. pitals,” he said. “We’re really excited about what this Peters caregiver to do it. SimPull came out of that process at Spectrum product can do for health care. “SimPull is the hood ornament for health care Health Innovations, which analyzed the feasibil- “We think this is something that everyone needs.” VISIT PEOPLEFIRSTECONOMY.ORG worker safety and effective health reform,” said Ryan ity and vetted the market potential, and designed, Patient Co. has a contract with Keystone TO REGISTER OR Peters, Patient Co.’s co-founder and chief operating developed and tested a prototype, Heuerman said. Solutions Group in Kalamazoo to produce SimPull. SCAN THE QR CODE BELOW officer whose background is in population health He and Peters ultimately spun the company out of The company also intends to develop a next- management. “It’s a really great opportunity with Spectrum Health Innovations to further develop and generation version of SimPull for heavier, bariat- the product.” take SimPull to market. ric patients, plus other safety equipment for use in Peters and Andrew Heuerman, Patient Co.’s co- Patient Co. also went through Conquer patient transports, Heuerman said. As well, Patient founder and CEO, say SimPull can prove particu- Accelerator, a business accelerator oper- Co. could work with and support other innovators larly useful at small hospitals that are lightly or short- ated through a partnership between Spartan to develop their ideas or acquire innovations that staffed, or facilities experiencing a nursing shortage. Innovations L3C and venture capital fund Red are in their early stages, he said. Federal Occupational Health and Safety Cedar Ventures, both of which are subsidiaries of “At the end of the day, this isn’t the only prod- Administration regulations require that a clinician the Michigan State University Foundation. uct that we’re looking to work on,” he said.

8 MARCH 29, 2021 / MiBiz Visit www.mibiz.com reporter’s NOTEBOOK Mark Sanchez writes about finance, health biz and life VACCINE sciences. INCENTIVES 616-608-6170 • [email protected] Continued from page 1

Belle Tire’s small employee incentive West Michigan health care executives is a typical example of what some com- panies are doing to encourage employ- set aside competition during pandemic ees to get a COVID-19 vaccine, particu- he COVID-19 pandemic that stretched health systems during larly workers who are in direct contact the past year also brought together health care executives as they with the public. Employers offering responded to the crisis. small incentives are generally using a Leaders at health systems say they quickly set aside their competi- cash reward or additional paid time off, tive natures and kept in regular contact in the last year. Chief medical which workers can use for their vacci- officers talked daily to share data and best practices for managing the crisis, nation visit and afterward if they don’t T keeping staff safe, treating patients with COVID-19, and how to plan and prepare. feel well as the vaccine takes effect in “We’ve all learned so much,” Dr. Matt Biersack, chief medical officer and the body. interim president at Mercy Health Saint Mary’s, said last week in a virtual panel held during the Grand Rapids Area Chamber of Commerce’s annual Health Care Summit. Avoiding coercion “It’s been incredible to collaborate,” Biersack said. “We’re all thinking about the population and the community that we have here in the greater Grand Rapids However, experts say employers need to Local health care workers administer COVID-19 vaccines at the DeVos Place in area far more than we ever did before.” consider an array of federal regulations Grand Rapids. PHOTO COURTESY OF SPECTRUM HEALTH Biersack joined his fellow chief medical officers, Dr. Ronald Grifka at Metro that are intended Health-University of Michigan Health and Spectrum Health’s Dr. Joshua to prevent coer- last year that allow minor vaccine incen- “There’s no bright Kooistra, in a Zoom discussion on the pandemic’s effects on health care. cion as they offer tives, Warren said. The EEOC withdrew “At times you just need to work together as a team to help protect the com- vaccine incentives the proposed rule after President Biden line dollar amount munity,” said Grifka, who also cited the “collegiality” among health systems and to employees. took office in January. or bright line value local health departments resulting from the public health crisis. As with work- While a new EEOC proposal is One area of collaboration Biersack noted was sorting data by age and demo- place wellness expected soon, the withdrawal for now amount that will cross graphics to identify who and what communities are the most vulnerable to the programs, federal leaves uncertainty about the level of incen- the line between an coronavirus and COVID-19 — and “how do we serve them better and how do regulations require tives that employers can offer, Warren said. we work more closely together?” that employers “So we are left with no firm guidance, incentive into coercion, “Those are learnings that I hope we carry with us long, long into the future,” Guinn he said. provide a “reason- other than it can’t be coercive,” he said. and that’s what the The biggest collaboration has been with the West Michigan Vaccine Clinic able accommoda- “There’s no bright line dollar amount or at DeVos Place in downtown Grand Rapids that’s operated through a part- tion” for employ- bright line value amount that will cross agencies are using. nership between Mercy Health, Spectrum Health and the Kent County Health ees to earn an the line between an incentive into coer- You can’t coerce Department. The clinic, which opened in January, has the capacity to do 20,000 incentive if they cion, and that’s what the agencies are or more vaccines a day, although doses remain somewhat limited even with opt not to get vac- using. You can’t coerce someone into someone into getting increased availability of late. cinated, Kristen getting the vaccine.” The three Grand Rapids-area health systems participate in calls with the state Guinn, a share- the vaccine.” twice a week talking about vaccine dose availability, Kooistra said. “As eligibility opens up, certainly supply is still going to be the constraining holder at Grand ‘Legal uncertainty’ Rapids-based — RICHARD WARREN factor,” Kooistra said. “Our hope is that Pfizer, Moderna and Johnson & Johnson Warren will increase manufacturing efforts. I’m sure they’re trying to fire on all cylinders Smith Haughey A coalition of more than 30 national Partner, Miller, Canfield, right now, but our hope is that we will see increased supply in the next month Rice & Roegge PC, said during a pre- trade associations in February wrote Paddock and Stone PLC or so. But the state of Michigan has told us that it’s still going to be constrained sentation last week at the Grand Rapids to the EEOC, urging it to “quickly issue for the next few weeks.” Area Chamber of Commerce’s Health guidance clarifying the extent to which Pfizer Inc. has been ramping up production of its vaccine, including at its Care Summit. employers may offer employees incen- primary site in Portage, according to Molly Williams, the company’s director of “They should provide alternative tives to vaccinate without running afoul state government affairs. Pfizer has contracts to sell the U.S. government 300 ways to earn those incentives by employ- of the Americans With Disabilities Act The Employers’ Association in Grand million vaccine doses this year, Williams said. ees who do not want to receive a vaccine. and other laws enforced by the EEOC.” Rapids recently polled a group of mem- The company has so far shipped 70 million doses since December. It expects For example, maybe attending training “Employer-provided incentives bers on behalf of MiBiz on whether or to make 120 million doses available to the federal government by the end of or a continuing education program,” can assist governments in quickly and how they are offering vaccine incentives. March and 200 million by the end of May, Williams said. Pfizer should ship the Guinn said. efficiently distributing vaccines. Legal Among the employers that responded, a remaining doses to the U.S. government by the end of July, she said. Improvements in manufacturing processes have reduced vaccine production Federal regulators view employers’ uncertainty about providing such incen- handful said they were offering additional and release times from 110 days to about 60 days, Williams said. COVID-19 vaccine incentives similarly tives, however, has many employers con- paid time off. A few contacted by MiBiz “We foresee no issues in delivering on the commitments we’ve made to the to incentives to encourage wellness cerned over liability and has made them declined to discuss their policies. U.S. government. Our facility in Kalamazoo is the primary manufacturing site of program participation: Employers may hesitant to act,” according to the letter. “I don’t have any employers or cli- our COVID-19 vaccine in the U.S. and we anticipate no interruptions in ship- offer them to encourage participation, Employers may mandate that ents that don’t take COVID-19 seri- ments at this facility as we look to scale up our production this year,” she said. but cannot make an incentive so large employees get vaccinated, although the ously. They know what a disruption it As Pfizer and the other vaccine makers increase production, vaccine eligibil- or valuable that an employee feels com- Americans with Disabilities Act requires has caused in their workflow, customer ity expands and some restrictions loosen in Michigan and around the U.S., the pelled or coerced to participate. that they evaluate who cannot receive flow and revenue, and they want these task for health systems now is to ensure vaccines are administered equitably A federal regulatory agency may con- a vaccine because of a medical condi- employees vaccinated and not result in and people are educated about vaccine safety, Grifka said. sider an incentive to be coercive if it is tion or disability, Guinn said. The law any work stoppages because they are “The more people we get vaccinated the better we’ll be,” he said. “This is “so large that the average employee has requires employers to “attempt to make sick or out,” Warren said, adding that how we’re going to get back to normal living.” The Michigan Department of Health and Human Services on April 6 expands no choice but to accept,” said labor and reasonable accommodations” for those telling clients and customers that work- eligibility for a vaccine to anyone 16 years old and up. employment attorney Richard Warren, employees — such as remote work or ers are vaccinated can create “more of a Other long-term changes for health systems brought on by the pandemic a partner at Miller, Canfield, Paddock absent under hardship — before exclud- sense of ease.” include the use of telehealth that soared early in the pandemic, Grifka said. and Stone PLC. ing them from the workplace, she said. That peace of mind for customers is Grikfa also sees the possibility that even after the pandemic wanes, people Some of Warren’s clients offer $100 Guinn urges employers to follow best part of the rationale for the $25 per-shot will wear face masks during flu season each winter to protect themselves. He cash incentives for employees to get a practices that include creating a written bonus at Belle Tire. cited U.S. Centers for Disease Control and Prevention data showing the num- COVID-19 vaccine, he said. Warren’s policy, tailoring a vaccine program, and The company wants to keep employ- ber of people in the U.S. who had the flu — which annually kills thousands — “very comfortable that $100 or less providing reasonable accommodations ees safe and ease customers’ angst when declined dramatically as a result of face mask mandates, better hand hygiene would not be deemed coercive by any to employees. they come into a store for a vehicle and social distancing. federal agency.” Many of the employers Warren rep- repair, Barnes said. “There may be some long-term effects that are very positive for the com- The federal Equal Employment resents that offer incentives consider “We want to make sure our custom- munity,” Grifka said. “These keep people out of the hospital, out of the doctors’ offices, and back at work and with their families.” Opportunity Commission (EEOC) under getting their workforce vaccinated as a ers coming in feel confident and safe,” former President Trump proposed rules possible competitive advantage. he said.

Visit www.mibiz.com MiBiz / MARCH 29, 2021 9 FOCUS: UTILITIES & ENERGY Utilities chart renewable energy future as state mandates level off

By ANDY BALASKOVITZ | MiBiz “The RPS has been very beneficial for a lot of our [email protected] members. It has enabled the market to get going in Michigan,” said Laura Sherman, president of the ichigan’s mandates for renewable Michigan Energy Innovation Business Council. power and energy efficiency pro- “At this point, given the utility IRPs, cost declines grams — first set in 2008 and slightly and the shift to renewables, we’re at the point where increased in 2016 — are scheduled this is market-driven change and doesn’t necessarily to level off this year, although it may need to be driven by mandates.” Mmake little difference as the clean energy transition Brandon Hofmeister, senior vice president rolls on under market forces. of governmental, regulatory and public affairs at The state’s two largest utilities have announced Jackson-based Consumers Energy, agreed that clean energy targets over the next few decades to vir- market forces and long-term planning are playing tually eliminate carbon emissions from their power a much larger role in the utility’s renewable energy generation. Meanwhile, industry experts expect build out. In its first long-term plan filed with state early and anticipated climate action from the Biden regulators, Consumers plans to build or contract for administration to further drive the clean energy sec- 6,000 megawatts of new solar power by 2040. tor through policy levers including incentives and “Our IRP obviously blows past a 15 percent placing a high price on carbon emissions. renewable portfolio standard pretty aggressively,” Add in the ongoing decline in wind and solar said Hofmeister, adding that the utility “wouldn’t prices and customer demand for renewables, and con- be opposed” to expanding the RPS, unlikely as it is STOCK PHOTO sensus is growing among experts that Michigan’s clean in the state Legislature. energy standards worked as intended to jumpstart the Among more immediate concerns for MEIBC industry, but that they’re likely no longer necessary. and other clean energy advocates is the sunsetting “Utilities are building more and more renew- of energy efficiency programs for municipal utilities ables just to keep up with the demand they’re get- and electric cooperatives under the 2016 law. Absent ting,” including from voluntary renewable energy any change to state law, those utilities will no longer purchasing programs, said Tim Lundgren, a partner be required to offer efficiency programs beyond 2021. at Varnum LLP specializing in energy. “That is push- “Energy waste reduction is critical for meeting ing them way beyond the renewable portfolio stan- our carbon reduction goals,” Michigan Department Clark Hofmeister Jameson Lundgren Sherman dard, which in a sense has outlived its usefulness. of Environment, Great Lakes and Energy Director It was great to kickstart things, but at this point the Liesl Eichler Clark told MiBiz. “We will see that look sector by 2035 and overall net-zero carbon emis- the social cost of carbon, which places a per-ton demand side is pushing renewable energy develop- different at the end of the year because municipal sions economy-wide by 2050. Democrats control- price on carbon emissions. The Obama administra- ment and utilities are responding to that.” utilities and co-ops will switch over to voluntary. ling the U.S. House and Senate may also pursue 100 tion first used a social cost of carbon of around $50 Democratic lawmakers proposed legisla- We’re going to be watching that very carefully.” percent clean energy targets, with House Democrats per ton for climate regulations. It was scaled back to tion last year to expand the 15 percent renewable introducing a bill in early March largely mirroring around $5 per ton under former President Trump. energy standard, but it failed to gain traction in the Federal policy outlook Biden’s goal. The Biden administration is reportedly consid- Republican-controlled state Legislature. The 2016 “It’s conceivable you could get a (federal) ering expanding the calculation to include environ- energy law rewrites that increased the renewable Although more targeted bills are expected or are clean energy standard set up in a bipartisan way,” mental justice and long-term effects on disadvan- target from 10 percent to 15 percent by 2021 also cre- moving through the state Legislature involving tax- Hofmeister said, referring to other potential clean taged communities, and reports have suggested it ated a new long-term utility planning process known ation on solar projects and lifting caps on utility roof- energy policies through budget reconciliation or could fall in the $100-per-ton range. as Integrated Resource Planning (IRP). Under state top solar programs, some of the major energy policy expanding renewable energy tax incentives. “It makes the benefit side of reducing carbon law, regulated utilities are required to model various shifts ahead may be coming from the federal level. Another climate change directive Biden laid out much more valuable,” Hofmeister said. “As we’re scenarios for renewable penetration that factors in Shortly after taking office, the Biden adminis- at the start of the administration that could have reducing carbon emissions across our business, costs and emissions. tration announced goals for a carbon-free power sweeping effects across the energy sector is revisiting things that are less than the social cost of carbon might be cost-justified versus (technologies) that are five- to 10-times higher.” Varnum’s Lundgren expects to see a new social cost of carbon calculation particularly affecting oil and gas pipeline projects. Meanwhile, clean energy advocates and state officials also are tracking closely what the Biden SBAM Energy Solutions administration’s infrastructure spending package will look like, which has reportedly been pegged at Get access to special services that can help your small business around $3 trillion. “There’s so much we could do with more federal become more energy e cient. Plus, you don’t have to do it money on the climate side around infrastructure, alone! We’ll provide you with personalized assistance whether it’s building out electric vehicle charging, weatherizing houses in Michigan or electrifying as you navigate the ins and outs of energy heating and buildings,” said Charlotte Jameson, pro- management. gram director for legislative affairs, drinking water and energy with the Michigan Environmental Request your free assessment at sbam.org/energy. Council. “To my mind, a lot of that work needs to happen particularly in low-income and communi- ties of color.” Eichler Clark said the Whitmer administra- tion will be closely following federal infrastruc- ture plans with an eye toward water quality and climate change. “Obviously, we’re interested in what actions the Biden administration might take around climate and mobility and how that overlays with what we’re doing in the state,” she said. “We’ll be paying a lot of attention to that.”

10 MARCH 29, 2021 / MiBiz Visit www.mibiz.com To transport the same amount of energy Line 5 delivers by rail, barge or truck means more traffic, more emissions, more risk and higher fuel costs.

Governor Whitmer wants Line 5 shut down with no plan to replace the essential energy it delivers.

Take action at enbridge.com/supportLine5.

Visit www.mibiz.com MiBiz / MARCH 29, 2021 11 FOCUS: UTILITIES & ENERGY 5 energy projects to watch

he transition away from large coal 3. Calhoun Solar Center plants is reducing power-sector Size: 200 MW emissions while also changing the Source: Solar state’s physical landscape. Hulking, Location: Convis Township, Calhoun County centralized power plants are leaving Status: Chicago-based renewable energy devel- Tvacant footprints for redevelopment, including oper Invenergy LLC recently announced a in Grand Haven with the recent demolition of 25-year agreement to sell 140 MW of power from the J.B. Sims Generating Station. Meanwhile, the project to Consumers Energy. The power pur- more distributed wind and solar projects are chase agreement is subject to Michigan Public also raising key land-use questions and, at Service Commission approval, but the project times, vocal opposition. Here’s a list of five aligns with Consumers’ plan to add about 1,100 large-scale generation projects planned around MW of solar to its portfolio by 2024. The 1,200- West Michigan. acre project is expected to be completed in 2022.

— Compiled by Andy Balaskovitz 4. Freshwater Solar Size: 200 MW 1. Heartland Farms Wind Project Source: Solar Size: 200 megawatts (MW) Location: Day Township, Montcalm County 5 Source: Wind Status: New York-based developer Ranger 4 1 Location: Gratiot County Power’s proposed $200 million solar project is Status: The Michigan Public Service Commission one of two large-scale renewable energy projects in March approved a build-transfer agreement under consideration in Montcalm County and between Consumers Energy and developer would be the company’s third large-scale solar Heartland Farms Wind Project LLC for the proj- project in Michigan. As of late last year, the devel- ect, which is expected to be in operation by the oper was still securing leases with private land- end of 2022. Consumers plans to own and oper- owners for the 2,000-acre project, the Greenville ate the 72-turbine project by then in order to Daily News reported. qualify for federal Production Tax Credits. 5. Montcalm Wind 3 2. Indeck Niles Energy Center Size: 375 MW Size: 1,100 MW Source: Wind Source: Combined cycle natural gas Location: Montcalm County Location: Niles Status: Virginia-based developer Apex Clean 2 Status: Construction on this $1 billion power Energy says wind resources in Montcalm plant started in the summer of 2019 and is sched- County, as well as large swaths of rural land uled to be operational within the next year, said and access to transmission, would make an David Hicks, vice president of business develop- ideal site for a large-scale wind energy proj- ment for Indeck Energy Services, which co-owns ect. Plans call for spreading 75 wind turbines the facility with South Korean companies Korean across active farmland. While the project has Southern Power Co. (KOSPO) and Daelim Corp. sparked backlash from area residents with con- ILLUSTRATION BY KAYLEE VAN TUINEN The combined cycle natural gas-powered facility, cerns about changes to the landscape, support- which was first proposed more than 20 years ago ers say it would help local residents diversify 1. Heartland Farms Wind Project - Gratiot County but faced yearslong delays, will produce electricity their income with lease agreements and pro- 2. Indeck Niles Energy Center - Niles for the PJM power grid that reaches into Southwest vide revenue to local schools and governments. Michigan and displace power from retiring coal As of last month, developers were reportedly 3. Calhoun Solar Center - Convis Township, Calhoun County plants elsewhere in the region. “Particularly in the still gathering wind resource data from mete- last 10 years, you’ve seen a very strong movement orological towers but hope to have the project 4. Freshwater Solar - Day Township, Montcalm County to replace aging coal-fired and nuclear generation operational by 2024. Apex Clean Energy is near- 5. Montcalm Wind - Montcalm County with state-of-the-art natural gas generation and ing the completion of a 385 MW wind project in renewable power,” Hicks told MiBiz. nearby Isabella County.

OCTOBER 15, 2018 VOL. 30 • NO. 26 Promote your company SERVING WESTERN MICHIGAN BUSINESS SINCE 1988 with reprints

Stephen Waterbury, Warner Norcross + Judd LLP. PHOTO: KATY BATDORFF A focus on serving others serves Waterbury

SEPTEMBERwell 29, 2014 during four-decade legal career VOL. 26 • NO. 25 Waterbury’s career accomplish- ground, make people calm and SERVING WESTERN MICHIGAN BUSINESS SINCE 1988 By MARK SANCHEZ | MiBiz [email protected] ments as an M&A adviser, men- find ways to help them out. If your company has been featured tor and community builder That’s a rare commodity, espe- riends and family saw Stephen Waterbury heading toward a earned him recognition as the cially with an intelligent attor- career in law before he ever did. first-ever winner of the Western ney who does a lot of deals.” A desire to serve others and help them succeed was the driv- Michigan Dealmaker Hall of Barnes & Thornburg LLP ing factor that led him to law school and to go on to a lengthy, Fame Award. attorney Michael Campbell, Preparing for accomplished legal career. Waterbury is “the last of who served with Waterbury FAfter graduating with an undergraduate degree from Michigan State a dying breed,” said Richard on the board of ACG Western University, he applied and earned acceptance to Harvard Law School. Noreen, CPA, a tax Michigan during the A Lansing native, he later joined Warner Norcross + Judd LLP in partner at BDO USA M&A AWARDS early 2000s, agrees. Transition Grand Rapids, where he’s practiced business law for nearly 39 years. LLP who has known He’s also been on the During his career, he has handled the legal work for hundreds of merg- Waterbury for a INDUCTEE: other side of some in MiBiz, the exposure you received quarter-century and WESTERN MICHIGAN deals involving cli- Small business owners need to ers and acquisitions domestically and globally, and served as a mentor to the firm’s young associate attorneys at the dawn of their careers. worked with him on DEALMAKER ents Waterbury rep- HALL OF FAME plan ahead to ensure smooth “Others assumed I would go into law earlier than I assumed I would several client trans- resented, and praises go into law,” Waterbury said discussing his career during an interview actions. He praises him for his approach. OCTOBER 14, 2019 leadership transition VOL. 31 • NO. 26 at the law offices of Warner Norcross + Judd overlooking downtown Waterbury’s “calming influ- “Steve is a true gentleman. Grand Rapids. ence” and consensus-building He’s sharp. He’s respectful of SERVING WESTERN MICHIGAN BUSINESS SINCE 1988 “I ended up viewing it as a way of serving people — I wanted what- approach on getting deals done. everybody — the clients, the By NICK MANES | MiBiz ever I did to have that be a central component,” he said. “At its highest “No matter how contentious other attorneys. He’s a pleasure [email protected] and best, the legal profession is a service profession focused on help- something was, Steve always to work with, even if he’s on the ing people succeed.” found a way to find common other side,” Campbell said. reached more than 35,000 business or small family-owned busi- Continued nesses, getting the right succes- HELMINSKI PILOTS AUXO TO sion plan in place can be a long, COPYRIGHT 2018 © MIBIZ. drawn-out undertaking. Just ask Marcia Elgersma. GROW COMPANIES WHILE FShe and her husband, Al Elgersma, real- ized more than a decade ago that they needed to figure out a succession plan MAINTAINING WHAT’S ‘SACRED’ for Al’s Excavating Inc., the nearly four- executives in West Michigan. Now decade-old small business they co-own in Hamilton, Mich., about 10 miles southeast Marcia and Al Elgersma, the owners of Hamilton-based Al’s Excavating, were typical of By JESSICA YOUNG | MiBiz evaluated hundreds of opportunities and of Holland. At the time, they wanted to out- many small family-owned business owners in that they lacked a formal succession plan [email protected] closed on several transactions, includ- line the roles their children would take on to transition to the next generation of leadership. After a failed attempt to develop a plan, ing deals for Prestige Stamping Inc. and in the excavating company going forward. the company tapped a team of local advisers to develop a leadership strategy and suc- eff Helminski, co-founder and Andrie LLC. But that was in the year 2000 and despite cession plan that it plans to launch Dec. 1. PHOTO: KATY BATDORFF managing partner of Auxo “Both companies had a strong focus on their best intentions, the planning process Investment Partners in Grand people and culture with honest, hardworking, Rapids, successfully leveraged down-to-earth people throughout the orga- ultimately ended unsuccessfully. business consultants and did a deep dive a partner at DWH LLC, a Grand Rapids- his atypical experience and nization from the shop floor to the C-suite,” based business consulting firm. “It just didn’t work at all,” said Elgersma, into the makeup of the family and analyzed Jpath into the world of private equity in said Helminski, the winner of the investor the company’s sec- which members were qualified to hold the Koeman was one of a handful of people multiple deals last year. category in the 2019 MiBiz Dealmakers of the you can share the news about retary and trea- various leadership positions. to advise the Elgersmas as they put their Helminski has a diverse professional Year Awards. “The sellers of the businesses, surer. “We didn’t Such delays in putting together a for- plan together. background, including experience in both families, cared deeply about the legacy understand the mal plan of succession are not uncommon “In the case of Al’s Excavating, it took manufacturing engineering, high-volume of the company, the employees and making assembly operations management and sure they found a successor that was going processes and we among small and middle-market com- two years to make changes in the com- real estate development. His firm, Auxo, to provide them with not only sustainable 81% didn’t know how to panies, experts say. In West Michigan, 81 pany,” Koeman told MiBiz. “Typically, there now specializes in investing in and grow- employment, but hopefully, greater oppor- determine who was percent of family-owned businesses lack is a mindset that the owners’ sons will just tunities going forward.” Percentage of West ing founder- and family-owned industrial, The businesses found a perfect fit in Michigan family- capable of leading.” a formal succession plan, according to the take over. In many middle-market com- manufacturing and business services companies. values and approaches with Auxo, accord- owned businessses In the mean- results of a study conducted by the Family panies, that’s not always feasible, and you While he has managed dozens of trans- ing to Helminski. with no succession time, the Elgersmas Owned Business Institute (FOBI), a joint don’t really know that until someone from actions involving hundreds of millions The October 2018 deal for Prestige plan, according to found it was easier project of the Grand Valley State University the outside talks with people in the com- of dollars during his career, Helminski Stamping was Auxo’s fifth acquisition in 13 the Family Owned your company by ordering MiBiz to grow their com- Seidman College of Business and Western pany. … These people can still be owners, believes last year’s transactions stand months. The Michigan-based niche manu- Business Institute. pany to $6 million Michigan University’s Haworth College of but they don’t have to be managers.” out as significant in establishing Auxo’s facturer of custom-engineered stampings in annual sales Business. During the two-year analysis of Al’s partnership-based model and the firm’s for the fastener industry selected Auxo than it was to figure out the transition plan, Simply having a succession plan in Excavating — during which time DWH closely-aligned relationship between as the buyer even though the company investors and fund managers. was not the highest bidder, according to she said. After their failed try at succession place is not really enough for most com- served as general manager of the company With a fully subscribed fund, Helminski Helminski. planning, the business went back to its old panies, sources said. Rather, families and so it could continue operating during a had the ability to invest in 10 to 15 com- The reason: The seller was concerned model and the owners “just hunkered in.” other shareholders in the business should busy construction period — the research panies in the first few years after build- about the future of the company’s employ- It wasn’t until more than a decade later do a thorough analysis of the company showed that members of the Elgersma ing Auxo from scratch. Last year, Auxo ees and younger generations of the found- and based on a referral from a friend that itself and the different people who could family from both the second and third ing family that remained in the business, which aligned better with Auxo’s values the owners of Al’s Excavating met with take on leadership roles, said Kirk Koeman, Continued on next page reprints. WINNER/INVESTOR: and longer-term investment approach. Jeff Helminski, co-founder and managing partner, Auxo Investment Partners. JEFF HELMINSKI In February, Auxo acquired Andrie, a MIBIZ PHOTO: KATY BATDORFF Co-Founder and Managing Partner, bulk marine transporter of specialty prod- COPYRIGHT 2014 © MIBIZ. Print subscriptions are free to qualified individuals who are employed in West and Southwest Michigan. For further information about MiBiz, visit www.mibiz.com. Auxo Investment Partners ucts including cement, liquid asphalt, light Being based in the same community professionalize certain aspects of the busi- oil petroleum products, and calcium chlo- as many family- or founder-owned busi- ness that haven’t yet been professionalized, Brief business description: ride throughout the Great Lakes. Andrie nesses is important when the firm is com- or haven’t been developed into a more scal- Private equity firm that special- operates a fleet of 19 tugs and barges out municating with a potential target, he able function within the company, that’s izes in investing in and growing of Muskegon, Helminski’s hometown. added. going to take change.” founder- and family-owned indus- The company, a mature industrial busi- “My background is not the prototypical Stabilizing long-standing, family- trial, manufacturing and business ness and “market leader in the niche that path to being in the private equity invest- owned business cultures while at the same services companies they serve within their sector,” checked ing world,” Helminski said. “When I’m time growing profits is “one of the most dif- Personal information: Wife, important boxes for Helminski. having a conversation with a family that ficult things” Auxo does. Tammy Helminski, who’s a partner The acquisition also followed the firm’s is thinking about this transition that is “It’s a delicate balancing act between at Barnes & Thornburg LLP; two December 2017 deal to buy Metairie, La.- often partly emotional and partly finan- these two seemingly competing interests sons, Ryan, 7, and Dominic, 9 based M/G Transport Services, an operator cial, I can talk to the family and say ‘here’s of stability and maintaining that which is Academic degrees: MBA from of inland barges. The two firms now oper- my story, here’s my background, this is the great, with changing enough to accom- the Stanford Graduate School of ate as Auxo Marine, a newly formed plat- way I grew up in West Michigan.’ It makes plish the growth at a higher rate than what Business, master’s in Engineering form company. a difference.” they’ve historically done,” Helminski said. For more info, call MiBiz today: When Helminski launched Auxo with Even so, specializing in the acquisition Pre-transaction, the firm researches not from Purdue University, bachelor’s in mechanical engineering from partners Jack Kolodny and Fred Tedori, the of family-owned businesses also comes only a potential target’s financial viability Michigan Technological University team made “a very conscious decision” to with its own set of unique challenges and but also its culture and talent. be based in Grand Rapids. opportunities. “We have a roadmap to be able to see Community involvement: Board “Part of that was because the values of “What’s interesting is when (the busi- what things are sacred and we want to membership in Spectrum Health West Michigan align with our values, but nesses) have been so successful and there’s really protect within the business, and Hospital Group, Broadway Grand also, to put us this close to a large number a big enough end market that they could what things can be done better if the com- Rapids, St. Thomas Educational of the kinds of businesses that we’re inter- try and grow into that they often just pany is going to grow and scale up beyond Support Services ested in connecting with throughout the haven’t done yet,” he said. “In knowing that the point that they’ve achieved today,” he 616-608-6170 Great Lakes region,” Helminski said. they need to do certain things differently or said. COPYRIGHT 2019 © MIBIZ

12 MARCH 29, 2021 / MiBiz Visit www.mibiz.com Renewable natural gas, battery storage to play key roles in low-emissions future

By ANDY BALASKOVITZ | MiBiz “There’s all of these DTE Biomass Energy is also developing RNG built an average of about one RNG project [email protected] projects in Wisconsin. between 1982 and 2011, or 31 total projects in different value streams Last year, San Francisco-based Brightmark the U.S. Since 2011, 157 RNG facilities are now in he ability to store intermittent renew- LLC announced a partnership with three West operation. Escudero expects about 800 projects able energy from wind and solar and that come from Michigan farms that will process waste from to be online by 2030, and 5,000 by 2040. capturing methane emissions from the dairy operations in anaerobic digesters at Favorable policies like renewable energy common waste streams to displace batteries. It could be Beaver Creek Farms in Coopersville. After the standards are key to that growing deployment natural gas usage are two technolo- a supply asset, but conversion, the RNG is injected into a local gas and driving down costs, he added. Tgies poised to play a bigger role in a lower car- pipeline. “We still have a long way to go,” Escudero bon future. also useful on the In February, state Sen. Rick Outman, R-Six said. “If you compare the RNG industry to large- While they play separate roles and are at Lakes, introduced Senate Bill 138 that directs scale wind and solar, they had a 15-year head different stages of adoption, energy storage distribution grid to state officials to study RNG’s potential state- start on us. We’re playing catch-up in some and biogas — also known as renewable natural wide, including for various energy customers. respects.” gas — are poised for growth improve reliability.” “Renewable Natural Gas is an underutilized The MPSC’s Peretick hopes RNG follows under increasingly aggres- resource that can help control greenhouse gases similar trend lines as renewables and, more sive state and federal cli- and provide farmers, families, and others in my recently, energy storage. mate policies. — BRANDON HOFMEISTER, district with financial benefits to help their busi- “I hope renewable natural gas will be able They also both face sim- SVP of Governmental, Regulatory and Public nesses,” Outman said in a statement last month. to benefit from the lessons of energy storage in ilar barriers to more wide- Affairs at Consumers Energy Johannes Escudero, founder and CEO of terms of regulatory barriers and reducing the spread deployment, notably the California-based Coalition for Renewable roadblocks that the new technology might see,” cost and supportive policies. Natural Gas, told MiBiz that RNG has been on an she said, “and use energy storage as a bit of a “That’s how most new exponential growth curve in recent years after trailblazer where it’s setting the path for some technologies are introduced being introduced in the early 1980s. Developers new technology adoption.” Peretick to commercial systems: you structure those business models and pay They start out pretty high on that cost and adop- for those services.” tion curve. As more is produced and becomes Lawmakers in Lansing have directed state more prevalent, the cost generally starts to regulators to study battery storage’s potential in decline pretty quickly,” said Michigan Public Michigan, while major utilities see it playing a Service Commissioner Katherine Peretick, who larger role in the future. was appointed by Gov. Gretchen Whitmer in Jackson-based Consumers Energy plans to December. file its next long-term energy plan with regulators Peretick was formerly the director of engi- in June, and storage may play a bigger role than Pipeline Solutions. neering at Toronto-based energy storage proj- previously forecasted, said Brandon Hofmeister, ect developer NRStor Inc., which focuses on the the utility’s senior vice president of governmen- commercialization of storage projects. Already tal, regulatory and public affairs. Consumers in her role at the MPSC, Peretick is helping lead has already rolled out pilot storage projects on Proven Results. an energy storage working group laid out in its distribution grid and proposed in its latest Whitmer’s MI Power Grid initiative. rate case a residential storage pilot program that Peretick says energy storage technology is still would allow batteries to essentially act as backup • Engineering • Project Management “undervalued” despite being “very advanced.” generators. The electric vehicle industry has helped push “There’s all of these different value streams battery storage in particular, which has spilled that come from batteries,” Hofmeister said. “It • Survey/GIS • Environmental Permitting over into the power sector. could be a supply asset, but also useful on the and Field Services “Us in the electric power industry have been distribution grid to improve reliability.” • Pipeline Integrity seeing the benefits of the scale and cost bene- • Field Services • Environmental Inspection fits the electric vehicle industry has generated,” Renewable natural gas Peretick said. In 2018, the Federal Energy Regulatory Consumers Energy also is “definitely taking a Commission issued an order directing regional look” at renewable natural gas, which will be power grid operators to begin integrating and relied upon in part to meet the utility’s net-zero CONTACT US AT… appropriately valuing energy storage. The methane emissions goal by 2030 for its natural Midcontinent Independent System Operator gas distribution system. Although about 80 per- 616-392-5938 | HollandEngineering.com (MISO), whose territory includes the Upper cent of that will be done with delivery infrastruc- Peninsula and most of the Lower Peninsula, in ture improvements, the remaining 20 percent March requested a three-year extension for doing will be met using renewable natural gas. so, generating opposition from clean energy “We don’t need a lot of RNG because it takes a lot advocates. of methane out of the atmosphere and it’s a power- Despite relatively high costs and a lack of stor- ful carbon abatement, too,” Hofmeister said. age mandates in Michigan, supporters tout its Renewable natural gas is made from anaero- versatility. bic digesters that process waste from sites includ- “It can be used really in any part of the mar- ing landfills and farms. It can be used for trans- ket, whether it’s wholesale, retail or even res- portation, heating and electricity, and can also idential,” Peretick said. “It has so much value be added to existing conventional natural gas that it can be used throughout the system. The pipelines. main reason it hasn’t been adopted to its full Detroit-based DTE Energy is the only Offices: Holland, MI • Southfield, MI potential at this point is because of these leg- Michigan utility that offers a program for custom- acy restrictions on implementation and how ers to voluntarily purchase RNG. Its subsidiary

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14 MARCH 29, 2021 / MiBiz Visit www.mibiz.com FOCUS: UTILITIES & ENERGY Michigan’s oil and gas producers weather pandemic amid long-term demand questions

By ANDY BALASKOVITZ | MiBiz and North Dakota said Jason Geer, president and CEO of because of the drop in production, which the nearly 70-year-old pipeline to con- [email protected] — into a short-term the Michigan Oil and Gas Association. helps fund the division’s oversight pro- tinue operating for another 100 years tailspin. Within the past decade, prices and gram. Annual well inspections had dipped is counter to climate change policies. fter production ground to But producers Michigan’s production had trended to about 14,500, but have since rebounded Essentially, the debate centers on oil a halt for Michigan oil and drawing Michigan downward beginning in 2014 when to about 20,000 per year. demand in economies that place greater gas producers early in the sweet crude man- prices started to drop below $50 per bar- value on low-carbon alternatives. COVID-19 pandemic, wells aged to rebound rel, or what Geer called the break-even Long-term outlook Although long-term, 50-year fore- resumed activity later in the after short-term point for producers. Prices are now hov- casts raise questions about the indus- Ayear for an improved short-term outlook. well closures, ering around $60 per barrel. Deciding As Michigan’s oil and gas industry con- try’s role, Geer is unconcerned about the State officials report that oil and con- Geer largely because the whether to drill a new well is “risky” tinues its relatively modest pace, public industry’s short-term prospects. densate production reached about 4.3 state is a relatively when prices stay around or below that debates around the industry rage. Michigan is also home to unique million barrels in 2020, down from just small oil producer. break-even point and projects can be Gov. Gretchen Whitmer, Attorney geological repositories that have the more than 5 million barrels the previous “Overall, the 40-year investments, Geer said. General Dana Nessel and environmen- potential to store carbon emissions that few years. Natural gas production contin- drop in production “Oil has been pretty cheap, and that tal advocates are in a legal standoff over are captured from sources and injected ues to see a steady 8-percent year-over- during that COVID has definitely impacted our ability to the future of the Line 5 pipeline, which deep underground, otherwise known as year decline, said Adam Wygant, direc- period could have drill,” Geer said. “The pandemic crashed Geer said many Lower Peninsula oil pro- carbon capture and sequestration. Using tor of the Department of Environment, been a lot worse prices into negative territory, and that ducers rely on to offload their product. those injections to also extract more Great Lakes and Energy’s Oil, Gas and and closer to pro- gives you pause on whether you want to There’s also speculation about the through enhanced oil recovery present Minerals Division. duction being cut make the investment. The price of oil is industry’s long-term role as countries a pair of potentially new revenue streams Last year’s oil activity was a “direct Wygant in half,” Wygant starting to go up, and high prices mean begin to more aggressively tackle climate for companies and landowners. response to oil wells being shut down due said. “We hope it more activity for us. We feel pretty good change, including the U.S., where the “I think we’ll see some type of tran- to precipitous low prices we saw because rebounds this year from companies put- that if the price continues to hover in the Biden administration has announced sition, but like everything else, it comes of COVID,” Wygant said. Widespread stay- ting wells back online as prices go up.” $60 range, we’ll probably have a pretty economy-wide net-zero carbon emis- down to cost and what consumers want,” at-home orders choked off oil demand Oil prices — or what producers are good summer.” sion targets by 2050. Geer said. “A lot of (consumer products) globally, at one point sending prices neg- paid per barrel of extracting supplies Wygant said well inspections have also Tribes and environmental groups are also made from oil and gas — that ative and throwing the industry — partic- from deep underground — are a major rebounded since 2016 when the oil and have also injected climate change into need is not going away. We think we’ll ularly in large producing states like Texas determinant of the industry’s future, gas division faced annual budget shortfalls the Line 5 debate, arguing that allowing weather it just fine.”

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Visit www.mibiz.com MiBiz / MARCH 29, 2021 15 CONGRATULATIONS TOP WINNERS 2021 MiBiz M&A DEALS OF THE YEAR

PROFESSIONAL SERVICES CATEGORY MANUFACTURING CATEGORY RETAIL SECTOR CATEGORY In a deal valued at $400 million, The Shyft Group was recognized in In its largest acquisition to date, Acrisure acquired the insurance a pair of company-shaping deals: Zeigler Automotive Group was practice of artifi cial intelligence the sale of its Emergency Response recognized for its acquisition of leader Tulco, LLC, bringing best-in- business segment to Wisconsin- three luxury automotive dealerships in class data science, AI and machine based REV Group and the acquisition the Chicago Area, adding 5,000 new learning capabilities to the insurance of Waterville, Maine-based F3 MFG units per year and projected brokerage industry. Inc., an aluminum truck body and $350 million in yearly sales. accessory manufacturer.

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16 MARCH 29, 2021 / MiBiz Visit www.mibiz.com FINANCE MiBiz roundtable: M&A experts forecast

strong deal flow in Jeff Helminksi, Rajesh Kothari, Deidra Mitchell, president John Pollock, Peter Roth, M&A managing partner, managing director, and CEO, Waséyabek managing director, partner, Varnum LLP Auxo Investment Partners Cascade Partners LLC Development Co. LV2 Equity Partner LLC post-pandemic rebound PHOTOS: JOHN POLLOCK. SETH THOMPSON-GREENFROGPHOTO

By MARK SANCHEZ | MiBiz “They’re going to put their number in the ground “But the acceleration in year-ago inflation will be Mid-market deal flow increased 5.7 percent sequen- [email protected] and they have some room, but they’re very careful transitory, and both overall and core CPI inflation tially from the third quarter to the fourth with pur- not to get dragged higher than what they’re com- will slow on a year-ago basis in the second half of chase multiples seven times EBITDA, according to ergers and acquisitions should fortable with,” Roth said. “So, I have seen a number 2021. Inflation will then pick up somewhat in 2022 BlueWater Partners. remain strong through 2021 — of times in the last bit of buyers walking away and as stimulus supports a strong economic rebound, Jeff Helminksi, managing partner at Auxo driven by several factors affecting saying, ‘Our number’s our number and if somebody giving businesses more pricing power.” Investment Partners in Grand Rapids, believes deal flow — although finding a good wants to pay silly money, have at it.’” In an updated U.S. outlook this month, econ- there’s a “bunch of people” who planned to sell their deal may come with a high price for omists at Comerica Inc. forecasted the consumer business within the next two to four years, “and they Mbuyers. price index to rise from 2020’s 1.9 percent to 2.6 just weathered this storm and said, ‘Well, I don’t Strong activity Participants in a recent MiBiz M&A roundtable percent for 2021, then ease to 2.2 percent for 2022. know if I want to go through that again, I’m pulling discussion say they expect valuations to stay high In its annual survey, Citizens Financial Group found Comerica economists expect that the Federal the parachute now.’” for the foreseeable future — perhaps unreasonably “upbeat expectations” for both valuations and deal Reserve’s “highly accommodative” monetary pol- Potentially higher federal tax rates under so at times — as buyers compete for good deals in flow in 2021 in what was termed a “decidedly opti- icy “will likely be maintained through this year and President Biden also could drive more sellers to the a robust market. mistic” M&A outlook. Survey data “suggests that possibly much longer.” market in the months ahead, Kothari said. A massive capital overhang, low interest a rush of middle‑market M&A is likely in 2021,” The prospect of higher taxes, particularly an rates, and greater competition among buyers according to Citizens. increase in the capital gains tax, on top of the pan- in the market drove up high valuations in 2020. M&A activity in the first quarter has been strong, “You had pretty much demic and “extraordinarily high” valuations “are just Buyers ranged from strategic corporate acquirers said roundtable panelists who believe 2021 could almost six months of the kind of making people say, ‘Gosh, I should go’ and seeking to drive growth or add to platform com- become a record year for deal flow. explore it today, more so than ever,’” Kothari said. panies, to private equity investors and family “Part of that is you had pretty much almost six year get trashed last year, offices. Lower deal flow after the U.S. economy months of the year get trashed last year, so there’s so there’s a level of pent- Move to Zoom fell into recession in the COVID-19 pandemic a level of pent-up demand that’s driving it. We’ve also contributed to increasing valuations that never started out a year as strong as we’re starting up demand that’s driving As the COVID-19 pandemic took hold last spring are expected to remain elevated even as activ- out 2021,” Kothari said. “When I talk to my friends it. We’ve never started out and states imposed travel and stay-at-home restric- ity picks up. in the industry around the country, everybody is tions, M&A professionals resorted to Zoom or other “You throw those all in the mix and you don’t saying pretty much the same thing. There’s just a a year as strong as we’re video-conferencing platforms to keep deals moving. have an aggressive amount of deal flow, you’re going tremendous amount of activity and interest in the starting out 2021.” Roundtable panelists expect it to be a long-term fea- to have high valuations and you’re going to have marketplace.” ture of the deal process. high valuations for a while,” said Rajesh Kothari, As he scouts for deals in a strong market, LV2 “This is going to carry forward to some degree. managing director of Southfield-based investment Equity Partners LLC Managing Director John — RAJESH KOTHARI The cost and simplicity of doing this is going to cre- banking firm Cascade Partners LLC. Pollock remains cognizant of sellers who — because Managing Director, Cascade Partners LLC ate an opportunity to get buyers and sellers together of the nature of their business — experienced a tem- earlier and differently. There will be continued inter- High valuations porary boost during the pandemic, driving up their est and opportunity to use technology to do that in valuation. the pre-deal process and, for sure, in the post-deal Years ago companies regularly traded at multiples “You have to contend with those factors and Pandemic rebound, tax concerns process,” Kothari said. “Everyone flying in to do all of three or four times earnings before interest, taxes, make sound business decisions on what you’re of that stuff is going to cut back dramatically.” depreciation and amortization (EBITDA), Kothari willing to pay for a business. But what we struggle The COVID-19 pandemic that hammered the economy However, dealmakers should avoid falling into a said. Today a multiple of six or seven times “is prob- more with are ones where companies are trying to and many businesses last spring could drive deal flow “trap” where they rely too much on video meetings, ably the bottom end of the range, it seems like,” get paid a premium for what in our estimation is in 2021, according to the roundtable panel. Owners Helminski said. Kothari said. clearly a pandemic ‘bump’ of sorts,” Pollock said. who struggled through the economic fallout of the “People can come across very differently in this High valuations have affected a couple of “Outside of that, it’s the ebb and flow of valuation pandemic and state-ordered closures may choose to setting when you don’t know each other than it would Waséyabek Development Co.’s deals in midstream, based on supply and demand and all of the other sell now or accelerate their plans to exit the business. in-person. There’s a trap you can fall into saying, said Deidra Mitchell, president and CEO at the non- factors that are in play.” That’s similar to what occurred in the aftermath ‘Hey, I’ve met them on Zoom and therefore I’ve got gaming investment arm of the Nottawaseppi Huron of the financial crisis in the fall of 2008 that pushed a really good sense of who they are,’” Helminski said. Band of the Potawatomi. Federal policy the U.S. economy in recession. “Sometimes that’s accurate and sometimes that’s not.” Mitchell described how “uninformed” sellers “The attention to there being real risk and catas- Roundtable panelists also expect diversity, heard about the multiple that somebody else got Pollock doesn’t see that confluence of factors and trophe possibly happening is driving some of the equity and inclusion to become a larger issue in for their business, “and all of a sudden your deal “weird bubble” changing until “a change of sub- deal flow,” Roth said. “Those folks were kind of close the M&A profession. just kind of starts to fall apart.” stance” in presently low interest rates, “and that’s to the exit, then they saw a catastrophe happen and Auxo Investment Partners has sought greater Taking advantage of high valuations ranked sec- not happening anytime soon.” risks became a little more real.” diversity on its team while telling recruiters that ond among the top reasons to sell in an annual M&A A rise in inflation could lead the Federal Reserve Roth noted that “after a brief lull” when COVID- the firm wants a more diverse candidate pool, activity survey from Citizens Financial Group Inc. to begin raising interest rates, although recent eco- 19 hit a year ago, the M&A market remained robust Helminski said. Among the respondents, 38 percent said they expect nomic outlooks do not expect that to occur this year. through the latter half of 2020 when “we found our- A company’s reputation for diversity, equity and valuations for middle-market companies to increase “Overall and core inflation will pick up on a year- selves super busy.” inclusion is an issue that Waséyabek Development in 2021, while 13 percent expected a decrease. ago basis over the next few months because of com- Grand Rapids M&A firm BlueWater Partners will look at when buying, Mitchell said. Peter Roth, an M&A partner at Grand Rapids- parisons with 2020” when “prices outright declined LLC’s first quarter update this month cited data from “That’s definitely something I think you have to based law firm Varnum LLP, which sponsored the in the late winter and early spring of last year as the global financial data provider Refinitiv that U.S. mid- consider in this day and age and what that looks like roundtable, has seen some “disciplined” buyers pandemic rocked the U.S. economy,” PNC Bank market deals accelerated in the final three months and having a mitigation plan or improvement plan walk away from deals because of high valuations. economists wrote in a recent economic briefing. of 2020, growing 23 percent from a year earlier. of some kind,” she said.

Visit www.mibiz.com MiBiz / MARCH 29, 2021 17 Priority Application TECHNOLOGY Deadline March 31 Hudsonville VAR company looks THE to make inroads with tech giants TRANSFORMATION BEGINS HERE By JAYSON BUSSA | MiBiz I want to do is be able to offer them the optical dis- [email protected] play system and let them build the end user product.” Vilardi compared this dynamic to the way that HUDSONVILLE — As extended reality technology Intel creates chips and processors to go inside com- creeps into the mainstream with big names like puters rather than developing entire computers. Microsoft, Facebook and Apple racing to develop “I want to be the Intel inside of AR and VR wearable the best experiences for end users, the industry still glasses,” Vilardi said. “That’s the approach we’re after.” faces several hurdles to mass adoption. Optique’s vision system uses a micro organic SEIDMAN GRADUATE PROGRAMS However, a Hudsonville-based company that light-emitting diode (OLED) display that projects • Access hybrid and remote learning options has hovered under the radar for nearly two decades light into a mirror that, in turn, projects the images • Engage in personalized leadership development could potentially hold the solu- into the eye. The system does not push light through tion to helping these tech titans a lens like existing systems. • Tap into valuable community and business connections clear those hurdles to improve This setup eliminates the eye strain, fatigue and user experiences. disorientation that often accompanies existing head- • Executive MBA IMMY Inc. — originally mounted displays. • Professional MBA formed in 2002 in Detroit — The system was also built with mass production in is developing a display sys- mind and more cost-efficient production consisting • Master of Science in Accounting (MSA) tem aimed at curing the typi- of a few molded components and a frame. The dis- • Master of Science in Taxation (MST) cal problems that accompany play and electronics are the most costly to produce. current head-mounted dis- Vilardi said that IMMY has had discussions www.gvsu.edu/seidmangrad Vilardi plays (HMDs) used for virtual with potential partnering companies, but could and augmented reality (VAR). not name them. These displays — like Microsoft’s HoloLens, “We’ve gone down paths, fairly in-depth and Facebook’s Oculus and MagicLeap — tend to cause far down, with a couple very large computer com- OLLEGE OF BUSINESS C eye fatigue, motion sickness and other issues that panies,” Vilardi said. “Because the technology was make it less than ideal for mass adoption. still a bit premature at that point, we weren’t able to “IMMY represents, to me at least, a dying breed close those relationships. But they’re actively ask- — or at least I hope it’s not a dying breed,” said Jon ing when we are going to be ready and when we are Peddie, president of Bay Area-based computer going to have a production version. We won’t have industry research group Jon Peddie Research. As a a hard time at all getting some licensing agreements veteran of the graphics industry, Peddie has written in place.” a book called “Augmented Reality: Where we will all live,” and is an adviser for IMMY Inc. Barriers remain “Here’s a small, innovative company that is doing something that, when you look at it and understand Vilardi said that IMMY is in the process of develop- the technology, you say, ‘Holy cow, how did you guys ing tooled parts and by the end of the year should do that?’ They’re still inventing stuff that’s really hard be in a better position to land those partnership to do and they’re doing it without a $20 billion gov- deals. ernment contract.” However, as a veteran of the industry, Peddie Peddie became acquainted with IMMY Inc. and highlighted some potential struggles that come with POTENTIAL CUSTOMERS ARE SEARCHING. its original founder Doug Magyari around a decade working with big-name tech companies. ago. Over that time, IMMY — with just three inter- “IMMY’s stuff right now is good enough for nal employees — has developed a potentially game- Microsoft to jump in, and they should,” Peddie said. changing vision system that can eventually be used “The problems you face with big organizations is in head-mounted displays. something called NIH: not invented here. The dif- “What IMMY has figured out is how to get an image ficulty you have with big organizations is you have a WILL THEY FIND YOU? that is up close and personal to your eye, that doesn’t lot of people with big egos. disorient you or make you sick or confuse you, which “It’s a problem and the only solution to that is a very complicated optical problem,” Peddie said. problem is luck,” Peddie continued. “You’ve got to find someone in the organization … who doesn’t Well-kept secret wear his ego over himself all the time. That’s as big of an obstacle for IMMY as the technological IMMY, which recently started doing business as challenges.” Optique, has stood as a pre-revenue company for Meanwhile, IMMY is looking to cash in on a $30 nearly 20 years. CEO Salvatore “Sam” Vilardi now billion industry that is projected to grow exponen- reports that the company has raised roughly $14 mil- tially in the years ahead. Virtual and augmented lion to date. This includes a recent rights offering that reality is used in everything from games and gives your business the tools it needs to maximize its SEO potential. raised $800,000 for the company. entertainment to employee training in several Vilardi, a West Michigan-based engineer with industries. To find out more, call Jesper at 616.457.0300 or email [email protected]. experience bringing new products to market, has Still, the market can only grow as quickly as the been involved with the company since 2010, taking technology improves and evolves. Vilardi believes the helm last year to bring the development of its IMMY can provide the shove the industry needs. vision system across the finish line. “Honesty, I think the only reason (extended Optique’s aim is to develop and perfect its pro- reality has) not exploded is not because people prietary vision system in order to license it to one of don’t want it or the software doesn’t exist to cre- the big-named players in the industry or enter into a ate some really cool experiences,” Vilardi said. “It’s partnership. This means that the small IMMY won’t really been an issue of the display systems. (Inferior Affordable, common-sense websites. have to go head to head with industry giants. display systems) continue to let the industry down “Those guys are the big boys with a lot of deep and not let it go anywhere. That’s where we see our pockets and a lot of resources,” Vilardi said. “What advantage.”

18 MARCH 29, 2021 / MiBiz Visit www.mibiz.com POLICY

State assistance program aims to help stabilize renters, landlords

By KATE CARLSON | MiBiz Good Samaritan Ministries. planning,” Reed said. “I have been doing stimulus payments are delayed and [email protected] Under CERA, 65 percent of the funds a lot of hand-holding with my tenants. If amid lawsuits nationally from land- ($405 million) must be spent or obli- someone says they can’t pay their rent on lord groups challenging the ban as est Michigan hous- gated by Sept. 30. CERA funding comes time but they can pay it on this day, then unconstitutional. ing experts say a pro- from the federal COVID-19 aid package that’s great. We try to work with people.” Urban Pharm has only pursued gram recently rolled passed in December 2020. Of the $622 The beginning of the pandemic was legal action against tenants in order out by the Michigan million allocated to Michigan as part of “scary for everyone,” with a large num- to qualify them for state rental assis- State Housing the package, $560 million will be used ber of tenants falling behind on rent and tance, Reed said. WDevelopment Authority will help sta- directly on rental and utility assistance, not being able to access available funds. “It’s not our favorite, but that is the bilize renters and landlords who have Beach Reed with the remaining $62 million set aside However, the number of people able to only way for us to do that currently, is been struggling financially throughout The previous program had an average for case management, administrative pay their rent has improved since then, through the court system,” Reed said. the COVID-19 pandemic. payout of $3,300 per household. and legal services. Reed said. Court documents and past-due The $282 million COVID Emergency “We’re seeing more people getting According to Moody’s Analytics, $57 “By August-September of 2020, we rent notices are among documenta- Rental Assistance (CERA) program their income back to where it used to be billion remains in unpaid rent across the noticed a big uptick in people in the tion renters can use to apply to the is replacing the Eviction Diversion before COVID-19, but they’re still behind U.S. Federal and state relief packages fall restaurant industry finding other jobs or CERA program. Program that MSHDA launched in because once you’re behind, it’s hard to short of renters’ and landlords’ needs, most people were receiving assistance PURE Real Estate Management July 2020, which helped about 16,000 get back,” said Jacob Beach, program said Duy Vu, president of the Property from the state or finding income in some had 10 to 15 tenants in its residential Michigan households avoid eviction and director at Kalamazoo-based Housing Management Association of Michigan. way,” Reed said. portfolio throughout West Michigan catch up on rent payments. In addition to Resources Inc. “We’re not seeing the express concern about being able the CERA program, another $340 million need slow down.” ‘We try to work with people’ Eviction uncertainty to pay rent when the pandemic first in federal funds is waiting to be appropri- Housing Resources helped connect hit, said Jason Wheeler, communi- ated by the state Legislature, bringing the 700 households in Kalamazoo County The increasing number of tenants Though uncommon, some tenants cations director at PURE Real Estate program to $622 million. with $2 million in rental assistance who were unable to pay rent this past have fallen behind on rent by nearly Management. While housing experts say many peo- funding since the start of the pandemic year meant a tighter budget for Urban $10,000 with no recourse for land- “We were customizing plans with ple who lost jobs during the pandemic through the state Eviction Diversion Pharm LLC, even though the Grand lords under the federal eviction mor- these people. For some of them, we have started returning to work, many still Program, Beach said. In Ottawa County, Rapids property management com- atorium, Reed said. The U.S. Centers were also providing resources and need help with living expenses. 485 tenants were able to access the evic- pany is doing the same amount of work, for Disease Control and Prevention’s links to different financial opportu- MSHDA estimates that 50,000 to tion diversion funding. As of March 23, said Urban Pharm co-owner and broker eviction moratorium went into effect nities or sitting down with them and 55,000 families will be able to receive 260 people in Ottawa County were on Bethany Reed. on Sept. 4, 2020 and is set to end March making custom tailored approaches financial assistance through CERA, with the wait list or in the process of being “Our numbers have suffered pretty 31, 2021. The Biden administration to each situation,” Wheeler said. “We an anticipated average rental assistance connected to relief funding, said Jessi significantly and we tightened our belts is reportedly considering extend- were dealing with it on an individual, payout that could be as much as $10,000. Christensen, eviction diversion lead at a little and didn’t hire like we were ing the eviction ban through July as case-by-case basis.”

ADVERTISEMENT coaching opportunity on the “why” of their position, 2021. As the pandemic continues, Brown notes one of the essential components of the 3P system. the importance of actively improving employee COMMITTING TO PEOPLE-FIRST “Positioning people is just like buying machines,” morale, both long-term and on a day-to-day basis. Manufacturing Webinar Series to Focus On 3p Approach to Total Manufacturing Wood said. “It doesn’t make sense to buy a stamping Manufacturing executives will also need to find ways press to drill holes in piece of material.” to bridge the gap between traditional workplaces, and Wood advocates for a talent strategy that includes the new reality of working from home if they are to beginning with a goal and purpose for each new recruit and retain talent. hire. He suggests employers instruct their new hires with a process map to teach them their internal and COMMITMENT external customers and the results of mistakes on the Like many process improvements, the 3P approach company at large. Wood also noted the importance demands commitment from company leadership. of manufacturing executives connecting with their However, Wood notes that simply paying lip service employees, including setting aside time for open to 3P will not yield success. Executives must follow discussion on what the employees learned during their through with people-centered process improvements training process. and actively engage with their employees in open “You’re going to learn about people by asking dialogue. questions,” he said. “It begins with your onboarding “If you’re going to require your employees have process... That’s going to be the foundation of this a clean work cell, with all their tools, snacks and whole people part of the 3P process. You have to know everything organized and wiped clean, I would highly your employees and their skillsets and where they recommend that you don’t call them into your office want to add value. Once you understand that, there’s and it looks like a hurricane went through there,” plenty of different ways to train them.” Wood said. “You can talk a good game but doing and hile 2020 may be in the rearview mirror, the Too often, manufacturers express the notion WORKPLACE FLEXIBILITY showing is going to be way more effective as a leader.” COVID-19 pandemic continues to challenge they “just need bodies,” said Ben Wood, a business Ultimately, the webinar participants agreed that manufacturers, forcing them to find creative development specialist with Michigan Manufacturing COVID-19 has forced many businesses to confront the success of 3P comes down to the commitment on W unique personnel situations, whether hybrid the part of company executives to make changes in a solutions to new and old problems alike. Once again, Technology Center – West, who participated in the the Michigan Manufacturing Technology Center – West webinar. However, without considering employees’ work-from-home, or enhanced flexibility during the holistic way that best benefits the organization. and The Right Place Inc. have partnered with MiBiz to likes and dislikes, their understanding of the business pandemic. While some manufacturing executives may “These are all tips you have probably heard before,” host a new webinar series in 2021 to assist small- and and importance of their position in the organization, view adapting to these new circumstances with an Brown said. “But what you do and how you do it will medium-size manufactures in navigating the ever- simply throwing a body at the problem will only make employee-centered focus as the “fuzzy” aspect of the depend on your commitment to the organization. changing business landscape. the challenge worse in the long-run. business, it is essential if a business wants to attract These ideas aren’t new, but how you implement them The four-part webinar series will focus on the 3P “Not only does this demonstrate a lack of caring and retain talent, said Cindy Brown, vice president of are.” Approach to Total Manufacturing Management, a from leadership, but it also puts companies on a quick talent initiatives with The Right Place. philosophy built on the Six Sigma framework. Each path to destruction,” Wood said. “If the thought is that people aren’t as important Find the webinar recap webinar will take a deep dive into one of the P’s of Placing employees in roles where they are and your products, processes and services, then you’re at mibiz.com/3pwebinars the 3P approach: People, Process (two webinars), and comfortable, early in their career, gives them a going to constantly struggle to attract and retain the Product. The first installment of the webinar series, foothold in the organization and allows them to right people and get them in the right position,” Brown published in February 2021, centered on the benefits carry that comfort level on as they take on more said. of a people-first philosophy for manufacturers. responsibility in the company. It also provides a Brown points to three key human resources challenges manufactures are likely to face through

Visit www.mibiz.com MiBiz / MARCH 29, 2021 19 v Sandy Ward and her late husband, Cedric developed a children’s program at Circle Theatre and supported many programs aimed at engaging people of color in community arts throughout their life together.

With the help of Grand Rapids Community Foundation, Sandy will create a scholarship fund after her passing to support students involved in theatre. The fund will bear their names and honor Sandy and Cedric’s legacy, always and forever.

LET US HELP YOU GET STARTED We’re here to help you understand your options and explore creative ways to leave your mark on the community and causes you love. Give us a call at 616.454.1751.

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20 MARCH 29, 2021 / MiBiz Visit www.mibiz.com NONPROFIT ORGANIZATIONS

Nonprofits Campaign seeks ‘fair step up as funding’ for nonprofit Kent, Ottawa counties see child welfare agencies

rising mental By JOSH SPANNINGA | MiBiz [email protected]

health needs he Lansing-based Association of Accredited Child & Family Agencies launched a new effort in mid March call- By JOSH SPANNINGA | MiBiz ing for equitable funding for child wel- [email protected] fare agencies that provide vital services Tto Michigan families. arlier this month, Kent and Ottawa The Fair Funding for Michigan Families cam- counties separately released results paign seeks to bring funding for accredited nonprofit from their Community Health Needs child welfare organizations in line with state-run Assessment reports, which compile organizations. data from surveys of county resi- A Glimpse of Africa founder Fridah Kanin (far right) with volunteers at a recent COVID-19 “Fair funding across the system will ensure that we Edents, health care professionals, and commu- vaccine clinic for the local African immigrant population as part of a collaboration with provide Michigan children and nity leaders. Kent County. COURTESY PHOTO families with the care they need The results are published every three years in and deserve, and research does both counties and are used to help health offi- and executive director of Grand Haven-based non- doing this work rather than starting from the ground show that when you start on the cials identify pressing issues within the commu- profit Mosaic Counseling, say nonprofits are in a up and building our own work group for something front end it pays dividends for nity and develop plans to address key problem unique position to provide mental health services. like that,” Brummel said. Michigan’s children and fami- areas. This year’s data reflect a growing need for Mosaic Counseling’s small staff and “very low Especially concerning are the results that indi- lies and taxpayers,” Judith Fischer mental health services that will require new and overhead” make it nimble to address needs while cate discrimination as a major barrier to receiv- Wollack, president of AACFA and ongoing partnerships with area nonprofits. it can raise funding through grants, churches, ing health care, particularly among people with CEO of Saginaw-based Wolverine Ottawa County-based nonprofit Community foundations and individuals, she said. a disability, transgender people, and people who Human Services, told MiBiz. Fischer Wollack SPOKE plays an integral role in facilitating discus- “We’re just able to leverage that money with don’t speak English as their first language. Race AACFA is a group of accred- sions about using the assess- our partnership with therapists who are in private and ethnicity also play a large role in barriers to ited child welfare agencies in Southeast Michigan that ment’s findings to improve practice,” Lewakowski said. receiving health care. was incorporated in 1994 to advocate for the needs of the community. The group Mosaic has 95 therapists on its panel, which “We’re specifically thinking about how to Michigan’s abused and neglected children. AACFA is was formed in 2013 out of a is expected to grow to 110 soon in effort to meet approach those topics because they’re also very made up of five different nonprofits and is focused on partnership between Ottawa community needs. Lewakowski became Mosaic’s broad and complex,” Brummel said. strengthening the partnership between public and pri- County and the Lakeshore executive director in 2004, and says she’s never Much like the Healthy Ottawa Plan, Kent vate parties by influencing public policy and funding Nonprofit Alliance. seen a greater need for mental health services in County will hold meetings where nonprofits, through the state legislative process. Community SPOKE that time than now. And unlike private practices, area leaders, county officials and others discuss “Our AACFA agencies provide what we call the full Executive Director Patrick Mosaic does not turn away anyone who lives or how to address the community’s health needs. continuum of care. So a variety of us all do different Cisler says the assess- works in Ottawa County. Kent County has a long history of collaborating things,” Fischer Wollack explained. “That includes men- Cisler ment findings help inform “We’re getting referrals from other agencies, with local nonprofits, which now appears more tal health services. That includes foster care and adop- a Community Health and we want to be able to keep up with that com- important than ever. tion. That includes nonsecured residential facilities for Improvement Plan, which mitment,” Lewakowski said. “It’s tricky right now. Recently Kent County collaborated with A both (juvenile justice) and residential foster cares, and has been rebranded as the We are continuing to do it, but it’s tough.” Glimpse of Africa to provide COVID-19 vaccina- then it also includes ‘secured setting’ maximum security Healthy Ottawa Plan for Lewakowski recently received a call from an tions specifically for the local African immigrant treatment facilities for adolescents.” 2021. Planning meetings area man who had been seeking mental health population. A Glimpse of Africa played a crucial On average, foster care caseworkers who work are set to start virtually on assistance unsuccessfully for six months because role in getting the word out and making this under- for state-funded agencies such as the Department of April 15. of a lack of insurance coverage. By the time he got served population aware of the opportunity. Health and Human Services (DHHS) make substantially “That is a collaborative through to Mosaic, he was already feeling suicidal. “Some groups have language more than those who work for nonprof- planning process where we It’s a story that’s all too common in the mental barriers, we all have cultural bar- its, according to the AACFA. This has led Lewakowski engage multiple sectors in health field, she said. riers, we all have a lack of resources NONPROFITS to labor shortages for nonprofit accred- our community, from nonprofits and govern- “That’s what we hear a lot of — people who are that makes it difficult to be able NEWS ited child welfare agencies as their fund- ments to for-profits and others to really priori- uninsured or under-insured,” Lewakowski said. to access what’s available in the — ing does not allow them to compete with tize what the greatest needs are and then develop “We want people to get counseling as soon as pos- community,” A Glimpse of Africa Sponsored by: state pay rates. GRAND RAPIDS some ideas on what we can collectively do to sible, before they start feeling suicidal. We want founder Fridah Kanini told MiBiz. COMMUNITY Fischer Wollack says state agencies address those,” Cisler said. to help prevent that. Suicide is the most prevent- Kanini is Kenyan and moved to FOUNDATION rely on nonprofit accredited child welfare able kind of death, however it’s not predictable.” Michigan more than 15 years ago. agencies to help them provide necessary Mental health a main concern She says the clinic was a “very huge services for children and families, but it’s Kent County assessment success,” and that the group is open to working difficult for nonprofits to deliver the same services with The Ottawa County Community Health Needs on similar projects with the county in the future. less funding. Assessment identifies three main areas of con- Results from the Kent County Community Health “Honestly, I think the work paid off,” Kanini Wolverine Human Services has faced recent scrutiny cern: mental health, access to care, and fostering Needs Assessment also identified mental health said. “We didn’t fill out every single spot we had, from DHHS, which is seeking to revoke the organiza- healthy behaviors. as a key priority along with access to care, eco- so other communities joined us at some point.” tion’s operating license for a juvenile correctional facil- The data surrounding mental health are espe- nomic security, and discrimination and racial While the vaccination clinic was not con- ity in Saginaw County over alleged rule violations and cially concerning to health officials as the number inequity. nected to Kent County’s Community Health Needs physical abuse, according to media reports. Wolverine of area adults who report poor mental health has Kent County Health Department Public Assessment, it is indicative of the type of collabora- is reportedly appealing the findings. nearly doubled since 2017, according to survey Health Epidemiologist Maris Brummel believes tion that will be crucial to addressing community While AACFA is based in Lansing, the campaign results. One in five area adults have thought about the process to address these priorities will look health concerns in the future. advocates for fair funding for all accredited child welfare taking their own life in the past year, while — of different this year as public officials look to join “It’s definitely something to consider when agencies across the state, including in West Michigan. those — one in five have attempted suicide. Suicide existing coalitions. planning future programs and policies and initia- “We’re not just fighting for the AACFA agencies,” rates among youth are even worse, officials report. “We’re going to explore what it would look like tives,” Brummel said. “It’s really going to be kind Fischer Wollack said, “we’re fighting for the state of Cisler and Sarah Lewakowski, a psychologist to potentially join other coalitions that are already of at the forefront.” Michigan.”

Visit www.mibiz.com MiBiz / MARCH 29, 2021 21 New transit CEO shifts from high- IN THE NEWS density East Coast M&A the sale of senior preferred shares to an investment n Traverse City-based Hagerty Insurance Agency consortium led by Chicago merchant banker BDT Inc., an insurer of classic cars and high-end automo- Capital Partners. Acrisure raised another $454 million to West Michigan biles, has acquired the Detroit-based nonprofitCon - through the sale of junior preferred shares to a con- cours d’Elegance of America. The annual event sortium of investors. showcases classic, rare and notable vehicles and A Q&A with Deborah Prato, has most recently been held at the Inn at St. John’s INSURANCE CEO of The Rapid in Plymouth, Mich. According to a statement, Hager- n Small business clients of Blue Cross Blue ty will work with Concours d’Elegance of America Shield of Michigan that renew their health poli- staff to raise its profile of the event, the proceeds of cies in the second half of the year will see small rate increases of less than 2 percent. The rate adjustments eborah Prato is less than a month into her new which support automotive education and local chari- job as CEO of The Rapid, the Grand Rapids metro ties. Board Chair Larry Moss and director Tara Noftz for third and fourth quarter policy renewals are similar area’s public transit system. It’s certainly a change will continue in their roles. The 42nd annual event is to what Blue Cross Blue Shield and HMO subsidiary of pace from the expansive systems where she scheduled for July 23-25 this year. The deal adds to Blue Care Network implemented for small employ- previously held executive positions at New York City’s Metropolitan Transit Authority (MTA) a growing lineup of automotive events for Hagerty, ers that renewed policies that were effective Jan. 1 or Dand NJ Transit — some of the largest public transportation systems in the country. In an interview with which previously acquired the Greenwich Concours April 1. Rate adjustments for the third or fourth quar- MiBiz, Prato said while the scale is different, the mission to provide safe and reliable transit options that d’Elegance and the California Mille. ter renewals will average 0.9 percent statewide for the can also help fuel economic growth remains the same. n A Boston interior design, procurement and proj- Blue Cross Blue Shield PPO health plans and 1.9 per- ect management firm owned by Grand Rapids-based cent for HMO policies. You’re coming to The Rapid from massive transportation systems in New Jersey and New York City. Blackford Capital completed a merger that led How do you see that experience applying here? to the creation of a new company serving the North HEALTH CARE n It’s not exactly a one-to-one comparison and though the scope and scale is different, public transporta- American hospitality market. Blackford Capital jointly Dr. Hyung Kim has stepped down as president of tion is public transportation. The smaller market has the ability to do more and more ability to be cre- owns Boston Trade Interior Solutions with the manage- Mercy Health Saint Mary’s. Chief Medical Of- ative. For me, it’s an opportunity where I’ll get to know every employee and their name and hopefully ment teams at portfolio company Vertically Integrated ficer Dr. Matt Biersack was named interim president their spouse’s and dog’s name. That’s literally impossible to do in New York City. Products in Bloomingdale, Ill., and Boston Trade Inter- as Saint Mary’s searches for a new leader. Kim left national in Hudson, Mass. Blackford Capital acquired the position a little less than two years after joining What were some of your duties at the MTA? Vertically Integrated Products in January 2017. Mercy Health Saint Mary’s, which is part of Livonia- My title was senior vice president of people and business transformation and we were working on the n A St. Paul, Minn.-based data backup and storage based Catholic health system Trinity Health. A blocking and tackling part of engaging employees to make sure we were delivering service in the most company now has a second headquarters near Grand Mercy Health statement did not offer a reason for his effective and efficient way. If there was ever a job that I had that was tough, it’s that one. Your reach is so Rapids after being acquired by a local entrepreneur. departure. Kim became president at Mercy Health far, and trying to roll out something programmatic is difficult when there are so many employees. Mass Storage Systems Inc. announced this month Saint Mary’s in May 2019 after serving for six years as that it has been acquired by Lisa Jabara Newell, an en- senior associate dean for clinical affairs at Michigan How did you see bus ridership shift during the pandemic? trepreneur once from the Twin Cities area who is now State University’s College of Human Medicine in East Bus ridership stayed strong during the pandemic. It’s a real backbone service and it’s really recognized located in Grand Rapids. Newell rebranded the com- Lansing. that having a bus where you live is a valuable commodity. Across the country, challenges have been pany as Mass Mountain Technologies and relocat- operator availability and finding a candidate pool with a commercial driver’s license. There are difficult ed its headquarters to 3341 Ashton Road SE in Grand HIGHER ED national trends of recruiting and retaining (workers), along with private carriers offering signing bonuses Rapids Township. The company specializes in custom- n Ferris State University’s Kendall College of Art and things like that. ized data solutions for enterprise-level organizations. and Design (KCAD) has named Tara McCrackin as Newell told MiBiz that she finalized the deal a couple president after serving in an interim role since 2019. What are some of your early priorities at The Rapid? of months ago and is assembling a Grand Rapids team McCrackin, a former interior designer at Custer Inc., In my first 90 days, I need to learn. I’ve been in transportation before, but I haven’t been in this commu- that will focus primarily on sales and marketing. first joined KCAD in 2000 as an assistant professor. nity. I need to listen and learn what this community needs and wants, what customers are saying, what n Steel distributor Mill Steel Co. has purchased School officials said McCrackin’s prior experience in employees are saying, where community leaders have problems, and where business leaders have issues the commercial assets of Los Angeles-based Prassas the industry as well as a history in the classroom made where transportation could provide a solid solution. Then I’ll form some goals and objectives and move Metal Products Inc., which specializes in distributing her an ideal candidate. Ferris President David Eisler to creating a strategic plan and execution and tactics on that. My goal is that the community understands pre-painted and coated called McCrackin a “dynamic leader” whose experi- the value that transit provides. coil products. The deal ence and “understanding of the Kendall community expands Mill Steel’s geo- as a long-term faculty member makes her the right When approaching community leaders, how do you make that connection between public trans- graphic footprint while growing its reach to sources person at the right time.” portation and economic development? in the southeastern U.S. “When favorable opportuni- It’ll be a team effort on making this pitch. I only represent what we could possibly bring to the table, but ties such as this present, our aggressive acquisition NONPROFIT there is an element of what could be as we explore different types of transportation modes. We’re looking strategy allows us to transact quickly to the benefit n Muskegon-based Goodwill Industries of West at on-demand service in Kentwood and Walker — that will be new. Transit could be part of the solution. of our customers,” said Pam Heglund, president and Michigan Inc. is one of three organizations state- If it’s not the cure, it could definitely be part of what gets us to a financially sound solution. chairperson of Mill Steel, which is headquartered in wide that was selected to pilot an initiative assisting Cascade Township and operates five service centers lower-income workers with affording and accessing How can metro transit systems improve under financially constrained conditions? across the U.S. Terms of the deal were not disclosed. child care. Serving Muskegon County, Goodwill Indus- (The Rapid) has a pretty good capital program. It’s healthy. We’re going to get creative with some of our n Caledonia-based Aspen Surgical Products tries of West Michigan joins United Way of Northwest subsidy partnerships and seek non-traditional solutions to what’s been there. It’s pretty well settled that Inc. has acquired BlueMed Medical Supplies Inc., Michigan in Traverse City and Saginaw Intermediate transit provides value to properties and businesses. I see public transit as the great connector, as valuable a Canadian manufacturer of disposable shoe covers School District as “facilitator hubs” for the MI Tri- as any other infrastructure. Power, sewer, water and public transit are what leads to economic vitality. If and other personal Share Child Care Pilot Program. Under the program we need to flex and create a new solution, we’re open to looking at that. protective equip- administered by the Michigan Women’s Commission, ment. The acquisition expands Aspen’s portfolio of the state, employers and their employees will split the How has The Rapid rebounded since the early weeks of the pandemic when it was potentially look- disposable surgical products that are manufactured cost of child care. The initiative originated from a coali- ing at hundreds of layoffs? and then sold into the acute care market. Aspen CEO tion of interests the Grand Rapids Area Chamber Some people did take voluntary furloughs, but no one was laid off. How do we move forward? That’s the Jason Krieser called BlueMed a “highly synergistic fit of Commerce assembled in 2019 to examine ways million dollar question. What’s ridership going to do? Will remote workers stay as remote workers? In the for Aspen in terms of manufacturing and commercial to assist lower-wage workers with child care and ad- last few weeks, we’ve seen a slight uptick in commuter (rides). Year to year, it has stayed pretty steady. I operations.” The deal follows Aspen’s recent acquisi- dress a persistent labor shortage. think we’re going to come back strong. This is a community that values transportation. tions of Precept Medical Products Inc. and Protek n West Michigan Center for Arts + Technol- Medical Products Inc. Terms of the BlueMed deal ogy (WMCAT) has named Jamon Alexander as its You’re coming from a high-density city like New York to a very car-centric state like Michigan. How were not disclosed. new president and CEO. A Grand Valley State Univer- do you adapt to that major transportation culture difference? sity graduate, Alexander spent Certainly, population density drives more people to public transportation. But Rochester (N.Y.) was a very CAPITAL RAISE the prior six years as WMCAT’s similar car-centric town with a lot of discretionary riders. (Editor’s note: Prato worked for seven years n Grand Rapids-based Acrisure LLC closed on director of workforce development, where he helped as chief administrative officer at the Rochester Genesee Regional Transportation Authority.) I think our a $3.4 billion capital raise, most of which came from grow the program that provides support and career amenities and ability to get people where they need to go safely without the hassle of a car and make it the sale of senior preferred stocks to a consortium training for adults seeking careers in health care. easy will help change the mindset. This is a totally green alternative. Instead of 60 cars on the road, it’s 60 of investors. Already one of the largest and fastest- Alexander also previously led fundraising and volun- people on a bus. I think West Michigan is ready to hear that kind of messaging. growing insurance brokerages, Acrisure will use the teer efforts at YMCA of Greater Grand Rapids, capital to support further growth and technology in- Spectrum Health Foundation and the Heart of Interview conducted and condensed by Andy Balaskovitz. Courtesy photo. vestments. Of the capital raised, $3 billion came from West Michigan United Way.

22 MARCH 29, 2021 / MiBiz Visit www.mibiz.com 4.12.2021 Drinking Economy Craft Beverage Roundtable Contract Deadline: 3.31.2021 4.26.2021 Culture & Generational Change UPCOMING Contract Deadline: 4.14.2021 5.10.2021 Diversity/Equity/Inclusion Commercial Lending Quarterly: Commercial Real Estate Lending Update ISSUES Contract Deadline: 4.28.2021 5.24.2021 Food Systems Contract Deadline: 5.12.2021

New political Jane Ghosh boundaries takes helm to emerge in at Discover 2021 Kalamazoo PAGE 16 PAGE 22 JANUARY 18, 2021 • VOL. 33/NO. 7 • $3.00 SERVING WESTERN MICHIGAN BUSINESS SINCE 1988 www.mibiz.com 6.7.2021 Despite new state law, no solid plans for Kalamazoo HELP ON THE WAY Real Estate: Multifamily event center More flexibility By KATE CARLSON | MiBiz Contract Deadline: 5.26.2021 [email protected] comes with latest KALAMAZOO — A new funding tool recently signed into law is intended to help finance an event round of PPP loans center in downtown Kalamazoo, but it’s unclear if there is a desire or solid plans to move forward By MARK SANCHEZ | MiBiz with the venue. [email protected] House Bill 4816 was sponsored by former state Rep. Brandt Iden, R-Oshtemo Township, and was he new round of federal Paycheck signed into law by Gov. Gretchen Whitmer on Dec. Protection Program loans 30. The Regional Event Center Financing Act cre- includes a number of changes Kalsec ates a financing program for potential venue proj- New Priority from the prior funding intended earns ects in Kalamazoo, Ottawa, Muskegon, Ingham and Health leader on to aid small businesses hurting Washtenaw counties. Tfrom the COVID-19 pandemic. B Corp “The impetus for this leg- accelerating change As with the first round last spring and 6.21.2021 status islation was basically to allow in health care summer, borrowers working through a lend- access to another economic er can again use PPP funding from the U.S. PAGE 7 development tool that larger PAGE 22 Small Business Administration to pay oper- communities have like Grand ating expenses. JANUARY 4, 2021 • VOL. 33/NO. 6 • $3.00 SERVING WESTERN MICHIGANRapids and BUSINESS Detroit,” Iden SINCE told 1988 www.mibiz.com The new $284 billion PPP round MiBiz. “I have always sup- extends eligible expenses to property Transportation ported an event center down- damage incurred in last summer’s Iden town because I believe that civil unrest that was not covered by if urban core centers don’t insurance, supplier costs and worker grow, then they have a tendency to just die out.” Thelen to lead protection expenditures. As well, eligi- Iden was term-limited out of office at the end of ble expenses now include costs to adapt Contract Deadline: 6.9.2021 By JAYSON2020. BUSSA He served | MiBiz on the Kalamazoo County Board of The Right Place to the pandemic such as facility modifi- [email protected] for two years before he was elected cations, software and cloud computing to the state House of Representatives in 2014. and delivery services. ports“The bettorsevent center and wasonline only casino ever discussed gamers foundILLUSTRATION: KAYLEE VANamid TUINEN economic See PPP LOANS on page 12 inthemselves concept. There sitting were on never the sidelines formalized in plansMichigan for LET THE orall a formal of 2020, agreement even when about there the was size a and glimmer scope of hope ofthat the project,”the state Iden would said. launch “It’s always online been gaming pre- before development liminarilythe year discussedwas out. as a high-level concept for SHowever,the community.” people seeking to place wagers from comput- ers and mobileThe devices new legislation can likely requires do so an in event the coming center weeks. ‘inflection point’ GAMES financing program to describe the proposed size, State expects ‘extremely high’ demand for $58.5M in small business COVID-19 relief “We’re ready when the industry is ready,” Michigan Gaming Controllocation, Boardcost and (MGCB) financing Executive structure Director of the pro Rick- Kalm told MiBizposed. facility, and to specify an assessment to be By MARK SANCHEZBy ANDY | MiBiz BALASKOVITZhas a |relatively MiBiz short applica- million Stages Survival Grant because of a “far, far greater Cybersecurity That’slevied where under this high-profilethe program, whichissue standscan’t exceed at the 4 start of [email protected]@mibiz.comtion window based on previous Program beginning at 9 a.m. on need that exists than any amount BEGIN 2021, weekspercent after of state county-wide officials waivedhotel room a 15-day charges. review The period demand. Jan. 21. The applications window of resources that we are facili- 7.5.2021 standards to Natalia Kovicak on sportsassessment betting rules would and effectively then issued be a small provisional increase licenses he latestGRAND state RAPIDS effort — RandyApplications Thelen describes for the $55 the mil- for Stages grants closes at noon tating,” Michigan Economic reshape defense Regulators, fortakes 15 differentto a helm county’s platform hotelat lodgingproviders tax. just eight days later. The to provideCOVID-19 financial pandemic lion as an Michigan “inflection Small point” Business that on Jan. 28. Development Corp. CEO Mark manufacturing platforms, actionsGR pavedEconThe the financing Club way for act online defines gambling an event centerto go live.as a aid tocan Michigan shift the small course ofSurvival economic Grant development Program open in at The small window for the Burton said last week. Grant consumers gear The MGCBconvention is now hall, awaiting auditorium, each stadium, platform music — hall, including businessesWest Michigan.and enter- 9 a.m. on Jan 19. The application Small Business Survival Grant programs last year to provide PAGE 4 popularPAGE sites26 like DraftKings and FanDuel Sportsbook — to tainmentThelen, venues whothat wasprocess selected closes last atmonth noon as on the Jan. 22. Program stems from an expec- relief for thousands of small up as online undergo independentSee KALAMAZOO testing toEVENT ensure CENTER the integrity on page 3 of their Tare ailing from thenew COVID-19 president pan and- CEOEntertainment of The Right Place and live Inc. music, tation that demand will eas- businesses statewide quickly Industry 4.0: Automation OCTOBER 26, 2020 • VOL. 33/NO. 1 • $3.00 SERVING WESTERN MICHIGANgaming BUSINESS prepares SINCE 1988 games. This extensive www.mibiz.comvetting ensures that platforms are demic and resultingsays therestrictions challenges ofvenues 2020 will can likely apply create for more the $3.5 ily outstrip available funding See MEDC GRANTS on page 10 using geolocation properly and are able to properly iden- competition among cities, and generate oppor- to launch tify a bettor so that bets are not placed by someone who is tunity for a wider umbrella that includes equity underage or not located in the state of Michigan. as a key priority in economic PERIODICALS Contract Deadline: 6.23.2021 Managed service See ONLINE GAMING on page 3 development. providers play key Panel: Rural broadband development should mirror electricTrade, grid labor build-out “Every region in the world shortage is wrestling with what’s next,” advisory role in shift By MARK SANCHEZ | MiBiz developers say is critical for both The issue has become increasingly impor- said Thelen, who’s planning [email protected] businesses and households. tant duringamong the pandemic topas companies con- his move back to Michigan to work-from-home Eliminating the so-called duct business virtually and students learn from Denver, where he’s ichigan and the nation need the same “digital divide” must become as remotely, Klohsag said.priorities The pandemic brought INSIDE: currently senior vice presi- By JAYSON BUSSA | MiBiz kind of concerted effort to deploy important as extending electri- greater awareness to the issue and how in some dent of Downtown Denver Partnership Inc., the city’s [email protected] broadband internet access as 90 years cal and telephone service into areas the digitalthis divide year “is more like the Grand IndustryThelen 4.0 economic development ago when America set out Puttingto electrify piecesrural markets in the 1930s, Birgittogether Canyon,” KlohsPAGE said. 11 in Manistee SEE PAGE 4 ichard Reiffer and his staff Mrural areas following the Great Depression, eco- Klohs, CEO of The Right Place “Our children shouldn’t be sitting in cars in the agency. “The markets that can come together at Grand Rapids-based nomic developers say. Inc. in Grand Rapids, said dur- parking lot of a restaurant to get Wi-Fi so they can and move forward together are going to be win- Two hotels, downtownKlohs education center lock in community investments in Fusion IT LLC tend to The COVID-19 pandemic has heightened the ing a recent virtual panel dis- do their homework. I think that’s just Third World,” ning markets and be able to leapfrog some of the take a proactive approach need to fix a lack of affordable high-speedanticipation internet cussion of at thepost-pandemic Michigan Economic Developers recovery, Klohs local said. officials say competition.” Rwhen it comes to advising clients access in some markets of the state that economic Association’s annual conference. See MEDA on page 3 During previous recessions, Thelen said on digital strategies. By KATE CARLSON | MiBiz hold promise for the city’s transfor- Denver “doubled down, invested in itself,” which 7.18.2021 So when COVID-19 transitioned [email protected] mation. The projects also involve a allowed it to “accelerate out of recession and into a full-blown pandemic in early variety of local interests and inves- bypass that competition.” He’s leaving a “hyper March, the team was already tell- MANISTEE — The lakeshore city tors, including regional developers, growth market” in the Mile High City that’s ing the mid- of just more than 6,000 people is the local American Indian tribe and attracted investments particularly from large size companies West Michiganseeing multiple cities new downtown a nearby community college. tech firms such as Google, Twitter and Facebook. it works with to developments that local officials “There are a lot of pieces when “Virtually any tech company you can imagine West Michigan Tribal Economy start facilitating and investors say are critical for you’re transforming a downtown,” has put up a sizable outpost in Denver,” Thelen effective remote weigh policyreinvigorating changes empty storefronts, to said Scott Ward, president of West said. “It’s a healthy reminder that the product of work. diversification and emerging bet- Shore Community College, based a region matters, and talent and placemaking Fusion IT, bolster affordableter off after the pandemic. housingabout 20 miles south in Scottville. drives business decisions. There’s been a lot of which works In Manistee, two planned The college and community good movement in that area in West Michigan in Contract Deadline: 7.7.2021 with businesses A vision for the Spirit of the Woods Manistee Gateway Project pre- hotels, a larger downtown “gate- groups have been instrumental the last 10-15 years. We’ve got to continue that.” Reiffer on an ongo- sented to city officials in September. COURTESY RENDERINGBy KATE CARLSON | way,”MiBiz and a newto — education such housing, center including See MANISTEE on page 9 See THELEN on page 12 ing basis as a managed service [email protected] high-density rentals. provider (MSP), even developed The Lansing-based Michi- white papers to serve as a refer- est Michigan cit- gan Municipal League has PERIODICALS ence for effective work from home ies are examin- stepped in to help local gov- strategies. Telehealth soarsing new poli- ernments solve their housing “We started warning our clients INSIDE: during pandemic,cies to expand puzzle. The MML plans to issue early and most of them acted on Waffordable housing and create guidance in early 2021 on code it to get equipment if they didn’t M&A Deals sparkinga supportive new environment for reform that can help increase already have equipment capable healthdevelopers coverage as studies show an affordable housing units. of running their remote work,” said in Review: ongoing need for more units. That includes incentivizing Reiffer, the company’s vice presi- optionsThe renewed discussions affordable housing developers dent of strategic initiatives. “For a this year among city officials through tools like brownfield 2020 PAGES 10-11 while there, the backlog to get lap- in Grand Rapids, Holland, credits, streamlining zoning tops was about six months.” SEE PAGE 13 Kalamazoo and Grand Haven codes and a refined applica- 8.2.2021 The ongoing pandemic has come as the COVID-19 pan- tion process. ushered in a tidal wave of remote Drew Phillippy is president of Grand Rapids-based Purple East, which demic has driven high unem- “What happens is you have working for companies that were recently emerged from bankruptcy under a new law meant to help small ployment and financial strain, developers sinking a lot of either forced to send workers home businesses. raising concern among offi- money into the process and or did it out of precaution. Many cials who say it could exacer- it makes it harder for them to of these companies’ MSPs have bate the need for affordable build housing developments Insurance become the brain trust for work- housing. affordably,” said MML Policy from-home setups and strategies. Cities are attacking the Research Director Shanna New chapter problem in a variety of ways, Draheim. including revamping outdated Uneven footing Meanwhile, studies con- zoning codes to make it eas- tinue to show a need for afford- Contract Deadline: 7.21.2021 With remote work a growing trend ier for developers to include able housing throughout the before the COVID-19 pandemic, for Chapter 11 affordability in housing devel- region. A recent Housing Next many companies already had a opments, as well as prioritizing study shows at least 5,340 more rough infrastructure in place to affordable or mixed-use hous- rental units and 3,548 more make the transition smoother, For small businesses facing bankruptcy, the new ing for incentive tools such as owner-occupied units are Reiffer said. federal Small Business Reorganization Act is proving brownfield credits. needed in the next five years Still, some businesses had to to be a cost-effective and timely lifeline. A Grand Despite the effort being in Grand Rapids to meet hous- swiftly make up ground while some made to add more housing ing demand. Housing North, a of it was dictated by their respec- Rapids retailer offers an early test case. SEE PAGE 14 stock at varying price points, nonprofit that spans 10 coun- tive industries. housing advocates and local ties in the northwestern Lower See WORK FROM HOME on page 12 STORY BY ANDY BALASKOVITZ // PHOTO BY KATY BATDORFF planners are still confronting Peninsula, showed last year a stigma associated with — the region would need about and community opposition See HOUSING on page 11

PERIODICALS 8.16.2021

INSIDE: Automotive Supplier Outlook Mergers & Acquisitions Solar industry on edge PAGE 7 SEE PAGE 16 Commercial Lending Quarterly: Growth Lending Update Contract Deadline: 8.4.2021 8.30.2021 Education/Talent Development Contract Deadline: 8.18.2021 9.13.2021 Family Business Contract Deadline: 9.1.2021

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