Minor league Kelsey Perdue hockey teams named to state face uncertain Black Leadership season Advisory Council PAGE 9 PAGE 26

DECEMBER 7, 2020 • VOL. 33/NO. 4 • $3.00 SERVING WESTERN MICHIGAN BUSINESS SINCE 1988 www.mibiz.com Steelcase cyberattack serves as warning Hospitals prepare for manufacturers, experts say for COVID-19

By JAYSON BUSSA | MiBiz [email protected] vaccine distribution

s details on a recent cyberse- By MARK SANCHEZ | MiBiz curity attack against Grand [email protected] Rapids-based office furniture A giant Steelcase Inc. begin to s they manage the ongoing surge of surface, local manufacturers of all indus- COVID-19 patients, hospitals are pre- tries and sizes may want to take notice. paring to receive and distribute vac- The ransomware attack on Steelcase, A cines that could ease and eventually which shut down its global operations bring an end to the pandemic. for two weeks, was a stark reminder of The first vaccine could become available by the growing number and sophistication mid December and — under the recommenda- Staff in Spectrum Health’s primary medical-surgical unit caring for patients with COVID-19 of cybersecurity threats facing all types tion of a U.S. Centers for Disease Control and at Butterworth Hospital. PHOTO COURTESY OF SPECTRUM HEALTH HEALTH BEAT of businesses — with manufacturing Prevention advisory panel — first go to health attracting a growing number of attacks, care workers and long-term care facilities. experts say. Peter Hahn, president and CEO at Metro Health- While Steelcase declined to comment University of Michigan Health, said the CDC pan- for this report, details of the attack are el’s recommendation “makes absolute sense” given reverberating through the cybersecurity TAKING A TOLL the frontline role of health care community. workers in treating COVID-19 The furniture manufacturer first The COVID-19 pandemic is stressing a health care patients, and the vulnerability reported the incident on Oct. 22 in a filing of residents at long-term care with the U.S. Securities and Exchange workforce already coping with burnout facilities. Commission. Steelcase followed with an “There’s going to be a lim- additional filing last month indicating it ited supply early on. Health By MARK SANCHEZ | MiBiz had shut down global operations for two care workers are critical in [email protected] weeks and that business had resumed terms of taking care of folks

normal operations. The financial toll in the hospital and just mak- rofessional burnout was a big problem in health care well before COVID-19. Hahn of the attack may reveal itself when the ing sure the health system The pandemic only worsened the situation by pushing some hospitals to capac- company reports its third quarter finan- can be there for our communities,” Hahn said. ity and further stressing doctors, nurses and other medical professionals with longer cials on Dec. 17. “That recommendation rings right to me.” hours and additional shifts amid surging caseloads. A form of ransomware called Ryuk is P Metro Health has been working for weeks to This mental and emotional toll on frontline clinicians treating COVID-19 patients gener- believed to be the culprit of the attack. prepare for the vaccines. The health system pur- ates deeper concerns about elevated burnout rates and more people leaving the profession. Ransomware is a type of malware that chased ultra-cold freezers needed to store the “There’s a huge underlying, baseline discontent in terms of burnout and distress in the can infect a system and encrypt files to vaccine developed by Pfizer Inc. and BioNTech medical profession, and then we’re hit with the uncertainty of the pandemic,” said Claudia block access to them. The threat actor SE at minus-70 degrees Celsius. In the U.S, Pfizer Finkelstein, director of wellness, resilience and vulnerable populations at Michigan State then demands a monetary ransom to will produce its vaccine at its Portage facility in University’s College of Human Medicine. restore access. Manufacturers are espe- Southwest Michigan. See HEALTH CARE WORKERS on page 3 cially sensitive to these types of attacks See VACCINE DISTRIBUTION on page 22 because they can’t afford to halt produc- tion and rely on their systems to main- tain continuity. In the spring, Ryuk caused major dis- ruptions to the city of Durham, N.C., and MEDC pilot program seeks to connect corporate has also been cited in other high-profile cyber attacks. purchasers with small biz during holidays “Over the last two years, I’ve had a few organizations reach out to us just to help with (ransomware) remediation — By ANDY BALASKOVITZ | MiBiz compete directly with online giants city’s pandemic economic rebound. who was a partner for seven years at post-breach remediation — and Ryuk [email protected] equipped with a vast logistical net- He recently pitched an idea to Southwest Michigan First. “This is was involved in two of those. It’s nasty,” work and an overwhelming online Michigan Economic Development the time when we as a community said NuWave Technology Partners LLC alls to support small busi- presence. Corp. officials that’s meant to drive have to be trying any and all things CEO Chad Paalman, who is a member nesses during the holi- The situation pushed Joe large holiday purchases to area small we can to support these local busi- of regional and national cybersecurity day shopping season have Agostinelli to want to do something businesses. nesses. It’s no secret, this is a very peer groups. “It gets on your network. C perhaps never been louder about it. “We had been talking about how challenging time.” Depending on the threat actor group than this year. In September, Agostinelli became we figure out a way to encourage The MEDC liked the idea. Under behind it, the demands for ransom are The pandemic has upended executive director of the Grand the premise of all of this: You have the Grand Rapids Area Winter Buy See CYBERSECURITY on page 4 the restaurant industry, while local Rapids Area Revitalization Task a lot of large, corporate entities that Local Initiative, small businesses retailers facing capacity restrictions Force, which was created by Mayor typically do things around the holi- add themselves to a list corporate and fewer resources are forced to Rosalynn Bliss to coordinate the day giving season,” said Agostinelli, See MEDC PROGRAM on page 8

PERIODICALS Grand Angels INSIDE: taps Dale Grogan as Commercial managing Real Estate & partner Development PAGE 7 Round-up SEE PAGE 11 ON THE EXPANSION OF YOUR IN OFFICE IN COMSTOCK PARK! MEET THE TEAM! “The First Companies team was excellent with American Classic Construction Bailey communication, scheduling, and keeping our 231.834.5905 project on budget. We are extremely happy with Black Gold Transport, Inc. Dorr our new facility!" — MARK HENDRICKS, Vice President 616.896.1560 Blackstar Building Group Grand Rapids 616.735.3990 Burgess Concrete Construction Inc. Moline 616.877.0008 Cogent Excavating Marne 616.889.3281 D9 Systems Grand Rapids 616.785.8850 Fisher Door & Hardware Wyoming 616.249.2200 Glass Design, Inc. Rockford 616.874.9549 Kortman Masonry Grandville 616.293.0239 Premiere Property Services, Inc. Comstock Park 616.299.1463 Real Estate, Construction Superior Glass Co. Comstock Park & Property Management 616.784.7797 ALL UNDER ONE ROOF Zeeland Lumber Wyoming 616.879.1116 www.FirstCompanies.com | 616.698.5000

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Publisher Brian Edwards / [email protected] Associate Publisher Denise Montambo / [email protected]

Editor Joe Boomgaard / [email protected] Managing Editor Andy Balaskovitz / [email protected] (energy, policy) Senior Editor Jayson Bussa / [email protected] (manufacturing, tech, sports) Spectrum Health Medical Group Insurance Coder Pat Kinney, who has worked from home for the health system since 2013, took on a new role sani- Senior Writer tizing touch points at Butterworth Hospital and the Fred and Lena Meijer Heart Center. PHOTO COURTESY OF SPECTRUM HEALTH HEALTH BEAT Mark Sanchez / [email protected] (fi nance, health care, life sciences) Even with the promise of a vaccine in the hours, particularly if they have young children Staff Writer HEALTH CARE coming months, the inability to gauge the future at home. Kate Carlson / [email protected] weighs on staff who are trying to keep up with Hospitals are responding in a variety of ways (real estate & development, small biz) WORKERS a surge in COVID-19 patients and heavy work- to help staff cope and ease the external stresses Contributing Reporter Continued from page 1 loads, Johnson said. and anxiety away from the job. Measures include Marla Miller “What’s more challenging about COVID-19 providing bonus pay and onsite child care, “On the one hand, you are here to do what you is we can’t foresee where it ends. So, the ques- greater schedule flexibility to better balance VP of Production & signed up to do. But on the other hand, it’s at a tion is, ‘How long am I going to experience this?’” work and home, and offering financial assis- Audience Development crushing volume and pace that’s hard enough to she said. “It’s hard to heal from a trauma when tance for employees who are experiencing hard- Kristi Kortman / [email protected] sustain in the short term,” Finkelstein said. “But you’re still in it.” ship when, for instance, a spouse lost their job or Digital Specialist the fact that it’s coming back again, people are was furloughed. Danielle Affholter / [email protected] kind of running on fumes. It’s an ideal set up for “It’s just chipping away at the little things Expanding employee services burnout on top of the usual.” that are really making life hard so that we can Senior Advertising Consultant A 2019 National Academy of Medicine report West Michigan hospitals contacted by MiBiz try and help support them all the way around,” Shelly Keel / [email protected] showed the medical profession suffers from an report higher use of employee assistance pro- said Jennifer Gonzalez, chief human resources Sales & Marketing Associate alarming rate of burnout caused by high stress, grams by staff and their dependents, and say they officer at Metro Health-University of Michigan Lauren Frailey / [email protected] high demands, high patient caseloads, long hours have significantly ramped up emotional support Health. and a lack of resources. The National Academy of for staff through a number of initiatives. “We absolutely can’t change COVID, but we Medicine estimated that 35 to 40 percent of prac- At Bronson, for example, counselors rou- talk about additional things that they may need,” Circulation For address corrections or ticing physicians and nurses experience symp- tinely spend time on hospital floors to talk to Gonzalez said. “It’s a lot that our frontline staff are subscriptions, contact MiBiz at toms of burnout. nurses and other staff about how they’re man- dealing with everyday.” 1-877-443-1977 or [email protected] In a survey released in July by the American aging stress and anxiety, or to just simply let them During the pandemic, Metro Health launched Nurses Foundation, the philanthropic arm of vent, Johnson said. Bronson also does one-on- an office for professional well being to focus on MiBiz one counseling for staff physical, emotional and professional welfare ISSN 1085-4916 • USPS 017-099 staff and group ses- and to address burnout, stress, fatigue, quality Established 1988 sions, she said. of life and the work-life balance, Gonzalez said. Employees’ emo- Metro Health also provides $1,500 in emer- MiBiz is published every other week by tions include empa- gency assistance that was funded by the hospi- MiBiz, Inc., P.O. Box 1629, Grand Rapids, thy for those battling tal’s foundation. MI 49501. Telephone (616) 608-6170. Fax COVID-19, gratitude Trinity Health — the Livonia-based parent (616) 608-6182. E-mail: [email protected]. for the show of sup- company of Mercy Health in West Michigan — Subscription changes: subscribe@mibiz. port they’ve received has a Colleague Emergency Assistance Program com. Periodicals Postage is paid at Grand from the public, and that provides employees up to $2,000 in financial Finkelstein Johnson Ries Gonzalez Rapids, MI. fear, frustration and a assistance, said Ane McNeil, senior vice presi- the American Nurses Association, nearly 30 per- sense of helplessness, Johnson said. dent and chief human resources officer at Trinity POSTMASTER: Send address changes cent of almost 10,000 nurses who responded said The use of Spectrum Health’s 24-hour Health. To date, the program has provided more to MiBiz, P.O. Box 1629, Grand Rapids, MI they had experienced feelings of depression. The employee assistance program grew 30 percent than $1 million to more than 700 employees, 49501. Subscriptions are available without survey was conducted from March to July, well in the third quarter alone, said Chief Human McNeil said. cost to qualifi ed readers. Paid subscriptions before the recent surge of COVID-19 cases across Resources Officer Pam Ries. Some hospitals also have used federal CARES the U.S. Spectrum has stepped up programs to sup- Act funding to provide bonuses or hazard pay to are available to those not meeting qualifi ed Brian Peters, CEO of the Michigan Health and port staff, including deploying digital health staff, Peters said. circulation requirements. Paid subscriptions Hospital Association, cites a June article in the tools. More than 3,000 Spectrum employees Trinity Health is among the organizations that are $99/year. Single copy and back issues international medical journal QJM that reported have enrolled since September in an app called paid bonuses. The health system in November (when available) are $3 each, plus fi rst class on studies showing anxiety among medical staff Headspace that helps users decompress and gave staff a $600 “appreciation award” and a “ges- postage. Call 1-877-443-1977 to order. at hospitals globally as high as 70 percent dur- manage their stress, Ries said. ture of thanks to our colleagues for everything ing the pandemic. Symptoms of depression were Spectrum piloted the app with physicians, that they continue to do,” McNeil said. as high as 40 percent, which Peters called “an who found it so effective they started to prescribe Likewise, Spectrum Health a few weeks ago MIBIZ INC. incredibly high number.” it to patients, Ries said. The health system then paid staff a $500 bonus, Ries said. 1059 Wealthy St. SE, #202 Insomnia, burnout and emotional exhaustion provided the app to nurses and eventually all Metro Health plans to set up hospital respite Grand Rapids, MI 49506 rates were similar, according to QJM. employees, she said. centers for staff to get away between shifts, relax, 616-608-6170 phone • 616-608-6182 fax Peters worries the pandemic has “absolutely “This is just another way in which we can offer and read messages of gratitude from the com- worsened” burnout in the health care industry. an opportunity that might meet some peoples’ munity, Gonzalez said. If someone contracts the COPYRIGHT ©2020. All Rights Reserved. The present case surge this fall followed “a little needs,” Ries said. “We know not one size fits all, virus and wants to isolate away from home, they Reproduction or use of any portion without bit of optimism” over the summer when infection which is why we’ve offered a lot of different ways can get discounted rooms at the Hyatt hotel near permission of the publisher is prohibited. rates and hospitalizations declined after peaking people can engage. the hospital’s campus, she said. in the late spring, he said. “Everyone’s struggling with different things To help staff with family at home, Metro “It’s a real gut punch to have what we’re deal- right now.” Health worked with the Metro Health Hospital ing with now — not only the numbers going back Foundation and the nearby SpartanNash YMCA up, but for many hospitals in the state really seeing in Wyoming to provide free onsite child care, plus Support ‘all the way around’ record high numbers of inpatients,” Peters said. reinstituted two weeks of paid leave first provided The uncertainty over when the pandemic On top of the surging caseloads, medical per- last spring for an employee who contacts the wanes contributes to the elevated stress and sonnel face the risk and worry of contracting coronavirus or needs time off to care for some- anxiety of medical personnel, said Dr. Elishae the coronavirus while on the job then carrying one who is infected. Johnson, a psychotherapist and Bronson it home and potentially infecting their family. “It really is checking another worry off of their Healthcare’s assistant director of business Employees are stressed over keeping their fami- list,” Gonzalez said. “They know they have the health services who leads its employee assis- lies safe and the greater difficulty of balancing security if they need it to be able to stay home tance program. their home and work life as they work longer and take care of their family.”

Visit www.mibiz.com MiBiz / DECEMBER 7, 2020 3 MANUFACTURING

CYBERSECURITY Continued from page 1 pretty significant. If you don’t have clean back- ups, you’re forced to pay the ransom, or else.” NuWave has locations in Grand Rapids, Kalamazoo and Lansing and also provides local support for businesses in Traverse City, St. Joseph, Jackson and Southfield. The company specializes in working with manufacturers, put- ting Paalman on the frontlines as the industry faces these sophisticated threats. “I would hope (Steelcase) had enough net- work segmentation that it only impacted specific areas of the network, and that’s the level of detail I don’t have yet,” Paalman said. “When you go back to cases like the Target Corp. breach … (compa- nies) don’t want to share that stuff. You may never hear the exact details.” In late 2013, the Minneapolis-based retail giant faced a data breach involving millions of cus- tomers’ credit card informa- tion, leading the company to make widespread improve- Paalman ments to its cybersecurity platform.

A lesson for the industry The Steelcase attack is far from an outlier as manu- facturers of all sizes face the same types of cybersecurity In a Deloitte LLP-prepared report called focused on obtaining sensitive, personal infor- Some industries are given federal standards Stefan threats. “Cyber Risk in Advanced Manufacturing,” the mation or financial information for identity theft. to follow, but Stefan said those standards should In the “2020 State of global firm said manufacturing faces cyber risks But I think there is — unfortunately, because it’s be just part of the equation. Encrypted Attacks” report by San Jose, Calif.- of increased complexity as it adopts Industry a terrible thing — a lucrative business surround- “Regulation with cybersecurity is very tricky,” based software company ZScaler Inc., health 4.0 digital practices and solutions such as sen- ing locking up systems and demanding ransom Stefan said. “You have to strike the right balance care and finance proved to be the most popular sor technology, smart products and internet of in exchange because of how vital certain servers between encouraging companies to implement targets for encrypted attacks with manufactur- things (IoT) strategies. and these systems are to companies.” the best practices and doing what they need to ing a not-so-distant third. The industry saw 1 bil- Many assume hackers are primarily after sen- Stefan said a robust defense against cyberat- do organizationally as well as from a technologi- lion encrypted attacks through September 2020, sitive information, which might be true for heav- tacks is a mix between the right technology but cal standpoint. according to the report. ily attacked industries such as health care and also organizational structure that focuses on “There is a fine line between becoming too Ransomware is especially potent, and threat finance. However, manufacturers that don’t deal cybersecurity. This means having one or multiple prescriptive where you don’t want companies actors are upping the ante in terms of ransom. with much sensitive information should not feel people — preferably higher ranking employees that are spending a lot of money and resources Coveware, a Connecticut-based firm that spe- complacent, experts say. — who are accountable for cybersecurity. just to comply with the law as opposed to divert- cializes in combating ransomware, reported that “We’re seeing a lot more ransomware type Stefan also said cyber insurance programs are ing that money to what’s best suited to respond from Q2 to Q3 of 2019, the average ransomware attacks,” said Jeff Stefan, attorney with Varnum important for businesses, and the expenses that to threats.” payment increased 13 percent to $41,198 per LLP, who specializes in data privacy and come with cybersecurity are no longer optional attack. advanced mobility. “They’re not necessarily — they’re simply a cost of doing business. Manufacturers heed warnings John Waack, director of information technol- ogy for Holland-based furniture manufac- turer Trendway Corp., said the company has spent time over the last three years restruc- turing its cybersecurity posture from top to bottom. Fellowes Brands acquired Trendway in the summer of 2019, and Waack said Trendway has been able to tap into the company’s cybersecu- rity resources, as well. In the spirit of educated its employees, Waack and his staff implement a security awareness test and training tool called KnowBe4. The program simulates phishing attacks on employees — traditionally urging or tricking users to click on an infected link — and custom- izes training based on how the worker responds to the message. A few years ago, Waack and his team spot- ted a ransomware attack before it profoundly affected the company’s system. The event helped prompt the company to reassess its approach to cybersecurity. “We did a pretty significant review of our system security, our backups, the frequency of our data backups, and things like that,” he said. “We’ve positioned ourselves to be as insulated as possible from a ransomware attack.” “That’s easier for us than it is for Steelcase in quantities of data,” Waack added. “We’re talk- WEST MICHIGAN’S LEADING COMMERCIAL ROOFING AND SHEET METAL CONTRACTOR ing about a couple terabytes of data here, ver- A SUBSIDIARY OF EAST MUSKEGON ROOFING AND SHEET METAL • EASTMUSKEGON.COM • 231.744.2461 sus Steelcase, which is probably in the petabyte range, a thousand times bigger.”

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reporter’s NOTEBOOK Mark Sanchez writes about finance, health biz and Grand Angels taps Dale Grogan as managing life sciences. 616-608-6170 • [email protected] partner to expand reach across state

By MARK SANCHEZ | MiBiz Foundation of North Central Wisconsin. Formed in 2004, [email protected] During his tenure as Grand Angels Grand Angels con- Getting to know you president, Parker led the formation sists of the angel

GRAND RAPIDS — The new managing of three affiliated angel groups — investment network, Raising capital for a startup company is never easy, though there are steps partner for Grand Angels looks to tap his Kalamazoo-based Ka-Zoo Angels, Flint plus two active ven- entrepreneurs with a dream and a vision can take to help their cause. Early-stage investors want to back companies with innovations that statewide contacts to build a bigger pres- Angels, and Detroit-based Woodward ture capital funds. solve a problem in the market and have a potential for high growth. One ence among early-stage investors. Angels — under the Michigan Capital Paul D’Amato, man- of the first things they look at is a startup’s management team that a Dale Grogan joined the Grand Network umbrella. aging director of founder has assembled. Rapids-based Grand Angels in late In Grogan, Grand Angels brought Grand Angels’ ven- Grogan The due diligence investors perform on an investment prospect will November from Charter Capital aboard a managing partner who’s experi- ture capital funds, include not only analyzing relevant experience and the quality of the man- Partners, where he worked for 13 years. enced, known across the state and “shares said in a recent webi- agement team, but also determining how well leaders listen and learn. At Charter, Grogan helped launch and our passion for early-stage investment and nar hosted by the They’ll want to know as part of their due diligence how “coachable” a manage Michigan Accelerator Fund helping communities thrive by provid- Michigan Venture company is, said Jeff Wesley, executive director of Red Cedar Ventures I, a venture capital fund, and Charter ing capital to early-stage founders,” said Capital Association in East Lansing, the venture capital subsidiary of the Michigan State Growth Capital Fund, a mez- Grand Angels Chairman Carl that there is “soon to University Foundation. zanine fund. Erickson. be four funds.” “Team is everything. The person’s attitude is everything. When that FINANCE person walks in the door, is this somebody I can engage with? Somebody Grogan saw an opportu- Hiring an executive who “We are actively I can coach? Will they listen to advice?” Wesley said nity in Grand Angels to focus Sponsored by: can offer an outside perspec- investing out of our during a recent webinar hosted by the Michigan on early-stage investing in TCF BANK tive “as we’re thinking about the third fund and will Erickson Venture Capital Association. startups that want to develop organization’s future” and who continue to do so “Have they gone out and gotten advice from lots and commercialize an innova- knows the landscape for early- until the second half of 2021. At that point, of people they can reach out to, or are they set in tion, and to work with entrepreneurs to stage investing in Michigan was “incred- we will start investing out of our fourth their ways in terms of what they want to do? I don’t “solve a previously unsolvable problem.” ibly valuable,” said Erickson, the executive fund. We will begin raising capital for our think you can make an investment if you can’t check “I just like the intellectual pursuit of the chairman of Atomic Object LLC, a Grand fourth fund during the first half of 2021,” all of those boxes,” Wesley said. “You can have the early-stage stuff,” said Grogan, a one-time Rapids-based software developer. D’Amato wrote in an email to MiBiz. greatest technology, but I really believe in leadership entrepreneur who has started new compa- “We got the type of guy we needed,” Grogan will work with D’Amato to and I really believe that sets the stage for the whole Wesley culture and the team. I think that’s a key element of nies. “I know how hard that is.” he said. “To find somebody just like we manage the venture funds. de-risking any opportunity.” “If you think about what entrepre- were looking for and who already hap- Grand Angels has invested about $3.7 Wesley and Paul D’Amato, managing director neurs do, they recognize something that pens to be local and has a network in million in 10 companies in 2020. Of that of two venture capital funds run by Grand Rapids- can be done better or something that Michigan is just incredible.” total, a little more than $2 million was based Grand Angels, emphasized the need for hasn’t been done before, and then they from Grand Angels’ third venture capital entrepreneurs who pursue a capital investment to work like crazy to make that happen. To fund, and about $1.5 million was through Restructuring, view investors as partners. Investors want to know me. that is tremendously stimulating,” he its angel network, which includes Grand expanding reach how well entrepreneurs and the management teams said. “I know that it takes lots of hands and Angels, Ka-Zoo Angels, Flint Angels and they back will listen to their advice. lots of oars to make that happen, and Hiring a new managing partner comes Woodward Angels, D’Amato said. Wesley described the business relationship that’s a place I want to be. I want to be on as Grand Angels’ leadership works on a Meanwhile, angel investing in between the investor and a startup’s leadership as D’Amato that bench pulling on that oar.” restructuring plan that Erickson expects Michigan has grown steadily for several a marriage. “We have to be able to work together on a day-to-day basis and be Charter Capital Partners’ ven- to roll out in early 2021. years. aligned if the company is to be successful,” said Wesley, who’s also execu- ture capital funds have previously co- Grogan said his first task “is to really Angels put $73.6 million into 106 tive director of Michigan Rise, a new early-stage seed fund launched invested in deals with Grand Angels. get the lay of the land” and understand startup companies across Michigan this past summer. “I’m quite comfortable with this space. how the Grand Rapids market fits in with in 2019, which compares to $52 mil- Backed by the MSU Foundation and Michigan Strategic Fund, I know the folks,” Grogan said. “I feel like I the larger statewide market. lion invested in 84 startups in 2018, Michigan Rise invests in young tech companies in the state. Since launch- can hit the ground running on this one.” “It’s really to extend the Grand Angels’ according to an annual report from the ing in August, Michigan Rise has looked at 75 to 80 applications that Grogan’s hiring follows the departure reach across the state so that the angels Michigan Venture Capital Association. were submitted through its website and funded 10 so far, Wesley said. of Tim Parker, who left Grand Angels can have better access and more consis- The number of angel investors in He expects Michigan Rise to close roughly 30 deals a year. in October after four years as presi- tent access to higher quality deals that they Michigan also grew more than 50 percent As investors perform their due diligence on investment prospects, dent to become president and CEO of might not ordinarily see — things that are from 859 people in 2018 to 1,322 last year, startups just as importantly need to look closely at their potential investors, the Wausau, Wis.-based Community not in their backyard,” Grogan said. according to the MVCA. D’Amato said. The notion of “open and coachable” goes both ways, he added. “We need to work together, and if they think they can’t work with us, then I’d rather know that right up front. We’re probably going to work together for five or six years. That’s the average. That’s a long time, and it’s not always going to go in a straight line. Sometimes there will be tough things we’ll need to work through,” D’Amato said. Lighthouse Group acquisition could spur more Michigan deals for Chicago-area fi rm The trust factor includes entrepreneurs understanding that investors are not there to steal their idea, D’Amato said. Grand Angels has been in By MARK SANCHEZ | MiBiz people at eight offices across Michigan. Helmstetter points to business for 16 years “and we would not be in this business any longer [email protected] the company’s Troy office that opened in July as providing a if we started doing that,” he said. base for growth and potential M&A in the Detroit area. As due diligence proceeds, startups must commit to full disclosure. he Chicago-area insurance brokerage firm that “We hope to expand that office, both organically and with some Investors will hold their information in confidence, D’Amato said. Companies that withhold or decline to part with requested informa- acquired Grand Rapids-based Lighthouse Group possible mergers,” Helmstetter said. “We’ve had that office open just tion — whether financial projections or highly detailed information on their intends to look for other deals in Michigan. a short time now, but already we’re seeing some real successes over product or service — won’t get funded. Alera Group, which started four years ago and there, so we think that’s going to be a natural growth area for us.” “If we say we need 10 pieces of information and we get five, I can’t T now has more than 90 offices and 2,000 employees The deal with Alera Group came as Lighthouse Group man- make a decision. I just can’t do it, and that’s how it goes sometimes,” across the U.S., wants to accelerate organic growth through agement was thinking about “what might happen in the next few D’Amato said. “It can slow down our process, and in the past it’s also additional mergers or acquisitions in Michigan. years,” Helmstetter said. The agency connected with Alera Group, just killed deals. We just couldn’t get the information we needed and we “We’re their platform in Michigan,” said Lighthouse Group an active buyer in the industry, through professional networking. just had to pass.” Managing Partner Tom Helmstetter, who started the insur- The deal gives Lighthouse Group deeper expertise and insight Entrepreneurs need to keep in mind that they are competing for a ance agency in 1995. “That’s clearly something that they’d in areas such as data analytics, benchmarking, plan design, and capital investment and that few companies that investors look at ever get like us to explore for them, to see where that might happen. risk management and mitigation, Helmstetter said. funded, heightening the need to put their best foot forward with a polished Consolidation in our industry, you see it all the time. It’s hap- “We’ve been very successful, but just because we’ve been pitch when they do get in front of prospective investors. Grand Angels has looked at more than 2,000 prospects this year, pening at quite a quick pace.” successful in the past doesn’t mean it’s going to continue,” he completed a “serious level of due diligence” on about 300, and invested Across the U.S., Chicago-based Optis Partners LLC — which said. “It provides a national-size company with the resources. in six, D’Amato said. tracks M&A in the industry — counted 466 transactions through We’ll still retain that local touch, but have those resources a “So that’s a pretty sharp funnel,” he said. the third quarter, a decline from the 499 deals in the first nine national company can bring to us.” Investors who back startups can also bring more than needed capital. months of 2019 that reflects a disruption in deal flow during from Terms of the deal were undisclosed. Strategic consulting They offer an extensive professional and peer network that startups can the COVID-19 pandemic. M&A activity totaled 170 deals in the and M&A advisory firm MarshBerry Capital Inc. in Woodmere, tap for advice, guidance and insight, Wesley and D’Amato said. third quarter alone, virtually equal to the 171 mergers in the same Ohio, served as financial adviser to Lighthouse Group in the Those peer networks can also lead to a key introduction to a potential period a year earlier, according to Optis Partners. transaction. client or vendor, expertise needed to develop their product or service or on After the 25 percent decline in the second quarter, the firm Alera Group CEO Alan Levitz called Lighthouse Group “an financial and business planning, or to secure additional capital in the future. expects deal flow in 2021 “should continue unabated due to the exciting addition” to the firm. “It’s a big part of what our value proposition is as an organization beyond increasing supply of capital chasing a still very large inventory “There is a very natural cultural fit between our two col- the check,” D’Amato said. “We’re in it to help at any level and wherever we can. We’re trying to add more than just a check.” of sellers.” laborative organizations and an opportunity for Lighthouse Lighthouse Group in recent years has grown by high single to leverage Alera’s national platform for the benefit of their or double digits, Helmstetter said. The firm today employs 175 clients,” Levitz said.

Visit www.mibiz.com MiBiz / DECEMBER 7, 2020 7 SMALL BIZ

and professional design ser- “This is the time MEDC PROGRAM vices during the pandemic. Continued from page 1 She lost her job as the man- when we as a ager of a retail store because community have buyers can use when seeking suppliers for typical holiday gifts she is high-risk for contract- like food baskets, flowers and various crafts. Corporate entities ing the virus. to be trying any also can customize their search for minority-, women- or veteran- “I wallowed for a couple and all things we owned companies. of months trying to figure For one, the initiative builds off a similar program the MEDC out what I wanted to do and can to support launched earlier this year for a Personal Protective Equipment looked for a virtual job but these local (PPE) procurement platform. Also, during the pandemic, the wasn’t having a lot of luck,” businesses. It’s MEDC has had to pivot from in-person, business-to-business she said. matchmaking to virtual events. Malkin heard about the no secret, this is a “We’re hoping to do this platform to give a little easier access Pure Michigan Business very challenging point for not only corporations but small businesses in the area Connect program in to see what else is in the community to support purchases from early December in the time.” a local standpoint,” said Bobby Chasnis, director of the MEDC’s #GRbossbabes Facebook Pure Michigan Business Connect program. Jessica Malkin, owner of Grand Rapids-based The Market group. She signed up to sell — JOE AGOSTINELLI Made. COURTESY PHOTO customized home decor Executive Director of Grand boxes, interior design services Regional pilot Rapids Area Revitalization “Having that success and seeing a lot of individuals accessing and various home goods. Task Force The result is a regional, rather than statewide, pilot program for this, we wanted to pivot off of that and see if it could translate into Other entrepreneurs also businesses in Kent, Ottawa, Ionia and Montcalm counties. this holiday corporate gift-giving,” Chasnis said. heard about the program “We’re looking to get some feed- through Facebook. back from the Grand Rapids team Tracey Gerdeman, co-owner of the Southside Flower Market Getting noticed SMALL BIZ before opening it to the entire state,” in Grand Rapids, found out about the program through the same NEWS Chasnis said. Pandemic aside, small businesses face daunting challenges when social networking group. The woman-owned flower shop is Sponsored by: Pure Michigan Business Connect is competing for online space against retail giants. approaching its one-year anniversary at its brick-and-mortar store. SMALL BUSINESS coordinating the program that, as of “It would be great to see some of the bigger corporations from the “Obviously, we’re not growing as fast as we’d like to” because ASSOCIATION Dec. 3, had 18 local suppliers signed west side or even smaller businesses just find different businesses of the pandemic, which shuttered floral businesses this spring, OF MICHIGAN up from Grand Rapids, Wyoming, they might not be aware of,” Chasnis said, noting what at times can Gerdeman said. Kentwood, Middleville, Jenison, Lowell be costly marketing for small businesses. “We’re hoping some of the However, during the earlier months of the pandemic, the shop and Grand Haven. They include upcycled textile manufactures, smaller businesses that might not have that footprint will get noticed.” specializing in custom flower orders was able to deliver flowers that CBD producers, skincare producers, floral shops, cleaning ser- That’s the hope of Jessica Malkin, owner of The Market Made were assembled at the home of one of the owners. vices, food retailers, candlemakers and jewelers. Most have gift in Grand Rapids, who’s among the 18 supplier companies that “You learn to pivot, and we pivoted every week,” Gerdeman said. certificates available. Within the first week of the program, officials have signed up. The company is marketing itself in the Pure Michigan Business hadn’t yet formally sought corporate purchasers. “The bigger companies and corporations just dominate the Connect program as a “European style flower market” that spe- The virtual business-to-business initiative is modeled off an Google search page so much, it’s so hard to find local businesses cializes in custom orders. MEDC program in March that connected companies with PPE with how their algorithms are and how they monopolize the inter- “The opportunity to get your name out there and let peo- supplies. Chasnis said more than 3,000 submissions from com- net space,” Malkin said. ple know you’re not just the normal florist is always awesome,” panies in need of PPE have come in so far. Malkin started her company selling various home decor goods Gerdeman said.

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WHITECAPS PURSUE PUBLIC, PRIVATE SUPPORT TO MAKE UP FOR LOST SEASON

By JAYSON BUSSA | MiBiz [email protected]

COMSTOCK PARK — While cautiously opti- mistic about the 2021 season, West Michigan Whitecaps CEO Joe Chamberlin and his front office must still contend with the giant deficit left when Minor League Baseball shut down the entire 2020 season because of COVID-19. From alternative programming at Fifth Third Ballpark, which the organization privately owns, to an infusion of cash from partners and original investors in the team, the organization is look- ing to find solid financial ground to get to 2021. “In this year, our revenue will have declined by about 90 percent,” Chamberlin told MiBiz. “We’re a small business, we’re a seasonal business, and we’re a severely impacted business. So, since this The Kalamazoo Wings are among West Michigan minor league hockey teams facing an uncertain 2020-2021 season because of the pandemic. pandemic started impacting our operation, we’ve COURTESY PHOTO been chasing every option available to us.” While programming at the ballpark has gen- erated some revenue, it’s not nearly enough to address the shortfall. Like most small businesses, Minor league hockey teams sidelined, Chamberlin said the Whitecaps have received or continue to pursue government funding. Whitecaps Professional Baseball Corp. grapple with uncertain 2020-21 season received an $834,600 Paycheck Protection Program loan on April 28, according to the U.S. Small Business Administration. Chamberlain also By JAYSON BUSSA | MiBiz maintaining access to players. The Griffins are Rapids Drive basketball team. “They get their mentioned the federal RESTART Act for small busi- [email protected] independently owned. revenue from ticket sales and when there are nesses and the Save Our Stages Act for entertain- “I think the league is sensitive to all of the no games there is no ticket sales. Even if there ment venues as two pieces of legislation that, if n a typical year, the Grand Rapids Griffins independent teams,” Gortsema said. “At the end is 25 percent occupancy, or whatever it ends passed, the organization could leverage. Whitecaps would be more than a month into its sea- of the day, it has to work for both sides. ...We’re up being, that is very difficult for minor league officials have also pushed for state legislation that son on the ice. just trying to figure out if we can find a happy local teams.” would defer property tax payments for businesses This year, though, the American Hockey medium here that works.” Social media is one avenue to generate vis- that have been shut down during the pandemic. I League organization has found itself sitting, ibility for sponsors. Meanwhile, the Whitecaps have leveraged waiting and bracing for what promises to be a The Griffins’ Gortsema praised the organi- the partners and investors that helped bring the Kalamazoo, Muskegon teams rough season on the balance sheet — that is, if zation’s robust social media following, which is team to Grand Rapids 27 years ago and construct forge ahead the team laces up the skates at all. among the top in the AHL. When the pandemic the stadium without tax dollars. The team cre- A broad surge in COVID-19 cases has not The Kalamazoo Wings, which compete in the started to interfere with operations, he said the ated Whitecaps Bridge Fund LLC to help sustain only delayed this year’s AHL season by sev- East Coast Hockey League, get a small jumpstart organization leaned on social media to provide the organization into the next year. eral months, but if a season ever does get roll- on the Griffins while the Muskegon Lumberjacks exposure for sponsors. RDV Sports Inc., originally established by ing, Griffins management doesn’t know what to — a tier 1 junior hockey team of the United States The Griffins also have a radio broadcasting Richard DeVos to purchase the NBA’s Orlando expect from one of its primary revenue sources: Hockey League — has already kicked off its sea- deal and stream games on AHLTV, just as all Magic, contributed between $100,001 and $250,000 Fans in the stands. son, although recent statewide health restric- other teams in the league do. in September for an interest in the bridge fund. The “It’s not going to be a good financial year even tions have delayed their home opener at Mercy “These are all small potatoes relative to the transaction was detailed in recent financial disclo- if we come back under limited fans,” said Griffins Health Arena. bigger dynamic of being able to have fans in sures filed by Secretary of Education Betsy DeVos President Tim Gortsema. “Whether that’s 25 per- The K-Wings are slated to start their season the stands and everything that goes with that,” to the U.S. Office of Government Ethics. cent or whatever — it’s still going to be not a good on Jan. 15. Gortsema said. “But at least it’s an opportunity “We’ve had an incredible group of stakehold- financial year at all for the team. However, we have Barring any major changes in regulations, to generate some revenue.” ers and investors who brought the team here and always been committed to being a good league K-Wings Business Operations Director Toni Will The K-Wings will also be unveiling a league- bought the stadium back in 1994 and they’ve partner to the AHL as a whole and try to be a good is tentatively planning to welcome roughly 500 wide streaming platform through FloSports.tv been a part of our ability to withstand 2020 and partner to our affiliate,” the Detroit Red Wings. fans into the Wings Event Center for the early to increase visibility for the team and spon- build a bridge into 2021,” Chamberlain said. The AHL normally begins its season in season. That’s 10 percent capacity for an arena sors. Will said the team is using every available “Just like any business, when you’re going October. On the heels of a premature ending to that seats 5,100, and the scant crowds won’t do resource, which includes its digital marquee through a year like 2020, you sometimes look to last season, Gortsema said it became apparent the K-Wings any favors. that faces I-94 and receives 33,000 impressions ownership and have to ask for some help, and we over the summer that the October start date was “Does that cover our costs? No, not even per side each day. were no different.” not realistic. close,” Will said of the 10 percent capacity sce- The National Hockey League plans to kick nario. “But, we are privately owned and we off its new season at the beginning of January are fortunate in our ownership of (Greenleaf while the board of governors for the AHL settled Companies Chairman) Bill Johnston and (Stryker on a Feb. 5, 2021 start date, even with no signs of Corp. Director) Ronda Stryker — they are very *?+?,?9.. 2/?"$ COVID subsiding. community focused and are very passionate Warehouse | Office | Manufacturing Gortsema said AHL team leaders will recon- about the Kalamazoo Wings.” vene this month for discussions. Individual Will added that the organization has around teams will decide whether to play the season. 500 season ticket holders, which would give those For the Griffins, it’s too early to tell. fans exclusivity to watch the team play and, if reg- “Every American Hockey League team, I think ulations ease up during the course of the season, first and foremost, they want to be a good partner the organization could sell additional tickets. to their NHL team,” Gortsema said. “So, in our case, be a good partner to the Detroit Red Wings. Saving revenues ,QHHGVSDFH If the NHL comes back in January or February, they’re going to need access to a player supply With limited fans, both the K-Wings and Griffins base in terms of supplementing their rosters due are forced to think outside the box on how to to injuries and call-ups and things of that nature. recuperate revenue lost to both ticket sales and … But it’s to be determined how the next number traditional sponsorships that rely on signage and of weeks or months will play out with the virus.” in-game announcements at the arena. Roughly two-thirds of the AHL teams are “The inability to have games is devastat- 269.345.4546 directly owned by their NHL affiliate. These ing,” said Tom Sullivan, president and co-owner teams might find it in their best interest to sub- of LEAD Marketing Agency in Grand Rapids, trinitywarehousing.com sidize a financially hobbled AHL team if it means which works with both the Griffins and Grand

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10 DECEMBER 7, 2020 / MiBiz Visit www.mibiz.com FOCUS: CONSTRUCTION WRAP-UP

COMMERCIAL CONSTRUCTION ROUNDTABLE CONSTRUCTION LEADERS REFLECT ON 2020, EXPECT MORE STABILITY IN NEW YEAR

By KATE CARLSON | MiBiz [email protected]

est Michigan construction firms saw projects in the hospitality and office industries slow down this year because of COVID-19 restrictions, leaving many to get creative and pivot to industrial and residential markets. W Gov. Gretchen Whitmer’s initial stay-home order to slow the spread of COVID-19 halted construction projects that were not deemed essential from March 23-May 7, launching the initial strain on the industry. Despite several obstacles this year that exacerbated construction’s ongoing talent shortage, including workers sidelined by the pandemic, industry leaders in West Michigan told MiBiz during a recent roundtable that they were aided by a healthy backlog of projects going into the year. Many are hopeful for projects in the hospitality sector to resume in 2021 with promising news about COVID- 19 vaccine studies, while some also noted the uncertainty of a close presidential election now in the rearview mirror. Chris Beckering Mike Bishop Megan Feenstra Wall Participants in the roundtable were: Pioneer Construction Inc. TCF Bank Mathison | Mathison Architects ■ Chris Beckering, executive vice president of Pioneer Construction Inc. ■ Mike Bishop, head of TCF Bank’s West Michigan construction and real estate group ■ Megan Feenstra Wall, architect at Mathison | Mathison Architects and incoming president of the American Institute of Architects’ (AIA) Grand Rapids chapter ■ Brad Laackman, president and CEO of Honor Construction Inc. ■ Ted Lott, principal at Lott3Metz Architecture ■ Bob Pomeroy, architectural division principal at Fishbeck Here are some highlights from the discussion, which was conducted virtually via Zoom:

What have been key takeaways That became our new thing. We’re during the pandemic for your starting to find work in areas where company or the industry? we never were before and I think that FEENSTRA WALL: Flexibility is the key helps us be stronger. for this year. With the AIA we had to Brad Laackman Ted Lott Bob Pomeroy pivot and cancel some events we were What new markets and projects Honor Construction Lott3Metz Architecture Fishbeck pretty excited about. Some things we have you been pursuing? could pivot to doing virtual and in POMEROY: We do a fair amount of that way we’ve increased some of our higher education work and that really engagement across the state. We’re took a huge hit. It was really reach- there and we could help out in our I think it should be somewhat stabi- the construction technologies that seeing more involvement from firms ing out into biotech areas and push- mid-market type of way which was lizing. From just an overall market come out of this. along the lakeshore than we were ing into that, which we’d never done very helpful. standpoint, I think that it’s yet to be BISHOP: We have had several residen- before. As a firm and an organization before. We have (light industrial) cli- FEENSTRA WALL: We had a huge back- seen what Biden’s infrastructure plan tial builder clients that have told us it’s just about being ready for what’s ents in a different division but we had log when we first started, and we were entails, how that will be funded and coming next and being flexible. that throughout all of this, 2020 will be never really explored that, so we’re incredibly busy in those early days of what impact that will have on our their best year ever. Throughout this LAACKMAN: We were also fortunate pushing that as well. the stay-at-home order, so it was kind industry. people are still buying houses. to work through the pandemic with BECKERING: When we had projects put of overwhelming, but then we saw LOTT: It’s going to be much more about some critical projects throughout FEENSTRA WALL: From an AIA stand- on hold, we had guys who wanted to the same thing — some of our non- the next phase of the pandemic and (Grand Rapids), but it was maybe half point I’m excited to continue the continue working and see what they profit, higher education and office the federal response to it. We have a of what we were planning. We have conversation of diversity and climate could do, so we pivoted to the health work started to taper off. But in the huge logistical problem that we’re been making it through and making action. My experience with AIA is that care industry and helped some of the meantime we also do residential and coming into with the vaccine distri- good progress on some things, but hit- it just moves so slowly as an organi- major health care (companies) in the that has just been nonstop. So we were bution. This is what the federal gov- ting the pause button on others. zation, and I’ve witnessed this pivot. area mobilizing vaccination and test- able to take some of those markets ernment should be able to do well. I’ve never seen them move so quickly LOTT: We’ve been fortunate in the ing sites. We’ve been able to keep our that were slowing and replace them I’m very hopeful we’ll be able to have a as they have in the last few months. fact that we’ve been working straight guys busy with meaningful work while with that residential work. All of our coherent federal response to this next I’m excited about that and I feel like through this. For us it’s been an addressing the needs of the pandemic. work has started to pick up again but phase of the pandemic. Hospitality is there might be some change com- acknowledgment of people we have You’ve got to be creative and do things residential is not slowing down. This nonexistent right now — the quicker ing. We have a backlog (at Mathison | working for us and folks we are work- that you haven’t done before. last quarter is busier even than the first we get past the pandemic, the quicker Mathison) that could probably take us ing for. We’ve learned that we can han- LAACKMAN: but there was certainly a lull over the those markets are going to come On a smaller scale we had through the first quarter. Some of our dle it, that is one of the biggest things. done an enormous amount of hospi- summer. online. To me, that’s my biggest hope nonprofit work is loosening up so I’m We’re always challenging ourselves tality and restaurant work, which of of a new administration. hopeful we can expand that. one way or another. It’s just height- course took the biggest hit. Everything How do you think the con- ened our confidence in ourselves. stopped — that was one of our spe- BECKERING: It’s all about that base, struction industry will be What are you looking forward to POMEROY: For us we were able to make cialties and so was office work, which that manufacturing base in West the pivot to working remotely pretty has changed. A lot of (office projects) affected by the incoming Biden in 2021? Michigan. If we get that engine rev- easily, but we had lost a considerable have turned into housing, and hospi- administration? LAACKMAN: I’m really looking for- ving everything else will follow. That amount of work so it was just a huge tality turned into health care for us. BECKERING: The markets are indicat- ward to the return of the hospitality engine seems to be revving so we’re drop-off for us through most all of the We switched those two areas out for ing that they like the idea of a split- industry. Out of catastrophe there is excited about opportunities to help markets we were in. We had an inter- the other two, called upon our old party president and Senate control, innovation and I’m really excited to local manufacturers, distributors and esting conversation with a client, and resumes and our staff’s experience and it looks like that’s the direction see what happens in that market and logistics companies expand and build they basically said, ‘Innovate or die.’ to find a new way. The need was out we’re heading. From that direction, also in the construction market, and new in our home town.

Visit www.mibiz.com MiBiz / DECEMBER 7, 2020 11 FOCUS: CONSTRUCTION WRAP-UP

By KATE CARLSON | MiBiz [email protected] PROJECTS he COVID-19 pandemic has brought ups and downs for West Michigan’s construction industry — activity and competition has increased in areas like school bond projects, while the hospitality and office sectors saw T major slowdowns. TO WATCH IN Across the region, though, several major developments remain on the horizon. They range from marquee developments that have been in works for years to some that were unveiled during — and are being guided by market forces resulting from — the public health crisis. 9 WEST MICHIGAN Here’s a look at major projects planned across West Michigan:

MUSKEGON APARTMENT TOWER

■ Construction Manager: Ferguson Development LLC THE MILL AT VICKSBURG TOWERS ON RIVER and Brianna Scott ■ Architect: Integrated Architecture LLC ■ Construction manager: Midwest Construction Group Inc. ■ Architect: Hopkins Burns Design Studio PLLC ■ Cost: $10 million ■ Architect: Integrated Architecture LLC, Holland ■ Construction manager: Frederick Construction Inc. ■ Completion: 2021-2022 Engineering ■ Cost: $80 million ■ Cost: $20 million ■ Completion: 2025 A 10-story market rate residential development is planned ■ Completion: 2022 for a former bank building at downtown property owned A former Southwest Michigan industrial site in Vicksburg by the city of Muskegon. Upwards of $10 million will be A five-story, mixed-use building with luxury condomini- is undergoing a massive $80 million redevelopment. The invested in the redevelopment at the corner of First Street ums is planned for 159 South River Ave. in Holland. Four project was the second in the state to receive transforma- and Clay Avenue. medical suites will take up the second floor of the building, tional brownfield incentives to turn the historic Lee Paper Plans include 50-60 apartment units in the first phase, which will have parking on site for patients and tenants. Mill into what will include an 84-room hotel, brewery, dis- which is expected to be completed in 2021. An additional The project is also expected to include retail space on the tillery, beer garden and restaurant. 12-16 units are planned for phase two, which is expected main floor of the facility. The goal is to create a regional destination focused on to be finished in 2022. Condo units will range from 1,000 to 2,500 square feet beer, events and live music, said Jackie Koney, director of “This serves one of our biggest economic development and will include one- to three-bedroom units at market operations for Paper City Development LLC. initiatives, which is increasing residential development rates. The facility will include a fitness center and a com- The project was initially planned to open in phases in downtown,” said Jake Eckholm, Muskegon’s economic munity terrace bordered by a green roof system. starting in 2022, but developers are now holding off until development director. “It’s a very unique project, it’s luxury living in down- all aspects of the development are completed for an antic- Eckholm also noted the project’s African American- town Holland, which I think is a very attractive area,” ipated 2025 grand opening, Koney said. Construction owned construction team led by Michigan State said Mike Corby, executive vice president at Integrated started in June 2019, of which portions were delayed by University Trustees Joel Ferguson and Brianna Scott. Architecture LLC. “There aren’t many walkable down- the pandemic this summer. “It’s a large-scale development, so it’s great we can towns that compare to Holland in the state of Michigan. Paper City Development was founded by Vicksburg bring some diversity to the project,” Eckholm said. It’s a nice example of a mixed-use project with condomini- native Chris Moore, who now lives in Seattle where he Ferguson Development LLC spent nearly $300,000 ums, retail and medical.” opened Old Stove Brewery five years ago and also owns investigating the site to determine if it could retain the The building’s modern design includes nine individual software firm Concord Technologies. Moore will open a existing frame of the structure, Eckholm said. The devel- but connected towers, which will allow for scenic views second location of Old Stove Brewery, as well as a brewery opers learned they could keep the steel frame, which will and natural light in all of the units, Corby said. museum, as part of the development. result in some efficiency on the project, he said. The existing building on the site is expected to be “We want it to be a brewery destination,” Koney said. The original intent was to use the first floor as com- demolished in the next several weeks, and site work is Despite some delays this year, construction is pro- mercial space, which changed when the pandemic hit, could begin in mid to late December. Construction is gressing. Six buildings that were not historic were Eckholm said. Instead, “robust tenant amenities” are expected to be completed sometime in 2022. removed from the property, exterior masonry has planned for the first floor, which include a large packaging “We’re looking forward to bringing some stylish been completed, and work is now starting on interior room, meeting spaces, a game room, and leasable offices to architecture into town. We see that there’s a need for renovations. accommodate people working from home, Eckholm said. high-end residential property in downtown Holland,” “Between removing the exterior buildings and clean- “With the advent of COVID-19 wreaking havoc on the said project developer Dennis Jacobs. “The develop- ing up the brick, it looks stunning,” Koney said. “Instead commercial real estate market, it is harder for those ven- ment that’s been done by GDK and others to extend of white and gray paint, you’re seeing new paint and steel. tures to get funded,” Eckholm said. “If the market recov- Eighth Street and at the Civic Center creates a need for It’s to the point where people can’t see what it looked like ers in the future, we can still convert some of that space this project.” before.” for commercial use.”

12 DECEMBER 7, 2020 / MiBiz Visit www.mibiz.com HARRISON PARK APARTMENTS HARRISON PARK DWELLING PLACE | GRAND RAPIDS, MI 2020 ABC EXCELLENCE IN CONSTRUCTION AWARD

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Visit www.mibiz.com MiBiz / DECEMBER 7, 2020 13 FOCUS: CONSTRUCTION WRAP-UP

MCCAMLY PLAZA HOTEL ■ Construction manager: TBD ■ Architect: TBD ■ Cost: $15 million to $20 million ■ Completion: 2022

The McCamly Plaza Hotel is getting a face- lift and rebranding after being closed since KALAMAZOO CREAMERY PERRIGO HEADQUARTERS November 2019. After ■ Architect: Byce & Associates Inc. ■ Construction manager: Rockford Construction Co. acquiring the prop- ■ Construction manager: Hollander Development Corp. ■ Architect: TBD erty from its previous ■ Cost: $14.7 million ■ Cost: $44.8 million owner on Nov. 3, Battle ■ Completion: January 2021 ■ Completion: TBD Creek Unlimited is planning a complete renovation of the 15-story, 239-room The former site of Klover Gold Creamery is transforming into Perrigo Co. plc is relocating its North American corporate hotel in downtown Battle Creek, located at 50 Capital Ave. a mixed-use development in Kalamazoo’s Edison neighbor- headquarters to downtown Grand Rapids as part of the SW. hood. The three-story building will have 48 residential units, Michigan State University Grand Rapids Innovation Park The economic development organization has retained including 38 dedicated to tenants who make 30 percent or under development at 430 Monroe Ave. NW. Suburban Inns to assist with rebranding and renova- below Kalamazoo County’s area median income. The company plans to invest nearly $44.8 million tions, and plans to reopen the hotel in 2022. The project The facility will include a YWCA daycare with a nat- in what will be a 63,550-square-foot facility, which is is expected to help attract international business travel to ural outdoor play area, a co-working space, Hollander expected to create 170 new jobs on Medical Mile. The the area. The hotel includes event space for conferences Development Corp. offices, retail space, outdoor patios, a company received a $2 million grant from the Michigan and conventions and is connected to Kellogg Arena. rooftop terrace, exercise room and group gathering room. Strategic Fund for the project on Oct. 27. Battle Creek Unlimited President and CEO Joe Sobieralski The project is planned to be LEED Platinum-certified with “It’s about as significant as it gets in my business,” The said he is “confident this property can be transformed into a solar panels on the roof. Right Place Inc. CEO Birgit Klohs previously told MiBiz of showpiece that’s a regional draw for Battle Creek.” Construction is wrapping up on the $14.7 million proj- landing a downtown headquarters. “It is an unbelievable The project is still in the planning and design phase, ect, and the apartments should be completed by the end success. Having a global company downtown is huge. It with construction expected to begin in the spring of 2021, of January 2021, said Michael Flynn, vice president of Byce can’t be overestimated how important it is.” Sobieralski said. & Associates Inc. The new office will primarily house corporate and “I’m extremely excited about this project. It’s a pivotal “This was really a group effort with the neighborhood functional leadership as well as some administrative piece in the revitalization of downtown, even though it’s association to come up with an organic design for the roles. The facility will include an adaptable, collaborative a little bit outside our wheelhouse, but that makes it an community,” Flynn said. workspace. even more exciting project.”

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14 DECEMBER 7, 2020 / MiBiz Visit www.mibiz.com Helping you prepare for what’s next.

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HAYMARKET PLAZA ■ Construction manager: Treystar Inc. ■ Architect: TowerPinkster, Kingscott Associates Inc. ■ Completion: June 2021

The public alley between four downtown Kalamazoo buildings — 229-251 E. Michigan Ave. and the recently completed $100 million Catalyst building at 180 E. Water St. — is being redeveloped into a shared community space called Haymarket Plaza. The project will feature a snowmelt system, lighting, outdoor furniture, an open area for enter- tainment and food trucks, as well as a three-dimensional art display that will project local art from the community. LAKESHORE CONVENTION PEERLESS FLATS Project funding managed by the Monroe-Brown Foundation came from a variety of sources, including the CENTER ■ Construction manager: River Caddis Development city of Kalamazoo, the Michigan Economic Development LLC and AVB Inc. Corp., and a Patronicity crowdfunding campaign that ■ Construction manager: Clark Construction Co. Inc. ■ Architect: Progressive AE Inc. raised nearly $54,000. Millions of dollars were invested ■ ■ Architect: Progressive AE Inc. Cost: TBD to install the snowmelt system, and the art display will ■ Cost: $19.5 million ■ Completion: Summer 2022 cost about $220,000, said Fritz Brown, a partner at Treystar. ■ Completion: 2021 “There is nothing like it anywhere in any city our size,” A 133-unit condominium and apartment project will soon Brown said. “This 3-D projection mapping is really cool After a temporary delay this spring because of the pan- become downtown Grand Haven’s largest residential devel- and brings a big city feel to it, and is a huge picture that demic, construction is wrapping up on the Lakeshore opment. The project, at 125 Elliot Ave., is on the former Stanco Convention Center in downtown Muskegon, which will property, a 4.66-acre site near Grand Haven’s waterfront. will be projected on the side of the Haymarket building.” serve as a conference and event venue set to be completed The project developer is Kevin McGraw, president of Projectors for the development will arrive later this early next year. East Lansing-based River Caddis Development LLC, and month, but will not be used until June 2021 when the out- The new 45,000-square-foot venue at 470 W. Western construction is planned in a single phase. door furniture is also installed, Brown said. Ave. is attached to the Delta Hotels by Marriott Muskegon The project includes 124 market-rate apartments rang- Project developers originally planned to open the plaza as well as Mercy Health Arena. ing in size from efficiency to two-bedroom units. Nine this month, but the COVID-19 pandemic has slowed the The new convention center is designed to accommo- condominium units are also planned along Second Street. project’s urgency. date groups of up to 1,000 people in its 20,000 square feet The Grand Haven City Council reportedly gave unanimous “We’re excited about it and can’t wait to show every- of meeting space. support for the project last month. body,” Brown said.

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16 DECEMBER 7, 2020 / MiBiz Visit www.mibiz.com Skills Gap? What Skills Gap?

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passed this year, which is a typical pace for the construction firm, said Chief Strategy Officer Josh School bond projects provide reliable work for fi rms during pandemic Szymanski. K-12 construction makes up about 70 percent of the firm’s projects. By KATE CARLSON | MiBiz “This has really been a strong market to keep to a vote because of the pandemic. The five that “Things we’re noticing is when the absentee [email protected] us stable while other markets come back,” said stayed on the ballot each passed. voter legislation (Proposal 3) passed in 2018, we Matt Slagle, a principal and director of K-12 edu- “The ones that delayed were primarily at were curious about how that would affect school -12 school bond projects have emerged cation at TowerPinkster. the governor’s request. They didn’t have all of bonds and thought it might hurt them. But if any- as an increasingly reliable source of About a dozen school bond proposals passed the absentee voting process figured out,” Slagle thing, it helped them — passage rates have been quite high,” Szymanski said. work for West Michigan construction in 2020 in West Michigan, totaling nearly $650 mil- said. “The school bonds that stayed on the ballot Historically, more absentee votes tended to and architecture firms, even though lion. The bidding process has gotten more compet- primarily were no tax increase that needed to be work against school bond proposals passing, but some districts opted to delay putting itive as some architecture firms that lacked a his- passed before the millage fell off.” K tory with school projects pivot to the K-12 sector. School districts that rescheduled were on that hasn’t been the case so far, Szymanski said. projects to a vote this year because of the pandemic. The share of the K-12 market in TowerPinkster’s the Nov. 3 ballot or will be determined during The pandemic likely led to fewer bond propos- Most construction firms were able to lean on workload has increased from roughly 40 percent last the May 2021 election, Slagle said. The firm is als making the ballot this year, but passage rates a healthy backlog of projects throughout the pan- year to about 60 percent, Slagle said. When many involved with nine bond projects totaling $308 have “all been really steady,” he said. demic, but it was still a year of uncertainty as health care and higher education projects were put million that are expected to be on May ballots. “The priority level has dropped, and rightfully hospitality, higher education and office projects on hold this year, the firm focused more on K-12. so, and there are a few less bonds out there and were largely delayed or put on hold indefinitely. TowerPinkster planned to be the architect a few less people looking at them than normal,” However, the longevity of multi-year school Stability in uncertainty for 10 school bond projects slated for the May 5, Szymanski said. “Nevertheless, the K-12 work still bond projects has provided firms some stabili- 2020 election ballot in West Michigan. Of those, Grand Rapids-based Owen-Ames-Kimball Co. provides us a lot of stability.” zation this year. five districts delayed putting their bond project is working on seven school bond projects that This has also led to increased competition as more firms shift focus to the K-12 market. “When there is an RFP out for a project, there is at least twice the competition as before and you see people from out of state trying to get in on a school project,” Slagle said. “It’s really ben- eficial we’ve had this expertise for years and have been able to lean on it at this time.”

TO US, IT’S BIGGER COVID’s effect on projects A key aspect to pursuing a school bond project is holding stakeholder engagement forums for the community, said Jeff Hoag, K-12 practice THAN A BUILDING leader at Holland-based GMB Architecture + Engineering. “Once the pandemic hit, the ability to con- nect with people and to gather and get peo- At Triangle, construction is more than our job. It’s a personal promise ple together to help educate them on what the needs are and why a project to build spaces that cultivate growth, new beginnings, and redefine the is important, that got really challenging,” Hoag said. limits of what’s possible. GMB, along with other construction firms in the region, created physical materials to send home with students, and made a transi- tion to holding virtual stake- holder forums. Slagle “What we’ve found is that the process in some ways allowed people to feel more comfortable attending those meetings,” Hoag said. “A lot of the material is being recorded, so they can go back and watch it. In some cases we’ve seen greater participa- tion than in the traditional forums.” Szymanski Several West Michigan architecture firms involved in K-12 construction have noted increased participation in virtual community forums. TowerPinkster, for example, saw triple its nor- mal forum participation the first time it held a community forum over Zoom. Some logistics of school bond projects are also changing because of the pandemic. The focus for school developments has long been on student safety, but this year included a renewed focus on increasing air quality and upgrading HVAC systems to help with room ventilation. “What I’ve seen is people really starting to embrace the idea of health, safety and security all rolled into one,” Hoag said. School leaders are also interested in creating more large, open spaces rather than enclosed areas, said Steven Hoekzema, another director of K-12 education at TowerPinkster. “Some of our clients are concerned about healthy environments more now so we’ve increased ventilation, and they’re interested in operable win- dows, and are holding breaktimes outdoors on patios rather than inside,” Hoekzema said. Szymanski agreed that, while always a prior- ity, air quality has moved to the top of the list. “It’s an obvious way to address the situation,” Szymanski said. “We can’t make every classroom bigger, but if we can improve the air quality, how www.triangle-inc.com students flow in and out of classrooms, then 616.453.3950 those are things we can change.”

18 DECEMBER 7, 2020 / MiBiz Visit www.mibiz.com Higher ed capital outlay projects screech to a halt

By KATE CARLSON | MiBiz universities, including two in 2019 and another [email protected] five in late March 2020 as the pandemic took hold in Michigan. tate funding uncertainty during the Each year universities are required to submit pandemic has been a key factor in a five-year capital outlay project inventory of all the lack of large construction proj- campus facilities, which includes priority proj- ects this year at community colleges ects in which schools plan to seek state autho- S and universities. rization to start the design process. This year, Construction firms that rely on higher edu- the State Budget Office issued a letter saying it cation projects, including those in the state’s would not accept or score proposals for priority capital outlay list, have had to look elsewhere projects, taking away the first step for new capi- for work during 2020. The list includes potential tal outlay projects to get off the ground. projects at universities and community colleges The change in the process this year will likely that qualify for a portion of state funding. defer applications until next year, according to “Pretty much everything” has been put on state officials. Some schools could decide to hold at public universities this year aside from fund projects on their own, which has occured some smaller projects, said Eduardo Blanc, when projects were turned down in the past. senior vice president at TMP Architecture Inc. “Any time there is a downturn in projects and director of the firm’s Kalamazoo office. and they get put on the shelf, it takes a few years “We do K-12 and college work, that’s our for them to come back,” said Mitch Watt, senior bread and butter,” Blanc said. “Only the projects vice president and principal at Walker-based already in the process of being built continued Triangle Associates Inc. to happen.” Because the capital outlay system is on hold, Under the capital outlay process, public uni- most of TowerPinkster’s higher education con- versities can apply for state funding for up to 75 struction projects are waiting for a state review percent of construction projects if it does not to move forward, said TowerPinkster Marketing exceed $30 million. State universities and com- Manager Chloe Beighley-Ludeke. munity colleges — especially larger universities “Private institutions were able to continue. with bigger budgets — also use their own fund- A lot of those projects are funded by donors and ing for projects, which likely was on the decline alumni, so that is money that had already been this year with the uncertainty of the pandemic secured. But the majority of our public projects and decreased enrollment numbers. were put on hold,” Beighley-Ludeke said. “We Capital outlay funding must be approved were able to do some smaller engineering proj- by state officials. Gov. Gretchen Whitmer has ects, but big flagship projects were not able to vetoed several capital outlay projects at public take place.”

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“We have been doing what we can virtually,” Project delays, Zoom meetings, worksite safety: said Mitch Watt, senior vice president and prin- cipal at Triangle Associates Inc. “We tried to go back to the office but had some people get sick. We’ve been Zooming and doing conference Construction lessons learned from COVID-19 calls.” Once employees returned to work after the shutdown, lumber was more expensive and By KATE CARLSON | MiBiz were also put on hold or suspended indefinitely its finger on the pulse of material availability, harder to source, and the whole process was [email protected] during the pandemic. Construction and archi- Beckering said. more time consuming with social distancing tectural firms had to adapt to a changing mar- “One of the biggest challenges was trying to measures in place, said Jackie Koney, chief oper- he construction industry was one of ket and new restrictions to stay viable, industry figure out what needed to be done, how to com- ating officer for Paper City Development LLC, many that was forced to switch up its representatives told MiBiz. ply with ever-changing executive orders, and try- which is managing the $80 million The Mill rede- workflow and get creative this year Gov. Gretchen Whitmer’s first stay-home ing to figure out what the best route would be velopment in Vicksburg south of Kalamazoo. with the drastic changes, uncertain- order that took effect March 24 stopped non- with conflicting information about the virus,” The virus spread also exacerbated the indus- T ties, restrictions and additional safety essential construction for nearly two months. Beckering said. “We had to plan the best way to try’s talent shortage, especially when employees protocols that were put in place amid the COVID- Remobilizing after the construction shutdown work in this pandemic in real time.” contracted COVID-19 or were exposed to the 19 pandemic. proved difficult because everything was out of The virus and subsequent restrictions and virus and had to quarantine. West Michigan firms found ways to innovate sequence, said Chris Beckering, executive vice safety protocols caused firms to adjust to some “We only had one roofer on the site that con- and were helped by going into 2020 with a healthy president of Pioneer Construction Inc. During employees working remotely, as well as reconfig- tracted COVID-19, but if anyone from a company backlog of projects, but many developments the shutdown, Pioneer was focused on keeping uring site layouts to comply with social distancing. that subcontracts for us got COVID, we would ask their whole team not to come on site for 14 days, which really slowed things down,” Koney said. However, safety screenings added to the pro- cess for worker safety are now an efficient part of the workday, Watt said. “It has taken a lot of work and making sure everyone is checked in on the job site and keep- ing masks on,” Watt said. “We’ve done daily screening and temperature taking at the begin- ning of each day. Back in May it took a long time to adjust, but now that we have the system in place, it’s running smoothly.” For some tasks, Pioneer has added physical barriers when possible when workers have to be closer than 6 feet apart, Beckering said. Watt “Gearing up is part of our regular routine, so adding a mask is one addi- tional step,” Beckering said. “In that sense, I think adoption was fairly simple compared to other industries.”

Going remote Working remotely was initially a hard transi- tion for some industry employees, especially at TowerPinkster, said Chloe Beighley-Ludeke, the firm’s marketing manager. “We are really culture focused at TowerPinkster, so it was hard for us to not be in the office together and have those in-person meetings, stopping by people’s desks and hav- ing those interactions throughout the day in our open-concept office,” Beighley-Ludeke said. Several firms in the region, including TowerPinkster, told MiBiz that being forced into the remote work flow will be beneficial long term. “We’ve found new ways to interact to get proj- ects done quickly, to meet with our clients effi- ciently over Zoom,” Beighley Ludeke said. “This is something we will continue with some of our clients in the future who are farther away.” Other firms also see benefits with the transi- tion to more virtual work. “You still miss the in-person activities, but sometimes it’s been even better than before just because people are so respectful of everyone’s time and everybody has more of an opportu- nity to contribute when you are meeting vir- tually,” said Eduardo Blanc, senior vice pres- ident at TMP Architecture Inc. “Every crisis you have to learn from and it was a good les- son learned, how to conduct the same type of process remotely.” There is a renewed emphasis on the impor- tance of communication among team members and clients to keep everyone on the same page, Beckering said. “That takes a lot of collaboration onsite and ATTORNEYSTTORNEYSY AT LAW offsite,” Beckering said. “We’ve fared well, largely as a trade, by transitioning to digital and remote platforms. Now we’re much more able to work remotely as much as necessary.”

20 DECEMBER 7, 2020 / MiBiz Visit www.mibiz.com ASAMASAM IS PROUD IS TO ANNOUNCE:PROUD TO ANNOUNCE

BUILDING A STRONGER FREDERIK MEIJER GARDENS WEST MICHIGAN & SCULPTURE PARK CONSTRUCTION INDUSTRY THURSDAY, SEPTEMBER 30, 2021 5:30PM – 9PM The American Subcontractors Association of Michigan (ASAM) is dedicated to providing WIVZMGIWERHFIRIǻXWXLEXLIPTXVEHIGSRXVEGXSVW Michigan Contractor of the Year (MCOY) was founded by ASAM on suppliers and service providers become a vision to positively impact the construction industry. The annual more successful. Through member meetings gala celebrates general contractors and construction managers and networking, ASAM provides educational with a track record of best practices, professionalism and opportunities, valuable information and Business collaboration within the trade-contracting community. Past MCOY Practice Interchange (BPI) sessions for trade winners and nominees have been intentional in their success— GSRXVEGXSVWXLVSYKLSYX2MGLMKER&WFIRIǻGMEVMIW raising the bar for our entire industry. Moreover, these companies of ASAM’s decade-long groundwork, our have embraced a team-centric approach, leading to a more- organization continues to advance the positive positive atmosphere, higher morale, increased productivity and working culture our chapter has created and is stronger working relationships. a key vehicle for elevating our trade-contractor standing within the environments we work and On behalf of the members of ASAM, we want to thank all of our past MCOY nominees: the communities we serve.

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Visit www.mibiz.com MiBiz / DECEMBER 7, 2020 21 HEALTH BIZ

Wishing you a joyous holiday season and a new year filled with gifts of peace, health and happiness! Michigan Chief Medical Executive Dr. Joneigh Khaldun discusses COVID-19 vaccine distribution Happy Holidays from our family to yours! during a Dec. 1 press conference. COURTESY PHOTO VACCINE DISTRIBUTION A recent poll of older adults by the University of Michigan “suggests an uphill climb lies ahead Continued from page 1 to reach that goal.” Just 58 percent of adults between 50 to 80 years old in the university’s “Once we get the vaccine shipments, we’re National Poll on Healthy Aging said they were ready to go,” Hahn said. somewhat or very likely to get vaccinated. As of Dec. 1, 48 hospitals and 12 local health Women and people of color in that age group departments across Michigan had ultra-cold freez- were less likely to get vaccinated, the survey found. ers with capabilities to receive the Pfizer vaccine, Metro Health “will do everything we can to Michigan Chief Medical Officer Dr. Joneigh Khaldun support getting the community vaccinated,” said during a recent press conference. More than Hahn said. “We’re going to implore people to do 100 hospitals and local health departments across it. This has been a historic challenge. Science has GGrand Rapids Office Kalamazoo Office the state have the ability to store and distribute a provided an answer, so we just need to make sure 616 776 0100 269 353 0311 vaccine Moderna Inc. developed, Khaldun said. that folks trust it and really take it to heart.” COMMERCIAL REAL ESTATE SERVICES, WORLDWIDE naiwwm.com After initial limited availability, vaccines The pharmaceutical companies have devel- become more widely available, “hopefully by oped their vaccines at unprecedented speed and Office | Retail | Industrial | Investment | Multifamily | Property Management January,” Khaldun said. in a matter of just months. “Depending on supply of the vaccine, we’ll Hospitals across the state are collaborating on continue to expand to other types of critical health messaging that the vaccines are safe and effec- care workers,” other groups such as educators, and tive, said Ruthanne Sudderth, senior vice pres- “eventually to the general public,” Khaldun added. ident of public affairs and communications at “We hope to be able to have the vaccine available the Michigan Health and Hospital Association. to the general public by late spring.” The reduced time of an otherwise lengthy development process comes from removing “red tape that normally exists when a vaccine is devel- Beginning of the end? oped,” as well as securing funding and adminis- The U.S. Food and Drug Administration this week is trative requirements, Sudderth said. scheduled to review the emergency use application “The speed at which these vaccines have for Pfizer’s vaccine. The FDA’s Vaccines and Related been developed should not be looked at as a Biological Products Advisory Committee will review negative when people are considering whether an emergency application from Moderna on Dec. 17. it’s safe and effective,” she said. “We want people If the FDA grants emergency approval, dis- to know that the vaccine process underwent very tribution of the vaccines could begin days after- strict scrutiny and has been tested as well as it ward, bringing what health care providers hope could have been, and that we’re feeling confident is the beginning of the end to the pandemic that that this is going to help us get back to normal. WEST MICHIGAN’S TOP DEALS & DEALMAKERS broke out in the U.S. in March, has killed more “We’re cautiously optimistic this could be the than 270,000 people nationwide, hammered the start of a really serious improvement in Michigan MiBiz presents the 8th Annual M&A Deals & Dealmakers Awards to spotlight best economy, and in the recent surge pushed some if people take the vaccine and we can start to practices and excellence related to mergers, acquisitions, capital formation and other types of hospitals to capacity and stretched staff thin. make some headway.” deal making throughout Western Michigan. We are seeking nominations for deals completed “As the COVID-19 pandemic continues to Despite the promise of the vaccines to bring between July 1, 2019 and Dec. 31, 2020 in the following categories: affect people worldwide, having a safe and effec- an end to the global pandemic, health care lead- tive vaccine is critical to stopping the spread ers urge people to remain vigilant and comply Q Deal of the Year: Manufacturing Q Deal of the Year: Technology of coronavirus and keeping people healthy,” with public health measures: wearing face masks, Q Deal of the Year: Professional Services Q Deal of the Year: Nonprofit Ascension Michigan said in a statement. social distancing and washing their hands. Q Deal of the Year: Finance/Banking Ascension Michigan owns Ascension Borgess “It’s not a silver bullet and we’re still going Q Deal of the Year: Retail Sector Q Dealmaker of the Year/Executive Hospital in Kalamazoo and community hospitals to need people to take the preventative mea- Q Deal of the Year: Real Estate/Development Q Dealmaker of the Year/Adviser in Allegan, Dowagiac and Plainwell. sures we know have worked for months. Q Deal of the Year: Economic Development Q Dealmaker of the Year/Investor Grand Rapids-based Spectrum Health said Because not everybody’s going to get the vac- Q Deal of the Year: Health Care in a statement to MiBiz that it “eagerly awaits a cine at the same time, there’s going to be a Q Deal of the Year: Life Sciences decision from the FDA on emergency use autho- tail on this before we have strong immunity rization for the first COVID-19 vaccine.” throughout the state and throughout the coun- Winners will be featured in a special editorial section in the February 15, 2021 print issue of “We’ve had a team working for months to try,” Sudderth said. “There is some light, but MiBiz. Plus, we’ll highlight each of the winning companies and executives online and share ensure we have the capabilities to receive, store, the tunnel is still pretty long.” their stories with industry professionals, executives, advisers, investors and other potential distribute and administer vaccines when they Vaccine distribution also comes with signifi- allies. It’s an exceptional opportunity to source new deals, attract employees, access capital become available. We have several freezers in cant logistical challenges, starting with the need and create strategic growth opportunities. place throughout our health system to accom- for ultra-cold storage of the Pfizer vaccine. modate the storage needs associated with the The Moderna vaccine needs storage at The deadline for nominations is January 8, 2021 at 11:45 p.m. vaccine,” Spectrum Health said, adding that it’s minus-10 to minus-20 degrees Celsius, “which working with state and local health departments is what most medical-grade freezers can gener- “to ensure a coordinated approach.” ate,” said Pete Haverkamp, director of pharmacy services at Metro Health. “The Pfizer one’s definitely the most chal- NOMINATIONS OPEN: MIBIZ.COM/DEALS Uphill climb lenging because of the very limited stability,” For sales information, contact [email protected]. Part of hospitals’ preparation is ensuring that the Haverkamp said. “We’ll be happy when we have COVID-19 vaccines are safe and effective and some other vaccines like the Moderna one that encouraging people to get vaccinated. will give us some more flexibility.”

22 DECEMBER 7, 2020 / MiBiz Visit www.mibiz.com FOOD BIZ Demand surges for Michigan’s Christmas tree industry

By JAYSON BUSSA | MiBiz own the farm that opens only on [email protected] weekends between Thanksgiving and Christmas. “We are locked in in terms f patronage of local Christmas of what we can buy for the year based tree lots and farms is any indi- on the previous year’s order. So even if cation, then Michigan residents your business wants to grow, it’s really are really in the holiday spirit this super hard to find more trees.” I year. Postema said that the overwhelm- Business has been booming for this ing surge in sales is certainly good for segment of the agricultural industry the farm as a business, but it can neg- in Michigan, which ranks third among atively affect some of the farm’s long- Christmas tree producing states in the time clients that might strike out on country behind Oregon and North finding a tree later into the season. Carolina. “We’ve had a solid group of cus- Local u-cut farms, tree lots and tomers that have returned with us wholesale farms, which sell a com- for the past 10 years and it’s hard to Postema Christmas Tree Farm in Alto. COURTESY PHOTO bined 2 million fresh trees annually, tell them (inventory is already low),” are quickly moving through their 2020 Postema said. “We have a whole other quit his job as a tool and die techni- markets are looking for and see what Since 2008, the nation has experi- supply, which many industry insiders group of customers we still expect to cian during the recession and made you can do.” enced a mild shortage in Christmas attribute to the COVID-19 pandemic see this coming weekend and we the farm his full-time venture. trees, but supply hasn’t always been keeping many families cooped up in barely have trees to sell them.” Because the farm continues to low, Start added. Sustaining momentum their homes for the better part of the grow each year, Vormittag expected “It’s a cyclical business and in the year. Tree shopping, meanwhile, pro- that it would be busier this year com- According to the National Christmas past we’ve had an overabundance of A pandemic release vides an opportunity for safe outdoor pared to last, but he now anticipates Tree Association, U.S. tree farms are trees, so it’s great (tree farms) are hav- fun. Like most industry members, Postema that the farm will sell out of trees — growing close to 350 million Christmas ing this time where they’re able to sell attributed some of the increased inter- or come close — because of the surge trees on about 350,000 acres. Typically, out, and sell out early so they can enjoy est in Christmas trees to the cabin fever in demand. those farms sell an average of 25 mil- a little Christmas, too,” Start said. Banner year brought on by COVID-19. Over the “A lot of tree lots are not open this lion-30 million Christmas trees every While business might be booming Brandon Postema, who works at fam- spring and summer, the pandemic had year. … Some didn’t want to invest in year. Michigan’s 2 million trees con- for now, growers say they also face ily-owned Postema Christmas Tree a similar effect on patronage at pump- buying the trees and not be able to sell tribute $30 million to $40 million to their share of risks. Farm in Alto, had droves of tree buy- kin patches, orchards and u-pick farms. them,” said Vormittag, whose farm the national market each year. “There are a lot of factors — a ers visit during the farm’s first week- While COVID-19 may have played only sells trees directly to customers. Nationally, a majority of trees are farmer can lose half their crop like end of the season, which a role in driving more “The people that would go to those lots purchased from u-cut farms (32 per- they did a few years ago to a drought,” came right after the people to the farm, are going to the farms. Thanksgiving cent), large chain stores (24 percent) Vormittag said. “At that point, you can Thanksgiving holiday. FOOD BIZ Postema said his fam- travel is also down 50 percent, which and independent retail lots (17 percent). be four, five years into something and

The 35-acre farm has Sponsored by: ily also took safety pre- means 50 percent of the people that According to Amy Start, executive watch it die. It can be lucrative and it trees planted on 15-20 DAN VOS cautions to meet health would have been traveling are home director of the Michigan Christmas Tree can be devastating. There is a risk and acres of its property. In CONSTRUCTION guidelines and protect or in the vicinity of home and they are Association, the state is a favorable area there is a reward.” addition to the Christmas COMPANY both staff and customers. looking for things to do.” for growing trees because of its trees that the farm grows, “Operationally, we’re Whether this season is an outlier climate, topography and soil. “There aren’t any more it also orders around 400 about the same because or the industry will be able to sus- Start said industry mem- additional trees from Needlefast we’re all outside,” Postema said. tain the momentum, farms say they bers also are hoping to find trees available. We are Evergreens Inc., a Ludington-based “Really, all we did to be different this have difficulty reacting. Christmas ways to sustain the momen- locked in in terms of what farm. year is … we closed down the cabin trees take eight to 10 years to grow tum brought on by this ban- After the first weekend of sales, and are giving hot chocolate and to a proper size, requiring impecca- ner season. we can buy for the year Postema said the farm had just 35 candy canes at the end to reduce ble foresight from producers to meet “If a consumer is new to based on the previous trees remaining and was all but sure touch points.” demand. having a real tree and they to sell out long before the season ends. “Busy” is also how Derrick “I’m a math teacher so I have num- (bought a real tree) this year year’s order. So even if In the initial weekend of sales in 2020, Vormittag of Grand Rapids-based bers in my background,” Vormittag because they could get out your business wants to Postema Christmas Tree Farm had Vormittag Tree Farm described the said. “You’re always looking at cur- with the kids, they might grow, it’s really super hard more business than it did all of last early portion of his company’s season. rent trends, emerging markets and find it was such a great expe- year, he said. Vormittag, who is a math teacher what trees people are interested in. In rience that they want to do it to fi nd more trees.” Complicating matters, the farm by day, works on the 63-acre farm the big scheme of things, your location again,” she said. “That’s what lacks options for procuring additional owned by his father. Currently, the can only grow certain trees to the best we’re hoping, for the new — BRANDON POSTEMA trees. farm has trees growing on 20-25 acres. of their ability. people that have never had Postema Christmas Tree Farm “There aren’t any more trees avail- Vormittag Tree Farm was a hobby “You have to know your property this experience to be like, able,” said Postema, whose parents farm until 12 years ago when his father and you have to dabble in what the ‘Wow, this is really cool.’”

Design Build General Contracting Construction Management

Warner Norcross & Judd www.danvosconstruction.com Grand Rapids, MI

Visit www.mibiz.com MiBiz / DECEMBER 7, 2020 23 Karen Kania and Peg McClure support nonprofits addressing basic needs. In particular, they’re focused on safe housing and alleviating hunger. They believe that if a person can’t nourish their body, they can’t nourish their spirit. As Karen and Peg considered what would happen to their assets after their lifetime, their professional advisor connected them to Grand Rapids Community Foundation. After their passing, the McKania Fund for the Economically Disadvantaged will be established at the Community Foundation to continue their legacy of providing for people facing housing and food insecurity. 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. grfoundation.org LEAVE YOUR MARK

24 DECEMBER 7, 2020 / MiBiz Visit www.mibiz.com NONPROFIT ORGANIZATIONS

… They (the horses), by nature, have a way of bringing forward what’s going on underneath the surface and then sup- porting and helping the group decide what to do about that discovery.” Frederiksen was Eagala advanced certified in 2010, when she began serving internationally as an Eagala trainer. Her private practice, The Sundance Center, specializes in equine-assisted individual and group therapy and trauma-informed therapy for Highly Sensitive People. “Horses, by just being near them, actually exude a peaceful existence,” Frederiksen said. “They teach us about inner peace and being grounded and going with the flow and being in the moment, all of those elusive human goals. More than that, they become metaphors for who or what we are dealing with in our lives.” Frederiksen has witnessed the growth and learning that takes place, resulting in insights that create posi- tive, actionable change. Interacting Red Horse Center for Collaborative Leadership Executive Director Fred Bueltmann. COURTESY PHOTO with the horses in a peaceful and non- threatening outdoor environment provides participants with a safe place to explore and find their own solutions to questions and problems. “When you’re interacting with a horse, with a 1,000-pound animal, you HORSES AND HUMANS immediately become your authentic Fennville-based Red Horse Center for Collaborative Leadership offers equine-assisted self,” she said. “We are involving our bodies, our minds, our hearts, and not experiential learning to boost organizations’ team building, morale just our intellect. When we experience it, we understand it, so the experien- tial part of this work means that peo- By MARLA MILLER | MiBiz Red Horse Ranch has hosted which will allow Red Horse to accept He regularly shares interviews and ple come away having felt something, [email protected] Discovering Your Herd workshops charitable contributions, apply for insights on cultural shifts through his having experienced something rather around organizational leadership and grants and offer scholarships to This Craft Nation project and pod- than just having been taught some- ighly intuitive horses team building since 2008. After leaving nonprofits. cast, and Michigan’s Great Beer State thing by an expert.” are experts at nonverbal his full-time career in the beer busi- “We want to collect support that Podcast, which he produces. communication and can ness, Bueltmann shifted his focus as creates scholarships for nonprofit “I have been a witness to getting Preventing burnout sense chaos, conflict and an independent consultant, podcaster organizations to participate in the people out of the office and looking H other human emotions. and “herd manager.” He brings unique workshops and write grants for the at things metaphorically,” he said. Despite the challenges presented by They often mirror behaviors and, as insights on collaboration, company same,” he said. “It started by discovering the Eagala the coronavirus pandemic, Bueltmann herd animals, reveal the benefits of culture and the craft marketplace after Model and what it did for the therapy continues to spread the word about working in collaboration. more than 20 years in the craft beer world. I was beginning my career as Red Horse’s work and the benefits Team development Red Horse Center for Collaborative industry. a brewery executive in Michigan, and of horse and human collaborations. Leadership aims to get people away “Witnessing the power this work Red Horse has a lofty mission: I was learning the challenges and Taking time for individual and orga- from Zoom meetings and computer has and its ability to help groups see “Strengthening collaborations for the opportunities in terms of manag- nizational self-care and self-assess- screens to experience the transfor- their own story with new insights was greater good by working with humans ing groups of people. We just saw the ment is critical to prevent burnout. mative power of a human-horse con- really inspiring to me,” he said. “Red and horses, through mindful experi- opportunity and how powerful the It can help strengthen a nonprofit’s nection and facilitate positive change Horse is a culmination of all of these ential learning and considerate leader- work was.” ability to invite supporters into their within organizations. things, us expanding what we offer ship models, to discover and empower cause and shift teams into a mode of “There are a lot of groups out there — here at the farm, and us committing positive change in the world.” discovery. Eagala training nonprofit groups fight- ourselves to making Red Horse serves all sizes of busi- “We’re challenged, but we’re also ing for social change this experience avail- nesses but was established with com- Bueltmann earned Eagala certifica- inspired by it,” Bueltmann said. “It is — that would really NONPROFIT able to more people.” munity-based nonprofits and social tion in 2001 and specializes in equine- a very important time for groups and benefit from restorative SECTOR NEWS Despite the pan- change organizations in mind. The assisted organizational development. organizations to work on how they and collaborative work- Sponsored by: demic, the organiza- workshops also benefit businesses He said no horse experience is neces- work together and how that can help shops,” said Red Horse GRAND RAPIDS tion constructed a that want to work on team develop- sary for the workshops. Participants them pursue their mission.” COMMUNITY Executive Director Fred FOUNDATION covered arena and an ment and improve company culture. don’t ride the horses, The work is even Bueltmann. “We want indoor retreat center Day-long and multi-day work- but they do get up “It is a very more relevant in to help people who are called The Tree House shops can be tailored to organiza- close and personal light of social jus- helping people.” to host workshops, classes and other tional, department-level or leadership with them. The important time tice issues, changes A former brewery executive, programs. The project was finished teams. Clients help set the objectives horses act as “cli- for groups and in the way people Bueltmann has found a new call- this fall, and Red Horse plans to wel- for the day, including work around ents” or “customers” work, and the stress ing among the horses on his 22-acre come guests and participants once it mission and vision, company culture, and react to what is organizations and isolation of the Red Horse Ranch in Fennville. He is safe to gather indoors. morale, diversity and inclusion, new going on. to work on ongoing pandemic. launched the Red Horse Center to Meanwhile, Bueltmann is giving projects and new employees. Horses have a how they work “We know so share the wisdom of human-horse virtual presentations and starting to Red Horse also offers one-on-one finely tuned com- many organizations interaction through mindful experi- book workshops into spring and sum- mentoring and workshops focused on munication struc- together and are working to get ential learning. mer 2021. Bueltmann wants to serve professional development, leadership ture, are sensitive how that can us through this, and Bueltmann co-founded Red Horse organizations near and far, noting skills and horse and human collabo- and expressive, and they are dealing with with his wife, Ulla Frederiksen, who organizations from other states plan rations. Private rentals are available understand group help them severe burnout,” is also a psychologist and offers pri- to visit the farm. for artists and educators who seek a dynamics intuitively. pursue their Frederiksen said. vate practice therapy through The “We have enough space to gather tranquil setting to work on a project or “The horses are “We’re really hop- Sundance Center on the farm. They outside, regardless of the COVID situa- space to host classes and workshops, loose. They have mission.” ing to position our- are certified facilitators of the Eagala tion,” he said. “We can facilitate group as well as families and groups looking choices and they selves in a place we Model. Eagala (Equine Assisted workshops up to 25 people as long as to host gatherings and celebrations. can decide where — FRED BUELTMANN can offer respite and Growth and Learning Association) is there are reasonable temperatures.” As for the Eagala work itself, to move and how to retreat and profound Executive Director of Red a distinctive experiential framework Bueltmann gathered a team and a Bueltmann experienced a workshop move,” he said. “The insight into how Horse Center for Collaborative designed to hold space for clients to board of directors and has applied for as a client years ago. Now he spends people have choices change makers can Leadership discover, learn and grow from a horse 501(c)(3) nonprofit status. He hopes his days on the farm running the on where to move keep moving forward and human experience. to receive the status by spring 2021, center and Treehouse Productions. and how to move. with clarity.”

Visit www.mibiz.com MiBiz / DECEMBER 7, 2020 25 Q&A Kelsey Perdue IN THE NEWS Kids Count Project Director, Michigan League for Public Policy M&A VENTURE CAPITAL Appointee to Michigan Black Leadership ■ Fruitport-based medical device supplier Motion ■ The innovation and investment arm of Grand Dynamics LLC, a portfolio company since 2016 of Rapids-based food distributor Gordon Food Advisory Council Los Angeles-based private equity firm Vance Street Service participated in a $4 million funding round Capital, has completed its first add-on acquisition with for MarginEdge Co., a Fairfax, Va.-based restau- Grand Rapids resident Kelsey Perdue was one of 16 a deal for ViaMed Holdings LLC. The Easton, Mass.- rant management software firm. Relish Works Inc., people appointed by Gov. Gretchen Whitmer last based ViaMed manufactures miniature precision com- the GFS division based in the Merchandise Mart in month to the state’s newly created Black Leadership ponents and subassemblies for medical device manu- Chicago that makes minority seed and early-stage Advisory Council. The group will advise the admin- facturers in the neurovascular, peripheral vascular and investments in companies involved in food indus- istration on policy recommendations and also “identify state laws, or gaps in state orthopedic markets. The deal complements Motion try innovations, joined the round as a new inves- law, that create or perpetuate inequities.” Perdue brings to the council experience in Dynamics’ capabilities and allows the company to tor in MarginEdge, which to date has raised more grassroots organizing for equitable policies in West Michigan. In addition to her posi- “simplify the supply chain” for device manufacturers, than $15 million. Philadelphia-based venture capital tion as director of storytelling and communications at the Grand Rapids-based Urban President Chris Witham said in a statement. Terms of firm Osage Venture Partners led the round, which Core Collective, Perdue also serves as project director of Kids Count in Michigan at the the transaction were not disclosed. Motion Dynamics included all repeat investors except for Relish Works, was advised by Chicago-based Vedder Price LLP, according to a statement. GFS CEO Rich Wolowski Michigan League for Public Policy. She spoke with MiBiz about how her experience while Attleboro, Mass.-based Coogan Smith LLP said the investment not only signifies the compa- will fit with more than a dozen appointees from across the state, and the challenges served as legal adviser to ViaMed. ny’s “excitement for the MarginEdge product, but and opportunities ahead. ■ Caledonia-based Aspen Surgical Products Inc. the impact we think it can have on our customers completed its third acquisition in less than a year and the industry at large.” after buying Coralville, Iowa-based Protek Medical What are some policy recommendations you expect to discuss with the Black Leadership Products Inc. The acquisition “strengthens Aspen’s EXPANSION Advisory Council? broad portfolio of medical and patient and staff ■ Grand Rapids-based Total Fire Protection Inc., From a policy perspective, I bring a varied approach to grassroots activity, being focused on safety products sold into hospital and surgery center a family-owned business that has specialized pri- voices that are closest to the pain, power and solutions, as well as more formal advocacy work markets,” according to the company. Protek Medical marily in fire sprinkler and extinguisher services, with the (Michigan League for Public Policy) on state budget related policies. Products produces single-use ultrasonic probe cov- has launched a new Total Fire & Security division to From an agenda perspective, I’m really focused on seeing policies that are equity focused. ers and needle guides used in tissue biopsies, fluid provide a more complete line of life safety services. I do not believe policies or state budgets are color blind. It’s not a fiscal document, but a moral aspiration and vascular procedures, as well as pro- The company is now able to provide new services document. Whatever we discuss, advise or recommend — if there’s an investment to be made tective covers for medical instruments and equip- that include installation, inspections and service for and justified, that will come along with it. ment. Terms of the deal were undisclosed. Aspen fire alarms and security alarms in addition to central Surgical, a maker of disposable surgical products, station alarm monitoring, building access control, You come to this role from a public policy and health angle, but what perspectives do you previously acquired Arden, N.C.-based Precept security cameras and nurse call systems. The move expect from the business or economic community? Medical Products and Redmond, Wash.-based came as customers signaled to the company that One thing I love about this committee is bringing folks together from different sectors. I think Beatty Marketing & Sales LLC. they were looking for one-stop-shop solutions, Total that’s so critical. When we talk about equity and social justice, voices from the business and ■ New York City-based private equity firm ASGARD Fire Protection President Ryan Goossens told MiBiz. economic development community might be missing, but we really need everyone at the table. Partners & Co. has acquired a controlling interest in I’m a true believer that when you talk about any agenda, you need to consider both social and Angstrom Technology, a Grand Rapids-based com- BANKING economic issues — they all work hand in hand. Having those perspectives and appointees is pany that designs, builds and maintains modular ■ Grand Rapids-based Lake Michigan Credit just as critical as a public policy appointee. cleanrooms for clients in North America. Angstrom Union opened a full-service branch on East Main Technology’s management team will continue to lead Avenue in Zeeland. LMCU, the largest credit union How do these issues around representation differ in West Michigan compared to other the company. Terms of the deal were undisclosed. in Michigan, has 55 offices, including 11 in south- parts of the state? Grand Rapids-based M&A firm Charter Capital west Florida. The credit union had nearly 400,000 In terms of the Black community on this side of the state, we don’t have the same sort of num- Partners represented Angstrom Technology in the members and $8.73 billion in assets as of Sept. 30, bers or percentage of the population we do in Southeast Michigan, particularly Detroit. When transaction. Dickinson Wright PLLC served as legal according to a quarterly financial report to federal it comes to issues on this side, our communities might be less out, but it’s a really great repre- adviser to Angstrom, while Richmond, Va.-based regulators. sentation of the challenges we have throughout our state and the nation. Just because a racial or McGuireWoods LLP advised ASGARD Partners. ethnic group is not ‘in the majority,’ doesn’t mean they should have less access to opportunities to ■ Albion-based Caster Concepts Inc., which HEALTH INSURANCE power and influence. On this side of the state, with Black folks not in the majority, the challenge designs and manufactures industrial casters and ■ Priority Health plans to give large employers a is: How do we still get things done that benefit the community? Are we making sure we keep wheels for a variety of industries, expanded into rebate on their employee health coverage, a result all members of the community in mind? That includes Black communities and many others. the aerospace and defense sectors with a deal for of lower medical claims during the COVID-19 pan- Los Angeles-based Aerol Co. Inc. The acquisition demic. The rebate will appear on February invoices When announcing the advisory council, the state noted potential recommendations that might included Aerol’s line of aluminum casters specifically for employers with 51 or more employees and range address state laws that create or perpetuate inequities. What are some that come to mind? designed for the aerospace tooling industry, which from 5 to 35 percent of one month’s premium for We as a state should consider strengthening our safety net. When we consider any budget priority bolsters Caster Concepts’ product line of heavy-duty more than 1,000 fully funded large group employ- and know policies alone are not color blind, do they have disproportionate impacts that are often industrial casters, wheels and polyurethane tread. ers that collectively employ about 260,000 people. unintended? Another thing is thinking about how we fund our school systems. Right now, there are so Caster Concepts plans to close Aerol’s southern Priority Health will base rebates on the medical many disparities in funding for our schools. It hits low income and communities of color the hardest. California operations and move it to its home facil- claims trend for each employer over a 12-month When we talk about equity, particularly racial equity for Black folks in this country, we did not ity in Albion. The company also plans to outsource period through Sept. 30. get to this place overnight. Throughout history, it has been through intentional policies and deci- the production of aluminum castings to a foundry in sions, many very recent. We’re not going to get out of it overnight. I can’t tell you one or two policies West Michigan. Terms of the deal were not disclosed. HEALTH CARE that will automatically make life better for Black folks. It is a cross-sector, multi-issue challenge. ■ Greenville-based FabX Industries Inc., a pro- ■ Bronson Methodist Hospital and Ascension I plan to be a champion and the Black Leadership Advisory Council will be a champion. And we vider of machining and fabrication services, acquired Borgess, both located in Kalamazoo, were named need buy-in from communities, businesses and every sector in order to make any real change. Fort Wayne-based Guide among the top 50 heart hospitals in the U.S. by Engineering LLC in a Fortune and IBM Watson Health. Ascension Borgess What are some misconceptions that the council will need to address? deal that closed Oct. 31. was listed among the top 20 cardiovascular teach- Often when we talk about racial equity, we tend to conflate race and class. The safety net, for Guide Engineering spe- ing hospitals in Fortune and IBM Watson Health’s example: That’s a class issue that has racial implications. Education funding is also a class issue cializes in designing and 50 Top Cardiovascular Hospitals for 2021. Bronson that has racial implications. Also, Black folks who are not living in poverty also suffer with the manufacturing automation, assembly and test systems Methodist was among the top 20 teaching hospi- current state of our policies and outcomes. I want to correct that to not conflate race and class. primarily for the automotive industry. The acquisition tals. Other Michigan hospitals named among the I don’t have all the answers — that’s why there’s such a diverse group of stakeholders called to adds capabilities to FabX, which is focused on high- top 50 heart hospitals are St. Joseph Mercy Ann really be champions around some we think we can successfully make an impact on, as well as quality, cost-effective and value-added machining Arbor Hospital, McLaren Macomb Hospital in Mt. achieve buy-in to move the needle. and fabrication services. FabX President Gopi Ganta Clemens, and McLaren Northern Michigan Hospital will now take on the CEO role at Guide Engineering, in Petoskey. The research around the Kids Count program has shown Michigan ranks basically in where former co-owner Scott Taylor will serve as the middle of U.S. states for childhood well being. What is happening here that places president. The deal allowed two of Taylor’s partners PUBLIC RELATIONS Michigan in the middle of the road? to transition to retirement. Grand Rapids-based merg- ■ Long-time media and pub- As a state, we need to make some bolder movement on the policy side with access to resources ers and acquisitions firm NuVescor Group advised lic relations professional Tim for families, strengthening our safety net and revising how we fund schools. That will really help Guide Engineering on the deal. Terms of the deal were Dye has launched a strate- us move ahead. We’re doing well in some areas — health is one. We have some of the highest not disclosed. FabX Industries previously acquired gic communications firm, rates of children with health insurance. Kalamazoo-based Elite Tooling LLC in late summer. Dye Communications LLC. While poverty has gone down or improved, the number of families struggling to make ends ■ Chicago-based Factorial Holdings acquired 26 The firm provides internal meet has actually gone up. That has huge implications for business. We talk a lot about child care existing Burger King restaurants in the Grand Rapids and external communications right now and as we recover from the pandemic, access to childcare and affordable childcare area, where it plans to construct 10 new locations of services that include media is getting the attention it deserves. Access to childcare is a women’s rights issue, it’s a business the fast food chain over the next five years. Factorial Dye relations and coaching, issue issue, it’s a talent pipeline issue. Tackling that will allow more families to work, allow stronger Holdings specializes in buying restaurant compa- management, crisis communications, digital media and sustained talent for businesses and, I think, can really help move Michigan forward. nies where founders are interested in transitioning. strategies, community relations and business publi- The firm invests in family-owned companies with cation support. Dye previously led the Grand Rapids Interview conducted and condensed by Andy Balaskovitz. COURTESY PHOTO $500,000 to $5 million in annual earnings. office of Truscott Rossman LLC.

26 DECEMBER 7, 2020 / MiBiz Visit www.mibiz.com $'9(57,6(0(17 Six Personal Considerations Before Selling a Business

PRESENTED BY: MIKE CHAFFIN, SVP, and often considered nine to twelve months Owners may have business expenses that Commercial Banking before any sale of the business, if not two to were handled through the business, but that three years prior. serve both business and personal purposes. “In my experience, the most successful tran- Consider, for instance, a vehicle purchase. usiness decisions are often intertwined sitions occur when the planning starts, long Once you sell the business, those expenses will Bwith the impact they’ll have on the family, before the owner has any serious intention fall to you again and the personal assistance and business owners must understand of leaving the business,” says Troy Farmer, will end—and these factors should be a part of the dynamics and value drivers of both—as well Regional Director, Wealth Planning at Fifth the financial modeling for the sale. as how they overlap. It’s a strategic benefit to Third Bank. “Early strategic planning that coor- “Evaluating desired cash flow post-sale will have a team of professionals who understand dinates both income tax planning as well as provide an estimate of the assets the business the valuation aspect of selling a business, in estate transfer tax planning can increase the owner will need to achieve his or her goals and addition to having wealth expertise, during all eventual value of a business while minimizing the amount of proceeds needed from the sale,” stages of your business sale. This is especially tax impacts. It can help ensure that the owner says Farmer. “That cash flow should account true if you can find a team that can tailor its can sell to their preferred buyers. And it can for personal expenses previously paid by the recommendations based on your goals and help them achieve their financial goals after business as well as future expenses such as needs. the sale.” travel, a vacation home, to account for the There are several personal and profes- owner’s desired lifestyle in retirement.” 3. What are your charitable intentions? sional questions you may consider prior to Some business write-offs will become per- selling your business, including: If you have charitable intent, strategic char- sonal expenses. If your wealth is significant, itable giving can provide additional opportuni- 1. What do you need from the sale? you may want to consider a family office or ties for tax savings. For instance, a charitable other assistance with financial affairs. Many business owners intend to fund tax deduction in the same year that you sell retirement from the sale of their business, and your business may help offset the gains you 6. Will you start another business? they’re accustomed to cash flow from their incur. What will your life look like after the dust day-to-day business activities. It may, there- Depending on the type of business entity has settled from this business sale? Are you fore, be important to think about what after- and the individual’s tax and cash flow cir- headed into retirement, or will you put the tax proceeds are necessary to support your cumstances, business owners might consider proceeds into your next venture? What will future needs. donating shares of the business to a charity, you do with your time? Some options include A key variable for this analysis is under- donating cash from the sales of the business, devoting your time to travel, or becoming an standing what your business is worth. An M&A establishing a charitable trust that provides angel investor to help the future generation of advisor who understands the market and your a lifetime income stream, or creating a donor entrepreneurs start their own enterprises. industry may be best suited to help understand advised fund or a private foundation that can Creating an action plan can help you men- your valuation along with helping to evaluate be used to distribute charitable contributions tally make the transition from your current strategic alternatives for the business. A third- in the future. endeavor to the next stage. party valuation specialist (many accounting As you’re considering these essential points, 4. What does the sale mean for you and firms have these groups) may also provide a it’s important to have the right professionals in market valuation, and these types of reports your family? the early stages. That may include investment are often used for wealth planning purposes As a business owner, you may have devoted bankers, lawyers and accountants. To assemble ahead of a formal sale process. your life to the business—growing it into a suc- your core team, consider looking for financial cessful organization. Are you ready for what 2. How does the sale fit into your institutions that can serve as a strategic fit and will be a major change? Have you determined bring to the table a variety of professionals estate plan? what the sale will mean for children who may who can help you determine what’s best for Tax and estate planning can be important have been involved or planned to be involved you, your family and your business from both topics to think through, and wealth transfer in the business? Will an increase in wealth a business operation and a wealth planning strategies may provide opportunities to save affect the family’s values and governance? standpoint. Now is a great time to evaluate on both income and estate taxes. How does the business owner educate their your options for your business and your wealth Transferring ownership interest to family descendants on handling wealth? You may planning needs. members, trusts or other entities before the consider how your dynamic may change and Fifth Third Bank can assist you with the sale may help you take advantage of allow- grow from the event. future planning for your business and beyond able valuation discounts and can reduce by putting you in contact with team members transfer taxes later. Transfers such as these 5. Is your business handling any of your qualified to support your specific needs. are commonly weighed against future needs personal affairs?

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