Pair of Indiana CU VC-backed eyes GR, Kzoo startups inch markets for closer to market expansion PAGE 3 PAGE 16

JUNE 22, 2020 • VOL. 32/NO. 18 • $3.00 SERVING WESTERN MICHIGAN BUSINESS SINCE 1988 www.mibiz.com VNN Inc. co-founder steps down from VC-backed startup after ‘passions changed’

By JAYSON BUSSA and JOE BOOMGAARD | MiBiz “I’m blown away when I think about that number,” [email protected] Vaughn told MiBiz. But even as VNN continued to add clients across the yan Vaughn can count many accomplishments country, Vaughn’s 10-year run with the company ended in over the last decade after co-founding and scal- April, about two years after he says he started to lose the ing VNN Inc., originally known as Varsity News passion for the work, which would eventually become dis- R Network. ruptive to his executive leadership role. That includes raising around $21 million in investor “It’s kind of like you finally get enough gold stars and VNN Inc. co-founder Ryan Vaughn departed the company in April, although capital for the company, a Grand Rapids-based informa- then you realize you don’t care about gold stars anymore,” he remains a shareholder. In his decade at the company, Vaughn raised about tion technology startup that offers schools a platform to Vaughn said. “Most of my VNN career — and frankly my $21 million in investor capital from local and national sources. COURTESY PHOTO post content about sports programs. See VARSITY NEWS NETWORK on page 8

Groups say their assistance After 2020 with Kent County relief cancellation, fund merits compensation

future of ArtPrize By MARK SANCHEZ | MiBiz a history of [email protected] equity or equi- table causes remains unclear GRAND RAPIDS — In partnering in their work. on a $25 million small business When funding By ANDY BALASKOVITZ | MiBiz relief fund, Kent County and the opportunities [email protected] The City of Grand Haven was an early adopter in creating social zones that Grand Rapids Area Chamber of come, all of a allowed restaurants and retailers to expand onto sidewalks and city streets. Commerce want to tap a number sudden they fter canceling this year’s MIBIZ PHOTO: MARK SANCHEZ of community and entrepreneur- Ross form these alli- ArtPrize because of ial support organizations to get the ances and part- concerns over COVID- word out to companies and provide nerships where basically the A 19, organizers of Grand volunteers to vet grant applicants. smaller organizations and the Rapids’ flagship arts event and the RESTAURANTS, BARS EXPAND However, Start Garden minorities do the work for free,” largest art competition in the world and Grand Rapids Area Black Ross said. “There definitely could have avoided questions about Businesses — two of the orga- have been more intentionality whether it will return. nizations that the Grand Rapids and sensitivity around making Staff declined to give interviews, OUTSIDE WITH SOCIAL ZONES Chamber lists as potential part- sure that the partners with a his- while chairman and founder Rick ners in the Kent County Small tory of the work and who actually DeVos did not respond to requests By KATE CARLSON | MiBiz Business Recovery Program — care about equity work, making for comment. [email protected] question the volunteer part. sure they are at the table in a way Board member Marc Schwartz They’d like to see the $750,000 the that is monetized.” issued a statement to MiBiz saying W’s Food & Spirits had never offered outdoor seating in the more than county will pay the Chamber to The Grand Rapids Chamber’s the board “will continue to evalu- two decades the restaurant and bar has been in operation at the corner of administer the grant program get proposal to the county for manag- ate things, and at the right time, North 7th Street and Washington Avenue east of downtown Grand Haven. funneled down and compensate ing the grant funds lists municipal- make decisions regarding the pos- J That all changed this year when 50-percent capacity restrictions the groups who are called upon ities and chambers of commerce sibility of future events.” brought on by the COVID-19 pandemic forced owner Chris Weavers to get cre- to assist in the effort, rather than across Kent County as partners “Our decision to cancel ArtPrize ative in finding a pathway to remaining profitable. provide free labor. for outreach and providing repre- was a result of uncertainties related The Grand Haven establishment took advantage of the city’s “This should be a robust com- sentatives for selection commit- to the COVID-19 pandemic,” said new social zone program that allows businesses to use outdoor munity effort, and it’s pitched as it’s tees, plus several community and Schwartz, whom lifestyle publi- space such as sidewalks, parking lots and parts of city streets for going to be a robust community entrepreneurial organizations. cation SEEN Magazine described their operations. JW’s now has nine outside tables in an area the effort, so it just seems, arguably, That includes organizations such in 2017 as a “full-time Detroit arts city assisted in blocking off with concrete barriers. that the community should get as the West Michigan Hispanic ambassador and advocate.” “This is going to more than make up for the 50-percent paid for those services,” said Darel Chamber of Commerce, West “Given the prospect of contin- capacity (restriction) and it’s just a fun, exciting atmosphere,” Ross, a director at Start Garden. Michigan Hispanic Center, Grand ued uncertainties related to the Weavers said. “My dining room is quite small. Without this out- “There’s a pattern and his- Rapids Black Chamber, Grand See ARTPRIZE on page 3 door seating, it would have been impossible to turn a profit.” tory in Grand Rapids of larger Rapids Area Black Businesses, the Weavers See SOCIAL ZONES on page 15 organizations that do not have See RECOVERY FUND on page 17

PERIODICALS Philanthropy gets creative INSIDE: to address nonprofi ts’ Automotive acute needs Industry PAGE 21 Forecast SEE PAGE 4 OUR REACH MAY BE GLOBAL, BUT OUR HEARTS COULDN’T BE MORE LOCAL.

Being a part of West Michigan for over 50 years has not only shaped who we are as a company, it’s profoundly impacted us as individuals. Its work ethic and passion for innovation are infused in our DNA. We are known throughout the world for our excellence in developing automotive décor components, and we attribute much of our success to the place we call home. lacksenterprises.com

20-LE-0002-MIBiz-Ad-June-Insertion-Final.indd 1 6/9/20 5:47 PM 2 JUNE 22, 2020 / MiBiz Visit www.mibiz.com Capital raises bring pair of Genesis Innovation-backed startups closer to market

By MARK SANCHEZ | MiBiz of artificial bone applications. HAPPE Spine is to do to help correct” a condition. [email protected] developing a device for spinal fusion and expects “This is more about precise device decision mak- Published since 1988 to file an application to the U.S. Food and Drug ing: Which exactly is the best device for the patient MiBiz® is a registered trademark of GRAND RAPIDS — New capital investments Administration by the end of the year to move into and where is it best placed to provide the best out- MiBiz, Inc. involving existing investors will bring two health the marketplace, Ball said. comes for the patient?” Ball said. care startups backed by Genesis Innovation “This capital gets us to that moment,” he said. Genesis Software co-developed and tested the Publisher Group LLC closer to the market. HAPPE Spine previously platform with a “significant group Brian Edwards / [email protected] Investors recently committed $650,000 to raised about $2 million. As the of surgeons,” Ball said. The com- Associate Publisher HAPPE Spine LLC, a Grand Rapids-based startup company moves toward commer- pany’s initial focus is orthopedic Denise Montambo / [email protected] developing and commercializing a porous, bioac- cialization, it will need to secure procedures, although it’s also look- tive material for orthopedic implants. The invest- additional capital, and to decide ing at the software’s use in cardiac Editor ment capital came from existing financial backers whether to go to market alone, procedures and other applications, Joe Boomgaard / [email protected] of HAPPE Spine that include the Holland-based pursue a strategic partnership, he said. Managing Editor Genesis Innovation Group and its venture capital or sell the intellectual property, “We are in full development Andy Balaskovitz / [email protected] fund, Cultivate(MD), plus indi- Ball said. mode and we are, similar to (energy, policy) vidual private investors, said “All options are on the table, but we’ve had sig- HAPPE, filing (with the FDA) on the technology Senior Editor Genesis CEO Rob Ball. nificant, inbound strategic interests in the tech- later this year,” Ball said. Jayson Bussa / [email protected] Another company formed nology,” he said. “We’re open to a strategic part- The Genesis Software platform stems from Senior Writer by Genesis Innovation Group, nership as well.” Genesis Innovation’s prior involvement in Mark Sanchez / [email protected] Genesis Software Innovations At Genesis Software, the new capital raised from IMASCAP SAS, a French developer of pre-opera- (fi nance, health care, life sciences) LLC, raised $427,230, accord- 15 investors will take the company up to the FDA tive software that was acquired in December 2017 Staff Writers ing to a recent filing to federal application process. The company developed a soft- by The Netherlands-based Wright Medical N.V. Kate Carlson / [email protected] securities regulators. The capital ware platform that leverages artificial intelligence to for $88 million. Kalamazoo-based Stryker Corp. (real estate & development, small biz) Ball investment for Genesis Software allow surgeons to better plan surgical procedures. (NYSE: SYK) is in the process of finalizing a $4 bil- Jessica Young / [email protected] also came from existing investors, Ball said. Using CT or MRI imaging, the software provides mea- lion deal to buy Wright Medical this summer. (manufacturing, agribusiness, nonprofi ts) HAPPE Spine uses a material developed by Ryan surements, information and a three-dimensional “We have some experience in what these Contributing Reporters Marla Miller, Jane Simons Roeder and researchers at the University of Notre view of a patient’s anatomy that the surgeon can use types of products can do in the marketplace,” Copy Editor Dame that allows for the full or partial construction prior to a procedure “to plan his intention and what Ball said. Claire Boomgaard

VP of Production & ARTPRIZE sponsors including Founders Monroe Community Church, “I see all over Facebook people say- Audience Development Continued from page 1 Brewing Co., PNC Bank, Consumers which was a finalist for outstand- ing stuff about how people shouldn’t be Kristi Kortman / [email protected] Energy, Herman Miller Cares, ing venue in 2017, was planning a mad about ArtPrize canceling — these event cancellation, we had to make Haworth Inc. and Wolverine World second venue in a “big wide empty are not the small business owners,” Senior Advertising Consultant the unfortunate decision to take a Wide Inc. The remainder of the last warehouse” for this year’s event. Berry added. “The small business own- Shelly Keel / [email protected] pause in our operations,” he added. ArtPrize budget was composed of Over the past few months, the ware- ers in Grand Rapids are tired, confused City officials had continued plan- foundation grants, revenue from house space has been used to store and now left without a giant economic Digital Specialist ning for the event in the week leading advertising and retail and registra- personal protective equipment for driver for their businesses. When I think Danielle Affholter up to the announcement of the cancel- tion fees. About $320,000 was tax- Spectrum Health, Fridsma said. about the center city’s rental rates and [email protected] lation, while the organization itself said payer funded from state, local and The church had started sorting the pull to be in the downtown, I do gen- as recently as May 29 that “new safety federal governments. through entries to host and was field- uinely think of ArtPrize’s allure. Circulation For address corrections or guidelines” were forthcoming to allow The global pandemic “created many ing interest from artists. One possibil- “Ultimately, I want to challenge subscriptions, contact MiBiz at the event to continue this year. obstacles” for ArtPrize to host the event, ity was to do mostly exterior murals. ArtPrize to still give without organiz- 1-877-443-1977 or [email protected] Richard App, a former ArtPrize including raising concerns over travel “What I do hope is they defer ing. I think for the city and for art- artist and curator, said he is “cau- and the unpredictability over what ArtPrize for a year and not go back ists alike, ArtPrize is a gatekeeper MiBiz tiously optimistic” the event will type of gatherings would be permit- to a Project 1 type of thing,” Fridsma for change and it’s a shame that no ISSN 1085-4916 • USPS 017-099 Established 1988 return post-pandemic. App is now ted by then. Schwartz said the ArtPrize said. “We missed hosting.” matter what the scale was that it isn’t the small business retention and team worked through the spring to “find Diedre Deering, president of the going to go through.” MiBiz is published every other week by attraction specialist with the Grand a way to hold a safe and robust event. Monroe North Business Association, Against the uncertainty, other MiBiz, Inc., P.O. Box 1629, Grand Rapids, Rapids Area Chamber of Commerce, There were just too many unknown fac- downtown business owners reflected also said she wasn’t surprised by this MI 49501. Telephone (616) 608-6170. Fax and acts as a liaison between the tors. Cancellation was announced 90+ year’s cancellation due to COVID- on ArtPrize’s effect over the past (616) 608-6182. E-mail: [email protected]. Chamber, the city of Grand Rapids days prior to the scheduled event and 19, but she’s hearing disappoint- decade. Subscription changes: subscribe@mibiz. and Downtown Grand Rapids Inc. before the opening of the ‘Connections’ ment that it won’t be configured as “My overwhelming sentiment com. Periodicals Postage is paid at Grand “I think they’re erring on the period where registered venues and art- a mostly outdoor event. Downtown is gratitude,” said Sam Cummings, Rapids, MI. side of caution, which I respect very ists match up.” restaurants have also reportedly managing partner of CWD Real much,” App said. “The truth of the Grand Rapids City Manager expressed disappointment, hoping Estate Investment LLC. “I cannot POSTMASTER: Send address changes matter is it’s up to the board of direc- and ArtPrize board member Mark ArtPrize would be a reprieve after the think of something that happened to MiBiz, P.O. Box 1629, Grand Rapids, MI tors to decide. I’d love to see them Washington said the city respects pandemic-related closures. at a better time for our city. I don’t 49501. Subscriptions are available without back. It has been a great success for organizers’ decision “and the many Meanwhile, artists had been pre- know what the future holds, but it cost to qualifi ed readers. Paid subscriptions the city, but I also don’t know the other organizations that have can- paring for months for the event to was incredible. Whether that was a are available to those not meeting qualifi ed inner workings of exactly everything celed their events due to COVID- continue this year in some form. decade of experience that is just a circulation requirements. Paid subscriptions it takes to make this work. I couldn’t 19. We look forward to the return “ArtPrize canceling a few months stepping stone for us and it has run are $99/year. Single copy and back issues bet one way or the other on it.” of ArtPrize and the many other before it was slated is very difficult its course, who knows?” (when available) are $3 each, plus fi rst class According to Steve Fridsma, who events that were canceled next year. for me to understand as an artist, arts The move to Project 1 was, in part, postage. Call 1-877-443-1977 to order. organizes Monroe Community ArtPrize has been and will continue curator or whatever else you would to give organizers some breathing room Church’s ArtPrize venue, this isn’t to be an outstanding experience for consider my title,” Hannah Berry, between what is ultimately massive HEADQUARTERS the first time speculation has sur- our community and the world.” founder of Lions & Rabbits, said in planning and coordination for ArtPrize, 1059 Wealthy St. SE, #202 faced about the event’s future. He Evette Pittman, special events a statement. Lions & Rabbits coordi- organizers have said in the past. Grand Rapids, MI 49506 said some in the community ques- supervisor with the city of Grand nated the downtown Windows mural “Was it a pain in the ass? Sure,” 616-608-6170 phone • 616-608-6182 fax tioned the move in 2019 to hold Rapids, said the city had weekly meet- project on storefronts after damages Cummings said. CWD is the “official ArtPrize biennially with a scaled- ings with ArtPrize until the week before sustained following May 30 protests. real estate provider” that rents space NEWSROOM back event known as Project 1 in the cancellation. She said the city will The company owns an arts space in for ArtPrize. Planning between the 1224 Plainfi eld Ave. NE the off years. 2019 was Project 1’s continue to work on arts projects this the Creston business district and has two entities would start in the spring Grand Rapids, MI 49505 first year, and projects 2 and 3 are year, which may include publicly dis- led several Grand Rapids arts proj- with details solidified by June or July, planned, according to ArtPrize’s playing murals painted on boarded up ects in recent years. he added. COPYRIGHT ©2020. All Rights Reserved. website. It was also a shift from hav- storefronts after May 30 protests. She “From an artist’s point of view, “There is always an ongoing dia- Reproduction or use of any portion without ing hundreds of artists pay to enter said the storefront mural project “has it sucks,” Berry said, who also logue,” Cummings said. “It’s a tricky permission of the publisher is prohibited. the competition to ArtPrize paying created a mini-ArtPrize feel.” expressed gratitude toward ArtPrize balance. It was a good challenge.” a select few to display projects here. “While it may seem COVID has staff. “Most artists have finished their Despite coordinating with “When they announced they’d go won the round, our industry will win work at this point.” ArtPrize, Cummings said he’s not every other year, I heard people say the battle,” Pittman said. Schwartz said “we will be provid- close enough to the organization to this is a sign of the end. I didn’t feel Most agree ArtPrize — at least ing support to artists that had been “have any insight” on its future. that way personally,” Fridsma said. in its original format — should not working with ArtPrize on specific As with businesses in other sec- “It’s a lot of work — I actually kind have happened this year because of grant proposals.” tors, it’s not clear whether COVID-19 of like having a year off.” the pandemic. is a temporary obstruction or a rea- “I kind of expected it. I’m actually Looking ahead son to call it quits. COVID challenges relieved,” Fridsma said. “The thought “Everybody can certainly under- of 4,000 people coming through our Berry said ArtPrize’s cancellation this stand why they’d choose not to go ArtPrize’s 2018 operating budget doors in a period of three weeks gave year comes at a confusing time for forward with it this year,” he said. was $3.2 million, nearly 60 percent us some concern. In general, we’re small businesses who have at least “Then I guess going forward, we’ll of which was funded by corporate disappointed but relieved.” partly counted on the event. just have to see.”

Visit www.mibiz.com MiBiz / JUNE 22, 2020 3 FOCUS: AUTOMOTIVE INDUSTRY FORECAST Auto dealers say demand remains strong, as worries grow over new car inventories

By JAYSON BUSSA | MiBiz the collapse of travel in the wake of various stay- [email protected] home orders nationwide. “There is a sizable decline on the fleet side, he projected slide in new vehicle sales but we’re actually seeing retail holding quite globally and nationwide paints a grim well,” Wall added. picture for the industry, but local auto Still, Bank of America’s “Car Wars” forecast dealership executives say there’s a suggested that this slump will stick around for T disparity between the numbers and the long haul, taking several years before the what they’re seeing on their lots. industry can even approach the level of 17.1 mil- Because of the global COVID-19 pandemic, lion cars that were sold in 2019. which has crippled auto production throughout Aaron Zeigler, president of Zeigler Automotive Group, said the company recorded its best-ever the last three months, the sales forecasts offer any- month of sales in May, despite the COVID-19 pandemic. MIBIZ FILE PHOTO: KATY BATDORFF thing but encouraging news. Still ready to buy? An IHS Markit forecast While the numbers might be depressing for “Sales are substantially higher than what manu- phase because they’ve had to,” Maher said. “I released earlier this month auto retailers, some dealerships are still hang- facturers thought and they’re trying to gear back think it’s been really good for the industry as a projected drastically lower ing tough, and in some cases thriving. up and it will take them a while to catch up. We’ve whole as far as the technology that is around now sales expectations for the For instance, in the face of the bleak outlook, been out for about 45 days trying to buy cars. and it lets us do it this way.” year. Global auto sales are the Kalamazoo-based Zeigler Automotive Group Our inventory has about 1,500 less than what we Still, motorists shouldn’t expect the car-buy- expected to sink to 70.3 mil- managed to record the best month of auto sales would normally have in stock.” ing experience to become exclusively digital any- lion units in 2020, a 22-per- in company history in May, both with cars and Pickup trucks will be the first to dry up, as time soon. Maher points to the fact that many cent slide from last year. in the motorsports division of the business that demand in this ultra-profitable segment of vehi- clients of Fox Motors prefer the person-to-person Domestically, IHS Markit sells motorcycles, ATVs and personal watercraft. cle sales has not relented while production of interactions with the sales and service consul- Wall is now forecasting a 26.6-per- In May, Zeigler sold 3,700 vehicles, which these and other vehicles came to a screeching tants with whom they have created relationships. cent decrease from last year, with auto dealers eclipsed its previous best mark of 3,500 vehicles halt at the height of the COVID-19 pandemic. expected to move an anemic 12.5 million units sold back in August 2019. Demand continues to be highest for trucks, “The biggest challenge is going for the year. The original forecast from January President Aaron Zeigler said that he is seeing peo- SUVs and crossovers, proving that uncertain eco- called for 16.8 million new vehicle sales. ple who are ready to buy for a number of reasons. nomic times are not making consumers shy away to be that the industry is going These projections are beginning to rival those “There is a lot of pent-up demand out there,” from the pricier buys. to run out of cars. Sales are of 2010, when the nation was climbing out of the he said. “We kind of looked at it from a couple of Zeigler and other dealership executives plan substantially higher than what Great Recession and only 11.6 million cars and different fronts. One is there really hasn’t been to adjust their inventories accordingly. manufacturers thought and trucks were sold for the year. much to spend money on in the last couple “We normally do 50-50 new and used, so we Originally, IHS Markit expected only about months. Everyone’s credit card bills seem like might pivot and do 40 percent new and 60 per- they’re trying to gear back up a 12-percent dip in global sales, but the uncer- they’re at record lows. … People have money cent used,” Zeigler said. “The used cars are out and it will take them a while tainties that the pandemic has introduced into right now and they seem to be spending it.” there. It’s on the new side where things will be to catch up. We’ve been out for the industry are now raising the threat of a more As well, many consumers also saw an influx tight through probably the end of August.” about 45 days trying to buy profound effect. of extra cash. cars. Our inventory has about Mike Wall, director of automotive analysis for “A lot of people got a raise on unemployment Forced to adapt IHS Markit in Grand Rapids, touched on a few when you think about it like that, and then they 1,500 less than what we would caveats to the numbers, suggesting the total for got a stimulus check from the government for Evolving — and quickly — was a must for dealer- normally have in stock.” U.S. auto sales in 2020 would likely shake out at $1,200 and there was no tax on that,” Zeigler said. ships during the last few months. This didn’t just around 13 million units. “I think many people are flush with cash. We also mean stocking more hand sanitizer in the show- — AARON ZEIGLER “You might say (13 million) is still far off from sell a lot of business vehicles, too, and many busi- rooms or implementing proper social distancing President of Zeigler Automotive Group 16.8 million, but bear in mind that a good two mil- nesses made out pretty well with the PPP pro- practices. Dealerships also had to hone their tech- lion units of that will probably be associated with the gram, so they have cash.” nology to bring every aspect of the car-buying expe- sheer decline and falloff of daily rentals,” Wall said. The company rode that May momentum into rience online. The state shut down all auto sales on He said that companies are already done what Zeigler called a strong June, but he certainly March 24 and on April 9, they were able to reopen “I still don’t believe that all the customers will with their rental buys for the year as that sector is monitoring some inevitable issues the indus- by conducting much of the sales process online. want to transact with us (entirely online), but has taken a major hit given the low volumes of try is facing. That meant developing these digital tools and at this stage, my best estimate would be about travel during the pandemic. To that end, rental “The biggest challenge is going to be that capabilities, or at the very least refining existing 50-50,” she said. giant Hertz declared bankruptcy in May, citing the industry is going to run out of cars,” he said. ones. While Fox Motors may not have recorded a ban- “We already had it where you can buy a car 100 ner month like Zeigler, Maher also noticed a much percent through our website,” Zeigler said, not- more subtle hit to demand than one might expect ing the company’s operations in other states have during such an unprecedented economic event. allowed virtual sales for years. “Very few people In April, Fox Motors achieved about 65 per- do that even though the technology is available. cent of its sales goal, but recovered in May, when But 100 percent of customers do go online and the company reached about 80 percent of its maybe do 80 percent of the experience online.” sales mark. June was trending to see Fox Motors Diane Maher, president and COO of Grand hit its sales expectations. Rapids-based Fox Motors, said that her compa- “There was a couple month bump and it ny’s digital capabilities also were fairly advanced appears that demand and people’s desire to buy before the pandemic and subsequent shutdown. vehicles is strong,” Maher said. “They don’t seem For a number of years, Fox Motors has touted its to be scared off by this — it’s encouraging.” “Buy Your Way” initiative, which allows custom- Incentives have also made it one of the best ers to tailor their car-buying experience with the times to buy a car in recent history, with long loan option of doing it almost all online. terms and 0 percent interest. However, the pandemic served as a catalyst Still, Maher is bracing for supply issues that for further developing the technology to make the industry is likely to face in the months ahead. Fox Motors more effective. “Used (vehicles are) definitely robust at the Touchless service is one such solution that moment — our new to used ratios are climbing,” the dealership introduced during the pandemic, she said. “We currently have a decent supply of where clients can drop off their vehicle and keys new cars. We have a little bit of a fear that around for service without interacting with anyone the August timeframe we could get light in cer- directly. Dealership representatives communi- tain brands. We’ve been talking to manufacturers cate with clients via text and email. and they are feverishly trying to up their produc- Fox Motors President and COO Diane Maher said the company bolstered its online offerings “Our technology vendors (Cox Automotive) tion and get more vehicles out there. I don’t think during the pandemic, although she expects about a 50-50 split among customers who want to have stepped it up like 10,000 times and have anyone anticipated that demand would be this complete transactions virtually once the industry gets back to normal. MIBIZ FILE PHOTO: KATY BATDORFF gotten a lot of things through the development high right now.”

4 JUNE 22, 2020 / MiBiz Visit www.mibiz.com Visit www.mibiz.com MiBiz / JUNE 22, 2020 5 FOCUS: AUTOMOTIVE INDUSTRY FORECAST Automotive suppliers welcome break from most 2020 auto shows

By JAYSON BUSSA | MiBiz [email protected]

uto manufacturers, dealers and OEMs will catch a break from the busy auto show circuit this year after the COVID-19 pandemic essen- A tially wiped out the ability to hold Because of the COVID-19 pandemic, most auto shows have been canceled for the year. The next North American International Auto Show in Detroit crowded events. is scheduled to take place from June 11-26, 2021. MIBIZ FILE PHOTO This will either be a welcome reprieve or a missed opportunity for these companies, The Consumers Electronics Show (CES) also doing a very good job at tailoring their messag- “We don’t traditionally look at the auto show depending on their marketing strategies. went on as planned in Las Vegas in January, fea- ing via Facebook or live feed — pick your poi- as a critical customer touch point,” said Jeff “I certainly do understand the thinking turing 160 automotive technology companies son, but they’re going virtual and going through Dolbee, CFO at ADAC Automotive, a Tier 1 sup- around, ‘We have another auto show to do and and also 10 automakers, including the likes of social media channels to get those new vehicle plier specializing in door handles and vehicle there is the new so-and-so model — OK, big Ford, GM, Nissan, Honda and BMW. launches out there, and this was before the pan- access solutions. deal,’” said Mike Wall, director of automotive That show stressed the latest innovations in demic,” Wall said. “This was already happening. “There are meetings that take place, probably analysis at IHS Markit in Grand Rapids. “Believe tech. For instance, GM showed off its integration We were seeing automakers pulling out of select as much out of convenience because you have me, the industry is still driven by a model cycle, of Amazon’s Alexa Auto voice-controlled virtual auto shows over the years. That’s one of the rea- the right folks in the same place at the right time. for sure. As new models are coming out, you have assistant in a new Cadillac CT5. sons we saw Detroit shift to June, and it wasn’t all But we don’t use the auto show in any way to new technology and you want to get that out to Detroit either — it was all the auto shows, even leverage our showing of new technology to cus- the masses. You want to get that story out.” Auto show obsolete? the international ones, wrestling with this.” tomers and things like that.” Those stories were not told at the North Wall added: “Automakers have finite resources At the same time, Dolbee admitted that los- American International Auto Show in Detroit, These auto shows are going dark at the same time and they want to get the most bang for their buck. ing all these high-profile auto shows around the which was slated for its first summer installment more and more automakers are scrutinizing their If you’re going into an auto show and you’ve got country could certainly result in a blow to con- this year. The June 9-20 series of events were can- value. Many of these companies are facing the 25 other automakers and you’re all shoulder sumer excitement. celed, falling in line with a long list of counter- dilemma of whether to invest in these shows — to shoulder vying for the eyeballs of either the “From my own anecdotal perspective, I think parts around the world, including the New York many of which are slowly dropping in popularity media on certain days or the public on other that there is some loss of consumer excitement,” International Auto Show, Geneva International — or to harness their own digital tools to reach days, you begin to wonder if it’s all worth it.” he said. “For a consumer, especially if you’re in the Motor Show and Auto China (Beijing). out directly to consumers via off-site and off- market for a car, you get to go to one spot and most The next NAIAS is planned for June 11-26 of cycle unveilings. Not a critical touch point of the cars that you’re going to be considering are next year. Crain’s Detroit Business reported prior to going to be sitting there somewhere on that show- In fact, the Chicago Auto Show was the last 2019’s NAIAS that Mercedes, BMW and Audi Like many suppliers, ADAC Automotive in Grand room floor where you can walk back and forth. big show to take place in the United States in were all pulling out of the show to reassess their Rapids routinely sends a team to NAIAS, but “My view is there’s got to be some level of loss early February with nearly 1,000 vehicles at auto show footprint. executives never saw it as a crucial means for as a result of that, but people don’t drive from all McCormick Place. “What we’ve seen is automakers have been connecting with potential customers. over the country to come to Detroit.” Tier 1 supplier Gentex is taking a similar approach as ADAC Automotive. The Zeeland-based company manufactures automatic-dimming rearview mirrors, cam- era-based driver assistance systems and the HomeLink Wireless Control System. Insead of exhibiting at shows like NAIAS, it’s moved directly to customer sites. However, with today’s health crisis, even those more intimate exhibitions have been put on hold. In response, Gentex has worked to beef up its digital tools to provide the same in-depth look at its products for potential clients. “My team has been busy developing new digi- tal sales tools that our sales teams can use online with customers,” said Craig Piersma, director of marketing at Gentex. “We’re creating new videos, websites, e-brochures and other online materials that can be reviewed by customers remotely or during virtual meetings.” However, Piersma admitted that, regardless of how advanced these digital tools might be, it doesn’t quite trump the in-person experience. “We’ll take vehicles and display properties and set them up on site with our automaker customers so they can view and test drive new technologies,” Piersma said. “The face-to-face, hands-on interaction is far more effective than virtual meetings.”

MiBiz Editor Joe Boomgaard contributed to this report.

6 JUNE 22, 2020 / MiBiz Visit www.mibiz.com “It takes 3,000 parts to Automotive supply chain adapts to make a Ford F-150 and if one of those parts is not month-by-month scenario planning available, they don’t make the vehicle. I think the By JESSICA YOUNG | MiBiz month after Gov. Gretchen Whitmer green- Mexico after the country’s government delayed biggest issue that might [email protected] lit a phased restart of the industry. However, its own plan to restart factories. some employees who came back to work were “Our Tier 1 customers are in Mexico and be under-recognized utomotive manufacturers are back infected with the virus, and shortly after opera- they were saying they were coming back to right now is the impact up and running after months of tions resumed, factories were closed again tem- work on May 18, then they said the government production shutdowns following porarily for cleaning. A Ford pickup truck fac- said they can’t, and then they said ‘Yep, the gov- of the entire supply widespread outbreaks of COVID-19. tory in Dearborn, which employs about 4,000 ernment says we can.’ Well, what’s the right chain coming back up A The gradual restart of the indus- people, has already been closed twice in the answer?” said Greene of Cascade Die Casting. try’s supply chain began sluggishly because past few weeks because of COVID-19 cases. “We’ve been doing all of this work getting ready after being down for this of lowered capacity, parts shortages, on-and- At least 25 people employed by Detroit auto- and they didn’t even know what to do — and period of time and any off work stoppages caused by lingering cases makers have died from the virus this year, there’s a lot of part supplies that come out of of the coronavirus and many uncertainties according to the United Auto Workers. Mexico.” interruptions there.” ahead. However, automotive manufacturers More inevitable disruptions at the OEMs Most, if not all, Mexico manufacturing loca- are sprinting to replenish inventory and push will ripple through the tiers of the complex tions came back online by June 1. on with operations. automotive supply chain, and vice versa. Greene plans to be operating at greater — PAT GREENE After a “hard shutdown” in March, Grand “It takes 3,000 parts to make a Ford F-150 than 90 percent historic volume levels in July, President of Cascade Die Casting Group Inc. Rapids-based Tier 2 automotive supplier and if one of those parts is not available, they when automakers will forgo their usual sum- Cascade Die Casting Group Inc. has jumped don’t make the vehicle,” Greene said. “I think mer break. However, Greene is cautiously plan- from operating at about 40 percent capacity the biggest issue that might be under-recog- ning and preparing for three different produc- at the beginning of June nized right now is the impact of the entire sup- tion scenarios. replenishment of inventory that decreased dur- to about 75 percent by the ply chain coming back up after being down “We have a worst-case plan, middle of the ing April and most of May, but the challenge for end of month, according for this period of time and any interruptions road and a best-case plan,” he said, noting that automakers is predicting the future beyond the to company President Pat there.” the pessimistic plan would result from a second next several months. Greene. Normally, about 80 wave of the coronavirus. “All suppliers in our position are having a percent of Cascade’s busi- Attempting to plan “You’ve got to be prepared for all three of difficult time concluding on what the future ness is tied to the automo- them because we don’t want to bring people back will hold after inventories are replenished,” tive sector. Planning for many different post-shutdown and then lay them off again, but we’ve got to have Greene said. “Then, we are faced with the big “It has been a slower scenarios seems to be how most of the auto- that best-case plan in our pocket and be ready to question: Will customers buy cars, trucks and restart than we expected,” motive supply chain is functioning at the produce,” Greene said. “It’s unprecedented that appliances? We expect that inventory will be Greene Greene told MiBiz. moment, according to Jeff Schuster, president we’re literally taking it month by month.” replenished by November or December, and However, the automo- of Americas operation and global vehicle fore- The primary driver of the jump in pro- then the customer demand will dictate whether tive sales forecast jumped casting at LMC Automotive US Inc. duction over the past couple of weeks is we have a slowdown.” substantially in just the past “The only way you can really look at all of few days. this is through scenario planning,” Schuster “Our world has changed told MiBiz. “It just illustrates the uncertainty remarkably in the last that you know that the market faces.” two weeks,” Greene said. Last month’s restart actually played out “We are busy and I did not “as well as was expected and maybe a little bit expect that two weeks ago.” better than it could have gone,” he said. “It was Schuster A large concentration of slow with some starts and stops and some gen- Cascade Die Casting’s auto- eral disruptions from not only reported positive motive business is tied to pickup trucks, which (COVID-19) cases, but I suspect there were oth- Greene expects to stay at “pre-COVID volumes ers as well, but they generally got the lines back from now until the end of the year.” up and running fairly quickly.” The company began phasing back into oper- Manufacturers wanted to get production ation at the end of April in anticipation of the running as quickly as possible, especially in reopening of Ford Motor Co., General Motors light of fears of a reported shortage of light-duty Co. and Fiat Chrysler Automobiles US, which pickup trucks. Some manufacturers had “lofty temporarily discontinued vehicle manufactur- stretch goals” to get back to pre-coronavirus ing in late March. levels by sometime this month, which Schuster “You don’t just flip on the lights and go back said is “an unrealistic target.” to work,” Greene said. “In our business, you’ve However, automakers are continuing to add got to start with the furnaces and make sure shifts and move forward, which is positive for they’re clean and operating well, and then you the industry. better really focus on the equipment that has “There are ways to get some of the volume Welcome Back, been sitting idle and make sure that that is all back without stressing the new system and the capable of running again and that it’s not going new environment we’re in,” he said. “By the end to be shutting you down as soon as you try to of the year, we could see volumes that could be start operating.” stronger than what we saw a year ago in a given West Michigan! However, the biggest challenge for man- month — which is some indication of what was ufacturers has been adhering to new safety happening in the previous year — but it’s not The entire NAI Wisinski of West Michigan team is excited to welcome guidelines and ensuring that the people return- going to be a substantial increase or output back the recently re-opened businesses. Although there is still plenty ing to work can remain safe from the deadly change.” virus, according to Greene. Unfortunately, it will be nearly impossible of uncertainty in our community and beyond, our team remains Cascade Die Casting is practicing new for auto suppliers to plan for any more stops optimistic, committed and focused on doing our part to serve you and social distancing norms, employees are wear- and starts related to positive cases of the virus answer any questions you may have. ing protective masks, lunchrooms and com- within workplaces or even a “second wave” out- munal spaces are closed and everyone’s tem- break, Schuster said. perature is checked each morning, Greene said. “That’s where you shift from a forecast and We look forward to assisting you with your unique commercial real The company also has hired regular cleaning planning to situation management,” he said. estate needs. crews to come through the workstations three “So far, the starts and stops at Ford haven’t times each day, and trained machine operators really been that disruptive from an output to thoroughly clean equipment before chang- standpoint, but I think you have to look at these WisinskiWisinski ofof ing shifts. cases as a viable situation given what we know Kalamazoo Office “It’s been a lot of work to get ready for get- so far about the virus and how it spreads, but WWestest MMichiganichi269gan 353 0311 ting back into production and our (operation) I don’t know that you can actually plan for it.” CommercialCommeercial RealReal EstateEstate Services,Services, W Worldwide.orldldwid de. is simple compared to a 5,000-employee auto- Grand Rapids Office Kalamazoo Office motive assembly plant,” Greene said. Be prepared 616 776 0100 269 353 0311 Indeed, OEMs have faced a bumpy road. In Michigan, the automakers started to For several weeks, uncertainty surrounded naiwwm.com return to production on one or two shifts last portions of the supply chain that are tied up in

Visit www.mibiz.com MiBiz / JUNE 22, 2020 7 TECHNOLOGY

VARSITY NEWS NETWORK Continued from page 1 working life — I was chasing gold stars. I was try- ing to be all I could be and make a big impact and all that stuff.” Vaughn and Matt Anderson launched VNN in 2010, initially as a blog. The co-founders developed the idea for what eventually became a marketing and communications engine for high school sports programs via Momentum, an accelerator program and predecessor of Start Garden. As the duo continued to develop more com- plex and effective ways to help high school sports programs operate, Vaughn became the face of the company, successfully convincing groups such as Grand Angels, Start Garden (now Wakestream Ventures), Northern Michigan Angels, Muskegon Angels, Capital Community Angel Investors and the Michigan Angel Fund to invest in the model. “I was with Ryan from day one and one of his first investors,” Kevin McCurren, the commer- cialization program director at Gateway Grand VNN Inc. offers a platform for high school athletic departments to post content and share information. COURTESY PHOTO Rapids for Michigan State University, said in an email to MiBiz. “I invested in VNN because of Ryan. He is a rare CEO who lasted through 10+ into due diligence for a possible acquisition of a point where he or she needs to make a tran- flourish under an executive with a different skill years of running a startup and raising over $15M VNN, which later invited Ehrman to be on its sition, either within the company or to a new set that’s perhaps more tailored to what the busi- of capital. I can think of only a few that have done board of directors. venture. ness needs at that moment, he said. it successfully.” For his part, Ehrman acknowledged Vaughn’s In part, that’s because the company demands “As you might expect, the employees might As Vaughn’s passion ebbed, it exacerbated charisma and ability to create ideas from the different skills from its leaders as it matures and actually welcome the change as they likely see internal struggles at VNN, culminating with the ground up and raise money, but he came to the evolves. the next level skills the business needs that the company deciding to bring on Rick Ehrman as company with a strong focus on using M&A to “It is the rare individual that has the skills and founder might not possess,” Kerschen said. the company’s new CEO in July 2019. grow VNN. knowledge to identify an idea or market need, to As an investor in VNN, McCurren certainly Ehrman had exited Minneapolis-based “We miss him for sure,” Ehrman said of launch a business and convey a passion to early views Vaughn “as a success, not as a failed CEO.” SportsEngine, which offers similar services Vaughn, who remains a shareholder in VNN. “I employees and investors (all good founder skills) He knows from firsthand experience that a com- and products as VNN, only for youth sports. still bounce ideas off him as advisory.” and then also have the skills to manage a grow- pany has different demands on a founder. Over SportsEngine had recently been purchased by Despite losing the high-profile face of the ing base of employees, investors, vendors, dis- his career, McCurren launched and grew a $15 NBC Sports Group. company, Ehrman believes he was able to win tribution partners, etc. once the business starts million startup, but learned his skill set was in The addition of Ehrman meant Vaughn would over early investors from the Vaughn era of VNN to grow to scale,” said John Kerschen, managing starting companies, not operating them. have to step back from the central role at the with plans that were heavy on metrics. director of Charter Capital Partners, a Grand “Eventually, we all know that we have the company. Vaughn said his position with VNN “I think that was a breath of fresh air to the Rapids-based investment banking firm and man- potential to be replaced,” McCurren said, add- changed rapidly. institutional investors,” Ehrman said. “I laid out ager of various venture capital funds. ing that Vaughn made the right call in stepping “It was clear pretty quickly that it wasn’t going a really succinct plan on what we were going to “The skills of a founder and visionary are down as CEO of VNN. “Though painful, he real- to be a fit long term,” he said. “My interests had do — a 30-, 60- and 90-day plan — and thank- often quite different from those of a CEO leader,” ized that he could not continue to serve VNN and changed and passions changed. At some point, fully all those things happened, which is imme- Kerschen said in an email to MiBiz. “Those its capital needs. The key decision is what is best Rick decided that he wanted to move on (without diate credibility.” changing requirements might also contribute for the company, not you as CEO.” me). From my perspective, that was disappoint- to the loss of passion from a founder.” ing because it was sort of surreal to get let go from Leadership needs evolve Kerschen noted a founder transition is part Forging ahead your own company.” of “a natural evolution of a growing, successful Ehrman stepped into the top executive role Venture capital executives and other people business” and not a negative reflection on either As a company, VNN faces plenty of challenges in armed with a familiarity with VNN. His previous involved in the startup community in West the company or the leader. As well, the change the months ahead, notwithstanding the question company, SportsEngine, at one point entered Michigan say it’s common for a founder to reach can be good for a company, which can often of whether or not high school sports in Michigan and throughout the rest of the country will return to action this fall in the middle of the COVID-19 pandemic. However, Ehrman said the company started to plan for this scenario back in March, when the pandemic was starting to take hold, even devel- oping plans that assumed the situation might become worse. Despite the uncertainty, Ehrman said that VNN is still holding strong with its two-pronged revenue stream of selling advertising in the local markets in which it operates and selling software to high schools. “The advertising side has been a bit softer than we would like, but this time of year it is any- way,” Ehrman said. “I’ve been trying to evolve the business to get my sales team to (focus on sell- ing) software to high schools. We have acquired more clients in the last 60 days than they had all last year.” Part of that has to do with athletic directors that are limited in what they can do right now and therefore are readily accessible. Ehrman pointed to features like digital ticketing, online fundraising and seamless mass communication as key selling points during a time of chaos like this. “Athletic directors are still working — they have more time now than they ever have,” Ehrman said. “They don’t have any events or stu- WEST MICHIGAN’S LEADING COMMERCIAL ROOFING AND SHEET METAL CONTRACTOR dent athletes right now. We’ve held webinars in A SUBSIDIARY OF EAST MUSKEGON ROOFING AND SHEET METAL • EASTMUSKEGON.COM • 231.744.2461 the last 60 days that have had about 1,000 people show up where we used to get like 30.”

8 JUNE 22, 2020 / MiBiz Visit www.mibiz.com HEALTH BIZ

reporter’s NOTEBOOK Mark Sanchez writes about finance, health biz and life sciences. 616-608-6170 • [email protected]

COVID-19 raises questions for health insurance rates

he premium credits Priority Health Looking ahead to 2021, Blue Cross Blue and Blue Cross Blue Shield of Shield has proposed small increases for Michigan are providing small small group policies: a statewide average T employers this summer stem from of 0.9 percent for its PPO plans, and 1.9 per- lower medical claims after the onset of the cent for HMOs. COVID-19 pandemic. Priority Health recently filed a request That’s because many people put off get- with state regulators for a statewide ting medical care during the public health 2.56-percent average rate increase in 2021 crisis and hospitals were unable to perform for the small group market. non-elective procedures, surgeries and For larger groups whose premiums are diagnostic tests. set based on their claims experience, Priority For both health insurers, opting to pro- Health intends to make actuarial adjust- VNN Inc. co-founder Ryan Vaughn became the face of the company as it grew and scaled over vide premium credits to employers was a ments for premium credits later this year, the last decade. COURTESY PHOTO preferred response to a one-time event, and then “set rates (for 2021) based on what rather than to temporarily lower their rates we think the future costs are going to be,” and then raise them back up again at a later Osbourne said. Ehrman also had his team change its now that it was often an ego-driven endeavor date. “The goal is always about looking at what approach to selling, which helped VNN pick for a 25-year-old entrepreneur. “It prevents those unreasonable rate the future cost is going to be and we use the up a quick 150 new customers. “I wanted to build something because it swings, and that’s really the goal: … just try history to help us make those decisions, but “Our traditional model was sort of a bottom- would help me have the career I wanted and to keep the market stable. We don’t want when we do see large, temporary things that up (model), where we had sales people driving it would be something cool and people would to have rates going up pop up – and COVID is a great example – it’s around in their cars meeting with individual look at me and say, ‘Oh, that’s awesome,’” and down dramatically appropriate for us to make an adjustment to athletic directors and high schools,” he said. Vaughn said. “That was so important to me over temporary fluc- kind of smooth things out for them.” “We’re having much more success selling top- early in my career — that I was perceived a tuations,” said Chase At Blue Cross Blue Shield, “we’ll sort of down. We’re selling at the conference level, the certain way.” Osbourne, chief under- make a one-time adjustment” with a “combi- district level and in some cases the state level.” At VNN, Ehrman is understanding and writer at Grand Rapids- nation of usual trends” to set rates for large As well, Ehrman looks to remain active on respectful of Vaughn’s journey, while also push- based Priority Health. group policy renewals, Roy said. the M&A front, even after VNN completed two ing forward with a plan he feels is best for the “Our goal is to get the “What we’re not going to do is, ‘Oh, we’re recent acquisitions, including a deal for Provo, company. funds sort of handed scared because there’s uncertainty so we’re Utah-based RallyAroundUs “I do think it’s probably tough Osbourne back faster via pre- going to load up the rates,’” Roy said. “We’re LLC, an online fundraising plat- “It’s kind when it’s part of your identity mium credits to our going to be pricing fairly aggressively.” form. A couple of additional and I really think it became that small groups and our The inability to do elective procedures deals are forthcoming, as VNN of like you for him,” Ehrman said of Vaughn large groups.” and surgeries until recently generated sig- looks to add to its own business fi nally get walking away from the company. Osbourne and his nificant operating losses at hospitals. and rely less on partnerships. “I do think he’s realized since Blue Cross Blue Shield Roy expects that some hospitals may “We’re looking at several enough then that people don’t think of of Michigan counter- seek to alter reimbursement agreements acquisitions — we have two in the gold stars him as Ryan Vaughn the founder part, Kirk Roy, spoke and raise charges for medical care and what pipeline right now,” Ehrman said. of VNN — it’s Ryan Vaughn, the during a recent webinar health insurers pay. Blue Cross Blue Shield “This is a very fragmented indus- and then serial entrepreneur.” hosted by Advantage will push back at those requests. try that is ripe for consolidation. you realize As McCurren sees it, the Benefits Group Inc. “Our contracts don’t allow for that,” he (By my resume) I probably look you don’t transition for Vaughn and VNN Roy in Grand Rapids. said. “I think there will be some negotiations, less like an operator and more like came down to a matter of rais- As a result of the some pushback on that, but on behalf of our an M&A guy. There will be some care about ing capital to continue to grow lower medical claims trend during the pan- customers, we plan to hold firm with that, M&A transactions that are note- gold stars the company. demic, Priority Health is providing a 15-per- and anything that we would do would feel worthy in the coming weeks.” “Once you start taking out- cent credit for June and July premium bills like a one-time credit of relief (for care pro- anymore. side money and it gets beyond 50 for small businesses with two to 50 employ- viders), rather than build future unit prices ‘Needs to be done’ Most of my percent, you relinquish full con- ees, and for individual policyholders enrolled that would disadvantage us as a business or trol of the company. Ryan tapped in the MyPriority health plan. all of our customers.” Meanwhile, Vaughn is using his VNN career — all of the capital resources that Large group and fully funded employers One uncertainty for health insurers with “sabbatical” to explore his next and frankly he could access,” McCurren will receive a premium credit in the fourth physician offices reopening and hospitals steps as he shifts his professional my working said, noting that Ehrman “has quarter, once Priority Health determines the resuming elective procedures and surgeries focus to pursuits that “make a the potential to bring in new amount of excess revenue available in the is whether they’ll soon see higher medical difference” and are “useful.” life — I was money.” health plans beyond the normal margin and claims from pent-up demand, and what hap- He said he has no timeline chasing gold Moreover, the company’s administrative costs. Large group employ- pens after any immediate spike. or formal plan for his next pro- focus shifted considerably from ers are rated on their claims experience, “so Blue Cross Blue Shield experienced a fessional pursuits, but did men- stars.” its formative days, he added. we’re going to continue to evaluate really “steep dropoff” in claims for March that tion that he started a meditation “When VNN first started, we what that total cost looks like,” Osbourne started “sort of bottoming out” in mid-April group for business founders that — RYAN VAUGHN saw it as a technology company, said. before coming back up in May, Roy said. quickly grew; he now runs about but as it evolved we realized it is “We want to make sure we are giving Some hospitals reported June was off to a Founder of VNN Inc. six of them. a media company,” McCurren credit where credit is due, so the plan right strong start, and others even said their inpa- “I don’t know if that’s a busi- said. “Media companies require now is to roll things out starting in the fourth tient units were full, he said. ness — I don’t necessarily need much more capital to scale ver- quarter with renewals and just kind of take it “So, this question around how much of it to be a business,” Vaughn said. sus technology companies.” one month at a time. We want to make sure this deferred care is just a rush for people “It’s just work that needs to be done.” For Vaughn, there remains a sense of pride we give that credit back to groups due to to get stuff in before the second wave, but In some respects, he’s come full circle and in his accomplishment with VNN, yet a won- the displacement of cost and care in 2020,” then they’ll still be fearful of going for routine is back to blogging, sometimes about leader- der for what would have happened if he had he said. care — that’s the big unanswered question ship, entrepreneurism and meditation, and in not had to seek out that nearly $21 million in Blue Cross Blue Shield this summer is right now,” Roy said. “Do we pop back up in other cases about current events like the strug- investor capital. giving fully insured employers in the small the summer while things are good and then gle for the Black Lives Matter movement and “It’s impressive but also not impressive group market who have 50 or fewer employ- does that pent-up demand keep going or confronting inherent racial bias. because I certainly wish we could have ees a 30-percent premium credit in July. does it stay down?” He’s also taking time to reflect on his experi- raised less money and gone further,” he ence with starting and leading VNN, realizing said.

Visit www.mibiz.com MiBiz / JUNE 22, 2020 9 ECONOMIC DEVELOPMENT ‘A LITTLE LIGHT’ Landmark LGBTQ ruling sets stage for statewide civil rights action, debate over religious exemptions

By ANDY BALASKOVITZ | MiBiz “Given everything that’s going on, I think Stephens passed away “It might not be as sexy that you shouldn’t rent a [email protected] our community as a whole needed a win at this last month after compli- house to a homosexual. time,” said Thomas Pierce, executive director of cations from kidney fail- as marriage equality, I’m not aware of one,” he landmark U.S. Supreme Court ruling the Grand Rapids Pride Center. “A lot of peo- ure. Kaplan said he and but it’s probably one said. “I’m also not aware on June 15 bars workplace discrimi- ple have been feeling really down and a lot of Stephens spoke about the of any religious institution nation based on sexual orientation pressure from different aspects of life — health, case “many times.” of the most signifi cant that says you shouldn’t and gender identity, and also high- jobs, finances and the political climate. This gave “She played an incred- Supreme Court provide baked goods based A lights additional work that needs to people a little light when I think they needed it ible role in telling her decisions on behalf of on sexual orientation. I be done in Michigan. the most.” story to the world, shar- don’t believe freedom of Advocates in the LGBTQ and business com- Jay Kaplan, staff attorney for the American ing her private life story LGBT rights.” religion means I assert it munity say that work includes expanding the Civil Liberties Union’s LGBT Project, said it’s as a way to illustrate the to do whatever I want.” state’s civil rights law to prevent discrimination difficult to understate the significance of the harm done to transgen- In a statement after in housing, health care and public accommo- Supreme Court’s ruling given its conservative der people and to help — JAY KAPLAN the Supreme Court ruling, dations, but also settling what’s been a major makeup. others,” Kaplan said. Staff Attorney for the American Civil Attorney General Dana debate over religious exemptions in such cases. “It might not be as sexy as marriage equal- “Her one wish was that Liberties Union’s LGBT Project Nessel called the ruling Democratic lawmakers in recent years have ity, but it’s probably one of the most significant she lived long enough to a “major victory for civil tried and failed at legislative expansions of Supreme Court decisions on behalf of LGBT read the opinion. She’d rights,” but added, “this the Elliott-Larsen Civil Rights Act of 1976. The rights,” Kaplan said. be so pleased, happy and is not the end of the story. Republican-controlled House and Senate have The case also had Michigan origins. Aimee gratified at what this means particularly for the It is just the beginning of the progress yet to be declined to advance legislation despite broad Stephens, a transgender woman from Southeast transgender community.” made on the important issue of equal protection. support from the public and businesses. Michigan, sued her employer after she was fired The Supreme Court’s decision, although ground- Following the Supreme Court’s latest ruling, in 2013 during her transition. Stephens’ case Religious exemptions breaking, is relatively narrow.” which some advocates say is arguably as signifi- was combined with two others in Georgia and Pierce at the Pride Center agrees: “We are still cant as its ruling on marriage equality, organizers New York, and was decided on a 6-3 ruling that A year ago, Gov. Gretchen Whitmer joined seeing a lot of barriers and discriminatory prac- behind a ballot initiative to amend Elliott-Larsen found sexual discrimination and gender iden- Democratic lawmakers in supporting legisla- tices in the way of housing.” were analyzing their next steps. The Michigan Court tity falls under the definition of sex in the Civil tion to expand Elliott-Larsen to include protec- “This was a win, I think we use this and keep of Claims earlier this month granted the campaign Rights Act of 1964. In the majority’s opinion, tions for the LGBTQ community. At the time, pushing forward,” he said. “When big things hap- more than two additional months to gather signa- Justice Neil Gorsuch — appointed by President the Republican leaders of the state House and pen like this, we take that and settle a bit, but tures in the hopes of making the 2022 ballot. Trump — wrote that “it is impossible to discrimi- Senate said they wouldn’t advance the bill unless now is not really the time to do that. November Despite looming questions over LGBTQ nate against a person for being homosexual or it included religious exemptions, basically allow- 2020 is going to be a very big year in our country, equality in Michigan, the June 15 ruling came at transgender without discriminating against that ing entities to refuse service to others if it con- especially for the LGBTQ+ community.” a trying time for the country. individual based on sex.” flicts with their religious beliefs. Kaplan said the defense has been used over the past decade and is similar to those cited to sup- Business support port segregation in the 1960s based on religious Although expanding Elliott-Larsen has stalled beliefs. Kaplan said the Michigan and U.S. con- for years in Michigan, support has been growing stitutions clearly protect religious beliefs when it among the state’s business community. A coalition deals with exercising their own faith. Citing recent that included DTE Energy, Consumers Energy examples, Kaplan said baking cookies or planning and Dow Chemical Co. was an early backer of the weddings aren’t religious practices. Fair and Equal Michigan campaign, which is col- To include these types of activities, Kaplan lecting signatures to put the question of expanding said, amounts to “using religion to discriminate.” the state’s civil rights law before voters. “It was never the intent of the constitution to Business advocates say in addition to equality, use religion as a sword to harm other people,” the issue is about making Michigan competitive. Kaplan said. Referring to the religious arguments “We want it to be addressed federally but made in defense of segregation, he added: “The also here because we want Michigan to have courts didn’t buy that then, and they shouldn’t the most talented and highly diverse workforce an organization that helps business clients leverage its buy that now.” in the country,” said Andy Johnston, vice presi- experience, reputation, negotiating power, and market State Rep. David LaGrand, D-Grand Rapids, dent of government and corporate affairs with knowledge in the buy/sell of real estate and business called the religious exemption issue a “legitimate the Grand Rapids Area Chamber of Commerce. topic of discussion, but it’s also true that we con- “Over the past decade and a half, there’s just been opportunities strain people’s asserted expression of religion in a continual growing chorus that this isn’t just the many contexts.” smart thing to do, it’s the right thing to do for the has acquired a new website: LaGrand is an ordained minister in the “theo- whole state.” logically conservative” Christian Reformed While more than 30 municipalities have thriveacquisition.com Church, “which means I take religious exemp- non-discrimination ordinances that include tions and concerns very seriously.” LGBTQ protections locally, LaGrand said: “That’s The undersigned served as exclusive web development adviser “My first instinct is: Show me an organized great, but it would be nice if the state got its act religious group that has officially taken a position together.” to Thrive Acquisition.

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SEPTEMBER 3, 2013 with reprints VOL. 25 • NO. 23 SERVING WESTERN MICHIGAN BUSINESS SINCE 1988

Faith-basedFaith-based philanthropyphil drives local affiliate ofof NationalNational ChristianChri Foundation

By JANE C. SIMONS | MiBiz to the Association of Faith Churches and The NCF West Michigan affiliate has [email protected]@mibiz.com Ministers International, a Minnesota- an 18-member board which includes Jerry based international ministry that plans Jonker, chairman of the board and a part- hilanthropichilanthropic familiesfamilies throughoutthroughout to use the money to support an orphan- ner in Grand Rapids-based Home Acres WWesternestern and Northern Michigan age in Thailand that provides housing and Supply Co.; Wendell Christoff, co-owner If your company has been featured are puttinputtingg their faith into action sschoolingchooling for children rescued from the of LiLitehousetehouse InInc.c., a salad dressindressing,g, sauce P witwithh ttheirheir moneymoney.. sex trade. aandnd ddipip manumanufacturerfacturer witwithh operaoperationstions AAndnd tthey’rehey’re turning to a llocalocal aaffili-ffili- TThathat grant was recommenrecommendedded bbyy givgiv-- iinn LoweLowell;ll; anandd James DaDally,lly, a KKalamazooalamazoo ate of the National Christian Foundation eersrs in MiMidlanddland tthroughhrough ttheirheir GrounGroundsds fforor busbusinessman.inessman. ((NCF)NCF) to help them.them. a Better World Giving fund. The group is DDallyally said the ability to have direct LLocally,ocally, 350 families served by the sservederved by the NCF’s Eastern Michigan iinvolvementnvolvement in whwhereere hihiss dodonationsnations are oorganization’srganization’s West MichiganMichigan officeoffice con-con- offofficeice llocatedocated in BirminBirmingham.gham. ggoingoing anandd tthehe asset-asset-basedbased ggivingiving approach ttributedributed $36 million to individual “Givin“Givingg “We are a well-kept secret,” Kuiper said. aarere appeaappealingling to hhimim anandd hhisis ffamily.amily. FEBRUARY 17, 2014 FFunds”unds” at NCF anandd recommenrecommendedded more “A big part of it is our businessbusiness model. Our However, his faith in God is whwhatat really VOL. 26 • NO. 9 in MiBiz, the exposure you received tthanhan $$3131 million in ggrantsrants in 2012 to chari-chari- localocal operatinoperatingg budbudgetget is about $$360,000.360,000. led him to the ororganization.ganization. He said he was ttiesies of their choicechoice,, said WWee don’t spend much on marketinmarketing.”g.” rreferredeferredSERVING to NCF bby WESTERNy successful MICHIGAN ffriendsriends who BUSINESS SINCE 1988 Jamie KuiKuiper,per, presidentpresident ThThee llocalocal aaffiliateffiliate hhadad totatotall rrevenueevenue ooff wwereere also involved in faith-based ggiving.iving. ooff NCF’sNCF’s West MichiganMichigan mmoreore than $$499,000499,000 and expenses of about “Biblicall“Biblically,y, it’s ververyy clear ththatat ‘he that oofficeffice hheadquarteredeadquartered in $$384,000384,000 in 2011,Keystone accordinaccordingg to reliesthe most onrrefreshesefres producthes otothershers wiwill lldevelopment bbee repreplenished,’”lenished,’” business to drive contracts GGrandrand RapiRapids.ds. rrecentecent IRIRSS Form 990 avaiavailable.lable. DDallyally said. “I’ve applied those biblical “Th“That’sat’s a llotot ooff Donors to NNCFCF are attracted to the principles to what I do.do.”” money,” Kuiper said. mmissionission and Byministrministry NICK MANESy of the | MiBiz ororganiza-ganiza- What DallDallyy does is manamanagege severseveralal “Our office is the third ttionion foundedfounded [email protected] 1982. TThehe tthreehree CChristianhristian West Michigan-based businesses. He is the reached more than 35,000 busi- llargestargest NCF oofficeffice in ffinancialinancial experts wwhoho llaidaid tthehe groungroundworkdwork ffounderounder anandd owner ooff BiBiddergy.comddergy.com, an ‘We’ve made A West Michigan medical device development ththee country measuremeasuredd fforor the NCF wereand manufacturinglooking for a way company to “si“sim- ism consolidating- oonlinenline consignment to anandd bbusinessusiness lliquida-iquida- KuiperKuiper bbyy ffundund bbalance.”alance.” plplifyify tthehe processKalamazoo ooff giving, and expanding mumultiplyltipl yits tthe hoperations,e ttionion auction while wewebsite;bsite; Adventure Learning KKuiperuiper declined to rresultsesults and glorifystill planning the Lord.” to leave a footprint in GrandCCentersenters Rapids., which operates child care cencentersters iidentifydentify any of the 350 familiesfamilies.. “W“Wee wwentent oonn toOshtemo inintroducetroduce Township-based oonene ooff tthehe firfirst Keystonest iinn SolutionsPortage, Caledonia and KentwKentwood;ood; and some bad beer’ Group invested about $500,000 into a new “We have some majormajor donors, but I ChChristian-focusedristian-focuse24,000-square-footd ddonor-advisedonor-advise facilityd ffunds, unwithds, a cleanMaMavcon vroomcon InInc.in c., a construction anandd ddevelop-evelop- ccan’tan’t tell you who they are,” he said. “They whwhatat we nowKalamazoo cacallll tthehe Givingwhere it FunFund,” will dmove,” saisaid alld ofmment itsent product company. AAllll tthreehree bbusinessesusinesses are Quick decisions, making messes and staying humble want to remain anonymous, anandd we prpro-o- LLarryarry BurBurkett,kett,development a bbest-sellingest-se andlling manufacturing autauthorhor anandd operations. bbasedased at oofficesffices in tthehe KaKalamazoo/Portagelamazoo/Portage vvideide a mechanism for anonymous giving.”giving.” eentrepreneur,ntrepreneur, whoWith is one the of new NCF’s building founders. up andarea. running, Keystone plans to consolidate all of its manu- ness executives in West Michigan. drive explosive growth for Founders Brewing Co. Mike Stevens, presidentNCF’s ofdonor-advised Founders Brewing Giving Co. Funds offer ““WeWe also develodevelopedped a sspecialpecial exexpertisepertise in TThehe resources and exexpertisepertise as well as PHOTO: JEFF HAGE facturing to the site and move out of a facility families an “easy-to-establish, low-cost, aasset-basedsset-based giving,near the which Gerald is R. the Ford tax International smart tthehe Airport character in and integrity of the individ-individ- flflexible”exible” vevehiclehicle fforor ccharitableharitable ggivingiving tthat’shat’s wwayay to ddonateonateGrand non-casnon-cash Rapids.h assets sucsuchh as reareall uualsals invoinvolvedlved withwith NCF is wwhathat Dally said aann aalternativelternative to estaestablishingblishing a private ffoun-oun- estate aandnd busbusinessinessHaving ininterests.”te tworests.” separate manufacturingkkeepseeps facilities hhimim invoinvolved.lved. made it difficult to show customers Keystone’s full The local affiliate was originally Founder Burkett said over the past three By NATHAN PECK | MiBiz “The ‘uber’ beer geeks took notice. They shouted about us, ddation,ation, accordingaccording to the ororganization.ganization. The localset ofaffiliate capabilities, was said ori Robertginall Nesky,y Keystone’sFounder Burkett said over the past three [email protected] and that allowed us to move in a positive direction. The attention DDonors’onors’ efforts have helped to make foufoundednded in 22000director000 as of tthe saleshe West and product MichiMichigan development.gan ddecades,ecades , NCF has become the nation’snation’s put us in the limelight and made us the darlings of the industry,” tthehe AAtlanta-basedtlanta-based National ChristianChristian CChristianhristian FoundatioFoundation“Our intentionn, but jjoinedwasoined always forces to have llargestthearg businessest provider of donor-advisdonor-adviseded funds ike Stevens, president of Founders Brewing Co., can Stevens explained. “The beer geeks are the reason this beautiful underneath one roof, but it has taken a while to actu- MADE IN laugh now about some of the poor choices the Grand little disaster we call the craft beer industry exists.” 2014 OUTSTANDINGFounFoundationd ationGROWTH tthe AWARDhe 19t19thh largestlargest philanthropicphilanthropic wwithith tthehe NCF bbecauseecause ooff tthehe resources anandd ffocusedocused primariprimarilyly on CChristianhristian ggivers.ivers. ally put that together,” said Nesky, noting that the MICHIGAN Rapids-based craft brewer made over the years. Yet, by the mid-1990s, the company was also butting up oorganizationrganization in thethe UnitedUnited States, accord-accord- expertise it provided. “Any“Any charitcharityy that doesn’t violaviolatete our consolidation plan had been in the works for some Now you can share the news about He even cops to perhaps the worst sin of all for against a series of constraints: a small production space, a lease ing to a 2012 article in The Chronicle of “The reason for the affiliation with NCF statementstatement of faith is eligible to seek fund-fund- Affordable, common-sense websites. time. “It’s a good thing we waited because our busi- Keystone Solutions Groups a craft brewery. on a space that was too small for the growing business, and an M “We’ve made some bad beer,” Stevens said with organizational structure that had Engbers and Stevens handling FOUNDERSPhilanthropy BREWINGy. InCO. late July, officials with the wwasas that the toolsness hasthethey actuallyy are able expanded. to offer We ggiv-iv now- haveiingng afrom larger us,” Kuiperprovides said. product “Our develop- donors a laugh. too much of the day-to-day operations. NCF announced that thetheyy had reached a eersrs are much facilitymore thansosophisticated,”p histicated,”the two older facilities KuiKuiperper combined.” aarere ppeopleeo ple who sharement servicesour worldviewworldv and iewcontract as it manufacturing at a new It’s not the sentiment that one would expect to come from mmilestoneilestone in their ggivingiving historhistoryy when sasaid.id. “W“Wee wwereere oonenThee oof Grandf tthehe firfirst Rapidsst ttwow olocation oorr tthreehree stemmed rrelateselates from to a material possessionspossessions and what the brewer of one of the world’s top-rated stouts, but it was the Q Grand Rapids-based craft brewer founded in 1997 by previous acquisition. 24,000-square-foot, ISO Make messes Mike Stevens and Dave Engbers company’s willingness to try new ideas and fail that marked the ththeyey grantegrantedd theirtheir fourfour bbillionthillionth ddollarollar affaffiliates.iliates. Now ttherehere are 28.28.”” GGodod hhasas calledcalled us to ddo.”o.” Q Originally located in the Brass Works Building on North While Keystone operates in a variety of sec- 13485-certified facility with point at which Founders Brewing Co. transitioned from a small- To address those concerns, the late businessman Peter Cook, a Monroe Avenue; moved to 235 Grandville Avenue in 2007 tors ranging from automotive and aerospace to a clean room in Kalamazoo. scale, also-ran to an internationally renowned brewer of some mentor to Stevens, pressed the company to formalize its rela- Q Sold 111,000 barrelsCOPYRIGHTCOPYRI of beerGHT in 2013 © MIBIZ. Print subscriptions are free to qualifiedq lified individuals whorenewable are employed energy, in WestWest theand Southwestmajority Michigan.of its business For furtherfurther informationThe aboutafirm,bout MiBiz,which visit was www.mibiz.com. founded of the boldest beers on the market. tionship with its board. Cook pushed them to focus on the Q Volume grew 63% comes from serving West Michigan’s burgeoning in 1997 and had revenues of In the mid-1990s, Founders Brewing was in trouble. In its core of their business and leave other concerns to their grow- Q Off-premise sales were up 46% medical device industry. small production and taproom space on Monroe Avenue just ing staff. around $5 million last year, Q On-premise distribution rose 58% The company, which employs around 10 engi- consolidated its manufacturing under one roof with the new facility, but still plans to maintain a your company by ordering MiBiz blocks from downtown Grand Rapids, co-founders Dave Engbers “He wasn’t into discussing finances — he didn’t really under- Q The Association for Corporate Growth West Michigan will and Mike Stevens realized that going with what the stand what we were doing,” Stevens said. “We present its 2014 Outstanding Growth Award to Founders neers, had around $5 million in sales last year, but presence in the Grand Rapids area, where it is a member of MiDevice, a consortium of medical industry demanded at the time was not leading “It feels like were undercapitalized, he told us. ‘Don’t worry Brewing Co. on March 18. The event runs from 5:30-8 p.m. has grown about 30 percent over the past five years, device manufacturers. Keystone offers clients a full range of product design, contract manu- them to success. Tossing out the accepted play- about the mess you’re creating, that’s what inves- at the Amway Grand Plaza in Grand Rapids. Visit acgwmich. Nesky said. facturing and logistics services. It mainly serves the medical device, automotive, aerospace and book, the duo instead opted to make the beers they we’ve been tors are for.’ When you have drive, when you org for more information. While the business is currently about evenly renewable energy sectors. were seeking: big, bold and unlike other offerings building the have a product that is selling, don’t look back — split between product development and con- currently on the market. let others clean up your mess.” tract manufacturing, executives want to put more 200,000 As part of that shift, Founders’ taproom became plane while The effect was two-fold: Engbers and Stevens 190,000 emphasis on the manufacturing side as part of the 180,000 2014 proj. a testing ground where the company released its fl ying it.” had to formalize their roles within the organiza- FBC BARRELS consolidation. process, and then distribute it, according to pre- company was founded in 1997, Keystone still sees new and experimental brews. Some flopped. A tion, and the company began to bring in experts 160,000 Operating in an ISO 13485-certified facility, vious MiBiz reports. significant value in the Grand Rapids market. For few grabbed drinkers’ attentions. Today, a handful to handle areas where there were deficiencies. PRODUCED — MIKE STEVENS 140,000 Keystone plans to grow the product development of those beers are among Founders’ most popu- Whereas the two frequently touched all aspects “There are several companies on the west that reason, the company plans to open an office Founders Brewing Co. side of its business, which should translate into lar brands: Dirty Bastard, Breakfast Stout (and its of their business, they were forced to step back. 120,000 112,000 and east coasts that compete with them because primarily focused on sales at a to-be-determined reprints. additional opportunities in contract manufactur- amped-up, barrel-aged brother, Kentucky Breakfast Their board had always included investors, but 100,000 that’s where the big medical technology companies downtown location in the first or second quarter ing, Nesky said. are based,” Hank Brown, former CEO of Tangent of this year, Nesky said. Stout) and Double Trouble. But back then, they were they now had a group with expertise that could 80,000 70,886 only experiments written in chalk on the daily specials board. help guide them forward. “(Product development), more and more, feeds Medical Technologies in Ann Arbor, said in a pre- The reasoning behind keeping a presence “We tried making a lager when we shouldn’t have. We’ve done “It held me accountable to shareholders and the people who 60,000 40,937 into our contract manufacturing, specifically when it vious MiBiz report on the company. “Keystone is a in Grand Rapids, Nesky said, is primarily due to some things with spices that didn’t turn out well,” Stevens said. have a stake in the business,” Stevens said. “It made me better. 40,000 24,501 comes to medical devices,” Nesky said. “By expand- 11,898 17,330 unique brand in the Michigan market.” Keystone having a number of customers in the area. “But if we didn’t do that, we wouldn’t have made KBS.” Dave and I had to be better.” 20,000 6,127 ing our facility and having us underneath one roof, Tangent worked with Keystone to develop a The company is also involved in organizations such In pockets across the U.S., on blogs and message boards, But the transition was at times difficult. 0 we’re not jockeying around to two different facilities. new kind of catheter called NovaCath. as MiDevice, a consortium of two dozen medical Founders’ beers began attracting the attention of a growing num- “Personally, I’ve had more roles here than anyone. When 2007 2008 2009 2010 2011 2012 2013 2014* It really helps show (our customers) what our infra- Keystone executives make it clear that the device-sector firms led by The Right Place Inc. ber of craft beer aficionados. As the company’s beers started win- we started, there was just three of us. We all helped … brewing, structure is, and it paints a much better picture for firm is not an OEM, but is instead focused on both “Keystone is a great company with terrific leader- ning awards, the American drinker began turning away from the SOURCE: FOUNDERS BREWING CO. them that as they develop their products, Keystone design and manufacturing. The products they make ship and we congratulate them on the planned down- pale, fizzy domestics in favor of bolder craft brews. See FOUNDERS BREWING on page 12 could also be the contract manufacturer of some of do not contain the Keystone brand, but rather the town office,” said Eric Icard, a business development those products. It has had an immediate impact on names of its clients, who also entrust the company manager at The Right Place who leads the MiDevice our business and our pipeline.” to handle the logistics of distributing the products consortium. Both Nesky and Keystone founder and Many of Keystone’s clients value that they can directly to hospitals and other medical facilities. President Jim Medsker “have been strong advocates work with a single company to develop a prod- While the company is moving the vast major- for medical device manufacturing in West Michigan For more info, call MiBiz today: uct, manage the manufacturing and production ity of its business to the Kalamazoo area where the and are extremely active in MiDevice.” COPYRIGHT 2014 © MIBIZ. Print subscriptions are free to qualifi ed individuals who are employed in West and Southwest Michigan. For further information about MiBiz, visit www.mibiz.com. 616-608-6170

10 JUNE 22, 2020 / MiBiz Visit www.mibiz.com Visit www.mibiz.com MiBiz / JUNE 22, 2020 11 SMALL BIZ

Kildee, Upton push $50.5B federal aid package for small businesses

By MARK SANCHEZ | MiBiz The RELIEF for Main and Kildee hope to get the RELIEF for Main Sobieralski said. He specifically cites situations [email protected] Street Act is “intended to Street Act inserted into that legislation. in which new small business owners were pre- add one more tool in the “That’s when we have our hand up,” Upton paring to open when the pandemic hit. Because wo Michigan congressmen behind toolbox that we need to deal said, calling the legislation “an important foot they lacked a tax return for the prior year, they legislation that would create a with the financial impact in the door to try and recover from this terrible could not qualify for a PPP loan, Sobieralski $50.5 billion relief fund for small from the coronavirus pan- crisis that’s impacting maybe our state worse said. businesses nationwide hope to get demic,” said U.S. Rep. Dan than many others.” “There are perhaps dozens of cases like that T it included in the next federal aid Kildee, D-Flint, the legisla- “We need to be prepared, and part of get- in each specific community,” he said. “It could package that may come before Congress this tion’s main sponsor. ting our economy moving again is everybody be a highly effective program for the square summer. Kildee “There is no one silver needs to get moving again, and this is a special peg in the round hole. There are folks out there The proposed RELIEF for Main Street Act bullet that is going to solve lifeline, I would call it, to our small businesses, that didn’t fit the mold for what the PPP was would allocate funding to aid companies with the many problems we face particularly in some of our urban settings,” designed for. 20 or fewer full-time equivalent employees, or as the result of this. This is Upton said. “This would provide the funds for “It’s very scary times for businesses that are no more than 50 employees for businesses in a health crisis that is at the small businesses with fewer than 20 employees, in those situations.” a low-income and same time an economic particularly minority-owned businesses and rural community. crisis, but what we need low-income and rural communities — folks Filling a need SMALL BIZ The bipartisan leg- to be able to do is scale who are the most vulnerable.” NEWS islation would use and tailor the response to Kildee concedes that getting the legisla- In a recent survey by the Small Business Sponsored by: the well-established the crisis itself to the real tion attached to the new federal aid package Association of Michigan, nearly one in seven SMALL BUSINESS federal Community Upton needs that are out there,” is “going to take some heavy lifting.” Kildee, respondents out of a sample of 600 said they ASSOCIATION Development Block Kildee said during a recent Upton and other backers are working to build were unsure they would survive the pandemic. OF MICHIGAN Grant formula to webinar hosted by the Michigan Municipal further bipartisan support for the bill. distribute funds League. “This is a bill that when you talk to your “It could be a highly to communities that have already launched Kildee and co-sponsor U.S. Rep. Fred Upton, member of Congress, partisan ideology doesn’t or would create a local relief fund to assist R-St. Joseph, touted the legislation during even come up. This is about helping small busi- effective program for the small businesses affected by the COVID-19 the MML webinar and urged local leaders to nesses, helping Main Street, helping commu- square peg in the round pandemic. advocate for the bill’s passage. Other sponsors nities large and small through something that Proponents of the proposal want to provide include Reps. Brian Fitzpatrick, R-Pa., and nobody planned for, that nobody could have hole. There are folks out aid to small businesses that have been unable Dwight Evans, R-Pa. Companion legislation in predicted,” Kildee said. “The cost of it, while there that didn’t fi t the to access or did not meet guidelines for the the U.S. Senate has been introduced and spon- it’s not insignificant, is nothing compared to U.S. Small Business Administration’s Paycheck sored by Sens. Cory Booker, D-N.J., and Steve the cost of us not intervening, because when mold for what the PPP was Protection Program that nationwide has pro- Daines, R-Mont. we lose those businesses, we lose the employ- designed for. It’s very scary vided forgivable loans to more than 4.5 mil- Talks in Washington, D.C. continue about ment and we lose the fabric of a downtown, a times for businesses that lion small businesses for $511 billion. The SBA a possible new federal aid package that could small town, a Main Street, and that’s really hard still has more than $100 billion in PPP money come up for consideration in July and include to replace.” are in those situations.” to lend. assistance to cities and states, Upton said. He Speeding recovery — JOE SOBIERALSKI The RELIEF for Main Street Act has the back- CEO of Battle Creek Unlimited ing of 95 mayors across Michigan who in May signed a letter of support. They include Kalamazoo Mayor David Anderson, Battle Sobieralski expects the economic effects on Creek Mayor Mark Behnke, Muskegon Mayor small businesses from the pandemic will last Stephen Gawron and Lansing Mayor Andy well into 2021. He believes that some form of Schor. aid for small employers needs to continue at In their letter to Congressional leadership, least through next spring, especially if the sec- the mayors noted that the COVID-19 pandemic ond wave of the pandemic hits later this year. “is wreaking havoc on small businesses across If bars, restaurants and event venues are cities, suburban municipalities and rural only allowed to operate at 50-percent capacity towns, particularly micro businesses that for months, or if a second wave of the COVID-19 employ fewer than 20 employees and offer ser- pandemic hits in the fall, “it’s going to be hard,” vices vital for our communities — restaurants, Sobieralski said. bars, coffee shops, barbershops, hair salons, “When are we going to understand what auto repair shops, family farms, dry cleaners our new normal is going to look like?” he said. and many others.” “I’m thinking programs like this are going to Local relief funds created in communi- be needed to get folks to about March 2021 or ties around the state “are massively oversub- June 2021.” scribed,” and federal funding for them “builds Among the latest relief efforts, the Michigan on what is already working,” the mayors wrote. Economic Development Corp. last week “This will enable more small businesses to awarded nearly $1 million to 22 communities survive this economic crisis, ensuring that the statewide to assist 229 small businesses located recovery will be quicker and more evenly dis- in downtowns, neighborhood business dis- tributed across cities, suburbs and rural areas tricts and commercial areas. and regions of the country,” according to the The MEDC’s Match on Main program letter. “It will also enable our communities to awarded up to $50,000 to communities. evolve products and strategies that are more West Michigan recipients include Paw Paw aligned with the reopening of the economy, and Zeeland, which received $50,000 apiece. particularly around the revival of Main Streets The City of Zeeland used the funds to assist You didn't go into and other key business districts.” 10 small businesses, and Paw Paw aided 12 A number of grants or loan funds have companies. business to be an expert sprung up this spring in communities around Kent County also created a new business in life and disability coverage. the state. Among them were initiatives in Battle relief fund this month using $25 million from Creek, Grand Rapids, Muskegon, Grand Haven, the $114.6 million it received through the Holland, Lansing and Kalamazoo. federal CARES Act. The Grand Rapids Area Emergency grant and loan funds in Battle Chamber of Commerce will manage the Kent But we did. Creek awarded nearly $1.6 million to local County Small Business Recovery Program small businesses and nonprofit organiza- that’s intended for small businesses that Learn more at sbam.org/dearborn tions, said Battle Creek Unlimited CEO Joe started before Feb. 28 and have up to 25 full- Sobieralski. The BCU grant fund was backed time employees. with $250,000 in initial support from the W.K. Approved June 11 by county commission- Kellogg Foundation and $350,000 from the ers, the program will offer grants of $5,000 to Consumers Energy Foundation. $20,000 to small businesses, depending on their Federal legislation that leverages existing size, operating costs, and how well they score funds is “an excellent idea, and it’s necessary,” against a set of metrics.

12 JUNE 22, 2020 / MiBiz Visit www.mibiz.com SMALL BIZ: COPING WITH COVID-19

Wise Men Distillery successfully creates hand sanitizer business amid pandemic

By KATE CARLSON | MiBiz and create new jobs. We were near future. [email protected] able to hire people during this With the Wise Men Distillery pandemic to come in, fill bot- tasting room in Kentwood KENTWOOD — The coronavi- tles and create work for people reopened, the partners’ focus is rus pandemic has caused many who needed it and keep our reg- shifting back to producing spirits. businesses to make staff cuts, but ular employees on.” As well, construction of a 24-seat Wise Men Distillery LLC hired Wise Men Distillery also ended off-site tasting room in McKay Family Anvil Tattoo owner Marc “Crab” Reagan leases two new employees to assist with up producing 30,000 gallons of Tower in downtown Grand space in a strip mall in Caledonia for his shop. COURTESY PHOTO its shift to producing large quan- hand sanitizer for the state of Rapids is poised to resume in the tities of hand sanitizer for manu- Michigan, which was distributed near future after delays stemming facturers and state agencies. to medical centers, the National from the pandemic and, more The distillery and tast- Guard and hospitals throughout recently, a May 30 uprising that Family Anvil Tattoo ing room opened last year at the state. The distillery has also resulted in smashed windows 4717 Broadmoor Ave. SE in Wise Men Distillery created donated close to 10,000 gallons and damage to about 100 down- ‘crazy busy’ as Kentwood, and produces gin, a separate division, Wise of sanitizer to local fire, police town businesses. rum, vodka, whiskey and bour- Men Sanitizer, after receiving departments and municipalities “Fairly shortly, we should get shutdown fi nally ends bon. Out of necessity, the com- FDA approval for its product. around the state, Post said. construction crews in there,” pany had to consider other COURTESY PHOTO The distillery created a sep- Post said. opportunities to generate busi- arate Wise Men Sanitizer divi- Even though there is a By JAYSON BUSSA | MiBiz ness when it was only able to sell and help fill the high demand sion once its hand sanitizer 50-percent capacity restriction [email protected] bottled spirits from its tasting for the product. The company’s product received FDA approval. in place for restaurants and room after the state-mandated efforts kicked into gear when Customers will continue to be bars, Wise Men Distillery will CALEDONIA — Mark “Crab” Reagan spent his morning wan- shutdown of dine-in services at leaders of the local Amazon able to walk in and buy the sani- likely benefit from downtown dering around his tattoo shop cleaning, organizing, provid- restaurants and bars, which ran distribution center reached out tizer at the distillery’s Kentwood social zones that will extend ing a handful of clients with art consultations — pretty much from March 16-June 8. to distillery staff to ask if they location. outdoor seating for establish- anything other than actually tattooing. “We couldn’t have people could produce sanitizer for its “We are really fortunate we ments, he said. The downtown That was his life for three months. come in and try our stuff any- facility and employees. are small enough and we were tasting room, which also will “You’re still paying rent in the shop — your landlord more,” said Jason Post, a co- The shift to sanitizer produc- able to turn on a dime and start sell the company’s bottled spir- still has to pay his bills,” said Reagan, who owns and oper- owner and head distiller at Wise tion also was made possible in producing sanitizer,” Post said. its, should have more opportu- ates Family Anvil Tattoo in Caledonia. “But you can’t make Men Distillery. “We had bottles part by a postponed spirits The company hired two full- nities for walk-in business com- money. I’ve never been told that I can’t make money. It’s been available for sale, but that was order that left the company with time employees to help meet pared to its flagship location. very, very stressful.” diminishing rapidly — our bot- a sizable inventory and freed up the demand, Post said, adding “There’s not many liquor Reagan is a 30-year veteran of the industry, owning shops tle sales were going down.” its stills, according to Post. that family members also vol- stores downtown but there in both Battle Creek and Kalamazoo from 1996 to 2009. He Wise Men’s staff sat down “We have ended up selling unteered to fill large orders. are more and more people liv- had 11 people working for him before selling off those shops to talk about producing hand (Amazon) close to 5,000 gallons While those large orders ing and working down there,” and retreating to the more rural area of Delton, where he sanitizer after seeing other dis- of hand sanitizer between them have now slowed, Post expects Post said. “We’re out here in went into business for himself. tilleries starting to shift produc- and another partner,” Post said. hand sanitizer will be a require- Kentwood and don’t have a lot About two and a half years ago, Reagan made the move tion in an attempt to stay open “It helped us set up a new line ment at most workplaces in the of foot traffic.” to Caledonia, leasing out space at 9864 Cherry Valley Ave. SE in a strip mall he shares with businesses including Boondox Motorsports and a PFCU branch location. He said that locating his shops off the beaten path has Muskegon gym switches to helped with overhead, contending with rent that is much more manageable. online, outdoor group fi tness “I’ve seen people closing shops,” Reagan said. “A lot of shops, the rent is high because they’re in a high-traffic area classes during shutdown and they have five or six guys working. When you have all that business stop, and you have a seven or eight thousand dollar rent payment, three months of that, it buries you. It’s By KATE CARLSON | MiBiz hard to plan for.” [email protected] Reagan’s business was classified in the same industry seg- ment as hair salons, spas and other non-essential personal MUSKEGON — The coronavirus pandemic has pushed the owner care businesses that were out of commission the longest. He of the Waters Edge Fitness gym to get creative by offering online Muskegon-based Waters Edge Fitness has shifted to holding vir- was able to resume tattooing clients on June 15 and filled up resources for members over the past several months that the facil- tual classes or outdoor sessions, including on Pere Marquette his appointment sheet to make the most of it. ity has been shut down. Beach. COURTESY PHOTO “We have been crazy busy. People have been contact- Waters Edge Fitness’ physical location at 2465 Lakeshore Dr. ing me the second they found out when we could reopen,” in Muskegon has been closed since March 16 in accordance with Last week, Evans also was able to hold her first outdoor fitness Reagan said. “All of the appointments that I had (scheduled Gov. Gretchen Whitmer’s executive orders to limit certain in-person class since the shutdown. during the shutdown), people are rebooking those. And, businesses to stop the spread of COVID-19. Despite the temporary “It was so nice to see the smiles on people’s faces and the laugh- some new people are booking.” closure of the space, co-owner Marrisa Evans has worked along- ter,” Evans said. “It was hot but it was a lot of fun.” To pass the time and stay financially afloat, Reagan had side gym instructors to engage members throughout quarantine Between 20-25 people came to the outdoor drum beats class, spent the previous three months honing his craft in other with online classes. Evans said. Waters Edge has held other outdoor high intensity work- ways, providing artwork for clients and even designing some “I was offering free Zoom sessions for people just because I knew outs outside its location and on the beach at Pere Marquette Park, business logos. others were struggling financially as well,” Evans said. “Some people located just down the street. Still, the shutdown has proven devastating, putting a have been able to support by donating a membership or two, or Stations for the group workout were spaced six feet apart, with pinch on his financial life at home. buying classes ahead of time.” other safety measures in place like not sharing equipment for circuit “This has been shattering everyone’s life, especially for Even though the gym was not pulling in revenue the past few workouts and providing hand sanitizer, Evans said. tattoo artists,” he said. “We don’t have a retirement plan, we months, Evans and her husband own the building, so they were not Evans is pleased that so many people have taken advantage don’t have a 401(k), we don’t get unemployment normally. We losing much money except to pay for utilities and electric bills at of online classes during the shutdown, but she misses witnessing do now. It’s the first time we’ve been able to get unemploy- the space. Evans said she contacted every member when the gym friendships forming in the gym and group fitness classes. ment, because we’re a cash business. It’s been very stressful.” shut down, and some people chose to keep automatically renewing “They’re missing that social interaction,” Evans said. “We see While he remains skittish at talk of a potential second or extending their memberships despite the closure. friendships and bonds and we’re not able to do that right now, which wave of COVID-19, Reagan said he is confident in his busi- Another solution for Waters Edge included providing private is a concern of mine for people’s mental health.” ness as long as he has an opportunity to operate without online workout classes to members during the closure. The online Evans is guessing gyms will be able to reopen in early July. Waters interruption. tools also have given people a way to more easily try out a range of Edge will follow CDC guidelines and people will be able to work out “When operating at full capacity, I make a good living classes the gym offers, Evans said, noting that she expects to con- in masks if they choose to, she said. because I charge a good rate for what I do,” he said. “I’ve been tinue offering them when the gym is able to reopen. “We’re really looking forward to sweating with people in person tattooing for 30 years. You’re not just paying for a generic ser- “Going virtual has really opened some doors for me as far as again,” Evans said. “We’re looking forward in general to people feel- vice — you’re paying for me specifically. I have a market that marketing and reaching out to members,” Evans said. “It’s been ing good about themselves and making their health a priority in follows me — they come specifically for me and they have for fun, and a good learning experience overall.” more ways than one, especially with COVID-19.” 25 to 30 years. I still tattoo a lot of the same people.”

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14 JUNE 22, 2020 / MiBiz Visit www.mibiz.com REAL ESTATE & DEVELOPMENT

The process typically takes SOCIAL ZONES about 24 hours for a business to get Continued from page 1 approval. The Grand Haven City Council approved a resolution that Many cities across West Michigan requires the approval from McGinnis, are working with businesses to tempo- the police chief and the public works rarily close some downtown streets to department for requests related to create social zones, a move that allows social zones. for more outdoor seating at restau- The city streamlined the applica- rants and bars that are grappling with tion process to one page where a busi- reopening under 50-percent capacity ness has to show proof of insurance, constraints. promise to keep the space clean and Social zones also make it easier follow CDC guidelines like wearing for those businesses to extend their masks and social distancing. Fees have operations into other types of pub- been removed for businesses to apply lic spaces, including parks, parking for the additional outdoor space. spaces and sidewalks. “The city has been very accom- The social zones are intended to modating,” JW’s owner Weavers said. give the businesses a way to increase “They approved my outdoor seating the number of permit within hours, and I applied patrons they can to the Michigan Liquor Control serve under the Commission to get my alcohol permit new capacity (for outdoor dining), and in less than restrictions and a week’s turnaround, I had approval requirements that for both.” tables be spaced The city blocked off portions of Washington Avenue in downtown Grand Haven to allow bars and restaurants to use six feet apart to Helping recovery the space for additional seating. MIBIZ PHOTO: MARK SANCHEZ guard against the spread of As this report went to press, down- Marketing Director Abigail de Roo. “These social zones are encroach- Miller Eager to act COVID-19. town Grand Rapids’ first social zone So far, the Mainstreet Beanery cof- ing into public space, and that pub- Traverse City was set to take shape along Monroe In Grand Haven, the two major fee shop has been approved for addi- lic space could be streets, sidewalks, was among the Center St. NW between Pearl Street street closures so far include parts tional seating on the sidewalk, along parks and city-owned parking lots,” first to close down and Ionia Avenue. of Washington Avenue downtown, with Don’s Flowers & Gifts. Zeeland Miller said. “Any of those things are streets to make “What we’re doing is providing including in front of Odd Side Ales. has implemented a similar stream- open to potential expansion into room for more one of the few things we can actu- The city also blocked street parking lined structure as neighboring munici- them. But it’s not an individual doing outdoor dining ally provide, which is more space in a in front of JW’s and Stanz Cafe. palities, with no fees for businesses to it, it’s an organization.” space when bars time period when people need more “We think people can come here apply for expanded operations. DGRI has taken the initiative to and restaurants in space because of the restrictions,” and eat dinner and have cocktails in a The Zeeland City Council on June work closely with the city and busi- parts of Northern said Mark Miller, managing director safe way and stay outdoors and stay six 15 also authorized the temporary ness owners to apply for permits and McGinnis Michigan and the of planning and design at Downtown feet apart from others,” said McGinnis, closure of parts of Main Avenue for organize downtown into four differ- Upper Peninsula Grand Rapids Inc. the Grand Haven City Manager. “Their potential future use by downtown res- ent areas — Bridge Street, Center City, reopened for dine-in service on May Expanding seating space for res- space inside got cut in half, so their taurants and retailers. Heartside and Monroe North — where 22. taurants, bars and coffee shops has space outside tripled.” “We don’t know yet that we have there will be some sort of social zone. Now that restaurants and bars been the focus in Grand Rapids, but Thirty parking spots out of 1,400 enough businesses to take up that Other potential temporary street statewide have been able to open the social zones also are meant to have been closed in downtown Grand space in the street,” de Roo said. “I closures could include half of Ionia since June 8, communities are consid- assist retail shops in allowing sidewalk Haven to accommodate the social imagine we might grow into that plan. Avenue to still allow for one-way ering various approaches to rolling out sales, Miller said. zone program, McGinnis said. While As confidence with consumers returns, traffic, part of Bridge Street, and social zones, with some municipali- As well, gyms are included in social that’s not a huge loss, some custom- we’ll see more demands for seating.” Sheldon Street bordering the Grand zones to allow for the possi- ers might have to walk an extra block Tripelroot brewpub owner Laura Rapids Children’s Museum and The bility of conducting outdoor to their destination, he added. Gentry said closing part of Main Apartment Lounge. The museum “We think about these classes without the usual In addition to Grand Haven, Avenue would make customers feel has plans for a soft reopening that things as a very fl exible and more time-consum- lakeshore communities including safer if she were to expand seat- includes outdoor displays, Miller said. use of public space. It will ing process of applying for Holland and Zeeland also stream- ing onto the sidewalk or the parking The Heartside zone will probably permits. All a business has lined the permitting process for res- spaces in front of her business. include closing parking spaces in front probably ebb and fl ow as to do is make a call to the taurants and retailers to expand out- “We are a family-friendly place, so of the Pyramid Scheme. Co-owner the process develops. Most City of Grand Rapids Parks door seating. I don’t think parents will want to sit Tami VandenBerg previously told Department to hold events Knowing more customers will feel right out by the street with cars driving MiBiz that reopening the Pyramid importantly, we hope that like outdoor fitness or yoga comfortable eating outside, Holland past unless it’s closed off,” Gentry said. Scheme — which is closed currently our businesses will start classes. restaurant owners were eager to add Tripelroot used to have community — would not be sustainable long term “We think about these outdoor seating, said Downtown seating with long tables where people under capacity restrictions, partly to recover a little bit.” things as a very flexible use Holland Marketing Coordinator Kara from different parties would sit next to because it has no outdoor seating. of public space. It will prob- de Alvare. one another. The setting helped form DGRI has come up with an oper- — MARK MILLER ably ebb and flow as the pro- “Essentially any restaurant that the atmosphere Tripelroot is known for, ational plan for each zone, how the Managing Director of Planning and Design at cess develops,” Miller said. already had outdoor seating, we Gentry said, but the pub had to refor- areas will be cleaned and when the “Most importantly, we hope allowed them to fill out a really simple mat its space because of COVID-19. zones will be deployed, Miller said. Downtown Grand Rapids Inc. that our businesses will start form to use parking spaces in front of Since Tripelroot reopened, it has The downtown group purchased 200 to recover a little bit.” their business (for dining space),” de not yet reached 50 percent capac- tables and about 700 chairs to provide The city commission Alvare said. “We wanted to make it as ity. Even so, Gentry remains optimis- businesses with extra infrastructure so ties taking quicker action than others. passed a resolution to allow for the easy as possible.” tic outdoor seating could improve they would not have to buy it all, Miller Among West Michigan cities, formation of social zones throughout The city approved the process business. said. They are also in the process of Grand Haven was an early adopter in the city from June 1 to Nov. 30, which before sending applications to down- “That’s really exciting because it purchasing more concrete barriers to the push to create social zones, ease could end up being extended, accord- town businesses, so they basically would give restaurants a better space temporarily shut down streets. the permitting process for outdoor ing to Miller. The zones would allow could opt in by filling out the form. and better area that would be new to Some restaurants have requested seating and close streets to expand for outdoor dining and the consump- While some retail shops signed customers,” she said. more of an open seating food hall situ- dining space. The zones also can ben- tion of alcohol in designated areas if up, most were waiting to evaluate ation, Miller said, while others have a efit retailers, who face similar restric- it’s purchased from a restaurant that their business for the first few weeks ‘Iterative process’ more specific, controlled experience tions on the number of people who has a license to sell beer or wine. after reopening. However, “restaurants in mind with table service from the are allowed into their stores to ensure Some establishments have liquor were very eager” to expand dining out- The city of Grand Rapids has time customers sit down to the time proper social distancing among licenses that only allow for to-go sales side, de Alvare said. approached social zones by allowing they leave. customers. of canned beer or wine, but a person Hops at 84 East, The Curragh Irish an organization to apply for permits on “For us and for the city, this is really “We got out in front of it and got could buy a sealed container of alco- Pub and City Delicatessen are among behalf of the businesses located in des- largely an iterative process,” Miller the public hearing process done in hol and consume it in a designated restaurants that expanded seating on ignated areas. For example, Downtown said. “We’re going to close some of May to steamroll that stuff out of social zone, Miller added. sidewalks and in parking lots in front Grand Rapids Inc. applied for the zone these areas in phase one, see what the way, so now this problem is dealt “It’s all dependent on the license of their businesses. in the downtown district. Miller of happens, figure out is there demand with administratively to grant per- the restaurant or bar has with the In Zeeland, restaurants and busi- DGRI said other neighborhoods like for this, and we’ll come back and sort mission,” Grand Haven City Manager state,” Miller said. “We’re leaving a lot nesses have gradually expressed inter- Uptown and Eastown are in the pro- of do a phase two. It’s almost like a Pat McGinnis said of the process for of stuff up to business owners because est in expanding operations outside of cess of considering how to implement real-time experiment to figure out approving social zones. they know their clientele.” their four walls, said City of Zeeland social zones in their areas as well. what to do.”

Visit www.mibiz.com MiBiz / JUNE 22, 2020 15 FINANCE

Indiana credit union eyes additional TEACHERS CREDIT UNION ■ Headquarters: South Bend, Ind. ■ Offices: 57 Michigan expansion after New Buffalo deal ■ Chief executive: Paul Marsh ■ Total assets: $3.38 billion* ■ Total deposits: $2.98 billion* ■ Total loans: $2.69 billion* Grand Rapids, Kalamazoo While TCU does not have specific tar- More deals ahead? gets for Michigan, Marsh wants to double the ■ Member commercial loans: $377.1 offi ces among the credit union’s overall footprint within 10 years. TCU’s extension further into the Michigan million* Michigan ultimately could account for one-third market could occur by acquisition, buying ■ 2019 net income: $24.2 million possibilities to 40 percent of the credit union’s overall busi- branches from another financial institution, ■ Q1 2020 net income: $4.2 million ness, he said. or new office development, Marsh said. A cou- *As of March 31, 2020 By MARK SANCHEZ | MiBiz “I see it being a healthy part of our business,” ple of years ago, the credit union bought three SOURCE: NATIONAL CREDIT UNION ADMINISTRATION [email protected] Marsh said. “I see some real opportunities.” former bank branches in Indianapolis, for TCU has some heft to pursue that ambitious example. NEW BUFFALO — The largest credit union in growth goal, with 57 offices total — 54 of which “There’s no one size fits all,” he said of TCU’s credit union plans to expand, Marsh said. He Indiana looks to further expand in the Michigan are in Indiana — and nearly 301,000 members. approach to expansion. “There’s a lot of different describes TCU’s commercial lending posture as market after acquiring the parent company of At the end of the first quarter, TCU had $3.38 opportunities.” “mostly proactive,” and competing with larger New Buffalo Savings Bank. billion in total assets, an increase of more than The deal for New Buffalo Savings Bank, first regional banks. The deal gave South Bend-based Teachers 18 percent from a year earlier, according to a announced in April 2019, closed June 5. The New “You have to go out and look for business,” Credit Union three offices in Berrien County to quarterly financial report filed with the National Buffalo Savings Bank offices in New Buffalo, he said. go with a branch it opened Credit Union Administration. Total deposits as Three Oaks and Sawyer reopened the following in 2003 in Niles to serve the of March 30 were $2.86 billion, up 4.3 percent Monday as TCU branches. Credit unions keep buying Michiana market and cus- from the same period in 2019, and total loans Now that the deal has closed, New Bancorp tomers living and working stood at $2.69 billion. Inc. and New Buffalo Savings Bank will dissolve The deal for New Buffalo Savings Bank marks on either side of the state TCU recorded $4.2 million in net income for as a corporation within 120 days of the acquisi- the latest transaction in recent years in which line. the first quarter and $24.2 million for all of 2019. tion’s closing date. a credit union has bought a small community Teachers Credit Union By comparison, the New Bancorp President bank. President and CEO Paul largest credit union and CEO Richard There were 16 community bank acquisi- Marsh said his organiza- based in Michigan is Lake “I see [Michigan] being Sauerman joined TCU as tions by credit unions across the U.S. in 2019, tion was actively looking to Michigan Credit Union vice president of com- up from nine transactions in 2018, according to Marsh a healthy part of our extend its footprint and had in Grand Rapids, which at mercial lending. He’ll lead a May article on the online banking publication considered a couple of deals when the oppor- the end of the first quarter business. I see some commercial lending across Bankingdive.com. tunity arose to acquire New Bancorp Inc., New had $7.42 billion in total real opportunities.” the credit union’s foot- Michael Bell, an attorney at Royal Oak- Buffalo Savings Bank’s holding company. The assets and more than print, Marsh said. based Howard & Howard PLLC who special- deal offers a “great fit” culturally and geographi- 381,000 members, fol- The acquisition gave izes in credit union acquisitions of community cally for TCU, which aims to reach further into lowed by Dearborn-based — PAUL MARSH TCU a little geographic banks, said that although he remains busy, the the state, Marsh said. DFCU Financial Credit President and CEO of Teachers Credit diversity and additional trend seems to have eased in 2020 because of the “This is just a natural progression for us into Union with $5.14 billion in Union expertise in commer- COVID-19 pandemic. Michigan,” he said. “I see expansion farther into assets and 230,000 mem- cial lending, particularly “I have certainly seen some deals go on a Michigan.” bers, according to NCUA for U.S. Small Business short pause, but things have not stopped alto- TCU looks to grow strategically into contigu- data. East Lansing-based Administration loans gether,” Bell said. “Whenever this ends or gets ous states: Michigan, Ohio, Kentucky and maybe Michigan State University Federal Credit Union where the credit union previously “dabbled our more normalized, I absolutely expect a sharp Illinois, plus further across Indiana, Marsh said. ranks as the third-largest in Michigan with $4.49 toes,” Marsh said. The credit union at the end of uptick in activity. There will be more sellers He views TCU “as a Midwest powerhouse and we billion in total assets and 290,000 members. the first quarter had $377.1 million in total com- selling, and cash buyers will have a very strong just continue expanding our footprint.” New Buffalo Savings Bank at the end of the mercial loans to members, a 9.2-percent increase currency.” Future market entries in Michigan for TCU first quarter had $112.2 million in total assets and from a year earlier. Lately, Bell said he has “started to see a could include the Grand Rapids and Kalamazoo $90.8 million in deposits, according to a quarterly TCU also picked up a New Buffalo Savings possible uptick in activity. We will see if it areas, he said. financial report to the FDIC. Bank commercial loan office in Troy that the holds.”

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16 JUNE 22, 2020 / MiBiz Visit www.mibiz.com RECOVERY FUND every single corner of this county.” Kent County commits $25M Continued from page 1 Commissioners decided to partner with the Grand Rapids Chamber for the grant program to small business recovery because it “had a track record” in managing a Small Business Development Center, Experience grant fund, Bolter said. Earlier in the pandemic, the Grand Rapids, NAACP, Amplify GR, LINC Up, Chamber formed and ran a fund that provided about assistance grants Local First, Michigan Women Forward, the $1.4 million in assistance to 125 small businesses. Neighborhood Business Alliance, Start Garden “What we were so fortunate as a county to have, By MARK SANCHEZ | MiBiz “get them to the front of the line” in the first and Grand Rapids Opportunity for Women. the Chamber had already set up a very robust, very [email protected] week, Villarreal said. Offering compensation would help the part- detailed, very data-driven plan and program, so The online application is available at the ner organizations “do long-lasting work” toward we didn’t have to be at a disadvantage of trying to orming a relief fund to aid small Chamber’s website, grandrapids.org equity and inclusion, Ross said. do that ourselves, or some of the other groups in businesses hurting from the COVID- As Kent County commissioners on the sub- “This is a time where we could really build the community that they work with,” Bolter said. 19 pandemic was an early idea Kent committee began their work to allocate the CARES some effective organizations,” he said. “It’s a The Chamber also has the structure and staff County commissioners pursued Act funding, they reviewed loan and grant pro- hell of an opportunity for the Chamber to put its needed to provide the technical assistance and F when they began considering two grams The Right Place Inc. administered locally money where its mouth is.” administer the grant fund, according to county months ago what to do with $114.6 million in with funding from the Michigan Economic Despite his concerns, Start Garden “will officials. Immediately bringing in other organi- federal aid funding. Development Corp., as well as the Grand Rapids always make sure we are a conduit to opportu- zations to support the effort was “probably the After receiving the money in late April that Chamber’s own grant initiative that provided about nities to the community,” Ross said. number one concern” of a county board subcom- was allocated through the CARES Act that $1.4 million in assistance to 125 small businesses. mittee that reviewed how to allocate CARES Act Congress enacted in response to the pandemic, In deciding to create a much-larger relief fund funding, Bolter said. commissioners sought to move quickly to assess for small businesses, subcommittee members ‘WE HAVE TO DO BETTER’ “In this process, we really need them to par- what was needed “because we knew time was of were “recognizing that people need to work,” said Similar criticism came from Jamiel Robinson, ticipate with us and help us,” she said. “We need a the essence,” said Mandy Bolter, who chairs the Commissioner Jim Talen, the minority vice chair the CEO of Grand Rapids Area Black Businesses. group effort and we need to come together. We’re Kent County Board of Commissioners. of the Kent County Board of Commissioners who Robinson said that if the Chamber is going to excited about this because it’s an opportunity to As a subcommittee went about its work, the served on the subcommittee. get paid by the county to run the Small Business bring us all together.” Grand Rapids Area Chamber of Commerce “There are tons of people ready to go back Recovery Program, other organizations was managing its own relief fund for small busi- to work and businesses that are struggling to that support the effort should receive nesses “and providing us with some great data bring them back to work,” Talen said. “People some compensation as well. on businesses who are saying, ‘I can’t stay open need to work and if the businesses aren’t there, Robinson suggested that the Chamber for more than another month,’” Bolter said. people can’t work.” contract with the other organizations for The subcommittee held nine meetings over Grant recipients will receive technical assis- the professionals, time and expertise it four weeks and heard from more than 30 com- tance on cutting costs, connecting with other needs to review and score grant applica- munity groups, Bolter said. Using a portion of resources and projecting six-month cash flow. tions, and to promote the fund. the CARES Act funding for relief grants surfaced Business consultants will follow up with grant “If you receive $750,000 to administer as a top priority, she said. recipients after 30 days, do a 60-day “well check,” this, it seems like those dollars should go Robinson Bolter Britt That idea comes to fruition June 22 with and check in again after 90 days “to see if they might toward that,” said Robinson, who cites the the start of an online application process for need other kinds of help and support like business $100- to $125-per-hour rate the Chamber will get the $25 million Kent County Small Business model change, marketing, or other help with cash to manage the fund. Recovery Program created in partnership with flow,” said Andy Johnston, vice president of govern- “You’re looking for work to be done essentially ‘GET IT DONE’ the Grand Rapids Chamber. ment affairs for the Grand Rapids Chamber. pro bono, even though the work you’re doing isn’t The application process for the Kent County Small “$25 million is a lot of money coming to Providing the technical support follows pro bono,” he said. “If you’re putting a dollar amount Business Recovery Program opens June 22, start- small businesses and, hopefully, we can get the Kent County Small Business Recovery on what your time is worth, are you then saying to ing with small businesses that previously have not this out right away,” Kent County Administrator Program’s goal of supporting small businesses those around the table their time isn’t valuable?” received any local, state or federal assistance. The Wayman Britt said. and enabling them to survive the pandemic The COVID-19 pandemic disproportionately applications process opens further June 29 to all small Approved June 11 by Kent County commis- and the resulting economic downturn, and affected the African American community, and businesses in Kent County affected by the pandemic. sioners, the aid program will provide grants of bolster the recovery locally. with aid from the CARES Act and state efforts, “you In seeking to partner with local communities $5,000, $10,000, $15,000 or $20,000 to small “The money can only go so far,” Johnston said. did not see a lot of African American businesses be and organizations for volunteers to help with the businesses. Grant amounts will depend on an “With the expertise we have at the Chamber, we’re able to access the relief,” Robinson said. selection process, the Chamber is “reaching out applicant’s size, operating costs, and how well able to provide additional technical assistance He said his perspective “is nothing personal to organizations whose mission is to serve small they score against a set of review metrics. from our subject matter experts that we think will against the Chamber.” Other organizations feel businesses,” said Andy Johnston, vice president The grants are intended help to improve the survivability of some of these the same way, but are reluctant to speak out pub- of government affairs. Volunteers would need to for the more than 29,000 businesses. That’s what it’s really all about. If we licly, Robinson said. commit 16 to 20 hours to the process. for-profit small businesses can help support these small businesses through Robinson likens the situation to if Congress “What we’re asking of partners is just to share based in Kent County that this time, Kent County is going to be in a much had allocated to one bank all of the federal the information with constituents and if they’d were formed prior to Feb. stronger position coming out of this.” money for the Paycheck Protection Program like to be part of the review process, we’d love to 15 and have up to 25 full- and expected every other bank to market, sup- have them,” Johnston said. time-equivalent employees. Quick turnaround port and process customer loan applications The Chamber is providing “the most signifi- Recipients can use the grant without compensation. cant amount of labor and administration of the funding as working capital The technical assistance will look at a grant “Since we’re experiencing record-high unem- program. We’re basing it off of the work we did to cover pandemic-related recipient’s business model and “help determine ployment, use some of those dollars to hire peo- for the rapid relief fund and we’re rededicating Villarreal expenses such as business what can we do, what else can you do to be a sus- ple to do the work, instead of trying to rely on a significant portion of our staff administer the interruption, personal pro- tainable business and to mitigate this negative populations who have constantly been marginal- entire program,” he said. tection equipment, needed impact in the economy right now,” Villarreal said. ized, oppressed and excluded economically and Kent County Administrator Wayman Britt said facility modifications to Review committees of five members each, con- asking them to continue to give of themselves and the federal CARES Act money comes with sev- comply with COVID-19 reg- sisting of representatives from partner organiza- give of their time,” he said. “If we as a community, eral requirements and regulations. The county ulations, wages, rent, utilities, tions “that would like to be part of this process,” will as a city and as a county, continue to do the things needed a “solid partner” to make sure it complies labor and other fixed costs. recommend who should receive funding, Villarreal the way we have always done them, we’re going with the requirements to prevent any clawback of “$25 million is going to said. The Chamber will assist small businesses in to continue to get the results that we always have. the money by the federal government, Britt said. be a game-changer for us the grant application process and aims to review “Businesses need relief, so I’m definitely “We have partnered with an organization that here in Kent County,” said grant applications within five business days. excited that relief is coming from that standpoint, can get it done the way the county wants to do Talen Dante Villarreal, vice presi- “This is a very quick turnaround process. but we have to do better as institutions when it,” Britt said. “They can get it done quickly and dent of business and talent development at the We are intentional there because we know that we’re looking at equity and inclusion.” they will be able to get it done in a way that repre- Grand Rapids Chamber. businesses are, unfortunately, closing each and sents the way the county operates, how we want every day. A day or a week could be the differ- DATA-DRIVEN PLAN to make sure we are fiscally responsible, and we’re ‘Front of the line’ ence in them staying open,” he said. Kent County created the Small Business Recovery not missing anything when it comes to following The county will make the final decisions on Program using a portion of $114.6 million in fed- all protocols from the federal government.” The Grand Rapids Chamber, which is manag- grant awards. eral money received April 24 through the CARES By working through the Grand Rapids ing the grant program with Kent County, will The online application platform that Villarreal Act that Congress enacted in response to the Chamber and with partner organizations, “we initially take applications the first week only describes as “very user-friendly” will initially ask for COVID-19 pandemic. can have an even better and more robust process from small businesses that previously have applicants’ information on themselves and their County leaders say their goal through the out- of finding out where the needs are and making been unable to access or were declined any business, how they’ve been affected by COVID-19 reach to numerous organizations is to ensure the sure the minority community, the Latin American other local, state or federal COVID-19-related and state executive orders, and financial data. The grants are distributed equally to small businesses community, the African American community aid. After the first week, the Small Business application process requires at least two financial affected by the pandemic. The county had to move have an opportunity to take advantage of this Recovery Program’s application process will documents “that can help them tell their story quickly to put together the grant fund because “we opportunity,” Britt said. open June 29 for another week for all other about how they’ve been impacted,” Villarreal said. knew time was of the essence” for small business “We are in fact making sure every sector of this small businesses in Kent County, Villarreal said. “We’re not requiring a specific one, but the owners that need help, said Mandy Bolter, who community is getting the support that they need The two-phase process is intended to help more documentation that they can provide, chairs the Kent County Board of Commissioners. in a very deliberate, thoughtful way,” Britt said. small businesses that have the highest needs the stronger their story is for the reviewers,” “We just wanted to get that going as soon as “That’s ultimately how we’re going to be judged: and have not received any prior form of aid and he said. possible,” Bolter said. “We’re going to try to hit Did we or did we not get the job done?”

Visit www.mibiz.com MiBiz / JUNE 22, 2020 17 FOOD BIZ

Pandemic exacerbates concerns for migrant farm workers

By JESSICA YOUNG | MiBiz lot of workers who often come into [email protected] close contact with one another in the field. Asparagus is usually picked ozens of crops grown in from a trailer where farmworkers sit West Michigan are hand- six in a line, shoulder-to-shoulder. picked by seasonal and Blueberry farms use common weigh migrant farmworkers. stations. People who harvest apples D While those who work normally work in teams. in agriculture are considered essen- “If all of the guidelines are followed tial to critical infrastructure during the and you do social distancing, we’re COVID-19 pandemic, picking the pro- going to be producing half the amount of migrant and seasonal agricultural The farm is also required by the new deadly virus in a number of other duce that consumers are now buying in of food,” Hendricks said. workers during the pandemic. executive order to keep “isolation hous- states that started harvesting crops high numbers could come at substan- On top of dense working condi- As part of the new rules, living units ing” for people who are suspected to earlier in the year and during the early tial cost to farm workers’ own health. tions, many migrant and seasonal must have beds that are separated by have the virus but have not yet received crop harvests in Michigan. That’s according to Teresa farmworkers also live in communal at least 6 feet or more in all directions a positive result from a COVID-19 test, In April, Pero Family Farms LLC Hendricks, senior litigator and exec- spaces. Approximately 900 migrant when possible, and camp residents which could become problematic in Benton Harbor, which employs utive director of Grand Rapids-based housing sites are licensed in the are encouraged to sleep head-to-toe. during the peak harvesting season in migrant and seasonal workers in food Migrant Legal Aid. Lower Peninsula, including 4,500 liv- Whitmer also ensured priority COVID- September when the largest number processing, shut down for two weeks “I anticipate farm workers being ing units with a capacity for 25,000 19 testing for migrant workers and peo- of people are living on the farm. to sanitize for safety in light of posi- forced to work in dangerous condi- people, according to the Michigan ple in food processing facilities, and The Schweitzers had planned to build tive tests. The operation’s response tions because they don’t want to lose Department of Agricultural and the Michigan Department of Health a new building with four units this spring to the outbreak was an example of their job, they don’t want to get retali- Rural Development. and Human Services expanded test- which “would have helped,” Schweitzer a company “doing the right thing,” ated against and they can’t afford not People who live in migrant housing ing criteria to include migrant farm- said, but the project was postponed ear- Hendricks said. to work,” Hendricks told often share living, sleep- workers even if they are asymptomatic. lier in the year due to a non-COVID medi- Outside of potential deadly conse- MiBiz. ing and bathroom facili- Sparta-based Schweitzer Orchards cal emergency in the family. Now, those quences for families in Michigan and The highly contagious FOOD BIZ ties, making it almost hires 25 to 30 migrant farmworkers resources are freed up for the updates that further strain on the health care sys- coronavirus has spread impossible to follow social each year, according to operator Nick are necessary to older units. tem, virus outbreaks across farms dur- Sponsored by: rapidly around the world DAN VOS distancing guidelines, Schweitzer. Many of the farm’s sea- ing harvesting periods would further since it was first recog- sources say. In addition, sonal workers have long-lasting rela- disrupt the state’s food supply chain. CONSTRUCTION ‘They just feel unsafe’ nized late last year. Most migrant workers have his- tionships with Schweitzer, who is a Nationwide, immigrants make COMPANY reports of person-to-per- torically been vulnerable fifth-generation apple grower. However, geographic and community up close to half of all field workers in son transmission have to unsafe and contami- Taking preventive measures now isolation is already one of the many the agriculture industry, according to been among household units or in nated living conditions as well as sys- will help keep workers safe as well as reasons why migrant workers are data from immigration research and other congregate situations where the temic wage theft, labor trafficking, child keep the business running smoothly, more vulnerable to mistreatment and advocacy organization New American secondary attack rate has been esti- labor and dangers posed by pesticides. he said. Fortunately, during the apple unsafe working conditions, according Economy. To address labor challenges mated to exceed 10 percent, accord- “Based on my experience with com- harvest, each individual worker keeps to Migrant Legal Aid’s Hendricks. stemming from travel restrictions ing to the U.S. Centers for Disease pliance with regular obligations for field and cleans his own set of equipment “I’m getting calls now that are from related to the global spread of the virus, Control and Prevention. sanitation and working conditions, we and people in the field already stay people who are absolutely frightened the Department of Homeland Security Michigan’s agriculture industry already are having to do a lot just to sup- generally socially distanced, he said. out of their minds that they might introduced a temporary rule to allow employs migrant farmworkers each port those, and now you add these addi- Workers arrive at the family farm in endanger their family,” she said. “They farms to employ immigrant workers year in planting, cultivating, harvest- tional requirements and I don’t think it’s early August and stay in 13 living units have children with immunocompro- who are already in the country and ing and packaging meat and produce. going to be any better,” Hendricks said. on the property through November. mised conditions. They have elderly allow those temporary workers to stay As key vegetables and fruits come into “It’s more likely to be worse because the Schweitzer’s main concern is with the parents living with them. They have a beyond three years, which is the usual season over the next few months, way we harvest our crops and the way existing living units and some com- lot of people living in their household maximum length of stay in the country. farms will increasingly need migrant that we have our workers has just never munal spaces within them. and then they have 15 or 17 people However, without the proper safe- and seasonal workers to take on many been designed to be done in a way that “We do have one issue with part on their job that have tested positive guards in place, more workers simply labor-intensive jobs. makes it safe under COVID-19.” of our campus setup because there’s for coronavirus. They just feel unsafe, translates to more potential victims, “The first crop that brings in a lot a community bathroom,” Schweitzer unprotected and afraid to speak up.” according to experts. of workers is asparagus, which usu- Following guidelines said. “We have some units that have Hendricks added that already “I think we are going to have food ally runs between Mother’s Day and their own bathrooms within the hous- “three out of four calls” she gets are shortages,” Hendricks said. “We Father’s Day,” Hendricks said. Gov. Gretchen Whitmer issued an ing unit, but in these other ones, you about workplaces that she considers haven’t yet seen how bad an outbreak Throughout the summer and into executive order on June 1 that covered have to go to a community-based “problematic.” can be at a particular place and how fall, hand harvesting crops like blue- temporary new requirements related bathroom and shower room. So, that There are already reports of farm much certain food types are going to berries, cherries and apples takes a to the housing and working conditions could be a problem.” workers catching and spreading the be affected.”

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18 JUNE 22, 2020 / MiBiz Visit www.mibiz.com SPORTS BIZ ROOT FOR THE HOME TEAM(S) Northwoods League organizations add teams for summer-long round robin home stand

By JAYSON BUSSA | MiBiz was really natural to make that our third team creative team that really jumped on these [email protected] in this area and go with it. Everything was really brands and worked out what I think are pretty built for it — now we’re building the rosters, cool concepts.” he Kalamazoo Growlers are bring- which is a process and getting players in and In an earlier interview with MiBiz, ing baseball back to Southwest talking to coaches. Chamberlin said that, because the team is so Michigan, and the organization is “We get our players from recruiting schools reliant on ticket revenue, the decision to return making up for lost time in a big way. from all over the country, but mainly we’re would be based on how many fans are allowed T On June 15, the Growlers, which starting here locally — Western Michigan, in per game. are a part of the collegiate summer wooden (Kalamazoo) College — and expanding out to When the trio of teams kick off on July 1, 500 bat Northwoods League, announced that they places like Central Michigan (University). We fans are allowed in the ballpark for each game, would kick off the abbreviated 2020 season on want to start with players and colleges within a number that will likely grow as the season July 1 alongside the Battle Creek Bombers. the state to do our duty and help our local teams progresses. In addition to the duo, the Growlers organiza- to get experience. They’re all amateurs and Chamberlin said that as a second-year orga- tion announced the formation of a second team, hoping to get to the next level. nization, Traverse City saw dubbed the Kalamazoo Mac Daddies, a homage We wanted to help the teams in value in not going dark for the to the popular side dish of macaroni and cheese. our own backyard.” “It’s essentially whole year and staying in the The Growlers, Mac Daddies and Bombers Still, creating and manag- line of vision for area baseball will play one another in a 60-game season ing yet another baseball team a 57-game fans. featuring a round robin format. The season comes with plenty of logisti- home stand “When you’re in this busi- will see 40 games at Homer Stryker Field in cal difficulties, but those are that we’re ness, there are always so many Kalamazoo, home to both the Growlers and the challenges that Colopy said are factors outside of your control Mac Daddies, and 20 at C.O. Brown Stadium in worth it, not only to the colle- signing up whether that’s weather or if the Battle Creek. Both facilities will be filled to far giate players that get to show- for, and team is any good,” Chamberlin less than half capacity. case their talent, but for the 100 said. “There are a lot of things The Traverse City Pit Spitters, under the part-time staff members that operationally, that us as operators can’t con- same ownership group as the West Michigan use both ballparks for summer that’s going to trol that always make any sea- Whitecaps, made a similar announcement. employment. son a little bit of a gamble, but As well, the Pit Spitters formed two additional “There are budgets built into take some work we would not have made these new teams — the Great Lakes Resorters and that, where we’ll have to pay to pull off.” decisions if we didn’t think that the Northern Michigan Dune Bears — to fill for equipment and pay to get financially this could turn out out its pod. players fed and housed — it’s a positive for us.” All 57 season games will be played at Turtle big undertaking but we have a — JOE CHAMBERLIN Also, with similar colle- Creek Stadium in Blair Township, south of duty to do that, that’s why we’re CEO of Traverse City Pit giate leagues across the coun- Traverse City. When the season kicks off, the here,” Colopy said. “If we can do Spitters try folding up shop for the year, Traverse City organizations will only allow 500 that in a limited capacity this many highly talented college fans per game. year, we’re going to.” baseball players are up for “I’m really excited about what we rolled out The Growlers will welcome grabs and looking for a place in Traverse City today,” said Pit Spitters CEO Joe fans in reduced capacity and grow that num- to showcase their talents. Chamberlin, whose team will now oversee the ber throughout the course of the season. Never “We want the baseball to be good,” Resorters and Dune Bears. “I think it’s a cre- will attendance reach more than 30 to 33 per- Chamberlin said. “I think the fact that there ative way to make baseball work this summer. cent of capacity. are a lot of other leagues that aren’t going this So far, the reaction has been really positive and The Growlers, Mac Daddies and Bombers year, that this late in the game we could still put really strong.” have invested in additional cleaning, staffing together competitive and high-talent rosters. I The winners from the Kalamazoo/Battle and training to aid in fan safety. New features think you can always throw a roster together, Creek and Traverse City pods will meet for an include designated entrances for each seat- but this summer we were uniquely positioned end-of-the-season playoff series. ing area and limited concession menus. Fans to deliver on the promise of putting prospects All the organizations have extensive COVID- must also wear masks when walking around on the field.” 19 preparedness plans in place and will feature the park. In 2021, Chamberlin said the Traverse City measures ranging from the elimination of self- “We’re always talking to our health depart- operations plan to return to life as a single serve drinks and buffet food to strategic seat- ment and other officials here, and we have the baseball team. But for this year, his staff has a ing arrangements to ensure fans can properly opportunity to be a place to showcase that daunting task ahead. distance themselves from one another. things can be done the right way and done in a “It’s essentially a 57-game home stand safe environment,” Colopy said. “We’ll change that we’re signing up for, and operationally, Creating new teams and adapt to regulations and CDC recom- that’s going to take some work to pull off,” mendations — those can change sometimes Chamberlin said. For the Growlers, creating a new team from the weekly.” ground up fell into place a little more seam- lessly than many might expect. The Kalamazoo Mac Daddies brand already ‘A 57-game home stand’ existed, but only as a novelty that the organiza- The Pit Spitters organization is now solely *?+?,?9.. 2/?"$ tion was planning to use for a Father’s Day pro- responsible for baseball in Traverse City this Warehouse | Office | Manufacturing motion. Because many of the components of a year, operating all three teams. team were already in place, Growlers Managing “It’s been a lot of work in a short period of Partner Brian Colopy said that it made sense to time,” Chamberlin said. “The creative stuff — scale the idea into an actual functioning team. the branding and the … business side of the “Luckily we had this all moving and the jer- equation — we were able to control and felt seys and the plans in place,” he said. “I’d say it comfortable pulling that off. We had a great

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Visit www.mibiz.com MiBiz / JUNE 22, 2020 19 SPORTS BIZ STUCK IN NEUTRAL West Michigan race tracks weigh options during pandemic

By JAYSON BUSSA | MiBiz Howe said that he expects racing to start up [email protected] at the facility the first week of July, meaning the crew of 65 employees that work a typical race wning and operating the day will have missed half of the season this year. Kalamazoo Speedway has always “This is a business that runs on 25 days a year been a labor of love for Gary Howe and I’ve said to a lot of people, when you try to — he’s never drawn a paycheck off run any business 25 days a year — but you still US-131 Motorsports Park in Martin offers motorists a chance to run their street-legal vehicles on O of it in nearly two decades. have 12 months of payments and overhead — the dragstrip. COURTESY PHOTO Lately, though, it’s been a bit more laborious. it’s a tough business,” Howe said. “We’ve lost “The race track is no different from any other half that now. It is what it is.” interpreting the various executive orders has The drivers and crews who have shown up small business in the country,” said Howe, who Like many amateur sports entertainment left some tracks waiting on the sidelines. The for local bracket racing are subjected to tem- has owned the paved 3/8-mile, high-banked businesses, the Kalamazoo Speedway relies Kalamazoo Speedway has taken a similar perature checks at the gate and are socially dis- oval track for 19 years. “It’s not going to be an almost solely on gate money to fuel its opera- approach as Berlin Raceway in Marne, which tanced in their pit areas. overall good year, but we accept that.” tions, which means that even if Howe and his also is allowing only practices. The Hartford “There was no way we could not open,” said During a normal season, the sound of rev- crew are able to put cars on the tracks, they also Motor Speedway in Van Buren County in Stephanie Peterson, marketing and media rela- ving engines starts up in April at the facility need to put butts in the seats. Southwest Michigan also is waiting out the tions director for the dragway. “We’d have to at 7656 Ravine Rd. in Kalamazoo. However, The Speedway grandstands can seat 6,400 season. close the business if we could not open. That because of the COVID-19 pandemic and result- people, but regulations from Gov. Gretchen Management at Berlin did not respond to wasn’t really an option. Of course, if we were all ing shutdown of many businesses throughout Whitmer’s office will almost certainly ban any requests for comment, but recently posted on on lockdown, clearly we wouldn’t do things ille- the state, life at the Speedway has been stuck sort of venue filling its seats to capacity. social media: “We have been granted permis- gally, but this is definitely moving in the right in idle. “Based on the insight from the health depart- sion to host these open practices and if every- direction.” In June, Howe and his crew finally were able ment, outdoor entertainment venues such as thing goes well and we do our part by sticking Simply allowing cars on the dragstrip hasn’t to open the track to test-and-tune practice ses- race tracks may very well only be able to fill to to these specific guidelines, it will only help us put Peterson and her team in the clear. In fact, sions for drivers. Under this format, drivers pay 25 percent capacity,” Howe said. “That means get back to racing with spectators sooner rather US-131 Motorsports Park relies significantly on for a pit pass and no fans are allowed into the about 1,600 people can get in there. We can than later.” the revenue generated by its high-profile events facility. make a show out of that. We can’t quite make Meanwhile, surrounding tracks have begun that fill the grandstands. These include: Night Staffing the track with a full safety crew and a show out of 500 — 1,000 is kind of the limit. to return to racing in various forms — every- of Thunder (June 20), Northern Nationals (Aug. ambulance costs Howe about $2,800, and the If they’re saying 500, we’re looking at losing thing from significant crowds to drivers and 7-8) and the 16th Annual Funny Car Nationals practice sessions tend to break even. $6,500 a night.” crew only. These tracks include Galesburg (Sept. 11-12). “We got to make it where it’s feasible for the Speedway (Galesburg), US-131 Motorsports The Night of Thunder event was cancelled racers and the ownership,” he added. “It has to Park (Martin), Grattan Raceway (Belding), recently and now Peterson is monitoring the “Based on the insight from be a two-way street.” GingerMan Raceway (South Haven), I-96 upcoming two events in hopes they go off with- the health department, Howe and his wife, Donna, make a full-time Speedway (Lake Odessa) and Thunderbird out a hitch. living through owning and operating Howe Raceway (Muskegon). “We know we can’t get all three of them, so outdoor entertainment Patio & Windows Inc. in Plainwell. His success While Howe said he certainly doesn’t blame then you look at the budget and think, ‘What if venues such as race tracks in that job allows him to absorb small shortfalls his peers for returning to racing as quickly as we get two of them?’ or ‘What if we only get one at the Speedway, but like many other owners of possible, he is frustrated that some are able to of them?’” Peterson said. “I don’t know what it may very well only be the 43 different race tracks in Michigan, he isn’t draw significant crowds while his crew contin- looks like if we get none of them.” able to fi ll to 25 percent equipped to handle a major loss. ues to wait. Unlike its circle track counterparts, US-131 capacity. That means “We still need it to cover its own nut,” Howe “I only speak for my track — I have five con- Motorsports Park is able to diversify its ser- said of the track’s $2 million in annual oper- cession licenses and one liquor license,” Howe vice offerings to create different revenue about 1,600 people can get ations costs. “It’s no big deal if we’re down said. “I can’t do anything that jeopardizes streams. Not only does the facility host local in there. We can make a $25,000. Bottom line is, hell, you can’t go los- them.” bracket racing on a weekly basis and its big show out of that.” ing $100,000 or $150,000. We’re not millionaire marquee events, but it also welcomes the gen- groups. We’re blue-collar workers.” ‘Moving in the right direction’ eral public to run their street-legal vehicles on the track. — GARY HOWE Confusion abounds US-131 Motorsports Park in Martin is one of “We really just kind of take it day by day and the tracks to return to action, doing so at the are thankful for what we got,” Peterson said. Owner of Kalamazoo Speedway While all race tracks across the state were late beginning of May, but its owners have not yet “We look forward to when we can open our in kicking off their seasons, confusion over allowed spectators. doors to everyone.”

US-131 Motorsports Park, left, has opened for local bracket racing since the beginning of May, but has not allowed spectators into the events. Likewise, Kalamazoo Speedway, right, has remained closed to spectators, but in June began opening for drivers to use the facilities for test-and-tune sessions. COURTESY PHOTOS

20 JUNE 22, 2020 / MiBiz Visit www.mibiz.com NONPROFIT ORGANIZATIONS

Philanthropy steps up to help as crisis hits nonprofi ts hard

By JANE SIMONS | MiBiz range of services to the nonprofit sector, the Ford which was seeded with an initial $200,000 from has committed funds beyond its 2020 program [email protected] Foundation’s step helped catalyze the philan- a local endowment. He said several generous grantmaking budget in light of COVID-19. thropic sector to take action. local families and corporations joined the effort, “That’s one example. We know family foun- he announcement last month that five “When the Ford story came out, it created a enabling CFHZ to launch the fund with a total dations have been engaging in deep listening of the most influential U.S. charitable greater awareness for the need to increase giv- of $800,000. with their nonprofit and community part- foundations would be substantially ing levels,” Eddy said, noting that more than “We were spending a significant amount of ners to understand their challenges and needs increasing their giving levels was met 760 foundations of all sizes have signed on time analyzing state and federal funds coming throughout this pandemic,” Caldwell said. T with gratitude by philanthropic lead- and made a similar commitment in the ensu- into our community and looking at what are “These partnerships — much like the mis- ers in Southwest Michigan. ing period. those places that public dollars aren’t getting to sions and resources of each foundation — are The Ford Foundation led the effort with its “There’s a recognition from foundations that or aren’t sufficient to meet needs,” Goorhouse unique; therefore, so are the response efforts. announcement on June 11 that it will borrow this is not business as usual,” Eddy said. “While said. “We used that analysis to strategize five Foundations are deploying mission-aligned $1 billion to substantially increase the funding they may have given a grant for something spe- areas where we could focus our funds to respond resources in a myriad of ways, leveraging the it distributes. The foundation will issue a com- cific, if that operating nonprofit can’t open its to places in the community that didn’t get money tools they have available.” bination of 30- and 50-year bonds, a rare finan- doors every day, that specific intent may get or didn’t get enough.” Keith Hopkins, president of Ada-based cial maneuver among non- delayed. Funders want to see nonprofits con- Those areas include: Hopkins Fundraising Consulting LLC, is unsur- profit groups. The Battle tinue and provide programs and services that • Preventing individuals who are barely mak- prised by the increased support from founda- Creek-based W.K. Kellogg they funded with that grant.” ing it now from slipping into a spiral of poverty, tions of all sizes in Michigan in response to the Foundation was among the From a strategic standpoint, “these founda- • Targeting resources for migrant and immi- pandemic. He said it’s “really good to see public foundations to increase its tions are realizing that if they made a two-year grant communities, and private foundations” stepping up at such a commitments. $100,000 commitment and the nonprofit closes, • Expanding mental health and substance critical time. The foundations’ com- they’ve lost that $50,000,” Eddy said. “If the non- abuse services, “When the full impact of COVID-19 started mitment to increase levels profit doesn’t exist, then all of their historical • Helping the unemployed navigate the pub- to hit, major family foundations reached out of giving came as a direct investments get wiped away.” lic health insurance system, and to nonprofits they support and started cutting response to the coronavirus Foundations throughout Southwest Michigan • Providing additional education-focused checks that were not the typical checks,” Hopkins Caldwell pandemic and the global and other areas of the state mobilized their assistance for children ages 5-8. said. “I know of a couple of family foundations in fallout that has ensued. efforts shortly after the state-mandated closures Goorhouse said the Stabilization Fund is a two counties that forwarded gifts ahead of time. “This major com- went into effect and the far-reaching effects of more planned and targeted approach. He said They were going to send the checks in June and mitment led by W.K. the virus began to surface. the foundation is currently identifying partners instead gave in April.” Kellogg Foundation, Ford “There are dozens of pooled relief and in the community. If there’s a silver lining to any of this, Hopkins Foundation and other response funds across the state led by or in part- “The plan is to have the funds distributed said it’s the size of the gifts that have been com- funders in the space echoes nership with foundations that are directly sup- by October or November,” he said. “The funds ing in. the calls from the charita- porting nonprofits that are experiencing high will go to nonprofits. We are also exploring the “I’ve been really heartened and pleasantly sur- ble sector that we must be demand for services,” Caldwell said. “In addi- possibility of a direct cash assistance program prised about the size of gifts to organizations I’ve innovative, nimble and tion, more than 20 Michigan foundations have that would direct cash into the hands of indi- been helping. I’ve had four or five campaigns where Goorhouse leverage partnerships to signed on to a national pledge committing to viduals rather than running it through nonprofit I’ve had six- or seven-figure gifts,” Hopkins said. address the unique chal- provide greater flexibility in their grantmaking organizations.” lenges facing nonprofits, especially those who and in their broader work with their nonprofit Similar to the CFHZ and so many other Addressing equity concerns serve our most vulnerable populations,” said partners to best support them during and after foundations, the Kalamazoo Community Kyle Caldwell, CEO of the Council of Michigan this crisis.” Foundation’s response was swift and targeted. Caldwell said nonprofits and foundations are all Foundations (CMF). Senior Community Investment Officer Sandy being challenged and there are many facets to A new analysis by Candid, the nonprofit Filling gaps Barry-Loken said the foundation increased their economic concerns. However, nonprofits formed by the merger of Foundation Center and its giving levels starting the second week of that serve marginalized communities are being GuideStar, found that while some foundations On March 24, a coalition comprised of The March. further challenged as those communities are may be able to temporarily increase their pay- Community Foundation of the Holland/ “We have been working jointly with the being disproportionately affected by the pan- out rates, “the current situation is Zeeland Area (CFHZ), the United Way of Battle Creek Kalamazoo Region demic, he said. far more complex than what we Grand Haven Area Community to jointly distribute dollars to the communities in “There are many challenges that have been experienced in 2008 and 2009. NONPROFIT Foundation (GHACF) and the response to COVID-19,” Barry-Loken said. “Early emerging from our communities that philan- Philanthropic giving in response SECTOR NEWS Greater Ottawa County United on, our combined donor relations teams began thropy is working to address,” Caldwell said. to this crisis could reach unprec- Sponsored by: Way announced that they had making outreach in the community and exten- “The digital divide facing students who may edented levels.” GRAND RAPIDS secured commitments of more not have access to reliable, high-speed inter- COMMUNITY sive outreach one on one to individuals and cor- “Therefore, foundations will FOUNDATION than $400,000 to their respec- porations and some private foundations as well. net or connected devices is an equity issue need to closely examine what’s tive Emergency Human Needs “We jointly raised just over $2.5 million for the that’s been central to conversations as we look viable for their continued phil- Funds, established in response response to the impact of COVID-19 on the most ahead to what the return to learning may look anthropic efforts to effectively support commu- to the COVID-19 outbreak. That fund grew to marginalized and vulnerable in our community.” like this fall. Data from the state has shown how nities now and for years to come, recognizing $900,000, which was distributed within eight the COVID-19 pandemic has disproportionately there’s still great uncertainty about the support weeks to area nonprofits working to meet basic Families step up impacted communities of color throughout our that will be needed long term,” Caldwell said. needs, said Mike Goorhouse, president and state. Many foundations are working to deepen According to Heather Eddy, president and CEO of CFHZ. Among larger family foundations, Caldwell said understanding of existing racial inequities and CEO of Naperville, Ill.-based Kistner Eddy In late May, Goorhouse announced the cre- the Southfield-based Max M. and Marjorie S. (take) action to advance racial equity to support Executive Services (KEES), which offers a broad ation of the Community Stabilization Fund, Fisher Foundation has shared publicly that it justice for all.”

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Visit www.mibiz.com MiBiz / JUNE 22, 2020 21 Q&A Rodger Price IN THE NEWS Founder, Leading by Design LLC

M&A ■ Allegan-based Perrigo Co. plc plans to enter the ■ The assets of Lansing-based H2O Hydroponics CBD market through a strategic investment and long- Rodger Price formed Leading by Design LLC have been acquired by Denver-based term agreement with Colorado supplier Kazmira LLC. LLC in Holland in January 2014 to GrowGeneration Corp. (Nasdaq: GRWG), a chain of Under a deal, Perrigo plans to make a $50 million develop business leaders with a sense specialty hydroponic and organic garden centers with investment for a 20-percent stake in Kazmira. Perrigo that West Michigan was “already this 27 locations. GrowGeneration previously acquired will pay Kazmira $15 million when the deal closes, and hotbed of great leaders.” He believes the assets of Grand Rapids Hydroponics Inc. in the balance within 18 months. September 2019. The company cited Michigan’s legal- that by cultivating that culture, the HIGHER EDUCATION region can become a leader in leader- ization of cannabis for recreational use, including the ability to grow up to 12 plants within a residence, as ■ The founding dean at the Western Michigan ship development, similar to what Silicon Valley is to technology. A a driver for its continued push into the market. Terms University Homer Stryker M.D. School of one-time engineer who led leadership development and training at of the H2O deal were not disclosed. Medicine in Kalamazoo plans to retire early next the former Prince Corp. and Johnson Controls Inc., Price pivoted ■ The planned $21.9 million merger of Community year. The medical school, known as WMed, launched when the COVID-19 pandemic hit. He condensed a flagship year-long Shores Bank Corp. into ChoiceOne Financial a national search for a successor to Dr. Hal Jenson, program down to four months, and then a four-week course focusing Services Inc. heads to a close after earning share- who came to Kalamazoo nine years ago and plans to on immediate challenges. He also now offers free “acute” coaching holder approval. Shareholders at Muskegon-based retire in early 2021. WMed directors will accept nomi- for leading in crisis. Price spoke with MiBiz about leadership, par- Community Shores Bank approved the deal June 17. nations and resumes for the dean’s position through The two banks will consolidate in the fourth quar- the summer to present to the search committee in ticularly in a time of crisis. ter with Community Shores taking on the ChoiceOne September. The search committee aims to name a name. ChoiceOne presently has 29 offices in West new dean in early 2021. and Southeastern Michigan with about $1.5 billion in What must all leaders do during a crisis? assets. Community Shores has about $220 million in EXPANSION You need to have your best thinking. We know from brain research that when you get total assets with three offices in Muskegon County ■ Citing a growing customer base along the anxious, your executive function starts to shut down. The first thing is you need to and one in Grand Haven in neighboring Ottawa Lakeshore, Grand Rapids-based I.T. firm The KR somehow gain some calm. One of the things we know we can do to help leaders get County. Group opened a new office in Spring Lake. In addi- clearer thinking is to just listen to them. Let them process. We can actually ‘listen’ ■ A pair of Indiana cooperatives have formed a tion to its Grand Rapids location on Front Avenue, the them into clarity. strategic joint venture to acquire an Allegan County company, which specializes in designing, implement- Then you have to think about: What are some of the options? You can have that atti- agricultural retail business owned by CHS Inc. ing, managing and maintaining I.T. infrastructures, is tude of ‘amazing things can happen,’ but we have to be able to look for them. We’re right Crawfordsville, Ind.-based Ceres Solutions and now also located at 424 Oak St. in Spring Lake. Avon, Ind.-based Co-Alliance LLP expect the deal in the middle of that ourselves right now. You have to stay calm so that you can think to close later this year and are currently conduct- ECONOMIC DEVELOPMENT clearly, and then you have to look for where the opportunities are in this, and then you ing due diligence at the business, located at 4671 ■ A youth employment program is slated for launch have to look at what’s true. You have to face the realities and not just bury your head E. Washington St. in Hamilton, southeast of Holland. this summer, employing 1,000 Grand Rapids residents in the sand. ages 15-21. The city is facilitating the program in part- INVESTMENTS nership with dozens of local businesses and organiza- How do you define leadership? ■ Grand Rapids-based Red Cedar Investment tions, including Spectrum Health, Meijer Inc. and The vital few things that make a leader a great leader are those three things of being Management is a sub-advisor for the fixed income Downtown Grand Rapids Inc. and plans to offer someone worth following — and we never tell someone what those attributes are, but North Square Strategic Income Fund launched by 50 positions across city departments as part of the we explore it with them. Certainly, integrity, transparency, authenticity, competence Chicago-based North Square Investments. The GRow1000 initiative. Participating businesses and and all kinds of things go into being someone worth following. Then secondly, build- portfolio managers of the North Square Strategic organizations will offer young people 120-hour work ing an amazing team and, thirdly, making sure you create clarity around ‘who are we, Income Fund are Red Cedar’s John Cassady III, David experiences over six weeks starting July 13. where are we going, and how do we behave as we’re doing all of that.’ Those three things Withrow, Michael Martin, Jason Schwartz, and Julia ■ Michigan lost another 1,000 clean energy jobs last make up 80 percent of what it means to be a great leader. Batchenko. Red Cedar has 13 employees and $1.3 bil- month, bringing the state’s total losses to 31,000 in the lion in assets under management. sector since the coronavirus pandemic spread in mid March, according to an analysis of federal labor sta- How do you know when somebody is ready for a leadership position? HEALTH CARE tistics. The analysis from BW Research Partnership I don’t think you do. I think it’s trial and error. Remember the Peter Principle from the ■ Spectrum Health, the largest care provider in on behalf of business and environmental groups is ’60s (the tendency to promote people to the highest level of their incompetence). When Western Michigan, has committed at least $100 mil- the latest documenting the clean energy job losses I promote somebody, I don’t know if they can do it or not. We’ll find out. The problem lion over the next as a result of COVID-19. Since mid March, more than with the Peter Principle is once they were promoted higher and higher, maybe five levels decade to address 620,000 workers — mostly in the energy efficiency up and they finally hit their level of incompetence, the issue then is you can’t keep them racial and ethnic dis- sector — have filed for unemployment. there. But if you are afraid of promoting someone into their level of incompetence, you parities and improve might not ever promote anybody. You see some things that you can predict that they’ll equity in health care. REAL ESTATE be able to do really well, but you don’t know until they have that big job and that’s when That amount represents a 40-percent increase in what ■ The former B.C. Cobb coal plant on Muskegon Lake it becomes real. Now there are things we can do to help them, but ultimately we have to Grand Rapids-based Spectrum Health now spends on is anticipated to be “one of the top marine port termi- try it and see, and then if it doesn’t work we have to help them with that, too. initiatives to improve health equity and reduce dis- nals” on the Great Lakes after officials announced the parities. The health system’s commitment includes site’s remediation and sale to new owner Verplank Given the crisis that we’re in, what’s the one mistake a business leader must avoid $20 million to $25 million over a decade at Spectrum Dock Co. Verplank will use the site to consolidate its doing? Health Lakeland in St. Joseph, which it expects to Muskegon Lake commercial dock operations after generate and spend annually through the creation of a acquiring the property from North Carolina-based Leadership is often this paradox of two very different things, almost opposites. One is $50 million capital fund to support initiatives on health Forsite Development Inc. you have to face the reality that is creating that fear, but you must not give in to fear. equity across its market in Southwestern Michigan. ■ The Hinman Co.’s 13-story, 140,000-square-foot You must have confidence that there is something out there that is going to work, so you ■ Ascension Borgess and Ascension Medical hotel located at 10 Ionia Ave. NW in downtown Grand have to kind of wrestle with both of those opposites. If all you do is go Pollyanna-like, Group Michigan opened a new pediatric care Rapids is expected to be completed two months later you can crash and burn. If all you do is let fear drive you, you might survive, but your office at 1428 Milham Road in Portage. Ascension than anticipated because of construction delays stem- competitors are going to fly by you, those who are saying, ‘We see opportunity here.’ Medical Group Borgess Pediatrics opened on Monday, ming from COVID-19. When construction began in June 8 and is currently accepting new patients. The early 2019, the Residence Inn by Marriott extended- Can anybody become a leader? 3,100-square-foot clinic has eight exam rooms, one stay hotel was scheduled to be completed by Sept. 1. Anybody can become a better leader than they are, but people do, in my opinion, have procedure room and four providers: Dr. Mary Avendt- This date has changed to Nov. 1 because non-essen- ceilings. There are basically six things that we explore inside a person that define their Reeber, nurse practitioner Emily Geldersma, and phy- tial construction work was forced to temporarily shut design, and it’s out of this where you go, ‘Wow, you’re a natural leader,’ or ‘You’re going sician assistants Emily Putnam and Kristy VanBeek. down as part of Gov. Gretchen Whitmer’s stay-home to have to work really, really hard at this if you want to be a great organizational leader.’ ■ Holland Hospital completed a three-year expan- order. sion and renovation of the Boven Birth Center, which ■ The Urban Institute for Contemporary Arts In business, what’s the difference between a manager and a leader? now includes 21 private mother-baby rooms, eight plans to relocate and sell its building at 2 Fulton St. labor-delivery-recovery rooms, two operating suites, SW in downtown Grand Rapids after financially strug- We like to talk about managers as incredibly important and they focus on doing things four private triage rooms, a well-baby nursery, and a gling to maintain the facility over the last few months right, and a leader is more interested in ‘are we doing the right things.’ One of my favorite special care nursery. The birthing unit has space to during the COVID-19 pan- quotes is: ‘The only thing worse than doing something poorly is to do something with accommodate 2,200 births annually. demic and state-man- excellence that should not be done.’ So, management is going to be about, ‘Let’s make ■ True Women’s Health, a menopause and sexual dated shutdown. The sure we do things with excellence.’ Leaders are going to be about, ‘Let’s make sure we’re health wellness clinic, opened in the Grand Rapids UICA will put its building working on things we should be working on.’ Management is more about, ‘What’s in area at 2144 East Paris Ave. The clinic offers a wellness up for sale this fall and front of me today and this week and this month?’ Leadership is more about looking out program and a concierge program. Both offer com- move its operations to the there, looking next year. Especially in our response to the pandemic, you don’t have to prehensive individualized care including an annual Woodbridge N. Ferris building at 17 Pearl St., which look out to be a leader (and ask), ‘What are you going to do?’ physical, basic wellness assessment, treatment of is on the campus of Kendall College of Art and menopause symptoms and guidance on reaching Design of Ferris State University. The organization Interview conducted and condensed by Mark Sanchez. COURTESY PHOTO health goals. has been on a hiatus since mid March.

22 JUNE 22, 2020 / MiBiz Visit www.mibiz.com 7.6.2020 Small Biz M&A Contract Deadline: 6.24.2020 7.20.2020 West Michigan’s Tribal Economy UPCOMING Contract Deadline: 7.8.2020 8.3.2020 9 West Michigan Industries Distrupted by AI Industry 4.0 ISSUES Contract Deadline: 7.22.2020 8.17.2020 Automotive Supply Chain

How should Aerospace Contract Deadline: 8.5.2020 marketing change suppliers brace in the wake of for continued COVID-19? turbulence PAGE 9 PAGE 5

MAY 11, 2020 •VOL. 32/NO. 15•$3.00 SERVING WESTERN MICHIGAN BUSINESS SINCE 1988 www.mibiz.com Experts warn of EXPLORING possible mental health ‘aftershock’ WHAT’S from COVID-19 NEXT 8.31.2020 Experts preview workplace By MARK SANCHEZ | MiBiz changes as economy slowly [email protected] re-emerges f the SARS outbreak 17 years ago in Asia is an accurate indi- By MARK SANCHEZ | MiBiz cator, behavioral health care [email protected] I providers could see a patient Insurance surge in the coming weeks and eople who have been working from months as the COVID-19 pandemic home for weeks because of the takes an emotional toll on people. COVID-19 pandemic will return to a One-third of the people in Asia P decidedly different workplace than were unable to return to work full COPING they had previously once the economy gets Contract Deadline: 8.18.2020 time after the SARS pandemic, six going again. in 10 experienced fatigue, and half Changes will span a range of workplace Former had difficulty sleeping. Spectrum environments, including offices, shop floors, In Hong Kong, the suicide rate breakrooms and conference rooms. Wearing Muskegon coal spiked nearly 32 percent for two HealthWITH face masks and having more distance plant to get years after SARS. Hong Kong also prioritizes between workers will become the norm, experienced “increases in persistent along with routine temperature checks and new owners depression, anxiety, panic attacks, buying local continually cleaning and sanitizing the work- PAGE 12 psychomotor agitation, psychotic PAGE 14 place, tools, equipment and workstations. symptoms, delirium, and suicid- COVID-19 Those and other prac- MARCH 16, 2020 •VOL. 32/NO. 11•$3.00 SERVING WESTERN MICHIGANality,” BUSINESS accord- SINCE 1988 www.mibiz.com tices are all part of the pro- ing to a white verbial “new normal” for paper from Pine employers working to nav- Rest Christian igate the deadly pandemic Mental Health that has disrupted daily rou- STATUS QUO — CORONAVIRUSServices on the IN MICHIGAN — tines, thrown the economy potential men- into recession and may lin- GR debates increasing Small businesses around West Michigan have been affected in many ways tal health effects Kennedy ger for many months until a 9.14.2020 sites for marijuana Eastburg of the COVID-19 by the ongoing pandemic. While some are seeing increased business, most vaccine is developed. businesses; equity, pandemic. companies are beingVirus forced to concernsdeal with the fallout by getting creative, man- “As business leaders, you have to make local ownership The white report pulls data from sure you’re taking the responsibility for your concerns remain a number of sources to issue a call to aging cash and findidriveng new ways additional to stay engaged with customers and cli- employees,” Kentwood-based Autocam action for care providers to prepare ents. In this Coping with COVID-19 special report, MiBiz speaks with two Medical Devices LLC CEO John Kennedy By SYDNEY SMITH | MiBiz for the “aftershocks” from the pan- said during a recent back-to-work webinar [email protected] demic and “minimize the fallout of dozen West Michigandue compan diligenceies to hear how in they ’re navigating the current hosted by Advantage Benefits Group Inc. “It’s COVID-19 on mental health in our uncharted waters. SEE PAGES 12-19 incumbent on us as businesses to make sure Family Business GRAND RAPIDS — Following communities.” M&A transactions See WHAT’S NEXT on page 8 mixed messages from the Grand “The warning signs are Rapids City Commission late last there right now that we could in month, marijuana advocates Michigan experience a significant By MARK SANCHEZ | MiBiz West Michigan hope city officials will ultimately How surge in behavioral health needs COVID-19 [email protected] structural changes needed for unemployment system, researchers say open more properties for medi- that emerge out of this COVID cri- Contract Deadline: 9.2.2020 will work cal and recreational facilities. employerssis,” Pine Rest CEO Mark Eastburg he coronavirus outbreak that’s bat- differently post On Feb. 25, the commission can helptold with MiBiz . “We ought to be pre- By ANDY BALASKOVITZ | MiBiz teredbenefits Wall Streetfor people and active caused in theirsupply state’s Program loan — call hosted by the West Michigan Policy went back and forth on appli- Visit mibiz.com for ongoing coverage of the busparediness as i mpla stateicat andions a of community COVID-19 in Westabalas [email protected]. chainsystem. disruptions In Michigan, for somethis means manu- work- which requires 75 Forum. As of early May, Sturgis Molded COVID-19 cations for both types of facili- mental healthfor that in case that happens.” T facturersers unemployed has yet to as interrupt a result of trans- the pan- percent of the loan Products was running at about 10 per- The stress, anxiety and s some employers express demic could receive up to $962 a week. to be used for pay- cent capacity involving transportation PAGE 2 ties. The city has approved 24 PAGE 13 actions, although more conversations are licenses for medical marijuana depression the pandemic trig- concern about retain-occurring asThe part federal of due benefits diligence, are according available for roll in order to be and medical devices. The company has businesses, while another 14 gers can come from the loss of a ing workers who areto earn-M&A professionals.up to 39 weeks, while state benefits forgiven — faced about 200 employees. APRIL 27, 2020 • VOL. 32/NO. 14 • $3.00 SERVING WESTERN MICHIGAN BUSINESS SINCE 1988 www.mibiz.com are waiting for approval. The Automotive analystsjob or income, grief, see and uncer- shiftingA ing more income throughDeals thatwere are expanded in process to involve more workers a deeper and backlash from “I’ve called people and there has tainty about the future. At Pine unemployment benefits than their extended for 26 weeks. employees, since been communication that said, ‘I make city hasn’t finalized recre- dive into due diligence in situations where Presta ational marijuana zoning reg- Rest, “we’re experiencing a rise normal paychecks, researchers say Mediaone reportscompany have is acquiring shown con- the loan effectively more by not coming in,’” Presta told dynamics amid incoronavirus many of the stressors that are spreadlong-term structural fixes are needed cern among employers who pay less means workers would be paid their MiBiz. “That’s out there.” ulations and won’t start accept- another that sources raw known to increase risk for sui- to state and federal programs. than the amount of benefits work- typical wages. Sturgis Molded Products’ opera- ing applications until April 20. materials or components TRIAL Healthcide,” Eastburgsystems said. The $2.2 trillion CARES Act passed ers are receiving. In at least one case Kelly Presta, vice president at Sturgis tors and first-line positions make Hours after voting to delay By JESSICA YOUNG | MiBiz Earlier this month at the West Michigan from China. Buyers are in late March included provisions to in Washington state, a company Molded Products Co., shared these less than the maximum amount recreational and pause medi- [email protected] See MENTALAutomotive HEALTH on Suppliers page 6 Symposium in Grand Rapids, asking for more informa- add $600 in weekly unemployment that received a Paycheck Protection concerns during an April 22 conference See UNEMPLOYMENT on page 5 BY FIRE: cal applications, the City Mike Wall, director of automotive analysis in Grand tion about supply chains, SBA races to provide relief Commission reversed course he automotive industry is scramblingface to strikefinancial Rapids at IHS Markit, forecasted light vehicle sales backup plans and the to small businesses, but after the six commission- a balance between near-term execution and of 16.8 million units in the U.S. this year, in the seg- capabilities of replacement 9.28.2020 ers could not agree on how to unsteady industry disruption from thePERIODICALS novel ment that includes cars, utility vehicles and pickup suppliers. some hiccups remain Brown move forward. A last-minute T coronavirus outbreak. crisis broughttrucks. on Construct“It’s stilli onvery new. dispute among commissioners That’s according to industry experts who say the Already, that outlook is changing as COVID-19 con- Everyone’s trying to figure it out on the fly, By MARK SANCHEZ | MiBiz also involved equity and local effect of the virus, which has been spreading around tinues to develop across the country, he told MiBiz. but if clients iwerendustry selling source parts from [email protected] ownership. the globe since late December and shut down produc- As of this report, IHS Markit was still finalizing a China, you’readapts going to have to to make sure Commissioners were con- tion in specific regions, has shifted forecastsby pandemicfor global revised sales projection, but Wall expects the new fore- they have a backup supply-chain plan in he sheer volume of small sidering zoning amendments automotive production and U.S. sales downward. cast to drop to 16.5 million units. case there is newa major safetydisruption,” said Mike businesses that have recommended by the Planning Indeed, Gov. Gretchen Whitmer announced “Everything is happening so quickly and there is Brown, who leads the M&A practice at invest- Diversity/Equity/Inclusion protocols sought federal relief Commission that would have the state’s first two presumptiveBy positive MARK cases SANCHEZ so much | MiBiz volatility that given the circumstances, 16.5 ment bank Charter Capital Partners LLC in T loans illustrates the eliminated a waiver process in Oakland and Wayne counties [email protected] March 10, fol- (million) will still be a very good year,” Wall said. Grand Rapids.PAGE 11 depth and scope of the economic for sensitive land uses like reli- lowed by a state of emergency declaration. See SHIFTING DYNAMICS on page 4 See DUE DILIGENCE on page 9 pain brought on by the COVID-19 gious institutions and opened n normal times, Trinity Health’s seven pandemic. more properties for cannabis hospitals across Michigan generate com- The U.S. Small Business development. bined operating income of $9 million to Contract Deadline: 9.16.2020 Administration quickly blew Marijuana advocates have I $10 million a month. through $349 billion in just 14 sought to relax distance require- But the current operating environment days and approved loans for 1.6 is far from normal, and the COVID-19 pan- Downtown Grand Haven. MIBIZ PHOTO: MARLAments MILLER in order to expand the Michigan Chamber prepares for ‘war’ over graduated income tax proposal million small businesses nation- number of properties qualified demic has pushed the Catholic health sys- wide before halting new appli- for marijuana business use, tem’s financial performance deep into the cations April 16 for the Paycheck which they say could also help By ANDY BALASKOVITZ | MiBizred. seeking a constitutional amendment graduated, or progressive, income tax. schools and road and water infrastruc- Protection Program. That’s as address concerns over a lack of [email protected] Theto Michiganchange Michigan’s operations flat 4.25 for percentTrinity The Democratic-backed proposals have ture starting in 2022. The plan would many loans as the SBA processed LAKESHORE RETAILERS ADAPT, MOVE ONLINE Health, the Livonia-based parent corporation local ownership. income tax to a graduated structure failed to gain traction in the Republican- reduce the state income tax rate for in the previous 14 years combined. Joe Neller, co-founder and s progressive political advo-of Mercybased Health on income. in West MichiganThe Board and of StateSaint held state House and Senate. individuals with income of $175,000 or Congress last week allocated AS SOME SCRAMBLEchief government TO STAY affairs offi- AFLOAT cates seek lower state income Canvassers is Josephexpected Mercy to decide Health in the In the late 1960s and 1970s, less and joint filers with income at or another $320 billion for the PPP, cer at Dimondale-based Green tax rates for most Michigan coming weeksSystem whether inorganizers Southeast can Michigan voters by wide margins below $350,000. According to organiz- $30 billion of which will go to feder- Peak Innovations LLC, said the A residents while higher earn- collect signaturesMichigan, in hopes recorded of putting a $50 rejected ballot proposals for a gradu- ers, 95 percent of Michigan residents ally designated community devel- By MARLA MILLER | MiBiz Planning Commissionthe region’s rejected busiest touristers pay towns, more as for Main infrastructure Streets needs, the question tomillion voters operating in November. loss for ated income tax. Such a change would would pay a lower state income tax rate opment financial institutions, plus [email protected] a provisioning centeracross proposed the state are bearingthe state’s the brunt leading of COVID-business group is “If this qualifiesMarch, “andfor the remember ballot, require a constitutional amendment. than they do now. banks and credit unions with less by his company 19because closures. of the bracing for a highly contentious polit- frankly, it wouldin March be war,” half thesaid month Rich However, supporters say growing Of the 41 states with income taxes, than $10 billion in assets. Banks s the owner of longtimesite’s downtown proximity toWhile a church, some restaurantsical campaign.and breweries have piv- Studley, presidentwas a normaland CEO month,” of the income disparities and declining pub- 33 have a progressive structure. Federal and credit unions with assets Grand Haven retailer Downeven To thoughEarth, theoted company to takeout had and delivery,Organizers retailers deemed behind non- the Fair Tax Michigan Chambersaid President of Commerce and CEO. lic services have shifted public opinion. income tax also follows a graduated 10.12.2020 between $10 billion and $50 billion Sholeh Veiseh has turned toa hosting waiver vir-from theessential church. fall into more ofMichigan a gray area. Somecampaign, have shut which was For years, theRob Chamber Casalou. has opposed The Fair Tax Michigan plan would raise model. will get another $30 billion. tual fashion shows and offering sales on down entirely, while others are transitioning online to The operating loss A See STATUS QUO on page 8 announced in late February, are Casalouefforts in the state Legislature for a $1.5 billion in additional revenue for See INCOME TAX on page 3 The legislation also directed social media to bring in some revenue during the remain at least partially open for e-commerce. stems from the lost rev- $60 billion in funding to the SBA’s coronavirus closure. Under a new executive order issued April 24, enue from canceling non-essential surger- Economic Injury Disaster Loan Gov. Gretchen Whitmer’s initial executive those stores now have more clarity: Retailers sell- ies and procedures, combined with ramped PERIODICALS program Congress set up earlier order closing non-essential businesses through ing non-essential items can open for curbside up spending to test and care for COVID-19 in the pandemic. April 30 shuttered most storefronts on Washington pick-up and for delivery. patients. Leaders push Before running out of money Avenue, an established shopping district in one of See LAKESHORE RETAILERS on page 10 See FINANCIAL CRISIS on page 6 Industry 4.0 for action to for the first round of the PPP, the INSIDE: SBA approved relief loans total- raise wages ing $10.38 billion for nearly 43,500 small businesses in Michigan. PAGE 21 Business Executives at banks and credit After unbridled growth, Michigan craft unions say applications for the of Senior Contract Deadline: 9.30.2020 PPP came from across the econ- omy, including Main Street-type beverage companies gird for devastating lows Care businesses, companies up to the SEE PAGE 16 500-employee threshold, the hos- pitality sector, restaurants, manu- By JOE BOOMGAARD | MiBiz in-person dining and drinking in crews for to-go orders, curbside pickup In a survey compiled by Boulder, facturers and retailers that have [email protected] their establishments in an effort to or home delivery of beverages and Colo.-based Brewers Association in been hurt by the pandemic and curb the spread of COVID-19. For food. Meanwhile, distilleries have early April, 14.1 percent of respon- resulting stay-at-home orders. ichigan’s craft beverage the first time in many of their his- repurposed their stills to produce eth- dents indicated their business could “If you connect enough dots, industry is facing a chal- tories, the owners of breweries, dis- anol in an effort to answer the call to sustain for four weeks or less if the and some you have to con- lenge with the economic tilleries, wineries and cideries have boost critical supplies of hand sanitizer. current conditions persisted. An addi- nect more dots than others, M fallout from the corona- been forced to lay off staff members These scrappy and resilient com- tional 45.8 percent of respondents said you can almost see where every virus pandemic that is unlike any — their companies’ direct connec- panies are finding revenue wher- their businesses could only sustain for single human being and every other in its history. tions with consumers in their tap- ever they can, but few could have one to three months if the social dis- Many companies have been com- rooms and bars. prepared for such an abrupt sea tancing measures and restrictions on See SBA LOANS on page 8 pletely closed for weeks as a result The craft beverage companies that change that’s been brought on by sit-down service remain in place. of state-mandated orders to end all remain open are leveraging skeleton the pandemic. See CRAFT BEVERAGE on page 14 10.28.2020

PERIODICALS Foodservice disruptions INSIDE: cause crisis Mergers & Acquisitions for farmers Drinking PAGE 12 economy SEE PAGE 14 Contract Deadline: 10.14.2020 11.9.2020 Food Economy Contract Deadline: 10.28.2020 11.23.2020 Education & Talent Development Contract Deadline: 11.11.2020 12.7.2020 Construction Wrap-up Contract Deadline: 11.25,2020 12.21.2020 Crystal Ball Special Year-End Edition Contract Deadline: 12.9.2020 Contact Us Today! [email protected] | [email protected] 616-608-6170

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