06-08-2020 Mibiz and Comm. Lending Report.Indd
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Hospital execs Grand Rapids detail changes, convention challenges as center hotel care resumes put on hold PAGE 10 PAGE 9 JUNE 8, 2020 • VOL. 32/NO. 17 • $3.00 SERVING WESTERN MICHIGAN BUSINESS SINCE 1988 www.mibiz.com Offi ce furniture makers fi nd ways to ‘TREMENDOUS WIN’ promote products Tetra Therapeutics’ sale offers without NeoCon healthy returns for investors, validation for local ecosystem By JAYSON BUSSA | MiBiz [email protected] By MARK SANCHEZ | MiBiz [email protected] week that was supposed to be bustling with news GRAND RAPIDS — Tetra Therapeutics Inc.’s A and information on new sale to a Japanese pharmaceutical company office furniture products and provides a final pathway toward bring- innovations in the world of ing to market potential new drugs to treat commercial design will be a Alzheimer’s disease and a form of autism, lot more reserved. as well as generates a handsome return for In line with virtually every financial backers. other event attended en masse About 100 businesses in downtown Grand Rapids suffered some sort of damage after peaceful protests Investors in a $7.2 million Series A capi- around the country, NeoCon erupted in violence on May 30 and 31. PHOTO: ANDY BALASKOVITZ tal round Tetra raised in 2016 got a return of became a casualty of the five times their original investment, founder COVID-19 pandemic. and CEO Mark Gurney said. Participants in Organizers of the marquee an earlier July 2013 debt trade show for the commercial offering got an ROI that’s design industry originally post- ‘INSULT TO INJURY’ close to 13 times their poned the event, slated for June investment, he said. 8-10, even as the COVID-19 GR business owners rebound from City Commissioner Senita “We returned a lot of pandemic began to grip states Lenear, who represents the south- capital to Michigan,” said across the country in early protest damage as local leaders east part of the city, said during Gurney, who started Tetra March. Later that month, they seek to mend old wounds a public meeting on June 2 there Therapeutics in 2011 and finally pulled the plug on the is a balance that must be struck methodically built and live show at The Merchandise By KATE CARLSON & ANDY BALASKOVITZ | MiBiz between rightly frustrated busi- led the company down Gurney Mart in Chicago, dooming [email protected] ness owners and ongoing police the R&D pathway toward plans for the more than 50,000 brutality toward minorities. an exit for investors. expected attendees and 500 GRAND RAPIDS — The May 30 violence following pro- “I think the balance with that is “This is a tremendous win for West exhibitors. tests against police brutality not only damaged dozens Lenear making sure we side with lives over Michigan, both for our investors and stake- The next NeoCon is now of downtown businesses on the verge of reopening, but property,” Lenear said. holders,” he said. slated for June 14-16 of 2021. also has caused local leaders to revisit efforts to mend the Grand Rapids — with its own recent history of police Tetra’s merger into Shionogi & Co. Ltd. Since its inception in 1969, city’s historically strained police-community relations. mistreatment of minorities, including the Michigan could ultimately reach a transaction value NeoCon has become a high- Following the protest that turned violent with burned Department of Civil Rights’ current investigation of of $500 million if certain regulatory and profile launching pad for both police cars, looting and broken storefronts, City Manager 35 complaints against the city’s Police Department — sales milestones are met over the years. leading and emerging com- Mark Washington said: “There is other damage that we is part of the national discussion sweeping U.S. cit- The deal represents one of the largest exits mercial design companies need to address that is unrelated to property. It is the ies since the killing of George Floyd in Minneapolis to date for a startup company formed and from across the globe to debut damage due to long-held tension between some mem- last month. Floyd was killed by a white police officer nurtured in Michigan and supported by new products, innovations bers of the community and the police department. We who kneeled on his neck for nearly 9 minutes. Local local investors. and services, always attract- continue to be committed to rebuilding that trust.” See GR UNREST on page 3 See TETRA on page 20 ing a who’s who of firms from West Michigan’s office furniture industry. While the occasion brought out the titans of the industry, Tribally owned fi rm secures $161M federal contract, expands GR headquarters NeoCon was arguably even more beneficial for smaller By JOE BOOMGAARD | MiBiz Potawatomi. The Waséyabek parent contract admin- environmental remediation subsid- companies, which utilized the [email protected] company recently started work on the istrators, legal iary. FED95 and the tribally owned high-profile nature of the event third floor of its Kendall Building head- support, techni- Baker Engineering LLC, a precision and steady foot traffic to gain GRAND RAPIDS — A federal con- quarters in downtown Grand Rapids cal writers, HR. performance engine manufacturer exposure in the space. tracting firm owned by Waséyabek to convert apartment units into addi- We were already and defense R&D supplier based in “I don’t know if we’ve really Development Co. LLC has begun tional office space and a large confer- bursting at the Nunica, both received 8(a) minority been able to gauge (the effect work on a five-year, $161 million con- ence room to support the expanding seams.” business certifications in March and of the cancellation) yet,” said tract with the Department of Energy federal services division. The firm is February, respectively, from the U.S. Nancy Stryker, director of to provide site operations and sup- “Right now, we’ve got about 15 working on the Small Business Administration. marketing for Holland-based port services at three National Energy positions that we’re advertising for, so Mitchell expansion project For FED95, the 8(a) certification office furniture manufacturer Technology Laboratory locations. we are growing and hiring,” Waséyabek with architecture came just as the COVID-19 pandemic Trendway Corp. The contract — Waséyabek President and CEO Deidra Mitchell and engineering firm TowerPinkster started to spread throughout the See OFFICE FURNITURE Federal Services LLC’s largest to date told MiBiz. “And then as we bring and general contractor McGraw country, which led the company to MANUFACTURERS on page 4 — helps illustrate the growth story for on more and more federal contracts, Construction Inc., both of Grand Rapids. form new teams to bid on coronavirus the non-gaming investment arm of those support positions are going to Waséyabek also launched FED95 cleaning and disinfection contracts the Nottawaseppi Huron Band of the have to grow, too — things like finance, LLC, a new Grand Rapids-based See WASÉYABEK on page 3 PERIODICALS Lakeshore communities INSIDE: hope for midyear Commercial rebound Lending PAGE 12 Report SEE PAGE 14 2 JUNE 8, 2020 / MiBiz Visit www.mibiz.com of further damage in future protests. Some busi- GR UNREST ness owners are reassessing when they will be able Community strength Continued from page 1 to reopen their brick and mortar locations because Several shop owners that sustained damage to of damage and the potential for additional unrest. property, including the bridal shop, have expressed business advocates say it will take proactive mea- Most of the damage to downtown storefronts support for the Black Lives Matter movement Published since 1988 sures to repair decades of systemic racism. happened late in the night on May 30 and early on social media. People in the community have MiBiz® is a registered trademark of “We do not condone violence and destruction morning of May 31 by a significantly smaller group also taped notes of support on many businesses’ MiBiz, Inc. of businesses and property, however we acknowl- of people than the estimated 3,000-4,500 who boarded-up windows. edge we’re at a critical point,” said Kenneth James, gathered at the beginning of the protest. The damage was a little more extensive to Old Publisher director of inclusion for the Grand Rapids Area Hundreds of volunteers descended on downtown World Olive Co., located at 108 Monroe Center St. Chamber of Commerce. “There is a lot of frus- the morning after the unrest and swiftly cleaned up NW. Three of its four windows along Ottawa Ave. Brian Edwards / [email protected] tration with the systemic rac- glass and graffiti and helped to board up windows. were smashed out, according to owner Shasta Fase. Associate Publisher ism that is playing out in this “I have a lot of glass to replace,” said Peter Mostly everything in the display right behind the Denise Montambo / [email protected] country. The Grand Rapids Krupp, co-owner of CDKI Holdings LLC, which window was destroyed, she said, resulting in a lot Chamber wants to be part of owns Sandy Point Beach House in West Olive and of broken product. Editor the solution.” Grand Rapids, and Mexo in Grand Rapids, which Old World Olive Co. has been doing curb- Joe Boomgaard / [email protected] James said he hopes the was damaged during the protest. side pickup throughout the pandemic, but was Managing Editor current “energy and atten- Mexo had been offering a limited amount of take- set to reopen its shop to in-person customers Andy Balaskovitz / [email protected] tion” will help move to a point out during the pandemic and plans to reopen on June by appointment on June 2, which was delayed (energy, policy) of “racial reconciliation.” The 8.