Grand Rapids Open-heart explores surgery reviving formal partnership a arts council ‘game-changer’ PAGE 21 PAGE 9

APRIL 12, 2021 • VOL. 33/NO. 13 • $3.00 SERVING WESTERN MICHIGAN BUSINESS SINCE 1988 www.mibiz.com

Gender disparities Drinking Economy in the workforce CRAFT BREWERS ‘uncovered further’ by COVID-19 pandemic RETOOL TO MAINTAIN By KATE CARLSON | MiBiz [email protected] en and women both expe- PROFITABILITY rienced steep declines in employment at the begin- By JAYSON BUSSA | MiBiz ning of the COVID-19 pan- [email protected] demic, but on average, the Mworkforce for men is back to pre-pandemic ooking back on a 2020 plagued by the levels in Michigan while women have left the COVID-19 pandemic, Ed Collazo didn’t workforce at disproportionate rates. sound like a business owner who just The pandemic’s negative effect on work- saw his company’s revenue plummet by ing women is amplified for working mothers, half a million dollars for the year. especially for women L“2020 was a blessing, dude,” said Collazo, of color, according to CEO of Grand Rapids-based microbrewery City a state Women in the Built Brewing Co. Michigan Workforce There is certainly no disputing that top line report released at the revenue for virtually every craft brewery took end of March. a hit in 2020, a year when brewpubs and tap- “Traditionally we rooms were either shut down completely or have been facing this See PROFITABILITY on page 14 issue for a long time, it’s just the pandemic that Also Inside: Fauble is pushing it to the fore- n Craft beverage roundtable, page 10 front,” said Blanca Fauble, chief development n Suppliers see highs and low in pandemic, officer for the nonprofit Michigan Women page 12 Forward. “It’s always been there, it’s just now n Group seeks affordable health plans for craft that it’s been uncovered further.” beverage workers, page 13 Part of the problem is that more women than men are in low wage jobs. Because of the City Built Brewing Co. CEO Ed Collazo. PHOTO BY STEPH HARDING lack of workplace protections that lower wage jobs tend to have, employees in these roles were the most at risk for losing their jobs for longer periods of time during the pandemic. 8-story Spectrum Health development to ‘breathe more life’ into GR district According to 2018 data from the Brookings Institution, close to half of all working women By MARK SANCHEZ | MiBiz the Center for Transformation Spectrum expects to save about $15 “I think it’s certainly going to in the country — 46 percent, or 28 million — [email protected] and Innovation that will rise on a million annually in rent. transform the neighborhood. It’s worked in jobs that paid low wages averaging 4.8-acre site along North Monroe Spectrum Health hopes the going to bring even more life into a $10.93 an hour, while 37 percent of all work- GRAND RAPIDS — The eight-story Avenue and Ottawa Avenue just project will lead to further rede- neighborhood that’s growing now, ing men earn low wages. These percentages office tower Spectrum Health plans east of the Grand River. The $60 velopment and “breathe more life” and I think more development will are even higher for Black and Latina women to build will bring a major new rede- million to $80 million project into the Monroe North business happen as a result of us being there in the workforce, of which 54 percent and 64 velopment and hundreds of employ- will house about 1,200 Spectrum district that most recently saw a than if we weren’t there,” Cox said. percent, respectively, are low wage earners. ees to the Monroe North neighbor- Health administrative staff — exec- former industrial site transformed The center also will house a “(The pandemic) has opened our eyes to hood near downtown Grand Rapids. utive leadership, human resources, into the 246-room Embassy Suites training and a learning center in a a lot of different things,” Fauble said. “From Spectrum Health aims to begin legal and finance — now work- hotel, said Spectrum Chief Financial first-floor meeting space for up to See WOMEN IN THE WORKFORCE on page 17 construction late this summer on ing at 26 leased offices in the city. Officer Matt Cox. See SPECTRUM OFFICES on page 3

PERIODICALS Michigan infrastructure planning would Cannabis startups get boost from seek entry to market Biden plan outside of retail PAGE 18 PAGE 16

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ADVERTISEMENT WELLNESS AND THE HOME OFFICE Experts weigh in on tactics for health and wellness while working from home icture the perfect home office: sprawling wooden “There’s an old saying that ‘It’s better to eat Twinkies desk, latest high-definition monitor, plush leather with friends than a salad alone’,” Edwards said. “This means Pchair, and of course, that perfect built-in bookshelf as that the quality of relationship with others and ourselves a backdrop for Zoom meetings. has a greater impact than following dietary rules. The salad Though pleasant, this vision is far from reality for is obviously a healthier option (but) a shared experience most people working from home during the COVID-19 with trusted peers is the healthiest option compared to pandemic. More likely are long hours spent at improvised experiencing something alone.” workstations — laptops on stacks of books, the kids’ old crafting table or a dining chair. Meanwhile, children play in Employers’ role in wellness the background or attend virtual schooling, spouses work shoulder-to-shoulder. Employers have adopted a variety of tactics to promote This new reality of working from home can be chaotic, social interactions among their employees and ease mentally draining and unhealthy. the burden of the pandemic. Lyng and Wong, both MiBiz recently hosted a free webinar with occupational occupational therapy students at the Chan Division to software to track employee activity and monitor their Though the COVID-19 pandemic has forced both therapy practitioners Anita Joy Edwards, Kara Wong and for Occupational Science and Occupational Therapy at activity at home. While these programs can be effective employers and their workers to adapt in unfamiliar and Sydney Lyng of health consulting firm GIG Design LLC the University of Southern California, noted some from a profitability perspective, they also easily blur the uncomfortable ways, incorporating wellness techniques to discuss the importance of wellness in mitigating the companies host virtual happy hours. Others hold “health lines between clock time and personal time and risk total and strategies into daily life can help everyone improve physical and mental toll of working from home. circles” – meetings among peers in a safe environment surveillance of their employee and the employee’s family. their physical and mental health. Even with a dedicated home office, working from home where they can openly discuss challenges they face in the “Using such technology is heavily cautioned,” Lyng GIG Design offers top wellness tips for employees who in the COVID-19 era has created myriad health challenges. new work-from-home environment. Outside of promoting said. “It’s crucial to not only request explicit consent from are working from home. The wellness consulting firm Increased chair time has led to weight gain, chronic pain, social interactions, some companies also issue stipends or employees but also weave privacy preserving features into also offers a variety of health and wellness services for depression and other adverse impacts. Endless Zoom bonuses related to health and wellness. the design of their technologies.” employers, including an employee wellness survey and calls and increased screen time have led to digital eye However, the speakers indicated the most essential follow-up consulting services. strain and anxiety. And unclear work-life boundaries have thing employers can do for their worker’s wellness is to Personal Tactics yielded longer hours and increasing burnout. According listen, empathize with their employees’ concerns and GIG Design is a team of health consultants who help to a study from staffing firm Adecco, social burnout from troubles, and above all, remain flexible. On a personal level, Edwards and the other speakers noted individuals achieve their personal, health, and wellness the pandemic is estimated to cost the global economy “There’s a positive correlation between flexible work that individuals can take small actions throughout the day goals. Our approach is client-centered and process-oriented approximately $323 billion annually. schedules and proactivity,” Wong said. “It’s important to promote physical and mental wellness. in order to create the best potential for long-term success Experts believe the work-from-home transition fueled for companies to avoid setting very stringent schedules Incorporating micro-breaks, standing and stretching, that sticks. Visit www.gigdesign.me. by COVID-19 will become a regular part of professional life and deadlines. The emphasis on clock time can cause performing squats or other aerobic exercises once an hour, in the future. As such, both workers and employers alike unnecessary stress on employees and encourage a and placing the printer away from the desk, are all ways need to adopt wellness practices to keep everyone healthy company culture that may not be beneficial.” being people can intersperse physical activity through the Find the webinar recap in the long-term. Ultimately, health and wellness largely The speakers also suggested employers exercise caution workday. Additionally, purchasing ergonomic equipment to at mibiz.com/work-from-home- come down to social interactions, said Edwards, founder and weigh the impacts on employee wellness when maintain proper posture can also help the physical impacts and president of GIG Design. making certain decisions. Many companies have turned of working from home. wellness

2 APRIL 12, 2021 / MiBiz Visit www.mibiz.com SPECTRUM OFFICES Continued from page 1

500 people, including hosting new employee orien- Published since 1988 tations and corporate meetings. A pedestrian bridge MiBiz® is a registered trademark of will connect the 160,000-square-foot project to the MiBiz, Inc. adjacent 155,000-square-foot Brass Works building that Spectrum Health bought last year for $25 mil- Publisher lion and plans to renovate. Brian Edwards / [email protected] The Grand Rapids Planning Commission last Associate Publisher Denise Montambo / [email protected] week approved plans for the project, including a special land use permit for Spectrum Health to Editor build two parking decks of 420 spaces each and Joe Boomgaard / [email protected] a 100- to 150-space surface parking lot on Bond Managing Editor Avenue as part of the Center for Transformation Andy Balaskovitz / [email protected] and Innovation (CTI). (energy, policy) Approval of the parking structures represent Spectrum Health’s planned eight-story Center for Transformation and Innovation will move 1,200 Senior Editor an “intermediate step” for the project toward a full employees to Grand Rapids’ Monroe North business district, which city officials say could spur more Jayson Bussa / [email protected] buildout that could include future retail and office development in the area. RENDERING COURTESY OF SPECTRUM HEALTH (manufacturing, tech, sports) development on the perimeter of the site, Grand Senior Writer Rapids Planning Director Kristen Turkelson said. downtown business district as Spectrum employees and its administrative employees who are now Mark Sanchez / [email protected] City staff has been meeting regularly with Spectrum “patronize businesses in the vicinity.” spread out across Grand Rapids, plus eliminate staff (finance, health care, life sciences) Health on project plans, Turkelson added. The CTI has been in the planning stages for two travel time for team meetings. None of the finance Staff Writer “From a planning perspective, we’re quite years as Spectrum Health acquired the parcels in the staff that report directly to Cox, for example, work in Kate Carlson / [email protected] excited about this and appreciate the collaboration neighborhood, including the former Gill Industries the same office building where he’s based. (real estate & development, small biz) and coordination that Spectrum has worked with Inc. facility on Ottawa Avenue. “To come together to solve complex problems is Contributing Reporter city staff so far,” she said. The office building will feature “hoteling space” going to be a game-changer for us because we haven’t Josh Spanninga The 1,200 employees that will relocate to the CTI to accommodate Spectrum Health employees in had something like that before. It’s just going to be a Contributing Photographer will join about 300 Spectrum staff who now work at the era of the COVID-19 pandemic who split their lot more convenient for people to work together,” Cox Steph Harding the Brass Works building, bringing the total work- time between working remotely and coming into the said. “By having one central location, it’s just going to VP of Production & force at the campus to 1,500 people. office for team meetings or conferences, Cox said. be more efficient and more effective and a lot easier.” Audience Development Spectrum seeks to ensure that the proposed park- “We were able to change some things so it can be The CTI also will free up space now used for Kristi Kortman / [email protected] ing structures and lot “doesn’t overload the streets in very useful in a post-COVID environment where we offices at the nearby Butterworth Hospital campus Digital Specialist our community,” said Alan Kranzo, the health sys- have people that maybe work at home three days a on Michigan Street for future medical uses, he said. Danielle Affholter / [email protected] tem’s director of strategic real estate services. week and come in two days a week,” he said. “We’re Spectrum Health did look at several other sites Graphic Designer The timing of future development on the site’s creating it to be much more open so people can around downtown and the city, as well as in the Kaylee Van Tuinen / [email protected] perimeter “is not yet known,” Kranzo said last week. come in and find hoteling space or the work space suburbs, to build the CTI, Cox said. The plan for the “Certainly we want to control the development that they need so they can continue to solve complex Monroe North site was the most economical and had Senior Advertising Consultant of this site, so the nature of how that site will develop problems together and also build culture together the quickest payback, he said. Shelly Keel / [email protected] over time is not known at this time,” he said. in this environment.” “Overall, we know this is the right place for the Sales & Marketing Associate A resolution the Planning Commission unani- Spectrum Health targets occupancy of the CTI CTI,” Cox said. “Just like downtown Grand Rapids is Lauren Frailey / [email protected] mously approved for the parking plans noted that for the summer of 2023. the hub for business for West Michigan, this is where the project “will encourage other investment” in the The CTI will give Spectrum Health a corporate we wanted to have our hub for innovation and trans- Director, Finance & Administration Monroe North neighborhood, as well as benefit the headquarters and a single location for executives formation.” Tarah Buchan / [email protected]

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MiBiz ISSN 1085-4916 • USPS 017-099 BIZ BRIEFS Established 1988 A recap of recent stories from MiBiz.com. MiBiz is published every other week by MiBiz, Inc., P.O. Box 1629, Grand Rapids, Karger. JLL is marketing the rich history of innovation that request for adjacent property virtual programs. MI 49501. Telephone (616) 608-6170. Fax Downtown GR law (616) 608-6182. E-mail: [email protected]. Grand Rapids property. dates back nearly 100 years,” at 1470 Four Mile Road NW, Rich MacKeigan, regional Subscription changes: subscribe@mibiz. school building listed The law school plans to Dawiedczyk said in a statement. which is part of the develop- general manager for ASM com. Periodicals Postage is paid at Grand for $19.8M operate in the downtown Dawiedczyk takes over for ment plan. Global, which manages mul- Rapids, MI. The Western Michigan building until September, Thomas Rizzi, who was CEO The golf course property University Cooley Law tiple downtown venues and Karger said. of GHSP and also executive — north of I-96 between POSTMASTER: Send address changes School building in downtown the DeVos Place convention vice president and COO of M-37 and Bristol Avenue to MiBiz, P.O. Box 1629, Grand Rapids, MI Grand Rapids is on the market Auto supplier GHSP closely held parent company NW — was rezoned to high space, is “hopeful” that full- 49501. Subscriptions are available without for $19.8 million. names new president JSJ Corp., which is based in density residential in 2003 capacity events will return to cost to qualified readers. Paid subscriptions The 108,654-square-foot Grand Haven. when a developer proposed are available to those not meeting qualified GHSP Inc. — a Holland-based venues like Van Andel Arena building is situated on 1.45 GHSP told MiBiz that Rizzi a previous multifamily proj- circulation requirements. Paid subscriptions manufacturer of control sys- and the DeVos Performance acres at 111 Commerce Ave. has “moved on to pursue ect that never came to frui- are $99/year. Single copy and back issues tems and technology solutions SW, and is the latest large other opportunities.” tion. Planning documents Hall by October this year. He (when available) are $3 each, plus first class for the automotive, appliance piece of downtown real estate show the golf course had also anticipates a groundswell postage. Call 1-877-443-1977 to order. and technology industries — to hit the market within the reopened in previous years of consumer demand after named Dan Dawiedczyk as its 552 apartments past six months. but closed again in 2020. more than a year of venue Western Michigan new president late last month. planned at Walker MIBIZ INC. closures. University and Lansing-based Dawiedczyk has more golf course property 1059 Wealthy St. SE, #201 Cooley Law School launched a than 25 years of experience in Developers are planning a Event, entertainment “2022 and beyond are Grand Rapids, MI 49506 formal affiliation in 2013. The the industry. He joined GHSP 552-unit apartment complex organizers optimistic going to provide a decade of 616-608-6170 phone • 616-608-6182 fax entities use the Grand Rapids after a tenure with Troy-based at the English Hills Country after ‘sobering’ 2020 the roaring ’20s,” MacKeigan facility for educational pur- Aptiv PLC, where he was vice Club property in Walker. After an economically grim COPYRIGHT ©2021. All Rights Reserved. said during a recent panel Reproduction or use of any portion without poses but operations are being president and managing The Walker Planning 2020, Grand Rapids event hosted by the Economic Club permission of the publisher is prohibited. consolidated in Lansing as director for the company’s Commission recently and entertainment officials of Grand Rapids. “The traffic Western and Cooley begin a Americas connection systems. approved a preliminary site say they’re optimistic about three-year process to formally “I’m thrilled to join GHSP plan for the project from Mark pent-up demand, COVID- on our calendar with artists end their partnership, said and take on an opportunity to Avis of Redhawk Multifamily 19 vaccines and a new stan- and agents holding dates is JLL Senior Vice President Jeff lead a company with such a LLC, along with a rezoning dard of hybrid in-person and tremendous for 2022.”

Visit www.mibiz.com MiBiz / APRIL 12, 2021 3 MANUFACTURING MEDC makes new Industry 4.0 push with partnerships, $3M investment

By JAYSON BUSSA | MiBiz “A year and a half ago, we launched a strategic The two propos- [email protected] plan that was built around making sure Michigan als the MEDC submit- had the fastest growing, most equitable and most ted to the Michigan he Michigan Economic resilient economy in the country,” said Josh Strategic Fund (MSF) Development Corp. is making a Hundt, executive vice president and chief busi- board in December new push to place Michigan man- ness development officer with the MEDC. focused on turning ufacturers ahead of the curve on “We launched a signature initiative specifi- manufacturers from Industry 4.0 technology. cally tied to advanced manufacturing that we all corners of the TThe MEDC has formed partnerships with Troy- knew we needed to win as a state in order for us state on to the idea of based Industry 4.0 knowledge center Automation to continue to be a leading state for businesses Industry 4.0 technol- Coast Hundt Kelly Lyscas Alley and the Michigan Manufacturing to choose to locate and be able to to grow,” he ogy and practices. Technology Center (MMTC) in addition to devot- added. “We recognize that making investments The MEDC sought $2 million from the MSF to Cities, townships, counties, business advo- ing $3 million to fund two Industry 4.0-focused in Industry 4.0 technology is what will allow our solicit regional grant proposals from eligible orga- cates, economic development organizations proposals that were submitted to state officials small to medium sized manufacturers to be in nizations that were interested in increasing Industry and other entities were eligible to submit these at the end of 2020. front of other states.” 4.0 awareness and readiness for local manufacturers. grant proposals. In the coming months, a Joint Evaluation Committee will bring the recommen- dations for award winners to the MSF board for final approval. “We’re looking for an opportunity to comple- ment the work that MMTC and Automation Alley are doing to ensure that we recognize that per- 2021 Webinar Series haps there are different needs in different cor- ners of the state and we can have additional pro- gramming and support at a highly localized level through these regional grants,” Hundt said. Another component to the MEDC’s Industry 4.0 effort is a $1 million marketing push exe- People, Process, Product: cuted through global advertising agency McCann Erickson.

3P Approach to Total Strategic partners The MEDC has joined forces with two organiza- tions that have long been on the frontlines of con- Manufacturing Management necting statewide manufacturers with Industry 4.0 information and solutions. Automation Alley isn’t just Michigan’s Industry 4.0 knowledge center, but also is desig- nated by the World Economic Forum as one of only 12 Advanced Manufacturing Hubs in the world and the only one in North America. Normally carrying a membership that hovers PROCESS: around 1,000 manufacturers — most of which are concentrated in the southeast portion of the state — Automation Alley is now extending free mem- berships to all 12,000 manufacturers throughout Michigan as part of its partnership with the MEDC. LEAN 3P “We’ve always had 1,000 members, give or take, but now we’re putting it on massive steroids where anyone in the state that is a manufacturer now gets this free membership and access to all of our proprietary content,” May 11, 2021 said Tom Kelly, executive director and CEO of Automation Alley. In this first of two webinars on process, we’ll address Lean 3P (Production, This arsenal of content contains everything from white papers on various Industry 4.0 con- Preparation and Process), an event-driven process for developing new cepts to seminars and roundtables. Kelly said that products concurrently with the operation that will produce it. membership officially opened to all manufactur- ers in October, but the organization is only now making a push to raise awareness. Kelly said that putting state dollars behind the Industry 4.0 effort is crucial. He pointed to the fact that all countries competing for manufacturing Brought to you by: leadership have Industry 4.0 policies set in place at a federal level, creating a race to digitize. “If I’m a small manufacturer, I’m focused every day, hair on fire, on getting product out the door — I don’t have time to focus on all this stuff,” Kelly said. “What the state resources bring is a way for us to reach all these manufacturers and really help them understand what financial choices they need to make to keep up with the pace of change. It’s really existential for manufacturers.”

4 APRIL 12, 2021 / MiBiz Visit www.mibiz.com Coming Soon! DIVERSITY/ EQUITY/ INCLUSION

MAY 10, 2021 While Michigan’s business community has been taking steps over the past few years to push for policies that encourage diversity and support a culture of equity and inclusion, the game changed in 2020. In this 2021 focus, we’ll spotlight how companies are accelerating their efforts and highlight best practices — and common mistakes — that companies make when it comes to building a diverse, equitable workplace.

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“We recognize that making make technological upgrades to existing equip- ment instead of having to invest in new equipment. investments in Industry The assessments also highlight how eliminating waste through lean manufacturing processes can FOOD-GRADE OR PHARMACEUTICAL, 4.0 technology is what will ultimately fund upgrades. allow our small to medium “Most people think there are a lot of dollars involved with upgrading to this technology,” WE ARE CERTIFIED TO MEET ALL YOUR sized manufacturers to be said Bob Lyscas, COO of MMTC. “(The assess- in front of other states.” ment) shows them the lean waste that is sitting WELDING AND FABRICATION NEEDS! out there that can finance putting technology in place. You can also spin it in a way that (Industry — JOSH HUNDT 4.0) is benefiting everyone, including the fact that EVP and Chief Business Development Officer, it upskills workers.” Michigan Economic Development Corp. Targeting small companies These latest efforts zero in on small to medium sized manufacturers for a reason. The MEDC’s The Michigan Manufacturing Technology Hundt noted that just 13 percent of small to Center — with headquarters in Plymouth and medium sized manufacturers across the coun- bureaus located throughout the state, includ- try have implemented Industry 4.0 technologies. ing in Grand Rapids — is also a heavily utilized Kelly from Automation Alley called the resource for advanced manufacturing technol- Industry 4.0 movement crucial to survival for ogy and processes. small and medium manufacturers. Industry 4.0 assessments are one of the many “This program was really derived to educate resources that the MMTC provides for manufac- the smalls and help them come on board with the turers and one of the more effective methods of change,” Kelly said. “The Fords and GMs of the getting manufacturers to engage with Industry world are smart and have a lot of money. They’ll 4.0 ideas and concepts. figure it out on their own — they don’t need our These assessments are free through the state help necessarily. But they do need our help to get and require two to three hours of company time the small supply chain to come along with them to complete. otherwise they’ll just go around them.” “They spend maybe an hour or hour and The MEDC and its partnering organizations a half to collect data, and we analyze it, walk are focused on getting 50 percent of small to the shop floor, ask some more questions and medium sized manufacturers in Michigan ready that’s really what we do … and the state picks to adopt Industry 4.0 technology by 2025. up the tab,” said MMTC President Mike Coast. “When you take a look at the small manufac- “These are feeders to get companies to buy turing companies, they’re really 90 percent of all into (Industry 4.0). At the end we say here’s the manufacturers in the state of Michigan and that’s report, and a summary that tells them this is a stat that runs across the entire nation,” Coast EASTMUSKEGON.COM what they need to get going.” said. “That’s where the backbone of the entire MMTC often reveals that manufacturers can industry is.”

Visit www.mibiz.com MiBiz / APRIL 12, 2021 5 REAL ESTATE & DEVELOPMENT

Financial health of malls a mixed bag as some consider reusing vacant space

By KATE CARLSON | MiBiz company, Brookfield Property Partners LP, which [email protected] bought RiverTown Crossings in 2018. This comes after Brookfield Property Partners laid off 20 per- s national trends show a rapid decline cent of its roughly 2,000 retail division employees in the value of shopping malls, West in September. Michigan commercial real estate A Brookfield spokesperson based in Chicago experts are most worried about could not be reached for comment. the fate of RiverTown Crossings in Even though Woodland Mall owner AGrandville. Pennsylvania Real Estate Investment Trust According to a Bloomberg analysis in March, U.S. (PREIT) filed for Chapter 11 bankruptcy in mall values declined 60 percent after 2020 apprais- November 2020, the Kentwood shopping center is RiverTown Crossings in Grandville faces unique challenges that could make it difficult to repurpose als. Aditionally, few buyers show a willingness to best-positioned out of the major malls in the area, vacancies, commercial real estate experts say. COURTESY PHOTO take risks on aging shopping centers as the popular- Ansara said. ity of online shopping continues to grow. “They have the top quality and top tier stores “All of the retail around RiverTown seems to be “We’re fairly protected “We’re fairly protected in West Michigan from when you look at the tenants. (There are) a lot of good doing OK and people came out fine,” Ansara said. devaluations of malls. The only one I’d be concerned national retailers in (Woodland Mall),” Ansara said. “Retail specifically is still doing OK, mom and pop in West Michigan from about is RiverTown,” said Mark Ansara, manag- Overall, Ansara said most customers are return- stores are doing fine and are out there looking for ing principal and senior vice president of retail at ing to malls and “the traffic is still there.” The rate at their next store. Activity is definitely lower but deals devaluations of malls. The Advantage Commercial Real Estate Services LLC. which tenants are paying rent is also improving as are still getting done.” only one I’d be concerned He specifically noted the closed Sears and Younkers companies have weathered the pandemic and states The North Face opened in a new Woodland Mall at RiverTown as “two big vacant anchor stores.” are starting to open back up, Ansara said. expansion while Whole Foods Market has signed about is RiverTown.” Toronto-based Brookfield Asset Management RiverTown has more vacancies than Woodland, a lease at a nearby property because the shopping Inc. recently announced plans to acquire the shares including two big anchor stores that are especially center is seen as a strong anchor in the area, said — MARK ANSARA it doesn’t already own in the real estate arm of its hard to fill for a two-story mall, Ansara said. Jeff Tucker, senior managing director of brokerage Managing Principal and Senior Vice and principal at Bradley Co. President of Retail, Advantage Commercial “Of the two (malls), if a store is going to relocate, it will go to Woodland,” Tucker said. “Over time the Real Estate Services LLC Apple Store and Urban Outfitters have raised the values for their other tenants.” However, Tucker said the health of anchor stores at malls more generally is in question. Anchor stores Despite malls’ struggles in recent years and dur- have been especially hard-hit by online shopping, ing the pandemic, Murray said it remains valuable but it remains unclear whether these spaces could to maintain and keep them open. potentially be repurposed for something like hous- “There are some malls that no matter what hap- ing or as a distribution center, Tucker said. pens they will go through a transformation or will change uses,” Murray said. “The Lakes Mall is a per- Reusing space fect example of people looking to use that mall for different uses just because of where it is positioned Developers are discussing “all kinds of different on the lakeshore.” plans” to redevelop vacant spaces at RiverTown, which is a common trend at most malls right now, Brookfield sells Lansing Mall an eclectic Grand Rapids shop that offers hundreds of loose leaf teas, plus said Mike Murray, senior vice president at Advantage organic herbs, specialty consumables, and fairly traded global handcrafts Commercial Real Estate Services. Brookfield Property Partners also owns The “Redevelopment in some fashion is being Crossroads in Portage and Grand Traverse Mall in has acquired a new e-commerce website looked at in malls, starting with the bigger box Traverse City, and sold the Lansing Mall in March to stores,” Murray said. “In greater Western Michigan, New York-based Kohan Retail Investment Group. globalinfusion.net we’re still low on available space, especially large The Lansing Mall reportedly sold for $9.2 million in space, and that’s one thing these malls offer.” early March. The undersigned served as exclusive web development adviser Securing agreements with anchor stores and Kohan Real Estate Investment Group also owns to Global Infusion sometimes the local municipality is a key obstacle Adrian Mall, Birchwood Mall in Fort Gratiot, Eastland for malls as they pursue non-retail or non-tradi- Center in Harper Woods, Midland Mall, Westwood tional uses for mall spaces, Murray said. Mall in Marquette, and Westwood Mall in Jackson. RiverTown has the additional roadblock of being Located at 5330 West Saginaw Highway, the a two-story mall, which requires replacement uses Lansing Mall currently has 48 tenants, includ- to either use all of the space or half of it. Plus, a sec- ing JCPenney, operating in its 709,925 square feet ond-story tenant is less visible and accessible to cus- of retail space, according to the property listing. tomers, Murray said. More than 240,000 square feet of the mall is cur- The Lakes Mall in Fruitport Township is a possible rently vacant, with 60 percent of the space occupied. candidate for redeveloping some of its vacant spaces Tenants generate a net operating income of $1.2 mil- Affordable, common-sense websites. into non-traditional uses, Murray said. The mall has lion annually, according to the listing. two vacant anchor stores that used to house Sears and “We’re hopeful that this brings some new energy Younkers. Some malls are putting in hotels or grocery and excitement to the mall and the entire corridor,” stores in their vacant anchor spaces, he added. Delta Township Manager Brian Reed told MiBiz. “(The Lakes Mall) is not as centrally located as “We’re eager to meet with the new ownership and Woodland and RiverTown, but it is pretty close to hear their plans. We’re hoping to continue to work Lake Michigan. They have some tougher challenges together and provide any assistance to their plans there I feel,” Murray said. to make improvements.”

6 APRIL 12, 2021 / MiBiz Visit www.mibiz.com New fund aims to raise $200M for small industrial properties, distribution centers

By MARK SANCHEZ | MiBiz “We understand the true nature of real estate “We’re taking advantage of In a February report, Chicago-based Jones Lang [email protected] and how to add value to it, and we thought it was LaSalle IP Inc. (JLL) said industrial commercial real something that we should offer,” Martin said. “We the proliferation of a regional estate “looks bright” in 2021, especially in the sub- EAST LANSING — An East Lansing real estate are in the process of looking at a number of different distribution or model for the category for multi-use logistics facilities. Rents for investment firm looks to raise $200 million to invest opportunities. I would say in the next few months supply chain that is really multi-use logistics have grown more than 54 percent in industrial logistics facilities in the Midwest and we would be looking to acquire our first properties.” in the last decade and nearly 21 percent since 2017, southeastern U.S. Riverstone Investment Fund began raising going to focus on the delivery “outpacing the national average for the broader Riverstone Capital Partners’ Riverstone capital a few months ago. The investment fund in of products to consumers on a industrial market,” according to John Huguenard, Investment Fund LP would target investments for November filed a document with the U.S. Securities senior managing director and co-head of JLL’s acquiring smaller warehouses and distribution cen- and Exchange Commission indicating plans to raise timely basis.” Industrial Capital Markets group. ters. The fund would hold the portfolio of properties $200 million from investors. “This sub-class has huge potential upside on for up to eight years before selling, said Riverstone Martin declined to say how much the fund has — CUTLER MARTIN rent growth driven by low vacancy and limited new Capital Partners Managing secured to date from investors, other than “it’s going supply,” Huguenard said in a February news release. Managing Partner, Partner Cutler Martin. well.” The fund has connected with high net worth The surge in e-commerce during the COVID-19 Riverstone Capital Partners Martin Commercial individuals, institutional investors and family offices pandemic is among the expected growth drivers and Properties — a commer- across the state, he said. has increased demand for smaller, industrial logis- cial real estate firm in East tics facilities in population centers. Lansing led by Martin’s father, Strong, growing market “We’re taking advantage of the proliferation of a Van Martin — will manage advantage of being able to source this product,” regional distribution or model for the supply chain the properties in which the In forming Riverstone Investment Fund, the Martins Martin said. that is really going to focus on the delivery of prod- Riverstone Investment Fund and partner Frank Freund at Riverstone Capital A CBRE Group Inc. outlook in November pro- ucts to consumers on a timely basis,” Martin said. invests. The fund will deploy Partners look to tap into a strong and growing indus- jected that the U.S. industrial real estate market would “As we’ve seen through COVID, a number of peo- Martin a substantial amount of the trial real estate market for logistics centers. “flourish” in 2021 “with low vacancy rates, record-high ples’ habits have changed. More people are looking capital over the next year, depending on market Outlooks forecast a need for 1 billion to 1.5 bil- rental rates, and robust development and a return to to order online than they are to walk down to the opportunities, Cutler Martin said. lion more square feet of logistics space over the next pre-COVID levels of absorption gains.” store and buy their household items.” The Martins pursued forming the new invest- five years. The U.S. presently has about 10 billion “CBRE anticipates nearly 250 million square feet of CBRE’s 2021 outlook noted that the surge in online ment fund “to work with the clients that we’ve built square feet of logistics space, he said. industrial and logistics space to be absorbed in 2021, sales in the last year “has put pressure on retailers, relationships (with) to offer essentially another ser- “So, that’s just a huge increase in demand more than the previous five-year annual average of 211 wholesalers and third-party logistics companies to vice to them with what we have been doing for so for this type of product and we feel that aligning million square feet,” according to the outlook . The firm reach consumers while lowering transportation costs.” many years” in property acquisitions, sales, man- with those tailwinds is a strategic advantage for expects construction completions to grow by 29 percent That could drive an acceleration to convert retail build- agement and leasing, Martin said. us. With our expertise, we think we also have an this year from 2020, “and rents will continue to increase.” ings into logistics facilities, according to CBRE.

Visit www.mibiz.com MiBiz / APRIL 12, 2021 7 HEALTH BIZ

Spectrum Health financials steady through pandemic as outlook shifts for hospitals

By MARK SANCHEZ | MiBiz all of my peers were draw- [email protected] ing on lines of credit to get ready for what we thought GRAND RAPIDS — Spectrum Health main- was going to be an absolute tained a solid financial performance for 2020 as once-in-a-lifetime financial the COVID-19 pandemic stressed operating mar- disaster, we saw our volumes gins at hospitals nationwide. plummet and our profitabil- The Grand Rapids-based health system ity plummet in March and recorded operating income of $295.5 million April.” for the year on nearly $8.3 billion in patient rev- Cox added that Spectrum Cox enues for a 3.6 percent operating margin. The was “projecting to have a amount includes $188.9 million in operating really bad year, and if you income earned by Priority Health in 2020, plus a would have told me back in $24.8 million operating loss at Spectrum Health March (2020) that we were Lakeland in St. Joseph. going to end the year at a 3.6 The 2020 operating margin was close to what percent operating margin, Spectrum Health budgeted going into the year and which is very close to our followed expectations last spring for a difficult prior year and really close to year financially after the COVID-19 pandemic hit, our budget, I wouldn’t have leading the state to impose restrictions on non- believed you. Peters emergency care that resulted in the cancelation “We don’t have a negative of elective surgeries, procedures, diagnostic tests impact because of COVID like some other sys- and physician visits. tems may have, so we can continue to implement “We are very pleased with how we ended the our strategic plan (and) our capital plan, invest year,” said Spectrum Health CFO Matt Cox. “If in our patient care and continue to invest in the you think about back in February or March when things that we need to do to continue to be a solid organization.” Cox credits strong cost control and making Spectrum Health’s Butterworth Hospital along Grand Rapids’ Medical Mile. COURTESY PHOTO ADVERTISEMENT up much of the lost surgical volumes later in the year for generating the positive results for 2020, COVID-related expenses in the present case surge, Small, rural hospitals that remain independent UPCOMING EVENTS FOR as well as the income from Priority Health. plus administering vaccines. Spectrum Health and operate on thin margins may have to decide In April 2020, Spectrum issued an undisclosed has until July 1 to use the funding or return it to whether to pursue a partnership with a larger PEOPLE FIRST ECONOMY number of layoffs in mostly non-clinical positions, the federal government, although Cox expects health system, Peters said. cut executive pay by 30 percent and 40 percent for most of the money to get spent. “It has certainly tested the financial viability CEO Tina Freese Decker, and temporarily halted Patient volumes remain lower in some areas of those hospitals that were in a precarious posi- Ben & Jerry’s: A Business contributions to employee retirement accounts than pre-pandemic levels “and we think that those tion already,” he said, adding that hospitals that Built on Putting People First from July through December. Across the region, volumes are going to be down for the long term. “might have been on the fence” about continuing April 19 at 9:00am Spectrum employs more than 31,000 people but We don’t see them necessarily coming back,” independently for five to 10 years may have to start the company still won’t say how many were laid Cox said. ER visits, for instance, are down about thinking about collaboration. off during the pandemic. 10 percent. About 30 hospitals in Michigan remain inde- In this dialogue, Milinda Spectrum Health ended 2020 with an even pendent, Peters said. Ysasi, Grand Rapids City better cash position than it started the year. The National outlook, consolidation A Michigan Health & Hospital Association Commissioner and President health system had 246.3 days of cash on hand report in July estimated that hospitals in the state as of Dec. 31, an increase of 16.1 days from a Nationwide, the American Hospital Association took a $1.1 billion financial hit last spring from of The Source will speak year earlier. (AHA) estimates that U.S. hospitals combined the COVID-19 pandemic and that related costs with Dave Rapaport, Global Spectrum Health’s bottom line grew fur- would lose an estimated $323.1 billion for 2020 would continue to grow. The net financial effect Social Mission Officer for ther with the receipt of $116.9 million in federal and that half could record negative operating mar- on Michigan hospitals resulted in $3.2 billion in assistance through the CARES Act to cover costs gins by the end of the year. revenue lost during the several weeks hospitals Ben & Jerry’s, about the role related to the pandemic. Another $375 million in An analysis conducted for the AHA by Chicago- were unable to perform non-essential procedures of business in addressing net investment income, minus a number of items based Kaufman, Hall & Associates LLC estimated and surgeries, plus $440 million in emergency social inequities, dismantling such as losses on interest rate swaps and pension losses would continue into 2021, with 39 percent of expenses, according to the MHA. settlements, drove Spectrum Heath to $714.1 mil- U.S. hospitals operating in the red under the best- Several hospitals continue to report reduced systems of oppression, and lion in revenue over expenses in 2020, according to case scenario. Under a pessimistic scenario, half inpatient and outpatient volumes as many indi- fostering initiatives that an audited financial report posted online. of the nation’s hospitals would operate at a loss viduals “are still hesitant to come to the hospital create economic opportunity. The federal funding enabled Spectrum this year with a median margin down 80 percent for elective care,” Peters said. “They’re waiting Health to take a more aggressive approach in from pre-pandemic levels. until that day when they feel the lion’s share of responding to the pandemic as revenue fell last Prior to the pandemic, hospitals operated on Michiganders have been vaccinated and positivity VISIT LOCALFIRST.COM spring. The health system used the federal funds a “very thin” margin that averaged 3.5 percent, rates and other metrics are such that they believe AND GOODFOR.ORG to buy dozens of ventilators and other equip- a level that Kaufman, Hall & Associates said was the coast is now clear.” TO REGISTER OR ment, millions of gloves, N-95 face masks and “only minimally sufficient for many hospitals to Peters credits federal aid to hospitals through SCAN THE QR CODE BELOW other personal protection equipment for medi- maintain their facilities and operations, while the CARES Act with helping to shore up finances cal staff, plus plexiglass barriers to separate investing modestly to improve their capabilities at some hospitals and offset the cost of PPE, addi- workspaces. to meet community needs.” tional equipment, lost volumes, administering “It gave us the ability to make investments Brian Peters, CEO of the Michigan Health & vaccines and other financial effects from the quickly,” he said. “We basically took our ware- Hospital Association, believes that even with the pandemic. houses and stacked them full of PPE to help get federal aid provided to hospitals, the financial toll The federal money was “a life saver for a us through COVID.” from the pandemic and lost volumes will acceler- number of our hospitals,” Peters said. “That Of the federal CARES Act funding, Spectrum ate a consolidation trend that’s been occurring helped to keep the doors open for some of our Health has another $66 million to use in 2021 for for years. members.”

8 APRIL 12, 2021 / MiBiz Visit www.mibiz.com Open-heart surgery partnership could spur more collaboration between Metro, Mercy

By MARK SANCHEZ | MiBiz [email protected]

new partnership for open-heart surgery could provide a broader base for Metro Health-University of Michigan Health and Mercy Health to further collabo- rate on specialized medical care in the Ayears ahead. Plans for the Cardiovascular Network of West Michigan came together as Metro Health sought state certificate of need (CON) approval to perform heart surgery at Metro Health Hospital in Wyoming. The state approved the CON request in late March, enabling Metro Health to launch a competing open- heart surgery program next spring in the Grand Rapids metro area. The Cardiovascular Network of West Michigan is the second major partnership between Metro Health and Mercy Health. The partnership also includes Michigan Medicine, the University of Michigan’s academic medical center in Ann Arbor that’s home to the Frankel Cardiovascular Center. The health systems previously formed a similar Metro Health Hospital in Wyoming will soon add open-heart surgery under a partnership with Mercy Health that will also bring competition with Spectrum venture, the Cancer Network of West Michigan, last Health in the West Michigan market. COURTESY PHOTO year for oncology. Although additional part- “Hopefully this is just The partnership for the Cardiovascular Network in Southwest Michigan at Ascension Borgess nerships aren’t presently of West Michigan will create “truly a world-class car- Hospital and Bronson Methodist Hospital in under consideration for the the foundation for us to diovascular program” that’s “going to be a game- Kalamazoo, and in St. Joseph at Spectrum Health two health systems, Metro improve general care in the changer,” Hahn said. Lakeland Hospital. Health CEO Peter Hahn sees In its application to the Michigan Department Hahn estimates that Metro Health, which had potential for further collabo- West Michigan region.” of Health and Human Services, Metro Health fore- steadily built cardiovascular care for years before ration. That may not occur for casted doing 311 heart surgeries annually that pursuing approval to do open-heart surgery, refers some time, as Metro and Mercy would include coronary artery bypass, cardiac about 200 cardiac patients annually for heart sur- for now focus on their cancer — DR. MATT BIERSACK valve repair or replacement, and repairing birth gery, mostly to Spectrum Health. Biersack and cardiovascular partner- Interim President and Chief Medical Officer, defects of the heart. “That is probably an underestimation because ships, Hahn said. Mercy Health Saint Mary’s The partnership through a joint operating there were patients that didn’t come to us because “Could there be other agreement will allow Metro, Mercy and Michigan we didn’t have open-heart capabilities at the time,” programs that we collabo- Medicine to share expertise and medical staff. The he said. rate on? Absolutely. We’re three will work out a final operating agreement in The partnership also keeps Metro Health and early into cancer and now Mercy Health Muskegon also staffs its open- the coming months. Mercy Health from competing for heart patients. just getting (cardiovascular) heart surgery program with Michigan Medicine sur- In West Michigan, open-heart surgery is now The two health systems instead will operate a joint up and running. I suspect it geons. Michigan Medicine physicians also provide performed at Spectrum Health in downtown program that will “be site agnostic,” Hahn said. “It’s may be a while before we do electrophysiology — a test to diagnose abnormal Grand Rapids and Mercy Health Muskegon, plus going to be one program.” the next one,” Hahn said. “I heartbeats or arrhythmia — at Metro Health, Mercy Hahn want to see this one take off, Health Muskegon and Mercy Health Saint Mary’s. and I really want to see cancer “At this point in time, these are the programs truly make a meaningful difference to our com- to focus on. But, hopefully, this is just the foun- munity. ‘Let’s get two successful ones under the dation for us to improve general care in the West

OCTOBER 15, 2018 VOL. 30 • NO. 26 belt and then really look at another’ is sort of the Michigan region,” Biersack said. “Our relationship SERVING WESTERN MICHIGAN BUSINESS SINCE 1988 way I’m thinking.” with Michigan Medicine and Metro and Mercy is Promote your company Neurosciences is “a potential possibility” and limited to oncology and cardiovascular care, but “certainly one we would probably look at next” once we’ll see where these relationships take us. If there with reprints

Stephen Waterbury, Warner Norcross + Judd LLP. PHOTO: KATY BATDORFF the new cardiovascular network and cancer partner- are other opportunities we identify that will help A focus on serving others serves Waterbury

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

Visit www.mibiz.com MiBiz / APRIL 12, 2021 9 VALUATION ADVISORY SERVICES EXCLUSIVELY FOR ESOP TRUSTEES

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10 APRIL 12, 2021 / MiBiz Visit www.mibiz.com FOCUS: DRINKING ECONOMY

— EXECUTIVE ROUNDTABLE — Craft beverage producers adapt marketing approaches, deal with supply chain headaches as pandemic drags on

By JAYSON BUSSA | MiBiz The relationship with customers is an important Kim Collins, Guardian Brewing Co. Josh Cook, Green Door Distilling Co. Brandon Finnie, Vision ESOP [email protected] one for these local, independent establishments that Valuation LLC rely on ties to the community as a key differentiator he COVID-19 pandemic and accompa- from chain restaurants and national and regional nying shutdowns of bars, brewpubs, tap- beverage brands. rooms and tasting rooms had an undeni- This crucial link between the local companies ably negative effect on West Michigan craft and their customers became apparent when the beverage makers and their balance sheets. pandemic first struck and “shop, eat and drink local” TAs brewers and spirits makers now begin to turn became the rallying cry for communities all over West their sights to the post-pandemic era, they expect Michigan to preserve homegrown establishments. patrons may take their time to return in droves. While craft beverage producers certainly appre- “We have a percentage of people who are still ciate that sentiment, the industry members MiBiz scared to go out,” said David Ringler, founder of spoke with agreed that the local movement wasn’t Cedar Springs Brewing Co. “There is a percentage necessarily effective in driving new customers to of people who are still pissed at you for enforcing the breweries and tasting rooms. Josh Rake, Rake Beer Project LLC rules. That’s going to make everyone’s pool smaller.” “It reinforced the people that were already doing David Ringler, Cedar Springs Brian Tennis, Hop Alliance Brewing Co. Ringler recently joined five fellow members of it and already aware and proud to support their local COURTESY PHOTOS the craft beverage industry for an executive round- small businesses, but I don’t think we gained a single table hosted by MiBiz and sponsored by Wyoming- customer from that push,” said Cook, pointing to the based Vision ESOP Valuation LLC. persistently long lines at drive-thrus as proof that most establishing genuine connections is the most effec- said. “I don’t want to book a bunch of gigs, get the While participants swapped war stories on how people continue to opt for convenience over support- tive form of marketing. musicians all excited” and then have to cancel. they have muddled through the pandemic and the ing local businesses throughout the pandemic. With taprooms and tasting rooms still under bruises it has left on their businesses, much of the Muskegon-based Rake Beer Project LLC has state restrictions and all major festivals and other Multiple headaches discussion focused on community support during operated almost entirely during the pandemic, public events shut down over the last year, craft bev- the turbulent time and what it will take to achieve a having opened its doors right before COVID-19 hit. erage producers who have long relied on face-to- Aside from the challenged dynamics with their level of pre-pandemic normalcy. Owner and head brewer Josh Rake said he noticed face interactions with customers have had to modify customers, the industry also has plenty of other local support comes in waves. Whenever new their approach to communicating. issues to contend with as it continues to tread water Still not normal restrictions were placed on the hospitality indus- Most of them pivoted to social media to stay top through the pandemic. try, patrons would respond with an influx of support. of mind with their customers. Supply chain issues have plagued virtually every For the last year, the pandemic has driven a wedge “At the very beginning, it seemed to be a huge “For us, that was a key thing,” Ringler said. industry, including the craft beverage sector, where between local craft beverage makers and their patrons. hug of local support, but not many new customers “Being in a small community, we really expanded shortages are manifesting themselves in the form of When brewpubs, taprooms and tasting rooms weren’t came in. The people who have always supported us what we were doing (on social media). We actually higher prices and longer lead times. shut down completely, they have been hobbled with were here,” he said. “That’s been our biggest thing, did a little talk show thing for several weeks where Cook, whose Green Door Distilling packages its capacity and other restrictions, which led industry to figure out how to ride those waves and take the we had other restaurateurs, bloggers and staff (on) products for statewide distribution, highlighted an professionals to wonder if these barriers will cause highs from the waves.” in order to keep communicating.” acute supply chain challenge with glass bottles. irreparable harm to their customer base. Many breweries nationwide met their demise Brian Tennis, founder and president of Hop “We’ve had dramatic issues in glass,” Cook said. “You still have a large chunk of the population during the pandemic. Boulder, Colo.-based industry Alliance, an Omena-based commercial hop farm “Our main packaging for our 750 milliliter bottles that you probably lost as customers for one rea- trade group the Brewers Association tracked 343 and broker, brings a different perspective as a busi- has been catastrophic.” son or another,” said Josh Cook, founder and head craft brewery closures throughout the country in ness that supplies the industry. Communication Cook said that the glass suppliers Green Door of Kalamazoo-based Green Door Distilling Co. 2020, and just 716 new openings, which was off by with clients was still vital for a company in his works with have all picked up contracts to make vac- “Whether it’s because you weren’t open when they about a third compared to recent years. Retail sales position. cine vials. Lead times skyrocketed from typical eight wanted to come by or you had restrictions that they in the $22.2 billion independent craft beer sector “We have definitely done a much better job of to 10 weeks to now 20 to 25 weeks. didn’t want to abide by or it just became too compli- declined 22 percent compared to 2019, while vol- reaching out to Michigan breweries, whether that “How can you plan for that? You really can’t,” cated to order online and you lost people because ume fell 9 percent, ending an extended period of was through emails or direct marketing,” Tennis Cook said. the convenience is gone, it’s really hard to say what growth and expansion for the industry. said. “Our sales to Michigan brewers have been up Tennis from the Hop Alliance also noted rising the next year will look like.” Even so, the 8,764 craft breweries that operated 25 percent year-over-year. We’re definitely seeing shipping costs and increased lead times, which in The term “COVID fatigue” has worked its way during 2020 set the highest number on record. more support from Michigan brewers for Michigan turn affects all the company’s brewery client base. into the public lexicon lately to refer to people who Over the last year, many breweries have stayed ingredients.” However, it’s not all doom and gloom in are burned out on abiding by sometimes-daunting afloat in part because of state and federal grant fund- The industry also waits to see if this summer will the craft beverage industry. Companies have or inconvenient restrictions placed on everyday life. ing and low-interest loans. feature festivals and similar events. While many craft found silver linings and seized on opportunities After a year of COVID-19, craft beverage producers Kim Collins, owner, co-founder and head brewer beverage producers are optimistic that some sem- throughout the pandemic. For new entrants look- that operate taprooms and bars are starting to notice at Saugatuck-based Guardian Brewing Co., noticed blance of normalcy will return in 2021, they are not ing to break into the industry, the time is right as that same phenomenon within their establishments. that some people are only conscious of the needs of yet banking on it. these businesses continue scouring the market “I think you’re seeing a lot of customers that are local establishments when it’s too late. “I’m still really hesitant to start directing any of for new talent. really fed up — I know ‘Karen’ is the popular term “(The local first movement) reinforced local for our money toward getting ready for festivals and “Anyone wanting to get in the industry, man, for it,” Ringler said. “We are getting people that have people who already do local,” said Collins. “For folks stuff like that,” Rake said. “I think it’s all something is there not a better time?” Collins said, noting the expectations that it’s normal again and it is not that don’t always do local, I think it only hits when we hope is going to happen but it’s really hard to tell. the industry-wide focus to hire more women and normal. We’re still at 50 percent if you have a res- their favorite places have closed.” I don’t know if it’s a good thing to invest in.” diverse candidates. “We are all hiring. You can taurant, and in some cases it’s less. We have skel- Collins of Guardian Brewing echoed that get in the front of the house. You might be able eton crews and we can’t be open regular hours — Communication ‘key’ sentiment. to get into the brewery. If people are sitting at we don’t have people to fill those hours. You can’t “We usually jump all in and book live music home reading this, and you think, ‘Maybe I want get a lot of supply, whether it’s a food product or a Most craft beverage producers would agree that every single weekend (during the summer) and we to be in the craft beer industry,’ there is no bet- manufacturing product.” getting in front of customers with product and just haven’t decided to pull the trigger on that,” she ter time.”

Visit www.mibiz.com MiBiz / APRIL 12, 2021 11 FOCUS: DRINKING ECONOMY

Once existing breweries figured out that their busi- Craft beverage suppliers ness model was shifting to mostly selling beer to-go, at that point, they needed to produce more beer.” Breimayer said that Psycho Brew’s existing cli- ents started to lean on his company for additional see highs and lows equipment as they boosted production. Some of those clients have even taken measures to diversify their product offerings. during the pandemic “We have definitely seen more demand for just wanting to buy more fermenting and bright tanks,” Breimayer said. “We have even had more By JAYSON BUSSA | MiBiz Oktober, which also supplies bulk orders of alu- requests for craft stills in order to produce spir- [email protected] minum cans for its clients, was able to sidestep pains its. (I’m) noticing more existing breweries trying brought on by a nationwide aluminum can shortage to diversify by adding spirits to their repertoire of ver the course of the COVID-19 pan- last year. Other than indefinitely running out of 8-ounce products.” demic, Dennis Grumm’s brand of can stubby cans, the shortage did not touch Oktober. As for disruptions to his own business, Breimayer seamers went from a luxury amenity to “We have a diverse supply chain of cans. We said he hasn’t had a lot of trouble procuring the a requirement for many craft beverage have several places we could source them from,” needed materials for his systems. However, he did producers. Grumm said. note that prices and lead times for stainless steel OGrumm is the founder and CEO of Grand have skyrocketed as of late. Currently, Psycho Brew Rapids-based Oktober LLC, which manufactures Ramping up production has been able to absorb the added cost and has machines that allow establishments to can all types extended its lead times with clients to accommo- of beverages onsite. Chris Breimayer’s Greenville-based Psycho Brew date for the changes. When the pandemic shut LLC supplies a specific segment of the craft bever- “We haven’t really changed our business plan Grand Rapids-based Oktober LLC has down taprooms, tasting rooms age industry, targeting nano brewers with its prod- much,” Breimayer said. “We have been lucky experienced a spike in demand for its can and all other forms of onsite uct offering. enough to do business over the years without seamers during the pandemic. COURTESY PHOTO consumption of food and bev- Psycho Brew sells complete brewing systems any debt and we have always made sure we had erage, Grumm saw skyrocket- and also designs custom systems for brewers look- a good nest egg to fall back on in case the mar- have consistent web activity but people haven’t ing demand for his seamers. ing to start with a system under 10 barrels. These ket decided to fall. Never in a million years did been pulling the trigger.” “We saw double the interest are typically the startups that are transitioning from I ever dream it would be a pandemic that would Culver and his company have marketed what for a long time and had to go homebrewing to the commercial space. challenge that.” is a fairly versatile product to mobile bars, which through ramping up produc- “We feel the days of brewpubs starting out with have been growing in popularity as the pandemic tion to meet that demand and larger than a 10 (barrel) brewhouse are over or at wears on. Culver ‘Bobbing and weaving’ making sure our supply chain least winding down,” said Breimayer, who runs the “It’s very versatile and super applicable to for cans was solid, which at times it was not,” said business with his brother, Pat. “New startups are However, not all craft beverage suppliers have found mobile bars,” Culver said. “But, it’s always been so Grumm. “So, we had to put a lot of extra work into more gearing toward smaller compact brewing good fortunes during the turbulent times of the easy for us to sell jockey boxes to breweries because that. It’s been a humongous increase in interest.” equipment, which is what we specialize in.” pandemic. Grand Rapids-based craft beer equip- they know what they’re looking at, they know how The volatility experienced by Oktober is shared The COVID-19 pandemic has created a less- ment maker Coldbreak features a signature prod- it operates and they can see with their eyes that it’s by the variety of companies that supply the craft bev- than-ideal climate for startup breweries, but they uct line that has stalled out under the current market far superior to prior existing products. With mobile erage space — from metal workers who build stills weren’t non-existent. conditions. bars, we have to teach that person how to use a and brewing tanks to packaging companies that According to data from nationwide indus- Coldbreak manufactures jockey boxes, which jockey box and what a jockey box is and even how supply aluminum cans and glass bottles. try trade group the Brewers allow breweries to go mobile with to tap a keg.” For Oktober, the pandemic-induced changes to Association, the U.S. saw 716 new their draft beer — ideal for large Still, Coldbreak has been propped up by its prod- the craft beverage industry ushered in a prosper- breweries open during 2020. This FOOD BIZ tasting events such as beer festivals. uct diversity. While jockey and jumper boxes might ous stretch, one in which the company brought on was a 30 percent drop in new brew- NEWS The pandemic has wiped out be its marquee products, the company also man- around 10 additional employees and experienced ery openings from 2019, but only half — almost every large event over the ufactures home brewing equipment for itself and unprecedented sales. of this drop was attributed to COVID. Sponsored by: past year, and Coldbreak’s sales larger manufacturers. DAN VOS Oktober found that more than just breweries The slow down in new brewer- CONSTRUCTION have reflected that. Company But even in that segment of the business, Culver were in the market for the seamers. ies meant changing demands from COMPANY President and co-founder Boyd has faced skyrocketing prices on materials. “Around 70 to 85 percent of (demand was from) Psycho Brew’s clients, but only after Culver said that 55 percent of all For instance, the company uses copper as the breweries, but it was also restaurants, bars, golf a nearly complete pause in business jockey box sales for 2020 were primary component for its line of immersion chill- courses and all kinds of crazy, different businesses when the pandemic first gripped the industry. completed in January and February, which is ers. Culver said that prices for copper have shot up you wouldn’t even expect ordering from us. As soon “From the end of March 2020 until around June the company’s slowest time of the year. 100 percent and lead times for raw copper jumped as cocktails became legal to-go, any place could be or so, we didn’t really have any new work coming “It was essentially like a valve got shut off,” Culver from five weeks to 27 weeks. canning them and getting some revenue out the in,” Breimayer said. “The brewing industry was so said. “Unfortunately, since (early spring), none of “We’re definitely bobbing and weaving, to say door,” Grumm said. uncertain at that time that everyone was sitting tight. that has changed in regard to jockey boxes. We still the least,” Culver said.

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12 APRIL 12, 2021 / MiBiz Visit www.mibiz.com Trade group looks to extend affordable health plans to craft brewers, distilleries, wineries We go beyond taxes... By MARK SANCHEZ | MiBiz “Obviously, we’d love to have all of them, but if we [email protected] can bring in a handful a year until people start to get Let our professionals help you with: used to the program, and then start growing faster health plan that for years has provided than that, we’d consider that a success,” he said. • Accounting • Wealth Management coverage for employees at beer and wine wholesalers in Michigan now looks to • Assurance & Federal rule changes • Business Consulting offer the same benefits to craft brewers, distilleries and wineries across the state, Because of the larger collective pool of participating Attestation • IT Consulting Aproviding a potential lower-cost option to consider. employers, association health plans are not subject An offshoot of the Michigan Beer & Wine to the same coverage mandates for 10 essential ben- • Payroll Services • R&D Credits & more! Wholesalers Association, the Michigan Beverage efits under the federal Affordable Care Act, which • Succession Planning Collective decided a year ago to extend to craft enables them to craft lower-cost benefits packages. beverage producers an association health plan U.S. Department of Labor rules under which that presently covers more than 4,000 people at 33 the Michigan Beverage Collective offers health companies. benefits differ from regulations issued in 2018 The Michigan Beverage under the former Trump administration. The regu- Collective offers health plans lations allowed different types of small businesses through Blue Cross Blue within a state to come together to form an associa- Visit one of our 3 Grand Shield of Michigan and HMO tion health plan and collectively qualify for large subsidiary Blue Care Network, group coverage. Rapids locations: Cascade, including five high-deductible A federal court ruling in 2019 set aside that por- medical plans with a health tion of the Department of Labor rules, saying they Rockford & Standale savings account and three amounted to an end run around mandates in the HMO and PPO plans. The col- Affordable Care Act. The case remains under appeal. Nevins lective also offers four dental In West Michigan, a family health plan in 2020 and vision options, and short- cost an average of $1,500 a month, according to an hscompanies.com term disability. annual survey by The Employers’ Association. A See what being an H&S client is all about! “These are good plans,” two-person plan had an average monthly premium said Spencer Nevins, presi- across all plan types of $1,100 and an individual dent of the Michigan Beer & health plan costs about $500 per month. Wine Wholesalers Association. “They’re plans for good jobs.” Talent attraction The Michigan Beverage Collective dates back to A large part of extending the Michigan Beverage Rivard 1990, when the Beer & Wine Collective’s insurance pool to include craft brewers, Wholesalers Association formed a trust to offer distillers and wineries was to enable them to poten- MICHIGAN’S employee benefits to members. tially afford health benefits that can help to attract Federal regulations for years have allowed small and retain employees. businesses in a common sector to pool together for “It is very hard right now to attract and retain tal- an association health plan. Changes made to fed- ent, and good health benefits are a tool to do that,” eral rules in 2018 broadened criteria for association Nevins said. “There is a talent crunch out there. We GREAT health plans and allowed the employee benefits trust hear it all of the time. We hear it from craft brewers, to transition in early 2020 to offer coverage to craft we hear it from wineries, we hear it from distribu- brewers, wineries and distillers, Nevins said. tors, we hear it from everyone working in the alcohol “It just made sense to reach out to our partners beverage industry.” BEER in the industry — people who we know care about That’s the case at Rockford Brewing Co., where their employees … and want to provide good benefits partner Seth Rivard says employee health insurance and take care of those that are taking care of them,” is simply unaffordable. he said. “It just seemed to be a really good fit to offer Rockford Brewing employs about 40 full time the program to them because we think we can offer employees at its taproom, restaurant and brewery. STATE them really great packages in insurance benefits at The inability to afford health benefits puts the small a really competitive price.” company at a competitive disadvantage in attracting PODCAST and retaining talent, especially chefs who are in short Creating market awareness supply right now and will migrate to larger organiza- tions that offer insurance coverage. Now focused on distributors and alcohol beverage “It’s hard for us to compete with that,” Rivard producers, the collective spent the last year work- said. “We just can’t make the numbers work.” ing to promote and create market awareness of the To afford employee health coverage, Rockford association health plan. Brewing needs costs at about half of what the After the COVID-19 pandemic slowed the roll company has been quoted, Rivard said. out, the collective is now ready to begin enrolling Nevins said the Michigan Beverage Collective’s craft brewers, distilleries and wineries. health plans are “very competitive” in price and “For the first year, our goal was just to get out generally beat other products on the market, there and make relationships, get in the door to often quoting policies “lower than what people start talking to people. Insurance is a relationship- are already paying,” although he could not say type thing. You have to know people and kind of by how much. hosted by build that relationship, so that’s been our focus,” Of the beer and wine wholesalers that now use said Nevins, who estimates that there are some 500 the Michigan Beverage Collective, “most years Scott Graham & alcohol beverage producers in the state between we have a 100 percent retention rate” for policy craft brewers, distilleries and wineries who are eli- renewals, Nevins said. “We’re a very stable plan Fred Bueltmann gible to join the plan. with great benefits.”

Visit www.mibiz.com MiBiz / APRIL 12, 2021 13 FOCUS: DRINKING ECONOMY

PROFITABILITY just 5 percent currently. The brewery is canning, Continued from page 1 but only to make it more convenient for patrons to grab-and-go or drink onsite within a designated social zone. operating on strict capacity limitations. Still, some Because of this inconvenience, the average num- breweries did see the hardship as an opportunity to ber of beers sold went from less than one per person fine-tune their businesses. to almost three per person, according to Collazo. While the pandemic forced the hands of Collazo As for selection, City Built focused on hot-selling and his peers to make drastic changes to operations, styles like hazy IPAs, fruit-loaded sours and pastry Collazo focused on growing the most profitable stouts. Early in 2020, City Built brewed a batch of aspects of his business while leveraging available pastry stout that used 250 pounds of coconut. It sold state and federal relief grants. in a matter of weeks for $30 per four-pack. “We were more profitable in 2020 than we Collazo also has embarked on collaborations were the year before on $500,000 less in sales,” with multiple breweries across the state to raise Collazo said. City Built’s profile. “These are breweries that had big followings Labor adjustments and were brewing beer that we wanted to make,” he said. Some of the changes Collazo implemented at City Those collaborations were done with names like Built were similar to those made in other West Ascension Brewing Co. in Novi, Drafting Table Michigan breweries. The pandemic highlighted to Brewing Co. in Wixom, and with hip-hop group Collazo that his company carried too much labor. Run The Jewels, which routinely collaborates with The pandemic gave him an opportunity to re- breweries around the world to create a portfolio of calibrate this area of his business as, when statewide craft beer. shutdowns went into effect, the brewery went from “We didn’t have a banner year (as a business) around 50 employees to just three overnight. but our brand had a banner year,” Collazo said. “We “It just became a thing where: How do we wisely were down half a million dollars. We found a way, add people that match our new sales?” Collazo said. with less, to be more profitable. … As things open up, “And, what we’re finding is that our sales are almost we have lots of momentum and are positioned very back to what they were before the pandemic only well to take advantage of the fact that now people are without all the labor. willing to get out and people are getting vaccinated. “We have half the kitchen people on any given Our concern is that we can’t make enough beer (to day but our numbers are looking pretty close to what meet demand).” they were prior to COVID.” City Built made a few adjustments to accom- Universal struggles modate a leaner crew, such as opening at 3 p.m. instead of from 11 a.m. to 11p.m. each day. City Built David Ringler, founder of Cedar Springs Brewing also stopped serving customers at their tables and, Co., went through a similar exercise as Collazo and instead, started counter service. his fellow brewery owner brethren. “I don’t see that changing (back) — I think it’s “When we were in regular operations, we prob- awesome that the public is allowing us to make ably carried a little more fat than we had to. Things City Built Brewing Co. CEO Ed Collazo says 2020 “was a blessing” that created opportunities to cut that change (because) they continue to show up. … like this force you to focus on the things that are some overhead costs while maintaining profitability. PHOTO BY STEPH HARDING I think the changes we made to our food menu and absolutely necessary rather than things that might to our beer menu all help to accommodate the coun- not be necessary,” said Ringler. “For that reason, While some breweries may have weathered “The (Economic Injury Disaster Loan), (Paycheck ter service and quick food.” when this all happened, we all tried to be able to the storm better than others, Ringler said that Protection Program) and other programs have injected Collazo also found dollars in the types of beers operate as thinly as we can and get by with lesser “profitability” can be a deceiving word in this cash into the system and allowed people to get by with City Built brews and how they were distributed. revenues. The fact of the matter is that revenues are case, especially with revenues taking such a dra- other income,” Ringler said. “I don’t think that’s profit Before the pandemic, City Built distributed 50 significantly less and your overhead is still based matic hit and many breweries surviving on relief — because it’s not — but it is positive cash flow. And percent of its beer offsite, a figure that changed to on revenues.” grant money. cash flow is king when you get down to it.”

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14 APRIL 12, 2021 / MiBiz Visit www.mibiz.com 4.26.2021 Culture & Generational Change Contract Deadline: 4.14.2021 5.10.2021 Diversity/Equity/Inclusion Commercial Lending Quarterly: UPCOMING Commercial Real Estate Lending Update Contract Deadline: 4.28.2021 5.24.2021 Food Systems ISSUES Contract Deadline: 5.12.2021 6.7.2021 Real Estate: Multifamily Contract Deadline: 5.26.2021

New political Jane Ghosh boundaries takes helm to emerge in at Discover 6.21.2021 2021 Kalamazoo PAGE 16 PAGE 22 JANUARY 18, 2021 • VOL. 33/NO. 7 • $3.00 SERVING WESTERN MICHIGAN BUSINESS SINCE 1988 www.mibiz.com Transportation Despite new state law, no solid plans Contract Deadline: 6.9.2021 for Kalamazoo HELP ON THE WAY event center

By KATE CARLSON | MiBiz More flexibility [email protected] comes with latest KALAMAZOO — A new funding tool recently signed into law is intended to help finance an event round of PPP loans center in downtown Kalamazoo, but it’s unclear if there is a desire or solid plans to move forward By MARK SANCHEZ | MiBiz with the venue. [email protected] House Bill 4816 was sponsored by former state 7.5.2021 Rep. Brandt Iden, R-Oshtemo Township, and was he new round of federal Paycheck signed into law by Gov. Gretchen Whitmer on Dec. Protection Program loans 30. The Regional Event Center Financing Act cre- includes a number of changes Kalsec ates a financing program for potential venue proj- New Priority from the prior funding intended earns ects in Kalamazoo, Ottawa, Muskegon, Ingham and Health leader on to aid small businesses hurting Washtenaw counties. Tfrom the COVID-19 pandemic. Industry 4.0: Automation B Corp “The impetus for this leg- accelerating change As with the first round last spring and status islation was basically to allow in health care summer, borrowers working through a lend- access to another economic er can again use PPP funding from the U.S. PAGE 7 development tool that larger PAGE 22 Small Business Administration to pay oper- Contract Deadline: 6.23.2021 communities have like Grand ating expenses. JANUARY 4, 2021 • VOL. 33/NO. 6 • $3.00 SERVING WESTERN MICHIGANRapids and BUSINESS Detroit,” Iden SINCE told 1988 www.mibiz.com The new $284 billion PPP round MiBiz. “I have always sup- extends eligible expenses to property ported an event center down- damage incurred in last summer’s Iden town because I believe that civil unrest that was not covered by if urban core centers don’t insurance, supplier costs and worker grow, then they have a tendency to just die out.” Thelen to lead protection expenditures. As well, eligi- Iden was term-limited out of office at the end of ble expenses now include costs to adapt By JAYSON2020. BUSSA He served | MiBiz on the Kalamazoo County Board of The Right Place to the pandemic such as facility modifi- [email protected] for two years before he was elected cations, software and cloud computing to the state House of Representatives in 2014. and delivery services. ports“The bettorsevent center and wasonline only casino ever discussed gamers foundILLUSTRATION: KAYLEE VANamid TUINEN economic See PPP LOANS on page 12 inthemselves concept. There sitting were on never the sidelines formalized in plansMichigan for LET THE orall a formal of 2020, agreement even when about there the was size a and glimmer scope of hope ofthat the project,”the state Iden would said. launch “It’s always online been gaming pre- before development liminarilythe year discussedwas out. as a high-level concept for 7.18.2021 SHowever,the community.” people seeking to place wagers from comput- ers and mobileThe devices new legislation can likely requires do so an in event the coming center weeks. ‘inflection point’ GAMES financing program to describe the proposed size, State expects ‘extremely high’ demand for $58.5M in small business COVID-19 relief “We’re ready when the industry is ready,” Michigan Gaming Controllocation, Boardcost and (MGCB) financing Executive structure Director of the pro Rick- Kalm told MiBizposed. facility, and to specify an assessment to be By MARK SANCHEZBy ANDY | MiBiz BALASKOVITZhas a |relatively MiBiz short applica- million Stages Survival Grant because of a “far, far greater Cybersecurity levied under the program, which can’t exceed 4 [email protected]@mibiz.comtion window based on previous Program beginning at 9 a.m. on need that exists than any amount West Michigan Tribal Economy That’s where this high-profile issue stands at the start of BEGIN 2021, weekspercent after of state county-wide officials waivedhotel room a 15-day charges. review The period demand. Jan. 21. The applications window of resources that we are facili- standards to Natalia Kovicak on sportsassessment betting rules would and effectively then issued be a small provisional increase licenses he latestGRAND state RAPIDS effort — RandyApplications Thelen describes for the $55 the mil- for Stages grants closes at noon tating,” Michigan Economic reshape defense Regulators, fortakes 15 differentto a helm county’s platform hotelat lodgingproviders tax. just eight days later. The to provideCOVID-19 financial pandemic lion as an Michigan “inflection Small point” Business that on Jan. 28. Development Corp. CEO Mark platforms, actions pavedThe the financing way for act online defines gambling an event centerto go live.as a aid tocan Michigan shift the small course ofSurvival economic Grant development Program open in at The small window for the Burton said last week. Grant manufacturing GR Econconvention Club hall, auditorium, stadium, music hall, businesses and enter- 9 a.m. on Jan 19. The application Small Business Survival Grant programs last year to provide Contract Deadline: 7.7.2021 consumers gear The MGCB is now awaiting each platform — including West Michigan. PAGE 4 popularPAGE sites26 like DraftKings and FanDuel Sportsbook — to tainmentThelen, venues whothat wasprocess selected closes last atmonth noon as on the Jan. 22. Program stems from an expec- relief for thousands of small up as online undergo independentSee KALAMAZOO testing toEVENT ensure CENTER the integrity on page 3 of their Tare ailing from thenew COVID-19 president pan and- CEOEntertainment of The Right Place and live Inc. music, tation that demand will eas- businesses statewide quickly OCTOBER 26, 2020 • VOL. 33/NO. 1 • $3.00 SERVING WESTERN MICHIGANgaming BUSINESS prepares SINCE 1988 games. This extensive www.mibiz.comvetting ensures that platforms are demic and resultingsays therestrictions challenges ofvenues 2020 will can likely apply create for more the $3.5 ily outstrip available funding See MEDC GRANTS on page 10 using geolocation properly and are able to properly iden- competition among cities, and generate oppor- to launch tify a bettor so that bets are not placed by someone who is tunity for a wider umbrella that includes equity underage or not located in the state of Michigan. as a key priority in economic PERIODICALS Managed service See ONLINE GAMING on page 3 development. providers play key Panel: Rural broadband development should mirror electricTrade, grid labor build-out “Every region in the world shortage is wrestling with what’s next,” advisory role in shift By MARK SANCHEZ | MiBiz developers say is critical for both The issue has become increasingly impor- said Thelen, who’s planning [email protected] businesses and households. tant duringamong the pandemic topas companies con- his move back to Michigan to work-from-home Eliminating the so-called duct business virtually and students learn from Denver, where he’s ichigan and the nation need the same “digital divide” must become as remotely, Klohsag said.priorities The pandemic brought INSIDE: currently senior vice presi- By JAYSON BUSSA | MiBiz kind of concerted effort to deploy important as extending electri- greater awareness to the issue and how in some dent of Downtown Denver Partnership Inc., the city’s [email protected] broadband internet access as 90 years cal and telephone service into areas the digitalthis divide year “is more like the Grand IndustryThelen 4.0 8.2.2021 economic development ago when America set out Puttingto electrify piecesrural markets in the 1930s, Birgittogether Canyon,” KlohsPAGE said. 11 in Manistee SEE PAGE 4 ichard Reiffer and his staff Mrural areas following the Great Depression, eco- Klohs, CEO of The Right Place “Our children shouldn’t be sitting in cars in the agency. “The markets that can come together at Grand Rapids-based nomic developers say. Inc. in Grand Rapids, said dur- parking lot of a restaurant to get Wi-Fi so they can and move forward together are going to be win- Two hotels, downtownKlohs education center lock in community investments in Fusion IT LLC tend to The COVID-19 pandemic has heightened the ing a recent virtual panel dis- do their homework. I think that’s just Third World,” ning markets and be able to leapfrog some of the take a proactive approach need to fix a lack of affordable high-speedanticipation internet cussion of at thepost-pandemic Michigan Economic Developers recovery, Klohs local said. officials say competition.” Rwhen it comes to advising clients access in some markets of the state that economic Association’s annual conference. See MEDA on page 3 During previous recessions, Thelen said Insurance on digital strategies. By KATE CARLSON | MiBiz hold promise for the city’s transfor- Denver “doubled down, invested in itself,” which So when COVID-19 transitioned [email protected] mation. The projects also involve a allowed it to “accelerate out of recession and into a full-blown pandemic in early variety of local interests and inves- bypass that competition.” He’s leaving a “hyper March, the team was already tell- MANISTEE — The lakeshore city tors, including regional developers, growth market” in the Mile High City that’s ing the mid- of just more than 6,000 people is the local American Indian tribe and attracted investments particularly from large Contract Deadline: 7.21.2021 size companies West Michiganseeing multiple cities new downtown a nearby community college. tech firms such as Google, Twitter and Facebook. it works with to developments that local officials “There are a lot of pieces when “Virtually any tech company you can imagine start facilitating and investors say are critical for you’re transforming a downtown,” has put up a sizable outpost in Denver,” Thelen effective remote weigh policyreinvigorating changes empty storefronts, to said Scott Ward, president of West said. “It’s a healthy reminder that the product of work. diversification and emerging bet- Shore Community College, based a region matters, and talent and placemaking Fusion IT, bolster affordableter off after the pandemic. housingabout 20 miles south in Scottville. drives business decisions. There’s been a lot of which works In Manistee, two planned The college and community good movement in that area in West Michigan in with businesses A vision for the Spirit of the Woods Manistee Gateway Project pre- hotels, a larger downtown “gate- groups have been instrumental the last 10-15 years. We’ve got to continue that.” Reiffer on an ongo- sented to city officials in September. COURTESY RENDERINGBy KATE CARLSON | way,”MiBiz and a newto — education such housing, center including See MANISTEE on page 9 See THELEN on page 12 ing basis as a managed service [email protected] high-density rentals. provider (MSP), even developed The Lansing-based Michi- white papers to serve as a refer- est Michigan cit- gan Municipal League has PERIODICALS ence for effective work from home ies are examin- stepped in to help local gov- strategies. Telehealth soarsing new poli- ernments solve their housing “We started warning our clients INSIDE: during pandemic,cies to expand puzzle. The MML plans to issue early and most of them acted on Waffordable housing and create guidance in early 2021 on code 8.16.2021 it to get equipment if they didn’t M&A Deals sparkinga supportive new environment for reform that can help increase already have equipment capable healthdevelopers coverage as studies show an affordable housing units. of running their remote work,” said in Review: ongoing need for more units. That includes incentivizing Reiffer, the company’s vice presi- optionsThe renewed discussions affordable housing developers dent of strategic initiatives. “For a this year among city officials through tools like brownfield 2020 PAGES 10-11 while there, the backlog to get lap- in Grand Rapids, Holland, credits, streamlining zoning Automotive Supplier Outlook tops was about six months.” SEE PAGE 13 Kalamazoo and Grand Haven codes and a refined applica- The ongoing pandemic has come as the COVID-19 pan- tion process. ushered in a tidal wave of remote Drew Phillippy is president of Grand Rapids-based Purple East, which demic has driven high unem- “What happens is you have working for companies that were recently emerged from bankruptcy under a new law meant to help small ployment and financial strain, developers sinking a lot of either forced to send workers home businesses. raising concern among offi- money into the process and or did it out of precaution. Many cials who say it could exacer- it makes it harder for them to of these companies’ MSPs have bate the need for affordable build housing developments Commercial Lending Quarterly: become the brain trust for work- housing. affordably,” said MML Policy from-home setups and strategies. Cities are attacking the Research Director Shanna New chapter problem in a variety of ways, Draheim. including revamping outdated Uneven footing Meanwhile, studies con- zoning codes to make it eas- tinue to show a need for afford- With remote work a growing trend ier for developers to include able housing throughout the before the COVID-19 pandemic, for Chapter 11 affordability in housing devel- region. A recent Housing Next Growth Lending Update many companies already had a opments, as well as prioritizing study shows at least 5,340 more rough infrastructure in place to affordable or mixed-use hous- rental units and 3,548 more make the transition smoother, For small businesses facing bankruptcy, the new ing for incentive tools such as owner-occupied units are Reiffer said. federal Small Business Reorganization Act is proving brownfield credits. needed in the next five years Still, some businesses had to Despite the effort being in Grand Rapids to meet hous- Contract Deadline: 8.4.2021 to be a cost-effective and timely lifeline. A Grand swiftly make up ground while some made to add more housing ing demand. Housing North, a of it was dictated by their respec- Rapids retailer offers an early test case. SEE PAGE 14 stock at varying price points, nonprofit that spans 10 coun- tive industries. housing advocates and local ties in the northwestern Lower See WORK FROM HOME on page 12 STORY BY ANDY BALASKOVITZ // PHOTO BY KATY BATDORFF planners are still confronting Peninsula, showed last year a stigma associated with — the region would need about and community opposition See HOUSING on page 11

PERIODICALS

INSIDE: 8.30.2021 Mergers & Acquisitions Solar industry on edge PAGE 7 SEE PAGE 16 Education/Talent Development Contract Deadline: 8.18.2021 9.13.2021 Family Business Contract Deadline: 9.1.2021 9.27.2021 Cannabis Cannabis Roundtable Contract Deadline: 9.15.2021

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Visit www.mibiz.com MiBiz / APRIL 12, 2021 15 SMALL BIZ Beyond retail: Entrepreneurs pursue alternative routes to cannabis industry

By KATE CARLSON | MiBiz Aguilera said. “Craft cannabis growers or people [email protected] with small operations care a lot about the plant. That industry coming into place really helped Wormies pening a cannabis dispensary comes expand composting operations.” with significant barriers, but West Aguilera is now looking into how Wormies could Michigan entrepreneurs are look- become a licensed facility to compost cannabis ing at opportunities other than retail waste, which currently is mostly going to landfills, storefronts to get their foot in the Aguilera said. Using a plant’s own biomass as com- Odoor of the burgeoning industry. post for when it is grown also provides numerous Michigan voters allowed for a wave of new busi- benefits. nesses when they approved the Proposal 1 ballot “When we talk about growing organically, that’s initiative in 2018 to legalize recreational cannabis. the dream,” Aguilera said. “The microorganisms While licensing and zoning red tape, as well as a that we would be culturing in this compost would high start-up costs, have served as obstacles for be grown in the place where they are going to thrive individuals looking to open a dispensary, many are and where they are needed. It just makes sense.” finding ways to work in the cannabis space without Wormies is in the process of gathering more opening a storefront. information on how to properly compost cannabis “Creating a dispensary is the most well-known waste, and seeking clarity about proper licensing side of the recreation industry,” said Grand Rapids from the state, Aguilera said. Participants in Grand Rapids-based Fluresh LLC’s business accelerator program for cannabis resident Erica Tyler, who is planning to open a can- The Michigan Marijuana Regulatory Agency has startups. COURTESY PHOTO nabis processing or safety compliance facility. “That various requirements for how to dispose of cannabis is going to begin to be a saturated market at some waste, including destroying the waste until it is ren- cannabis businesses are prohibited from advertis- The Grand Rapids-based cannabis brand point, so why not create a business where they have dered “unusable and unrecognizable” and recorded ing on mainstream search engines and social media launched its first line of products in 2020, including to come through our door (first)?” in the state’s monitoring system. Cannabis waste channels because cannabis is still illegal at the fed- microdose gummies, cannabis spray and pre-rolls Tyler is a member of the recently launched must then be disposed of into a landfill, a com- eral level, King said. that are carried in six different dispensaries across Fluresh Accelerator, a business incubator and edu- postable materials operation or facility or an in- “You have to rely on a lot of public relations, the state. Sarah Jane is marketed toward women cation program launched by Fluresh LLC for local vessel digester. and (search engine optimization) content, as well who perhaps have not tried cannabis before or have businesses and entrepreneurs to enter the canna- as personal, relational tactics,” King said. “It’s also not been to a dispensary but want to try it for the first bis industry. Marketing, branding cannabis a lot of face-to-face with customers and in-store time, Tupper said. “It’s disheartening to know that so much infor- promotions.” “We thought there was a gap in the Midwest mation is available to those that have the money “You don’t have to touch a plant to be a part of This also led King to secure a marijuana events market where we really felt like nobody was speak- and connections,” Tyler said. “The things that I have what’s going on,” said Roberta King, owner and organizer license. The city of Muskegon, where ing to this demographic,” Tupper said. “That’s how learned are things I didn’t even know existed.” founder of Canna Communication, which assists King resides, is one of the few cities in the state our business model evolved — to not only wanting Wormies Vermicompost is another startup in with marketing efforts for medical provisioning cen- that has opted in to allowing marijuana events. to be a company geared toward products, but also the Fluresh program. The company launched in ters, dispensary owners and other cannabis-related She is planning to work with the city and Park resources, education, community engagement and 2018, and after Prop 1 got a boost in business from businesses. She was referring to the ancillary busi- Place Provisionary to hold an outdoor event this just a place for women who are looking for some home growers and caregivers looking for high qual- ness opportunities in the cannabis market. July. honest dialogue about how to integrate cannabis ity soil to grow cannabis, said owner Luis Chen King started Canna Communication after she “It fit with what I was doing more than anything into their life.” Aguilera. left her job as the Grand Rapids Community else and seemed like a good opportunity,” King said. Launching the Sarah Jane brand has been a The Grand Rapids-based company has a com- Foundation’s vice president of public relations and “Events like this will help destigmatize cannabis a “great first step” to getting into the cannabis indus- post pickup service for households and restaurants, marketing. She wanted to find a way to start her own bit more and get people to realize it is legal, just like try, and will allow them to explore expanding their and also sells worm castings — a high-quality natu- firm that would provide her more flexibility toward a beer and wine tent at an event.” products or see what other opportunities they can ral soil amendment for organic gardening — and a the end of her career. Being creative with an entrypoint into canna- take with the brand, Tupper said. variety of other soil products. King often works with municipalities to help bis can open up different opportunities along the “It really offered us that really intense education “At the beginning of starting the business I didn’t destigmatize cannabis and aids clients by advocat- way, said Sarah Tupper, co-founder of Sarah Jane, really quickly and an awesome window into meeting have a big market, but once the industry came into ing for changes in local regulations. Many cannabis which she launched in 2018 with her business part- so many other women who have been so supportive place for cannabis they all started buying from me,” business owners are also unaware of the unique way ner, Jessica Lind. of our message and our brand,” Tupper said.

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16 APRIL 12, 2021 / MiBiz Visit www.mibiz.com ECONOMIC DEVELOPMENT

WOMEN IN THE Michigan and I know them and am excited about what’s coming. I haven’t heard of them leaving the profession WORKFORCE or going part-time, but I worry we’re going to lose some Continued from page 1 of those gains.” When Alita Kelly founded Southeast Market in Grand Rapids — which opened in January 2021 — she equity and racial issues to childcare, it’s just all brought and her co-founder, Khara DeWit, both knew firsthand Women Men it to the forefront.” about the extra hardships the pandemic has caused for Between February and women and mothers, especially of color. 17,900 December 2020, roughly 136,000 “My daughter is still in remote (schooling),” Kelly 20,000 women left Michigan’s labor said. “It’s been a year since she’s been at home for school force, resulting in a 5.8-percent and we’ve been building the business this entire time. decline, according to the Women It’s such a hard time psychologically for them being 0 in the Michigan Workforce report estranged from other children, and that translates to issued by the state Department me not being able to hold all of the balls for the business.” of Technology, Management and Because Southeast Market’s priority and mission is - 20,000 Budget. For men, the labor force to work with vendors who are Black, brown, Indigenous, Feenstra Wall is back to pre-pandemic rates and local and women-led, Kelly sees it as a growing concern was up by 18,000 workers during among many of her vendors as well. - 40,000 the same period, for a 0.7-percent “I’ve seen a mom’s goal for expanding into farming increase. having to take a backseat because she has to care for the To address some of these children in a way she wasn’t really expecting before the disparities, Michigan Women pandemic,” Kelly said. - 60,000 Forward gave out grants to nearly Kelly said she has seen resiliency in her vendors 200 women and minority-owned despite the pandemic, but being able to understand their businesses across the state in 2020 experiences on a personal level is crucial in knowing - 80,000 to try to ease some of the financial how to support them when they need it. burden caused by COVID-19. “I definitely feel like we make space for ourselves, Kelly “We deal with a lot of entrepre- and when we’re aware of challenges other mothers are - 100,000 neurs and see a lot of the impact the pandemic has had facing, we work with them,” Kelly said. “There needs to on a lot of them,” Fauble said. “For a lot of women that be that type of heart in company culture. If you have we work with, because they are the caretakers of the mothers making decisions that are at the top in a com- children and are trying to run a business, it is harder. A pany, that will be reflected in a company’s policies.” - 120,000 lot of the time these women are single parents, so it’s a Kelly says customers may at times feel the market’s double impact. They need to run their business to sur- service is lacking in certain ways or that they are provid- vive the pandemic and feed their families and help their ing services in unconventional ways. She tries to share - 140,000 - 136,000 employees as well.” that she and DeWit are teachers, mothers, homemakers Workforce inequities by gender and race cause some and business owners all at once. of the wage and workforce discrepancies that have been “It always comes back to representation and diver- highlighted by the pandemic, experts say. But social sity,” Kelly said. “We were able to build this business with norms, such as most women still serving as the pri- the lens of being mothers, women and people of color, Source: Women the Michigan Workforce report, Michigan Department of Technology, mary caretaker of their children, offer another reason and you can feel that in every aspect of our business. Management and Budget. for women not returning to the workforce at the same I’m so grateful to have that culture be the foundation of rate as men. the market.”

Parenting in a pandemic Michigan unemployment rates by gender More than 17 percent,or 10 million, of all working women across the U.S. rely on childcare and schools to keep their children safe while they work, according to the Women Men Brookings Institution. The lack of in-person schooling, coupled with childcare being shut down last year under 25.0% COVID-19 precautions, caused a complete upending of 22.6% the workforce that affected women the most. 22.2% The first month of the pandemic was espe- cially awful, said Megan Feenstra Wall, architect at 20.0% Mathison | Mathison Architects in Grand Rapids. She also serves as the president of American Institute of Architects’ Grand Rapids chapter. Feenstra Wall and her husband both have full-time jobs but also had to teach their children in 15.0% kindergarten and first grade at home when schools shut down. “Things were working for me (before the pandemic) because I had these systems in place that were set up to 10.0% make this all work. But suddenly those went away and 7.3% 7.3% there were overlapping deadlines, 50-60 hour work weeks while also trying to school our children and then extra things like wiping down groceries,” she said. 5.0% 3.9% The duties were shared with her husband, but 2.4% Feenstra Wall knows of “more than one” woman in architecture outside of her firm that stopped taking on new work when the pandemic started because she was 0.0% expected to help a child with virtual school. Dec. 2019 April 2020 Dec. 2020 “I don’t have any clue how you would do this if you were a single mother. I just don’t know, and I feel for the women who are doing this alone,” Feenstra Wall said. Source: Women the Michigan Workforce report, Michigan Department of Technology, Management and Budget. “There are so many talented and driven women com- ing up in the (architectural) profession right now in West

Visit www.mibiz.com MiBiz / APRIL 12, 2021 17 POLICY Biden plan could provide major funding influx for Michigan infrastructure plans

By ANDY BALASKOVITZ | MiBiz aims to address the question of whether utility dis- [email protected] tribution infrastructure could be replaced while a road is torn up. resident Biden’s recently proposed $2.25 The Michigan Infrastructure Council’s “dig trillion infrastructure plan comes as once” portal launched in mid-March and already state officials and local planning experts has more than 10,000 planned projects statewide. make gains in plotting investment needs It’s the latest in an ongoing attempt to “maintain a across Michigan. long-term emphasis on infrastructure and changing PLast month, the Michigan Infrastructure the culture in Michigan,” Weiss said. Council announced a new online portal that tracks where and when projects including utilities, roads American Jobs Plan and water and sewers will take place. It’s part of a broad attempt to coordinate hundreds of public and After a years-long focus on infrastructure spanning private entities planning more than 10,000 infra- several governors, Michigan officials are now exam- Gov. Gretchen Whitmer surveys an I-94 bridge in Jackson last month that’s being repaired under the structure projects across Michigan in the coming ining a concrete federal proposal, albeit one that’s state’s Rebuilding Michigan bonding initiative. COURTESY PHOTO years and decades. subject to change. “We’ve all known there has been a disinvest- Biden’s American Jobs Plan includes more than connecting Detroit to Toledo and Detroit to ment over the last couple of decades in infrastruc- $600 billion for roads, bridges and highways; $85 Toronto. ture. Our state certainly has suffered from that,” said billion for public transit; $174 billion for electric Biden’s plan also calls for $45 billion to John Weiss, chairman of the Michigan Infrastructure vehicles and charging infrastructure; $100 billion replace U.S. lead pipes and service lines and Council and executive director of the Grand Valley for high-speed broadband internet; $100 billion to $10 billion to monitor and remediate per- Metropolitan Council. invest in the power grid; and $300 billion to invest and polyfluoroalkyl substances (PFAS) in With so many infrastructure projects in the in the manufacturing supply chain. drinking water. queue — ranging from road repairs to sewer Following Biden’s announcement, Amtrak “Anytime you can bring more construc- replacement to broadband internet — state offi- issued a map of proposed projects that included tion activity in a community like ours it cials say a roadmap is critical to avoid overlapping potential enhancements to commuter rail between will have a huge benefit for communities,” Bennett Lunger Weiss or duplicative projects. For example, the project Grand Rapids and Chicago, as well as new routes said Ryan Bennett, business manager for the West senior director of government affairs with the Grand Michigan Plumbers Fitters and Service Trades Rapids Area Chamber of Commerce. Local 174 and president of the West Michigan Lunger said the Grand Rapids Chamber is “typi- Building Trades Council. He cited the former cally pro-infrastructure,” but favors funding models Obama administration’s American Recovery and based on user fees over tax increases. Coming Soon! Reinvestment Act of 2009 for helping to spur con- “We need to do something,” Lunger said of infra- struction at an LG Chem battery plant in Holland. structure projects. “We’re very supportive of the idea “We’re anticipating shovel-ready projects like of infrastructure investments, but so far there’s just that looking for federal funding to push it over the a lot of questions and concerns over the methodol- CLQ: edge,” Bennett said. “We’ve been neglecting invest- ogy of generating revenue.” ments in wastewater, sewers and potholes. (The Lunger added that raising corporate income COMMERCIAL Biden plan) calls out the replacement of lead ser- taxes in the wake of a now year-long pandemic runs vice lines — that’s going to be a lot of plumbing and counter to economic recovery efforts. Bennett and LENDING pipefitting work.” other supporters of the Biden plan are skeptical of Weiss said local and state governments and pri- business groups’ stance. vate entities that own infrastructure have spent years “The argument that it’ll somehow cost us jobs QUARTERLY identifying needs and, just as importantly, how to or be a negative for the economy hasn’t really pay for them. proven to be the case,” Bennett said of raising “If more funding becomes available, more proj- corporate income taxes. He also noted that his 2021 promises to be an interesting and challenging year for ects can be done off those lists at a faster rate, which personal taxes increased after former Trump commercial bankers. In line with that, MiBiz will expand its coverage will help us to avoid some problems we had in the administration policies. “The money’s got to of commercial banking activity around the West Michigan region. past of waiting too long or waiting for a crisis,” Weiss come from somewhere.” We’ll ramp up our regular editorial coverage of the region’s financial said of the Biden proposal. “To get on top of this In remarks last week, Biden said he’s “open institutions and also roll out a quarterly report on commercial lending planning curve is part of the reason that whatever to good ideas and good-faith negotiations” with money becomes available, it will help us to move GOP opponents, but noted that “inaction sim- activity throughout the region. The Commercial Lending Quarterly faster to what we know are already identified needs.” ply is not an option.” Democratic congressional (CLQ) sections are scheduled for: leaders have said they hope to move the plan later this summer or fall. • Commercial Real Estate Lending Update - May 10, 2021 Business apprehension Although business groups are opposed to • Growth Lending Update - Aug. 16, 2021 Funding Biden’s $2.25 trillion remains clouded the corporate tax increase to pay for the infra- • Commercial Lending Wrap-Up - Nov. 22, 2021 with uncertainty. The administration proposes to structure, Weiss said the business community is increase the federal corporate income tax rate from “reacting positively” and becoming more closely Contact your rep to book in all four of the CLQ issues today. 21 percent to 28 percent. The rate was reduced from involved in the Michigan Infrastructure Council’s Frequency discounts apply. 35 percent to 21 percent four years ago during the work around a project roadmap. Trump administration. While federal funding details and project pri- The tax increase already has generated strong orities are still unclear, any potential plan would opposition from GOP leaders and apprehension leave it to public planners to “use whatever funds Contact Us Today! from some key Democrats, who hold slim majori- we can in the most efficient manner,” Weiss said. [email protected] ties in the U.S. House and Senate. “Any effort that takes place at the federal, state [email protected] Based on initial feedback from its members, or local level to get on top of this infrastructure “There’s a little bit of concern about how much crisis we’re currently facing will help us as a coun- 616-608-6170 is being lumped in there, but mostly going away try be more stable in the future,” Weiss said. “It’s from user fees and raising the corporate income a need that’s been out there. It’s very expensive, tax hasn’t been well received,” said Joshua Lunger, but it’s also very expensive to do nothing.”

18 APRIL 12, 2021 / MiBiz Visit www.mibiz.com FINANCE Grow Michigan Fund II eyes $100M with increased focus on minority-owned businesses

By MARK SANCHEZ | MiBiz million with a promise to go as high as $30 million “if The first Grow Michigan fund made 33 loans The onset of the COVID-19 pandemic in [email protected] we meet some of the aspirational goals of the fund totaling $67.1 million to companies that went on to Michigan in March 2020 further delayed the process. in terms of seeding minority businesses,” he said. leverage the funding to collectively secure $320 mil- The pandemic “made it more difficult” to proceed statewide loan fund to provide growth “We’re open to all Michigan businesses, but to lion in private-sector capital and support more than with Fund II as the MEDC concentrated on creating capital to Michigan small businesses the extent that we make a dent, they’re willing to 3,200 jobs, according to the Michigan Economic and administering small business relief funds and expects to start closing deals by the commit more capital,” O’Keefe said. Development Corp. banks “understandably were focused” on assisting end of the month after securing state Grow Michigan Fund II — the successor to a Of the first fund’s approved loans, more than 80 clients and managing the crisis internally, Cook said. support. mezzanine fund formed in 2012 with the back- percent went to qualified small businesses, 36 per- The Strategic Fund board’s approval in March to AGrow Michigan Fund II has landed commitments ing of state funding and investments from sev- cent were in low to moderate income areas, and 14 commit $9.6 million also reduced Grow Michigan of nearly $40 million from investors, including $9.6 mil- eral banks — will target small businesses in an percent went to minority-owned businesses Fund II’s minimum loan size from $1 million to lion approved in late March by the Michigan Strategic array of sectors including manufacturing, distri- The Michigan Strategic Fund board initially com- $250,000. The approval also added a seat to expand Fund board. bution, transportation, life sciences and enabling mitted in October 2018 to investing in a second Grow the board of managers to 10 members to focus on The state commitment to the mezzanine fund technologies. Michigan fund. The commitment came as Grow equity by directing half of the capital raised to “allows us to leverage some more investment” for Eight banks so far have committed to Grow Michigan was completing investments in the first fund, minority-owned businesses. Grow Michigan Fund II, which Michigan Fund II, and O’Keefe expects 16 to 20 resulting in a slow start to fundraising for the second The MEDC put $7 million into the first Grow had temporarily put fundrais- overall to invest. Eight banks invested in the first fund. That fundraising didn’t begin for several months Michigan fund and expects to receive a positive ing to prospective investors on Grow Michigan fund. as final terms and agreements were negotiated, said return on investment, Cook said. hold as the Michigan Strategic Grow Michigan is also seeking investments from Chris Cook, the MEDC’s director of capital access. Grow Michigan has met the MEDC’s goal to Fund Board weighed support. foundations in the state, O’Keefe said. “The management of the fund was kind of at that leverage private-sector investments, leading to the “Now that we’ve gotten the point still pulling double duty because it was seek- subsequent $9.6 million commitments for the sec- green light, we’re full speed Filling a demand, overcoming delays ing to make investments at the same point it was ond fund, Cook said. ahead,” Grow Michigan CEO seeking new investments into the fund,” Cook said. He added that the first fund showed an ability Patrick O’Keefe said. By targeting half of the capital the fund raises toward Proposed changes at the time in the federal to leverage the private sector but also an ongoing O’Keefe Grow Michigan Fund II minority-owned businesses, organizers of Grow Community Reinvestment Act also slowed banks’ need for “this kind of small mezzanine-type lend- succeeds a prior fund and Michigan Fund II seek to fill a demand for growth interest in investing in Fund II, Cook said. ing that doesn’t otherwise have significant avail- has a lofty goal of ultimately raising $200 mil- capital across the state, especially in underserved That all resulted in Grow Michigan lacking ability in the market.” lion from investors, half of which will be targeted markets. The fund right now has eight potential enough investors by the Dec. 31, 2019, closing date The second fund’s “much more of a specific at minority-owned small businesses that need deals in the pipeline, he said. for raising capital and signing private-sector lending effort to be equitable in its lending practices and growth capital. “We think that we will get some traction in find- partners that would prompt the state’s investment, seeking out additional opportunities to provide O’Keefe expects the fund can reach $100 mil- ing new businesses and growing small ones to really Cook said. Rather than extend the closing date, lending to historically underserved areas and lion by the end of 2021. Backers so far include large create more jobs in the state and move it forward,” the Strategic Fund opted to re-evaluate the market businesses are all in line with goals of the MEDC,” banks in the state, some of which have committed $5 O’Keefe said. needs and alter the fund’s scope, he said. Cook said.

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20 APRIL 12, 2021 / MiBiz Visit www.mibiz.com NONPROFIT ORGANIZATIONS Grand Rapids officials, arts organizers

explore a revived arts council Muskegon Museum of Art. COURTESY PHOTO

By JOSH SPANNINGA | MiBiz Muskegon Museum of Art [email protected] raising funds for expansion rand Rapids officials say part of the city’s post-pandemic By JOSH SPANNINGA | MiBiz rebound for events and enter- [email protected] tainment should include a focus on reviving a local MUSKEGON — In mid-March the Muskegon Museum of Art Garts council to coordinate funding and announced a $9.9 million expansion plan to add additional gallery programs. space to the facility, which — according to museum officials — has Evette Pittman, supervisor of the city’s already been mostly funded. Office of Special Events, said during a recent “For the first year it’s been a quiet campaign webinar that such an organization is high behind the scenes, and by announcement we were on her priority list as the region bounces up to $7.2 million or $7.3 million,” said Executive back from widespread event cancellations Director Kirk Hallman. “Then on March 16 we during the COVID-19 pandemic, which col- brought the campaign public and have nudged it lectively have wreaked havoc on local eco- An alleyway mural in downtown Grand Rapids. PHOTO BY KATE CARLSON up to $7.4 million, and hopefully by this summer nomic activity. we’ll wrap it up.” “To build back better, we need a better “To build back better, of an official arts council. Hallman said plans for a museum expansion functioning arts and culture infrastruc- “There are a lot of artists that … should have been in the works for several years. Nearly 20 ture on a community-wide scale,” Pittman we need a better just be artists,” Berry said. “That’s the best Hallman years ago the museum purchased a nearby medi- said during the webinar. “We need to be case scenario where they could be paid to cal arts building, which was subsequently torn down to make space for more systematic. An operational arts functioning arts and do the best job that they’re incredibly good parking, and then later purchased an additional parking lot. The extra council will serve as endowment support culture infrastructure at, but there’s less organization behind it. space will allow the museum to increase its permanent exhibition space for the arts community in Grand Rapids, So having an arts council, for me, is really by more than 200 percent and its rotating exhibition space by 60 percent. instead of businesses and corporations on a community-wide empowering local artists to be able to do “It’s been a long strategic process,” Hallman said. “Finally a couple receiving dozens of individual asks. Arts scale.” their own entrepreneurial (pursuits).” of years ago we were ready to do the campaign to do the expansion endeavors would work through a singular because we have about 5,000 pieces in the collection and we do about arts council to create a vibrant arts scene Conversations in early stages 15 to 20 rotating exhibitions every year. It’s a high quality collection, in Grand Rapids.” — EVETTE PITTMAN and we can only get in our current space maybe 150 pieces at a time. Grand Rapids’ previous arts council, Supervisor, Grand Rapids Office of With the city of Grand Rapids’ renewed So there’s a big need to show more of the collection, to have touring which formed in 1967, was created to pro- Special Events interest in an arts council, the AWG could exhibitions come in, and have some better improved classroom space.” vide organized support for arts and cultural play a pivotal role in helping to mold what Museum officials have also learned lessons during the pandemic to institutions throughout the city. The orga- a new organization could look like. While incorporate into the expansion, including a refurbished HVAC system. nization provided its artist members with conversations between the city and the “It drives a lot of interesting possibilities that a year ago we never exhibition space and professional support, AWG are still in the early stages, advocates would have thought of,” Hallman said. and provided member organizations with to help look at the history of what worked see potential. The museum stores the vast majority of its collection in under- financial and strategic assistance. and didn’t work, and build something for “I think that the Arts Working Group com- ground vaults beneath the premises. The proposed expansion will However, the Arts Council of Greater Grand Rapids that will meet its needs,” ing together as a whole is like 10 steps for- allow a larger portion of its permanent collection to be shown, while Grand Rapids disbanded in late 2011. Edison said. ward,” Berry said. “I think the city acknowl- at the same time creating additional gallery space to host large touring Various factors, including the recession and The AWG consists of a wide variety of edges that because the city management shows that Hallman believes will make it state budget cuts, were cited for dissolving arts organizations in Grand Rapids, from understands the importance of the arts.” a “destination regional museum.” the organization before remaining funds big hitters like the Urban Institute for While no formal meetings have been “It’s going to have a tremendous NONPROFITS were distributed as grants to local artists Contemporary Arts (UICA) and Grand held yet, Grand Rapids City Manager economic impact for not only the city NEWS and organizations. Rapids Art Museum (GRAM) to smaller Mark Washington has sat in as a guest at of Muskegon, but for West Michigan as — Sponsored by: By 2019, the need for a collective arts organizations such as Lions & Rabbits, a one of AWG’s meetings. AWG members well,” Hallman said. GRAND RAPIDS group in Grand Rapids became apparent. local arts center dedicated to creating acces- have also met with the Grand Rapids In 2017, the museum experimented COMMUNITY In response, Steelcase Inc. helped facili- sible arts education and enrichment pro- Area Chamber of Commerce for infor- with its own large collection of Edward FOUNDATION tate what is now known as the Arts Working grams. The intentional lack of a leadership mal discussions. Curtis’ photography to draw in larger Group (AWG), a collection of 27 different model allows AWG members to all speak “I do think we’re very early in that con- audiences. Grand Rapids arts organizations dedicated freely and openly about pressing issues, versation, but there does seem to be some “We turned the whole museum over to that show, and we got 40,000 to supporting and strengthening the local concerns and ideas, and then subcommit- recognition that having some ‘connective people from all 50 states and 29 countries,” Hallman said. “It was a huge art community through open dialogue, stra- tees are formed to address specific topics. tissue’ pulling that all together, and thinking success, and we know we can pull those crowds in.” tegic planning and other types of support. “From grassroots to institutions, we all about the past, the present and the future The Muskegon Museum of Art plans to break ground on its expansion Louise “Punky” Edison currently serves meet,” said Lions & Rabbits founder and of the arts in Grand Rapids could help all project this fall and officials hope to begin construction by early 2022. as the AWG’s accountability partner. owner Hannah Berry. “There are a cou- of the arts organizations and artists to flex Muskegon-based marketing agency New School created the brochures “They intentionally do not have a desig- ple of committees. The committees are for that creative muscle,” said Assistant City that have been used in much of the museum’s fundraising efforts through- nated leadership model, and that’s on pur- diversity, equity and inclusion, and the next Manager and Chief Administrative Officer out the past year. New School Director of Brand Strategy Josh Herder told pose,” Edison said of the group. “So I sup- committee is about reopening in COVID, Doug Matthews. MiBiz that the agency is no stranger to working with local nonprofits. port them in doing what they decide they so that’s more for anybody who’s work- Both the city and AWG seem hopeful “It’s a soft spot for us,” Herder said. “We really have a heart for West want to do.” ing in policy, or working alongside venues about the creation of a new arts council in Michigan nonprofits and helping support them in any way we can.” Edison worked for the former Arts reopening, or grants, or PPE or anything some capacity, though officials are proceed- The agency has previously worked with nonprofits including the Council for four years, as have some other like that.” ing with caution. Grand Haven YMCA, Gracious Grounds, and The Arc. The Muskegon members of the working group. According Berry feels that the AWG has major “The reason that we’re trying to be very Museum of Art, however, was an especially exciting project for Herder, to Edison, the group also has arts and cul- potential to benefit all types of arts intentional and thoughtful about what’s who says the museum was a large part of his childhood education. tural leaders who are new to Grand Rapids endeavors, from large projects with the next is because there’s a lot of important “Not a lot of people understand what that museum is capable of,” and bring their experiences with various UICA or GRAM all the way down to indi- work already,” Matthews said. “We don’t Herder said. “This expansion is going to be incredible for them. We’re other arts council models to the table. vidual artist grants and support. That want this to distract from that work, but it just happy to have been a part of helping raise that money in an efficient “I think there’s a wealth of information potential could increase with the support could be a result.” manner for them.”

Visit www.mibiz.com MiBiz / APRIL 12, 2021 21 Woman-owned, gluten-free IN THE NEWS brewery makes M&A people, Starlite worked with Grand Rapids-based merg- n Grandville-based Kerkstra Precast Inc., a producer ers and acquisitions advisers Calder Capital LLC to of precast and prestressed concrete products, has been sell the business. For KSI Kitchens, the strategic acqui- a craft beverage acquired by private equity-backed Fabcon Precast sition adds a ninth design studio for the family-owned LLC, based in Minneapolis, Minn. Founded in 1962, company and its first one in the West Michigan market. Kerkstra serves the industrial, commercial, residential n Traverse City-based insurance broker High Street splash and infrastructure markets throughout the Midwest. The Insurance Partners, backed by Detroit-based private company’s product offerings include architectural wall equity firm Huron Capital Partners LLC, acquired El- panels, hollowcore planks, beams, columns, double tees liott Hartman Agency of Waterloo, Iowa, and Wall Street and stairs. In addition to a Grandville location, Kerkstra Insurance of Colorado. Since forming in August 2018, A Q&A with Jessica Stricklen, also maintains a location just outside of Detroit. High Street Insurance Partners has closed on 21 acqui- owner of Brewery Nyx LLC n Otsego Crane & Hoist Co., a manufacturer that sitions and says it continues to pursue additional deals. specializes in overhead material handling equipment, has been sold to individual investors. Grand Rapids- EXPANSION rewery Nyx LLC owner Jessica Stricklen based merger and acquisition advisers Calder Capital n Petoskey Plastics Inc. — a manufacturer of plas- recently unveiled plans for what will be the LLC advised the Otsego-based company on the sale. tic films, bags and resin — aims to meet surging de- first gluten-free microbrewery in Michigan, Terms of the deal were not disclosed. The company mand in one of its was purchased by two Grand Rapids-based intellectual business segments to be located at 506 Oakland Ave. SW in property attorneys, who chose to remain anonymous. by expanding op- Grand Rapids’ Roosevelt Park neighborhood. n Lincolnshire, Ill.-based Camping World Holdings erations to a new BStricklen, who previously worked in management roles Inc. (NYSE: CWH) signed an agreement to purchase facility in Texas. The Petoskey-based company, which for wine labels in Portland, Ore., plans to initially launch Escanaba-based Hilltop RV Superstore, according to employs 451 full-time and 113 part-time or temporary the new brewery as a production space and small tasting room. Teaming with veteran brewer a statement. The companies expect the deal to close in employees, recently announced that it is investing $30 Sebastian Henao Van Bommel, Brewery Nyx will also sell cans of its beers out of its home facil- May. Hilltop RV operates dealerships in Ishpeming and million into a facility located in the Dallas-Fort Worth ity in addition to maintaining self-distribution. Stricklen, among the few women owners of craft Escanaba and sells a range of new and used RVs, as suburb of McKinney. The new Texas facility will help address market pressures, allowing the company to in- beverage companies, spoke with MiBiz about the new venture and navigating the craft beverage well as outdoor products and accessories. The deal ex- pands Camping World’s reach into the Upper Peninsula crease output by around 15 percent over the next year. industry during the COVID-19 pandemic. for the first time. With the addition of Hilltop RV, Camp- The existing building is 53,000 square feet, and Petos- ing World will operate six dealerships in Michigan, in- key Plastics plans to add an additional 40,000 to 60,000 What sort of demand for gluten-free beer do you anticipate, especially when gluten-free drink- cluding a location at 201 76th St. SW in Byron Township square feet by August 2022. ers have cider, wine and seltzer to choose from? along U.S. 131. Terms of the deal were not disclosed. n Wyoming-based Express Employment Profes- Almost everyone I have talked to about the project has said, ‘Oh, I know somebody who is gluten- n Pittsburg, Kan.-based Watco Companies LLC, a sionals launched a professional and executive search free that would love that.’ What’s so sad is that there are so many people who are gluten-free either railroad operator of short lines that owns the Grand firm, Specialized Recruiting Group, to focus on pro- by choice or by necessity. Just because (gluten-free beer) is not available does not mean people Elk Railroad Inc. in Grand Rapids, has signed an fessional placement and executive searches in West Michigan across a number of industries and position don’t want it. Beer is its own thing. Cider is great. Wine is great. And then there is also spirits and agreement with Canadian National Railways to take over about 650 miles of track in Michigan’s Upper Pen- types. They include nonprofit, human resources, sup- seltzer. They all have their own place, but nothing is a replacement for beer. insula and Wisconsin from its Wisconsin Central Ltd. ply chain, operations, engineering, I.T., accounting and subsidiary. The deal also includes about 250 miles of finance, and sales and marketing positions. Heather Some brewers offer beers that reduce or remove gluten. What’s the difference between those track in Canada, including the Agawa Canyon Tour Merrick, an Express employee since 2015, leads Spe- products and what Brewery Nyx will offer? Train scenic passenger rail service that operates out of cialized Recruiting Group as managing director. That is gluten-removed or gluten-reduced beer. It’s not 100 percent gluten-free. It’s made from Sault Ste. Marie, Ontario. The CN lines included in the grains that contain gluten so it’s still made from wheat, barley and rye and they put an enzyme deal service more than 90 freight customers, according CAPITAL RAISE in it to drop out the gluten protein and it’s still not 100 percent gluten-free. Our product will be — to a statement. n Lake Odessa-based Union Financial Corp., the n from grain to glass — gluten-free. All of our ingredients are gluten-free and our whole facility will Hudsonville-based M&A firm NuVescor Group holding company for Union Bank, completed a private advised New Hudson-based industrial controls com- placement to accredited investors by issuing common have no gluten on site. pany Outbound Technologies Inc. on its sale to stock that netted $6 million. Union Bank plans to use France-based firm VINCI Energies S.A. Outbound the proceeds for continued growth that includes ex- Is there a stigma surrounding the taste of gluten-free beer, and does that make you hesitant to Technologies was established in 1994 and works with pansion in the Grand Rapids market, where the bank prominently promote the fact that your beer is gluten-free? companies in a variety of industries to implement net- recently hired Tim Doyle as executive vice president We’re not going out of the gates screaming with our arms raised up, ‘Hey! We’re gluten-free!’ My work and software, control, and computing technolo- and chief lending officer. Union Bank has offices in brewer and partner makes fantastic beer and it happens to be gluten-free. gies. For VINCI Energies, which employs 80,000 people Ada, Lake Odessa, Dimondale, Hastings, Mulliken, and The majority of gluten-free beers available are mostly made from sorghum grain, which leads and operates in 56 countries, the purchase further ex- Westphalia. The bank ended 2020 with $296.4 million in pands its industrial business portfolio in the U.S. total assets and $270.2 million in deposits. to sort of a bitter, metallic aftertaste that we’re going to avoid. We don’t want to go out of the gates n Kentwood-based Wolverine Building Group Inc. saying, ‘We’re gluten-free, but I promise it’s good — please try it.’ We’re making great-tasting beer. has expanded its footprint to Southeast Michigan with LAW It’s a premium brand because we have premium ingredients and all of our ingredients are 100 the acquisition of Brighton-based construction firm n Grand Rapids-based Warner Norcross + Judd percent gluten-free. Contracting Resources Inc. Contracting Resources LLP completed the buildout of its new Detroit office. has 21 employees and Once Michigan’s COVID-19 office safety regulations You’re also pursuing a distiller license. What are your plans with that? offers construction allow, the law firm plans to move up to 60 attorneys The plan is to start with gins, agave spirit, and bourbon — all produced and packaged in our dedi- management services and team members into the third floor of the building cated gluten-free facility. to health care, retail, on Woodward Avenue. The Ilitch family’s Olympia De- religious, commercial and medical office markets. The velopment built and developed 2715 Woodward, lo- company was founded in 2001 by Jim Barnas, a Brigh- cated between Little Caesars Arena and the Mike Ilitch The craft beer industry has made strides toward diversity and inclusivity, but are there any ton native who has 40 years of industry experience. He School of Business at Wayne State University, as part of barriers for you as a woman in a male-dominated industry? plans to continue working at Contracting Resources its District Detroit project to transform a 50-block area Absolutely there are barriers — I am a woman in a white male dominated industry. Yes, I hit a few during the transition through the end of 2021 before into a business, sports and entertainment district. extra bumps in the startup process, but there has also been overwhelming support from people retiring. who understand the vision and have gotten to know me. I really don’t yet have much experience n A division of Grand Rapids-based wood products HEALTH CARE in the local beer industry — we’re not even open yet. You can ask me again in a year or two. Even manufacturer UFP Industries Inc. (Nasdaq: UFPI) n Mercy Health and an Auburn Hills-based op- with the inclusion and diversity efforts within the local industry, I really just don’t have the expe- has acquired a Wisconsin-based arts and crafts sup- erator of psychiatric hospitals plans to build a new plier. Handprint, which is a home and decor business rience to comment one way or the other. facility in Kent County through a joint venture. Ha- unit of UFP Industries, announced that it would acquire venwyck Hospital Inc. — an affiliate of Pennsylva- Walnut Hollow Farm Inc., which was founded in 1972 nia-based Universal Health Services Inc. — re- With so many craft breweries located in and around Grand Rapids, is market saturation a con- and located in Dodgeville, Wis. With sales of around ceived tentative state approval for a 60-bed adult cern for you at all? $11 million in 2020, Walnut Hollow produces a variety inpatient psychiatric hospital near Mercy Health’s I’m not worried about market saturation. We have gluten-free beer. We are bringing people into of finely finished wood surfaces for hobby, craft and Southwest Campus at Byron Center Avenue and the mix who can’t drink any other beer. Or, the beers that they have drank are not local craft beers. woodworking projects. M-6. The new psychiatric hospital will have room for Most people don’t really enjoy the (gluten-free) beers available right now, anyway. We’re pulling n Platinum Driveline Inc., a distributor of automotive 24 additional inpatient beds for geriatric psychiatric from a completely different population that is currently not a part of the craft beer scene and not clutch kits that is located in both Eureka, Mo. and Que- patients and for future expansion. retaro, Mexico, acquired West Michigan-based parts at their own fault. It’s really exciting for us to bring everyone back to the table. n Grand Rapids-based Mary Free Bed Rehabilita- provider Global Parts Source Inc. The Holland-based tion Hospital will provide physical therapy beginning company stands as one of the leading distributors of this summer at the Holland Community Aquatic Has your past experience in the wine industry helped you navigate the unprecedented industry FTE brand hydraulic clutch parts and components. Center. Mary Free Bed clinicians will use the center’s conditions brought on by the COVID-19 pandemic? n Byron Center-based Starlite Kitchens & Baths warm-water pool, fitness space and private treatment It has helped just by having experience with startups and understanding you need to be flexible Inc., which specializes in designing, delivering and in- rooms to treat a variety of conditions and provide aquat- and figure out what works. If something’s not going to work, you need to change. stalling cabinets and countertops for both homeown- ic therapy. Mary Free Bed will “begin with the basics ers and builders, was acquired by Brighton-based KSI and add more specialized programs, some of which are Interview conducted and condensed by Jayson Bussa. Courtesy photo. Kitchens. Founded in 2000 and currently employing 29 unique in West Michigan,” CEO Kent Riddle said.

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