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MILWAUKEE ATHLETIC CLUB CELEBRATES $62 MILLION RENOVATION 26
HIGH-END HOMES, HOTEL ROOMS, RESTAURANTS AND ENTERTAINMENT 35 COMMENTARY: GROWTH LACKING IN WISCONSIN 54
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4 Leading Edge 4 NOW BY THE NUMBERS 5 “ QUOTE UNQUOTE” — Helen Johnson-Leipold 6 REV UP – Synthetaic 7 G ETTING THERE — Miranda Allison, VISIT Milwaukee PUBLIC RECORD — Zurn’s acquisition of Elkay 8 STYLE – Hats
10 Biz News 10 T HE INTERVIEW — SKYGEN CEO Steve Berryman 11 M ADE IN MILWAUKEE — KHS USA
COVER STORY
14
12 Real Estate JAKE HILL PHOTOGRAPHY
BizTimes Milwaukee (ISSN 1095-936X & USPS # 017813) Volume 28, Number 2, April 25, 2022 – May 8, 2022. BizTimes Milwaukee is published bi-weekly, except monthly in January, February, March, July, August and December by BizTimes Media LLC at 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120, USA. Basic annual subscription rate is $96. Single copy price is $5. Back issues are $8 each. Periodicals postage paid at Milwaukee, WI and additional mailing offices. POSTMASTER: Send all UAA to CFS. NON-POSTAL AND MILITARY FACILITIES: Send address corrections to BizTimes Milwaukee, 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120. Entire contents copyright 2022 by BizTimes Media LLC. All rights reserved.
Contents
Center of the action The winding path to realizing The Avenue’s grand vision
Special Reports
48 Strategies 48 MANAGEMENT Karen Vernal 49 LEADERSHIP Rand McNally 50 INNOVATION Dan Steininger
53 Biz Connections 53 NONPROFIT
24 Buildings & Construction In addition to the cover story, coverage includes a feature on the challenges faced during the lengthy $62 million Milwaukee Athletic Club renovation project and a look at the impact supply chain issues and inflation is having on construction projects.
54 G LANCE AT YESTERYEAR COMMENTARY 55 5 MINUTES WITH… Brigade MKE founder Sean Rush
35 The Executive A look at the high life in southeastern Wisconsin, featuring the most expensive homes on the market, luxury hotel rooms, high-end entertainment and fine dining options.
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Leading Edge
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@MAYOROFMKE
NOW
Milwaukee’s new mayor seeks development growth beyond downtown By Andrew Weiland, staff writer Cavalier Johnson was recently sworn in as Milwaukee’s 45th mayor, and the first elected African American mayor in the city’s history, in a ceremony at the Harley-Davidson Museum. In his inaugural address, Johnson hit on several business and economic-related themes.
“We will see transformation throughout Milwaukee in the coming years,” Johnson said. “I’m not talking just about landmarks and high-rise buildings. I’m talking about the addition of good paying jobs, new investments in city neighborhoods, improvements in public infrastructure and a trans-
BY THE NUMBERS Madison-based Fetch Rewards recently closed a funding round worth $240 million, bringing its total funding to over $500 million. The grocery tech startup’s valuation has grown to over
$
2.5 BILLION.
4 / BizTimes Milwaukee APRIL 25, 2022
formation in spirit.” Johnson spoke about the crime issues facing the city and said that in addition to supporting the Police Department, improving the city’s economy is vital to reducing the crime rate. “I strongly believe the most important ingredient needed for neighborhood stability, safety and hope is a strong economy,” he said. Johnson indicated the Century City Business Park on the city’s northwest side will continue to be an important area for economic revitalization efforts. Once the site of A.O. Smith and its massive manufacturing complex, the business park, located near West Capitol Drive and North 31st Street, has been the city’s main focus for several years to attract jobs to the north side. However, most of Century City remains undeveloped and plans by meat processing company Strauss Brands to move its operations there from Franklin died in 2019 due to neighborhood opposition. Century City was just one area of the city that Johnson mentioned where he hopes to see more job creation. “I look at Century City … and I see opportunity. Let’s work together to create good jobs there. And let’s bring new opportunities for workers to Havenwoods, the Menomonee Valley and around
the airport,” he said. “Downtown development is wonderful, and I want that to continue. Even so, my priority is investment – buildings and jobs – in city neighborhoods. We have not seen enough of that.” Tax incremental financing has been the major tool used by the city to attract businesses and Johnson said that “with the right private sector proposals, my administration will deploy the financing tools we have to get deals done and make new employment a reality across our city.” He also emphasized that he wants to see workers in Milwaukee paid at least $15 an hour. The Wisconsin minimum wage rate matches the federal minimum wage of $7.25 an hour. “I am not asking the private sector to do anything we, at city government haven’t done,” Johnson said. “$15 per hour is a minimum for city workers. It’s the minimum wage we insisted (as part of a TIF deal) Milwaukee Tool pay at its new office at 5th and Michigan Streets. It’s what the new, $62 million Milwaukee Athletic Club is paying, as well. And all employers should be paying at least $15 an hour. Fair wages – dollars in people’s pockets – make our neighborhoods stable. Stability leads to healthier neighborhoods. And, healthier neighborhoods are safer neighborhoods.” n
“ QUOTE
unQUOTE
H E L E N J O H N S O N-L E I P O L D
”
CHAIRMAN AND CHIEF EXECUTIVE OFFICER, JOHNSON OUTDOORS INC. CHAIRMAN, JOHNSON FINANCIAL GROUP C H A I R M A N , T H E J O H N S O N F O U N D AT I O N AT W I N G S P R E A D Helen Johnson-Leipold, chairman and CEO of Racine-based Johnson Outdoors Inc., was recently the keynote speaker at Marquette University’s June and Herman Loebl Women Business Leaders Speaker Series. Johnson-Leipold is the great-greatgranddaughter of Samuel Curtis Johnson Sr., the founder of Racine-based S.C. Johnson. The company remains privately held and is still owned by the Johnson family. Johnson-Leipold’s brother, H. Fisk Johnson, is the company’s CEO, the fifth generation of the family to lead the business. Johnson-Leipold is a member of S.C. Johnson’s board of directors. n
“The younger generation has called us out about how we think about things and is asking for change.”
“The leaders that are always focused on maximizing profit most likely aren’t in it for the long haul and are not working on creating a sustainable business. I do think taking profits for profits’ sake is a short-term play.”
“Millennials are serious when they say having a life is more important than a job. Things should change. We’ve lived and breathed our jobs no matter what and that was a generational thing.”
“When you think of family businesses, we’re not one of the family businesses that gets stuck in tradition. Each generation was expected to bring fresh thinking … to understand our markets and consumers intimately as they change with the times.”
“Our purpose is to keep our company healthy and thriving so we can continue to have a positive impact on the lives of more people in more communities for generations to come. Our purpose takes us beyond, ‘What’s in it for me today?’ to ‘How do we assure value creation and positive impact that builds over time?’” biztimes.com / 5
Leading Edge
@BIZTIMESMEDIA – Real-time news
SYNTHETAIC
LEADERSHIP: Corey Jaskolski, founder and chief executive officer H E A D Q U A R T E R S: Delafield
LILA ARYAN PHOTOGRAPHY
REV UP
W H AT I T D O E S: A data company that grows large, high-quality datasets sufficient for machine learning F O U N D E D: 2019 E M P L OY E E S: 24 NEX T GOAL: Scale the RAIC platform, enter new strategic partnerships FUNDING: Recently closed a $13 million Series A round. Has raised a total of $17.5 million.
Cory Jaskolski
$13 million seed round to help Synthetaic scale RAIC platform By Ashley Smart, staff writer
COREY JASKOLSKI, founder and CEO of Delafield-based Synthetaic, believes the way artificial intelligence is generated today is not a sustainable method. “It’s always been (you) have humans draw boxes around millions and millions of things and then the computer can basically learn how to find those things in imagery,” Jaskolski said. “The problem is that as AI has gotten better and better, what’s really happened is the AI models have gotten bigger and bigger.” This creates a dilemma as most companies don’t have the number of employees needed to label data or the funding to take on such a task. “You’re looking at a six-month wait time and millions of dollars before you have any idea 6 / BizTimes Milwaukee APRIL 25, 2022
if your AI is going to work,” Jaskolski said. Synthetaic’s Rapid Automatic Image Categorization platform fast tracks the process of creating AI. RAIC combines high-fidelity 3D modeling and novel, generative AI to grow large and high-quality datasets sufficient for machine learning. The platform has been particularly useful in industries that have a lot of unlabeled data, including in conservation and climate change efforts and in medicine. Synthetaic recently closed a $13 million Series A financing round that included an investment from Green Bay-based TitletownTech. This funding will be used to continue to scale the RAIC platform and seek new strategic partnerships with companies that capture satellite data or are involved in AI training. The target for the funding round was originally $12 million. Jaskolski said the company ended up taking on $13 million because they wanted to make room for a strategic investor – a company that Jaskolski didn’t name but described as one of the biggest geospatial analytic and mapping organizations in the world. Synthetaic leadership also ended up turning down more money than they raised. There
were offers totaling more than another $13 million that weren’t accepted so the company could stay within their budget. Jaskolski attributed this abundance of interest to the ease of showcasing the RAIC platform’s abilities. “We have a really good product-market fit and we can demonstrate our tool set to our investors on the fly,” he said. “They know it (normally) takes six months to build an AI.” Moving forward, the company wants to continue to change the way AI is generated. To do so, Jaskolski wants to expand his team to include more tech professionals. Synthetaic currently employs 24 people. That number is expected to grow to around 35 by the end of the year, and the company is moving to a new location at 525 Main St. in downtown Delafield by next summer. The different ways the RAIC platform is used is also expected to grow. “With everything that is going on in Ukraine, there’s really an interesting opportunity for AI and satellite data,” Jaskolski said. “Twenty years ago, if something was going on in another country, it would be common for the invading country to say, ‘No, that’s not true.’ Now, there’s satellite data that we can all see.” n
GETTING
THERE
What’s one thing people don’t understand about the role of digital marketing and social media in business? “Sometimes people think marketing is just the fun stuff. Social media and creative campaigns, but it’s so much more than that. Successful campaigns rely on strategy and understanding the psychology of your audience. Plus, you have to be on 24/7. I love it, but it’s not easy.”
Favorite part of working at VISIT Milwaukee “I’m learning so much about the city. I didn’t realize how many cool businesses and events there are here. I grew up here, but it’s so interesting getting to know Milwaukee on a deeper level.”
Advice for aspiring marketing professionals “Try everything. I’ve bounced all around the marketing industry. Some aspects of it I love, while others I’ve learned aren’t my favorite. There are so many different paths within marketing, don’t give up if you feel like your first role doesn’t fit what you had in mind.”
Favorite local dining spot “Tough question. Tonight, I’m having Buffalo Boss for dinner. Best wings in Milwaukee.” n
PUBLIC RECORD
The timeline for Zurn’s acquisition of Elkay By Arthur Thomas, staff writer Milwaukee-based Zurn Water Solutions was four months removed from completing a major transaction that changed its name from Rexnord, spun-off the majority of the company and merged it into Regal Beloit when it announced a deal in February to acquire Illinois-based Elkay Manufacturing Co. New SEC documents filed in early April, however, show Zurn chief executive officer Todd Adams and other leaders had been working on the Elkay deal since April 2021. Here’s a timeline of how the negotiations went: FEBRUARY 2021: Rexnord (now known as Zurn) announces plans to merge its process and motion control business with Regal Beloit. MARCH 17: After strategic review, the Elkay board decides there are no sale options that would maintain company legacy and culture and decide to move forward with an initial public offering of 20%-25% of company’s stock. APRIL: Zurn CEO Todd Adams and Elkay CEO Tim Jahnke have preliminary talks about combining their businesses. JUNE 15: Elkay holds a kick-off meeting for a potential IPO at JPMorgan Chase & Co. offices in Chicago. JUNE 21: Adams and Jahnke meet again to talk about a combination. Adams suggests the two sides enter into a non-disclosure agreement. JUNE 23: Jahnke updates Elkay’s board on the IPO process and shares that four companies, including Zurn, had expressed interest in alternatives to the IPO. Ronald Katz, the largest shareholder of Elkay, says he’s not in favor of selling the company. JUNE-JULY: Jahnke, Katz and other Elkay shareholders have additional talks and agree to at least hold talks with potential buyers who could address concerns about the company’s legacy and culture. JULY 21: Zurn and Elkay enter into an NDA. AUGUST 25: Zurn executives present Elkay leaders and board members with an overview of Zurn’s opportunities once the Regal Beloit deal is done and the merits of combining the two companies. SEPTEMBER 22-23: Elkay’s bankers tell the board an IPO would likely be well-received by the market, but a deal with Zurn offered a unique opportunity to merge with a water-only business, receive a higher initial value and offer greater liquidity options. Katz said he would be in favor of a merger if Elkay’s shareholders owned around 30% of the combined company and legacy and culture concerns were addressed. OCTOBER 4: The Rexnord-Regal Beloit deal is completed. OCTOBER 20-21: Zurn’s board authorizes continued talks with Elkay. NOVEMBER 19: Elkay’s advisors provide Zurn with a proposal instruction letter for an all-stock transaction, including asking for proposals on dividend policies, valuation detail and post-closing governance.
MIRANDA ALLISON Digital marketing manager, VISIT Milwaukee AGE: 28 HOMETOWN: Glendale EDUCATION: Bachelor’s in public relations from St. John’s University; aesthetician diploma from Milwaukee Area Technical College PREVIOUS POSITION: Digital advertising analyst at Rocket Clicks
NOVEMBER 29: Zurn provides Elkay with an initial term sheet that includes 48.2 million Zurn shares for Elkay stockholders, giving them 27% ownership of the company, plus including Elkay representatives on the Zurn board. DECEMBER 3: Elkay provides a counter proposal that calls its shareholders to receive 52.5 million shares, accounting for 29% ownership. DECEMBER 10: The two sides agreed in principle to the terms of a cash-free, debt-free merger with 52.5 million shares. DECEMBER-FEBRUARY: Zurn, Elkay and their advisors negotiate a number of agreements related to the deal and conduct due diligence. FEBRUARY 12, 2022: The two sides sign the merger agreement and other documents. FEBRUARY 14: The deal is announced. n biztimes.com / 7
Leading Edge
hats
CUSTOM PANAMA HAT $270, by JTP Custom, Oconomowoc This classic fedora Panama hat was handwoven in Ecuador from paja toquila straw. It’s available in sizes small to extra-large.
“POPPIES” $750, by Val. Kupczak, Hales Corners This custom-made hat is fashioned from millinery braid, wire and red silk organza.
“DUALIST” $1,200 at Brass Rooster Hat Co., Milwaukee This yellow fur felt brim trimmed in dark brown grosgrain ribbon sits underneath a vented handwoven two-tone brown Panama hat. A two-tone ribbon in blue steel and brown features a half bow. A summer stunner for both function and fashion.
“PINK ROSES” $675 at Brass Rooster Hat Co., Milwaukee This women’s Panama fedora features a wide fabric treated underbrim and provides phenomenal sun coverage with a 60+ SPF rating. The polka dot, dripping rose fabric is a jovial piece with simple sophistication.
8 / BizTimes Milwaukee APRIL 25, 2022
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Interview
STEVE BERRYMAN took over in March as chief executive officer of Menomonee
Falls-based SKYGEN, a provider of software services and third-party solutions for dental and vision benefits management. His appointment is part of the company’s succession planning process, which has out-going CEO Craig Kasten continuing as managing member. Berryman joined SKYGEN as chief legal officer in 2016 and was appointed president in 2020. As CEO, Berryman is charged with developing and executing SKYGEN’s growth strategy as well as driving profitability and client satisfaction. BizTimes associate editor Maredithe Meyer talked with Berryman about what’s ahead for the company. What are SKYGEN’s services and who are its customers? “We’ve historically had two lines of primary business. Both of them revolve around our industry-leading technology platform. It’s an enterprise system, which we’ve built up over about 20 years. One line of business licenses that system to large insurance companies, and they use it to manage dental and vision benefit plans. The other part of our business serves as a third-party administrator, where we use our own system to administer claims and process benefits on behalf of large insurance companies. “We have some amazing partnerships with Fortune 50 companies like United HealthCare Service LLC, Centene Corp., Aetna Inc. – a lot of household names you’ve probably heard of. But essentially, it’s insurers and people who are providing dental and vision benefits.”
What’s your vision for SKYGEN’s future strategy? “I’m now responsible for leading efforts to raise our profile as the leader in dental and vision technology. At this point, we have about 36 million people who are served by our enterprise system technology, and it’s almost a spilt between dental and vision. Some of our customers are household names, yet, for the most part we tend to have a fairly low corporate profile. So, one of my jobs is to get us out into the industry more to become a better-known brand.”
How are you building brand awareness? “We have really stepped up our efforts around social media, with several social media campaigns going at one time. We’re getting more engaged in what I would call industry interest groups. … All these industry organizations are where you tend to find the thought leadership and players in our space. We have a wonderful product and blue-chip customer base, and those are the harder things to develop. So now, it’s just a matter of letting more people know about us.”
LILA ARYAN PHOTOGRAPHY
What are some industry trends on your radar these days?
Steve Berryman Chief executive officer SKYGEN W140 N8981 Lilly Road, Menomonee Falls Employees: 715 skygenusa.com 10 / BizTimes Milwaukee APRIL 25, 2022
“We operate in what’s becoming an even further enhanced regulatory environment. … We do a lot of business in Medicaid, and each state has its own set of rules around their Medicaid program. That means you have to keep track of regulations in 50 different states and the federal government with the Center for Medicaid and CHIP Services. That’s a big lift for many companies. “A second trend that we see is consumerism. There’s a stronger focus on providing clarity to individuals receiving care and improving the overall experience for patients and providers throughout the health care process. One thing that we’re doing to take advantage of that trend is developing a series of mobile apps for (insureds) to manage their care. … We’re also developing a dental hub that will connect all the different players in the dental space, providers, payers, patients, and equipment manufacturers. We forecast 40,000 registered dental providers using the hub by the end of 2022.” n
KHS USA works to fill products for global beverage companies IF YOU RECENTLY popped open a can of White Claw or Coca-Cola, chances are that can was filled with help from Town of Brookfieldbased KHS USA Inc. The company makes filling and packaging equipment for food and beverage producers around the world. KHS USA is a subsidiary of Dortmund, Germany-based KHS Group, which officially expanded to Waukesha County in 1971. The company was known then as Holstein & Kappert. The area was selected for its strong, local German community and an extensive network of machine shops, said Glenn Huber, president and chief executive officer at KHS USA. KHS’ biggest profit categories are parts, machines, and service and conversions. One of the company’s most popular products is its high-speed can filler. The largest can filler KHS creates is 184 valves, which can fill 2,300 cans a minute. Larger companies, including Coca-Cola, PepsiCo and MillerCoors, use can fillers in this range. KHS engineers have also designed smaller fillers, called “micro-fillers,” marketed to the growing craft brewery sector.
“
“We have such a diverse customer base,” Huber said. “It’s made up of the largest companies in the world and then, on the other hand, you have the smaller craft industry.” KHS has landed contracts with the makers of Red Bull and worked with brands closer to home, including New Glarus Brewing Co. John Turner, chief operations officer at KHS USA, said people don’t often think about how a liquid is put into a can or glass, but around 20% of beverages on shelves at a grocery store were filled by a KHS product. “Going into a Costco is like a trip to Disneyland to us,” Turner said. While many industries have been negatively affected by the COVID-19 pandemic, KHS was provided an opportunity for growth. As bars and restaurants shifted away from using tap and kegs, cans became more popular. This put KHS at an advantage as one of the company’s strengths is their high-speed can filling. Huber said KHS saw 30%-40% growth over the last two to three years. “The market shifted heavily
We have such a diverse customer base. It’s made up of the largest companies in the world and then, on the other hand, you have the smaller craft industry.” — Glenn Huber, KHS USA Inc.
KHS employee Andre Laube, a native of Germany, adjusts a valve on a 124-valve can filler, which fills more than 96,000 cans an hour.
KHS USA INC.
880 Bahcall Court, Town of Brookfield INDUSTRY: Manufacturer of filling and packaging systems EMPLOYEES: 340
khs.com/en
to cans, which is where our best machines were,” he said. It’s because of this increase in demand that KHS leadership recently gained approval from Town of Brookfield officials to expand its main Bahcall Court facility. The expansion project will give KHS USA an additional 18,237 square feet of assembly space to scale its product portfolio and an extra 4,620 square feet of office space. Huber said having a full suite of capabilities makes it easier for domestic clientele to see demos of KHS products – no need to make the trip to Germany. The company will also save on freight costs while customers will experience shorter wait times. KHS acquired Bahcall Court (where it has a campus of several buildings, totaling 125,000 square feet of space) from the town for the expansion project, which is expected to break ground in May and finish by late fall. Currently, the company’s 57,060-square-foot main Bahcall Court facility has about 340 employees, with 85 of those people working in tech ser-
vices and traveling to various locations. The expansion is expected to result in the addition of 15 to 20 assembly jobs. Beyond the expansion, Huber said the company wants to make sure it remains a leader in the filling and packaging space by continually improving its equipment. “We want to stay on top of the technology,” he said. “Technology for us is in the handling and the speed of the machines. Our speeds are always going up.” n
ASHLEY SMART Reporter
P / 414-336-7144 E / ashley.smart@biztimes.com T / @Biz_Ashley
biztimes.com / 11
Real Estate
REAL ESTATE WEEKLY – The week’s most significant real estate news → biztimes.com/subscribe
CHRIS HUEGEL/CITY OF MILWAUKEE
Mayor Cavalier Johnson addresses attendees at a press conference last month announcing funding for an artist loft project in the 300 block of Meinecke Avenue in the Harambee neighborhood.
COSTAR
Smaller projects add to Bronzeville development momentum
DR. MARTIN LUTHER KING JR. DRIVE in Milwaukee has attracted attention for significant development projects in recent years, some completed and some planned. Projects like Bader Philanthropies’ new headquarters, which opened in 2018, the Medi-
cal College of Wisconsin and the Greater Milwaukee Foundation’s $100 million redevelopment plan for the former Gimbels and Schuster’s department store building, the Bronzeville Center for the Arts and the $20.2 million Bronzeville Arts and Technology Hub recently pitched for city-owned land at 6th Street and North Avenue, are just a few examples of major projects that could help lead to a renaissance in the Bronzeville area. But while those larger scale developments draw headlines, local entrepreneurs and the city have been working hard in recent months on a bevy of smaller projects in the Bronzeville area that are aimed at bringing new housing and commercial opportunities, like a bookstore, to the neighborhood and adding to its revival. NICHE BOOK BAR Cetonia Weston-Roy became a bookworm as a little girl. Today, the 28-year-old entrepreneur is on the cusp of turning a historic building at 1937-39 N. Dr. Martin Luther King Jr. Drive into Niche Book Bar, the first bookstore the commercial district has had in decades.
FEATURED DEAL: O L D N AT I O N A L B A N K L E A S E S E N T I R E E I G H T H F LO O R O F H U R O N B U I L D I N G Old National Bank has signed a lease for 23,000 square feet of the Huron Building, occupying the entire eighth floor of the 11-story office building at 511 N. Broadway in downtown Milwaukee. Old National also plans to open a retail branch in the building’s 2,500-square-foot, Broadway-facing storefront. Both spaces will be built out by Milwaukee-based contractor C.G. Schmidt and should be ready in early 2023. Other tenants of the building, developed by J. Jeffers & Co., include Husch Blackwell and Tupelo Honey. Old National ’s Wisconsin leadership team, as well as its subsidiary Northern Oak Wealth Management staff, will occupy the Huron office space. The deal comes on the heels of Old National Bank’s merger with First Midwest Bank. ADDRESS: The Huron Building, 511 N. Broadway OWNER: J. Jeffers & Co. LESSEE: Old National Bank SPACE: 23,000 square feet on the eighth floor; 2,500 square feet on the ground floor
12 / BizTimes Milwaukee APRIL 25, 2022
ARTIST LOFT In Milwaukee’s Harambee neighborhood, HomeWorks: Bronzeville, a cultural development initiative that supports growth and activity in the community, has purchased a pair of vacant properties at 322-340 W. Meinecke Ave., with plans to transform them into their second arts-focused development in the neighborhood. The nonprofit plans to transform a duplex at 322 W. Meinecke Ave. into a single-family, live-work space for artists and demolish a two-story, four-plex next door so the site can be used for year-round art installations and programming. The association purchased the properties – both tax foreclosures – from the city this year for a total of $1. HomeWorks’ first project, a nearby live-work space for local
artist Vedale Hill, was completed a few years ago. BRONZEVILLE ESTATES Melissa Nicole Allen’s Bronzeville Estates project will transform 17 formerly city-owned tax foreclosed properties into a scattered-site housing development. The project will rehabilitate severely distressed single-family and two-family residential properties and build new duplexes on vacant lots. In addition to the housing development, Allen’s company, Maures Development Group, is also planning two mixed-use commercial redevelopments at properties it purchased from the city’s Redevelopment Authority. The company has purchased a 136-year-old Italianate building at 540 W. North Ave. for $52,000 and a vacant lot at 1940-48 N. Dr. Martin Luther King Jr. Drive, where it plans to construct a two-story storefront-style building. For Raynetta Hill, executive director at the Historic King Drive Business Improvement District, the most recent neighborhood-led redevelopment projects are prime examples of the kind of grass roots collaborations shaping Bronzeville for the better. “Everyone has really taken the time to invest in themselves and others, and that is the focal point,” Hill said. “They want to be here, and they also want to be sustainable.” n
BREAKING GROUND
The idea of opening a bookstore in the neighborhood began germinating for Weston-Roy in 2018 when someone asked what she wanted to do for the rest of her life. “I didn’t really think of work like that,” she said. “I liked my jobs, but I couldn’t imagine a place where I would just choose to be. Then I thought of wanting to go to a place with a wine bar and books.” The journey toward opening the bookstore started in 2019, with Black author pop-ups Weston-Roy held around the city. Then in 2020, in the midst of COVID-19, she designed her own pedal-powered bookmobile – a yellow tricycle with shelves on either side that she would ride to different places and events and use to display books by Black authors. She eventually learned about the 127-year-old, two-story building that the city had acquired through a tax foreclosure in 2019 and was approved to purchase the structure for $50,000 as part of a redevelopment agreement last month. When it opens its doors later this year, Niche Book Bar will provide Weston-Roy with a chance to share more books by Black authors, while also providing a gathering space for the community and local book lovers.
MSOE TO BUILD NEW SOFTBALL STADIUM ON DOWNTOWN CAMPUS The Milwaukee School of Engineering announced plans this month to build a $2.9 million softball stadium on its downtown Milwaukee campus for its NCAA Division III women’s softball team. Part of a larger effort to expand its athletic facilities, the stadium will be built at the MSOE Athletic Field site northeast of Milwaukee and State streets and will feature seating for 250 spectators, a natural grass field, dugouts for each team, and a single-lane batting cage and bullpens on each side of the field. A building behind home plate will include a press box, ticket window and concessions. The project is being funded by a gift from Kathy Ruehlow, Matthew and Jodi Burow and Milwaukee-based Fiduciary Management Inc. Ruehlow and the Burows are MSOE alumni. Ruehlow and Matthew Burow are also MSOE regents. DEVELOPER: Milwaukee School of Engineering SIZE: 62,400 square feet COST: $2.9 million
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STORY COVER
CENTER OF THE
ACTION The winding path to realizing The Avenue’s grand vision
14 / BizTimes Milwaukee APRIL 25, 2022
nights and weekends. Numerous attempts to revitalize Grand Avenue had failed. So, when in December of that year an investor team led by Tony Janowiec, president of Interstate Development Partners, and Josh Krsnak, president of Minneapolis-based commercial real estate development firm Hempel Cos., purchased the mall and its attached parking structure, few had high hopes for a turnaround. “At the time, Westown still had a negative reputation that sort of stuck with it since the late ‘90s,” said Janowiec, who is also president and chief manager at Milwaukee-based Interstate Development Partners. “Twenty years of baggage came with the Grand Avenue Mall, and neither Josh nor I quite had the history here in the city to fully understand the gravity of that.” Fast forward seven years, and the mall’s main entrance at West Wisconsin Avenue and North Dr. Martin Luther King Drive (formerly Old World Third Street) is now almost unrecognizable compared to its original appearance. After their initial purchase, Janowiec and Krsnak acquired an additional 300,000 square feet of adjacent real estate to create what’s now known as The Avenue, a 750,000-sqaure-foot mixed-use project spanning 3.5 city blocks on West Wis-
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R
EWIND BACK TO 2015 in downtown Milwaukee: The Bucks are in their first season under new ownership, a group of New York hedge-fund billionaires with lofty ambitions. The Milwaukee Symphony Orchestra is quietly planning a massive fundraising campaign to make the long-vacant Warner Grand Theatre its new home. The Wisconsin Center needs to be expanded, but funding hasn’t yet been secured to bring those plans to fruition. And the Shops at Grand Avenue has seen better days. The decline of the Westown neighborhood tarnished the reputation of the urban mall, which was developed in 1982 by The Rouse Company and renovated by Northwestern Mutual in 2004. In its heyday, Grand Avenue was considered the jewel of downtown. But when suburbanites opted for malls closer to home, numerous tenants including Marshall Fields exited and later Boston Store went out of business. The rise of e-commerce over the past two decades has been the nail in the coffin for many malls and brick-and-mortar retailers across the country. By 2015 the 293,600-square-foot downtown mall was largely vacant and virtually empty on
BY MAREDITHE MEYER, staff writer
biztimes.com / 15
JAKE HILL PHOTOGRAPHY
STORY COVER
JAKE HILL PHOTOGRAPHY
Free activities like shuffleboard and cornhole draw a crowd on weekends.
consin Avenue. It includes 200,000 square feet of open-concept office space, 200 residential units and plush amenities. The Avenue’s main attraction is a food and entertainment venue known as 3rd Street Market Hall. It features a 50-seat central bar surrounded by vendor stalls and free activities like shuffleboard, snookball, cornhole and old-school arcade games. For an added cost, visitors can reserve a Topgolf Swing Suite or visit the Photoverse selfie museum, a creation of the Milwaukee Institute of Art & Design. Soon, MIAD will open an art gallery inside the food hall’s main entrance to showcase and sell works by students, alumni, faculty and staff. 3rd Street Market Hall opened its doors in January after months of pandemic-related delays. At full capacity, it will house as many as 27 local food and retail tenants, drawing an estimated 1 million visitors annually, said Krsnak. As of mid-April, operations hover around 30% with 10 vendors open. Getting to full capacity will take some time, but, on Saturday afternoons, the scene is reminiscent of the buzz that once filled the former mall. “There are families with kids running around, and the kids don’t want to leave so mom and dad get another beverage from the bar or buy more food. … There’s a line of 30 people waiting to play bags and, in the evening, people are three deep around the bar for happy hour,” said Janowiec. That scene is just how Janowiec and Krsnak originally envisioned it. The capstone to a larger revitalization of Milwaukee’s surrounding Westown neighborhood, The Avenue is now poised to help draw more people to the city’s center, provide entertainment for out-of-town visitors and create more reasons for workers of downtown employers to come back to the office.
THE CONNECTING PIECE
THE AVENUE PROJECT BY THE NUMBERS
150
$
million
2,400
Total cost
Total parking spaces
750,000
3.5
Total square feet
Total city blocks
16 / BizTimes Milwaukee APRIL 25, 2022
Minnesota natives, Janowiec and Krsnak became friends in business school at the University of Minnesota. Janowiec started Interstate Parking Co. in 2009 in Milwaukee. Krsnak helped found Hempel Cos. in 2001 in the Twin Cities, and acquired the company 13 years later. Having grown up out of state, the duo didn’t see the Grand Avenue in 2015 as an albatross, unlike many local developers and city leaders. Instead, it was a “series of phenomenal historic buildings that had the bones of what should be the most prolific mixed-use development in the city,” said Janowiec. But, not one Wisconsin-based lender was initially willing to back yet another vision trying to breathe new life into the troubled property. “It wasn’t the project, it was the affiliation with the poisonous history of the Grand Avenue Mall,” Janowiec said. Originally, Janowiec’s primary interest in The Shops of Grand Avenue was its 1,850-stall parking garage, which he purchased along with the mall in December 2018 for $24.5 million. But noticing early signs of Westown’s renais-
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sance, the developers soon realized they had hit the location jackpot. Grand Avenue was surrounded by economic activity and new development. There was the Historic Third Ward, the Intermodal Station and the start of the streetcar project to the south; the Wisconsin Center and a new sports and entertainment arena being built to the north; and Marquette University to the west. Plus, the mall was connected to downtown’s skywalk system, bridging office buildings on either side of the Milwaukee River. “We were effectively sitting at the epicenter, what we refer to fondly as the ‘donut hole of progress,’ and we now had control of that,” said Janowiec. “Being literally at the original Main and Main of the city – which were Plankinton and Wisconsin avenues – we realized that we were the connector project.” Focusing on what surrounded the mall – rather than what had gone wrong inside its walls – the developers mapped out a plan to return the threeblock strip along West Wisconsin Avenue to its roots as the city’s main artery.
A “GRAND” VISION Bringing more people into the Westown neighborhood was first priority. The group in 2017 converted the second floor of the eastern Plankinton Arcade building into the 54-unit Plankinton Clover apartments. In keeping with the mall’s original layout, about 15 units have entrances from the atrium through private, glass-enclosed porches designed to look like historic storefronts. The apartments are currently 100% occupied, with a waiting list. In 2019, they purchased the 14-story Majestic Building and redeveloped its Majestic Loft Apartments into the 148-unit Playbill Flats. Since opening in March, the project has filled up faster than expected, said Janowiec. As of early April, occupancy was about 70%. With increased daytime activity as the next objective, the group developed 200,000 square feet of open-concept office space on the second and third floors of the west Arcade building. GRAEF-USA Inc. was the first tenant to commit. The Milwau18 / BizTimes Milwaukee APRIL 25, 2022
kee-based engineering firm relocated its headquarters to a 35,000-square-foot space on the third floor while heading the office development project. Converting a 1980s suburban-style enclosed mall – with inward-facing design – was not without its challenges. “We had to get pretty creative as to how we opened up that building,” said Janowiec. “We found a way to do that by installing dozens and dozens of massive windows and additional skylights to bring light into the space.” Finally, the project needed an anchor to tie it all together. The developers enlisted the help of Omar Shaikh, a well-connected restaurateur and owner of Milwaukee upscale steakhouse Carnevor, to develop a 35,000-square-foot food hall that would act as a “magnet” to people of all ages while celebrating Milwaukee’s diverse heritage through food, said Janowiec.
FOOD HALL UNIVERSITY Since full-scale plans for Grand Avenue’s revitalization and its new moniker were announced in late 2018, Shaikh and Krsnak have visited about 70 food halls across the U.S. – including the iconic Chelsea Market in New York City and Ponce City Market in Atlanta – to glean inspiration and learn the ins and outs of the business. “We did a lot of behind-the-scenes tours,” said Krsnak. “They would just pull up the curtain and say, ‘Here’s everything.’ We learned a ton that way.” 3rd Street Market Hall was nearly ready to open when the COVID-19 pandemic hit. Almost all of its original vendors pulled out of the project, opting to spend capital reserves on keeping their existing establishments afloat. So, 3rd Street Market Hall was back at square one and the task of finding all new vendors seemed daunting as the pandemic lingered. “We started calling around to other food halls in the country and asking what (they were doing),” said Shaikh. “What we found out is that they were actually funding the buildout for the tenants.” 3rd Street Market Hall followed suit, in exchange for higher percentage rent from some
Smoothie and acai bowl shop Make Waves opened in early April.
tenants. One silver lining of the pandemic was more time for R&D and brainstorming new ideas, such as the selfie museum and Topgolf simulators, which were not part of the original plan but have turned out to be popular attractions – and internal revenue generators. Between the vendor-stall buildouts, $750,000 worth of added amenities and rising raw material costs, the developers found themselves about $3 million short of completing the project. In June 2021, they secured a $2 million loan from the Milwaukee Economic Development Corp., followed by additional backing from some big-name investors like current and former Milwaukee Brewers Christian Yelich and Jonathan Lucroy and Green Bay Packers wide receiver Randall Cobb. Yelich and former Milwaukee Brewer Ryan Braun also invested in the project pre-pandemic. The investments in added amenities and buildout are among the selling points of the food hall’s business model, which offers restauranteurs a lower-cost, lower-risk option of starting or scaling their business. Vendors at 3rd Street Market Hall pay 25% of their sales in rent, and they’re responsible for supplying their own equipment. “What we’re explaining to a lot of our vendors here is there’s millions of dollars spent on infrastructure in areas that we don’t make money from. There’s no revenue associated with shuffleboard or snook ball: that’s given away to draw people here,” said Shaikh. Tenants can also take advantage of business resources they might not otherwise have access to. The food hall recently purchased a high-tech software system vendors can use to maximize sales and decrease labor costs by tracking customer traffic patterns over time, said Krsnak. “It’ll look at things as simple as what the weather was last year, verses what the weather is this year and how that impacts sales,” he said. “Or if you did this much in sales on a Bucks game (night) and there’s a Bucks game coming up, you’ll know how to staff up correctly.” There’s also the benefit of collaborating and
JAKE HILL PHOTOGRAPHY
Omar Shaikh, owner of Carnevor and co-developer of 3rd Street Market Hall.
JAKE HILL PHOTOGRAPHY
Indoor pickleball courts are among the amenities available for The Avenue’s residential and office tenants.
JAKE HILL PHOTOGRAPHY
STORY COVER
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STORY COVER
CONTRIBUTED
Laura Maigatter and Nathan Heck, co-owners of Hot Dish Pantry.
Joe McCormick, Brent Fogle, Kurt Fogle and Katie Fogle, co-owners of Dairyland.
3RD STREET MARKET HALL VENDORS (OPEN AS OF LATE APRIL) Amano Pan* – Artisan breads and pizza Brew City Brand – Milwaukee-themed apparel Dairyland – Frozen custard and hamburgers Green House – Sandwiches, soup and build-your-own salad Hot Dish Pantry* – Perogies and comfort food Kawa Ramen & Sushi Make Waves – Boba tea, smoothies and acai bowls Middle East Side* – Middle Eastern-inspired flat breads Mid-Way Bakery – pastries and bakery items; soup, sandwiches and salads Strega* – Fresh pasta Valor Organic Market – Aquaponics-farmed produce; locally made snacks and bottled drinks
20 / BizTimes Milwaukee APRIL 25, 2022
VENDORS COMING SOON Anytime Arepa Dawg City Kompali Tacos & Tortas Paper Plane Pizza Super Nova
* Hawker stall managed by Dairyland
troubleshooting with other restauranteurs under one roof, said Laura Maigatter, co-owner of Hot Dish Pantry. The concept sells scratch-made perogies and other comfort food from one of four hawker stalls managed by Dairyland Old-Fashioned Frozen Custard & Hamburgers. Maigatter and co-owner Nathan Heck are no strangers to the restaurant business, having worked in the local dining scene for years, but this experience is new to them as it is to most vendors at 3rd Street Market Hall. “We’re the guinea pigs, we’re the first ones here,” she said. “There’s going to be stuff that we have to figure out that’ll apply to other vendors when they open in this space.” Figuring things out under the guidance of fellow industry veterans Kurt Fogle, Brent Fogle, Katie Fogle and Joe McCormick, co-owners of Dairyland, is a huge perk, Maigatter said. Dairyland launched as a curbside operation and mobile food trailer during the pandemic. When the burger joint and its offshoot Mid-Way Bakery signed on as 3rd Street Market Hall’s first post-pandemic tenants, management of the incubator-style hawker stalls was part of a deal to offset its financial commitment. “We figured out how we could open two concepts of our own but also help lower the hurdle for a chef with a great idea for a concept, a space where they could really reduce the risk,” said Kurt Fogle, former corporate pastry chef at SURG Restaurant Group. “It’s a giant leap to open your own restaurant and it’s what prevents really talented people from getting to do this.” With a fully equipped shared kitchen and a wealth of institutional knowledge at their disposal, hawker tenants get somewhat of a crash course in business – from establishing brand image to navigating the city’s licensing process – with the goal of moving into one of the 3rd Street Market Hall’s full-size stalls or setting off on their own once their year lease is up. Meanwhile, Dairyland saw sales quadruple in the first 12 weeks at 3rd Street Market Hall, which wouldn’t be possible without risking it all on something many believed would fail. “That’s the idea of an early adopter,” said Joe McCormick. “We all believed in this project from the very beginning and knew it would come around and that this would be an awesome, transformative place for the city.”
OFFICE OF THE FUTURE In 2016, John Kissinger, chief executive officer at GRAEF, and Pat Kressin, vice president of business development, toured The Shops at Grand Avenue as they searched for a new headquarters location for its 170 Milwaukee-based employees. The firm was looking for an “office of the future,” equipped with flexible and collaborative workspaces, amenities and a central downtown location to attract talent. Its previous headquarters were at the Honey Creek Corporate Center office complex on the city’s west side. “Because GRAEF had worked on the Grand
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A second-floor shared lounge area for office tenants.
THE AVENUE OFFICE TENANTS Good Karma Brands GRAEF Hempel Real Estate Herzing University Marking Services Inc. Midloch Investment Partners Milwaukee Downtown, BID #21 MMAC RA Abdoo & Co. Reliable Water Services TEMPO Milwaukee United Performing Arts Fund Watton Law Group
22 / BizTimes Milwaukee APRIL 25, 2022
JAKE HILL PHOTOGRAPHY
GRAEF’s new headquarters office on the third floor of The Avenue.
GRAEF
STORY COVER
Avenue Mall back in the ‘80s, our ability to come in and be the anchor tenant to help revitalize a project in Westown was a great story for GRAEF as well as Westown,” said Kressin. At the company’s new office space, an outdoor patio overlooks the intersection of West Wisconsin Avenue and North King Drive. Inside, natural light pours in from the skylights and floor-to-ceiling windows, and there’s a balcony offering views of the other offices and food hall below. The mall’s original elevator was kept in service, giving office tenants private access to 3rd Street Market Hall. Employees also have free rein of the building amenities, such as a private fitness center, pickleball courts, indoor dog park, free structure parking and a shared conference area. GRAEF’s new hybrid work policy requires employees to come into the office three days a week, but most people are coming in more frequently, Kressin said, and the new location has something to do with that. “What we’re finding from new hires or recruits is that they love the fact that we’re a part of something bigger,” he said. “They love that they can look down and see the food hall and the (Metropolitan Milwaukee Association of Commerce) and where Good Karma Brands is building their space. They’re part of something more, we’re not just in an office building anymore,” he said. MMAC occupies 13,000 square feet on the second floor. Meanwhile, Good Karma Brands’ radio stations AM 620/FM 103.3 WTMJ, ESPN radio FM 94.5 WKTI and FM 101.7 The Truth will be on air by early fall from its new studios adjacent to 3rd Street Market Hall. It will have an interior-facing window where people can get a look inside Good Karma’s 24-hour newsroom. Good Karma’s corporate offices will relocate to The Avenue by early summer from the Radio City building on East Capitol Drive. In February, Herzing University moved its office headquarters from Menomonee Falls to 22,000 square feet on the second floor. While the layout of a traditional mall is architecturally limiting in many ways, it’s versatile in others. For example, the footprint is more expansive than most downtown office buildings, which has helped lure tenants like GRAEF, Good Karma Brands and Herzing from outside of downtown. “We’re able to offer a suburban-size floor plate within the central business district and that is almost unheard of,” said Janowiec. “We can do 30,000 to 40,000 square feet or more on the same floor when we’d typically require you to be a multifloor tenant.” With no shortage of square footage, Janowiec and Krsnak have sought to fill the space with amenities that most downtown apartment and office dwellers don’t have. The latest additions are a podcast studio and a movie theater, which is currently under construction in the lower level of the Majestic Building. “When you get the building for almost free, then you get to do things that otherwise wouldn’t
economically make sense,” said Krsnak. The food hall is one of those things. Shaikh said he has yet to visit a food hall that offers what 3rd Street Market Hall does. And they’re only just getting started. Krsnak said the group will be making tweaks for years to come. “Look at Chelsea Market: it took 20 years to become what it is,” he said.
A BOON FOR WESTOWN In the time The Avenue project has come alive – to the tune of $150 million and 750,000 square feet – the surrounding Westown neighborhood has seen a transformation of its own. Fiserv Forum, the Deer District and the new Bradley Symphony Center have drawn people back downtown during a time when local businesses needed it most in the wake of the pandemic. Milwaukee Tool plans to eventually bring as many as 2,000 employees to the office building it’s redeveloping at 501 W. Michigan St. What’s more, the Wisconsin Center’s ongoing $420 million expansion is expected to boost local tourism business and sharpen Milwaukee’s competitive edge in attracting conventions and events against same-size metros. When it comes to standing out among the rest, The Avenue project is another feather in the city’s cap, said Marty Brooks, chief executive officer at the Wisconsin Center District. “As (3rd Street Market Hall) is getting more activated, it’s providing more food and drink options and entertainment options for people to make more of their stay,” said Brooks. “On one hand, we have a job to get people downtown, the next job is how do we keep people downtown and give them things that they want to come back for.” In its opening months, 3rd Street Market Hall has drawn customers not only from Milwaukee’s suburbs, but also from as far away as Appleton and Madison. Some of its busiest days so far were during the Badger Region Championships, which brought thousands of youth volleyball players and their families from across the state to the Wisconsin Center for three consecutive weekends of tournament play. Some families came back to Dairyland every weekend to get their fix of house-made custard or cheese curds. Brooks sees 3rd Street Market Hall as a step in the right direction for Westown and hopes it will spark further economic growth: The next item on his wish list for the area is a full-service supermarket. But ultimately, what determines the long-term success of The Avenue project and reinvigoration of the neighborhood is people finding their way back to it, said Janowiec “There’s probably still some (portion) of the region as a whole that hasn’t come to Westown for, say, more than five years,” he said. “If I could just wave a wand to get people from the region and across the greater metro area to, when they’re here, find a reason (to visit Westown). It’s not the Westown of five, ten years ago. … Once they experience it, they’re going to come back again and again.” n
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CONTINUOUS FLOW CONSTRUCTION: CHANGE THE TRAJECTORY OF YOUR PROJECT
Authored by: Brad Barke President sales@esigroupusa.com 866.369.3535
MANY INDUSTRY INSIDERS say the U.S. lags European countries on construction innovation and quality. Continuous Flow is a principle popular in Europe that is making its way to the U.S. It eliminates waste and adds value to the design and build of food processing plants and distribution centers. The following are key indicators of Continuous Flow. INTERNAL COLLABORATION Continuous Flow optimizes sales, preconstruction, estimating, design and construction and other functions so they collaborate and share information throughout the design and build process. “When we collaborate, we can see and prevent problems that will affect the customer’s project,” says Brad Barke, president of ESI Group USA, which is implementing Continuous Flow.
EARLY PLANNING WITH EXTERNAL PARTNERS A baker would not use a recipe after the cake is made. Similarly, a design/build company should bring in vendors and trade partners before a plan is executed to reduce re-work and ensure a faster, lower cost project. RHYTHMIC SCHEDULING AND PROCUREMENT Certain work should occur at a specific place and time. A planning system can be used by a design/ build company to map this work, identify bottlenecks, build in buffers for the unexpected, and ultimately develop a robust and achievable schedule. “Rhythmically scheduling building materials to be where and when we need them enables us to plan and prepare proactively versus becoming reactionary victims,” says Jason Schroeder, owner, and lead consultant of Elevate Construction IST. “We can use Continuous Flow to connect the dots from beginning to end to mitigate and identify risk and take back control of the design/build process.” Continuous Flow is a new way to look at construction in the U.S. “Every day a project is not complete is a day of lost sales for owners,” says Barke. “At the end of the day, that building is only valuable to an owner if it gets built on time, on or under budget, and is the best quality – and they can start reaping revenue benefits.”
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Special Report BUILDINGS & CONSTRUCTION
Surviving, and thriving, in a sea of supply chain woes
PHOTO COURTESY OF THE BOLDT COMPANY
Construction companies tackle shortages, price spikes with a mix of pivoting and preplanning BY CARA SPOTO, staff writer AS SUPPLY CHAIN WOES and material price spikes continue, at least two Wisconsin contractors say they are remaining nimble as they find ways to navigate the challenges. According to a June 2021 survey conducted by the Associated General Contractors of Wisconsin, most contractors in the state saw steep increases in prices for steel, diesel fuel, lumber and pipe between 2020 and 2021. With those conditions expected to continue this year, John Huggett, vice president and general manager at The Boldt Co. said the 135-year-old firm has found success working with clients, architects and subcontractors to develop proactive procurement plans – or pivot to alternative building approaches, like cast-in-place concrete or modular construction – in order to meet building expectations and construction deadlines. The company started to encounter obstacles in getting key materials, like structural steel, metal decking and exterior glass components, to their job sites around mid-to-late 2020. “It didn’t take a lot to disrupt the traditional lead times that we had come to rely on, and the way we manage projects needed to shift,” Huggett said.
Alternative materials For one project – a corporate headquarters in another state – Appleton-based Boldt was able to work with the client and the architect and engineers to move from a structural-steel building, which would have included hard-to-come-by metal decking, to a cast-in-place concrete building. In another example, the company worked with Advocate Aurora Health to design a fully modular approach to its 16-bed addition at its Grafton medical center. The approach shortened the construction timeline and labor costs on-site as it was almost entirely prefabricated off-site, minus things like the building foundation and underground plumbing. “With modular construction you essentially break down a building into cubes, and then you design the interiors within that structural steel cube,” Huggett said. “You put it on a trailer. You 24 / BizTimes Milwaukee APRIL 25, 2022
ship it to the site. You crane it and put on foundations. You put the pieces together, then you put the enclosure on it, and you’re done. We did that project in Grafton, and we did a couple of others in Georgia and Maryland.”
A Boldt Co. construction crew works on the fully modular construction of a 16-bed addition at Aurora Advocate’s Grafton Medical Center last year. The approach helped the client and the company avoid a variety of supply chain disruptions that might have held up the project, while also reducing labor costs.
Preplanning and purchasing Since modular or cast-in-place construction isn’t something that will work for all projects, or even most, Boldt staff have mostly been working with clients, architects and engineers to exhaustively preplan projects, putting together procurement plans with an eye on any materials or equipment that could have longer lead times. Before an engineer would be at the point of specifying the air handling unit or chiller that might be used in a project, staff will get on the phone to the vendor, for example, and see what actual equipment they have in stock, or can get on time, and then see if the engineers can design that section of the building using that piece of equipment. “That is how we have needed to pivot and change our thinking,” Huggett said. Preordering materials that have longer lead times or can experience price spikes has also been helpful, he said. But it’s something that requires buy-in from clients. “I think clients that have a construction building program are starting to see that if I am going to put my project in the best position for success, I need to give my architectural and construction teams the tools to put my project on the best footing,” Huggett said. “In this economy, that is a scenario where you are providing the contractor with some flexibility to prepurchase materials and then be able to be paid for them. We have clients right now that we were able to have the
conversation and put that in place.” Preplanning has also been a big help for Brookfield-based Briohn Cos., which has made a name for itself by constructing industrial buildings. The firm has 15 buildings that are currently in some form of construction and another 12 projects that are slated to start construction sometime later this year, said Nelson Williams, majority owner and chief executive officer of Briohn Building Corp. and Briohn Design Group. “We are planning a lot further ahead than we used to,” Williams said. “Instead of ordering things two weeks ahead of when we might need them, we are ordering them two months ahead of time. We are just getting used to planning ahead for every piece of material that used to come quickly.” Re-sequencing project steps is another approach Briohn has taken to meet construction deadlines. Putting in parking lots sooner is one example, Williams said. The nimbleness and foresight that a lot of contractors are now employing is likely here to stay, said Huggett. “I think we are entering a period where we need to be prepared to behave in a manner that is flexible and responsive to the market,” he said. “I think the game now is making sure there is sufficient inventory available to execute your construction project without interruption. Maintaining that flow is really important.” n
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A transformation worth waiting for Milwaukee Athletic Club celebrates end of $62 million renovation
WHEN THE MILWAUKEE ATHLETIC CLUB began courting developers in late 2017, the 140-yearold city club was in a pinch. It’s now 105-year-old building, constructed at a time when the club was a men-only establishment, had fallen into disrepair and was no longer suited for the full spectrum of the association’s current membership, nor its reduced size. Retrofitted over the years to accommodate both men and women, the structure at 758 N. Broadway had become highly inefficient, and all of the mechanical systems serving its 13 stories were outdated. The club also couldn’t possibly increase membership fees enough to raise the kind of money it would need to make even the most necessary changes to the building. But Tony Janowiec of Interstate Development Partners and Josh Jeffers of J. Jeffers & Co. each had ideas they thought might help to turn the club around. Submitting plans separately to the association, the pair were eventually chosen by its membership to collaborate on what would become a $62 million, three-year renovation of the building. On April 9, surrounded by more than 500 of the club’s growing pool of members at a black-tie gala, the two men celebrated the culmination of those efforts – efforts that saw the pair, their investment partners, and hundreds of contractors and stakeholders survive supply chain disruptions, materials shortages, a drastically shortened construction timeline, and one pandemic-sized pivot.
The pandemic pivot Sitting in the newly refurbished, but classically svelte lobby of the MAC on a recent Tuesday, Jeffers and Janowiec got the chance to look at the project from a far different perch than they had back in March 2020. With $9.5 million in historic tax credits at their disposal, and an investor group that included themselves, as well as major financial institutions like U.S. Bank and Twain Financial Partners, the developers had been busy overseeing the gutting of the building’s middle five floors with plans to turn them into a 95-room, four-and-a-half star hotel that would be the catalyst for the project. Then the COVID-19 pandemic arrived, and things changed. Or rather, they stopped. 26 / BizTimes Milwaukee APRIL 25, 2022
PHOTO BY CARA SPOTO
BY CARA SPOTO, staff writer
“Our construction loan closing was supposed to be March 6 (2020) and our lender was primarily a hotel/hospitality construction lender,” Jeffers recalled. “We really had no idea what the depth of the pandemic was going to be, or how long it would last. But we knew we weren’t going to be able to close on a hotel at that time.” Faced with five gutted floors, and a project plan that no longer worked, Jeffers, Janowiec and their fellow investors went back to the drawing board. It took another eight months, but when the investor group finally emerged, they had a finished plan and financing in place for 54 market-rate apartments on floors eight to 12 of the building. Shifting a component of the MAC project from a hotel to apartments “was an easy decision, but it was an extremely difficult execution,” Jeffers said. “One thing we have always been really proud of, however, is that when we closed in November 2020 it was with the same group of capital partners that we were going to close with in March 2020 … and that was before the vaccine was out. So, we closed on a social club in the era of social distancing.”
Making it work What also took some doing, notes Janowiec, is finishing the project before the historic tax credits began to lose their value. “Because we had effectively obtained or had entered into an agreement for the tax credits under the hotel plan, at that point we had plenty of runway to get this thing done,” Janowiec said. “But when we ate up the rest of that year (2020) to basically design a heavily modified project, we lost half of our construction timeline.” To make the shortened timeline work, Janowiec and Jeffers worked with the primary contractor on the project, C.G. Schmidt, to come out the gate
Tony Janowiec of Interstate Development Partners and Josh Jeffers of J. Jeffers & Company, pose for a photo in the rooftop bar of the newly restored Milwaukee Athletic Club building, 758 N. Broadway. The pair teamed up to lead the $62 million renovation of the building, seeing the plan shift from a hotel and club concept, to one with 54 market-rate apartments, most rented by club members.
with a double-barreled, but finely tuned construction plan that included double and weekend shifts. “On a typical project, we would have had two full-time construction managers. On this one, we had four,” Janowiec noted. Luckily it was a schedule that suited Milwaukee-based C.G. Schmidt Inc. “We do a lot of K-12 education buildings, which means you have about 10 weeks for construction (over summer break) so you have to do a lot of preplanning and (early ordering),” said Eric Schmidt, president of C.G. Schmidt. Additionally, C.G. Schmidt helped make the project a success by working to get subcontractors – many who had given up on the MAC renovation – re-engaged. “Subcontractors would say, ‘Why I am going to give you guys another number? I already gave you numbers twice before.’ And we would tell them that we wouldn’t be involved if we didn’t think this was a project that was moving forward,” Schmidt said. He estimates upwards of 350 construction workers contributed in some way to the finished project – 70 of C.G. Schmidt’s own people and 200 to 300 tradesmen and women, from plumbers and electricians to painters, ceiling experts and tile workers. In the end, those efforts resulted in what Janowiec described as a 16-month construction project completed in 12 months – just in time to
PHOTO BY JAKE HILL PHOTOGRAPHY
PHOTO BY JAKE HILL PHOTOGRAPHY
ABOVE-RIGHT: Milwaukee Athletic Club members enjoy the restored rooftop bar at the club’s newly renovated 105-year-old building on April 9, during a ribbon cutting and black-tie gala event. Designed with the help of Three Sixty, the retro-inspired bar is now an all-season eatery, with an outdoor terrace providing skyline views. BELOW-RIGHT: Members and guests mingle in the restored Elephant Room bar on April 9. Constructed in 1948, contractors working on the Milwaukee Athletic Club’s $62 million renovation restored the original murals in the room and removed bamboo wallpaper that had been on the columns, returning them to a tile surface more closely resembling the 1948 design.
PHOTO BY JAKE HILL PHOTOGRAPHY
ABOVE: Members and their guests hobnob in the grand ballroom of Milwaukee Athletic Club during a black-tie gala on April 9 marking the end the $62 million renovation of the 105-yearold building at 758 N. Broadway.
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PHOTO BY JAKE HILL PHOTOGRAPHY
meet the historic tax credit deadline set back in March 2020 under the hotel plan. The memory of standing in the licensing office at City Hall to get their occupancy permit just before it closed for the New Year’s holiday on Dec. 31 is a vivid one for Janowiec and Jeffers. “It was an incalculable feeling of relief,” Janowiec recalls. “But everything lined up. … To actually place this in service by that date was nothing short of a miracle.”
A building to be proud of For Joe Kurth, chief operating officer at the MAC, the true miracle might be that the MAC will benefit long term from the pandemic pivot from the hotel plan to apartments. Kurth, previously general manager at The Pfister Hotel and the University of Notre Dame’s Morris Inn and the Notre Dame Conference Center, knows hotels, but he also knew that it would have been hard to make a hotel inside of a private club “feel right.” “Now those hotel rooms have been turned into those 54 apartments, most of which are leased by (MAC) members, so it has returned to this feeling of very personalized service, where the staff know
who you are, and know what your drink of choice is as you sit down at the bar,” Kurth said, who remembers the club’s lean years when he worked just around the corner at The Pfister. The new partnership between the club and the apartments has once again made the MAC a true jewel of the city, Kurth said. The project restored spaces that remain available to the public, like ballrooms with breathtaking chandeliers and the Elephant Room with its restored 1948 murals and retiled columns, as well as top-notch athletic and fitness facilities, and restaurants, like the rooftop bar and terrace, that are exclusive
Milwaukee Athletic Club members and guests tour the brand-new, turf-covered training center at the newly renovated building on April 9. The room sits on top of one the building’s swimming pools. Contractors filled the pool with large foam blocks, and then covered those with a slab.
benefits to MAC members. “There were over 500 members that stayed with us through the three-year construction project, and continued to pay dues,” Kurth added. “In the last year, over 300 new members have joined because this is the kind of the place that can make a difference in Milwaukee.” n
NOTABLES & RISING STARS 2022 Keep up with BizTimes’ 2022 roundup of the leaders making a difference throughout southeast Wisconsin. At companies across southeast Wisconsin, notable executives are running businesses, and investing in growth throughout the region. Rising Stars are mentoring, teaching and volunteering in their communities. The leaders profiled in these categories are nominated by their peers at work and in the community.
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The Re-imagined MAC
Building Milwaukee’s premier social club in the era of social distancing
I
n April 2022, members of the Milwaukee Athletic Club and the Milwaukee community celebrated the completion and grand re-opening of a $62 million historic renovation project that restored the Milwaukee Athletic Club to its former glory with the addition of some modern, state-of-the-art improvements. Josh Jeffers, founder and chief executive officer of Milwaukee-based J. Jeffers & Co. and Tony Janowiec, founder and chief executive officer of Milwaukee-based Interstate Development Partners embarked on the journey over four years ago. Despite several challenges, including the devastating COVID-19 pandemic, the pair and their supporters, never wavered.
MILWAUKEE ATHLETIC CLUB ADDRESS: 758 N. Broadway, Milwaukee PHONE NUMBER: 414-273-5080 EMAIL: membership@macwi.org DEVELOPERS: J . Jeffers & Co. & Interstate Development Partners WEBSITE: www.themacwi.com
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BIZTIMES MILWAUKEE: Can you discuss
the components of the Milwaukee Athletic Club renovation?
JOSH JEFFERS: “It was a total gut rehabil-
itation, a top to bottom renovation of a building that was built in 1917, with amazing thoughtfulness put into the aesthetics and the culture of the urban downtown Milwaukee business community. Unlike almost every other project we take on, this building has been continuously occupied since its inception. We needed to replace all the mechanical, electrical, and plumbing infrastructure throughout the entire building and bring everything up to present-day code compliance. The only way to accomplish this level of retrofit was to demolish everything and take it all down to the original frame. So, in addition to the external features and best-in-class amenities, a lot of the work that was done was also done behind the walls.”
What new features are available for patrons? TONY JANOWIEC: “We came into this know-
ing that the rehabilitation work was one slice of the pie. We did our research, not only the historical background research, but also (and early on), we knew that in order to honor this building and have it meet the demands of today’s members, tenants, guests and event goers, we would have to find the balance between what seems like a juxtaposition: an historical property with deep meaning to the City of Milwaukee and a technologically advanced social club that attracts people of all ages. And so, we began to tour social athletic clubs across the
country to educate ourselves on this niche industry. The goal was always to create Milwaukee’s best private club experience. A key takeaway from the research was that the member experience is built around experiential interactions. JEFFERS: “Adding to Tony’s remark on ‘ex-
periential interactions’ we embrace the fact that today, metro Milwaukee social clubs work a lot differently now than they used to… the world has changed in 105 years. The (former) club had outgrown the business model’s usefulness and the building itself had aged to the end of its useful life. The Milwaukee Athletic Club is restored and on top of the history, we’ve added contemporary technology for energy conservation, important security systems, co-working spaces, a chic rooftop bar, an outdoor rooftop area… and so much more. Today this social club is just that; the “social place to be.” It is a daily destination for health, activities, entertainment, for family and for a very fortunate few tenants, an amazing place to live. The finished Club features 54 apartment units, best in class fitness facilities, a new coed swimming pool and recreation area, golf swing suites, a dedicated co-working space with a café, billiards and shuffleboard. A major feature that has already become a huge success is the rooftop bar and dining experience that seats 180 people with outdoor entertaining areas. Throughout this entire project, what we’ve tried to do is incorporate the physical building features and amenities that are required to deliver a modernized social club experience.”
What was it that struck you about
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this property and why was it important for you to take on this restoration? JANOWIEC: “We were members and could
see the club had a building that was failing and a business model that was outdated. We also witnessed a highly positive, very resilient and engaged membership base. We couldn’t help ourselves and we suggested a solution. From the first time we began to put our ideas forward, knowing it may seem to be a kind of a crazy idea, but it had to be done. I remember talking to Josh and him saying something like, ‘Yeah, (it might be crazy), but it could save the MAC. How do we go to sleep at night knowing we could have done something if it ends up failing?’ One thing led to another, and with the strong will and determination of the MAC’s Board President, David Kriete, we had a project.”
What challenges did you encounter getting this project over the finish line? JANOWIEC: “I think one thing that sort of
surprised us was the diversion from a hotel centric project to one that included multi-family. We thought our original plan was a slam dunk. What we learned was that institutional lenders viewed this project differently than Josh and I did from a risk perspective. Then the pandemic hit, and we had no idea what was going to happen to our capital sources. There are a lot of achievements in this project but one of the miracle achievements I’d say is that we found a way to work with our original capital partners so they could sensibly still support a $62 million investment in a social club in the era of social distancing. There’s no real reason why that happened but that is exactly what occurred. This is the passion this community
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has for the property and for the Milwaukee Athletic Club then and now. Indeed, it was a real challenge. We’re proud of the fact that while our original closing got derailed, we closed in November 2020 with the exact same capital partners. We were completely blindsided by COVID, and it really blew up our original deal, but we spent the next eight months picking up the pieces and putting them back together and getting our original partners to believe in this new plan.”
What kept you going? What lessons did you learn from this project? JEFFERS: “There were probably 10,000
points during this project where I think a more traditional developer would have given up. I think for us, it was really the relentless drive to see that vision realized and getting the Milwaukee Athletic Club back up again. In addition, this project is literally in the heart of downtown Milwaukee, and deep in the heart of many Milwaukeeans. There was a lot of bobbing and weaving and adapting to avoid some (perceived) asteroids; some were really small and some, like the pandemic, were not. A true business lesson learned, or rather a lesson reaffirmed, is the importance of communication and gaining buy-in from a larger constituency on a development project. In the case of the MAC, there were many smaller challenges and also some very huge hurdles that we overcame because we had a determined team; a team rowing in the same direction. A team focused on the realization of this project in metro Milwaukee as you see it completed today. As for J. Jeffers & Co., until now, we had no single project with so many stakeholders - not even close. So many people, truly talented, dedicated, and impassioned
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people that joined the team for the whole journey, this is what made the difference.”
Let’s talk about the partners you worked with on this project. Who are they and what was working with them on this project like? JANOWIEC: In reality, it took a village. We
had so many great people that helped push this forward during an extremely difficult time. In addition to our working partners we had dedicated MAC members, many of whom are of multi-generational MAC member families, and really involved people like David Kriete who literally willed this to happen and inspired us to keep going. Ted Kellner, Pat English, Paul Stewart, Paul Sweeney and so many others who were always a phone call away mornings, nights, or weekends. We had partners who are the best and brightest and most successful leaders in the community advising us along the way.” JEFFERS: “Our investors normally are lim-
ited partner investors who make a capital
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contribution and then wait for us to send them quarterly reports. In this case we had the benefit of some of the most experienced businesspeople in the Milwaukee area as a sounding board for us and it was incredibly valuable to bringing this project to fruition. With the changes to the project, our construction team partners evolved along the way as well. Our original partners, the ones that were with us the entire way, included Kahler Slater and GRAEF USA. Our Capital partners included, Ardent, Twain Financial, U.S. Bank National Association, and Cedar Rapids Bank & Trust. ECS Midwest, LLC did the consulting for the project. Hays Companies, Inc., brokered our insurance which was provided by CNA Insurance. After changing general contractors a few times, CG Schmidt Inc., got involved in late 2019 and immediately spurred into action and completed the project on-time in an astonishing 11-month construction timeframe. To build three custom spaces in the building, including the elaborate rooftop restaurant, the historic rehab of the famed Elephant Room and our new coworking lounge, we
turned over those spaces to Three Sixty who custom designed, fabricated and constructed them on a turnkey basis in less than six months. Our contractor selected a strong team of sub-contractors and suppliers including Acoustech Supply, Inc., Arbon Equipment Corp., Badger Swimpools, Inc., Baseman Bros, Inc., Berglund Construction, Blair Fire Protection, Butters Fetting Com-
& Sheet Metal, Inc., Munson, Inc., Next Electric, LLC, Performance Contracting, Inc., Regency Janitorial Service, Inc., Rockford Central Tile and Terrazzo Company, Schindler Elevator Corporation, Spray Insulations, Inc., Stuart Dean Co., Inc., Timothy J. McGuire, Veit & Company, Inc., and Integrity Environmental services, Inc. These companies all worked diligently through
“ We knew we had to deliver this because, if we didn’t, the experiences, the connections, the interactions, the memories, wouldn’t have a place to happen.” — Tony Janowiec, CEO of Interstate Development Partners
pany, Carroll Seating Company, Inc., Common Links Construction, LLC, Core Tech, Construction Supply & Erection, Inc., Drexel Building Supply Inc., Geis Building Products, Inc., Hetzel Tile & Marble, Inc., Horner Plumbing Company, Inc., Klein Dickert Milwaukee, Inc., L&A Crystal, Langer Roofing
COVID, supply chain challenges, and workforce shortages to complete the project on time. They all took on an enormous amount of risk and collaborated with us as we were redesigning the project while building was already underway. We can’t thank our partners enough.”
SHAPING MILWAUKEE’S SKYLINE FOR OVER 100 YEARS Trusted building partner of the newly renovated Milwaukee Athletic Club
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What does the completion of this renovation mean for the community? JANOWIEC: “I don’t think any of us really
understood the demand for this very diverse but exclusive society in the city of Milwaukee. That, to me, was the daily motivation. We knew we had to deliver this because if we didn’t the experiences, the connections, the interactions, the memories, wouldn’t have a place to happen. There is nothing that offers the interactions the MAC does for this community. The community needs this space. The MAC from a use perspective stands the test of time. It’s the one that keeps going and that’s because of the people. Now that can continue.”
What is your vision for the future of this building/this space? JEFFERS: “The gala was a really great op-
portunity to step back and appreciate the finished product but also an opportunity to be amazed by the amazement of others. Tony and I have been so laser-focused
on all the little details that I think it really gave us an opportunity to walk through and break in the building with 600 of our closest friends. In doing so, we were able to see there’s potential to improve upon some things in the future as the club grows and evolves. Right now, we’re trying to figure out what the max member-
there is still so much more we can do.” JANOWIEC: “I agree, there’s potential for
growth opportunities. Right now, we’re looking at whether that (white-box space) could be a third-party tenant or developed internally. We anticipate growth. Between Josh and I we own the north half of this
“ I think, for us, it was really the relentless drive to see that vision realized and getting the Milwaukee Athletic Club back up again. There was a lot of bobbing and weaving and adapting to sometimes really small things and sometimes really big things like the COVID-19 pandemic.”
— Josh Jeffers, CEO of J. Jeffers & Co.
ship of the Club should be. It’s designed to accommodate a true number of members. There’s room for expansion including more golf swing suites and a 6,000 square foot white-box space on the ground floor for a future restaurant. As amazing as it all is,
CONGRATS J. JEFFERS & CO. AND INTERSTATE DEVELOPMENT PARTNERS
block all the way to Wells Street too, so that’s an interesting development block to consider. For future uses, we control that. We’ve already started concepting what we might do to the north half of that block. We see a lot of potential.” N
A proud partner on this MAC project
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THE EXECUTIVE LUXURY LIVING
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A LOOK AT SOUTHEAST E R N W I S C O NS I N’ S FI NE S T HO ME S FO R S A L E , LUXURY HOTEL ROOMS , TO P E N TE RTAI NME N T O PTI O NS A N D R E S TA U R A N T S .
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HOTELS
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W3415 Snake Road, Town of Linn $20.8 million The Villa Hortensia is one of five legacy homes designed by architect Howard Van Doren Shaw, who collaborated with landscape architect Jens Jensen to create this lake home in 1906 for meatpacking tycoon Edwin Swift. The 12,396-square-foot Mediterranean-style home has six bedrooms, 10 full bathrooms and three half bathrooms as well as a den, sunroom and living room. The 20-acre site features a guest house and a boat house, and has 502 feet of Geneva Lake frontage with two piers and privacy from the shore path. It is listed for sale by David Curry of Geneva Lakefront Realty.
DAVID CURRY OF GENEVA LAKEFRONT REALTY LLC
LUXURY HOMES ON THE MARKET IN SOUTHEASTERN WISCONSIN
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LUXURY HOMES ON THE MARKET IN SOUTHEASTERN WISCONSIN
VRX MEDIA GROUP, RANGELINE PHOTOGRAPHY
5270 N. Lake Drive, Whitefish Bay $6.95 million Situated on 3 acres, the Herman and Claudia Uihlein residence demonstrates Italian Renaissance architecture and old-world craftsmanship reimagined for modern living. The nine-bedroom home has been extensively restored, and the current owner of the property has invested in significant upgrades and maintenance. With spaces both intimate and expansive, the home is the ideal location and setting for family gatherings and events of any size. It has a new kitchen, boiler and air conditioning systems, renovated baths, and wealth of fine finishes. It is listed for sale by the Peter Mahler Team of Mahler Sotheby’s International Realty.
N1588 Lakeside Lane, Town of Linn $6.3 million This five-bedroom, six-and-a-half-bath South Shore Club home features views of Geneva Lake and is situated steps away from the pool and clubhouse. The 5,374-square-foot home features a great room with beamed cathedral ceilings, fireplace and wet bar, an open kitchen concept with adjacent dining room, and four-season screened porch. There’s also the main-floor primary bedroom, four guest rooms, a deck for entertaining, family room, game room, exercise room, office and lower-level patio. SSC owners’ amenities include full waterfront access, boating, tennis, kids’ playground area, outdoor pool and clubhouse. It is listed for sale by Bob Webster of Compass.
36 / BizTimes Milwaukee APRIL 25, 2022
LUXURY HOMES ON THE MARKET IN SOUTHEASTERN WISCONSIN
4410 Carlisle Court, Brookfield $6 million Nestled away on 4 wooded acres in the Berkshire Hills neighborhood, this Tuscan-style villa features a private guest suite, six fireplaces, and a full-exposure lower level with a media room, bar area and full kitchen, golf simulator and an exercise room. The 11,000-square-foot home has seven bedrooms, five full bathrooms, and four half bathrooms. It is listed for sale by Nicholas Schoenheider of Regency Realty.
9303 N. Valley Hill Road, River Hills $5.99 million The 16,000-square-foot homes sits on a 16-acre newly landscaped property with a guest house, renovated pool house, refurbished blue stone patios, tennis courts, garden, and cool potting shed. The garage and storage area spans 10 total spaces for vehicles. Located just 12 minutes from downtown Milwaukee, the home’s west-facing sunsets and country views provide a feel of being further away from the city. The home has six bedrooms, five full bathrooms, a chef’s kitchen with two islands, butler’s pantry, and summer kitchen that opens to a great room with a fireplace. It is listed for sale by Suzanne Powers Realty Group.
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LUXURY HOMES ON THE MARKET IN SOUTHEASTERN WISCONSIN
N57 W30678 County Highway K, Merton $4.5 million This 2,924-square-foot gem on Beaver Lake has more than 200 square feet of sandy-bottom water frontage. The expansive deck that follows the entire back of the house offers plenty of room to entertain or to sit back and relax. The main house has three bedrooms and two full and three half baths. The 1,232-square-foot boat and guest house has two bedrooms and a full bath. This house also features an attached two-car garage, plus an additional three-car detached garage.
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FEATURED HOTEL ROOMS IN SOUTHEASTERN WISCONSIN
The American Club: Eau de Vie Suite PRICE: Seasonal, available upon
request
LOCATION: 419 Highland Drive, Kohler One of the most exclusive lodging options at The American Club, the Eau de Vie Suite offers a tranquil yet lavish retreat. The suite features rejuvenating water experiences with state-ofthe-art Kohler plumbing products, including a custom shower experience with a digital thermostatic valve system with steam and body sprays, a sõk overflowing bath with color light therapy and four-paneled glass fireplace adjacent to the bath. A stay at The American Club offers access to Blackwolf Run and Whistling Straits, several restaurants, and options for using a 500-acre private wilderness preserve and the Kohler Waters Spa.
Saint Kate – The Arts Hotel: Ovation Suite PRICE: $2,000-4,000 per night LOCATION: 139 E. Kilbourn Ave.,
Milwaukee
The Ovation Suite is the most premier space at Saint Kate. It features two large bedrooms, three luxurious bathrooms, an oversized salon, dining room and living area. Guests will feel like they are at home while also taking in local artwork and panoramic views of Milwaukee. Guests can also tap into their own creativity: Each suite includes a record player with classic vinyl records, drawing paper and colored pencils, and a ukulele. Saint Kate – The Arts Hotel itself features galleries and a permanent art collection, nightly live music and a variety of culinary offerings. The hotel is also pet friendly.
biztimes.com / 39
Choose Wisconsin by Choosing to Fly MKE Airlines add flights at airports where passengers board flights. Translation: we should all start and end our trips at Milwaukee Mitchell International Airport (MKE) to help our community get more air service to more places. Business travel is expected to surge this year. As the world emerges from the pandemic, MKE is more than ready to meet the pent-up demand in business and leisure travel, after setting a record for new air service additions in 2021. With JetBlue, Spirit, and Sun Country entering the Milwaukee market and existing airlines enhancing their schedules from MKE, air carriers added new or increased service from Milwaukee to 20 nonstop destinations. Many of these markets had not been served from MKE before.
Seattle Boston
Toronto Minneapolis
New York (LGA, JFK) Newark Philadelphia Baltimore Washington, D.C.
Detroit Chicago
Salt Lake City
Denver
St. Louis
Charlotte
Nashville
Las Vegas Los Angeles
Myrtle Beach
Atlanta Phoenix Dallas
(DFW, DAL)
Houston
(IAH, HOU)
Los Cabos, Mexico
Tampa
Orlando
Fort Myers
Cancun, Mexico
Fort Lauderdale Miami
Punta Cana, Dominican Republic Montego Bay, Jamaica
Currently, MKE offers nonstop flights to 35+ destinations coast-to-coast, and more than 200 international destinations are available from Milwaukee with just one connection. MKE has also made significant upgrades to the airport itself over the past few years, including adding new shops and restaurants, renovating the baggage claim area, and introducing unlimited free Wi-Fi for all passengers. The new MKE SmartPark app allows travelers to use their smartphone to enter and exit the parking facility, plus earn loyalty points that can be redeemed for free parking. Even better, during the cold weather months, MKE even added the only coat check service at a major U.S. airport.
Fly Easy.
All of this could be why MKE received a 2021 Best Airport – North America award from Airports Council International. And, with health and safety a bigger priority for many, travelers know they can avoid the massive crowds found at large hub airports. At MKE, travelers enjoy an easy travel experience from check-in and security all the way to that new and improved baggage claim. Not only is it more convenient and efficient to choose to fly from MKE, but you’re also fueling the local and state economies. Choosing MKE results in the retention and creation of hundreds of jobs in both the passenger and freight sectors and adds about $233 million to Wisconsin’s economy. Locally-produced goods can be efficiently transported to markets throughout the US and around the world while goods not produced locally can be easily imported. These factors can play an important role in attracting large businesses and corporations to the area. Flying more often from your hometown airport can help add dozens of new flights to the schedule, making it even more convenient than ever before to choose MKE. And not only are you contributing to your local economy by choosing MKE, you’re also contributing to your company’s bottom line. MKE offers service from all of the major U.S. carriers and, with fuel prices surging, you’ll save on ground transportation by using our airport close to home. Parking options at MKE also tend to be less expensive with easier access. So, as you start to plan your next trip, choose to fly and rest easy knowing you’ve chosen the best option by choosing MKE. FLYMKE.COM
$233 Million Reasons TO CHOOSE YOUR HOMETOWN AIRPORT
If we all choose MKE over a Chicago airport, we can add dozens of new flights, 600 new jobs ... and $233 Million to Wisconsin’s economy. Fly MKE!
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FEATURED HOTEL ROOMS IN SOUTHEASTERN WISCONSIN
The Iron Horse Hotel: Junior Suite King PRICE: $400 per night LOCATION: 500 W. Florida St.,
Milwaukee
At 600 square feet, the Junior Suite King room at The Iron Horse combines the Milwaukee grit and quality craftsmanship seen in all of the hotel’s guest rooms with additional space to relax. It also includes a locally curated private bar, seating area, oversized shower and large working desk. Located on the sixth floor, the suite overlooks the Walker’s Point neighborhood. Ash, the hotel’s main dining destination, has a simple, seasonal American menu centered on the use of fire and smoke. Outside, The Yard offers an urban oasis with communal fire pits, cozy lounge furniture and a pet-friendly environment.
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TOP ENTERTAINMENT OPTIONS IN SOUTHEASTERN WISCONSIN
Luxurious spa day Need to get away without going very far? Look no further than a luxurious spa day at WELL Spa. WELL, located within The Pfister hotel in downtown Milwaukee, offers a variety of relaxing and rejuvenating services ranging from massages to full-body treatments. For the quintessential WELL experience, consider the signature massage. This 120-minute spa experience includes a massage utilizing hot stones, skin-quenching Pure Fiji coconut oil, a warm coconut oil scalp massage and a softening hand and foot treatment. Your choice of essential oils and hot towels is incorporated into the grouping of services. Every treatment is personally customized. The spa’s two-room private suites offer added luxury, replete with personal private restrooms, walk-in showers, heated floors, heated robes and heated treatment tables, slippers, back and neck hot packs, steam-free mirrors and therapeutic essential oils. The cost for the “Relax Me” service is $260, and $340 for the deep-tissue service.
Bucks game – West Bend Lofts You may have cheered on the Milwaukee Bucks from the seating bowl, but why not level up by taking in the game from the West Bend Lofts? An all-inclusive premium space located on the Suite Level at Fiserv Forum, the West Bend Lofts offer exceptional views of Bucks games, Marquette basketball games, concerts and special events. A mixture of comfort and class, the private loft features opera-style boxes with court-facing seats that also provide access to a premium lounge. The space offers seating for four, six or eight guests. No need to make your way through the crowds or wait in lines: Tickets come with VIP parking and a VIP arena entrance. Food, beer, wine and liquor are included. A full membership will get you access to Bucks and Marquette basketball home games, family shows and concerts. Individual rentals for single events are also available. Rates vary based on the event and group size. biztimes.com / 43
TOP ENTERTAINMENT OPTIONS IN SOUTHEASTERN WISCONSIN
Broadway show VIP package You don’t have to fly to New York City for a spectacular Broadway show. For the ultimate –local – musical theater experience, the Marcus Center in Milwaukee offers a prime pair of seats in the Center Orchestra section of Uihlein Hall, a private multi-course dinner with wine pairing, access to the VIP Lounge before the show and during intermission, VIP parking and a private behind-the-scenes tour. The package costs $2,000 and can be scaled up for a group of friends, family or clients and for other Marcus Center events beyond its Broadway series. The center’s 2022-’23 season includes beloved shows, such as “Les Misérables,” “My Fair Lady” and “Hairspray,” along with newer fan favorites: “Disney’s Frozen,” “Six” and “Beautiful: The Carole King Musical.”
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HIGH-END RESTAURANTS IN SOUTHEASTERN WISCONSIN
Ardent Ardent in Milwaukee seeks to blend the earthy with the contemporary. The mood of both the space and the dishes is comfortable yet refined. Ardent’s menu features simple ingredients that have been elevated in a space that accommodates intimate conversation. The price for the 12-course tasting menu is $135 per person.
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1. Beef Tartare - Beef from Carlisle Farm (chef and owner Justin Carlisle’s family farm in Sparta), deviled egg mousse, roasted bone marrow and chive. 2. Caviar - Potato pancake, pear gelée, pickled pear, creme fraiche and maple vinegar. 3. Cod Skin Snack - Cod roe, gribiche, malt vinegar powder and dill pollen. 4. Black Truffle Mochi Doughnut - Truffle sugar, Rush Creek Reserve cheese mousse and shaved black truffle. 5. Opening Pairing Cocktail - Gin, Concord grape vinegar, lime and sage. 6. Sea Legs Cocktail - Aged rum, allspice dram, pineapple, ginger beer and nutmeg.
Union House Union House in Genesee Depot is known for its unique menu, featuring wild game infused with classic fine dining. The menu is driven by ingredients and is constantly developing throughout the year. The restaurant also features an extensive wine and scotch list with selections from around the world.
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1. 8-ounce Center-Cut Filet Mignon, $58 2. Chorizo Corn Bread-Stuffed Quail (rotating wild game special), $36-50 3. Braised and Grilled Spanish Octopus (rotating seafood special), $30-50 4. Pan-Seared Diver Scallops, $42
HIGH-END RESTAURANTS IN SOUTHEASTERN WISCONSIN
Carnevor Classic steakhouse meets modern experiences at Carnevor in downtown Milwaukee. Featuring an award-winning wine list, classic and craft cocktails, and domestic and wagyu steak offerings. 1. Japanese Wagyu Filet Mignon, $168 per 6 ounces - Wagyu beef, “A-5” grade, filet mignon from Hokkaido, Japan. Served with Tosazu dipping sauce and Kobe beef jus. 2. Bone-In Ribeye, $105 per 24 ounces - Sixty-day-dry-aged bone-in Ribeye steak. 3. Twin Tales, $61 - Twin cold water 5-ounce lobster tails, slow roasted and served with steamed vegetables. 4. Seafood Fix, market price- Includes Alaskan king crab legs, colossal shrimp, mussels and oysters.
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Bacchus
First course: 1. Spanish Octopus - accompanied by chorizo, fingerling potatoes, Manchego cheese and saffron aioli. 2. Foie Gras - Duck foie gras torchon with pine nut butter, Concord grape compote and toasted brioche. Second Course: 3. Australian Wagyu Beef Short Rib - served with marinated Japanese eggplant and a black garlic vinaigrette. 4. Champagne – Bacchus has one of the largest, most comprehensive wine lists in the city, and features several categories of champagne.
THE BARTOLOTTA RESTAURANTS
Bacchus – A Bartolotta Restaurant in downtown Milwaukee offers a sleek, new-American dining experience with views of Lake Michigan. The restaurant boasts a wine list of over 570 offerings and has up to 1,000 bottles displayed in its climate-controlled cabinet. The name Bacchus is a nod to the Roman god of wine. Bacchus’ three-course fixed menu is $65 per person.
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Strategies MANAGEMENT
best work, there are negative implications. Further, over time, Tom is likely to become resentful that his time is not being respected by his leaders, which will certainly impact the climate in the workplace.
Beware of the invisible agreement IN 2009, I wrote an article for BizTimes Milwaukee about “invisible agreements.” Thirteen years later, I have decided to expand on this conversation and invite a greater awareness about “invisible agreements” in the workplace. WHAT IS AN INVISIBLE AGREEMENT? An invisible agreement occurs when a behavior is repeated three or more times without conversation or negotiation. Consider something as seemingly insignificant as where employees sit in the lunchroom. If two or three employees sit at the same table for three to four days in a row, others will avoid that table and may even say, “Oh, that’s John and Andy’s lunch table.” Another example, which I shared in the 2009 article, is a scenario that is more common than not. Tom, a manager in an architectural firm, decides to arrive at the office a half an hour before the agreed upon official start of the workday. He arrives early to enjoy a cup of coffee, reflect on the previous day and prepare for the day ahead. Tom’s boss gets wind of his early presence in the office and calls to make a request. Tom responds. This behavior is repeated with other leaders who make requests of Tom during his intended preparation time. Tom complies. Both Tom and these leaders have now created an invisible agreement: Tom will arrive early and he will respond to the leader requests prior to the official start of the day. On the surface, this may not seem like a big deal. Some would suggest that this dynamic does not appear to create a negative impact in the workplace. Yet, if Tom needs time to settle in to do his 48 / BizTimes Milwaukee APRIL 25, 2022
ADDITIONAL EXAMPLES OF INVISIBLE AGREEMENTS » Arriving late and/or unprepared for a meeting. » Blaming others for mistakes. » Candid feedback is not encouraged or supported. » Conducting personal business at work is tolerated. » Gender or racial bias is accepted in the workplace. HOW TO ADDRESS DESTRUCTIVE INVISIBLE AGREEMENTS Invisible agreements in the workplace can be changed through courageous conversation and leadership clarity. The process includes: 1. Identifying the invisible agreement. 2. Providing the case for its cost to the business (for example, low morale, reduced trust, etc.). 3. Communicating what the expectation is instead. 4. Providing the business case for the expected change. 5. Determining consequences if the change is not made.
destructive to the people or the business and perhaps even support a healthy culture. Here are some examples: » A college president sends handwritten notes, expressing gratitude. » A partner in a CPA firm consistently offers support to employees and clients who experience illness or loss. » The president of an NFL team answers his own telephone. WHAT ARE THE INVISIBLE AGREEMENTS WITHIN YOUR ORGANIZATION? » Are they positive or destructive invisible agreements? » What preparation do you need to address the invisible agreements that no longer support the best in your organization? » Who are the people you need to invite into the conversation? » What do you want as an outcome? » What will accountability look like? We have many opportunities and a responsibility to reflect on how we do business. Identifying invisible agreements will help to identify what supports the best in our work, or not. Enjoy the exploration. n
ACCOUNTABILITY AND MUTUAL AGREEMENT Whether a leader is expecting a change to an invisible agreement or any expected behavior change, we have learned that it is helpful for the leader to ask the employee this question: “In the event that you are not meeting the expectation, how would you like me to hold you accountable?” Inviting that question engages the employee in yet another level of responsibility and accountability.
KAREN VERNAL
POSITIVE INVISIBLE AGREEMENTS There are invisible agreements that evolve over time and are working. The agreement is not
Karen Vernal is an executive coach and consultant with Vernal LLC, a Milwaukeebased leadership and organizational firm. She can be reached at Karen@ccvernal.com.
LEADERSHIP
Get them on board Characteristics of highperforming independent directors MANY SENIOR LEADERS want to believe they could be superior independent directors because of their experience, expertise and accomplishments. Unfortunately, only a small percentage are boardroom ready or, dare I say, boardroom worthy. A strong board of directors is a powerful strategic asset for a company. At the core of a collegial, well-functioning independent board are trust, respect, open debate and healthy communications. WHAT INDEPENDENT MEANS A frequent question I hear is, “What qualifies a board member as independent?” My answer is that the candidate: » Has no political agenda. » Isn’t a “yes man” or “yes woman” but respects others. » Has never been in the same social circle as the directors or owners where any type of leverage could be used, as in, “I saw you drunk at the country club Christmas party.” » Isn’t a personal friend but is friendly. » Has no business relationships with the company (customers, suppliers, consultants, bankers, lawyers, accountants, etc.). » Has no family connection. » Is fact-based and direct. » Isn’t emotional and has no hidden agenda. Executives with high emotional intelligence excel in a boardroom. These transformational leaders inspire and influence others by creating trust through effective communication.
They must rely on their wisdom and excellent judgment. These attributes typically come from people with gray hair. They have experienced many challenges, overcome adversity and have many successes to prove it. Experience is often thought to be the key criteria for a board member. The traditional “balanced board” would consist of senior leaders who, now or in the past, were responsible for tactics and strategies in multiple areas such as sales/marketing, finance, operations or technology. More recently, there’s been a high demand for top executive talent in areas such as digital transformation, cybersecurity, human capital management and sustainability. HOW TO FIND THE PERFECT INDEPENDENT MEMBER The average age and years of experience of board members is likely to decline and may result in companies appointing younger leaders to their corporate boards. That’s because there will be a new generation of leaders and the search for a broader set of director skills. Although having these diverse skill sets in the boardroom is important to good strategic planning and corporate oversight, don’t overlook the soft skills and emotional intelligence as the real differentiators. These six characteristics and behaviors in executives are essential when recruiting independent board members: 1. Character - Are their actions on target, respected and remembered? This is often referred to as “the impact factor.” 2. Integrity - This means adhering to a strict steadfast moral code with unimpaired judgment and behavior. Can you trust them to do the right thing and meet high ethical standards? 3. Success - Look for people who have a consistent track record of success in their personal and professional lives. Are they highly motivated, highly productive and do they love a challenge? Are they outstanding in what they do? 4. Servant leadership - They make sure that accountable teams have the authority and
resources to achieve the company’s commitments. Do they build and maintain positive relationships by serving others? Are they effective mentors or sounding boards? 5. A killer instinct - This means being able to make correct and tough decisions with the minimum amount of information, in the shortest amount of time. Are they able to control their emotions and be decisive? 6. Collegial - Do they share equal consideration, power or authority with their peers while being direct, independent and focused communicators? Are they capable of understanding other viewpoints and challenging them respectfully with intelligent questions? A well-functioning board has people with all of those qualities. A special chemistry or unique boardroom dynamic often reflects the values of the corporation and directors. Those characteristics build on one another. Board members develop mutual respect, which leads to trust. They can digest information more quickly and make tough, timely decisions. Those six characteristics easily result in the most valuable and productive independent directors. n
RAND M c NALLY Rand McNally is a Vistage chair, retired chief executive officer, consultant to private companies and principal of HurdMcNally, which is a board of directors search firm for privately-owned companies in the Upper Midwest. He can be reached at Rand.McNally@HurdMcNally.com. biztimes.com / 49
Strategies INNOVATION
AI and human interaction How to get employees to adapt to new technology EARLIER THIS YEAR, Americans learned about NASA’s Perseverance rover on Mars after a 290-million-mile, seven-month journey from Earth. More importantly, Perseverance performed perfectly, sending home exhilarating video footage as it landed. And NASA added to its collection of robots exploring Mars. But what most of us don’t know is that the wheels on that successful rover were manufactured in part thanks to the efforts of Scot Forge Co., an Illinois-based company with strong ties to Wisconsin. How did they make that happen? They have successfully integrated the use of artificial intelligence, robotics and human beings working at the plant. Most Americans interact with artificial intelligence daily. For example, oftentimes when Americans fill prescriptions these days they talk to robots driven by artificial intelligence. They are literally having conversations with automated programs and not humans. We now live in a brave new world and are more dependent upon artificial intelligence than any of us could have imagined just five years ago. Many Americans enjoy the interaction with technology as they create playlists of their favorite songs. What’s not to like? In a lead Harvard Business Review article, authors H. James Wilson, global managing director, and Paul Doherty, chief executive officer of technology, both at Accenture, delineate many of the problems and pitfalls that can occur when human 50 / BizTimes Milwaukee APRIL 25, 2022
beings must interact daily using artificial intelligence and robotics. For example, many major companies now use chatbots to answer routine questions by customers and even employees. That is an efficient, cost-saving concept but, like any new technology, can become a disaster. Personally, I have received multiple answers to the same question from a website chatbot, which made me very suspicious. So, if your company chooses to go down the path of extensive use of artificial intelligence, there are many caveats to consider during the implementation process. YOUR COMPANY’S CULTURE Employees do not necessarily embrace new technology because it could threaten job security and, more importantly, requires them to develop a whole new set of skills to survive in their positions. Most employees, like most human beings, are reluctant to change habits. That can only be overcome if the organization has a culture of trust. Scot Forge is an employee-owned company, which means the employees financially benefit from the cost savings rendered by integrating new technology. FOCUSING ON THE ADVANTAGES TO EMPLOYEES Mercedes-Benz wanted to offer customers the opportunity to select individualized S-class sedans, which was next to impossible with their traditional rigid manufacturing processes. Therefore, Mercedes replaced some of those robots with AI-enabled cobots (collaborative robot), enabling their employees to guide robots to do undesirable tasks like lifting heavy parts of an automobile. As a result, they were in control while reducing the physical demands of their jobs. RETHINKING TRADITIONAL JOB TITLES AI and robotics have upended the traditional top-down types of management-driven job definitions. What’s now needed is employees who have a wide range of skills and an openness to taking advantage of interactions with machines. The authors of the article call these “fusion skills.” Scot Forge IT operations and development
manager Dave Fallon pointed out that they have created teams working with students from the Milwaukee School of Engineering Data Science Department. The students were looking for projects, and Scot Forge needed their talent to create new data-driven solutions to perplexing problems. That included analysis of chemical components needed to reengineer the forging process, simplify it and reduce costs. Scot Forge’s willingness to assemble teams from across its company to work with MSOE students allowed them to create new and innovative ways to forge metal. This approach would be anathema to traditional top-down companies requiring rigid job descriptions. We are still at the dawn of this technology revolution, and most companies have not even scratched the surface of what’s possible. But as you go down this path, step back and slowly identify those processes or products that can be reimagined through interaction between humans, artificial intelligence, and robots. Do not pronounce grandiose goals but select small visible projects that people can work on collaboratively and then point to those results and celebrate throughout the company. Most importantly, share the financial success with the employees who made interaction with New Age technology possible. n
DAN STEININGER Dan Steininger, author, national and international speaker, business advisor and president of Steininger & Associates LLC, which helps companies drive innovation. He can be reached at DSteinin@execpc.com.
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BizConnections BIZ UPDATE
BIZ PEOPLE
SYMBIONT’S INNOVATIONS AND GROWTH LEADS TO LARGER OFFICE
Due to continued growth, Symbiont Science, Engineering and Construction, Inc., has moved to the 5th floor within Summit Place in Milwaukee. Symbiont remains in the same complex in which the firm has headquartered since 2006. With this move to Suite 3500, at 35,801 square feet and a more than 30% larger space, Symbiont better fosters employee collaboration and has the space needed to add staff members to serve its energy, manufacturing, and municipal clients.
RETAILING & RESTAURANTS
Chris Schaefer Joins Marcus Hotels & Resorts as Vice President of Food and Beverage
Throughout Symbiont’s four decades, it has always focused on clients: listening to them, understanding their needs, and collaborating to help achieve their goals through holistic, innovative solutions. It is this approach and dedication to doing what is right for clients that built Symbiont and still makes the firm successful. The only address change is to a new suite number. Symbiont Science, Engineering and Construction, Inc. 6737 West Washington Street Suite 3500 Milwaukee, WI 53214-5647
BANKING
MANUFACTURING Ken Strom joins Wisconsin Bank & Trust
Ken Strom has joined Wisconsin Bank & Trust serving as a Senior Vice President, Commercial Real Estate. Ken has over 15 years of experience in commercial real estate lending with broad experience providing comprehensive and creative financing solutions across all property types on a local and national scale. He will be directly responsible for growing the commercial real estate presence and portfolio across the entirety of Wisconsin Bank & Trust. Ken is a graduate of UW-Madison with business degrees in Real Estate and Finance. WBT is a member bank of HTLF Inc, an $19 billion holding company.
HQ 414.291.8840
ANNOUNCEMENT To place your listing, or for more information, please visit biztimes.com/bizconnect
As VP of food and beverage, Chris will oversee catering, banquets, and more than 40 restaurants, bars and lounges across the company’s 17 properties. He will also lead strategic planning, restaurant design and concepting, and talent development.
BizPeople Highlight a new hire, promotion or accolade and share it with readers throughout southeastern Wisconsin. Visit biztimes.com/bizconnect to submit your news!
52 / BizTimes Milwaukee APRIL 25, 2022
Advertising Section: New Hires, Promotions and Accolades
Perlick Hires New Chief Operating Officer
Perlick is pleased to welcome Julian Wiles as our new Chief Operating Officer. Julian brings over 20 years of experience in manufacturing and logistics operations, including his recent roles as Senior VP of North American Operations for Truvant, and VP of Operations for M Holland. Prior, Julian spent 18 years at SC Johnson in several Supply Chain roles including Global Lean and Global Logistics and Manufacturing. Based in Milwaukee, WI, for over 100 years, Perlick designs, engineers and manufactures luxury refrigeration equipment and systems for both homes and the bar, restaurant and beverage industries.
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NONPROFIT BETTY BRINN CHILDREN’S MUSEUM DROPS PLANS FOR CO-LOCATION AT NEW MILWAUKEE PUBLIC MUSEUM Betty Brinn Children’s Museum has decided not to co-locate its museum with the new Milwaukee Public Museum, citing changes in its budget and inflationary pressures. Plans called for Betty Brinn to occupy 33,000 square feet specifically designed for the children’s museum within the planned 230,000-square-foot public museum building, which will be built at the northeast corner of North Sixth Street and West McKinley Avenue in downtown Milwaukee. The children’s museum recently announced it has parted ways with the MPM project and has decided to not pursue a new construction building at
the moment. Betty Brinn will remain at its current location in the O’Donnell Park complex near the downtown lakefront while it considers other options, the statement said. The museum has been in its current home for 27 years. Leaders have previously said it is too small for the museum’s needs. MPM continues to move forward with its $240 million museum project, having recently secured $45 million from the county and $40 million in state funding. It’s expected to soon go public with a $150 million fundraising campaign. — Lauren Anderson, staff writer
c alendar The Women & Girls Fund of Waukesha County will host its 38th annual Women of Distinction luncheon honoring four Waukesha County women and a Muskego High School student from 11:30 a.m.-1:30 p.m. on Friday, May 13, at the Brookfield Conference Center, 325 S. Moorland Road, Brookfield. More information is available at wgfwaukeshacounty.org. The Lupus Foundation of America Wisconsin Chapter will host its Walk to End Lupus Now on Saturday, May 14, at Hoyt Park, 1800 N. Swan Boulevard, Wauwatosa. The event raises awareness and funds for lupus research, education and support. More information is available at lupuswi.org. Kathy’s House will host its 2022 gala, A House of Harmony, on Thursday, May 19, at The Westin Milwaukee hotel, 550 N. Van Buren St., Milwaukee, beginning at 5 p.m. The event will include raffles, auctions, awards and a dinner. More information is available at kathys-house.org.
D O N AT I O N R O U N D U P The Zoological Society of Milwaukee received a $250,000 grant from Woodland Park Zoo to use toward growing its empathy plans, goals and programs. | A. O. Smith Corp. and the A. O. Smith Foundation made a $100,000 donation to the American Red Cross to help support humanitarian relief efforts in Ukraine. | Potawatomi Hotel & Casino’s Heart of Canal Street program gave $100,000 to Hunger Task Force’s Student DoorDash program, which provides up to 350 kids living in food desserts with boxes of food each week. | Kohl’s donated $100,000 to help build a new splash pad at Village Park in Menomonee Falls. It is the first major gift for the Discover Village Park capital campaign.
nonprofit
SPOTLIGHT
PA R A LY ZED V E TER A NS OF A MER IC A – W ISCONSIN CH A P TER 750 N. Lincoln Memorial Drive, Suite 422, Milwaukee (414) 328-8910 | wisconsinpva.org Facebook: Facebook.com/pvawi | YouTube: PVA Wisconsin
Year founded: 1981 Mission statement: Paralyzed
Veterans of America – Wisconsin Chapter aims to improve the quality of life for our American veterans and others with spinal cord injury or disease, such as MS and ALS, through our programs: advocacy, research, sports and recreation, education and communication. We work closely with the Zablocki VA Medical Hospital Spinal Cord Injury Unit to promote involvement in national and local activities that support PVA’s mission. Primary focus of your nonprofit organization: Improving the lives of
veterans living with spinal cord injury or disease, MS or ALS in Wisconsin. Other focuses of your nonprofit organization:
» To advocate for and monitor the delivery of high-quality and appropriate health care benefits and services. » To assist in identifying and securing veterans’ benefits and other benefits for spinal cord injured and diseased veterans and others. » To promote medical research to cure spinal cord dysfunction. » To educate society on the
attitudes, physical and legal barriers that confront persons with disabilities and to influence the removal of those barriers. » To provide opportunities for health promotion, recreation, employment, sports, services, and camaraderie for spinal cord injured veterans and others. Key donors: Beale Family
Foundation, New Glarus Brewing Company, Frates Family Foundation Executive leadership: Ken Ness,
national director; Amera Schaefer, executive director; Scott Griffith, government relations director Board of directors: Ken Ness,
president; Todd Drazy, vice president; Scott Griffith, treasurer; Derick Trentin, secretary; Richard Buth; Michael Thomas; LeToi Adams; Pete Carrao; Ken Matthews; Troy Kurczek; Philip Rosenburg, president emeritus. Ways the business community can help your nonprofit: PVA-WI is always
looking for volunteers at our events, sponsors for our events and advisory board members. Please visit our website to see our upcoming events, like our first adaptive sports bootcamp being held in Franklin.
biztimes.com / 53
BizConnections VOLUME 28, NUMBER 2 | APR 25, 2022
GLANCE AT YESTERYEAR
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SALES & MARKETING
DIRECTOR OF OPERATIONS Mary Ernst mary.ernst@biztimes.com COMMUNITY ENGAGEMENT / OWNER Kate Meyer kate.meyer@biztimes.com
EDITORIAL EDITOR Andrew Weiland andrew.weiland@biztimes.com MANAGING EDITOR Arthur Thomas arthur.thomas@biztimes.com ASSOCIATE EDITOR Maredithe Meyer maredithe.meyer@biztimes.com REPORTER Ashley Smart ashley.smart@biztimes.com REPORTER Cara Spoto cara.spoto@biztimes.com
Erie and Jefferson in 1938
— Photo courtesy of Milwaukee Public Library/Historic Photo Collection
Growth lacking in Wisconsin WISCONSIN IS LACKING in both population growth and economic growth, trends which are related and disturbing and should be the main focus of the state’s policymakers. A recent indicator comes from preliminary data from the U.S. Bureau of Economic Analysis, which shows that Wisconsin’s economic growth in 2021 was among the slowest in the country and lagged behind all nearby states. Wisconsin’s real gross domestic product increased 3.8% from 2020 to 2021, the 10th slowest rate in the country. It was the slowest growth among nearby states, a group led by Indiana’s 6.9% growth. Across the wider Midwest region, only North Dakota at 2.1% had a slower growth rate than Wisconsin in 2021. The 3.8% growth rate was Wisconsin’s strongest for a single year since 1999, but that’s because 2021 was a bounce-back from the devastating pandemic-related shutdowns of 2020. The state’s poor economic performance 54 / BizTimes Milwaukee APRIL 25, 2022
SENIOR ACCOUNT EXECUTIVE Christie Ubl christie.ubl@biztimes.com ACCOUNT EXECUTIVE Paddy Kieckhefer paddy.kieckhefer@biztimes.com ACCOUNT EXECUTIVE Dylan Dobson dylan.dobson@biztimes.com ACCOUNT EXECUTIVE Christy Peterson christy.peterson@biztimes.com SALES ADMIN Gracie Schneble gracie.schneble@biztimes.com
ADMINISTRATION ADMINISTRATIVE COORDINATOR Sue Herzog sue.herzog@biztimes.com
PRODUCTION & DESIGN GRAPHIC DESIGNER Alex Schneider alex.schneider@biztimes.com
This March 1938 photo shows Angeline A. Hudaj’s tavern at the corner of Erie and Jefferson streets in Milwaukee’s Historic Third Ward. The sign above the door says, “Moulin Rouge Café” and advertises Lithia beer. The painting on the building offers rooms by the day or the week.
COMMENTARY
DIRECTOR OF SALES Linda Crawford linda.crawford@biztimes.com
compared to other states, especially Midwest states, is a major concern. Now for the disturbing lack of population growth in the state. From 2010 to 2020, Wisconsin’s population grew by only 3.6%, well below the national population growth rate of 7.4%. Utah had the highest population growth rate of the decade at 18.4%. Wisconsin’s population growth for the decade ranked 35th. Newer data from the U.S. Census Bureau is also not encouraging. Milwaukee County’s population decreased by 10,090 in 2021. As a state, Wisconsin’s population rose by only 3,585 or 0.06%, ranking it 31st in the nation. Mostly because of the big population decrease in Milwaukee County, the metro Milwaukee area saw its population fall 7,111 or 0.45%, ranking 326th out of 384 metro areas in the country. Since Milwaukee is the largest city and metro area in the state, it is the state’s economic anchor and engine. Without significant population growth, the region won’t have the workforce needed for area companies to grow. And population growth is needed to provide more consumers to support businesses. Without significant population and economic growth in the state’s largest region, there won’t be significant population and economic growth for the state of Wisconsin as
ART DIRECTOR Shelly Tabor shelly.tabor@biztimes.com
Independent & Locally Owned — Founded 1995 —
a whole. It’s that simple. State policymakers need to pay more attention to the state’s lack of population growth as a necessity to promote economic growth. Wisconsin needs to attract more people to live here to grow its economy. That means the state needs to be welcoming and attractive to all types of people. It also means we have to have a business-friendly environment of relatively low taxes and reasonable regulation so businesses can thrive here and provide job opportunities that attract people. But we also have to provide a high quality of life with schools, parks, transportation systems and other amenities, all of which cost money to support. In this gubernatorial election year, we need to hear more ideas from the candidates about what they will do to attract more people and grow the state’s population. Our economic growth depends on it. n
ANDREW WEILAND EDITOR
P / 414-336-7120 E / andrew.weiland@biztimes.com T / @AndrewWeiland
CONTRIBUTED
Sean Rush working in the kitchen with culinary trainee Cameron Byron, 15
5 MINUTES WITH…
SEAN RUSH Founder, Brigade MKE
A NEW CULINARY APPRENTICESHIP PROGRAM in Milwaukee’s central city aims to grow the talent pipeline for local service and hospitality employers, while creating career opportunities for young people of color. Starting this summer, Brigade MKE will offer experience-based training to youth ages 14 to 22. That’s thanks to a collaboration between Prism Economic Development Corp. and its food incubator UpStart Kitchen in Sherman Park and the Atlanta-based Shular Institute, where Brigade founder Sean Rush serves as vice president. The Milwaukee native and Riverside High School grad has returned to his roots to help bridge the city’s workforce gap. In a recent interview with BizTimes associate editor Maredithe Meyer, Rush discussed his vision. WHAT INSPIRED THE IDEA BEHIND BRIGADE? “I was introduced to UpStart Kitchen a few years ago when it was just a rendering. At the time, the Shuler Institute was looking for a place in Milwaukee to call home. Over the years, I always wanted to have some type of give-back opportunity that I could bring back to the city … and this seemed like the perfect opportunity. “One of the things explained to me was, with this robust group of entrepreneurs and people coming through the UpStart Kitchen, many lacked the technical training and business acumen to go to the next level. That’s where the Shular Institute came in as an educational programming
partner with Prism EDC.” ON WORKING WITH YOUTH “We wanted to ensure we hit the critical touch point of people 14 to 18 because we can all think back to when we were 14: That was a critical time for us as young teenagers trying to decide what we wanted to do next in life. … Even if these kids don’t go on to be culinarians, with the positive ecosystem that we have, … we can equip them on the right pathway at an early age. “Our mission is bridging income inequality by providing these kids with necessary skills, and what better place than Milwaukee to change the conversation? Being part of a story that is positive coming out of that city is really important for us.” WHY NOW? “Even with the 10 to 15 different culinary initiatives that are happening in Milwaukee, we’re still not going to be able to fill the gap. And that just tells you how robust this industry is, from hotels, festivals and restaurants to catering, hospitals and food service. “I don’t see the hospitality industry regaining its strength to where it was before (the COVID-19 pandemic), so what we’re now dealing with is a quality over quantity issue. Where a food service provider might have had 10 people in their kitchen, they now will have to work with seven. But we’re also dealing with wage inflation, so the last thing employers need is to have 10 mediocre cooks in the kitchen when they could do better with seven awesome cooks. Where we play a role is reaching (future employees) at a young age so, by the time they turn 24, which is a 10-year track, they are trained up and have more business and professional acumen. … As wages go up, the quality of the training needs to go up.” n biztimes.com / 55
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