BizTimes Milwaukee | April 30, 2018

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BizTimes Milwaukee (ISSN 1095-936X & USPS # 017813) Volume 24, Number 3, April 30, 2018 – May 13, 2018. BizTimes Milwaukee is published bi-weekly, except monthly in January, July and December by BizTimes Media LLC at 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120, USA. Basic annual subscription rate is $42. Single copy price is $3.25. Back issues are $5 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 2018 by BizTimes Media LLC. All rights reserved.

Contents

4 Leading Edge 4 NOW

BY THE NUMBERS 5 BEHIND THE SCENES 6 THE PUBLIC RECORD 7 FROM CONCEPT TO COMPLETION 8 FRESH DIGS 10 BIZ POLL WHO’S ON THE BOARD 11 PROJECT PITCH IT 12 IN FOCUS

14 News 14 DEMOCRATS DON’T LIKE THE FOXCONN DEAL 16 MY TAKE

18 Real Estate 34 Strategies COVER STORY

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‘Survivorship is the goal’ Emerging cancer therapy shows promise at Froedtert & the Medical College of Wisconsin

Special Report

27 Business in Waukesha County As the West Waukesha Bypass nears completion, developers are eyeing the southwest portion of the city; Waukesha County leaders want businesses in the county to capitalize on Foxconn opportunities; and a new ballpark is in the works.

34 LEADERSHIP Karen Vernal 35 HUMAN RESOURCES Joe Galvin 36 A BRIEF CASE

38 Biz Connections 38 PAY IT FORWARD 39 PERSONNEL FILE 40 GLANCE AT YESTERYEAR COMMENTARY 41 AROUND TOWN 42 THE LAST WORD

Small businesses grow our economy.

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NOW

Bon-Ton to liquidate By staff writers Boston Store, one of the most iconic retailers in the Milwaukee area, will go out of business now that a U.S. bankruptcy court has approved an agreement for Los Angeles-based Great American Group LLC and New York-based Tiger Capital Group LLC to purchase the assets of The Bon-Ton Stores Inc. Bon-Ton is the parent company of Boston Store. It has its head-

quarters in Milwaukee and York, Pennsylvania. Its downtown Milwaukee corporate office has 700 employees. Bon-Ton has about 250 stores in the U.S., including Boston Store locations at Mayfair Mall in Wauwatosa, Brookfield Square in Brookfield, Southridge Mall in Greendale, Bayshore Town Center in Glendale, The Shops of Grand Avenue in downtown Milwaukee and Regency Mall in Racine.

BY THE NUMBERS Property foreclosures rose

21%

in the metro Milwaukee area during the first quarter of 2018, according to ATTOM Data Solutions.

4 / BizTimes Milwaukee APRIL 30, 2018

Bon-Ton has 2,255 employees in Wisconsin and more than 22,000 employees in the U.S. All of those employees will lose their jobs when the company’s stores are closed and its operations shut down.

The Great American-Tiger Capital group will have until Aug. 31 to complete going-out-of-business sales for the company’s stores, according to court documents that outline details of the group’s bid for the company.

Bon-Ton has not turned an annual profit since 2010 and filed for Chapter 11 bankruptcy earlier this year. The company hoped to emerge from bankruptcy under new ownership. But efforts to find a going-concern buyer fell short.

Bon-Ton had been working with an investor group that included U.S. mall owners Namdar Realty Group and Washington Prime Group Inc. to secure a bid that would have kept Bon-Ton in business. The group signed a letter of intent to purchase Bon-Ton at a bankruptcy auction, outlining the terms of a deal that would have kept the current management team in place and the business operating. The deal, however, included a number of contingencies and required Bon-Ton to seek court approval for the company to pay a $500,000 work fee as the parties sought to finalize a purchase

agreement. A bankruptcy court judge denied that request, and the deal never came together.

The only other bids for BonTon were from liquidators. The Great American-Tiger Capital joint venture holds 8 percent of BonTon’s second lien secured notes due in 2021, according to Bon-Ton. According to court documents, the group agreed to a deal worth $793.6 million for Bon-Ton’s assets, including: up to $574.8 million as a cash purchase price to pay off certain financing and outstanding letters of credit; a $125 million credit bid, offsetting some of the $251 million in notes held by the group; and $93.8 million in funding for wind-down operations.

“While we are disappointed by this outcome and tried very hard to identify bidders interested in operating the business as a going concern, we are committed to working constructively with the winning bidder to ensure an orderly wind-down of operations that minimizes the impact of this development on our associates, customers, vendors and the communities we serve,” said Bill Tracy, Bon-Ton president and chief executive officer. “We are incredibly grateful to all of our associates for their dedicated service to Bon-Ton and to our millions of loyal customers who we have had the pleasure to serve as their hometown store for more than 160 years.” n

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LILA ARYAN PHOTOGRAPHY

BEHIND THE SCENES Miller Park grounds crew

By Maredithe Meyer, staff writer

F

or a city that seems to endure everlasting winters, bright green grass at Miller Park on Opening Day can be an unbelievable sight. Michael Boettcher, the park’s director of grounds, and his 50-person team are the miracle workers behind the 130,000 square feet of pristine natural turf and clay on which the Milwaukee Brewers will play 81 home games over the next few months.

When the Brew Crew kicked off the season on April 2, the grounds crew had been prepping the field for about six months, starting at the end of last season. Daily field maintenance will continue throughout the season. n

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The turf grass covering most of the field starts its growth process in the fall. It is carefully maintained and covered with a tarp until early March, when the crew removes it to fertilize, water and mow.

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Synthetic light producers, called grow lights, were powered up in early March.

They provide extra “sunlight” to promote more growth on the field’s high-trafficked or shady areas, like the outfield.

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Boettcher uses a mower to cut the edge of the infield turf.

“Our goal is to produce the best possible surface that we can for our players and for the visiting players,” he said.

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Fields manager Tom Henke assists in the edging process. Behind him are bags of clay that will be spread on the infield’s clay surface.

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Groundskeeper Chris Solberg shovels fresh clay onto the warning track in front of the Brewers’ dugout. It will be leveled, compacted and firmed to help players make a smooth transition between clay and grass. biztimes.com / 5

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CEO pay ratio rule provides new view of executive compensation

By Arthur Thomas, staff writer INVESTORS, the media and the public generally have long been able to see how much executives at publicly-traded companies are paid.

A new requirement as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, however, is shining new light on how a chief executive officer’s pay compares to workers in the company.

The regulation requires companies to disclose the ratio between CEO pay and the median employee for fiscal years starting on or after Jan. 1, 2017. Proxy statements filed this spring are providing the first glimpse at how Milwaukee-area companies stack up.

Comparing those companies isn’t exactly straightforward. The SEC allows companies to exclude certain non-U.S. employees, including up to 5 percent of the total. They can annualize the pay of a permanent employee who was with the firm for part of the year, but part-timers cannot be converted to full-time equivalents and seasonal or temporary employee pay cannot be annualized.

Those restrictions mean the median employee at Menomonee Falls-based Kohl’s Corp. is a part-time associate with total compensation of $8,976. By contrast, Kevin Mansell, outgoing Kohl’s CEO, made $11,339,206 in 2017, a ratio of 1,264 to 1.

Among area publicly-traded companies that had reported ratios by mid-April, Kohl’s had the highest ratio. Milwaukee-based truck equipment manufacturer Douglas Dynamics Inc. had the lowest, at 47 to 1. n Company Ratio

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Badger Meter Inc.

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WEC Energy Group Inc.

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Harley-Davidson Inc.

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Quad/Graphics Inc.

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Fiserv Inc.

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Snap-on Inc. ManpowerGroup A.O. Smith Corp.

Kohl’s Corp.

208:1 276:1 428:1 1,264:1

from

Jabby’s Dog Treats

CONCEPT

to

COMPLETION DECEMBER 2015: Nancy masterminds the idea. “We wanted to create treats with flavors that are palatable for people and dogs,” she said.

To say that Natalie and Nancy Jablonski are dog lovers is an understatement. Nancy has been training and showing dogs for more than 33 years and the mother-daughter duo are “dog moms” to four border collies, one of which recently had a litter of puppies. One of Nancy’s veteran obedience trainer tactics is placing a dog treat in her mouth so the dog draws its attention to her face. The only problem was the dog treats tasted less than edible. In 2016, she and Natalie created Jabby’s Dog Treats, a line of all-natural, gluten-free dog treats that are not only edible, but also tasty, for both dogs and their owners. Almost two years later, Pewaukee-based Jabby’s makes three flavors – Wild Alaskan Salmon Oil with Sweet Potato, Blueberry Honey & Ginger, and Bacon & Cheddar Cheese – and its products are sold in 100 stores in Wisconsin and Illinois.

JANUARY 2016: Nancy and Natalie start researching recipes, the ingredients used in dog treats on the market, and the health benefits of natural ingredients, such as coconut oil, chia seeds, brown rice flour, flax meal and natural preservatives – all ingredients used in Jabby’s.

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SUMMER 2018: The Jablonskis are hoping to soon launch three new flavors: pizza, coconut maple and peanut butter bacon.

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FALL 2016: The Jablonskis sell their product at their first vendor show, Fromm Petfest at Henry Maier Festival Park in Milwaukee’s Historic Third Ward. Good Harvest Market in Pewaukee is the first store to sell Jabby’s Dog Treats.

JUNE 2016: After a few months of experimenting with dough consistency, baking temperature and baking time, the Jablonskis have perfected their dog treat recipe. To increase production, they upgrade their 5-quart KitchenAid mixer to a 20-quart Hobart commercial mixer, and upgrade their rolling pin to a rolling machine.

biztimes.com / 7

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LILA ARYAN PHOTOGRAPHY

FRESH DIGS

QUINTEC INTEGRATION INC. OW N E R / DE V E LOPE R : Quintec Integration; Conveyor Integration Inc.

A RC H I T E C T: 12 Gauge Construction LLC C O N T R AC T O R : 12 Gauge Construction C O S T S : $400,000 C O M P L E T E D : February 2017

8 / BizTimes Milwaukee APRIL 30, 2018

WHEN QUINTEC INTEGRATION INC. relocated to a much larger space in the heart of Waukesha, the conveyor systems integrator wanted to create an employee-centric environment with a Silicon Valley feel.

With bold colors, an open concept and swings hanging from the ceiling, the 20,000-square-foot warehouse at 1600 Paramount Drive that once housed a plumbing company certainly feels like it was built with employees in mind.

“We had been working towards this type of campus for a long time,” said James Deppoleto Jr., founder and president of Quintec.

“The new building is an investment in our future, as well as an inspiring

reminder of years of hard work.”

In addition to the swings, hung over multi-colored bean bag chairs, the Quintec office includes massage chairs in the Zen Den, an indoor basketball court, a fully-equipped fitness center and 12 televisions.

The new facility, located on 2.6 acres, is more than triple the size of Quintec’s previous office and also added a 14,400-square-foot warehouse.

“This is not your run-of-the-mill integration company and, as so, we wanted our campus to reflect that,” Deppoleto said. “We want our employees to like coming to work and our customers loving to visit.” n – Corrinne Hess

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LEADING THROUGH CHANGE Help us kick off the 14th annual BizExpo and join BizTimes Media and moderator Kimberly Kane for a candid conversation with a panel of the region’s business leaders as they talk about advancing change and growth in an organization.

From the board level to company leadership, the panelists will discuss leading through change and issues related to culture, diversity, equality, innovation, and philanthropy and how this is important for the company, its employees, shareholders, customers and the community.

Panelists: Margaret Farrow, Former Lieutenant Governor, Wisconsin & Corporate Director (1) Kim Metcalf-Kupres, Retired Vice President & CMO, Johnson Controls & Corporate Director (2) Coreen Dicus-Johnson, CEO & President, Network Health (3) Laurie Benson, Executive Director, Nurses on Boards & Corporate Director (4) Moderator: Kimberly Kane, President & Founder, Kane Communication Group (5)

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Woman Executive of the Year: Juli Kaufmann, President, Fix Development BizTimes Milwaukee will present its 2018 Woman Executive of the year to Juli Kaufmann, president of Fix Development. Leveraging her more than two decades of nonprofit, corporate and entrepreneurial business expertise to advance Fix Development’s initiatives in and around Milwaukee, Juli has led numerous urban and rural development projects in Wisconsin.

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BIZTIMES MEDIA – Connect

Who’s on the Board?

A recent survey of BizTimes.com readers.

What hospital does your family use most often?

Froedtert Hospital (21%) Aurora St. Luke’s Medical Center (20%) ProHealth Waukesha Memorial Hospital (11%) Ascension Columbia St. Mary’s Hospital Milwaukee (7%) Aurora West Allis Medical Center (5%) Ascension Columbia St. Mary's Hospital Ozaukee (4%) Ascension Elmbrook Memorial (4%) Aurora Medical Center - Grafton (4%)

Children’s Hospital of Wisconsin (3%) Ascension Franklin Hospital (3%) Froedtert Community Memorial Hospital - Menomonee Falls (3%) Aurora Medical Center - Summit (3%) Ascension St. Joseph (2%) Aurora Sinai Medical Center (2%) ProHealth Oconomowoc Memorial Hospital (1%) Ascension St. Francis (1%) Other (6%)

Share your opinion! Visit biztimes.com/bizpoll to cast your vote in the next Biz Poll.

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• Mark Angelson, former chief executive officer, R.R. Donnelley & Sons Co. • Douglas Buth, retired chairman and CEO, Appleton Papers Inc. • John Fowler, retired vice chairman and executive vice president, Quad/Graphics • Stephen Fuller, former senior vice president and chief marketing officer, L.L. Bean Inc. • Christopher Harned, partner,

Arbor Investments • J. Joel Quadracci, chairman, president and CEO, Quad/ Graphics • Kathryn Quadracci Flores, CEO, Blooming Minds Ventures LLC • Jay Rothman, chairman and CEO, Foley & Lardner LLP • John Shiely, retired chairman and CEO, Briggs & Stratton Corp.

REFLECTING YOUR PASSION At First Business, each of us represents the unique way our company empowers and encourages us to help businesses achieve success.

There’s nothing I love more than talking with a business owner who’s passionate about what they’re doing. It energizes me thinking about what we can accomplish. We bring enthusiasm that’s uncommon in banking, and clients notice the difference.

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DREAM CITY MUSIC LLC LEADERSHIP: Co-founders Jared Judge & Keaton Viavattine A D D R E S S: 313 N. Plankinton Ave., Suite 205, Milwaukee

LILA ARYAN PHOTOGRAPHY

PROJECT PITCH IT WEBSITE: dreamcitymusic.com W H AT T H E Y D O: String quartet booking service F O U N D E D: June 2016

Jared Judge, co-founder of Dream City Music

Dream City Music streamlines wedding music booking

By Molly Dill, staff writer

J

ared Judge, co-founder and chief executive officer of Milwaukee-based Dream City Music LLC, started the business after he had an awkward musical performance.

“Assuming I would get paid, I agreed to play violin for my friend’s wedding,” Judge said.

“She walks down the aisle to some beautiful violin music, but I have yet to see that paycheck.”

In a recent appearance on “Project Pitch It” on WISN-TV Channel 12, the entrepreneur explained that these uncomfortable situations come up frequently for musicians and couples.

Musicians aren’t trained to market and sell their services, and the booking process lacks clarity.

Dream City Music systemizes the artistic, logistical and business aspects of performing at weddings using an online platform.

In 2017, its first full year, Dream City served more than 130 couples in Wisconsin, Illinois and New York.

Judge met Dream City Music co-founder Keaton Viavattine while he was working on his master’s degree in orchestral conducting at the University of Wisconsin-Milwaukee. Viavattine eventually transferred to the Eastman School of Music at the University of Rochester in Rochester, New York, so Dream City has expanded to that area.

The idea for Dream City was brewing from the time he first performed professionally as a violinist in 2009, Judge said. What started as scheduling spreadsheets turned into software.

Dream City’s contracted musicians mainly play weddings, but have also performed for an event at Macy’s and as the background for a wedding proposal.

“As soon as people in Milwaukee started using our services and the reviews started coming in very positive, then people down in Chicago started asking for us, too,” he said. “Nobody in the country is offering string quartets in the way we’re doing it.”

Dream City earned business classes, office space and mentoring from Cardinal Stritch University on “Project Pitch It.” The business is currently working on the logistics of transitioning from its office space in Milwaukee’s Ward4 co-working space to its office at Cardinal Stritch, and Judge is planning a three-course curriculum focused on marketing.

In March, Dream City had its biggest month ever with $12,578 in gross sales. The startup’s next goal is to raise a $100,000 seed funding round, which it would spend on marketing and software development. And it plans to expand to Detroit and Cleveland within the next year. n biztimes.com / 11

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Summerfest’s construction THOSE DRIVING ALONG North Harbor Drive near Milwaukee’s lakefront these days can see plenty of evidence of the construction progress underway at the Summerfest grounds.

Work on Henry Maier Festival Park’s new north gate and community plaza and U.S. Cellular Connection Stage continues as crews work to finish the projects in time for this year’s festival.

The new north gate’s structure – which includes a lofty arch and steel canopy – is now installed.

Concrete pours are ongoing for the plaza area.

When completed, the space will include benches, interactive play structures, landscaping and interactive lighting effects.

The project, which is part of Madison-based American Family Insurance’s 10-year sponsorship of the festival, is designed to better connect the grounds to downtown Milwaukee.

Milwaukee-based Eppstein Uhen Architects Inc. is the lead designer, with Milwaukee-based Pierce Engineers Inc. performing the structural engineering and Milwaukee-based C.G. Schmidt Inc. managing construction.

Construction on the new U.S. Cellular Stage is also progressing. The stage and roofing structure are now complete, with roof decking work beginning soon. When completed, the area around the stage will feature new amenities, including a 25foot LED video screen, mobile device charging stations, benches with charging ports along the lakefront, and a redesigned bar area. The new stage is expected to seat 9,000 spectators. n -Lauren Anderson 12 / BizTimes Milwaukee APRIL 30, 2018

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Join us to celebrate the entrepreneurs and innovators whose ideas and hard work make Milwaukee a better place. BizTimes’ Bravo! Entrepreneur & I.Q Awards honor the region’s most creative and successful entrepreneurs, as well as the most innovative products, services and processes developed by Southeastern Wisconsin companies.

Prior to the awards program, four Milwaukee entrepreneurs will share their secrets to success. The panelists will address the factors that helped drive their companies’ rapid growth—and how they addressed growing pains.

Panelists: Elmer Moore, Executive Director, Scale Up Milwaukee, Founder, Milwaukee Denim Co. (1) Kurt Heikkinen, President & CEO, Montage (2) Dave Durand, CEO, Best Version Media (3) Joseph Taylor, Partner, Penrod Software (4) Moderator: Molly Dill, Managing Editor, BizTimes Media (5)

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MEET THE 2018 WINNERS! I.Q. Awards for Innovation: AddeoFit Containers Up Design Fugitives Francis Investment Counsel Hamacher Resource Group, Inc. Hydro Electronic Devices, Inc. Milwaukee County Remedy Analytics WorkWise

Bravo! Entrepreneur Awards: Kate Brewer, Greenfield Rehabilitation Agency Erik Dorfner, Westallion Brewing Company Dave Durand, Best Version Media Todd Muderlak, Xela Innovations, LLC Troy Vosseller, gener8tor Faye Wetzel, Faye’s Women’s Boutiques Chris Widmayer, Penrod Software, LLC Kay Yuspeh, Elite Sports Clubs

Regional Spirit Award: Jeremy Fojut, Newaukee 1

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Lifetime Achievement Award Tim Keane This year’s Bravo! Entrepreneur Lifetime Achievement Award winner is Tim Keane. Keane is the founder and director of Golden Angels Investors, an angel investment firm focused on capital formation for Midwestern entrepreneurs. He previously founded and served as chief executive officer of Retail Target Marketing Systems, which is now a unit of FIS. Keane mentors entrepreneurs throughout the Midwest to help drive their growth.

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ARTHUR THOMAS

BizNews FEATURE STORY

Foxconn chairman Terry Gou and Gov. Scott Walker hold up a signed version of the incentive contract.

Democrats don’t like the Foxconn deal What would they do with it if elected governor?

By Arthur Thomas, staff writer ASK TOP WISCONSIN Democrats running for governor what they think of the $3 billion incentive package that Gov. Scott Walker signed with Foxconn Technology Group and they are quick to say they think it was a bad deal.

“How the hell did Walker get us such a horrible deal?” Paul Soglin asked.

Kelda Roys called it “a slap in the face to Wisconsin businesses,” while Tony Evers said it is a “Hail Mary pass on the part of the governor.”

Andy Gronik said Walker “climbed right over the negotiating table” to Foxconn’s side and Dana Wachs called it a “huge gamble.”

Mike McCabe says it embodies “crony capitalism and corporate welfare” and Kathleen Vinehout said it is based on “flawed” policy.

Mahlon Mitchell said the process lacked transparency and Matt Flynn said “this whole thing is, in my view, corrupt.”

A February Marquette University Law School Poll suggests it makes sense for the Democratic candidates for governor to be against the deal. Nearly three-quarters of Democrats say the state is paying more than the Foxconn project is worth and 14 / BizTimes Milwaukee APRIL 30, 2018

almost half are very concerned about negative environmental impacts. Independents are less skeptical, but 52 percent of them think the state is paying too much Regardless of the deal’s popularity, the reality is the signed contract gives Foxconn a chance at $3 billion in tax breaks and credits from the state if it creates 13,000 jobs and invests $10 billion in a Mount Pleasant LCD panel manufacturing campus.

The question, then, is: What would happen to the state’s Foxconn deal if a Democrat defeated Walker in November? The answer, in large part, depends on which candidate emerges from the party’s primary.

Flynn, an attorney and former chair of the Democratic Party of Wisconsin, says he plans on bringing litigation to rescind the contract, claiming it is unconstitutional.

“I think the best thing they could do would be to stop any activity on the project,” Flynn said, calling the election a referendum on the deal. “Foxconn is on notice.”

He called Foxconn “a company with yesterday’s technology” and the contract “a disaster for Wisconsin,” adding the deal en-

courages other companies to seek similar offers.

“Ultimately, companies are supposed to make a profit on their own,” he said.

Flynn acknowledged Foxconn’s ability to appeal directly to the state Supreme Court would present a challenge and he’s exploring a basis for federal jurisdiction.

Flynn isn’t alone in proposing a lawsuit to end, or at least alter, the Foxconn deal. Roys, a former state representative from Madison and owner of real estate brokerage OpenHomes, also said parts of the deal may be unconstitutional.

Wachs, a state representative from Eau Claire, and Soglin, the mayor of Madison, both said they expect Foxconn will violate the terms of the deal, providing an opening to renegotiate.

“I’m fairly confident that there are serious flaws in the contract and that (in all) likelihood both of the parties will be in violation when we get to January of 2019,” Soglin said.

But there are some Democratic candidates who feel going to court over the Foxconn deal may not be in the state’s best interest.

“To make the claim that we can litigate this deal out of existence,

I do think that is being disingenuous,” said Gronik, a Milwaukee businessman.

“We do not have a good deal here,” Gronik said. “But people should appreciate Foxconn is going to happen, good deal or not.”

He said his experience in business appraisal and consulting positions him well to work with the company. He added that any business can project things with a sharp uptick in growth but “the magic is in determining what the actual reality is.”

“I want to understand a lot more about what they intend to do strategically,” Gronik said. “Let’s try to determine what they can, in fact, accomplish.”

Mitchell, president of the Professional Fire Fighters of Wisconsin, said he would have made the legislative and contract process more transparent and allowed for more public input. But he also said he’d want to be careful to not spend more money to get the state out of the deal.

“There’s more to it than just going in to rip up a contract,” he said. “There are a lot of things that still have to be figured out with Foxconn … you have to be pragmatic in this situation.”

Mitchell said he’s concerned there are “no firm requirements for this company.”

“That’s the scary part of it,” he said.

Evers, state superintendent of public instruction, said transportation projects tied to Foxconn may provide leverage to reopen negotiations, where he’d focus on wages, Milwaukee-area hiring, public transportation and building an energy-efficient plant.

“I would really focus on compelling them to be good corporate citizens,” he said. “I don’t believe they want to be viewed as bad actors.”

Vinehout, a state senator from Alma, said she would seek to renegotiate the deal to address “fuzzy words” that could give Foxconn wiggle room, pointing specifically to language on the required average annual wages. She would also

direct the Wisconsin Economic Development Corp. to make sure the company is complying with all aspects of the contract “so they are actually delivering what they promised.”

But she stopped short of wanting to cancel the contract.

“I don’t know the answer to that, but it’s very important that we be mindful of the cost,” Vinehout said.

The candidates don’t have to look far for an example of a newly elected governor undoing the commitments of a predecessor.

Walker’s decision to cancel a highspeed rail line from Milwaukee to Madison, and the state’s order for trains that would have run on it, eventually cost the state millions in a settlement with Spanish train maker Talgo.

“Even if we have to pay a small amount, it’s still much, much better than having to pay billions

of dollars with very few safeguards in place,” Roys said of Foxconn.

“We’re trying to save the state from a financial and environmental potential disaster.”

She added the Foxconn incentive money would be better spent in other areas and questioned if Walker had “sufficient information” on the company’s technology to make “a multi-generational bet.”

“The risk level, I think, would be more suited to a (venture capitalist) who has special expertise or knowledge in screen technology,” said Roys, a tech entrepreneur.

She added she’s not opposed to Foxconn or large companies, noting many of the state’s classic businesses have grown without the kind of package Foxconn is getting.

“If Foxconn wants to come to the state, we absolutely welcome them, but they have to follow the laws that every Wisconsin business has to follow,” she said.

While no one in the race has experience renegotiating a deal the size of Foxconn, Soglin pointed to Madison’s The Edgewater hotel project, which was in line for $16 million in public funding when he came in to office. Soglin cut the city’s offer to closer to $3 million and the project eventually moved forward without city money.

“At least I’ve had experience with this kind of event,” he said.

Wachs is the one candidate who has dealt directly with the Foxconn contract. He voted against it as a member of the WEDC board. Like Soglin, he expects the terms of the deal will be violated.

“When they break it, we’ll sue them and end it ... or do our best to renegotiate,” Wachs said. “We cannot rig this system for one foreign corporation.”

He said he would emphasize giving preference to Wisconsin

suppliers and vendors in negotiations and expressed concern the higher paying jobs at the campus could end up going to Taiwanese nationals.

“There’s nothing wrong with the Taiwanese,” he said. “(But) we need to make sure this is beneficial to Wisconsin.”

McCabe, an activist and former executive director of the Wisconsin Democracy Campaign, said the incentives offered to Foxconn “are no way to build a sturdy economy,” adding he would insist on enforcement of the current contract terms while seeking to amend the deal “to better protect wetlands and Lake Michigan, as well as the financial interests of Wisconsin taxpayers.”

He said he’d explore possibilities “to get taxpayers off the hook for payments to the company” but the most important thing is “making sure the mistakes made with Foxconn are not repeated.” n

I

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BizNews 2019 EDITION

GIVING GUIDE A SUPPLEMENT

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Is a political ‘blue wave’ coming to Wisconsin?

Republicans have dominated Wisconsin politics for years with Gov. Scott Walker and GOP majorities in the state Legislature. But is that about to change? Some think so, after the election of Milwaukee Circuit Court judge Rebecca Dallet to the state Supreme Court and Democrat Patty Schachtner’s election to a state Senate seat that had previously been held by a Republican. n

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DEMOCR AT VOTER MOTIVATION “(The state Supreme Court election) results show we are at risk of a #BlueWave in WI. The Far Left is driven by anger & hatred -- we must counter it with optimism & organization. Let’s share our positive story with voters & win in November.”

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WALKER’S RECORD “Wisconsin is working with RECORD-LOW unemployment thanks to our reforms, but the risk of a #BlueWave puts everything in jeopardy – balanced budgets, collective bargaining reforms, $8B in tax cuts, welfare reform & more.”

“Clearly Scott Walker is upset that his eight year plan to destroy Wisconsin’s working families is unacceptable to the voters. Now he is grasping at straws.”

WALKER’S RE-ELECTION STRATEGY “We have a positive story to tell & we need conservatives to take action and stop a #BlueWave by getting out there and telling it.”

“One of the deadly political sins is for a politician to engage in self-deception. Keep it up #scottwalker and delude yourself. The #bluewave is steeped in fairness, justice, and respect, not your divisive spin.”

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The link between broker compensation and objectivity

Talk to your benefits broker about how they are compensated for your business

by Jim Mueller

Jim Mueller President and CEO Mueller QAAS Web: myqaas.com Social: linkedin.com/in/jim-mueller Contact: (262) 696-3610

In most industries, there is a clear link between the price paid by the customer and the compensation received by the vendor. My industry, employee benefits, is an exception. Traditionally, an insurance broker’s compensation is “baked in” to the cost of the product and the broker is paid by the insurance company, leaving the buyer completely blind to potential conflicts of interest.

This type of arrangement isn’t necessarily a problem, but it can be if a seller is overly dependent upon a small number of suppliers. Due to unprecedented insurance market consolidation, there are now only a handful of insurance companies that offer group health insurance in Wisconsin. What’s more, the market is dominated by a few of the largest insurance companies who will do whatever they can to maintain or increase their market share.

One way insurance companies influence distribution is through how they pay brokers for bringing in and retaining accounts. Commissions, which are typically a percentage of premium or a per-employee or per-member fee, are just one part of this equation. Insurers also pay brokers bonuses and overrides for achieving sales and retention targets.

Each insurance company decides what it will pay its brokers in commissions, bonuses, and overrides. Some pay brokers higher commission than others, but these differences are not usually enough to create an incentive to steer business. It’s the bonuses and overrides that should be cause for concern among benefit purchasers.

With commissions, brokers don’t have to worry about not getting paid as long as they write your business. But bonus and override payments depend upon the broker’s overall activity with each insurer. So if the bonus schedule requires ten new groups in a quarter and the broker writes nine, the broker gets nothing. For some brokers who are on the brink of earning a bonus, the incentive to earn more can be enough to recommend the insurer offering the bonus.

Overrides are even more problematic because unlike one-time bonuses, they are paid on an ongoing basis as long as the broker meets retention targets. As a result, brokers can come to rely on overrides as a source of revenue. Like bonuses, overrides are also often an all or nothing proposition based on the broker’s retention of their book of business with the carrier. This powerful incentive can lead a broker to recommend an incumbent carrier even if the client could benefit by moving to another insurance company.

I believe the benefits buyers owe it to their organizations, their employees, and their families to eliminate these potential conflicts of interest. After all, premiums are now almost always paid with both employer and employee dollars. At a minimum, you should have a frank conversation with your broker about how they are compensated for your business through all channels – including commissions, bonuses, and overrides.

Better still, you can ask your broker if you can pay them directly rather than channeling compensation through the insurance company. If you do this, be sure to get a binding agreement that prohibits them from accepting commissions, bonuses, and overrides on your account. Only then will you know they’re working on your behalf and aren’t beholden to the insurance company.

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Real Estate

REAL ESTATE WEEKLY – The weeks most significant commercial real estate deals → biztimes.com/subscribe

8

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WHO OWNS THE BLOCK? FIVE CORNERS WAUKESHA: WEST MAIN STREET FROM WEST BROADWAY TO CLINTON STREET

301 W. Main St. Property owner: Historic Prairieville LMT PRT, led by Alan Huelsman, who owns Berg Management Co. Tenant: The Picky Picky Resale Shop

5 327 W. Main St. Property owner: CAD Properties LLC, registered to Joette Barta Tenant: Nice Ash 18 / BizTimes Milwaukee APRIL 30, 2018

2

3

307 W. Main St. 309-311 W. Main St. Property owner: Historic Prairieville LMT PRT Property owner: ADH Properties LLC, Tenant: Saltwater Specialty JoAnne B. Huelsman Tenant: EB’s Milwaukee Pizza Co., Art & Framing 1-2-3

6 337 W. Main St. Property owner: Main & Clinton LLC, registered to James Steven Taylor Tenant: Taylor’s People’s Park

7 314 W. Main St. Property owner: Harp & Eagle LTD, registered to Cary James O’Dwanny Tenant: The Clarke Hotel, Five Points Pub

4 321 W. Main St. Property owner: Historic Prairieville LMT PRT Tenant: Black Dragon Tattoo

8 340 W. Main St. Property owner: Jack Feuerstahler Tenant: The Steaming Cup

CORRINNE HESS

1

JON ELLIOTT OF MKE DRONES LLC

AIN

ST.

7

UGLY BUILDING: WAU K E S H A C I T Y H A L L Built more than 50 years ago as a bomb shelter, some believe that Waukesha City Hall needs to be upgraded, or replaced.

The 45,180-square-foot building at 201 Delafield St. includes a radiation shower that has been turned into a storage room for the IT department. A mold-like substance growing on the exterior is not a welcome sight for residents coming to pay their property tax bills.

Reports have shown a new city hall would cost approximately $20 million. The Common Council voted last fall to either build new or renovate at the existing site The city is working with St. Paul, Minnesota-based BWBR Architects Inc. on conceptual plans for a new facility and a renovated city hall. Plans are expected to be complete this summer for a Common Council decision in August.

ST. JOHN’S ON THE LAKE St. John’s on the Lake on Milwaukee’s East Side recently broke ground for this 22-story building.

The 422,000-square-foot structure will replace a three-story building that opened there in 1979.

The new tower, at 1840 N. Prospect Ave., will include replacement spaces for 50 skilled care suites and 24 assisted living suites. It will also feature 79 apartments for older adults living independently.

The tower is being built on a parking lot at East Kane Place and North Prospect Avenue.

OWNER: St. John’s on the Lake GENERAL CONTRACTOR: VJS Construction COST: $123 million

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P I H S R O V I V ’ UR

‘S Emerging

22 / BizTimes Milwaukee APRIL 30, 2018

canc e

AL O G E & MC W t H r e T t d e IS o ise at Fr

m hows pro s y p a r e r th

staff writer DERSON, N A N E R

BY LAU

With each roadblock, Carroll held out hope for what doctors initially told him – that new treatment options were coming.

“With the ups and downs over the years, it was disappointing to have setbacks, but it wasn’t like the initial shock of being diagnosed,” he said.

“Even though the treatments themselves were a hardship, there was something to keep me going.”

The rise of CAR T-cell therapy Meanwhile, a promising new approach to cancer treatment was emerging.

In recent years, immunotherapy – treatment that uses a patient’s own immune system to help fight cancer – has gained traction in the cancer treatment world.

It represents a departure from what have become common cancer treatments, such as transplants, chemotherapy and radiation therapy – methods that, while effective in killing cancer cells, also often damage healthy cells.

One particular immunotherapy approach, called CAR (chimeric antigen receptors) T-cell therapy, has emerged as a breakthrough technology over the past five years. CAR T-cell therapy genetically reprograms a person’s immune system to target cancer cells in a personalized way. The research community has increasingly begun recognizing it as an option for patients for whom other lines of treatment have failed – patients like Carroll.

By the fall of 2017, the previous clinical trial in which Carroll had participated initially proved effective against the cancer, but the dosage brought on severe side effects.

That’s when he learned of CAR-T therapy.

His prior experience gave him pause about trying another clinical trial, but Carroll recognized something different about this option. While other treatments offered a possible chance at remission and extending Carroll’s life, the CAR-T option held the promise of complete remission – a chance at a cancer-free life.

Carroll was told it carried the same amount of risk as some aggressive chemotherapy treatment options, with about 30 percent of CAR-T patients experiencing no symptoms at all and about 10 percent ending up in the ICU. Encouraged by the results of clinical trials for other types of cancer, physicians saw it as the best option for Carroll.

“In the end, I decided to go with the CAR-T and hope for the best,” Carroll said.

In-house advantage On the third floor of Froedtert Hospital, a lab houses the CliniMACS Prodigy, a device designed to manufacture cellular products used in cell-based therapies.

In 2014, Froedtert & the Medical College of Wisconsin was among the first U.S. medical centers to acquire the technology, purchased with philanthropic support from the MACC Fund and Children’s Hospital of Wisconsin Foundation. The focus at the time was on pediatric bone marrow treatment, but the machine proved to be useful in the emerging field of immunotherapy.

“We were seeing where the field was going and knowing that we need the infrastructure and resources in this lab to stay ahead in the field of immunotherapy,” said David Margolis, blood and marrow transplant program director for Children’s Hospital of Wisconsin and professor of pediatrics in the hematology and oncology division at MCW. In the case of immunotherapy, the contained, cell-filtering desktop system collects a patient’s T cells and augments them with cancer-fighting genes, and the new cells are then infused back into the patient’s bloodstream.

Having the technology in-house has placed MCW at an advantage in the CAR-T therapy arena. Traditionally, medical centers have had to ship cells to large manufacturing plants, where they undergo genetic modifications and are sent back to be returned to the patient.

At the Froedtert campus, the whole process is completed on-site, cutting costs and production time in half.

Bret Carroll, 52, of Appleton, was the first patient to participate in the MCW clinical trial for a dual-targeted CAR T-cell immunotherapy.

biztimes.com / 23

MEDICAL COLLEGE OF WISCONSIN

T

he symptoms started out as mild stomach issues for Appleton resident Bret Carroll.

But when Carroll, a healthy and active 45-year-old professional pilot, found a lump on his abdomen in 2011, it signaled an enlarged spleen.

“They went through a process of doing CAT scans and blood work,” Carroll said. “They started narrowing a diagnosis down, and they kept eliminating the more benign options.”

Then all options were eliminated but one: mantle cell lymphoma, a rare cancer of the immune system. Carroll reported immediately to his first chemotherapy treatment and was given a prognosis of about two years.

“There was a pamphlet they gave us and it specifically mentioned that mantle cell was incurable,” Carroll said. “So it struck even harder than a diagnosis of cancer.”

A father of three high school students, Carroll considered what he wouldn’t live to see.

“It seemed like there were a lot of things we were going to miss out on that we still wanted to do,” he said. “The thought of not being able to see them graduate, it was very tough.”

Because he was in otherwise good health, doctors advised Carroll to pursue the most aggressive treatments available, with the promise that others would become available over time.

The next few years brought the highs and lows of treatment – the hopes and letdown of chemotherapy, stem cell transplants, radiation therapy and a clinical trial of a new drug that ended up producing extremely negative side effects, including severe weight loss.

STORY COVER

“What we’re doing here is a point-of-care model, meaning instead of doing third-party shipping, we collect the cells here, use cutting-edge technology, the (CliniMACS) Prodigy device, to do the CAR T-cell production and genetic modification right here in our lab,” said Nirav Shah, principal investigator of the trial and an assistant professor of medicine in the hematology and oncology division at MCW. Once collected, the reprogrammed cells can be infused back into the patient within 14 days.

Dual-targeted therapy

LAUREN ANDERSON

The CliniMACS Prodigy device in a Froedtert Hospital lab allows the MCW cancer team to conduct the CAR-T cell immunotherapy through a contained, cell-filtering desktop system.

SOURCE: MEDICAL COLLEGE OF WISCONSIN

Clinical trials initiated by MCW and partners, 2008-2016

1,224

2008

1,298

1,329

2009

2010

1,464

1,538

1,596

1,624

1,650

1,637

2011

2012

2013

2014

2015

2016

Total MCW/Froedtert clinical trials by department/ division, 2007-2016 559

Hematology Oncology 304

Pathology 250

Neurology

225

SOURCE: MEDICAL COLLEGE OF WISCONSIN

Gastroenterology Obstetrics & gynecology Surgical Oncology

175 168

Trauma & Critical Care

159

Psychiatry

154

Radiation Oncology

151

Radiology

24 / BizTimes Milwaukee APRIL 30, 2018

144

The timing of Carroll’s decision to pursue CAR-T therapy proved critical.

In the fall of 2017, his cells were collected before complications from the previous drug and the return of his cancer sent him to the hospital.

“Things started to go downhill to the point where I was in the hospital with them trying to keep me alive long enough to get the processed T cells back,” Carroll said.

Carroll received his CAR T cell dose on Oct. 31.

Carroll was administered a unique product developed by MCW researchers: a dual-targeted CAR T-cell therapy that targets two proteins on the cancer cells, called CD19 and CD20, both of which are prevalent in patients with mantle cell lymphoma.

FDA-approved products only target one protein.

Almost immediately after receiving the cells, Carroll sensed improvements in his health.

“It was like any time you’re sick with some sort of infection, that’s how my body was reacting – some mild fevers, I was worn out, a little achy, but over a few days, I was feeling better and ready to get out of the hospital,” Carroll said.

Within a few days, evidence suggested the T cells had been effective.

Six weeks after receiving the CAR T cell dose, Carroll’s cancer was no longer detectable.

In December, a second participant in the clinical trial received a dose of CAR T cells, and a third patient began treatment earlier this year.

‘Survivorship is the goal’ The cancer treatment journey has a way of tempering expectations. For Carroll, it isn’t the first time cancer has disappeared from view, but he’s optimistic.

“I have been here before a few times,” he said.

“This time does feel different, but to a great extent I have the attitude of ‘we’ll see.’ The longer it lasts, the more confident I’ll become that it’s really for good this time.”

Week to week, Carroll has experienced an increase in his energy, though he still deals with the side effects of the previous clinical trial.

Carroll is considered to be in clinical remission, recovering from years of therapy, Shah said.

With the pace of medical appointments expected to decelerate to annual check-ins, Carroll said he

is ready to return to his pre-cancer routines of flying, exercising and spending time with family.

No longer tied to the hospital, Carroll and his wife, Theresa, might even be able to take a vacation, he said.

“Now, we don’t have to think about cancer that much,” he said. “We can focus on the side effects and hopefully we can get over those and I can be back to a full and healthy life.”

The cancer team is also encouraged by his results. Shah called them “phenomenal.”

Still, the word “cure” is spoken with caution.

“Survivorship is the goal,” Margolis said. “I learned a long time ago from the kids and parents we take care of that the word ‘cure’ has a certain aura around it. Our patients always live with the dread of cancer coming back, of side effects, so we aim for 100 percent quality of life survival.”

Investment in research

LAUREN ANDERSON

Clinical trial data show cancer is a major research focus for MCW. Faculty and staff have had a steadily increasing number of new clinical trials over the past decade – a jump of about 34 percent between 2008 and 2016, according to a recent Wisconsin Policy Forum report. In 2016, there were 1,637 clinical trials initiated by MCW and its partners.

Over the past decade, 559 hematology oncology clinical trials have been approved by the MCW/ Froedtert institutional review board, the most of any discipline. Together with surgical oncology and radiation oncology, they accounted for a combined total of 878 clinical trials over the past 10 years.

Still, the Wisconsin Policy Forum identifies medical research as a critical funding challenge for the institution moving forward, particularly as federal funding tightens.

MCW invests about $65 million to $70 million in research each year from internal funding sources, largely leaning on its clinical opera-

tions, and brings in about $160 million to $170 million of external funding annually.

“Many times, people think you make a profit off of your research enterprise and that’s simply not the case,” said Dr. John Raymond, president and chief executive officer of MCW. While MCW’s research and development expenditures make it the largest research institution in the metro Milwaukee area, its R&D spending has declined each year since 2011. That bucks the national trend, in which university R&D expenditures inched up each year between 2011 and 2015.

Driving that decline has been the decrease in federal research funding flowing to MCW, which dropped by about 19 percent between 2011 and 2016. Federal funding to MCW peaked in 2011 at $134 million, and declined over the next three years before flattening out, explained at least in part by the expiration of a temporary infusion of federal funding through the American Recovery and Reinvestment Act between 2010 and 2013.

That places more pressure on MCW’s clinical operations to help maintain its roughly $230 million annual R&D investment, at a time when the Froedtert & MCW health network competes with non-teaching hospitals within larger consolidated health systems.

“It is a challenge for us,” Raymond said. “To have something vitally important like the research enterprise, one of our core missions, it requires a chronic, substantial investment each and every year.”

MCW has encouraged more collaboration among faculty to increase their competitiveness for securing external funding, and has narrowed in on several R&D priority areas, he said.

Maintaining a robust research arm, Raymond said, is key to retaining attraction and retention of high-quality faculty.

David Margolis, Bryon Johnson, Nirav Shah and Fenlu Zhu in the Froedtert Hospital lab where the T cells are manufactured.

“That research enterprise is why we have such a large clinical enterprise,” Raymond said.

“The clinicians come where they can work with scientists and where there are scientists who are interested in helping them render better health care.”

Future of immunotherapy Still in the earliest clinical trial phase, the CAR T-cell research at MCW is currently aimed at defining the safety of the product and its effectiveness. Once those are determined, the next steps will be to scale up the research by conducting studies at other medical centers.

A separate pediatric clinical trial for CAR T-cell treatment at Children’s Hospital of Wisconsin is also in the works, expected later this year.

“We’re very excited about Bret, but one patient doesn’t necessarily mean it will be a 100 percent response rate for other patients,” Shah said.

“There’s no doubt that people who have developed cancer in the last decade, some are alive because of these technologies, compared to the decade before,” he added. “The ultimate goal is to have every situation be like Bret’s – that amazing response that we hope is durable.”

The next frontier will be to explore its effectiveness in treating “solid” cancers, including breast and colon cancer.

“The big advancement will be if this moves outside of blood cancer and into other types of cancer,” said Bryon Johnson, professor of pediatrics in the hematology and oncology division at MCW and a member of the Cancer Center.

“I think it will be forthcoming at some point in time, but the research has to continue.”

“Cancer immunotherapy, as we move forward, is going to involve a variety of different strategies,” Johnson said. “It’s probably not going to be one strategy that is the panacea. It is going to be a mixture of different types of treatment. This is exciting that this is one treatment of many.”

For example, this month, the Froedtert & MCW Cancer Network added another type of CAR-T therapy option, called Kite Yescarta, made available to patients with large B-cell lymphomas for whom two or more chemotherapy drugs haven’t been effective.

Margolis said the rapidly evolving field gives reason for optimism.

“The iceberg is immunotherapy, and CAR T cells are the tip of that iceberg that we are just starting to understand,” Margolis said.

“What started out as Ford Model T became a Corvette. It’s a different brand. The good news for patients throughout the world is there will be different brands of CAR T cells for different cancers. We’ll continue to make improvements, just like the car industry does. And one of these days, we’ll have a Tesla.” n

biztimes.com / 25

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From start up to successful: What two Milwaukee business leaders have learned

by Tracy Meeks Jalem Getz and Erica Conway are two of Milwaukee’s most respected – and innovative – business leaders.

Conway is co-owner of C2, a creative talent staffing firm and certified Adobe® training center, and Getz started Wantable, a paid style subscription website for men and women. As long-time business owners, they’ve taken their companies beyond the start-up phase. What have they learned along the way? Here are some of their top lessons.

Harness the power of the pivot Conway first joined C2 in 2000, when it was still called MacPros. But the September 11 terror attacks decimated its customer base, driving Conway and her team to Jalem Getz re-evaluate their plans. “We began to talk about what MacPros would need to look like to survive,” she says. Through those conversations, she and her brother decided to buy the company from the former owners, rename it C2, move to downtown Milwaukee, and become an Adobe authorized training center. These radical decisions were a critical turning point for the business, allowing them to grow their clientele and take advantage of emerging trends in the marketplace.

Getz has mastered the art of pivoting. He calls himself a “serial entrepreneur” who’s started three businesses over the last 20 years. His first pivot came when he co-founded Buyseasons, an online costume retailer, after owning retail franchise stores. After taking over full ownership, Buyseasons became the largest employer in New Berlin and its global market share attracted the attention of a large media company, which acquired his business.

Getz started Wantable in 2012 and, in 2017, it was named by Inc. Magazine the fastest growing company in Milwaukee and third-fastest growing company in Wisconsin. Last year the company saw 60 percent growth in employees and 80 percent growth in revenue.

Remember your bigger mission Growing a new company or developing an innovative business model are exciting experiences that can deliver incredible financial successes. But Conway says that not all success can – or should – be measured in dollars. That’s why she participates in programs such as SPARC, a growth-training program for Milwaukee businesses that want to scale up. “It’s been a really nice partnership from a networking standpoint, but also because it is a nice tie-in to what the creative industry is trying to do here in Milwaukee,” she says.

Tracy Meeks VP, Small Business Banking Park Bank Web: ParkBankOnline.com Social: facebook.com/ ParkBankOnline twitter.com/ parkbankonline linkedin.com/in/ tracy-meeks-619a063/ Contact: TracyM@ParkBankOnline. com (262) 827.5117

Embrace the ups and downs…

Both Getz and Conway have weathered challenges – including the 2008 Great Recession – through their entrepreneurial lives, and both say that accepting these challenges and building resilience is part of building a successful business beyond the start-up phase. “If I look over my 20+ year career, we’ve had lots of highs, but we’ve had a few lows. And as much as we try to reduce and minimize the lowest points of the business cycle, they do come,” Getz says.

…Find the right partners to weather these challenges

Erica Conway Finding financial partners who trust your vision and align with your mission is critical to the long-term success of any business. Many owners might see approaching a bank for financing as a difficult hurdle to cross before they can expand. But Getz says building relationships with the right financial partner has been a key investment in his company’s explosive growth.

“Having a trustworthy partner that will celebrate you when things are great, but will also be there with a helping hand when things are not as perfect is extremely important,” says Getz.

Conway agrees, pointing to a time last year that her small business banker helped C2 with financing. “He was my Johnnyon-the-spot. He did whatever needed to be done…It was great,” she says.

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From start up to successful: What two Milwaukee business leaders have learned

by Tracy Meeks Jalem Getz and Erica Conway are two of Milwaukee’s most respected – and innovative – business leaders.

Conway is co-owner of C2, a creative talent staffing firm and certified Adobe® training center, and Getz started Wantable, a paid style subscription website for men and women. As long-time business owners, they’ve taken their companies beyond the start-up phase. What have they learned along the way? Here are some of their top lessons.

Harness the power of the pivot Conway first joined C2 in 2000, when it was still called MacPros. But the September 11 terror attacks decimated its customer base, driving Conway and her team to Jalem Getz re-evaluate their plans. “We began to talk about what MacPros would need to look like to survive,” she says. Through those conversations, she and her brother decided to buy the company from the former owners, rename it C2, move to downtown Milwaukee, and become an Adobe authorized training center. These radical decisions were a critical turning point for the business, allowing them to grow their clientele and take advantage of emerging trends in the marketplace.

Getz has mastered the art of pivoting. He calls himself a “serial entrepreneur” who’s started three businesses over the last 20 years. His first pivot came when he co-founded Buyseasons, an online costume retailer, after owning retail franchise stores. After taking over full ownership, Buyseasons became the largest employer in New Berlin and its global market share attracted the attention of a large media company, which acquired his business.

Getz started Wantable in 2012 and, in 2017, it was named by Inc. Magazine the fastest growing company in Milwaukee and third-fastest growing company in Wisconsin. Last year the company saw 60 percent growth in employees and 80 percent growth in revenue.

Remember your bigger mission Growing a new company or developing an innovative business model are exciting experiences that can deliver incredible financial successes. But Conway says that not all success can – or should – be measured in dollars. That’s why she participates in programs such as SPARC, a growth-training program for Milwaukee businesses that want to scale up. “It’s been a really nice partnership from a networking standpoint, but also because it is a nice tie-in to what the creative industry is trying to do here in Milwaukee,” she says.

Tracy Meeks VP, Small Business Banking Park Bank Web: ParkBankOnline.com Social: facebook.com/ ParkBankOnline twitter.com/ parkbankonline linkedin.com/in/ tracy-meeks-619a063/ Contact: TracyM@ParkBankOnline. com (262) 827.5117

Embrace the ups and downs…

Both Getz and Conway have weathered challenges – including the 2008 Great Recession – through their entrepreneurial lives, and both say that accepting these challenges and building resilience is part of building a successful business beyond the start-up phase. “If I look over my 20+ year career, we’ve had lots of highs, but we’ve had a few lows. And as much as we try to reduce and minimize the lowest points of the business cycle, they do come,” Getz says.

…Find the right partners to weather these challenges

Erica Conway Finding financial partners who trust your vision and align with your mission is critical to the long-term success of any business. Many owners might see approaching a bank for financing as a difficult hurdle to cross before they can expand. But Getz says building relationships with the right financial partner has been a key investment in his company’s explosive growth.

“Having a trustworthy partner that will celebrate you when things are great, but will also be there with a helping hand when things are not as perfect is extremely important,” says Getz.

Conway agrees, pointing to a time last year that her small business banker helped C2 with financing. “He was my Johnnyon-the-spot. He did whatever needed to be done…It was great,” she says.

Park Bank | Member FDIC | 26 / BizTimes Milwaukee APRIL 30, 2018

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Special Report BUSINESS IN WAUKESHA COUNTY

Waukesha bypass could attract development southwest of city IN EARLY APRIL, a landowner with properties located adjacent to the West Waukesha Bypass contacted Waukesha leaders to discuss development opportunities.

He wanted to find out what his options would be over the next year, as the bypass between I-94 and Highway 59 on the west side of the City of Waukesha nears completion.

The $50 million project has been in the Waukesha County and regional transportation plans for decades.

The city’s $3.1 million portion of the project was completed last year. The state’s portion will begin in late June and is expected to be finished this year or in early 2019.

Now is the time to begin thinking about development along the corridor, said Tim Casey, director of Waukesha County Center for Growth Inc. Casey has been working with city officials to meet with landowners, developers and business owners from southeastern Wisconsin and Illinois who are interested in the large tracts of land adjacent to the bypass.

That land will have easier freeway access once the road construction is complete, Casey said.

Casey did not want to share what specific locations were being discussed, but said there is a lot of interest in developing along the bypass.

“When you talk about the bypass being completed in the next one to two years, folks get it,” Casey said. “Developing a business park with industrial takes six to nine months to build. An office building takes a year, year-anda-half. For people looking at development, if you start down the path, the timing is right.”

Prospective developers have toured sites on the southwest and west sides of the city – areas that will be more accessible when the bypass is complete, Casey said.

The sites lend themselves to a variety of uses, including residential, retail and office. But one thing city officials, developers and Casey have all mentioned is industrial.

Across southeastern Wisconsin, the vacancy rate for industrial has been low, leaving users scrambling to find adequate space.

Waukesha County has 84 million square feet of industrial space. The City of Waukesha has 15 million square feet of industrial space. The

Source: 2008 Aerial Photography from the National agricuture Imagery Program (NAIP)

By Corrinne Hess, staff writer

River/stream Railroad Wetlands

Municipal boundary FEMA floodplain Parcel

county has an approximate 2.5 percent vacancy rate and is seeing a demand for large industrial buildings, Casey said.

“We would like to see the same 100,000- to 200,000-square-foot, modern industrial developments that have been built in Racine and

Isolated natural resource area Primary environment corridor Secondary environment corridor

Kenosha (counties),” Casey said. “We have some in Waukesha, but we need more. We regularly have prospects looking for 100,000 square feet or more and there are very few to choose from.”

Jaclynn Walsh, president and chief operating officer of Milwaukee-based developer biztimes.com / 27

Irgens Partners LLC, said adding infrastructure will have a significant impact on development in Waukesha.

“It will certainly make it easier for people to get in and out of Waukesha and I think this is a really great market,” Walsh said. “The population is primed for expanded manufacturing in the area.”

But one Milwaukee commercial real estate source, who did not want to speak on the record, said Waukesha could have some issues in attracting large industrial developments like those along I-94 in Racine and Kenosha counties. Even with the bypass, Highway 59 is six miles from I-94. Typically, a business does not want trucks driving more than three miles off the interstate, the source said.

Another issue could be all of the residential development already located along the bypass, the residents of which may not want to allow a 100,000-square-foot or larger industrial building in their neighborhood, the source said.

Decades in the making After decades of discussion, a memorandum of understanding was signed by Waukesha

County, the City of Waukesha, the Town of Waukesha and the Wisconsin Department of Transportation in 2009 to outline the responsibilities of building the West Waukesha Bypass.

Real estate acquisition began in 2015 throughout the project corridor.

The purpose of the bypass is to address local and regional traffic volumes and enhance safety. Any development that occurs because of the bypass is an added benefit, said Kevin Lahner, Waukesha city administrator.

“Now that the project is going forward, there are multiple developable sites along the bypass,” Lahner said. “Having the road there makes all of those properties so much more attractive.”

Lahner said landowners and other “activity” around the sites picked up over the past year.

“We’re really focused on high-value development,” Lahner said. “Each site has unique benefits. But for the most part, we know there is a very strong need for light industrial in the area. That is one of the things we get a lot of inquiries about. An office development would be nice, as well.”

Waukesha Alderman Aaron Perry said 25 years ago, the city’s south and west sides were

LOCALLY OWNED AND PROUD SUPPORTER OF WAUKESHA COUNTY SINCE 1986.

28 / BizTimes Milwaukee APRIL 30, 2018

farm fields.

Perry, who has represented that area of the city since 2013, is excited about the bypass, saying it will enable that area to grow and benefit the entire city.

“We need to understand the needs as it relates to workforce development and commercial development,” Perry said. “Now that the roads will in place to properly access the (area), I think this will absolutely help development along.”

Perry would like to see the intersection of Genesee Road and Highway 59 at the southernmost end of the bypass developed.

“Retail is declining, unfortunately,” Perry said. “I can’t dictate what goes in there, but I would like to see a long-term, usable, sustainable development. Stores that we will visit.

People can’t get a haircut online.”

Perry said he also wouldn’t mind seeing high-end multi-family or a mixed use development with commercial development on the ground level.

Perry also said the Shoppes at Fox River is an area that is “ripe for development,” and could become very attractive for developers once the bypass is complete. n

eliteclubs.com

Special Report

CITY OF WAUKESHA

BUSINESS IN WAUKESHA COUNTY

A drawing of what the Waukesha stadium could look like.

Northwoods team on deck in Waukesha

By Corrinne Hess, staff writer

AFTER LOOKING like it struck out on a deal earlier this year, Waukesha is rounding third in its quest to bring Northwoods League baseball to the city.

Last month, after dropping plans for a baseball stadium in Frame Park, Northwoods League team owner Big Top Baseball approached Waukesha officials again with a new, $12 million plan for a ballpark at the city-owned Mindiola Park near West Sunset Drive.

The new proposal drew less ire from Waukesha residents who opposed adding a 2,500seat stadium to Frame Park along the Fox River, but it also increased the price from its original $4.7 million.

The Northwoods League is a summer league for college baseball players and has teams in Wisconsin, Minnesota, Iowa, Michigan, North Dakota and Ontario, Canada.

Local teams include the Lakeshore Chi-

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Opening in Waukesha, Summer 2018. biztimes.com / 29

nooks in Mequon, which started in 2012, and the Kenosha Kingfish. The teams have a 72game season with 36 home games.

Carroll University, Waukesha North High School and Waukesha South High School baseball teams would also play at the Mindiola ballpark.

before the project moves forward.

Those details include how much money Big Top will pay the city per year to rent the stadium, and how the project will be funded.

Ownership of the ballpark is still unknown.

Big Top’s annual contribution and how much money the city will have to contribute are also

“This is something that could unite a community of our size.”

– Kevin Lahner, City of Waukesha

A collegiate soccer team owned by Big Top would also play eight to 10 home games at the stadium.

“This is something that could unite a community of our size,” said Waukesha city administrator Kevin Lahner. “And from an economic development standpoint, it would bring in a lot of visitors to support the local businesses and redevelop that area.”

In March, the city approved a conceptual plan for the Mindiola proposal. However, there are still many details that need to be ironed out

undecided.

Under the earlier Frame Park proposal, Big Top Baseball would: »» Pay $500,000 upfront and $150,000 per year. »» Pay an annual contribution to Frame Park of $25,000 for park improvements outside the boundaries of the baseball stadium.

Lahner said a contract with Big Top for the Mindiola stadium is being drafted and should be to the City Council for approval in May.

Years in the making Lahner, who was hired in 2014, said the City Council approved bringing a collegiate baseball team to Waukesha in 2008 with a different operator.

At that time, improvements were made to Frame Park, but the recession prevented the project from moving forward, Lahner said.

“Fast forward, and just by nature of the fact that I’ve been to Northwoods games, seen the facilities and talked to peers, I rekindled the conversations and reached out to Big Top,” Lahner said.

Frame Park was again the site chosen for the stadium. But public outcry – including two Facebook pages that oppose the project, “Watching Waukesha” and “Save Frame Park” – made the city abandon the site.

“The public appetite wasn’t there, and that’s fine,” Lahner said. “But before we threw in the towel, I sat down with the parks director and we talked over several ideas and came up with this site.”

Mindiola was interesting, Lahner said, because the city was already planning improve-

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BIG TOP BASEBALL

ments to the park’s soccer fields.

Conor Caloia, chief operating officer of Big Top Baseball, said the company has wanted to put a team in the greater Milwaukee area for several years and Waukesha is a premier market.

If the City Council approves the final operating agreements next month, a community contest will be held to name the team, Caloia said.

The first pitch will likely be thrown in 2020.

“This has been a work in progress, but we look forward to having an agreement come together,” Caloia said.

Big Top Baseball currently owns four teams, the Kenosha Kingfish, Madison Mallards, Wisconsin Rapids Rafters and Green Bay Bullfrogs. It also operates Breese Stevens Field in Madison in a use agreement with the City of Madison.

The Mindiola Park facility would have stadium-style seats, corporate hospitality party spaces and affordable family ticket prices, Caloia said.

Average ticket prices at Northwoods games are $11. Most Northwoods games average 1,800 to 1,900 fans per game, with the Kenosha team drawing 2,500 fans a night for many of its games, Caloia said.

Caloia believes Waukesha will also be a

An aerial view of the Madison Mallards stadium.

popular venue.

“The Frame Park situation was new to us,” Caloia said. “We operate in four communities across the state and have never had that resistance. That being said, we ultimately listened and are excited about the opportunities at Mindiola Park.”

Whether Waukesha ends up with a team

Insuring Waukesha County for Generations.

named the Walleyes, the Spring City Spartans or the Gumdrops – as Lahner’s 6-year-old son would like to see happen – the city seems to be on deck for a team.

“I’m excited to see this happen,” Lahner said. “The whole thing could be really cool for our city, to increase tourism a bit and to bring everyone together.” n

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Special Report BUSINESS IN WAUKESHA COUNTY

Foxconn impact could be felt in Waukesha County

Foxconn products on display at Waukesha County Technical College.

WHEN PAUL FARROW was elected Waukesha County executive, he said his goal would be to make the county the epicenter of economic growth in southeastern Wisconsin.

Foxconn Technology Group’s plans for a $10 billion, 22-million-square-foot LCD panel manufacturing campus in Mount Pleasant may have shifted the center of gravity when it comes to economic development in the Milwaukee 7 region, but Farrow isn’t backing away from the ideas behind his original goal.

“We’re embracing it,” Farrow said of Foxconn. “You look at a lot of different times in a community and very rarely will you get a game-changing, future-altering opportunity like we have with Foxconn.”

Foxconn’s projections call for $1.4 billion in supply chain spending within the state once its plant is fully operational, and Waukesha County leaders believe they’re well-positioned to benefit.

“We’ve already met with companies that are potential suppliers,” said Suzanne Kelley, president and chief executive officer of the Waukesha County Business Alliance. Those meetings also included representatives from Milwaukee 7 and Foxconn.

Farrow said even though the company’s campus will be in Racine County, he expects it will draw heavily on businesses in a 50- to 75mile radius of the plant.

“There are a lot of components that we don’t even know what they need,” he said of Foxconn.

Piecing together the Foxconn supply chain

WCTC

By Arthur Thomas, staff writer

has provided challenges as the company looks to bring a new industry to the United States.

State officials have said as many as 150 companies could follow Foxconn to the U.S., but few details have emerged about what those businesses do.

For companies that are already here, the Wisconsin Economic Development Corp. has established a Supply Chain Marketplace where companies can submit information about their offerings. The agency also created the position of “business and investment attraction director” to work with the company on supply chain issues.

Jela Trask, who now holds the new position, acknowledged at the Manufacturing Matters conference in Milwaukee in March that submit-

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ting information to the marketplace can feel like a bit of a black hole, but added it’s the best way for businesses to get on Foxconn’s radar.

M+W|Gilbane, the general contractor for construction of the Foxconn project, spent much of April holding information sessions to explain bidding procedures for the project. Tim Casey, director of Waukesha County Center for Growth Inc., said he’s expecting similar meetings to take place when the time is right for supply chain opportunities.

“That’s going to be a phenomenal chunk of business,” he said of the projected $1.4 billion in spending.

Even before construction or operations get underway, a number of Waukesha County busi-

nesses have realized opportunities from Foxconn. Todd Taves, a senior municipal advisor in the Pewaukee office of Ehlers & Associates Inc., worked with Mount Pleasant on the local incentive package. Pewaukee-based Ruekert & Mielke Inc. is working with the City of Racine on engineering the Lake Michigan water supply for the plant. Brookfield-based R.A. Smith Inc. even decided to open a Mount Pleasant office, citing existing relationships in the area and anticipated future growth.

“We’ve been talking about an office down there for probably five years,” Rick Smith, chief executive officer of R.A. Smith, told BizTimes earlier this year.

Smith said the civil engineering firm works with seven municipalities in the area and it just made sense with Foxconn’s arrival.

Even Waukesha Water Utility officials are working with Racine officials to coordinate needs for water supply pipes. Waukesha is planning to build a supply line from Milwaukee, and Racine could be extending supply to the Foxconn plant.

Farrow’s original plan for Waukesha County’s growth emphasized helping companies

already in the county grow, and he said that’s where the focus will remain.

“A lot of what’s happening right now is growth from companies that are already here,” he said.

His plans called for the establishment of a county economic development entity, collaboration with municipalities and the creation of a collaborative fund to help finance projects. The first two tasks have been accomplished with the Center for Growth, and Farrow is hopeful the fund will be established soon.

“He’s knocked it out of the water,” Farrow said of Casey.

Still, Farrow acknowledged there might be changes coming to Waukesha County, particularly when it comes to housing density. He said there’s a need for smaller homes on smaller lots to offer younger residents an entry point and there’s also a need for housing options for empty nesters.

“I want to keep them engaged,” he said of the county’s retired community, arguing they can offer a knowledge base for entrepreneurs in the area.

Kelley acknowledged the arrival of Foxconn has some businesses worried about finding

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employees, which is already a challenge with unemployment rates well below 3 percent in Waukesha County.

“We also believe Foxconn will be a talent magnet to the state,” she said.

Farrow said Foxconn’s decision to locate in southeastern Wisconsin highlights the region’s capabilities in advanced manufacturing and businesses, particularly those involved in automation, are already seeing a bump in interest.

“I think we’re going to see a lot of people moving here,” he said.

In addition to embracing different housing densities, Farrow said transportation and education changes can help address workforce challenges.

On transportation, he says he favors flexible options like Uber or the sharing of autonomous vehicles over fixed-route options.

“We know there’s a huge regional challenge on (transportation),” he said.

Farrow also praised the K-12 educational system for engaging with business.

“They’re really starting to realize they can get kids interested in what their career might be,” he said. n

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Strategies LEADERSHIP

Women are speaking up Are you listening?

In recent months, there has been a resounding cry from women (and girls) across the world demanding that there be an end to gender inequality.

2017 ushered the call to action with the Women’s March. Thousands of women (and many brave men) joined the chorus to advance the message.

In 2017, the voices of sexual harassment victims were finally heard, breaking open the conversation about what it means to treat women as equal partners, respected colleagues and leadership candidates in every aspect of business and community.

We are learning from young women and girls that they expect to be fully in the game!

Kate Parker authored a book titled, “Strong is the New Pretty: A Celebration of Girls Being Themselves.” Kate is a photographer and a mother of two daughters. In her work, she photographed hundreds of girls who, in her words, “were being 100 percent themselves.”

Here are a few of their voices: a new message for a new day!

“For me, being a girl means being part of a group of smart, excellent people. When people think of girls, they generally think of makeup, heels and perfume…but girls aren’t all of that.

Girls are intelligent, ambitious, strong people and I am proud to be one.” - Zohe, age 10.

“I am fearless.” - Maggie, age 9.

“In wrestling, girls have an advantage. The guys think less of you until you are face-to-face with them!” - Rachel, age 11.

January 20, 2018. It was the anniversary of 34 / BizTimes Milwaukee APRIL 30, 2018

the Women’s March. In Milwaukee, women rallied. We heard the voices of women and girls of color, offering a deeper understanding of the levels of discrimination they face every day.

Fourteen-year-old Zion Rogers, founder of NorthStar Action and Culture Committee, spoke with passion and a level of wisdom beyond her years. She said: “As a teenager, member of generation Z and African, I am a firsthand witness to the abundant struggles encountered by female youth of color. Poverty, racially-charged micro-aggression, homelessness and trafficking are a few of the challenges we face on a daily basis.”

Echoing the words of Angela Davis, Zion said: “I am no longer accepting the things I cannot change; I am changing the things I cannot accept.”

Women leaders who have lived Angela Davis’ words were celebrated in February and March in Milwaukee by two of Milwaukee’s leading professional women’s organizations: TEMPO Milwaukee and Professional Dimensions.

TEMPO recognized Jayne Hladio (U.S. Bank) and Phyllis King (University of Wisconsin-Milwaukee) at its annual Mentor Awards Luncheon.

Jayne reflected in her remarks lessons that she has learned that connect legacy, leadership and mentoring. One of the lessons learned is the importance of “inclusion mentoring.” Hladio coined the term and it means being willing to mentor those who are not a mirror image of yourself.

King, also recognized for her commitment to mentoring, is dedicated to creating equity for women on public company boards. Reflecting the data of five years of research, she said, “gender diversity positively impacts a board’s performance and, likewise, its financial performance.”

On March 8, International Women’s Day, Professional Dimensions celebrated the accomplishments of two inspiring women, Eve Hall (Milwaukee Urban League) and Paula Penebaker (YWCA Southeast Wisconsin) at its annual Sacagawea Awards Dinner. As a member of Professional Dimensions, “an organization of inclusive women leaders using our power to help each other and to advance the community,” I could not have been more proud!

In her remarks, Hall quoted James Kwegyir-Aggrey, educator and scholar (1875-1927): “If you educate a man, you educate an individual. If you educate a woman, you educate a family….a nation.”

And Penebaker, a leader dedicated to the service of women who are marginalized in our society, said to the Milwaukee community: “We can do better….We can do better.”

From the Women’s March in January 2017 until this day, the call to action from women and girls has gotten louder and stronger. We cannot and we will not wait. There is too much at risk for ourselves, our children, our businesses and our communities.

The time has come for every leader, manager and employee in business, community service, government and the nonprofit sector to be asking these questions: • Are women given equal opportunity within our organization? How do we know? (and be sure to ask the women!)

• What will it take to advance women into leadership roles within our organization?

• What is the makeup of our board? Do we have women’s voices at the table?

• What is the makeup of our executive team?

Does it mirror the face of the organization? n

KAREN VERNAL Karen Vernal is the president of Vernal Management Consultants LLC, a Milwaukeebased leadership and organizational firm.

For more information, visit vernalmgmt.com.

Strategies HUMAN RESOURCES

Win the talent war Growth requires increased investment in people

The economic tailwinds are blowing strong for small and midsize businesses in Wisconsin and across the nation.

While national sentiment remains near record levels, optimism in Wisconsin is surging, according to the Q1 2018 Vistage CEO Confidence Index. Sixty-four percent of CEOs of Wisconsin’s small and midsize businesses believe the economy has improved from a year ago. One-third believe the economy will continue to improve into 2019, and 56 percent think it will continue at current healthy levels.

Their high level of confidence translates into growth. Eighty-five percent anticipate increased revenues over the next 12 months.

That compares to just 79 percent nationally.

Increased top line revenue flows through the balance sheet for most, as 69 percent expect increased profits, as well.

These are exciting times for those CEOs prepared and positioned to capitalize on the best market conditions in a decade.

While growth is good, it does present CEOs with significant decisions. Scaling your business to support new customer demands while maintaining your existing customer base puts tremendous pressure on the entire organization. Growth requires increased investments in talent and op-

erations.

More than one company has come to realize that they cannot capitalize on the tailwinds. A manufacturer lamented recently that the company could easily access capital at historically low rates to expand capacity but couldn’t find workers to operate the equipment.

Talent management has emerged as among the top decisions facing CEOs. In Wisconsin, 69 percent plan to increase headcount over the next 12 months. An expanding pool of opportunities for workers, with fewer workers available to fill them, has quickly forced CEOs onto the front lines of the talent wars.

Of those that are hiring, 17 percent of Wisconsin CEOs surveyed are planning on hiring in the second quarter of 2018, while the majority, 62 percent, plan to hire steadily across the year.

Competition is fierce for talent across all levels of business, from front-line resources to executives.

CEOs have no choice but to recruit talent from other companies, and that’s a door that swings both ways.

TOP 3 STRATEGIES TO WIN THE TALENT WAR In anticipation of this year’s talent wars, Vistage CEOs from across the country identified their top three strategies to compete and win:

The time to increase wages is before the recruiter calls. It’s usually too late to offer a salary match or increase after they’ve told you they’re leaving. By then, they’ve already emotionally checked out.

3. Add employee benefits.

Like boosting wages, great benefits can be a competitive advantage when recruiting new people. Health care, vacation days or even development days are all attractive to potential new hires.

Also, increasing benefits for the current team is a force multiplier because members feel more security and a greater sense of loyalty.

Losing the talent war will have serious repercussions for small and midsize businesses.

Extended fulfillment and delivery times will negatively impact customers, resulting in lower satisfaction. Reducing sales or marketing investments immediately affects top-line revenues.

A good offense begins with a great defense.

Evaluate the competitiveness of your salaries and benefits so your people can’t be lured away with things money can easily solve. Make investments in training and developing your people a priority. The reward will be in higher employee performance. n

1. Develop existing workforce.

Eight-five percent of Wisconsin CEOs identified developing their existing workforce as a top strategy. Employee engagement has emerged as a critical new metric. Engaged employees are not only more productive, but also more likely to stay.

Increased investments in training and development allow employees to continue to improve and evolve.

2. Boost wages.

Eight-seven percent of CEOs identified boosting wages as another key strategy. It’s easy to see how competing on income can be an advantage in recruiting new people. But it also carries a huge impact to the existing workforce when employees feel valued and rewarded.

JOE GALVIN Joe Galvin is chief research officer for Vistage Worldwide and can be reached at research@vistage.com. For more reports and insights, or to connect with a Vistage chair, visit vistage.com/research-center. biztimes.com / 35

Strategies A BRIEF CASE

How do I create a greater sense of purpose for our company?

Jeff Kerlin President and CEO Tailored Label Products Inc., Menomonee Falls “Throughout our professional careers, we often ask ourselves, ‘Why?’ Why do we come to work each day and why do we do what we do? Is it simply for a paycheck? Paychecks are great and we certainly need them, but there are many different things we can do to get one. So, don’t we all strive to ‘do’ something we’re passionate about?

And to do it with people who share our passion?

“As leaders, we owe it to our teams to create a purposeful environment that transcends beyond a transactional relationship with a consumer and the singular goal of making a profit. Creating this environment doesn’t happen by accident.

“Our organizations should have a collective understanding of who we are, what we stand for, what makes us unique and where we are going.

“In the last year at TLP, we hired a coach to guide us through the E.O.S. (Entrepreneurial Operating System) process created by Gino Wickman.

After having gone through this process, we’re able to better answer questions like: What are our core values? What’s our core focus? What is our vision?

And what’s our strategy to get there? A key exercise of this system is evaluating and making sure the right folks are in the right seats, ensuring that our people are passionate about the seats they’re in and performing at a rock-star level.

“This process has clearly helped foster team member ownership, alignment, camaraderie and a greater sense of being a part of something bigger than ourselves. Purpose.”

36 / BizTimes Milwaukee APRIL 30, 2018

Steven Wurster Chief operating officer Ruekert & Mielke Inc., Waukesha “A company’s purpose is not something that can simply be read on a billboard or talked about

by C-suite executives at a quarterly meeting. To truly understand purpose, one needs to tie into the emotional fabric of a firm’s employees and clients. Purpose must be felt deep in the heart.

“At Ruekert & Mielke, our team of engineers and scientists develop infrastructure solutions that make local communities exemplary places to live, work and play. While we have always believed in that mission, the firm took actions a few years ago to deepen that purpose.

“A cross-section of employees from all roles, disciplines and generations developed a corporate playbook that acts as a guiding light to what is important at Ruekert & Mielke. The playbook includes cultural, charitable, employee development and business components. By deeply understanding our current mission, providing a roadmap of where R/M wants to go and then leading by example, our collective purpose was felt and a vision for the future put into place.

Creation of the playbook was an exciting, exhausting, emotional investment, but one that has begun to pay off in spades as the playbook initiatives are put into action.”

Terry Rowinski President and CEO Health Payment Systems Inc., Milwaukee “In today’s workplace, employees are striving to achieve a sense of purpose in their work more than ever. Creating a sense of purpose for a company is essential to motivate employees to do their best work and make them excited to come to work each morning.

“To begin, employers should set high goals for their companies to encourage employees to think BIG. Setting, and frequently communicating, these goals will show each employee how he or she is contributing to the big picture and making an impact on the entire company and community.

For example, at Health Payment Systems, we set an internal goal called 1B16 – to achieve $1 billion in claims processed by 2016. To date, we have processed more than $1.6 billion in claims because we were all moving towards the same goal.

“You also can create a greater sense of purpose by connecting employees’ everyday work to the company’s mission. At HPS, our employees are passionate about our commitment to the Wisconsin market and believe in the need for transformational change in health care. Everyone feels a greater sense of purpose knowing their work is making health care billing easier for providers, employers and employees across Wisconsin.” n

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BizConnections

LILA ARYAN PHOTOGRAPHY

PAY IT FORWARD

Patel helps high school student prepare for future STUDENTS FACE a series of big decisions in high school – which classes to take, which activities to join, which career track to pursue.

Around that time in his life, Pratik Patel had the advantage of teachers and informal mentors helping guide him through the process. A first-generation college student, he went on to become an Evans Scholar at Northwestern University.

Now an analyst at Milwaukee-based investment management firm Artisan Partners Asset Management Inc., Patel gives of his time in hopes of doing the same for Veritas High School sophomore Jonathan Barojas.

Patel and Barojas work together through Big Brothers Big Sisters of Metro Milwaukee’s mentor2.0 program.

“Reflecting over time on the opportunity and experiences I’ve 38 / BizTimes Milwaukee APRIL 30, 2018

had has shown me how important it is to have mentors,” Patel said.

“That is one of the things that has drawn me to working with Jonathan, to devote time to something I’ve benefitted from and am appreciative of.”

The program pairs college-educated mentors with high school youth for monthly in-person mentoring at Veritas High on Milwaukee’s south side, and weekly check-ins using online college readiness-focused curriculum.

Patel, who also serves on the organization’s board, has been working with Barojas since the beginning of his freshman year.

Patel and Barojas spent that first year focused on getting to know each other and building trust.

“I felt a huge difference late in his freshman year, and now in his sophomore year in terms of the strength of the relationship,” Patel

Pratik Patel Analyst Artisan Partners Asset Management Inc. Nonprofits served: Big Brothers Big Sisters of Metro Milwaukee Service: Volunteer in organization’s mentor2.0 program.

said. “It’s exceeded my expectations in terms of ease.”

Recently, they have worked on drafting Barojas’ first resume and discussing his summer job opportunities. Next year, they plan to focus on ACT preparation and other post-secondary readiness skills.

The pair will continue the mentorship through Barojas’ first year of college.

A Chicago transplant, Patel said the experience has helped him get outside of the areas of Milwaukee he frequents – Shorewood, where he lives, and downtown, where he works – and meet people outside of his ordinary circles.

“As with Chicago, it’s a very segregated city that we live in,” Patel said. “So this allows me to

see people outside of the community I live in, and not just from the student perspective, but even the volunteers are from all over the city.

It’s really allowed me to see the fabric of the community.” n

LAUREN ANDERSON Reporter

P / 414-336-7121 E / lauren.anderson@biztimes.com T / @Biz_Lauren

PERSONNEL FILE ADVERTISING & MARKETING

BUSINESS CONSULTING

LEGAL SERVICES

SENIOR LIVING

Brew City Marketing, Milwaukee

EDGE, Waukesha

Goldstein Law Group S.C., Milwaukee

Eastcastle Place, Milwaukee

Brew City Marketing has promoted Nick Bosch to digital marketing coordinator.

EDGE has promoted Meica Hatters to vice president.

Goldstein Law Group S.C. has hired Daniel Chanen as an of counsel attorney.

Eastcastle Place has promoted Amy Steffen to clinical liaison for its health and rehabilitation center.

BANKING

FOOD & BEVERAGE

MANUFACTURING

TRANSPORTATION

WaterStone Bank, Wauwatosa

Marcus Restaurant Group, Milwaukee

Badger Meter Inc., Brown Deer

GO Riteway, Oak Creek

Glynn

Marcus Restaurant Group has promoted Calum Hastreiter to executive chef of The Milwaukee ChopHouse.

Mudlaff

WaterStone Bank has hired Julie Glynn as senior vice president of retail banking and Joseph Mudlaff as vice president, director of commercial real estate.

HOSPITALITY

Saz’s Hospitality Group, Milwaukee Saz’s Hospitality Group, Milwaukee, has promoted Kellie Commons to human resources administrator.

BIOTECHNOLOGY

Accelerated Analytical Laboratories, Milwaukee Accelerated Analytical Laboratories has promoted Ron Peterson to executive assistant.

Jasperson

Leveille

PUBLIC RELATIONS

Mueller Communications, Milwaukee

HOSPITALITY

Marcus Hotels & Resorts, Milwaukee Marcus Hotels & Resorts has hired Carl Dees as vice president of operations.

Submit new hire and promotion announcements to: biztimes.com/personnel

Hummitzsch

PRODUCED BY

Stanley

GO Riteway has promoted Joshua Smith to chief financial officer, Nate Hamilton to vice president of western region school bus operations, Jason Ebert to vice president of fleet and facilities and Jenny Stanley to corporate controller.

Submit new hire and promotion announcements to: biztimes.com/personnel

HOSPICE ALLIANCE

Hospice Alliance is a nonprofit organization dedicated to caring for the terminally ill and empowering those who support them. We strive to provide comfort in order to enhance the quality of life each day.

The International Institute of Wisconsin is an organization dedicated to the promotion of international cooperation, understanding, and a multi-ethnic, multi-cultural perspective through education, arts, exchange, communication, social activities, and immigration and naturalization services. The Institute initiates, coordinates, and sponsors a variety of activities and programs appropriate to the fulfillment of this primary purpose.

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Mueller Communications has promoted Elizabeth Hummitzsch to vice president and Jennifer Morton to associate level III.

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To learn more, visit biztimes.com/giving PRODUCED BY

biztimes.com / 39

BizConnections VOLUME 24, NUMBER 3 | APR 30, 2018

GLANCE AT YESTERYEAR

126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120 PHONE: 414-277-8181 FAX: 414-277-8191 WEBSITE: www.biztimes.com CIRCULATION: 414-336-7100 | circulation@biztimes.com ADVERTISING: 414-336-7112 | ads@biztimes.com EDITORIAL: 414-336-7120 | andrew.weiland@biztimes.com REPRINTS: 414-336-7128 | reprints@biztimes.com PUBLISHER / OWNER Dan Meyer dan.meyer@biztimes.com

SALES & MARKETING

DIRECTOR OF OPERATIONS Mary Ernst mary.ernst@biztimes.com

EDITORIAL EDITOR Andrew Weiland andrew.weiland@biztimes.com MANAGING EDITOR Molly Dill molly.dill@biztimes.com REPORTER Lauren Anderson lauren.anderson@biztimes.com REPORTER Corrinne Hess corri.hess@biztimes.com REPORTER Maredithe Meyer maredithe.meyer@biztimes.com REPORTER Arthur Thomas arthur.thomas@biztimes.com

— This photo is from the Milwaukee Public Museum’s Photo Archives collection.

BOSTON STORE, which has been part of the Milwaukee-area retail landscape since 1897, will soon be gone.

This shouldn’t be surprising to anyone who has been paying attention. The Bon-Ton Stores Inc., the Milwaukee and York, Pennsylvania-based parent company of Boston Store, has been struggling for years. It has not turned an annual profit since 2010.

After sustaining persistent heavy losses, the company finally filed for Chapter 11 bankruptcy earlier this year. Unable to work out a deal with a buyer that would continue operating Bon-Ton as a going concern, the company was sold in a bankruptcy court auction to a group that will liquidate it, shutting down all of its operations and putting more than 22,000 employees, including about 2,250 employees in Wisconsin, out of work.

Bon-Ton is just the latest in a growing list 40 / BizTimes Milwaukee APRIL 30, 2018

ACCOUNT EXECUTIVE David Pinkus david.pinkus@biztimes.com ACCOUNT EXECUTIVE Maggie Pinnt maggie.pinnt@biztimes.com ACCOUNT EXECUTIVE Christie Ubl christie.ubl@biztimes.com SALES INTERN Amanda Bruening amanda.bruening@biztimes.com SALES INTERN Tess Romans tess.romans@biztimes.com

ADMINISTRATIVE COORDINATOR Sue Herzog sue.herzog@biztimes.com

PRODUCTION & DESIGN

This photo, taken circa 1937, shows the Light Horse Squadron Armory and part of the Milwaukee Central Police Station on North Broadway in downtown Milwaukee. The site, at the corner of North Broadway and East Wells Street, now houses a parking garage.

Bon-Ton’s end will leave a huge hole

ACCOUNT EXECUTIVE Molly Lawrence molly.lawrence@biztimes.com

ADMINISTRATION

Downtown castle

COMMENTARY

DIRECTOR OF SALES Linda Crawford linda.crawford@biztimes.com

of national retail chains that have been unable to adapt to the dramatic shifts taking place in that industry. Online shopping, led by Amazon, has created a huge challenge for brick-andmortar retailers. Consumers that actually are shopping in person are increasingly choosing either discount stores, like Walmart or Kohl’s, or high-end stores, like Nordstrom. That’s been a difficult trend for mid-level retailers like Boston Store to handle. Simply put, they have struggled in recent years to differentiate themselves from their competitors, compete with discount chains and make their stores appealing enough to convince consumers to come in the doors.

So now what? Going-out-of-business sales will be held at the area’s Boston Stores through the summer. After that, a huge vacancy will be left in the region. According to CoStar data, there are nine Bon-Ton stores in southeastern Wisconsin occupying a total of 1.17 million square feet. The largest store is at Southridge Mall, at 217,434 square feet, followed by the 215,450-square-foot Brookfield Square store.

Some of those vacant store spaces will be easier to fill than others. Mayfair Mall is the strongest in the region and is best positioned to attract a replacement for its Boston Store.

The other malls may have to get more creative.

GRAPHIC DESIGNER Alex Schneider alex.schneider@biztimes.com

Independent & Locally Owned

ART DIRECTOR Shelly Tabor shelly.tabor@biztimes.com

— Founded 1995 —

Brookfield Square has already been working on plans for a Marcus Theatres BistroPlex and a Whirlyball entertainment establishment to replace its former Sears store space. Now, it has to come up with a replacement for its Boston Store on the other end of the mall. For Southridge, Boston Store will be the third anchor store it has lost since last year.

But the biggest hit of all is in downtown Milwaukee, where the Boston Store at The Shops of Grand Avenue will close and the Bon-Ton corporate office, and its 700 jobs, will be lost.

It won’t be easy to fill the region’s vacant retail space, but it will be much harder to make up for the loss of another major corporate headquarters. n

ANDREW WEILAND EDITOR

P / 414-336-7120 E / andrew.weiland@biztimes.com T / @AndrewWeiland

A View from the Top

AROUND TOWN

Avenues West Association and Near West Side Partners recently held “A View from the Top: Five Decades of Common Council Leadership,” a luncheon at the Tripoli Shrine Center on Milwaukee’s west side.

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1.

Standing: STORMY MERCADEL, formerly of the Milwaukee Women’s Center and JANEL HINES of the Greater Milwaukee Foundation.

Sitting: LILLY SIMMONS of the Milwaukee Exposure & Explorer Project and INDIANA JOHNSON, formerly of the City of Milwaukee.

2.

BILL ZAFEROS of Zaferos Communications and TRACEY CARSON of Mortenson Kim.

3.

RANA ALTENBURG of Marquette University, KEITH STANLEY of Near West Side Partners and JOSEPH DORSEY of Marquette University.

4.

ALDERMAN BOB BAUMAN and EARNELL LUCAS of Major League Baseball.

5.

PEPITA JOHNSON, STEPHANIE SAMARRIPA, HERLYN ROBERSON, and ANGELA FERRILLBROWNE, all of the City of Milwaukee Department of Neighborhood Services.

6.

WANDA MONTGOMERY of Children’s Hospital of Wisconsin and DIANE DE LA SANTOS of City on a Hill.

7.

PRISCILLA WALLACE and BETH BALLO, both of Milwaukee Center for Children and Youth Inc.

8.

MARK SAIN of Milwaukee Public Schools and TRACEY SPARROW of Next Door Foundation.

9.

Former Common Council presidents BEN JOHNSON and MARVIN PRATT, EARNELL LUCAS of Major League Baseball, former Common Council president WILLIE HINES, and Common Council president ASHANTI HAMILTON.

Coffee & Community

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Revitalize Milwaukee recently held a Coffee & Community event at The Timbers at the Tannery in Walker’s Point.

10. LEE VALENTYN of Clarke Square Neighborhood Initiative and DAN SCHILLER of Lake Valley Camp.

11. SUSAN SMIEJA of United Way of Greater Milwaukee & Waukesha County with FRAN GIMLA, NICOLE HUEBNER and NICOLE KIEFERT, all of M Milwaukee’s Lifestyle Magazine.

12. MIRA VUJNOVIC and CELANEESE LANDON, both of the Social Development Commission.

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14. NIEDRA NORTH of Interfaith Older Adult Programs and TERRY GALLANT of CBRE Inc. 15. VI HAWKINS of Revitalize Milwaukee and IRMA YEPEZ of the City of Milwaukee.

16. CYNDIE HIGGINS and ANA BUTSCHLI, both of Great Midwest Bank.

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17. PETER CHERCHIAN of Schroeder Solutions, CAROL MARIA of FDIC and SHARON SZATALOWICZ of Coldwell Banker Residential Brokerage.

Photos by Maredithe Meyer

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13. STEPHANIE SAMARRIPA of the City of Milwaukee Department of Neighborhood Services and LORI GENSCH of Metropolitan Real Estate.

biztimes.com / 41

BizConnections

CORY NE T TLES |

LILA ARYAN PHOTOGRAPHY

the LASTWORD

FOUNDER AND MANAGING DIREC TOR

Smart leaders surround themselves with smarter people Cory Nettles is the founder and managing director of Generation Growth Capital, a Milwaukee-based private equity fund focused on buyouts and providing growth capital to small businesses and lower-middle market companies in the upper Midwest. Being a great leader isn’t about being the smartest person it the room, he says.

“Smart leaders surround themselves with smarter people. The smartest and best leaders I know are surrounded by people smarter than themselves. This doesn’t happen by accident. It happens because of the leader’s self-awareness in her strengths and weaknesses. It happens because he’s confident enough to say ‘I don’t know,’ ‘I’m not good at this,’ or ‘Someone else is better at this particular thing than I am.’

“At Generation Growth Capital, our model for creating value in our portfolio companies is to find and leverage smart talent. We make sure 42 / BizTimes Milwaukee APRIL 30, 2018

that our portfolio company CEOs are surrounded by subject matter experts who are smarter in their respective disciplines. The operations-oriented CEO might not be good at sales and marketing. The sales and marketing CEO might not excel at finance. Our best CEOs are those who don’t pretend to know everything. They know what they know, and they are comfortable admitting what they don’t know.

“At our funds, we have a stable of operating partners, board members and non-executive chairs at each company. By carefully targeting and developing these resources, we scale our

Generation Growth Capital Inc. Milwaukee generationgrowth.com Industry: Private equity investment model and impact, and we develop resources who support us long term. We also find these targeted relationships give us deeper access to opportunities in our markets. They improve our talent-sourcing for our companies.

From their early engagement in our due diligence process to their ongoing roles as management advisors, they play a critical role in the outcome of our investments. By being comfortable bringing them on in value-added roles, we demonstrate to our CEOs that we, ourselves, are smart enough to surround ourselves with smarter people.” n

!

AY Dy TO amil R om/f TE es.c IS tim G biz RE

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