BizTimes Milwaukee | July 19, 2021

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2021 MID-YEAR ECONOMIC REPORT

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BizTimes Milwaukee (ISSN 1095-936X & USPS # 017813) Volume 27, Number 7, July 19, 2021 – August 15, 2021. BizTimes Milwaukee is published bi-weekly, except monthly in January, February, July, August and December by BizTimes Media LLC at 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120, USA. Basic annual subscription rate is $96. Single copy price is $5. Back issues are $8 each. Periodicals postage paid at Milwaukee, WI and additional mailing offices. POSTMASTER: Send all UAA to CFS. NON-POSTAL AND MILITARY FACILITIES: Send address corrections to BizTimes Milwaukee, 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120. Entire contents copyright 2021 by BizTimes Media LLC. All rights reserved.

Contents

6 Leading Edge 6 NOW – THE NBA FINALS

IN MILWAUKEE

8 IN FOCUS – N ASCAR

AT ROAD AMERICA

10 IN THE NEIGHBORHOOD 11 GETTING THERE

BIZ POLL

12 Biz News 12 DANA GUTHRIE READY TO

INVEST AFTER RAISING $12.5 MILLION FOR MILWAUKEE VC FUND

16 Real Estate

COVER STORY

18

The Missing Piece

50 Notable Women in Education

Commencement of Couture construction raises hopes for improving downtown connections

61 Biz Connections

Special Reports

32 Diversity & Inclusion

Coverage includes ideas to help Milwaukee attract diverse talent, a look at what companies that have denounced racism are doing to make a difference, and a report on efforts to increase diversity in Milwaukee’s creative industry.

61 PAY IT FORWARD 62 GLANCE AT YESTERYEAR

COMMENTARY

63 5 MINUTES WITH…

VALERI LUCKS OF PIE INC.

45 M&A Coverage includes a report about how Wauwatosa-based Zywave, which was acquired last year, continues to be aggressive in growing with its own acquisitions, and a preview of the BizTimes M&A Forum.

biztimes.com / 5

Leading Edge

BIZTIMES DAILY – The day’s most significant news → biztimes.com/subscribe

NBA Finals thrills Milwaukee The Milwaukee Bucks’ appearance in the NBA Finals, for the first time since 1974, brought one of the world’s biggest sporting events to Fiserv Forum. With the lifting of COVID-19 restrictions, the arena has been packed during most of the Bucks’ long playoff run and massive crowds have gathered in the Deer District outside the arena for home and road Bucks playoff games, and the crowds got even larger for The Finals. The playoff crowds have been a huge boost to downtown bars, restaurants and hotels that were devastated by the pandemic.

VISIT Milwaukee estimates each Bucks home game in the NBA Finals produces an economic impact of about $3.7 million. The NBA Finals also puts Milwaukee on the national and international stage, making up for some of the media attention the city missed out on when the 2020 Democratic National Convention, which was supposed to be held in Milwaukee, instead became a mostly virtual event due to the pandemic.

— Photos shot by Maredithe Meyer

6 / BizTimes Milwaukee JUL 19, 2021

LONGEST NEIGHBORHOOD TABLE - IMPACT EDITION

presented by

THE FUTURE IS BRIGHT FOR ACTS FAMILIES BECAUSE OF THE GENEROSITY OF:

JOHN & GWYN BEAGLE

THE CUDAHY FOUNDATION

The average homeowner has 40 TIMES the household wealth of a renter; wealth created by homeownership is the single biggest contributor to an increase in net worth across all income groups.

Despite the challenges of 2020, Acts Housing helped 181 families become homeowners last year. 80% of these households earned less than 80% of the Milwaukee County Median Income; thats $67,000 for a family of four.

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Leading Edge

inf cus

NASCAR’S CUP SERIES and Xfinity Series at Road America drew more than 100,000 racing fans, some traveling across state lines and camping overnight in tents and RVs to experience the four-day event over Independence Day weekend.

The Jockey Made in America 250 Presented by Kwik Trip was the first NASCAR Cup Series race to take place at the Elkhart Lake road course in 65 years. Since it opened in 1955, Road America has hosted elite racing competitions and some of the biggest names in auto racing, but mostly in the open-wheel IndyCar circuit.

NASCAR’s top stock car racing series had only competed one other time at the 4-mile track, in 1956. Road America has hosted NASCAR’s second highest level of competition, the Xfinity Series, since 2010.

Attracting spectators to Road America from as far away as Kansas, Texas and Arizona, the Cup Series was touted by racetrack officials as the largest motor sports event ever to occur in Wisconsin.

“People had heard about Road America from other events, such as IndyCar and motorcycle racing, but people wanted to be a part of the first (Cup Series race at the track in 65 years),” said Road America communications director John Ewert. “We’re encouraged by that because everybody had such a positive experience that they were talking about wanting to come back.”

“It’s good for Sheboygan County, it’s good for Wisconsin, it’s good for Road America and it’s good for all of our partners,” Ewert said. n — Maredithe Meyer 8 / BizTimes Milwaukee JUL 19, 2021

MAREDITHE MEYER

Green flag for NASCAR at Road America

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STORIES OF CHANGE Join us (in person) on August 19th at BizTimes Media’s Women In Business Symposium.

Whether you’re driving the future of your organization or reevaluating your own priorities, change is a constant in life.

The Women in Business Symposium panel will explore stories of change in leadership, company culture, mental health, entrepreneurship and more from women in southeastern Wisconsin’s business community. Attendees will meet this year’s Woman Executive of the Year – Kathy Koshgarian President & COO, The Dohmen Company Foundation.

Panelists: » Peggy Williams Smith, President & CEO, Visit Milwaukee (1) » Kendra Whitlock Ingram, President & CEO, Marcus Performing Arts Center (2) » Leana Nakielski, Strategic Partnerships Director, American Family Insurance (3) » Syneathia LaGrant, Vice President, Global Learning and Development, ManpowerGroup (4)

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3

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It won’t stop there. The Women in Business Symposium is expanded from a panel discussion to a half-day symposium with multiple breakout sessions for deeper discussions. Attendees will walk away with fresh insights into how they can make changes in their own life and company.

Breakout sessions: » Toss Up: Giving attention to your intention | Presenters: Laura Piotrowski and Karen Vernal » Building your future: Stories from women turning their dreams into businesses | Panelists: Rosario Sanchez, Sheila Shaffie, Tiffany Miller, Melissa Gagliano » Developing leaders around you | Presenter: Crystal Miller » How are YOU doing? Hitting the post-pandemic reset | Panelists: Dr. Tiffany Mullen, Sarah Hammond, Beth Kavelaris » Is mentorship enough? Exploring the differences between mentorship and sponsorship Moderator: Dr. Phyllis King | Panelists - DeVona Wright Cottrell, Isioma Nwabuzor, Greg Larson, Julia Klimkovich Visit the registration site for more details

Woman Executive of the Year: Kathy Koshgarian, President & COO, The Dohmen Company Foundation

REGISTER TODAY! PRESENTING SPONSOR:

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Leading Edge

@BIZTIMESMEDIA – Real-time news

IN THE NEIGHBORHOOD

GREAT IMPRESSIONS 5330 W. Burleigh St. NEIGHBORHOOD: Sunset Heights, Milwaukee FOUNDED: 1998 OWNER: Carolyn Walker SERVICE: Commercial printing and graphic design EMPLOYEES: 8

10 / BizTimes Milwaukee JUL 19, 2021

How did you start Great Impressions?

Walker: “I had already worked about 15 years in the industry and had the desire to do my own thing and make my own decisions. So, I started the business in my basement, reached out to various businesses in the community, purchased a computer and eventually began leasing a copier, and then I started to acquire more equipment in my basement. After doing that for about five years, I had increased my customer base and saw this building (at 5330 W. Burleigh St.) being built and identified it as somewhere

I’d like to be.”

How has the industry evolved since you’ve been in business?

“I think a lot of people are able, with their own skills and what they have in their homes, to do their own artwork. People are more knowledgeable as it relates to providing artwork print-ready. There was a time during the 1990s where we thought the print industry was going to fade – and it has declined and changed – but we still are getting a nice amount of work and I’m expecting the growth to continue

over the next three to five years.”

Being woman- and minority-owned is a central part of your branding. Can you share your thought process?

“Minorities and females are often pushed to the side, especially in this industry – printing is not necessarily a woman’s field and there are not many minorities in this field.

I like to let people know because there are people who are intentional about supporting companies that are woman-owned or minority-owned.” n

GETTING

THERE

What’s your role at Associated Bank?

“I’m responsible for leading our companywide marketing efforts, including shaping the bank’s existing creative vision. So that means my team develops and executes all the marketing strategy that supports the whole enterprise. … That role has evolved since I joined the bank, because I really came to Associated Bank with experience in leading inhouse creative teams.”

BIZ POLL

A recent survey of BizTimes.com readers.

Has your company adjusted the pricing for its goods or services this year?

48.5% Yes, we’ve increased our prices: 45.5% Yes, we’ve lowered our prices this year: 6.1% No, our prices haven’t changed:

On coming to banking from retail and ecommerce “I was actually deciding between (Associated Bank and) another role at a retailer on the East Coast and decided this was my opportunity to kind of get out of my comfort zone. I knew very little about the banking industry, admittedly, but I really was inspired by the vision of the leadership team.”

Getting outside your comfort zone “It wasn’t an easy decision. It truly was taking a chance and making that leap of ‘it’s going to be OK.’ I have transferable skills and this is a chance for me to apply those skills to a different industry. The thing that really helped me make that leap and kind of get over that was just that I knew what a great stretch opportunity it was going to be for me, because I had a very consumer-centric viewpoint up to then in my career and this was really going to give me a chance to see the B2B side of things and learn about how a totally different industry makes money.”

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

Proceeds to Benefit St. Coletta of Wisconsin

Advice for stepping into bigger roles “One thing that maybe I would say to other people considering an expanded role is something I kind of said to myself … ‘I may not think that I’m ready for this opportunity, but no one is expecting you when you’re taking on something new to be perfect on day one.’” n

FOURTH ANNUAL

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August 7th, 7:00-8:30pm A Virtual Event MARILKA VELEZ Senior vice president, senior director of marketing Associated Bank AGE: 39 EDUCATION: Bachelor’s degree in graphic design and Spanish, Mount Mary University PREVIOUS POSITION: Creative director for Associated Bank

Register for free now!

www . STCGALA . com Special Honorees & Speakers Silent Auction Trivia

Sil Auc ent t Ope ion July ns 31st

A business of Morgan Stanley

biztimes.com / 11

BizNews

JAKE HILL PHOTOGRAPHY

FEATURE

Dana Guthrie

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© 2021 Davis|Kuelthau, s.c.

Dana Guthrie ready to invest after raising $12.5 million for Milwaukee VC fund Exceeds her target fundraise by $4.5 million

By Brandon Anderegg, staff writer GATEWAY CAPITAL’S fund manager Dana Guthrie raised $12.5 million in under a year.

The Milwaukee-based venture fund is one of Wisconsin’s five Badger Fund of Funds, an 8-yearold venture capital program designed to invest in Wisconsin-based startups.

Guthrie’s Gateway Capital Fund is designed to invest in pre-revenue startups in the Greater Milwaukee area over a four-year period. The fund plans to make its first investment in a Wisconsin-based startup this month,

Guthrie said.

During her eight-month fundraise, Guthrie spoke with hundreds of investors, and while most chose not to back her fund, she exceeded her target fundraise by $4.5 million with the investors who did.

It’s difficult for any first-time fund manager to raise capital without prior experience or a dataset that illustrates financial returns generated from investments. For most first-time fund managers, investors base their decision on character and prior successes, which was the case for Guthrie.

After 42 years of business success, Rick Smith, founder of the engineering firm raSmith, needed help determining a succession plan to put his son, Ricky, in charge. Our team at First Midwest Bank gave Rick and Ricky guidance, financial tools and the support they needed for a smooth transition.

Guthrie moved to Milwaukee from St. Louis in 2006 after she was recruited to play basketball for the Milwaukee School of Engineering. The university noticed Guthrie, a point guard for the St. Louis Sparks, at an Amateur Athletic Union tournament in Chicago.

Guthrie earned a computer engineering degree at MSOE and later earned her Master of Science in Energy Engineering from the University of Illinois-Chicago. She has since led a 12-year-long career in software product development at Johnson Controls before founding her own angel investment network, Milwaukee-based Alchemy Angel Investors.

In addition to being a first-time manager, Guthrie also faced the challenge of raising capital in Milwaukee’s VC ecosystem, which has proven to be a difficult landscape for first-time fund managers.

The Badger Fund previously

“I think it shows what can be accomplished in business when we broaden our perspective.” − Dana Guthrie

backed two first-time fund managers with Milwaukee-centric funds; however, both were decommissioned after their managers failed to raise enough capital. One fund did not raise any capital while the other was unable to attract a single investment from an academic institution, corporate entity, individual investor, or family office based in Milwaukee.

Guthrie is also operating in an

SETTING THE NEXT GENERATION UP FOR SUCCESS.

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biztimes.com / 13

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industry where only 4.9% of U.S.based VC partners are women and 33% of them are women of color, according to Women in VC, an organization that tracks demographics in venture capital.

Having understood Milwaukee’s history, Guthrie set her target fundraise at $8 million. However, she landed commitments from two institutional investors early on – the Greater Milwaukee Foundation and West Bend Mutual Insurance Co., which helped build momentum, she said.

“Honestly, I think it shows what can be accomplished in business when we broaden our perspective,” Guthrie said of the raise.

“When I look at my limited partner base, I’m extremely proud of the makeup and the composition.”

Guthrie has since attracted investments from a diverse group of limited partners, which include institutions, corporations, foundations and individual investors from different backgrounds. A third of her limited partners are African American and a fourth of them are women, she said.

“From a personal level, I think it’s significant because representation does matter,” Guthrie said.

“So, I think the raise means a lot mostly because it’s a true reflection of everything great about Milwaukee.”

While the Gateway Fund’s primary objective is to generate returns that exceed the national average, the fund is also tapping

into the “returns plus more” trend that VC ecosystems are experiencing across the country.

Guthrie says some investors want more than just financial return; they also want to see the impact as their dollars are put to work in a business, community or industry that they are passionate about.

In addition to Guthrie’s career accomplishments, the financial returns-plus-more trend is what brought West Bend Mutual Insurance Co. and the Greater Milwaukee Foundation to the table.

“While we clearly anticipate market performance and returns from investing with Dana and Gateway Capital, we also recognize the tremendous social impact, not only in developing a tech ecosystem and attracting talent to the region, but also, down the road, creation of jobs,” said Derek Tyus, West Bend Mutual vice president and chief investment officer.

As the fund generates financial returns, Guthrie said she believes she’ll achieve social returns in a way that contributes to upward mobility and economic growth in Milwaukee County.

“We have the ability to really make a big impact in this area that I believe is underinvested,” Guthrie said. “Ideally, we’ll have multiple founder success stories, founders of all different backgrounds that are reflective of the market and who will invest back in Milwaukee. That’s the vision.” n

SPONSORED CONTENT

What is an ICHRA? Learn the advantages of Individual Coverage HRA’s A New Way to Offer Group Health Insurance

By Ray Seaver - zizzl llc

AS COMPANIES RESHIFT their focus from survival to growth following the pandemic, many employers are placing renewed emphasis on employee health and wellbeing — and rethinking their health benefits packages in the process.

When you’re a business owner, offering employer-provided health coverage is a great way to attract and retain top talent, and improve job satisfaction in the workplace.

But over the years, rising healthcare costs have become a source of significant stress for employers and employees, alike.

Since 2010, average family premiums have increased more than 55 percent. In the past five years alone, the Kaiser Family Foundation found that annual family premiums for employer-sponsored health insurance rose 22 percent to an average of $21,342 in 2020, with employers contributing more than twothirds toward the cost of coverage.

The surge of healthcare costs has forced many smaller companies to reduce benefits and increase employee costs, or worse, opt out of offering health benefits altogether.

Each year, we hear from customers who are frustrated by the annual health insurance renewal process and unexpected increases. Whether it’s finding an insurance company that provides affordable group health plans that work for everyone or finding a plan that fits within the company’s budget, the complexity of selecting coverage that satisfies both parties presents a constant challenge.

More than 80 percent of employers that provide coverage only offer one type of health plan to their employees, leaving many workers and their families behind, according to the Employee Benefits Security Administration.

When it comes to growing your business,

Since 2010... average family premiums have increased

more than

55%

investing in employee health and wellbeing should be a top priority. A healthy workforce positively impacts work productivity and performance, boosting the company’s bottom line.

54 / BizTimes Milwaukee JULY XX, 2021

So, it’s surprising that many employers are still unaware of an ICHRA, which is a simpler way to create quality healthcare benefits for employees and provides employers with complete control over their health insurance budgets.

A NEW HEALTH BENEFITS MODEL

are expected to offer an ICHRA to cover insurance for more than 11 million employees and their families in the next five years Source: U.S. Treasury Department

ICHRA, an acronym for “Individual Coverage Health Reimbursement Agreement,” is a new kind of Health Reimbursement Arrangement (HRA). In 2019, the federal government created this new type of HRA which allowed employers to reimburse employees a fixed amount of money each month for health insurance premium and healthcare related out-of-pocket expenses if they used at least some of the money to purchase a qualified health insurance plan.

Think of switching from a group plan to an ICHRA like switching from a pension plan to a 401k.

You’re still offering your employees the benefit, but now they get to choose what works best for them.

company pension

800,000 EMPLOYERS

my 401k

my 401k my 401k

Today, through an ICHRA, employers can take advantage of this alternative option of providing quality health insurance benefits to employees with the same tax benefits of a traditional group plan. An ICHRA removes the hassles of employers selecting an insurance company or plan and allows employees to choose an insurance company and plan that fits their individual needs, household budget, and lifestyle.

Because employees are free to choose their own insurance company and plan, employers aren’t stuck between reducing benefits or increasing employee costs to keep budgets in line. It’s also one of the reasons why an ICHRA is a great option for smaller companies, especially if they haven’t offered health insurance before. For larger employers subject to the Affordable Care Act, ICHRA’s keep them in compliance and out of the “penalty box.”

Since an ICHRA first became available to employers in January 2020, there has been a prevailing misperception that these individual health premiums are higher than group premiums. That simply isn’t the case.

By providing employees with a greater range of options and allowing more people to shop for health plans in the individual marketplace, health insurance companies are more likely to innovate products and price them competitively.

In Milwaukee County alone, there are at least 60 different health plans from five well-known insurance providers from which to choose.

According to the U.S. Treasury Department, more than 800,000 employers are expected to offer an ICHRA to cover more than 11 million employees and their families in the next five years, including by expanding health access to nearly one million workers who were previously uninsured.

Navigating the complex health benefits landscape can be challenging for any size businesses.

With an ICHRA, businesses can remove the costs and burden of selecting a single health plan for their workforce and provide employees with a choice they can afford, allowing employers to focus on customers and building their business.

At zizzl Health, we help companies explore their options for high-quality, hassle-free health insurance. If you’re interested in how an ICHRA can work for your business, contact zizzl Health for a free ICHRA Cost and Savings Analysis.

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Real Estate

REAL ESTATE WEEKLY – The week’s most significant real estate news → biztimes.com/subscribe

Church Mutual’s Milwaukee office will be located at 833 E. Michigan St.

Office market poised for pandemic recovery

By Alex Zank, staff writer

THE OFFICE real estate market was undoubtedly affected at the height of the COVID-19 pandemic.

Many workers weren’t even in the office, and few companies were thinking about getting a new one. Many tenants who may have moved or upgraded their space in normal times opted instead for short-term lease renewals amid the uncertainty.

Now, with mass vaccination and a recovering economy, there are signs of life in the office market. Industry professionals say things should only improve in the coming months.

“I think we’re going to make up lost ground from last year, and we’ll do it this year,” said Jenna Maguire, an office broker with Milwaukee-based Founders 3. “I think there’s going to be continued interest … across the board.

I don’t really think we’re having that, ‘office space is redundant or not necessary, everyone’s going to work from home.’ That’s just not going to happen.”

Perhaps the biggest office deal during the pandemic last year was Kahler Slater’s announcement it would move into the new BMO Tower downtown.

There’s been more for the industry to celebrate this year. The

FEATURED DEAL: SALE OF AT&T’S DOWNTOWN MILWAUKEE OFFICE BUILDING The new owner of the historic AT&T office building in downtown Milwaukee is a firm that specializes in redeveloping underperforming properties.

An affiliate of Reign Capital LLC recently bought the 20-story, class B office building at 722-740 N. Broadway. As of late June, it was not clear if the building would remain as offices or be converted to other uses.

Until recently, the building was technically fully occupied because it was owned by AT&T and not listed for lease. A 2017 marketing flyer from real estate brokerage JLL states AT&T is retaining only about 27,000 square feet.

ADDRESS: 722-740 N. Broadway BUYER: Reign CO1 Propco LLC SELLER: Wisconsin Bell Inc. PRICE: $30.1 million 16 / BizTimes Milwaukee JUL 19, 2021

headliner was Brookfield-based Milwaukee Tool, which revealed in the spring it would expand into downtown Milwaukee.

And three companies announced in the same week in late June they were establishing or moving their local offices. Merrill-based Church Mutual Insurance Co. said it was leasing 10,000 square feet at the 833 East building downtown. New York-based law firm Wilson Elser said it moved its local office to the Cathedral Place building downtown. Chicago-based Sikich revealed it would move its Brookfield office to The Corridor development.

Maguire, who primarily represents landlords in lease deals, said she can take the pulse of the office market by the number of property tours she’s giving on Friday afternoons in the summer. A lot of tours on those days indicate a strong market.

She said she has been busy the past several Fridays. The areas with the most interest include Westown, Walker’s Point and the Historic Third Ward. Most of the users who are active in the market so far are either regional or Wisconsin-based companies, she said.

Church Mutual views its office environment as a way to create company culture, train new employees and recruit new workers, said Kevin Root, senior vice president of operations.

“We do believe that there is a role for our employees to be at the office,” he said. “We’re currently working through that and identifying exactly what that means, but we do see a lot of benefits of having the employees in the office, even if it is not necessarily on a full-time basis moving forward.”

Those employers have all noted their new office spaces will reflect a more flexible workplace.

Sikich and Wilson Elser said their offices would use a hoteling system, wherein employees would reserve a workstation prior to coming in. There will also be more collaborative space.

Root said Church Mutual is still finalizing the details of its Milwaukee office but it will reflect those

same principles. He said there aren’t as many hard-wall office spaces, which “should facilitate more collaboration.”

Maguire said businesses are considering more flexible environments as part of efforts to entice workers back to the office.

“A lot of companies are referencing a hybrid work model, and/ or a certain percentage of their office that will be virtual,” she said.

“But definitely the idea of having more collaborative space, space to spread out, (and) amenities have been really critical in a lot of decision-making.”

Office-market activity coincides with a general reenergizing of the region. Vaccinations are readily available, and many people feel safe to gather in large crowds.

This is evidenced by Bucks fans packing the Deer District during playoff games. What’s more, a recent survey of downtown Milwaukee employers found that workers were returning to their downtown offices at a faster rate than many other metro areas.

Lyle Landowski, managing director of Colliers International | Wisconsin, said the momentum Milwaukee had before the pandemic has started to come back.

Milwaukee Tool’s expansion and other major projects, such as The Couture high-rise on the city’s lakefront, could grab the attention of more investors and office users.

He said Milwaukee Tool was a “massive shot in the arm” to the market. When a company the size of Milwaukee Tool demonstrates it is confident it can find success in the city, that sends a strong signal to others.

“We lost a little bit of momentum through COVID, but I think people are starting to wake up to the fact we have a beautiful downtown and infrastructure, we have a very stable economy and we’re going through a little bit of renewal, especially as our manufacturers become tech companies,” Landowski said. “I think the fundamentals of our marketplace are going to be very attractive to both corporate users and investors of real estate.” n

COMMUNITY WITHIN THE CORRIDOR After more than four years of planning, the Community Within the Corridor project has started construction.

The $66 million project involves the redevelopment of the former Briggs & Stratton plant along 32nd Street, north of Center Street, on Milwaukee’s north side. It includes 197 units of affordable housing, a 35,000-square-foot community service facility and 25,000 square feet of recreational space.

The community service facility will have a daycare, small grocer, after-school programming, laundromat and creative collaborative workspace. Units range from studios up to four bedrooms.

Que El-Amin of Scott Crawford Inc., which is co-developing the project, said it is currently the largest privately owned affordable housing development in Wisconsin.

DEVELOPERS: Scott Crawford Inc. and Roers Cos. LLC COST: $66 million CONSTRUCTION MANAGER: Greenfire Management Services LLC

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BY ALEX ZANK, staff writer FOR YEARS MILWAUKEE officials have sought to improve the downtown’s lakefront access, enhance transit options and further link downtown with nearby neighborhoods, especially the Historic Third Ward. They have also tried desperately to build up Milwaukee’s national reputation as a place where people should reside, companies should locate their workforce and investors should put their dollars.

Since 2012, many have looked to The Couture development to help achieve all of those goals. After nine years of hope, doubt, hand-wringing and arguments but no construction, the much-anticipated project is finally underway.

“It will be a beautiful skyscraper that will truly be the long, long-time missing puzzle piece,” said Beth Weirick, chief executive officer of Milwaukee Downtown Business Improvement District No. 21. “It will be indicative, I think, of Milwaukee’s next chapter.”

Once construction finishes in fall 2023, The Couture will be the tallest residential building in Wisconsin.

The project has overcome several major challenges, from a lawsuit over the developability of the land to a heavy lift in raising enough investment.

And it may draw some new attention to Milwaukee.

“I think it is going to spur more development – and not just in the downtown area 18 / BizTimes Milwaukee JUL 19, 2021

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An aerial view of The Couture construction site and its surroundings.

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– as outside investors and investors that may have overlooked or just passed by Milwaukee may now take a second look, and say, ‘Wow, Milwaukee’s got a lot going on,’” said Matt Rinka, partner at Milwaukee-based project architect Rinka. “I think the secret of Milwaukee will hopefully be discovered by the rest of the world.”

Creating a landmark

The Couture is certainly not a typical apartment tower development. Milwaukee County released an RFP about a decade ago seeking a project that would redevelop the Downtown Transit Center site, at 909 E. Michigan St., and include a transit component.

Rick Barrett, founder and CEO of Barrett Lo Visionary Development, and Rinka pitched their idea of The Couture.

With Barrett’s project, Milwaukee would get much more than a transit center. It also promised a 44-story tower containing 322 residential units and 42,000 square feet of commercial space. It would also include a public park and a series of pedestrian bridges that would connect the site to the lakefront and its surroundings.

“It’s like the Leatherman (multi-tool) of a building,” Barrett said.

A tower this significant needed the architectural character to match. Rinka said his firm wanted to create something unique to the market, something that stood on its own as a landmark building.

“To be perfectly honest … it’s something that was designed through a lot of iterations,” he said.

“Whether I was awake or asleep, I was always thinking about it.”

20 / BizTimes Milwaukee JUL 19, 2021

Rinka woke up one night with an idea. He sketched his idea on the back of a piece of hotel stationery, which turned out to be the impetus for The Couture design.

“The excitement the next morning between he and I was incredible,” Barrett said. “He’s a supremely talented architect, and we needed that vision and we needed that piece.”

Chad Griswold, partner at Rinka, said crews were to soon begin driving piles into the ground. To support the tall and slender building, the project team will be using the highest-capacity piles the city has seen.

“From a technical standpoint, it is a very advanced building,” particularly due to its height-towidth ratio, he said.

Rinka likened The Couture’s design to sticking a pencil in the sand.

Connecting downtown

A key feature of The Couture will be its transportation and pedestrian connections.

The transit concourse will serve The Hop streetcar lakefront line and will be the turnaround point for Milwaukee County’s bus rapid transit line.

There will be 364 underground parking spaces for residents. A 550-stall parking garage above ground will be used for overflow resident parking and the retail space. It could also be used for people who are visiting nearby attractions such as Henry Maier Festival Park, Discovery World and the Milwaukee Art Museum.

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1. Rendering of The It will also contain a series of Couture from North Linpedestrian bridges connecting coln Memorial Drive and The Couture with the lakefront East Michigan Street. to the east, O’Donnell Park to the north and the Wisconsin 2. Aerial view of The Department of TransportaCouture’s third-floor tion-owned site to the south. public park.

The so-called MKE Gateway site, 3. View of the ground at 815 E. Clybourn St., is for sale. level transit concourse It is being marketed as a prime at the Couture from the spot for a corporate office tower. second-floor concourse, “Typically, a real estate deshowing the large-forveloper doesn’t allow for transit mat LED screen. to spin right through the heart of the project,” Barrett said. “But that’s such an integral part of what we’re trying to accomplish here. We want to be a multi-modal hub so that the building itself is like a lung. It breathes people in and breathes people out.”

The transit-oriented nature of The Couture is new for Milwaukee, said Donna Brown-Martin, Milwaukee County’s director of transportation. It

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4. Lakefront Gateway Plaza view looking northwest with downtown behind.

5. A rendering of the Lakefront Gateway Plaza depicting a walkway, water feature, artwork and pedestrian bridge to The Couture.

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also promises to be a vast improvement over its previous use as a bus barn known as the Downtown Transit Center.

“The design of the original structure that was there before, we would have buses come in and stop,” she said. “But except for a few meetings that might get set up there from time to time, it wasn’t engaging with the community.”

The incorporation of the BRT line into The Couture itself should change how people think of transit, especially in a city the size of Milwaukee, said Aaron Hertzberg, Milwaukee County’s administrative services director.

“You can think about getting off the L (line) in Chicago and coming into a larger building, or New York’s subways that run under buildings and access to buildings directly,” he said. “But for a city the scale of Milwaukee, I think things like this are rare if they do exist.”

Welcome to the Lakefront Gateway The Couture’s construction has turned attention again to two key sites around it. One is the planned Lakefront Gateway Plaza site to the east.

The other is the MKE Gateway parcel to the south, at 815 E. Clybourn St. Officials have revealed grandiose plans for the sites, but not much has happened over the past few years. That’s because they were heavily reliant on The Couture being built.

“I think we’ve always felt the key to unlocking the potential of 815 Clybourn, or the MKE Gateway site, is The Couture,” said Lyle Landowski, managing director and soon-to-be president and CEO of Colliers International | Wisconsin.

Colliers is marketing the site to potential users and developers on behalf of the property owner,

the state of Wisconsin.

“The real key to that (MKE Gateway) site is it does bridge the Third Ward, downtown east, the Lakefront Gateway Plaza all together in one site. But without The Couture, it just doesn’t work the same,” Landowski said.

The MKE Gateway site was freed up for development after the Wisconsin Department of Transportation moved a pair of I-794 ramps in the Lake Interchange and, working with local leaders, reconfigured city streets. It created a generational opportunity to develop a new downtown lakefront site. Conceptual renderings by Rinka depict a 50-story corporate office building at the site. Landowski said he’d spoken with “a handful of national developers” about the site. Two had been courting corporate users, though neither had secured those users to follow through with their interest, he said.

This interest was all mostly before the COVID-19 pandemic. But with rising vaccination rates and a recovering economy, Colliers is dusting off its marketing materials for the MKE Gateway site.

City officials announced in 2015 it had selected a design team led by Milwaukee-based GRAEFUSA Inc. for the Lakefront Gateway Plaza. Since then, the team gave presentations of their plans and gathered feedback from residents, said Pat Kressin, GRAEF principal and vice president of business development. The presentations finished up in 2018.

Some of the ideas it took from that period include ensuring the plaza has a regional impact, making connections with local schools and libraries and reinforcing Milwaukee as the “Fresh Coast” capital.

Kressin said the plaza has the potential “to be more than just a place.” It could provide the community with more than just another spot to gather and socialize.

Even if the ideas for the plaza are plentiful, the funding isn’t. The Lakefront Gateway Plaza project still needs to raise tens of millions of dollars.

Much like the marketing of MKE Gateway,

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6. Rendering of the pedestrian bridge that will connect The Couture to the Lakefront Gateway Plaza.

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fundraising efforts for the plaza really depended on The Couture moving forward.

“We were getting all of that stuff started, we were working with the city and the Greater Milwaukee Committee on trying to figure out a fundraising strategy,” Kressin said. “Then everyone kind of realized, without The Couture, what are we going to fundraise for?”

People needed to know The Couture was real.

They needed to see shovels in the ground.

“And now, we’re there,” Kressin said. “And now that’s going to be our next step here, let’s get our fundraising campaign plan in place and start executing it.”

Kressin said he expects a major public announcement on the fundraising strategy for the Lakefront Gateway Plaza by the end of the year, and possibly by the end of the summer. Once the fundraising plan is in place, the GRAEF-led team can start detailed designs and work out agreements with Barrett Lo for the public pedestrian connections.

The original fundraising campaign sought to raise $26 million. The team has to update the estimated cost, but it will likely be larger.

A complex financing puzzle

The fundraising required for the Lakefront Gateway Plaza is nothing like what Barrett Lo had to accomplish with The Couture – with a price tag of nearly $190 million. biztimes.com / 21

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For months on end, it seemed as if Barrett was not making any progress in his quest to raise enough money for the project, including numerous delays in his application for a federal loan guarantee. Some local leaders began to get anxious. They called for the city to reroute the streetcar and for the county to take back control of the site.

All the while, Barrett was pitching Milwaukee as a place where investors should do business.

In July 2019, Barrett announced he was working with Milwaukee-based investment bank R.W. Baird to help secure the remaining needed financing.

Baird managing director Jim O’Brien connected with Barrett through a colleague on the private wealth side. Baird’s 8 real estate team viewed The Couture favorably because of its location, capital structure and its transit-oriented nature.

“There were a lot of components that could make it an attractive opportunity for an investor,” O’Brien said. “So that’s when we decided to move forward.”

The Couture has investors from across the country.

Its chief funding source is a $104.7 million loan from JLL Real Estate Capital LLC, backed by the U.S. Department of Housing and Urban Development. Once it received its HUD guarantee, the loan was immediately acquired by the AFL-CIO’s Housing Investment Trust.

The development also has $70 million in equity.

New York-based MidHudson LLC is investing $24.5 million in preferred equity, including $11.7 million from its HUD reserve funding program and $12.8 million of additional preferred equity. It also has a joint venture equity investment of $17 million from Boca Raton, Florida-based WhiteStar Advisors LLC. The remaining equity comes from Barrett Lo

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and other investors, who are located across the U.S., Barrett said.

There’s also a syndicated loan of $13.8 million, specifically for additional parking and transportation costs that HUD did not want included in the mortgage it backed. Old National Bank is the primary bank for that loan, while Incredible Bank and Commerce State Bank have invested in smaller pieces of it, Barrett said.

The Couture is additionally receiving $19 million from the city for infrastructure work.

Chang Suh, CEO and chief investment officer of the AFL-CIO’s Housing Investment Trust (HIT), said his group was interested in The Couture from “day one.” HIT ended up playing an important role in getting the project financing to the finish line.

Suh said he wrote “a couple dozen” letters of interest to local leaders, HUD and investors. This was to help build confidence in the project.

“People want to know, if I take the time to get involved in this deal, if I give you my money, can

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you really show up with that 7. Rick Barrett at The Couture construction investor in the loan? And with site in May. him going to all these potential partners and saying, ‘I already 8. Construction crews have the buyer of a $100 milunloading equipment at lion loan,’ that means a lot,” The Couture site in May. he said. “You go shopping for a house they’re going to say, ‘Are you preapproved?’ Basically, Rick got preapproved from HIT.” The HUD guarantee, in turn, enabled HIT’s involvement. Without that guarantee, Suh said HIT would not have been able to buy the loan. JLL processed and underwrote the loan, but does not have the capital. HIT, which has about $7 billion in assets, does.

Baird and Barrett Lo were selling the city of Milwaukee to national investors about as much as they were selling the project itself.

“I love Milwaukee, but Milwaukee’s not the top of everybody’s list of cities people are looking to invest in,” O’Brien said. “There was a bit of a learning curve associated with Milwaukee that we really had to address in our materials.”

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there are versions of The Couture all over. This is not so in Milwaukee, meaning the city has a limited track record of success for investors of this product type.

This is why another downtown luxury apartment tower, Northwestern Mutual’s 7Seventy7, played a vital role in making The Couture happen.

O’Brien said Baird could point to the success of that project when pitching The Couture to investors.

“One of the (cases) we had to make from an investors standpoint is we could get them comfortable with the concept once this was built and stabilized, the location and all the different attributes … are going to make it a long-term investment to where someone will come in and buy the asset, and create the liquidity that you as the first investor would need,” he said.

Elevating Milwaukee

Before The Couture started construction, Barrett dove into the city’s archives. He found that in April 1972, permits were pulled for Milwaukee’s last 40-plus-story tower, now known as the U.S. Bank Center. The Couture team pulled permits this April, 50 years later.

This is why he calls The Couture a once-in-a-generation project.

It also comes at a time when Milwaukee is clawing out of the depths of the COVID-19 pandemic and the ensuing economic freefall of 2020.

Landowski said he feels the city is regaining the momentum it lost from the pandemic. The Couture’s construction is a big part of that.

“I think we’re just starting to attract the attention, hopefully, of more national site selectors, corporate users and national developers,” he said.

There’s evidence of that happening already.

Houston-based Hines is proposing a $140 million apartment tower in the Third Ward. And Brookfield-based Milwaukee Tool targeted downtown Milwaukee as its next location for expansion.

Weirick said companies the BID and others try to lure to Milwaukee are looking for quality-of-life aspects The Couture offers, such as quality housing and public transit.

“On so many levels, it checks the boxes,” Weirick said. “But it’s also, I don’t know how many cities across the country are able to boast of a Milwaukee Tool (expansion), much less boast of a groundbreaking for a tall high-rise skyscraper along their beautiful freshwater coast.”

Barrett admitted there were “probably a lot of points” in the nine years leading up to construction that he could have given up and said The Couture won’t happen. But it was when he got a second invitation letter to HUD, after his first application expired, that the project felt inevitable.

“From my perspective, I never had a doubt,” he said. “It’s kind of like an athlete: I believe the team that I have and the teammates we have, I knew for sure we could win a championship. … It’s a once-in-a-generation (project). We haven’t built one 40 stories and above in 50 years (in Milwaukee). I said, ‘I want to win this championship for this city.’

And that’s how I viewed it.” n

Downtown Milwaukee attracting more luxury multi-family developments

BY ALEX ZANK, staff writer THE COUTURE, at 44 stories and 322 apartments, is only one of several planned luxury multi-family residential towers around downtown Milwaukee.

In fact, there are 876 luxury high-rise housing units either under construction or going through the local approval processes. More are in the works but aren’t actively seeking approvals.

Some may wonder: Can Milwaukee’s downtown apartment market support that many new units?

“Overall, Milwaukee’s multi-family market has just been really impressive throughout the (COVID-19) pandemic,” said Gard Pecor, senior market analyst with CoStar Group Inc. “Vacancies remain low, and we’ve seen demand remaining pretty consistent.”

That’s good news for the plethora of apartment projects in the works in Milwaukee.

Other than The Couture, other luxury high-rises include Ascent, a 25-story, 259-unit mass timber structure under construction at 700 E. Kilbourn Ave. Another is a 32-story, 295-unit apartment tower proposed for 333 N. Water St. in the Historic Third Ward.

Pecor said the vacancy rate for multi-family units across metro Milwaukee is 4.3%, “far and away the lowest in the Midwest. It’s one of the top ten lowest (vacancy) markets across the country.”

There’s also evidence that Milwaukee could use more luxury multi-family units, specifically.

CoStar Group has its own star-rating system to judge properties across markets. Five stars reflects top quality in terms of design, amenities and finishes. Whereas a Class A office space in Milwaukee differs from Class A in Chicago or Indianapolis, five-star properties are similar in every metro area, he said.

While there are a few five-star apartment properties in metro Milwaukee, the only true five-star property downtown is Northwestern Mutual’s 7Seventy7 building.

“In terms of quality, and really compared to some of the other five-star properties we have in the market, it’s on a different level,” Pecor said.

7Seventy7’s rental rate, when considering unit size, is higher than any other rental community in the market, he said. It comes out to $2.97 per square foot; that’s 20% higher than the next property up. Pecor said Ascent will take over at second place when it opens, at $2.66 per square foot. CoStar didn’t have enough information to calculate The Couture’s rate.

7Seventy7’s strong performance has paved the way for others like it downtown. Pecor said the building reached stabilization within two or three quarters and has maintained strong occupancy even throughout the COVID-19 pandemic, at around 95%. Pecor said luxury

apartment properties in some other markets saw an exodus of renters during the pandemic.

7Seventy7’s success gave developers an example to point to when pitching their own projects.

“It really opened the door for some of these newer developments,” Pecor said. “I don’t know if The Couture breaks ground today, if we don’t have 7Seventy7 as an existing sample of luxury development in the city.”

It was indeed part of The Couture developer Barrett Lo Visionary Development’s pitch to prospective investors.

“I have to tip my hat to the guys at Northwestern Mutual with the 7Seventy7 project and their ability to show proof of concept,” said Rick Barrett, founder and chief executive officer of Barrett Lo. “I think us coming behind them, I’m thankful to them, because they’ve been wildly successful, and they’ve been able to fill that building and bring people into downtown Milwaukee.”

These luxury apartments are headline-grabbers. The Ascent has gotten global attention due to its use of mass timber. And the proposed 32-story tower in the Third Ward has the attention of local industry professionals and government officials because it’s being pitched by a national developer. Houston-based Hines is the firm behind the $140 million project.

Even though the Hines project will compete with The Couture for renters, Barrett supported the development. He said it’s a testament to The Couture, 7Seventy7 and other projects that are raising the city’s profile.

“We welcome Hines coming to town,” Barrett said. “I’m very excited about the future of Milwaukee, and I’m excited about the way that Hines has come in and said they want to invest their Houston money in the Milwaukee market.

God bless them.”

Other potential high-rises include the Housing Authority of the City of Milwaukee’s 32-story Convent Hill South. It’s planned for the corner of Knapp and Milwaukee streets and would contain 350 market-rate and affordable units.

There’s also the long-planned 20-story Portfolio apartments on Milwaukee’s Lower East Side. Original plans called for 24 stories and 235 units but shrank to 176. It could get even smaller. A December 2019 filing by project developer Mandel Group Inc. suggested the building could end up being a mid-rise of seven to 12 stories instead. Mandel Group did not respond to a request for a project update.

Another East Side apartment tower project, for a 27-story, 192-unit building at the Goll Mansion site on Prospect Avenue, appears stalled. It secured approvals in 2017 but it hasn’t moved forward and the property was listed for sale last year. n

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Milwaukee-based HellermannTyton manufactures high-performance cable management solutions used for fastening, identifying, protecting, organizing, routing and connecting components in the electrical, automotive and datacom markets.

Supply chains out of whack with record demand, global shortages and increasing prices

BY BRANDON ANDEREGG, staff writer WHILE THE GLOBAL chip shortage is just one facet of ongoing disruptions to supply chains, companies are seeing setbacks regardless of industry.

These disruptions illustrate how a combination of factors are working to pressure global supply chains, from factory shutdowns caused by severe weather storms to port congestion and the rising demand for consumer electronics brought on by the COVID-19 pandemic.

Local supply chain experts and company executives say these disruptions are impacting profit margins, leading companies to make up for increased costs and ultimately affecting the price that customers pay for goods and services.

However, even industry-specific disruptions like the global chip shortage are leading to unexpected outcomes for manufacturers and suppliers in the automotive industry’s supply chains.

Most automotive OEMs were hit hardest by the global chip shortage in the first quarter of 2021. Estimates suggest global automotive manufacturers will have produced 672,000 fewer vehicles in Q1 due to low supply of chips, according to research firm IHS Markit.

Yet, Milwaukee-based HellermannTyton, a global manufacturer and distributor of cable management products for vehicles, saw increased demand during the quarter, said Bruce Laabs, HellermannTyton director of market development in North America.

Although vehicle production volumes were down, HellermannTyton’s tier one customers were using the first quarter to recover low stocking levels as they continued to build harnesses and other 24 / BizTimes Milwaukee JUL 19, 2021

subcomponent assemblies that go directly to automotive OEMs. “It was a strange quarter for us where we were hearing all of this news and trying to somehow prepare for another slowdown or impacted revenue and sales, and we didn’t,” Laabs said. “In fact, we saw record demand in the quarter for our products.”

Before the chip shortage, automotive manufacturers were on pace to recover from last year’s low production volumes caused by the coronavirus pandemic. In fact, the industry was projected to recover to about 16.25 million vehicles or 25% gains over 2020, Laabs said.

Even as those production estimates have dropped to 15 million in June, automotive OEMs are telling HellermannTyton and other manufacturers and suppliers to prepare for record production volumes during the second half of the year.

“They’re all reporting that when the semiconductor shortage is over, they’re going to do whatever they can to make up any of this lost volume,” Laabs said. “We are starting to see OEM forecasts and customer forecasts already recovering even though we’re not even through Q2.”

Despite uncertainty around chip supplies and the ongoing impact on vehicle production, automotive OEMs like Ford Motor Co. are optimistic as high consumer demand and tight supplies have kept pricing strong.

Ford has reported that the semiconductor industry is recovering faster than it expected; the manufacturer also expects its adjusted earnings for the second quarter to be “significantly” better than the $1.9 billion loss it reported in the second quarter of 2020.

“To hear this coming from Ford that Q3 and Q4 will be strong recovery and the semiconductor shortage is starting to wane is good news for us,” Laabs said. “It’s not just Ford saying this; it’s General Motors and Stellantis.”

Reading between the lines of its customers, HellermannTyton believes the automotive industry will see higher demand and recovery, but that doesn’t necessarily mean full recovery, Laabs said.

Still, HellermannTyton is preparing for higher production volumes during the second half of the year and has increased inventory levels to meet anticipated demand, he added.

“What we’re thinking will happen is that lead times will reduce, cost will reduce, but we think it’s going to be a little bit more of a bullwhip effect,” Laabs said. “It’ll improve and then get a little worse until it finally stabilizes at some point.”

Stability in global supply chains may not arrive for months and in some cases years depending on the industry, said Bill Byrkit, a consultant with Byrkit Point Supply Chain Advisors. Several companies are mapping their supply chains and establishing second sources as they develop redundancy and flexibility, but that takes time, he said.

In the meantime, Byrkit expects logistics and transportation disruptions to continue over the next six months as well as inflationary factors depending on the industry. That’s because to meet customer demand, companies have added capacity, brought on extra labor and are paying a premium for transportation.

“People are adding more cost to the supply chain to improve their capabilities and capacity,” Byrkit said. “Positioning for next year, they’re going to look to pass a price increase on to their customers.”

Companies are already passing increased transportation and logistics costs onto their customers, and Milwaukee-based A.O. Smith is just one example. In 2021 alone, A.O. Smith expects to increase prices on select residential and commercial water heaters by as much as 36%.

The company announced four different price increases this year citing rising costs in transportation, materials and steel, according to a U.S. Securities and Exchange Commission filing.

However, Byrkit says that true commodities and raw materials will find their equilibrium and lumber is just one example. Lumber, which peaked in early May at $1,650.50 per thousand board feet, was down to $737.40 by the end of June.

Supply and demand will take time to rebalance, given that supply chain disruptions as well as raw material and part shortages are expected to continue into 2022 and 2023, said Marko Bastl, director of the Center for Supply Chain Management at Marquette University.

“I think we are dealing with transitory inflation effect,” Bastl said. “Although this is pushing higher commodity prices, I believe on its own, it is very unlikely to be enough to introduce a substantial longer-term inflation.” n

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The Wisconsin State Fair is set for Aug. 5-15 at the fairgrounds in West Allis.

Entertainment industry rebound fueled by high demand

BY MAREDITHE MEYER, staff writer WITH NEARLY 50% of Wisconsinites fully vaccinated against COVID-19 and local restrictions lifted, most consumers in recent months have gotten at least a taste of what life was like before the pandemic. Whether it’s tailgating at a Brewers game at American Family Field or sitting indoors at a favorite local restaurant, people are going out and gathering again – and they’re spending money on entertainment.

According to data from the U.S. Bureau of Economic Analysis, consumers since March have been spending more per month than they were when the pandemic hit. Monthly consumer spending dipped slightly in May but spending on services continued to climb, by $74.3 billion. The increase was led by spending on recreation services, food services and accommodations.

“The issue with the economy is not demand,” said Jim McGibany, chair of the department of economics at Marquette University. “There’s enough demand out there, especially from the consumer point of view.”

Plus, the personal savings rate remains higher than pre-pandemic levels.

“That means consumers have the funds available still to spend,” said McGibany.

The end of stimulus checks from the federal government could be one cause for spending to slow this year, but even without that supplemental source of income, “it still looks like consumers are 26 / BizTimes Milwaukee JUL 19, 2021

strong enough to keep pushing the economy forward,” he said.

For many industries, supply chain disruptions stand in the way of fully capitalizing on the sudden increase in business activity. For the entertainment and hospitality sectors, the ongoing labor shortage is the greatest barrier.

Wisconsin State Fair is just a couple weeks away from its return as one of the region’s first large-scale festival events since the pandemic. State Fair Park alone needs at least 1,800 seasonal workers to produce the 11-day fair, not to mention the additional labor needed by vendors and operators. As of late June, the organization had not yet reached its hiring target.

“We’re screaming from the rooftops that we can’t do this without the help and without people wanting to work,” said Kathleen O’Leary, chief executive officer at Wisconsin State Fair Park.

As an incentive, State Fair has increased its minimum hourly wage to $10. Earlier this month, it hosted the Summer Fair Job Fest with Summerfest, which is gearing up for a massive undertaking of its own. The annual music festival will take place over three consecutive weekends in September this year, compared to the traditional 11-day format in late June and early July.

State Fair organizers aren’t banking on this year’s attendance to reach the 1 million mark (as it had for seven consecutive years prior to 2020),

said O’Leary. Still, the event remains an important source of income for its 600-plus food, beverage and commercial vendors and an economic impact generator to southeastern Wisconsin – especially after a devastating year.

Downtown Milwaukee’s bars and restaurants have already felt the ripple effect of local entertainment in recovery. The Milwaukee Bucks’ playoff run to the NBA Finals brought tens of thousands of fans to watch games from the seats of Fiserv Forum or outside on giant TV screens set up on the arena’s public plaza. The scene of the Deer District packed with more than 20,000 screaming fans made national headlines as the spotlight shone bright on Milwaukee.

The surge in Deer District foot traffic has been a boon for businesses like Drink Wisconsinbly Pub, one of the three bar-restaurants currently open along the Bucks’ entertainment block.

June was the pub’s best month since opening in spring 2019, said Ryan Walther, co-owner of Wisconsinbly Holdings.

Many downtown establishments rely on traffic driven by entertainment at Fiserv Forum and other venues. In the wake of the NBA playoffs, it’s important to keep the momentum going with the return of concerts, shows and theater productions, said Peggy Williams-Smith, president and chief executive officer at VISIT Milwaukee.

“We need those shows to be taking place in order for our restaurants and bars to be able to maintain the same levels of business they’re seeing now,” she said. “They’re vitally important to the tourism ecosystem. People come here from all over the state as well as Chicago to see shows here because we have such amazing venues.”

Sixteen months after the pandemic’s onset, some segments of the entertainment industry – including movie theaters, touring musicians, and the performing arts – are still gearing up.

Nationwide, 85% of movie theaters are back up and running again. Milwaukee-based Marcus Theatres is still working to reopen the last few of its 89 theater locations in 17 states.

After months of studio production lags, the movie industry is headed for a huge surge in supply: Two to three new films are set to be released almost every week through the rest of the year.

Rolando Rodriguez, chief executive officer and president at Marcus Theatres, said the chain is poised to capture demand for both new film content and an entertainment experience that consumers have been deprived of while stuck at home during the pandemic.

“We’re human beings, we like to socialize, and we want to be around people,” said Rodriguez.

“There’s no better way than to enjoy a movie, with the emotions that are drawn from a movie – the laughter, the tears, the aha moments … sharing that artistic experience.” n

CEO Q&A

SPONSORED CONTENT

HOLLY BRENNER SVP of Strategic Development and Marketing, C.D. Smith Construction, Inc. BIZTIMES: Why do you think C.D. Smith is an innovative industry leader?

HOLLY BRENNER: Being on the leading edge of sustainable construction is very exciting. C.D. Smith is actively engaged in meaningful change that will positively impact the future of sustainable construction. We are currently working on two mass timber projects: Ascent in Milwaukee, Wisc, which will be the world’s tallest timber tower, and Fastenal’s Corporate Headquarters in Winona, Minn. In addition to the appealing aesthetics,mass timber construction has a negative carbon imprint and, instead of emitting carbons, it will store carbons. An 18-story mass timber building has a negative carbon imprint equal to taking 2,350 cars off the road per year!

BT: What sets C.D. Smith apart from others in the industry?

HB: When I joined C.D. Smith, it was easy to see that the team was hardworking and committed to getting the job done and done right. We care deeply about our customers, and we are extremely passionate about building.

I’ve been to countless job sites, and every visit, there is an undeniable sense of pride for their work that really stands out. I especially appreciate the innovative thinking that happens throughout our organization. Employees are encouraged to take ownership and contribute ideas. It is common to have team members coming up with creative solutions in real-time, sharing suggestions for ways to improve safety on a job, increase efficiencies or overcome challenges.

BT: What lessons have you learned so far from COVID-19?

HB: Our culture is healthy, and we live our core values of getting the job done right, being adaptable and building strong relationships. COVID offered great confirmation of our commitment to adaptability. In the face of uncertainty, our team rallied. We pulled together even more for our customers, partners and each other; adapting to get the job done right, despite the changing environment.

Since construction was deemed essential, our crews continued to work at job sites. Safety policies were constantly changing as information about the virus transmission became available. Still, our teams in the office and field kept evolving and adapting to ensure everyone stayed safe and healthy and that work proceeded with minimal disruption.

BT: How does C.D. Smith value its employees?

HB: As a fourth-generation, family-owned business, C.D. Smith truly cares about its employees and treats them like family. I am grateful that our company embraces our employees, encourages personal and professional development, and supports work/life balance. One of the things I appreciate most about C. D. Smith is the opportunity for employees to grow within the

Holly Brenner

company. Personally, I find it very rewarding to help team members achieve their goals and reach their potential. I believe in leading from where you are and that the best ideas come from the people doing the work. The average tenure within our company is impressive. We have numerous employees who have spent their careers with C.D. Smith, which I see as a testament to the strong culture and family values. By demonstrating adaptability and an ability to build strong relationships, many are leaders within our company today.

Fond du Lac | La Crosse | Madison | Milwaukee (920) 924-2900 • cdsmith.com

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Health leaders continue to encourage COVID-19 vaccinations as distribution has slowed in the summer months.

After extraordinary year, a sense of normalcy returning to health care industry WHEN IT COMES TO public health, the outlook for the second half of 2021 looks markedly better than this time a year ago.

While the Delta variant of COVID-19 spreading in the U.S. presents a “variant of concern,” according to the U.S. Centers for Disease Control and Prevention, transmission rates locally are trending in the right direction. As of early July, COVID-19 cases in Milwaukee County were at the lowest level since the beginning of the pandemic, with the rate of positive COVID-19 cases hovering around 1% in the city of Milwaukee.

In late June, Milwaukee’s disease burden rate dropped to the “low transmission” category for the first time on record, which city health commissioner Kirsten Johnson called a “huge milestone” for the city. When the rate rose slightly to the “moderate transmission” level in early July, Johnson said the community expects those types of ebbs and flows moving forward.

“We have learned over the past 16 months to anticipate fluctuations in disease burden and we’ll continue to monitor our data and metrics closely, but unless we see a prolonged increase in cases, we will not issue health orders,” Johnson said.

However, COVID-19 vaccination distribution – for many seen as key to emerging from the pandemic – has slowed after a massive push in the first half of the year to get the vaccine to those eager to receive it. The country fell just short of president Joe Biden’s goal of getting 70% of all adults 28 / BizTimes Milwaukee JUL 19, 2021

BY LAUREN ANDERSON, staff writer

vaccinated with at least one shot by the Fourth of July, at 67%.

Wisconsin remains in the middle of the pack nationally for its vaccination rate, with 50% of the population fully vaccinated and Milwaukee County slightly lagging, at 48%.

While health officials continue to push to reach the 70-80% vaccination target, Jeff Bahr, chief medical officer of Advocate Aurora Health, said it’s likely aspirational at this point.

However, not reaching that goal doesn’t necessarily mean the region is vulnerable to the same surge in hospitalizations and serious COVID cases it saw last year.

“Are we at risk for the likes of 2020 again?

No. I think if we’re diligent about protecting the most susceptible among us, we will avoid the high degree of hospitalization and death that we saw,” said Bahr.

As public health workers work to reach the vaccine hesitant with a first dose, it’s still to be determined how frequently booster doses of the vaccine will be needed moving forward.

“One theory is that COVID is endemic to us, meaning we’re going to be living with COVID, not living without it. So, will it be like the common cold or will it be more like influenza, where we’re contending with it on a fairly regular basis and we need to procure resources for those most susceptible? I suspect the truth is somewhere in that zone,” Bahr said.

For health systems that have been on the frontlines of the COVID-19 response, the drop in COVID cases has allowed for some return to normalcy in the first half of the year. At Milwaukee- and Downers Grove, Illinois-based Advocate Aurora Health, for example, its Wisconsin facilities reported 11 hospitalized COVID-19 patients as of July 2, compared to its peak in mid-November 2020 of over 500 hospitalized COVID patients.

At area health systems, patient volumes associated with routine medical visits that were put on pause in the first few months of the pandemic, along with emergency and urgent care, have largely returned to pre-COVID levels.

With current trends, that rebound is anticipated to continue for the remainder of the year, with patient volumes likely increasing with the expected rise in non-COVID-related respiratory illnesses that were kept at bay during the pandemic due to masking, said Scott Hawig, chief financial officer of Froedtert Health.

“If I use actual data to forecast ahead, versus budget, there’s really nothing we see in this volume that would suggest it would change,” he said. “Our business is always somewhat subject to seasonality, so during school seasons or end-of-year because of deductible level, we generally see changes in our volume year in and year out, based on time of year.

Based on this data, there’s really nothing to suggest we shouldn’t return to pre-COVID levels and our normal seasonality.”

Hawig noted that cancer screenings, such as mammograms and colonoscopies, are the exception, with those volumes still down from normal.

The question of when patients will return for those delayed services is a “wild card” that’s difficult to forecast, Hawig said.

The widespread adoption of telehealth services during the pandemic is also expected to influence the way patients seek care moving forward, health care leaders say.

While systems had little choice but to make the switch to virtual visits last year, Hawig said a Froedtert analysis indicates 20% of primary care visits could be done virtually moving forward, which opens up more flexibility for patients.

Bahr said preferences for in-person versus virtual appointments vary across segments of Advocate Aurora’s patient population, but for many it’s not a question of either/or, but of which modality makes the most sense depending on their circumstances.

“I think what we’re going to see in the future is a blended experience,” he said. “So, you as an individual will likely have both virtual services and in-person services, depending on what you have. If you are seeking advice for something rather simple or maybe a behavioral health follow-up, if virtual modalities support us conducting those services, I see us moving in that direction boldly.” n

CEO Q&A

SPONSORED CONTENT

JAMES PHELPS President, JCP Construction BIZTIMES: What sets JCP Construction apart from the competition?

JAMES PHELPS: It is important to know we are committed to delivering quality projects on time and within budget. Many contractors say this, but it is our brand promise. As one of the younger companies in the Milwaukee construction industry, we take this promise seriously. Clients benefit from direct contact with the ownership of JCP Construction. Clifton, Jalin, and I are hands-on ensuring construction quality, customer satisfaction, and efficient decision making. One of the areas where our team excels is in the pre-construction phase. Our team is nimble when it comes to providing preliminary construction budgets. This is a tremendous help for owners who want to validate if an idea or project is feasible before additional project costs are incurred. However, it is truly our people that set us apart. We have a strong, diverse, veteran workforce. From our skilled tradesmen in the field to the leadership in the office, each team member is personally invested in the success of a project and meeting our delivery commitments to our clients.

BT: What makes JCP an asset to developers?

JP: The JCP promise of delivering every project on time and within budget is important to development firms of every size. Our team excels at communication which is appreciated by development partners and important for keeping projects on track. Direct access to the JCP ownership team provides accountability and gives developers confidence. They benefit from our pre construction expertise by receiving multiple options for consideration when budget and schedule decisions need to be made.

Developers who work with JCP know they have selected a collaborative project partner.

BT: How does JCP successfully partner with architects?

JP: JCP has had the pleasure of partnering with some of the area’s top smallto-mid-size architectural firms. As smaller companies paving the way in the Milwaukee market, our missions align, and we are all committed to a top level of performance. For architects, it is important to know JCP maintains a high level of communication throughout the pre construction process and is sensitive to the original design intent of a project as we work through any challenges together. We believe in working collaboratively with our architectural partners to make the best decisions for the client and the overall design integrity of the project.

BT: What projects has JCP worked on that people might not be aware of?

JP: JCP Construction has been successfully contributing to the growth and development of the Greater Milwaukee area for over 12 years. We are proud to have worked on some of the most recognizable projects and with some of the area’s top organizations. Past satisfied clients include Milwaukee World

James Phelps

Festival, Milwaukee County Zoo, General Mitchell International Airport, and the War Memorial. We were an integral part of the team on the Fiserv Forum, provided and installed all the interior carpentry for Northwestern Mutual’ s new tower downtown, and served as the construction manager for Bader Philanthropies Headquarters. We have a master service agreement with both Advocate Aurora and Froedtert Healthcare.

1849 N Doctor M.L.K. Jr Dr • Milwaukee, WI 53212 (414) 372-7300 • www.jcp-construction.com

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A familiar image emerges in Wisconsin labor market

BY ARTHUR THOMAS, staff writer ONE YEAR has made a big difference in Wisconsin’s labor market. The unemployment rate?

Jumped from 3.2% in March 2020 to 14.8% in April and was still at 10.4% in May. In July 2020, the unemployment rate was 7.2%, and the total labor force had shrunk by 1.5% compared to the previous year. While things had improved from the spring, the jobs picture was much different than where it was prior to the pandemic.

Fast forward to now and the image coming from the job market shares a lot of similarities with its pre-pandemic counterpart. The state unemployment rate for May, the most recent data, was 3.9% compared to 3.3% in May 2019. Labor force participation has been rising in recent months, reaching 66.1% in May compared to 66.8% in May 2019. The

total labor force is still about 8,000 people smaller than it was in 2019.

There is still work to be done on the state’s employment front. Private sector payrolls are down about 100,000 compared to pre-pandemic, although that is a dramatic improvement from being down 300,000 in May 2020.

More than half of the remaining drop comes from the leisure and hospitality sector, where accommodation and food services employment was down 38,000 from May 2019, a 16% decrease, and arts, entertainment and recreation employment was down 12,000 or 28%.

Employment in durable goods manufacturing is down more than 16,000, or 5.6%, from May 2019 while nondurable goods employment is actually up more than 5,000, or almost 2.8%.

With the labor market returning to pre-pandemic conditions, many employers are once again bemoaning the difficulties they are having filling open positions. Many pointed to the additional Festerling $300 in weekly unemployment benefits added during the COVID-19 pandemic as a factor in keeping workers on the sidelines. Lawmakers in Wisconsin voted to end the enhanced benefit earlier this year, but Gov. Tony Evers vetoed the measure, arguing there was a lack of evidence suggesting eliminating the benefit would bring people into the workforce.

“Eliminating this lifeline for many Wisconsinites will cause continued economic hardships for those impacted the most by the pandemic and create additional hurdles for individuals to return to family-sustaining jobs,” Evers said in his veto message.

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Ryan Festerling, president of Brookfield-based staffing firm QPS Employment Group, said it is likely the benefit is keeping some people on the sidelines but added that his firm has not seen a dramatic increase in applicants in states that have ended the benefit.

“I would love to tell you that it was this big light switch that all of the sudden candidates came out of the woodwork. It’s just not the case,” he said.

In a survey of its membership released in June, Wisconsin Manufacturers & Commerce found 85% of respondents favored ending the enhanced benefit. The survey also found 86% were having difficulty hiring, but among that group, 35% blamed the enhanced benefits while 30% pointed to a lack of qualified applicants and 26% cited an overall lack of people.

The challenges in hiring do not appear to be dissipating any time soon. ManpowerGroup found a net employment outlook, which subtracts the percentage of firms planning to cut staff from the percentage planning to add, of 40% heading into the third quarter for metro Milwaukee. It was the highest reading to date for the region and among the 15 best outlooks in the country. The previous high was 33% heading into the third quarters in 2018 and 2019.

The competitive labor market means employers will need to work hard to fulfill those visions of increased hiring. Festerling pointed to several strategies businesses can consider.

For starters, he said companies should not expect that increasing pay rates alone will bring in new employees.

“We definitely see that pay rates help, but I don’t think even some of our best-paying employers are sitting in the catbird seat saying ‘we’re good.’ They have openings as well,” Festerling said, noting some businesses move to implement a raise only to find the market has continued upward while they were making the change. “We have to make sure we don’t look at it as the thing to fix it, cause it’s just not.”

Festerling said companies should look within their own organization, identify what is working and expand and emulate those actions. That could mean studying new hire turnover at a very detailed level or looking at the impact remote work or scheduling has on company culture.

“A lot of this is going to be about supervisors engaging, a lot of it is going to be doing things that are a little bit unconventional,” Festerling said.

“If the people side of your equation is actually causing you to not hit your numbers … what if we started from the labor standpoint and said what is the best scheduling that we can do for our people?” he added. n

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Y & I TY R S II T E RS V E I V D I D

BUSINESS CARES:

DIVERSITY & INCLUSION

Welcome to BizTimes Media’s Business Cares series, where we bring to you a focus on Diversity & Inclusion. Diverse workplaces and work teams are more innovative, creative and better for the bottom line. We thank the 45 companies and organizations listed below for their sponsorship of this important section. Their investment reflects the level of engagement and intention these organizations are placing in diversity and inclusion. Their support also funds a D&I awareness campaign for the next month via print, digital and e-newsletter platforms. We hope you’ll support them as they join all of us in working toward a more diverse and inclusive Milwaukee and southeastern Wisconsin region.

DAN MEYER, owner, publisher, BizTimes Media KATE MEYER, owner, community engagement, BizTimes Media

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YOUR TRUSTED BUILDING PARTNER A diverse workforce stimulates innovation, creates opportunities, and builds the local economy.

As one of Wisconsin’s largest construction firms, we believe it is our responsibility to proactively grow our industry and to create meaningful employment opportunities for the people who live here.

We support diversity, equity and inclusion; join us as we strive for continuous improvement and helping to inspire change.

MILWAUKEE // MADISON // CGSCHMIDT.COM

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1 TARIK

Director of digital strategy, 88Nine Radio Milwaukee

“When it comes to attracting and retaining Black talent, Milwaukee needs to be serious and intentional. And I haven’t observed any real serious efforts. Companies shouldn’t stop at hiring but include career development and advancement.

More importantly, companies must stay engaged with the Black community and understand the culture if they want to retain the talent.”

ELLISON

2 MARQUAYLA

Owner, Ellastic Designs; president, Social X MKE

1 3

“We need to tell our story and get ahead of the narratives placed on us nationally. We also need to highlight and put more Black and brown people in leadership positions and have their interests and culture reflected in local venues and activities in Milwaukee. Diverse talent needs to be able to see themselves working, living and playing in Milwaukee long-term. We need to adjust the experience, so everyone knows that they belong here.”

3 DAVID LEE

Chief executive officer, ImagineMKE

“Invest 2% of the Milwaukee ARPA funds in a program that employs artists and creatives to work with residents on critical issues in their neighborhoods. This would flood the region with social solutions and creative innovation and establish a vibrant, diverse cultural ecosystem that will drive future investment and growth.”

2 5

4 FRANCESCA MAYCA WEGNER

Executive director, Hispanic Professionals of Greater Milwaukee

“I would love to see our diverse communities collaborate to tell our Milwaukee story of unity and richness of culture. And, as businesses work toward inclusivity, the creation of clear paths for growth and environments where employees feel safe bringing their authentic selves to work are crucial.”

5 NELSON SOLER

President and chief solutions officer, Multicultural Entrepreneurial Institute Inc.; president and CEO, Latino Chamber of Commerce of Southeastern Wisconsin

4 34 / BizTimes Milwaukee JUL 19, 2021

“Corporate and public sector leadership must work strategically in ensuring that socioeconomic disparities in our region are systematically addressed. Our diversity is our strength, yet it is only featured to showcase our inequities. Corporate boards, commissions and executive positions shall be representative of our diverse talent. That would be a start.” n

THOUGHT LEADERSHIP: DIVERSITY & INCLUSION

Town Bank was built to serve Wisconsin.

Since our inception in 1998, we’ve been focused on serving the unique communities we’re a part of by offering exceptional banking solutions for our local businesses and our neighbors and friends. Another focus of ours has been, and always will be, doing our part to improve our communities. We know it’s our responsibility to invest in our local economy; support our local businesses, organizations, and nonprofits; and encourage equity and inclusion within our communities. That’s what keeps Wisconsin strong.

loans made to businesses. Through the university relationship, we hire Marquette University students as interns at the student union bank location and other downtown Milwaukee branches.

This is just one example of how we leverage our partnerships to make a real impact for our community. As Wisconsin’s Bank for Business®, we’re proud to support the leaders and companies that continue to propel this region forward through urban growth and support for diverse communities.

We’re committed to giving back and doing our part, and one way we do that is through building strong partnerships with people and organizations across our home state who are working towards that same mission. In 2018, we announced our partnership with Marquette University. A big piece of that relationship is our leadership support of the Ignatian Promise Scholarship Initiative. This program provides scholarships to low-income, minority, or first generation students.

We also established a $1 million revolving loan fund for small businesses in the area surrounding Marquette University. Under the supervision of our commercial bankers, students learn how to underwrite, administer, and manage

Jay Mack, President & CEO jmack@townbank.us | 262-369-8800 | townbank.us

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Last year, MICHAEL EMEM launched Emem Group, a Milwaukee-based firm that designs and builds single-family homes and performs work on commercial projects primarily as owner’s representative. In the past year, Emem Group designed and built more than $4 million in new market-rate homes and managed over $25 million in commercial developments as owner’s rep. Emem Group, which is co-developer of the planned MLK Library redevelopment, now plans to expand the commercial development side of the business after hiring Deshea Agee, former executive director of the Historic King Drive Business Improvement District. BizTimes reporter Brandon Anderegg recently caught up with Emem about those plans.

What’s the inspiration behind creating Emem Group?

“In middle school, I knew I wanted to be a real estate developer because of the community (Washington Park) that I grew up in. It was a poor community that lacked investment in the real estate and housing stock and in the commercial corridors around me. Every day I looked around and I knew that those communities that I grew up in had a lot of untapped potential. They just needed the resources, needed someone with the passion, will and grit to create new spaces and renovate existing spaces. I felt like as a child and I still feel today that I’ve been called to do this work.”

How will Agee’s experience boost Emem Group’s commercial development side of the business?

“Deshea is a well-known, well-respected business professional in the Milwaukee community that brings tremendous wealth of knowledge, personal connections and relationships that I strongly believe will be an asset to Emem Group. I know his drive on a personal level. I believe his internal motivation complements mine and the two of us together is really like adding 10 other people to the organization because of all that he brings across the board.”

How might the homes you’re designing and building in the Josey Heights and Walnut Circle subdivisions create momentum for new-home construction in the surrounding neighborhoods?

Michael Emem President Emem Group Employees: 4 emem-group.com 36 / BizTimes Milwaukee JUL 19, 2021

“I believe Josey Heights and Walnut Circle will have long-term impacts in the surrounding communities by property appreciation and diversifying the community, not just in terms of racial diversity, but diversity of class as well. Both of those subdivisions challenge old stereotypes that once said it’s not desirable to live in those communities or that certain people who can afford to live elsewhere would never choose to live in those communities. We’ve proven that stereotype is a myth and I’m hopeful that once these two subdivisions are fully built, our efforts will evolve to rehabbing existing housing stock around those subdivisions.”

Is there a particular community that has a lot of potential but is overlooked?

“I have to say unequivocally the north side of Milwaukee and areas where African Americans reside. Those areas have been overlooked for generations, and I don’t think one developer can rebuild all that needs to be rebuilt in the Black community, but I believe it is necessary that we attempt to do so.” n

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Stritch’s master’s and doctoral programs focus on leadership, learning and service through curriculums that challenge students to examine their core beliefs and personal perspectives of the world and then to step outside themselves to examine complex societal issues. The Master’s in Management and Leadership program prepares students to help organizations achieve their goals and objectives.

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So your company denounced racism.

Now what?

By Lauren Anderson, staff writer WHEN LARGE CORPORATIONS issued public statements last summer condemning racism and committing themselves to advancing racial justice in response to George Floyd’s murder, the PR strategy drew mixed responses.

Some consumers appreciated the affirmation of those values from their favorite brands; others questioned whether corporate pledges were authentic or politically expedient. It’s one thing to post a statement or send a tweet; it’s an entirely other undertaking to examine biases and cultivate a culture of inclusion.

Locally, many businesses – including some of Milwaukee’s largest employers – joined the chorus of companies making public commitments to fight the region’s deep-seated racial problems.

Following through on those promises has looked different for each company. In interviews with BizTimes, a half-dozen employers shared their experience of taking steps to chip away at what some consider Milwaukee’s intractable racial inequities. Many said that process has looked like opening up discussions around race in the workplace, giving their diversity and inclusion teams more room to influence company strategy, investing in employee affinity groups and increasing accountability measures for their companies to meet DEI targets.

Earlier this year, Bobby Griffin joined Milwaukee-based Rockwell Automation in the newly created position of chief diversity, equity and inclusion officer. When the national discussions last summer around race entered the corporate sphere, many businesses launched new initiatives from scratch; that wasn’t the case for Rockwell, which was at that point more than a decade into a concerted effort to build an inclusive culture, Griffin said.

“This wasn’t a new space for us,” Griffin said. “So, we didn’t have to scramble and pull something together and think about where to go from here?”

But the national crisis did highlight how slowly racial wealth and opportunity gaps are narrowing – and in some cases are actually widening. So, Rockwell leaders began asking how they could grow the scope and scale of the DEI work that was already underway.

Griffin’s addition to the executive leadership is part of that strategy. Rockwell is among a 38 / BizTimes Milwaukee JUL 19, 2021

growing number of companies that have chosen in the past year to embed a DEI leader in the C-suite; advocates say it allows those values to be championed at the very top of the organization.

“It should be leadership-owned,” Griffin said, of DEI. “And having someone at the table to help leaders understand how exactly to integrate that is important.”

Over the past year, Rockwell has set targets related to diverse representation at all levels of the organization, and those goals are tied to executive compensation. It turned to its employee resource groups to help develop its objectives.

(The company in 2019 signed the Metropolitan Milwaukee Association of Commerce's Region of Choice pledge to increase African-American and Hispanic representation among its employees and managers over the next five years.)

For many employers, the national reckoning around race revealed blind spots within their organizations.

YWCA Southeast Wisconsin has seen a surge in demand for its workplace consulting and workshops over the past year, with requests coming from corporations, higher education institutions, health care organizations and individuals.

“It’s exploded. It's absolutely exploded. ... I can’t even quantify the pace of requests for support last summer,” said chief executive officer Ginny Finn.

The spike in demand prompted YWCA to add more offerings of its signature class, “Unlearning Racism: Tools for Action,” and add a new class called “Conversations on Race.”

Beyond offering classes, Finn noted the majority of YWCA’s work is done behind-the-scenes, coaching and consulting employers on difficult issues related to their culture and biases.

Trainings, consultations and internal conversations are good, but, Finn said, it’s important for employers to put into place accountability measures that ensure they are making progress toward what they have committed to publicly.

“I don't think anyone should be ashamed that progress takes time,” Finn said. “But if you’re going to be transparent enough to make a statement, you should be transparent enough to make your progress reports available to the

public. Otherwise, that’s just grandstanding.”

Often, employers with good intentions discover the process of developing a diverse and inclusive company culture is not linear.

“This is really about change; and the same change they would bring to any business process – the thoughtfulness, the consistency, the willingness to check their assumptions and see how they’re doing – that’s really important,” Finn said.

For Sussex-based Quad/Graphics, last summer prompted a period of self-reflection among its leaders. Joel Quadracci, chairman, president and chief executive officer of Quad, said he came to realize the company’s incremental efforts to boost diversity and inclusion wouldn’t be enough if it didn’t take a more holistic approach.

“I’ve been frustrated over time at our lack of success at attracting and retaining people from the Black community in Milwaukee,” he said.

“When you do self-assessment, you say ‘Why is that?’ And it’s, well, first of all, the commute is really hard, coming out to these plants. And secondly, you walk into these (plants), it’s a million square feet, and everyone’s white. It's not inviting. It's scary.”

The first issue – a lack of reliable public transportation service between Milwaukee and Waukesha counties – is a longstanding challenge for the company. But the second issue – creating a welcoming environment for people of color – has become an area of focus this past year, Quadracci said.

That has looked like the company investing in diverse business resource groups and Quadracci taking an active role in communicating with them. He’s aiming for honesty, he said.

“That was one of my initial asks: ‘this is not just a feel-good group,’” he said. “It also has to advise me on not just policy but also approach and everything around it.’”

Particularly for professionals of older generations, the trend of employers hosting conversations in response to the racial unrest of 2020 has flown in the face of cultural mores that discourage discussions of race, religion and politics in the workplace.

“These are the types of conversations that, in the past in most organizations, weren’t encouraged,” said Griffin. “… But the line between things that are happening both inside and outside the organization has, for any company, blurred these days. Organizations have come to the realization that – to the extent that these issues impact employees, employees bring them to work – these conversations need to be had,

but people don’t know how to have them.”

Advocate Aurora Health last year began hosting “Real Talk” conversations – virtual, small-group meetings for employees to discuss how they were coping with Floyd’s murder, the protests and the global pandemic. Two of the Milwaukee- and Downers Grove, Illinois-based health system’s markets – Kenosha and Wauwatosa – saw significant civil unrest in their communities last summer.

Over 2,000 Advocate Aurora employees participated in the conversation series.

“It was facilitated conversations, a place where people could share their feelings, from all sides of the spectrum,” said Cristy Garcia-Thomas, chief external affairs officer. “It was a place where trust and listening and seeking first to understand was front and center. At the end of the day, people bring their whole self to work.

They’re bringing the issues of what’s happening in our society and our world, and they needed a place to have a conversation about that.”

Advocate Aurora also launched inclusion councils, representing about 500 employees, who serve as the “eyes and ears” of their local communities and ultimately help drive the system’s diversity, equity and inclusion strategy in those markets, Garcia-Thomas said. The cochairs of those local councils sit on the system’s inclusion council, which is co-led by CEO Jim Skogsbergh and Garcia-Thomas.

Quad has tried to shift the tenor of discussions about inclusion in the workplace, from conversations that leave white people feeling defensive to instead focusing on how they can be allies to Black coworkers, Quadracci said.

“That has been really well received because it does take that whole emotional aspect out of it,” he said.

While there are strategies to mitigate discomfort, DEI leaders say imperfect and sometimes awkward conversations should be embraced if they bring to light issues that have long been experienced by many in the work-

Griffin

Garcia-Thomas

Finn

Quadracci

force but until recently have not been addressed publicly.

“The good thing about the statements and other public conversation is that we – and we, in particular, being white people – are getting more comfortable with being uncomfortable,” Finn said. n

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IA SPEC

RS D IV E

O R T: L REP ION CLUS

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As it works to boost diversity, Milwaukee’s creative industry focuses on young talent

By Lauren Anderson, staff writer ON A RECENT AFTERNOON at Hanson Dodge’s Third Ward office, a leader with Johnsonville, LLC received some constructive feedback from a group of Milwaukee high school students.

The students – a group representing seven local schools – presented marketing strategies to Jamie Schmelzer, senior director of strategic growth for the Sheboygan Falls-based sausage maker, focused on making the company more relevant to a younger, more diverse customer base.

“Your target audience really seems like it’s for middle-aged dads, and not for everyone,” said Kyla Chester-Hopkins, a rising high school junior.

Among her team’s ideas for changing those demographics: running a series of satirical ads, leaning into the company’s family-friendly brand, sponsoring back-to-school drives, donating products to food banks and hosting sweepstakes on college campuses.

“Now you’re getting your product out there, feeding people in need, … and showing your values are in touch with a lot of other people’s values,” Chester-Hopkins said.

For the 13 students, the presentations were the culmination of a two-week paid internship at the Milwaukee ad agency, a program designed to expose them to the field’s career options.

The program traces back to a 2019 study highlighting racial disparities in Milwaukee’s largely white creative workforce. A lack of representation among people of color in arts, design, entertainment, sports and media professions exists in metros across the country, but Milwaukee’s gap is particularly stark. The report ranked it 40th out of the 50 largest metros for creative sector racial equity.

For Milwaukee’s creative sector to mirror the wider metro workforce, 1,600 people of color would need to be hired. A group of industry representatives, including some of the city’s largest agencies, have set out to recruit diverse and minority creative talent to reach that goal by the end of the decade.

Spearheaded by Greater Together – a nonprofit group founded by retired advertising executive Ken Hanson that promotes racial and economic equity in metro Milwaukee’s creative 40 / BizTimes Milwaukee JUL 19, 2021

industries – the Greater Equity 2030 initiative is now a little under two years underway.

The effort has gained some traction and a growing list of industry partners, though disruptions from the COVID-19 pandemic slowed some of its early momentum.

“There’s a tremendous appetite within the creative economy to do this,” Hanson said.

Hanson Dodge, which was co-founded by Ken Hanson, was among the initial partners to sign on to the Greater Equity 2030 pledge in 2019. The internship this summer – offered in partnership with Milwaukee Institute of Art & Design’s pre-college summer program – was a tangible step toward that commitment.

As employers reckon with long-standing inequities in their industries and work to right those wrongs as a moral imperative, a strong business case can also be made for the creative industry’s push to diversify. Hanson said agencies are increasingly getting pressure from national clients – as well as from their own employees – to create diverse workplaces.

“If you’re a national client and you have diversity as an objective, the businesses you want to do business with have to also,” Hanson said.

“It’s not uncommon for businesses to basically say, ‘I need a certain amount of diversity on my team’ and … in Milwaukee, that’s been quite hard to deliver.”

Take the high school students’ client Johnsonville, for example. The company’s primary customer base is between the ages of 35-64.

Reaching the next generation of consumers – an increasingly diverse group – will require fresh marketing strategies, said Schmelzer.

“Here’s this giant group of people that are younger and much more diverse than our consumer was 20 years ago. Our core consumers in 20 years aren’t going to look like our core consumers today or 20 years ago. So, help,” he said, describing the company’s assignment for the high school interns at Hanson-Dodge.

For a company like Johnsonville, it is unlikely to have received the kind of candid critique it did from a group of novice marketing strategists, many of whom identify as BIPOC (Black, Indigenous, people of color).

“The level of honesty that they brought to their perspective on our business and their feedback on some of the stuff we’re doing today was probably more than you would get from a traditional agency relationship; it’s just a fresh set of eyes,” Schmelzer said.

Experiences like the Hanson Dodge internship could soon be more widely available in the city when The BrandLab, a Minneapolis-based nonprofit marketing organization, enters the Milwaukee market.

The organization, which works to create internship experiences for underrepresented high school students in marketing fields, got its start in the Twin Cities over 10 years ago, and more recently expanded to Kansas City. Milwaukee will be its third market. A $1 million investment from Sussex-based Quad/Graphics Inc. – which has previous experience working with The BrandLab through its Minneapolis-based agency Periscope – helped attract the organization here.

When he heard about The BrandLab’s expansion plans, Hanson recognized a strong overlap in the missions of the organization and his own nonprofit.

“Their mission is almost identical to Greater Together,” he said, adding that The BrandLab also brings with it the advantages of a proven model and a level of financial backing that would take Greater Together several more years to achieve.

Maggie McCracken, chief executive officer of The BrandLab, said the program works to address one of the biggest barriers to diverse talent pursuing creative careers: a lack of exposure.

“They’re often just not exposed to the industry, so we start with exposure, creating awareness of the creative industry as a career path,” McCracken said.

For Chester-Hopkins, the opportunity to see the innerworkings of an ad agency, including the diversity of career paths represented in it, was special. Her school, Pathways High, uses a project-based learning approach, but the arts curriculum doesn’t typically include graphic design, which she sees as a potential future career.

“It was a once-in-a-lifetime opportunity for me,” Chester-Hopkins said.

Emelly Ibarra, a rising freshman, said the experience solidified her interest in the field.

“This is a possible career for me. I’m definitely thinking of coming back next summer if they do have another job internship opportunity open,” she said.

In a city where only 69% of public school students graduate high school, Hanson said he

HANSON DODGE

A group of Milwaukee high school students recently participated in a two-week, paid internship with Hanson Dodge.

hopes programs like The BrandLab and Hanson Dodge’s give students the motivation and direction needed to complete their degree and pursue a creative profession.

But to successfully draw diverse talent in, employers need training, too, particularly around creating a welcoming and inclusive environment that encourages young people to be fully themselves, McCracken said.

Another component is ensuring the intern-

Jamie Schmelzer of Johnsonville gives a presentation of his company to the student interns.

ships are paid, as unpaid internships have historically been a barrier to entry for people from diverse and socioeconomically disadvantaged backgrounds.

Kelly Klawonn, vice president of talent and operations at Hanson Dodge, said paying high school students for their efforts was a high priority this summer.

“We felt it was important to create an experience that was representative of a real

internship, and we always pay our interns. And these kids, despite being somewhat younger, still deserve that opportunity and we value what they were bringing to it. They showed up every day on time, they were as engaged as an employee and they treated it like a job, and we did too,” Klawonn said, adding it also offered additional learning opportunities, like helping students complete their tax paperwork for the first time. n

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DIVERSITY & INCLUSION

: PORT AL RE SION I C U E L C SP

RS D IV E

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Fostering a culture of inclusion Tips to bridge across differences at work

By Beth Ridley WE SEEM MORE DIVIDED today than ever before. Most people are afraid to approach divisive topics for fear of damaging a relationship or embarrassing themselves. We only consider what could go wrong with a conversation versus what could go right. So, we don’t try, allowing assumptions, biases and stereotypes to fester. But it doesn’t have to be this way.

I lived in South Africa from 1996 to 1998. It was two years after the end of apartheid, after Nelson Mandela was released from prison and became president. I got to experience what it was like for a country to transition from a deeply divided apartheid state to a unified democracy.

Much of this was made possible through the work of the Truth and Reconciliation Commission, which was founded in the belief that truth was the only means by which South Africa could come to a shared understanding of their past in order to forge a new identity in the future. The commission, led

by Desmond Tutu, held hearings across the country in churches and community centers, where victims of crimes under apartheid and perpetrators of crimes could come forward and share their stories in the spirit of seeking understanding and healing.

The stories were aired on TV every Sunday, which helped spark a spirit of listening, learning and relationship-building across the country. I saw before my eyes how an intentional effort to uncover and understand the human experience common among all of us beyond race, culture and political 42 / BizTimes Milwaukee JUL 19, 2021

affiliation healed an entire country.

With that experience in mind, I am making a conscious effort to never walk away from the opportunity to find common ground through conversation even when it seems impossible. So far, I have not regretted any of my attempts and am amazed at how a single conversation can replace biases and assumptions with empathy and understanding.

And the good news is, I’m not alone. I’m having more conversations with people about having conversations with people lately!

Despite best intentions, however, it’s inevitable that someone will say something demeaning or offensive to another person at work. How these “diversity moments” are handled can make the difference between boiling over into large conflicts or fostering greater understanding among colleagues.

Here are my tips for what leaders can do to enable a more positive outcome: » Establish a process. Be clear on expected behaviors for your company community (what’s acceptable and what’s not) and identify a point of contact for employees to consult with when a conflict arises (a manager or designated HR representative).

By communicating a process throughout the workplace, you reassure employees of your commitment to company values and that they can come forward with concerns without fear of retribution. » Speak up. If you hear something inappropriate or hurtful, it is important to speak up. If you stay silent, other people may interpret your silence as support for the hurtful comment or action. If someone comes to you with a concern, encourage the individual to speak up. While conversations about politics, race, etc. are uncomfortable, not speaking up allows hurt feelings and misunderstandings to fester. And that leads to employees feeling that they don’t belong.

The lack of belonging is a primary cause of lower employee engagement and loss of

credibility with efforts to foster a culture of inclusion. » Engage in respectful dialogue. When you speak up, make sure you do it with the goal of seeking to understand and bridge differences. Don’t assume that the other person intended harm. Quickly explain the concern from your perspective and invite the other person to share their perspective. Pose questions like, “I’m curious to know what you meant by your comment.”

Explain the impact of what they said with phrases like, “I know you meant that to be funny, but it was hurtful to me because …” Finally, invite the person to share from their perspective by asking, “How do you look at this?” The goal is to not resolve the conflict in a single conversation, but rather to leave the door open for a second, third or fourth conversation. That’s when greater meaning and deeper relationship building occurs.

With some proactive measures and inclusive communication skills, you can use workplace diversity moments to strengthen and give credibility to your efforts to foster a culture of inclusion. And keep in mind, honest dialogue is a small positive step we can all take in the right direction. If we keep it up, I think we can make the workplace (and the world) a whole lot better … one conversation at a time! n Beth Ridley is a leadership expert, workplace culture consultant and speaker. She combines 25 years of global leadership and management consulting experience with expertise in diversity and inclusion and positive psychology to help organizations transform their workplace culture. She can be reached at bethridley@ thebrimfullife.com.

Tip Sheet

insey points to its own research findings that companies with more diverse leadership are more likely to perform better than industry average on margin growth. While the article highlights the unique position of private equity – representing about 4,700 firms that own more than 18,800 companies in North America – to change the status quo, the following action steps are relevant to any private sector industry.

Weaving D&I throughout your business

A

1. Publicly commit Make DE&I efforts official by creating an internal council or task force, “with a C-level chair to signal that this matters,” says McKinsey. That group can establish metrics, set goals and track progress.

recent article by McKinsey & Co. discusses the obligation of the private equity sector to work toward more diverse, equitable and inclusive workplaces. McK-

TALENT

2. Assess targets through a diversity lens Companies can weave DE&I into various facets of business, from recruiting talent to acquiring another company. Making space

for DE&I when setting targets or conducting investment-committee reviews allows for better risk assessment and a better understanding of DE&I as a natural value-creation opportunity.

3. Prioritize performance Leadership should review diversity performance, both internally and at partner meetings. Companies could even base portions of leadership compensation on the progress made against DE&I metrics.

4. Clear away structural racism Corporate DE&I efforts can only be sustained with a strong foundation. Companies should review and analyze current benefits and policies to identify those that inherently serve to disadvantage or alienate minority groups. Rewriting racist or discriminatory policies is crucial. n

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Special Report MERGERS & ACQUISITIONS

Jason Liu

Zywave has been busy making acquisitions, CEO Jason Liu shares why Arthur Thomas, staff writer WHEN WAUWATOSA-BASED insurance technology firm Zywave was acquired by Clearlake Capital Group last year, Zywave chief executive officer Jason Liu said the deal would accelerate the company’s pace of acquisitions.

He wasn’t kidding.

Zywave announced two deals in November 2020, just after the Clearlake deal closed. More transactions followed in April and May. Speaking with BizTimes in mid-June, Liu noted the company had done four acquisitions already and planned to continue on that pace. A fifth deal was announced by the end of the month.

The company had also announced three other acquisitions since Liu became CEO in 2018.

“We anticipate that we will continue that pace, there’s no slowing down,” Liu said. “We have the right investor, we’re growing exponen-

tially, and the market is huge.”

The market for Zywave is the insurance industry. More specifically, it is the people and companies who help consumers get insurance.

Zywave offers a variety of cloud-based software solutions for sales management, client delivery, content and analytics. Its products are used by thousands of brokerages worldwide.

But Liu and the team at Zywave see opportunity for more.

“What we see is the insurance industry is the last big vertical that is yet to go through digital disruption,” he said. “There’s this massive opportunity to be a breakout player in the space.”

Wanting to be the breakout player, Zywave set about building the needed scale and identifying core areas where it would bolster its capabilities.

One of those areas was digital quoting.

“Up until recently, all insurance has been done manually: You call your agent, they give you a quote,” Liu said.

He pointed to research from William Blair that suggests 50% of all insurance quotes will be digital by 2029. Zywave’s goal is to be the enabling technology that makes that happen.

Several of the acquisitions, including Insurance Technologies Corp., or ITC, have been aimed at adding Zywave’s digital quoting capabilities. ITC alone does around 30 million quotes per year in the personal lines insurance space.

Zywave itself has also grown to be the leader in digital quoting for benefits, Liu said.

Zywave also invested in acquiring more data assets.

“We purposely decided that the more data that we could aggregate and provide to our customers, who are brokers, insurance agents and carriers, it’s a very valuable offering to provide,” Liu said. “It also makes our software smarter and more automated.”

Being aggressive in the M&A world comes with its challenges, especially in a hot market.

One challenge is the rising importance of the selection process.

“You have to be very thoughtful about what assets you’re going to pursue and how much you’re going to pay for them, because inevitably the price is going to be pushed up and so making sure you have your business case and a clear qualification on the assets you’re buying is really critical,” Liu said.

In the past, there may have been room to make a mistake.

“Now, you’re basically paying premium price and so you have less room for mistakes,” Liu said.

Zywave also talks with sellers to encourage them to look at the whole offer beyond just the sale price.

“Helping them understand that they should pick a partner that not only pays a fair and good price but also is the best home for your company is critical,” Liu said.

A third strategy is to focus on acquiring companies with proven technology.

“It’s very easy for yourself to get caught up in the startup that seems really sexy, but making sure that when you do buy an asset it has a proven track record of customers and success is key,” Liu said.

It may seem that Zywave would have to strike a balance between finding a proven technology and paying too high a price, but Liu said he is comfortable waiting for something to have a track record.

He pointed to the acquisition of miEdge, a provider of lead generation, data analytics and prospecting solutions, in 2019 as an example. biztimes.com / 45

Special Report MERGERS & ACQUISITIONS “We could have bought them at a lower price, but we waited until they got to be more proven and we paid a higher price,” Liu said. “I don’t think we’re unwilling to pay a higher price as long as it’s proven. What you don’t want to do is pay a high price and then you find out that the company was too early or their products didn’t really work. Ultimately, you’re going to have to pay a high price, but I’d rather pay a high price for something that’s more established than pay a high price for something that’s unproven.”

Of course, acquiring companies is one thing, integrating them into the existing business is another.

Part of how Zywave is tackling integration challenges comes from its structure. After being named CEO, Liu hired Matt Warren, someone he had previous experience working with, to lead corporate development efforts.

“Matt owns both the deal side and he owns the integration, so he has to not only help us buy the asset, but he has to make sure that it gets integrated,” Liu said. “It’s kind of a check, because he knows that if he buys it, we have to integrate it.”

The actual integration requires a focus on

Decades of Experience in Mergers and Acquisitions

product, process and people, Liu said.

On the product side, he said integration requires a thoughtful approach to developing a common user experience.

“What we don’t want to do is have a Frankenstein company where there’s all sorts of different parts and products that don’t integrate,” he said.

On process, Liu emphasized working early on after a deal to instill a base set of processes, including using Salesforce for customer relationship management, running the sales process in a certain way and having a common approach to customer support and service. He described a desire for the system to be strong but flexible.

“Each company is different,” he said. “We don’t want to be too bureaucratic, but we make those the exception not the rule.”

The people front is where Liu said companies often make mistakes in integration. He said Zywave looks to retain the best and brightest, regardless of which company they worked for prior to the acquisition.

“Whoever is the best person who is a great culture fit is who ultimately … we want to keep,” Liu said. “It’s easy to get caught up in just going

a portfolio company of

has acquired

has been sold to

and

without maintaining that high bar of excellence, so that creates political dynamics where people that you acquired don’t feel like they have a chance and it’s a fair chance.”

Helping to fuel Zywave’s recent run of acquisitions is California-based private equity firm Clearlake, which acquired the company in 2020. Founded in 2006, Clearlake has $25 billion in assets under management.

“What makes them very unique is they certainly have the capital, but they also have the growth mindset,” Liu said. “Not every PE fund truly embraces growth, so they embrace organic growth, but they also really embrace acquisition growth. What that means is not only do they fund it, but they help us source deals, they also really have an appetite. ... So they’re willing to be forward leaning on taking aggressive positions or taking some risks in order to grow.”

Zywave has certainly been growing, from 350 employees a few years ago to more than 900 now. Liu said the company’s global presence is growing too and is now reaching the limits of what its Wauwatosa offices can support.

“Our biggest issue is recruiting talent,” he said. n

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has acquired

a portfolio company of

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Special Report MERGERS & ACQUISITIONS

Borgman

Hung

Orr

Schneider

Cahalane

Dillon

Malatesta

Hanna

Plautz

What to consider when you consider selling your business Arthur Thomas, staff writer IT IS A SELLER’S MARKET. Buyers are paying top dollar; they are willing to look beyond issues they may previously have asked to have addressed; and they’re moving quickly to close deals.

While this description applies to the real estate market in many areas, it also applies to the market for businesses. The mergers and acquisitions market roared back to life after a brief pause at the onset of the COVID-19 pandemic.

Activity has generally remained at a high level with low interest rates, buyers with available money and looming tax changes pushing sellers into the market.

Even though the market favors sellers, that doesn’t mean there aren’t important questions for business owners to consider if they are looking for a buyer. Unlike the housing market, where a seller may look to maximize price and an ability for a deal to close, a business seller may stay on through an earnout period or give consideration to what will happen to employees who helped build the value the owner realizes in a deal.

“If somebody overpays for the business, they’re going to have a lot of different decisions once they close to try to get their return that might not be in the best interest of the employees or the business long-term,” said Sequoya Borgman, managing director of Milwaukee-based private equity firm Borgman Capital.

The BizTimes M&A Forum, taking place 48 / BizTimes Milwaukee JUL 19, 2021

from 2 to 6:30 p.m. on July 21 at the Brookfield Conference Center, will explore those questions with two panel discussions and three breakout sessions. The event is sponsored by Old National Bank, Reinhart Boerner Van Deuren s.c. and Taureau Group with supporting sponsor Vistage.

Borgman will be part of a panel focused on integration and value creation after a deal. The panel will feature buy-side perspectives from Karen Hung, chief executive officer of Silver Rock Consulting; Al Orr, CEO and shareholder at Reinhart Boerner Van Deuren; and Terry Schneider, president of Welcome Dairy Holdings. Inge Plautz, senior vice president at Old National Bank, will serve as moderator.

Ann Hanna, managing director and owner of Taureau Group, will serve as moderator for a panel featuring sell-side perspectives from Dan Cahalane, president of American Roller and Plasma Coatings; Rob Dillon, executive vice president of OwnersEdge; and Michael Malatesta, leader of ERC Midwest LLC. The breakout sessions will address key factors driving the value of a company, a candid conversation on capital stacks and funding a transaction, and tax considerations for deal structures.

As for questions for sellers to consider, Orr said he often suggests clients look at their business through the eyes of a potential buyer. This process can include a quality of earnings review, a survey of legal compliance issues or an assess-

ment of agreements with key employees.

“Buyers don’t like surprises and may re-trade on price if they discover that the company isn’t quite what it was presented to be,” Orr said.

“Understanding your business’s vulnerabilities will allow you to address them before the sale process begins.”

Malatesta said preparation is the most important part of the sale process.

“You should always have your business prepared to sell, even if you have no intention of selling. Reliable financials, defined systems and processes and an identifiable path for succession are the keys to running and selling a successful business,” Malatesta said.

Hung said sellers should think about four areas: What is the company’s key strategic advantage? What are the scale or growth opportunities? What are the key risks for growth? And what are the enduring qualities of the business?

“I think the seller should be upfront about it,” she said of addressing risks, noting it helps to create credibility and can lead to conversations about how best to mitigate the risks.

Orr said he also asks clients to consider their own goals in the sale process. Whether a seller wants to retain a management role or roll over a portion of proceeds as a continuing investor in the business can influence who the ideal buyer will be.

Dillon, who sold his company to OwnersEdge in 2017, said he had limited knowledge of employee stock ownership plans when he started the sale process, but it quickly became an attractive option for him.

“I was seeking a way to take some personal risk off the table while honoring my commitment to the wellbeing of my employees,” Dillon said. “Selling to an ESOP company proved to be a fantastic way to thread that needle.”

He saw two types of buyers emerge in the sale process: “buy and flip” and “buy and hold” types.

“Private equity-backed buyers, in general, did not seem to prioritize the long-term sustainability and prosperity of the business, which was an immediate red flag for me as a seller,” Dillon said.

Of course, there are a variety of private equity firms, each with their own approach and culture. Cahalane, who led American Roller’s sale from one group to another, said that makes having a good broker to find the right private equity partner important.

“I’ve seen good, and I’ve seen bad,” Cahalane said of private equity firms. “The good private equity we’re with right now is fabulous. Some of what we’re doing, if it wasn’t for their help and their ideas, we wouldn’t be where we are today.” n

Our clients know. We get even the most complex deals done quickly and cost-effectively.

We leverage the collective experience, contacts and market insights of our attorneys to locate strategic partners, connect prospective purchasers and sellers, arrange necessary financing and negotiate the most favorable results for our clients.

reinhartlaw.com · 414.298.1000 MILWAUKEE · MADISON · WAUKESHA · WAUSAU · CHICAGO · ROCKFORD · MINNEAPOLIS · DENVER · PHOENIX

DEBBIE FORD CHANCELLOR UW-PARKSIDE

BizTimes the

Milwaukee

inaugural

presents

showcase

of

Notable Women in Education, spotlighting outstanding women in the metro Milwaukee area who are in leadership roles for local

educational

including

institutions,

universities,

colleges,

technical schools, and primary (K-12) schools. Their work helps area students reach their potential and they play a vital role in developing the next generation of talent for the region’s workforce.

METHODOLOGY: The honorees did not pay to be included. Their profiles were drawn from nomination materials. This list features only individuals for whom nominations were submitted and accepted after a review by our editorial team. To qualify for the list, nominees must be based in southeastern Wisconsin and they must serve in a leadership role in a local educational institution.

50 / BizTimes Milwaukee JULY 19, 2021

UW-Parkside chancellor Dr. Debbie Ford’s leadership qualities were demonstrated by her most recent efforts to keep a smaller university like Parkside (student enrollment: 4,500) at the forefront of higher education, diversity and innovation, all during a global pandemic.

No easy task, considering Parkside is located between Chicago and Milwaukee, competing with several major nearby institutions for potential students, according to Andrew Savagian, UW-Parkside’s communications director.

Throughout the COVID-19 crisis, faculty, staff, and students fed off her positive, no quit attitude, her personal connections (she continued to meet with students and was constantly on campus engaging with the university community), and her uncanny ability to not let myriad (and often daily) changes to critical situations phase her, all while inspiring her faculty and staff to provide a world-class education and experience for the students, Savagian said.

“She often seemed everywhere, utilizing social media to engage and connect with students and our local community, and never shied away from pushing all of us to meet the goals of protecting the safety of our community while providing a higher education for all,” he said. “We see the fruits of her labor as the fall 2020 and spring 2021 graduating classes were the largest in Parkside’s history.”

JENNIFER LÓPEZ CHIEF EXECUTIVE OFFICER CARMEN SCHOOLS OF SCIENCE AND TECHNOLOGY

KATHRYN BAGANZ

JUDITH PARKER

PRINCIPAL

DR. HOWARD FULLER COLLEGIATE ACADEMY

PRINCIPAL

LAKE COUNTRY LUTHERAN HIGH SCHOOL

Through Jennifer López’s leadership as chief executive officer, the 2,276 students and families at Carmen Schools of Science and Technology have received high-quality education and wraparound support through the COVID-19 pandemic, according to board member Alicia Dupies, senior vice president at Capri Communities.

Kathryn Baganz, principal at Lake Country Lutheran High School in Hartland, consistently makes an impact in education as she leads educators, instructs and mentors future teachers at the university level, and encourages other professionals to enter the field of education, according to Kate Brewer, mother of a Lake Country student.

Carmen is a non-selective public charter school serving 90% students from low-income families and 95% students who are Latino or African American.

Establishing a school culture that encourages teachers to brainstorm ideas, share concerns, and discuss important topics, Baganz implements a variety of strategies for individual teachers to best meet the needs of all students while maximizing each faculty member’s own unique strengths in the classroom, Brewer said.

When school closures were announced at the onset of the pandemic, López directed Carmen to: • Loan 1,745 Chromebooks to students lacking access.

• Provide 440 WiFi hotspots to students without internet service.

• Implement K4-12th grade virtual learning within three days.

Given the impact of COVID-19 on Carmen families’ jobs and access to basic needs, López also led an effort to raise $157,322 in emergency funds to cover families’ utility costs and rent/mortgage for parents and guardians who lost their income, medical and funeral costs related to COVID-19, grocery expenses through partnerships with Pete’s Market and El Rey, and small businesses’ unexpected costs incurred during the pandemic.

“Kathryn has significantly broadened the school’s capacity to meet the needs of a wider range of students by securing significant funding for the enhancement of a student resource room that enables students to access essential services and resources that would not otherwise be available in a private school setting,” Brewer said. “Recognizing the unsettling physical and mental health challenges that a COVID-impacted society brought forth, Kathryn rallied her educational community as a team of dedicated teachers to continue to provide stability for students by engaging them in quality learning experiences throughout their full face-to-face academic classes, athletic competitions, fine arts performances, and spiritual development activities.”

Carmen Schools of Science and Technology’s Board of Directors congratulates CEO Jennifer López, a 2021 BizTimes Notable Woman in Education.

When the COVID-19 pandemic hit, Judith Parker, principal at the Dr. Howard Fuller Collegiate Academy, told her students and staff that “learning never stops.”

Within two weeks of the school’s closing on March 13, 2020, 100% of families had a Chromebook and a WiFi hotspot. Parker designed and managed a virtual learning model that prioritized one-on-one mentoring, student access to high-quality instruction, and self-care for students, teachers, and staff. She also created a team to develop a comprehensive health and safety plan that met the needs of the City of Milwaukee Health Department for safe reopening.

Parker maintained constant two-way communication with staff through morning meetings and daily updates. She convened monthly parent meetings to collect feedback and plan collaboratively. More than 80% of families participated in parent-teacher conferences.

She personally made home check-ins of families with texts, calls and drive-bys to wave.

She encouraged continuing crazy socks day, Friday shout-outs, Decision Day and facilitated two masked, socially-distanced, in-person graduations.

Parker also found time to pen letters to the school’s board of directors, community, and donors to reinforce how issues impact the families at the central city, predominantly African American school.

Principal Judith Parker’s leadership, determination, and concern for all under her care over the course of the last 18 months will never be forgotten by our school community.

CONGRATULATIONS! Your leadership and commitment has made Carmen Schools of Science and Technology the #1 option for Milwaukee families.

carmenschools.org

College, career, and life ready • www.howardfullerca.org biztimes.com / 51

KIMBERLY AMIDZICH

BETH BORGEN

VICKI MARTIN

PRESIDENT

PRESIDENT

SUPERINTENDENT

LAKELAND UNIVERSITY

MATC

GREENDALE SCHOOLS With more than 20 years of administrative experience with Greendale Schools, superintendent Dr. Kim Amidzich brings skill, intelligence, thoughtfulness and understanding to her position, according to colleagues in the school district.

She is a graduate of Greendale Schools and a community member herself with an understanding of village history and community pride for its schools. Amidzich blends this knowledge with her deep understanding of educational best practices, equitable access and opportunities for students, curriculum and character development processes to lead Greendale Schools into the future, said Kitty Goyette, communications director at the district.

Amidzich was named interim superintendent following the unexpected resignation of the previous superintendent in late 2019. Amidzich’s appointment as permanent superintendent was approved by the Greendale Board of Education as the world was closing its doors last spring due to the COVID-19 pandemic.

She has provided steady leadership and support to the school administrators, teachers and support staff as the district launched remote learning for the remainder of the spring semester, Goyette said.

Beth Borgen’s success story gets better each year. She has quickly risen to the presidency at Lakeland University – a role she never envisioned when she arrived as assistant alumni relations director 15 years ago – thanks to a progressive, customer-centric leadership style that promotes campus inclusiveness, according to colleagues.

Lakeland has historically served a large number of first-generation college students, as well as hundreds of working adults who are earning a degree. Borgen has lived both profiles and advocates for a healthy work-life balance and has challenged Lakeland’s leadership team to re-evaluate the way the institution does business.

Borgen has been instrumental in keeping Lakeland moving forward at a time when many institutions are struggling to attract students due to fears over student debt, COVID-19 and a shrinking pool of prospective students, according to David Gallianetti, director of external relations at Lakeland.

Borgen has: • Led a task force that implemented Lakeland’s award-winning Cooperative Education program.

• Led Lakeland’s recent $12 million fundraising campaign.

• Played a significant role in launching several boards of advocates that keep LU’s academic programs connected to the needs of employers.

Congratulations

BIZTIMES NOTABLE WOMEN IN EDUCATION

DR. KIM AMIDZICH

Dr. Vicki J. Martin is the 10th president of Milwaukee Area Technical College. She has served in higher education for four decades and has been at MATC for three of them, leading the college since 2014.

In 2015, she launched the MATC Promise, a public-private partnership that provides free tuition for eligible new high school graduates. The first-in-Wisconsin program drew the attention of current First Lady Dr. Jill Biden, who addressed MATC’s graduates in spring 2017. In spring 2018, Martin announced a major expansion of the program – the MATC Promise for Adults – which provides free tuition for eligible adults to finish their degree.

She led MATC through its implementation of the American Association of Community Colleges’ Guided Pathways framework to improve student success and partnered with leaders of Carthage College, the University of Wisconsin-Milwaukee and UW-Parkside to form the country’s first regional consortium participating in EAB’s Moon Shot for Equity to eliminate equity gaps in higher education.

Martin has attracted growing private-sector and foundation support to the MATC Foundation Inc., serves on the steering committee of the Higher Education Regional Alliance, and is a founding leader of the M3 (M-cubed) initiative, which brings together MATC, Milwaukee Public Schools and UW-Milwaukee to work to transform the future of Milwaukee through education.

Congratulations, President Vicki J. Martin!

MATC is proud to honor Dr. Martin, women educators at the college and all of this year’s winners.

matc.edu or 414-297-MATC | Wisconsin Relay System 711 52 / BizTimes Milwaukee JULY 19, 2021

JANET KREJCI

KRISTEN KREPLE

DEAN, COLLEGE OF NURSING

TITLE IX COORDINATOR

MARQUETTE UNIVERSITY

MARQUETTE UNIVERSITY

Dr. Janet Krejci, dean of the Marquette University College of Nursing, is a strategic leader who always puts Marquette’s mission first, according to Kimo Ah Yun, provost and executive vice president for academic affairs.

“She has a relentless work ethic when it comes to leading the college’s faculty and staff, and she takes great pride in advocating for students.

Dr. Krejci is a role model who cares deeply for the academic and cocurricular development of all future Marquette nurses,” said Ah Yun. Krejci is well respected nationally, with deep relationships with other leaders at health systems throughout the region, Ah Yun said.

“Growing and diversifying the nursing workforce is not simply Dr. Krejci’s vision. Strategic and savvy, she works tirelessly to turn passion into practice,” Ah Yun said. “Most recently, her leadership and vision inspired an alumni couple to step forward with a transformational $31 million gift to fuel scholarships, increase diversity, drive innovative health care advances and support strategic initiatives in the college.”

“Recognizing the rapidly changing health care environment, Dr. Krejci and her team have a plan to meet a pressing need to develop future nurse leaders,” Ah Yun said.

As Marquette University’s Title IX coordinator, Kristen Kreple leads the university’s efforts to create and foster a gender-equitable environment for its faculty, staff and students.

Kreple has been instrumental in evaluating and creating measures to maintain and reinforce Title IX protections for Marquette’s community members, according to Marquette Title IX deputy coordinator Cara Hardin.

Title IX of the Education Amendments of 1972 prohibits discrimination based on sex in education programs and activities in federally funded educational institutions.

These efforts include: overseeing the complete restructure and implementation of Marquette’s sexual harassment and discrimination policies in compliance with changes in federal law; providing supportive measures to those reporting sexual harassment and discrimination; facilitating the grievance process that guarantees a prompt and equitable resolution of student and employee sex and gender harassment and discrimination complaints; and ensuring that all Marquette constituents are aware of their rights under Title IX. “Kristen has dedicated her professional career to advancing civil rights and gender equity in higher education,” Hardin said.

CHRISTINE PHARR PRESIDENT MOUNT MARY UNIVERSITY Since the moment Mount Mary University president Dr. Christine Pharr arrived on campus in 2018, she has been a force for change and an outspoken community advocate for transformative education for women, particularly those underserved in our community, according to colleagues.

Under Pharr’s leadership, Mount Mary ranked first in Wisconsin in U.S. News and World Report’s rankings of top-performing schools for social mobility in 2020.

Mount Mary’s diverse student population (42% of the members of its student body identify as a person of color) has been disproportionately affected by the COVID-19 pandemic, and Pharr’s President’s Emergency Fund has awarded more than $60,000 to 46 students to offset the challenges in this time of unprecedented struggle, according to Kathy Van Zeeland, Mount Mary’s director of marketing and communications.

She is also leading the development of the $20 million Trinity Woods intergenerational housing community, opening on campus this fall. It brings together the aging population of School Sisters of Notre Dame, senior citizens from the community and family housing for single undergraduate mothers and their children.

CONGRATULATIONS TO THESE REMARKABLE MARQUETTE WOMEN.

#1 IN WISCONSIN #3 IN MIDWEST

Janet Wessel Krejci, Ph.D., RN, NEA-BC, Dean and Professor of Nursing

U.S. News & World Report ranks Mount Mary among the best in the Midwest for graduating women of all backgrounds.

Kristen Kreple, J.D., Title IX Coordinator Thank you for being the difference for so many.

mtmary.edu

Mount Mary thanks President Christine Pharr, Ph.D., for her visionary leadership biztimes.com / 53

TABIA JONES

DUONG DUONG

PRESIDENT AND CEO

HIGH SCHOOL DEAN

CHRIS HER-XIONG

ST. JOSEPH ACADEMY

HMONG AMERICAN PEACE ACADEMY

FOUNDER/EXECUTIVE DIRECTOR

Dr. Tabia N. Jones, president and CEO of St. Joseph Academy in Milwaukee, grew up in a family of educators and has made education her life’s work for the last 25 years.

“I consider myself privileged to work with her,” said Kim Schubring, resource development manager at St. Joseph. “She is an outstanding leader with a wealth of experience in the education sector. She makes the world a better place one child, student and staff member at a time.”

According to Schubring, Jones sees the whole picture and strives to make an impact at every level of learning.

“She doesn’t stop at just ensuring educational opportunities are met for those around her, but is herself an avid learner. She continuously seeks educational opportunities that help her continue to grow as an educator and person,” she said.

Jones holds her team accountable in ways that lead to positive educational outcomes for the students and encourages continuing education for all staff, making room in the annual budget for reimbursement of a portion of costs associated with additional learning.

“Through the COVID-19 pandemic she has led with grace, compassion and resolve to ensure that our organization, staff and students weathered the challenges of the last year and a half,” Schubring said.

As a Vietnamese refugee in the U.S., Dr. Duong Duong, an administrator and teacher at the Hmong American Peace Academy, says she has “always felt a strong pull towards education, as a way of giving back to my new homeland and educating the next generation to be productive global citizens.”

For the past 25+ years, Duong has taught students from kindergarten to college-level in urban and suburban school districts. She has held leadership roles in numerous local, state, and national education-related organizations, including the local, state and National Education Association, BadgerLink, Pewaukee Scholarship Fund and Girl Scouts.

Duong now serves at the Hmong American Peace Academy (HAPA) in Milwaukee, the largest Hmong-population school in the U.S., holding roles including high school dean, support staff director and academic career guidance counselor, in addition to teaching English and Spanish.

She has implemented and increased involvement in several high-impact programs, including the Youth Apprenticeship/Internship Program, a partnership between businesses and HAPA providing paid, career-related employment opportunities to juniors and seniors who want to get a jumpstart on careers. She also coordinates financial-literacy programming through SecureFutures.

HMONG AMERICAN PEACE ACADEMY Chris Her-Xiong holds many firsts – the first Hmong teacher and the first Hmong principal in the city of Milwaukee, to name a few – but her greatest accomplishment could be founding the Hmong American Peace Academy in 2004.

It began when Her-Xiong challenged Hmong community leaders to create an organization that preserved Hmong culture while helping students become active and knowledgeable citizens. This propelled the creation of the MPS charter school that now serves more than 1,800 students in grades K4-12 and is recognized as one of Milwaukee’s highest-performing schools, despite 95% of students qualifying as economically disadvantaged, according to Her-Xiong.

During the COVID-19 pandemic, with 80% of its students and families without a computer at home for virtual learning, Her-Xiong and her team applied for every resource they could to get the technology their students needed. They developed and continuously updated safety plans in case students were able to come back on campus.

When Her-Xiong noticed how much the pandemic’s effects were impacting students, she wanted to keep a constant for students who were already managing so much change and asked teachers to teach from their classrooms. This had great results as daily virtual student attendance averaged 98% and teachers enjoyed it, Her-Xiong said.

Congratulations to Dr. Tabia N. Jones: our President & CEO, and a BizTimes Notable Woman in Education

AMERICAN HE A R T ASSOCIATION PHONE: (414) 271-9999 WEB: heart.org/Milwaukee

To be a relentless force for a world of longer, heathier lives.

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PHONE: (414) 449-4444 WEB: easterseals.com/wi-se

We strive to hire the very best teachers and support staff who support the Felician value for Ministry: Respect for Human Dignity, Compassion, Justice and Peace, Transformation and Solidarity with the Poor.

54 / BizTimes Milwaukee JULY 19, 2021

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Your leadership helps support St. Joseph Academy and our commitment to providing children of all ages with the very best in care and education.

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NICOLE SCHMIDT

BRENDA JONES

KIM MILLER

VICE PRESIDENT AND CHIEF ACADEMIC OFFICER

VICE PRESIDENT FOR FINANCIAL AFFAIRS

CHAIR OF NEW STUDIO PRACTICE: FINE ARTS

LUMIN SCHOOLS Beginning in May 2020, Nicole Schmidt, vice president and chief academic officer at LUMIN Schools, co-led a COVID-19 task force responsible for creating LUMIN’s 2020-21 school year reopening plan.

LUMIN Schools is a network of Lutheran voucher schools with seven campuses in Milwaukee, Wauwatosa and Racine.

Her leadership in the reopening process resulted in LUMIN offering five days a week of in-person instruction and a newly created, separately staffed online school that served nearly half of LUMIN’s students.

Formulating the reopening plan, advising seven schools on new health and safety guidelines and creating LUMIN’s first-ever online school was a significant undertaking, according to Rebecca Ehlers, LUMIN’s chief communications and talent officer.

“Yet, Schmidt remained a trusted, admired and steadfast leader.

She even taught 8th grade reading on top of her already overbooked schedule,” Ehlers said. “Schmidt is passionate about mentoring and empowering educators. Within LUMIN, she created a teacher advancement plan that provides a clear pathway for teachers to advance within their practice. She has implemented a teacher and leader coaching program to ensure students have best-in-class educators to guide their learning journeys.”

MILWAUKEE INSTITUTE OF ART & DESIGN Brenda Jones, vice president for financial affairs at Milwaukee Institute of Art & Design, has created a solid foundation for MIAD’s continued growth, financial stability and innovation as a world-class undergraduate college, according to colleagues.

Through her leadership and collaborations across the college this past year, MIAD pivoted and maintained its operations and continued to pay its 370 faculty, staff and student employees during the COVID-19 lockdown, according to Jeff Morin, MIAD president.

Jones refinanced the college’s mortgage and secured financing to complete a $4 million renovation of the college’s 55,000-square-foot 4th floor to house the MIAD Innovation Center, Emerging Technology Center, Illustration and Communication Design student studios, MIAD galleries’ permanent collection and faculty offices. The transformational renovations began before the pandemic and were completed in September 2020.

In addition to her administration duties overseeing human resources, payroll, student accounts and facilities, she managed the distribution and reporting of federal and state relief funds. Jones secured a $2 million PPP loan for MIAD and has applied for forgiveness of the loan.

KANIKA BURKS

CAROL SABEL

PRINCIPAL

PROFESSOR AND CHAIRPERSON

MILWAUKEE COLLEGE PREP - LOLA ROWE CAMPUS Kanika Burks, principal of Milwaukee College Prep - Lola Rowe Campus, is an educator and leader who works to inspire her students and serve as a bridge for the school and community.

“She is that conduit to connecting community leaders and resources to her students and their families,” said Tammy Belton-Davis, founder and principal of Athena Communications. “(Burks) makes it her mission to educate and empower the entire child and their family. I met her first when she was principal at Gwen T. Jackson School and I saw her engage with parents, hug on the students, lead her staff in training and be a resource to those in the neighborhood.

“What I appreciate most about Kanika is that she brings joy and passion to the work,” Belton-Davis said. “The business of education can be tough. You are managing the unions, educational policies, national and state metrics while understanding the reality that our children are experiencing stress and trauma that is generational and deep.

“Not to mention, the innovation and resilience required of educating young people through a pandemic. I’ve seen her launch book clubs, contests with staff, and guest book readings with kindergarten students to spark learning and real engagement.”

MSOE SCHOOL OF NURSING The COVID-19 pandemic demonstrated the need for passionate and skilled nurses to keep our communities healthy and safe. According to colleagues, Dr. Carol Sabel, professor and chairperson in the School of Nursing at the Milwaukee School of Engineering (MSOE), is leading a team of faculty who assist in the development of nurses who will meet the school’s nursing vision.

The MSOE School of Nursing sets the standard for excellence in preparing nurses who will impact society as expert practitioners, leaders, and scholars, Sabel said.

Sabel was named chair of the MSOE School of Nursing in 2016. Under her leadership, MSOE created two new certificate programs and the new MSN track. She was also instrumental in the development of the partnership with Rogers Memorial Hospital to offer a Psychiatric Mental Health NP program.

Since Sabel stepped into a leadership role at MSOE, the School of Nursing saw a steady increase in nursing enrollment, reaching record-high numbers with more than 200 students each year.

She was a driving force behind the creation of new certificate, bachelor’s and master’s degree programs, including the Master of Science in Nursing Psychiatric Mental Health Nurse Practitioner track in partnership with Rogers Behavioral Health.

MILWAUKEE INSTITUTE OF ART & DESIGN Kim Miller, chair of New Studio Practice: Fine Arts at the Milwaukee Institute of Art & Design, works for the success of MIAD students and helps Milwaukee Public Schools students discover career paths and educational opportunities in the arts.

In 2020, Miller led MIAD’s fine arts program through the pivot to virtual learning during the COVID-19 pandemic. She supported the student and faculty community, ensuring student access to supplies for safe use at home and opportunities to exhibit work both virtually and in-person, according to Jeff Morin, MIAD president.

Miller also collaborated with MIAD’s Resource Center for Equity and Inclusion to lead a reading group of 60 students, faculty and staff who read “Me & White Supremacy.”

This spring, Miller continued a MIAD Future Artists program collaboration with Our Writing Blocks to help MPS students develop critical thinking skills and literacy, and empower students to use their voice. The program went virtual, and middle school students read and watched “The Hate U Give.” A series of conversations followed, including a conversation with Black officers from the Milwaukee Police Department.

KELLY THOMPSON SUPERINTENDENT OF SCHOOLS MUSKEGO-NORWAY SCHOOL DISTRICT Dr. Kelly Thompson, superintendent of schools for the Muskego-Norway School District, supports the creation of a culture of continuous improvement, according to Muskego mayor Rick Petfalski.

“In order to be prepared at the end of the year, Thompson knew the system needs to have a well-articulated plan at the beginning of the year. The district works to hardwire goal setting, action planning, and progress monitoring,” Petfalski said. “As a result of the district’s efforts, the system is integrated and aligned with all staff moving in the same direction. In Muskego-Norway, they love what they do, believe it matters and work collectively to make a difference for every student.”

Under Thompson’s leadership, the Muskego-Norway district has received many state and national awards, including three of its elementary schools earning a National Blue Ribbon School award from the U.S. Department of Education.

When the COVID-19 pandemic hit last year, the district already had a plan in place to move to virtual instruction and continued working for students uninterrupted for the remainder of the school year.

“She was successful in having a safe, in-person learning experience, with a virtual option for all students this (school) year as well,” Petfalski said.

biztimes.com / 55

TRACEY SPARROW

MICHELLE WALNY

KIMBERLY TAYLOR

PRESIDENT

DEPARTMENT HEAD ENGLISH

DIRECTOR

NEXT DOOR MILWAUKEE Dr. Tracey Sparrow has spent nearly three decades working in education, primarily serving in Milwaukee.

In 2000, Sparrow became president and CEO of Milwaukee Academy of Science, a school she helped launch to address a gap in minority achievement in health sciences. She later joined Milwaukee Center for Independence as vice president of children’s programs, where she expanded prenatal programing and led the development of Wells Street Academy for children with complex medical needs.

Sparrow joined Next Door Milwaukee in 2015. As president, she leads 260+ employees working to ensure nearly 1,400 children from under-resourced families have access to high quality early learning. She has forged partnerships with organizations like the Medical College of Wisconsin, Next Step Clinic and Literacy Lab’s Leading Men Fellowship, which engages young Black men as teaching assistants and positive role models at Next Door and other Milwaukee schools.

In 2020, Sparrow oversaw Next Door’s COVID-19 response. During the pandemic-caused shutdown, she worked to maintain full staffing levels and ran virtual all-staff meetings multiple times a month. Sparrow then led a successful reopening, getting 60% of students safely back in classrooms for the 2020-21 school year with the remainder enrolled virtually.

NICOLET HIGH SCHOOL Michelle Walny is a fiercely compassionate educator. Everything she does is done with the love and best interest of her students, according to Eido Walny, president of the Village of Bayside, and Michelle’s husband.

“She is what educators call a warm demander: a teacher who demonstrates and shows her care for the students, while simultaneously holding them to the highest of standards and makes them accountable. She sees what students are capable of even when the students themselves cannot see that potential,” Eido Walny said.

Michelle Walny was asked in 2019 to become an English department team leader at Nicolet High School — and then the pandemic hit.

“Michelle fought for her students to get the best education they could.

When members of the community pressured the administration, she steadfastly advocated for her students. She attended every virtual school board meeting. She consulted with her superintendent and principal often. She taught from her classroom even when the students were not allowed to be there,” Eido Walny said. “When students struggled with mental health, Michelle was the first to offer support, comfort and help. She was Wonder Woman without the lasso.”

PATHWAYS HIGH “It’s not a job; it’s a way of life.”

There’s no one whose mindset and actions embody this aphorism more completely than Pathways High director Kim Taylor, according to Pathways co-founder and board president Julia Burns.

“I’ve had the pleasure of working alongside Kim since 2017,” Burns said. “Leading a start-up, learner-centered school implementing project-based, mastery learning with a racially, socioeconomically, and ethnically diverse student population is a tremendous challenge most would avoid. Kim, however, embraces the work with an unwavering commitment to unleash all learners’ potential.”

In four years, Taylor’s relationship-driven leadership has built a strong culture of trust and care that has enabled the school to thrive, Burns said, persevering through typical start-up challenges and the COVID-19 pandemic.

Instead of seeing only pandemic-imposed limitations, Taylor led staff to expand real-world experiences by tapping networks across the country. Students gained exposure to careers from experts like a virology professor in Colorado and a New York-based physicist. Taylor worked to maximize the virtual learning model for student-led conferences and public exhibitions by significantly expanding attendance.

Student and parent satisfaction increased for the fourth consecutive year according to a UW-Milwaukee charter school survey.

MIACHELLE HARVEY

BRITTANY KINSER

ABBY ANDRIETSCH

ASSISTANT PRINCIPAL

EXECUTIVE DIRECTOR

ROCKETSHIP PUBLIC SCHOOLS

ROCKETSHIP PUBLIC SCHOOLS

PRESIDENT AND CHIEF EXECUTIVE OFFICER

Miachelle Harvey is an assistant principal for Rocketship Public School in Milwaukee, part of a national network of elementary schools in underserved communities. She was born and raised on the north side of Milwaukee. Her single father instilled a drive to achieve in Harvey that pushed her through roadblock after roadblock.

It took her nine years, but she graduated college while raising a daughter on her own. Harvey then got her master’s degree and is now on her way to become Dr. Harvey as she works on her doctorate in educational leadership.

Harvey has been balancing the responsibilities of being a parent and an educator throughout the COVID-19 pandemic and has been a role model for all staff navigating the competing priorities of working and parenting during this time.

“Her dedication to the youth of our city doesn’t stop with our school community. Mia was the visionary behind Rocketship Transformation Prep’s news-making ‘Kneel for Nine’ in remembrance of George Floyd,” said Tynetta Oliver, an office manager at Rocketship. “That powerful 8 minutes and 47 seconds of kneeling along a busy street outside of RTP resonated throughout the north side.”

“Mia led the Rocketship Milwaukee community to show our Rocketeers that they matter,” Oliver said.

56 / BizTimes Milwaukee JULY 19, 2021

In 2013, Brittany Kinser, executive director of Rocketship Public Schools Milwaukee, assembled a team, including a coalition of families to launch the largest charter school opening in the history of Milwaukee: Rocketship Southside Community Prep.

Kinser has been at the forefront of the effort to collectively advocate for greater equity and excellence in public education, according to Lauren Taylor, regional director of operations for Rocketship Public Schools Milwaukee.

“Even as the (COVID-19) pandemic has disproportionately affected our Rocketship Milwaukee communities, Brittany ensured that Rocketship launched a high-quality distance learning and Care Corps program from day one,” Taylor said. “She has supported our Rocketeers and families through the pandemic, making sure that families connected to services and community organizations to meet basic needs beyond academic support.”

Core to the mission at Rocketship is activating “parent power” and ensuring that parents are equipped to advocate for their student throughout their education. Most recently, Kinser has helped organize parents from multiple charter schools in Milwaukee and Madison in conjunction with the team at City Forward Collective to create a coalition of schools and parent leaders to advocate for more equitable funding in public education for all students, Taylor said.

ST. AUGUSTINE PREPARATORY ACADEMY Abby Andrietsch, president and chief executive officer of St. Augustine Preparatory Academy in Milwaukee, embraces challenges while continuing to love and serve students, staff and families, colleagues say.

In partnership with the Aug Prep leadership team, Andrietsch led the development of a COVID-19 safety plan and instantly pivoted to online learning with only two days of downtime and almost no asynchronous instruction. She planned the return to school, incorporating increased safety protocols to keep kids safe while giving the instruction they needed to excel.

Due in part to this innovation and proactivity, Aug Prep was one of the first schools in Milwaukee to return to in-person instruction. The school’s COVID safety plan was so well thought-out that it was shared with other schools as a guide. Andrietsch worked tirelessly to ensure that not only was no student at Aug Prep left behind academically, but all students received emotional support through this tumultuous time, according to Erin Hareng, chief external affairs officer at Aug Prep.

Andrietsch has been a key part of planning Aug Prep’s next phase. The school plans to break ground on a 120,000-square-foot building that will expand Aug Prep and give it the capacity to serve up to 2,400 students. New facilities will include 40 new classrooms, a theater, STEM labs, a fitness center and special education spaces.

CONGRATULATIONS!

STEPHANIE LICHTIG

SHABA MARTINEZ

ELEMENTARY SCHOOL VICE PRINCIPAL

INSTRUCTIONAL TECHNOLOGY AND INNOVATION SPECIALIST

UCC - BRUCE GUADALUPE COMMUNITY SCHOOL The contributions of Stephanie Lichtig, elementary school vice principal at UCC - Bruce Guadalupe Community School, extend over two decades in the education field.

Her advocacy for students to have quality educational experiences in school settings within urban and suburban venues is obvious, according to Laura Gutierrez, executive director at the United Community Center.

Lichtig has a passion to support students with disabilities, Gutierrez said.

“As a leader she skillfully weaves this passion by coaching teachers and administrators who transition into new career roles to guide students through their educational journey,” Gutierrez said.

In her current school administrative role, Lichtig coordinated various aspects of school management while maintaining a leadership presence related to teacher supervision, student discipline, and employee recruitment within her responsibilities.

“Her contributions have been a huge asset as she makes decisions grounded in credible research and years of experience. Exhibiting such stabilizing leadership, most notably in the past year’s tumultuous time, is a credit to her character, professionalism, and dedication,” Gutierrez said.

UNITED COMMUNITY CENTER Shaba Martinez, instructional technology and innovation specialist at the United Community Center, has abundantly demonstrated her commitment to a successful school, according to Laura Gutierrez, executive director of UCC. “Having classroom experience and knowing the impact library media centers and technology can have on classroom instruction has been key to her success,” Gutierrez said. “The most impressive example became evident this school year.”

When the COVID-19 pandemic hit, education leaders needed to adapt to non-traditional learning for students to continue their progress and not miss out on critical learning years.

“Shaba single-handedly managed all learning structures for the United Community Center schools to offer a hybrid platform of learning,” Gutierrez said.

This involved collaboration to purchase equipment such as Chromebooks for students, provide stable internet access for students’ homes, and offer engaging instruction by teachers. Martinez also handled communication to parents regarding the learning platforms, safety plan and arrival/dismissal procedures.

ANGELA FRAZIER ARTHUR

SHERRY SIMMONS

LISA OLSON

VICE PRESIDENT OF STUDENT SERVICES

CHIEF DIVERSITY AND COMPLIANCE OFFICER

WHITNALL SCHOOL DISTRICT

WAUKESHA COUNTY TECHNICAL COLLEGE Angela Frazier Arthur joined Waukesha County Technical College as the new vice president of student services in June 2020, and right from the start, she found meaningful ways to engage and support her team.

During her first year at WCTC, Frazier Arthur has worked to engage all levels of the organization, recognizing employees’ talents and using a grassroots technique to accomplish high organizational impact initiatives, according to Andy Palen, director of public relations, marketing and outreach for WCTC. These initiatives include strengthening internal communication, elevating professional development through internal talent and resources, and building the organization’s talent pipeline by identifying, clarifying and communicating individuals’ roles and each departments’ services across the Student Services division.

As a result, Palen said, the division has experienced an increase in morale, productivity and pride through recognition and trust.

“Through her leadership, she creates an atmosphere for staff and students where innovation is welcomed; where processes are developed, refined and long lasting; and where she can mentor and grow her team,” Palen said. “She is also passionate about expanding the college’s diversity, equity and inclusion, and is committed to prioritizing DEI.”

WAUKESHA COUNTY TECHNICAL COLLEGE As chief diversity and compliance officer, Sherry Simmons has played a key role in helping Waukesha County Technical College institutionalize diversity, equity, inclusion and compliance efforts on campus.

She is dedicated to ensuring people feel they have a voice on campus and they are heard, supported, welcomed and included, according to Andy Palen, WCTC’s director of public relations, marketing and outreach.

In summer 2020, WCTC reorganized departments to create the Office of Diversity, Equity, Inclusion and Compliance. At that time, Simmons was promoted from director of compliance and equity to chief diversity and compliance officer, and she began serving as a member of the WCTC President’s Executive Cabinet.

She has also been working closely with a team of faculty, students and staff to help develop and expand a comprehensive action plan.

The planning team was tasked with prioritizing goals in the areas of professional development, curriculum and student success.

Simmons’ leadership has already helped merge the diversity, equity and inclusion efforts and activities at WCTC into one group with a focus for both employees and students together.

SUPERINTENDENT

Since Dr. Lisa Olson came to the Whitnall School District as superintendent in 2016, she has lead the district through internal issues with confidence and consistency while remaining transparent with her intentions and actions, according to Whitnall School District Board member Quin Brunette.

All businesses were impacted by the COVID-19 pandemic, and schools were no different. Olson listened to the community, the state and a medical advisory committee that she created to help guide her.

“We were able to come to a careful decision that kept our district open the entire year and serve the families of our district with the best educational experience possible,” Brunette said. “Lisa was purposeful in providing Whitnall families options--either in person or virtual learning--while balancing staffing, unique household needs and the physical and mental health of students.

“She continues to push us to do better and lead the district through a long-term continuous improvement project to place us as a destination district in the future. Lisa has brought a business sense to the district to unify staff evaluations, create a consistent grading policy, work to keep our tax levy low and move to a place that we hire for culture among the high-quality candidates she attracts.”

biztimes.com / 57

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BIZ UPDATE

Advertising Section: Press Releases, etc.

K H WAT ER J O INS GU T HR IE & FRE Y FA M ILY O F CO M PA NIE S BETH BORGEN

PRESIDENT Y LAKELAND UNIVERSIT

presidency at Lakequickly risen to the each year. She has relations director story gets better as assistant alumni when she arrived Beth Borgen’s success that promotes campus leadership style a role she never envisioned land University – customer-centric to a progressive, 15 years ago – thanks as well as hunto colleagues. college students, inclusiveness, according of first-generation advocates for served a large number Borgen has lived both profiles and way Lakeland has historically a degree. to re-evaluate the leadership team adults who are earning dreds of working challenged Lakeland’s balance and has a healthy work-life business. when many institutions the institution does forward at a time Lakeland moving a shrinking pool of debt, COVID-19 and instrumental in keeping Borgen has been at Lakeland. to fears over student of external relations attract students due are struggling to Gallianetti, director according to David students, prospective Education program.

Borgen has: award-winning Cooperative implemented Lakeland’s Led a task force that campaign. $12 million fundraising LU’s academic programs Led Lakeland’s recent advocates that keep several boards of role in launching Played a significant needs of employers. connected to the

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In an advantageous move, Guthrie & Frey Water Conditioning and KH Water Specialists, two family-owned water conditioning companies out of Southern Wisconsin, partnered to share their experience and resources. “We’re looking at this as a partnership,” say Rob & Sue Frey, Co-Owners of Guthrie & Frey. “We’ve been servicing the same regions for years and have always been impressed with the way KH works with their customers.” The KH Water Specialists team, including former owner

and industry vet Kevin Hellenbrand, are staying on to share their expertise and top-notch customer service. “We’re looking forward to our shared future. Our residential and commercial customers can expect the same great service, products, and support they are used to, with some exciting new benefits.” Hellenbrand explains, referring to the new salt delivery options and increased number of service technicians in the area.

“We’re stronger together, and our services will reflect that,” says Frey. Visit gfwater.com.

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BizConnections BIZ PEOPLE

Advertising Section: New Hires, Promotions, Accolades and Board Appointments

FINANCIAL SERVICES

Reilly, Penner & Benton LLP Names Hoffman as New Partner.

Reilly, Penner & Benton LLP, a leading Milwaukeebased full-service CPA and business advisory firm, is proud to announce that Katie Hoffman, CPA, has been named a Partner in the firm effective July 1, 2021.

Katie has been in the public accounting field since 2008 and has significant experience in providing audit and attest services and consulting for public school districts and privately held entities, including contractors and builders.

Katie focuses her practice primarily on working with public school districts and privately held organizations, primarily construction firms and manufacturers.

EDUCATION

MSOE names Dr. Sheila Ross chair of Electrical Engineering & Computer Science Dept. Dr. Sheila Ross oversees MSOE’s largest academic department. Under her leadership, MSOE will continue expanding its artificial intelligence and machine learning educational offerings throughout all of its degree programs.

LEGAL SERVICES

Meissner Tierney Fisher & Nichols S.C. Welcomes McKenzie E. Tibbetts as an Attorney. Meissner Tierney Fisher & Nichols S.C. (MTFN) is pleased to welcome McKenzie E. Tibbetts as an attorney serving our transactional team. McKenzie is focusing her practice on business and corporate transactions and tax law.

60 / BizTimes Milwaukee JUL 19, 2021

BANKING

CONSTRUCTION

Chris Boland Named to Wisconsin Mortgage Bankers Association State Board of Directors.

North Shore Bank announced Chris Boland, Vice President Consumer Lending Manager, has been named to the state board of directors for the Wisconsin Mortgage Bankers Association. He serves on various boards in the Green Bay area.

CONSTRUCTION

Terry Miller Named VP of Field Operations

Terry manages all CCI field operations including the safety and quality control initiatives. He also responsible for leading the shop activities and selfperformed trade teams including carpentry, demolition, excavation, concrete, and masonry.

ENGINEERING CONSULTANT

GRAEF Is Excited to Welcome Justyce Dixon as Corporate Communications Leader. GRAEF, a multi-discipline, engineering, planning, and design firm is proud to welcome Justyce Dixon as corporate communications leader.

Dixon will build and maintain GRAEF’s strong reputation, brand recognition, and implement best practice strategy.

MANUFACTURING

Christian Kreuter Named Technical Sales Associate for LifeWise Ingredients

Christian is responsible for company growth by building relationships with new and current customers, ensuring exceptional customer service and identifying how LifeWise solutions meet their needs.

Homer Auge Named VP of Roofing Operations

Homer has been promoted from manager to VP of roofing operations. In this role, he will continue his proven leadership and management of CCI’s selfperformed commercial roofing teams while increasing preventative maintenance roofing services.

CONSTRUCTION

Terry Russell named VP of Project Operations

Terry has taken on the responsibility of leading CCI’s project management teams. His ability to bring people together will serve as an asset when working with each team to develop and implement efficient and effective strategies.

HEALTHCARE

Synergy Health Partners of San Diego Hires Cory Ampe as VP, Marketing Communications.

Cory Ampe has more than two decades of experience driving growth for healthcare, technology, and business-to-business organizations. As VP, Marketing & Communications, she directs all of Synergy Health Partners’ marketing, advertising, content, and communications efforts.

MUSIC COMPANY

Hal Leonard Names Chris Koszuta Vice President - Digital & eCommerce

Chris Koszuta has been promoted to the newly-created position of Vice President–Digital & eCommerce. In this new role, Koszuta will be overseeing several of the company’s websites, including Sheet Music Direct, ArrangeMe, and Sheet Music Plus.

CONSTRUCTION

Kevin Day Named VP of Business Development

As leader of CCI’s business development activities, Kevin will focus on the company’s strategic goals while strengthening community relations and providing oversight to the pre-construction and design teams.

EDUCATION

Mount Mary welcomes Julie A. Landry as VP for Diversity, Equity and Inclusion

In this new role on campus, Landry will support under-represented populations and educate students and employees to increase knowledge, understanding and skills related to DEI.

LEGAL SERVICES

Gimbel, Reilly, Guerin & Brown LLP Welcomes Attorney Megan Drury to the Firm

Megan L. Drury is an attorney in the family law department at Gimbel, Reilly, Guerin & Brown, LLP. Megan joined the firm in 2021 after graduating from Marquette University Law School (’21).

ANNOUNCEMENTS To place your listing, or for more information, please visit biztimes.com/bizconnect

JAKE HILL PHOTOGRAPHY

PAY IT FORWARD

Curt Reynolds and Capt. Steve Staneart from The Salvation Army ARC.

Curt Reynolds launches program to help men find steady work Curt Reynolds Director of transportation and logistics business Johnsonville, LLC Nonprofit served: Salvation Army of Milwaukee County Service: Advisory board member and founder of the Golden Opportunity Project

WHILE WORKING FOR A McDonald’s supplier in Minneapolis years ago, Curt Reynolds and his friend co-founded a partnership among the fast-food giant, his own company and the Salvation Army Adult Rehabilitation Center that helped men in recovery find and retain jobs.

The program – called Golden Opportunities, or Golden Opps for short – paired men coming out of addiction, incarceration or homelessness with mentors and a residential community to help them rebuild their lives, find gainful employment and pursue their Christian faith.

Reynolds recalled the success of that program: Three men were promoted to managers, while a McDonald’s owner-operator saved thousands of dollars in turnover costs due to the consistent labor.

Reynolds and his family moved from Minneapolis to the Milwaukee area in 2017 for him to join Johnsonville, LLC, where he is now director of transportation and logistics business.

Last summer – during the height of the nationwide protests and conversations about racial inequities following the death of George Floyd – Reynolds was talking with some friends from his church about the unrest. One of his friends asked the question: What can I do to help?

Reynolds shared his experiences from Golden Opps. His friends were enthusiastic about starting something similar in Milwaukee.

Reynolds connected with the Adult Rehabilitation Center at Salvation Army of Milwaukee County, where he serves as an advisory board member, to pitch the idea.

Since then, Golden Opps has launched in Milwaukee in partnership with Salvation Army and a handful of companies, including a McDonald’s owner-operator, a Culver’s owner-operator, Power Test, Inc. and PFlow Industries, with mentors: Brad Harrison, general manager of Marquette Sports Properties and Learfield IMG College; Mark Mill, retired tax partner of Sikich LLP; and Dan Silvey, director of Global Tax Associates, LLC. “It becomes a win-win,” Reynolds said. “It gives this individual an opportunity to get a job with benefits, working 40 hours a week or more, and then it also helps the employer out, because a lot of (places) are short on (finding) good employees. This individual also has the support of a mentor to walk alongside them.”

While the program currently operates under the auspices of Salvation Army, Reynolds said the group plans to establish its own nonprofit organization with a designated board of directors and executive director.

It’s also exploring partnerships with shelter and housing organizations – such as Serenity Inns and Milwaukee Rescue Mission – to connect the men it

serves with stable housing.

Long-term, Reynolds hopes the organization will acquire its own house, where the men could live with the help of a housing manager.

“Ultimately, we want to help these guys out of addiction and incarceration and get them on the road of recovery with a personal relationship with the Lord, so that they can come back and start working and be productive members of our society,” Reynolds said. n Interested in partnering with Golden Opportunities as a mentor or employer?

Contact Curt Reynolds at curtreynolds@msn.com.

LAUREN ANDERSON Associate Editor

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

biztimes.com / 61

BizConnections VOLUME 27, NUMBER 7 | JUL 19, 2021

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 | advertising@biztimes.com EDITORIAL: 414-336-7120 | andrew.weiland@biztimes.com REPRINTS: 414-336-7100 | reprints@biztimes.com

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SALES & MARKETING

DIRECTOR OF OPERATIONS Mary Ernst mary.ernst@biztimes.com COMMUNITY ENGAGEMENT / OWNER Kate Meyer kate.meyer@biztimes.com

EDITORIAL EDITOR Andrew Weiland andrew.weiland@biztimes.com ASSOCIATE EDITOR Lauren Anderson lauren.anderson@biztimes.com ASSOCIATE EDITOR Arthur Thomas arthur.thomas@biztimes.com REPORTER Brandon Anderegg brandon.anderegg@biztimes.com

One Gallon Joe on West National This undated photo shows One Gallon Joe, a bar that existed from 1960 to 1964 in the 700 block of West National Avenue in Milwaukee. The building itself was built in 1887 and was a former P.B. Best Brewery building. Prior to being One Gallon Joe, the building was the Kastle Rock Inn tavern. It was eventually razed to make way for I-94.

— Photo courtesy of the Milwaukee Public Library / Historic Photo Collection

COMMENTARY

Bucks rise shows benefits of teamwork DURING THE MILWAUKEE BUCKS’ exhilarating run to the NBA Finals, many have reflected on how far the organization has come in the last seven years and the impact its rise has had on the city.

The Bucks were the worst team in the NBA in 2014. The league indicated a new arena was needed to keep the Bucks in Milwaukee. Team owner Herb Kohl was ready to sell. Attendance at Bucks home games was terrible, and the team was irrelevant locally. About the only thing the Bucks had going for them was an intriguing rookie named Giannis Antetokounmpo.

We all know what happened next. Kohl sold the team to a group led by New York billionaires. Then the Bucks, led by team president Peter Feigin, launched an effort to build a new arena. In 2015, a financing plan for the arena was approved by the state Legislature and signed by then-Gov. Scott Walker. The project 62 / BizTimes Milwaukee JUL 19, 2021

cost was $524 million, with $250 million provided by taxpayers and the rest by Kohl and the new ownership group.

Naysayers said taxpayers shouldn’t pay for any portion of the cost of a sports venue for a team owned by billionaires. In an ideal world, that’s true. But Fiserv Forum is clearly a benefit for the Bucks and the community, and without it the Bucks wouldn’t be here and Milwaukee would be stuck with an aging, often empty arena and a dead neighborhood around it.

Fiserv Forum is the centerpiece of the Bucks’ Deer District development, which is transforming downtown Milwaukee. It’s been incredible to see 20,000 people gathering in the plaza in front of the arena to watch the Bucks play on TV. The Deer District was the hottest spot in Milwaukee before the COVID-19 pandemic, and it has regained that status this year. Establishments in and around the Deer District that suffered during the pandemic have gotten an incredible boost of business as crowds have returned during the playoffs with the lifting of COVID-related restrictions.

Unfortunately, Punch Bowl Social, which declared bankruptcy during the pandemic, has not reopened its Deer District location, a huge

REPORTER Maredithe Meyer maredithe.meyer@biztimes.com

DIRECTOR OF SALES Linda Crawford linda.crawford@biztimes.com CONTENT SOLUTIONS MANAGER Maggie Pinnt maggie.pinnt@biztimes.com ACCOUNT EXECUTIVE Paddy Kieckhefer paddy.kieckhefer@biztimes.com ACCOUNT EXECUTIVE Christie Ubl christie.ubl@biztimes.com ACCOUNT EXECUTIVE Dylan Dobson dylan.dobson@biztimes.com SALES ADMIN Gracie Schneble gracie.schneble@biztimes.com

ADMINISTRATION ADMINISTRATIVE COORDINATOR Sue Herzog sue.herzog@biztimes.com

PRODUCTION & DESIGN

REPORTER Alex Zank alex.zank@biztimes.com

GRAPHIC DESIGNER Alex Schneider alex.schneider@biztimes.com ART DIRECTOR Shelly Tabor shelly.tabor@biztimes.com

Independent & Locally Owned — Founded 1995 —

missed opportunity.

The Bucks still have a lot of work to do to complete development of the rest of the Deer District, including the vacant former Bradley Center site and Park East corridor land north of the arena. Construction of a hotel is expected to begin this year. Scenes on national TV of huge crowds in the Deer District during the playoffs should help build buzz to attract more businesses there.

Fiserv Forum and the Deer District were the result of a public-private partnership, legislation with bipartisan support and public funding shared by the state, county and city, all of which benefit from the Bucks’ presence.

It’s amazing what can be accomplished with that level of cooperation and teamwork, and it’s a pity we can’t solve other state and local problems the same way. n

ANDREW WEILAND EDITOR

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

5 MINUTES WITH…

VALERI LUCKS

Founder and chief executive officer, PIE Inc. MILWAUKEE-BASED PIE INC., owner of Honeypie Café, Smallpie, Palomino and Honeypie Bakeshop, used the COVID-19 pandemic’s disruption as a starting point to shift from a traditional “tipped-employee wage” to a pay structure based on minimum wage with a fair, non-discriminatory tip pool for all employees. The move is part of a larger push across the restaurant industry to address historic pay disparities between front-ofhouse and back-of-house service workers. BizTimes Milwaukee reporter Maredithe Meyer recently caught up with the group’s CEO, Valeri Lucks, to talk about the change and its effect on hiring efforts.

WHAT LED TO THIS DECISION? “We’ve been wanting to do something like this for quite a long time.

It’s been apparent to us for many years that the pay structure in the restaurant industry isn’t great, and you’ve seen different restaurant groups over the last five-plus years trying to address that disparity through eliminating tips so they can raise back-of-house wages and service charges and other things folks have tried.

“We’ve been trying to figure out a solution to this ourselves, but we didn’t have the opportunity until the pandemic happened because we lost 75% of our workforce and had to change our business model entirely.

It gave us this window of opportunity to wipe the slate clean and start over, so we took that chance. As we started to rebuild from the pandemic, we didn’t want to go back to the old system. We found this new system – higher wages for front of the house and tip pooling – was working very well. As we reopened, we redefined our work so we didn’t have to return to an old system we thought had been broken for a long time.”

HOW DOES TIP POOLING WORK? “We take all the tips that are taken in during a pay period, put them into one big pot, and that gets divided equally among everyone who worked in that block of time based on their hours worked. It adds an additional number of dollars to their base pay.

That way, the entire team is sharing in the tip that comes in, which we’ve found to be a great thing because if you think about it, the server’s bringing your sandwich to the table, but there’s at least six or eight people that are involved in getting that sandwich made and brought to you, and they really get left out of that equation when the tipping is done.”

WHAT’S THE IMPACT OF THE NEW PAY STRUCTURE SO FAR? “Operating with a smaller team during the pandemic, it really gave us the chance to restructure our work to be more of a team-based operation, as opposed to that traditional divide of front- and back-of-house.

“As we reopen Honeypie and expand our hours at the other restaurants, we’re recruiting and hiring. We’re finding that this model is aiding us in recruiting. It’s helping us in the back of the house because it’s getting more money to the kitchen. From a front-of-house standpoint, we’ve found that for people who are professionals – and who like to be in this industry because they have a passion for food, they have a passion for service – this professionalizes the role in a way that shifts the power back to the server and service. It’s not just working for $2 per hour with your pay being entirely determined by a guest who you don’t have a lot of control over. For a server to truly make a lot of money on the tip system, they have to work very high-volume shifts – Thursday nights, Friday nights, weekend brunch. Those hours are not conducive to a ton of people’s lives. … By using this tip pool, you can essentially make the same money on a Tuesday afternoon that you would on a Friday night.” n biztimes.com / 63

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