BizTimes Milwaukee | September 3, 2018 by BizTimes Media

MEET THE NEW DIRECTOR OF PORT MILWAUKEE 14 BANKS EASE C&I LENDING STANDARDS 24 WISCONSIN VENTURE CAPITAL COMMUNITY IS GROWING 28

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SHAPING THE FUTURE Manufacturing Matters! 2017 will take place at the Hyatt Regency in Milwaukee on February 23rd, 2017. The theme of this year’s conference is Shaping the Future, and the conference features 18 breakout session in six tracks including: Growth • Operational Excellence • Human Capital Management C-Suite Essentials • Technology & innovation Wisconsin Manufacturing P L AT I N U M S P O N S O R

As workforce challenges and trends are on the minds of most manufacturers, we are pleased to announce this year’s keynote presenter is Kip Wright, Senior Vice President of Manpower, North America. Kip will discuss G O key L D workforce SPONSORS trends and what manufacturers can do to secure and develop their current and future workforces.

Thursday, October 4, 2018 • 7:00 - 11:00 AM Generac Power Systems - Corporate Headquarters Kip Wright

Senior Vice President of Manpower, North America

Unlocking Success in Your Company It’s more than Tariffs, Technology and Talent REGISTER TODAY! www.manufacturingmatters.org

Success in manufacturing requires more than dealing with and navigating through the everyday challenges facing manufacturers in southeastern Wisconsin. It also requires good leadership, a clear vision, a commitment to innovation and much more. Join us for the annual Next Generation Manufacturing Summit on Oct. 4, featuring presentations and a panel discussion from CEOs of southeastern Wisconsin based manufacturing companies. These CEO’s will share their company’s strategies for success, along with the whys behind their best practices for competing in a global marketplace and how they strive to be world-class manufacturers in the 21st century. Confirmed presenters/panelists: • Aaron Jagdfeld – President & CEO – Generac (1) • Keith Coursin – President – Desert Aire (2) • Paul Woelbing – President – Carma Laboratories, Inc. (3) • Rich Simonson – COO – Carma Laboratories, Inc. (4)

Moderator - Arthur Thomas, manufacturing reporter, BizTimes Milwaukee (5)

The program continues with four concurrent roundtable discussions on a variety of topics including: • Transformational productivity • Company culture • Veterans in the workplace • Five ways manufacturers can stay ahead of technology disruption • Exporting as a strategy

• Entrepreneurial life cycle of a business: how to transition to a non-family owned mid-sized business • Industry 4.0: The future is here, just not evenly distributed • Foxconn supply chain – An insiders perspective • Strategies in talent attraction and retention

• Black Box thinking: A method to develop new products and solutions • Leadership • And more

SUPPORTING:

LOCALLY OWNED FOR 23 YEARS

» SEP 3 - 16, 2018

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BizTimes Milwaukee (ISSN 1095-936X & USPS # 017813) Volume 24, Number 11, September 3, 2018 – September 16, 2018. BizTimes Milwaukee is published bi-weekly, except monthly in January, July and December by BizTimes Media LLC at 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120, USA. Basic annual subscription rate is $42. Single copy price is $3.25. Back issues are $5 each. Periodicals postage paid at Milwaukee, WI and additional mailing offices. POSTMASTER: Send all UAA to CFS. NON-POSTAL AND MILITARY FACILITIES: Send address corrections to BizTimes Milwaukee, 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120. Entire contents copyright 2018 by BizTimes Media LLC. All rights reserved.

Contents

4 Leading Edge 4 NOW BY THE NUMBERS 5 BEHIND THE SCENES 6 BIZ POLL WHO’S ON THE BOARD 7 QUOTE/UNQUOTE 8 THE FRANCHISEE 9 FRESH DIGS 10 BIZ COMPASS

12 News 12 V ETTER DENK PARTNERS FORM SEPARATE BUSINESSES. 14 THE INTERVIEW

16 Real Estate 30 Strategies 30 MANAGEMENT Cary Silverstein

Special Report

COVER STORY

31 COACHING Susan Marshall 32 TIP SHEET

34 Biz Connections 34 NONPROFIT 35 PERSONNEL FILE 36 GLANCE AT YESTERYEAR COMMENTARY

24 Banking & Finance

Banks have loosened some of their business lending standards and venture capital activity is picking up statewide.

37 AROUND TOWN 38 MY TOUGHEST CHALLENGE

HELPING BUILD WISCONSIN

414-273-3507 | townbank.us JAY MACK President & CEO

JOHN JOHANNES Executive Vice President, Commercial Real Estate

GEORGE JUSTICE Senior Vice President, Commercial Banking

biztimes.com / 3

Leading Edge

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

NOW

Madison company tops Inc. 5000 list By Molly Dill, staff writer Brad Hollister has never dreamed small about his Madison logistics technology startup SwanLeap. But even he is amazed by the company’s meteoric rise to the top of the 2018 Inc. 5000 list, which was released recently. The annual list by Inc. magazine ranks the fastest-growing private companies in America, calculated

based on percentage revenue growth from 2014 to 2018 for companies with greater than $100,000 in 2014 revenue and greater than $2 million in 2017 revenue. When Hollister and co-founder Jason Swanson started working on the new company, originally called ClearView Audit LLC, out of his Elkhart Lake basement in 2013, he

BY THE NUMBERS

Wisconsin’s economy added

28,400

private-sector jobs during the first half of 2018, according to the U.S. Bureau of Labor Statistics. 4 / BizTimes Milwaukee SEPTEMBER 3, 2018

had a goal posted on the wall: get to 100,000 users and SwanLeap would become a billion-dollar company. “As we were programming, we knew that we were doing something extraordinary,” he said. While it hasn’t reached $1 billion yet, Hollister is projecting $400 million in 2018 revenue, which puts its three-year growth rate at more than 75,000 percent. SwanLeap has grown to 80 employees, 50 of whom are based in Madison. And now it’s been ranked by Inc. as the fastest-growing private company in America. “We’ve developed a product, a solution really, that every company in the world needs, and that’s artificial intelligence and visibility in shipping,” he said. “And the current legacy providers really don’t have that ability to support the needs of the market.” Bringing AI and real-time analytics to the logistics sector has resulted in huge cost savings for SwanLeap customers, which has driven heavy demand for its platform. “Jim Rogan was our first customer and for a 34-store company, (Racine-based) Rogan’s Shoes is incredibly advanced and they needed the ability to automatically decide how to ship orders,” Hollister said. “The result of our service … was a 50 percent reduction in shipping costs.”

On average, SwanLeap’s software allows companies to save 27.6 percent on shipping costs. Other customers include Madison dehumidifier and HVAC system manufacturer Aprilaire, Madison appliance manufacturer Subzero Group Inc. and Elgin, Illinois-based Fisher nuts producer John B. Sanfilippo and Son Inc. Now based out of a 10,000-square-foot Madison office, SwanLeap has largely been self-funded by the founders, with former Gov. Tommy Thompson providing some outside investment. Hollister, 40, previously worked as a freight broker and for a publicly-traded trucking company, and he saw that some of the existing logistics technology was antiquated. With the advent of the cloud, artificial intelligence and other emerging technology, he was able to create a platform that was far more automated than some legacy systems, he said. “We saw an opportunity in the market that wasn’t being filled,” Hollister said. “We heard Rogan’s Shoes loud and clear; we knew exactly what they wanted.” SwanLeap was first listed on the Inc. 5000 in 2017, when it was ranked at No. 55. Its 2016 revenue was $8.4 million, and as of 2017 its three-year growth rate was 5,779 percent. In 2017, SwanLeap had 37 employees. n

BEHIND THE SCENES

ARTHUR THOMAS

BEHIND THE SCENES Hayat Pharmacy By Arthur Thomas, staff writer

n an industry dominated by giants like Walgreens and CVS, Milwaukee-based Hayat Pharmacy is carving out its own niche by placing an emphasis on services and lower prices. The independent pharmacy chain started in 2011 and now has 11 locations and 160 employees. The company delivers prescriptions to about 1,000 customers per day, making stops at homes, schools and workplaces. Hayat also offers personalized packaging with medications separated by day and time to cut down on the need for multiple pill bottles. And most of the pharmacyâ&#x20AC;&#x2122;s locations have private rooms for vaccinations. n

Behind the counter at Hayat Pharmacy, 1919 W. North Ave.

Packaging specialist Staci Robbins fills a bubble pack tray with medication.

Chief clinical officer Dimmy Sokhal demonstrates an immunization.

A label is placed on prescription medication.

Lizamarie Bonet puts medication in a Hayat bag.

biztimes.com / 5

Leaders are Made, Not Born. Who is Your Organization’s Next Leader?

Leading Edge GenNext BIZ POLL A recent survey of BizTimes.com readers. Who will win the race for governor in November? Scott Walker:

Tony Evers:

60%

40%

BizTimes Leadership Academy: GenNext This is a unique three-session program, designed to support the next generation of leaders with tools that will support them in their current and future roles. The success of our organizations will rest with the next generation of leaders - those who are 40-something or younger and known as Generation X and Millennials. This group of leaders is purposeful, adaptable, and openminded to new ideas. They have a different set of ideologies influenced by rapid technological change, shifts in societal values, and appear to have different values when it comes to work.

Sessions begin October 11, 2018 Register today at biztimesleadershipacademy.com

6 / BizTimes Milwaukee SEPTEMBER 3, 2018

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

Who’s on the Board?

ASSOCIATED BANC-CORP • William Hutchinson, chairman of Associated Banc-Corp. • John Bergstrom, chairman and chief executive officer of Bergstrom Corp. • Michael Crowley Jr., former chairman, president and CEO of Bank Mutual Corp. • Philip Flynn, president and CEO, Associated Banc-Corp • R. Jay Gerken, former president and CEO of Legg Mason Partners Fund Advisor LLC. • Judith Greffin, former executive vice president and chief investment officer for Allstate Corp. • Robert Jeffe, former co-chairman and co-founder of Hawk-

wood Energy • Eileen Kamerick, former chief financial officer of Press Ganey Associates • Gale Klappa, chairman and chief executive officer of WEC Energy Group • Richard Lommen, chairman of Courtesy Corp. • Cory Nettles, founder and managing director of Generation Growth Capital Inc. • Karen van Lith, former CEO of MakeMusic Inc. • John (Jay) Williams, former president and chief executive officer of Milwaukee Public Museum Inc.

“ QUOTE

QUOTE UNQUOTE

”

unQUOTE

PE G G Y T ROY

P R E S I D E N T & C E O , C H I L D R E N ’ S H O S P I TA L A N D H E A LT H S Y S T E M I N C . As president and chief executive officer of Children’s Hospital and Health System Inc. for the past decade, Peggy Troy has overseen the organization’s growth as it has added locations and clinics, ventured into foster care and adoption services, and launched its own health insurance organization. At a recent Independent Business Association of Wisconsin meeting, Troy discussed the history of the organization, future plans at the Milwaukee Regional Medical Center campus and how the health system is tackling its big vision of ensuring Wisconsin has the healthiest children in the nation. n

“When people have insurance, they will seek out care more readily and not wait until their condition is catastrophic. They will get their well-baby visits; they will get their immunizations and pre-natal care.”

“You, as business owners, know that the (health care) costs are back-breaking to your businesses. I think you have to hold us all accountable in health care to ensure we are really efficient and effective, to make sure the value is there. We have to be very mindful of ‘we can do things in a more efficient way.’”

“We’re careful; we try not to launch off into things we know we can’t do well. That is the hardest part of my job, deciding what not to do, because you want to do everything for kids.”

“Our motto at Children’s is that we want to be early adopters (of digital innovations). We don’t have the money to be on the front end of innovation, but we can be early adopters and embrace it once we know that adoption curve is going to happen.”

“What we now know is that only 10 percent of your health is affected by health care delivery itself. Twenty percent is the world around us. Thirty percent is your genetics, what you were born with. And 40 percent of your health outcome is predicted by the choices that you make; what you eat for food; where you live. So we need to take into consideration all these things.”

biztimes.com / 7

Leading Edge

BIZTIMES MEDIA – Like us

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FRAN C H I S E E

BOB PABELICK DENTAL FIX RX THE FRANCHISE: Davie, Florida-based Dental Fix Rx provides on-site dental equipment repair for dentists. Established in 2009, Dental Fix has grown to about 115 franchisees in 37 states.

“I was looking for something that was techy, not food, something where I didn’t have to have an office or storefront. And I didn’t want to have employees.”

NOVEMBER 2015 After losing two manufacturing engineering jobs within 17 months, Pabelick decides to look into franchising as a career path with the help of FranNet franchise consultant Perry Zukowski. WINTER 2016 Pabelick travels to the Dental Fix headquarters for a discovery day, obtains an SBA loan to start the business, purchases and outfits a repair vehicle, and attends online and in-person repair training. APRIL 2016 Dental Fix officially launches in the Milwaukee market from Pabelick’s New Berlin home. By the end of the year, it has grown to more than 100 dentist office customers. JUNE 2018 After meeting several milestones, Dental Fix Milwaukee is on track to receive a 5-star rating from corporate, which means Pabelick will be able to help train other franchisees in ride-alongs.

Pabelick is based out of his New Berlin home, and drives his Dental Fix truck to repair sites.

8 / BizTimes Milwaukee SEPTEMBER 3, 2018

Pabelick fixes a piece of equipment at a dental office.

THE FRANCHISE FEE The Dental Fix franchise fee is $30,000, and Pabelick spent another $15,000 for training and $60,000 for a van, inventory and equipment.

“I was in manufacturing for 40 years, so I did everything from machining to sales. You don’t need to have experience doing it, you just have to have the ability to be mechanical.”

“The bigger companies, I think there’s a change coming in the industry. They don’t want to be in the service business, because if their service guys aren’t working, they’re still paying them benefits and salary. I get paid by the job, so…it’s just a better model for the dentists and I don’t have set hours. I’m available 24/7.”

FRESH DIGS

LILA ARYAN PHOTOGRAPHY

FRESH DIGS

HANSEN REYNOLDS LLC OW N E R / DE V E LOPE R : Commission Row LLC, Joseph Property Development LLC

A RC H I T E C T: James Piwoni of American Design Inc. C O N T R AC T O R : N/A C O S T S : N/A C O M P L E T E D : Building constructed 1895; renovation and penthouse/parking garage addition 2009

LAW FIRM Hansen Reynolds LLC recently relocated to an office space more than twice the size of its previous location. The 11,052-square-foot office occupies the fourth-floor penthouse space of a 124-year-old building at 301 N. Broadway, just a couple blocks from its previous 5,000-square-foot space at The Landmark Building. Growing since its 2010 founding from four attorneys to 19 attorneys and six staff members across four offices, Hansen Reynolds was ready for an expansion. The penthouse and a parking garage were added to the building in 2009. Hansen Reynolds’ office previously housed software compa-

ny Digital Measures, and all it needed was furniture and a new paint job before the law firm moved in May 1. “We wanted to stay in the Third Ward because we thrive in unique, creative and vibrant surroundings,” said founder Tim Hansen. The open concept office has communal areas, but also boasts individual offices for each attorney. One of the conference areas is a mock trial room with auditorium-style seats and a large display screen. A 2,000-square-foot exterior deck wrapping around the south and east sides of the penthouse can be used for professional, social and philanthropic events. n – Maredithe Meyer biztimes.com / 9

Leading Edge

@BIZTIMESMEDIA – Real-time news

BIZ COMPASS

Why do good

EM PLOY EE S LEAVE?

MARKLEIN 1 BILL

Founder and chief executive officer, Employ Humanity LLC

“Good employees sometimes leave because their employer was doing all the right things. This starts with leadership establishing a workplace culture with the mission of creating better versions of people and providing resources and a path to achieve individual goals in work and life.”

2 PRAVEEN RAO

Digital solutions leader - North America, IBM

“Star employees often leave mainly because of the company’s culture: 1) when the corporate culture encourages mediocrity in such a way that it offers no appreciation or reward for going the extra mile or 2) when the culture is hyper measurement-oriented, leaving employees feeling suffocated from doing the right thing.”

3 DAVE LIBERT

Interim executive director, Sweet Water

“Good employees leave because they are not being heard, lack professional growth opportunities or can’t get their work done at a quality level. The best way to frustrate a good employee is to not get them the answers they need to move the work forward.”

WELHOUSE 4 DIANE

Executive director, NARI Milwaukee Inc.

“Leaders need to genuinely care about their people. Employees want acknowledgment, empathy and opportunities to grow and develop their confidence and skills. They’re looking to be challenged and want to be creative. If they’re not getting that, they leave. Leaders need to create and foster a culture where everyone can grow to be their best.”

5 DON LAVRENZ

President, The Industrial Controls Co. Inc.

5 10 / BizTimes Milwaukee SEPTEMBER 3, 2018

“Because employers do not eliminate bad employees. The workplace is now an environment where employees expect everyone to contribute at their same level and to work together. We’ve seen that if someone is a ‘bad egg’ or a low performer, good employees will go somewhere where they feel they have other high performers around them. It allows the team to be more successful.” n

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BizNews FEATURE STORY

John Vetter and Kelly Denk

Vetter Denk partners form separate businesses Made move after evaluation process By Andrew Weiland, staff writer JOHN VETTER and Kelly Denk, the founding partners of Vetter Denk Architects Inc. in Milwaukee, recently formed separate businesses. The move ends their 33-year partnership (Vetter Denk was formed in 1985). But the two say it is an amicable split and they remain friends who will continue to collaborate with each other. “The relationship we’ve developed over 33 years, I look at John as more of a brother than a business partner,” Denk said. Vetter’s firm, Vetter Architects, remains at the former Vetter Denk office space in Walker’s Point. It will focus on providing design and construction services for unique single family homes, and development projects that make a significant neighborhood impact, even if they are not large projects. Denk’s firm, Denk & Co. LLC, is based in Milwaukee and provides architecture and real estate consulting. “I’m helping people realize opportunities with the (real estate) assets that they have, bringing some experience and knowledge base to projects that need it,” 12 / BizTimes Milwaukee SEPTEMBER 3, 2018

Denk said. Vetter and Denk made the decision to go in different professional directions after undertaking an evaluation process they initiated with Karl Williams, a strategic planning and transaction facilitator and the chief executive officer of Waterstone Consulting Inc. “John and Kelly contacted me earlier this year with a request that I facilitate a professional alignment process for them,” Williams said. “They’ve always enjoyed a close personal relationship and wanted to take a close look at their company and make sure their professional roles and visions were aligned.” The first step was for Vetter and Denk to each do a skills and attributes survey to identify their management characteristics. Then they did interviews with Williams to identify their individual professional interests, goals and visions. “After that, the three of us met and reviewed those results together and that’s when the idea (arose) that two separate companies may work better than one,” Williams said. “After John and Kelly made the decision to form two new com-

panies, they asked me to manage the process of reconciling their interests in existing ventures and transitioning to Denk & Co. and Vetter Architects.” Vetter said he and Denk enjoyed working through the process with Williams to determine their professional future. “I highly recommend Karl to anyone in a similar situation,” he said. Williams said he has worked with other business partners in similar situations who want to continue their relationship but also feel a need to go in different directions. There’s a way to separate amicably without a big argument, he said. “A lot of people just don’t know how to get there,” Williams said. “You can be real creative in the process and it can be productive.” Vetter and Denk met early in their careers when Vetter was designing and building a home for his brother. Vetter went to Cedarburg Lumber Co. Inc., where Denk was working, to set up a commercial account. Denk was assigned to be Vetter’s account representative. Later, at the job site, Denk pointed out to an embarrassed Vetter that he didn’t have any headers for the window frames. That story partially demonstrates the strengths and weaknesses Vetter and Denk had at that time. “We had completely opposite strengths and weaknesses,” Vetter said. Vetter’s strength was his big picture, grand architectural vision. Denk’s expertise was in the details of how buildings actually came together in construction. “It was like the poet and the pragmatist,” Vetter said. The two hit it off immediately. After building the home for his brother, Vetter booked a few more single-family home projects. He asked Denk to leave his job and join him as a partner, and Vetter Denk Architects was born. For the first 15 years of the business, Vetter Denk was strictly an architecture firm focused on custom-designed single-family homes. Then, around 2000, the com-

pany branched out into doing some of its own developments that incorporated the firm’s design philosophy, that excellence in architectural design could improve people’s lives. Its first major development projects were in the Beerline redevelopment area, an initiative led by the City of Milwaukee, in what is now the North Commerce Street area. Vetter Denk was picked by the city in several RFP competitions to do residential projects in that area, which established the company’s development reputation. The firm also designed the Booth Street staircase and the Milwaukee Rowing Club building along Commerce Street. The pair said they learned a lot from adding development to the company’s repertoire. “That experience of working as the architect and the developer rounded out how we feel about architecture,” Denk said. “It made us better architects.” Vetter Denk made another big splash in downtown Green Bay. A fan of their work from the Green Bay area suggested they consider the city. When they took a look at downtown Green Bay, they saw an area that lacked vibrancy, but was something of a blank slate that presented a unique opportunity to make an impact. Vetter Denk provided a comprehensive vision to the city for redeveloping the downtown Green Bay waterfront. That vision included the redevelopment of the site of the Port Plaza Mall, which closed in 2006, and the addition of a walkway and housing along the Fox River. “We proactively put together a collective vision for the Green Bay waterfront and redevelopment of the former mall site,” Vetter said. “(At that time) there was absolutely no one living on the waterfront in downtown Green Bay.” Vetter Denk developed the Riverfront Lofts condominiums on the Fox River, started the redevelopment of the former Younkers store into the WaterMark building and partnered with Boston-based

PRESENTS: Vetter Denk established itself as a development firm with several projects along North Commerce Street in Milwaukee.

2018

FRIDAY, NOVEMBER 2, 2018 7:30AM - 9:30am | Italian Community Center A private residence in Elm Grove designed by Vetter Denk.

Trauma’s Effect on Milwaukee’s Workforce Psychological trauma knows no boundaries, damaging individuals in urban and rural areas and harming the social and economic systems in which they live. In the workplace, trauma often translates to absenteeism, difficulty establishing professional relationships and poor decision making. Learn more about trauma from Dr. Mike Lovell, president of Marquette University and Amy Lovell, president of REDgen, and see how you can help guide our community toward solutions. Immediately following the Lovells’ presentation, we will present the Nonprofit Excellence Awards.

A private residence in Chenequa designed by Vetter Denk.

Stoss Landscape Urbanism on the design of the CityDeck river walk. The firm’s vision and those projects helped to spark the revival of downtown Green Bay, but there were also some setbacks. The WaterMark project included the Hagemeister Park restaurant, the Children’s Museum of Green Bay and office tenant C.H. Robinson. But the project ran into financing problems, in part from the Great Recession credit crunch, according to Green Bay Press Gazette reports, and the building was sold to another developer. Recently, Foxconn Technology Group announced that it plans to buy the WaterMark building and establish an innovation center there. Other notable Vetter Denk projects included the redevelopment of the former C. Reiss Coal office building in Sheboygan into a residential building.

Vetter and Denk said they are proud of what they accomplished together, look forward to working on more interesting projects in the future, and may collaborate on some. “When I have an opportunity that fits John’s skillset, I’m definitely calling him up,” Denk said. The recent surge in apartment development in the downtown Milwaukee area has been great for the city, but many of the projects have a similar architecture style, Vetter said. He says his firm will work on projects at a higher level of design. “We’re going to focus on self-initiated, high-impact projects,” he said. “Projects that are smaller in nature, which may get overlooked by traditional developers, but can make a serious impact on neighborhoods. We want to provide a refreshing alternative to the marketplace.” n

Final call for nominations Nominate the people and for-profit organizations making a positive difference by donating their time, talent and treasure. Nominate the nonprofit organizations and executives making the region a better place to live, work and play. Self-nominations are encouraged! Winners will be recognized at the awards program on November 2nd.

biztimes.com/npawards Nomination Deadline: September 6, 2018

PLATINUM SPONSOR:

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BizNews

the

Interview

ADAM SCHLICHT planned for his career to focus on international children’s wel-

fare issues until he got the opportunity to work at the Saint Lawrence Seaway Development Corp. A position in IT management and security led to work in emergency response coordination and ultimately, leading regional efforts for the seaway. The Oak Creek native got the chance to return home this summer when Milwaukee Mayor Tom Barrett named him director of Port Milwaukee. BizTimes reporter Arthur Thomas talked with Schlicht recently about his vision for the port. What attracted you to this job? “Professionally, I wanted to come home. In my work on the Great Lakes before I came to the port, Milwaukee has some of the best professionals. The dedicated team here and the tenants here are some of the best that I’ve seen on the Great Lakes…. The previous port director, Paul Vornholt who is now chief of staff to the mayor, I think he left the port with an incredible foundation. … I think that freed me up as a younger port director to really try to innovate in the marketing space and the business development space because the port is on such an excellent foundation. “I’ll share one personal note, and I haven’t been hesitant to share this, my nephew Theo passed away at six months earlier this year. … the amount of community support we received and interest and the love and all of the concern that the greater Milwaukee area showed for baby Theo was overwhelming. To have this offer to join the port and to be an economic catalyst as I can as port director, I find it on a personal level, my way of saying ‘thank you’ and hopefully giving back to the community, as well, through public service.”

What are the chances of getting intermodal service to come back to the port? “We’re optimistic. One of the things that we do here is making sure that we have world-class transportation options and alternatives available to people that want to do business in the port of Milwaukee. I can tell you just in my first week on the job I see that our staff has been thoroughly engaged on all intermodal possibilities, inclusive and exclusive of Foxconn (Technology Group). I think the intermodal reality is possible and I can tell you what I’ve seen is we’re working with our city partners, our state partners to make that a reality.”

LILA ARYAN PHOTOGRAPHY

Do you think people are aware of all that goes on at the port?

Adam Schlicht Port director Port Milwaukee Employees: 19 city.milwaukee.gov/port 14 / BizTimes Milwaukee SEPTEMBER 3, 2018

“Certainly not. I’m not ashamed to admit that a bias that I bring into the port is that we can do a better job of making sure that the everyday citizen knows why this is important. ... I think that economic impact can be lost on the everyday citizen and some of that might be geographic. We’re under the Hoan Bridge. Not a lot of people look under the Hoan Bridge and say, ‘What is that salt pile and why is that important?’”

What is your vision for five to 10 years from now for the port? “Ideally, we can grow tonnage, continue to work efficiently and safely in a way that allows us to give back even more to the city; that’s something that’s really important. I think offering an intermodal solution through Port Milwaukee is not only important for the work that we do in southeastern Wisconsin, but that will be a solution that is an opportunity for the entire state and I’m idealistic and optimistic about what we can accomplish with an intermodal solution here at the port.” See more from The Interview at biztimes.com/2018/schlicht n

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

8 4

S. KINNICKINNICK AVE.

S. RO BIN SO NA VE

YS BA T.

WHO OWNS THE BLOCK? 1 2121 S. Kinnickinnick Ave. Owner: Kevin Schmoldt. The condominium units on upper levels are individually owned. Retail tenants: Southern Lakes Physical Therapy, Subway, Verizon, Barre District, State Farm

5 2149 S. Kinnickinnick Ave. Owner: Urbane Properties LLC, registered to Thomas Wang Tenant: Lost Whale 16 / BizTimes Milwaukee SEPTEMBER 3, 2018

2 2130 S. Kinnickinnick Ave. Owner: Hamburger Lofts LLC, registered to James Wiechmann Tenants: Slated for a 183,450-square-foot, six-story, mixed-use development with 144 apartments.

6 2155 S. Kinnickinnick Ave. Owner: Leaf Property Investments LLC, registered to Sam Leaf Tenant: The Backyard

3 2133 S. Kinnickinnick Ave. Owner: SK Development Group LLC Tenant: Vacant

7 2202 S. Kinnickinnick Ave. Owner: KK Music LLC, registered to Nora Pecor Tenants: Vue Apartments

4 2139, 2141, 2143 and 2147 S. Kinnickinnick Ave. Owner: Urbane Properties LLC, registered to Thomas Wang Tenant: Private homes

8 2141 S. Robinson Ave. Owner: Milhaus Development LLC Tenants: Switchweld Apartments

CORRINNE HESS

SOUTH KINNICKINNICK AVENUE FROM EAST BECHER STREET TO EAST WARD STREET

JON ELLIOTT OF MKE DRONES LLC

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Nomination Deadline: October 26, 2018

BAYSIDE TOWER Cobalt Partners LLC is proposing a $200 million project along I-43 in the Village of Bayside that would include a 30-story apartment tower, grocery store and office space. Milwaukee-based Cobalt has assembled nearly 28 acres north of West Brown Deer Road, east of I-43 and west of Port Washington Road for the project, to be called OneNorth. Plans call for about 270 apartment units in the tower, 60,000 to 100,000 square feet of office space, and 72,000 square feet of retail. The redevelopment project would include the demolition of several existing office buildings on the site. The project could receive some public financing from Bayside. OWNER: Cobalt Partners LLC SIZE: 30-story tower COST: $200 million

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UGLY BUILDING: 2170 S . R O B I N S O N AV E . In 2016, Indianapolis-based Milhaus Development LLC began redeveloping a former industrial site one block west of South Kinnickinnick Avenue, Bay Viewâ&#x20AC;&#x2122;s main commercial stretch, into luxury apartments. By spring 2017, residents began moving in to the $40 million project. The Stitchweld apartment complex has transformed the west side of South Robinson Avenue. But across the street from the apartment complexâ&#x20AC;&#x2122;s shiny bicycle racks and fire pits is a two-building eyesore. The property at 2170 S. Robinson Ave. is owned by Ronald Wojciechowski and Donald Mueller, and assessed by the city for $246,200. The larger of the two buildings was constructed in 1946 and is 3,696 square feet. The smaller building is older, built in 1918, and is 1,389 square feet. Both are listed for sale.

biztimes.com / 17

STORY COVER

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18 / BizTimes Milwaukee SEPTEMBER 3, 2018

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DIAMOND IN THE ROUGH “I decided to focus, for now, on the downtown area of Racine, knowing that Mount Pleasant is more developed and closer to the Foxconn site, and that Kenosha is ahead of Racine in development,” Ryan said. “Racine really caught my eye as the next up-and-coming location. The harbor

is absolutely beautiful and downtown has all of the makings for a great center of town for eating, shopping and entertainment.” Ryan and his partners, Brittany Seely of Pasadena, California-based New Arbor Development LLC and Todd Bowden of Monrovia, California-based Bowden Development Inc., have formed Mt. Royal Investment Group for their projects in Racine. Mt. Royal’s first Racine purchase was in July, the former YMCA building at 401 Wisconsin Ave. The group has also purchased a three-story, mixed-use building at 222 Fifth St., giving it control of the entire block. Mt. Royal originally planned to tear down the YMCA building and construct a new five-story, 150-unit apartment building at the site. It has since decided instead to renovate the property into 52 market-rate apartments. Adding market rate multi-family housing in Racine will be a change for the city. The majority of rental housing there is low-income. Preserving the YMCA building also means preserving its history, which includes a historic four-lane bowling alley in the basement, Ryan said. “Down the road, we want to do something big, like 160 units, but right now, we think this is what makes sense for this property and what is good for that corner,” Ryan said. Mt. Royal has also

SHELLY TABOR

CONTRIBUTED

ool, m’s sch n at Sa a y did R d T im on. Sam Sam an f Oreg o an y y R it rs T im ive ent of the Un rnia, , presid fo li im a T r C h fo dia, as researc in Arc a cine w uc tion ze d R a li a Cons tr re ng. d ti n s a e v 7 1 in 20 be in July should his dad where

he first time California native Tim Ryan visited Racine was on Jan. 17. It was cold but sunny. Snow covered the ground. “There were abandoned stores downtown, and we couldn’t get a cup of coffee anywhere,” Ryan said. “My business partner hated it. I said, ‘No, this is the point. It’s perfect.’” Ryan, president of Arcadia, California-based Tim Ryan Construction Inc., is part of a three-person development team from the Los Angeles area that recently purchased four commercial buildings in downtown Racine and plans to close on two more in October. Recently, some local and national developers like Ryan have begun to take notice of Racine after hearing about the Foxconn Technology Group development in nearby Mount Pleasant last year, when the Taiwanese manufacturer announced it was going to build a $10 billion complex and create 13,000 jobs. After many false starts, city officials are hopeful this newfound attention will give Racine, which has struggled for years with poverty, high unemployment and crime, the jumpstart it needs to get back on track.

biztimes.com / 19

SHELLY TABOR

STORY COVER

Part of the former Horlick Malt complex in Racine.

purchased the Main Street General Store building at 302 Main St., which was operated as a general store for 40 years until it recently closed. Ryan said he and his partners plan to renovate the 3,000-squarefoot historic building and re-lease the space. The team will do the same at a vacant commercial building at 411 Main St. that currently has residential apartments on the upper floors. Ryan will close on two more buildings near Monument Square, at Main and Sixth streets, in October. “These are very nice buildings that need our expertise in leasing up and helping the downtown revive,” he said.

A FAMILY AFFAIR Mt. Royal has Ryan’s son Sam, 19, to thank for its investment in Racine. Sam was home from the University of Oregon in the summer of 2017, when his dad told him to find a city for him to invest in. Because of the cost of doing business in Los Angeles, Tim Ryan began looking for investment opportunities elsewhere in 2008. At the time, he started with Chattanooga, Tennessee. In July 2008, Volkswagen AG announced it 20 / BizTimes Milwaukee SEPTEMBER 3, 2018

would build a $1 billion plant, its first U.S. plant since 1971, in Chattanooga. Over the past decade, Tim Ryan’s investments in Chattanooga real estate, under the name HSS Investment Properties LLC, have paid off. “The city absolutely exploded,” Tim Ryan said. “Now I’m looking at selling my properties there.” After spending a few days doing research last year, Sam told his dad about Foxconn’s plan to build a plant in Racine County. “He just nailed it,” Tim Ryan said. “My partners and I are excited about being part of the growth that is coming to Racine. I see the downtown being an attraction for younger millennial types. There has been a new migration back to the urban cities in the past 10 years that America hasn’t seen since the early 1900s.”

REINVENTING FOR THE 21ST CENTURY How much Foxconn’s plan to create 13,000 jobs will benefit the City of Racine has been debated. Naysayers have endured decades of disappointment in a city with a high rate of poverty, one of the worst ranked urban public school districts in the state, a small percentage of high school stu-

dents attending college and crime rates rivaling cities more than double its size, according to data from the state and the U.S. Census Bureau. But at one time, Racine employed thousands at its manufacturing companies. At its peak, J.I. Case Co. employed more than 5,500 people, serving as the city’s largest employer for 120 years. J.I. Case broke ground on a new headquarters complex along the Root River in downtown Racine in 1990, but by 1992, as the company was celebrating its 150th anniversary, it also was planning to cut 4,000 workers. By the mid-1990s another 300 people were laid off. Case Corp. merged with New Holland N.V. to become CNH Group NV in 1999, and in July 2002, Racine’s tractor plant closed. J.I. Case wasn’t the only manufacturer to abandon Racine. Western Publishing, the company that published the Little Golden Books, was founded in 1907 in Racine and at one time employed thousands. The company closed in August 2001. Other companies that have closed or moved out of the city in the 1990s and 2000s include Racine Steel Castings, Walker Manufacturing and Young Radiator.

Even S.C. Johnson & Son Inc., which at one time invested millions in Racine’s downtown, announced in 2015 it would move 175 employees to Chicago. “We’ve lost more than 14,000 manufacturing jobs in the last generation and those jobs did not get replaced by other family-supporting wage jobs,” said Racine Mayor Cory Mason. Mason, 45, was elected in October after spending more than a decade in the state Legislature. Like most Gen Xers who grew up in Racine, his friends’ grandparents and parents worked at one of the large manufacturers that have since left the city or downsized. Mason’s father worked at SC Johnson. Mason recalls going to J.I. Case High School, where he and his friends were told to hurry up and graduate so they could buy a house and go to work with their fathers. “You weren’t going to be rich, but you would be fine,” he said. “Now, it’s a different economy.” Over the past 20 years, Racine has struggled to find its new identity, Mason said. The city has a wealth of natural assets – close to Milwaukee and Chicago, situated on Lake Michigan, with a historic downtown – but a 20-minute drive from I-94 to the city has hampered growth. Poverty has long plagued Racine. “We are in a really interesting transition right now,” Mason said. “Racine did the 20th century really, really well. But part of all of the Foxconn excitement means we can define what we are going to mean for this century.” Kenosha, which has similar demographics, location and population to Racine, took a major economic hit in 1988 when Chrysler Corp. shuttered the American Motors auto assembly plant, taking more than 5,000 jobs with it. Today, the site is home to more than 300 condominiums and apartments known as Harbor Park. Mason credits Kenosha’s city and county leaders with the success. One of Kenosha’s advantages over Racine is that it is simply closer to Chicago. Kenosha County has attracted several businesses from Illinois. Milwaukee author and historian John Gurda said one of the reasons Kenosha has fared better than Racine is the Metra commuter rail line that

“ I think (Racine) has become a smaller-scale Milwaukee, struggling with deindustrialization and poverty, but it hasn’t yet turned a redevelopment corner, fueled in part by millennials. Perhaps Foxconn will change that dynamic.” — John Gurda, historian

runs from downtown Chicago to Kenosha. Metra, coupled with the fact that a number of Chicagoland residents have moved to Kenosha County, has aligned Kenosha with Chicago, Gurda said. There have been discussions for more than a decade about extending Metra to Racine and Milwaukee with a KRM commuter rail line, but it has not gained traction. “I think (Racine) has become a smaller-scale Milwaukee, struggling with deindustrialization and poverty, but it hasn’t yet turned a redevelopment corner, fueled in part by millennials,” Gurda said. “Perhaps Foxconn will change that dynamic.” Gurda said what Racine has undergone is similar to Cleveland, Buffalo and other industrial cities in the north, all of which are going through “midlife crises.” Bruce Renquist, retired owner of Racine-based design firm Renquist Associates, started his company in 1969. He worked with Racine-based firms including J.I. Case and SC Johnson, but said he ended up doing more business in Texas than Racine, or even Wisconsin. “Even before many of the companies left, they were flaccid,” Renquist said. “It is heartbreaking, in many respects, to look at so many of the family businesses that were so successful and the different categories of businesses that do not exist anymore.”

INVESTING IN THE FUTURE In the early 2000s, the City of Racine began working on a redevelopment project for 26.5 acres of industrial property along the Root River in downtown Racine. The $65 million project became

known as Machinery Row. Two former historic J.I. Case warehouses, built 100 years ago and totaling 720,000 square feet, would have remained on the site and been renovated; a 440,000-square-foot building would have been renovated into apartments; and another building would have been a mixed-use development. The project was touted by former Racine Mayor John Dickert, who said it could be like the Historic Third Ward in Milwaukee. But after spending years working with Davenport, Iowa-based Financial District Properties, which was unable to complete the project, the Redevelopment Authority of Racine took back the properties. Oregon, Wisconsin-based Gorman & Co. stepped in to take over the $9 million in historic preservation tax credits that had been awarded in the hopes of saving the project, but ultimately, it became clear the buildings could not be saved and Gorman walked away last year, said Amy Connolly, director of Racine’s Department of City Development. In July, the city hired Rogers, Minnesota-based Veit & Co. Inc. to demolish the buildings at the former Machinery Row site. The property, now being called the Water Street Redevelopment Area, will be master planned by Milwaukee-based engineering firm Graef and Chicago-based architecture firm Perkins + Will. Racine budgeted $6.1 million this year for the demolition of the buildings, site cleanup and the installation of a river walk. “We are still committed to public access, to improving water quality and to creating a sense of place,” Mason said. “There will still be a river walk. Beyond that, we are literally wiping the slate clean for something new. For us, this opens up a lot more redevelopment opportunities instead of trying to figure out a use for buildings that have some nice history, but were literally collapsing in on themselves.” While the failed Machinery Row project plans would have included hundreds of market rate apartments, developers have now begun to view Racine as a place where market rate housing could be successful. West Allis-based Cardinal Capital Manage-

biztimes.com / 21

STORY COVER ment Inc. has an option to purchase the former Ajax industrial property in Racine’s Uptown neighborhood, where the company is planning to construct a four-story building with 112 market-rate apartments. The Ajax site in the 1500 block of Clark Street has been looked at by two other developers who considered veterans’ housing and low-income housing at the former industrial warehouse buildings. Cardinal plans to demolish the old buildings.

RACINE AND KENOSHA: A TALE OF TWO CITIES

CITY OF RACINE POPULATION:

77,542

CITY OF KENOSHA POPULATION:

99,877

CREATING A NEW MARKET

22 / BizTimes Milwaukee SEPTEMBER 3, 2018

UNEMPLOYMENT RATE:

4.9%

MEDIAN HOUSEHOLD INCOME:

$41,178 PERSONS LIVING IN POVERTY:

21.9%

MEDIAN MONTHLY MORTGAGE:

$1,169 MEDIAN GROSS RENT:

$775

HIGH SCHOOL GRADUATION RATE:

82%

BACHELOR’S DEGREE OR HIGHER:

17.5%

RACINE UNIFIED SCHOOL DISTRICT REPORT CARD:

59.3%

MEETS FEW EXPECTATIONS

UNEMPLOYMENT RATE:

4.1%

MEDIAN HOUSEHOLD INCOME:

$49,636 PERSONS LIVING IN POVERTY:

19.3%

MEDIAN MONTHLY MORTGAGE:

$1,423 MEDIAN GROSS RENT:

$830

HIGH SCHOOL GRADUATION RATE:

88.5%

BACHELOR’S DEGREE OR HIGHER:

22.9%

KENOSHA UNIFIED SCHOOL DISTRICT REPORT CARD:

70.8% MEETS EXPECTATIONS

Sources: U.S. Census Bureau; Wisconsin Department of Public Instruction

Milwaukee developer Josh Jeffers says he realized Racine’s untapped potential in 2017, when he began working on a $19 million project at the former Gold Medal Co. Inc. furniture manufacturing buildings in Uptown. Jeffers, president of J. Jeffers & Co., plans to redevelop the buildings into 77 units of affordable and market-rate apartments at 17th Street and Packard Avenue. He was recently awarded $620,000 in Low Income Housing Tax Credits through the Wisconsin Housing and Economic Development Authority for the project and plans to begin construction in spring. In June, Jeffers made another investment in Racine, purchasing three buildings at 2100 and 2200 Northwestern Ave. for a combined 246,000 square feet, plus an additional 8 acres of vacant land. The buildings are a gateway to the 13-building Horlick Industrial Historic District site (the former Horlick Malted Milk Co. complex). They were constructed in 1882 and 1902, making them a perfect fit for Jeffers, who has made his career specializing in historic preservation projects. Jeffers is planning to work on the project in multiple phases, with the first phase being 80 to 90 predominantly affordable housing units in one of the existing buildings. Over the next decade, Jeffers envisions up to 400 units of affordable and market-rate apartments, including new construction on the vacant land and mixed-use development in what could become a $100 million catalytic project for the City of Racine. “In Milwaukee, it has been apartment building mania; I think we recently celebrated our 10,000th unit and it has been predominately market rate,” Jeffers said. “It has gotten to the point where the market is already slowing down. Go to Racine, and it is not that they are behind; the (apartment development) cycle has not even started yet.” Racine has a number of developable sites available for new construction and what Jeffers calls a phenomenal stock of existing historical buildings for sale at reasonable prices, making him feel like a “kid in a candy shop,” but abysmally low rents have kept developers away, Jeffers said. There is a chicken-or-the-egg game of not having enough market rate apartments to produce real estate comparables to be able to charge higher rents,

CONTRIBUTED

A rendering of the Gold Medal project.

so no new buildings are constructed, Jeffers said. The average cost to operate an apartment building ranges from $600 to $800 per unit. In Racine, the average rent is $775 per month, according to the U.S. Census Bureau. Developers will not build apartments knowing they will make such a thin profit margin, Jeffers said. By building predominantly affordable housing with phased in market-rate apartments, Jeffers can obtain LIHTC through WHEDA and other sources of federal and state financing, greatly reducing his debt, he said. “There is a myth that people won’t pay market rate if there is affordable housing mixed in, but that is not true,” Jeffers said. “We just opened the Griot Apartments in (Milwaukee’s Bronzeville neighborhood) that has a mix of market-rate units and they are flying off the shelf.”

The Griot and the redevelopment of the nearby former Garfield School, undertaken by Jeffers and Milwaukee developer Melissa Goins, includes 30 affordable apartments at the school building and 41 affordable and market-rate apartments at the Griot building, 411 W. North Ave. Jeffers plans to take a page from Mandel Group Inc. for his Racine project at the Horlick site. A decade ago, the Milwaukee-based developer started building upscale apartments at a former tannery site on North Water Street in downtown Milwaukee now called The North End. Mandel is currently finishing the last phase of the project. “I take a lot of inspiration from Mandel,” Jeffers said. “They were able to create a neighborhood and create a market.” They were also able to create comps, which Jeffers said eliminates the chicken-or-the-egg game.

“After what we did with the Griot, we could hypothetically build a market-rate apartment building in Bronzeville next door, and have a comparable to get the rent we are looking for,” Jeffers said. “Right there, we have created a market.” Jeffers knows creating a new market in Racine won’t be easy. The Griot project took 13 funding sources to make it work. Jeffers anticipates Racine will be similar, and will take at least 10 years. But he is bullish on the city. “What really gets me excited about the Horlick site is there is such a critical mass,” Jeffers said. “And then you introduce Foxconn, it is so exciting. I know there has been debate about how many jobs and if Racine will benefit, but I don’t even know why this is a question. Will (Racine) get 13,000 jobs? No. But they are neighbors (of Mount Pleasant) and will reap the benefits with economic development.” n

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Special Report BANKING

Banks ease C&I lending standards as competition heats up By Molly Dill, staff writer U.S. BANKS eased their terms and standards for commercial and industrial loans in the second quarter, according to a July survey by the U.S. Federal Reserve. However, they kept commercial real estate and construction and land development lending standards about the same, according to the July 2018 Senior Loan Officer Opinion Survey on Bank Lending Practices. Demand was stronger for C&I loans among

small firms, but weaker for CRE loans. It was about the same for construction and land development loans. Most banks that eased their standards on C&I loans pointed to heightened competition from other lenders as the reason, according to the Fed. They also noted a more favorable economic outlook, increased risk tolerance and increased liquidity in the secondary market as factors. “The basic takeaway is very competitive conditions, especially for higher quality C&I credit,” said Bryce Rowe, senior equity research analyst covering community banks at Milwaukee-based Robert W. Baird & Co. Inc. “Since the financial crisis, C&I has been the primary focus of banks and it’s what you hear a lot of the community bankers focusing on in terms of where they want their growth and where they

want their loan growth.” Wisconsin banks have generally been matching those national trends, said Rose Oswald Poels, president and chief executive officer of the Wisconsin Bankers Association. “I know there is growing competition in the C&I lending space from all institutions, so rates and terms are getting a little bit better,” Oswald Poels said. “That doesn’t necessarily mean if you don’t meet their underwriting criteria that you’re going to get a loan.” That competition means the terms are getting more favorable for borrowers, so it could be a good time for businesses to consider seeking a C&I loan, she said. “2018 continues to be a very positive environment for businesses in terms of borrowing money,” she said. “I think they’ll find lots of

U.S. banks’ Q2 credit standards for C&I loans. A. Standards for large and middle-market firms (annual sales of $50 million or more): All Respondents Banks

Large Banks

Percent

Banks

Other Banks

Percent

Banks

Percent

Tightened considerably

0.0

Tightened somewhat

1.4

0.0

4.2

Remained basically unchanged

81.2

77.8

87.5

Eased somewhat

17.4

22.2

8.3

0.0

100

Eased considerably Total

B. Standards for small firms (annual sales of less than $50 million): All Respondents Banks

Large Banks

Percent

Banks

Other Banks

Percent

Banks

Percent

Tightened considerably

0.0

Tightened somewhat

3.0

2.4

4.0

86.4

87.8

84.0

Eased somewhat

10.6

9.8

12.0

Eased considerably

0.0

100

Remained basically unchanged

Total

Source: U.S. Federal Reserve 24 / BizTimes Milwaukee SEPTEMBER 3, 2018

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good options in terms of loan terms and pricing. If a business is looking to borrow money, now is the time to do it before rates continue to slowly climb.” Since the Fed is gradually raising interest rates, some banks have started to pay more attention to shoring up their funding reserves, Rowe said. “With incremental interest rate hikes by the Fed, the focus has kind of shifted to how to fund loans,” he said. “The incremental funding cost has gone up, so banks that might have a higher loan-to-deposit ratio or are needing funding to fund that extra loan, they might be a little more sensitive to pricing.” Loosened standards come across in better loan pricing, covenants and structures, terms, and extended maturity, Rowe said. Banks’ loosened C&I terms are a little bit riskier, but there is still a lot of pressure on commercial real estate loans from a regulatory perspective as a result of the financial crisis, he said. “Banks have been cautioned to remain at a certain level of commercial real estate to capital,” Rowe said. “Smaller commercial banks, they’ve done more commercial real estate

“IF A BUSINESS IS LOOKING TO BORROW MONEY, NOW IS THE TIME TO DO IT BEFORE RATES CONTINUE TO SLOWLY CLIMB.” — Rose Oswald Poels, Wisconsin Bankers Association lending than you would see from the larger banks, at least as a percentage of their loan portfolios.” As for when banks’ standards and terms could tighten back up, Oswald Poels said the lending environment will follow the current economic cycle. “What causes banks to make changes to loan terms that are more negative from the standpoint of a borrower really ties in to the health of the borrower themselves,” she said. After the financial crisis of 2008, the federal government put in place more regulations and oversight, so Oswald Poels does not expect banks to get back into the realm of irresponsible lending, she said. “I don’t think that the industry is offering loan terms that are what I guess you could call silly loan terms, the type that are going to get the bank in trouble,” Oswald Poels said. “I don’t

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see the pendulum moving back that far at all.” Being in a late-stage economic growth cycle, it’s tough to say whether the pendulum has swung too far, Rowe said. But it wouldn’t be on CRE loans. “I think most folks would agree that you’ve seen corporate debt levels explode higher and that’s where the primary risk is these days,” driven by widespread stock buybacks, he said. Jay Risch, secretary of the Wisconsin Department of Financial Institutions, said Wisconsin’s economy is doing well and its banks and borrowers are generally more conservative in their lending practices. “Our examiners are looking at the whole picture of a bank’s lending practices,” Risch said. “The good news is as a whole…they’re doing things right to remain safe and sound and still be offering those loans that help fuel the economy.” n

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PRESENTS:

Six business and community leaders from southeastern Wisconsin will share their best advice, leadership insights, secrets to success, and ways they overcame their toughest challenges in their own professional and personal lives. This will be a fast-paced discussion. Each speaker will share their stories and insights, followed by Q & A from the audience. In just 90 minutes, attendees at the annual 90 Ideas in 90 minutes event will walk away with insights and information on all 90 ideas to help them to be a better leader and to overcome their own business and personal challenges.

Thursday, October 11, 2018

Speakers: • Therese Bailey, Founder, ZenZen Yoga Arts (1) • Elana Kahn, Director, Jewish Community Relations Council, Milwaukee Jewish Federation (2) • Erik Kennedy, Community Impact Coordinator Senior, Aurora Health Care (3) • Jim Tarantino, Founder, Capri Senior Communities (4) • Andrew Weins, COO, JDog Junk Removal & Hauling United (5) • Sherry Zhang, Founder and CEO, GenoPalate, Inc. (6)

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Special Report BANKING

Andrew Walker, Ross Leinweber, Jonathon Horne, Richelle Martin, Dan Brooks and David Trotter discuss the Badger Fund of Funds with Tom Still at the Wisconsin Entrepreneurs’ Conference in June.

While small, Wisconsin venture capital community is growing By Molly Dill, staff writer LARGER, later-stage venture capital investments are all the rage these days on the East and West coasts, with startups in Silicon Valley seeing megadeals topping $100 million. While entrepreneurs in Wisconsin raise more modest funding rounds, the momentum in the venture capital community has been growing. According to a Venture Monitor report by Pitchbook and the National Venture Capital Association, Wisconsin saw 22 venture capital deals in the second quarter totaling $101.8 million. That’s up from 2017’s second quarter, when there were just nine venture capital deals in Wisconsin.

Still, the Great Lakes region accounted for just 7.9 percent of U.S. deals in the second quarter, and 3.4 percent of deal value, the Venture Monitor report said. According to the Wisconsin Technology Council, which tracks SEC filings, public reports and tax data and surveys investors, fewer Wisconsin startups (127 of them) raised investment capital in 2017 and total funding decreased to $231 million from $276 million in 2016, but it was still the second-highest annual total ever in Wisconsin. In the first portion of 2018, WTC had tracked

32 Wisconsin deals totaling about $51 million, which is behind the pace of 2017 as of June. But WTC president Tom Still is optimistic. “I believe the word is spreading that Wisconsin has the good ideas, the talent to carry them out and the cost of doing business that helps pay for everything in the long run,” he said. At the same time, the number of Wisconsin venture capital funds awaiting deployment has been growing. Five fund managers involved in the Badger Fund of Funds program have been closing their venture capital funds and beginning to invest them in startups across the state. In March, Jonathon Horne’s Idea Fund of La Crosse, a $13 million Badger Fund of Fund that closed in July 2017, made its first investment in Madison startup Curate Solutions Inc. In May, Richelle Martin launched Madison-based BFOF The Winnow Fund with the

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aim of raising $8 million to $10 million specifically for investing in college student entrepreneurs in Wisconsin. The same month, Ross Leinweber launched Milwaukee-based BFOF Bold Coast Capital Fund I L.P. with the goal of raising $12 million to $15 million to invest in Wisconsin startups. In June, George Arida began raising an independent $15 million Madison-based fund, 30Ventures Fund I L.P., according to an SEC filing. Also in June, Andrew Walker and Christopher Eckstrom reached the $21.2 million mark on their BFOF, Madison-based Rock River Capital Partners, with plans to close the $25 million fund by summer’s end. In July, Neenah-based, $11 million BFOF Winnebago Seed Fund was the lead investor in a $750,000 funding round by Milwaukee startup Socialeads. Winnebago in August made its second investment in Milwaukee-based Sift Medical Data on a round of up to $1.1 million. “When we launched what was then called the Wisconsin Angel Network in 2004, there were probably a half dozen angel funds or networks in Wisconsin. Today there are more like three dozen,” Still said.

And corporate venture investors have also been active. In late August, Foxconn Technology Group announced it has formed a Milwaukee-based $100 million corporate venture capital fund along with equal investors Advocate Aurora Health, Johnson Controls International plc and Northwestern Mutual Life Insurance Co. The Wisconn Valley Venture Fund plans to invest in technology startups relevant to its investors’ sectors globally. Milwaukee-based Northwestern Mutual has also been deploying its $5 million Cream City Venture Capital Fund, with investments this year in Milwaukee startups Socialeads, Lumanu, Wantable and Bright Cellars. And Advocate Aurora is poised to begin deploying its own $5 million Milwaukee-focused fund, InvestMKE. Seeing the increasing activity, John Neis of Madison-based Venture Investors LLC led a recent effort to relaunch the dormant Wisconsin Venture Capital Association. “I think it’s indicative of the fact that there are a growing number of funds with dollars to deploy, so you’ve got more active dealmakers in the market,” Neis said.

A combination of factors has driven the increased venture capital activity in the state, including the growing interest in the startup community and the entrepreneurial success stories that encourage others to take the leap, he said. Neis is currently raising one of the largest venture capital funds in the state, the $100 million Venture Investors Health 6 L.P., according to a May SEC filing. While Wisconsin’s venture capital community is growing, it still has a ways to go compared to states like California and New York, he said. “It’s moving in the right direction. Most of the funds in the state are still very small,” he said. “There’s been the megadeal trend that has been occurring out at the coasts. We’re not seeing any of that here. “We face a continuing challenge of not enough capital available. It’s great to see more dealmakers, it’s great to see more deals attracting money and moving forward.” “I don’t think anyone is looking for venture capital to suddenly flee from the coasts in a headlong rush to the Midwest, but there are signs there’s more interest here and a growing amount of capital,” Still said. n

BANKING BEYOND EXPECTATIONS At First Business Bank, preserving the most value in your business in exchange for all your hard work is always on our minds — even before you ever consider selling it. That’s why we evaluate every angle when financing an acquisition or expansion. Our team’s experience gives clients an edge now and well into the future.

ANDREA WOLF VICE PRESIDENT, FIRST BUSINESS BANK

BUSINESS BANKING | PRIVATE WEALTH | SPECIALTY FINANCE Member FDIC

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Strategies MANAGEMENT

Keep their edge Invest in employee training

30 / BizTimes Milwaukee SEPTEMBER 3, 2018

Have you heard the phrase, “You never stop learning?” This is very true when it comes to servicing your customers, especially if you are in the beauty business. On a recent visit to Impressions in Mequon, I viewed a continuing education session conducted by a hair color expert. Each of the stylists were focused on the techniques being demonstrated. Many of these stylists have been plying their craft for more than 10 years, and yet they were being exposed to something new. This was one of many sessions Impressions provides for its stylists during any calendar year. The owner, Kitty Tierney, feels that her investment in training pays for itself multiple times. In any business, especially one that is so customer-focused as beauty, and where clients expect a level of perfection, the stylist needs to be on the cutting edge. Anyone can wash, blow dry and style your hair, but each client wants a look that sets him or her apart from the crowd. In all my years as a customer of Impressions, each of their clients has a unique look, which has been developed over time with his or her stylist. Other organizations can take the example set by Kitty and her staff, that they never stop improving their craft. From reinforcement of previous training to learning new techniques, increasing your employees’ skill levels and acquiring new skillsets can only grow your business and strengthen your relations with your customers. The one question no owner wants to hear from a customer is, “Why doesn’t your firm offer that service?” No matter how much experience Kitty’s stylists have, they all attend these training sessions. Over the years, Impressions has won numerous awards from both its suppliers and professional organizations. Also, the salon has been recognized repeatedly as one of the top 200 salons in the United States by Salon Today. When I was providing training in the areas of conflict resolution, negotiation and communication for my clients in Wisconsin, California, Texas and in cities throughout the Midwest, I found that our training reinforced earlier learning and produced almost immediate results. Af-

ter the final session at a local Milwaukee pest control company, the secretary to the president contacted the hotel where they had scheduled an annual meeting. She succeeded in renegotiating their contract at a lower room rate. In another case, one of my seminar attendees went out the next week and purchased a new truck at substantial savings. Research has shown that unless learning is reinforced and applied, it can be diminished in its efficacy. Investing in elevating the level of your employees’ knowledge results in higher levels of productivity, morale and customer satisfaction. This theory was proven in the early 1920s with the Hawthorne Experiments, conducted by Elton Mayo at Western Electric in Chicago. He concluded that, according to the Manage Train Learn website, “people’s morale and productivity were affected not so much by the conditions in which they worked but by the recognition they received.” Providing continuous education to your employees is one way to demonstrate you recognize their contributions to your company’s success. The result of your efforts will be a happier group of employees and even happier clients. n

CARY SILVERSTEIN Cary Silverstein, MBA, is a former executive for Gimbels and JH Collectibles and an author, speaker, trainer and retired business consultant. He is co-author of “Overcoming Your NegotiaPhobia,” and can be reached at booksthatworkaz@aol.com.

COACHING

Success starts with you Believe in your ability to overcome challenges

Most people have a deep desire to be successful. Some want to make a strong positive impact on the world around them. Others want to secure the financial means to acquire long dreamed-of assets. Still others want to be known and admired near and far. Some want all of this and more. Whatever your reason for seeking success, achieving it starts with you. You don’t have to wait for an invitation, permission to proceed, or an influential sponsor. You do need a realistic mindset. It’s no secret that life is difficult. This is the very first sentence in M. Scott Peck’s timeless bestseller “The Road Less Traveled.” Additionally, Peck writes, “Confronting and solving problems is a painful process which most of us attempt to avoid. And the very avoidance results in greater pain and an inability to grow both mentally and spiritually.” Contrast this message with what many people today have come to believe, namely that life should not be difficult and if it is for you, then someone has made it that way accidentally or on purpose. This is a tragically destructive message that far too many have come to accept.

The great news is that you don’t have to be one of those people. You can reject the notion that you are somehow not up to the challenge of life, that for some reason beyond your control you are not suited to the rough and tumble of a chaotic society. You are. But here’s the catch: You must act. You must decide to exert effort to go after the success you desire. You must focus your attention on what will help you move forward instead of allowing it to be scattered by a million distractions. This itself is difficult! And that’s the point. If you truly want to enjoy success, you must begin where you are with the gifts, talents and energy at your disposal. Start by deciding what success looks like. What does it mean to you? Don’t look at your neighbor, co-worker, sibling or significant other to figure this out. Find a quiet spot where you can be alone with your thoughts and a notebook or note-taking app. Sit still long enough to feel quiet. Then capture the thoughts, feelings and images that make you happy. Next, of all the things you wrote down, ask yourself, “What do I want and what am I willing to do to get it?” This is an important question because once again it grounds your desire with your willingness to exert effort. Coercing someone into giving you what you want might make you feel powerful. The adrenaline rush of winning advantage over someone certainly is heady. But at some point you will encounter someone wise to this strategy and unwilling to participate. What then? Finally, make up your mind to understand the world around you. Pay attention to what happens day to day. Listen to the things people say and how they say them. Notice your emotional responses as you experience different circumstances. It won’t take long to recognize what brings you down. Stay away from it. If you’re the sort of person who needs to set others straight when they behave in offensive ways, please reconsider. It’s not your job to rehabilitate the planet. Stay focused on building your path forward.

At this point you may be thinking that if you concentrate only on what pleases you, you’ll become a narrow and selfish soul indeed. But that is not the suggestion here. Pay attention to everything in order to sort for yourself what works. The human spirit is an incredibly powerful force made weak by false messages and manipulated experiences. Keep your eyes and ears open. Have something to strive for. Keep track of what helps you move forward and what hinders your progress. At some point, you’ll need to devise methods for moving beyond barriers. Don’t worry, in time you will. And yes, it takes time. Success always does. Start each day with the understanding that life is difficult. Recognize that you, lucky one, have all the resilience you need to meet challenge with confidence. Here’s to your success! n

SUSAN MARSHALL Susan Marshall is an author, speaker and the founder of Backbone Institute LLC. For more information, visit backboneinstitute.com. biztimes.com / 31

Strategies

Tip Sheet Got applicants?

or small businesses trying to fill open positions, finding qualified applicants can pose a major challenge. Sure, your company might not have the large contracts that a large corporation can offer, but as a business leader, you know how important people are to accomplish the mission of the organization. In an article published by SCORE, Sara Pollock,

head of marketing at ClearCompany, suggests six ways small businesses can get a leg up when recruiting talent. 1. Increase compensation If your budget allows, put more money toward higher salaries. The truth is, more money attracts more high-quality talent. 2. Bolster insurance and health benefits Pollock says many employees will accept a lower salary if they can receive a robust insurance or benefits package instead. Health insurance, she says, is often viewed “in terms of its potential value versus its expected value.” 3. Offer perks Perks such as a company car, reimbursement for gas or travel time, and catered lunches make work life more enjoyable and provide employees with incentives to work harder. 4. Promote work-life balance Recent studies have found that people enjoy working from home, close to home or from a re-

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mote location. Make the option of flexible work locations available to employees and emphasize that opportunity to applicants. 5. Create meaning As a small business owner, you can sell applicants on the great impact they will have on the company and its greater goals. Many professionals, Pollock says, desire the opportunity to work at a small company where “they can more readily see the immediate benefits of their work.” Emphasize the impact of the applicant’s work, specifically within the role you are hoping to fill. 6. Provide equity Early employees at a new small business may have the opportunity to receive a profit-share or equity in the company in exchange for accepting a reduced salary. If this opportunity applies to your company, you can attract employees who believe in your business model and are able to accept a reduced salary now, knowing they can own a portion of the company later. n

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BizConnections NONPROFIT F R O E DT E R T P R E S I D E N T TO C H A I R H C PA R T N E R S H I P Froedtert Hospital president Cathy Buck has begun a twoyear term as chair of the Milwaukee Health Care Partnership, a public-private consortium working to improve health care for underserved populations in Milwaukee County. Buck will work with Joy Tapper, executive director of the partnership, on the consortium’s strategic priorities, which include improving health outcomes, reducing disparities and lowering the total cost of care. Since forming in 2007, the partnership says it has helped thousands of uninsured individuals find coverage, increased capacity at safety net clinics

and increased access to affordable medications. Members of the partnership include Ascension Wisconsin, Aurora Health Care, Children’s Hospital and Health System, Froedtert Health, the Medical College of Wisconsin; Milwaukee’s five federally qualified health centers, Gerald L. Ignace Indian Health Center, Milwaukee Health Services Inc., Outreach Community Health Centers, Progressive Community Health Centers and Sixteenth Street Community Health Centers; and the city, county and state health departments. — Lauren Anderson

c alendar Safe & Sound will host “A Night to Unite: Celebrating Neighborhood Champions” at 5 p.m. on Thursday, Sept. 13, at the Italian Community Center, 631 E. Chicago St. The event will honor four individuals who work alongside Safe & Sound to build community in challenged Milwaukee neighborhoods: Carmen Pitre, Judge Derek Mosley, Betty Gaines and PrincessSafiya Byers. More information is available at safesound.org/2018gala. SHARP Literacy Inc. will host “A Novel Event” from 4 to 7 p.m. on Monday, Sept. 17, at The Pavilion at Discovery World, 500 N. Harbor Drive. Milwaukee Bucks guard Malcolm Brogdon will be the keynote speaker for the event. Funds raised will support SHARP’s literacy program. Individual tickets are $150. More information is available at sharpliteracy.org.

nonprofit

SPOTLIGHT

M Y C H O I C E FA M I LY C A R E

10201 W. Innovation Drive, Suite 100, Wauwatosa (414) 287-7600 | mychoicefamilycare.org Facebook: facebook.com/mychoicefc | Twitter: @mychoicefc

Year founded: 2016 Mission statement: We inspire people to experience life at its fullest by encouraging ownership of health, fostering independence and serving the whole person; and do so with an unwavering commitment as stewards of Medicaid funding. Primary focus: Providing longterm care supports and services to adults with physical, intellectual and developmental disabilities in 26 Wisconsin counties. Other focuses: Engaging with our community partners to promote independence, self-direction and community employment for people with disabilities. Providing technical assistance and subject matter experts on long-term care and services to individuals in our community. Employees at this location: 225

D O N AT I O N R O U N D U P Feeding Wisconsin received a $700,000 grant from UnitedHealthcare that will support new refrigerators at more than 50 food pantries across the state, training programs on how to safely handle fresh produce, and pilot programs to expand Wisconsin’s emergency food system to source and distribute fresh produce | We Energies Foundation issued a $50,000 challenge grant to Light the Hoan, a public crowdsourcing campaign to raise more than $1.5 million to install LED lights on the Hoan Bridge | Boys & Girls Clubs of Greater Milwaukee received $25,000 from the Anthem Blue Cross Blue Shield Foundation to support the clubs’ Triple Play wellness program. Triple Play seeks to promote wellness in children from underserved communities who may be at greater risk for health-related issues later in life.

34 / BizTimes Milwaukee SEPTEMBER 3, 2018

Executive leadership: Maria Ledger, chief executive officer; Betsy Van Heesch, chief operating officer; Jim Hodson, chief financial officer; Kevin Collins, general counsel and chief compliance officer. Key donors: We are a managed care organization for the Family Care program, which is supported through federal and state Medicaid funding.

Board of directors: Dr. Ken Byom, Arlyn Doehler, Lynda Krellwitz, Michael Mayo, Sr., Thomas Orendorff, Maria Rodriguez, Lee Seese. Is your organization actively seeking board members for the upcoming term? We are not currently seeking new board members for this term. Ways the business community can help your nonprofit: One of the key initiatives for My Choice is bridging the gaps to competitive and integrated community-based employment for people with disabilities. Our efforts center around creating awareness in the business community of this available and capable workforce, facilitating job-skills development with My Choice members, and working with the Department of Workforce Development and Vocational Rehabilitation for job development and placement. Second, we contract and work with many community-based service providers to deliver the support and care we need for our members. We encourage highly skilled service providers to consider joining our network. Finally, we are a growing employer that is actively filling roles in nursing and care management throughout southeastern and western Wisconsin.

PERSONNEL FILE BANKING & FINANCE

BANKING & FINANCE

LEGAL SERVICES

Robert W. Baird & Co. Inc., Milwaukee

Waukesha State Bank, Waukesha

Probst Law Offices, Wauwatosa

Baird has promoted Laura Thurow to director of wealth solutions and operations. She will lead the combined wealth solutions and operations groups for Baird’s private wealth management business. In her new role, Thurow also serves as a member of Baird’s executive committee. She succeeds Russell Schwei, chief operations officer and a member of Baird’s executive committee, who is planning to retire at the end of 2019 after almost 35 years at the firm.

Waukesha State Bank has promoted Aaron Frank to vice presidentbank manager. Frank started his career with Waukesha State Bank in 2000 as a teller. He has held varying positions at the bank, from personal banker to bank manager of the Meadowbrook Road office in Waukesha, before becoming bank manager of the Pewaukee location in 2012.

Probst Law Offices has hired Manuel Galang as a senior associate attorney. He has nearly three decades of experience across multiple practice areas. Galang has practiced law in Wauwatosa for nearly 20 years, primarily in the Law Offices of Manuel R. Galang S.C. He has handled hundreds of cases involving family law, criminal defense, personal injury and business litigation.

BANKING & FINANCE

DOMO Capital Management, Germantown DOMO Capital Management has hired David Ribbens as partner. He brings 35 years of experience to DOMO. Ribbens retired from his position as president and head of distribution at a boutique investment management firm early in 2016. In 2017, he joined the Northwestern Mutual Series Fund Board as an independent director and founded his consulting practice.

BANKING & FINANCE

Port Washington State Bank, Cedarburg Port Washington State Bank has promoted Kim Kolanda to the position of personal banker II. She joined the bank in early 2017.

COMMERCIAL REAL ESTATE

LEGAL SERVICES

Marcus & Millichap Capital Corp., Brookfield

Sorrentino Burkert Risch LLC, Brookfield

Marcus & Millichap Capital Corp. has hired Vedran Rimarcuk as associate director.

EDUCATION & WORKFORCE DEVELOPMENT

WCTC Corporate Training Center, Pewaukee WCTC Corporate Training Center, Pewaukee, has hired Scott Richter as the newest manager on its business development team. Richter has more than 20 years of sales, instruction and leadership experience.

HEALTH CARE & WELLNESS

Brett C. Skarr, D.D.S. S.C., Waukesha Brett C. Skarr, D.D.S. S.C., has hired Eric Biederwolf as a partner. Biederwolf is a 2014 graduate of the Marquette University School of Dentistry.

Sorrentino Burkert Risch LLC has hired attorney Jonathan Sopha as senior counsel. His primary focus is assisting clients on all aspects of commercial real estate, including asset dispositions, development, financing, leasing, construction and investment.

MARKETING

Seroka Brand Development, Brookfield Seroka Brand Development has promoted Amy Hansen to vice president of public relations and strategic planning. Hansen has been with Seroka since 2002 and has served as director of client service and public relations for the past 11 years.

Kuhn

Thomas

anchor and reporter on local television before his transition into digital marketing. He will lead search engine optimization, pay-per-click, analytics and digital media strategy to determine the best way to bring brands closer to their consumers. Thomas has nearly 11 years of experience as an account professional. She has joined Zizzo Group to oversee client relationships and manage results-driven and strategic cross-channel marketing efforts across a diverse group of clients.

PLUMBING

CornerStone Plumbing LLC, Brookfield CornerStone Plumbing has hired Scott Christman to manage its new Earthwork division, expanding the company’s scope of services to include commercial excavation and grading. Christman is a former vice president at Western Contractors in New Berlin. He will oversee and manage the development of the new division.

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

MARKETING

Zizzo Group Engagement Marketing, Milwaukee Zizzo Group Engagement Marketing has hired Adam Kuhn as a digital marketing director, and Jennifer Thomas as a senior account executive. Kuhn has nearly eight years of experience, previously serving as a sports

biztimes.com / 35

BizConnections VOLUME 24, NUMBER 11 | SEP 3, 2018

GLANCE AT YESTERYEAR

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

SALES & MARKETING

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

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

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

COMMENTARY

We are not flyover country WHEN MOST AMERICANS think of technology startup hubs, they think of places like Boston, Seattle and Silicon Valley. And many think of Milwaukee as a Rust Belt city and Wisconsin as a farming state. We do not have the reputation as a magnet for high tech talent and entrepreneurs. In other words, we’re considered flyover country. In recent years, Milwaukee and Wisconsin have ranked at or near the bottom of the Kauffman Index of Startup Activity. That’s a big concern because new businesses create most of the new jobs in the economy. However, there are signs Wisconsin is making progress in improving its startup and technology sectors. Inc. magazine recently announced its annual list of the 5,000 fastest growing private companies in America, and placed a Wisconsin company at No. 1. Madison-based logistics technol36 / BizTimes Milwaukee SEPTEMBER 3, 2018

ogy startup SwanLeap, founded in Elkhart Lake in 2013, took the top spot with 75,000 percent growth over the past three years and a projected $400 million in revenue this year. Wisconsin has two companies in the top 10 of the Inc. 5000. Besides SwanLeap, Milton-based Diamond Assets, an Apple hardware trade-up provider, was ranked No. 7. Those companies provide a big opportunity to change the narrative about Wisconsin. We’re not flyover country. Startups and tech firms can and do thrive here. More evidence has emerged to back up that claim. Madison ranked as the third-fastest growing technology employment market in the nation, according to a recent report from commercial real estate firm CBRE. Another recent report, commissioned by several area businesses and called Milwaukee’s Tech Talent Impact, said this region has 76,000 technology workers and tech talent-dependent industries in the area had a $27.6 billion economic impact last year. And according to a Venture Monitor report by Pitchbook and the National Venture Capital Association, Wisconsin had a significant increase in venture capital deals during the second quarter of this year. Bolstered by graduates and research coming

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

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

Pierhead Light This photo, cataloged in 1925, shows the entrance to Milwaukee’s harbor. In the foreground is the Milwaukee Pierhead Light, which was established in 1872 at the juncture of the Milwaukee River and Lake Michigan. The Pierhead Light is now solar-powered and operates automatically, but there was a keeper in the tower until 1926. The Hank Aaron State Trail now stretches along the shoreline at this site.

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

PRODUCTION & DESIGN GRAPHIC DESIGNER Alex Schneider alex.schneider@biztimes.com

Independent & Locally Owned

ART DIRECTOR Shelly Tabor shelly.tabor@biztimes.com

— Founded 1995 —

out of the University of Wisconsin, Madison has long been the state’s tech startup leader. But Milwaukee could be positioned to catch up. Earlier this year, another report in Inc. magazine said “Forget Silicon Valley” and identified three places to which entrepreneurs should move their startup businesses. Milwaukee was one of them. Why? The cost of living is much lower in Milwaukee than in tech hubs like Seattle and San Francisco, where housing costs are spiraling out of control. Those low costs are probably why Milwaukee has the ninth-youngest entrepreneurs in the country, according to a new study by online loan marketplace LendingTree. And who knows what impact Foxconn will have on the state and region’s tech economy? That’s yet to be determined. State and area leaders need to use these companies and data points to help attract more talent and more entrepreneurs. n

ANDREW WEILAND EDITOR

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

AROUND TOWN

Boelter Superstore 10th anniversary

Boelter Superstore in Glendale recently held a celebration for its 10th anniversary. 1.

EVAN HUGHES and JARED LOOZE , both of Central Standard Craft Distillery.

ZACHARY WISNIEWSKI and SHANNON MEYER , both of the State of Wisconsin.

KORIN DUPONT, self-employed, and NICOLE HUDEK of GetHappy Chocolatier.

LIZ AND RICK BOELTER and JENNIFER WHITE , all of The Boelter Cos.

HEIDI NOE, ERIN KRUEGER and MEGHANN CHENERY, all of The Boelter Cos.

HELGA SCHIMPF, SCOTT KUCHARIK of Institutional Equipment Inc. and ERIC BOELTER of The Boelter Cos.

JUSTIN JOHNSON of Sustainable Kitchens and MORGAN BETT of Von Maur Inc.

DUSTIN HOFFMAN of 3 Sheeps Brewing and JAMES JENS of Dinners With Class.

Brew City Cigar Festival The fifth annual Brew City Cigar Festival was recently held at the Bavarian Bierhaus in Glendale. 9.

DAN MEYER of BizTimes Media and DAVID BORST of the Family Business Legacy Institute.

10. MARK DOLENSHEK and TOM CARROLL , both of Robert W. Baird & Co. Inc.

11. MARK BENSKIN of U.S. Bank and WAYNE KIMBROUGH of Union Pacific. 12. TODD AND DANEEN MEISSNER , both of Color Ink Inc. 13. JARRID WILLOUGHBY, and CHERYL AND JEFF JACOBS , all of Metro Cigars LLC.

14. (back) MEGAN CERBINS, ISIAH KING , (front) KULBIR SINGH and JESS TULI , all of Institute of Technology & Academics. 15. MARK BENSKIN of U.S. Bank, WAYNE KIMBROUGH of Union Pacific, GARY AND BETH ZIMMERMAN, both of Creative Business Interiors, and DAN MEYER of BizTimes Milwaukee. 16. FRANK LASUSA and FRANK LASUSA II , both of Corvina Wine Co.

17. AARON HALL of Davis & Kuelthau and CHAD WOZNIAK of Milwaukee County District Attorneyâ&#x20AC;&#x2122;s Office. Photos by Maredithe Meyer biztimes.com / 37

BizConnections

TOUGHEST

Challenge

JORDON ME YER Position: President Company: Granular LLC What it does: Pay-per-click digital marketing Career: Meyer founded Granular in 2014. This year, he invested in new search engine optimization-focused digital marketing agency Momentic. He is also co-founder and marketing director for nonprofit digital marketing organization MKEsearch. Previously, Meyer worked in paid search and digital marketing roles at Globe Education Network, Rasmussen College and Best Buy in the Minneapolis area.

THE CHALLENGE Granular is a niche digital marketing firm that only focuses on one aspect of a large industry: pay-per-click. Most digital marketing agencies offer a variety of services, Meyer said. “Since we only specialize in paid search and paid digital advertising, we often get people looking at us like we can’t solve all of their business problems,” he said. “It is definitely a challenge because we’re going against someone that offers every kind of solution a business would be looking for.” THE RESOLUTION The agency began developing relationships with other marketing firms in southeastern Wisconsin, and referring clients to them if their needs were outside Granular’s area of expertise, such as website help. “We’ve actually become friends and we’ve become close with a lot of other agencies in town and even throughout the U.S.,” Meyer said. “In turn, a lot of other agencies are actually coming to us to help solve the one problem we’re good at, which is paid search.” In addition, Granular executives invested in a new agency that launched this year, Momentic, that focuses on search engine optimization exclusively. “A lot of agencies would bundle these together…but since we’re so strict to what Granular offers, we often get asked for SEO referrals,” Meyer said. “It’s definitely solving a pain point for Granular and for the clients we serve.”

LILA ARYAN PHOTOGRAPHY

THE TAKEAWAY

38 / BizTimes Milwaukee SEPTEMBER 3, 2018

“The biggest one was that I need to stick with my gut and build on our strengths,” Meyer said. “A lot of startups and agencies will at some point in their history have a pivot story. With me, I started with that mindset that we’re going to do this one thing (and) we’re going to do it really well forever.” Even though clients were asking Granular to add services, Meyer held to his original mission. And he formed better relationships with other agencies around town. “Even though we’re technically competitors, it’s like a different subset of competitors,” Meyer said. “It’s made a lot better, less competitive environment in the city for us.” n

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