BizTimes Milwaukee | October 16, 2017

AI plus PREPARE TO PAY FOR A LONGER RETIREMENT 23 TODAY’S SENIOR LIVING FACILITIES HAVE IT ALL 25 NURSING HOMES RETHINK BUSINESS MODELS 27

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BY THE NUMBERS 5 BEHIND THE SCENES 6 7

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REV UP BIZ POLL ON MY NIGHTSTAND FRESH DIGS

9 QUOTE/UNQUOTE 10 COFFEE BREAK 11 STYLE

12 News 12 WHAT YOU SHOULD DO AFTER THE EQUIFAX DATA BREACH 14 MY TAKE

16 Real Estate 29 Strategies

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BizTimes Milwaukee (ISSN 1095-936X & USPS # 017813) Volume 23, Number 15, October 16 - 29, 2017. BizTimes Milwaukee is published bi-weekly, except two consecutive weeks in December (the second and third weeks of 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 2017 by BizTimes Media LLC. All rights reserved.

Contents

COVER STORY

18 AI

Get ready for

Special Report

23 Health Care: Senior Living We give you a peek at some of the hottest new senior living amenities, tips on planning for longevity in retirement and an update on the cuts that have forced nursing homes to rethink their business models.

29 SALES Christine McMahon 30 COMPANY VALUES John Howman 31 TIP SHEET

33 BizConnections 33 PAY IT FORWARD 34 PERSONNEL FILE 35 SBA LOANS 36 GLANCE AT YESTERYEAR COMMENTARY 37 AROUND TOWN 38 MY BEST ADVICE

At Reinhart, we always put our clients first.

As long-standing partners in metro Milwaukee’s business success, our attorneys are dedicated to helping clients face important issues, execute sound strategies, and achieve business goals—all while building lasting relationships.

reinhartlaw.com ⋅ 414.298.1000 MILWAUKEE ⋅ MADISON ⋅ WAUKESHA ⋅ CHICAGO ⋅ ROCKFORD ⋅ DENVER ⋅ PHOENIX

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BIZTIMES MEDIA – Like us

NOW

Walker’s veto of historic preservation tax credits upsets developers

By Corrinne Hess, staff writer

Gov. Scott Walker’s line item budget veto of Wisconsin’s historic preservation tax credit program, reducing the per-project cap from $5 million to $500,000, could jeopardize dozens of real estate developments.

“We have several projects on the drawing board that will be directly affected to the point of being infeasible by this and in complete suspension right now,” said Sig Strautmanis of Fox Point-based General Capital Group LLP. “There is one project we are working on that absolutely depends on state historic tax credits and in all likelihood will come to a screeching halt unless the governor comes to an understanding about the potential impact of this.”

BY THE NUMBERS

The University of Wisconsin-Milwaukee publicly announced its

$200

MILLION

fundraising campaign, which began quietly in 2012. So far, $170 million has been raised.

4 / BizTimes Milwaukee OCTOBER 16, 2017

In his veto language, Walker said he objects to continuing a program with almost no limitation on the amount that can be awarded each fiscal year.

“The $5-million-per-parcel limitation does little to curtail the fiscal effects of this program, which has swelled to cause an annual tax revenue loss exceeding $60 million, making it one of this state’s most expensive economic development incentives,” Walker said. “Reducing the per-parcel cap to $500,000 per parcel leaves unchanged the incentives for many of the projects in smaller communities across Wisconsin, while reducing the state’s fiscal exposure on larger projects.”

The change goes into effect on July 1, 2018.

Since 1989, the state has offered a historic tax credit on qualified projects. In 2014, Wisconsin modified its program to increase the amount awarded from an aggregate cap of 5 percent to 20 percent.

During the current budget cycle, the state Legislature voted on a per-project cap of $5 million.

The $5 million cap would not have been detrimental to Milwaukee-area projects.

Of the $177.6 million awarded to Wisconsin projects since fiscal 2014, 54 percent, or $96.2 million, was awarded to Milwaukee projects, according to the Wisconsin Economic Development Corp., which awards the credits.

Only three projects received

more than $5 million in historic tax credits, according to WEDC. “What I am confused about is that the governor, who has a very strong jobs creation agenda, did this,” Strautmanis said. “To me, the state Historic Preservation Tax Credit is a jobs creation program.”

From 2014 to 2016, 15,680 full-time equivalent construction and operations jobs were created by the historic tax credit program, according to a study by Baker Tilly Virchow Krause LLP. These same projects yielded more than $92.4 million in construction taxes and more than $35.2 million annually in taxes from operations, and created more than $16 million in new property taxes, according to the study.

Tracy Johnson, president and chief executive officer of the Commercial Association of Realtors Wisconsin, said the development community was stunned by Walker’s decision.

“We advocated hard for this issue and it was a coalition effort with preservationists, community development, the League of (Wisconsin) Municipalities and others,” Johnson said.

Joshua Jeffers, president of Milwaukee-based J. Jeffers & Co. LLC, who has spent much of his career specializing in converting historic buildings, predicts the decision will prompt many developers to move projects into the pipeline as quickly as possible. n

1

LILA ARYAN PHOTOGRAPHY

BEHIND THE SCENES Anodyne Coffee Roasting Co.

By Maredithe Meyer, staff writer

M

ilwaukee-based Anodyne Coffee Roasting Co. has roasted, brewed and distributed its coffee products since it opened in 1999, and has operated for the past four years out of its Walker’s Point roastery at 224 W. Bruce St. It also sells its products at retail cafes in Bay View – the original roasting location – at the Historic Third Ward’s Milwaukee Public Market and in the Wauwatosa Village. Anodyne ships its coffee to wholesale customers, distributing to all 50 states throughout its 18 years of operation.

Five days a week, Anodyne’s roasting team roasts pounds of coffee beans imported from multiple Latin American and South American countries, while the production team packages the roasted beans to ship to customers. n

1

Anodyne’s roasting facility in Walker’s Point doubles as a café that offers its 11 selections of featured coffees, espresso drinks, craft beer and wine. On weekends, it often hosts live music.

2

Roaster Casey Harris operates one of Anodyne’s two roasters during the roasting process. This one, made by Loring Smart Roast, uses 80 percent less energy than most standard roasters.

3

Production manager Andrea Hawthorne prepares the roasted, packaged coffee beans to be shipped or picked up by Anodyne customers.

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An espresso machine in the café’s coffee laboratory that Anodyne uses to evaluate the quality of its roasts, taste test coffee bean samples, and offer coffee education classes to customers and new employees.

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As part of the “cupping” process, Steve Kessler, director of wholesale operations, takes a whiff of coffee brewed from a sample of imported coffee beans to decide whether to purchase it. biztimes.com / 5

Leading Edge

@BIZTIMESMEDIA – Real-time news

REV UP

IDEAWAKE

LEADERSHIP: Coby Skonord and Trae Tessmann H E A D Q U A R T E R S: 1245 N. Water St., Milwaukee WEBSITE: ideawake.com W H AT I T D O E S: Idea management software F O U N D E D: 2013 E M P L OY E E S: 5 DAN PROFIO PHOTOGRAPHY

N E X T G O A L S: Double employment; raise $750,000 funding round FUNDING: $1.2 million raised Coby Skonord and Trae Tessmann

Ideawake rides a wave of growth

By Molly Dill, staff writer

6 / BizTimes Milwaukee OCTOBER 16, 2017

With several Fortune 500 companies in line for its idea management software, a major health care provider as a client, a spot in award-winning startup accelerator gener8tor’s latest class, and the opportunity to go cash flow positive next year, Ideawake is putting its foot on the gas.

Founded in 2013, and having pivoted its focus a couple of times, Ideawake was recently able to gain traction among large clients like Milwaukee-based Aurora Health Care Inc., Sussex-based Sussex IM Inc. and New Berlin-based Rundle-Spence Mfg. Co., said co-founder Coby Skonord.

“We have four … Fortune 500 companies interested in the stuff that we’ve co-developed with (Aurora),” he said. “It’s all of the sudden like the spigot got turned on.”

That traction is why on its seventh application, the company was accepted to gener8tor from among a pool of 600 startups vying for the six spots nationwide, and will receive a $140,000 investment.

Ideawake’s software, targeted to large companies, helps employers collect, evaluate and implement the best ideas from their employees and customers. The company was originally Inventalator, an open innovation platform for inventors, then it was Crowds, targeted to entrepreneur innovation. Skonord said he knew it was time to pivot when companies were

approaching him about using the product, and when it became clear the cost of entrepreneur customer acquisition was too high.

It has seven global clients, and expects to add another five this year, Skonord said.

For Aurora, Ideawake developed a platform instance with custom branding and its own database of employee users, Skonord said, working with the health care provider for about a year to build up the functionality.

“The goals that those companies have is, ‘How do we maximize engagement?’” Skonord said. “From there it goes into financial impact.”

To keep up with the rush of business, Ideawake plans to double its workforce to about 10 employees by mid-2018.

And while it could go cash flow positive next year as well, Skonord wants to reinvest in growth.

“If I’ve learned one thing over this whole entire time of being an entrepreneur is when you’re riding the waves, put on the gas,” he said.

Ideawake has raised a total of $1.2 million since its inception, including a $550,000 seed round in its current form, and plans to launch a new $750,000 round in the next two months to continue to scale.

By participating in gener8tor, Ideawake hopes to meet both potential customers and potential investors, Skonord said. n

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ALICIA DUPIES Vice president of corporate social responsibility | Milwaukee Bucks

‘Evicted: Poverty and Profit in the American City’

By Matthew Desmond AMONG RECENT BOOKS exploring issues of poverty, it doesn’t get much closer to home than “Evicted: Poverty and Profit in the American City” by Matthew Desmond.

Set in Milwaukee, Evicted tells the story of eight families struggling with eviction – vignettes that paint a broader picture of poverty issues in American cities.

When the book came recommended by Memphis Grizzlies Foundation executive director Diane Terrell, Alicia Dupies, who works in a parallel role for the Milwaukee Bucks

Foundation, knew it was a must-read for her team. So they read it together.

Dupies walked away with a greater desire and passion to make a difference through the Bucks’ social responsibility initiatives.

“Evicted’s setting in Milwaukee – the community we serve – really helped us understand how intertwined many of our focus areas are,” Dupies said. “We have a greater understanding of the challenges that the children we seek to support face, and how trauma changes how we approach our work.” n

“When I’m healthy I can run around all day and night doing what I love—sales.”

Eugene White, Sales Representative Russ Darrow Automotive Group

Aurora Health Care helps businesses build healthier and happier workplaces. We offer more access to exceptional care, including more locations closer to home, more care options and world-class doctors, all at a cost that fits your bottom line.

To hear the rest of Russ Darrow Automotive’s story and to learn how we can work with your company, visit aurora.org/workwell

biztimes.com / 7

Leading Edge

BIZTIMES MEDIA – Connect

DAN PROFIO PHOTOGRAPHY

FRESH DIGS

MILWAUKEE ELECTRIC TOOL CORP. OW N E R / DE V E LOPE R : Wangard Partners Inc. A RC H I T E C T S : Stephen Perry Smith Architects Inc. C O N T R AC T O R : Hunzinger Construction Co. C O S T S : More than $33 million C O M P L E T E D : 2017

8 / BizTimes Milwaukee OCTOBER 16, 2017

BROOKFIELD-BASED Milwaukee Electric Tool Corp. has been adding new products and new employees at a pace matched by few other firms in the region over the past several years, so it only makes sense the company would add new office space, too.

Employees recently moved into a new 200,000-square-foot expansion at the company’s Brookfield campus. Milwaukee Tool president Steve Richman said the facility is “crucial” to meeting lofty growth goals and it “provides an atmosphere of vision and passion so essential in a fastpaced, innovative environment.”

“The intent is to immerse our

employees in an environment reflective of the users they design and develop tools for,” he said.

Milwaukee Tool puts an emphasis on collaboration, so the new facility was designed with plenty of open air creative and cross-functional meeting space, a wide variety of furniture and office space, and natural light from nearly all angles.

The expansion also included updates to the façade of the rest of the Brookfield campus and helped keep the company in its current location.

“This is where our roots took hold and our great heritage has flourished,” Richman said. n – Arthur Thomas

“ QUOTE

unQUOTE

K AT H RY N E D I N

”

CO - AU T H O R , “ $2.0 0 A DAY: L I V I N G O N A L M OS T N OT H I N G I N A M ER I C A” At the Social Development Commission’s recent Summit on Poverty, researcher Kathryn Edin spoke about a book she recently co-authored titled, “$2.00 a Day: Living on Almost Nothing in America,” which explores the consequences of welfare reform that was signed into law two decades ago. Edin and co-author Luke Shaefer explore several questions: How do households survive on virtually no cash income? Where do they live? Why don’t more go to work? n

“(The) relationship between employees and employers has become so badly denigrated in the 20 years since welfare reform.”

“The next time people tell you there are two kinds of poor people—the working poor and the generational poor—tell them it’s time to go back to the drawing board. They are actually the same thing. Ninety percent of just plain poor children have an adult who worked.”

“The ultimate litmus test we endorse for any reform is whether it will serve to integrate the poor – particularly the $2-a-day poor – into society, rather than isolate them from it.”

“It turns out that across the country, the richest places have the richest charitable sectors and the poorest places have virtually no charitable sector at all. So private charities exacerbate, in some ways, rather than ameliorate inequality. But it’s also true that budgets of charities are a drop in the bucket compared to the need we’re talking about today.”

“Welfare has died not just numerically, but it died in the imagination of the poor. When hard times hit in a lot of places across our country, it doesn’t even occur to people to go to welfare’s door. Welfare has become completely unresponsive to economic need.”

biztimes.com / 9

Leading Edge

Presented By:

COFFEE BREAK

Nicholas DelTorto President and chief executive officer Inlanta Mortgage Inc.

W239 N3490 Pewaukee Road, Suite 200, Pewaukee inlanta.com INDUSTRY: Mortgage banking | EMPLOYEES: 250

Recognize the people and organizations that are making a difference every day by providing superior health care in our region.

Categories Include: Advancements in Health Care: Honors a company or individual primarily responsible for a scientific or discovery or for the development of a new medical product or procedure.

Behavioral Health: Honors an individual or an organization for their leadership, commitment and care on behavioral health issues.

Community Service: Honors an individual or an organization for leadership in focusing on solving a particular health care issue.

Corporate Achievement in Health Care: Honors a company or organization that has successfully implemented an innovative health care product, process or service.

Executive Leadership: Honors a senior-level individual who demonstrates strong skills in leading their organization in quality care, collaboration and financial management.

First Responder: Honors a person who arrived on the scene of a healthcare emergency utilizing their training to treat and comfort the patient in need.

Health Care Staff: Honors an individual who has made a significant difference in the wellbeing of others.

Nurse: Honors an individual from the nursing field whose performance on the job is considered exemplary by patients, peers and physicians.

Physician: Honors a physician whose performance on the job is considered exemplary by patients and peers.

Volunteer: Honors an individual who has done volunteer work for the good of one or more people or the entire community.

Winners will be featured in the December 18, 2017 issue of BizTimes Milwaukee

To nominate a hero, visit biztimes.com/hero 10 / BizTimes Milwaukee OCTOBER 16, 2017

• He grew up in Boston and still drops an “r” here and there.

But DelTorto moved to Pewaukee 23 years ago, raised his three kids here and loves the network of friends he has built. “Pewaukee was a great community, really by sheer luck, to fall into.”

• When he’s not crunching numbers, Del Torto spends time with his family, cooks and pilots his Downeast cruising boat and sailboat.

“I still have a home on Cape Cod and I spend a lot of time there. I love being on the water. I love fishing and clamming and swimming and spending time with the family there.”

• DelTorto, 58, worked for 15 years at Fleet Mortgage Corp. and then started his own company, Amerihome Mortgage Co. LLC, in 1997. Amerihome merged into Inlanta in 2010.

• He keeps an entrepreneurial spirit at the organization. “We have a very collaborative, open door policy… Inlanta is very much a unique situation in which the people in the company drive the success of the company. My style is empower people to

do what they want to do and then support them in those efforts.”

• Principles guide them. DelTorto had his employees work together to establish guiding principles and a code of ethics for Inlanta. “They’re pretty simple stuff but I think people in the company have really embraced it (and) take it seriously. Those, simple as they are, have really played a big part in the company.” n

LILA ARYAN PHOTOGRAPHY

Nomination Deadline: October 31, 2017

m e n’s s h o e s ECCO SOFT 7 PREMIUM

PIKOLINOS LOAFER BIARRITZ $189 at Shoo, Milwaukee For a stylish look but comfortable feel, these shoes are suitable for the workday and the weekend. Semi-plantbased tanned leather makes up the outside and the sole is padded with gel-foam.

$180 at Stan’s Fit Your Feet, Milwaukee One of Stan’s newest styles this season, its “whisky” color and lace-up closure makes this shoe a unique option for a casual Friday.

The leathercovered inserts are removable for optimal comfort.

ALLEN EDMONDS MCALLISTER

ALDEN OF NEW ENGLAND BROWN ANILINE PULL-UP BOOT

$395 at Allen Edmonds at The Pfister, Milwaukee Available in walnut, brown or black, this classic Milwaukeemade wingtip shoe completes a formal-professional look.

MAREDITHE MEYER

$549 at Milworks Mens Goods, Milwaukee These brown leather workboot-style shoes are ideal for fall weather and can be dressed up or down. Milworks is the only store in the Milwaukee area – and one of two stores in the state – that sells Alden’s products.

Madison-based Context Clothing is the brand’s other Wisconsin dealer.

biztimes.com / 11

BizNews FEATURE STORY

Equifax breach underscores importance of robust cybersecurity Experts recommend preventive measures for businesses

BY LAUREN ANDERSON, staff writer SOCIAL SECURITY NUMBERS, birth dates, addresses, driver’s license numbers.

The recent Equifax data breach made the sensitive personal information of 145.5 million Americans vulnerable to cyber criminals, placing the victims at risk of identity theft.

For businesses, the threat of data breaches is an ever-present reality with potentially devastating consequences, and the Equifax incident has brought the conversation to the forefront. “(Hackers) now have some of the information on the employees or on the business itself due to the breach,” said Jon Hermanson, sales engineer at Racine-based CCB Technology Inc. “The information that they’re going to be able to glean from that is not necessarily direct technical information, but they can get into other things.”

While some businesses – particularly smaller companies – may assume they are impervious to attack, Hermanson said, they need to be proactive about preventing it and be prepared to respond if one does occur.

“A lot of times they don’t immediately attack, but they will sit there for two to three years and just look and wait for the opportune moment,” Hermanson said.

“So in order to protect from that, we’re telling companies to make sure that your firewall is updat12 / BizTimes Milwaukee OCTOBER 16, 2017

ed, make sure your anti-virus is updated. A lot of smaller companies think they’re not going to be affected by this and they don’t take the time or spend the money to make sure it’s up-to-date. But hackers are always two steps ahead, so it’s key to prepare.”

Hermanson said he has seen multiple incidents in which lapses in cybersecurity protection nearly upend businesses.

“We had a business locally here that had a managed service company that they ended up letting go, but they didn’t realize the backup was being done by (the company) on the device and they got CryptoLocker (a ransomware attack), unfortunately, and it archived all their files for the business,” Hermanson said. “When we said they would have to delete everything and go from backup … the company hadn’t had a backup in close to two years. So you’re looking at a 15-year-old family-owned company that almost lost everything. It can be catastrophic.”

Keeping backups current is an important measure for businesses to take, Hermanson said.

“If you are attacked, some viruses you’ll have to pay $3,000, whatever they demand, or everything is deleted,” Hermanson said.

“So make sure your backups are also up-to-date and working.”

Hermanson said moving some vital information to the cloud will

also protect a business in the case that a backup device is affected.

“We’re seeing a lot of nonprofits and charities Hermanson putting that information into the cloud so they don’t have to manage it and worry about it,” he said. “It’s one way of eliminating the need for an IT professional that you don’t have.”

Another important hedge against attack is training employees to spot and avoid traps and reminding them of security procedures. Breaches can be avoided, Hermanson said, by following a simple rule: if it looks suspicious, don’t click on it.

A common hacker tactic is to slightly alter an email domain, so once an employee clicks a link in an email from a seemingly familiar address, the hacker can gain access to information.

“I can’t stress enough, the internal procedures that your employees and sometimes customers adhere to is vital,” he said. “If it looks suspicious, don’t click on it.”

In the wake of the massive Equifax data breach, Jean Pierre Biagui, a Milwaukee-based certified identity theft risk management specialist, says a quote from former FBI director Robert Mueller rings true: “There are only two types of

companies: those that have been hacked and those that will be.”

Biagui, who is regional vice president for LegalShield, said he’s seen heightened concern following the breach.

“I’ve been getting a lot of calls, mostly from companies, because a lot of them are worried about their employees,” he said. “Half of the U.S. population has been affected by this. So if you have run credit, Equifax has your information.”

Even for those not directly affected by the Equifax breach, Biagui said, the possibility of personal information being compromised is ubiquitous. Job applications, insurance enrollment, online purchases – all make an individual’s information accessible.

“Your information is out there,” he said. “If you have filled out an application, your social security number, address and birth date are on there. If you didn’t get

that job, did you really get your information back? You did not.

Somebody has your information.”

Meanwhile, the Equifax breach has left many people seeking solutions to protect themselves from identity theft.

Brian Wickert, president of Butler-based Accunet Mortgage, and his wife were among those affected.

Upon learning his data was hacked, Wickert underwent a time-intensive process of protecting his credit identity.

“What I did took some time, but I decided I didn’t have a choice,” Wickert said.

Wickert said he discovered enrolling in LifeLock’s standard monitoring program wasn’t enough, comparing it to a good alarm system that alerts the user when something has already gone wrong.

Wickert decided to freeze all

PRESENTS:

three of his and his wife’s credit records, which required him to complete the lock process a total of six times – three times for himself and three times for his wife via the Equifax, TransUnion and Experian credit bureaus’ websites.

Biagui recommends the “three-pronged stool” approach of monitoring possible identity theft, securing a fraud investigator to fix the problem, and finding legal representation, noting that the majority of identity theft issues will require access to legal counsel.

The Equifax breach also could have downstream effects on businesses, according to Jeff Olejnik, director of risk advisory services for Wipfli LLP. “Businesses are going to need to be very cautious and alert for identity theft and people utilizing fake credentials,” he said. “Companies that extend credit – including financial institutions – or

Wickert

Olejnik

retailers that extend credit to your clients for purchases – you have to have heightened awareness that you have to do additional due diligence because someone might be using false identification.”

Employers will also need to be more scrupulous in the hiring process, Olejnik noted.

“Somebody might be presenting an inaccurate or false identification, driver’s license or social security number,” he said. “So it will have some implications on businesses, especially for businesses that have requirements for different security clearances.” n

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December 7, 2017 • 7:00 - 9:30AM Potawatomi Hotel & Casino In just 90 minutes, attendees at the inaugural 90 Ideas in 90 minutes event will walk away with the collective knowledge of nine of southeastern Wisconsin’s top CEOs. Each speaker will be given five minutes to share some key ideas and philosophies that they believe have helped their business succeed, followed by 5 minutes of Q & A from the audience. Attendees will leave with information, insights, and a publication containing all 90 ideas to help improve their business.

Confirmed Presenters: • Dr. Eve Hall, President & CEO – The Milwaukee Urban League • Jerry Jendusa, Co-Founder & Partner – STUCK LLC • Vincent Lyles, President & CEO – Boys & Girls Clubs of Greater Milwaukee • Ugo Nwagbaraocha, President – Diamond Discs International • Vince Shiely, Partner – Lubar & Co.

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biztimes.com / 13

MARQUETTE UNIVERSITY COLLEGE OF BUSINESS ADMINISTRATION MARQUETTE UNIVERSITY COLLEGE OF BUSINESS ADMINISTRATION

BUSINESS BUSINESS LEADERS LEADERS FORUM FORUM “Leading with Vision, Kindness and Optimism” “Leading with Vision, Kindness and Optimism” Steve Cannon

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Leading Edge

MY TA K E

What should be done to address the City of Milwaukee’s budget woes?

Milwaukee Mayor Tom Barrett recently presented his proposed budget to the Common Council.

It includes police and fire department cuts, including position reductions, but no layoffs. Some critics, including Alderman Tony Zielinski, say a better option would be to cut funding for the downtown streetcar project. n

Marquette University Marquette University Alumni Memorial Union, Monaghan Ballroom Alumni Memorial Union, Monaghan Ballroom 1442 West Wisconsin Avenue 1442 West Wisconsin Avenue Register online at Register online at muconnect.marquette.edu/businessleaders17 muconnect.marquette.edu/businessleaders17

by October 25.

by October 25.

MAYOR TOM BARRETT ALDERMAN TONY ZIELINSKI

GAIN NEW CUT SPENDING REVENUE ON THE SOURCE STREETCAR RESERVE YOUR BOOTH!

MAY 31, 2018

THE PROBLEM “We have increased employer pension obligations, increased costs to continue service delivery and constrained revenue options. Our city, unlike every other major American city our size, is severely limited in our revenue options. State law limits us to two primary sources of revenue: state shared revenue and property taxes.”

“Barrett laid out his budget plans, which include cuts to Milwaukee’s police and fire departments, all while he continues to spend recklessly on the streetcar project. I am appalled that he would cut police and fire positions without first cutting exorbitant spending on the streetcar. Where are Mayor Barrett’s priorities?”

STATE GOVERNMENT IMPACT “It is clear local government funding is not a priority in Madison and the decreased, frozen shared revenue formula is costing us tens of millions of dollars. The amount of state revenue generated in Milwaukee now far exceeds the amount of state aid provided to us. The beneficiary of our economic growth is the state’s coffers. That’s because all Milwaukee businesses deliver sales and income tax to the state treasury.”

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14 / BizTimes Milwaukee OCTOBER 16, 2017

“The state believes the streetcar is a waste of taxpayer dollars and has inserted a budget amendment restricting the use of TIF dollars, so the city cannot use that money for the operation of the streetcar. The mayor has failed to identify a long-term funding source (to cover the entire cost of) the streetcar’s operation and maintenance, and our police and fire departments could be footing the bill with their jobs.”

SALES TA X “I am not asking the state for more money.

I am not asking the state to raise the sales tax. I am asking (the state) to let the people of Milwaukee decide if they want that investment in public safety.”

“The mayor has to understand that the state will not help the city as long as he continues to spend money we don’t have on the streetcar.”

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Surround yourself with other business owners who do business in a way that you admire. Invite them to events. Ask them about their daughter’s fourth birthday party. Listen to their pains, their thoughts, their wins. Share awards, contests, grants and resources that are hot. You will both be better because of it. Being a business owner is hard, and your tribe will be a vital piece of your success (and sanity)!

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Real Estate

@BIZTIMESMEDIA – Real-time news

Renderings of the Plankinton Clover Apartments

TKWA URBANLAB

Private Entry – Live/Work Units

Grand Avenue redevelopment makes some progress

The stores that used to line the second floor of the Plankinton Arcade building at The Shops of Grand Avenue are currently being transformed into 50 apartments.

The Milwaukee County Historical Society has opened Brew City MKE, an exhibit paying homage to the city’s love of beer, in the former Applebee’s restaurant space

along West Wisconsin Avenue.

Next up, at least according to the ambitious redevelopment plans unveiled 18 months ago by Grand Avenue’s owners, should be a large office development.

In April 2016, the mall’s ownership group, Milwaukee-based Aggero Group LLC and Minneapolis-based Hempel Cos., unveiled a $65 million plan for the long-struggling downtown Milwaukee mall, which they purchased in December 2015 for $24.5 million.

The plan included up to 120,000 square feet of office space on the second and third floors, eliminating the current food court.

Dining would be moved to a first floor food hall, the group said.

Since the plans were announced, the ownership group has purchased the upper four floors of the six-story Matthews Building at 301 W. Wisconsin Ave., which is located just west of the mall entrance. It already owned the first two floors of the building.

By purchasing the building, which is connected to the shopping center on the second and third floors, the ownership was able to make improvements that made it more attractive to office tenants.

Watton Law Group has since leased 10,000 square feet on the fifth floor of the Matthews Building.

Grand Avenue has made other

BIRD’S EYE VIEW: T H E M AY FA I R CO L L E C T I O N DEVELOPERS OF THE MAYFAIR COLLECTION in Wauwatosa continue to add to the mixed-use development along West Burleigh Street.

JON ELLIOTT OF MKE DRONES LLC

Chicago-based HSA Commercial Real Estate is in talks with a Chicago-based restaurant group to open a full-service restaurant in the western half of a new 18,400-square-foot building currently under construction.

16 / BizTimes Milwaukee OCTOBER 16, 2017

The east side of the building, facing Whole Foods, will be occupied by a bar, hair salon and entertainment area, said Brenton Schrader, vice president of retail leasing and marketing with HSA. This spring, Milwaukee-based Fiduciary Real Estate Development Inc. began building up to 1,050 apartments at the Mayfair Collection. The apartment buildings will also include 50,000 square feet of retail space.

Schrader said HSA is in discussions with an anchor that will become the signature retailer for the residential portion of the Mayfair Collection.

windows in some parts of the space, and parking, which brokers say is unique for the downtown market.

The drawback, brokers say, is still the stigma West Wisconsin Avenue has for some office users.

Jack Jacobson, principal at MLG Commercial, said with creative thinking and the right tenant, he thinks the office space could be leased at the Grand Avenue.

“My initial gut reaction would have been no, but if you look at Schlitz Park and what Gary Grunau did there, (that shows) it’s doable (at Grand Avenue),” Jacobson said.

Jacobson also pointed to the residential development that has occurred west of the Milwaukee River downtown, which should help spur office and retail development in that area.

“If you can get millennials living on that side of the river, there will be employees,” Jacobson said.

“We just had a 20,000-square-foot tenant looking at the ASQ building.

They went in a different direction, but five years ago, they would have never considered that location. I consider that pretty positive.”

Ned Purtell, a partner with Founders 3, said it makes sense for office users to look to the west side of downtown, considering the Historic Third Ward and Central Business District have continued to grow.

“It’s logical that at some point, that activity will continue to spill out,” Purtell said. “I think if they gut (space in Grand Avenue), and have a shell to show tenants, it would lease relatively quickly.

Trying to lease from an information sheet is difficult.” n

KAHLER SLATER

progress, as well. Fresenius Medical Care will lease about 12,000 square feet on the ground floor of the Plankinton Arcade for a dialysis clinic. Bike sharing organization Bublr Bikes moved its headquarters from Schlitz Park to Grand Avenue earlier this year.

To disguise the clinic from passersby on Wisconsin Avenue, a digital LED animated graphic art and civic display will be added to the windows, said Chris Socha with TKWA UrbanLab, who is designing the updated Grand Avenue. The owners will need approval from the city Board of Zoning Appeals before the display can be added.

The 50 apartments on the second floor of the Plankinton Arcade, called Plankinton Clover, will be available in spring 2018 “We want to honor the elegance of the Plankinton building and we are doing that by recreating historic storefronts that would line and face the public passage,” Socha said.

About 15 apartments will have their own entrances from the atrium, Socha said. Those units will have private porches that are decorated like historic storefronts and look out into the mall.

The mall owners are still hoping to attract a grocery store, and now that the apartments are being constructed, attention will be turned toward the west side of the mall and the offices, Socha said “We’ve got some really exciting stuff in the works to make the west side (of the mall) a real destination for the city,” Socha said.

“We’ve been testing the waters (regarding office tenants) to see what the appetite is out there in terms of what people want. It has taken awhile to get to this point. It will be game changing.”

Colliers International|Wisconsin is leasing the office space. Colliers brokers referred questions to Tony Janowiec, one of the mall owners, who has not returned calls or emails from BizTimes about the Grand Avenue project for several months.

Whoever leases space on the second and third level of the mall will overlook the rest of the development. They will also have large floor plates, skylights, floor-to-ceiling

MAYFAIR MALL HOTEL A developer is proposing a 196-room hotel at the southwest corner of the Mayfair Mall campus in Wauwatosa, where an office tower is currently located.

HKS Holdings is planning to redevelop the 12-story, 120,000-squarefoot office tower on the northeast corner of North Mayfair Road and West North Avenue into a luxury hotel, according to plans submitted to the city of Wauwatosa.

The project includes a rooftop deck and a “destination restaurant” on the ground floor. HKS plans on keeping the skeleton of the tower to transform it into a hotel.

Chicago-based GGP Inc. (formerly known as General Growth Properties), which owns the office tower and Mayfair Mall, announced in 2015 that it would likely demolish the office building for retail development.

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biztimes.com / 17

STORY COVER

GET READY FOR

AI

BY LAUREN ANDERSON, staff writer

IN THE FALL OF 2016, OLIVER BUECHSE, a Green Bay-based strategy consultant, attended a conference in Silicon Valley with a focus on disruption in the financial industry.

Interacting with the artificial intelligence and fintech community, Buechse noticed something different about the discussions there. Concepts like artificial intelligence and machine learning weren’t theoretical, far-off possibilities, but rather present realities. AI, clearly, had already arrived on the West Coast.

“All of California was abuzz about AI,” Buechse said. “I thought, why aren’t we talking about this in Wisconsin?”

Wisconsin’s apparent tardiness to the conversation concerned Buechse and he left compelled to spread the word.

“Then I thought, ‘Well, what am I going to do about it now that I know?’” he said.

WHAT IS AI? Eliciting fear or optimism, hype or indifference, artificial intelligence can be an elusive concept to pin down.

Leading thinkers in the tech industry diverge on the subject. Entrepreneur Elon Musk has made headlines with near-apocalyptic predictions that the race for artificial intelligence will ignite World War III and that AI poses an existential threat to humans. Microsoft co-founder Bill Gates, meanwhile, has dismissed such concerns. Facebook co-founder Mark Zuckerberg has struck a more optimistic tone, saying AI has the potential to “make the world better.”

18 / BizTimes Milwaukee OCTOBER 16, 2017

So, what is this concept that could threaten humanity, improve the world or, at the very least, stir up such a spirited debate?

The digital disruption of technological capabilities like AI, the Internet of Things and blockchain – the technology underpinning cryptocurrencies like Bitcoin – is considered by some to represent the latest industrial revolution. The first industrial revolution introduced mechanization in the late 18th century; the second brought mass production the following century. Automation and motion control introduced in manufacturing in the late 20th century, some argue, marked the third industrial revolution.

Now underway, the so-called fourth industrial revolution has brought advancements as machines perform increasingly complex tasks that begin to approach the flexibility of human labor.

The rise of computing capability has enabled the harnessing of vast amounts of data, which has propelled forward computer systems’ ability to perform tasks that once were thought to require human intelligence.

AI is changing business operations in several ways: the ability to read and understand unstructured information and pull insights based on patterns that can inform business decisions; enhancing customer engagement with increasingly humanlike chatbots (think Alexa and Siri); and optimizing business outcomes with capabilities like machine learning, voice-to-text translation and visual recognition.

What exactly AI will mean in terms of job displacement and reshaping labor remains to be seen, but research firm Forrester forecasts that 25 percent of all job tasks across the globe will be performed by AI by 2019.

Chicago-based global management consulting firm A.T. Kearney estimates that 13 percent of jobs in the U.S. – 19 million total – will be replaced by AI by 2024.

Forrester offers a more conservative projection, forecasting that 7 percent of U.S. jobs will be replaced by robots, AI, machine learning and automation by 2025 – a figure that takes into account the number of jobs expected to be both replaced and created thanks to those technologies.

HERALDING AI’S ARRIVAL Buechse left Silicon Valley convinced that Wisconsin, on the whole, was lagging in its preparation for AI’s impending impact.

“The whole game is going to be changed,” he said. “And if we want to play in the game in Wisconsin, we have to get in the game. Otherwise this revolution will happen to us. We’re going to be on the receiving end of productivity enhancements rather than participating in it.”

It wasn’t feasible for him to send Wisconsin’s business executives out to California, but Buechse figured the message could be brought to them.

He began connecting with others who shared his sense of urgency and spreading the message to those who were unaware – representatives from

the banking and finance industries, technologists, educators and elected officials.

Those grassroots conversations materialized earlier this year into a formalized initiative, called ACTION Wisconsin, aimed at creating awareness of disruptive technologies and their impact on the state’s businesses, workforce needs and educational system. The group is ad hoc, it isn’t looking for funding, and its members hope to dissolve it once its message spreads more widely.

Kenneth Kortas, a partner at Wauwatosabased accounting firm Wipfli LLP, signed on to the initiative, recognizing the coming transformation of his industry.

“From our perspective, this is going to dramatically change our industry in the next three to five to seven years,” Kortas said during a recent conversation among ACTION Wisconsin representatives in a Wipfli conference room. “What we do in accounting and taxes is going to be dramatically changed. I think every industry is asking that same question: What’s this going to mean relative to our workforce, to how we serve our customers, our clients?”

The accounting industry has already seen the shift begin, as IBM Watson – the question-answering computer that famously beat out human competitors in a game of “Jeopardy!” six years ago – recently began aiding H&R Block in the tax filing process.

“Watson is studying how H&R Block is interacting with consumers,” Kortas said. “It’s studying conversations – how do you interact with a tax filer so that the person doesn’t need to be there? Is that going to impact higher-end business tax work? We could stick our head in the sand and say it will never happen, but the reality is it’s going to be there.”

Intelligent Digital Avatars (iDAvatars), based in Mequon, develops avatars that are used for customer service purposes. One of the company’s avatars, Holly, can answer questions about advance directives.

Norrie Daroga, CEO of iDAvatars

biztimes.com / 19

STORY COVER

PREPARING FOR AND APPLYING AI These conversations aren’t just happening in a Wipfli conference room.

Timothy Schaefer, executive vice president of client and digital experience at Milwaukee-based Northwestern Mutual Life Insurance Co., said the company is exploring AI applications that could affect the business on several fronts.

“It’s grown out of our work on innovation and particularly in the space of more advanced analytics work,” Schaefer said. “We see a number of potential applications of the technology, from personalizing the experience our clients have to adding more sophisticated elements to financial planning, all the way into what I would say are less client-facing applications that look at optimizing things in our investments portfolio and automating back end service processes and operational work.”

Using machine learning to optimize risk analysis and underwriting decisions is a natural next step, he said. The underwriting process currently requires gathering lots of data regarding a client’s health – a process that can involve collecting fluids or performing an electrocardiogram.

Instead, he said, clients could permit access to data through alternative sources, allowing for a less intrusive information-gathering process.

With the adoption of any new technologies, Schaefer said, the goal is to deploy them in a way that consumers won’t feel the change.

“If we do AI right, I don’t think people should notice a drastic change,” he said. “They should just notice a better experience, they should notice that things are more seamless, maybe more personalized. Our goal with these technologies isn’t to create a real drastic shift in how people experience the company, but rather to experience a continuous improvement in their relationship with the company.”

The region’s health care industry is also preparing itself. Froedtert & the Medical College of Wisconsin’s cancer network next year is slated to introduce IBM Watson Health’s computing software, which is designed to improve the clinical trial matching process with cognitive computing.

The tool digests structured and unstructured data about patients, including pathology reports and physician notes, and matches that against possible cancer clinical trials – of which there are more than a human can analyze efficiently – with the goal of finding the most personalized treatment option.

Mike Rogers, director of strategic innovations at Aurora Health Care, said he envisions machine learning and AI affecting health care broadly, particularly in helping with the treatment plan process.

Rogers expects doctors will be using AI-powered technologies to optimize treatment plans within three years.

On the consumer side, he said, there is plenty of opportunity for AI to change the patient experience, 20 / BizTimes Milwaukee OCTOBER 16, 2017

including with image recognition and chatbots, but providers are cautious when it comes to rolling out new technologies that affect the clinical experience.

“We want to have rigor around that,” he said.

“There is not a lot of room for error.”

HOLLY THE AVATAR “Hello, thank you for coming. My name is Holly and I’m here to help with your advance directives,” says Holly, the blue-eyed, blonde-haired, tan-suited avatar, brushing her hair aside as she speaks.

Holly is not a human, but she can field questions about the process of completing the legal documents related to end-of-life care decisions like a human could.

She’s the product of Mequon-based Intelligent Digital Avatars Inc., a startup that develops avatars used in various industries for customer service purposes. The avatars are useful for several applications – insurance companies using the avatar to guide clients through the enrollment process, for example; or a university using the avatars to field students’ questions about credit requirements.

More than a bot that simply spits out answers, these avatars, which are built on IBM Watson’s framework, use advanced technology, including natural language processing, and can demonstrate human characteristics like empathy.

What sets iDAvatars’ products apart is their ability to respond to a user with verbal acknowledgements and physical gestures, making the user feel heard, said Norrie Daroga, chief executive officer of iDAvatars.

Finding the right aesthetic for the avatars was important, Daroga said, citing the “uncanny valley” hypothesis – that humans find robots with human characteristics appealing until they become too similar, at which point that likeness becomes off-putting. iDAvatar’s characters are cartoon-like, but the animation allows them to do more than just blink their eyes and stiffly move their arms. They move in a more natural way, emulating human movements – Holly’s hair gesture, for example.

“We’re providing an experience so that you can interact with a device and feel it could help you,” Daroga said.

“Alexa is (like) listening to a football game on the radio,” he added. “And using our virtual characters is like watching it on TV.” And while the ability to lend a listening ear to someone may seem like a uniquely human function, Daroga said, machines might be better at it.

“The ability to listen or make somebody feel like they were heard – a machine can actually do a better job,” Daroga said. “The reason is a machine doesn’t make you feel like it judges you and that’s the No. 1 reason you might shut down, if you feel like your opinion doesn’t count or what you’re trying to express doesn’t matter.” iDAvatar’s advancements in developing emotionally-astute, communicative avatars place it in rare company in the AI world, Daroga said, which

makes the company’s headquarters in an unassuming, nondescript Mequon office notable. The decision to be in the suburb, Daroga said, was one of convenience – he lives there and didn’t want to move, despite suggestions that he should.

While noting the Midwest’s cautious proclivities when it comes to adopting new technologies, Daroga said it’s also wrong to assume the region can’t make its own contributions. Still, he said, it’s challenging to find the right development and design skills in this area.

“There’s a fallacy that this can’t be built here,” he said. “But, when I’m told it’s impossible, then I have to do it.”

At RokkinCat, a software contracting company in downtown Milwaukee, software architect Mitchell Henke said the firm has seen an increase in demand for machine learning and AI projects over the past year, particularly on how to improve operations with those capabilities.

Recently, the company built a recommender system that makes suggestions for new users to follow within an app. The company has also worked on internal protoyping of image recognition, image manipulation and recognizing an article’s author based on text.

“We’re exploring and playing around with these types of projects to understand it better, and be able to see if we can solve a given client’s problems with machine learning or AI,” Henke said.

Over the summer, Henke started a group for people interested in machine learning and AI after noting a lack of venues to discuss those topics. The group, which has drawn about 50 attendees at each monthly meeting, highlights local people who are working on AI and machine learning applications.

“There wasn’t a lot of sharing of that kind of information before, at least in the software world,” he said. “We wanted to let people see what they can do, so we try to find people who are doing it and can talk about it … And it’s been going well.

There has been a lot of interest.”

HISTORY LESSONS If AI inspires alarm in some and excitement in others, Thomas Kaczmarek, director of Marquette University’s master of science in computing program, can be found somewhere in the middle – the result, in part, of having seen the successes and letdowns of the last big wave of AI enthusiasm.

Kaczmarek recalls the excitement related to AI in 1990.

“There was tremendous enthusiasm about the ability to build expert systems – to build a computer that would take the expertise of one person and make it available to many others,” Kaczmarek said. “The expectation was that you would have all these really smart systems that everyone could use.

There was a huge investment at the time in both hardware and software and it was expected that all of that was going to radically change business.”

A “tremendous amount of venture capital” spent on AI technologies in the ’90s didn’t reap lasting rewards, Kaczmarek said. He was involved

in an AI startup called Inference Corp. that enjoyed the backing of Ford Motor Co., where he led expert systems projects. It was one of three AI companies at the time that obtained significant equity investments from major companies, he said. Inference operated for about a decade before dissolving.

“There were huge expos, meetings and conferences with wild aspirations about what could be accomplished, but none of those three companies survived. The companies that built the hardware we were using – none of them survived or were even absorbed. There is very little left of all the investment that was made.”

Kaczmarek said lofty aspirations were stunted by a limitation of human resources. There simply weren’t enough engineers to build the systems.

“And we quickly used up all the power that the new computers gave us,” he said.

When considering AI today, he says the most significant improvements have been in pattern recognition capabilities. He sees its potential impact on a host of industries: marketing, health care, finance.

Predicting stock prices? Not so much.

“Good luck,” he said. “People tried to do that with expert systems and it didn’t work then either.”

But for all of the projections of increased efficiency and improved processes, Kaczmarek is quick to note the limitations of AI.

ABOVE: RokkinCat, a software contracting company in downtown Milwaukee, has seen an increase in demand for machine learning and AI projects over the past year.

RIGHT: Mitchell Henke, a software architect at RokkinCat, organizes a Meetup group for people interested in AI and machine learning in Milwaukee.

Fraud detection in the financial industry is a good use of the technology, Kaczmarek said.

But, once detected, fraud still requires human intervention to do something about it.

Manufacturing, he said, stands to become more efficient with increasingly intelligent robots. But they are still expensive, require an engineer to build them, and aren’t immune to the susceptibilities of any physical system.

“As humans, we learn to be productive,” he said. “And we will be more productive and we will do more and better things as a result. Will we run out of things to do? I don’t think so.” n biztimes.com / 21

PRESENTING THE AWARD FINALISTS: Each year, BizTimes Media honors reader-nominated corporate citizens and nonprofits for their ongoing commitment to making Milwaukee a better place to live, work and play. BizTimes is pleased to announce this year’s finalists:

PRESENTS THE FOURTH ANNUAL:

Corporate Citizenship Awards

2017

Corporate Citizen of the Year • JPMorgan Chase • Kohl's • West Bend Mutual Insurance Corporate Volunteer of the Year • Nick Obrochta, Kohl's Corporation

NOVEMBER 2, 2017 | 7:30AM - 9:30AM ITALIAN COMMUNITY CENTER

• Robert Kennedy, WE Energies, Inc. In-Kind Supporter • Anthologie, Inc. • Bartolotta Restaurants

HELP YOUR BUSINESS, HELP MILWAUKEE Solve your labor shortage and get engaged in social change Business owners who seek to fill the labor shortage and grow their companies should make plans to attend the fourth annual Nonprofit Excellence Awards, where we will discuss solutions to develop entrepreneurs and employees in Milwaukee.

Companies and nonprofits in southeastern Wisconsin can collaborate to solve the problems facing businesses, while benefitting the community. Milwaukee’s population suffers from a lack of opportunity.

Take action to address your skills gap by finding creative solutions. Create jobs and drive economic growth by providing those job opportunities and training to disadvantaged workers. Become engaged in your community.

On Nov. 2, hear from employers and community leaders involved in the efforts to foster economic stability, fill the skills gap and generate momentum for Milwaukee.

Panelists:

• SafeNet Consulting Next Generation Leadership • Molly Schweiger, PNC Financial Services • Benjamin Juarez, Public Policy Forum Lifetime Achievement • Jim Lindendberg, Lindy Enterprises (JML Holdings, Master Z's) Nonprofit Organizations, Leadership & Support Team Awards Nonprofit Collaboration of the Year • Next Door • SaintA • St. Augustine Preparatory Academy /Walter Schroeder Aquatic Center Nonprofit Executive of the Year

• Bill Krugler, president, Milwaukee JobsWork [1]

• Patti Gorsky, Make-A-Wish Wisconsin

• Cheryl Fritz, business development manager, STEP Industries [2]

• Keith Stanley, Near West Side Partners, Inc.

• JoAnne Johnson-Sabir, The Juice Kitchen, Sherman Phoenix [3]

• Ellen Blathers, Serenity Inns, Inc.

• Austin Ramirez, chief executive officer, HUSCO International [4]

Nonprofit of the Year (Large)

• Joaquin Altoro, vice president, Town Bank [5]

• Beyond Vision

Moderator:

• Milwaukee Rescue Mission

• Kimberly Kane, founder and president, Kane Communications Group [6]

• The Threshold, Incorporated Nonprofit of the Year (Small) • Greater Milwaukee Committee • Hispanic Professionals of Greater Milwaukee

[1]

[2]

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• Summit Educational Association, Inc.

REGISTER TODAY! AT BIZTIMES.COM/NPAWARDS PRESENTING SPONSOR:

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Special Report HEALTH CARE & SENIOR LIVING

Living longer?

Retirees need to prepare to pay for it

By Lauren Anderson, staff writer AS PROFESSIONALS CLOSE OUT THEIR CAREERS TODAY, they have some good news to look forward to: a long post-retirement life.

Healthier lifestyles and medical technology advancements have spurred significant growth

in life expectancy in recent decades.

The downside? Ensuring there is enough in the coffers to pay for those additional years.

As Americans live longer and longer, the challenge of planning for retirement is intensified.

“I certainly see it can be a problem if we start living to 120 and longer,” said Aaron Kowal, managing director of Waukesha-based Kowal Investment Group LLC. “I think human longevity is going to go through the roof, so it will certainly take more planning overall to try to make it.”

Between 1989 and 1991, life expectancy at birth in Wisconsin was 77.4 years. By 2010 to ’12, it had increased to 80.3 years, according to the Wisconsin Department of Health Services.

A man who is 65 today can expect to live to 84, and a woman the same age today can expect to live to 87, on average, according to the U.S. Social Security Administration. One in four 65 year olds today will live past 90, and one in 10 will live past 95.

When Kowal works with clients on cash flow plans, he runs projections out to age 99, often prompting incredulous reactions.

“Most people say, ‘I’ll never live that long,’”

Kowal said. “But I say, ‘Well, you’ve already outlived your parents by 10 years so you don’t know.’ With medicine and modern technology, you never know.”

Housing and health care can take a significant bite out of retirees’ budgets, and planning for those costs can be difficult, as no one can fully anticipate their future needs.

A recent health care cost estimate from Fidelity Benefits Consulting indicates that a 65-year-old couple retiring this year will need an average of $275,000 to cover medical expenses throughout retirement – a figure that excludes costs associated with nursing home care. Those projected costs are up from $260,000 in 2016.

While Medicare covers many health-related expenses for retirees, it’s not all encompassing.

Services including dental, eye exams and longterm care, or help with everyday tasks, are not generally covered by Medicare.

Meanwhile, among people ages 57 to 61, 56 percent will stay in a nursing home at least one night during their lifetime, according to a recent study from RAND Corp. Among that age group, 10 percent will spend three years or

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biztimes.com / 23

more in a nursing home.

“No one knows if they’re going to need it,” Kowal said. “And with interest rates so low, combined with the nursing home industry being, I believe, the highest regulated industry in the country, it’s pushed those costs way, way up.”

The median annual cost of a semi-private room in a nursing home in the Milwaukee area is $110,748, or $132,492 for a private room, according to Genworth Financial Inc. About a third of Americans in the 57 to 61 age bracket will spend their money on nursing home care over their lifetimes, the RAND study said, while 43 percent will be covered by private or public insurance.

While most Americans will need some type of long-term care, the RAND study found that just 12 percent of people in their early 60s take up long-term care insurance, which can be pricey. Kowal said he recommends life insurance with a long-term rider to his clients for a more affordable option.

Wisconsin also has a long-term care insurance partnership program aimed at encouraging people to plan for their future care needs, whether in their home, in a community-based setting or in a nursing facility. Under the pro-

gram, an amount equal to the amount of benefits a person receives under qualifying insurance policies is excluded when determining the individual’s Medicaid eligibility and the amount to be recovered from the individual’s estate.

Kowal “If the policy covers $400,000 of long-term care needs, the state will look past $400,000,” Kowal said. “So if you use all those benefits, they won’t make you spend down all your money – they will only make you spend down to however much the long-term care policy paid out. So maybe you don’t have to sell your house or maybe you can still pass on some sort of legacy.”

Given the projected longevity of retirement, inflation heightens the challenges of financial planning.

Take the $111,000 semi-private nursing home room, for example. In 2047, that same room will cost $268,812, according to Genworth Financial projections.

“Inflation is that insidious thing that lurks there,” Kowal said. “...Clients are amazed when we look at the cash flow analysis that says, ‘You

need $120,000 a year to live off of now, and in three years, you’ll need $350,000 to live off of.’”

Kowal said he advises clients that long term, stocks are the best hedge against inflation.

“People should have some in stocks to help keep up with the pace of inflation, because income from fixed income isn’t going to hold up as well as we hoped it would,” he said.

Still, Kowal said, the solution to retirees having to plan for more retirement years is simple.

“It really is about planning on the front end so you don’t run out on the back end,” he said.

“With more planning, we’re going to have to continue to research and to develop strategies in our industry because I think people are going to live a lot longer. Nothing should be off the table when it comes to planning … Have a plan, execute the plan and, most importantly, monitor the plan.”

And while life expectancies continue to stretch longer, that’s no reason to delay financial planning and saving for the future.

“It gets harder to fix mistakes the older you get,” he said. “With the power of compound interest, you can make a lot more if you save more early, even if you put away less. So it’s important to get going early.” n

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Special Report HEALTH CARE & SENIOR LIVING

Beauty, bistros and bars: Today’s senior living facilities have it all

By Corrinne Hess, staff writer WHEN RYAN NOVACZYK’S GRANDMOTHER Betty came to live with his family after developing Alzheimer’s disease, they decided the best way to keep her healthy was to keep her busy.

Betty enjoyed the outdoors, so she helped the family rake, pull weeds and garden.

Most of the days, she went to bed because she was tired, not because she was overmedicated, Novaczyk said.

In 1998, the family started New Perspective Senior Living in Eden Prairie, Minnesota, with a strong focus on amenities for seniors.

When New Perspective Senior Living opened a $30 million, 135-bed senior living facility in August 2016 in Brown Deer, it included a pool table, a library, a Starbucks and a pub, where residents are served two free drinks a day.

The company also has local facilities in Brookfield, Mequon and West Bend.

“Every building has about 40 to 45 percent of common space, which is very high for our industry,” Novaczyk said. “With every new project we have, we find ways to improve. It has been the evolution of the business, but also the mindset of trying to get people out of their rooms and into the community spaces so they are living life on purpose.”

Just as today’s luxury apartments include everything from walking tracks to heated swimming pools, so do the newest senior living facilities.

Baby boomers are accustomed to a lifestyle where all of their needs are met, so when they move into a retirement facility, there is demand for high-quality communities, said Ben Mandelbaum, chief operating officer of New Jersey-based LTC Consulting Services and Senior Planning Services.

“Baby boomers can’t be offered a onesize-fits-all solution,” Mandelbaum said. “The baby-boom generation invented the idea of mass customization and many assisted living communities and skilled nursing facilities now make it their aim to appeal to this new generation of seniors.”

Full-sized gyms, trained chefs who have studied at top cooking schools, spaces that have been decorated by professionals and numerous social activities, including entertainment areas with age-modified Zumba and belly

One of the pubs at a Heritage facility. Most of the modern senior facilities now include pubs for residents.

A Snoezelen room at a Heritage Senior Living facility.

dancing classes, have redefined the aging in place movement, Mandelbaum said.

At West Allis-based Heritage Senior Living LLC, which has 14 locations throughout Wisconsin, most campuses offer a pub area where residents can bring their own wine or enjoy the facility’s happy hour. There are also structured entertainment nights, warm water therapy pools, movie theaters and beauty salons.

Four different wellness packages are offered, ranging in price from about $100 a month up to $900 a month. The packages in-

clude massages and other spa-type amenities, said Debbie Miller, Heritage’s vice president of sales and marketing.

“We try to foster an overall campus resort feel,” Miller said. “We can provide an all-inclusive luxury resort package.”

For its memory care patients, Heritage offers multi-sensory rooms, which utilize light, sound, aromatherapy and touch to stimulate the brain.

These spaces, called “Snoezelen” rooms, are available throughout the day to anyone biztimes.com / 25

Eastcastle resident Harriet Herrick, who is a professional artist and retired art teacher.

who needs them to reduce stress and agitation, Miller said.

During the late 1970s, two Dutch therapists began experimenting with a sensory tent to increase enjoyment for people with intellectual disabilities.

In 1992, the first U.S. Snoezelen room opened. The rooms are now used in a multitude of settings, including schools, hospitals and long-term care facilities.

“We are trying to take a different approach to therapy and reduce agitation, reduce medication,” Miller said. “Even just by taking a few

Eastcastle resident Larry Hammon, who oversees the garden at Eastcastle, which is planted, maintained and harvested by residents.

minutes to sit down and have awareness of your surroundings can help with relaxation.”

Eastcastle Place, 2505 E. Bradford Ave. on Milwaukee’s East Side, has an artist studio with two kilns.

Harriet Herrick, a retired art teacher and professional artist, creates her own glasswork and pottery in the space, and also teaches the residents how to make art. Eastcastle residents also have a rooftop terrace and an herb garden that the chef incorporates into his menu daily.

Many of the senior living facilities have a focus on food. Residents come from different

WWW.MMAC.ORG/EVENTS.HTML

cultures and often have stories to share about how they prepared food at home, and their favorite recipes and traditions.

At Heritage and New Perspective, those traditions are honored with special dining nights, holiday parties and bistros.

“We took a step back from our high-quality, home cooked meals and looked at our culinary program to see how we could make it engaging and exciting,” Miller said. “We added action stations, cooking demonstrations and monthly themed meals. The variety is nice and the residents have loved it.” n

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Special Report HEALTH CARE & SENIOR LIVING

Funding, regulatory challenges force nursing homes to rethink business model

By Lauren Anderson, staff writer THE POTENTIAL FOR SHRINKING REIMBURSEMENTS, paired with a changing regulatory environment, are forcing nursing home operators to rethink their model to remain profitable.

As both federal and state governments look to scale back spending and regulators push a model of reimbursement that ties spending to quality, nursing homes face newfound pressure to survive amid ever-evolving challenges.

“The old model of keeping heads in beds and getting a fee-for-service reimbursement just by having somebody in the facility – that is going away rapidly,” said Brian Gabriel, a partner at Baker Tilly Virchow Krause LLP. “It really is looking at outcomes. Are people being rehabilitated in a shorter period of time and are they being sent home healthier and not coming back to the system for the same ailment or problem that they had?”

Medicare does not cover long-term residential placements, but rather short-term stays, usually associated with Gabriel rehabilitation following a hospital stay. Medicaid covers long-term nursing home care for individuals who meet certain income and asset requirements.

Lawmakers’ proposed cuts to Medicare and caps on Medicaid spending have prompted concern among the health care community, including the nursing home industry.

Efforts to repeal and replace the Affordable Care Act earlier this year called for the Medicaid program to be converted to a block grant, or per capita cap model, which would provide a fixed amount per recipient. That’s compared to the current structure, by which the government covers a share of medical care costs for qualifying individuals and the state pays the rest. The restructuring would have meant cuts in federal Medicaid contributions to the states.

While efforts to repeal and replace the ACA didn’t materialize, Medicaid funding cuts loom as federal and state governments seek to rein in spending.

According to a Kaiser Health News study, Medicaid was the primary payer for 55 percent of nursing home residents in Wisconsin in 2015.

Currently, Wisconsin’s skilled nursing home facilities face a $55 deficit for each patient per day compared to their Medicaid reimbursement, said Louis Shiber, senior manager with Baker Tilly’s health care practice.

“That deficit is what has the (nursing home and health care) associations up in arms, saying the reimbursement system is unsustainable,” Shiber said.

“That’s true. But the question is how are you going to operate (now) with all of these bundled payments and value-based purchasing and things of that nature? That’s Shiber what the facilities need to concentrate their time on – what other services are we going to provide?”

The stakes for nursing homes are intensified by the impending influx of baby boomers who will require their services.

“As of today, the average number of days that a person will reside in a skilled nursing facility is 904,” Shiber said. “The average cost of a nursing home in the U.S. is $77,000 annually. When you envelope that and sit back, you ask, ‘Where is this going and what is the state doing with a limited amount of resources and what’s happening with the baby boomers?’ We’re in trouble.”

The answer, in part, is found in the push toward community- and home-based care, Shiber said. Providers are expanding beyond their four walls to provide care in alternative settings.

“The aim is to provide the best possible care and best possible outcome for residents and patients at the lowest possible cost in the most efficient manner,” Gabriel said. “And for the provider, it’s a continuous challenge as to how to do that with shrinking reimbursement resources, yet more demands being placed on them. So I think wellness programs, population health management is a key goal here, keeping them out of institutions and allowing them to stay at home longer and keeping overall costs down.”

Uncertainty regarding reimbursements also has nursing homes seeking ways to attract more private payer residents to minimize their reliance on government-funded sources, Gabriel said.

“They’re branching out beyond their own walls even and trying to get into providing other services that are reimbursable, not just from private pay, but also from Medicare and/ or Medicaid in some instances,” Gabriel said.

“Providers are trying to position themselves better in the marketplace to capture as many of those short-term rehabilitation stays for Medicare residents within their facilities and then also capture other opportunities with folks in the community to provide home care or other services.” n biztimes.com / 27

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Strategies SALES

How to increase sales productivity Improve forecast accuracy, market penetration and revenues Docurated’s 2015 study, State of Sales Productivity Report: Volume 1, confirms that only 32 percent of sales professionals’ time is allocated to selling activities, which may be why only 53 percent of salespeople are meeting their sales quotas.

Before hiring additional salespeople, look under the hood and examine where you have sales productivity leakage.

Here are five areas to investigate: 1. Define your ideal client.

To maximize effort, be sure your sales team is pursuing the right prospects. Begin by identifying your most profitable clients and the qualities they have in common. List these qualities, and then run regression equations against your existing clients to identify the top correlations.

You may be surprised to learn that your ideal client is different than your favorite client, your largest clients, your most tenured, or the easiest to do business with.

A company that did this found prospects that scored in the top 30 percent of qualified leads were three times more likely to do business with them than the bottom 70 percent.

2. Define your qualifying criteria.

Determine what constitutes a qualified prospect. Is it when the prospect identifies a real need? Or when the sales professional has

met with the key decision maker, who wants to explore the idea further? Or when there is a confirmed budget? Or when you can demonstrate a viable return on investment? Maybe it’s a myriad of several elements?

The entire leadership/management team needs to reach consensus regarding what constitutes a qualified lead, as this will influence how the company supports sales and allocates resources.

3. Define your pipeline volume standard.

Let’s say your sales team closes one out of five deals in the pipeline, which equates to the sales team needing three times its sales quota in the pipeline in order to hit quota; knowing this empowers sales leaders to set realistic expectations and manage accordingly to consistently deliver.

4. Determine what sales materials and tools advance the buying decision.

Assess the materials and tools your salespeople are using, as well as what they need. Determine what’s working well, what’s not working and what information is needed to advance the buying process.

Decision-makers are able to conduct preliminary research on their own. What they are looking for is value creation and investment justification. Sales professionals are expected to demonstrate how their solution generates quantifiable value.

Docurated’s research showed that respondents cited the top three drivers of winning deals as: »» Ability to convey value message 70 percent »» High-quality content - 57 percent »» Product differentiation - 43 percent Relationships and reputation can get you in the right door, but fact-based and relevant proof advances the conversation.

Case studies that demonstrate client return on investment, the ability to negotiate deals within certain margin requirements, product/service training, and subject matter experts who educate the sales team and support the selling effort all

contribute to improved sales productivity.

Understand your clients’ buying processes and determine if your company is aligned to optimize execution.

5. Optimize growth with the right sales structure Sales professionals generate revenue when they are with prospects and clients. Does the current sales structure allow that to happen?

Or are salespeople saddled to the office searching for or creating the right sales materials? Are they forced to input redundant data? Do they serve as project managers in order to expedite deliveries? Do they struggle writing proposals?

Each of these responsibilities can best be managed by a top notch inside sales professional, or if your company is large enough, a sales enablement team.

Growing sales requires two elements – focus and momentum. Anything that detracts salespeople from these two elements needs to be re-examined and potentially reassigned. Unburden salespeople from administrative and project management duties. Empower them with the tools and clear runway to penetrate the market and close higher margin deals, faster. n

CHRISTINE McMAHON Christine McMahon is co-founder of the Leadership Institute at Waukesha County Technical College’s Center for Business Performance Solutions. She can be reached at (844) 369-2133 or ccm@christinemcmahon.com. biztimes.com / 29

Strategies COMPANY VALUES

Ride the Edelweiss Way Put your core values to work Greetings from Bayeux, France! We’re wrapping up a fantastic 12-day motorcycle tour across France with the Edelweiss Bike Travel motorcycle touring company.

Starting with two bikes, Werner Wachter and his wife, Coral, founded Edelweiss in 1980 in Mieming, Austria. Today, they have a fleet of nearly 200 bikes, 55 tour guides, 23 office team members, and run tours on every continent.

It’s a great small company that has been global since day one. We are on our second tour and will definitely go again.

On this tour, dubbed “Paris to Omaha,” we had excellent guides: Malcolm Brunelli, originally from Italy, now hanging in Austria, and Anthony “Tony” Fairweather, an Austria native.

One night over dinner, Tony said something profound.

“We used to hire great riders and tried to teach them to be great tour guides. That never really worked very well. So now, we hire great people who fit Edelweiss’ culture and then we teach them how we want them to ride. Our new CEO had never even ridden a motorcycle when we hired him.”

What blew me away was how matter-of-factly Tony made this comment, as if it made all the sense in the world. It does, but far too few companies follow this philosophy.

EDELWEISS’ CORE VALUES If you go to the Edelweiss website, you won’t find a section called “Our Core Values.” Excellent. Core values are observed behavior, not 30 / BizTimes Milwaukee OCTOBER 16, 2017

marketing slogans. But from watching Tony and Malcolm during our 12-day trip, it’s pretty easy to figure out the Edelweiss core values. My best guesses are: 1. Safety first. No drinking and riding for the driver or passenger. Non-negotiable. You drink, you go home. No passing each other in the group. Keep a safe distance apart.

Stagger bikes whenever possible. Turn signals for every lane change.

2. Teamwork. It was easy to see teamwork was both natural and ingrained for Tony and Malcolm. They helped each other, smoothly counterbalancing each other’s strengths to work together and assist their rider guests. They consistently went the extra mile, both for us and each other.

3. Embrace local culture. The tour guides educate riders on the uniqueness of the local culture. Riding across France and Italy, we learned there are huge intra-country cultural and language differences, just within a few hundred miles. (Don’t call Brittany’s Bretons French, and definitely don’t call the Sicilians Italian!) As Americans, I think we have a tendency to compare another’s culture against an American standard.

The folks from Edelweiss taught me to work harder to understand and embrace the qualities of the culture and people we encountered.

4. Pay attention to detail and be prepared.

Whether it’s knowing the best bathroom in every little village or remembering the needs of specific guests (gluten-free, nondairy, non-GMO), it was amazing to watch how Edelweiss consistently got the little things right on our tours.

Tony and Malcolm described what new hires not-so-affectionately refer to as “Hell Week.” New hires are put through a series of hands-on situations meant to replicate potential tour scenarios to prepare them to handle just about any situation a tour or tour group might present.

For example, the new hire shows up at a hotel and finds no reservations exist for

her group of 15 very tired, hot and hungry bikers. As you would imagine, not every new hire makes it through Hell Week.

5. Don’t fear the customer or the customer’s power. Our whole group made a big faux pas at a toll stop, which could have had disastrous consequences. Each one of us crossed over into the next toll stop traffic lane without signaling. Our guide got off his bike, faced the group, and respectfully but forcefully told us our error in a way we all remembered…and it didn’t occur again.

Small companies are special. They are living examples of the culture and values of the owners or founders. Werner and Coral can be truly proud of what they have built. The values I’ve ascribed to Edelweiss, via my immersion in their culture, serve as great values for any company, big or small.

When great values are taught throughout a company, and demonstrated every day through its employees, everyone can truly enjoy the ride! n

JOHN HOWMAN John Howman is a serial entrepreneur and business and community leader. He has led a variety of businesses, from technology to consumer products companies. He leads two groups for TEC, and can be reached at JHowman@AlliedCG.com.

Strategies

Tip Sheet

new product or service, elevate a brand profile, or license and utilize another company’s technology.

The article recommends some ways to approach and sustain a strategic partnership:

How to form beneficial strategic partnerships

I

n a recent article, SCORE recommends strategic partnerships to – among many growth opportunities – help businesses gain access to a new target market, develop or expand a

SET SOME GOALS Determine the desired results of a partnership so your company can identify and approach potential partners that would best fit your company’s needs and wants.

SEARCH FOR POTENTIAL PARTNERS Businesses that have what you need but also share your company’s core values make successful partners. If both companies are committed to the same cause, the partnership will also adhere to both their brands.

DO YOUR HOMEWORK Before making contact with a potential partner, find out its reputation online, on social media and in the business community.

BUILD A RELATIONSHIP Use social media and face-to-face interactions to learn as much as you can about the company – from its current status to its longterm goals. Before pitching the partnership, get to know the company to be sure it fits well as a partner.

FINALIZE THE DEAL Take time with the partnership company to negotiate the partnership’s terms and sort out its details. Then, create a written agreement stating all of the determined terms and conditions – this will protect your company if the contact at your partner business leaves.

STAY ON THE SAME PAGE Each company must work to maintain and adjust this new partnership. This takes time, energy and consistent communication, but will help both partners achieve their desired goals and promote mutual growth. n

Pictured Deborah Staples; Photo Ross Zentner

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BizConnections PAY IT FORWARD

Holtorf works with Gift of Adoption Fund to help unite families Deb Holtorf Senior portfolio manager Private Wealth Management U.S. Bank

DAN PROFIO PHOTOGRAPHY

Nonprofit served: Gift of Adoption Fund Service: Board member

FOR FAMILIES LOOKING TO ADOPT, the desire to help a child in need can be thwarted by the costly process.

The idea that a child would go without a family because of the cost of adoption – which averages about $35,000 – doesn’t sit well with Deb Holtorf.

“A lot of parents at some point or other have had the situation happen where we momentarily lose our kids in a department store,” Holtorf said. “We get panicked. The child gets panicked.

I just think about that emotion when that happens, and the child’s emotions. And then I think about kids who are lost all the time – not just for 10 minutes but for a good portion of their life – and may not have parents looking for them. I can’t see in my mind how that is fair. I can’t fathom a life without parents.”

Holtorf, senior portfolio manager in Private Wealth Management for U.S. Bank, saw adoption’s financial burden firsthand when her sister adopted a baby boy years ago.

Around that same time, Holtorf’s friends, also adoptive parents, began forming a foundation aimed at providing grants to ease that burden – providing the last few thousand dollars needed to cover initial adoption costs.

The Gift of Adoption Fund was officially launched in 1996 in Grafton and expanded nationally five years later.

Inspired by its mission, Holtorf has served on the board of the Wisconsin chapter since 2001, helping raise awareness and funds for the cause.

“For families that we help at Gift of Adoption, they can certainly afford to raise a child, but have trouble to come up with that $30,000 to $40,000 upfront,” she said. “Most people can’t do that. So we really help out in that way. Our goal is to make as many adoptions happen as we can, so that the kids can have the best life that they can.”

Since its founding, the volunteer-led organization has distributed more than $6 million in grants to assist the international and domestic adoption process for 2,100 children, 243 of which involved Wisconsin families. Holtorf has also helped the Wisconsin chapter grow to raise more than $100,000 annually.

“What I love about being on the board is I can see the impact quickly and in such a positive way,” Holtorf said. “For me, it’s the immediacy of the work that we do, the difference we can make.”

In September, Holtorf was recognized with the 2017 Angels in Adoption award from the U.S. Congressional Coalition on Adoption Institute in Washington, D.C. n

LAUREN ANDERSON Reporter

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

biztimes.com / 33

BizConnections PERSONNEL FILE ARCHITECTURE

EDUCATION

GROTH Design Group, Cedarburg

Milwaukee School of Engineering, Milwaukee

Solum

Casey

Keith Solum joined GROTH Design Group as a project manager to focus on planning and design for the firm’s health care clients. He is a licensed architect and holds a degree in architectural drafting and construction technology from Waukesha County Technical College. Jean Casey also joined GROTH Design. She has more than 20 years of communication and business development experience in Milwaukee’s architectural sector.

BANKING & FINANCE

Park Bank, Milwaukee Park Bank has hired Jillian Culver as an assistant vice president, private banking. Culver will be working with private banking clients out of the downtown Milwaukee office at 330 E. Kilbourn Ave.

BUILDING & CONSTRUCTION

Greenfire Management Services LLC, Milwaukee Greenfire Management Services has promoted Nadine Wiencek to business development manager. She has nearly 15 years of experience in managing construction projects for some of the nation’s top construction companies. She has managed projects within the retail, residential, historic renovation, commercial and industrial markets.

34 / BizTimes Milwaukee OCTOBER 16, 2017

Katie KleinMurphy has been named the new digital marketing manager at Milwaukee School of Engineering. She is responsible for MSOE’s interactive communications, including the university’s website, search engine marketing, SEO and other emerging media. KleinMurphy has more than 15 years of marketing and communications experience in a variety of sectors including agency, nonprofit, corporate and education.

Previously, Klein-Murphy was social media marketing manager at Boelter + Lincoln.

GOVERNMENT

Capstone National Partners, Milwaukee Capstone National Partners, a full-service government affairs firm with offices in Washington, D.C and Milwaukee, has named William Stone president.

Stone brings a unique understanding of the political process as an experienced lobbyist, political activist and congressional insider. He represents a diverse client base, working on an array of issues, including defense, appropriations, procurement, health care and telecommunications. Stone is recognized for his depth of legislative knowledge and expertise on a broad range of policy areas.

INSURANCE

HNI Risk Services, New Berlin Karissa Uelmen has joined HNI Risk Services as an account associate.

She will be responsible for the day-to-day processing of new business and renewal business. Karissa will also

be accountable for delivering customer service through efficient workflow processes and communication with the team.

LAW

Godfrey & Kahn S.C., Milwaukee Godfrey & Kahn has hired Kimberly Thekan in the new role of chief talent officer.

MANUFACTURING

REAL ESTATE

HSI Properties, Brookfield HSI Properties has hired Casey Malek as its director of operations and controller. Malek is a certified public accountant and certified construction industry financial professional.

SENIOR LIVING

Heritage Senior Living, West Allis

MGS Mfg. Group, Germantown

Schwingel Adams

Claypool

MGS Mfg. Group has appointed Greg Adams chief executive officer.

He joins MGS following four years as president and Wetzel chief executive officer of Tenere Inc. Additionally, MGS has promoted Ron Claypool to director of quality and Scott Wetzel to director of engineering.

MARKETING

Top Floor, New Berlin Amanda Hall has joined New Berlin-based Top Floor as a project manager. Hall is Top Floor’s digital project manager Hall and she is focused on delivering quality work on time and on budget for clients.

Additionally, Edward Kim joined the staff of Top Floor. He is a Maryland native and holds a bachelor’s in biology and psychology from the University of Maryland, Baltimore County. Kim is also Google AdWords certified, with skills and experience in digital marketing, including paid search, SEO and lead generation.

Schacht

Heritage Senior Living has hired Jaime Schwingel as vice president of clinical and medical operations.

Schwingel has more than 20 years of nursing experience, including 13 years in leadership roles, as well as 10 years providing legal nurse consulting for attorneys. Karen Schacht was also hired as vice president of quality and will oversee the review and implementation of quality procedures and practices throughout the company. Schacht has a master’s in health care administration and is a certified dementia practitioner. She has worked in a variety of roles in the senior health care industry.

SOCIAL SERVICES

SaintA, Milwaukee Cyrus Behroozi has been named chief program officer for child welfare at SaintA. This newly developed position is responsible for continuity across all functions of child welfare, including case management, foster care and family services.

The programs he oversees are focused on healing childhood adversity to help prevent future trauma for children and families.

SBA LOANS The U.S. Small Business Administration approved the following loan guarantees in August: JEFFERSON COUNTY

C & J Properties of Waterloo LLC, 808-810 N. Monroe St., Waterloo, $820,000, WBD Inc.; Pizza People Inc., 333 W. Center St., Jefferson, $200,000, First Citizens State Bank; RDR Septic & Well Services LLC, W5390 County Road T, Watertown, $80,000, Bank of Lake Mills; Reflections Adult Day Care LLC, 511 Madison Ave., Fort Atkinson, $25,000, Associated Bank; Scuzzi’s Pizza Bar LLC, 1501 Janesville Ave., Fort Atkinson, $100,000, Celtic Bank Corp.; KENOSHA COUNTY

AP 50 LLC, 5145 Sheridan Road, Kenosha, $1.55 million, First Federal Bank of Wisconsin; Darshana Patel, 1515 30th Ave., Kenosha, $271,000, Racine County Business Development; MILWAUKEE COUNTY

Appleseed Bakery LLC, 8309 N. 95th St., Milwaukee, $50,000, Wisconsin Women’s Business Initiative Corp.; City Depot Inc., 2512 W. Lisbon Ave., Milwaukee, $80,000, U.S. Bank; Eastern Dme Inc., 6508 S. 27th St., Ste. 9-194, Oak Creek, $95,000, JPMorgan Chase Bank; GSD Enterprises LLC, 2400 E. College Ave., Cudahy, $501,000, First Bank Financial Centre; Lara Associates LLC, 2733 W. Carmen Ave., Milwaukee, $416,300, Wells Fargo Bank; New Pitts Mortuary LLC, 2031 W. Capitol Drive, Milwaukee, $150,000, Wisconsin Women’s Business Initiative Corp.;

Paul M. Sandvick, DDS & Associates S.C., Port Washington Road, Milwaukee, $2.2 million, Wells Fargo Bank; Pit Stop of Wisconsin Inc., 2021 W. Silver Spring Drive, Milwaukee, $1.2 million, First Bank Financial Centre; Roots Salon Four LLC, 7450 W. State St., Milwaukee, $116,500, Southport Bank; RSD Enterprises LLC, 10501 W. Brown Deer Road, Milwaukee, $1.6 million, First Bank Financial Centre; Rzepka Holdings LLC, 2498 N. Bartlett Ave., Milwaukee, $182,000, WBD Inc.; Sadeel LLC, 5602-5608 W. Burleigh St., Milwaukee, $280,400, JPMorgan Chase Bank; SBS Trucking Inc., 3735 W. Lakefield Drive, Milwaukee, $63,500, Associated Bank; Sip & Purr LLC, 902 S. Second St., Milwaukee, $80,000, Wisconsin Women’s Business Initiative Corp.; Timothy T. Schroeter, 1234 Milwaukee Ave., South Milwaukee, $70,000, Pyramax Bank; OZAUKEE COUNTY

The Little Animal Hospital S.C., 2590 WI-32, Port Washington, $150,000, Live Oak Banking Co.; RACINE COUNTY

David G. Beth, 265 248th Ave., Kansasville, $145,600, State Bank of the Lakes; GSD Enterprises LLC, 3024 Rapids Drive, Racine, $320,000, First Bank Financial Centre; Ideal Process Solutions LLC, 7114 Friisgard Vei, Waterford, $80,000, Community State Bank; North Beach Storage Inc., 212 Hamilton St., Racine, $235,000,

Central Illinois Bank A Branch; Priya Inc. Mount Pleasant Inc., 5419 Durand Ave., Racine, $718,000, WBD Inc.; Waterford Truck Service Inc., 821 Ela Ave., Waterford, $2.8 million, Citizens Bank; SHEBOYGAN COUNTY

Catering with Culinary Artists LLC, 821 N. Eighth St., $25,000, Sheboygan, Hiawatha National Bank;

Benchmark Secured Storage of Hartland LLC, 840 Rose Drive, Hartland, $1.7 million, WBD Inc.; Casa Tequila Waukesha LLC, 2423 Kossow Road, Waukesha, $1.2 million, Waukesha State Bank; Edgewood LLC, S86 W22400 Edgewood Ave., Big Bend, $1.35 million, First Bank Financial Centre; Glogf LLC, S40 W24210 Rockwood Way, Waukesha,

WALWORTH COUNTY

Heritage Beam and Board LLC, 2699 W. Highway 11, Lafayette, $50,000, First Bank Financial Centre; Heritage Group Investments LLC, W2699 Highway 11, Lafayette, $190,000, First Bank Financial Centre; Pizza People Inc., 333 W. Center St., Whitewater, $176,000, First Citizens State Bank;

(REQUESTOR PUBLICATIONS ONLY) 1.

PUBLICATION TITLE: BIZTIMES MILWAUKEE

2.

PUBLICATION NO.: 017-813

3.

FILING DATE: SEPTEMBER 29, 2017

4.

ISSUE FREQUENCY: BI-WEEKLY

5.

NO. OF ISSUES PUBLISHED ANNUALLY: 26

6.

ANNUAL SUBSCRIPTION PRICE: FREE TO QUALIFIED SUBSCRIBERS; PAID RATES: 1-YR: $42.00; 2-YR: $66.00; 3-YR: $88.00

7.

COMPLETE MAILING ADDRESS OF KNOWN OFFICE OF PUBLICATION (STREET, CITY, COUNTY, STATE, AND ZIP+4): BIZTIMES MEDIA LLC, 126 N JEFFERSON ST, SUITE 403, MILWAUKEE WI 53202-6120, MILWAUKEE COUNTY. CONTACT PERSON: DAN MEYER. PHONE: 414-277-8181

8.

COMPLETE MAILING ADDRESS OF HEADQUARTERS OR GENERAL BUSINESS OFFICE OF PUBLISHER: BIZTIMES MEDIA LLC, 126 N JEFFERSON ST, SUITE 403, MILWAUKEE WI 53202-6120

9.

FULL NAMES AND COMPLETE MAILING ADDRESSES OF PUBLISHER, EDITOR, AND MANAGING EDITOR: PUBLISHER: DAN MEYER - 126 N JEFFERSON ST, SUITE 403, MILWAUKEE WI 53202-6120 EDITOR: ANDREW WEILAND - 126 N JEFFERSON ST, SUITE 403, MILWAUKEE WI 53202-6120 MANAGING EDITOR: MOLLY DILL - 126 N JEFFERSON ST, SUITE 403, MILWAUKEE WI 53202-6120

10.

OWNER: DAN MEYER - 126 N JEFFERSON ST, SUITE 403, MILWAUKEE WI 53202-6120

11.

KNOWN BONDHOLDERS, MORTGAGEES, AND OTHER SECURITY HOLDERS OWNING OR HOLDING 1 PERCENT OR MORE OF TOTAL AMOUNT OF BONDS, MORTGAGES OR OTHER SECURITIES: NONE

12.

TAX STATUS: HAS NOT CHANGED DURING PRECEDING 12 MONTHS

13.

PUBLICATION TITLE: BIZTIMES MILWAUKEE

14.

ISSUE DATE FOR CIRCULATION DATA: SEPTEMBER 4, 2017

15.

Extent and nature of circulation:

WASHINGTON COUNTY

Belonger Corp. Inc., 2334 Stonebridge Circle, West Bend, $1.98 million, Spring Bank; De Vor Communications LLC, N103 W14650 Hawkeye Court, Germantown, $15,000, U.S. Bank; Lake States Vending Inc., P.O. Box 270340, Hartford, $150,000, First Bank Financial Centre; R. N. Kearns LLC, 1613 Dandelion Lane, West Bend, $1.2 million, WBD Inc.; Willow View Investments LLC, N111 W18611 Mequon Road, Germantown, $656,000, WBD Inc.;

SafeNet, Milwaukee SafeNet has expanded its business development team with the addition of Nick Barbera as director of strategic accounts. Barbera spent the past five-and-a-half years in business

Average no. copies each issue during preceding 12 months

a. Total no. copies (net press run)........................................................................................................................14,343

WAUKESHA COUNTY

development, where he was a significant growth contributor with a consistent focus toward bringing new project services opportunities to southeastern Wisconsin.

No. copies of single issue published nearest to filing date

13,833

b. Legitimate paid and/or requested distribution (by mail and outside the mail) 1.

Outside County Paid/Requested Mail Subscriptions stated on PS Form 3541.............................................................................................................................. 10,089 2.

Not Applicable............................................................................................................................................................— 3.

Sales through Dealers & Carriers, Street Vendors, Counter Sales, and Other Paid or Requested distribution Outside USPS..............................................................................29 4.

Not Applicable............................................................................................................................................................— c. Total Paid and/or Requested Circulation ...................................................................................................................10,118 d. Nonrequested distribution (by mail and outside the mail) 1.

Outside County Nonrequested Copies stated on PS form 3541. ..........................................................3,463 2.

Not applicable ............................................................................................................................................................— 3.

Not applicable ............................................................................................................................................................— 4.

Nonrequested Copies Distributed Outside the Mail ......................................................................................350 e. Total Nonrequested Distribution ...................................................................................................................................... 3,813 f. Total distribution ...............................................................................................................................................................13,930 g. Copies not distributed ...........................................................................................................................................................357 h. Total ....................................................................................................................................................................................14,287 i. Percent paid and/or requested circulation ........................................................................................................................ 72.6 %

Aqua Hair Studio LLC, W279 N2221 Prospect Ave., Pewaukee, $1.4 million, First Bank Financial Centre;

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

Valley Bank; Reverie Optique LLC, 2205 N. Calhoun Road, Brookfield, $150,000, Cornerstone Community Bank; Silver Lake Auto & Tire Centers LLC, 17495 W. Capitol Drive, Brookfield, $215,000, Byline Bank; SNG Management 17145 LLC, 17145 W. Greenfield Ave., New Berlin, $761,000, Millennium Bank.

STATEMENT OF OWNERSHIP, MANAGEMENT AND CIRCULATION

PERSONNEL FILE (continued) TECHNOLOGY

$430,000, WBD Inc.; Integral Recruiting Services LLC, N55 W34486 Kosanke Road, Oconomowoc, $20,000, Associated Bank; Life’s Ruff LLC, W227 N6193 Sussex Road, Sussex, $225,000, Waukesha State Bank; New Wrrd LLC, 1801 Coral Drive, Waukesha, $50,000, River Valley Bank; New Wrrd LLC, 1801 Coral Drive, Waukesha, $50,000, River

10,573 — 26 — 10,599 2,894 — — — 2,894 13,493 340 13,833 78.6 %

16.

PUBLICATION OF STATEMENT OF OWNERSHIP FOR A REQUESTER PUBLICATION IS REQUIRED AND WILL BE PRINTED IN THE OCTOBER 16, 2017 ISSUE OF THIS PUBLICATION.

17.

I CERTIFY THAT ALL INFORMATION FURNISHED ON THIS FORM IS TRUE AND COMPLETE. I UNDERSTAND THAT ANYONE WHO FURNISHES FALSE OR MISLEADING INFORMATION ON THIS FORM OR WHO OMITS MATERIAL OR INFORMATION REQUESTED ON THE FORM MAY BE SUBJECT TO CRIMINAL SANCTIONS (INCLUDING FINES AND IMPRISONMENT) AND/OR CIVIL SANCTIONS (INCLUDING CIVIL PENALTIES).

Dan Meyer, Publisher, September 29, 2017 biztimes.com / 35

BizConnections VOLUME 23, NUMBER 15 | OCT 16, 2017

GLANCE AT YESTERYEAR

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

SALES & MARKETING

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

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

This photo, taken circa 1925 by W.D. Kline, shows North 56th Street near West Hadley Street in Milwaukee. Though the trees are taller and the cars more modern, the residential street in the St. Joseph’s neighborhood looks almost exactly the same today.

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

Growing up in Pewaukee during the 1980s and ’90s, there were two movie theaters where my friends and I would see the latest flicks: Westown and West Point cinemas. Both, of course, were Marcus Theatres cinemas.

Both were located near Goerke’s Corners, where I-94, Bluemound Road and East Moreland Boulevard converge. Westown was just west of the freeway interchange on a site currently occupied by a former Gander Mountain store that closed earlier this year.

West Point was located east of Goerke’s Corners, at the current site of The Corners of Brookfield, the new shopping center that opened in April.

The Westown and West Point cinemas closed when Marcus opened its Majestic Cinema in 2007, just west along I-94 on Springdale Road.

Now, 10 years later, there are plans for two new movie theater complexes in Brookfield.

One is from Milwaukee-based Marcus, which wants to build a BistroPlex at Brookfield Square 36 / BizTimes Milwaukee OCTOBER 16, 2017

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

ADMINISTRATIVE COORDINATOR Sue Herzog sue.herzog@biztimes.com

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

St. Joseph’s homes

Let market decide on Brookfield movie theater plans

ACCOUNT EXECUTIVE Molly Lawrence molly.lawrence@biztimes.com

ADMINISTRATION

INTERN REPORTER Maredithe Meyer maredithe.meyer@biztimes.com

COMMENTARY

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

Mall. BistroPlex is a new food-centric movie theater concept, which Marcus first rolled out earlier this year at Southridge Mall. Brookfield Square is about five miles from both the Majestic Cinema and Marcus’ Ridge Cinema in New Berlin. That five-mile gap is a good radius to serve those heavily developed suburban areas, according to Marcus Theatres chief executive officer Rolando Rodriguez.

The other Brookfield movie theater proposal is from Miami, Florida-based Silverspot Cinema, which wants to open a nine-screen theater complex at The Corners.

How ironic. A movie theater that would complete with Marcus planned for a former Marcus Theatres cinema location.

The Marcus Corp., the parent company of Marcus Theatres, is not happy about this. The company led plans to redevelop the former West Point site, and a former Menard’s store property next door, into The Corners. But to complete the massive development, Marcus had to relinquish its majority stake to other partners. It retains a minority stake in The Corners.

Marcus says the development agreement for The Corners, signed by the Town of Brookfield, Marcus Corp. and Brookfield Corners LLC (the joint venture that now holds the majority stake in The Corners), requires the consent of all parties

ART DIRECTOR Shelly Tabor shelly.tabor@biztimes.com

Independent & Locally Owned — Founded 1995 —

involved when changes are made.

But Marcus says it was not consulted on plans for a movie theater complex at The Corners. And, the company says a movie theater there would be a bad idea.

However, this simply looks like an attempt by Marcus to block a competitor. The company may, in fact, have a point about the development agreement, and if you have that leverage why not use it?

I can’t say I blame them for trying to do so, but I’d rather see plans for the movie theater complex at The Corners move forward and let the marketplace determine if it’s a good idea or if Brookfield can’t support three movie theaters.

Silverspot Cinema indicates it plans to focus on cultural programming at The Corners, but would also show first-run movies. Perhaps it will fill a unique niche and serve an untapped market in Waukesha County.

It would be great to let the marketplace find out. n

ANDREW WEILAND EDITOR

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

AROUND TOWN Corporate Veterans Roundtable

1

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Corporate Veterans Roundtable, presented by the Wisconsin Veterans Chamber of Commerce and Robert W. Baird & Co. Inc., was held at the Baird Conference Center in the U.S. Bank Center in downtown Milwaukee. More than 70 professionals attended the event, which aimed to connect veteran affinity groups from various local companies.

1.

ANDREW BOER of Boer Architects Inc. with SHAUNA FIRMISS and BEN KLENKE, both of Baird.

2.

TIMOTHY STEEN of Froedtert Health, BRIAN ARMSTRONG of State Farm Insurance, JOSH SOVA of USO Wisconsin and MELANIE SINCLAIR of Froedtert Health.

3.

KENNETH LUDLOW of Froedtert Health and ROBYN PITTENGER of Loomis.

4.

JESSICA YTTRI and KRISTIN WAITE, both of American Family Insurance.

5.

GARAN CHIVINSKI, KELVIN WALTON, JAMES DWIGGINS and TODD BACON, all of G4S Solutions.

6.

GREG FISCHER and ERIC BERGEMANN, both of Northwestern Mutual.

7.

NATE WESTBY, JIM WOYAK and CURTIS JOHNSON, all of Johnson Controls International plc, with ADAM FUTTERER of Baird.

8.

RON POWELL of MillerCoors and KYLE BRUNER and DAVID DECORREVONT, both of Baird.

Inspire 2017

9

The Kenosha Area Business Alliance recently hosted Inspire 2017, a leadership development conference for Milwaukee- and Chicago-area business leaders. The event took place at Journey Church in Kenosha.

10

9.

BEN FIEBELKORN of Kenosha County and BILL HOARE of Carthage College.

10. CLAUDIA VAN KONINGSVELD, ABIGAIL WINCEK and TRACY KIESLER, all of Hope Council on Alcohol & Other Drug Abuse.

11. KEITH THOMPSON and KAITLIN WITKOWSKI, both of the University of Wisconsin-Parkside.

11

12. JENNINE ANDREW and PAM WRIGHT, both of Specialized Accounting Services.

12

13. DAVE NELSEN and BEN OKSIUTA, both of Merchants Moving & Storage Co.

13

14. HEATHER BUCKLEY, JOHN BRODY, WILL WALLER and SAMMIE LANCIA, all of Jockey International Inc. 15. ANGIE ASMANN of AdvoCare, and KRISTINA HANSEN and JENNI DRENNEN, both of Uline.

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16. DARYL HANSON and SCOTT HODGES, both of Kenosha Unified School District.

Photos by Maredithe Meyer biztimes.com / 37

BizConnections

DAN PROFIO PHOTOGRAPHY

MY BEST ADVICE

DAVE WENDL AND Vice president, strategic relations

Hamacher Resource Group Waukesha Industry: Retail marketing hamacher.com Employees: 50

38 / BizTimes Milwaukee OCTOBER 16, 2017

“MY FATHER OFTEN SAID to me that he had ideas he hadn’t thought of yet. And that has become very much a fabric of who I am and how our company operates over the years.

“Dad was able to be human and to be realistic, but always was looking for the next best answer, the next big whizbang idea.

“Within our walls, we have a company that blends right brain analysts, operationally-focused experts with individuals who are innovators and big thinkers. It’s the collaboration that occurs between these two groups that’s part of the secret sauce of our organization.

“I haven’t really met anybody who I think can do it all alone, who has such a well-developed left brain that they can be pragmatic every step of the way, while at the same time being super imaginative. So I’m blessed to have a team around me who can take my ideas and improve them.”

AGE: 58 PROFESSIONAL EXPERIENCE: Wendland holds a bachelor’s in marketing/communications from the University of Wisconsin-Whitewater.

He worked as an account manager at Unisys, director of marketing at Applied Computer Research, and owned Wendland Associates before joining D.P. Hamacher & Associates, which is now Hamacher Resource Group, in 1992.

At the company, Hamacher previously served as director of marketing and vice president. In his current role, vice president of strategic relations, Wendland helps retail health care customers improve results through strategies such as assortment planning, fixture coordination and brand marketing.

IN THE NEWS: In December, Hamacher Resource Group will move into a new 24,000-squarefoot building in Pewaukee.

The office space will have collaborative zones for employees, a multi-function room, state-of-the-art technology, a fitness area and other amenities employees said they wanted. And the company is tracking the rapidly changing retail industry. “Anything that affects retail, whether it’s Amazon’s acquisition of Whole Foods or whether it’s Lidl opening up new stores in the country, it changes the landscape of retail. And anything that changes the landscape of retail impacts our business.” n

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