BizTimes Milwaukee | November 11, 2019

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COVER STORY

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Milwaukee has arrived, now what?

Developers say region has opportunity to reach new heights

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BizTimes Milwaukee (ISSN 1095-936X & USPS # 017813) Volume 25, Number 16, November 11, 2019 – November 24, 2019. BizTimes Milwaukee is published bi-weekly, except monthly in January, July and December by BizTimes Media LLC at 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120, USA. Basic annual subscription rate is $42. Single copy price is $3.25. Back issues are $5 each. Periodicals postage paid at Milwaukee, WI and additional mailing offices. POSTMASTER: Send all UAA to CFS. NON-POSTAL AND MILITARY FACILITIES: Send address corrections to BizTimes Milwaukee, 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120. Entire contents copyright 2019 by BizTimes Media LLC. All rights reserved.

Contents

6 Leading Edge 6 NOW

BY THE NUMBERS 7 INNOVATIONS 8 PROJECT PITCH IT 9 IN THE NEIGHBORHOOD 10 BIZPOLL MY FAVORITE TECH 11 COFFEE BREAK GETTING THERE 12 STYLE

14 Biz News 14 PHOTO ESSAY: HAMILTON’S OPENING WEEK IN MILWAUKEE 16 MADE IN MILWAUKEE

18 Real Estate 45 Strategies 45 LEADERSHIP Jerry Jendusa 46 NEGOTIATIONS Cary Silverstein 47 A BRIEF CASE

51 Biz Connections 51 NONPROFIT

Special Report

22 Commercial Real Estate & Development Coverage includes the cover story and a report on the city of Milwaukee’s plans to build a residential tower downtown.

38 Veterans in the Workplace Coverage includes veteran profiles and a report on a manufacturing training program for veterans.

Now through Dec. 12, play this special game and share your heart with 31 children’s charities.

Learn more at paysbig.com/heart.

52 GLANCE AT YESTERYEAR COMMENTARY 53 AROUND TOWN 54 5 MINUTES WITH…

Leading Edge

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

THE KUBALA WASHATKO ARCHITECTS

NOW

The Brindisi Towers

$80.5 million apartment and condo towers proposed for downtown Kenosha

By Alex Zank, staff writer A Milwaukee developer wants to build a 10- to 11-story, $80.5 million, 134-unit apartment and condo high-rise in downtown Kenosha on a vacant site that is one of eight blocks the city has identified in an ongoing downtown redevelopment plan.

The project, known as The

Brindisi Towers, would be built on a 1.6-acre site at the northeast corner of 52nd Street and Eighth Avenue. It is being put forward by Milwaukee-based Asia Pacific Racing Development, doing business as ARD Inc. The project architect is Cedarburg-based The Kubala Washatko Architects Inc.

BY THE NUMBERS The Milwaukee Bucks replaced

3,500

cupholders at Fiserv Forum because the original ones were too shallow and wide to securely hold some of the drinks sold at the arena.

6 / BizTimes Milwaukee NOVEMBER 11, 2019

According to city documents, the project would total 515,250 square feet and stand 133 feet tall.

That height is comparable to the Juneau Village Apartments in Milwaukee, according to Emporis.

The Brindisi Towers would include a 10-story structure on the south end and 11-story structure on the north end. One tower would contain 80 high-end apartments and the other would have 54 high-end condos.

The towers would be connected on the first three floors. Those levels would include 14,000 square feet of ground-floor retail space, which would consist of a high-end restaurant and public health club.

A total of 372 covered parking spaces would be located on the first three floors as well as an underground level.

Nestled between the two towers would be a fourth-floor grassy terrace. The terrace would include an 1,800-square-foot club house with kitchen and party space, outdoor grilling areas, seating areas with fire pits, a dog walk area and patio spaces for the fourth-floor residential units.

The proposed development represents the first in a series of projects identified in the city’s Downtown Kenosha Redevelopment Vision. The downtown plan seeks to bring new commercial and civic developments to an

eight-block, 25-acre area abutting Kenosha’s harbor and central business district. Specifically, Kenosha officials desire new commercial and residential developments in addition to a performing arts center, public park and city hall.

According to the developer, the project addresses the need for luxury housing in the community.

“From a tactical perspective, The Brindisi Towers are being built to begin addressing the significant void of mid-to-high end residential housing throughout Kenosha County,” said Joseph Chrnelich, president of ARD, in a letter to the city. “Our research and other reports clearly and convincingly show a strong and urgent demand for this level of quality residential housing.”

Chrnelich mentions in the letter that market demand comes from a number of sources, including Illinois residents moving across the border; professionals who work in the Chicago area but prefer to live in Kenosha; employees for companies that are establishing or expanding their presence in the area, such as Pleasant Prairie-based Uline Inc., German candy manufacturer Haribo and Lincolnshire, Illinois-based Nexus Pharmaceuticals Inc.; and faculty and staff working at various universities in the greater Kenosha area. n

INN

VAT I

NS

Carthage professor helped create software for movie special effects CARTHAGE COLLEGE professor Perry Kivolowitz won the 2019 Engineering Emmy Award for his work with SilhouetteFX, a visual effects software that is “invisible” and yet present in many movies and TV shows.

SilhouetteFX was used in “Game of Thrones,” “Avengers: Infinity War” and more than 100 TV and movie titles since the software’s inception in 2004. As a SilhouetteFX co-author, Kivolowitz received the award because of his innovative contributions to broadcast technology.

SilhouetteFX is used during post-production, allowing studios to rotoscope, paint and convert 2D into 3D – three editing tools used to recreate fantastical worlds and concepts that are unnatural and could not have otherwise been created in the real world.

“In SilhouetteFX, the idea is to identify contours in a moving picture so that the software will, once identified, track and continue to surround, so that what’s inside those contours can be Carthage College Computer Science Professor and SilhouetteFX co-author Perry Kivolowitz.

SilhouetteFX Madison and Los Angeles

INNOVATION: SilhouetteFX visual effects software FOUNDERS: Perry Kivolowitz, Paul Miller, Marco Paolini and Peter Moyer FOUNDED: 2004 silhouet tef x.com

overlaid on different backgrounds,” Kivolowitz said.

In the days of Koko the Clown, Betty Boop and Popeye, artists used rotoscoping to project photographed live-action images onto a glass panel and then trace over the image. Today, programs like SilhouetteFX allow animators to digitally trace over motion picture footage, frame by frame, to produce realistic images and action more efficiently.

Rotoscoping can be thought of as a “cousin” of the green screen, Kivolowitz said. It accomplishes a similar task, but sometimes a green screen is not feasible, and modern-day rotoscoping is needed.

“Perhaps you’re filming the liftoff of a helicopter and it’s in a lot in Burbank, California, but it’s supposed to be in Iraq,” Kivolowitz said. “There probably isn’t a 7-Eleven, telephone poles and Hollywood signs in Iraq and you can’t put a curtain behind a helicopter.”

Most 3D movies today are filmed in 2D, but released in 3D. For the purposes of 2D-to-3D conversion, SilhouetteFX also identifies those same contours as rotoscoping, Kivolowitz said.

“By tracing contours in the scene and assigning depth to the contours through a mathematical process, the parallax of the missing eye is computed so that you get a 3D scene out of a 2D scene,” he said.

Photoshop may be a great tool to remove a blemish on a person’s face in one photo, but what if the blemish needs to be removed in a motion picture? SilhouetteFX uses “painting” to remove or add effects to multiple frames, hundreds of times.

“If it were a moving picture, the painting would have to be done exactly the same way 24 to 120

SilhouetteFX was used in “Avatar.”

times per second, and that’s not humanly possible,” Kivolowitz said.

What makes SilhouetteFX so innovative is its proficiency at tracking elements of an image or a scene and then replicating those elements on hundreds and even thousands of frames, Kivolowitz said. It saves a lot of time for artists and a lot of money for companies, he said.

“We’re talking about saving enough time that shots that would not have been practical became practical; performing some effect which would have been too expensive due to labor, now becomes doable because the labor involved was cut down so much,” he said.

Kivolowitz’s contributions to television and movie post-production date back to the mid-1990s when he received an Academy Award for scientific and technical achievement for his work with “Forrest Gump” and “Titanic.” In 1992, his contributions to “Babylon 5” also earned him an Emmy Certificate.

Elastic Reality Inc., a company Kivolowitz created prior to SilhouetteFX, produced the software used to make President John F. Kennedy’s lips move in “Forrest Gump.”

In 2019, SilhouetteFX won another Academy Award after being used in “Avengers: Infinity War” and other 2019 Oscar-nominated

movies.

In September, Kivolowitz and his partners sold SilhouetteFX to Boris FX, a Boston-based visual effects and video editing software developer.

Despite Kovolowitz’s and his company’s accolades, not many know about SilhouetteFX, even though the product has been seen by millions. The reality is, if the program is used correctly and expertly, it shouldn’t be noticed by anyone, Kivolowitz said.

“It’s a source of a lot of pride and just a little frustration, in that nobody knows who is behind the technology that created the effects,” Kivolowitz said. “The people who use the software get credit but the people who invented the technology behind it do not. And I wish we did.” n

BRANDON ANDEREGG Reporter

P / 414-336-7144 E / brandon.anderegg@biztimes.com T / @bandereggmke

biztimes.com / 7

Leading Edge

@BIZTIMESMEDIA – Real-time news

PROJECT PITCH IT LÜM LEADERSHIP: Max Fergus, chief executive officer; Zach Vander Velden, chief technology officer; and Jake Fergus, chief marketing officer A D D R E S S: 821 E. Washington Ave., Madison WEBSITE: lum.fm W H AT I T D O E S: Music streaming and discovery social network F O U N D E D: 2018

LÜM in expansion mode after launching app

By Brandon Anderegg, staff writer

M

adison-based startup LÜM launched a full version of its application, entered a strategic partnership and expanded into other markets in the U.S, all within a seven-month period.

Live Undiscovered Music Inc., or LÜM, is a music streaming and discovery social network founded in 2018 by a group of University of Wisconsin-Madison students and alumni.

The app uses gamification to entice users to review music and also tracks the popularity of surfacing artists, which music companies can use to gain insights. The platform focuses exclusively on emerging artists. The company was featured on “Project Pitch It” on WISN-TV Channel 12 in March.

Over the summer, LÜM announced the release of its mobile app on iOS exclusively.

As of late October, a total of 30,000 tracks were uploaded to LÜM, which doubled the number of uploads since August. The company finalized its seed round in July 2019 with total capital raised reaching $1.4 million shortly after the app was launched, said Derek Zenger, LÜM’s director of marketing.

The company also announced this summer it has entered a strategic partnership with concert promotor Frank Productions. From the partnership, LÜM landed a large, local sponsorship opportunity, Zenger said.

“Because of our partnership with Frank Productions, we were actually able to sponsor Freakfest, which is the 30,000-person Halloween festival on State Street in Madison,” Zenger said. “Because of our partnership, we’ve got a stage there, which of course we filled with all LÜM artists.”

LÜM also expanded into the East Coast market, a decision made after the company re-

Midwest singer-songwriter and rapper Landon DeVon performs on the LÜM stage at the 2019 Freakfest Music Festival in Madison.

viewed data from its mobile app launch, Zenger said. LÜM now has offices in Madison, Austin, and Brooklyn.

“Shortly after our launch on July 1, we saw a lot of users getting on the platform pretty much from all across the country and specifically the music hotbeds, the cities you expect people coming out from,” Zenger said.

To meet the needs of the company’s growth, LÜM hired four software developers and added two developer resources out of California with the hope of expanding its platform to Android devices, Zenger said.

“We don’t have a hard date set for that yet but hopefully in the next couple months here we can expand on that platform, which I think is really going to accelerate the growth of our company,” Zenger said.

Moving forward, LÜM is focused on increasing engagement with its platform.

“How can we keep using the cities that we’re in physically to accelerate the growth of our platform, get new partnerships and get more users on the platform?” Zenger said. n

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IN THE NEIGHBORHOOD How did the business get its start?

Barb Agnew: “Both Dick and I worked for other florists in the area; we worked in the industry in the same places over time. It’s a perfect complementary team. We’re both the designers and we both do pretty much everything that goes into (the business).”

BARB & DICK’S WILDFLOWER 12326 W. Watertown Plank Road NEIGHBORHOOD: Wauwatosa FOUNDED: 1994 OWNERS: Barb Agnew and Dick Hansen EMPLOYEES: Four SERVICE: Florists

What do you sell?

“Our biggest seller, of course, is our cut flowers. It’s a natural look. It’s an organic feel. People have come to really appreciate the color combinations and the serene and relaxed, the natural feel.

We do pretty much everything: funerals and weddings and birthdays and anniversaries and parties. If you want something that’s real personalized, we have gotten to know our clients so well over the years.”

Does the look of your building bring people in the door?

“I think it does. I’ve got the wildflower garden in the front and of course I raise butterflies. And even though the building is old, I think shiny and new isn’t always the best. It’s got character. We have big old plants that live here. So it’s a

little utility, and a lot more of a homey kind of a flavor.”

What do you attribute 25 years of business success to?

“Quality and the personal relationships we have with the community …

We’ve been here for 25 years and I have two pet frogs who have been here for 25 years also. Kids that came in years ago are now bringing their children in to see these guys. The wildlife is always an added treat. Between our frogs and walking sticks and butterflies and the cat, it’s an interesting place.” n

BANKING BEYOND EXPECTATIONS For my clients, having a financial concierge means I’m a partner on their financial journey, keeping my eyes on their goals as they realize their dreams. Sometimes I coordinate their banking or structure financing, and sometimes I collaborate with other experts on our team. Convenient.

Easy. Trustworthy. They tell me that I help them achieve more than they have in years. I tell them — it’s what we do here.

AMY SCHNEIDER, NMLS#780006

VICE PRESIDENT - PRIVATE WEALTH MANAGEMENT, FIRST BUSINESS BANK

BUSINESS BANKING | PRIVATE WEALTH | SPECIALTY FINANCE

firstbusiness.com/mke Member FDIC

biztimes.com / 9

Leading Edge BIZ POLL

A recent survey of BizTimes.com readers.

Should Milwaukee aldermen have supported the Strauss Brands plans for a meat processing facility at the Century City Business Park?

YES:

NO:

87%

13%

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

JOHNATHAN MARTIN In 2017, Johnathan Martin founded FitTech, a firm that provides web design and marketing services. The following year, he opened FitTech’s downtown Waukesha office. The small business focuses on “bringing businesses into the 21st century” with web design, social media, payper-click ads, and print marketing and design. Martin, 19, uses a few tech tools to make his life easier, on and off the job:

TRELLO

TOGETHER, WE

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“All of our projects or any in-depth project is tracked on there, especially when I have multiple people on my team working on the project. If a client calls in, you can just pull up their Trello board, see exactly what’s happening, where everything is at. It keeps us on track, keeps us on schedule.”

SNAPCHAT “It just works. It’s what the majority of people in my generation use. I don’t think anyone under the age of 22, say, uses email as their primary form of communication. They started combining other things in there so you can call people, text people.”

AMAZON ECHO AUTO “(Amazon) just released a new product recently called Echo Auto and I decided to take it for a test drive just because it’s really interesting. I have about an hour commute every day, and it’s not something I look forward to. My commute is where I brainstorm, I get some of my best thoughts, but the problem is you can’t really pull out a notebook in the middle of the freeway.”

DJI APP “I have a DJI Phantom drone. I use it for lots of my clients that are trying to get some nice photography for their buildings or storefront. I also fly it in downtown Milwaukee to get a nice steady skyline (photo) at night. It doesn’t take much skill; it kind of does all the work for you.” n

10 / BizTimes Milwaukee NOVEMBER 11, 2019

COFFEE BREAK

Ellen Censky President and chief executive officer Milwaukee Public Museum 800 W. Wells St., Milwaukee mpm.edu INDUSTRY: Nonprofit • Censky was named Milwaukee Public Museum’s president and chief executive officer in June, becoming the first female to serve in that role in its 137-year history.

•• She was formerly senior vice president and academic dean for MPM, until taking on the interim president and CEO position in September 2018.

• Censky was born in Menomonee Falls, moved to New York as a young child, and at age 4 returned to Cedarburg, where she stayed through high school. She began her career at the Milwaukee Public Museum in 1977 while attending the University of WisconsinMilwaukee. “I knew I was going to do something in biology but I wasn’t sure what it was going to be. Then this whole world opened up, which was museums.”

• She went on to work for the Carnegie Museum of Natural History in Pittsburgh, where she started out making study skins of birds and preserved amphibians and reptiles. She went on to hold leadership roles at the musuem.

•

While her background is in research, Censky enjoys the work of an administrator. “I love bringing together smart people and creating things.

That’s pretty much what administration is – it’s providing the resources and bringing the right people together to create the next big experience.”

• She returned to MPM in 2008 as its senior vice president and academic dean. “Everybody says ‘You can’t go home,’ but you actually can … I am somebody who likes to have a big purpose. When I step into a place, I don’t want to just maintain the status quo, I want to make sure we have something big moving forward. So it was exciting to return (to MPM).”

GETTING

THERE

What do people not understand about the compensation puzzle?

“It’s not just about base pay or even benefits. It’s also about your work environment and culture. It’s about how you onboard your talent, how you treat your talent when they’re at your organization, how you develop and train your talent as well.”

What drew you to this line of work?

“I just always think fate and things are meant to be ... I’ve got two little toddlers at home, I’m a working mom. It allows me the ability to still have a very challenging career and ... I have a supportive employer that supports me traveling with my baby, but also being able to work at an organization that understands the importance of supporting leaders, providing training and development for leaders and really providing a space where we can be innovative and create things.”

You serve on the Salvation Army and Parenting Network boards and you’re also involved with Professional Dimensions and The Ridge Community Church. What do you get from community engagement?

“There’s a lot of professional women within the Milwaukee/Waukesha area that are doing amazing things and I think this is an amazing time for women in business. That’s why I love networking and being on boards, in particular. It helps me kind of frame up not just how I do business but also inspire me as we try to work with organizations and develop strategies. Also, just while I’m working, it’s more of an inspiration because sometimes as moms, you need to be pumped up on a regular basis when you’re coming to work. So I think it’s also inspirational from that standpoint too.” n

DEIDRE GARRETT Director of HR services and total rewards MRA AGE: 35 HOMETOWN: Brown Deer

•

In her free time, she loves gardening. “I even like pulling weeds; it’s almost like my meditation.”

•

She takes her coffee black

EDUCATION: Hampton University, BA PREVIOUS POSITION: Director of HR services, MRA

“and lots of it.” n

biztimes.com / 11

Leading Edge

office decor

KATE SPADE STRIKE GOLD DOT NOTE HOLDER $22 at Broadway Paper, Milwaukee This Kate Spade note holder, covered in gold foil accents, includes 320 gold gilded edge loose notes.

CAST IRON RABBIT STATUE $149 at Elements East, Milwaukee These cast iron rabbit statues were found in a country market outside of Beijing. They add a whimsical touch to an office or desk.

UPRIGHT BOOKMARK $68 at Commonplace Shop, Milwaukee The Upright Bookmark is designed to mark pages in notebooks, novels and other types of books that are less than 9 inches in height. It’s made in lacquered ash and comes numbered and marked on the bottom.

12 / BizTimes Milwaukee NOVEMBER 11, 2019

A SPECIAL FEATURE FROM OLD NATIONAL BANK

Partnerships & Progress Old National brings comprehensive approach to business banking Old National Bank knows that being a financial partner is not just about handling transactions.

It’s about finding the right products and the right services at the right time, for each client’s unique needs. And that means being there for every step along the business’ path, adapting to change and planning for growth.

“It’s about combining our expertise with the business owner’s vision,” says Kevin Anderson, Wisconsin Region CEO for Old National Bank.

“We listen intently—and actively—to our clients.

We want to know their stories, their plans, their hopes. We want to take that journey with them, and identify their financial challenges and opportunities along the way.”

For Old National, offering lending products and treasury management services is just the start.

While the menu of available items is extensive, with convenient features that allow business owners to take control of their funds and move

their organizations forward, the real difference is the people behind the paperwork, and the relationships they form with business owners.

They serve as advisors and problem-solvers.

They know and anticipate the needs of the businesses they serve, and are active members of that business’ team, always putting the clients’ needs first.

And that’s the way they’ve done banking since 1834.

“We’re proud to have a 185-year history of strength and stability, and a longstanding record of serving our clients ethically,” Anderson says. “Plus, we’re fortunate to have the capital and technology of a large, national financial institution, but still are able to focus on maintaining the friendly service and personal relationships of a neighborhood bank. That’s what makes us nimble, driven—and unique.”

$451 million in commercial loans in Wisconsin in 2018

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$380 million in commercial real estate transactions in southeastern Wisconsin in 2017 and 2018

Learn more about what Old National can bring to your business at oldnational.com/business.

Or visit a nearby Old National banking center to get started.

oldnational.com/business | Member FDIC ©2019 Old National Bank | 1019-059

SPONSORED CONTENT

BizNews PHOTO ESSAY: ”Hamilton” opens in Milwaukee

“Hamilton” opening week TONY AWARD-WINNING Broadway smash hit “Hamilton” made its Milwaukee debut on Oct. 22 at the Marcus Performing Arts Center. All 32 shows of the extended fourweek run are expected to sell out, and local businesses such as The Rumpus Room are cashing in on that impact. The nearby restaurant is hosting a Colonial-themed dinner in its 50-seat private event room before each "Hamilton" performance, allowing it to bring in more diners than it usually would during an already booked Broadway night. n

3. Shoba Narayan as Eliza Hamilton, Ta’Rea Campbell as Angelica Schuyler and Nyla Sostre as Peggy Schuyler.

4. Passages from the Declaration of Independence are read aloud before diners dig into their three-course meal at The Rumpus Room.

JOAN MARCUS

2. Joseph Morales as Alexander Hamilton.

1

JOAN MARCUS

1. Jon Patrick Walker as King George in “Hamilton.”

2

6. A crowd forms outside the Marcus Center on opening night of “Hamilton.”

THE BARTOLOTTA RESTAURANTS

5. Narayan as Eliza Hamilton and Morales as Alexander Hamilton.

3

7. “Hamilton” premiered in Milwaukee on Oct. 22 in front of a sold-out crowd.

8. Nik Walker as Aaron Burr.

9. Cast members of “Hamilton.”

10. Morales as Alexander Hamilton and Marcus Choi as George Washington.

JOAN MARCUS

11. Elijah Malcomb as John Laurens, Morales as Alexander Hamilton, Kyle Scatliffe as Marquis de Lafayette, Fergie Philippe as James Madison, and cast members of “Hamilton.

14 / BizTimes Milwaukee NOVEMBER 11, 2019

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JOAN MARCUS

MAREDITHE MEYER

JOAN MARCUS

10 MAREDITHE MEYER

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JOAN MARCUS

JOAN MARCUS

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HARLEY-DAVIDSON

BizNews

Harley-Davidson searches for traction with new strategy RETAIL SALES of new HarleyDavidson motorcycles in the U.S. declined 5.6% in the first nine months of the year, according to the Milwaukee-based company’s latest earnings report.

The good news? That was an improvement from a 10.2% drop in the first three quarters of 2018 and the industry as a whole saw its smallest decline in 14 quarters.

Harley, which has its headquarters at North 37th Street and West Juneau Avenue, a powertrain production facility in Menomonee Falls and a product development center in Wauwatosa, has seen a lot of change since 2017, when it announced a strategic shift to focus on building motorcycle riders instead of just motorcycles.

In addition to shifting demographics and increased competition, the company has faced increased tariff costs and the ire of President Donald Trump. This year alone, tariffs will cost the company $105 million, a number that will fall to around $20 million next year because its motorcycles for Europe will be assembled in Thailand instead of the U.S. BizTimes profiled the company’s new strategy in a May 2017 cover story headlined “Harley shifts gears to attract new riders.” The company’s quarterly reports showing declining sales make it easy to wonder if the strategy is gaining any traction.

But according to Harley’s analysis of industry data, global ridership is up from 3.9 million in 2014 to 4.3 million in 2018, including 3 million Harley riders in the U.S. “Never have there been more 16 / BizTimes Milwaukee NOVEMBER 11, 2019

Harley-Davidson riders,” Matt Levatich, president and chief executive officer of Harley-Davidson, told analysts on the company’s most recent earnings call.

Harley’s data also shows that there were more new and returning riders across all age groups in 2018 than in 2010. Among those 18 to 29 years old, the number of new and returning riders per 1,000 U.S. residents was 50% higher.

The strategic shift Harley made in 2017 set out a number of 10-year goals for the company, including: creating 2 million new riders, growing international motorcycle sales volume to 50% of the total, launching 100 new high-impact models, delivering superior return on invested capital and doing it all without increasing its environmental impact.

Then in July 2018, the company unveiled “More Roads to Harley-Davidson,” a five-year, $825 million plan to accelerate its progress and generate $1 billion to $1.5 billion in additional revenue by 2022. The plan included launching new models, including electric, and entering the middleweight motorcycle segment, creating broader access through e-commerce and flexible distribution points and developing a stronger dealer network.

Harley then refined some of its targets this fall. The company is now aiming to have 4 million riders in the U.S. instead of creating 2 million new riders. Harley’s own data showed it added 502,000 riders in 2018 but lost 450,000, according to a Baird analyst note.

The company is also now aiming to grow international revenue

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– instead of volume – to 50% of the business, a change that accounts for all of the efforts to grow the business, including merchandise and smaller displacement motorcycles.

The refined plans also included an emphasis on amplifying the Harley brand and the company continues to sponsor events and activities that may not immediately match the conventional image of Harley, including the World Surf League, Spartan obstacle racing and The 2020 Hella Mega Tour featuring Green Day, Weezer and Fall Out Boy. Earlier this year, Harley hired Neil Grimmer, the co-founder of Plum Organics, to serve as global brand president. However, he was removed from the position in October after “an internal inquiry along with a third-party investigation into concerns that his judgment and conduct as a senior leader did not align with our culture and the values we expect all our employees to demonstrate,” according to a Harley spokesperson.

While the company’s third quarter results show continued declines in retail sales and revenue, Baird’s most recent analyst note suggests things could improve “if the economy holds up.”

“Much of the payoff comes late in the 2022 plan,” the note said.

“But with a decent economy, we believe the narrative improves in 2020-2021.”

Levatich was asked by analysts for his take on the current economic environment and he acknowledged there’s “quite a bit of uncertainty,” adding the company is acting with an abundance of caution.

“We can’t predict the future any more than anyone else can,” he said. “All we can do is be as nimble and responsive as possible.” n

ARTHUR THOMAS Associate Editor

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The West, a 177-unit apartment building developed by Mandel Group Inc., is set to open this fall.

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Developments breathing new life into National Avenue corridor in West Allis

ADDRESS: 7601 Durand Ave., Mount Pleasant BUYER: Badger Solutions LLC SELLER: Venture One Real Estate PRICE: $15.5 million 18 / BizTimes Milwaukee NOVEMBER 11, 2019

THE REDEVELOPMENT of sites west of the West Allis Farmers Market is creeping farther down West National Avenue.

If all goes as planned, the section of National Avenue between South 66th and South 68th streets will lead to a “new neighborhood,” with this momentum possibly stretching even further to other nearby properties, say city leaders.

Most of the projects in this area are being led by Milwaukee-based developer Mandel Group Inc. as part of its master-planned, mixed-use community called The Market at Six Points. These projects include hundreds of units of market-rate apartments, a medical clinic and food-based amenities.

Mandel was selected by the city in 2016 as the project developer for the land on either side of National Avenue, west of 66th Street and Six Points Crossing.

The firm has since developed a 30,000-square-foot Aurora Health Care medical office and clinic and a 177-unit upscale apartment complex, called The West, on land north of National Avenue. It is set to open this fall.

To the south, Mandel is plan-

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The building was constructed in 1972 and formerly used by Promotions Unlimited, according to village assessment records.

ND Paper manufactures various types of pulp, paper and paper-based packaging materials. It bought the building from Illinois-based Venture One Real Estate. The firm had made major renovations to the building after first acquiring it in January 2018. Renovations included a new roof, tearing out the second-floor mezzanine and adding new offices, installing a new parking lot, updating the front facade, repairing the docks and replacing lighting.

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ning a “food cluster,” a collection of four food- and beverage-based commercial buildings, directly west of the Farmers Market, according to Robert Monnat, Mandel’s chief operating officer.

Mandel has a specific anchor tenant in mind for the food cluster, though the tenant hadn’t been announced as of late October.

However, the user would have food production space in the back of the building and sell its product at the front, Monnat said.

He said work on these buildings is slated to begin this winter, with the first buildings expected to open by the end of summer 2020.

Further west of that, Mandel is planning to develop another mixed-use building that will consist of 70 apartments and 8,000 square feet of additional food-oriented retail space, Monnat said.

These projects focus on food and beverage-type amenities, such as restaurants, which also complements the buildings’ proximity to the Farmers Market.

“The idea (is) that we’re trying to get that Farmers Market to act as the community’s outdoor living (space), and getting people to come there regularly,” Monnat said.

He noted the market is already a major draw, even at times during the winter, with events such as the Christkindlmarkt.

Mandel’s influence now appears to be headed further west, as the firm is partnering with Chicago-based Baum Revision LLC to redevelop some former industrial sites at the southeast corner of National Avenue and 68th Street.

The two developers responded to a request for proposals issued by the city this summer. For its part, Baum Revision proposed redeveloping the former Kearney & Trecker factory at 6771 W. National Ave. into an event and food production space with a kitchen incubator.

“The building will make an architectural statement and complement everything around the site,” said Patrick Schloss, community development manager for the city.

Meanwhile, Mandel proposed developing 90 units of market-rate apartments to the east, at the site

that includes the former Perfect Screw Products Corp. facility at 6749-6751 W. National Ave. Although these projects would be separate from the Six Points developments, Monnat said there are ways in which they will all be interwoven. This includes physical connections, such as planned pedestrian links between sites. They also fit into a broader redevelopment scheme.

“What we’re trying to do is create a critical mass, trying to get an activity center,” he said. “Then that allows us to create density, and that becomes a self-fulfilling engine in terms of reinvestment and the like.”

Schloss said Baum just extended its letter of intent to acquire and redevelop the Kearney & Trecker building for another few months. The developer is still waiting on a national historic designation, which is required to receive historic tax credits on the project.

The city is waiting to move forward with the eastern site until Mandel finishes its work on the Six Points project. As such, Mandel’s proposal hasn’t been selected yet, nor is it a guarantee that’s the proposal the city will select, said Schloss.

In all, Mandel expects a total combined investment of $91.25 million in West Allis from all of these projects. n

LANDMARK CREDIT UNION HEADQUARTERS Construction officially commenced in early October on Landmark Credit Union’s new headquarters in Brookfield.

The planned 158,000-square-foot building is being built on a 19.5-acre site at 555 S. Executive Drive. According to a news release, the new headquarters will feature training facilities, modern technologies that boost efficiency, amenities to enhance associates’ work experience and flexible spaces that encourage employee interaction and allow for future growth.

“In order to continue to provide members with innovative products and services and modern technology solutions, and to deliver the brand experience members expect, Landmark needs a home that can support its strategic vision,” Brian Dorow, chairperson of the board for Landmark, said in the release.

According to plans filed with the city, the credit union could construct an additional 148,000-square-foot building in a future phase.

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MILWAUKEE HAS ARRIVED… NOW WHAT? Several significant commercial real estate developments and events have occurred, or will occur soon, in our region in recent years (the DNC in Milwaukee, major golf championships, Fiserv Forum, Foxconn, Northwestern Mutual Tower & Commons, Komatsu’s new headquarters in the Harbor District, Michels Corp.’s R1VER project in Bay View, the new Milwaukee Symphony Orchestra performance center…and many others).

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STORY COVER

M ilwaukee has arrived, now what?

Developers say region has opportunity to reach new heights

It

BY ALEX ZANK, staff writer is an exciting time for Milwaukee.

After decades of stagnation and a national perception of it being flyover country, the Milwaukee area in recent years has attracted numerous major developments downtown and in suburban areas.

At the same time, the city suddenly finds itself in the spotlight with a newfound level of national and international attention. The 2020 Democratic National Convention will bring an unprecedented level of media coverage and new visitors to Milwaukee. The city’s long-slumbering sports scene has been jolted to life by two of the nation’s biggest sports stars: Giannis Antetokounmpo of the Bucks and Christian Yelich of the Brewers. The 2018 National League Championship Series and the 2019 Eastern Conference Finals brought new excitement and attention to Milwaukee. And even more could be on the way in 2020, which will include the Ryder Cup at Whistling Straits in Sheboygan County.

With so much attention on Milwaukee now, what do the media and the surge of new visitors coming here see when they experience Milwaukee for the first time?

Downtown has newfound vibrancy. The skyline was dramatically altered by the Northwestern Mutual Tower & Commons project in 2017. Then came the Bucks’ new home, Fiserv Forum, which opened in 2018 and has not only been great for the Bucks, it has also delivered on its promise to be much more than a basketball arena, booking far more major concerts than the Bradley Center. Development and activity around the arena has transformed that corner of the city.

The downtown area has also seen new apartments, hotels and office buildings in recent years. The BMO Tower, which is being constructed southeast of Wells and Water streets, is set to be completed by the end of the year, offering Class A office space with floor-to-ceiling glass windows.

The Huron Building, located just a few blocks south at the northwest corner of Clybourn Street and Broadway, will bring new life to a quieter part of downtown.

Also, the former Grand Avenue mall is being turned into a mixed-use center consisting of apartments, office space and a food hall, continuing the overall rebirth of the downtown area west of the river. Across the street, the former Warner Grand Theatre is being transformed into a new performance hall for the Milwaukee Symphony Orchestra.

22 / BizTimes Milwaukee NOVEMBER 11, 2019

The suburbs are undergoing plenty of change as well.

Oak Creek has its new downtown in Drexel Town Square, landed the state’s first Ikea, and will soon be home to a new Amazon fulfillment center. In recent years, the suburbs also have welcomed major mixed-use projects like The Corners of Brookfield, The Corridor in Brookfield, Mayfair Collection in Wauwatosa and 84South in Greenfield.

But despite all of the positive momentum, Milwaukee still faces major issues, including long-standing racial inequality and stagnant population growth.

Even so, now with all of the attention the city is getting and will get next year, this is the prime opportunity for Milwaukee to take on these issues and attempt to reach another level of prosperity, business and civic leaders say.

“There’s an interesting moment of honesty that we get to present to the world (due to the DNC), and it’s going to be, I think, important that we don’t message it all with positive spin,” said Blair Williams, president of Milwaukee-based WiRED Properties. “It’s going to be important that we own our shortcomings and, even more importantly, arrive at some kind of tactical approach to presenting and owning those shortcomings with plans for how we can start to overcome those pitfalls.”

STORY COVER

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Steve Palec, a 35-year commercial real estate veteran who recently left his job as an office broker to join Milwaukee-based Irgens Partners LLC as chief marketing officer, said he has witnessed a change in attitude about Milwaukee and what it can be over the past five years.

“There has been a seismic shift that has said, ‘No, we are not a tertiary city anymore. There is nothing we can’t do.’ And I really believe that is underway,” he said.

Palec said people dreamed big things for Milwaukee during the first part of his career. He pointed to developers like Gary Grunau, Barry Mandel and Mark Irgens as having an attitude of, “Why not?”

“The only difference is today, I think it’s amplified by just so many more people,” he said. “Not a day goes by where I don’t see or run into dozens of people that emulate the characteristic that was really in short supply in Milwaukee.”

The attention Milwaukee has gotten from the recent deep playoff runs by the Bucks and Brewers and the attention that will come from the DNC and Ryder Cup can even help encourage national investors to take a new look at opportunities in the region.

Kalan Haywood Sr., president of Milwaukee-based Haywood Group LLC, said when the Brewers were in the playoffs in 2018, he received phone calls from lenders and equity partners he hadn’t talked to in years. They reached out specifically because the Brewers were on their TV screens.

“Some of those phone calls are (from) people we’re actually doing deals with now,” he said.

Milwaukee’s reputation can only stand to benefit when a national audience sees a packed entertainment block just outside of the Fiserv Forum, as was the case last year when the Bucks made a deep run in the playoffs.

The national attention being paid to Milwaukee will likely never be greater than during the DNC. “I think (the DNC) will give people more fire in their belly to talk up where they live and how they feel about it,” said Mike Mooney, principal, chairman emeritus and co-founder of Brookfield-based MLG Capital.

Those marketing Milwaukee will have ample opportunity to get their message out through newspaper, TV and social media coverage to spread the message.

“It’s going to be an endless array of ammunition that can be re-generated to brag about and create an appealing aura of Wisconsin,” he said.

Milwaukee’s challenges Even if the general attitude surrounding the Milwaukee area has changed in recent years, and it’s enjoying plenty of new national exposure, the long-standing issues, including central city

1

3 poverty and racial segregation, are still there.

One key challenge for the region is its extremely slow population growth.

All of the people migrating into downtown to live in the new multi-family developments that are popping up? They are not really new residents; they’re largely young professionals and empty-nesters moving inward from outlying neighborhoods and the suburbs, said Williams.

While developers still benefit from that movement, it isn’t necessarily a net gain for the region, he said. This results in growth in household formation without population growth.

“Milwaukee’s regional population just doesn’t change,” Williams said.

Tim Sheehy, president of the Metropolitan Milwaukee Association of Commerce, said Wisconsin for the next few decades is set to grow its popula-

1: The BMO Tower in downtown Milwaukee is slated for completion in December. 2: A packed Bucks game at Fiserv Forum. 3: The Corners of Brookfield. 4: The former Grand Avenue mall in downtown Milwaukee is being redeveloped into a mixed-use center, which includes offices, residential and a food hall.

2

4 tion by only about 1%. The same can be said for the Milwaukee area.

But getting more people to move to the region is easier said than done.

Mooney recalled discussions he’s had with major area employers, who told him they had trouble getting workers to move here from other parts of the country. But once they’re here, they want to stay.

“We here in Wisconsin have spent too little time over the last five decades promoting our area as a great place to live,” he said.

And for the past few decades, most of the movement in the office market has just been a shuffling around of the same companies, Palec said. He added what the market needs is fresh faces.

Greg Uhen, chief executive officer of Milwaukee-based Eppstein Uhen Architects, expressed a similar sentiment. He said other developments,

such as new housing, retail and hotels, are more supportive kinds of projects that “don’t necessarily drive the bus.”

“Office (developments) and creating jobs and having companies move to Milwaukee downtown, that becomes a huge driver to populate, especially daytime activity,” he said.

Sheehy said the objective to attract and retain talented workers is to make Milwaukee a place of ample opportunity.

“It may be easier to retain the talent we have than attract new talent, but we’ve got to do both,” he said. “People want to come to a market when they see vibrant opportunities, both for themselves and for other people they’re going to meet.”

Opportunities are easier to come by for certain groups of people than others. The contrast is greatest between white residents and African Ameri-

can or Hispanic residents in the Milwaukee area.

Leaders agree this is one of Milwaukee’s biggest challenges, and it certainly isn’t new.

MMAC recently released the findings of a study highlighting metro Milwaukee’s racial disparities. The study, which was the subject of the Sept. 3 cover story of BizTimes Milwaukee, compared Milwaukee to 20 of its peer metro areas on several measures. It found Milwaukee came in last when it comes to prosperity of African American and Hispanic residents. The prosperity gap between both of those groups when compared to white residents was the widest among its peers.

Milwaukee is also consistently named one of the most segregated cities in the U.S., noted Juli Kaufmann, president of Fix Development.

The Washington, D.C.-based policy group the Brookings Institution in a December report biztimes.com / 25

RINKA+

STORY COVER

identified the Milwaukee metro area as having the highest black-white segregation.

“The only way this changes is if we in power reflect on our own behaviors, because we are the system and if we want that to be different, we have to change,” Kaufmann said.

There’s also a disconnect between residents who live in Milwaukee neighborhoods outside of downtown, especially those that aren’t seeing much new investment.

“No matter how many cranes we have in the sky downtown … the people that are the have-nots, or perceive themselves as being have-nots or underserved or under-voiced, those individuals still do not feel and see the connections between some of Milwaukee’s downtown success (and them),” Haywood said.

Looking to the future To further improve Milwaukee, Sheehy noted MMAC’s three primary areas of focus: talent, growth and livability.

The talent component is heavily focused on preparing workers in the region for the opportunities that are here today and will be here

in the future, Sheehy said.

He added it will also be key to grow business for companies that export goods and services to outside the region. Without those companies, there won’t be more housing, retail, hotel or other commercial developments.

“That’s the only way new income comes in, and if you don’t have new income, you don’t get growth,” he said. “The rest of us are just kind of washing each other’s socks, and we want more socks to wash.”

Sheehy said one selling point is the area has the largest concentration of companies that make and design things, compared to anywhere else in the country.

“That’s our fastball,” he said. “We want to develop other pitches, but (also) growing those opportunities.”

Part of Milwaukee marketing itself means going beyond putting on its best face when people come to town. There needs to be a bigger effort by residents and officials to spread the reputation elsewhere, said Matt Rinka, partner at Milwaukee-based architecture firm Rinka.

“It’s just sort of a concerted effort to think

A conceptual rendering depicting a 50-story office building at the now-vacant Lakefront Gateway site and the long-delayed Couture project in downtown Milwaukee. more, I would say, nationally and about how Milwaukee can continue to have time on the national and global stage,” he said. “Every person, if they have that sort of mentality on a day-to-day basis, that we’re part of a bigger community … I think it’s something that will only help Milwaukee to continue its trajectory.”

Milwaukee is set to become more diverse in the coming decades. Sheehy said, by 2025, Milwaukee County will become a minority-majority county.

He pointed out that 18% of the metro area’s population aged 55-64 is African American or Hispanic.

But 46% of those 5 to 9 years old are African American or Hispanic.

“I think that’s a good thing – the community is becoming more diverse. It’s one we have to embrace and (we have to) make sure we’re preparing those young adults for the opportunities that are here today and are going to be here tomorrow,” he said.

In light of the region’s racial and ethnic disparities, MMAC is setting out to turn things

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around, in at least one targeted area.

The group has asked its members to sign a pledge agreeing to work toward the goal of increasing the number of African American and Hispanic employees in metro Milwaukee by 15% and managers by 25% by 2025.

Sheehy said nearly 70 companies, which employ 130,000 people, have so far signed the pledge as of mid-October.

“A diverse, inclusive workplace and a diverse, inclusive community is not something you build on compliance; it’s something embedded in your culture,” he said.

Kaufmann said that, in order for people to tackle this issue, they have to start with their own behavior.

“It should be intentional from the beginning, woven throughout and a key strategy in every decision, beginning with what we’re even thinking about doing, before you start doing it,” she said.

There is also the issue of getting the younger people who have moved to downtown Milwaukee in recent years to stay as they decide to grow their families.

Both Mooney and Williams predicted in the

coming decades, as more millennials reach the age where they want to have children, they will begin moving back out into the suburbs.

Williams said Milwaukee is missing a few things if it wants to retain a lot of these residents. It needs family supportive housing, such as three-bedroom apartments, a secular private school downtown, and a flagship public school like other communities have, he said.

“We’re missing some of the core elements of a family-friendly lifestyle,” he said.

And to get those living outside of downtown to feel that they’re also benefiting from the development boom, more investment in their neighborhoods is needed, Haywood said.

“That’s when people start to believe, and once people feel a part of the whole plan, then they’re willing to solve some of the problems jointly,” he said.

Haywood is working to redevelop the former Sears department store building on the near northwest side at the corner of North and Fond du Lac avenues into a boutique hotel and conference space known as the Ikon. The project also includes an entrepreneurial hub.

“I’ve had people that are homeowners that live

A rendering of the Ikon project, a boutique hotel and conference space being developed at North and Fond du Lac avenues by Kalan Haywood Sr.’s company, Haywood Group LLC. close by given me calls and said, ‘Hey, we were thinking about selling our home and moving but we think we might stay now,’” he said. “Just the idea of what can happen there is getting people excited.”

Kaufmann said such investments will sometimes require developers to see beyond profitability. It’s going to take intention, she said.

“It’s really diversifying your thinking, thinking creatively about your strategies, and then finding the right niche for the developer and neighborhood,” Kaufmann said. “Or maybe it is that it becomes just an intentional outlier. Maybe certain developers don’t totally change their strategy but they recognize their ultimate long-term success is predicated on the success of all.”

What’s in store?

Real estate industry leaders have various ideas of what areas are in need of development or are likely to be developed as Milwaukee writes its next chapter.

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One of the greatest opportunities for Milwaukee to make a statement is on its lakefront, according to Rinka. He pointed to two sites that are now vacant: the site at the southwest corner of Michigan Street and Lincoln Memorial Drive, and another site just south of it, across Clybourn Street.

The first site is where the Couture, a 44-story luxury apartment high-rise, is being proposed.

But that project hasn’t yet moved forward. As of late October, the development firm for the project, Barrett Lo Visionary Development, was still working to secure the final piece of equity in order to begin construction.

The second site, known as the Lakefront Gateway site, was freed up after the Wisconsin Department of Transportation reconfigured the I-794 freeway ramps there. No formal plans are in place for the site to be purchased and redeveloped.

Rinka’s firm designed the Couture and also recently drew up conceptual renderings depicting a 50-story office tower on the Lakefront Gateway site.

“We need to get the Couture over the finish line,” Rinka said. “I think the Lakefront Gateway site, where we did a conceptual design for the state – what other city has such a prime location on the lakefront? I can’t think of one … To attract a major corporate headquarters to that location to really create a signature project there would be critical.”

Uhen said there are also holes to be filled at the Deer District around Fiserv Forum, continuing southward around the Wisconsin Center and stretching to the existing Post Office building on St. Paul Avenue.

Earlier this year, the Bucks outlined their ideas of how the remaining available sites within the eight-block Deer District, which the team owns, should be developed. These ideas include more retail, residential, a full-service hotel, entertainment and office, specifically a corporate headquarters project.

Nearby, Wisconsin Center District officials are moving forward with plans to expand the convention center. Just across the street is the city-owned parking lot at the southwest corner of Wisconsin

and Vel R. Phillips avenues, where the city has tried for years but failed to attract a signature development project.

A Chicago-based developer owns the Post Office building and has plans to redevelop the site with offices, residential, shopping and entertainment. There is vacant land near that building and the Milwaukee Intermodal Station.

“Once we fill these holes in, then you start to create this connectivity where Milwaukee becomes a little more walkable of a city than it is today,” Uhen said of redeveloping that whole stretch of downtown. “One of the things that people like about the Third Ward and Central Business District is they’re very walkable.”

Haywood highlighted the area west of the arena district as a place in need of more attention. The chief obstacle impeding investment and development there is I-43.

He noted the distance between Fiserv Forum and the freeway is the same as the distance between the arena and Walnut Street. However, there is more investment and development activity happening in the areas north of the arena than anything to the west, save for the redevelopment of the former Pabst Brewery complex.

“If that expressway wasn’t there, believe me, people would be building on 13th, and 14th and Vliet (streets) now,” he said.

Kaufmann, meanwhile, spoke more broadly of the main commercial corridors in the city’s neighborhoods.

“If we could think differently about main streets in our neighborhoods, it could radically transform real estate at a small scale, which would have a big impact,” she said.

Reinvestment in these corridors will require a rebuilding of the city infrastructure. The key, she said, is to slow the flow of traffic and to make the streets friendlier to pedestrians.

She pointed to Second Street in the Walker’s Point neighborhood. It was transformed from just a street to get vehicles out of downtown quickly, into a slower, more pedestrian-friendly “complete street” by reducing a driving lane, adding a bike

lane and planting trees within the sidewalk. The changes helped spark the redevelopment of buildings along the street, Kaufmann said “You started to see those old, historic buildings that really represent what Milwaukee’s all about come back to life with all this activity,” she said.

Kaufmann said streets like North Avenue and Fond du Lac Avenue on the city’s north side need similar treatment. They are currently designed to move cars out of town as fast as possible, and about half the historic properties along those corridors are vacant, she said.

“The power collectively of redeveloping 50% vacancies along North Avenue, Fond du Lac (Avenue) would be very interesting to calculate, but I bet it approximates any of these larger-scale developments,” she said. “Imagine the ripple effects in each of these neighborhoods.”

Speaking on a broader scale, Uhen said Milwaukee should look to compete with other regions in the Midwest, such as Indianapolis, Kansas City and Minneapolis. In particular, it has to become a better alternative to Chicago.

“Chicago still continues to be the major draw in the Midwest for venture capital dollars and business growth,” he said.

Doing that requires Milwaukee to sell itself on things like its friendlier business climate, easier movement in the area and a better cost of living.

“I think we want companies to be saying … ‘If we’re going to move to Chicago, why don’t we look at Milwaukee? Look what they have to offer.’” he said.

Palec said this can be measured not just with big deals like a headquarters move. It also includes when companies that have dozens of offices around the U.S. start taking a serious look at Milwaukee.

“When that happens in Milwaukee, that’s when I’ll know people are noticing,” he said.

With challenges still ahead and lofty goals set, now has never been a better time for Milwaukee to achieve them, Palec said.

“I don’t have the panacea, but I have a lot of optimism because for the first time in 35 years, in the last five years, I have felt a generational shift in attitude for this city,” he said. “Now, if we can embrace that positive attitude that’s happening, that’s where things start to change.” n

ZOOLOGICAL SOCIETY O F M I LW A U K E E PHONE: (414) 258-2333 WEB: zoosociety.org The mission of the Zoological Society of Milwaukee is to take part in conserving wildlife and endangered species, to educate people about the importance of wildlife and the environment, and to support the Milwaukee County Zoo.

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Special Report REAL ESTATE & DEVELOPMENT

How should Milwaukee position itself to thrive in the future?

With cranes dotting the skyline, a new arena bringing more energy downtown and planners working feverishly to prepare the city to host the 2020 Democratic National Convention, it is an exciting time for Milwaukee. But has the city really turned the corner? Major problems still exist, including poverty and segregation. Can Milwaukee harness its current momentum to create a better future?

Futurist Michael Perman will explore what lies ahead for Milwaukee in his keynote address at the annual BizTimes Milwaukee Commercial Real Estate and Development Conference, which will be held on Friday, Nov. 15 from 7:00 to 9:30 a.m. at the Italian Community Center in Milwaukee.

A Milwaukee-area native, Perman now lives in Portland, Oregon and his business, C’Est What LLC, is a mindful innovation firm. He has consulted for several major brands during his career, including Nike, Adidas, Williams-Sonoma, Levi’s, Gap, Starbucks, Del Monte, General Mills, Google and Hyatt Hotels.

Perman is also the author of the book, “Craving the Future: Transforming our Deepest Desires into New Realities.”

Perman spoke to BizTimes Milwaukee editor Andrew Weiland in advance of his appearance at the Commercial Real Estate and Development Conference. Following are portions of that interview.

similar to Portland (Oregon), where I live now.

They are almost exactly the same size. Milwaukee has the advantage of being more diverse than Portland. Both have a river through the city, so water life is a good part of the culture. And Milwaukee and Portland are both maker towns.

They have this working-person root. Gears and steel. What’s interesting is that Portland has twice the number of breweries as Milwaukee does. Maybe that’s because the hops are grown here. The way Portland has changed: there’s a lot of technology here, we’re driven by the shoe business – Nike, Adidas, Columbia Sportswear, a few others. That changed the trajectory of Portland. It’s not clear to me if the trajectory has changed in Milwaukee in the same way. I think of Milwaukee as doing well at the things it is used to doing well at.”

BIZTIMES: As a Milwaukee native who now has an outside perspective and as someone who thinks a lot about where things are going and what lies ahead, what are your thoughts on today’s Milwaukee?

PERMAN: “I think Milwaukee is actually quite

BIZTIMES: Portland is a city often described as cool, hip, up-and-coming. What created that?

PERMAN: “Having spent time in the apparel and fashion business … apparel is very tied to cultural moments and movements. You are dealing with sports, music and film celebrities. Political people.

Michael Perman

I think the brainpower required to stay tuned into that … I think that has brought in a different mindset over time, a mindset of creation and inventiveness and boldness that brought with it all sorts of other people, and when that happens, you grow. (Portland) is growing by 111 people a day here, net gain. So, there’s a lot of cranes in the area.”

The other thing is Portland is a relief station from San Francisco. In other words, people flee up here from California because they don’t want that life anymore, the craziness. When they get here and realize that people are really, really nice.

The pace is pretty slow. People have time to talk to each other.”

BIZTIMES: Is Portland also considered a lowcost alternative to San Francisco, Los Angeles, Seattle, etc.?

PERMAN: “For sure. You can still get twice the place for half the price here. You get what you pay for here. I’m a little hard on San Francisco.

I think that city has been in a downward spiral for a number of years, and I think it’s continuing down in terms of its ability to be an arbiter

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of social good. The ethos in Oregon around sustainability, around human connection, around kindness, but also around being cultural arbiters and being a town of invention and creation is really strong here and I think that’s why people are flocking here.”

BIZTIMES: Attracting and retaining talent is a big challenge for Milwaukee. What do you think Milwaukee should do to make it a destination for the best and the brightest?

PERMAN: “Wisconsin is actually in a relatively safe position in regards to climate change. I think we’re in a situation now where almost every decision about the future has to consider the impact of climate change, because it’s another thing that’s starting to spiral out of control. Twenty years from now, people will wake up in Milwaukee on some fine spring day and realize there was no snow that winter. That will seem very pleasant at first until they realize there may never be snow in Milwaukee again. Milwaukee is likely to have the climate of Arkansas in 20 years. But at the same time Milwaukee has this inherent engineering ingenuity … it has the potential to be a leader in

sustainability. Things like that are going to be magnets. People will literally be fleeing other cities and want a different place to go. With that comes talent.”

BIZTIMES: How should building owners prepare their structures to meet the needs of the future?

PERMAN: “I think you want to start at the highest level in terms of, what kind of city do you want to be? And then, what kind of buildings do you want to be known for? … At the very minimum any new building has to be either carbon neutral or regenerative, in terms of the operations of the building and the physical materials that are used and how it’s built. To me, that’s square one.”

way that have zero impact. I work with a lot of consumer product companies and everyone is working on ways to be regenerative or neutral in their impact on climate. I do think consumers are becoming more and more interested in living that lifestyle.”

BIZTIMES: And why is that?

PERMAN: “Because of climate change.”

BIZTIMES: One thing Milwaukee has tried to do is position itself as the freshwater and water technology capital of the world. What do you think of that as a long-term economic strategy?

PERMAN: “I love it. I think it’s got a lot of potential. There’s close to a billion people in the world that don’t have access to clean, safe water. The degree to which Milwaukee can double down and be a global center for the thinking and the action around water seems to me like a really fabulous strategy.”

BIZTIMES: So tenants are going to demand it?

PERMAN: “I think consumers are going to demand a society that is safe and clean. There are cities around the world that don’t have that sensibility. I don’t know of too many cities that are known for their ability to be ready for climate change. To have buildings that are created in a

BIZTIMES: Any closing thoughts?

PERMAN: “I love Milwaukee. The future of Milwaukee is all about the intersection of authentic roots with an innovation future, to chart the course, being known for iconic and relevant experiences and contributions to the betterment of society.” n

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Special Report REAL ESTATE & DEVELOPMENT

CARW members’ optimism level plunges

CARW members’ impression of CRE market conditions

BY ANDREW WEILAND, staff writer COMMERCIAL REAL ESTATE brokers in southeastern Wisconsin are far less optimistic about the area’s real estate market than they were a year ago, according to the results of the annual survey by BizTimes Milwaukee of members of the Commercial Association of Realtors Wisconsin.

This year, 70 CARW members participated in the survey, which has been conducted every year since 2010.

When asked their impression of the current real estate market, about 53% of CARW members said it is “improving,” 47% said it is “flat” and none said it was “weak.”

That is the lowest percentage of CARW members describing the current market as “improving” since only 43% said so in 2012. Last year, 74% said the market was improving.

When asked if they believe the region’s commercial real estate market will improve in 2020,

SOURCE: BIZTIMES ANNUAL SURVEY OF CARW MEMBERS

61.4% of survey respondents said “yes.” That’s way down from last year when 88.3% of respondents to the CARW survey predicted that the market would improve in 2019.

16th Annual

Based on the survey results, area commercial real estate brokers’ optimism has fallen across all sectors of the industry.

When asked their impression of the capital

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markets for commercial real estate, 45.7% said they are “improving” (down from 58.4% a year ago), 52.9% said they are “flat” and 1.4% said they are “declining.”

The biggest concern is for the area’s retail market. Only 24.3% of the CARW survey respondents said it is “improving,” down from 42.9% last year. This year, 52.9% said the area’s retail market is “flat” and 22.9% said it is “declining.”

Retail real estate is facing major challenges as online shopping has transformed retail and dramatically shifted consumer shopping habits.

In recent years, the region has attracted several new retail developments, including 84South in Greenfield, The Corners of Brookfield and The Corridor in Brookfield.

However, some older shopping centers have lost anchor tenants and been forced to make big changes. Brookfield Square recently added a Movie Tavern theater complex and a Whirlyball entertainment center. Southridge Mall in Greendale and Bayshore Town Center in Glendale each have dozens of vacancies. The owner of Bayshore recently began a major redevelopment project for that mall.

Despite the construction of new office buildings in downtown Milwaukee, CARW members are becoming less optimistic about the office market as well. Of those responding to the survey, only 34.3% said the area’s office market is “improving,” down from 49.4% a year ago. This year, 61.4% said the area’s office market is “flat” and 4.3% said it is “declining.”

According to CARW’s third quarter market report, the vacancy rate for the Milwaukee area office market dipped from 12.7% during the fourth quarter of 2018 to 11.9% during the third quarter of 2019. The market absorbed more than 400,000 square feet of office space during the third quarter, the report says, in part because tenants like ProHealth Care and Milwaukee Tool purchased office buildings for their own use.

Currently, there is more than 1 million square feet of office space under construction in the Milwaukee area, including the 25-story, 380,000-square-foot BMO Tower and the 11-story, 153,000-square-foot Huron Building in downtown Milwaukee.

The industrial market remains the strongest commercial real estate sector in southeastern Wisconsin, yet CARW members’ optimism for it is also in decline. While 72.9% of survey respondents said the area’s industrial market is “improving,” that’s down from 89.6% a year ago.

The area’s industrial market has a 3.8% vacancy rate, it absorbed 710,000 square feet of space in the third quarter and has absorbed 2.5 million square feet of space year-to-date, according to the CARW market report. n biztimes.com / 35

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Special Report REAL ESTATE & DEVELOPMENT

Housing Authority’s planned residential tower ‘filling a niche,’ city officials say

BY ALEX ZANK, staff writer THE HOUSING AUTHORITY of the City of Milwaukee, through its development arm Travaux Inc., plans to construct a 32-story mixed-income tower to fill a niche it claims is not being met in the Milwaukee area.

This spring, officials unveiled the housing authority’s (HACM) plans for Convent Hill South, which would go up at the corner of Knapp and Milwaukee streets. The roughly $150 million tower would have as many as 350 affordable and market-rate residential units, 40,000 square feet of office space, 13 townhouses along Milwaukee and Knapp streets and amenities typically found in upscale high-rises, such as a swimming pool and fitness center.

Scott Simon, vice president of development with Travaux, said Convent Hill South is a unique project for the area. However, it would not be different from high-rises built elsewhere in the U.S., in communities that contain inclusionary zoning requirements. Such requirements ensure a portion of units are set aside for low-income families.

“By definition we are filling a niche that a lot of other communities are having filled with mixed-income developments on all sides,” he said.

Milwaukee is not able to enact such requirements due to state law, said Simon. Elected leaders in 2017 considered an inclusionary housing proposal for certain properties that receive assistance from the city, but the city attorney’s office said such a move would be illegal.

Amy Hall, a HACM spokeswoman, added that the revenue generated from the market-rate and commercial tenants will help finance necessary capital improvements on Housing Authority properties. Financing those improvements has become more difficult in recent years due to shrinking contributions from the federal level, she said.

“What this allows us to do is provide a funding stream that allows us to maintain our portfolio and generate the money that goes back into HACM,” Hall said.

In addition, there’s a shortage of both affordable units and housing overall, according to Travaux.

Simon said there is a shortage of affordable units across the nation. In Milwaukee specifically, the shortage is made apparent by the waiting lists for various HACM properties, he added.

36 / BizTimes Milwaukee NOVEMBER 11, 2019

Convent Hill South mixed-income residential tower.

“We’re hoping to provide as many new units over the next number of years that we can to accommodate the demand,” he said.

As for market rate, Simon said it appears vacancy rates are falling below 5% in the market.

And according to market research, 5% appears to be the equilibrium in the market, he said.

“That tells us there is greater demand than there is supply at the moment,” Simon said.

As of mid-October, schematic design on the project was at 90% completion, he said. The project team had also completed outside market research and was still determining the appropriate unit mix. Further, the team will also have to determine what percent of the area’s median income renters would need to be earning in order to qualify for the affordable units.

Simon said he expects the unit mix and affordability levels will be finalized within the next six months.

Also to be finalized are development design and construction documents. Simon said each of these steps will take at least three months, and that’s after an additional month needed to complete schematic design.

From there, Travaux will piece together the project financing.

“There’s many options we’re looking at right now, the first and primary being the Opportunity Zone funds that are available,” said Simon, alluding to the fact that the site falls within a federal and state designated Opportunity Zone. This program was created in 2017 by federal lawmakers to encourage investment in projects located in distressed areas.

Simon said he expects Opportunity Zone funds to make up somewhere between 15% and 20% for an equity contribution on the project.

Other financing options include various HUD programs, offerings from Fannie Mae and Freddie Mac, and more conventional options, such as mezzanine and equity debt.

Travaux also plans to bring on a construction manager as well as a property manager. Hall said in late October that HACM expected to issue a request for proposals seeking a construction manager within the next couple weeks. A separate RFP for property management would be issued further into the future.

Travaux’s mission Travaux was incorporated in 2015 as a nonprofit entity that’s independent of the housing authority. However, it is an “instrumentality” of HACM, Simon said.

“Which means we follow the same rules and guidelines as the housing authority, but we act independently,” he said. “As a non-for-profit, anything that we earn is pushed back into the housing authority for the general missions (of) providing additional housing, additional amenities for the residents of Milwaukee that are in need.”

Travaux has three divisions consisting of development, construction and property management. Travaux oversaw the development and construction of the Westlawn project on the city’s north side, as well as other projects. It’s also slowly taking over the management of some of its existing properties, Simon said.

Hall said a chief reason Travaux was created is related to “legacy costs” associated with employees of the housing authority. HACM employees receive city pension and benefits; Travaux employees do not.

“So that helps reduce the cost in terms of employees,” she said.

Hall said she’s unaware of other housing authorities in the state that have instrumentalities similar to Travaux. However, they are more common nationwide. In fact, the U.S. Department of Housing and Urban Development encouraged the creation of an entity such as Travaux, she said.

When asked whether Travaux has the abili-

ty to develop projects not used by HACM, Simon said, “those are items that are being worked out right now.” He said the organization is providing not-for-profit assistance for outside entities and is looking to combine with other housing authorities to assist them in their projects, but its full capabilities are “still being examined.”

perplexed when they first learned of the project, questioning why the housing authority would create an entity that essentially competes with the real estate community, rather than seek out partnerships with private developers.

One developer questioned the reasoning for a residential tower. He said a high-rise is far more expensive than several mid-rises, which would effectively provide more units at a lower cost. He argued that the Milwaukee market is only able to take on a certain number of residential towers. What’s more, there are a number of towers proposed for downtown by private developers already. It may have made sense if all the units in Convent Hill South were affordable, so as not to take away from the market for these other projects, the developer said.

As to why HACM chose to go with Travaux on this project and not a private partner, Hall noted the housing authority has 15 years of development experience on its own. She also pointed out the fact that any revenue Travaux takes in directly benefits HACM. Private developers, on the other hand, keep those development fees.

Simon, meanwhile, explained the reasons for building a high-rise rather than something at a

Questions, concerns from developers Given the unprecedented nature of the project, coupled with the fact that residential towers aren’t built too often in Milwaukee, Convent Hill South has grabbed the interest of a number of those in the private real estate development community.

However, they aren’t readily offering their concerns publicly.

The Milwaukee-area developers contacted for this story either declined to comment on the record or did not respond to requests for comment.

Those who gave their thoughts did so anonymously, out of concern of potentially falling out of favor with the city.

Developers said they were surprised and

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smaller scale.

“We don’t have control over what is going on in the private sector,” he said. “That’s fully market-driven, as we believe our market-rate products will be as well.”

Some developers are looking for state and local assistance for their projects, which Travaux likely won’t need to do because the parcel is in an Opportunity Zone, Simon said.

And the limited availability of real estate on the Lower East Side necessitates Travaux build up, he said. If Travaux did not build a high-rise it would actually limit the number of units that it could offer on that particular site, he added.

“If the demand were being filled for the affordable units in the private sector, there would not be demand for us to bring a mixed-income building in the marketplace, but there is a demand for it,” Simon said, addressing concerns of this project impacting other planned towers.

One question by developers still remains unanswered, however. That is whether the tower, if eventually constructed, will be subject to property taxes.

“That will depend on the financing for the project so that is unknown at this time,” Hall said. n

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Special Report VETERANS IN THE WORKPLACE

SALUTING OUR VETERANS A N D H O N O R I N G T H OS E W H O M A D E T H E U LT I M AT E S AC R I FI C E

COUSTECH S U P PLY

I N C.

wife Crystal passed away. I’ve had the chance to bring in a new culture, which is: work hard, play hard. We offer great benefits and flexibility to all employees with a nice work/life balance. EliteHCG is a great company that now provides talent acquisition to a variety of industries in 17 different states and is still growing.”

veterans in the workforce?

BILL BERRIEN Chief executive officer, Pindel Global Precision Branch: U.S. Navy Rank: Lieutenant Years Served: 1991-1999 Describe your responsibilities and experiences while serving:

“U.S. Navy SEAL officer; commanding SEAL platoons and other special operations forces on operations globally.”

How can employers help 38 / BizTimes Milwaukee NOVEMBER 11, 2019

“Employers would help most effectively if they aggressively help veterans build a technical base in their assignment and, later, from that base, the veteran’s leadership and management skills will be able to accelerate their contribution and impact.”

What is the biggest benefit from your service in your current position?

“The biggest benefit is the realization that I don’t need to be the expert in every aspect of the team’s responsibilities but, rather, build a team where others are experts (or at least much more functionally skilled) and then work with them to figure out how to collectively accomplish the mission.

Also, for me, I enjoyed the ‘suck factor’ of the SEALs and few things can be more painful or uncomfortable, so daily life is pretty good.”

DAVID KING President and owner, Elite Human Capital Group (eliteHCG) Branch: Army (Active Duty) Rank: Lieutenant Colonel Years Served: 22 What is the biggest benefit from your service in your current position?

“The biggest benefit from my years of service is my ability to overcome adversity, along with leadership, organizational skills and my desire to assist others and improve the operations of organizations that I’m part of. As some might know, I inherited Elite after my

How can employers help veterans in the workforce?

“While serving in the military, veterans usually pick up some very unusual skill sets. Employers should look closely at those military skills to see if they are transferrable into current open positions. The seven biggest traits that a veteran can bring to the civilian workforce are: teamwork, ability to handle stressful situations, commitment to getting the job done, good communication, ability to follow instructions, great problem-solving skills and adaptability. Military personnel are often cross-trained in multiple skills and have experience in varied tasks and responsibilities. Much of this experience can translate to their participation in the workforce, making the veteran an asset to any organization.”

the officers who were responsible for turning the key if and when the time came to launch the nuclear missiles.

My role was to support the mission of protecting the officers who went down the silos for 48 hours at a time.”

How has your service influenced how you approach your career today?

KATHERINE RAMIREZ Founder and creative CEO, adBidtise Branch: U.S. Air Force Rank: Sergeant Years served: 1988 to 1992 active,

four years reserve

Describe your responsibilities and experiences while serving.

“I had a top-secret clearance role and worked on the Minute Man II Missiles at Whitman Air Force Base alongside

“I learned early in the military that you have to work hard to earn your right to get what you want. The military teaches you that nothing should be taken for granted. You have to fight for everything you have and keep fighting to maintain your level of authority.

It taught me about owning up to my mistakes and being responsible, and understanding that people depend on my role and mission every single day.”

Advice for veterans on navigating the workforce?

“Find the role that fits your personality and look for an opportunity that will allow you to be independent but still part of a team. The sky is the limit.

There are so many opportunities available, it is just about what is the best fit for you and your needs so that it is a win-win for everyone.”

different walks of life from across the United States and it made me very thankful to be from Wisconsin.”

FRED SITZBERGER Founder and chief executive officer, Sitzberger & Co. Branch: U.S. Army (82nd Airborne

Paratrooper)

Rank: Specialist 4th Class Years served: 1971 to 1973 Describe your responsibilities and experiences while serving:

“I was in an infantry company, but I was a company clerk. So, I would have to say that I was exposed to many

war criminals to bring to stand trial on the war tribunal.”

Rank: Specialist Years served: Six years

How can employers help veterans in the workforce?

JULIE WATERMAN Owner and chocolatier, Indulgence Chocolatiers Branch: Army National Guard

Describe your responsibilities and experiences while serving.

“My job was as a military intelligence analyst. While on deployment to Bosnia and Herzegovina, this meant I helped ensure laws were multiethnic friendly in my region and I helped track

“No two veterans are the same or have the same story. Employers need to let veterans know that they care about and support them. From there, create a place where open dialogue is welcome so that veterans have support and opportunity to better themselves personally and professionally within a company.”

“I saw a part of life that I was never exposed to and it made me appreciate where I came from. It gave me a broad viewpoint on things. It developed a thankfulness in me that my parents stressed education and made us go to work every day. All of those fundamental disciplines that were part of my youth. There were individuals who didn’t have this upbringing.”

Advice for veterans navigating the workforce?

“Show up early and leave late. It’s a simple success program for anybody in the workforce.”

What advice do you have for veterans navigating the workforce?

What is the biggest benefit from your service in your current position?

“I got to observe all sorts of leaders – some motivating and encouraging, and some that were clearly focused on the fact that they were in charge, and not much else. I really reflect on those good leaders and what inspired me while in the Army and try to adopt some of those concepts in my own role with Indulgence Chocolatiers.”

How has your service influenced how you approach your career today?

Rank: Sgt. First Class

“Network, network, network, put yourself out there ... The biggest challenge is understanding where you fit in in the civilian world and seeking out opportunities because the civilian world isn’t always going to come knocking ... and then recognize that you have to be able to speak both languages.

You have to be able to articulate your military career into like terms in the civilian world.”

Years Served: 2004-present

What can employers do to help veterans?

ANDY WEINS President, Green Up Solutions Branch: U.S. Army Reserve

Describe Your Responsibilities While Serving:

“I’m a career counselor now … prior to that I did one tour in Iraq as a truck driver and I did one tour in Guantanamo Bay, Cuba as a military police officer.”

“Ask questions. It is really that simple.

Veterans for the most part are open and honest, but we will not speak up because we’ve been trained to follow orders and not question authority. The best thing you can do as an employer ... ask questions to understand the opportunities and challenges with every employee.” biztimes.com / 39

Special Report VETERANS IN THE WORKPLACE

Academy of Advanced Manufacturing trains veterans for career opportunities

BY MAREDITHE MEYER, staff writer When Rockwell Automation Inc. and ManpowerGroup set out in 2017 to recruit and train veterans for careers in advanced manufacturing, they committed to building a program ultimately aimed at closing a growing skills gap in the industry.

Now in its second year, the Academy of Advanced Manufacturing has graduated 10 cohorts and a total of 170 veterans, with plans to train 115 veterans in 2020.

The Milwaukee-based companies aim to graduate 1,000 veterans per year and, although that figure is still an aspiration, their commitment includes plans to reach that goal.

They have seen initial success with the veterans who have partic-

ipated so far. The Academy has reported a more than 90% placement rate and an 83% retention rate with Rockwell’s customers in Wisconsin and in other manufacturing-heavy regions of the country.

The program’s initial success has not been devoid of a learning curve and even some hurdles,that come with launching new initiatives. In this case, it was gaining a better understanding of veterans’ specific needs based on their military background.

“Veterans come with a great work ethic, veterans come highly skilled, but in many cases, you may need to put infrastructure in place or things in place to help them navigate a civilian workforce after

A graduate of the Academy of Advanced Manufacturing now works as a controls technician at a Water Management company after completing the 12- week training program.

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40 / BizTimes Milwaukee NOVEMBER 11, 2019

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Veterans participating in the Academy of Advanced Manufacturing working on control products in the lab at Rockwell Automation.

being in the military,” said Mary Burgoon, business development manager at the Academy of Advanced Manufacturing.

That’s why it’s necessary that companies, whether they are training and placing or hiring veterans themselves, walk the walk and talk the talk, she said.

“It’s not a secret sauce,” she said.

Programs such as employee resource groups or one-on-one mentoring with other veterans at the organization can help new veteran hires navigate the civilian workforce by including them in company culture, she said.

The Academy’s trainees receive individual instruction from Manpower coaches, who help them “get ready to be successful” in a completely new work environment, said Rebekah Kowalski, vice president of Manpower Manufacturing. That includes everything from preparing for an annual review to drafting a resume to learning how to tell their story.

“Taking initiative, problem solving, grit, the dedication to a job well done—those are all things that are in common with what’s required of a modern manufacturing professional,” Kowalski said. “The coach helps them pull that thread of narrative across from what they did to what they’re going to be doing.”

In addition to their strong commitment, Kowalski said, today’s employers need to be increasingly creative and resourceful when attracting

and retaining veteran employees.

She made the following suggestions for companies looking to tap into that population:

• Seek to understand adjacent skill sets Veterans are equipped with specific skills that can transfer to the civilian workforce, but it’s not always clear how their military experience could fit a specific role. Kowalski urges employers to keep an open mind when screening veteran candidates and not overlook someone just because their technical skills don’t perfectly fit the job description.

“Really look at what they did and invite them to tell their story even though it may not be from a frame of reference that you as a hiring manager may exactly understand,” she said.

• Examine your culture Leaders and hiring managers should be on the same page about company culture and creating an inclusive environment for new hires, one that recognizes the significance of hiring veterans and the wraparound services they may need.

“It’s really important to think about the people you’re bringing in and how your culture can support that,” Kowalski said.

Employers could consider the following questions: Is it a learning culture? Is it adaptive? Does it allow people the time to come up to speed? Is there a general sense of biztimes.com / 41

Special Report VETERANS IN THE WORKPLACE teamwork and collaboration, or are people isolated?

• Plug opportunities for growth “There is a war for talent going on and you catch people’s eyes when you talk about the opportunities for them to develop and make progress,” Kowalski said.

Educating employees on their potential career path is key to attraction and retention because it helps them see a future at the company.

“And it pays to make sure the messages you’re sending are really resonating because a lot of organizations think they are being very clear, but when you actually talk to the employee base, they actually don’t know what their effort is going to amount to,” Kowalski said.

• Be empathic Employers should consider how employees of diverse backgrounds

will perceive company processes, procedures and culture. Kowalski also recommends involving current veteran employees in hiring decisions. They can provide a first-hand perspective on how veterans are supported at the company.

• Consult outside resources Local and statewide organizations and advocacy groups provide services for both veteran employees and employers.

“They can walk you through the types of situations you may run into and the wraparound services they offer so that you can really think about and be planful about how you engage proactively to go after an attractive population,” she said.

Companies can also reference military websites to learn more about veterans’ transferable skills.

In September, the Wisconsin Veterans Chamber of Commerce

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rolled out a new program, called Invest in Vets, that is specifically designed to equip employers with necessary resources and information around hiring veterans.

“If businesses want to truly receive the benefits and contributions that come with employing smart, capable leaders with military experience, leaders in business need to truly invest in this talent group and match our stated commitment with our actions,” said Saul Newton, executive director at the Wisconsin Veterans Chamber of Commerce.

When it comes to hiring veterans for the first time, companies often don’t know where to start, according to the chamber. Invest in Vets is meant to spark conversation around the issue and gives businesses a chance to “earn their stars” and complete a symbolic scorecard as they implement veteran-friendly changes.

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are asked to take a veteran internship pledge, military spouse pledge and adopt several veteran-supporting policies and procedures.

But change isn’t likely to happen overnight, said Erin Zimdars-Gagnon, communications director at the Wisconsin Veterans Chamber of Commerce.

“Our program is not an easy check-in-the-box and we understand that and we know that can be frustrating, but we are tired of people saying they are veteran-friendly when they don’t actually have anything in their handbook for veterans or take the time to care for their veterans and their families.”

She said Invest in Vets has so far attracted Wisconsin-based companies such as Kohler Co., WEC Energy Group and American Family Insurance, which have pledged to hire more than 100 veterans and military spouses as part of the program. n

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42 / BizTimes Milwaukee NOVEMBER 11, 2019

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supporting sponsors

SPONSORED REPORT | DONATED BY BIZTIMES MEDIA

MILWAUKEE HOMELESS VETERANS INITIATIVE wisconsinvets.org 6300 W. National Ave., West Allis, WI 53214 | Ph: (414) 257-4111 Facebook: @mkehomelessvets.org | Twitter: @mkehomelessvets Year established: 2008 Total Employees: 6 Executive leadership:

» » » » »

Debbie Buchanan, Executive Director Jacob Heinitz, Board President Hon. Robert E. Webb Jr. – Vice President Steven Kassens – Treasurer Timothy P. Kenney - Secretary

WOVIN: The Women Veterans Initiative

Board OFficers

Board Members

JACOB HEINITZ - PRESIDENT

CHERYL J. JACOBS

Major Account Manager -Cintas *Army Veteran HON ROBERT E. WEBB JR. VICE PRESIDENT

Attorney at Law *Veteran, US Army, Staff Judge Advocate

STEPHEN KASSENS TREASURER

Director of Asset Management Capri Communities *Retired Army Veteran, 23 years TIMOTHY P. KENNEY SECRETARY

Aircraft Technician Supervisor 128th Air Refueling Wing *Wisconsin Air National Guard, USAF

Froedtert Health Imaging Technology Mgt. *American Legion Auxiliary President – Post 382 BILL MEISEL

Movement Mortgage / Branch Leader *Army Veteran NAKOA MOONBLOOD

Aircraft Mechanic (Chief) / Security Forces Marshal *United States Air Force – Active Duty SAUL NEWTON

Executive Director, Veterans Chamber of Commerce *US Army MARIETTA TICALI

Realty Broker Associate Director - Ozaukee Board of Realtors

Women Veterans are the fastest growing segment of the homeless population and at least 35% have children. They face issues and barriers different from their male peers, with some who do not regard themselves as veterans due to lack of integration or because they did not serve in combat.

WOVIN was created by women veterans to help their comrades thrive by providing specific programs that meet the needs of women veterans to include our Emergency Food Pantry and Home Support Programs. This year we have already served 122 women and 86 children and as we approach our busiest time of the year-we expect to serve at least 40 additional women and children.

WOVIN continues to bridge the trust gap, inform women veterans on services they are eligible to receive, connect them with community services, and ensure their unique needs are being met.

in Spring, WOVIN will be hosting its 3rd Annual Women’s Wellness Event giving female veterans the opportunity to network over dinner and participate in various pampering activities including: massage, yoga, manicures, acupuncture and much more! August will bring the celebration of the 3rd Annual Operation Back to School Event providing back packs and school supplies for veteran families.

Goals: In 2020 the Emergency Food Pantry will

be looking to expand its services to veterans by providing healthier options as well as perishable items. In order to enhance the newly intake process for veterans, plans are being developed to build two new crisis rooms allowing for additional comfort and privacy.

Volunteer opportunities: With a small

staff of six employees, volunteers are always welcome to help supplement with assistance in warehouse operations, the Emergency Food Pantry and various events throughout the year.

Giving opportunities: Financial contributions are critical for sustaining services for veterans through the crisis fund. Donations of food, household goods, furniture, cleaning supplies and gift cards assist in supporting the Home Support and Emergency Food Pantry Programs as well as the everyday needs of veterans in crisis.

Service area: MHVI was founded by

veterans and continues to be run by veterans to this day. Since its inception in 2008, MHVI has served over 4,500 veterans and their families all over Southeastern Wisconsin as well as throughout the state of Wisconsin.

Fundraising – Events: MHVI will be host-

ing their Annual Fundraiser in Spring 2020 and celebrating 12 years of serving veterans. Also biztimes.com / 43

SPONSORED REPORT | DONATED BY BIZTIMES MEDIA

OPERATION FINALLY HOME OperationFINALLYHOME.org & OFHWisconsin.com 1624 State Hwy 46 West, Ste 115-606, New Braunfels, WI 78132 | 615-732-6142 Facebook: Operation FINALLY HOME & OFHWisconsin | Twitter: @OpFinallyHome Year established: 2005 – First Wisconsin

project 2015.

Total Employees:

12 (10 – Texas / 2 – Tennessee) The projects in Wisconsin are led by David Belman with Belman Homes who volunteers his time to lead the builds, committee and fundraising events.

Budget: $300,000 Executive leadership:

» Dan Wallrath, Founder » Rusty Carroll, Executive Director » Molly Halliday, Senior Vice President Marketing and Project Management

Mission and Vision Statement:

At Operation FINALLY HOME, we provide homes and home modifications to America’s military Heroes and the widows of the fallen who have sacrificed so much to defend our freedoms and values. We bring together corporate sponsors, builder associations, builders, remodelers, developers, individual contributors, and volunteers to help these Heroes and their families by addressing one of their most pressing needs – a place to call home.

Service area: We have 250 home projects

completed or in planning in 33 states to for deserving veterans and their families. In Wisconsin, our projects to date have been in Jackson (2 homes), Waukesha (2 homes + 1 in planning)) and Menomonee Falls (1 home + 1 in planning) and we hope to expand to other areas throughout the state.

Fundraising – Events/Opportunities:

Our signature fundraiser is our annual golf outing held at Kettle Hills – our next one will be on September 24, 2020. In addition, we will host our 2nd Operation Rock the House at Turner 44 / BizTimes Milwaukee NOVEMBER 11, 2019

Hall on February 29, 2020. Please follow us on Facebook to learn about all the events which provide an opportunity to volunteer as well as raise funds for projects in Wisconsin.

Goals: With faith in God and determined

action, we will have hundreds of homes built annually across the nation for our Heroes, those who have sacrificed while wearing America’s uniform in defense of our freedoms and values, helping them get their lives back on track after the hardships they have faced. In Wisconsin, our goal to provide at least one mortgage-free home to a deserving veteran each year.

Volunteer opportunities: For the

Operation FINALLY HOME in Wisconsin projects, the volunteer opportunities primarily exist at our fundraising events – please visit our Facebook page for more information.

Giving opportunities: We appreciate all donations that we receive to honor our heroes with homes. To donate directly to projects in Wisconsin, please visit www.OperationFINALLYHOME.org/Wisconsin. If you’d prefer to write a check, please make it out to Operation FINALLY HOME and put “Wisconsin Projects” in the memo line and mail it to:

Operation FINALLY HOME c/o Chase Bank P.O. Box 732667 Dallas, TX 75373

Strategies LEADERSHIP

Let go and delegate Your time is valuable, use it wisely

“Free up your time to work on the critical items that will push your business forward.”

EARLY IN MY CAREER I really struggled with managing my time. There simply was never enough time in the day for me to help in all the areas that needed it—or that I thought needed it.

I was the CEO and co-founder of a growing aerospace business called EMTEQ. My day would consist of checking over 200 emails, returning phone calls and working through a task list that never ended. Some of these tasks consisted of handling the day-to-day management to make sure things got done, problems got solved, and that all stakeholders were taken care of.

Sound familiar?

When you are a business owner or founder, you are naturally involved in many things. You know the ins and outs of the company, the products, the customers, the supply base and systems

better than most. I became so good at these day-today tasks and problem-solving that, for me, it was an adrenaline rush and an accomplishment. Some call this firefighting and it made my job feel very rewarding.

I eventually ran out of time to do what was needed to grow EMTEQ. I was running a command and control operation. When managers were put into place, I didn’t delegate and trust them to do their jobs. When you have managers but you are making every hiring and firing decision like I used to, this should be a huge red flag. I quickly realized that I would be more effective by delegating and empowering my staff.

Some changes had to be made. Over time, I turned to business coaches to help us improve our operations. I came to appreciate continuous improvement, deployment and business management tools. They just needed to be applied to our business processes.

With a goal to save time, you have to plan and think about what could be worked on and how it brings back the most value. The reality is that every day consists of planned and unplanned activities. This is OK, but you need something to fall back on when that unplanned activity is completed.

At EMTEQ, that something was the Single-Page Plan. We created this business plan to include only our vision, mission, initiatives and goals for the year. We communicated it and made sure the employees understood it.

This plan made it possible for everyone to align their major tasks and activities with the company’s initiatives. It helped me prioritize my schedule and think twice about firefighting. Instead of answering 200 emails per day, I would think about what I needed to focus on – and attend to those matters first. As the leader, I started to eliminate my activities from problems that held minimal value. I started to become really conscientious of the ROI of all I did.

Our Single-Page Plan was simple, focused and became the roadmap to growth. Instead of completing everything that went across my desk, I only did what was outlined on the plan. Similarly, the leadership team and our vested stakeholders would work together to achieve our goals. With

everyone working towards the same plan, there was less time spent on non-value-added activities.

Throughout the year, we implemented a deployment process to keep everyone focused on the plan. We would schedule and define our meetings at the beginning of the year. When meetings are defined, they become more efficient and less frequent! These meetings allowed us to come up for a breath of fresh air, strategize, hold each other accountable and modify how to execute towards the plan. After all, the plan for your business will likely change throughout the year.

Between meetings, we would enforce accountability through our Must Do/Can’t Miss boards which propelled growth and employee engagement.

If this article speaks to you, just remember that it’s OK to not know where to go next when it comes to saving time. It took EMTEQ years to perfect the Single-Page Plan and its execution cycle. My advice is to use a system that works for you.

Free up your time to work on the critical items that will push your business forward. Your growth will happen when you align your people and processes to a strategy. n

JERRY JENDUSA Jerry Jendusa is the co-founder of STUCK Coaching and was the founder of EMTEQ. He is a business advisor, investor and the author of “Get Unstuck.” He can be contacted at jerryj@getunstuck.com. biztimes.com / 45

Strategies NEGOTIATIONS

Seven important steps for interview preparation Gather information to strengthen your position WHEN NEW EMPLOYMENT opportunities present themselves, you want to bring your “A” game.

Over more than 40 years in business and consulting I have interviewed hundreds of applicants at both the entry level and for C-suite positions. I was impressed as well as shocked at the variances in the levels of preparation I experienced.

Based on those interactions, I decided to assemble several steps of what I consider to be best practices when it comes to being prepared for the opportunity to sell yourself to a potential employer.

The seven steps necessary to prepare for that all-important interview and salary negotiation are: 1. Always prepare an updated resume for the desired position, using the job description as your focus. For each cover letter and resume you are submitting, match your skills to those outlined in the job description.

Support each job achievement with quantifiable results.

2. Research the company, its management, its competition and its position in the marketplace. This will help you determine the company’s main sources of business or the services it offers its customers. Go to the company’s website and read about its management team, its business philosophy and search its customer list for a compa46 / BizTimes Milwaukee NOVEMBER 11, 2019

3.

4.

5.

6.

7.

ny where you might know an executive or manager. Network with that individual and ask about their interactions with that firm, both positive and negative.

Research salaries and benefits in your area for the same or comparable positions at similar companies. There are several government and public websites that contain these statistics. For example, DOL.gov contains data on wages and benefits. Your local office of the Wisconsin Department of Workforce Development is also a possible resource for information on salary ranges by industry. This data permits you to develop “information power” for your salary negotiation.

Develop a budget so you can determine how much money you really need to cover your rent, food, insurance (heath, home and auto) and other expenses in that geographical location. This basic level of salary will be your “WATNA,” which is your “worst alternative to a negotiated agreement.” It is the salary number you do not want to accept.

The range of salary and benefits you can accept would be reflected in your “ZOPA,” which is your “zone of potential agreement.” Any offer that falls within the “aspire to,” the top of your desired salary range, or the “acceptable zone,” a salary and benefit package that meets your needs, would be a win.

It is not in your best interest for your first interview to be with the company you desire the most. If you can, set up one or more interviews with your second- and third-tier companies in order to gather information, build your confidence and interviewing skills. If you receive an offer from one of these companies, you can use it as leverage with your No. 1 choice.

After interviewing with these second- and third-tier companies, and having received an offer, you now have developed a “BATNA,” which is your “best alternative to a negotiated agreement.” Should you not get

the first-tier position, you may have one or two other valid offers to accept. Those offers also provide some guidance about salary possibilities and provide you the opportunity to experience the salary negotiation process.

Now that you have gained “line of fire” experience, salary information and insights from your previous interviews, you are ready for the “major leagues.” You have a better understanding of the process and have gathered information about potential employers, their strengths and weaknesses, industry salary ranges and benefits. These interactions have also added to your self-confidence, and ability to answer and ask focused questions during the interview.

Remembering that “needs drive behavior,” you should consider linking your skill sets to the needs of the organization to which you are applying. Be sure to include these skill sets in your resume and cover letter and stress them during the interviewing process. n

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

Strategies A BRIEF CASE

How do I bring new employees into our culture?

Dr. Alia Fox

Michael Fox

Amanda Daering

Founder and medical director H2O Health Hydration Oasis

President and chief executive officer Corberry Digital Marketing

Chief executive officer Newance

“At H2O Health Hydration Oasis, we strive to provide a more personalized and accessible health service for our patients. By removing the large overhead of a big facility, we are able to expedite and customize a specific IV therapy service to better assist with immediate needs.

“With that, we employ our community’s most highly skilled nurses who also work locally in our emergency rooms and clinics. These individuals are familiar with and understand the restrictions of the traditional health care setting. They are constantly striving to improve patient experiences, as H2O affords them more time to personalize care while utilizing their unique skill set.

“Our nursing workforce is diverse, and is representative of the broad spectrum of patients we care for. We value and encourage our nurses’ input and opinions on protocols and functions, and incorporate our team fully into decision-making. Our staff is part of our foundation, not just an employee.

This translates into improved satisfaction and enthusiasm, which is contagious. We also provide an environment and resources that help in the transition of new members on our team. These are the qualities that most individuals desire in a position, with appreciation and recognition of contribution.

At H2O we understand that any single idea can make a difference and that different viewpoints only strengthen us.”

“Creating a great onboarding experience makes it more likely to retain employees long-term. It’s never easy being the new person coming into an established environment. People should be the company’s most valuable asset. So, integrating new employees into your culture should showcase how valued they are. Yet, this process is often overlooked.

There is always some level of anxiety when starting a new role and here are a few ideas to help.

“Begin the onboarding process at the time of offer acceptance. If they have paperwork to fill out, try to get that done online ahead of time. Send them a welcome letter and/or package outlining what the process looks like so they can anticipate what to expect. Ask them to also prepare a one-page bio about themselves with a fun personal photo.

“On their first day they need to sit down with their manager to discuss expectations and goals.

This sets your new team member up for alignment and success. Introductions should be made with close team members. Assign the new team member with a buddy who can show them around and answer questions.

“Brand the experience. Nothing appears more inviting than receiving a welcome bag of company swag. This gives the employee a sense of belonging to the organization. You should also set up one-onone coffee meetings with various peers and leaders at the company. Coffee is a great informal way to bring people together and collaborate.”

“Effective onboarding delivers on three core outcomes as quickly as possible: This new person knows and acts your values. This new person feels interpersonally connected with the team. This new person has the information they need to do their job well.

“The best way to plan and prioritize these outcomes is to identify key stages of being ‘new’: before someone starts, first day, first week, 30/60/90 day checkpoints and half-year and one-year anniversaries.

“We then consciously add training and activities or reinforce information in each of those stages. This may include materials that we give or statements that we make. It could also be activities we plan or ways we act that tie our values to the reality new employees see. Our actions as leaders and company traditions will drown out words every time. Repetition and consistency is critical for this work to stick with new employees. After all, everything is new for them.

“Feedback loops where the new team member can contribute their own ideas along the way both help to improve this process and solidify their understanding of the organization. These feedback loops are not solely between the team members and their manager. Peer-to-peer and team member-to-leadership feedback is critical to a healthy organization.

“By taking a more holistic view of onboarding, new employees will be able to thrive and add to company culture with a clear sense of values, close colleagues and the skills needed to succeed in their role.” n biztimes.com / 47

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made and built in southEASTERN Wisconsin FA L L 2 0 1 9

COVER STORY page 16 made with pride in southeastern Wisconsin

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Inside look at local construction projects

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South Central Edition Publishes January 20, 2020

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STUFF BLOWN UP pages 12 & 22

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BizConnections BIZ PEOPLE

Advertising Section: New Hires, Promotions and Board Appointments

BANKING

COMMERCIAL REAL ESTATE Brad Quade Joins First Business as Deputy Chief Credit Officer.

Brad joins First Business with over 30 years of experience in banking at publicly traded and privately owned institutions. He has led successful lending teams in commercial banking, investment real estate, equipment leasing, and treasury management.

New Hire?

Share the news with the business community.

Announce new hires, promotions, accolades, and board appointments with BizPeople.

Visit biztimes.com/bizconnect to submit your news!

50 / BizTimes Milwaukee NOVEMBER 11, 2019

Mike Armstrong Named Marketing Manager for Milwaukee Hotel Collection.

Mike brings more than 25 years of experience to the Milwaukee Hotel Collection and will support all marketing efforts for the collection, with a special focus on events and restaurants (Stella Van Buren and East Town Kitchen + Bar).

COMMERCIAL REAL ESTATE JLL Adds Senior Project Manager Project management expert Michele Raysich has joined JLL’s Project and Development Services team. She brings extensive experience in the design and construction industry, with years of experiencing coordinating commercial real estate projects.

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

NONPROFIT MATC OPENS NEW AUTOMOTIVE EDUCATION CENTER AT DOWNTOWN CAMPUS Milwaukee Area Technical College recently celebrated the opening of a new automotive education center on its downtown campus, backed by a public-private partnership, to train more students in automotive careers.

The Al Hurvis/PEAK Transportation Center is a 7,400-square-foot lab that includes seven auto repair bays, an analyzer bay and a wash/detailing bay. MATC invested $1.4 million to repurpose a former auditorium space in the school’s Technical and Applied Sciences Building for the new center, along with an additional $1.4 million to renovate adjacent classroom space.

The center is home to MATC’s new RevUp program,

nonprofit

which is aimed at training students for highly skilled technician jobs in the automotive service industry and offering high school and middle school outreach events to expose students to automotive careers.

Programming at the new center is funded by gifts from businesses, individuals and a challenge grant from Tom Hurvis, chairman of Old World Industries LLC, the parent company of the Peak automotive brand.

Donors have pledged $3.23 million for the programming.

Hurivs gave $1.1 million in seed funding and has matched every subsequent pledge and gift.

— Lauren Anderson

c alendar Betty Brinn Children’s Museum will host its 2019 Gala on Saturday,

Nov. 16 at the museum, 929 E. Wisconsin Ave. Cocktails and a silent auction will begin at 6:30 p.m., followed by dinner and another silent auction at 8 p.m. Dancing will begin at 9:30 p.m. More information is available at bbcmkids.org.

Sixteenth Street Community Health Centers will host its 2019 Ce-

lebrity Roast of Amy and Mike Lovell on Wednesday, Nov. 20 from 5-8 p.m. at The Pavilion at Discovery World, 500 N. Harbor Drive.

More information is available at sschc.org.

Easterseals Southeast Wisconsin will host its 85th anniversary gala

on Thursday, Nov. 21 from 5-9 p.m. at Jan Serr Studio, 2155 N. Prospect Ave. The event will begin with a cocktail hour, silent auction, art sale and raffle. Dinner and the program will begin at 6:30 p.m. More information is available at easterseals.com/wi-se.

D O N AT I O N R O U N D U P Kohl’s is giving $1.5 million over three years to the Zoological Society of Milwaukee for the Kohl’s Wild Theater program at the Milwaukee County Zoo. | Haribo of America, Inc. will give $300,000 for the renovation of the University of Wisconsin-Parkside’s athletics venue and a needs-based scholarship program at the school. | Philanthropists Donald and Donna Baumgartner issued a $150,000 match challenge in support of Milwaukee Film, the nonprofit operator of the Milwaukee Film Festival. | Herb Kohl Philanthropies donated $110,000 to provide small grants for students at Milwaukee Area Technical College, Milwaukee Public Schools and the University of Wisconsin-Milwaukee who are facing emergencies. | Milwaukee Downtown, BID #21 has raised more than $80,000 to fund a downtown homeless outreach coordinator for the next year.

SPOTLIGHT

P I N K U M B R E L L A T H E AT E R C O .

1660 N. Prospect Ave., Unit 501, Milwaukee, WI 53202 414-507-3511 | pinkumbrellatheater.org Facebook: facebook.com/pinkumbrellatheater Instagram: @pinkumbrellatheaterco | Twitter: @PinkTheater

Year founded: 2018 Mission statement: The mission of Pink Umbrella Theater Co. is to promote and provide theater that is accessible and inclusive for people who identify with a physical, intellectual or emotional disability.

Primary focus: Currently, Pink Umbrella creates accessible theater for ages eight through adult by offering a wide range of classes focused on advancing acting techniques.

Other focuses: In 2020, we will produce a professional play, employing actors and artists who identify with a disability. Our organization holds residencies in schools as well as offers consultations in working with people of differing abilities.

Employees at this location: One dedicated volunteer executive director, eight professional teaching artists and dozens of unpaid classroom mentors and interns.

Board of directors: Lesley Grider, Dawn Kellner, Chris Reibel, Ken Reibel and Jennifer Reibel Is your organization actively seeking board members? Yes. What roles are you looking to fill?

Committee and board members with an expertise in marketing, event planning, donor development, physical, occupational and/or speech therapy and community engagement.

Ways the business community can help your nonprofit: Donate space to host classes and rehearsals, provide volunteer mentors in a classroom setting, attend a show and donate audio/visual equipment.

Key fundraising events: » Silverstein Family Charitable Fund Challenge Grant; » July 2020: A Night Under the Pink Umbrella, a fundraising dinner.

Key donors: Silverstein Family Charitable Fund, The Project Grace Foundation Executive leadership: Katie Cummings, executive director/ founder

biztimes.com / 51

BizConnections VOLUME 25, NUMBER 16 | NOV 11, 2019

GLANCE AT YESTERYEAR

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

SALES & MARKETING

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

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

Century City, 66 years ago This 1953 photo shows the A.O. Smith plant and homes near West Capitol Drive between North 27th and 35th streets. Today, the property located east of the railroad tracks is being redeveloped as the Century City Business Park. The city of Milwaukee has invested more than $16 million to redevelop the site. Those efforts hit a snag in October when Franklin-based Strauss Brands dropped plans for a new headquarters following neighborhood opposition to the company’s meat processing operations.

— Source: Milwaukee Public Library

COMMENTARY

Strauss fiasco shows lack of leadership IT IS AN INTERESTING TIME in Milwaukee as the upcoming Democratic National Convention will bring massive national and international attention to the city. Can Milwaukee leverage that publicity to help solve its problems and attract more economic development?

Hopefully yes, but Milwaukee leaders all too often fumble opportunities.

The latest example is the shocking collapse of plans for Strauss Brands to move its headquarters and meat processing operation from Franklin to the Century City Business Park.

When activists raised concerns about the operation, calling it a “slaughterhouse,” Ald. Khalif Rainey, who represents the area, was dismissive and said the project would bring critical job opportunities to the neighborhood. He was right.

But then, three days later, Rainey flipped his position to opposing the Strauss Brands plans, which would have brought at least 250 jobs to Century 52 / BizTimes Milwaukee NOVEMBER 11, 2019

City. A few days later, Strauss Brands pulled out.

What happened? Resident opposition grew surprisingly quickly. In part, according to a report

by Urban Milwaukee, because of criticism from radio talk show host Michelle Bryant, who is also a legislative aide for state Sen. Lena Taylor, who is running for mayor.

Mayor Tom Barrett blamed Taylor and her camp for killing the project. Taylor blamed Barrett for not informing the community about it.

The proposal was going through the normal approval process of committee meetings and public hearings, Barrett says. Still, his administration appeared caught off guard by the fast-rising opposition and didn’t respond fast enough with a counter-message.

Before making up their minds, aldermen should have taken a tour of the Strauss Brands plant in Franklin and asked the company how it would address concerns from neighbors. After the company backed out of the deal some aldermen expressed interest in doing that, but it was too late.

This debacle brings back memories from 2006 when Buyseasons wanted to build a facility in the Menomonee Valley. Aldermen Robert Bauman and Robert Donovan opposed it. So Buyseasons, which today has about 100 full-time employees, went to New Berlin instead.

REPORTER Alex Zank alex.zank@biztimes.com

ACCOUNT EXECUTIVE Paddy Kieckhefer paddy.kieckhefer@biztimes.com ACCOUNT EXECUTIVE Molly Lawrence molly.lawrence@biztimes.com ACCOUNT EXECUTIVE Maggie Pinnt maggie.pinnt@biztimes.com ACCOUNT EXECUTIVE Christie Ubl christie.ubl@biztimes.com

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

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

INTERN REPORTER Marla Hiller marla.hiller@biztimes.com

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

Independent & Locally Owned — Founded 1995 —

Then you have the aldermen who oppose developments due to silly NIMBY concerns. Tony Zielinski, who is also running for mayor, opposes a large apartment development proposed on Kinnickinnic Avenue in his district. The site has been a vacant lot for years.

Bauman also opposed a residential tower near the Goll Mansion, on the East Side, which has tons of towers. Some residents were upset the tower would block their views. The project was eventually approved, but hasn’t moved forward so the views are safe for now.

Considering how badly the city needs to attract jobs and expand its tax base, opposing these developments makes no sense.

Attracting jobs to low-income areas and economic development to boost the city’s tax base is not easy. Effective leadership is needed to capitalize, and not squander, these opportunities. n

ANDREW WEILAND EDITOR

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

AROUND TOWN Boys & Girls Clubs’ S’more Fun event Supporters of the Boys & Girls Clubs of Greater Milwaukee recently gathered for the organization’s S’more Fun event at Camp Whitcomb/Mason near Hartland.

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KATHY THORNTON-BIAS of Boys & Girls Clubs of Greater Milwaukee and GUY SMITH of Lilly Creek Capital Partners.

2.

ELIZABETH BRENNER of Brenner Consulting and STEVE OSTROFSKY.

3.

LOU SCHUELLER of Schueller Harrington & Associates and KRIS JENSON of Boys & Girls Clubs of Greater Milwaukee

4.

DEB SEEGER of Patina Solutions and TAMI SWEENEY of Life Productions.

Photos courtesy of Boys & Girls Clubs of Greater Milwaukee

Inspire 2019

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The Kenosha Area Business Alliance recently hosted Inspire 2019, a one-day leadership development experience, at Journey Church. The event is a fundraiser for KABA’s Education Foundation.

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BRANDON QUINN, BOB LEE and FRANK RUFFALO, all of Lee Plumbing, Heating, Cooling & Electric.

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KAREN STEIGERWALD, JENNIE TUNKIEICZ & County Executive JIM KREUSER, all of Kenosha County.

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BRIAN SCHREIBER, ADAM FOX, MICHELLE PRZYBYLSKI, ALSENA WHITLOW, MARGARET HERZFELD and DAN SCHLANGENHAFT, all of Uline.

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SHARMAIN HARRIS of Racine/Kenosha Community Action Agency, TAMARRA COLEMAN of Shalom Center, and BRANDON HARRIS of Building our Future Kenosha County.

Photos courtesy of KABA.

2019 Nonprofit Excellence Awards

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BizTimes Media recently hosted its annual Nonprofit Excellence Awards at the Italian Community Center in downtown Milwaukee.

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SCOTT HAAG of Lube-Tech & Partners LLC and HECTOR COLON of Lutheran Social Services of Wisconsin and Upper Michigan.

10. ROB BUETTNER and NICK CZAPLEWSKI, both of Beyond Vision.

11. MAUREEN ATWELL of Hebron House of Hospitality and ROBIN HIGGINS of Zoological Society of Milwaukee.

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12. TONY FRANDA of Burke Properties, LINDA HAAG of Lube-Tech & Partners LLC and MICHAEL GOSMAN of Acts Housing.

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13. TOM HITCHCOCK of Network Health, and JON KLETT and JACOB WHITE, both of Ameritas.

14. GERRY BENTON and HEATHER PFALZ, both of Waukesha State Bank.

15. Former Gov. SCOTT WALKER of Walker Group LLC and JIM KERLIN of Beyond Vision.

16. GARY RUSZKIEWICZ, JONATHAN NEWBY and JESSICA DOUGHTY, all of Keller Williams.

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17. ABIGAIL SOLIE, AMY SORENSON, GARY EBERT and DEBBIE KNEPKE, all of Revitalize Milwaukee; RICK SPAULDING of Pieper Power, MITCH SLATER of Revitalize Milwaukee and PAUL PETTED of PPG Industries.

Photos by Maredithe Meyer

biztimes.com / 53

LILA ARYAN PHOTOGRAPHY

BizConnections

5 MINUTES WITH…

PAUL MATHEWS

President and chief executive officer, Marcus Performing Arts Center PAUL MATHEWS, PRESIDENT AND CHIEF EXECUTIVE OFFICER of the Marcus Performing Arts Center, will soon retire after 21 years of leading the downtown Milwaukee venue. Mathews will stay on with the organization to help raise funds for a campus master plan that involves expanding the center’s plaza, establishing a flexible great lawn for events and completing a host of interior improvements. In a recent interview with BizTimes Milwaukee associate editor Lauren Anderson, Mathews discussed his upcoming retirement and the future of the Marcus Center.

UPDATE ON THE CAMPUS MASTER PLAN “We’re still in the quiet phase of fundraising, which has been largely my responsibility, with our development team. Our first priority continues to be the exterior of the building, which considerably opens up the exterior and the grounds to the south of the building, and focusing on a new membership club that we want to add to the building, which will improve our ability to generate additional earned income. We’re homing in on enough dollars, enough pledges, to launch that project. I expect that to be happening within the near future.”

WHY RETIRE NOW? “It’s both personal and professional. I’m 68 and my wife retired about two years ago and this is now my 21st year, so I’ve enjoyed a pretty good run with the Marcus Center … As grandparents we have a short window to really be able to spend time with (our grandchildren). So it just felt like 54 / BizTimes Milwaukee NOVEMBER 11, 2019

the right time … I just felt it was time to pass the baton onto someone new and I’m really excited about the new leadership coming in and leaving this center on really solid ground.”

THE FUTURE OF THE DOWNTOWN ARTS SCENE “I’m very excited about what has happened under the Marcus Corporation’s leadership to make Saint Kate an arts hotel … I think it puts the Marcus Center in a really key spot downtown for future development and that’s why it’s really important that we complete the changes we want to complete with the campus master plan. Once Fiserv Forum opened, that generated a whole new interest in downtown development in general …

We still look forward to the redevelopment of our parking structure site. I think it lends itself to mixed-use development of some sort and that could include more arts facilities.”

THE IMPACT OF “HAMILTON” “Nothing but positive … In the 2018-’19 season, in order to become a subscriber for “Hamilton”, we required people to, if they wanted the best choice, buy a subscription to last year’s season. That drove up our subscription sales by over 40%. That is a huge increase for us … It’s not only “Hamilton” that’s been significant for us. We’ve had “Dear Evan Hansen”.

We have the “Lion King” coming up for the first time in the Marcus Center … It’s important for us that we’re attracting programming that is going to attract younger audiences.” n

BIZTImeS MKE

P O D C A S T

The BizTimes MKE podcast is designed to keep you informed and provide ideas and strategies to help improve your business. Each episode features thought-provoking insights and best practices from business and community leaders.

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