BizTimes Milwaukee | November 13, 2017 by BizTimes Media

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NOV 13 - 26, 2017 Â» $3.25 We Make It Be er

G N I T U L A S R U O ERANS VET WHO E S E O G T H S ACR IFI C N I R O N O T I M AT E H D AN E UL H T E MAD

plus KOREAN ENTREPRENEURS WRAP UP ‘WHIRLWIND’ TRIP TO MILWAUKEE 15 DOWNTOWN OFFICE MARKET GETTING SUPPLY SURGE 18 UPGRADES CONSIDERED FOR BISHOP’S WOODS 30

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NOV 13 - 26, 2017 » $3.25

THEMomentum HOT CORRIDOR builds along I-94 between Milwaukee and Illinois

PRESENTS:

December 7, 2017 • 7:00 - 9:30AM • Potawatomi Hotel & Casino Nine Top Business Leaders Share 10 of Their Best Ideas Nine leaders from Southeastern Wisconsin’s most successful companies will share 10 of their secrets to success, vision, company & personal philosophies and initiatives – both big and small – that can be applied to any leader or business. This will be a fast-paced discussion followed by a Q&A, where the leaders will present their top ideas. Make plans to attend as you prepare to be a better leader in 2018. To register, go to biztimes.com/90ideas

Presenters: • Dr. Eve Hall, President & CEO – The Milwaukee Urban League (1) • Jerry Jendusa, Co-Founder & Partner – STUCK LLC (2) • Vincent Lyles, President & CEO – Boys & Girls Clubs of Greater Milwaukee (3) • Marsha Mather, Owner – Laacke & Joys (4) • Ugo Nwagbaraocha, President – Diamond Discs International (5) • Marie O’Brien, President & CEO – EnterForce (6) • Rick Schlesinger, Executive Vice President – Milwaukee Brewers (7) • Vince Shiely, Partner – Lubar & Co. (8)

LOCALLY OWNED FOR 22 YEARS

» NOV 13 - 26, 2017

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BizTimes Milwaukee (ISSN 1095-936X & USPS # 017813) Volume 23, Number 17, November 13 - 26, 2017. BizTimes Milwaukee is published bi-weekly, except two consecutive weeks in December (the second and third weeks of December) by BizTimes Media LLC at 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120, USA. Basic annual subscription rate is $42. Single copy price is $3.25. Back issues are $5 each. Periodicals postage paid at Milwaukee, WI and additional mailing offices. POSTMASTER: Send all UAA to CFS. NON-POSTAL AND MILITARY FACILITIES: Send address corrections to BizTimes Milwaukee, 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120. Entire contents copyright 2017 by BizTimes Media LLC. All rights reserved.

Contents

6 Leading Edge 6 NOW BY THE NUMBERS 7 ON THE JOB WITH… 8 MY FAVORITE TECH 9 QUOTE UNQUOTE 10 THE GOOD LIFE 11 BIZ TRAVELER 12 BIZ POLL WHO’S ON THE BOARD 13 THE FRANCHISEE 14 BIZ COMPASS

15 BizNews 15 KOREAN ENTREPRENEURS VISIT MILWAUKEE 17 MY TAKE

18 Real Estate 4 4 Strategies

COVER STORY

44 RETAIL Cary Silverstein 45 TIP SHEET

The hot corridor

47 BizConnections

Momentum builds along I-94 between Milwaukee and Illinois

47 PAY IT FORWARD 48 PERSONNEL FILE

Special Report

49 AROUND TOWN 50 GLANCE AT YESTERYEAR COMMENTARY

20 Commercial real estate and development In addition to the cover story, coverage includes a report about plans to upgrade the Bishop’s Woods office park in Brookfield and a report on the annual survey of members of the Commercial Association of Realtors Wisconsin (CARW).

51 5 MINUTES WITH…

C R E AT E D TO B E

W I SCO N S I N ’S BA N K F O R B U S I N E SS™ As a company built for this area, we see things differently. We don’t worry about what other companies are doing in other places, because we know firsthand what our area and businesses need to succeed. This is because we’re a proud local business too. It makes all the difference when a bank understands your community and supports your business goals. That’s why we’re honored to call ourselves Wisconsin’s Bank.

4 1 4 - 2 7 3 - 3 5 0 7 | w w w. t o w n b a n k . u s

biztimes.com / 5

Leading Edge

BIZTIMES MEDIA – Like us

MSOE plans $34 million computational science hall By Lauren Anderson, staff writer Milwaukee School of Engineering announced plans to build a $34 million computational science facility, funded by a donation from MSOE regent Dwight Diercks and his wife Dian. The new four-story, 64,000-square-foot facility will be built near the corner of North Milwaukee and East State streets in the center of MSOE’s campus. It will feature a state-of-the-art datacenter, which will include a graph-

ics processing unit-accelerated supercomputer that will be used by students and local industries, university officials said. The new computational science facility will position MSOE as a national leader in artificial intelligence education, deep learning, cyber security, robotics and cloud computing, university officials said. Diercks, who graduated from MSOE in 1990 with a bachelor’s degree in computer science

BY THE NUMBERS The Kroger Co. is planning to spend

$19.2 MILLION to reconfigure and eliminate duplication at the Roundy’s Commissary in Kenosha. 6 / BizTimes Milwaukee NOVEMBER 13, 2017

and engineering, is senior vice president at NVIDIA, a technology company based in California. He also holds an honorary doctor of engineering degree from MSOE and has served on the board of regents since 2005. The gift is the largest donation from an alumnus in the university’s 114-year history. “MSOE changed the course of my life and my career, and has a special place in my heart,” Diercks said. “Just as the modern computer transformed technology 30 years ago, AI will transform technology as we know it for the next generation and across all industries. I wanted to give MSOE a gift that would position this incredible university as a major application-focused computer science and artificial intelligence center for the Midwest and U.S. for years to come.” Diercks said AI is transforming industries with applications including material science, photo identification, ride-sharing logistics, self-driving cars, manufacturing logistics, medical imaging, and many others. John Walz, president of MSOE, said the facility will be used by students across many disciplines. “This facility will not only allow MSOE to educate the next generation of leaders and technical professionals, whether in engineering, computer science, business or nursing, it will also allow us to

provide leadership, expertise and extraordinary computing power to local industries in the increasingly important field of artificial intelligence,” Walz said. The facility will feature an area dedicated to corporate partnerships, which will include nine offices and workspaces for local corporations to collaborate with the university. Other features of the building will include eight classrooms, 13 labs, 28 offices for faculty and staff, a 250-seat auditorium and 18,000 square feet of underground parking. Ryan Phillipsen, a freshman at MSOE studying computer science, said the new computational science hall will broaden course options for students like him. “I’m excited for all the new minors and electives for the computer engineering department and computational work that we need to do,” he said. “I’m really excited about it.” Jonathan Cobb, a freshman studying biomolecular engineering, said the technology in the new facility will be groundbreaking. “If you don’t know what it is, start learning,” he said. “This is definitely where the future is heading.” Construction is expected to get underway next year, with completion expected in mid-tolate 2020. Uihlein/Wilson – Ramlow/Stein Architects is the project developer. n

Stay-Lite lighting technicians

DAN PROFIO PHOTOGRAPHY

ON THE JOB WITH…

By Arthur Thomas, staff writer It is the kind of thing you wouldn’t notice until there was a problem, but for Pewaukee-based Stay-Lite Lighting Inc., keeping the lights on at commercial, industrial and retail operations is a growing business. A combination of strategic acquisitions and organic growth have expanded the company’s service area to 14 states. The heart of the business is performing planned maintenance on the entire lighting system, from parking lot lights and exterior signage to interior lights and all of the related electrical compo-

nents. Even though companies can schedule service, the reality is things will come up. “There will still be calls,” said Kirk Tuson, Stay-Lite president. That’s where Stay-Lite’s Pewaukee call center staff comes in. Every employee receives industry certifications, allowing them to ensure the right technician with the right materials and equipment goes out to the job site. “These technicians are the face of the company,” Tuson said, stressing the importance of intense, upfront training for field staff. n

1 Stay-Lite’s Pewaukee call center handles work for all 14 states the company serves.

2 Stay-Lite keeps its trucks indoors in the winter to make it easier to get out to jobs quickly.

3 Dean Robke, Stay-Lite lead exterior technician and safety coordinator, prepares to service a parking lot light.

4 Robke climbs into the bucket of one of 35 trucks that Stay-Lite has across its 14-state service area.

Stay-Lite trucks service lights as high as 47 feet in the air.

Robke cleans the enclosure of a parking lot light near Watertown and North Barker roads in Brookfield. biztimes.com / 7

Leading Edge MY FAVORITE TECH

Here to help local businesses put tomorrow’s plan in motion today. citizenbank.com 262-363-6500 Follow us on social media: Citizens Bank - WI Member FDIC Equal Housing Lender

MY FAVORITE TECH TIM CIGELSKE

Director of social media, Marquette University

Your Your Unique Unique Business Business Needs, Needs, Our Innovative Solutions Our Innovative Solutions Business Business || Labor Labor & & Employment Employment || Litigation Litigation || Real Real Estate Estate || Succession Succession Planning Planning Business | Labor & Employment | Litigation | Real Estate | Succession Planning

At At the the intersection intersection of of your your legal legal hurdles hurdles and and your your objectives objectives is is a a law law firm firm At the intersection of yourunderstanding legal hurdles andyour your objectives is a law firmin rooted rooted in in Wisconsin Wisconsin and and understanding of of your needs. needs. With With experience experience in rooted in Wisconsin and understanding of your needs. With experience in every every Wisconsin Wisconsin industry industry cluster cluster and and the the span span of of corporate corporate law law services, services, every Wisconsin industry cluster and theto span ofyou corporate law services, Davis & Kuelthau, s.c. is well-positioned help succeed. We bring Davis & Kuelthau, s.c. is well-positioned to help you succeed. We bring Davis & Kuelthau, s.c. is well-positioned to help youoptions, succeed. Weadvantage bring practical, practical, real-world real-world experience experience to to help help evaluate evaluate all all options, take take advantage practical, real-world experience to help evaluate alland options, takepitfalls. advantage of planning opportunities, and overcome the legal business of planning opportunities, and overcome the legal and business pitfalls. of planning opportunities, and overcome the legal and business pitfalls.

As Marquette University’s director of social media, it is Tim Cigelske’s job to stay on the cutting edge of the changing world of technology. Here are a few of his favorite tools on and off the job.

SNAPCHAT “I am 36, so I’m not really in the target demographic, I think most users are under 24, but I need to understand Snapchat for my job. I also think it is the future of social media. Not necessarily Snapchat itself, but the idea of messages being a blip in time without creating a timeline of everything we do. I think social media will be more of a throwback to everyday conversations rather than creating a transcript. Watching Snapchat and Instagram will help understand the future of technology.”

CALM “It’s a meditation app to help with daily mindfulness. I have been on a streak. Today is 422 consecutive days of using it. The phone does not only have to be a source of distraction and constant use. This app gives me some time to quiet the mind.”

STREAKS “This app lets you set reminders to do something every day and then if you do it, you push the button and it automatically marks it down so you can see what your longest streak is. I set reminders for exercising, reading, meditation and a couple others. It gives me a mental checklist and I know that I have done these simple things for my health or my family.”

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8 / BizTimes Milwaukee NOVEMBER 13, 2017

“I use this for running and it’s really nice because you can change the background photo to a favorite photo. I also use the Apple Watch rings, which set goals for movement, standing and calories. It shows real-time progress and I can do challenges with my wife and former interns.” n

“ QUOTE

unQUOTE

LO U I S WO O

”

S PEC I A L A SS IS TA N T TO FOXCO N N C H A I R M A N T ER RY GO U Foxconn Technology Group executive Louis Woo was interviewed by Milwaukee 7 co-chair Gale Klappa at the recent Metropolitan Milwaukee Association of Commerce all-member meeting. Woo said Foxconn’s plans for its massive LCD panel operation in Mount Pleasant go beyond just producing television screens and the company’s work in America has to be different than what it does in Asia. n

“You have that hard-working ethic and also the essence of manufacturing, so if we don’t come to Wisconsin, where else would we go?”

“It’s people, it’s you guys who have drawn us here …. All these people, they are making us so welcome here in Wisconsin.”

“I walked down one of the streets in Marquette University, one of the policemen came up to me, I’m not very good friend of policemen normally, especially in America, but he just wanted to shake my hand and say welcome to Wisconsin. That’s how heartwarming it is, it just makes you feel at home.”

“I think our challenge in front of us is to create an ecosystem that will take advantage of the hardware we will build …. We will be looking at a lot of domain experts to build vertical solutions on top of this hardware platform.”

“Our decision to be in America is to do something completely different than what we are doing so successfully in Asia. We are all businessmen; if we are doing exactly the same thing, there is basically no reason why we should be in America.”

“Just to build a most advanced display manufacturing facility or campus … that’s only half of the battle.”

biztimes.com / 9

Leading Edge

@BIZTIMESMEDIA – Real-time news

Tillisch takes up piano as an adult By Lauren Anderson, staff writer

eanna Tillisch wanted to play an instrument from a young age. But, raised in a family that moved often, she never had the opportunity.

the

Good LIFE

10 / BizTimes Milwaukee NOVEMBER 13, 2017

Tillisch, chief executive officer of the United Performing Arts Fund, later had three daughters, two of whom went on to study the piano. “I wanted them to learn an instrument because I had not been given that opportunity and I knew the benefits of it,” she said. Tillisch figured she would pick up an instrument at some point in retirement, but when her father passed away after a brief illness two years ago, she gained a new sense of urgency. “Why wait?” she said. “Do it now, because you don’t know what the future holds. You never want to look back and say, ‘I wish I would have done that.’” At age 54, Tillisch had her first piano lesson in January. Now, nine months in,

Tillisch sticks to a daily regimen of practicing on her keyboard at home and sets weekly goals for herself. Learning to read music for the first time while also learning to play the instrument has proved challenging. But Tillisch is determined. After a busy day at the office, she finds practicing to be relaxing. “It’s a reprieve,” she said. “And really, believe it or not, I look forward to practicing.” As someone whose job involves promoting Milwaukee’s art and music scene, Tillisch has found learning an instrument gives her new insight into that role. “My appreciation has increased ten-fold because I recognize how much you have to work,” Tillisch said. “...The discipline it requires to be a musician is so impressive and I don’t know if people truly recognize what it takes to play at the level they do, but I have a greater appreciation for it now.” n

B I Z T R AV E L E R : V I E N NA CORY WANEK Economics instructor, Waukesha County Technical College; partner, Senior Diamond Referrals

Cory Wanek regularly teaches economics at WCTC, but for more than a decade he has traveled twice a year to Vienna to teach economics there, as well.

T R A N S P O R TAT I O N :

JULIA KUZNETSOVA / SHUTTERSTOCK.COM

“Take the CAT (City Airport Train) to the city center. It takes only 16 minutes, leaves every 30 minutes and costs about $20. A taxi usually costs about $60 and an Uber ride is about $36. Once there, taking a taxi or Uber is quite convenient and reasonably priced. The public transportation, which includes buses, trams, subway and the local trains, are clean and reliable. I suggest getting a weekly pass, which costs about $20, which is good on all the public transport options.”

E XC U R S I O N S: “Vienna is well-known for their ‘coffee house culture.’ You can spend a whole morning or afternoon in one of their coffee houses, or cafes, just reading or talking with a friend without feeling rushed to pay or leave. They will not give you your bill until you ask for it. Doing so would be considered rude. This is true for all restaurants and cafes there.”

ACCO M M O DAT I O N S A N D F O O D : Most hotels on the ‘ring’ around the city center and those in the city center are very good places to stay. Vienna is a very multicultural city, but stay with the typical Austrian restaurants and foods. Plachutta is a must. Even though it’s a higher end restaurant, it’s worth every penny, which you spend there, for example, on the famous ‘Tafelspitz.’”

T R AV E L T I P : “Most will speak at least some English in Vienna, but it is good to know a few phrases in German. Allow time to see the city with those you are with for business. If they are from Vienna, they will be more than happy to show you some places. It is a good time to talk and develop the business relationship as you view this wonderful city! Vienna is a very safe and clean city.” biztimes.com / 11

Leading Edge BIZ POLL

BIZTIMES MEDIA – Connect

Who’s on the Board?

A recent survey of BizTimes.com readers.

What part of southeastern Wisconsin will attract the most development during the next 20 years?

I-94 corridor between Milwaukee and Illinois:

Simon

62% Downtown Milwaukee: 29% Waukesha County: 18% Other: 1%

THE BON-TON STORES INC.

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

• Debra Simon, chairwoman, former chief operating officer of SF & Co. • Michael Gleim, former COO of The Bon-Ton Stores • Paul Rigby, former managing director of JPMorgan Chase

• Jeffrey Sherman, former president of Echo Design Group • Philmer (Phil) Rohrbaugh, COO of Fulton Financial Corp. • William Tracy, president and chief executive officer of The Bon-Ton Stores

Now through December 14, every time you play this special game, you are helping to raise funds for 31 children’s charities. To learn more, visit paysbig.com/heart.

12 / BizTimes Milwaukee NOVEMBER 13, 2017

Tracy

the

FRAN C H I S E E

Rosanna and Kevin Casper with their three kids.

ROSANNA AND KEVIN CASPER THE FRANCHISE: Troy, Michigan-based Goldfish Swim School offers swim lessons and programming for children from four months to 12 years old. The business operates more than 65 franchise locations in 17 states and educates more than 50,000 swimmers per week. “From a business side, I loved watching my family bring Goldfish to their communities and we wanted to do the same for Milwaukee,” Rosanna Casper said.

DECEMBER 2016 Rosanna Casper and husband Kevin Casper, a Milwaukee native and platform specialist at San Francisco-based Salesforce, were residing in California with their three kids when they decided to open Milwaukee’s first Goldfish Swim School location. They had gotten encouragement from family members who operate Goldfish franchises in Illinois, New Jersey and Philadelphia.

GOLDFISH SWIM SCHOOL

MARCH The Caspers signed a lease for the facility at 12565 W. Feerick St. in Brookfield, near North 124th Street and West Capitol Drive.

Goldfish facilities feature private changing rooms for families.

JUNE The Caspers moved their family from California to Milwaukee, just in time for the four-month renovation project on the existing building. When complete, the tropical-themed facility will house a custom-built, 90-degree pool, a snack bar and swim equipment shop, private family changing areas and a viewing area for parents. NOVEMBER The franchise will open for business with its first day of swim lessons on Nov. 28. THE FRANCHISEE FEE The fee to open one Goldfish location is $50,000. An owner can also purchase the franchise rights to an entire area for an additional $20,000.

GOLDFISH SWIM SCHOOL

Goldfish programming includes swim lessons, a swim team and family swim.

“Finding property is the most challenging piece,” Casper said. “There has to be parking, it has to be a place where moms will want to take their kids, the building needs to be suitable.”

“We are excited to employ 15 to 30 or 40 people, depending on how much we grow,” Casper said. “I am excited to train the staff, meet the kids and families, and be a part of the Brookfield community – it has already been very welcoming to us.”

biztimes.com / 13

Leading Edge

BIZTIMES MEDIA – Like us

BIZ COMPASS

How do you identify

AND ADDRESS YOUR OWN

WEAKNESSES?

NOLTE 1 CHRISTOPHER

president, Marcus Investments

“Self-awareness comes from failure or high expectations from yourself or others. Feedback can come from anywhere; just make sure to listen and care. Then, set a goal for improvement and share it with your colleagues. Nobody likes to fail publicly.”

2 MARY PELLETTIERI

co-founder and president, La Pavia Beverages Inc.

“When running a small business, there isn’t the classic feedback loop that larger companies provide. If and when I run into a brick wall, I delegate and learn from my employees on how they address the situation. The key is to recognize when I run into a wall and then seek a different way around it.”

3 LINDSEY ST. ARNOLD BELL

associate director, Near West Side Partners Inc.

“I often find myself lost in the day-to-day necessities of meetings, emails and paperwork. When I feel like I am starting to lose sight of the big picture, I like to reconnect by walking through the Near West Side neighborhoods and meeting with the residents, business owners and collaborators that inspire me.”

KNAPINSKI 4 DICK

director of communications, Experimental Aircraft Association

“Start by knowing your strengths, because they’re often your biggest weaknesses. Be open to feedback and new ideas from anywhere. Then start by doing one thing, no matter how small, to conquer that weakness. Then add another thing, and keep building.”

5 JAMES HYLAND

vice president of communications and public affairs, Roundy’s Supermarkets Inc.

5 14 / BizTimes Milwaukee NOVEMBER 13, 2017

“Having been in the corporate world for nearly 40 years, I think I know myself well enough to know at times, I try to be a perfectionist. I think there is some value in it, as it indicates a desire to be the best you can be, but there is also the risk of getting too wrapped up in details, which can obscure the result you are after. How do I address the situation? When I feel the guilt of perfectionism, I get up, walk away, take a break and come back to the task at hand with a fresh perspective and different approach. It usually works.” n

BizNews Jae Hyung Kim, Jin ah Hwang, David Choi, Gilje Park and Andrea Kwon pose for a photograph in front of the statue of General Douglas MacArthur near the War Memorial on Lake Michigan.

FEATURE STORY

South Korean entrepreneurs wrap up ‘whirlwind’ trip to Milwaukee Silicon Pastures members evaluate potential investments By Molly Dill, staff writer JIN AH HWANG’S business card is unique. It’s a thin, clear film with a rectangle that has been turned an opaque white, superimposed with multi-colored text. The card is a demonstration of the products made by her company, Chungju, South Korea-based Livicon Co. Ltd. Its 0.39 mm to 0.12 mm thick film can attach to glass or plastic and has a range of potential uses. Hwang described those possibilities this month at The Milwaukee Club upon meeting Robert Tatterson, an advisor and investor in early stage companies. Having retired a few months ago from his position as chief technology officer at Sealed Air Corp. in Racine, Tatterson has been evaluating new technology companies for investment and mentorship opportunities. “It’s been interesting to meet businesses in all different stages of maturity,” he said. “I have a background in technology and I’m really passionate about new product development and innovation.”

Livicon films are installed at the tallest building in South Korea, the 123-floor Lotte World Tower, on a glass skywalk floor. Visitors walk out onto the opaque skywalk, and suddenly it turns clear, revealing Seoul below. The films are also installed in some offices’ glass-walled conference rooms to offer privacy during meetings, and on companies’ storefronts to either allow customers to see in during the day, or display a large advertisement on the opaque screen off-hours. The films could be used as blinds in a home or to block the sun on car windows, she said. “We just contracted an apartment where the living room glass is our film” in a 1,000-unit development, Hwang said. Hwang told Tatterson she was seeking a U.S. distributor, as well as an office and investors. He recommended she speak with a friend who works at a display manufacturer in California. Both technology-minded, they discussed the haze and transparency on Livicon’s films and its supply chain solution.

Hwang is a member of a group of 12 South Korean entrepreneurs who mingled with Milwaukee angel investors like Tatterson at The Milwaukee Club downtown, hoping to make connections that would lead to a partnership or investment. Their visit was arranged by Teresa Esser, managing director of the Milwaukee-based Silicon Pastures Angel Investment Network. The entrepreneurs are taking part in an accelerator program at the Midwest Energy Research Consortium and participating in a whirlwind of networking opportunities. Gov. Scott Walker met with them, ahead of their visit, on his recent trade mission to Japan and South Korea. Esser formed a partnership on behalf of MWERC with South Korean university Daegu Gyoungbok Institute of Science and Technology and Madison-based Greenpoint Asset Management to create the four-week business accelerator exchange. At The Milwaukee Club event, about 25 investors from Silicon Pastures shared a meal and heard

presentations from each company, then asked them to leave the room as they discussed whether to move forward with due diligence and a potential investment. But it will still take about three months of due diligence to determine whether investments will be made in the end. “It’s too early to tell. Obviously angels (investors) need to perform the due diligence and we’ve been unable to do anything because of the whirlwind (of Milwaukee activities for the entrepreneurs),” Esser said. “There was a significant amount of interest expressed and I can’t say more than that until we do our process. “As a selfish investor, I’m hoping to get companies that I can invest in myself. As a member of a group, I’m hoping to share my find, what I consider my treasure, with my fellow investors. I think that we’ve got something very unique and special with this program.” Jae Hyung Kim, for example, presented his chatbot development company, Seoul, South Korea-based Fount AI. The natural language processing technology is being targeted to financial institutions so they can provide answers to customers 24 hours a day online. “Basically, a chatbot is a Q&A machine,” Kim said. “These simple questions, it’s really just playing on your smartphone gadget and it will give you all the answers. We give finance all these questions to be answered 24 hours every single day without people always having to be there for you.” A spinoff of a larger company formed in February, Fount AI has been growing quickly and expects to have 25 employees by the end of the year. As of July, it was already breaking even and expects more than $1 million in revenue this year. The entrepreneurs arrived Oct. 14 and spent time touring open houses and looking at school districts in the area, for those interested in moving to the area as they expand their business relationbiztimes.com / 15

ships here. At the Paragon Development Systems IT conference, the entrepreneurs networked with about 500 IT professionals at Potawatomi Hotel & Casino. “It felt like it was a really good opportunity for them to be exposed to an aspect of Milwaukee and the IT community that they haven’t had a chance to see yet,” said Lance Wand, director of vendor relations at PDS. “We were thrilled to have them. As I reviewed a lot of the organizations from where they were coming from and what their business was actually about, there was definitely a lot of synergies.” The other companies represented on the trip were: • Moim Soft. Manufactures a hair and skin analysis device and linked smartphone app that cosmetics sales clerks can use to advise consumers on products. • Endovision. Creates medical devices such as specialized

plasma probes and spinal scopes used by spine and orthopaedic surgeons, plastic surgeons, and urologists and gynecologists. • Jinsung Industrial. Manufactures cable ties that construction companies use to hold air ventilation ducts in place. • Crespirit. Developed customizable Internet of Things module to monitor factory equipment and fleets by attaching sensors. • Haebora. Makes noise-canceling earsets under the name Ripple Buds. • Lab by Lab. Created software platform to encourage collaboration between universities and research labs. • Jinjoo Soft. Developed web application and web-based logbook for hotels. • GIB Korea. Manufactures thermal camera and analysis algorithm to detect slag in the steel manufacturing

process. The system is used by POSCO. Most of the entrepreneurs stayed for two weeks, though some arranged a shorter or longer stay in Milwaukee. Two of the firms, GIB Korea and Moim Soft, are seriously considering opening branches of their companies in Milwaukee, and looked at potential office space, Esser said. “GIB Korea is very serious. I think that there’s going to be activity here in the (M-WERC Energy Innovation Center) building related to GIB Korea,” Esser said. They also took classes and met fellow entrepreneurs at the TIC, and networked with M-WERC members at the organization’s annual meeting. The entrepreneurs met with attorneys at Godfrey & Kahn, and learned about immigration and business laws from Husch Blackwell and the Marquette Volunteer Legal Clinics. “There was desire on the part

of a couple of the entrepreneurs to set up a business here, so we learned blocking and tackling,” Esser said. “It’s important to understand what you’re doing and get legal help.” The entrepreneurs also had some fun and got a feel for Milwaukee’s culture, viewing the Ghost Train in Shorewood, visiting with a diverse group of residents at the On the Table event at Milwaukee City Hall, posing for a photo with the statue of Gen. Douglas MacArthur on the lakefront, visiting Discovery World and eating at the Milwaukee Public Market. Esser plans to host the Korean accelerator program at least once a year. She hopes they got a good impression and it will lead to business partnerships. “I am selfishly ambitious that they will build their businesses in Milwaukee, that they will decide to move here and set up businesses here. It’s the kind of thing that would evolve over months,” she said. n

In partnership with our Founding Sponsor

For Wisconsin in 2018 and Beyond

Friday, December 15, 2017 Join a panel of industry-leading experts moderated by Mike Flynn, President of the Milwaukee market of First Business Bank and Governor Scott Walker (invited) for a program on the key industries for Wisconsin in 2018 and beyond.

KEITH EVERSON President Sussex IM

DR. THOMAS KACZMAREK

Director, Center for Cyber Security Awareness and Cyber Defense Marquette University

Founding Sponsor

MATT NEUMANN Owner SunVest Solar, Inc.

KELLY RENZ

President & CEO The Novo Group

Supporting Sponsors

Visit www.waukesha.org or call 262-542-4249 to register.

16 / BizTimes Milwaukee NOVEMBER 13, 2017

Country Springs Hotel & Conference Center 2810 Golf Rd, Pewaukee 7:30 - 9:30 a.m.

BizNews &

MY TA K E

Does Milwaukee County need to increase its wheel tax?

Milwaukee County Executive Chris Abele wants to double the county’s annual “wheel tax” to $60. Otherwise, the county will need to make significant cuts, Abele said. County board chairman Theodore Lipscomb opposes the wheel tax increase and says county spending can be reduced without impacting critical services. n

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

Thank you!

to our sponsors and attendees! Kip Wright

Senior Vice President of Manpower, North America

BizTimes Media and Milwaukee 7www.manufacturingmatters.org presented the Next Generation Manufacturing Summit on Oct. 4. The event featured a panel of manufacturing executives discussing how their organizations strive to adapt proactively to looming changes in the industry. Attendees also participated in roundtable discussions and had access to the Wisconsin Manufacturing and Technology Show at State Fair Park. The event was sponsored by platinum sponsor 3M and gold sponsors BMO Harris Bank, Davis & Kuelthau, GSC, Schenck and the Wisconsin Manufacturing Extension Partnership.

CHRIS ABELE THEODORE LIPSCOMB County executive

County board chairman

YES NO ABELE’S BUDGET PROPOSAL “I introduced a budget that maintains transit, puts new resources into combatting the opioid epidemic and ending homelessness, improves quality of life and protects vital services for some of our most vulnerable residents.”

“I will probably support about 97 percent of the budget proposed by Abele. Yet, there are a few important changes that will be necessary. The comptroller identified a $1.3 million shortfall in the Abele budget, which will need to be addressed.”

WHEEL TA X “I proposed a balanced budget that included $30.8 million in new revenue and $30.4 million in expense reductions. That new revenue included the difficult, but necessary, decision to propose a $60 vehicle registration fee. The county cannot maintain our current levels of service without new revenue.”

“The (county) executive’s proposal to increase the wheel tax to $60 per vehicle was rejected by 72 percent of voters earlier this year. While I don’t disagree with the general thesis that we need more revenue, I’m not going to dismiss such a strong message from my constituents. We need a more balanced approach.”

BUDGET CUTS “Lipscomb introduced his budget proposal that cuts $15 million in services. Public safety will be hit the hardest. The sheriff and house of correction will suffer nearly $1 million in cuts. Social services administered through the Department on Aging and Department of Health and Human Services will be slashed by nearly $1 million. Parks and the zoo will be cut by nearly $500,000.”

“You may have read about a list of extreme cuts if the wheel tax increase doesn’t pass. This was a scare tactic that used a list of cuts provided directly by the Abele administration and does not reflect any of my ideas. I have requested departments identify other new revenue ideas and areas of potential savings of 2 percent and 5 percent that least impact critical services.”

SHAPING THE FUTURE Manufacturing Matters! 2017 will take place at the Hyatt Regency in Milwaukee on February 23rd, 2017. The theme of this year’s conference is Shaping the Future, and the conference features 18 breakout session in six tracks including: Growth • OperationalP Excellence L A T I N U M •SHuman P O N S Capital OR Management C-Suite Essentials • Technology & innovation Wisconsin Manufacturing As workforce challenges and trends are on the minds of most manufacturers, we are pleased to announce this year’s keynote presenter is Kip Wright, Senior Vice President of Manpower, North GOLD SPONSORS America. Kip will discuss key workforce trends and what manufacturers can do Kip Wright to secure and develop their current and Senior Vice President of future workforces. Manpower, North America

biztimes.com / 17

Real Estate

A rendering of the Hammes office building that will be complete in 2018 in the Park East Corridor.

Downtown office market getting supply surge

The downtown Milwaukee office market has not experienced a building boom like the one it is currently undergoing in 30 years. From 1985 to 1991, the city saw the 411 East Wisconsin Center, Milwaukee Center, 100 East Wisconsin and 1000 North Water towers

open, drastically changing Milwaukee’s skyline and its potential for downtown office tenants. Today, two new office buildings are currently under construction in the central business district – Hammes Co.’s 94,000-square-foot office building at the northeast corner of East Knapp and North Water streets in the Park East Corridor and Irgens’ 25-story BMO Tower at Market Square office tower project at 778 N. Water St. Once both are complete in 2018 and 2019, respectively, the projects will join Irgens’ 18-story 833 East building, which opened last year near the lakefront, and Wangard Partners’ redevelopment of the former Laacke & Joys building on North Water Street, which was completed earlier this year. These new projects come at a time when the Milwaukee-area office market saw an uptick in total vacancy in the third quarter and for the first time in two years posted negative absorption (of 77,961 square feet), leaving some to wonder if the downtown market is being overbuilt. Andrew Jensen, principal with The Boerke Co., said unless a large

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ADDRESS: 2040 W. Wisconsin Ave. BUYER: Marquette University, Harrison Street Real Estate Capital and Capstone On-Campus Management SELLER: Campus Advantage CLOSING DATE: Oct. 19 SALES PRICE: $42.3 million 18 / BizTimes Milwaukee NOVEMBER 13, 2017

Marquette University and two out-of-state partners purchased The Marq, a student apartment building located near the MU campus, for $42.3 million, with plans to offer upper-level, graduate and professional student housing beginning in fall 2018. The university is partnering with Chicago-based Harrison Street Real Estate Capital and Alabama-based Capstone On-Campus Management on the real estate deal. Harrison Street plans to spend $1.5 million over the next year to renovate the facility, located at 2040 W. Wisconsin Ave. The Marq has 231 units and 612 beds, nearly doubling the 700 beds Marquette currently makes available to upper-level students. Michael Lovell, Marquette president, said the university made it a priority in its strategic plan to acquire additional housing for juniors, seniors and graduate students. “The Marq is a big win for our students and reflects our broader push to significantly increase graduate school and international admissions, as well as undergraduate admissions, over the next decade,” Lovell said.

office portion of the project to the marketing company. But so far, Wangard has not announced another office tenant for the building. When Irgens’ 833 East building, an 18-story tower near the lakefront, opened in March 2016, it was 64 percent occupied. Today, it still has two-and-a-half floors vacant, which brokers estimate to be about 75,000 square feet. Some brokers are optimistic the market will absorb the new office spaces downtown. Lyle Landowski, a partner with Colliers International, which markets the 833 East building, said by the time Irgens completes the BMO tower, the 833 building will be fully leased. “I have meticulously followed the central business district since 2006 and the vacancy rate for the Class A office market has never exceeded 10 percent, even during the Great Recession,” Landowski said, adding that two-thirds of the clients he is seeing are either expanding or new to the market entirely. Landowski said real estate used to be viewed as an expense by tenants, but now those employers see their office space as a tool to help attract and retain employees and are often relocating or renovating their space. “There is a blip on the radar this year (with the third quarter market data),” Landowski said. “But we have been tracking it and we predict a robust fourth quarter. For the next 12 months, we’re predicting 1 million square feet of absorption.” n

WHO REALLY OWNS IT?

tenant comes into the market, vacancy will continue to rise, which could mean landlords will have to lower their rates to offset the lack of demand to fill the existing and new spaces. “Most landlords are trying to secure their tenants with leases coming up over the next two years, so they are not competing with the new space on the market,” Jensen said. Jensen pointed to a late 1980s development boom period when several new office towers opened and it took years to fill them. “That is the concern, although you never know what will happen in a market,” he said. “When 875 (E. Wisconsin Ave.) was built (in 2003), it was only 50 percent leased and everyone worried. Then Roundy’s came out of nowhere and moved 500 people from Pewaukee to downtown.” When Brookfield-based Hammes relocates its corporate headquarters to its new downtown building, it will occupy two floors of the five-story structure. The company has not yet announced any other future tenants. BMO Harris will lease 124,000 square feet of Irgens’ 379,400-square-foot BMO Tower at Market Square, occupying the building’s first and 11th through 16th floors. In addition, Michael Best & Friedrich LLP will lease 60,000 square feet in the building. Irgens is currently trying to lease the remaining space in the building. When Michael Best & Friedrich moves to the new building, it will leave an approximate 60,000-square-foot vacancy at 100 East. Northwestern Mutual Life Insurance Co. opened its new downtown office tower in August, also opening up 55,000 square feet of space at the 411 building, where it had been leasing two floors since September 2015. Wangard Partners secured Bader Rutter & Associates as its anchor tenant for the Laacke & Joys site redevelopment at 1433 N. Water St., leasing 60,000 square feet of the 113,830-square-foot

HARRI HOFFMANN CO. INC. The Harri Hoffman Co. is one of the last remaining manufacturing buildings in Milwaukee’s Historic Third Ward neighborhood. Since 1952, the company has manufactured leather care products sold under its own brand, as well as private label products including Dux-Bak Leather, Cadet and Whittemore. The company was run by Harri Hoffmann’s daughter, Lorraine Hoffmann, until her death in July. She was 74. The company and the building are now owned by Hoffman’s estate and run by Alan Matsoff, a CPA and corporate officer. Matsoff said the company will continue to operate indefinitely; however, considering the value of the property versus what it is being used for, the building could be sold and the business could be operated elsewhere. ADDRESS: 125 N. Water St. ASSESSED: $1.64 million

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E MERG ING F RO M C H I C A G O'S S H A D O W , or entering into its orbit?

I-94 corridor between Milwaukee and Illinois is development hotbed

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COVER

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THEMomentum HOT CORRIDOR builds along I-94 between Milwaukee and Illinois

BY CORRINNE HESS, staff writer ULINE INC. EXECUTIVES HAD A WISH LIST in 2009 when they were searching for a new location for the corporate headquarters. It included a massive amount of shovel-ready land, utilities that were already in place and a pro-business climate. Wisconsin was able to check all of the items off the list that Illinois couldn’t. CenterPoint Properties showed Uline execs a 200-acre site just west of I-94 in Pleasant Prairie. Uline took the entire parcel. Today, Uline has two 1 million-square-foot distribution facilities and two nearly identical 275,000-square-foot corporate office buildings on the site. “Pleasant Prairie was great to work with,” said Phil Hunt, Uline’s executive vice president. “We were able to build a nice building and a beautiful campus and it’s always nice to work in a pro-business climate.”

For years, the interstate corridor between the Illinois state line and Milwaukee County had been a sleepy stretch, while downtown Milwaukee and the I-94 east-west corridor from Milwaukee through Waukesha County attracted the majority of the commercial real estate development activity in the region. But over the past five years, momentum has grown along the I-94 north-south corridor. In addition to Uline, several other Illinois companies have moved north of the state line, bringing hundreds of jobs with them. In addition, Amazon built a $250 million distribution center on 165 acres along I-94 in Kenosha. Meanwhile, southern Milwaukee County has seen more recent development activity, including Drexel Town Square and the IKEA store in Oak Creek and The Rock Sport Complex in Franklin.

On top of all of that, Foxconn Technology Group now plans to build a $10 billion, 20 million-square-foot LCD panel manufacturing complex just east of I-94, between Braun Road and Highway KR in Racine County. Add it all up and the I-94 corridor between Milwaukee and the Illinois state line is emerging as one of the most, if not the most, active commercial real estate submarkets in southeastern Wisconsin. As development in that corridor continues, the Milwaukee and Chicago areas are increasingly growing into one mega region, especially as development pressure from Chicago spills over the border into Wisconsin. “Chicago is a global city that continues to grow,” said Jeff Hoffman, a partner with Cushman & Wakefield | The Boerke Co. “(But) what we are hearing is Chicago is an extremely difficult and uncertain environment. That has opened the window, if not the floodgate, for biztimes.com / 21

Wisconsin. There are a lot of Illinois-based companies looking for land, and it has certainly resonated that we have available land and stable communities.” One of those companies, which has been a bit overshadowed because of the massive development that Foxconn is planning, is Haribo. In March, Haribo of America Inc., the Rosemont, Illinois-based subsidiary of the German gummy bear maker, announced it would build its first U.S. manufacturing facility in Pleasant Prairie. The $242 million project will include a 500,000-square-foot facility in the Prairie Highlands Corporate Park, west of I-94 between Highways 165 and 50. Construction is expected to begin in 2018, with production starting in 2020. The company has said the plant will support 400 jobs. Hoffman credited the work that the Wisconsin Economic Development Corp. has done to facilitate deals like Haribo coming to Wisconsin. The company could receive up to $21 million in state tax credits if it meets capital investment and job creation numbers by 2028. “Haribo is a significant investment and a rather ‘Wisconsin is open for business’ story,” Hoffman said. “It’s more profound than right place, right time, great location, access to interstate. We have a great business environment year-over-year, and it is all of those factors combined.” Wispark’s LakeView Corporate Park, located in Pleasant Prairie along Highway 165, about two miles east of the interstate, is credited with being the first project to change the landscape along the I-94 north-south corridor. The 2,400acre master-planned, mixed-use development opened in July 1988.

CURTIS WALTZ / WWW.AERIALSCAPES.COM

RIDOR T COR O H E TH

Hig

ra /Du y 11

— Jeff Hoffman, partner, Cushman & Wakefield | The Boerke Co.

22 / BizTimes Milwaukee NOVEMBER 13, 2017

Ave

FUTURE FOXCONN EXPANSION SITE

“What we are hearing is Chicago is an extremely difficult and uncertain environment. That has opened the window, if not the floodgate, for Wisconsin.”

The park was the first of its kind to locate close enough to the state line to offer Illinois-based companies a chance to relocate to Wisconsin, while still being close to the amenities they were used to in Chicago. Even before Pleasant Prairie was incorporated as a village, Rust-Oleum committed to moving its production and research facility from Evanston, Illinois to 28 acres at LakeView. The company received a $1 million job training and research and development grant from

The site Foxconn Technology Group has selected for its 20 million-square-foot campus.

W. 105th St .

R un

FOXCONN SITE

Highway KR/Firs t St.

A ppl

e Ho

ll e r

I-94

biztimes.com / 23

JON ELLIOTT OF MKE DRONES

RIDOR T COR O H E TH

IKEA is building its first Wisconsin store at Drexel Avenue and I-94 in Oak Creek.

then-Gov. Tommy Thompson for coming to Kenosha County. By 1997, nine years after opening, 50 companies were located in the LakeView Corporate Park, absorbing almost 40 percent of the available land at the time, according to a 1997 report by the Washington, D.C.-based Urban Land Institute. Of those first 50 companies, 29 moved from Illinois and six moved from other states.

Chester, Pennsylvania-based global engineering, repair and logistics company, is planning to lease more than 160,000 square feet of industrial space adjacent to LakeView Corporate Park from Majestic Realty Co. By doing so, the company will bring up to 200 employees to Pleasant Prairie. This is one of a handful of new companies leasing space in speculative buildings developed at the park. Majestic Realty Co. is also planning an in-

“It is now no longer ‘Way up in Wisconsin.’ Now it is an extension of the Chicago market, even though there is that pesky jurisdictional state line.” — Chad Navis, director of industrial investments, Zilber Property Group

“LakeView considers its primary market to be metropolitan Chicago, not Wisconsin,” the study said. Nearly 30 years after its first development, LakeView Corporate Park has more than 1,265 acres developed and more than 8,000 employees working in it. And it continues to expand. Communications Test Design Inc., a West

dustrial park in Kenosha at the former Dairyland Greyhound Park, which has been vacant since 2009. The California developer bought the 228acre property, located at 5522 104th Ave., just east of I-94, in September for $14.5 million. “We have several different site plans, but it is going to be a master-planned business park comprising of various different buildings for

manufacturing, research and development and different facilities,” Taylor Talt, vice president at Majestic, said after the sale. Phase one of the project will be a 500,000to 750,000-square-foot building that could accommodate up to 500 jobs, Talt said. A specific tenant is not yet identified. Zilber Property Group, which has about 30 industrial properties between Milwaukee and the state line, anticipates continued growth in the I-94 north-south corridor. Chad Navis, director of industrial investments with Zilber, said the corridor has historically been a growth area for the Chicago market, with the first stop being Kenosha County. Zilber owns about 22 buildings in Kenosha County, including two that are currently under construction and will be completed this year. One is in LakeView Corporate Park and the other is in the Business Park of Kenosha. “Over time, the area has gotten some critical mass and now it is a more known and accepted location,” Navis said. “It is now no longer ‘Way up in Wisconsin.’ Now it is an extension of the Chicago market, even though there is that pesky jurisdictional state line.” Zilber is planning to expand its footprint in

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the city of Kenosha with four large speculative industrial buildings. The company is planning to build a 250,000-square-foot building on the east side of I-94, at 52nd Street and 104th Avenue, adjacent to the former Dairyland Greyhound Park. The company also recently purchased 70 acres of land west of I-94 along Burlington Road (Highway 142) and is planning up to three spec buildings totaling almost 1 million square feet. In southern Milwaukee County, Zilber owns a building in the Franklin Business Park and has a 162,000-square-foot spec building currently under construction. In Oak Creek, the company recently acquired two industrial buildings off of Ryan Road. Zilber also recently started investing in Racine County, with the purchase of a 248,000-square-foot facility at 1445 International Drive that will be leased by Goodwill Industries. Zilber also acquired a 110,000-square-foot building off of Highway 20 last year. “This is a long-in-the-tooth story,” Navis said. “For a while, this corridor has been gaining momentum and now this growth has accelerated. What is new is that in the last 10 years, the Milwaukee market has sought this area out as a relocation solution for companies that want to grow. I do not see any good reason why its growth will not continue and continue to accelerate.” The Goodwill Industries building is located in the same business park, just south of Highway 20 in Mount Pleasant, where Racine-based InSinkErator plans to move its headquarters. The new $24 million, 85,000-square-foot facility is currently under construction. Andy Bruce, principal for MLG Capital, said the I-94 north-south corridor’s success depends on the location. In Kenosha County, much of the growth has been from Illinois firms relocating to Wisconsin because of the strong business environment the state can offer, Bruce said. But in Racine and Milwaukee counties, the

for land north of Chicago will take a look at southeastern Wisconsin. growth has been the result of a combination of “With the lower property taxes and the lowfactors, he ssaid. er land prices, there is really an opportunity for MLG Capital developed the 450-acre a lower cost of occupancy,” Badger said. “CerRecent Construction Renaissance Business Park, located east of I-94 tainly incentives have played into the whole 2012-2017 on Highway 20 in Racine County, between 1995 deal, but the incentives are more like gravy.” and 2005. The park filled quickly, with mostly Badger has brokered more than 1.5 million Racine-based companies. square feet of lease transactions and sold more “(The rising amount of development in than 525 acres of land in southeastern WisconTheI-94Interstate the north-south corridor corridor) is between a credit to Milwaukee sin over the past two years. Wisconsin’s businessstate environment andseen to local He said another trend has been for companies and the Illinios line has significant Under Construction governments for being proactive and 5 entreprelocated in northern Milwaukee County or north of 2017-2018 industrial growth over the past years. Multiple neurial,” Bruce said, adding that it will be fun to Milwaukee to begin looking south as they expand, tenants have crossed the Illinois/Wisconsin see the effect Foxconn has on Racine. which had not happened in the past. border, haveabout chosen to expanded their “Whatothers is fascinating Foxconn is the Bruce, Mills and Badger will be panelists operations, some have Wisconsin square footageand is almost twice theselected size of Lakevat the BizTimes Commercial Real Estate and iew (Corporate Park), was built out site over aselection Development Conference on Nov. 17, sponafter national orwhich international Planned Construction 25-year time period,” Bruce said. “It’s not quite sored by Bank Mutual and Husch Blackwell. The processes. This stretch of Interstate is highly 2018-2020 the density of jobs, but it’s not far off either.” event will focus on the development activity desirable due to the fact there is an abundance “Kenosha has always been considered a that is occurring in the I-94 north-south corridor of untouched infrastructure suburb of Chicago, land, more sosignificant than Milwaukee,” between Milwaukee and Illinois. investment ($1.9bn), the stable Bear Wisconsin said S.R. Mills, president of Kenosha-based Mills said you don’t have to be too much of Development. “Racine splits the (bea visionary to look at the northern Chicago subpolitical environment anddifference the proximity to tween Milwaukee and Chicago areas).” urbs, including Gurnee, Libertyville and Lake two the major metropolitans. Foxconn recently Foxconn Construction Sam Badger, a senior vice president in Forest, and see2020 that the development trend is announced plans of developing a 10Million CBRE’s Chicago advisory and transaction continuing to push north. SF+ faciltiy. services group, said any company looking “It is like that acronym for Boston, New York

I-94 Corridor Milwaukee to Chicago

11,192,462 SF

Industrial Market Report

3,441,302 SF 7,626,338 SF

10m to 20m SF

I-94 corridor – MILWAUKEE TO ILLINOIS

Interstection Highlights

IN D US T R I A L R E A L E S TAT E D E V ELO PM EN T Interchange

Pre-2012 inventory

Recently developed

2012-'17 growth**

Under construction

Planned construction

Estimated New Jobs

College

11,346,373

120,036

136,840

151,340

Hwy 100

3,775,701

680,790

11%

641,582

399,200

804

County Rd K

5,861,757

113,089

71%

133,000

1,000,000

463

Hwy 11 & 20

703,230

1,677,149

27%

1,020,450

1,377,600

1,055

Hwy 158 & 142

7,631,305

4,390,656

161%

42,235

3,820,904

3,011

Hwy 165

6,087,701

4,210,742

33%

1,467,195

877,294

2,377

Total

35,406,067

11,192,462

37%

3,441,302

7,626,338

7,750

10M+

3,000+

** Calculated using a 3-mile radius of each interchange. Source: NAI MLG Commercial Foxconn

*Calculated using press release job estimates and for those not released using a 1 job per 3,500 SF ratio. **Calculated using a 3 mile radius of each interchange Some information contained herein has been obtained from third party sources deemed reliable but has not been independently verified by NAI MLG Commercial. NAI MLG Commercial makes no warranties or representations as to the completeness or accuracy thereof. NAI MLG Commercial makes no guarantee about projections, opinions, assumptions or estimates. Occasionally corrected or updated information becomes available for both current and historical data thereby invalidating specfic comparison to previously issued reports. COMMERCIAL REAL ESTATE SERVICES WORLDWIDE

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and D.C. – Bosnywash – it is happening here,” he said. “I think the growth will continue and in 20 years we will look very similar to what we see south of the border.” An industrial real estate report by NAI MLG Commercial found there has been 11.2 million square feet of construction along the interstate corridor between Milwaukee and the Illinois state line from 2012 to 2017. There is another 3.4 million square feet currently under construction in that corridor, and from 2018 through 2020, another 7.6 million square feet of industrial construction is planned, which does not include the 20 million square feet of construction Foxconn is planning in Racine County. “This stretch of interstate is highly desirable due to the fact there is an abundance of untouched land, significant infrastructure investment, the stable Wisconsin political environment and two major metropolitans,” the report found. With commercial growth comes a need for more residential real estate, and retail follows rooftops, which is what has been happening between Milwaukee and the state line, perhaps most notably in Oak Creek.

Uline has two 1 million-square-foot distribution facilities and two 275,000-square-foot corporate office buildings on its headquarters site in Pleasant Prairie.

In May 2016, Swedish retailer IKEA announced plans to build its first Wisconsin store on 30 acres of land owned by Northwestern Mutual Life Insurance Co. at Drexel Avenue and I-94 in Oak Creek. The 291,000-squarefoot store will open next year, undoubtedly attracting several more retail developments nearby. Northwestern Mutual Life Insurance Co. is currently working on development plans for the 27 acres of land immediately south of the IKEA store along Drexel Avenue and has asked the city of Oak Creek to rezone the site to an interstate regional retail district. Meanwhile, directly across I-94, Brookfield-based developer Somerstone LLC is working on assembling about 30 acres of land for a large commercial development that could

include 100,000 square feet of retail space and five outlot parcels. In Pleasant Prairie, where development has been rampant, vacant sites just north of the Pleasant Prairie Premium Outlets have been eyed by developers. Highland Park, Illinois-based Varin Realty LLC, which has owned the DoubleTree by Hilton Pleasant Prairie (formerly a Radisson hotel) for 12 years, is planning to build a second hotel next to the outlet mall. The company will break ground this month on a four-story Fairfield Inn and Suites hotel planned southeast of I-94 and Highway 165. Future plans also call for two retail or restaurant buildings to the south of the hotel. Even Kesslers Diamonds wants to be a

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Amazon’s 1 million-square-foot fulfillment center and 500,000-square-foot sorting center is on the east side of I-94 in Kenosha (top of photo). Uline has an 800,000-square-foot facility on the west side of the freeway (bottom of photo).

part of the growth in Kenosha County. Richard Kessler purchased 3.8 acres of land just north of the Premium Outlets in August, where he plans to build an eighth location for his jewelry store business. The neglect that once characterized the north-south corridor is now gone and the freeway leading to Illinois is getting the attention once reserved for downtown Milwaukee and I-94 West.

James Barry III, president of The Barry Co., said a major problem in the past for attracting development in the corridor was the freeway needed to be expanded and modern interchanges needed to be installed, which has happened over the past decade. And while Kenosha County has been the main example of success, Barry believes Racine County will follow at a rapid pace once Foxconn

begins construction. “All of this makes sense. You have the third largest city in the U.S. connecting to a top 40 city,” Barry said. “Amazon and Uline certainly gave the corridor a strong desirable destination, but now you see companies like Haribo and Seda in Mount Pleasant and that helps win Foxconn and put the corridor on the map. I anticipate growth for years to come.” n

biztimes.com / 29

Special Report REAL ESTATE & DEVELOPMENT The city of Brookfield is looking at ways to attract more tenants to Bishop’s Woods office park in Brookfield.

Upgrades considered for Bishop’s Woods Some say office park needs more amenities to be competitive By Corrinne Hess, staff writer IN APRIL 2016, Bader Rutter chief executive officer Greg Nickerson announced an end to its three-year search for new office space. The 220-person marketing firm would move from Bishop’s Woods office park in Brookfield to an office building being developed by Wangard Partners at the former Laacke & Joys site in downtown Milwaukee. The news was celebrated by Milwaukee, which had just snagged another suburban office tenant. But in Brookfield, it was becoming part of a storyline, particularly at Bishop’s Woods, which was experiencing low occupancy rates through the third quarter of 2016.

Bader Rutter occupied 55,000 square feet at 13845 Bishops Drive. The space was eventually filled when Pentair Water Filtration consolidated its Wisconsin office space, moving about 150 employees from Glendale and the company’s manufacturing plant in Brookfield to the office park. However, driving through the wooded office park, which was largely developed in the 1980s, there are still many “for lease” signs on its 23 buildings. Bishop’s Woods is not an anomaly, rather a part of a growing national trend as suburban firms move to downtowns or to more contemporary office developments to attract and

retain millennial talent. Recognizing the situation, the City of Brookfield’s economic development and community development departments have proposed the creation of a Bishop’s Woods neighborhood plan. The city is looking at ways to collaborate with the private businesses located in the park to add amenities that will capitalize on the green space in Bishop’s Woods. As of right now, a TIF district is not being considered, although the city could use funds to extend Bishops Way, which is a cul-de-sac and Bishops Drive, which dead ends in the park, said Dan Ertl, city community development director. The office park’s older buildings have challenges, but its location along the Bluemound Road corridor and I-94 give it a unique advantage, Ertl said. Another possibility would be to change the zoning in Bishop’s Woods to allow for some office-orientated retail, such as coffee shops, UPS, or possibly a restaurant or hotel, Ertl said. “Bishop’s Woods is very unique and one of the only wooded landscape reserve office parks in southeastern Wisconsin,” he said. “It has very recognizable branding locally and that is part of the reason it has taken so long to finally see the result of not keeping themselves up-to-date. That has led to the point of investigation of what incremental changes we can do to keep it in line with other office parks.” The plan will likely be finalized next year following community meetings and Common Council approval. The Bishop’s Woods property was acquired from the Archdiocese of Milwaukee in 1971. Construction of the first office building there started in 1974, and over the following decade

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the majority of the buildings were built. In the late 1990s, The Pinnacle at Bishops Woods, which is located on a 28-acre site at Sunnyslope Road and Bishops Drive, housing 250,000 square feet in three buildings, was constructed. Today, on the northern end of the office park, near Bluemound Road, Atlanta-based Atlantic Realty Partners and Campbell Capital Group LLC are currently constructing The Reserve, a 194-unit apartment complex. Some office tenants in Bishop’s Woods are perfectly happy to be there. Concurrency bought the building at 13600 Bishops Court in 2015 and moved its headquarters there. The company has about 130 employees working in that office and has no intention of leaving, said Ted Wentzel, director of marketing for Concurrency. “We wanted a more centralized, safe location close to services, restaurants, shops with easy access to the highway and this has worked out great for us,” Wentzel said, adding that increasing the office park’s public amenities, including walking trails, would be an added benefit for Concurrency employees and others working in Bishop’s Woods. “There are so many people from here and all around Brookfield that walk here,” he said. “And after work we have a running group that gets together. It is an ideal location, especially if you live in the western suburbs.” Not every business that has left Bishop’s Woods is moving downtown. MLG Capital will move its corporate headquarters from Bishop’s Woods into the former Brennan’s Market building on Bluemound Road in the Town of Brookfield. MLG Chairman and co-founder J. Michael Mooney said the move offers MLG Capital a chance to have a Historic Third Ward-type environment with plenty of parking spaces. Mooney said he has enjoyed working in Bishop’s Woods, which he called a gorgeous

Bishop’s Woods is facing what many suburban office parks built in the 1980s are – increased competition from downtown urban areas.

Concurrency Inc. purchased a 30,000-square-foot office building in Bishop’s Woods in 2015 and moved its headquarters there.

wooded environment. But he admitted some of the buildings look a little tired. “There is a great movement toward high energy, non-traditional types of offices. That is why we looked at 30 buildings before deciding where to move and when Brennan’s came on the market, we made an offer that same day,” Mooney said. This will be MLG Capital’s fourth move in 30 years. The last three moves have been on the Bluemound Road corridor. Mooney thinks adding a modern apartment complex to the front of the Bishop’s Woods office park will make it more appealing. “Dining wouldn’t hurt either,” he said. “But that would take a fair amount of tenant improvements because all of the buildings are set up for offices.” Rachel Schmidt, an office broker with MLG Commercial who has done a lot of work in Bish-

op’s Woods, said some of office park’s biggest draws are also what end up making tenants want to leave. For example, people love the secluded location and meandering roads, which provides a setting for wild turkey and deer, but want better signage. The same goes for the park’s location between Highway 100 and Moorland Road: It is not in the heavy traffic areas of office parks farther west on Bluemound Road, but some complain it is not as easy to get to Bishop’s Woods off the freeway, Schmidt said. “A lot is dealing with perception,” she said. “I think if (Brookfield) is willing to commit to its revitalization and changing perception, that is key. As well as building owners having to understand that they have to make improvements to the amenities.” n

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Special Report REAL ESTATE & DEVELOPMENT

CARW members see softness in office, retail markets But overall optimism remains high By Andrew Weiland, staff writer ALTHOUGH NOT AS OPTIMISTIC as they were two years ago, members of the Commercial Association of Realtors Wisconsin remain upbeat about the southeastern Wisconsin commercial real estate market. But, they indicate there is weakness in the area’s office and retail markets. That’s the outlook from the annual BizTimes Milwaukee survey of CARW members. This year, 77 CARW members responded to the survey. When asked their impression on the current commercial real estate market in the area, 66 percent said “improving,” 34 percent said “flat” and none said “weak.” That is similar to last year, when 63.5 percent said the market was “improving.”

“Real estate fundamentals across the board are good,” said CARW president and chief executive officer Tracy Johnson. But the impression of growth in the marketplace is down from 2013-’15, when each year more than 80 percent of CARW members said the market was “improving.” CARW members remain optimistic about the market, but less so than in recent years. When asked if they thought the region’s commercial real estate market would improve in 2018, 70 percent of CARW members said “yes” and 30 percent said “no.” That’s down from previous years, when 73 percent predicted market improvement for 2017, 88.5 percent for 2016 and 94.6 percent for 2015. The southeastern Wisconsin industrial market remains strong, but the office and retail markets are showing some weakness, based on the responses from CARW members to the survey. For the area’s industrial market, 83 percent of CARW members say it is “improving,” 17 percent say it is “flat” and none said it is “declining.” That is an improvement from last year, when 73 percent said the area’s industrial market was improving.

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According to Xceligent’s third quarter market report, the region’s industrial market has a vacancy rate of just 3.7 percent and it absorbed 1.68 million square feet in the third quarter. The region’s industrial market has absorbed 4.18 million square feet during the first three quarters of the year. The region has a lack of industrial space inventory and brokers are having a hard time finding space for tenants that are in the market, Johnson said. The outlook is less favorable for the region’s office market. Of the CARW members responding to the survey, only 43 percent said the area’s office market is “improving,” 57 percent said it is “flat,” while none said it is “declining.” Last year, 52 percent of CARW members described the area’s office market as “improving” and in 2015, 64 percent did so. The Milwaukee-area office market had negative absorption of 77,961 square feet during the third quarter, according to Xceligent. The vacancy rate rose slightly during the quarter to 16.8 percent, compared to 16.5 percent in the second quarter. Meanwhile several new office buildings have either opened recently, are

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CARW members' impression of CRE market conditions 90 80 70 60

Percent

under construction or are planned in downtown Milwaukee. But the market is active, as several tenants are looking at relocation options in an attempt to use attractive office space in quality locations to help them recruit employees, Johnson said. “Those (office real estate) brokers seem to have a lot in the hopper,” she said. In response, office space lease rates in the area are on the rise and landlords are offering fewer concessions, Johnson said. The area’s retail real estate market is facing challenges as some brick-and-mortar retailers are struggling to remain competitive, but several new developments have added additional space to the market recently. CARW member sentiment for the area’s retail real estate market is mixed: 39 percent indicated it is “improving,” 44 percent said it is “flat” and 17 percent said it is “declining.” In 2016, 48 percent of CARW members said the local retail real estate market was improving. In 2015, 81 percent said it was improving. According to Xceligent, the area’s retail real estate market has absorbed 1.18 million square feet of space this year, but only 32,848 in the third quarter. The vacancy rate is at 7.6 percent. Johnson said the retail brokers she talks to are “very bullish” despite the growth in online shopping. “Forty percent of holiday sales (this year) are going to be done online,” she said. “I can bring that up in a room of retail brokers and they don’t blink an eye.” The retail industry is going through a massive transformation. Many retailers that are closing stores had too many locations, Johnson said. But some retailers are growing, including off-price stores like T.J. Maxx. New retail developments, like The Corners in Brookfield or The Mayfair Collection in Wauwatosa, are getting built with an emphasis on enhancing the shopping experience in order to compete with

“Improving”

“Flat”

“Weak”

30 20 10 0

2010

2011

2012

2013

2014

2015

2016

2017

Year SOURCE: BIZTIMES’ ANNUAL SURVEY OF CARW MEMBERS

online retail. “(The retail industry) truly is evolving,” Johnson said. When asked which real estate sectors in the area were most in danger of being over-developed, 66 percent of CARW members said apartments, 13 percent said hotels, 10.4 percent said retail space, 5.2 percent said office space and none said industrial space. When asked about specific economic development projects, 91 percent of CARW members said the Foxconn Technology Group project will be a success for the state and its economy, 59.7 percent said the Wisconsin Center in downtown Milwaukee should be expanded, 81.8 percent said the new arena will help attract more development to downtown Milwaukee, but only 31 percent said the downtown streetcar project will attract riders and spark development along the route. Johnson will present the results of the CARW member survey at the BizTimes Commercial Real Estate and Development Conference on Nov. 17, sponsored by Bank Mutual and Husch Blackwell. n biztimes.com / 33

G N I T U L SA OURERANS VET WHO OSE H ICE T CRIF ING A R S O E HON I M AT A N D T H E U LT E MAD

We Make It Be er

At its cafes, Dryhootch makes Stone Creek Coffee roasts like Marine Mud and Army Bunker Brew.

DRYHOOTCH dryhootch.org Year founded: 2009 Executive leadership:

»» »»

Bob Curry, founder and chief executive officer, recipient of White House Champion of Change Award Otis Winstead, director of Dryhootch WI

Annual budget: $765,000 Who you serve:

Dryhootch serves approximately 10,000 veterans and family members each year. Peer support services and activities are offered by trained Dryhootch staff and volunteers. What you do:

The mission of Dryhootch is to “help veterans and their families who survived the war, thrive in the peace.” This mission is actualized via a successful peer support program that is our cornerstone. Peer support is essential in empowering veterans and their families to overcome issues such as drug and alcohol addiction, post-traumatic stress disorder, traumatic brain injury, moral injury, depression and other mental health illnesses, family issues, unemployment and homelessness. The name “Dryhootch” denotes a sober environment while

34 / BizTimes Milwaukee NOVEMBER 13, 2017

paying homage to the military jargon for “home.” Founded by a Vietnam veteran who envisioned becoming a home front to the new generation of veterans, Dryhootch began in 2008 selling coffee out of a rented tent at a military re-enactment event. In 2012, the Brady Street location opened with a coffee shop, space for peer support groups and office space. We also have locations across from Milwaukee’s VA Medical Center, in Waukesha and in Madison. What you need:

Dryhootch receives no funding from the U.S. Department of Veterans Affairs or the State of Wisconsin. Though foundations, corporations and individuals, we are able to fund our staff, operations and four locations in Wisconsin. We need the following support: 1. Financial support. 2. Garage space for a new veteran mechanics program. 3. Gym usage to help veterans stay fit, mind and body. 4. Volunteers to staff our coffee house and offer tech-

nical skills like legal, accounting, marketing, etc. 5. Social media expertise. Buy our great coffee brewed by our friends at Stone Creek. Have some Army Bunker Brew, Air Force Jet Fuel, etc. What makes you different:

Dryhootch has been recognized nationally as a leading veteran service organization and has received support and recognition from numerous organizations, such as the Bob Woodruff Foundation, Wounded Warrior Project, Substance Abuse and Mental Health Association, Medical College of Wisconsin, Marquette University, McCormick Foundation and Fisher House Foundation. In 2012, Dryhootch founder Bob Curry was honored as a White House Champion of Change for his trailblazing work in veteran peer support. How to get involved:

Call us, email us, stop in; we can use your help.

Lt. Col. Chuck Wallens, who served in the U.S. Army in WWII, Korea and Vietnam, is welcomed back to Milwaukee at the end of his Honor Flight day in April.

STARS AND STRIPES HONOR FLIGHT starsandstripeshonorflight.org Year founded: 2008 Executive leadership:

»» »» »» »» »» »» »»

Paula Nelson, president, TJ Hale Amy Luft, vice president, Comfort Keepers Ted O’Reilly, second vice president, Aurora Health Care Christy Julius, secretary, American Advantage Julius Agency Joel Skrzypchak, treasurer, Kohl’s Brad Hoeft, past president, Antoine, Hoeft & Eberhardt Karyn Roelke, vice president of public relations

Annual budget: Varies Who you serve:

WWII veterans, Korean War veterans, Vietnam War veterans and terminally ill veterans of any conflict.

What you do:

We fly local WWII veterans, Korean War veterans, Vietnam War veterans and terminally ill veterans of any conflict on one-day, all-expenses-paid trips to Washington, D.C. to visit the memorials built in their honor, and to experience a full day of honor and thanks for their service. We actively promote educational aspects of this mission in our schools and our communities. We have flown more than 5,500 veterans from southeastern Wisconsin since our founding in 2008. What you need:

We are a 100 percent volunteer organization with no paid staff and no offices, and more than 96 cents of every donated dollar goes directly to fly veterans. We have a waiting list of almost 1,000 veterans and we receive more applications each week. Donations and corporate sponsorships of our flights allow us to move veterans off

of the waiting list and onto a flight. What makes you different:

Stars and Stripes Honor Flight is an all-volunteer organization with no paid staff and no offices. The board of directors of 19 and the legion of more than 250 active volunteers band together to honor approximately 650 veterans each year with not only an Honor Flight, but a full day of celebration for their service to our country. An Honor Flight is completely free for the veteran, and each veteran is accompanied by a guardian who pays a $500 travel fee to offset their expenses. SSHF has recently expanded to welcome our Vietnam veterans for their Honor Flight, and to finally give them the welcome home that they have deserved for so long. An Honor Flight day is a chance to celebrate, honor, thank and heal our veterans, and to come together as a community to truly thank them.

A USO mobile truck at Fort McCoy.

USO WISCONSIN usowisconsin.org Year founded: 1984 Executive leadership:

»» »» »» »» »» »»

Dan Toomey, president, We Energies Tim Flatley, first vice president, retired Lee Plemons, second vice president, U.S. Army Scott Blazek, treasurer, Wipfli LLP Robin Hommel, secretary, Harley-Davidson Joseph Duffey, attorney, Duffey Law

Annual budget: $783,483 Who you serve:

United Service Organization of Wisconsin supports currently serving U.S. military and their families in Wisconsin. We also support families of the fallen. We had more than 100,000 touches in 2017 at our centers and programs. What you do:

At our Fort McCoy centers and Milwaukee and La Crosse airport centers, USO keeps military connected to their families through Wi-Fi and laptops. Often, they are away from their family and unable to get a signal.

Through USO’s programs, we help military families create moments that matter to make up for missed family events. The United Through Reading program provides video of a deployed parent reading a book so their children have a nighttime story while their parent is deployed. At Operation Christmas, we provide food, presents, games and a picture of their family with Santa. What you need:

We need a new mobile center, more volunteers and support to expand operations. We are a chartered organization and do NOT receive funding from USO national headquarters, the government or the military. Our mobile truck helped 35,000 service members in 2017 at Fort McCoy and remote areas of Wisconsin. It offered Wi-Fi and video conferencing so military could connect with their families. It provided protein, personal hygiene items and refreshments. That vehicle is currently broken down

and we need funding for a new truck. What makes you different:

We support currently serving military. We have an agreement with the Department of Defense to be on military bases and communicate with units directly. We meet quarterly with military officials and family readiness groups to determine the greatest need. We know what type of support military need during times of high stress: Deployments, moving and around the holidays. How to get involved:

Have you ever seen a soldier walking through the airport in their camouflage uniform and wanted to thank them for their service, but were afraid to bother them? Volunteer with USO Wisconsin and you can thank local military and their families in a way that is meaningful and helpful to them.

biztimes.com / 35

Veteran entrepreneurs and business owners participating in the Wisconsin Department of Veterans Affairs registration program.

WISCONSIN VETERANS CHAMBER OF COMMERCE wiveteranschamber.org Year founded: 2015 Executive leadership:

»»

Saul Newton, executive director

Annual budget: $50,000 Who you serve:

The Wisconsin Veterans Chamber of Commerce is dedicated to supporting military veterans and veteran-owned and veteran-friendly businesses. On behalf of our members, we serve as an advocate for Wisconsin’s veteran business community, and promote economic opportunity for military veterans, military families and veteran-friendly businesses. What you do:

The Wisconsin Veterans Chamber of Commerce serves veterans and military families by providing resources to support veteran-owned and veteran-friendly businesses

across Wisconsin. We are the voice of Wisconsin’s veteran business community, dedicated to improving the business climate for military veterans and their allies. The Veterans Chamber brings together veterans, businesses and community leaders around business development, workforce development and community support to ensure the success of Wisconsin veterans. What you need:

As a membership organization, we are looking for veteran-owned and veteran-friendly businesses to get involved in our business community. In addition, we are always looking for volunteers to serve on our programming committees.

What makes you different:

The Wisconsin Veterans Chamber of Commerce is the state’s only membership-based business organization devoted specifically to serving veterans, service members and military families in Wisconsin. We support veteran-owned businesses and veteran-friendly businesses across the state by providing marketing, cost savings and educational opportunities to our members, as well as networking opportunities and other featured events. We are a vibrant and dynamic veteran business community. How to get involved:

Visit wiveteranschamber.org or email info@wiveteranschamber.org for more information.

WISCONSIN VETERANS NETWORK (VETSNET) wisvetsnet.org Year founded: 2016 Executive leadership:

»» »»

Quentin Hatfield, executive director Ron Adams, board president, assistant director of diversity and inclusion at Northwestern Mutual

A homeless veteran assisted by VetsNet wants to work.

A veteran assisted by VetsNet went from homeless to college student.

Annual budget: $238,306 Who you serve:

We will help any man or woman in crisis who served in the military. This means anyone who wore the uniform: Active duty, Reserves or National Guard; overseas or stateside; war or peacetime; frontlines or in the rear; regardless of discharge; family members, too. What you do:

VetsNet is a collaborative project of more than 30 organizations, including government agencies, veterans service and nonprofit community organizations, working together to help veterans and active duty military and their families. We will assist the veteran and their family to navigate federal and state government agencies, county Veteran Service Offices, veteran-oriented nonprofits, community nonprofits

36 / BizTimes Milwaukee NOVEMBER 13, 2017

and military service organizations. Since 2016, our phenomenal partners have served more than 600 veterans and their families with the help of the VetsNet staff.

pers or Department of Veterans Affairs identification card.

As a nonprofit, our plan and hope is to grow. Donations provide the funding necessary to recruit and retain talented navigators who are committed to serving veterans and helping to connect them with the right resources to meet their needs.

We are not a direct service provider. Instead, we partner with the organizations that provide services and work with them on behalf of the veteran to resolve whatever crisis the veteran and his or her family may be experiencing. We frequently will draw upon the resources of several organizations to find housing, employment and financial assistance – whatever is needed to help them get on track and provide for themselves and their families.

What makes you different:

How to get involved:

What you need:

Most veteran services have regulations and restrictions which limit who qualifies as a veteran. As an independent nonprofit organization, VetsNet is able to work with and assist anyone who can present a copy of their discharge pa-

Support us or the organizations we rely upon to meet the needs of veterans in crisis. If you know a veteran who is struggling and needs help, refer them to us.

Special Report VETERANS IN THE WORKPLACE

The inaugural class of the Academy of Advanced Manufacturing.

Rockwell Automation, ManpowerGroup turn to veterans for skilled talent BY ARTHUR THOMAS, staff writer Rockwell Automation Inc. and ManpowerGroup Inc. announced ambitious plans earlier this year to train 1,000 veterans per year for careers in advanced manufacturing. So far, the Milwaukee-based companies have graduated 15 trainees, but another cohort of 36 will start in January and Rockwell is making room at its headquarters to accommodate the program. “We may not hit the 1,000 as fast as we thought, but we’re on a quest to get to 1,000 per year,” said Mike Laszkiewicz, Rockwell vice president and general manager for the power control business. The partnership trains participants as instrumentation, automation and control technicians, a role that is among the 10 hardest jobs to fill, according to Manpower research. It is a

modification of Rockwell’s engineer-in-training program near Cleveland, Ohio, part of the company’s onboarding process for new hires. But the trainees aren’t exclusively going to work at Rockwell. Instead, they’ll be taking jobs at Rockwell and Manpower customers around the country. “We’ve always had a strong training capability … we’ve sometimes been ahead of the curve and it was important for us to provide technical training to our customers,” Laszkiewicz said. “This is different in that we’re producing employees for our customers, but we’re leveraging a core capability that we’ve had for a long time.” The program may take Rockwell and Manpower a bit out of their traditional com-

fort zones, but going outside the box is what it takes to address the talent challenges that manufacturers face today. “That’s what our CEOs challenged us to do,” said Chris Layden, vice president at ManpowerGroup North America. But why focus the training on veterans? “They’re an untapped resource,” Laszkiewicz said. “It’s not easy for them always to translate their experience into something the manufacturing industry would be interested in, yet the technologies that they become experienced with in the military really do apply and businesses sometimes can’t see that.” Layden added that it has quickly become clear that veterans have experience with large industrial computer systems “that are really close to what the market needs.” “We know that we can continue to tap veterans into this program for this to scale pretty significantly over the next several years,” he said. Reaching the target of 1,000 veterans trained per year by 2018 may prove difficult, since the companies would have to be training 250 people every quarter and they will start with a cohort of 36 in January. But Laszkiewicz and Layden said even though it is important to reach the target, it is more important to produce qualified graduates. “We are making that commitment to the veteran that they are going to have a job at the end of this training program, so the training, our selection process, the recruiting process, all of that has to align up and down,” Layden said. “The risk is that we don’t source the right candidate, we don’t have the right match, we don’t have the right training, and we’re guaranteeing they’re going to have a job.” That risk is particularly important for Rockwell, which is helping to place the trainees with its customers with the promise that they will be productive contributors from the first day on. “We can’t underestimate the importance of

picking the right candidates for the program,” Laszkiewicz said, noting that things like ability to move or handle shiftwork could be as important as being able to handle the training, in some cases. “We’ve got to match up with our customers’ requirements and that’s going to be more important to us than the actual scaling.” Foxconn Technology Group committed to hiring veterans as part of an agreement signed with Rockwell over the summer, and so far other customers are excited about the program’s potential. Those who visited the first cohort in Ohio came away impressed and Laszkiewicz said the company is already talking to people about trainees who will graduate in April. “Some of the largest companies in the world that are participating aren’t just looking at one or two candidates, they’re looking at how they participate in the program for the long term,” he said. Layden said many of the companies that met with the trainees in October felt the candidates could potentially step directly into super-

38 / BizTimes Milwaukee NOVEMBER 13, 2017

visor or team lead roles right away. He said the view wasn’t really the result of the program but “more, I think, the backgrounds that veterans are bringing in and how easily that can shine through with a little bit of training.” About two-thirds of the program is focused on technical training, while the other third is used to develop soft skills. Laszkiewicz said that includes giving trainees an idea of what to expect in the physical environment of a factory, how to communicate their ideas, what factors will lead to their success and how to represent themselves. “We not only provide the technical education, but we help them to speak the language of industry, automation and advanced manufacturing,” he said. In addition to providing trainees with technical skills, the program offers employers other insights into candidates. “It validates their desire to learn,” Layden said. The willingness to add more skills will help the trainees in the future, he said. “The one thing we know about

Students in Rockwell training facilities near Cleveland, Ohio.

advanced manufacturing today is that it’s going to continue to evolve and the challenges are going to become tougher,” Laszkiewicz said. Manpower and Rockwell have moved quickly to get the program off the ground. Laszkiewicz said it was still just an idea as recently as March. Since then, 150 candidates have been interviewed, the first 15 have graduated and Rockwell has started building out training space in Milwaukee. The program will also likely evolve. Layden and Laszkiewicz said customers are already talking with them about the possibility of additional advanced training in the future. There are also other positions or technology partners that could come on board in the future. And it could expand to locations beyond Cleveland and Milwaukee. “There’s certainly demand in the market for us to train for other roles, to do custom training,” Layden said. “We see partners that want to participate, we see more and more employers that want to participate, so scaling up and expanding

the capability of the program will be an important priority for the future,” Laszkiewicz said. At the same time, there are an estimated 51,000 technician openings, according to Manpower, so there’s plenty of demand for the program’s original focus, as well. Layden said the lack of available skilled talent helped bring the two companies together. “In an effort to help our customer be successful, we think it’s necessary, both Rockwell and Manpower, we think it’s necessary that we help solve this challenge for them,” Laszkiewicz said. He added the program can work for companies of any size. “This program works with our Fortune 500 companies and this program works with our smaller companies who know that in order to be competitive, they’re going to have to make investments. You can either complain about not having the people or you can look at your process and how you advance, maybe even automate, and then match up with the skills,” Laszkiewicz said. n

Special Report VETERANS IN THE WORKPLACE Laura Hanoski, founder of Heroes for Health Care, at the Great Lakes Naval Museum after delivering a presentation for veterans transitioning to civilian life.

Bridging the gap between veterans and health care jobs BY LAUREN ANDERSON, staff writer As co-founders of Premier Medical Staffing Services in West Allis, Laura Hanoski and her husband Mark have seen the roadblocks that prevent veterans from landing health care jobs in the civilian world.

In many cases, a credentialing mismatch stands in the way. While many veterans’ medical experience might be comparable to – or even surpass – that of a civilian health care worker, many

reinvent the way you work

haven’t secured the certifications and licensures needed to apply for those jobs. For Laura, that gap became particularly stark during a sobering conversation with the father of a veteran at a job fair at Naval Station Great Lakes in Illinois. The man’s son served as a corpsman, a role in which he gained plenty of medical experience. But because he lacked credentials, his son was turned down from health care jobs left and right. The son became depressed and spent much of his time drinking in his father’s basement. Seven of the men in his platoon had already committed suicide, the father said. “That was a really hard thing for a parent to tell me,” Hanoski said. “These guys are saving our lives and we’re not doing anything for them. There, a hero and here, to be told what you have done isn’t significant and doesn’t count. That particular day, I realized we have to do

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something. As a health care organization, I felt that we were obligated.” It became the motivation for her new nonprofit, Heroes for Health Care, which Hanoski launched earlier this year with the goal of providing veterans with resources to continue their career in health care as civilians. The organization’s services include career planning, housing and relocation help, resume writing and job counseling. The organization received its 501(c)3 status in March. The organization, which is entirely volunteer-run, leans heavily on its board. Hanoski, who worked as a nurse prior to starting Premier Medical Staffing, said the board members were hand-picked for their expertise. They include a human resources professional, a VA nurse, a surgeon who served in the Army, an adult education professional, and a realtor with certifications related to veteran relocation, among others. Rachel Radtke, a client manager with Premier Medical Staffing, joined the board, compelled by Laura’s “contagious passion.” Radtke said what sets Heroes for Health Care apart is that it addresses problems in a practical and tangible way, rather than simply

brainstorming solutions. “I like that we can be a one-stop shop,” she said. “It’s not ‘Go call this person and then go to this website…’ and giving people a list of things that people need to do themselves. If you’ve ever been on a job hunt, that gets overwhelming – even when you’re not trying to transition from the military to the civilian world.” Having served in the Army Reserve Medical Corps from 1990 to 1998, Don Zoltan, a board member and orthopedic surgeon with Sports Medicine & Orthopedic Center in Greenfield, said the organization’s mission resonates with him. “During that time, especially while on active duty during Desert Storm in 1991, I had the pleasure of working with many excellent Army-trained medical personnel,” Zoltan said. “Of particular note were the orthopedic physician assistants, whose knowledge and expertise was outstanding, equal to or surpassing most people working in a similar capacity in the civilian world.” But, Zoltan said, comparable positions outside of the military don’t exist, and the need for job counseling and guidance once veterans leave the military inspired his involvement with

the organization. Hanoski regularly delivers presentations during the Naval Station Great Lakes program for those transitioning out of the military, but to expand its reach, she plans to record the presentation for wider distribution. Heroes for Health Care is also partnering with a college in Illinois to create a “corpsman to LPN” curriculum that will accelerate the process for a military medic to receive credentialing. Hanoski hopes to encourage more colleges to adopt the curriculum, which could cut the process in half and reduce the cost significantly for veterans. The organization is currently raising funds in hopes of providing financial assistance to families that meet specific criteria, particularly veterans who want to return to school to obtain their health care credentials but can’t afford to take the time off of work. Hanoski said the biggest priority for the organization, being in its infancy stages, is raising awareness that it exists to fill a gap. “To me, that’s the biggest thing: getting the word out that we’re here and that we can help,” she said. n

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Strategies RETAIL

Marketplace disruption Retailers need to figure out how to serve the millennials

Toys R Us chief executive officer Dave Brandon called the retail landscape “increasingly challenging and rapidly changing” in a recent CNN interview. This turbulence in the retail landscape persists and more than likely will impact the Christmas 2017 holiday season. Changes are occurring everywhere in the retail industry. As Amazon continues to hire additional staff in Kenosha for its distribution center, Bon-Ton is downsizing its flagship Boston Store location on Wisconsin Avenue, and the former Sears store at Bayshore Town Center is being demolished and replaced by Nordstrom Rack. Kohl’s is reducing floor space in its stores to reduce selling costs. It also has added “Off Aisle” outlet stores to its retail arsenal. Full-line retailers that private label their merchandise continue to struggle to clear their racks of out-of-season and slow-selling merchandise, while the new giants of online retailing, like Amazon, Overstock. com, and eBay, continue to expand their product offerings. 44 / BizTimes Milwaukee NOVEMBER 13, 2017

This trend away from traditional retail channels of distribution is being fueled by the 92 million millennials and many of the 61 million members of Generation X. Goldman Sachs published a study of the three generations and how they interact with the retail environment. To the surprise of no one, the millennials are more than three times more active on social media than the baby boomers. More than half of these millennials compare prices online. Goldman Sachs has identified this generation as “digital natives” because their affinity for technology has shaped how they shop. Their active lifestyle influences trends in everything from food to fashion. They turn to online networks like Yelp, OpenTable and others for reviews on restaurants, hotels, physicians and other services. Traditional retailers have been playing catch-up with these online giants for several years and are still behind in building their share of this market. The open question is, “How do we penetrate this market?” The answer is in understanding this generation’s behavior. As they enter their prime spending years, research shows millennials are more concerned with price than quality, and they are turning to the internet for product information and peer reviews – hence, the growth of Forever 21, H&M and other specialty retailers. Recent store closures have reinforced research that has shown millennials are not brand loyal and these brands are shrinking in importance. Specialty retailers like Michael Kors, The Limited, Abercrombie & Fitch, Guess, BCBG Max Azria and American Apparel have either downsized or closed their stores. Traditional retailers like Macy’s, JCPenney and Kmart have closed many of their stores in 2017. This Thanksgiving, many traditional retailers will be closed on the holiday, permitting their employees to spend the day with their families. Dillard’s in the South and Southwest,

along with Nordstrom nationwide, the TJX group (T.J. Maxx, HomeGoods and Marshalls) and the Burlington stores will also be closed. Of course, they will be open on Black Friday and ready with the traditional “door busters” and special buys. If they wish to fight the crowds and long lines, the millennials will take an Uber or Lyft to the nearest store or mall and begin their seasonal shopping. If not, they will be sharing the internet with millions of other online shoppers sitting at home in their robes and slippers ordering their holiday fashions and gifts. After the holiday, instead of waiting in line to make a return, they will drop off their package at the local post office or UPS Store. It is time retailers understand how the millennials think, behave and shop. Otherwise, more traditional retail stores will close, while online retailers and the TJX, Ross and Burlington groups will continue their double-digit sales growth. n

CARY SILVERSTEIN Cary Silverstein, MBA, is a writer, speaker and community volunteer who splits his time between Scottsdale, Arizona and Fox Point. He is the co-author of the book “Overcoming Your NegotiaPhobia,” and can be reached at (414) 403-2942.

Strategies

Tip Sheet Find solitude to maintain focus

n a recent Harvard Business Review article, Mike Erwin, co-author of “Lead Yourself First,” writes about solitude as a necessity to maintaining focus in a highly politicized world overloaded with information and driven by multitasking.

Erwin argues that finding solitude, defined in his book as “a space in which to focus one’s own thoughts without distraction and where the mind can work through a problem on its own,” can help professionals achieve a key competitive advantage – the ability to focus. He suggests these ways to use solitude to stay focused at work:

time. Prioritize that time and tell others about it so they can respect it.

SCHEDULE SOLITUDE TIME THROUGHOUT YOUR DAY Make time for one or multiple 15-minute periods of solitude during your day. Taking a short pause between meetings and emails will help create the mental space needed to make difficult decisions and to be a better leader.

MAKE TIME FOR DEVELOPMENT OPPORTUNITIES Amidst a schedule packed with both personal and professional commitments and to-do lists, incorporate various leadership development and training opportunities to learn about yourself and grow into a leader.

SET YOUR PRIORITIES If you are in the business of producing knowledge or content, use solitude to discover the best time of your day to focus on only your work for an extended period of uninterrupted

SAY ‘NO’ To prevent your to-do list from becoming too long to handle, reflect in solitude about which activities or involvements no longer serve a purpose in your life and simply eliminate them. n

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TURN OFF ONLINE DISTRACTIONS Identify your sources of distraction on the internet and take action by logging out of social media accounts and blocking distracting websites while at work.

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BizConnections PAY IT FORWARD

For Joseph Scala, charity is a family matter Joseph Scala Commercial sales and marketing manager Monroe Equipment Inc.

LILA ARYAN PHOTOGRAPHY

Nonprofit served: American Cancer Society; Alzheimer’s Association Service: Ambassador and chair of Walk to End Alzheimer’s ALL OF THE CHARITABLE work that matters most to Joseph Scala can be traced back to family. Long before Scala, commercial sales and marketing manager for Menomonee Falls-based Monroe Equipment Inc., dove into volunteerism, his family upbringing laid the groundwork for service. Born the youngest of eight children to parents who immigrated to the United States from Sicily, he didn’t have a lot growing up. But in his tightknit family, Scala’s parents taught him “whatever you have, you share it with others.” “I feel that so much of what I am is attributable to having a strong family unit,” he said. “My siblings are a huge influence on my life. My elder brothers and sisters have been great role models of how to treat people with respect, of having empathy and caring about others. That’s been a big part of our lives from the very, very beginning.” At 16, Scala lost his father to cancer, which prompted him to become a lifelong volunteer for the American Cancer Society’s Wisconsin chapter. More recently, Scala’s mother passed away at age 88 after struggling with Alzheimer’s in her later years, and it inspired his involvement with the Alzheimer’s Association Greater Wisconsin Chapter. Today, Scala serves as an ambassador for the American Cancer Society in the Fox Valley. He uses his platform to bring awareness to the cause through everyday actions, like sporting an ACS lapel pin daily, wearing pink throughout the month of October, networking in his professional circles and

participating in various events to raise awareness. He also currently chairs the Walk to End Alzheimer’s in Appleton for the Alzheimer’s Association, helping coordinate the annual event and using his marketing expertise to promote it. Scala also lends his vocal talents to various causes, singing the national anthem at dozens of charitable events around the state. “Most meaningfully, I do a lot of veterans’ events,” Scala said. “Those are really amazingly meaningful because you have the pageantry and the flags and the uniforms and it’s an amazing thing to experience firsthand.” Ultimately, Scala sees all of his work as an opportunity to honor his parents. “My most guiding principle is I want my parents to be proud of me, whether I’m 5, 15 or 45,” he said. “… The opportunity to help others and make those close to you proud of you is a huge passion of mine and I believe it always will be.” n

LAUREN ANDERSON Reporter

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

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BizConnections PERSONNEL FILE ACCOUNTING

SVA Certified Public Accountants, Brookfield SVA Certified Public Accounts has promoted Justin Chesbrough to principal. Chesbrough works with health care practices on entity formation, financial statement presentation, benchmarking, employee structure and benefits, overhead control and tax planning.

BANKING & FINANCE

North Shore Bank, Brookfield North Shore Bank, Brookfield, has hired Leo Spanuello as a new regional sales manager. Spanuello has worked in the industry for more than 20 years. In his new position, Spanuello will be responsible for growing and managing mortgage clients for Milwaukee, Waukesha, Walworth, Racine, Jefferson and Ozaukee counties.

EDUCATION

Marquette University, Milwaukee Marquette University has named Gina Sholtis vice president for university advancement. Sholtis, who will start in her new role on Nov. 16, is currently assistant vice chancellor for advancement at the University of Missouri.

HEALTH CARE

Mindful Solutions, Elm Grove After four years with Wheaton Franciscan Healthcare as a clinical therapist and with Stress Management and Mental Health Clinics at its West Allis and Waukesha locations, 48 / BizTimes Milwaukee NOVEMBER 13, 2017

Carrie Kelly has made the leap to her own independent practice, Mindful Solutions. She is a West Allis native and has worked in mental health settings in both Colorado and Kentucky before returning to Wisconsin several years ago.

MANUFACTURING

Rheocast Co., Germantown Charlie Wright, Jr. has been promoted to vice president of operations at Rheocast Co. The die casting foundry has moved Wright into the new position to oversee all management and production at the facility. Rheocast is the die casting division of The Fall River Group Inc., a brass and aluminum foundry and manufacturing company located in Wisconsin.

MANUFACTURING

LIFE Corp., Milwaukee LIFE Corp., a medical device manufacturer, has hired Jacob Witkowiak as production manager of assembly, shipping, quality control and purchasing.

MANUFACTURING

Spancrete, Waukesha Spancrete has hired Kelly Weis as director of preconstruction and construction at the company’s corporate headquarters. Weis has led more than 1,000 retail and construction projects throughout the U.S. in the past 13 years.

the earned media teams – public relations, social media and content development – to further integrate campaigns at STIR. Henke’s extensive experience in each area, in addition to her management skills, will continue to grow STIR’s earned media capabilities.

NONPROFIT

College Possible, Milwaukee

Precourt

Rodriguez

Ben Precourt and Steven Rodriguez have joined College Possible as high school program coordinators. O’Hara Precourt comes with more than two years of experience as an admissions counselor at the College of Saint Benedict and Saint John’s University in St. Joseph, Minnesota. Rodriguez previously served as an enrollment coach with College Possible, helping to combat summer melt and ensure that high school seniors who had earned admission enrolled in college. In addition, Morgan O’Hara has joined College Possible as a development associate.

Christel Henke has joined STIR Advertising & Integrated Messaging as vice president of earned media. Henke will unite

PROFESSIONAL ORGANIZATIONS

Waukesha County Business Alliance, Waukesha Reginald Newson is now a member of the Waukesha County Business Alliance’s policy board. He is the vice president and chief advocacy officer for Ascension Wisconsin. As chief advocacy officer, he is responsible for developing and implementing state and local strategies for advancing Ascension Wisconsin’s legislative and regulatory priorities at the state and national levels.

TECHNOLOGY

Top Floor, New Berlin

PROFESSIONAL SERVICES

Lemberg, Brookfield Spaude

MARKETING

STIR Advertising, Milwaukee

11-year background in purchasing, inventory control and scheduling for the electronics industry, and a strong interest in Buchler processes. Ethan Newton was promoted to service manager in Lemberg’s service division. Newton has nearly 20 years of experience as a journeyman electrician. Hanna Buchler was also hired as outside sales representative to manage sales for Lemberg’s growing signs and lighting division. Buchler comes to Lemberg with experience in account development and sales in the manufacturing supplies, LED lighting and sign industries.

Loaiza

Newton

Sheena Loaiza has joined Lemberg’s service team permanently as service coordinator. She comes with an

Kloth

Digital marketing firm Top Floor recently promoted Chad Spaude to director of web services, where he will take the lead on planning, designing and enhancing the web development process for Top Floor’s customers. Sarah Kloth has also been promoted to director of digital strategies.

AROUND TOWN SHARP Literacy’s A Novel Event “A Novel Event,” SHARP Literacy’s largest annual fundraiser, featured keynote speaker Randall Cobb, wide receiver for the Green Bay Packers.

LITZA JANKOWSKI and RUSS JANKOWSKI , both of SVA Certified Public Accountants

JENNY ZUPERKU, MARY LOPEZ and ADELE LINDSTROM , all of P.E.O. Wisconsin State Chapter.

JIM MUELLER of Mueller QAAS and LYNDA KOHLER , president and chief executive officer of SHARP Literacy.

ROSMARIE COLLA, LAURIE MAHONEY and MIKE MAHONEY, all of Park Bank.

KAITLIN HENZE, JENNIFER FADROWSKI, PAIGE VAZQUEZ, ZOE MUEHL and DANIELLE MUTCHIE , all of EmPower HR.

JOHN GOMAN of North Shore Bank, SUE GOMAN of Wells Fargo Advisors, JEANNE FORESTER of Museum of Wisconsin Art and JIM HENRY of Andrew Toyota.

MICHAEL LEVEY of Quarles & Brady LLP and LINDA GORENS-LEVEY of General Capital Group.

SUSAN KIM of WTMJ-TV and CECELIA GORE of Brewers Community Foundation.

Revitalize Milwaukee Mad Hatter’s Gala Revitalize Milwaukee held its sixth annual wine pairing and auction fundraiser to support its accessible housing and neighborhood improvement programs. 9.

10 11

MARY BETH MALM of MBM Consulting and LEONA KNOBLOCH-NELSON and TERRI DAVIS , both of Vision Forward Association.

10. DANIEL SCHWIND of Town Bank and KATHY SCHWIND of Waukesha County Business Alliance. 11. BRITT BLACKWELDER and KATIE RICHTER , both of Emerging Women Leaders of TEMPO Milwaukee. 12. VI HAWKINS of Revitalize Milwaukee with GEORGE BRYANT, LINDA BRYANT and GLADYS CARROLL-WEATHERSBY of Milwaukee County Commission on Aging.

13. PAUL PETTED of Revitalize Milwaukee with JOHN BIRDSALL and NICOLE MULLER , both of Birdsall Law Offices S.C. 14. JAN CAPEN, BOB CAPEN of Pieper Power, MONICA SPAULDING and RICK SPAULDING of Revitalize Milwaukee.

15. RENEE ELLIOTT of the Wisconsin Department of Workforce Development, JOSEPH HASTREITER of EWH Small Business Accounting S.C. and BRUCE ELLIOTT of Tri City National Bank. Photos by Maredithe Meyer biztimes.com biztimes.com / 49 / 49

BizConnections VOLUME 23, NUMBER 17 | NOV 13, 2017

GLANCE AT YESTERYEAR

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

SALES & MARKETING

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

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

This photo, taken by James Conklin circa 1937, shows an orchestra playing at the Milwaukee Government Service League banquet. The organization existed from 1935 to about 1964. It represented and advocated for city employees. — This photo is from the Milwaukee Public Museum’s Photo Archives collection.

TWO YEARS AGO in this space, I wrote that the City of Waukesha’s request to use Lake Michigan as its source of water should be approved. I was also critical of Milwaukee’s objections and said Milwaukee had missed out on an opportunity to gain the entire city of Waukesha as a water customer. Instead, Waukesha planned to get its Lake Michigan water from Oak Creek. A major concern of Milwaukee officials was that Waukesha’s water request included not just that city’s existing population, but also anticipated future growth areas. Milwaukee officials said Waukesha should only get water to serve its existing service area. When Waukesha’s Lake Michigan water request was approved in 2016 by the governors of the Great Lakes states, it was limited to the city’s existing service area. I wrote here that the approval of Waukesha’s 50 / BizTimes Milwaukee NOVEMBER 13, 2017

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

ADMINISTRATIVE COORDINATOR Sue Herzog sue.herzog@biztimes.com

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

An evening to remember

Waukesha-Milwaukee water deal is a win-win

ACCOUNT EXECUTIVE Molly Lawrence molly.lawrence@biztimes.com

ADMINISTRATION

INTERN REPORTER Maredithe Meyer maredithe.meyer@biztimes.com

COMMENTARY

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

Lake Michigan water request would be good for the entire region. But again, I criticized Milwaukee officials for missing an opportunity to provide the water to Waukesha. Then I got a call from Milwaukee Mayor Tom Barrett. He said the approval by the Great Lakes governors limiting Waukesha’s use of Lake Michigan water to its existing service area removed Milwaukee’s biggest complaint. Therefore, Milwaukee was still interested in providing water to Waukesha, and could do so at a much lower price than the Oak Creek deal, he said. Barrett also said he wanted to do a deal with Waukesha so the water rates paid by its residents could be used to replace lead water pipes in Milwaukee. I was skeptical. I figured Milwaukee had missed its chance. But an agreement for Waukesha to negotiate exclusively with Oak Creek for water expired this year and Milwaukee submitted a competing proposal. Recently, Waukesha officials announced their decision: Waukesha will get its water from Milwaukee, not Oak Creek. Although a blow to Oak Creek, this is a big win for both Milwaukee and Waukesha. Getting water from Milwaukee instead of

ART DIRECTOR Shelly Tabor shelly.tabor@biztimes.com

Independent & Locally Owned — Founded 1995 —

Waukesha will save millions of dollars. Waukesha will save $40 million in construction costs by cutting 10 miles off the length of the supply pipeline and will save millions more by securing lower water rates from Milwaukee. Waukesha residents will pay about $200 less per year and some of the city’s top industrial water users will save $55,000 per year by getting water from Milwaukee. The deal will bring in $3.2 million to $4.5 million in revenue to the City of Milwaukee per year. Barrett plans to use that revenue to replace lead water lateral pipes in Milwaukee. Bigger picture: it’s great to see Milwaukee and one of its suburban communities working together in a mutually beneficial deal. “It is my hope that our partnership will lead to additional opportunities for us and others to work together for the common good,” said Waukesha Mayor Shawn Reilly. n

ANDREW WEILAND EDITOR

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

LILA ARYAN PHOTOGRAPHY

5 MINUTES WITH…

CATHY HARVEY

Chief executive officer, UnitedHealthcare Medicare & Retirement in Wisconsin CATHY HARVEY joined UnitedHealthcare in April to lead its Medicare & Retirement division in Wisconsin, a role in which she oversees the delivery of Medicare plans to about 275,000 seniors and other beneficiaries. UnitedHealthcare has the largest Medicare HMO enrollment in the state, growing from 76,100 in 2012 to 114,000 in 2016. Medicare Advantage plans have proved profitable for companies like UnitedHealthcare. And with about 39 percent of Wisconsin beneficiaries now in a Medicare Advantage plan, the potential for future growth is strong. In a recent interview with BizTimes Milwaukee reporter Lauren Anderson, Harvey discussed her new role and UnitedHealthcare’s growth.

that’s the most you would pay any given year.”

THE EFFECT OF AGING BABY BOOMERS “Our business continues to grow as a result. Nationally, the growth in Medicare Advantage plans over the last five years has been 46 percent, so it’s causing a huge growth in the Medicare Advantage industry. Over 10,000 Americans turn 65 every day. Nationally, it’s a huge movement of people entering Medicare as the baby boomers age in. There’s also a major shift away from traditional Medicare coverage and into Medicare Advantage plans because they offer more predictability on cost and additional benefits. They have a flat out-of-pocket limit, meaning

OPEN ENROLLMENT ADVICE “We had a survey this year: One in four people said going through the open enrollment process was worse than losing their cellphone. It’s something everyone can relate to. So that’s what we try to help people with. What we want beneficiaries to understand is there are three things they should keep in mind as they shop: choice, care and experience. We know that health care is not one-size-fits-all so it’s important to understand your choice. It’s important to check if the current coverage still meets your needs, based on the new benefits and premiums” n

CUSTOMER EXPERIENCE “We have a very large market share here in Milwaukee and people really rely on us … We provide people choice. We have a pretty full array of products that meets their budget needs and their network needs. People like that. We have really superior customer service. We monitor and measure that very closely. We have a very high number in Wisconsin of people who would recommend UnitedHealthcare to their friends. They trust us to help them make the right choice.”

biztimes.com / 51

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