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BOYS & GIRLS CLUBS OF GREATER MILWAUKEE
MISSION
WHO’SWATCHING WATCHINGOUR OURKIDS KIDSAFTER AFTERSCHOOL? SCHOOL? WHO’S
2017 EDITION
The mission of Boys & Girls Clubs of Greater Milwaukee is to inspire and empower all young people, especially those who need us most, to realize their full potential as productive, responsible and caring citizens.
1558 N. 6th Street Milwaukee, WI 53212 (414) 267-8100
boysgirlsclubs.org facebook.com/bgcmilwaukee @bgcmilwaukee
750 $26,808,482 1887
TOTAL EMPLOYEES: ANNUAL REVENUE:
YEAR ESTABLISHED:
SERVICE AREA Boys & Girls Clubs of Greater Milwaukee has 44 locations in the area with more than 43,000 members and serves more than 5,000 kids every day.
FUNDING SOURCES
Publication Date: November 13, 2017 A SUPPLEMENT OF
Contributions ..........................................................44% Grants ........................................................................42% United Way ..................................................................5% Investment Distribution .........................................5% Service & Rental Fees ............................................4%
EXECUTIVE LEADERSHIP
Vincent Lyles President & CEO
34
Susan Ela Board Chair
GOALS
FUNDRAISING/EVENTS
Our vision is to build the community’s social and economic fabric by ensuring the academic and career success of every child that walks through our doors. With the help of community partners, volunteers, generous donors and committed staff, Boys & Girls Clubs of Greater Milwaukee provides after-school and summer programming to more than 43,000 children and teens at 44 locations. Within the safety of the Clubs, children and teens receive academic support, free meals, characterbuilding programs and access to role models. Every child deserves a future of unlimited possibilities.
Boys & Girls Clubs of Greater Milwaukee hosts special events throughout the year to engage the public in our mission and raise funds to support our programming. Events include but aren’t limited to our Annual MVP Gala in May, Celebrating G.I.R.L.S in November, YP Prom, and Lumberjack Brunch at Camp Whitcomb/Mason. All events have ticket and sponsorship opportunities, for more information please visit our website.
VOLUNTEER OPPORTUNITIES
GIVING OPPORTUNITIES
The Clubs have a role for skilled and committed volunteers. Our needs are ongoing, and we are always looking to expand our volunteer roster. We offer one-time and recurring opportunities with projects ranging from Club beautification to literacy activities with Club youth. If you are interested in volunteering or creating a one-time opportunity for your company, please complete the Volunteer Inquiry Form on our website or contact our Volunteer Coordinator at (414) 267-8111.
Making a financial gift, attending a special event, volunteering and including the Clubs in estate plans are just a few of the ways individuals can help give Club members the resources they need to work toward productive futures. Your investment will create a ripple effect in the community as today’s young people become tomorrow’s leaders.
BOARD OF DIRECTORS
★ DENOTES EXECUTIVE LEADERSHIP
Christopher S. Abele
Jack A. Enea
Jerome M. Janzer
Richard R. Pieper, Sr.
John W. Splude
Barry K. Allen
Peter Feigin
Jeffrey A. Joerres
James R. Popp
Mary Ellen Stanek
Bevan K. Baker
Edward A. Flynn
Craig Jorgensen
Robert B. Pyles
Mara Swan
James T. Barry, III
William Fitzhugh Fox ★
Tracey Joubert
David F. Radtke
Alfonzo Thurman
David A. Baumgarten
Alexander P. Fraser
Sarah Wright Kimball
Kristine A. Rappé
Harris Turer
David L. Bechthold ★
John Galanis
Michael Lappin
Bethany M. Rodenhuis
John Utz
Thomas H. Bentley, III
Nan Gardetto
Steven L. Laughlin
Mark Sabljak
Gordon J. Weber
Linda Benfield
David Gay
William R. Bertha
Charles B. Groeschell
Thomas M. Bolger
Bronson J. Haase
Keith R. Mardak
Richard C. Schlesinger
Maureen A. McGinnity
Allan H. Selig
Daniel F. McKeithan, Jr.
John S. Shiely
Elizabeth Brenner
William C. Hansen
Robert L. Mikulay ★
Thelma A. Sias
Brian Cadwallader
Thomas J. Hauske, Jr.
Brian Morello ★
Patrick Sinks
Gregory Wesley Arthur W. Wigchers James B. Wigdale Madonna Williams Scott Wrobbel ★
Tonit Calaway
Jack Herbert
Cory L. Nettles
Daniel Sinykin
James L. Ziemer
Tina M. Chang
Renée Herzing
Keith D. Nosbusch
Guy W. Smith
Anne Zizzo
G. Spencer Coggs
Katherine Hust
Wayne C. Oldenburg
Judson Snyder
Diane Zore
Russell M. Darrow, Jr.
Charles V. James
Guy A. Osborn
Thomas L. Spero
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For more information call or email 414.336.7112 or advertise@biztimes.com To view the 2017 edition of Giving Guide visit biztimes.com/giving
WEARE. ARE.Each Each day after school, thousands kids find safety WE day after school, thousands ofof kids find safety and inspiration their Boys Girls Club. With academic support, and inspiration atat their Boys && Girls Club. With academic support, arts programming, structured sports leagues, technology labs and arts programming, structured sports leagues, technology labs and free meals, there something for every kid the Club. free meals, there is is something for every kid atat the Club.
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» AUG 7 - 20, 2017
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BizTimes Milwaukee (ISSN 1095-936X & USPS # 017813) Volume 23, Number 10, August 7 – 20, 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
4 Leading Edge 4 NOW BY THE NUMBERS 5 IN FOCUS 6 BIZTRACKER 7 JUMP START 8 PUBLIC RECORD 9 BIZ POLL ON MY NIGHTSTAND 10 INNOVATIONS 11 THE GOOD LIFE 12 THE FRANCHISEE
13 News 13 COMMON GROUND ONE OF FEW REMAINING OBAMACARE CO-OPS 15 TALGO BETTING ON MILWAUKEE’S WORKFORCE FOR NEW BUSINESS
16 Real Estate 34 Strategies
COVER STORY
18
Building for the silver tsunami Senior living developers prepare for wave of baby boomers
Special Report
24 Corporate event planning Tips on showing business guests around Milwaukee, information about local team-building activities and an update on the proposed Racine event center.
34 JO GORISSEN 35 SUSAN WEHRLEY 36 KAREN VERNAL
38 Biz Connections 38 NONPROFIT 39 PERSONNEL FILE 40 SBA LOANS 41 AROUND TOWN 42 GLANCE AT YESTERYEAR COMMENTARY 43 FIVE MINUTES WITH...
July 12
Sam Llanas Band
July 19
Naborí
July 26
Willy Porter & Carmen Nickerson
FREE SUMMER CONCERT SERIES Wednesdays 5:30–9 p.m. / July 12 to August 30
LiveAtTheLakefront.com
Rotary Amphitheater at Discovery World, 500 N. Harbor Drive, Milwaukee
Aug 2
Los Ciegos Del Barrio
Aug 9
Mad Rocksteady
Aug 16
Reverend Raven & The Chain Smokin’ Altar Boys
Aug 23
VIVO
Aug 30
Natty Nation biztimes.com / 3
Leading Edge
BIZTIMES MEDIA – Like us
Foxconn chairman Terry Gou and Gov. Scott Walker hold up a memorandum of understanding between the state and the company.
Wisconsin wins the Foxconn derby
Taiwan-based Foxconn Technology Group will build a 20 millionsquare-foot, $10 billion liquid-crystal display panel plant in southeastern Wisconsin, company founder and chairman Terry Gou and Gov. Scott Walker announced in a recent ceremony at the White House. Wisconsin beat out several other states Foxconn considered for the plant, including Michigan, Ohio, Pennsylvania and North Carolina. To win the Foxconn deal, Walker offered the company an incentive package of up to $3 billion. The plant, which is expected to be operational by 2020, will initially employ 3,000 people, with the potential to grow to 13,000. Walker
By Arthur Thomas, staff writer
BY THE NUMBERS Northwestern Mutual Life Insurance Co.’s annual meeting has a
12.9
$
M I L L I O N
economic impact on the Milwaukee area, according to VISIT Milwaukee. 4 / BizTimes Milwaukee AUGUST 7, 2017
said the positions would have an average salary of more than $53,000. The incentive package from the state is tied to the level of job creation and capital investment the company makes. It will have to hire 13,000 people and make the full $10 billion investment to get the entire $3 billion subsidy, Walker said. The incentives are expected to cost the state between $200 million and $250 million per year. The company will be eligible for $1.5 billion in tax credits for job creation, $1.35 billion for capital investments and $150 million from a sales tax holiday. Walker and Gou signed a memorandum of understanding outlining the deal between the company and the state at an event at the Milwaukee Art Museum. The incentives provided by the state still must be approved by the Legislature, and Walker called a special session for lawmakers to review the deal. The announcement of the deal ended weeks of speculation about the project that began when President Donald Trump, during an appearance at Waukesha County Technical College in June, said he and Walker were negotiating to bring a “major, incredible manufacturer” to the state. Trump did not name the company at the time, but the next day
the Associated Press broke the story that Wisconsin officials were in negotiations with Foxconn to build a plant in the state that would employ thousands of people. Walker said the Foxconn facility will be the largest economic development project in the history of the state and could transform the Wisconsin economy, making it a hub of high-tech manufacturing. He said the project will support 10,000 construction jobs over the next four years, and will create “at least” 22,000 indirect and induced jobs throughout the state once operational. The company is expected to make $4.26 billion in supplier purchases annually, with one-third being made in Wisconsin. “Foxconn’s new ecosystem will transform Wisconsin,” Walker said. “In fact, Terry (Gou) and I came up with a name. We call it Wisconn Valley. The region we will call Wisconn Valley will be the new global home to cutting-edge technology and innovation…this is exciting and transformational.” Foxconn operates vast factories in China, where it employs about 1 million people and makes most of Apple’s iPhones, but so far it has not invested heavily in manufacturing in the United States. “This time we go to America, it’s not just to build a factory, but to move our entire supply chain there,” Gou told shareholders in June. n
ARTHUR THOMAS
inf cus
Acres and acres to mow By Arthur Thomas, staff writer PEOPLE WHO HAVE driven past Mount Mary University’s Wauwatosa campus might look at the grassy lawns that dominate the school’s 80 acres and wonder: Who is in charge of mowing all that grass? The task falls to Alyssa Branski and Gina Nommensen (pictured) this summer. The work isn’t a campus job, however. Branksi, a recent University of Wisconsin-Milwaukee graduate, and Nommensen, a UW-Stevens Point student, are working for Briggs & Stratton Corp. as part of a long-running partnership between the Wauwatosa-based manufacturer and the women’s college. Briggs has been testing its products on Mount Mary’s campus for more than 16 years. The company provides equipment and assumes fuel and labor costs. The mowers are equipped with meters to track the length of testing, and measurements like engine temperature are recorded and passed along to engineers. It’s one of several test sites the company has in the area; others, like the Orchard Ridge landfill in Menomonee Falls, offer a chance to test on steeper hills and more rugged terrain. The benefit of the Mount Mary property is that it mimics a residential setting. “Same conditions as what you’ll be cutting at home,” said Andrew Spehert, an engineer in the Briggs engine group. The only difference is most homes don’t have 80 acres to maintain. n biztimes.com / 5
Leading Edge
The latest area economic data.
Wisconsin exports were up 6.5 percent, to
9.02
$
BILLION, during the first five months of the year.
Wisconsin’s
3.1%
unemployment rate is the lowest since October 1999.
Attendance at Summerfest totaled
831,769
this year, representing a 3.4 percent increase over 2016.
Businesses in Wisconsin will save
637
USGA
$
MILLION
on unemployment taxes by 2018, according to the state. Metro Milwaukee home sales were up
2.6%
during the first half of the year. 6 / BizTimes Milwaukee AUGUST 7, 2017
JUMPSTART Rebel Green LLC By Molly Dill, staff writers If fruits and vegetables are washed with just water, it may not remove all of the pesticides and dirt, according to Melina Marcus and Ali Florsheim. “You wash your hands before you eat, so why weren’t we washing our fruits and vegetables with more than just water?” Marcus asked. That’s why the pair created a produce wash to thoroughly clean fruits and vegetables. With colorful retro packaging, the wash is intended to be stored next to the soap on the sink.
LOCATION Mequon FOUNDERS Melina Marcus and Ali Florsheim FOUNDED 2008 PRODUCT Eco-friendly cleaning products WEBSITE rebelgreen.com EMPLOYEES 12 GOAL Get products into more stores
Melina Marcus, co-founder
EXPERIENCE Florsheim is a practicing attorney; Marcus was a journalist
Marcus and Florsheim co-founded Mequonbased Rebel Green LLC in 2008 to better market eco-friendly products like the produce wash. “We thought more people would use natural products if the packaging was more exciting,” Marcus said. “Natural products need great packaging if people are going to buy them,” Florsheim said. “We want to grab that conventional buyer.” Marcus and Florsheim have bootstrapped their business, and Rebel Green has experienced 45 to 60 percent growth each year since it was founded, the pair said. After it gained enough market share in produce wash to put it in the top two nationally, Rebel Green entered, then exited, the crowded reusable shopping tote market before it settled on its household cleaning line last year. Both working moms, Marcus’ and Florsheim’s children have allergies, asthma and eczema, so they wanted to avoid synthetic fragrances and offer a natural, transparent ingredient list on the cleaning line. And this year, Rebel Green added tree-free toilet paper made of bamboo. “Bamboo is completely renewable. It takes (just) 30 to 40 years for trees to grow back,” Florsheim said. Now, Rebel Green’s hand soap and dish soap are its top sellers, of a line of 44 SKUs that includes one of the few U.S. Department of Agriculture-certified organic laundry detergents. The toilet paper is made in China, and the rest of Rebel Green’s products are made at Pak Technologies Inc. in Milwaukee. The products are sold on Target.com, Amazon. com, and in half the Whole Foods stores in the U.S. They’re also in Outpost Natural Foods, Sendik’s Food Market, Metcalfe’s Market and other local stores. n biztimes.com / 7
Leading Edge
THE
PUBLIC
RECORD
PRESENTS:
Waukesha’s expensive water odyssey
2017
By Arthur Thomas, staff writer
Call for Nominations BizTimes Media presents the fourth annual awards program to salute southeastern Wisconsin’s best corporate citizens and most effective nonprofit organizations. The awards will shine a light on excellence in philanthropy and nonprofit leadership. The recipients of the awards will be saluted at a breakfast program on November 2nd, 2017. Nominate the people and for-profit organizations who are making a positive difference in the community by donating their time, talent and treasure. Nominate the nonprofit organizations that are making the region a better place to live, work and play. Self-nominations also are encouraged!
2017 Awards Categories Corporate Citizenship Awards • Corporate Citizen of the Year • Next Generation Leadership • In-Kind Supporter • Corporate Volunteer of the Year • Lifetime Achievement
Save the Date: November 2, 2017
Nonprofit Organizations, Leadership & Support Team Awards • Nonprofit organization of the year (Small & Large Categories) • Nonprofit Collaboration of the year award • Nonprofit Executive of the Year • Social Enterprise
Nominate Today! www.biztimes.com/npawards Nomination Deadline: August 31, 2017
THE CITY OF WAUKESHA’S journey to find a new source of water has been a long and, at times, contentious one. Having received approval from the Great Lakes Compact Council to divert Lake Michigan water, the city is now choosing a supplier and constructing a $200 million pipeline to get water to Waukesha and return it to the Root River. Waukesha will soon be paying millions of dollars per year to buy water from either Milwaukee or Oak Creek, but even before putting a shovel in the ground, the costs are already adding up for the city and its ratepayers. Dan Duchniak, Waukesha Water Utility general manager, said costs are on budget for the application process and he felt the city “did a good job with our expenses.” “That being said, we must remember that this is to address a public health issue and the penalties could have been as high as $10,000 per well per day that we were out of compliance,” he said.
6.3 million:
$
Waukesha’s total cash cost through the entire application process. The state Public Service Commission allowed Waukesha to recover roughly $2.9 million from ratepayers on a regulatory accounting basis in pre-construction and planning costs in a 2012 decision. In a current water rate case, the PSC would allow the recovery of another $2.6 million in expenses from 2013 through June 21, 2016.
505,099:
$
The city’s lobbying expenses for the project. The PSC would not allow Waukesha to recover $62,271 from ratepayers for spending deemed to be lobbying in the 2012 case. In the current case, the PSC agreed to disallow $442,828 at the suggestion of the city after initially declaring a higher amount constituted lobbying.
435,090:
$
Purchase price of parcel the city bought to keep its ground water options open in the event the diversion was not approved.
175,279:
$
Payments to date for the planned outfall site at South 60th Street and West Oakwood Road in Franklin.
11: Trips Waukesha Mayor Shawn Reilly, Duchniak and other city
officials made in the spring of 2016 to make the city’s case to other Great Lakes states. Those trips included four visits to Minnesota, three trips to Chicago and a three-day swing through Michigan, Pennsylvania and Ohio. Total spending for the public outreach efforts totaled $9,197, including:
7,507.39 for lodging and travel
$
SPONSORS:
717.99 for meals
$
711.71 for parking, ground transportation and mileage
$
8 / BizTimes Milwaukee AUGUST 7, 2017
BIZ POLL
on my nightstand...
A recent survey of BizTimes.com readers.
With Wisconsin’s unemployment rate at 3.1 percent, is your company having trouble filling job openings?
STEVE MAYER
YES: 63%
Managing partner Franklin Place Capital
“ Breaking the Habit of Being Yourself: How to Lose Your Mind and Create a New One”
NO: 37%
By Dr. Joe Dispenza STEVE MAYER doesn’t watch television. In his free time, he prefers to read books that add value and teach him something. That’s why Mayer, managing partner at Milwaukee investment bank Franklin Place Capital, likes Dr. Joe Dispenza’s 2013 book, “Breaking the Habit of Being Yourself: How to Lose Your Mind and Create a New One.” “It combines a mindfulness, meditation, brain with quantum theory and living in the now versus the past,” he said. “It sounds kind of esoteric, but it’s a good combination of evolution, the brain, how we operate,
ego, all those things that can affect you when you’re conducting business and how to get past all that stuff when you’re trying to negotiate.” Mayer recommends other executives read the book to gain a new understanding of how taking a step back and being an observer without passing judgment can make a difference in personal or business interactions. “Many times you don’t know how you’re coming across to the other person or even what the other person is thinking because you don’t have perspective or objectivity,” he said. n
Keep Your Success Moving Forward! Wisconsin Fast Forward is now accepting Worker Training Grant applications for ALL industries! • Apply year-round no matter your industry • Expand your skilled workforce • Provide your workforce with the skills needed to succeed
The application process is easier than ever – APPLY TODAY!
WisconsinFastForward.com
biztimes.com / 9
Leading Edge
INN
VAT I
Untangling health care costs, one cord at a time
PHOTO COURTESY UWM
NURSES HAVE ASSIGNED an array of nicknames to the web of medical lines, cords and tubes stationed by a patient’s bedside. Snake pit. Spaghetti. Rat’s nest. With no universal system to sort the numerous cords and tubes, they frequently get twisted and disorganized.
UW-Milwaukee Ph.D. student Lindsey Roddy is developing a new product to organize the web of medical lines, cords and tubes by the bedsides of hospital patients. Nurses often turn to makeshift solutions, like using tongue depressors and medicine cups taped to the bed.
For health care workers, the problem of discombobulated cords can range in severity from a time-consuming nuisance to an occasional tripping hazard to something far more dangerous. Lindsey Roddy, a Ph.D. student studying nursing science at the University of Wisconsin-Milwaukee, is seeking to untangle the web. Having worked in intensive care for four years, Roddy has seen these issues play out. “I was being trained on a cardiac bypass patient who had just had open heart surgery,” Roddy said, recalling one particularly dicey situation. “Everything started to crash and we couldn’t figure out what was going on. We were watching their blood pressure drop and we were ready
10 / BizTimes Milwaukee AUGUST 7, 2017
NS
to call a code, bringing everyone in and doing compressions, when we realized there was blood going into the bed. We realized ‘OK, it’s the lines’ … Something was unscrewed and the life support medication was running into the bed. Thankfully, we found that before something happened.” If she had witnessed that, Roddy figured, surely other health care professionals have, too. The opportunity to develop a solution came at UWM, where Roddy happened to be placed with professors who are pursuing their own innovation projects in the health care sector. Roddy was asked whether she had any ideas to contribute. Her idea was born – a loop that attaches to a bedrail or solid surface, designed to organize up to 15 lines and allow patients to move freely. Roddy submitted her idea to the university’s research foundation. Soon, she also became involved with the UWM Student Startup Challenge, a branch of the National Science Foundation’s Innovation Corps program. A provisional patent was filed in January and a group of UWM engineering students are developing a prototype. The prototyping process is being helped by a recent $2,400 grant from I-Corps. When it comes to competition, Roddy said there is only one other product that’s made it to the bedside, and it isn’t particularly mobile. As she moves toward the goal of ultimately getting her product into hospitals, Roddy is still considering how the product will be produced and at what price point. She said the process would be helped by having a manufacturing and distribution partner that’s already established in the health care sector. “So far we’re on the right track,” Roddy said. “This is always a risky business, bringing something to fruition. I’m just seeking the advice of my business advisors … finding information from the right people and trying to build this case. We’re not quite at a point where we would be pitching to
investors to get investments, but we’re working with the research foundation on licensing as we speak.” As part of her research, Roddy interviewed 40 health care professionals to determine whether the problem is widespread. It is. Asked about the cord problem, a majority of frontline health care staff said they trip over lines on a daily basis. Of 30 frontline staff, 80 percent said they had experienced “close calls or safety events,” meaning a line pulled out or they tripped on a line, and 30 percent of those said they had witnessed a life-threatening safety event. The surveyed health care professionals also said they spend an average of 30 minutes per shift organizing lines. Currently, Roddy said, most nurses create makeshift solutions to keep the cords sorted. They turn to tongue depressors and medicine cups taped to the bed, or stickers as labels – jerry-rigged solutions that frequently break and don’t allow for much patient mobility. “We work with what we have and we make things,” Roddy said. Roddy envisions how her simple device could achieve cost reductions. What if that half hour nurses ordinarily spend organizing cords could be used for something more productive? “We spend the most on health care and of all the first-world nations, we have the poorest safety, the poorest quality and value,” Roddy said. “So, how can we fix this? What can we do to make this better? You have to be innovative.” n
LAUREN ANDERSON Reporter
P / 414-336-7121 E / lauren.anderson@biztimes.com T / @Biz_Lauren
Hansen Reynolds managing partner embraces ‘legal geek’ status
W the
Good LIFE
By Maredithe Meyer, staff writer
hen 8-year-old Jessica Mederson voraciously read her father’s “John Carter of Mars” comic books and sat on his lap to watch the original “Star Wars” films, she never imagined that her future career as an attorney would allow her to grow in her love for sci-fi. Years later, Mederson is the managing partner of Hansen Reynolds LLC’s Madison office. She started at Hansen Raynolds’ Milwaukee office and still works in Milwaukee once a week with many of the law firm’s local clients. Mederson recently presented for the third time at Comic-Con International: San Diego, the largest comic and pop culture convention in the country, which was held from July 19 to 23. At this year’s Comic-Con, she and California e-discovery attorney Joshua Gilliland moderated the panel “Judges on Star Wars,” which featured six distinguished judges from around the country discussing various legal
CONNECT WITH INTERNS
issues presented in the “Star Wars” world, including light saber ownership rights and the legal rights of droids and clones. “I am never as popular as I am at Comic-Con,” Mederson joked. “Its cool to take my legal interests and combine them with something a little bit more lighthearted.” Speaking in front of 500 “Star Wars” fans for the panel was enough to give Mederson the jitters, but after 15 years of practicing law, she said she values the opportunity to work closely with the panel’s judges – especially in a setting outside the courtroom. Mederson said she values Hansen Reynolds’ continued support of her “quirky” passion. Since her Comic-Con debut, Mederson has connected with other legal professionals and prospective clients who appreciate her and share a love for sci-fi. “Lawyers are often seen as inhuman, and I think because of the fact that I do have this interest, clients are able to relate,” Mederson said. n
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LIST YOUR INTERNSHIPS
FIND YOUR INTERN
Get started at InternshipWisconsin.com
InternshipWisconsin.com biztimes.com / 11
Q Leading Edge
the
FRAN C H I S E E
Ron Stokes, president and chief operating officer of Roaring Fork.
ROARING FORK RESTAURANT GROUP QDOBA MEXICAN EATS
THE FRANCHISE: Milwaukee-based Roaring Fork Restaurant Group operates 55 Qdoba Mexican Eats locations in Wisconsin, Illinois and Iowa
“There are many stories like that,” Stokes said. “We are extremely intentional about helping people grow within the business and we provide the training and tools for that growth.”
1998 Roaring Fork Restaurant Group founded by Mike Pranke.
2005 Ron Stokes was running his own recruiting company in Portland when he heard Roaring Fork was looking for a director of operations. At the time, Roaring Fork had 15 Qdoba locations.
2006 Roaring Fork’s senior regional manager, who oversees eight stores, started as a cook in 2006. Finding franchise owners has been difficult, especially now, with the unemployment rate so low, Stokes said. People are often promoted from within the company. 2017 Roaring Fork will open a new concept, fast-casual restaurant Grate Mac & Cheese, in Menomonee Falls on Aug. 29. The Grate restaurant will be corporately owned, with no plans at this point to franchise it out, Stokes said. “If that goes well, we plan on growing the concept,” Stokes said.
Roaring Fork celebrated its 50th location in July in Stevens Point.
Roaring Fork also plans new Qdoba locations in Mukwonago in the fall and Johnson Creek in mid-2018. THE FRANCHISEE FEE Qdoba franchisees invest $500,000 to $750,000 to start their business. By comparison, it costs a Chick-fil-A franchisee $10,000 when they sign their operator’s agreement.
12 / BizTimes Milwaukee AUGUST 7, 2017
“I wanted to get back to the Midwest and I had been in Milwaukee at another point in my career and fell in love with the city and its people,” Stokes said.
Roaring Fork is the largest and fastestgrowing Qdoba franchisee in the United States, as well as the fastest-growing restaurant group in southeastern Wisconsin. It employs about 1,000 people in the state, including 20 at its headquarters
WISCONSIN QDOBA LOCATIONS
BizNews
Mahaffey
Common Ground navigates uncertainty as one of few remaining Obamacare co-ops By Lauren Anderson, staff writer ON HER HOUR-AND-20-MINUTE COMMUTE from Verona to Brookfield, Cathy Mahaffey often finds herself considering what it would be like to work in an industry with a little more predictability than hers. “I know nothing is certain in life, but sometimes I wonder what it would be like to work in a place with some certainty,” Mahaffey said. Mahaffey is certainly committed to her work as chief executive officer of Brookfield-based Common Ground Healthcare Cooperative, a nonprofit, member-governed health insurance co-op that launched in 2014 under a provision of the Afford-
able Care Act, which Republicans in Congress now plan to repeal. It remains to be seen what, if anything, Republicans replace the Affordable Care Act with, which creates uncertainty for the health insurance industry. Certainty has been hard to come by in Common Ground’s three years of operation. “We’re extremely nimble and flexible and really fast-moving,” Mahaffey said. “We make decisions thoughtfully but quickly. We’re small, so we’re able to do that. We have really had to learn how to be able to quickly assess a
situation and quickly adapt.” After three years of losses, that kind of quick, strategic approach to decision-making could be proving to turn the tide for the co-op, which posted a profit in the first quarter of this year. Today, it’s only one of five health care co-ops nationwide still in business, down from the original 23.
The early days Long before the current debate over health care reform, before the Affordable Care Act even went into effect, a coalition of commu-
nity members in Milwaukee was looking for affordable health care solutions for small employers and individuals. When the landmark health care law passed in 2010, bringing with it a provision for the creation of nonprofit member-governed health insurance co-ops, it aligned with the group’s mission and Common Ground was born. The group brought in some experts to help with the effort and applied to become a co-op. Drawn to the mission of doing “the right thing for the right reasons,” Mahaffey – whose background includes leading Farmers’ Health Cooperative of Wisconsin and Madison-based cooperative The Alliance – signed on in September 2011 as chief operating officer. In February 2012, Common Ground was awarded a $107.7 million loan from the federal government and began preparing for its Jan. 1, 2014 launch. Mahaffey became CEO later that year. “Not only were we starting a health insurance company from scratch, which is hard enough, but we were doing it in a very new environment called the Affordable Care Act environment, where not everyone was sure what the rules were ultimately going to be,” Mahaffey said. “... It’s really hard to price a set of products when you don’t know who your customers are going to be. You don’t have any data on your customers …. We had a lot of good people around the table and made as informed decisions as we could have.” biztimes.com / 13
Setbacks In the early days, the co-op received new guidance weekly from the federal government, while the exchange launched in a rocky rollout riddled with IT glitches. On top of that, Common Ground had to change its course early on by bringing all of its services in house after a third party administrator failed to provide its promised services. With 25,000 members that first year, membership far exceeded Common Ground’s initial projections of 10,000. “A lot of people needed to buy health insurance,” Mahaffey said. “The high-risk pool ended in Wisconsin – all of those people certainly needed health insurance. Then folks who had been uninsured before and they learned that they qualified for a subsidy, and now it’s affordable for them. And there was the Medicaid shift in eligibility …. A
lot of available market share.” It also soon became apparent that the individual mandate penalty lacked teeth, and healthy people – who it was hoped would buy insurance to help offset the cost of members with higher medical needs – sat out of the exchange. And those who did sign up for insurance had higher needs than expected. Co-ops launched with the expectation of receiving “risk corridor funding” from the federal government, but that didn’t come through in 2015. Common Ground received only 12.6 percent of what it expected. Meanwhile, membership continued to grow at Common Ground, swelling to 36,000 in 2015. “Insurance companies were promised the ability to offset some of this pent-up demand and folks with critical medical needs,” Mahaffey said. “We need to accept them and provide comprehensive
coverage, but we needed help to get through. That’s when co-ops started to close.”
Adjusting products, premiums In 2016, Common Ground made a decision to eliminate one of two product lines on the individual market – a broad network option – and raised premiums. Membership dropped to 17,000. In September 2016, the co-op received a cash infusion of $30 million from an undisclosed party. “That was absolutely necessary for our continued survival,” Mahaffey said. In the first quarter of this year, Common Ground saw net profit of $2.7 million. Mahaffey likewise expects a “good showing” in the second quarter. “We’ve been working really hard to make good business decisions,” she said. “It’s been a chal-
lenge when it’s our only business line …. We’re trying to fight the good fight to make sure people are insured. But it’s certainly not easy. We’re really needing Congress to do something because I don’t think it’s sustainable the way it is.” Namely, Mahaffey said, insurance companies need certainty regarding cost-share reduction payments, funding to get through this period of instability and impactful enforcement of the individual mandate. Whether Congress can pass meaningful reform has yet to be seen, but Mahaffey stressed something has to change, either at the federal or state level. “There are different winners and losers in any scenario,” Mahaffey said. “Before the ACA, there was a set of winners and losers. Now with ACA, there’s a different set. It’s hard to make it work for everyone, but some things can be done now to help more people.” n
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Antonio Perez, Talgo Inc. president and CEO, talks with Milwaukee Mayor Tom Barrett.
ABOVE: Los Angeles County Metropolitan Transportation Authority trains to be overhauled by Talgo in Milwaukee.
Talgo betting on Milwaukee’s workforce for new business By Arthur Thomas, staff writer THE FACT THAT TALGO INC. RETURNED to Milwaukee is reason enough for city leaders to celebrate. So, too, is the fact it will bring dozens of jobs to the Century City site on Milwaukee’s northwest side. But the real reason for celebration is the longer-term prospects for the Spanish train maker to establish a new line of business in the city. Talgo is overhauling trains from the Los Angeles County Metropolitan Transportation Authority’s Red Line at the facility. The work involves replacing much of the trains’ internal systems, including propulsion, braking, communication and automatic train controls, said Ferran Canals, Talgo project manager. The nearly five-year, $73 million contract calls for Talgo to overhaul 38 trains initially and there is an option for another 36. Antonio Perez, Talgo president and chief executive officer, said while the 75-year-old company has long built and serviced trains, this contract marks the first time the company is doing maintenance on equipment not manufactured by Talgo. “This is a new line of work,” said Department of City Devel-
opment commissioner Rocky Marcoux. “They’ve got a lot riding on this. This is a big bet for Madrid to enlarge their business. If this contract doesn’t go well, they’re not going to get any more.” Canals said big, high-speed rail projects may come along only once every 10 years and there are often six or seven companies in the running. But there are four or five major train overhaul projects up for bid each year, he said, and there are usually only two or three companies bidding on them. “There are plenty of projects,” Canals said. Talgo officials pointed out there is plenty of room in the Century City facility to house more work beyond the Los Angeles contract and that is what gives city leaders hope the company’s presence will grow beyond the 40 initial jobs. “They could have hundreds of people working here if they get those contracts. That’s what’s exciting about it,” Marcoux said. Of course, Talgo, Milwaukee and Century City have combined to create great expectations before. During a recent open house, Mayor Tom Barrett said a four- or five-hundred-page novel could be written
about Talgo’s history in the city. “It would start with hope, anticipation, joy, ecstasy,” Barrett said. “It would turn to heartbreak and anger, it would turn to litigation; it would then turn to trust and friendship and redemption and hope, and it would have a happy ending.” Talgo was selected to build trains for a high-speed rail line between Milwaukee and Madison, but Gov. Scott Walker cancelled the project, fulfilling a promise he made during the 2010 gubernatorial campaign. The company sued the state and the two sides eventually settled for nearly $10 million. Talgo ended its operations in Milwaukee in 2014. “We’ve been able to take what was a very bitterly disappointing story for some people, for others a joyful story to pull the rug out from under a company that had a signed contract, but we were able to turn that around,” Barrett said. Perez said the company was pleased to be back and had a great experience with Milwaukee and its workforce. “We are committed to stay here at least five years and we expect many more,” he said. Canals said the company will
primarily be looking for electricians and the jobs will be at a slightly elevated skill level. “The good thing is we did hire certain electricians in the past for the first project and we’ve been reaching out to them and some of them are willing to come back,” he said. “We already know people here. It’s not like stepping into a brand new city and where do we start.” Alderman Khalif Rainey, who represents the Century City area, said Talgo’s return is desperately needed. “Today represents promise. It represents hope,” Rainey said. “I hope this is a demonstration to others within the city of Milwaukee that this can take place right here on the north side of Milwaukee.” He envisioned a future where the amount of work being done at Century City causes traffic jams on West Capitol Drive. To make that vision a reality, the city will have to find more companies for the Century City site, starting with the speculative building constructed at the north end of the property by General Capital Group LLP. The 53,000-square-foot facility was completed last year and while Marcoux said there has been interest, the city hasn’t found the right fit yet. “A lot of it right now has been the jobs coverage,” he said. “It’s getting a company that’s going to provide a significant number of employees.” Marcoux and other city leaders believe the area around Century City has an advantage over suburban sites and it is the same one that brought Talgo back to Milwaukee. “There’s a scarcity of labor in the suburbs,” he said. “We have the labor force. I think more and more people are putting two and two together.” n biztimes.com / 15
Real Estate
@BIZTIMESMEDIA – Real-time news
LEFT: The 411 East Wisconsin Center in downtown Milwaukee sold in July for $124.6 million to a Chicago-based firm. RIGHT: Chicago-based real estate investment firm Bentall Kennedy and Warba Bank, a Kuwaiti public shareholding company, paid $66.5 million for the ManpowerGroup corporate headquarters building in June.
More money, out-of-state owners invested in Milwaukee skyline
ANDREW WEILAND
OUT-OF-STATE INVESTORS now own 50 percent of the downtown Milwaukee skyline, and they are paying top dollar for office properties there, according to a JLL study.
16 / BizTimes Milwaukee AUGUST 7, 2017
Last month, a Chicago-area real estate investment firm paid $124.6 million for the 30-story 411 East Wisconsin Center building on East Wisconsin Avenue in one of the biggest deals in the city’s history. The building’s assessed value is $92.4 million. The sales price was almost 70 percent higher than what Stamford, Connecticut-based Five Mile Capital Partners LLC paid for the office building in 2014, when the
group bought it for $74.3 million and essentially flipped the property with a $17.3 million makeover to the building’s interior and attached parking structure. Since early 2016, the downtown Milwaukee market has seen several other large office buildings change hands. In June 2016, the Chase Tower, a 22-story office building at 111 E. Wisconsin Ave. in downtown Milwaukee, sold for $30.5 million to a Southfield, Michigan-based real estate investment group. The building had an assessed value of $28.8 million at the time of the sale. Also last year, the 34-story 100 East Wisconsin office tower downtown was sold to Santa Monica, California-based Hertz Investment Group for $78 million as part of a four-property portfolio deal. The building had an assessed value of $72.5 million at the time of the sale. Chicago-based real estate investment firm Bentall Kennedy and Warba Bank, a Kuwaiti public shareholding company, paid $66.5 million for the ManpowerGroup corporate headquarters building at the Schlitz Park complex in
JUNEAU SQUARE, 622 N. CASS ST., MILWAUKEE SITUATED BETWEEN DOWNTOWN MILWAUKEE’S two newest office towers sits Juneau Square, a three-building complex that includes two office buildings and a parking structure. Juneau Square North is a nine-story, 163,600-square-foot building that was built in 1962. It connects to a four-story, 111,436-squarefoot office building constructed the same year. The city of Milwaukee assesses the total property at $12.5 million. The land the buildings sit on is assessed at $7.1 million, making it more valuable than the buildings (assessed at $5.4 million) on the property. The building sticks out compared to its newer
surroundings, including the 17-story office tower at 833 E. Michigan St, completed by Irgens earlier this year and the new 32-story, $450 million Northwestern Mutual Tower & Commons building. U.S. Bank owns the Juneau Square complex and is fully utilizing both buildings, according to Joseph Ullrich, director of real estate leasing for U.S. Bank. Despite the buildings’ shiny new neighbors, there are no plans to redevelop the valuable property, he says. “We remodel the interior space as needed, and overall the buildings are functional for us,” Ullrich said of Juneau Square. “I don’t see anything changing in that regard.” n
downtown Milwaukee in June. The building has an assessed value of $59.3 million. “I know we are doing something right when out-of-state investors are investing in our market,” said Marnie Noel, vice president of the Milwaukee office of JLL. For many years, tenants drove the downtown Milwaukee office market, asking for rate reductions and high tenant improvement allowances due to the significant amount of office vacancy. But now, for a variety of reasons, upward pressure is being placed on downtown office space rents, brokers say. Those reasons include: the construction of the new 17-story office building at 833 E. Michigan St.; improvements to the 20-story office building at 250 E. Wisconsin Ave.; the conversion of some lower-class office buildings to other uses; the lease-up of lower priced office spaces in former industrial buildings; and the high-priced sale of class A buildings to out-of-state buyers that are seeking a return on their investment. According to the report from JLL, investors that purchased “premium office buildings” in downtown Milwaukee during the past 18 months have increased rents by an average of 9 percent, to an average of $27.08 per square foot. Bill Bonifas, an executive vice president at CBRE’s Milwaukee office, said according to CBRE’s most recent reports, office vacancy downtown is up a bit, but landlords are optimistic because rents are starting to increase. According to the latest data from Xceligent and the Commercial Association of Realtors, the area’s office market absorbed 100,371 square feet of space during the second quarter, down from 127,749 square feet a year ago, but the highest amount of absorption since the third quarter of 2016. The area’s office space vacancy rate has dipped from 17.2 percent a year ago to 16.5 percent. “If (a real estate investor comes) in from Chicago to (purchase) a building (in Milwaukee) that is 22 percent vacant, you clean it up and give corporate America
what they want, which is what you could argue the previous owners of 411 did; then you don’t care if the rents are up or not,” Bonifas said. “But the fancier the building, the more people will pay. And most buyers now are looking at the fundamentals.” Bonifas believes within the next 24 months, most downtown Milwaukee office space rents will increase 5 to 10 percent, with the higher quality buildings charging steeper rents. And while the rent increases won’t be welcomed by tenants, the increases will help the new construction by putting older buildings and converted industrial space on a more even playing field with the higher rents of the newer spaces, Bonifas said. “In the old days, you could renew or go to Schlitz Park or Summit Place (for lower rent opportunities),” Bonifas said. “For many larger users, those options are not available. Rents will increase and they will start to price off new construction like other markets do.” Another trend that will continue is the demand for real estate by national and international investors who are attracted to major markets such as New York, Chicago and Los Angeles, but are being priced out of those tier one markets and are looking to the suburbs or secondary or tertiary cities, like Milwaukee, Bonifas said. “Milwaukee is on the radar of national and international investors now more than ever,” Bonifas said. “In addition, the office market and economy are generally robust here.” n
FOXTOWN
PERSPECTIVE RENDERING (VIEWING SOUTHWEST)
The owner of Fromm Family Foods LLC is proposing a $50 million development on 17 acres of blighted land south of Mequon Town Center that would include the restoration of a historic brewery from the 1800s. The project, called Foxtown, also includes five mixed-use buildings with ground level retail and upper level office space, an extended stay hotel for corporate use, 48 luxury apartments, two breweries and 23 condominiums. The phased development is slated to open in stages from mid2018 to 2020, pending city approval. DEVELOPER: Thomas Nieman, owner of Fromm Family Foods LOCATION: South of Mequon Road, along Industrial Drive COST: $50 million
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STORY COVER
A senior living development planned on the East Side of Milwaukee.
18 / BizTimes Milwaukee AUGUST 7, 2017
e h t r o f g n i Build
R E V L I I S M A N U TS r a p e r p rs e p o l e v e d g n i v i l ers r m o o i o n b e S by a b f o e f o r wa v
e
BY CORRINNE HESS, staff writer
In June, Capri Communities LLC filed plans with the Village of Menomonee Falls to build a 226-unit senior living facility adjacent to Grace Lutheran Church & School where residents will be offered options ranging from independent living to memory care. The development is in addition to the 321 units Brookfield-based Capri announced it would be adding in Germantown, Port Washington and the East Side of Milwaukee since January, and the 90-unit Brookfield building the company acquired for $11.2 million in May. biztimes.com / 19
STORY COVER
All told, Capri Communities, which was founded by James Tarantino in 1992 and operates as Capri Senior Communities, has added 637 senior living units to its portfolio this year. But the company is not alone. Senior living operators across southeastern Wisconsin and the country are ramping up their expansion efforts as the oldest baby boomers are just beginning to need the services their companies can provide. “Over the last three years, our organization has changed a lot,” Tarantino said. “The silver tsunami has reached us.” And many of the facilities elderly people are moving into today have far more amenities than the nursing home your grandparents lived in. “When we started, people thought of our buildings as a nursing home,” Tarantino said. “Now, as people in their 70s look at how they want to spend the rest of their lives, they want more.” The idea of giving seniors more than a bed and three square meals a day has resonated with
Tarantino and other operators. Today’s senior living complexes are a hybrid of luxury apartment, four-star hotel and health care facility. West Allis-based Heritage Senior Living LLC, which has 14 locations throughout Wisconsin, offers multi-sensory Snoezelen rooms, which utilize light, sound and touch to stimulate the brain. Amenities offered in new developments include wine rooms, heated therapy pools, salons and spas, bocce ball courts, putting greens and common areas where residents can host holiday parties and book clubs. When Eden Prairie, Minnesota-based New Perspective Senior Living opened its $30 million, 135-bed senior living facility in August 2016 in Brown Deer, it included a pool table, a library, a Starbucks and a pub, where residents are served two free drinks a day. The company also has local facilities in Brookfield, Mequon and West Bend.
Building boom
LILA ARYAN PHOTOGRAPHY
Since the end of 2015, Milwaukee, Ozaukee, Waukesha and Washington counties have seen 900 new senior living units enter the market, which is a 6 percent increase over the past 18 months, said Beth Mace, chief economist and director of outreach at the Annapolis, Maryland-based National Investment Center for Seniors Housing & Care. Milwaukee is on par with the national rate of growth for new senior housing units, which is also about 6 percent for the same timeframe, Mace said. Mace anticipates the number of units coming
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20 / BizTimes Milwaukee AUGUST 7, 2017
Senior
online over the next few years will continue to grow as the baby boomers age. “Today, most residents were born in the mid1930s; the baby boomers were born between 1946 and 1964, so we are not even there yet,” Mace said. “Supply is a good thing. It brings new products to the market that can make seniors more physically active and social.” Area contractors have noticed the uptick, as well, with some builders saying senior living facilities and new industrial building projects will continue to sustain the construction boom in the area once larger projects such as the Milwaukee Bucks arena are complete. “(Senior living) is having an impact on our industry – and a positive one, I may add,” said Dan Bukiewicz, president of the Milwaukee Building & Construction Trades Council. “It is hard not to notice the number of senior housing types of buildings that are going up in the area. These facilities have more complex needs, systems and codes than a typical housing project. The union building trades are best suited to meet all of the requirements for these types of facilities. They are also helping provide the opportunities that are needed for many to start a family-supporting career in the trades.” Since the wave of expansion began at the end of 2015, the occupancy rate at Milwaukee-area senior living facilities has dropped slightly, from 92.4 percent to 90 percent. Occupancy rate is not a concern until it is in the mid-80s, Mace said. The Milwaukee area hit an alltime low in mid-2013, at 87.7 percent, she said. The largest senior living provider in the state, Heritage Senior Living, opened a 124-unit location in Delafield at the end of March and broke ground on a 136-unit property in Kimberly in July. Next year, the company will open a senior living facility in Muskego with 100 units, giving Heritage a total of 360 new units in two years. Milo Pinkerton, founder of the company, said the decision to expand was based on market studies. “We have some other areas we have studied, but have not purchased the land yet,” said Pinkerton, an architect by training who also owns MSP Real Estate Inc. and MSP Development Co. Inc. “That will be a 20-year run of higher demand that has not even taken off yet,” Pinkerton said, adding that he anticipates the baby boomers will begin needing assistance in 2022. “I don’t think we’ve overbuilt the market. Twenty years from now, maybe we’ll be overbuilt like the apartment market is today. I’m hoping they will have a cure for Alzheimer’s – but I’ve already designed for that.” In addition to the large operators like Capri and Heritage opening new locations, senior living facilities offering the full spectrum of independent care to memory care are planned or have already opened in Franklin, Sussex, Brookfield and Glendale. Even Drexel Town Square, the mixed-use de-
velopment in Oak Creek that boasts restaurants, retail and high-end apartments, has carved out a space for seniors. Minnetonka, Minnesota-based senior living apartment developer The Waters Senior Living Management LLC purchased 2.5 acres in the development to build a senior living facility with up to 140 apartments. The first phase of the St. Camillus expansion project in Wauwatosa is expected to be completed in November. It includes a 72-unit assisted living building specializing in dementia care and a 50-unit Jesuit community house for the Order of St. Camillus. Phase two includes a proposed new east tower independent living building that is currently working its way through the city’s approval process. Saint John’s on the Lake on Milwaukee’s East Side is planning a third, 22-story tower on the corner of North Prospect Avenue and East Kane Place that will serve the 74 residents living in the skilled nursing assisted living portion of the community. Renee Anderson, president and chief executive officer of Saint John’s, who has worked at the company for 21 years, said how Saint John’s works with residents has changed over the past two decades. “We have intentionally shifted from a culture of serving our residents to partnering with them to ensure that the services and care we provide are meeting their needs and desires,” Anderson said. “We have residents on our board of directors and serving on committees to actively do work on behalf of the organization. I can’t imagine how they want to live. They know how they want to live.” Anderson said that shift happened around 2000 and has continued to progress. As far as needing more space, Anderson said since Saint John’s opened its residence tower in 2011, the waiting list has increased. After the construction of the third tower, Saint John’s, which is landlocked, will not be able to expand in that location again, she said.
Increased competition Even non-senior living operators are dipping a toe into the business. High-end Milwaukee multi-family housing developer Mandel Group Inc. is incorporating senior living into some of its newer projects. Mandel’s Dunwood Commons project in Fox Point includes an 80-bed memory care facility at the former Dunwood Elementary School site. The memory care facility will be run by a senior living operator. Mandel also in November announced a $75 million proposal in River Hills that includes a 400-unit housing development at the 53-acre Eder farm property along Brown Deer Road. The proposal included two senior living facilities totaling up to 175 beds. “We aren’t actively developing senior-only facilities right now, but are working with a lot of (senior living facility) developers who have been
SINCE THE END OF 2015, THE MILWAUKEE AREA HAS SEEN
900
NEW SENIOR LIVING UNITS ENTER THE MARKET.
BABY BOOMERS WILL BEGIN NEEDING ASSISTANCE IN
2022.
THE AVERAGE PRICE TO RESIDE IN A SENIOR LIVING COMMUNITY IN THE MILWAUKEE AREA IS
$3,063 A MONTH.
biztimes.com / 21
LILA ARYAN PHOTOGRAPHY
STORY COVER
at this kind of work for a long time,” said Robert Monnat, a partner at Mandel Group. “Given the demographics, we’re committed to meeting the need for the wide variety of senior living settings, the demand for which is growing weekly. Currently, we’re satisfied with partnering with qualified parties; however, in the future we haven’t ruled out actively developing them ourselves.” Pinkerton said he always welcomes more competition and believes choice is good for everyone. But he cautioned the business is not for the faint of heart. “It takes a lot of capital to start from scratch, to go through construction and to fund the shortfall during lease up,” Pinkerton said, estimating it costs $150,000 to $200,000 to start a new facility. “This is a business operation that is open 24-7 and takes many, many years of refinement to make successful. Frankly, I would not recommend it to a lot of people.” In addition to the new construction, there have also been many recent acquisitions of senior living
facilities, which will likely continue, Mace said. Institutional investors began showing interest in senior living facilities after California’s state public pension system, CalPERS, became a large investor, Mace said. Today, three of the country’s largest health care real estate investment trusts, Toledo, Ohiobased Welltower Inc., Irvine, California-based HCP Inc. and Chicago-based Ventas Inc., are actively investing in senior living facilities, which is why there has been so much acquisition activity, Mace said. Typically in these acquisitions, the property sells for an average price of $175,000 per unit, Mace said. Locally, Welltower sold the Harbour Village senior living community in Greendale to a New York-based firm for $51 million in March. Welltower has five properties in the Milwaukee area. The average price to live in a senior living community in the Milwaukee area is $3,063 per month. The national average is $3,800, according to Mace. The price covers housing, food, utilities, taxes, laundry and some level of care. Memory care units cost more. Units are private pay. When the individual’s money is depleted, Medicaid, the government health insurance program for the poor, does not typically cover the costs other than for some select services, and reimbursements vary. If a resident can no longer afford the facility, he or she has to move to a lower cost option. Tarantino, who has family members at many of the Capri facilities, said he has developed a
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number of affordable housing developments, but admits it is a challenging dynamic of the business, especially as the life expectancy rate gets longer and the cost of care at the end of a person’s life is higher.
Workforce shortage Another challenge for operators is finding enough people to care for residents. Heritage has 610 employees in Wisconsin and 370 in the greater Milwaukee area. Seven years ago, Capri had 50 employees. Today, it has 550 to 600. The business has changed. It is more professional and the competition has also increased. “Innovation is not going to replace staff, so we really try to focus on finding the right people and then figuring out how to retain them,” said Pierre Verger, vice president of operations for Heritage Senior Living. “Taking care of seniors every day, for 40 hours a week, is not an easy job.” While speaking at a University of Wisconsin-Madison alumni event several years ago, Pinkerton met Verger. Verger had a health care background in France, which impressed Pinkerton, and the two became friends. About two
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years ago, Verger moved to the United States to work for Heritage and began using some of the employee retention tools he used in France. That includes daily flash trainings when caregivers come into the building. “Every day, for 10 to 15 minutes, it is a way to connect with staff and have contact with them,” Verger said. “Competitors have been very creative in what they can offer. We don’t want this to be a two-year job, but a life.” At Capri, Tarantino has started a youth apprenticeship program. Capri is working with several school districts, including Cedarburg, Grafton, Port Washington, Menomonee Falls and Random Lake, to introduce young people to several of the positons the company has to offer. “We’re not only in health care, we are in dining and food service, management, maintenance, asset management and construction, so for a young person there are a lot of different career tracks to get acquainted with,” Tarantino said. The company is also working with workforce development groups in Ozaukee and Waukesha counties to connect with people interested in getting a certified nursing assistant license. “It is hard to find people that have a caring nature,” Tarantino said. “We want to attract people not only as a place to work, but as a life’s mission.” n biztimes.com / 23
Special Report
Paddle Tavern boats travel along the Milwaukee River, stopping at bars on the way.
Escape the Room Milwaukee, located on East Erie Street in the Third Ward.
Put your heads together Team building activities can encourage trust and collaboration By Maredithe Meyer, staff writer IMAGINE THAT YOU AND 10 OTHER PEOPLE are trapped in a small room with 60 minutes to solve various clues and puzzles as your only way out. Panic and chaos ensues until one person starts delegating tasks and communication in the room starts to flow. You put your heads together and manage to unlock the room with 15 minutes to spare. Now, imagine those 10 other people in the 24 / BizTimes Milwaukee AUGUST 7, 2017
room are your co-workers and escaping that “locked” space was actually an exercise to strengthen trust, leadership and communication abilities as a group. Escape rooms are emerging as one of the many corporate outings Milwaukee employers are using as team building tools. The activity allows participants to emerge as leaders, collaborate as a unit and complete a task efficiently – skills that are crucial to working professionally in a team – and of course, have some fun outside the office. Escape the Room Milwaukee, located on East Erie Street in Milwaukee’s Historic Third Ward, has hosted more than 100 local businesses since it opened in May 2016. Half of those businesses came specifically for team building purposes. The facility has four themed rooms, with the largest holding 12 people. During the
60-minute challenge, seven “clue masters” monitor the rooms and give participants clues to escape. Teams in separate rooms compete to escape in the shortest time, but the team building aspect of the experience happens inside the locked room. “What makes escape rooms unique is that there are elements of several different activities put into one challenge that engages different parts of the brain,” said Michael Gull, general manager of Escape the Room Milwaukee. “When you put a bunch of people together in a room, communication, leadership, compromise and working together is necessary.” Whether it is an escape room outing or a more formal, corporate training program, team building can create a productive work environment which is crucial to a company’s success – especially as the younger generation entering the workforce puts value in the employee experience and positive work relationships with co-workers. “(Millennials) say that they want to make an impact and that they want to work with great people,” said Mitch Gold, senior talent management consultant at Right Management, the management consulting arm of Milwaukee-based ManpowerGroup. “That is where the need for team building comes from.” As a consultant who assists companies in workforce development, Gold believes effective teamwork is more important than ever before. Small businesses that have experienced layoffs and consolidations need strong, independent teams to make up for the lack of managers at the organization, he said. “Bigger teams have to be much more self-managing because there is less time to go through multiple layers of permission to get decisions made and tasks completed,” Gold said. “Teams now need to be more empowered to take action and make things happen.” For large, corporate companies, team building often takes the form of official training programs that define the organization’s mission and help employee teams reach their goals
MILWAUKEE PADDLE TAVERN
CORPORATE EVENT PLANNING
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MILWAUKEE PEDAL TAVERN
within that mission. Milwaukee-based Brady Corp. provides an optional training program to support all employees in developing within the company’s six core values. Brady started the program just more than a year ago and has used it to train 936 employees. The two-hour training sessions are provided in-person or virtually and are discussion-based, with interactive activities among employees. When team members are trained together, they can directly apply the program’s content to their department and discuss specific issues, said Jesse Pilachowski, director of global organization development at Brady. “The goal is to create consistency and understanding in what is expected of you as a Brady employee,” Pilachowski said. “It shows employees that their development matters.” A group of Brady’s managers lead the program to make the training company-specific and focused. It also provides all-around benefits. “We are developing others and also, developing ourselves as we are delivering the content,” said Kate Venne, director of corporate communications at Brady, about her training role. Formal or informal, the drive behind cor-
A Pedal Tavern fits up to 16 people. porate team building comes down to speed, efficiency and effectiveness, Gold said. These are skills that every member of the organization can take away from a team building experience and bring back to the workplace. Gold recently visited Escape the Room
Milwaukee as part of a Right Management team training. He said the experience encourages teams to be more self-reliant and efficient, and the time component stimulates the added . . . . . . . . . . . . . TEAMBUILDING continued on page 33
SAVE THE DATE! Wednesday, October 4, 2017 || 7:00 - 11:00 AM Preparing For What’s Next Are you letting the disrupters control you, or are you building a “Proactively Adaptable Organization” Join us for the annual Next Generation Manufacturing Summit, featuring a lively interactive discussion with chief executive officers and leaders of southeastern Wisconsin manufacturing companies. These CEOs will share their companies’ ideas and best practices for competing in a global marketplace and how they strive to be “proactively adaptable” world-class manufacturers in the 21st century.
&
SHAPING THE FUTURE Manufacturing Matters! 2017 will take place at the Hyatt Regency in Milwaukee on February 23rd, 2017. The theme of this year’s conference is Shaping the Future, and the conference features 18 breakout session in six tracks including: Growth • Operational Excellence • Human Capital Management C-Suite Essentials • Technology & innovation Wisconsin Manufacturing P L AT I N U M S P O N S O R
As workforce challenges and trends are on the minds of most manufacturers, we are pleased to announce this year’s keynote presenter is Kip Wright, Senior Vice President of Manpower, North America. Kip will discuss G O key L D workforce SPONSORS trends and what manufacturers can do to secure and develop their current and future workforces.
Kip Wright
Senior Vice President of Manpower, North America
REGISTER TODAY! www.manufacturingmatters.org
Proactively adaptable organizations look beyond their own four walls and next purchase order and are preparing for the inevitable disruptors in today’s business environment. Hear from industry leaders who are creating processes and a culture of innovation, as well as methods of talent attraction, that will drive innovation in their business. The program continues with roundtable discussions. The CEO panel and roundtables will address a variety of topics including: • Building an organization’s “adaptability muscles” for the future • Talent attraction, development and retention • Leadership & engagement • Big data, Internet of Things, Artificial Intelligence • Creating a process and culture to be more innovative
• Automation and process improvement • Logistics & supply chain management • Succession planning • Exporting, global engagement • Additive manufacturing/3D printing • Process improvement • Customer focused innovation • And More
REGISTER TODAY! biztimes.com/mfg
MEETINGS WITH STYLE.
Special Report CORPORATE EVENT PLANNING
Showing business guests around Milwaukee Touring options abound for out-of-towners By Maredithe Meyer, staff writer SEVENTEEN PERCENT OF the 23 million people who visited Milwaukee last year came to the city for business-related reasons – that is almost 4 million people who visited strictly for corporate conferences, conventions or meetings, according to VISIT Milwaukee. As seven of Wisconsin’s nine Fortune 500 firms are located in or near Milwaukee, companies often want to showcase the state’s largest city. “Milwaukee is a very unique experience,” said Kristin Settle, director of communications for VISIT Milwaukee. “There is so much to do here and people often overlook this city but when people visit, they are so happy they came.” Settle and the VISIT Milwaukee team work closely with local companies like Northwestern Mutual Life Insurance Co. and Harley-Davidson Inc. to host conferences and show off Milwaukee to employees or clients from around the globe. “It is our job to make and promote the greater Milwaukee area as a top choice for conventions,” she said. “The broader goal is to increase the economic impact of tourism.” But what differentiates Milwaukee from another convention city and makes it a so-called top choice for business tourism? “To many people who travel a lot for business, Milwaukee might become just another U.S. city if you don’t get out and see it,” said Kay Collins, owner and main tour guide of KBC
Milwaukee’s skyline earlier this summer. Tour Co. “If you’re staying at the Hilton and never make the effort to leave that area, Milwaukee might look like other cities to you.” For 10 years, Collins has been the local expert for visitors who take her customizable tours. She
2018 EDITION
GIVING GUIDE Reserve your space in the 2018 Giving Guide 28 / BizTimes Milwaukee AUGUST 7, 2017
has worked with a range of groups – from military reunions to weekend tourists – but corporate groups make up a large part of her business. Companies hosting corporate events in Milwaukee often work with Collins to arrange
Take advantage of the opportunity for your organization to be seen by the Region’s Business and Philanthropic Leaders all year long.
Publication Date: November 13, 2017
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(414) 336-7112 or advertise@biztimes.com A SUPPLEMENT OF
MAREDITHE MEYER
redef ining experiences
meeting |'mētiNG| noun
1. The work/life balance of PowerPoint presentations and doubling down on the blackjack table.
tours that include local restaurants, Milwaukee Brewers games, museum visits and brewery tours. Collins regularly gives tours to the Medical College of Wisconsin’s prospective physicians who are visiting Milwaukee during the interview process. Her three-hour tour focuses on the city and its history and culture. “Often, candidates have told us that the tour with Kay was their favorite part of their visit, as they didn’t know Milwaukee had so much to offer,” said Jim Blair, MCW’s physician recruitment coordinator. When showcasing Milwaukee, some of Collins’ top focuses include the city’s beer history, the East Side’s art and architecture, the Harley-Davidson Museum, the Milwaukee Art Museum and Miller Park. Her “Saints and Sinners” tour focuses strictly on Milwaukee’s churches and beer. The summer and fall are her busiest seasons, with three to four tours per week, but Collins makes sure she includes Milwaukee’s lakefront. “People don’t have very high expectations and we overwhelm them because they didn’t realize how beautiful the city is,” she said. But not every out-of-town professional has time in between meetings for an official tour. Anna Lardinois, owner of Gothic Milwaukee walking tours, shows visitors the city in a different way. Lardinois is known for her guided ghost tours of Milwaukee’s famous landmarks. She uses original source material from the Milwaukee County
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GOTHIC
MILWAU
K EE
VISIT MILWAUKEE
Gothic M ilwauke e’s featurin g 10 dif fe card collec tion, rent walk around th ing tours e cit y.
The Wisconsin Center located on of Fourth Street and Wisconsin Avenue has 188,695 square feet of exhibit space.
Anna Lardinois with a tour group and the Bronze Fonz during her Haunted Historical Walking Tour. Lardinois said. “On a walking tour, the world slows down and you can see and learn a lot more.” She said these tours are a great option for business-related travelers who have limited time but want to explore on foot after a long day of meetings. Walking Milwaukee’s Downtown Edition includes tour routes of the riverwalk, lakefront, Water Street, Lake Park and – Lardinois’ personal favorite – The Churches of Yankee Hill. The card collections are sold at local retailers including Whole Foods, West Elm and the Milwaukee Art Museum’s gift shop. Lardinois also narrates an audio version of “The Grand Walk” tour of Wisconsin Avenue that is available on the VoiceMap app. She sells the cards to various local hotels to provide to out-of-town guests. Lardinois has also worked with Mandel Group to provide her collections for amenity spaces and various tenants in a downtown property. Ironically, 80 percent of Lardinois’ touring business comes from the local community. She thinks everyone in Milwaukee should use the card collections to explore – not just visitors. “I don’t think I’ve ever had a tour where people – visitors and locals alike – did not say they learned a lot about the city,” she said. n 30 / BizTimes Milwaukee AUGUST 7, 2017
GOTHIC MILWAUKEE
Historical Society to tell legends and folktales from Milwaukee’s history as part of her tour. A year ago, she took her six-year-old tour company a step further by producing and selling a collection of self-guided walking tours called Walking Milwaukee. The 10 tour cards in each collection – a downtown and a Wauwatosa edition – include an illustrated map on one side and descriptions of featured landmarks on the other. Eight bonus tour cards in both collections provide in-depth history and information about the most iconic sights. “There’s something about slowing down and walking through a city,”
Special Report CORPORATE EVENT PLANNING
Racine event center proponents say there’s enough activity for another venue By Corrinne Hess, staff writer PROPONENTS OF THE PROPOSED event center in downtown Racine say the new venue would allow the city to continue using its profitable smaller facilities. For decades, Racine attempted to use Memorial Hall and Festival Hall for public events. But with a capacity of about 1,500 – without seats and without a hotel connected to either space, the city had been unable to accommodate large conventions at the sites, which are both located along the lakefront. Over the past five years, the focus has shifted from public events to private parties, weddings and local shows.
Racine officials have been creating new events for its Festival Hall site to generate additional revenue. The change has resulted in a 20 percent increase in both usage and the number of events held at the venues, said Amanda Gain, executive director of the Civic Centre, which manages Memorial Hall, Festival Hall and Paul P. Harris Rotary Park. While this has been occurring in Racine, a plan has been in the works to build a
208,000-square-foot hotel and event center nearby at 322 Lake Ave. The $55 million project would include a three-story, 3,500-seat event center and a seven-story, 150-room adjoining hotel. The project would be paid for, in part, by a yearly tax increase to homeowners of $11.78 per year for the owner of a $100,000 home. One confirmed tenant, a United States
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Racine Civic Center Usage Statistics
According to information from Venueworks provided to the 2016 Hunden Strategic Partner’s Report, “Downtown Racine Arena Market and Feasibility Study”, the Racine Civic Center has substantial bookings and attendees and is occupied most days:
FESTIVAL HALL USAGE BY YEAR
Measurement Total Events Event Days Use Days Event Attendance
Civic Center Usage by Year 2013 2014 2015 144 169 159 163 202 258 226 256 303 88,381 80,245 86,322
2016 176 225 280 90,110
Source: Downtown Racine Arena Market and Feasibility Study, August 2016 – Hunden Strategic Partners & Racine Civic Center.
VenueWorks, the managers of the Civic Center properties, note that they have experienced increased usage and events both by approximately 20% over the last five years. The misconception that nothing is occurring at the Civic Center is because the bookings have shifted to private events from public events. This change in bookings have also assisted the Civic Center properties in becoming more profitable and relying less on City monies for operation. Notably, the City’s operating subsidy to the Civic Center has decreased by more than half (68%) over the last ten years.
Memorial Hall has become a destination for weddings and other private events.
Hockey League team, will sign a letter of intent when phase two of the project is approved. City officials believe there is also potential to host another 100 to 175 events per year at the event center, which could include sporting events, ice-related events, concerts and special events including proms and weddings. The city council is expected to vote on the project in December.
Friday, August 25 5:00pm-10:00pm
Opponents have said the event center is not needed because City of Racine Subsidy toare Civic Center Racine’s other venues not being used. But Gain said people are not aware private events taking place at Festival Hall and Year of all of the Subsidy Memorial 2007 Hall. $321,563 2008 “Memorial Hall $343,030 is amazing, but it has limitations because the stage is 2009 $285,990 smaller and it was built in the 1920s,” Gain said. “The misconception that 2010 $289,749 nothing at the Civic Center is because the bookings have 2011 is occurring $316,681 2012to private events $306,000 shifted from public events.” 2013 $270,000 Nonprofit organizations and veterans groups have been using both 2014 $270,000 venues, couples who have held their rehearsal dinners and 2015 and so have $243,000 2016 at Memorial $243,000 weddings Hall or at Rotary Park, a 30,000-square-foot park 2017 to Festival$219,000 adjacent Hall. Source: City of Racine Budgets: 2007‐2017 “We have three amazing venues on the lake that many people don’t know about,” Gain said. “We are trying to break down stereotypes and reach out to groups that have not been here before. In 2013, there were 144 events at the Civic Centre’s three campuses attended by 88,381 people, according to the Downtown Racine Arena Market and Feasibility
FREE EVENT being the money is re e h w re a ts “Private even venues.” lly filling our a re is it d n a ma de director Be sure to join us as we celebrate 60 years of honoring veterans at the War Memorial Center!
— Amanda Gain,
Civic Centre exec
utive
The event, which was inspired by the success of last year’s LZ at the WMC, will feature:
• • • •
Live Music on Fitch Plaza with Boomer Nation Mess Hall Food Food Trucks with Gouda Girls and Marco Pollo Military Artifact Trunk Show
Talk & Book Signing with Meg Jones, Author of World War II Milwaukee at 5:30 p.m.
9/11 Memorial Talk with Mark Fox (6:00 p.m., 7:00 p.m. & 8:00 p.m.)
Sponsors
Al Hurvis/ADAMM Education Foundation | Glen and Elizabeth Armstrong | AVI Systems Dirk and Terry Debbink | John Drent | George and Anna Clair Gaspar | Gibb Building Maintenance Michael W. Grebe | The Sigma Group | A Grateful Vietnam Veteran www.warmemorialcenter.org
32 / BizTimes Milwaukee AUGUST 7, 2017
Study published in August 2016. In 2016, there were 176 events attended by 90,110 people. The change has also assisted the Civic Centre properties in becoming more profitable and relying less on the city for operation. The city’s operating subsidy to the Civic Centre has decreased by 68 percent over the past 10 years, according to the city’s budgets. In 2007, the city spent $321,563 to subsidize the Civic Centre. In 2017, the city’s subsidy was $219,000. “We’ve seen a shift in our industry as a whole,” Gain said. “Private events are where the money is being made and it is really filling our venues.” In addition, the city has started doing its own events at Festival Hall including the Belle City Bridal Show, which attracted about 250 people, and a Brew Fest in March that sold out with 1,000 people.
At Memorial Hall, the Ultimate Fighting Championship held a sold-out cage fighting match featuring Ben Rothwell, and a roller derby event was also hosted. “Public events take time to build and grow,” Gain said. “With each of these shows it’s about gaining exposure for the venues. Some people didn’t know we did weddings at memorial hall. We’ve been working hard to break down the stereotypes that it’s too expensive. People are still hung up on Harbor Fest and Salmon-a-Rama, but those were 20 years ago.” Gain said having an event center won’t take away from what is being done at Festival Hall and Memorial Hall because the bigger shows held at arenas are typically held in the winter months, whereas the Civic Centre venues are typically busier in the warmer months. “The possibilities are really endless,” she said. “I won’t have to shred request for proposals anymore from conferences that want to take advantage of the fact that we are on the lake, that we have a great downtown, but we just don’t have a large enough space.” n
TEAMBUILDING. . . . . . . . . . . . . . . . . . . . . . from page 26
pressure of quickly accomplishing team tasks. However, a running clock isn’t necessary for every type of team building activity. Fore! Milwaukee, an indoor golf course and bar located on North Water Street, works with about 60 local companies per year for corporate events – many centered on team building. Teams at each of the four golf simulators can compete in a round of golf by hitting a ball at a screen that reads the shot and shows its distance on a virtual course in real time. “The competitiveness really comes out,” said Fore! owner Tim Grogan. “Our corporate clients really get to know each other better than they would at a company event at the office.” Golf experience is not necessary for a round at Fore!, which allows for an accessible, inclusive environment and more focus on the team building aspect of the event, Grogan said. Team building activities can be as simple as stepping out of the office and doing something enjoyable as an organization. During the summer months, a ride on the co-owned Milwaukee Paddle Tavern or Milwau-
kee Pedal Tavern provides that experience for both local and visiting companies. To some, paddling down the Milwaukee River while drinking a beer might seem more like play than work, but it gives co-workers a chance to connect outside of the usual office setting. Recently, a national franchise company rented six Pedal Tavern bikes when its franchisees visited Milwaukee. Each location had a bike and it turned into a competition, said Derek Collins, managing partner at Pedal Tavern. “The real advantage is that you’re sitting next to your peers and working together to make something move,” said Redmond Tuttle, co-founder of the Paddle Tavern. Regardless of a company’s size, Gold stands by his belief in the importance of team building to improve as an organization. He said it is up to team members to apply team-building lessons to everyday work life and hold each other accountable to do the same. “It comes down to the need to be transparent,” he said. “Conflict doesn’t feel good but when conflict gets in the way, it is important to put in place a process like team building to deal with the issue and ensure the team is performing effectively.” n
simplify your
Entertaining sazs.com | 414.256.8765 | Cater@sazs.com biztimes.com / 33
Strategies COACHING
Jam sessions Lessons business leaders can learn from jazz
“Are our employees stifled by a fear of making mistakes or do we encourage them to squeeze out the learning that can come from mistakes?”
I grew up with jazz. My older brother (now traveling the universe) was an amazing self-taught drummer. His best friend (now a pediatric cardiologist) played courageous jazz piano. So after school and all weekend these two were carrying on in our living room, with usually pleasing results. Or they might have been down in the basement rec room with the latest Miles Davis LP. If they joined other jazz musicians and actually landed a gig, I was in a folding metal chair at the edge of the group, sitting next to my brother’s girlfriend, both of us ignored until the show was over, of course. 34 / BizTimes Milwaukee AUGUST 7, 2017
I pretty much took that all for granted. In school, after many semesters of studying communication, I began to appreciate the subtle and sophisticated communication inherent in the production of good jazz – the beliefs and practices that bond the musicians together and make it possible to innovate, to improvise, to suddenly change direction, to know this is the time to solo – or not. I still am curious about the underlying trust in each other that makes this all possible. So when I heard about Frank J. Barrett’s book “Yes to the Mess: Surprising Leadership Lessons from Jazz,” I ordered it immediately. Barrett is a professor of management and global public policy in the Graduate School of Business and Public Policy at the Naval Postgraduate School in Monterey, California. He has a long and impressive list of credentials and he is an active jazz pianist. In the late ’80s, he became intrigued with “exploring the connection between my two passions – jazz and organizational behavior.” He saw that the challenge of playing jazz is akin to challenges faced by executives, and began writing and teaching about applying design elements from jazz to other organizations, wanting to heighten the improvisation within their cultures. In seven chapters, he ties together illustrations from jazz and stories of highly innovative business environments. He makes a good case for looking wide-eyed at the routines within our organizations and how some routines are very supportive of growth and how others squash any creative and innovative bursts that might arise. One of Barrett’s chapters is entitled “Embracing Errors as a Source of Learning.” Another is “Balancing Freedom and Constraints.” I recommend opening your imagination to the entire book. I think it will inspire you to liven up your own organization. The book includes a quote from the late Steve Jobs, discussing the risk involved in innovation, the same risk that jazz improvisers (and comedy improvisers) face. “There’s a lot of things that are risky right now. If you see to the other side and
say, ‘Yes, this could be huge’ – but there’s a period of risk, no one’s ever done it before.” Near the end of this engaging book, Barrett poses questions that are useful in planting some of the book’s principles within your own organization. For example, do we include users and customers in our jam sessions? Do our associates feel safe enough to offer innovative solutions to a team challenge? How can you create space and cultivate serious play in your organization? What can you do to support ongoing learning and collaboration in your organization? Are our employees stifled by a fear of making mistakes or do we encourage them to squeeze out the learning that can come from mistakes? Have we learned to appreciate everyone’s particular gifts even when they are not so obvious? Can we step back and let others take center stage, with pleasure in the performance and honest applause? There are many more such questions; seeds to spur the release of your own new and daring ideas, to allow yourself to be more fully creative, courageous and curious. Whatever kind of music you make, you’ll have a lot more fun doing it. n
JO GORISSEN Jo Gorissen is a certified transition coach and a former Milwaukee-area resident. She can be reached at jgorissen1@gmail.com.
MANAGEMENT
Every employee contributes to your customers’ experience Five steps to ensure they come back To bring about a culture that works synergistically to create an extraordinary customer experience, we must answer the two questions all customers subconsciously ask: “What’s in it for me?” and “Make me feel important!” Too often, companies think about the customer experience in two limited ways: The sales force is responsible for sales; and the customer service department is responsible for any incoming inquires. In fact, by not expanding the customer experience mindset to each department, your sales force will begin to be reluctant to sell, fearing the disappointment their customers will express when they are not getting the satisfaction they desire. Whether it is an agitated interaction, a missed deadline, or a product or service not detailed as promised, your sales and profits will lack their greatest potential when you don’t improve your customer experience from the inside out. It takes a mindset shift in every single person in your company to create an extraordinary customer experience. Here are five practical steps you can take to ensure your customer keeps coming back: 1) Align each department and individual to an extraordinary customer service goal. Create alignment by asking each department and its key talent, “How might you go the extra mile to create an extraordinary customer experience?” For example, what can billing do to create this experience? An idea may be to send out savings coupons or a newsletter with each bill, as well as a note of thanks for the business.
2) Create accountability with a monthly scorecard. Salespeople have always had to meet certain criteria each month to show accountability in their jobs: number of calls, presentation, hitting sales quotas, etc. When we hold the other departments accountable for specific behavior to ensure customer satisfaction, we engage each employee in the responsibility to deliver an extraordinary customer experience. By measuring it monthly, we ensure we are on track for satisfaction and increased sales. 3) Explain the ‘customer why’ behind each policy and procedure. Too often, employees are trained on processes and procedures and told why it makes sense for the company. As a result, employees can become inflexible and defend it to the customer, instead of explaining “why” it was put in place for the customer’s benefit. For example, if a customer wants delivery on a different day than what your route determines, your staff can explain, “We have created a route on Thursday for your area so we can keep our costs down for you. However, we could outsource another transportation company to make this delivery on Tuesday for you for an extra charge if you need it then. Which do you prefer?” 4) ‘Team huddle’ upfront with all the departments involved in delivering the promise to the customer. Most salespeople make promises to the customer before they collaborate with the other departments. By collaborating and engaging
the other departments in setting realistic expectations upfront, there is apt to be greater buy-in and better attitudes to achieve an extraordinary customer experience. 5) Give purpose to customer’s product. When we bring purpose to the product we are delivering, we explain how your talent delivers purpose to the community. For example, if it’s a component to a heart monitoring device your company is making, remind your employees they are saving lives. When you go beyond the product you are making and tell the positive purpose you have on the community, you create a culture excited to deliver an extraordinary customer experience! n
SUSAN WEHRLEY Susan K. Wehrley is a business coach and consultant of more than 25 years. You can contact her at (414) 581-0449 or Susan@BIZremedies.com. Her website is BIZremedies.com. biztimes.com / 35
Strategies LEADERSHIP
Change is good…you go first How to lead employees through it “It is a terrible thing to look over your shoulder when you are trying to lead – and find no one there.” - Franklin Delano Roosevelt As a leader, your actions have a direct impact on any organizational change initiatives. Often, leaders focus their attention on the rationale for change, the logistics of the process and the implementation. And yet, what can make the biggest difference to ensure success is the way people within the organization respond. How you sponsor, communicate, model and lead change has a direct impact on success. Your style, decisions and actions all have an effect. All change has a corresponding loss and people need support to move through the stages of grief that come with any loss. Our emotions drive behavior. Often, a leader will attempt to meet emotion with logic. Most often, that strategy does not work, and can potentially invite deeper levels of resentment and resistance, anger, resentment, frustration, etc. And so, if logic doesn’t work? What are we to do? I remember my father’s mantra: “People don’t care how much you know until they know how much you care.” Wherever your employees are in the process, meet them where they are. Demonstrate empathy; offer appreciation for the challenges they are facing. William Bridges, author of “Managing Transitions: Making the Most of Change,” shares with us his wisdom about the human dynamics of change. “It isn’t the changes that do you in, it’s the transitions.” 36 / BizTimes Milwaukee AUGUST 7, 2017
Bridges describes three phases of transition: the ending, the neutral zone and the new beginning. Within those phases, Bridges identifies the stages of loss, the corresponding behaviors and the recommended response from leaders. There is no foolproof method for managing the transitions through change, yet to have an awareness about what may be helpful is valuable learning for us. The stages of loss/grief we experience during change are: denial, resistance, exploration and commitment. Let’s review what behaviors or messages we may recognize as someone lives into the change.
DENIAL: “This cannot be happening.” “It won’t really impact my area.” “What are they thinking?” “How can they be talking about cutbacks and new building at the same time?” We may see: apathy, shutdown, pessimism. Leader’s response: Empathy and… information, information, information. It is suggested that we need to be given the same information seven times before we can hear it. It is important to communicate through different channels: media, group meetings and one-on-one conversations. Meet one-on-one. Empathy and questions: “How are you?” “What do you need to move forward?” “What do you need from me?”
Leader’s response: Communicate appreciation. Begin to set short-term goals. Meet with teams. Ask: “How are you?” “What do you need?” “What do you need from me?”
COMMITMENT During this stage there is more energy, acceptance and receptivity. Team members are expressing enthusiasm for what is possible. There is more encouragement and support of one another. Leader’s response: Communicate appreciation. Begin to consider long-term goals. Encourage teamwork. Celebrate… It is important to celebrate each milestone in the process of change. And again, we will ask: “How are you?” “What do you need from me?” Whether change is necessary because of possibility or because of challenge, it still arrives with loss. So much more is possible when we are willing, as leaders, to support our teams in their experience of loss, even as we experience our own.
AFTER CHANGE REVIEW Once the change has been integrated, investing time in the organization to assess the process, communication, support, etc. will be a valuable exercise. It will help the organization prepare for the next change that will be needed…because the next change is just around the corner! n
RESISTANCE: Behaviors we may see: avoidance, ignoring, expressions of anger, frustration, back-biting, etc. Leader’s response: Empathy and… listening. Meet with team members, staff, one-on-one. Empathy and questions: Acknowledge feelings: “I know this is hard. I can see your frustration, anger, etc.” Followed by: “What do you need to move forward?” “What do you need from me?” “How can I best support you?”
EXPLORATION Behaviors we are likely to see: Employee making suggestions; beginning to wonder: “What’s in it for me?” Asking more questions. Exhibiting more energy and hope.
KAREN VERNAL Karen Vernal is the president of Vernal Management Consultants LLC, a Milwaukee-based leadership and organizational firm. For more information, visit www.vernalmgmt.com.
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BizConnections NONPROFIT
news S.C. JOHNSON TO FUND $6.5 MILLION AQUATIC CENTER IN RACINE Racine is slated to get a new aquatic center thanks to a $6.5 million donation from S.C. Johnson & Son Inc. The SC Johnson Community Aquatic Center at Pritchard Park, 2800 Ohio St., will be open to the public and include two swimming pools that have nearly 15,000 total square feet of water surface. The project needs to secure approval from the Racine County Board, with a vote expected in early August. If approved, a
groundbreaking is expected in the fall, with the opening anticipated for June 2018. The aquatic center would include a 4,800 square-foot pool building with changing rooms, a concession stand and shaded lounge areas. Other features will include large waterslides, a water play structure, a rope course, a water spray feature and a zero-depth pool for young children. Park capacity will be about 700 people. The Racine Family YMCA would manage the facility. -Lauren Anderson
nonprofit
SPOTLIGHT
H E R O E S F O R H E A LT H C A R E
c alendar Big Brothers Big Sisters of Metro Milwaukee will host its 27th annual NFL Alumni Golf Classic on Aug. 14 at North Hills Country Club, N73 W13430 Appleton Ave., Menomonee Falls. Each foursome is paired with a former NFL player for 18 holes of golf, with the opportunity to participate in a shootout to win a trip to the Super Bowl of Golf. More information is available at bbbsmilwaukee.org. The fourth annual Band-Aid summer concert to benefit ProHealth AngelsGrace Hospice will be held at 6 p.m. on Aug. 12 at the Sharon Lynne Wilson Center for the Arts in Brookfield. The Gerlach/ Haack Outdoor Theater, 19805 W. Capitol Drive, will open at 5 p.m. Concertgoers should bring lawn chairs or blankets and may carry in food and drink. Bands will include the Milwaukee Guitar Quartet, O’Bradys, Lucy Chamberlain Band and Finian McCoy. Advance purchase tickets are available at ProHealthCare.org/BandAid for $10 until Aug. 11. Tickets will be available at the gate for $15.
D O N AT I O N R O U N D U P The Bryon Riesch Paralysis Foundation’s 18th Annual Golf Outing raised $315,000 | Smithfield Foods’ Helping Hungry Homes initiative and Piggly Wiggly recently donated more than 35,000 pounds of protein to Feeding America Eastern Wisconsin | First Nations Development Institute recently awarded a $22,000 grant to Little Eagle Arts Foundation in Wisconsin Dells | UnitedHealthcare awarded four grants of $25,000 to support The Arc Wisconsin, Easterseals Southeast Wisconsin, Independence First and Life Navigators | Northwestern Mutual Life Insurance Co. will provide $150,000 to support childhood cancer researchers nationwide, including $60,000 to Alex’s Lemonade Stand Foundation’s Pediatric Oncology Student Training program and $90,000 to purchase essential lab and research equipment at 16 hospitals and universities.
38 / BizTimes Milwaukee AUGUST 7, 2017
10150 W. National Ave., Suite 150, Milwaukee (866) 456-3864 | heroesforhealthcare.org Twitter: @HeroesMedical
Year founded: 2017 Mission statement: Our mission at Heroes for Healthcare is to be a resource for our military during their transition to civilian life to achieve gainful employment in health care. Our purpose? We believe everything we do is to make a positive difference in the lives of our military heroes by helping them achieve a career in health care. Primary focus: To help our military and veterans have job opportunities on the civilian side that fit their skillsets. Primarily health care focused. Other focuses: Provide tools and resources for military personnel to start and develop a career in health care, including career development planning; housing/ relocation; resume building; interview skills; job counseling; college partnerships; and financial assistance. Number of employees at this location: All volunteers Key donors: None at this time. Executive leadership: Laura Hanoski, chief executive and president
Board of directors: • Mark Hanoski, treasurer • Janelle Thompson, secretary Board members: • Tammy Gorski • Christopher Lange • Rachel Radtke • Lance Sands • Dr. Donald Zoltan • Donna Kutchek James Radmer, BSN, RN Is your organization actively seeking board members for the upcoming term? Yes. What roles are you looking to fill? We are looking for volunteer board members with the following experience to help grow an organization from startup, gain experience, help veterans and U.S. military personnel, and meet growing demands in health care: Accounting; business planning; digital communications; fundraising; grant writing; human resources; public relations; social media; and strategic planning. Ways the business community can help your nonprofit: Financial donations to help support our services, outreach and scholarships.
PERSONNEL FILE BANKING & FINANCE
WaterStone Bank, Wauwatosa
Stover
Weigand
Michael Stover was appointed vice president, commercial real estate at WaterStone Bank. Stover has 14 years of experience in commercial lending and commercial real estate. Prior to joining WaterStone, he served as vice president, commercial banker for Westbury Bank. Additionally, Megan Weigand was promoted to community president of WaterStone Bank’s Fox Point branch. She previously served as an assistant branch manager at its Wauwatosa branch, where she assisted in the execution of a new personal banker onboarding process.
BANKING & FINANCE
Waukesha State Bank, Waukesha Payroll Complete, a division of Waukesha State Bank, has hired Dean Lampe as business development associate. He comes to Waukesha State Bank with more than 14 years of financial sales, marketing, customer service and operations experience.
BUILDING & CONSTRUCTION
MSI General Corp., Oconomowoc MSI General Corp. has added Lori Wittkopp to its team as a project coordinator within the operations department.
EDUCATION
Cardinal Stritch University, Milwaukee Kathleen Hohl has been named senior director, media relations and advancement communications at Cardinal
PROFESSIONAL ORGANIZATIONS Stritch University. She will be responsible for media relations, crisis communications and developing and coordinating university messaging.
ENGINEERING
Continuus Technologies, Grafton Continuus Technologies has added Courtney Guc as business intelligence engineer. In her new role, Guc will work with both technical and non-technical people in a variety of industries to help them discover and analyze up-to-date data in an intuitive, easy to understand format that business managers and c-suite executives can use to make more informed decisions.
HOSPITALITY
Paloma Resort Properties, Lake Geneva Midwest-focused golf and hospitality management firm Paloma Resort Properties has named Robert Booth director of sales and events. In his new management role, Booth aims to streamline the company’s sales process, increasing efficiencies while heightening Paloma’s brand awareness.
management roles. He later served as general manager at Avanti Wind Systems.
MARKETING
Mueller Communications, Milwaukee Mueller Communications has promoted Rachel Berkowitz to account executive. She has been with the firm since 2014. As an account executive, Berkowitz is responsible for leading a variety of internal teams to coordinate marketing and public relations plans, execute public affairs strategies and develop community and public awareness campaigns.
MANUFACTURING
Engendren Corp., Kenosha Engendren Corp. hired Anthony Ferraro as chief business development officer. He will be responsible for continued growth in the power systems and OEM off-highway markets for IEA LLC; the data center and facilities markets for Silver Linings Systems LLC; and the metal fabrication market for ArcRon LLC.
PRINTING
The Mosaica Group LLC, Sussex
MANUFACTURING
Uzelac Industries Inc., Greendale Uzelac Industries has hired Mike Hobbs as vice president and general manager. Before joining Uzelac, he served as operations manager at Rockwell Automation. Hobbs began his career at Siemens, where he held engineering, project management, sales and
Waukesha County Business Alliance, Waukesha
Urban
PROFESSIONAL ORGANIZATIONS
Northwest Side Community Development Corp., Milwaukee NWSCDC has named Sarah Bregant community development specialist.
PROFESSIONAL SERVICES
Freedom Physical Therapy Services, Grafton
Kimichik Faragher
Murtell
The Mosaica Group LLC expanded the client care team with the addition of Jodi Faragher as client care specialist and Dart Kathy Murtell to oversee the company’s marketing initiatives. Brandon Dart was also promoted to sales coordinator/ corporate account manager.
Katschke
The Waukesha County Business Alliance has promoted Maggie Urban to the role of office coordinator. She has been with the Alliance since 2015 and previously served as the administrative assistant for the Alliance. Additionally, Betsy Katschke was hired as membership services coordinator. She graduated from the University of Wisconsin-La Crosse with a degree in professional and organizational communications.
Ruppel
Kassie Kimichik has joined Freedom Physical Therapy Services as a staff therapist in the Fox Point office and Mike Ruppel has joined the Grafton office as a staff therapist.
Submit new hire and promotion announcements to: www.biztimes.com/personnel biztimes.com / 39
BizConnections SBA LOANS The U.S. Small Business Administration approved the following loan guarantees in June: JEFFERSON COUNTY
Kap Property Management LLC, 510 & 512 Enterprise Drive, Lake Mills, $170,000, Summit Credit Union; KENOSHA COUNTY
Bakeria LLP, 24123 75th St., Paddock Lake, $205,000, Southport Bank;
Stache Bros. LLC, 8752 N. Deerwood Drive, Milwaukee, $451,000, Alterra Bank; Stop N Go Operating Inc., 7609 W. Capitol Drive, Milwaukee, $447,000, Wisconsin Business Development Financial Corp.; Ultimate Freightways LLC, 1111 W. Layton Ave., Milwaukee, $50,000, Landmark Credit Union;
Handi Products Inc., 5600 99th Ave., Kenosha, $779,000, SomerCor 504 Inc.;
U.S. Car Wash, 1626-1648 N. 12th St., Milwaukee, $1.1 million, Wisconsin Business Development Financial Corp.;
MILWAUKEE COUNTY
RACINE COUNTY
360 Degrees LLC, 6000 N. 60th St., Milwaukee, $667,200, U.S. Bank;
Activebody Fitness LLC, 5314 Athens Ave., Racine, $25,000, JPMorgan Chase Bank N.A.;
Buckley’s Kiskeam Inn LLC, 801 N. Cass St., Milwaukee, $1 million, Wisconsin Business Development Financial Corp.; Four Lite Window and Door Inc., 5646 S. 114th St., Hales Corners, $25,000, Old National Bank; Gathering Place Brewing Co. LLC, 811 E. Vienna Ave., Milwaukee, $75,000, BMO Harris Bank; Reis Property Management LLC, 662 S. 94th St., Milwaukee, $50,000, Spring Bank; Shank Hall Inc., 1434 N. Farwell Ave., Milwaukee, $120,000, First Bank Financial Center; Spike Brewing LLC, 1960 N. Warren Ave., Milwaukee, $150,000, PyraMax Bank;
Dassow & Sons Plumbing, 31340 Academy Road, Burlington, $20,000, Community State Bank; Helical Pier Solutions Inc., 10410 304th Ave., Burlington, $25,000, Associated Bank; Miles of Smiles Academy LLC, 1812 16th St., Racine, $350,000, Peoples State Bank; Twins Properties LLC, 3705 Zachary Ct., Racine, $350,000, Peoples State Bank; SHEBOYGAN COUNTY
Brian’s Auto Service & Repair LLC, 1060 Fond du Lac Ave., Sheboygan Falls, $10,000, Oostburg State Bank; Brian’s Auto Service & Repair LLC, 1060 Fond du Lac Ave., Sheboygan Falls, $60,000, Oostburg State Bank;
In-N-Out Storage LLC, 423 E. Clifford St., Plymouth, $350,000, First Bank Financial Centre; In-N-Out Storage LLC, 423 E. Clifford St., Plymouth, $350,000, First Bank Financial Center; WALWORTH COUNTY
Heller Investments LLC, 1221 Phoenix St., Unit 1, Delavan, $532,000, The Huntington National Bank; Liberty Mechanical Inc., N1886 State Road 120, Lake Geneva, $435,000, Byline Bank; Walworth County Chiropractic S.C., 1221 Phoenix St., Unit 1, $30,000, The Huntington National Bank; WASHINGTON COUNTY
Accord Manufacturing Inc., N172W20950 Emery Way, Jackson, $250,000, First Bank Financial Centre; Clearshot Manufacturing LLC, W185 N11521 Whitney Drive, Germantown, $282,000, First Bank Financial Centre; Durabond Concrete LLP, 7745 Friendly Drive, Kewaskum, $40,000, First Bank Financial Centre; HFR Electric Inc., 227 Weil Drive, Slinger, $150,000, First Bank Financial Centre; Straight Line Collision Inc., W154 N11412 Fond Du Lac Ave., Germantown, $125,500, U.S. Bank; Straight Line Collision Inc., W154 N11412 Fond Du Lac Ave., Germantown, $20,000, U.S. Bank;
WAUKESHA COUNTY
AM Acquisition LLC, 333 Bishops Way, Suite 143, Brookfield, $1.4 million, Byline Bank; DKP Enterprises Inc., 4395 S. Delphine Drive, New Berlin, $150,000, United Midwest Savings Bank; Domani Salon & Spa LLC, 317 N. Lake Road, Oconomowoc, $25,000, First Bank Financial Centre; Hansen Auto LLC, Lot 3, corner of North Oakridge, North Prairie, $398,000, Wisconsin Business Development Corp.; Jacquette Chiropractic Wellness, 17040 Greenfield Ave., Brookfield, $250,800, U.S. Bank; Journey Property Holdings LLC, W142 N9041 Fountain
Blvd., Menomonee Falls, $1.5 million, Bank of the West; KLK LLC, 1085 Summit Ave., Oconomowoc, $126,300, Waukesha State Bank; RGC Maaco Wi 02 LLC, 13306 W. Silver Spring Road, Menomonee Falls, $50,000, Banc of California; RGC Maaco WI 02 LLC, 13306 W. Silver Spring Road, Menomonee Falls, $312,000, Banc of California; Richards Excavating Inc., 711 E. Roland St., Oconomowoc, $48,000, Partnership Bank; RMM Motors LLC, 1280 Blue Ribbon Drive, Oconomowoc, $1.5 million, Wisconsin Business Development Financial Corp.;
RocketLawnchair Inc., N8 W22323 W. Johnson Drive, Waukesha, $305,000, Westbury Bank; Ruzga & Son LLC, N39W32639 Edgewood Court, Nashotah, $50,000, Commerce State Bank; Ruzga & Son LLC, N38W32639 Edgewood Court, Nashotah, $280,000, Commerce State Bank; Sobie’s Restaurant LLC, East Wisconsin Avenue, Oconomowoc, $205,000, Ixonia Bank; Sussex Tool and Supply Inc., N62 W22632 Village Drive, Sussex, $522,000, Wisconsin Business Development Financial Corp.
Ronald McDonald House Charities® Eastern Wisconsin, Inc.
Outreach Community SET Ministry Health Centers,PHONE: Inc.(414) 449-2680
PHONE: (414) 475-5333 WEB: RMHCHOME.org
SET works with families where they live and learn, guiding them to self-sufficiency and become productive adults. help To ensure that men, women and increase children in the Greater Milwaukee Area receive the qualityWe health people heal emotionally by facilitating where they can care, behavioral health, housing and supportive services needed to live experiences at the highest possible to trust others. helps them life skills to cullevels of self-sufficiency. Outreachlearn Community Health This Centers, Inc. willdevelop work to the achieve this mission tivate relationships and is the key to building a strongwith community. through advocacy, outreach, prevention, public awareness, collaborative relationships other It’s ground breaking work that’s inspired by medical science. service providers and contracting for or providing a quality, cost-effective continuum of care.
PHONE: (414) 906-5306 WEB: ochc-milw.org
Ronald McDonald House Charities® Eastern Wisconsin, Inc. keeps families together while their children are receiving medical treatment at local hospitals.
2017 GIVING GUIDE FEATURED NONPROFIT
40 / BizTimes Milwaukee AUGUST 7, 2017
To learn more, visit biztimes.com/giving PRODUCED BY
WEB: setinc.org
2017 GIVING GUIDE FEATURED NONPROFIT
To learn more, visit biztimes.com/giving PRODUCED BY
AROUND TOWN Metro Milwaukee SHRM Open House
1
Metro Milwaukee Society for Human Resource Management recently held an Open House at The Brown Bottle in Milwaukee. Members had the opportunity to network with other professionals and learn about the various specialties within the human resources profession.
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BOB VON DER LINN of Change Leadership Resources and CYNTHIA LOEBER of ProHealth Care.
2.
KRISTY KINTOP of Joy Global Inc., STELLA TERRY of Lumina Partners and LESLIE BERZ .
3.
DAWN SCHICKER of ContinuumHR, CLAIRE HEPHER of Klement’s, TIFFANY CASTAGNO of Aurora Health Care, MELISSA ENGALDO of Stay-Lite Lighting, BEHLUL FERATI and DAWN MILLER of Coakley Brothers Co.
4.
GENEVIEVE HAYES and KATIE THEOBALD, both of Marquette University.
5.
ANA SIMPSON of M3 Insurance and KELLY D’AMATO-OSTRICKI of PNC Bank.
6.
DARREN FISHER of Darren Fisher Consulting, with GREG BACHRACH and AL HILL, both of Milwaukee Center for Independence.
7.
GAYLE NORTON of DeGarmo Group and SHARON LYNCH of The Arland Group.
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MMAC Future 50 Sound Off!
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The Metropolitan Milwaukee Association of Commerce’s Council of Small Business Executives hosted the 2017 Future 50 award winners for a morning of networking and roundtable discussions at the Wisconsin Club in Milwaukee.
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SHELLEY JUREWICZ of FaB Wisconsin and DAVID MITCHELL of Vector Technologies Ltd.
9.
JOHN SCHLIESMANN of Reinhart Boerner Van Deuren and ANDREW LARSON of Gustave A. Larson Co.
10. MANOJ NAIR of Swarming Technology and BECKY SAPPINGTON of Brilliance Business Solutions.
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11. IAN BAXTER of Swarming Technology and JIAN SUN of Wisconsin International Academy.
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12. CHRIS PHILLIPS and REID HOLZWORTH, both of TechCanary and MARK SOBCZAK of Sikich LLP. 13. ANA LOPEZ and SCOTT FARINA, both of Allcon LLC. 14. JOE GILSDORF and BRIDGETTE BONFIELD, both of Valentine Coffee, and ADAM YORK of Equips.
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15. PAUL MATTEK of Design Fugitives and JOHN MCWILLIAM of Scathain LLC. Photos by Maredithe Meyer biztimes.com / 41
BizConnections VOLUME 23, NUMBER 10 | AUGUST 7, 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
ACCOUNT EXECUTIVE Molly Lawrence molly.lawrence@biztimes.com ACCOUNT EXECUTIVE David Pinkus david.pinkus@biztimes.com ACCOUNT EXECUTIVE Maggie Pinnt maggie.pinnt@biztimes.com ACCOUNT EXECUTIVE Christie Ubl christie.ubl@biztimes.com SALES INTERN Amanda Bruening amanda.bruening@biztimes.com
ADMINISTRATION
INTERN REPORTER Maredithe Meyer maredithe.meyer@biztimes.com
Wisconsin Hobby Craft Store
ADMINISTRATIVE COORDINATOR Sue Herzog sue.herzog@biztimes.com MARKETING & EVENTS INTERN Eileen Demet eileen.demet@biztimes.com
PRODUCTION & DESIGN
This photo, taken in the 1950s, shows Henry Brautigam at his Wisconsin Hobby Craft Store, 1734 W. Fond du Lac Ave. in Milwaukee. The shop operated from 1946 to 1968, and was damaged in the 1967 Milwaukee riot. In this spot now is Feeding America Eastern Wisconsin.
GRAPHIC DESIGNER Alex Schneider alex.schneider@biztimes.com
Independent & Locally Owned
— Photo courtesy Brautigam family
DIRECTOR OF SALES Linda Crawford linda.crawford@biztimes.com
ART DIRECTOR Shelly Tabor shelly.tabor@biztimes.com
— Founded 1995 —
COMMENTARY
Foxconn deal is huge, if company comes through TAIWAN-BASED FOXCONN TECHNOLOGY Group’s plans to build a liquid-crystal display screen factory in Wisconsin are so big, it’s mind-boggling. The company plans to build a 20 millionsquare-foot plant in southeastern Wisconsin, likely in Racine County. By comparison, Amazon built two huge facilities in Kenosha with a total of 1.6 million square feet. It will cost $10 billion to build the Foxconn facility. By comparison, the 32-story Northwestern Mutual Tower and Commons project in downtown Milwaukee cost $450 million. The Foxconn facility will have 3,000 employees initially, and could grow employment up to 13,000. The jobs will have an average salary of more than $53,000. But the most stunning big number associated with the Foxconn project is the $3 billion in 42 / BizTimes Milwaukee AUGUST 7, 2017
tax incentives in a deal with Gov. Scott Walker that needs approval from the Legislature. The tax credits are contingent on the job creation and capital investment being made. The Foxconn deal is unprecedented for the state, but is one worth making. The subsidy is huge, but so is the potential economic impact when you include the jobs at Foxconn, the construction jobs to build the facility and the supply chain potential. It would be great if the state didn’t have to offer an incentive to attract Foxconn, but it was clearly necessary to win a multi-state competition for the plant. Walker went all in, won and deserves the credit. He believes the Foxconn plant will transform the state’s economy, turning it into a high-tech manufacturing center, booming like Silicon Valley (he calls it “Wisconn Valley”). Walker said the Foxconn plant is the “single largest economic development project” in the state’s history, will support 22,000 indirect jobs and is expected to make $4.26 billion in supplier purchases annually, with one-third being made in Wisconsin. But first, Foxconn has to make good on its plans. The company has massive factories around the world, but in some cases has not followed through after announcing major
developments. Four years ago, the company announced plans for a $30 million plant with 500 jobs in Pennsylvania, but never moved forward with it. The company has also faced some criticism for its labor practices and endured a rash of worker suicides seven years ago. Presumably, American labor laws will prevent that from being a problem here. The deal appears to be largely politically driven. President Donald Trump is putting pressure on firms to add more manufacturing plants in the U.S. The Wisconsin ties of White House Chief of Staff Reince Priebus and House Speaker Paul Ryan only helped Wisconsin’s bid for the Foxconn plant. The plant could provide a much-needed boost for Racine’s economy, which has suffered for years from a loss of manufacturing jobs. n
ANDREW WEILAND EDITOR
P / 414-336-7120 E / andrew.weiland@biztimes.com T / @AndrewWeiland
KAT SCHLEICHER PHOTOGRAPHY
5 MINUTES WITH…
RODNEY FERGUSON Chief operating officer, Potawatomi Hotel & Casino
IN 2014, the Forest County Potawatomi tribe opened a 381-room hotel at its casino in the Menomonee Valley. It is one of the largest hotels in Milwaukee. Now, three years later, the tribe says it plans to expand the hotel with a 119room and suite addition, which will bring its total room number up to 500. The project will also include the addition of 15,000 square feet of meeting space, bringing the total meeting space at the hotel and casino to about 65,000 square feet. Construction for the $80 million project is expected to begin this fall and be complete in the spring of 2019. In a recent interview with BizTimes Milwaukee editor Andrew Weiland, Potawatomi Hotel & Casino chief operating officer Rodney Ferguson explained the hotel expansion plans.
HOTEL BOOSTS CASINO ATTENDANCE “The reason we built the initial hotel was because there was a demand from our standpoint to satisfy our market. Typically if you have a casino without a hotel, you can extend the stay of your guests by adding some accommodations for them. We have been increasing our guest counts on a regular basis as a result of the hotel. Over the past three years, our attendance levels have skyrocketed. We went from 4 million in atten-
dance (the year prior to the hotel opening) to over 6 million last year…. We also knew when we built the first hotel, we didn’t have enough suites. That’s something our guests really like. So we decided to add on another 59, which will quadruple the number of suites that we have.”
MORE AMENITIES, MEETING SPACE “Another thing we learned from talking to our guests – they wanted some additional amenities, other than the restaurants and shows. So, we decided to have a spa and salon where you can get a manicure, pedicure, facials, haircuts. Another reason (for the hotel expansion) is, of course when we built the hotel we had some meeting space. We didn’t have enough space in the casino and as we added the hotel we added more meeting rooms, as well, and that still hasn’t been enough. We will be adding on some additional space for additional meetings.”
EXPANSION ANTICIPATED ALL ALONG “It will take about 18 months (to build the hotel addition) from start to finish. Fortunately, we designed the property with the possibility of expanding, so we don’t have to do the level of pilings that we did for the first project. So, it will be much easier to start and complete this project.” n biztimes.com / 43
INTRODUCES:
A guide to
STUFF
A guide to
STUFF
made and built in southeastern Wisconsin.
made and built in southeastern Wisconsin.
A new publication aimed at changing the image of careers in manufacturing and the building & construction trades in SE Wisconsin.
Be a part of this unique marketing opportunity that showcases SE Wisconsin’s manufacturing and building & construction firms, highlighting the cool stuff you make and build. Communicate the appeal of a career in manufacturing or construction to tomorrow’s workforce.
Publication Date: September 18, 2017 Reservation Deadline: August 11, 2017
To learn more, contact Linda Crawford 414.336.7112 | linda.crawford@biztimes.com