Grand Rapids Business Journal - April 28, 2014

School focuses on improving Latino students’ grad rates. Page 7

The Business Newspaper of Metro Grand Rapids, Holland , Muskegon & West Michigan

Not the usual canoe trip. Page 3

APRIL 28, 2014 VOL. 32, NO. 17

MADCAP FOUNDER Barista school has a pleasing blend eehouse’s classes EXHIBITS PATIENCE Coff cover technical, tHiS WEEK

ryan knapp pours himself into city’s brewing coffee movement. page 14.

training and ownership matters.

A survey of the largest state employers shows they are increasingly optimistic.

Rachel Weick

Grand Rapids Business Journal

double time

Dual degree equips med students with business acumen. paGe 3

family affair

Veenstra’s Garage, a small business started in 1925, earns accolades from the state. paGe 3

coffee and doughnuts

Using the success of its coffeehouse, a lakeshore-based barista school is using business knowledge and experience to train future coffee shop business owners.

JP’s Coffee & Espresso bar, a coffeehouse in downtown Holland, has served the West Michigan community for more than 20 years, with signature espresso drinks, whole bean coffees and loose-leaf tea.

Founded in 1993, JP’s Coffee & Espresso expanded its services in 2007 with the opening of the Midwest Barista School, which provides comprehensive training for individuals interesting in opening a coffee shop.

Sherry White, operations manager at JP’s Coffee & Espresso, said the decision to start a training program was a result of meeting the demand for consulting work by owner Jack Groot, and also to use the large space at the coffeehouse more effectively.

“He could save people money by actually having them come here (to train),” said White.

Converting extra space in the downtown Holland facility into a training bar, the Midwest Barista School’s classes take place within JP’s Coffee & Espresso shop.

BLM: Michigan outperforming U.S. economy

Pete Daly

Grand Rapids Business Journal

bar as the business model, methods taught at the school are meant to educate and train people in coffee and its industry, according to its website.

The school offers a five-day new business owner course for $1,875, an advanced barista class lasting four days at $1,575, and a two-day technical repair and maintenance workshop for $995. Other options include: private training at JP’s Coffee & Espresso for $800, customized corporate or supplemental classes, and a four-hour home

Business Leaders for Michigan, a statewide organization of corporate executives based in Detroit, is projecting the Michigan and U.S. economies will grow in the next six to 18 months, but expects Michigan’s economy to continue to outperform the U.S. economy.

“The good news from this survey is that Michigan’s largest employers continue to be much more optimistic about Michigan’s shortand long-term economic prospects than they were a couple of years ago,” said Doug Rothwell, president and CEO of BLM. “Job providers continue to be bullish on the state’s economic prospects and are backing it up with increased hiring and investment. More than half of Business Leaders for Michigan companies are forecasting increased investment in Michigan over the next six months.”

Fifty-four percent of business leaders believe Michigan’s econ-

Continued on page 4 8

Continued on page 4 8

the midwest Barista school, housed in JP’s Coffee and espresso, draws clients from throughout the country and around the world.

Photo by Rachel Weick

According to White, having the school housed in an operating coffeehouse appeals to people, since they are able to see techniques and practices implemented in the context of the real world.

“We bring people in usually 10 months out of the year to learn what we do because we do it every day of the week, and we can teach you what we’ve learned,” said White.

MBS offers complete training in barista techniques and business financing, as well as classes in espresso and coffee bar systems.

Using JP’s Coffee & Espresso

Find out what’s happening with Grand Rapids’ coffee culture, and grab a different kind of doughnut, too.

JPG Resources partners with Arizona firm

paGe 6

The Battle Creek firm supports new product development in the food and beverage industry.

laW WEEK

Two for one

Kent County’s new corporate counsel has plenty of experience on both sides of the issues. page 19

right to vote

Law Day celebration will feature presentation by interim dean at Wayne State University. paGe 20

Pete Daly

Grand Rapids Business Journal

JPG Resources, a consulting/management firm in Battle Creek providing expertise to consumer packaged goods companies developing new food and beverage products, has partnered with Healthy Brand Builders in Scottsdale, Ariz.

JPG is led by Jeff Grogg, who founded the business in 2009. An entrepreneur and R&D manager, Grogg was the head of product development at cereal brand Kashi and worked in R&D at Kellogg Co. for 18 years.

Grogg said JPG’s strategic alignment with Healthy Brand Builders allows both to provide a more complete set of services to their clients.

Healthy Brand Builders, led by

James S. Tonkin, is described by JPG as a brand marketing and strategy development company. Both companies specialize in the food and beverage industry, with the JPG Resources expertise in preparing products for market, while Healthy Brand Builders’ expertise is in business, marketing and financial strategies.

Grogg said JPG Resources’ primary focus is ensuring that clients’ business growth goals are met by successfully shepherding new products through all phases of the Grogg innovation process: idea generation, product development and launch/post-launch management.

According to Grogg, in the last few years JPG Resources has launched more than 60 new client products and all remain in the market.

Tonkin, according to Grogg, has

CoNtENtS

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successfully created more than 450 business and financial strategies for domestic and international firms.

“Jim Tonkin is an icon and has his finger on the pulse of the beverage industry. His expertise complements our executional capabilities and we will work seamlessly together to bring innovation and growth to our clients,” said Grogg.

Healthy Brand Builders concentrates mainly on functional and nutraceutical food and beverage segments, according to Grogg’s news release.

Clemson University, which has a National Nutraceutical Center, defines “nutraceutical” as food, or parts of food, that provide medical or health benefits, including the prevention and treatment of disease.

The latest types of health foods and beverage brands are becoming a more attractive target for acquisition attempts, according to Grogg.

He said given the decline in carbonated soft drinks and rise in healthy products, the trend is expected to continue its “massive growth.”

sales Moves .........17 Bad bosses. change-ups .........28

street talk ............30

Grogg told the Business Journal that JPG Resources helps “companies grow new businesses,” which could be from the ground up, but quite often means helping larger companies, including even multinationals, grow new aspects of their business.

Another key member of JPG Resources is Lucinda Wright, who heads the firm’s supply chain and marketing/sales functions. She is a former vice president of marketing at Kellogg, where she developed new brand and business platforms and managed innovation processes from ideas to commercialization.

She was also employed at Meijer.

Much of her work was in Kellogg’s natural/organic foods division, and her results were awarded a Top 20 Best New Frozen Products of the Year from Supermarket Review, according to the JPG Resources website.

Grogg said he was not at liberty to identify his clients due to confidentiality agreements, with the exception of Simply Eight, a start-up Continued on page 9 8

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West Michigan’s attraction: Here’s where the money is, page 5 April 28, 2014 Grand Rapids Business Journal 3

Not the usual canoe trip

Dual degree equips med students with business acumen

GR Paddling caters especially to conventioneers and tourists.

WMU’s business and medical schools collaborate on new opportunity.

Pete Daly

Grand Rapids Business Journal

If the Grand Rapids Area Chamber of Commerce ran a canoe-andkayak rental business on the river downtown, it would probably look a lot like what Jeff and Rita Neumann are doing.

As a matter of fact, Jeff Neumann is one of Experience Grand Rapids’ Certified Tourism Ambassadors.

Two years ago, the Neumanns came up with the idea to start a different type of canoe-and-kayak rental business, and then spent the first year planning it and investing in a 12-passenger van and an assortment of canoes and kayaks.

Last year, GR Paddling began operation, and Year Two is scheduled to start May 1 if the weather cooperates.

There were a couple of kayakers in trouble on the Grand River downtown in mid-April, but no, that wasn’t the Neumanns. “I hate to see that. It scares people away,” said Neumann. “Those people shouldn’t have been out there.”

The Neumanns offer custom kayak and canoe trips on Grand Rapids area lakes and rivers. What sets them apart from the usual canoe rental service is that they pick

Rachel Weick

Grand Rapids Business Journal

gan and highlights the incredible economic impact these companies have made,” said Carol Lopucki, director of the Michigan Small Business Development Center at Grand Valley State University.

“This year’s award winners have $110 million in total revenue for 2013, and employ 1,653 with an expectation of creating 436 new jobs in 2014.”

Veenstra’s Garage and other small businesses were selected for awards by the Small Business Administration based on their staying power, financial performance, innovation, response to adversity, contributions to their communities, and advocacy for the advancement of small business.

Recipients in the other categories are: •Small Business Person of the Year: Michael Olen Nevins of Full Spectrum Solutions Inc., Jackson.

•Veteran Owned Small Business: Michael A. Bunting, ATIGROUP Inc., Flushing.

•Young Entrepreneur of the Year: Tyler J. Decker, Pure Liberty Manufacturing, Ottawa Lake.

•Counselor of the Year: David Broner, SCORE, West Bloomfield.

•Main Street USA: Alison Barnett, Leaps and Bounds Therapy Services PLLC, Whitmore Lake.

As physicians continue to adapt to the changing climate of health care, a university program is teaching future doctors the importance of teamwork, collaboration and accounting.

Western Michigan University announced recently it will offer a dual-degree program beginning in August in collaboration with the new Homer Stryker M.D. School of Medicine and the Haworth College of Business. The new program will allow medical students to obtain a master in business administration degree with an emphasis in health care in addition to a medical degree.

Jean Shelton, director of admissions at the medical school, said as a new school, it is a great opportunity for the students and a great collaboration between the college of business and the school of medicine.

“We are looking for opportunities for our students and we know that having a business background definitely is advantageous to future physicians,” said Shelton.

“So it seems like a pretty obvious partnership between us and the Haworth College of Business.”

The five-year program allows medical students to begin their first two years of study at the WMU School of Medicine, complete an MBA in the third year, and then finish the remaining two years of medical school. According to Shelton, students can apply for the business portion of the dualdegree either upon entering medical school or during their first two years there.

Enrolled students must complete a minimum of 36 total credit hours through the MBA program at the Haworth College of Business, in addition to the necessary courses and clerkships required for the M.D. degree. According to Shelton, students do not have to take the GMAT, which is often required for graduate business schools.

“As students go out in their practice having the business acumen, it is very beneficial in helping future physicians navigate the business side of health care, which is increasing by the day,” said Shelton. “Having some of these skills and experiences before they begin their practice is really beneficial.”

WMU officials say the program offers a competitive advantage to medical students as they encounter changes in health care laws that affect clinical services. The degree

Continued on page 4 8

Continued on page 11 8

Rita and Jeff Neumann don’t just rent kayaks and canoes to clients, they come along on the tours as well. Photo by Johnny Quirin

up their customers at area hotels where they are staying, or at their homes, or even at their workplace.

The Neumanns stay with the group the entire time, either paddling along with them or waiting for them nearby at a predetermined location. When the leisurely trip is done, they take the customers back to their hotel or home.

Unlike many river trips in rented canoes and kayaks, alcohol is not allowed, noted Neumann. “We don’t need to be drunk to have a good time,” he said, although he noted that he is not a teetotaler.

There are 20 river segments for customers to choose from, ranging from 3 to 10 miles in length, on the Grand, Rogue, Flat and Thornapple

rivers. The Neumanns also take groups to any of five nearby lakes: Reeds, Green, Gun, Wabasis and Duncan near Middleville.

They also offer a Paddle & Dine river trip in which the paddlers stop halfway for lunch at a restaurant in Rockford, Middleville, Saranac or Lowell. There also is a Paddle & Art option: The first part of the day is paddling, followed by a visit to Frederik Meijer Gardens & Sculpture Park.

Jeff, 54, is a retired professor who taught electronics at Grand Rapids Community College. Rita is a physical therapist and also works in quality improvement. Both are longtime outdoor enthusiasts, she as a cycler and equestrian, and he

as a river paddler, certified as an instructor by the American Canoe Association.

With no other company in the Grand Rapids region offering a guided paddling service, the Neumanns decided to take the plunge, so to speak.

“We didn’t just buy some boats and throw them on the water and call it a business,” he said. “We spent a year planning it because we’re not business people.

“To start a business certainly is more of a challenge than I thought it would be,” he added.

They had to do a lot of learning, he said, and found there is “a lot Continued on page 8 8

Auto repair is a family affair for one of state’s top businesses Veenstra’s Garage has been a family-owned business since at least 1925.

Pete Daly

Grand Rapids Business Journal

Mike Veenstra is the third-generation owner of Veenstra’s Garage, and his son, Jason, 29, also works for the family business.

Photo by Johnny Quirin

Grand Rapids Business Journal (ISSN 1045-4055) is published weekly, with an extra issue in December, by Gemini Publications, a division of Gemini Corp­ora­tion, 549 Ottawa Ave. NW, Grand Rapids, MI 49503-1444.

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Veenstra’s Garage will be among almost 60 companies from throughout the state honored May 6 at the 10th Annual Michigan Celebrates Small Business event at Michigan State University in East Lansing.

Mike Veenstra, the third-generation owner of the repair shop at 1304 E. Fulton St. in Grand Rapids, will receive the Jeffrey Butland Family Owned Small Business Award. He said the garage was started by his grandfather and was first listed in city directories in 1925. John Veenstra had worked as a mechanic for Stutz Motor Co., which made high-end cars in Indianapolis from 1911 to 1935. John’s son, Gil Veenstra, took over the garage and was eventually followed by his son, Mike, 55, who began working full time after receiving an automotive degree from Ferris State University in 1979. Mike’s son Jason, 29, also works at the garage.

“This event really fosters the entrepreneurial spirit in Michi-

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4 Grand Rapids Business Journal April 28, 2014

Grand Rapids firm earns spot among Michigan’s top small businesses 7 Continued from page 3 •Innovation: Adam Loukus, REL Inc., Calumet.

•Government Contracting: Chris Hunt, Engineered Materials Technology Inc., Sterling Heights.

Michigan Celebrates Small Business also names The Michigan 50 Companies to Watch, which are growth-oriented second-stage businesses selected based on business expansion to global markets, job creation, technological innovation and philanthropy. The companies represent every region of the state and a wide variety of industries, and have from six to 99 employees and generate between $750,000 to $50 million in annual revenue or working capital from investors or grants in 2013. All of the companies are privately held and headquartered in Michigan.

Three Grand Rapids companies are among the 50 to Watch: Bulman Products Inc., Dominion Systems and Legal Copy Services.

Other West Michigan companies on the 50 to Watch list are: •Double O Supply & Craftsmen Inc., Byron Center •TG Manufacturing, Dorr •Next Level Manufacturing LLC, Jenison •Regal Financial Group, Kentwood •Dynamic Conveyor Corp., Muskegon •Great Lakes Potato Chip Co., Traverse City •Hospitalists of Northern Michigan, Traverse City •MyNorth Media, Traverse City •NeXt I.T., Muskegon •Smart Vision Lights, Muskegon The entire list of 2014 Michigan 50 Companies to Watch can be found at michigancelebrates.biz/ the-event/2014-award-winners.

Veenstra’s Garage employs

about 11 people. One employee retired after 30 years on the job; another retired after 28 years.

Mike Veenstra said he believes in the business strategy that recommends hiring people who are better than yourself.

“We have a strong team” as a result, he said.

“We have a company that has stood the test of time. We made it through the Depression, and I don’t know how many recessions.

We’re thriving today,” he said.

Like most small businesses, Veenstra’s Garage used to advertise in the phone book, but today it reaches a narrow demographic slice of the market, he said — too narrow. So recently Veenstra’s hired an Internet consulting firm and invested in an upgrade of its website and online marketing focusing on SEO — Search Engine Optimization — and best words to use for increasing click ranking on Internet searches.

Consumers now are “a little more discerning” because so much information is online, he said.

The Internet consultant was aware of the annual Michigan Celebrates Small Business event and urged Veenstra to submit entry information about his company because any award received would be good publicity and mean higher visibility among the competition.

Veenstra said the auto repair business in general can be difficult because there is so much competition. In his case, four other shops are within a mile of him.

He said those shops that compete on price alone are forced to rely on cheaper, lower-quality parts — and they tend to pay their employees less, too.

“To attract quality people and then to offer a product that we are happy to stand behind — that

comes at a cost,” said Veenstra.

However, he recalls that, after he took over the business, customers who came to the shop often would mention that the service his father had provided to them was “expensive, but he was fair. They were comfortable (with that),” he said.

The Great Recession was hard on many under-employed or unemployed people who had to bring their cars in for repair, said Veenstra. It caused some to forgo maintenance and minor repairs, so that when the economy began to recover, there was an uptick in business as extreme as the downturn.

For years now, Veenstra’s Garage has been a neighborhood business where military vets learn they are welcome to share their experiences — if they are willing to talk about them — while waiting for work to be done on their vehicles. It started with World War II vets and then Vietnam War vets and now, those returning from the Iraq and Afghanistan wars.

Veenstra said the stories sometimes left employees with a better understanding of what those veterans had gone through “for the freedom we enjoy today.” Once, a woman who was waiting in the shop listened to another regular customer, a Vietnam vet, talk about what he had experienced.

He had been wounded and came home with a permanent disability.

Later she sent a check to anonymously cover his repair bills.

Shop talk at Veenstra’s these days no doubt includes mention of the potholes on the streets and roads. Hitting one of the big ones “impacts the whole vehicle,” noted Veenstra. “We’ve had broken wheels and cars younger than normal with blown-out struts and shocks.”

In past years, Veenstra’s Garage has won other awards including the Better Business Bureau Integrity Award, and it has been listed in the Best of Grand Rapids readers survey in Grand Rapids Magazine.

Underwriters of Michigan Celebrates Small Business include PNC Bank, Michigan Economic Development Corp., DTE Energy Foundation, Comcast Business Class, Varnum Law, Accident Fund, Michigan Credit Union League, Consumers Energy, Constant Contact, Two Men and a Truck International, Hungerford Nichols, Huntington Bank, McLaren Health Care, Michigan

Business Network, AARP and Dynamic Edge Inc. Michigan Celebrates Small Business was launched in 2005 by the Michigan Small Business Development Center, U.S. Small Business Administration, Michigan Economic Development Corp., Edward Lowe Foundation, Small Business Association of Michigan and Chris Holman, Michigan Small Business Advocate. The mission is to highlight the contributions small businesses make to the state’s economy.

More than 1,000 are expected to attend this year’s event. For details and to purchase tickets, visit michigancelebrates.biz.

Barista school proves popular 7 Continued from page 1 barista training course for $200.

According to the business owner course description, the five-day class incorporates topics such as business planning, daily operations and systems, customer service, equipment maintenance, marketing and selecting proper equipment. The course is offered in the upcoming months of May, June, August, September, October and November. With a one-to-two trainer/student ratio, class size is limited to eight individuals in an effort to provide as much handson experience as possible and individual attention from the professional barista trainers.

“Most people (who attend the classes) have a dream to open their own coffee shop. We have people literally come from all over the world and the United States,” said White. “It’s very much a hands-on, intensive, week-long course teaching people how to be successful.”

MBS has had students from Kentucky, Texas, California and Maine — and from South Korea, Denmark, Nepal, Tibet and the Philippines. White said having students from outside the Midwest was a pleasant surprise.

“Our expectation was that the majority of our students would come out of the Midwest,” said White. “It would appeal to people who would drive in from Chicago, who might not have the wherewithal or the time to travel to the other side of the country.”

The most significant difference in the advanced barista class and the new business-owner class is that issues specific to launching and opening a new business are not addressed in the four-day advanced barista classes, which are offered during the same weeks as the five-day business owner courses.

The technical repair and maintenance workshops are targeted to individuals seeking to learn or improve their machine service skills.

In the technical classes, the focus is on espresso machines, preventive maintenance and repair, and basic training and information on water diagnosis and refrigeration service.

The workshop usually takes place the weekend following the new business owner class and is taught by Brice Greer, technical manager at Rancilio Group North America Inc., and by Groot. Rancilio Group is a manufacturer and seller of professional machines and equipment for espresso drinks, and is based in Illinois.

Using the successful foundation of JP’s Coffee & Espresso bar, MBS operates with a commitment to serving customers quality products and services in a welcoming atmosphere.

“Jack’s thing is giving back to the community — either the local or greater coffee communities,” said White. “That is what we feel our biggest strength is: the focus of being a community gathering place.”

BLM cites Michigan’s growth 7 Continued from page 1

May 29, 2014 - UICa Event details: GRMag1964.com

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omy will grow, while only 34 percent predict the U.S. economy will grow in the next six months, according to the survey. None believe the economy will get worse over the next six months.

Optimism continues to be high for Michigan’s economy in the long-term, outpacing optimism for the national economy with 71 percent of Michigan’s business leaders believing the state’s economy will grow, compared to only 46 percent of business leaders forecasting the U.S. economy will grow in the next 18 months.

Fifty-four percent of business leaders project their companies will add jobs in the next six months in Michigan, and more than half believe they will make new capital investments in Michigan.

The results reflect a survey of Business Leaders for Michigan’s 80 executive members, who are the state’s largest private sector job providers. Their companies represent nearly one-quarter of the

state’s economy.

BLM’s Quarterly Economic Outlook Reports are available at businessleadersformichigan.com/ research-and-reports.

BLM is dedicated to making Michigan a “Top Ten” state for jobs, personal income and a healthy economy, Rothwell said.

The organization is composed exclusively of the chairpersons, chief executive officers, or most senior executives of Michigan’s largest companies and universities. Although it’s based in Detroit, West Michigan is very well represented in the organization.

The membership plays a key role in driving more than 25 percent of Michigan’s economy, with those companies providing more than 325,000 direct and 820,000 indirect jobs in Michigan. They generate more than $1 trillion in annual revenue, and the university membership is involved with almost one half of all Michigan public university students. More information is available at busi nessleadersformichigan.com.

April 28, 2014 Grand Rapids Business Journal 5

West Michigan’s attraction: Here’s where the money is An expert says that’s why a St. Louis brokerage firm is setting up shop here.

Pete Daly

Grand Rapids Business Journal

St. Louis-based brokerage firm Benjamin F. Edwards & Co., which has an office in Midland, is adding a second Michigan location in Greater Grand Rapids, with a pair of experienced certified financial planners anchoring the new office under the name Brandstadt & Lambrix Wealth Advisors.

Todd H. Brandstadt and Deborah J. Lambrix, both CFPs and both formerly with Raymond James in Grand Rapids, and their support staff opened the new office April 21, at 4940 Cascade Road SE. Benjamin F. Edwards & Co. was founded in 2008 by Tad Edwards, whose father, Benjamin F. Edwards III, was former chairman and CEO of A.G. Edwards. The new company now has 43 offices nationally.

Brandstadt is branch manager and managing director/investments. He had been with Raymond James since 2008, and began his financial services career in 1993 at the Chicago Board of Trade. He then moved to the brokerage side of the business in 1995 and earned his CFP in 2007.

Lambrix, vice president/investments, is a 30-year financial services industry veteran who earned her CFP in 1991. She teamed with Brandstadt in 2007 and also moved to Raymond James in 2008.

Helping Brandstadt and Lambrix with their client responsibilities are Kari Poppema and Sandy Williams, senior registered

financial associate and registered financial associate, respectively.

Poppema earned her Registered Paraplanner designation from the College for Financial Planning in 2000 and started working with the team in 2010. Williams has worked with Brandstadt and Lambrix individually and as a member of the team for 10 years. Previously, she worked in banking for five years after earning her bachelor’s degree in business administration from Saginaw Valley State University.

All transferred to Benjamin Edwards & Co. in April from the Raymond James organization.

Brandstadt is a Detroit area native who had been working in Chicago for about 10 years when he came to Grand Rapids in 2003 to manage an A.G. Edwards office.

“Like anyone in Grand Rapids, we’ve seen phenomenal growth in the city,” said Brandstadt.

He said the Brandstadt Edwards company has an “entrepreneurial spirit” and a client-centric approach, and describes it as a “great fit” for the group.

“This is a quality team of investment professionals, who represent well over 50 years of financial services experience,” said Martin Altenberger, senior vice president and Central Region manager at Benjamin F. Edwards & Co. “They share our client-first approach and are also energized by our business model, which not only offers a robust assortment of investment products and services, but also the freedom and flexibility to make

recommendations and serve their clients as they see fit. We’re excited to have the Brandstadt & Lambrix Wealth Advisors team on board.”

Finance professor Gregg Dimkoff at GVSU’s Seidman College of Business said he was not familiar with Benjamin F. Edwards & Co. but said he would guess it is establishing a presence here for the same reason Willy Sutton famously gave when asked why he robbed banks: “Because that’s Lambrix where the money is.”

Dimkoff, who is director of GVSU’s CFP program and is a registered certified financial planner, said the market for the wealth advisors profession is “getting better across the country because of the tens of millions of baby boomers who are either retired or about to retire, and they need advice. Most of them need some sort of advice.”

Dimkoff said CFP is “the epitome of professional designations, called the Mighty CFP,” and it is “one of the tougher professional designations to get so it means something.”

“We train them to pass the (CFP) exam,” said Dimkoff, referring to GVSU students at the Seidman school.

He said there are about 60,000 CFPs in the U.S., and if there are 100 million retirees or people approaching retirement, that would mean there are about 16,000 of them for every CFP. Even people who are ready for retirement or already retired have financial questions, he said, relat-

ing to their investments, taxes, estate planning, insurance and more.

“A CFP should be able to see the whole picture,” said Dimkoff.

He touched on insurance as one example. A retired woman with a significant amount of jewelry that would be part of her estate would probably want to make sure it was safely insured, but Dimkoff points out that many people do not know that homeowners’ standard insurance policies only cover $1,500 worth of jewelry.

And if the woman’s husband has a firearms collection, he would be interested in knowing that homeowners insurance only covers $2,000 worth of firearms. And there is also a limit on how much value in furs would be covered, added Dimkoff.

“I would tell them what to do to fix that,” he said, as a CFP. He said those limits on specific types of goods are based on a standard homeowners policy “that every insurance company uses. It’s the same for everyone everywhere — except Texas,” he said.

“Age is irrelevant as to whether a person needs financial advice,” said Dimkoff.

He is especially concerned about the ability and inclination of college students today to begin to save money for retirement because far fewer jobs today offer pensions as an employment benefit. New employees have to be educated and motivated to take advantage of valuable benefits offered to them, such as a 401(k), which may offer a valuable employer match for some of the money the employee chooses to set aside for retirement.

For older individuals, he said the improving economy and surging stock market is making people wealthier, and that leads to a con-

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cern that they are still following the right strategies as far as retirement goes.

PNC Financial Services Group Inc., based in Pittsburgh and operating regional banks in 19 Eastern states, released results in late April of its semi-annual Perspectives of Retirement survey. PNC said it indicates that more than half (52 percent) of retirees it contacted have withdrawn funds from their retirement accounts without a strategy in place, and slightly more (53 percent) are concerned about running out of money. Of those taking money out of their retirement investments, 59 percent say the money is needed to cover expenses.

PNC also said Americans should begin planning for retirement sooner than they are now doing.

Dimkoff noted that “people are living longer, so they need to be concerned about that.” What he means is that some people will live longer than they anticipated and perhaps deplete their retirement funds.

Of course, young people also need financial planning help regarding their debts, the type of mortgage they should have, funding their children’s college education and their retirement.

As for CFPs who may be looking at Michigan as a place to work, Dimkoff joked that “you don’t go to Flint, you don’t go to Saginaw.”

However, Grand Rapids is “a good area with a lot of wealth, so I’m sure (Benjamin F. Edwards & Co.) noticed it.” Two more CFPs added to the region “won’t make a dent in anything. There’s enough business for everybody,” he said.

“The problem is all the yokels out there giving financial advice, and they’re not qualified,” said Dimkoff.

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6 Grand Rapids Business Journal April 28, 2014

After the storm, a rainbow.

Tory O’Haire makes doughnuts — for now — but has his sights set on changing the food culture in Grand Rapids. Photo by Matt Radick

We’ll watch your back during the storm.

Doughnuts are only the beginning for Propaganda Owner hopes to introduce other culinary trends to Grand Rapids.

Pat Evans

Grand Rapids Business Journal

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Tory O’Haire grew up on farm-totable dining, with the whole family involved in the cooking process.

“My trade is mostly farm-totable before it was cool,” he said.

“My family cooked very French, very Mediterranean, very intrinsic.”

O’Haire has brought that feel to Grand Rapids in an unusual form: doughnuts. His Propaganda Doughnuts opened in January at 117 S. Division Ave. and sells

doughnuts and European-inspired pastries as fast as he can make them.

The sweets follow O’Haire’s philosophy that any food in moderation is OK, especially when made with local and organic ingredients and lower in sugar and fat than conventional pastries.

“I was raised on the philosophy of making quality foods and to eat conscientiously; no food should be entirely off limits,” he said.

The name, Propaganda, comes from that philosophy, too — or may be, depending on O’Haire’s mood.

He said he likes to mold mysteries, and doughnuts and propaganda are two things “that have nothing to do with each other.”

On the other hand, it may be about trying to change people’s opinions about what doughnuts

are. “If doughnuts are something that are the ‘guilty’ thing — if doughnuts are evil, then I’ll open an evil doughnut shop,” he said.

“The propaganda is changing the idea that doughnuts are something you’re not allowed to have.”

His passion isn’t just for doughnuts; it’s for good food, in general.

The shop gave O’Haire his first chance to expose the community to trendy foods found elsewhere.

He has started a company — TradeRoot Ventures — he said he hopes will bring many cultural trends to Grand Rapids.

“Grand Rapids is a great place, but it is cut off from the cultural flow,” he said. “I like to imagine opening that up and allowing the trade ship coming from afar, and Continued on page 11 8

Coffee is klatching on in Grand Rapids A great coffee culture has the potential to attract young, creative talent.

Pat Evans

brands and national chains that needed a coffee that could hide defects, have a long shelf life and be marketed as bold, he said. But the true complexity of coffee begins where it’s grown, how it’s roasted and how it’s made.

Just like beer and wine, each

type of coffee offers nuances and flavors that can make taste buds dance, DeWaard said.

Customers at Rowster’s tasting room, 632 Wealthy St. SE, are increasingly open to the idea of Continued on page 8 8

Grand Rapids Business Journal

Ordering a simple black coffee is becoming more challenging in Grand Rapids.

And according to many of the locally owned coffee shop owners and baristas around town, you can begin by thanking the craft beer movement.

Still, the city’s coffee shops and roasters are helping lead a movement that, much like beer, is beginning to show the true depth of an ancient art form.

It also allows for consumers in Grand Rapids to continue their trend of buying local instead of supporting national chains.

Just like beer, a great coffee culture can attract young, creative talent, according to Justin DeWaard, director of coffee at Rowster Coffee.

“The coffee shop is like the young professionals’ office, where the brewery is like their parlor lounge,” DeWaard said. “Some way or another, we’ve come to have a wealth of a young, creative brain trust that is fueling these movements.”

The common dark roasts were made popular by grocery store

Barista Kaitlynn Broadbooks prepares a drink at Rowster’s tasting room. Photo by Matt Radick

April 28, 2014 Grand Rapids Business Journal 7

School focuses on improving Latino students’ grad rates San Juan Diego Academy carries on neighborhood’s immigrant tradition.

Charlsie Dewey

Grand Rapids Business Journal

San Juan Diego Academy has a history of helping immigrant students succeed.

For more than 100 years, the school — until a few years ago, operating under the name Holy Name of Jesus — helped the children of Italian, Polish, German and Irish immigrants adapt and excel in West Michigan.

The parochial school began to see its surrounding neighborhood change in more recent years, becoming a destination for many Latino families new to the area.

The Chicago Drive/Grandville corridor has a burgeoning Latino population, said Elizabeth Heys, San Juan Diego Academy development officer.

“Catholic schools have always had the mission and vision to serve immigrant children,” Heys said.

“The shifting population in that neighborhood really gave pause to what are the needs of the community, what are the needs of these families and these children, and can we do a better job as a Catholic school in serving those folks.”

Studies have shown children of Latino immigrants have alarmingly low high school graduation rates and few will go on to receive a college education.

“Unfortunately, of those Latino children who began at the elementary level, only 40 percent of them will graduate from high school and about 11 percent of high school graduates will go on to postsecondary school,” said Manuel J. Brenes, Ph.D., San Juan Diego Academy principal, who has extensively researched studies on Latino educational attainment in the United States.

San Juan Diego Academy noted on its website that 50 percent of Latino students in Michigan graduate from high school each year.

Interestingly, a study conducted by the University of Notre Dame suggests Latino children who attend Catholic school are 42 percent more likely to graduate from high school and more likely to graduate from college than their peers who attend public school.

Studies have indicated several contributing factors specific to the success or failure of Latino immigrant students: level of personal motivation, level of personal pride, amount of parental support, adequate school programs and the impact of peers.

Latino students who perform poorly in school often experience a lack of personal motivation, limited educational aspirations, family dynamics that negatively impact learning, lack of school involvement and an unsympathetic school environment where their specific needs are not being met.

Armed with that knowledge and based on the shifting demographics of its neighborhood, just over four years ago Holy Name of Jesus underwent a significant transition, becoming San Juan Diego Academy and adjusting its mission to focus specifically on immigrant Latino children.

The new school is an interparochial partnership, serving students from the Holy Name of Jesus, St. Joseph the Worker, St. Andrew Cathedral, St. Francis Xavier and Our Lady of Guadalupe, and Our Lady of Sorrows parishes.

“They are the parishes with the

highest population of Latinos,” Heys said.

San Juan Diego Academy does several things differently than other schools, which, based on the studies available, it expects will have a positive impact on student graduation rates and increase the number of students applying to and getting accepted into college.

First, the academic day is longer, running from 8 a.m. to 4 p.m.

The extra classroom time is helpful to students. Second, most of the teachers have five years of teaching experience or more. Third, the school requires parental involvement.

“We can’t run the school and

keep tuition down if we hire everything out,” Heys said. “So there is a high reliance on parents to participate, not only in their child’s academic progress but also in the general upkeep and support of the school. They hold fundraisers, paint, clean, run copies and work the lunch room.”

Heys said seeing their moms and dads working to keep the school going in its day-to-day operation fills students with a greater sense of responsibility to the community.

Finally, Heys said the school encourages students to take pride Continued on page 11 8

Manuel J. Brenes, San Juan Diego Academy principal, has extensively researched studies on Latino educational attainment in the United States. Johnny Quirin

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Kayak tours with a twist 7 Continued from page 3 of free assistance out there” from organizations such as SCORE and the Michigan Small Business Development Center.

They had to buy liability insurance, of course, and they hired a lawyer, and they also had to get commercial business permits from the DNR. “We just love doing this,” said Jeff. “The business part of it is probably the least fun.” Rita had just completed their taxes when Jeff spoke to the Business Journal, and he said they were “a nightmare.”

Last year they planned on 45 trips and ended up doing 42, “so I think we did good,” Jeff said.

The trips start in May and end in late October. Prices start at $30 to $40 per person.

One part of the business that’s a drag for Neumann is when it’s a beautiful day and they wait, hoping somebody calls and books a trip.

He would rather be on the water “because I enjoy it as much as anybody,” he said.

Then there are the times when they’ve got a party booked and another calls wanting to book the same day. But no, unfortunately — just one group per day. They don’t want their guests to feel rushed and the couple doesn’t want to be knocking themselves out. The canoes and kayaks have to be cleaned out back at their west side home, and there’s the driving involved.

“I don’t need to do this,” he said, adding that it is actually “more of a hobby.”

The Neumanns are proud of Grand Rapids and enjoy showing off the region to tourists and convention goers. Their service is promoted by hotels, including the Amway Grand Plaza, and by Ex-

perience Grand Rapids, which is in contact with all the convention groups in town.

Part of the reason the Neumanns don’t allow alcohol on their trips is that they are all about safety, and part of it is they don’t want to allow anything to happen that could reflect poorly on the natural beauty of the region. They also don’t let their groups go completely unescorted because, being mainly visitors from out of town, they would tend to worry the paddlers might miss the pickup spot downstream.

The Neumanns provide binoculars for the bird watchers, and snacks and beverages when the trips are done. They take photos and then mail them to their customers. “Everything they need” is provided, he said.

Downtown Grand Rapids, with its series of low dams that tamed the rapids, doesn’t really look like an idyllic spot to float down the mighty Grand, but just a couple of miles downstream past the urban area it is idyllic. Below Grand Rapids, there are no rapids or obstructions, and the wide river is thickly forested along much of its banks.

Clients have spotted bald eagles.

Neumann noted one thing many of the paddlers comment on at the end of the trips is why there aren’t other people out on the water.

Good question — but that’s obviously part of the attraction, too, and rather startling when considering how many people there really are on the other side of the tree lines along the Grand River.

“We love showing it off,” said Neumann. “It’s right there at our backdoor.”

“I’m not against going up north” to float down the Pine or Pere Marquette rivers, he said, “but that’s more than an hour or two north.

Why?”

Coffee culture is heating up in Grand Rapids 7 Continued from page 6 trying different kinds of coffee, he said, as the coffee culture has grown in sophistication alongside the city’s culinary and beer industries.

“It’s definitely similar,” DeWaard said.

“Obviously, you’ll be limited by the amount of people you can get through the door and how much coffee they can throw down, but to the people that go to a bunch of different breweries to try a ton of different beers, coffee is sort of similar.”

MadCap has made waves at its 98 Monroe Center location. The roaster has regularly been named one of the best in the country by publications such as Thrillist, and owners Ryan Knapp and Trevor Corlett have been recognized as top baristas in the nation.

“It’s similar to what we’ve seen over the craft beer movement over the last 10 years, and the wine movement over the last 20, 30 years, and is just a realization that this thing that everyone looks at as a simple commodity can also have a lot nuance, a lot of character — a lot that goes into what a great product is,” Knapp said.

MapCap recently announced plans for a new roasting facility and eventual second retail location at 1041 E. Fulton St. That’s on top of a roasting and training facility it already has in Washington, D.C. He said the primary goal for coffee enjoyment is to first make sure the beans are fresh. Ideally, the coffee was roasted in the last month, Knapp said. It’s also about taking care while making the coffee to make sure to highlight the first several steps of getting the bean from the farm to cup.

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Knapp said sometimes the price tags on MadCap’s coffee can be a bit of a shock, but that it’s going to the farmers to make sure the great coffee growers of the world can continue to make better coffee.

Coffee freshness is at the heart of the Ferris Coffee & Nut Co.’s expansion on the west side of Grand Rapids. The 90-year-old company is coming to the end of a six-phase project that includes an updated coffee manufacturing system that allows for faster roasting-to-shelf time.

“It’s not a big city, but it’s a city doing some pretty big things.

People in this area are looking for better food, better beer, better coffee. And that’s just cool.”

Mark Van Tongeren The expansion also will see its retail store at 227 Winter Ave. NW revamped to update the aesthetics. In addition, the company’s nut processing will move from its current Wyoming location to the downtown location.

Ferris sees the “third-wave” roasters such as Rowster’s and MadCap as great for the city, but shys away from that term, which can be unapproachable to novice coffee drinkers.

For context, “first-wave” roasters are large companies such as Folger’s that bring coffee into everyone’s home, and “second wave” refers to companies such as Star-

bucks that have brought coffee to every corner.

The new — or third — wave is still somewhat undefined but generally refers to the connoisseur, specialty variety of coffee roasters.

“We shy away from the term.

It’s not approachable for our coffee-drinking demographic,” said Mark Van Tongeren, director of marketing at Ferris Coffee.

“We would like to ease (customers) into it, but we don’t want them to walk in the shop and turn around and walk out because they don’t know what’s going on. But we love what third wave stands for,” he said.

Ultimately, Ferris just wants everyone to enjoy better coffee.

The company views it as a social beverage that can bring a lot of people together. To do that, Ferris wants to continue to improve its coffee and change the way Grand Rapids looks at coffee, Van Tongeren said.

“It’s like turning around a cruise ship as opposed to a SeaDoo,” he said. “They turn, but it’s a lot more difficult to turn. But we’re turning.”

The local coffee movement is cruising along, Van Tongeren said, just like the food and beer cultures.

“It’s not a big city, but it’s a city doing some pretty big things,” he said. “People in this area are looking for better food, better beer, better coffee. And that’s just cool.”

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April 28, 2014 Grand Rapids Business Journal 9

Spectrum Health shares improvement process with state Rachel Weick

Grand Rapids Business Journal

State employees and health care experts gathered at the Capitol in Lansing last week with brown-bag lunches to talk business.

Spectrum Health participated in a Lunch and Learn event sponsored by a state of Michigan department known as the Office of Good Government, part of the Michigan Department of Technology, Management and Budget.

The Office of Good Government hosted the event that invited experts to share performance improvement techniques with Michigan governmental employees.

Claire Allard, director of Office of Good Government and senior strategy advisor to the governor, said a key element of the state’s strategy to reinvent the government in Michigan is constant improvement.

“We are doing this by working with external partners to build internal capacity, empowering employees to develop and share innovative ideas and solutions, leveraging and promoting best practices across agencies, and measuring, communicating and celebrating successes,” said Allard in the press release.

Kurt Knoth, vice president of performance improvement at Spectrum Health, said the health care organization became involved in the event through its participation in the Michigan Lean Consortium, a nonprofit based near Detroit.

According to the press release, the organization is dedicated to spreading lean principles throughout every public and private sector industry in Michigan.

“Somewhere along the way, they

got a connection with Gov. Snyder and his administration for helping the state improve the way they do things,” said Knoth in reference to the consortium. “They invite leaders in different industries that are practicing process of improvements to come in and basically give a one-hour talk to their leaders and other folks that are working in government in Lansing.”

During the event, experts from Spectrum Health presented an overview of the Spectrum Health Performance Improvement System and gave examples of outcomes resulting from implementing the principles. According to the press release, SHPIS focuses on patient satisfaction, a teamwork environment and the reduction of nonvalue added activity, and provides

tools for people to improve quality and efficiency in work.

Terry Newell, director of best practice development at Spectrum Health, said the event was well attended, with various department heads and administrators present to hear about the health care improvement system. Some of the departments represented at the event were: Michigan State Housing Development Authority, Michigan Economic Development Corp., Michigan Department of Licensing and Regulatory Affairs, Department of Community Health and Michigan Department of Education.

According to the press release, SHPIS recently resulted in more than $2.1 million in savings for the 2014 fiscal year for Spectrum

Health, and $7.1 million in planned savings. Some of the non-value added activities reduced through the improvement system include: overproducing, transporting, defects, waiting, over-processing and inventory.

Through implementing best practices, the health care system also saw a 64 percent reduction in time spent waiting for a specialist referral, while improving structure in the emergency department reduced wait time.

“I think it was received quite well; a lot of people had questions afterward,” said Newell. “I think it is always important to share. This is hard stuff, and no one knows how to do it perfectly — no one knows the perfect recipe.”

There were several factors that

influenced the decision for Spectrum Health to share its improvement process at the event, including the opportunity to showcase the success and expertise the health system has had with it, according to Knoth.

“It’s the right thing to do. We are a nonprofit and part of our stated mission is to give back to the community,” said Knoth. “I think the other part is we’re doing some pretty neat things in terms of processes of improvement that applies to health care, which do apply to other industries. Most of our process improvement folks, myself included, started their careers in manufacturing. So it is kind of neat to do a transfer from a health care organization to the state of Michigan.”

JPG partners with firm 7 Continued from page 1 launched a couple of years ago in Kalamazoo by several former Kellogg employees who had worked in R&D. One of its products is a line of granola bars now sold in some Meijer and Kroger stores that feature minimal processing and are offered in the natural foods sections.

Grogg said chia seeds and quinoa are examples of food ingredients getting a lot of attention by U.S. health food manufacturers and start-ups these days, along with the gluten-free movement.

The history of famous brands in Michigan, such as Kellogg, Post and Gerber, “makes Michigan special in terms of the food industry,” said Grogg. Now, he said, the food-processing innovations in the region are often at the grassroots level.

Tonkin said his firm has been “searching a long time for just the perfect company with the right complementary alignment ability and skill set to marry. We have found it in JPG and Jeff Grogg’s management team.”

The two companies will continue to operate as usual, but now with the cooperative ability of “proven professionals, from ideation to product and research and development, branding, sales and marketing planning, distribution and financing, all under mutual management,” according to the JPG news release.

“The time is right in both of our companies’ evolution to combine resources providing young entrepreneurs immediate benefit, in the years of valuable experience we bring to each client company,” said Tonkin.

Thank you to our employees for making us a “Best and Brightest” company for the past 10 years!

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10 Grand Rapids Business Journal April 28, 2014

Now acceptiNg NomiNatioNs!

Spectrum Health announces new electrical field therapy Process is being used to treat a type of recurring brain tumor.

Rachel Weick

Grand Rapids Business Journal

to nominate someone for consideration, visit grbj.com or www.surveymonkey.com/s/4040_14nom if you’ve been nominated or would like to apply, visit grbj.com or www.surveymonkey.com/s/4040_14app

NomiNatioN/applicatioN deadliNe is July 31, 2014.

Recognition event/Reception: october 2014 More details coming this fall

contact sponsoR@gRbj.com oR call 616.459.4545 foR sponsoRship oppoRtunities.

An innovative treatment for an aggressive recurring type of brain tumor is now available in West Michigan.

Spectrum Health Medical Group announced recently it will offer an innovative electrical field treatment for patients with recurring gliobastoma multiforme, a malignant and aggressive type of brain tumor, at The Brain and Tumor Center, 25 Michigan St. NE. Dr. Seth Wolk, president at Spectrum Health Medical Group, said in a statement the health care organization continues to provide advanced treatment options that are otherwise unavailable.

“This innovative therapy provides yet another avenue for meeting patient needs, and the fully integrated approach of The Brain and Tumor Center allows patients to remain closer to home, family and community support systems,” said Wolk.

Dr. Wendy Sherman, medical director of neuro-oncology and co-director of The Brain and Spine Tumor Center, said although the gliobastoma multiforme, or GBM, tumor is rare, it is the most common for brain cancer, and the average survival rate is less than two years.

The new treatment is known as tumor treating fields therapy, or

TTF, and uses electrical currents to disrupt the rapid cell division of GBM. The Brain and Tumor Center will add TTF as a fourth option in treating the brain cancer, along with surgery, radiation and chemotherapy.

The U.S. Food and Drug Administration approved the use of the treatment in 2011 using the NovoTTF-100A System in patients who had suffered from a recurring GBM tumor. The device was developed by Novocure, an international oncology company.

“Ultimately, we want better treatment for brain cancer. I’m not saying that this is going to be that, but it is a step along the way to start looking at treatments from a different perspective.”

Dr. Wendy Sherman In the FDA study, the overall survival with NovoTTF-100A System was comparable to that seen with active, best standard of care chemotherapy, according to the FDA website. Sherman said the therapy isn’t “necessarily better” but “wasn’t inferior” to other treatment options.

Patients using the device experienced less gastrointestinal,

hematological and infectious side effects commonly associated with chemotherapy.

“It’s a good candidate for those patients who can’t tolerate chemotherapy,” said Sherman.

According to the press release, the therapy “works by creating alternating wave-like electric fields that travel across the upper region of the brain in different directions.”

The electric current interacts with the polarity in the cancer cells to halt the division or to kill the malignant cells.

At this point, the therapy is only approved for treating the recurrence of the GBM tumor.

Sherman said a long-term goal is to look at adapting the treatment for other types of brain tumors and for initial treatment of the GBM cancer.

“Ultimately, we want better treatment for brain cancer,” said Sherman. “I’m not saying that this is going to be that, but it is a step along the way to start looking at treatments from a different perspective. It is a different way we can attack these tumor cells.”

The treatment is covered by insurance in most cases due to its FDA approval, according to Sherman.

In the cases that the treatment is not covered, the company offers financial assistance. Patient costs tend to be comparable to traditional treatments.

Spectrum Health is the first to offer the therapy in West Michigan.

There are more than 100 certified treatment centers throughout the United States.

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WMU offers dual degree 7 Continued from page 3 also targets medical students interested in pursuing administrative roles later in their careers and those who want to improve problems in the workplace and patient care management.

Satish Deshpande, associate dean of graduate programs and operations for WMU’s Haworth College of Business, said medical students who participated in the MBA program prior to the development of the dual-degree appreciated learning both soft and hard skills related to business.

“We have had M.D.s in our MBA program earlier, and one of the things they really appreciate is the ability to work with others, the ability to listen.”

According to Deshpande, learning the soft skills of business are critical to succeeding in the workplace, and hard skills such as accounting and marketing are necessary to be good managers.

Dr. Hal Jenson, dean of WMU School of Medicine, said aspects of the business degree can provide an effective foundation to influence the industry.

“As we prepare our medical students to be the physician leaders of tomorrow, the MBA degree

provides the managerial and financial foundation to leverage the business opportunities of medical practice to influence change in the health care industry,” said Jenson in the press release.

According to Deshpande, the new degree is roughly two years in the making, and the Haworth College of Business was fortunate to become involved with the curriculum of the medical school.

“Medicine today is a business,” said Deshpande. “A lot of schools see that folks in medicine need to understand business skills.”

The Haworth College of Business has approximately 4,000 undergraduate students and 500 graduate students and is accredited by the Association to Advance Collegiate Schools of Business.

It is located at 1903 W. Michigan Ave., Kalamazoo, on WMU’s main campus.

WMU’s Homer Stryker M.D. School of Medicine is a nonprofit corporation and a collaboration between the university and Borgess Health and Bronson Healthcare hospitals. The medical school includes the clinical building at 1000 Oakland Drive and the new educational building at 300 Portage St., Kalamazoo, on the new W.E. Upjohn Campus.

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saying, ‘Look at all these other things people are doing.’”

O’Haire said Propaganda has allowed him to have a sustainable, low-impact business with a minimal financial commitment. Later this year, he plans to open a “latenight ramen shop” next door to Propaganda Doughnuts. He said he has several more culinary ideas up his sleeve.

“Doughnuts are kind of the jumping-off point,” he said. “Unlike trendy foods like cupcakes and chocolate bars and other popup trends across the country, the twist with doughnuts is a sense of timelessness.”

He said most people have had the urge on a Saturday morning to have a doughnut with their cup of coffee, so why not add some gourmet flair to the simple pastry?

“I could make terrible doughnuts, and people would still buy them,” O’Haire said. “But I can layer on the fact that we’re still doing really cool stuff. I can interest people who don’t care that much about doughnuts but like good food. It isn’t just another gas station selling doughnuts.”

Although he said there have been some complaints about the limited hours — 8 a.m. to noon daily, and 8 p.m. to midnight Thursday through Sunday — he has no plans to extend them at this point. O’Haire said he has tracked

“EUREKA!”

MOMENTS TO YOUR BUSINESS.

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More than just doughnuts 7 Continued from page 6

BRINGING MORE

the walkups during closed hours to make sure he isn’t losing money, and the result, he said, was that he’d lose more money by staying open extra hours.

The momentum for Propaganda Doughnuts started through several “underground” startups O’Haire has worked on. The first was The Starving Artist, a private chef business that allowed him to cook and learn how to run a business. A few years ago, he began the Full Moon Supper Club, a monthly dinner party based on a culinary theme not available at restaurants in Grand Rapids.

He said the supper club can attract more than 30 people a month, often including strangers he’s never met.

“It allowed me not only to practice cooking on a large scale, but networking,” he said. “I have a captive audience of random strangers eating my cooking and talking about ideas and food.”

He said the doughnut shop wasn’t started because of a passion for doughnuts, but a passion for food of a certain caliber and philosophy.

“I want food that makes you feel good, tastes good and is always something interesting,” he said. “I love bringing really Old World techniques or classical approaches that people won’t recognize and say, ‘That’s a cool thing.’”

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School improving grad rates 7 Continued from page 7 in their native culture and their bilingual abilities.

“At San Juan Diego, there is no embarrassment in speaking Spanish,” she said. “You want to retain that and retain the dignity of that core culture, while at the same time learning English and being academically superior in that language.”

Heys said many earlier immigrant groups saw their native language and culture as something that needed to be abandoned.

Often immigrant parents would not even allow their children to speak anything but English at home.

The school also offers ESL classes for parents so they can learn or improve their English skills.

Heys said the school would like to conduct a longitudinal study to be able to see how well its model is working, but currently it does not have the necessary funding.

Instead, it is relying on anecdotal evidence, trying to keep track of where its students end up.

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Congratulations TO THE

Best and Brightest Companies To Work For

速

in West Michigan!

a.j. Veneklasen, Inc. Acoustics By Design, Inc. Acrisure, LLC Aerotek Allied Business Services, Inc. American Axle Manufacturing AmeriFirst Home Mortgage Andy J. Egan Company Aon Applied Imaging Arthur J. Gallagher & Co. Baker Holtz, CPAs and Advisors Barnes & Thornburg LLP Baudville, Inc. BDO USA, LLP Beene Garter Blue Cross Blue Shield of Michigan Borgess Health Buist Electric C/D/H Carson City Hospital Cintas Clark Retirement Community Coldwell Banker AJS Schmidt Comcast CompHealth Consumers Credit Union Crowe Horwath LLP Crown Motors CSM Group Dan Vos Construction Company, Inc. DFCU Financial DK Security Easter Seals Michigan Elzinga & Volkers Construction Professionals Express Employment Professionals Flexco Flexfab LLC Goodwill Industries of Greater Grand Rapids

Grand Rapids Community Foundation Grand Rapids Label Company Greenleaf Hospitality Group Greenleaf Trust Hastings City Bank Hastings Mutual Insurance Company HNI Holland Hospital Honigman Miller Schwartz and Cohn LLP Hope College Hub International Midwest Limited HUMANeX Ventures Hungerford Nichols CPAs + Advisors Kalamazoo Community Foundation Kendall Electric, Inc. Kent Companies KSS Enterprises Lake Michigan Credit Union Lakewood Construction Law Weathers Life EMS Ambulance Macatawa Bank Marquette General Hospital Mercantile Bank of Michigan

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April 28, 2014 Grand rapids Business Journal 13

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Inside Track 14 Grand rapids Business Journal April 28, 2014

a PaRt-time job as a barista while he was attending college turned into a love affair with coffee for Ryan knapp. Photo by michael Buck

MadCap Coffee co-founder sees an interest here that’s influenced by the beer culture.

Knapp pours himself into city’s brewing coffee movement Pat Evans

Grand Rapids Business Journal

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yan Knapp sips his coffee like many people sample the flavor of a craft beer.

Although inverse in temperature, the effect of allowing both liquids to come to room temperature is quite similar: Fruit, nut, spices and other flavors are released.

“I can drink an ice-cold cheap beer, and say, ‘Oh, that’s great.’

But as it warms up, it tastes super skunky — all those skunk flavors come out,” Knapp said.

“I feel very similarly with coffee. If it’s a rough coffee but super hot, you can drink it. The heat shocks your taste buds. A really great cup of coffee should still taste fantastic as it cools. You can really detect the different flavors.”

The comparisons are natural for Knapp, who is co-founder and director of coffee at MadCap Coffee Co. It’s easy to see that craft beer connects people from all walks of life in Grand Rapids, as professionals regularly mingle with blue collar workers at area breweries.

And while night life and beer both are booming in West Michigan,

the coffee culture also is quietly growing, with much of the same clientele found at independently owned coffee shops around town.

“There are plenty of cities much bigger than us that don’t have anything close to the movement we have,” Knapp said. “I don’t know what it is — we have a handful of companies that do a great job, and it’s influenced by the beer culture.”

MadCap has plans to move its roasting facility to 1041 E. Fulton St. in a shared space with Brewery Vivant, which will use the space for aging its beer. Eventually, MadCap will open a second retail location at the Fulton Street spot.

For now, the roaster has moved into the future production space of The Mitten Brewing Co. on Leonard Street NW. Knapp’s journey to tasting thousands of coffees in countries across the globe didn’t come easy, but it did evolve quickly. The 28-year-old started in the coffee world at age 20, due to an oddly fortunate change of college majors.

In 2003, Knapp began studying business management at Olivet Nazarene University in Bourbonnais, Ill., south of Chicago, with

RYAN KNAPP Company: MadCap Coffee position: Co-founder; Director of Coffee age: 28 Birthplace: Bloomington, ill. residence: Grand rapids Family/personal: Married Community/Business involvement: local First Sustainability Board, Barista Guild of America, roasters Guild of America, Cup of Excellence juries.

Biggest Career Break: During the second year of operating MadCap, when he realized he actually could make a career out of coffee.

the thought of taking over his father’s contracting business. A realization of his dislike of building homes made him switch to theology. That led to his spending a lot of time at local coffee shops.

“I started getting into the study of theology and philosophy,” Knapp said. “With that comes the study of interacting with other people and the importance of that,

Inside Track APRIL 28, 2014 GRAND RAPIDS BUSINESS JOURNAL 15

and community in coffee shops. It was a big part of that for me.”

While studying abroad in Africa — Uganda and Rwanda — he discovered raising coffee is what keeps those countries afloat. He also began to realize the importance of coffee roasters in this country having sustainable programs that send more money back to the coffee farms.

“That’s the thing that keeps me excited about coffee eight years later,” he said.

“It’s such a long chain in coffee — the seedto-cup process.”

In 2007, he got a part-time job at Moon Monkey Coffee Co. in Bourbonnais, owned by his nowbusiness partner Trevor Corlett.

Knapp didn’t know much about coffee at the time — not even the difference between an espresso and regular coffee. He learned how to make the various coffee drinks and to roast coffee beans, and soon the craft and socioeconomic sides of the industry began to draw him in.

“I thought it was cool, even just learning how to make an espresso,” he said. “I just started to fall in love with coffee itself and learning about the product, about its flavors and nuances.”

As Knapp and Corlett began forming a business plan for what would become MadCap, they visited Grand Rapids several times.

Corlett had lived in the city during his college years at Cornerstone University and for a few years after.

“He was really keen on being here,” Knapp said. “Grand Rapids

is perfect. We studied the demographics, saw what was happening with the beer scene, and saw the food progressively improving.”

People still tell the business partners they’re crazy for locating a specialty coffee roaster in Grand Rapids, but since the shop’s opening at 98 Monroe Center in 2008, it’s seen nothing but success, establishing itself as a meeting hub in the heart of downtown.

At first, Knapp saw the coffee shop as a stopgap, thinking a career in coffee wasn’t realistic.

But during MadCap’s second year, Knapp began to see coffee as a legitimate option. The company won its first Good Food Award — and recently won another. Shortly after, he and Corlett finished third and fourth in the U.S. Barista Competition.

Two years ago, MadCap opened up a Washington, D.C., facility to roast coffee and train baristas.

Knapp said a café is in the plans for Washington, but right now the roasted coffee is being sold to retail shops in the area. And that’s the company’s goal: keeping its hand in both wholesale and retail.

As he puts it, there’s more opportunity in wholesale, but a café acts as a showroom where the product can be displayed and made the way it’s supposed to be.

Unlike many who look at craft commodities as superfluous and an unlikely career path, Knapp can see the way the world is going. His dedication to the craft and culture of coffee has shown him how the little things in life come together.

“It’s the connection of (seeing) how much goes into something as simple as a cup of coffee that has made me realize the same thing about everything else around me,” he said.

A simple cup of coffee can see up to 20 different hands and 13 steps before it hits the bottom of a mug, Knapp said. Those steps are so important that Knapp sees the

barista’s job as following all the steps and not screwing it up.

“That’s the thing that keeps me excited about coffee eight years later,” he said. “It’s such a long chain in coffee — the seed-to-cup process.”

He likes what Starbucks has done for coffee, although, he said, it’s not exactly a high-quality cup of joe. The company did, however, introduce consumers to the idea that it is OK to spend more on a cup of coffee.

“It’s not a fantastic product, but what they’ve done for the idea of specialty coffee is a good thing,” he said.

As the company’s director of coffee, Knapp is out of the country 12 weeks a year. On his trips, he’s making connections, sampling coffee on coffee farms, finding the right farms that fit MadCap’s needs now and in the future.

Finding good farms that produce high-quality beans means paying more for that quality.

Forming relationships with those farms can lead to the farmers earning more than three times what they would have in the past, while also offering better quality for MadCap’s customers.

Knapp tastes several thousand coffees a year to pick the two dozen a customer could sample at MadCap. He said the current culture has a simplified view about light and dark roasts, but each coffee bean is raised to highlight certain characteristics, such as the soil it was grown in.

Eighty percent of the coffee’s flavor is decided before it hits the roaster, Knapp said, and the simple commodity can have countless nuances and subtleties.

Tasting dozens of coffees a day still hasn’t gotten old for Knapp.

“It’s an exploration. I still miss things and learn things,” he said.

“That’s why I haven’t jumped ship to beer or wine. They fascinate me, too.”

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Comment & Opinion 16 Grand Rapids Business Journal April 28, 2014

Editorial

A week everyone has reason to celebrate

G

Job providers continue to be bullish on the state’s economic prospects and are backing it up with increased hiring and investment.

GUEST COLUMN

Jerry Jonckheere

Bitcoins: Currency or property?

rand Rapids Business Journal salutes regional small businesses on the eve of Michigan celebrations spotlighting accomplishments of private business owners who gird local economies.

Several metro area businesses will be honored in annual Michigan Celebrates Small Business events in Lansing, including more than a dozen companies in West Michigan noted as the Michigan 50 Companies to Watch.

Michigan Small Business Development Center Director Carol Lopucki noted the event is more than recognition of the strength of Michigan small business owners in that the entrepreneurial spirit is fostered in the process. The highlight is “the incredible economic impact these companies have made.”

These are business owners who have weathered some of the most turbulent economic impacts in history, often with far fewer resources than those accessible to Michigan’s Fortune 500 companies.

At the same time, Business Leaders for Michigan reported that its survey of large employers across the state reveals the Michigan economy will continue to grow and outperform the U.S. economy. BLM President and CEO Doug Rothwell noted, “Job providers continue to be bullish on the state’s economic prospects and are backing it up with increased hiring and invest-

I

f your bitcoin stash is hacked, can you claim a loss on your taxes?

The short answer is yes, thanks in part to a February theft of 850,000 bitcoins that has prompted the Internal Revenue Service to weigh in on a “currency” that, in some cases, has become more ethereal than virtual.

A little background first: Bitcoins are a “peer-to-peer” payment system first introduced in 2009 as an alternative to cash and credit.

While brief, the bitcoin history is sordid. Due to the anonymity provided to users — who are identified only by a character string — bitcoins initially were used mostly for illegal transactions and money laundering.

Now, bitcoins are accepted by many mainstream businesses.

There are even bitcoin ATMs that accept deposits, although they don’t dispense anything. Bitcoins may be purchased in exchange for currency, given for goods or services, or earned by “mining” or providing computer capacity to perform bitcoin transactions. Bitcoins are placed in “wallets” for safekeeping.

Transactions are recorded across multiple servers and kept in a public register called the “blockchain.”

Bitcoins have gained considerable attention lately from communities as disparate as computer nerds, mainstream shoppers, com-

ment.” Rothwell said more than half the business CEOs surveyed forecast increases in investments, and 54 percent plan to add jobs in the next six months. (Companies among BLM’s survey group represent one-quarter of the state’s economy.)

BLM also told the Business Journal new job creation crosses several business sectors and includes manufacturing, entertainment, tourism, engineering, furniture and energy companies, and that hiring is most greatly anticipated in logistics, manufacturing, technology, life sciences, engineering and tourism.

The span of these projections provides breadth of economic well-being for the longer term. No single industry carries the state.

The broad base provides growth of a more diversified economy, and therefore one more stable in continued advancement.

The Business Journal notes such measures are among existing businesses, and as Lopucki said, provide fertile ground for new businesses, including those not yet imagined. Such start-ups are likely to continue to broaden this region and Michigan’s growth across many significant business categories.

As further evidence, several stories about successful West Michigan small businesses are included in this issue. They include barista schools, canoe and kakak tours,

puter hackers and even the IRS. As bitcoins have grown in popularity, they have attracted more than 1,000 brick-and-mortar businesses and 35,000 online merchants that now accept bitcoins in the same way they accept traditional currency. However, growth has also attracted hackers and even prompted the IRS to weigh in on what bitcoins are.

The issue heated up in February, when 850,000 bitcoins worth an estimated $474 million were discovered missing from Mt. Gox, a large bitcoin exchange currently in bankruptcy proceedings. Though 200,000 bitcoins were found in March in an unused “wallet,” 650,000 bitcoins are still missing.

After this theft, the IRS felt it necessary to weigh in on bitcoins.

The IRS ruling will impact how taxpayers report losses from hackers stealing bitcoins and how taxpayers should account for gains or losses from fluctuations in their price.

The questions the IRS would consider in its ruling were intriguing: Would bitcoins be respected as a new currency, as some kind of special property, or some new other designation?

The IRS provided its interpretation March 25 when it affirmed that bitcoins, like foreign currency held for personal use, were “convertible virtual currency,” but because

doughnut shops, coffee roasters and financial services firms — all of which contribute to the fabric of the business community.

Every region in the state of Michigan reported last week that unemployment rates have fallen

— a rare occurrence in any recent decade and proof of the gains employers have forecast and continue to expect.

There is much to celebrate during the recognition of Michigan businesses this week.

Cartoon Garth Kriewall Michigan journalist, kriewall@hotmail.com

It’s a downtown fixer-upper. I’m just not sure if it’s a Ramada fixer-upper, a Hilton fixer-upper, or ... they are not the legal tender of any country, they are simply treated as property for federal tax purposes.

Think of it this way: People generally don’t keep a stack of Canadian dollars or Euros around for personal use purchases unless they intend to travel.

This presents a problem for bitcoin holders who do keep a bitcoin stash for personal use. Bitcoin values fluctuate more than most property. As a result of the IRS rules, bitcoin owners must — like holders of property or foreign currencies — keep track of every bitcoin purchase, sale or transaction, which may be fairly frequent.

For example, if Joe Smith deposits $500 into a bitcoin account that rises in value to $1,000 on the day he uses the bitcoins to buy a new guitar, Joe should report a $500 taxable gain on his next tax return.

However, if the reverse situation occurs, and Joe deposits $1,000 and the value drops to $500 when he buys the guitar, he is not able to deduct a loss for the decrease in the value if it is personal property.

The IRS ruling has also taken

all of the mystery out of treatment of stolen bitcoins: They should be treated as lost property. In technical tax terms, an involuntary conversion occurs when property is destroyed, stolen or condemned.

Losses from involuntary conversions of personal property cannot be deducted unless the losses resulted from a casualty or theft. As a final insult, they can only be deducted to the extent the losses exceed 10 percent of your adjusted gross income. Ouch.

If you intend to get with the growing bitcoin wave, be careful of record-keeping requirements for gains and that bitcoin “wallets” pilfered by wandering hackers are subject to other unfriendly tax consequences. While taxes often rain on our parades, the rain on the bitcoin parade may be unseasonably strong with the latest IRS ruling.

Letters Policy: The Business Journal welcomes letters to the editor and guest commentary. Letters and columns must include the writer’s name, address and telephone number. Guest columns do not necessarily reflect the philosophy

of the Business Journal. Letters and columns may be edited for reasons of space or clarity. Please submit to: The Editor, Grand Rapids Business Journal, 549 Ottawa Ave. NW, Grand Rapids, MI 49503 or e-mail bjletters@grbj.com.

Jerry Jonckheere is a partner in the Grand Rapids office of Plante Moran where he concentrates his practice on international tax issues. He can be reached at Jerry.Jonckheere@ plantemoran.com.

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April 28, 2014 Grand Rapids Business Journal 17

FAMILY BUSINESS MATTERS Michael Sytsma

The culture of philanthropy: a transitional advantage

G

rand Rapids boasts an impressive list of buildings, events, venues and services that are/were driven by philanthropy and help make our community excellent.

Locally owned businesses have been the engine behind much of that philanthropy. Both owners and employees often share resources with area organizations in need of support.

As a Grand Rapids banker, I have enjoyed working with many of the locally owned companies. A surprising number of these companies are family-owned and into their second, third or even fourth generations of ownership. Transitioning from one generation to the next can be a challenging endeavor: maintaining the original principles of the founder(s), proper financial planning, management development, family dynamics and many more considerations require hard work, planning and good counsel from trusted advisors.

How does a family-owned business maintain its soul while transitioning from one generation of leaders to the next? How can leaders with different styles ensure the family-owned business sustains its culture? How can a family-owned business ensure its employees continue commitments into the next generation of ownership? I posit that one effective tool is developing and maintaining a culture of philanthropy.

Although a culture of philanthropy is helpful for most businesses, the benefits to family-owned businesses may be augmented because (1) it helps sustain the familyowned business through generational changes, (2) it sustains the community in which the owner/ family resides, and (3) it clarifies purpose for the company’s employees through the generational changes in ownership.

Corporate philanthropy sustains the family-owned business by creating a meaningful bond between the company and those in the community who patronize the business, seek employment with the company and agree to provide support for the operation. Increasingly, those seeking a career are demanding to work for companies with a “conscience” and are seeking a social benefit as a result of their employer’s existence. An actionoriented, philanthropic spirit is an effective way to meet this demand.

Whether your company collects $5 for employees to wear jeans on Friday, gets a team of people to support a charity walk, or financially sponsors a fundraising event, the company is creating a sustainable trust with the community as a result of the efforts — and the participants will likely have fun at the same time.

Watching a business respond meaningfully to a community need or a local family in crisis absolutely impacts me when deciding what

company I will use for a needed service or product. It is logical: I want to support companies that support our great community, especially when those companies are owned by our neighbors.

A family-owned business sustains its community by supporting it philanthropically. Since many family-owned businesses started with a fervent desire to help make their communities better places to live and work, philanthropy is an extension of the company’s origin.

Philanthropy comes in the form of time, treasure and talent. Whatever form is offered, a family-owned business can build on its roots by continuing a giving culture.

Like many other companies in the Grand Rapids area, our bank’s leadership established practices to build a culture of philanthropy throughout the bank in its early stages of development. This early effort has created a spirit within the company that will last beyond the founder’s involvement and create a common bond among employees with the community.

Although our bank is not a familyowned business, the example can be a strong foundation on which a family-owned company can transition into the next generation.

I recently spent some time with the founder of a company that has grown into a nationally recognized success. Despite its significant growth and achievements, all stakeholders in the company meet

monthly to discuss goals, challenges, strategies and what philanthropic organizations in their city they are going to support. Giving is an integral part of the company’s identity as well as the individuals that contribute to its success.

Philanthropy has helped maintain some of the principles that defined the company in its infancy, when it was comprised of only two people.

A culture of philanthropy clarifies purpose for employees of family-owned businesses. Familyowned businesses are generally in business to support its operating costs and provide a financial return to the owners. But, they are also in business for other beneficial reasons. Identifying why the company is in business can be as important, or more important, as what the company produces or does. A commitment to philanthropic endeavors can be an enduring legacy that maintains purpose within the individuals of a company. (It’s worth suggesting Simon Sinek’s 18-minute TED talk “Start With Why” — it’s time well spent.)

This commitment to philanthropy creates a sense of purpose that will last past the first generation of a family-owned business and prepare the company for future success with a base of employees bonded in purpose. Yes, we are here to generate profits, but we do that to provide opportunities for our employees, to improve our neighborhood’s condition, to assist

others in need and to be an example for other organizations looking to plug into the community.

The dynamics and challenges inherent in family-owned businesses are many and well-documented. Philanthropy can be used to help through some generational adjustments, but the current and next generations of family-owned businesses should utilize the resources available to navigate these challenges, including their accountant, attorney, banker, other trusted advisors and organizations like the Family Business Alliance.

Additionally, they should spend time sharing best practices and concerns with other members of family-owned businesses to learn from their experiences.

Grand Rapids has a concentration of entrepreneurial spirit with many locally owned and/or familyowned businesses. Our city is also nationally recognized as a generous and charitable city filled with services and resources serving residents and visitors.

Thank you to the many businesses and individuals that have converted financial success into civic improvement. It is a legacy I hope continues for generations to come.

Michael Sytsma is the senior vice president and Grand Rapids market manager at The Bank of Holland. He can be reached at msytsma@tboh. com.

Sales Moves Jeffrey Gitomer

The biggest thing sales leaders are apt to overlook: sales!

D

ear Jeffrey, I’m a big fan of your weekly column, especially the one about making sales vs. measuring sales activity.

Brilliant! It describes my situation to a tee. I’m an outside salesman who spends countless hours filling in itineraries, CRM notes and reports. I had the biggest-ever increase in sales last year by far, yet I have been told at times I didn’t make enough calls that week. Very frustrating. Thanks for any advice you can give me.

My first piece of advice is: Get your boss fired as soon as possible.

Get a real boss, leader, coach and helper, and your sales will double.

You seem to be doing the right thing — increasing sales — and having the best year of your career.

What else could a manager want?

Sounds like it’s your manager who needs to make more calls and increase his activity.

Reality question for sales managers: Why would you, as a leader, take an improving salesperson who is having the best year of their career, and tell him or her they’re “not making enough calls”?

Why not do something to actually help?

Reality answers (pick any or all that apply): You’re an idiot who knows nothing about leadership, coaching, or creating winners.

General Sales Manager

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You’re a micro manager with little or no current sales talent yourself. (You may have sold before, but that was before the Internet, and you’ve probably never tweeted.) You’re an unschooled leader, following the old way rather than learning what’s new. You’re using CRM as an accountability tool, rather than a sales tool. You’re totally clueless about your customer base and what will grow more and profitable sales. Ouch!

Successful sales leaders are those who: • Manage the sales cycle, not call activity.

• Measure the sales cycle, not sales activity.

• Help make follow-up calls with their salespeople to learn more about the sales cycle.

• Study the last 10 sales to help understand what will make the 11th.

• Discover their most profitable customers, and then go on to uncover why they’re the most profitable.

• Find where the profit comes from in every sale.

• Discover their most loyal customer — and why they stay loyal.

Free GitBit: If you’re interested in one more idea to gain trust, go to www.gitomer.com, register if you’re a first-time visitor, and enter the word TRUST in the GitBit box.

Jeffrey Gitomer can be reached at (704) 333-1112 or e-mail salesman@ gitomer.com.

• Make a few sales calls together with their people.

• Teach salespeople to ask better questions that emotionally engage.

Reality: Maybe by spending more value time with each existing customer it will increase their wallet share and your market share, and referrals will go up.

Reality: Maybe making too many calls is actually hampering growth. Someone measuring activity and numbers would never know that. Pity.

“Measuring activity” gives you a false read on the reality of sales. And as a leader, a manager, a coach, a teacher, you have a far greater responsibility to help increase sales than to just bellow out “more calls” as your cure-all answer.

And maybe more calls is the answer, but until you uncover the other 99 possibilities, you have no right to destroy or discourage your

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best salespeople from becoming better. Or worse, they quit because they’re sick of you and your style.

Sales management and leadership is one of the hardest jobs in the world. First you have to know each of your people, why they’re working, why they’re working for you and what will make them better. Second, you have to know your customers, why your customers buy (beyond price) and what keeps them loyal. Third, you have to be a better salesperson than they are. And fourth, you have to be a great teacher — able to convey your knowledge in a way that others want to hear you.

You know these things so that when your salespeople come to you with issues, you can actually help them make the sale — not make more calls.

Make more cold calls? Huh? In 2013? Really?

If you’re looking to become a hated sales leader with lots of turnover, make your people make lots of cold calls.

If you want to drive your best people to the competition, make your people make lots of cold calls.

And if you’re looking to have low morale and poor performance on your team, make your people make lots of cold calls.

Note well: The new cold call is

a social media connection. Start with LinkedIn. The better cold call is an expanded relationship with an existing customer.

The best cold call is a referral — one that you earn, not ask for.

Big reality: The object of sales leadership is to improve individual sales, not improve “team” sales.

Bigger reality: Your encouragement and enthusiasm — to them, and with them — will help build both their confidence and their sales.

Biggest reality: Managers somehow believe their salespeople want to be on their team and win for the team and the company — to hit some big goal arbitrarily set by management.

Nothing could be further from the truth.

Salespeople want to win for themselves and their families — and they want to win for their customers. Not for you, the other employees, or the company.

Get a grip on “why” salespeople want to win. Give them real-world help. Coach them, and it will have a major impact on their sales, and your leadership success.

Editor’s note: This is a reprint of Jeffrey Gitomer’s April 15, 2013, column.

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Law Week

April 28, 2014 Grand rapids Business Journal 19

From city manager to Kent County corporate counsel Tom Dempsey has extensive experience in both law and municipal management.

K

ent County’s new corporate counsel did a lot of legal work for municipal governments at a Grand Rapids firm before becoming the actual manager in two municipalities. Now he’s back working strictly as an attorney again — but still in government.

Tom Dempsey, 51, was hired in March to replace Kent County Corporate Counsel Dan Ophoff, who retired March 31 after serving almost six years in that position.

When he accepted the job, Dempsey was city manager of Portland, a bedroom community of 4,000 on I-96 between Grand Rapids and Lansing. He had held that job since 2003, and before that, had been the village manager in Sparta from 1996 to 2002.

Dempsey, a Chicago native, “has a unique combination of experience in both municipal law and municipal management,” said Kent County Administrator/Controller Daryl Delabbio. “He is respected in the local government community and brings a wealth of experience to the position.”

Dempsey’s mother was a juvenile court judge in Chicago and his father worked as a business consultant and as a top executive at several corporations.

Upon graduation from Loyola University Chicago School of Law, Dempsey was hired in 1987 by Bloche, French & Raysa, a small Chicago firm where much of his work involved representing local municipal governments.

After growing up in Chicago and graduating from Loyola, Dempsey said he assumed his career would always be in Chicagoland. Then he met his wife-to-be, Karen, who is from Chelsea in southeast Michigan. After they married, she wanted to return to Michigan; they compromised on West Michigan because Dempsey had spent summers at a family cottage near Baldwin and liked the west side of the state.

Dempsey had enjoyed his municipal legal work at the Chicago firm, “so when the opportunity came to move to Michigan and do municipal law 100 percent of the time, we jumped at it.”

That opportunity was in 1993 at the firm of Clary, Nantz, Wood, Hoffius, Rankin and Cooper in downtown Grand Rapids. Three years later the firm dissolved, and Dempsey made the jump to municipal management. The Dempseys were living between Rockford and Sparta, and he had done legal work

Law Day

Annual celebration will focus on the right to vote.

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vices because the three lawyers in the Corporate Counsel office would never be able to do all the required legal work. Delabbio also noted the county drain commissioner department and the airport have separate legal assistance.

“The county is always being sued,” noted Delabbio, which is normal for any American county or municipality with a large population.

“I had no idea of the scope and breadth of county government in terms of what the county delivers in services to county residents. So I have to get familiar with all those departments and their legal issues.”

Tom Dempsey

when ToM deMpseY took over as kent County’s corporate counsel, it gave him a chance to utilize his legal and municipal skills in one job. photo by Michael Buck

for Sparta, which just happened to be looking for a new village manager, “so it seemed like a good opportunity.”

Dempsey said there are a lot of similarities in his duties as Kent County corporate counsel compared to his work as a municipal manager. A city manager works daily with publicly elected officials, and the same is true for corporate counsel in a major city or county government.

“In many ways, I was dealing with the same types of issues” as a municipal manager: working with elected policy-making boards, dealing with the Open Meetings Act and Freedom of Information Act requests — “and a lot of contracts,” he said.

Kent County is the state’s fourth

largest in terms of population, with about 614,000 residents in 2012. It is 864 square miles with nine cities, five villages and 21 townships.

One of the functions of the Kent County Corporate Counsel office is to ensure that all departments are aware of their legal responsibilities.

The county has 28 departments, he noted, presenting “a huge challenge in itself” to become familiar with each one and the people who run them.

“We work with them on a cooperative basis, on their civil legal issues,” he said, noting that for many, the issues are “transactional — it’s going to be contract issues.”

Some of the departments led by elected officials, such as the sheriff ’s department and treasurer, have budgets for outside legal ser-

Best practices

Intern meant

Local attorneys expect Michigan may see a decrease in harassment and discrimination claims.

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Employers need to be crystal clear about expectations for summer interns.

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Delabbio said the Corporate Counsel budget is part of the county administration budget; this year it ranges from $360,000 to $370,000, covering compensation and expenses of Dempsey and the two assistant corporate counsel attorneys: Linda Howell and Sangeeta Ghosh. There is an additional $45,000 budgeted in the general fund for outside counsel on questions that require more specialized legal experience.

“I am amazed at what the county does,” said Dempsey. “I had no idea of the scope and breadth of county government in terms of what the county delivers in services to county residents. So I have to get familiar with all those departments and their legal issues.”

Right now, he noted, his department is monitoring 16 legal actions involving the Kent County Sheriff ’s Department. In many large counties, the sheriff ’s department is the most sued, noted Dempsey, and many of those suits are filed by inmates serving sentences in the county jail.

As many corrections officials know, amateur “jailhouse lawyers” file civil suits for all manner of real and imagined grievances, large and small, down to and including the food. But it is probably the Freedom of Information Act that has

“

peTe dalY generated the most frequent legal tasks at city halls and county buildings.

“The county handles over 3,000 Freedom of Information requests every year,” said Dempsey. Those are filed with virtually any of the county departments and usually require some basic legal training to handle.

“We train the Freedom of Information Act coordinators in each of those departments that handle most of the routine requests,” he said.

Most of the requests do not come from the news media. They are mainly from private citizens who “want information on how their government operates, or they want some records,” he said. “It’s not just the Business Journal and Channel 8 and The Grand Rapids Press.”

Dempsey is a member of the Michigan Bar Association, the International City/County Management Association and the Michigan Local Government Management Association.

He and his wife, Karen, have three adult children and they still live in Portland but are planning to move to Grand Rapids.

Dempsey said he appreciated former Kent County Corporate Counsel Dan Ophoff spending his last week with him in March, going over key details about the department and the job.

Ophoff had 35 years of experience in legal work involving municipalities. His career in government began in 1978 when he joined the city of Grand Rapids’ legal department, and that experience was a great help when he went to work as Kent County Corporate Counsel in 2008.

“I hope that one of my biggest achievements was to facilitate collaboration and communication between the city of Grand Rapids and the county,” said Ophoff. “I’ve seen improvements based on group efforts; so many people have worked to accomplish that.”

Ophoff received his undergraduate degree from Calvin College before graduating from Valparaiso University Law School. He has worked on cases before the state and federal courts, including the 6th Circuit Court of Appeals.

“Dan has the demeanor of a ‘wise sage’ and was able to offer the necessary advice in a way that got the point across and in a manner that was well-received by those who sought his advice,” said Delabbio.

If an employer wants to have a particular dress code because it supports their culture or their safety practices … they need to have it in writing.

ANDREA BERNARD, PAGE 22

”

Law Week 20 Grand rapids Business Journal April 28, 2014

Law Day celebration focuses on the right to vote Speaker will examine issues that impact democracy’s ‘ability to function.’

Charlsie Dewey

Grand Rapids Business Journal

Voters’ rights have taken some big hits in the past year.

The Supreme Court first invalidated a key part of the Voting Rights Act of 1965 in a decision last summer, and then, earlier this year, the court’s decision in McCutcheon v. Federal Election Commission promised to change the political donation game, giving wealthy individuals more power in the election process by removing donation limits.

Therefore, the American Bar Association’s selection of “American Democracy and the Rule of Law: Why Every Vote Matters” as this year’s Law Day theme is particularly timely.

The Grand Rapids Bar Association has invited Jocelyn Benson, interim dean of Wayne State University, Benson to speak at its annual luncheon and awards ceremony, scheduled for 11:30 a.m., Wednesday, April 30, at the University Club, 111 Lyon St. NW. Benson has a background in election law. She founded the nonprofit Michigan Center for Election Law, which has produced a book to help guide Secretaries of

State on ways they can guard and protect the vote.

Benson will present “Every Vote Matters: Current Issues Impacting the Right to Vote” during the luncheon.

“I’m going to talk about decisions at the local, state and national level by legislators, Congress and the courts that collectively have impacted the ability of our democracy to function,” Benson said.

“There have been several decisions by the United States Supreme Court in the last decade that, piece by piece, have been dismantling gains made in the past that protected the right to vote.”

She said her presentation would focus on three main topics: voter participation, the influence of money on the vote and gerrymandering.

Benson said since the Supreme Court invalidated one component of the Voting Rights Act, some states, including Michigan, have enacted voter ID laws that could make it difficult for some people to vote.

“I think it’s important to note with voter ID issues that there has always been a requirement that voters identify themselves before they cast a ballot,” she said.

“The current strain of ID requirements are problematic because they are restrictive in what IDs are acceptable. If you have a driver’s license, you can vote. If you don’t, it’s going to be harder. Not everyone has a driver’s license.”

Benson said student and employer IDs can be just as valid in proving someone is who they say they are, but those IDs are often prohibited by voter ID laws.

People living in poverty often cannot afford an unnecessary driver’s license for the purpose of

voting, and younger people are increasingly opting not to drive, so voter ID requirements hit two important demographics on Election Day. “There are a lot of best practices that some states have adopted, and Michigan has not,” Benson said.

“Even though we might not be at the top of the list of states doing the worst things right now, we are far from being able to say we are doing the best things. Our voters really deserve the best.”

Benson is very concerned with the McCutcheon decision and other potential consequences of campaign finance laws.

“As an effect of those decisions regarding money in politics, average citizens’ voices are being drowned out of the political process,” she said.

“A lot of that is due to Supreme Court decisions that have opened the floodgates for corporations, in particular, to spend inordinate amounts of money to get people elected.”

Finally, gerrymandering is handing votes over to the controlling political party.

“Decisions on how districts are drawn by members of Congress have enabled the politicization of our districting process,” she said.

“We have four members of Congress who are not seeking reelection in Michigan (this year). We’ll talk about why the representatives coming out of those districts are a foregone conclusion because of how those districts were drawn.”

Benson said American democracy is currently under siege due to many of these recent decisions and there is potential for serious economic and educational consequences.

“A healthy democracy is impor-

tant in our society,” she said.

The GRBA also will hand out several awards during the luncheon.

The 2014 Liberty Bell Award goes to Armen Oumedian. The award honors a non-lawyer or nonprofit organization that has made an outstanding contribution to the cause of justice or to advancing public awareness of the Constitution and legal system.

“He was nominated for his philanthropic gifts and his support of the Legal Assistance Center,” said Kristin VandenBerg, president of the GRBA. “He has been active in the community since leaving his illustrious business career. In addition to having gotten excited about the work of the Legal Assistance Center, he has also focused his interests on experiential learning opportunities for students.”

This year’s President’s Award goes to Mark Smith, attorney at Rhoades McKee, in recognition of his dedication to and support for the GRBA. “Mark has served the bar in probably almost every capacity in the last 31 years he’s been a lawyer,” VandenBerg said.

She said Smith was nominated for the President’s Award specifically for his work with the 3Rs program, which helps introduce students to careers in the law. “(He was nominated) for his three-year effort to get the 3Rs program going in partnership with GRPS,” VandenBerg said. “He was the driving force behind that initiative, and he contributed so much of his time and energy to it.”

Jon Muth, attorney at Miller Johnson, will receive this year’s Donald R. Worsfold Distinguished Service Award.

“It’s designed to honor folks for their entire career of service to the bar, the profession and the community,” VandenBerg said.

“He served the Grand Rapids Bar Association in many capacities, including as chair of the pro bono committee, and he is one of the founders and driving forces in the founding of the Kent County Legal Assistance Center. He served as the organizational chair and he remains as a trustee,” she said.

Muth also has been involved in several important capacities with the Michigan Bar Association, including serving as its president. He also has been a trustee of the Michigan State Bar Foundation. He has previously received the Michigan Bar’s highest honor — the Roberts P. Hudson award — and the GRBA’s President’s Award.

Cooley Law School will present the Marion Hilligan Public Service Award to Barbara A. Craft.

“She taught for 20 years at Davenport. She’s been involved in a great number of bar activities.

She’s always been a really enthusiastic promoter of issues of justice,” VandenBerg said.

“Barb has been a member of the GRBA board of trustees and she’s chaired the Lawyer Referral on Legal Information Services Committee. She’s been on the board of the Legal Assistance Center and very active in the Women Lawyers Association.”

The GRBA also will recognize James Booth Burr Jr., Robert P. Cooper, Richard G. Leonard, Frank S. Spies and John D. Tully for 50 years of service in the legal profession.

Admission to the Law Day luncheon and awards ceremony is $25.

Call the Grand Rapids Bar Association at (616) 454-5550 to register.

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Law Week April 28, 2014 Grand Rapids Business Journal 21

Best practices for preventing harassment and discrimination charges Local attorneys expect Michigan may see a decrease in claims.

Charlsie Dewey

Grand Rapids Business Journal

According to data collected by the U.S. Equal Employment Opportunity Commission and released earlier this year, Michigan saw a slight increase in harassment and discrimination charges during fiscal year 2013.

In 2013, 2,604 harassment and discrimination charges were filed in Michigan, which is an increase from 2012’s 2,587 charges.

Michigan makes up 2.8 percent of the country’s total harassment and discrimination claims, according to the EEOC data.

Claims of racial discrimination and discrimination based on disability received the highest number of complaints in 2013, both reaching 855 charges, while sex discrimination charges in the state totaled 722. In 2012, racial discrimination charges in Michigan totaled 860, disability charges totaled 814 and sex discrimination charges totaled 686.

Across the country, the EEOC reported that 93,727 charges were received in fiscal year 2013, which is a 5.7 percent decrease from the 99,412 charges received in 2012.

The EEOC said retaliation under all statutes was the most frequently cited basis for charges of discrimination, increasing in both actual numbers, 38,539, and as a percentage of all charges, 41.1 percent, from the previous year.

This was followed by race discrimination, 33,068, or 35.3 percent; sex discrimination, including sexual harassment and pregnancy discrimination, 27,687, or 29.5 percent; and discrimination based on disability, 25,957, or 27.7 percent.

“Both race and disability discrimination increased in percentage of all charges while decreasing in raw numbers from the previous year, while charges of sex discrimination decreased by over 2,600 charges,” according to the EEOC. The EEOC touted its response to harassment and discrimination claims following the release of this data, noting this is the fourth year in a row it resolved more charges of discrimination than it took in.

“The Commission resolved 209 merits lawsuits, resulting in $39 million in monetary benefits to victims of unlawful discrimination, plus wide-ranging injunctive relief, tailored to the particular issue in the lawsuits,” said the EEOC. Despite the slight increase in Michigan charges this year, Zoe Martinez, an attorney with Rhoades McKee, said she expects Michigan’s numbers to begin to drop.

“In my experience, Michigan employers are, on the whole, very committed to maintaining Martinez a safe and collaborative work environment for their employees,” Martinez said. “As more and more employers leverage technology to automate documentation in personnel files and communicate with employees, I wouldn’t be surprised if Michigan’s numbers decrease.”

Gary Chamberlin, an attorney with Miller Johnson, noted rebounding employment numbers might also have a positive impact on EEOC filings. He said when employees have more job prospects they are less likely to file a discrimination claim and more likely to simply move on to another job.

Still, companies should be pro-

active in adopting best practices that reduce their exposure to discrimination or harassment claims.

Mary Tabin, a Rhoades McKee attorney, said companies should start by developing an ironclad non-discrimination and anti-harassment policy, complete with a clear complaint procedure that complies with Title VII. “The second Tabin and equally important step for employers to take is to invest time in training management on how to properly carry out the policy objectives,” she said.

Harassment training should not just be for managers and supervisors, however. “Annual harassment training for the general workforce is a great way to remind all employees of the employer’s commitment to maintaining a harassment-free and discrimination-free workplace,” Martinez said.

Martinez said she couldn’t overemphasize the importance of workforce training. “In the past few years, the EEOC has been a lot more aggressive in investigating Title VII discrimination and harassment claims, especially disability discrimination issues,” she said.

“The EEOC often wants to see more than just a policy printed in a handbook. The EEOC generally wants to know whether the employer engages in yearly training

to educate their managers and employees, and what other steps the employer engages in to safeguard against harassment and discrimination in the workplace.”

Documentation also is vital for employers, particularly because employees have become savvier when it comes to retaliation claims.

Chamberlin suggested that, even though Michigan is an “at will” employment state, employers would be better off treating employees like “just cause” employees. “When possible, treat all discipline and discharge situations as though the individual was a ‘just cause,’” he said. “This means thoroughly investigating and documenting performance issues and consequences as if the employer were going to an arbitration hear-

ing. This will help provide written evidence and support for the employer to defend itself in the event of a discrimination charge or lawsuit afterwards. ‘He said/she said’ verbal explanations of discipline and discharge reasons are usually unpersuasive to EEOC investigators.”

Tabin added a well-crafted termination letter that highlights the business reasons for the employee termination also would help bolster an employer’s defense.

Finally, managers should know when to let someone else step in.

“When an employer has doubts about the proper course of action to take with an employee, it is always best to talk with employment counsel before taking any action,” Martinez said.

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Law Week 22 Grand Rapids Business Journal April 28, 2014

Religious discrimination claims on the rise in Michigan Employers often aren’t aware of ‘non-traditional’ practices.

Charlsie Dewey

Grand Rapids Business Journal

Religious discrimination claims in Michigan rose 24 percent from 2012 to 2013, according to data collected by the U.S. Equal Employment Opportunity Commission.

In 2013, the EEOC received 94 charges of religious discrimination in Michigan, up from 74 charges in 2012.

Andrea Bernard, an attorney at Warner Norcross and Judd, said those numbers mean Michigan businesses need to pay attention to the EEOC’s recently updated religious accommodation guidelines.

“The EEOC has several pagBernard es of content and a number of examples that are laid out in great detail, including a number of examples based on specific filings that the EEOC has handled of late — which means that it is really on the EEOC’s radar,” she said.

Bernard said Grand Rapids’ strong tradition of Judeo-Christianity has led its employers to generally be sensitive and respectful of employees’ religious beliefs, but, at the same time, it might mean employers are less aware of the customs of other religions, particularly those that are less well known.

“As Grand Rapids and West Michigan becomes increasingly diverse and increasingly global, which I think we really are, employers need to sensitize themselves and sensitize their managers to issues of religious accommodation — particularly of faith traditions that are outside our own norm,” Bernard said.

She provided a couple of unique examples highlighted in the EEOC’s guidelines.

“There was one example that the EEOC used of a fellow who filed a claim because an employer required him to cover a tattoo,” Bernard said. “That is not an uncommon request that employers make.

“This guy said the tattoo was an homage to the sun god, Ra, who is an ancient Egyptian god, and that he was a member of a religious group that consisted of 10 people worldwide that continue to worship Ra.” It was his view that being asked to cover the tattoo went against his religious belief, and led him to file the charge with the EEOC. Bernard said the company needed to, at a minimum, have a conversation with the man regarding the tattoo and consider an accommodation.

Another case involved a man who a company believed had violated its “no weapons at work” policy.

“The weapon that this person had was a thing called a kirpan,” Bernard explained. “It’s a miniature sword that is worn by a person who is an orthodox member of the Sikhs religion. It is often worn under the clothes as a symbol of the religious commitment to defend truth and moral values.”

Bernard said it is easy for a

manager to make a mistake when it comes to religious accommodation decisions and trying to enforce workplace policies.

“I’ve seen many times where supervisors, trying to do the right thing and thinking, ‘This is my responsibility as a manager to do something here,’ really handled it the wrong way,” she said. “Not because they are malicious but because they don’t know how to handle it.”

One reason is because religious accommodation requirements are not limited to traditions followed by formal religious denominations, which many people don’t realize.

Secondly, a manager who begins a conversation by trying to determine whether something is really a sincerely held religious belief or is required by the religion is going down the wrong path and setting the company up for a religious discrimination claim, Bernard said.

“According to the EEOC, it really covers any sincerely held religious, moral or ethical belief or practice,” Bernard said.

“The EEOC actually said it is their position that whether something is truly a sincerely held belief, a protected religious belief or practice, generally won’t be scrutinized. In the EEOC’s eyes, you immediately jump to the analysis of what accommodation is required rather than having an analysis of whether an accommodation is required.”

Companies need to train supervisors and managers to have respectful conversations with their employees and not exhibit personal judgments about the employee’s belief system.

“I can tell you if an employee said, ‘This tattoo is for the sun god Ra,’ and the manager said, ‘Seri-

The kirpan sword is a symbol of the Sikh religion. A miniature version is often worn under a man’s clothes as a sign of his religious commitment.

Courtesy Thinkstock

ously? Come on,’ then, when the employer later comes back and says, ‘I cannot accommodate that,’ the EEOC is going to say, ‘It sounds more like you don’t want to accommodate it,’” Bernard said.

Religious accommodation rules do not mean companies cannot have dress code policies or that there are not circumstances when a company can say no to providing an accommodation, she added.

“If an employer wants to have a particular dress code because it supports their culture or their safety practices or what have you, they need to have it in writing,” she said.

“It’s very hard to enforce something you don’t have (in writing).

“Also, you need to support that dress code with objective factors; for example, if it is because of safety that a guy can’t come in with a long beard or a person can’t come in with long sleeves — tie it to objective factors.”

Additionally, any religious accommodation that would require an undue hardship on the employer does not need to be implemented.

According to the EEOC, “undue hardship” factors include something that is too costly, compromises workplace safety, decreases workplace efficiency, infringes on the rights of other employees, or requires other employees to do more than their share of potentially hazardous or burdensome work.

Bernard said something that would not fall under undue hardship is customer or co-worker preference. “‘I don’t want this employee to be working at the counter because my customers might think it’s odd that I have someone that has to wear a Muslim hijab that covers her head. It just doesn’t look right.

My customers might not like that.’

Customer preference is not undue hardship,” she said.

Bernard reiterated that the best way for a company to limit its risk from a religious discrimination complaint is to be aware of the EEOC guidelines, be prepared to have a respectful conversation about someone’s religious beliefs or practices, provide training for all employees on religious accommodation and tolerance, make sure any policy is written down and disseminated to employees, and know when to engage HR or legal counsel.

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Law Week April 28, 2014 Grand Rapids Business Journal 23

Michigan’s affirmative action ban is upheld Charlsie Dewey

Grand Rapids Business Journal

The U.S. Supreme Court affirmed last week the constitutionality of Michigan’s affirmative action ban in public university admissions policies.

In its 6-2 ruling, the Supreme Court said that voters have the right to determine whether a policy of race-based preferences should be continued.

Michigan voters approved Proposal 2 in 2006, which prohibited discrimination or the use of race or sex in university admissions.

The Sixth Circuit Court of Appeals later declared the amendment unconstitutional, saying that it violated the federal Constitution Equal Protection Clause.

The U.S. Supreme Court heard arguments in Schuette v. the Coalition to Defend Affirmative Action during October of last year.

“The question here is not how to address or prevent injury caused on account of race, but whether voters may determine whether a policy of race-based preferences should be continued,” Justice Anthony Kennedy noted last week in the Supreme Court’s opinion.

“The question here concerns not the permissibility of raceconscious admissions policies under the Constitution but whether, and in what manner, voters in the states may choose to prohibit the consideration of racial preferences in governmental decisions, in particular with respect to school admissions,” Kennedy added.

John Bursch, former Michigan solicitor general and currently an attorney with Warner Norcross, argued the case before the U.S. Supreme Court in the fall.

“The court ruled 6-2 that Michigan’s constitutional amendment was valid,” Bursch said. “That means it is constitutional for Michigan voters to require equal treat-

ment that does not violate equal protection. Going forward, Michigan’s public universities will not be able to use race or sex in university admissions criteria, although they will be able to take into consideration other things such as socioeconomic status and a person’s background — the holistic admissions approach that other states have used.”

Bursch said universities have been complying with the amendment during the legal process.

Other states, including California, have enacted similar laws.

“The Federal Court of Appeals and the California Supreme Court upheld the California law,” Bursch said. “Michigan’s is virtually identical, and the Sixth Circuit struck it down, so you had a conflict between the Circuit Courts and the California Supreme Court as to whether these kinds of laws are constitutional.”

Justice Elena Kagan recused herself from the case. Justice Sonia Sotomayor wrote the dissenting opinion, which was signed on to by Justice Ruth Bader Ginsburg.

Today’s decision does not impact the 2003 Grutter v. Bollinger decision, a landmark affirmative action case involving the University of Michigan Law School.

In that case, the Court said public universities could take race into consideration in limited circumstances.

The Court reaffirmed the Grutter decision as recently as last year in Fischer v. University of Texas at Austin, when it said greater analysis was needed from the lower court to determine if the University of Texas was in fact within its rights, using race in limited circumstances.

Public universities in states without laws against race-based preferences can continue to use race in admissions as one of several considerations.

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Townships appeal tribunal’s tax breaks Focus Ashley Weigel

Capital News Service

LANSING — The battle against a property tax advantage for big box retailers has been taken to the Michigan Court of Appeals.

Large retailers such as Meijer, Target and Best Buy can appeal to the Michigan Tax Tribunal to have their properties assessed at the “true cash value,” which usually results in lower property taxes. The communities with big box stores lose tax revenue.

“True cash value” is defined as the “fair market value or the usual selling price of property.”

Tax tribunal decisions in favor of a Home Depot in Breitung Township and a Lowe’s in Marquette Township were recently fought in the Court of Appeals. Attorney Stacy Hissong represented both townships in the appeal.

“The impact of that decision will affect communities where there’s been an appeal,” Hissong said.

While there have been many cases of the tax tribunal ruling in favor of the retailers, this was the first appeal of the lowered taxes in the court of appeals.

The tax tribunal does not make it a “practice” to grant reduced assessments, said Peter Kopke, chief clerk of the tribunal. The decisions

are based on evidence brought to the judges. He said it is the townships’ right by law to challenge the appeal.

The Michigan Retailers Association supported the original decision of the tax tribunal.

“The townships propose a subjective valuation to real property that would penalize businesses for profitability,” William J. Hallan, the association’s senior vice president and general counsel, said in a statement.

“Not only do the townships suggest a valuation approach that is unconstitutional, but it lacks uniformity, with the potential to result in an unfair and abusive application,” Hallan said.

Rep. John Kivela, D-Marquette, and Sen. Tom Casperson, R-Escanaba, have introduced bills to limit the retailers’ ability to get around paying higher taxes, but neither bill has moved past its initial committee hearing.

Larry Merrill, executive director for the Michigan Townships Association, said the assessed values of many of the stores are based on what the stores in Detroit are worth — which is virtually nothing, according to Merrill.

The appeal was held April 8; Hissong said there could be a decision anywhere from three weeks to three months from the hearing.

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Law Week 24 Grand Rapids Business Journal April 28, 2014

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Craig Mutch

1959

80

93

67

13

Business and corporate, employment and labor, litigation, estate planning, family law

4

Smith Haughey Rice & Roegge 100 Monroe Center NW Grand Rapids 49503 p (616) 774-8000 f 774-2461 shrr.com

Craig Neckers William Hondorp

1941

56

86

54

6

Litigation, health, construction, business, family, real estate

5

Rhoades McKee PC 161 Ottawa Ave. NW, Suite 600 Grand Rapids 49503 p (616) 235-3500 f 459-5102 rhoadesmckee.com

Paul McCarthy Robert Shaver

1960

54

54

35

6

Business and tax, estate planning and administration, real estate, litigation and family law

6

Mika Meyers Beckett & Jones PLC 900 Monroe Ave. NW Grand Rapids 49503 p (616) 632-8000 f 632-8002 mmbjlaw.com

William Horn

1951

45

50

35

4

Business, municipal, litigation, labor and employment, energy and natural resources

7

Foster, Swift, Collins & Smith PC 1700 E. Beltline NE, Suite 200 Grand Rapids 49525 p (616) 726-2200 f 726-2299 fosterswift.com

Michael Homier

2005

26

93

18

2

Business and corporate, litigation, administrative and municipal law, trusts and estates, health care

8

Clark Hill PLC 200 Ottawa Ave. NW, Suite 500 Grand Rapids 49503 p (616) 608-1100 f 608-1199 clarkhill.com

Ingrid Jensen

2006

23

331

6

1

Banking and finance, corporate, education and municipal, labor and employment, litigation, real estate

Law Weathers 333 Bridge St. NW, Suite 800 Grand Rapids 49504 p (616) 459-1171 f 732-1740 lawweathers.com

Robert Buchanan

1868

22

22

13

3

Business and labor, litigation, estates and trusts, real estate, family law

John Grant Dan Challa

1952

22

22

14

1

Real estate, business and corporate law, estate planning, commercial litigation, commercial lending, taxation, dispute resolution

Price Heneveld LLP 695 Kenmoor Ave. SE Grand Rapids 49501-2567 p (616) 949-9610 f 957-8196 priceheneveld.com/

Kevin Grzelak

1952

21

21

27

0

Intellectual property

12

Dickinson Wright PLLC 200 Ottawa Ave. NW, Suite 1000 Grand Rapids 49503 p (616) 458-1300 f 458-6753 dickinsonwright.com

Leslee Lewis Frank Dunten

1989

19

369

14

2

Corporate and finance, commercial litigation, intellectual property, real estate, insolvency and restructuring, construction, healthcare

13

Scholten Fant 100 N.Third Grand Haven 49417 p (616) 842-3030 f 846-6621 scholtenfant.com

Robert Sullivan Ronald Bultje

1957

18

18

18

0

Municipal and school, labor and employment, estate planning and elder law, family law, business and tax law

14

Cunningham Dalman PC 321 Settlers Road Holland 49423 p (616) 392-1821 f 392-4769 holland-law.com

Jeffrey Helder

1900

15

15

18

5

Estate planning, family, municipal, real estate, corporate

15

Parmenter O'Toole PC 601 Terrace St. Muskegon 49440 p (231) 722-1621 f 722-7866 parmenterlaw.com

Christopher Kelly Anna Duggins Eric Gielow

1948

14

14

14

9

Corporate, real estate, estate planning, Medicare and Medicaid, elder law, litigation

16

Dykema 300 Ottawa Ave. NW, Suite 700 Grand Rapids 49503 p (616) 776-7500 f 776-7573 dykema.com

James Brady

1984

13

349

6

1

Commercial litigation, commercial and corporate real estate, consumer finance, tax, white collar crime and corporate investigations

17

Secrest, Wardle, Lynch, Hampton, Truex & Morley PC 2025 East Beltline SE, Suite 600 Grand Rapids 49546 p (616) 285-0143 f 285-0145 secrestwardle.com

Henry Emrich

1991

12

72

13

4

Construction litigation, motor vehicle litigation, property litigation, product liability litigation, insurance coverage

18

Bolhouse, Baar & Lefere PC 3996 Chicago Drive SW Grandville 49418 p (616) 531-7711 f 531-7757 bolhouselaw.com

Joel Baar

1977

10

10

11

3

Business law, collections and creditors' rights, estate planning, personal injury, real estate and construction law

19

Bosch, Killman and VanderWal PC 2900 East Beltline Ave. NE Grand Rapids 49525 p (616) 364-2900 f 364-2901 smvpc.com

Larry VanderWal

1911

9

9

8

0

Litigation, business law, family law, estate planning, real estate law and insurance

McGarry Bair PC 32 Market Ave. SW, Suite 500 Grand Rapids 49503 p (616) 742-3500 f 742-1010 mcgarrybair.com

Mary Bonnema

2001

9

9

13

DND

Intellectual property law, litigation

Miller, Canfield, Paddock & Stone PLC 99 Monroe Ave. NW Grand Rapids 49503 p (616) 454-8656 f 776-6322 millercanfield.com

Trent Taylor Richard Gaffin

1893

9

244

5

3

9

McShane & Bowie PLC 99 Monroe Ave. NW, Suite 1100 Grand Rapids 49503 p (616) 732-5000 f 732-5098 msblaw.com 11

Business and finance, employment, litigation and dispute resolution, real estate, tax

Continued on page 26 8

Top professional

Gerardyne M. Drozdowski, an attorney at Warner Norcross & Judd, was named the National Association of Legal Secretaries of West Michigan 2014 Legal Professional of the Year.

New lawyer

Joseph J. Gavin was elected a new member of Miller Johnson earlier this month. Gavin is primarily a commercial litigator.

New address

Rhoades McKee will move in June to 55 Campau Ave. The firm will occupy three floors and more than 39,000 square feet.

Best in America

Four Law Weathers attorneys were named among The Best Lawyers in America by Woodward/White Inc., including Robert Buchanan, William R. Hineline, John M. Huff and Kurt Yost.

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IN YOUR

CORNER From the heart of Grand Rapids to the vibrant and growing lakeshore in Muskegon, we are incredibly flexible, uncommonly accessible, and always up for a challenge.

616-774-8000 ANN ARBOR

www.shrr.com

GRAND RAPIDS

MUSKEGON

Find us on: TRAVERSE CITY

Law Week 26 Grand Rapids Business Journal April 28, 2014

Top Area Law Firms

(Ranked by number of west michigan lawyers) 7 Continued from page 24 22

Williams Hughes PLLC 120 W. Apple Muskegon 49440 p (231) 726-4857 f 727-2130 williamshugheslaw.com

23

Top Areas Of Practice

9

6

DND

Municipal, Social Security, probate, personal injury

Gruel Mills Nims & Pylman PLLC 99 Monroe Ave. NW, Suite 800 Grand Rapids 49503 p (616) 235-5500 f 235-5550 gmnp.com

Thomas Behm

1985

8

8

13

4

Civil litigation, commercial/business litigation, personal injury litigation, creditors rights, medical malpractice

Kreis, Enderle, Hudgins & Borsos 40 Pearl St. NW, 5th Floor Grand Rapids 49503 p (616) 254-8400 f 254-8410 kreisenderle.com

Raymond Schultz

2005

8

33

6

2

Business and corporate, litigation, real estate, estate planning, transactional

Gary Neal

1949

8

10

12

0

Workers' compensation, Social Security disability, personal injury, criminal, family law

Verspoor Waalkes Lalley Slotsema & Talen 40 Pearl St. NW, Suite 1020 Grand Rapids 49503 p (616) 459-6100 f 459-2102 vwlst.com

Edward Talen

1983

8

8

5

DND

Business and corporate, probate and estate planning, family law, construction liens and real estate, civil litigation

Wheeler Upham PC 250 Monroe Ave. NW, Suite 100 Grand Rapids 49503 p (616) 459-7100 f 459-6366 wuattorneys.com

John Roels Gary Maximiuk

1883

8

8

6

DND

Business law, civil litigation, estate planning, insurance defense, real estate

Avanti Law Group PLLC 600 28th St. SW Wyoming 49509 p (616) 257-6807 f 257-8501 avantilaw.com

Raquel Salas Meghan Moore

2010

7

7

3

0

Business law, criminal defense, family law, immigration, labor and employment

Damon, Ver Merris, Boyko & Witte PLC 825 Parchment Drive SE, Suite 100 Grand Rapids 49546 p (616) 975-9951 f 975-9973 dvbwlaw.com

Charles Damon Larry Ver Merris

1914

7

7

4

1

Bankruptcy, corporate, estate planning, probate, family law

David Campos David Couch

1996

7

78

7

3

Terence Linn Frederick Burkhart Timothy Flory Karl Ondersma Donald Gardner Daniel Van Dyke

2011

7

7

8

DND

Grzanka Grit McDonald 2930 Lucerne Drive SE Grand Rapids 49546 p (616) 956-5559 f 956-7546 grzankagrit.net

Charles Grzanka

1977

7

7

4

0

Insurance and employer defense litigation

Plunkett Cooney 333 Bridge St. N.W,, Suite 530 Grand Rapids 49504 p (616) 752-4600 f 752-4607 plunkettcooney.com

Timothy Sheridan

1994

7

155

5

1

Banking law, municipal law, general and commercial litigation, professional liability, title insurance

Schenk, Boncher & Rypma 601 Three Mile Road NW Grand Rapids 49544 p (616) 647-8277 f 647-0958 schenkboncher.com

Gary Schenk

1978

7

7

5

9

Commercial, contract, business litigation, corporate, zoning

Aardema Whitelaw PLLC 5360 Cascade Road SE Grand Rapids 49546 p (616) 575-2060 f 575-2080 aardemawhitelaw.com

Robert Aardema Brian Whitelaw Timothy Buchalski

2001

6

6

6

1

Medical malpractice defense, insurance defense

Charles Worsfold Evan Macfarlane William McDonald Jr.

1997

6

6

5

2

Mass tort defense, no-fault, personal injury, criminal/drunk driving defense, employment

Kuiper Orlebeke PC 180 Monroe Ave. NW, Suite 400 Grand Rapids 49503 p (616) 454-3700 f 454-0441 kuiperorlebeke.com

Thomas Kuiper

2005

5

5

4

2

Commercial litigation, real estate and development, tax credit and historic preservation, corporate

Plachta, Murphy & Associates PC 124 E. Fulton St. Grand Rapids 49503 p (616) 458-3994 f 458-2410 pmalawpc.com

Brian Plachta Miles Murphy III

1996

5

DND

8

DND

Business law, divorce, estate planning, elder law, government benefits, tax resolution

Stenger & Stenger PC 2618 East Paris Ave. SE Grand Rapids 49546 p (616) 940-1190 f 940-1192 stengerlaw.com

Phillip Stenger

1994

5

16

18

31

Creditor's rights, receivership law, commercial, litigation, business law

Bos & Glazier PLC 990 Monroe Ave. NW Grand Rapids 49503 p (616) 458-6814 f 459-8614 bosglazier.com

Carole Bos

1995

4

4

4

0

Personal injury, commercial litigation, employment, eminent domain, insurance coverage

Stephen Hilger Benjamin Hammond Aileen Leipprandt Mark Rysberg

2008

4

4

4

3

Construction, complex and commercial litigation, real estate, corporate law, business law

Worsfold Macfarlane McDonald PLLC 1001 Monroe Ave. NW Grand Rapids 49503 p (616) 977-9200 f 977-9201 wmmattorneys.com

40

No. Of W. Mich.

Paralegals

9

Gardner, Linn, Burkhart & Flory LLP 2851 Charlevoix Drive, SE, Suite 207 Grand Rapids 49546 p (616) 975-5500 f 975-5505 glbf.com

37

No. Of W. Mich.

Support Staff

1985

Garan Lucow Miller PC 300 Ottawa Ave. NW, Suite 800 Grand Rapids 49503 p (616) 742-5500 f 742-5566 garanlucow.com

35

Year Established In No. Of W. Mich. Total No. Of W. Mich.

Lawyers Lawyers

Douglas Hughes

McCroskey Law 2922 Fuller Ave. NE, Suite 118 Grand Rapids 49505 p (616) 364-6607 f 364-6171 mccroskeylaw.com

28

W. Mich. Managing Partner(s)

Hilger Hammond PC 49 Monroe Center NW, Suite 200 Grand Rapids 49503 p (616) 458-3600 f 284-3067 hilgerhammond.com

No fault law, insurance coverage, premises liability, general negligence defense, family law, estate planning

Intellectual property - patents, trademarks, copyrights and related litigation

Lawful giving

Avanti Law attorneys commit their time to the community and offer substantial amounts of pro bono work throughout the year.

State role

Garan Lucow Miller attorney John E. McSorley was added to the Task Force by the Michigan Supreme Court on the Role of the State Bar of Michigan.

Business time

Nicole M. Baker joined the Business Law Department of Plunkett Cooney law firm this month.

Law professor

The Grand Rapids Business Journal list of top area law firms, ranked by number of West Michigan lawyers, is the most comprehensive available. The list is based on responses to Business Journal surveys. The Business Journal defines "West Michigan" as Allegan, Kent, Ottawa and Muskegon counties. The Business Journal surveyed 142 law firms; 56 returned surveys and 41 are listed. To be considered for future lists, e-mail pevans@geminipub.com. DND = Did not disclose

Hilger Hammond partner Stephen Hilger was named an Adjunct Professor of Law at Cooley Law School.

He will teach Construction Law.

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Law Week April 28, 2013 Grand Rapids Business Journal 27

They know where you were — but maybe for only 48 hours Ashely Weigel

Capital News Service

LANSING — Legislation requiring police to delete license plate numbers collected by automatic highspeed cameras may be coming to Michigan.

Rep. Sam Singh, D-East Lansing, wants to restrict how long police can store license plate numbers from automatic license plate readers. Singh wants police to delete the data after 48 hours. There are no limits on how long the data is kept now.

The automatic license plate readers are placed on both patrol cars and stationary objects, such as road signs and traffic lights, and capture photos of passing vehicles’ license plates. After the photo is taken, the license plate number is stored in a database that can be accessed later by police if they need to see what vehicles were in the area at the time of a crime.

While the cameras are not that large, they are visible. They vary in size and shape; some are circular while others are rectangular.

Right now the use of the readers is unregulated.

Singh has introduced legislation to require that the data be erased after 48 hours if the information is not being used in a criminal case.

He said he wants to make sure the data collected by police is erased at some time and to provide basic protection for citizens’ privacy.

The Michigan Sheriffs Association is opposed to the regulations.

The cameras are extremely useful tools in cases of missing persons, homicides and many other instances, including terrorist cases, said Terrence Jungel, the association’s executive director.

Cameras are located in many

areas in Michigan, including at the U.S. borders and on bridges all over the state. Jungel said the cameras are extremely successful in helping law enforcement place vehicles at scenes of crimes.

The cameras are not used for traffic violations, such as running red lights or speeding, but only for police investigations.

Right now, the license plate numbers caught on camera are stored in a database to which police have access. The numbers are stored without information about the drivers or vehicles attached to the plates, said Robert Stevenson, executive director of the Michigan Association of Chiefs of Police.

The problem with erasing the collected data after only two days is that not all cases can be solved in 48 hours, Stevenson said. Sometimes crimes aren’t discovered until days after they are committed, meaning if law enforcement needed access to a license plate number stored in the database, it might already be deleted.

Later, if a clue or a crime is connected to a license plate number at the scene, police can check the database to see if the vehicle with that plate had been in that area.

The database has even been able to help police solve cold cases, Stevenson said.

“License plate readers are valuable tools,” he said.

When a vehicle that has a connection with a case passes one of the cameras, police are alerted that the license plate has been spotted.

The ability to find a vehicle using license plate numbers has helped locate stolen vehicles and vehicles involved in missing person cases.

The Michigan chapter of the American Civil Liberties Union

strongly supports minimal storage of the information.

“We think the government shouldn’t store data about innocent civilians,” said Merissa Kovach, the organization’s field organizer.

The group believes license plate readers should be used only for ongoing investigations, and that law enforcement should not be able to share any of that information with

anyone else, Kovach said. The cameras could be used to track a person across the state, since photos of the license plates are captured in different places, and that is one of the major concerns of the ACLU. About 75 percent of police agencies in the U.S. used the readers in 2011, according to the ACLU National July 2013 report, “You Are Being Tracked.”

Other states have varying degrees of regulations. New Hampshire has completely forbidden the use of the cameras. Utah and Vermont require police to delete the saved data after a certain amount of time, varying from weeks to months.

The bill was discussed in the House Criminal Justice Committee in October.

Considerations on hiring summer interns Charlsie Dewey

Grand Rapids Business Journal

It’s that time of year again: Companies are likely being bombarded with résumés from want-to-be summer interns.

Before delving into that pile of résumés, however, there are several things a company should consider, including whether or not a summer internship should be paid or unpaid.

A string of lawsuits against entertainment companies has sparked debate about what duties are justifiable for an unpaid intern.

Attorney Mark Smith, of Rhoades McKee, said companies should ask themselves the experience they plan to provide an intern to determine whether that person should receive a paycheck.

“Are we providing an educational experience that, in the long term, will benefit the intern as they make career choices or go into our line of business?” Smith asked.

“Or, are we just going to bring someone in and have them be a copy clerk, or file for us, which is

really just part of the day-to-day grind of the business and doesn’t provide the intern with any legitimate experience.”

Smith said if a company is looking to bring in someone primarily to handle administrative tasks, an unpaid internship is not the route to take. A genuine unpaid internship should have a clear educational benefit for the intern.

Smith advises companies to prepare a written document stating the internship is unpaid, and include clear expectations of the educational value, training and benefits the intern will receive.

He also said it is not a bad idea to hire interns through a college’s formal internship program.

“For example, Cooley Law School has an externship program that they place students in various law firms during their third year, without the expectation of compensation,” Smith said.

“They have some pretty specific things they want to see the externs accomplish in terms of research and writing, sitting in on various types of meetings, participation,

and certain kinds of activities.”

By having clear objectives that are documented, a company can protect itself from the claim that the intern was taken advantage of.

Finally, companies should familiarize themselves with the Department of Labor’s six unpaid internship guidelines: •The internship, even though it includes actual operation of the facilities of the employer, is similar to training which would be given in an educational environment.

•The internship experience is for the benefit of the intern.

•The intern does not displace regular employees, but works under close supervision of staff.

•The employer that provides the training derives no immediate advantage from the activities of the intern, and on occasion its operations may actually be impeded.

•The intern is not necessarily entitled to a job at the conclusion of the internship.

•The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship.

Open and shut.

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Change-Ups & Calendar 28 Grand Rapids Business Journal April 28, 2014

Journalist inducted into Hall of Fame WOOD TV8’s Target 8 investigator Ken Kolker has been inducted into the Michigan Journalism Hall of Fame. Kolker has spent more than 30 years in journalism and his work has been recognized with two Michigan Emmy Awards.

The Hall of Fame nomination committee chose Kolker because of the difference his journalism work has made. His stories prompted a law requiring prisons to take prisoners’ DNA, which has led to multiple arrests.

ASSOCIATIONS

Greg Ayers, president and CEO of Discover Kalamazoo, has been appointed vice chair and chair-elect of the National Association of Sports Commissions.

BANKING

Consumers Credit Union has hired Carmen Villahermosa de Cox and Skylet Cummings as office managers of two Grand Rapids locations it will open later this year. Also, Stephanie Surns has been hired as digital strategy manager.

Founders Bank & Trust partnered with Mulick Cummings Elementary, Harrison Park Elementary and Innovation Central High School to celebrate Teach Children To Save Day. Bankers explored lesson plans that included learning how to make a budget.

Independent Bank Corp. has hired Bob Storrer, residential loan officer working from the East Beltline office; Marisol Linstro, residential loan officer who will work from the Muskegon office; and Sharon Nicholson, senior residential loan officer working from the Plainfield office.

Northpointe Bank announced David Kuiper, vice president/mortgage loan officer, has again been named to

APR 29 Thought Design Learning Studio seminar. Topic: “The Power of Trust: Learning to Leverage Trust for Success,” presented by Michael Cohen. 2-5 p.m., 10 E. Bridge St., Rockford. Cost: $75/advance; $85/at door. Information/registration: thought-design.com/learning-lab.

APR 29 West Michigan World Trade Association Breakfast Meeting. Topic: “Globalization of the Medical Device Industry.” 7:30 a.m., VanAndel Institute, 333 Bostwick Ave. NE. Information/registration: wmwta.org.

APR 30 BDO USA complimentary CPE-qualified seminar. Topic: “2014 Trends Impacting Executive and Human Resource Professionals.” 8 a.m. registration and breakfast, 8:30-10:30 presentation, Frederik Meijer Gardens & Sculpture Park, 1000 East Beltline Ave. NE. Information/ registration: bdo.com/events/3148.

APR 30 Grand Rapids Opportunities for Women program. Topic: “For Those New to QuickBooks.” 6-9 p.m., GROW, 25 Sheldon SE, Suite 210. Cost: $50-$60.

Information/registration: (616) 458-3404 or GROWbusiness.org/Events.

MAY 1 Frannet of West Michigan Franchise Expo. 2:30-5 p.m., Hyatt Place Grand Rapids-South. Information/registration: (616) 891-1374, or meet-the-franchisors. eventbrite.com.

MAY 1 Grand Rapids Area Chamber of Commerce Community Leadership Annual Fundraiser. 5:30-8:30 p.m., Urban Institute for Contemporary Arts, 2 W. Fulton St. Cost: $60/person. Information/ registration: (616) 771-0303 or grandrap ids.org/annualfundraiser.

MAY 1 Grand Rapids Opportunities For Women, Intro to GROW, free orientation for those interested in learning about GROW’s programs. Noon-1 p.m. or 6-7 p.m., GROW office at YWCA, 25 Sheldon Blvd. SE, Suite 210. Information/ registration: (616) 458-3404 or GROWbusiness.org/events.

MAY 2 Peter C. Cook Excellence in Business Award Gala/Davenport University

Mortgage Executive magazine’s 2013 Top 1 Percent Mortgage Originators in America. Kuiper is the only loan officer recognized in West Michigan.

BUSINESS SERVICES

DP Fox Ventures has hired Mark Tomasik, associate general counsel, and has promoted Jestin Simon to information technology manager and Yuriy Demidko to systems utilization manager.

Jennifer Maxson of Varnum Consulting LLC announced she has completed the application process with Inscape Publishing Inc. to become an authorized DiSC distributor. DiSC delivers insights about workplace relationships, teamwork and communication.

EDUCATION

Cornerstone University announced Dee Mooney has accepted the position of vice president and chief financial officer beginning July 1. She will oversee the university’s financial interests, business office, human resources and financial aid.

Grand Valley State University’s new Field Station building at the Annis Water Resources Institute on Muskegon Lake has been certified LEED Gold. It was completed in 2013, and LEED certification and review was completed earlier this year.

Oliver Evans, immediate past president of Kendall College of Art and Design, will serve as interim president upon the resignation of David Rosen. Evans retired as Kendall president in 2012 after leading the college for 18 years.

FINANCIAL SERVICES

Rua Associates LLC of Zeeland announced the additions of Bill Veldboom, operations manager, and Alex Calder, sales and marketing manager.

Tom Werkman has joined Legacy Trust as its first chief operating officer.

GRANTS

Cynthia Kay & Co. announced it has received national certification as a Women’s Business Enterprise by the Great Lakes certifying partner of the Women’s Business Enterprise National Council.

Grand Rapids Public Museum has been awarded a $24,000 grant from the State of Michigan Council for Arts and Cultural Affairs to fund exhibitions and programming focused on Grand Rapids. The museum also was awarded a $66,038 capital grant for the recent upgrade of the Roger B. Chaffee Planetarium.

CONSTRUCTION

HEALTH

COMMUNICATIONS

Firestone Building Products Co. LLC has honored J&L Roofing Co. with the 2014 Master Contractor Award. The Grand Rapids firm is one of 251 to earn the distinction for roofing system excellence.

Jay Bachtel has joined The Skillman Corp. as a site manager. Skillman, which provides project administration and construction management services, has offices in Kalamazoo, Indiana and Ohio.

Scholarship Fundraiser. Guest speaker: Capt. Richard Phillips. 6 p.m., DeVos Place. Information/registration: (616) 2333412 or davenport.edu/EIB. MAY 2-4 NALS of West Michigan 53rd Meeting and Legal Conference. Mission Pointe Resort, Mackinac Island. Cost: $155/ members; $165/nonmembers; $145/ students. Information/registration: info@ zelenocklaw.com.

MAY 5 Winning Minds Group seminar.

Topics: “The Power of Goals: Having It All,” (morning) and “Sales Success Strategies: Play to Win” (afternoon). 8 a.m.-noon and 1-5 p.m., presented by Matt De La Cruz. JW Marriot, 235 Louis St. NW. Information/registration: (800) 781-1118 or winningminds.com.

MAY 5-6 Grand Rapids Area Chamber of Commerce Inside Grand Rapids Tour, learn more about the city. Networking reception, 5:30-7 p.m. May 5. Day session 7:30 a.m.-5 p.m. May 6. Cost: $200/ person/nonprofit; $300/person/for-profit.

Rregistration: grandrapids.org/insidegr.

MAY 6 Michigan Celebrates Small Business Awards Dinner. 5 p.m., Breslin Center, East Lansing. Cost: $115/per person; $800/table of eight. Information/registration: (800) 362-5461 or michigancel ebrates.biz.

MAY 7 Varnum Consulting workshop “Speak Up and Be Effective.” How to think on your feet, project confidence and manage your nerves. Information/registration: (616) 336-7070 or varnumconsulting.com.

MAY 7 Women In Successful Enterprises event. Topic: “Effectively Sharing Your Story with the Media.” 5-7:30 p.m., MLIVE hub, 169 Monroe Ave. NW, Suite 100. Cost: $25. Information/registration: wiseconnections.org/events.

MAY 7-8 CareerTrack two-day seminar. Topic: “Management & Leadership Skills for Managers and Supervisors.” Ramada Plaza Hotel, 3333 28th St. SE. Cost: $299 per person or $279 for groups of three or more from same organization.

Information/registration: (800) 556-3009 or events.careertrack.com/287268.

HUMAN SERVICES

Bruce Lyon in the new director of Porter Hills’ Meadowlark Retirement Village in Sparta.

PUBLIC SERVICE

St. Ann’s has added Tim Bulson, director of community relations.

Gov. Rick Synder has appointed Doug Wood, director of the Kent County Department of Public Works, to represent governments and regions on the nine-member Michigan Recycling Council.

INSURANCE

REAL ESTATE

Compass Insurance Agency is relocating to the Steiner Building, 525 Ottawa Ave. NW in Grand Rapids, and will be open for business starting May 5.

LEGAL

Jeff Rounds has joined Mortgage 1 Inc. as business development manager.

Third Coast Development announced Max Benedict has been elected to partner of the firm. He previously served as project manager.

Attorney Shaun Patrick Willis of Kalamazoo has been certified as a member of The Million Dollar Advocates Forum.

Willis Membership is limited to trial lawyers who have won million- and multi-million-dollar verdicts, awards and settlements.

X Ventures announced Steve Penfield has joined the company as an associate.

He will be responsible for cultivating relationships and assisting with client deals in the lakeshore communities of Holland and Grand Haven.

MANUFACTURING

Ken Gronsman has joined Ari Noel Auto Center Inc. as an automotive technician.

Gronsman is a VW master certified technician.

Perrigo announced the additions of McKensey Hedberg, customer service representative; Brandon Persinger, quality manager/ quality assurance for the tablet value stream team; and Holly Kequom, systems analyst for the IT and systems team.

C3 Exchange of Grand Haven has named Barbara Lee its interim leader.

SERVICES

SPORTS

Grand Rapids Griffins head coach Jeff Blashill is the winner of the Louis A.R. Pieri Memorial Award as the American Hockey League’s outstanding coach for the 2013-14 season.

MEDIA

Tom Clinton has joined Grand Rapids Community Media Center as executive director.

Hedberg

RELIGION

Bronson Internal Medicine Hospital Specialists welcomed Dr. Ahed Zayzafoon to its team; Bronson Internal Medicine – Oak Ridge has added Haley Crites, certified physician assistant; Cristy J. Burghardt, certified physician assistant, has joined Bronson Pediatric Surgery; and Bronson HealthCare Midwest Vascular & Endovascular Surgery added Jessica Kinnell, physician assistant.

Truscott Rossman announced the addition of Amy LeFebre, senior account executive.

Change-ups Policy: The Business Journal welcomes submissions to the Change-Ups section. Send announcements concerning personnel changes, new businesses, changes of address etc. to Change-Ups Editor, Grand Rapids Business Journal, 549 Ottawa Ave. NW, Grand Rapids, MI 49503 or e-mail bjchange ups@grbj.com. Please include a SASE for any photos you wish returned.

MAY 8 GVSU/Van Andel Global Trade Center World Trade Week Conference. Focus: European Markets On The Rise. 1-5 p.m., GVSU William Seidman Center, 50 Front Ave. SW, Suite 1054. Cost: $125.

Registration: worldtradeweekmi.org.

MAY 14 CareerTrack intensive training course, “Human Resources for Anyone With Newly Assigned HR Responsibilities.”

8:30 a.m.-4 p.m., Crowne Plaza Hotel, 5700 28th St. SE. Cost: $149. Information/ registration: careertrack/com.

Michigan 8th Annual Charity Golf Outing benefiting Kids Burn Camp.

9:30 a.m., The Meadows at GVSU, 4645 W. Campus Drive, Allendale. Cost: $85/ person; $340/foursome. Information/ registration: (616) 459-1002 or bsmith@ pdr-usa.net.

MAY 8 Michigan Business And Professional Association event, West Michigan’s 101 Best and Brightest Companies to Work For. 7:30 a.m.-1:30 p.m., Pinnacle Center, 3330 Highland Drive, Hudsonville.

Information/registration: michbusiness.org.

MAY 14 Grand Rapids Bar Association Ask The Lawyer seminar. Topic: “Social Security Disability,” presented by Tom Geelhoed. 6-7 p.m., Ryerson Auditorium, Grand Rapids Public Library, 111 Library St. NE. Free and open to public. Information/ registration: grbar.org.

MAY 15 Regional Alliance for Diversity in Public Purchasing Meet the Buyers Event. 8:30 a.m.-noon, GVSU Loosemore Auditorium. Cost: $10; $20 after May 4.

Information/registration: gvsu.edu/region alalliance.

MAY 8 Muskegon Lakeshore Chamber of Commerce Lakeshore Business Expo.

1-6 p.m., Trillium Events, 17246 Van Wagoner Road, Spring Lake. Information/ registration: muskegon.org.

MAY 8 NALS of West Michigan Law Day Luncheon. Topic: “American Democracy and Rule of Law: Why Every Vote Matters,” presented by Sharon Dolenie, Michigan Election Coalition. 12:0512:55 p.m., University Club, 10th floor, Fifth Third Center, 111 Lyon St. NW. Cost: $16.50/members; $18.50/nonmembers.

Information/registration: (616) 752-2494 or lphilp@wnj.com.

MAY 13 Barnes & Thornburg LLP Labor & Employment Breakfast Briefing. 7:45-9 a.m., B&T, 171 Monroe Ave. NW, Suite 1000. Cost: free. Information/registration: (616) 742-3971, dbaar@btlaw.com or marketing.btlaw.com/gr_breakfast_brief ings_april2014/.

MAY 13 Institute for Supply Management Greater Grand Rapids Professional Development. Topic: “Contract Law,” with Ernest G. Gabbard. 5-8 p.m., GVSU DeVos Center, 401 W. Fulton St. Cost: $35/nonmembers; $12/students, retirees.

Information/registration: (616) 490-8608 or info@ismggr.org.

MAY 14 APICS-Grand Rapids Chapter Professional Development Meeting/ Dinner. Topic: “ERP: The Good, The Bad and The Ugly,” presented by Mark Hoekstra. 5 p.m., Pinnacle Center, 3330 Highland Drive, Hudsonville. Cost: $28/ members; $35/nonmembers; $15/students.

Information/registration: apics-gr.org or admin@apics-gr.org.

NONPROFITS

Lakeshore Advantage of Ottawa County has appointed Jennifer Owens president.

PUBLIC RELATIONS

MAY 14 Institute for Supply Management Greater Grand Rapids Seminar. Topic: “Identification of Supply Chain Risk and Contracting for Supply Risk Mitigation.”

8:30 a.m.-4:30 p.m. Cost: $225/nonmembers. GVSU DeVos Center, 401 W. Fulton St. Cost: Information/registration: (616) 490-8608 or info@ismggr.org.

MAY 14 Partners for a Racism-Free Community workshop. Topic: “To Be Asian in America: Success & Stereotypes,” presented by Connie Dan, director, GVSU Office of Multicultural Affairs. 11:30 a.m.-1:30 p.m., Bethlehem Church, 250 Commerce SW. Cost: $30 (includes lunch).

Information/registration: prfc-gr.org.

MAY 14-17 Michigan Historic Preservation Network conference, includes 35 sessions and tours. Commonwealth Commerce Center, downtown Jackson.

Cost: $65-$390. Information/registration: (517) 371-8080 or admin@mhph.org.

MAY 15 Grand Rapids Area Chamber of Commerce Entrepreneurial Progressive Innovative and Collaborative (EPIC) Awards Program. 5:30-8 p.m., Meijer Gardens, 1000 East Beltline Ave. NE. Cost: $60/members; $85/nonmembers.

Information/registration: grandrapids.org.

MAY 15 Michigan Works! Kent & Allegan Counties Employer Seminar with breakout sessions, keynote speaker. 7:30 a.m.-12:15 p.m., WMU Graduate Center, downtown GR, 200 Ionia Ave. SW. Cost: free. RSVP by May 9 at eventbrite.com.

MAY 15 Paul Davis Restoration of Western

MAY 16 GVSU/Van Andel Global Trade Center Symposium. Topic: “Global Trade Driving Sustainable Business Practices.”

1-5 p.m. Location: TBD. Cost: $55/members; $85/nonmembers. Information/registration: vagtc.org.

Meetings & Conventions Information: Janet Korn, (616) 2333545 or jkorn@experiencegrandrapids. org.

APR 28-MAY 5 Michigan Dental Association 2014 Annual Convention and Trade Show.

Citywide/DeVos Place.

APR 28-30 Michigan Public Health Institute 2014 Annual WIC Conference. Amway Grand Plaza/DeVos Place.

APR 28-29 Michigan Department of Energy, Labor and Economic Growth 2014 Michigan Adult Education and Training Conference. Amway Grand Plaza.

CALENDAR POLICY: The Business Journal welcomes submissions to the calendar section. Send items to Calendar Editor, Grand Rapids Business Journal, 549 Ottawa Ave. NW, Grand Rapids, MI 49503 or e-mail bjcalendar@grbj.com.

Submissions must be received at least two weeks prior to the event.

The Business Journal calendar posted on the publication’s Web site (www. grbj.com) includes listings for events extended beyond those printed in the weekly publication that are limited by space restrictions.

Area Economy & Public Record April 28, 2013 Grand rapids Business Journal 29

MICHIGAN EXPORTS Evangelos Otto Simos

Michigan exporters may look toward emerging economies

T

he World Trade Organization this month released its annual report of world trade statistics and prospects that showed worldwide merchandise trade in 2013 was sluggish for a second year in a row.

Since the 1990s, global trade has grown about twice as fast as worldwide income measured by the sum of all countries’ GDP expressed in U.S. dollars. The WTO report points out that in the last two years trade growth fell to the same rate as GDP growth, meaning global trade has shifted from a 2:1 to a 1:1 relation with income, prompting analysts to question whether the favorable environment will ever return.

China was the world’s top merchandise exporter for the fifth year in a row, accounting for 12 percent of world merchandise exports.

Chinese exporting companies sold $2.2 trillion worth of goods worldwide in 2013, which was 8 percent more than in 2012.

American exporting companies had one of their best years in 2013, shipping abroad $1.6 trillion worth of goods. National merchandise exports rose 2 percent in 2013, fol-

lowing an increase of 4 percent in 2012. As a result, WTO ranked the United States the world’s second largest merchandise exporter in 2013.

Germany was ranked as the world’s No. 3 exporter in merchandise trade in 2013. German exporters sold $1.4 trillion worth of goods worldwide, which was 3 percent more than in 2012.

In sum, worldwide exports of goods rose 2 percent to $18 trillion in 2013, which was a moderate acceleration from last year’s zero growth. The world’s top three exporters — China, the United States and Germany — accounted for 28 percent of the world’s exports last year.

In the first two months of 2014, national exports of goods rose to $265 billion, which is $3.5 billion — or 1.3 percent — more than the same period in 2013. The monthly numbers for 2014 indicate that American foreign sales continue to grow but at a slower pace than a year ago amid a lingering recession in Europe and weakening economic growth in emerging countries.

Weaker foreign demand for American products leads to a

slowdown in overall corporate sales, shrinking profitability and fewer capital expenditures. Fading exports adversely affect the creation of new jobs.

How well have Michigan’s exporters done so far in 2014?

During the January-February period, exports of goods from Michigan, seasonally adjusted, decreased by an annual rate of 3.6 percent from the same period of 2013. Like the national numbers, state trade figures are adjusted for seasonal variation, a statistical process that smoothes volatility in monthly data by eliminating the effects of uneven recurring events such as the number of days in a month and holidays, thus providing a better picture of the underlying trend in exports.

As a result, Michigan ranked 31st in export growth among states in the first two months of this year.

The latest snapshot of monthly trade numbers shows exports from Michigan’s companies rose 3.4 percent in February from the previous month, following a decrease of 4.6 percent in January. At the February mark, foreign sales registered $4.7 billion, seasonally

adjusted, which is $155.9 million more than in January.

Was February’s performance in state exports even across industries?

Manufactured goods, a major contributor to export-related jobs, accounted for 86 percent of all state exports. Foreign shipments from Michigan’s manufacturers increased in February by 2 percent from the previous month, to $4.06 billion, adjusted for seasonal variation.

On an annual basis, overseas sales from state factories were $26.8 million, or 1.1 percent lower than in February of last year.

Exports of non-manufactured goods went up 13.6 percent in February to $646.2 million, adjusted for seasonal variation. This group of shipments abroad consists of agricultural goods, mining products and re-exports, which are foreign goods that have entered the state as imports and are exported in substantially the same condition.

What are the prospects for global trade for the rest of 2014 and in 2015, which will influence the demand for Michigan’s foreign

West Shore Bank Corp. 12-Month Stock Activity

Aviation Activity Report

26 22 18 14

A 13

M 13 J 13

J 13 A 13

S 13

O 13

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Evangelos Simos is chief economic adviser of the consulting and research firm e-forecasting.com. He can be reached at eosimos@e-fore casting.com.

Kent County Department of Aeronautics

Featured West Michigan Stock

10

sales and eventually the state’s overall economic development along with the creation of exportrelated jobs?

“Looking ahead, if GDP forecasts hold true, we expect a broadbased but modest upturn in 2014, and further consolidation of this growth in 2015,” said Roberto Azevêdo, WTO’s director-general.

“For 2014, world trade should rise by 4.7 percent. This is not yet quite at the historical average, but it is better than last year. It would definitely be a step in the right direction. We foresee a 5.3 percent increase in world trade in 2015.

This would be in line with the 20year average,” he said.

The projection suggests that Michigan companies will continue to receive bigger export orders from foreign buyers this year. It also suggests there will be better export opportunities for local exporters in the emerging economies than in the industrial countries.

F 14 M 14 A 14

$0.40 dividend paid in July. $0.42 dividend paid in February.

Point Gainers & Losers

% Gainers & Losers

Perrigo Co. ..........................................+8.23

West Shore Bank Corp. ................... +8.0%

West Shore Bank Corp. ....................+1.75

Perrigo Co. ...........................................+5.7%

Johnson Controls Inc. .................... +1.52

Spartan Motors Inc...........................+5.2%

Gentex Co................................................+.92

HCB Financial Corp. ........................+3.8%

Pfizer Inc. .................................................+.91

Johnson Controls Inc.......................+3.3%

Fifth Third Bancorp. ............................-.85

Fifth Third Bancorp. .........................-3.9%

DTE Energy Co. .....................................-.68

Mercantile Bank Corp....................... -1.9%

Universal Forest Products Inc. .........-.63

Independent Bank Corp.................. -1.9%

CMS Energy Corp. ................................-.50

CMS Energy Corp. ............................ -1.7%

Chemical Financial Corp. ................... -.41

Chemical Financial Corp. ............... -1.3%

Monday mornings are better

The Grand Rapids Business Journal Report, only on WZZM 13 News.

WATCH IT EVERY MONDAY AT 6 A.M. www.grbj.com | www.wzzm13.com

passenger activity Enplaned Passengers Deplaned Passengers Passenger Totals aircraft operations Air Carrier Commuter & Air Taxi Military General Aviation Itinerant Local Total G.A. Total Operations Freight activity Enplaned Freight Deplaned Freight Freight Totals

MORTGAGES

Selected mortgages filed with Kent County Register of Deeds celadon ii llc, mercantile bank of michigan, condo-celadon new town condominiums, $783,040 konwinski, Jerad J. et al, top flite financial, algoma twp., 33-9-11, $206,900 lee, thomas c. et al, wells fargo bank, tammarron no. 2, lot 62, $378,568 makuski, debra Jean et al, lake michigan credit union, ada twp., 24-7-10, $250,000 todd, bruce et al, freedom mortgage corp., crystal springs Plat no. 3, lot 141, $201,747 Pell, tyler J. et al, northpointe bank, condocascade lakes condominiums, $368,600 lockington, david k. et al, fifth third mortgage, kentwood, 35-6-11, $258,000 cota, mark et al, amerifirst financial corp., condo-copper corner, $223,920 smith, allison et al, citibank, condo-indigo Ridge, $291,536 lewis, matthew P. et al, fifth third mortgage, lowell twp., 15-6-9, $209,000 williams, John et al, mortgage 1, condoburton Pointe, $231,869 falcon custom homes inc., lake michigan credit union, condo-manchester hills condominiums, $908,400 sadek, Paul c. trust et al, JP morgan chase bank, mason lake estates no. 2, lot 29, $304,000 kaechele, kurtis c. et al, talmer bank & trust, condo-arbor hills site condominiums, $259,218 mccambRidge, steven g. et al, lake michigan credit union, algoma twp., 23-9-11, $225,000 gail leasing llc, mercantile bank of michigan, tixkokob add., lot 12, $250,000 bolam, michael R. et al, Premia mortgage, condo-nature’s Place site condominiums, $287,100 molotky, thomas e. et al, lake michigan credit union, condo-clements mill, $270,400 cottage gRouP inc., chemical bank, Panfil’s assessor’s Plat no. 26, lot 507,

03.2014

03.2013

% Change

01.2014 03.2014

01.2013 03.2013

% Change

106,145 107,699 213,844

103,097 98,946 202,043

2.96% 8.85% 5.84%

276,715 265,669 542,384

271,356 256,331 527,687

1.97% 3.64% 2.79%

1,689 1,933 56

1,388 2,370 89

21.69% -18.44% -37.08%

4,188 5,668 108

3,787 6,616 289

10.59% -14.33% -62.63%

2,014 752 2,766 6,444

2,072 508 2580 6,427

-2.80% 48.03% 7.21% 0.26%

4,841 1,468 6,309 16,273

5,257 1,151 6,408 17,100

-7.91% 27.54% -1.54% -4.84%

3,871,596 3,099,553 6,971,149

3,588,984 3,327,388 6,916,372

7.87% -6.85% 0.79%

11,149,087 8,899,566 20,048,653

10,328,580 9,901,258 20,229,838

7.94% -10.12% -0.90%

$288,000 cottage gRouP inc., chemical bank, converse & tolford’s add., lot 5, $288,000 behRendt, leslie c. et al, Quicken loans, condo-cross creek condominiums, $212,352 coit aVenue gRaVel co. inc., first national bank of michigan, Plainfield twp., 28-8-11, $615,000 Veitch, shawn R. et al, lake michigan credit union, condo-duncan cove site condominium, $234,300 haaRaoJa, brian J. et al, independent bank, condo-burwood, $417,000 haaRaoJa, brian J. et al, independent bank, condo-burwood, $213,000 hunsbuRgeR, Jeffrey f. et al, green tree servicing, steinmann’s assessor’s Plat no.

39, lot 1127, $206,000 Russell, Jason R. et al, the bank of holland, condo-sun-da-go, $417,000 PeRRin, carl et al, cole taylor bank, condochandler woods, $252,000 muldeR, brian et al, amerifirst financial corp., condo-sunflower Ridge, $351,000 Rsg Real estate llc, mercantile bank of michigan, Johnson & averill’s add., lot 4, $376,000 holt, steven P. et al, global financial & leasing services, ada twp., 18-7-10, $287,960 seymouR chRistian RefoRmed chuRch, christian Reformed church loan fund inc. us, grand Rapids, 8-6-11, $500,000 banta, theodore w. et al, huntington national bank, condo-hunters Run, $300,700 hages, michael t. et al, founders bank & trust, cascada Point, lot 45, $252,000 buth, travis et al, macatawa bank, condoVickery at beard farms, $340,800 hoyt, charles b. et al, talmer bank & trust, indian Village, lot 8, $218,000 bosco constRuction inc., the bank of holland, Jasonville farms sub. no. 9, lot 197, $277,500 bosco constRuction inc., the bank of holland, Jasonville farms sub no. 9. lot

197, $250,000 kosteR, nicholas J. et al, lake michigan credit union, courtland twp., 27-9-10, $328,000 hookeR, Joseph J. et al, independent bank, condo-bagley townhouses, $417,000 Jenkins, kyle et al, independent bank, condo-River bluffs, $417,000 fReese, Jason et al, guaranteed Rate, crystal springs Plat no. 6, lot 280, $274,750 access24 self stoRage easteRn aVenue llc, macatawa bank, grand Rapids, 20-6-11, $167,439 ubaldo, Joseph m. et al, lake michigan credit union, ada twp., 35-7-10, $320,000 society foR PRotestant RefoRmed secondaRy education, west michigan community bank, fenske Plat, lot 12, $712,000 collins, orville lee Jr. et al, the bank of holland, belmont, $408,000 ami giusti design llc, RJf Ventures, condo-manchester hills condominiums, $600,000 ami giusti design llc, RJf Ventures, cascade twp., 4-6-10, $350,000 koldenhoVen, timothy et al, lake michigan credit union, creekside estates, lot 1, $227,500 Jones, heath a. et al, ark-la-tex financial services, lenwood west, lot 6, $240,000 Plafkin, Joseph et al, ark-la-tex financial services, whispering brook no. 5, lot 140, $246,489 williamson, gregory et al, schowalter, ada twp., 30-7-10, $205,000 bowman, Jacob et al, Ross mortgage corp., condo-trailside woods, $228,563 coalteR, charity et al, choiceone bank, tyrone twp., 21-10-12, $249,600

PUBLIC RECORD AVAILABLE ONLINE: for the full version of this week’s Public Record, visit the grand Rapids business Journal’s website at grbj.com.

Street Talk 30 Grand Rapids Business Journal April 28, 2014

You’re never too old, or young, to learn Wheels deal.

W

hen the students at Alma College gathered for commencement ceremonies earlier this month, they probably had no idea they would be told to “keep on ignoring that conventional wisdom.”

But that’s what happens when you give the pulpit to Lou Glazer, president of Michigan Future Inc. Glazer is a huge proponent of the knowledge-based economy and higher education, and took the opportunity to inform the graduating Scots of what life will be like in the “real” world.

“First and foremost: You made the right decision. I know the new conventional wisdom is that we have too many four-year degree graduates, particularly in the liberal arts. Therefore, the story goes, you are likely to end up in jobs that don’t use your skills and pay too little to pay off student loans. Don’t believe it! It’s not true.”

Part of his proof? That would be the Business Journal’s most recent class of 40 Under Forty.

“It was my great pleasure to serve as a judge for the Grand Rapids Business Journal’s 2013 40 Under Forty class. As we were going through write-ups of the nearly 140 nominees, what struck me was how many seemed to be in creative occupations and/or industries.

Not consistent with the image of a manufacturing-centered region.

Nor consistent with the story that we are told repeatedly: that jobs for college graduates are increas-

Business Journal Staff

ingly concentrated in science, technology, engineering and math occupations.

“Sure seemed like a lot of the nominees worked neither for an employer that made things nor were in science- and math-based occupations. In fact, the nominees at the undergraduate level primarily have liberal arts degrees — the kind of degrees that conventional wisdom increasingly is predicting is a path to underemployment and wages too low to pay off so-called crushing student loans.”

Glazer pointed out the nominees “overwhelmingly” work in the knowledge-based sectors of the economy: health care and social assistance; education; management of companies; professional services; finance and insurance; and information.

“In terms of occupations, the 40 Under Forty represent well the broad diversity of opportunity in a 21st century economy — and the continuing reality that the liberal arts remain a reliable path to success.”

Classy trip There are talkers, there are listeners, and there are doers. Dan Behm doesn’t say a whole lot, but he listens well and does plenty.

The Open Systems Technologies CEO is paying for all the costs and assisting with coordination for fourth-graders from seven westside Grand Rapids Public Schools to take field trips to the beach.

Hoffmaster State Park would seem an odd destination for one of the area’s pre-eminent tech firms, since computers, screens and the Internet don’t play well with the sand. But that’s not the point.

In a brainstorming meeting with GRPS officials, OST was discussing partnership ideas with GRPS’ John Helmholdt when a comment sparked Behm’s attention. It alluded to the fact that a high percentage of GRPS elementary-age children most likely have never seen Lake Michigan. It was speculated that some students rarely venture beyond the city limits, due in part to transportation and financial constraints.

It was at that moment Behm offered the idea of OST supporting a series of field trips to Lake Michigan that, at the very least, allow the children to see the breathtaking shoreline many Michiganders take for granted.

“Everyone deserves the chance to experience something new and fun,” said Behm. “We hope this Lake Michigan adventure will inspire these children to think big while enjoying the simple beauty of Lake Michigan.”

The importance of the gesture is not lost on GRPS officials.

“Grand Rapids Public Schools welcomes this out-of-the-box thinking such as the field trip idea presented to us by OST,” said Grand Rapids Public Schools Superintendent Teresa Weatherall Neal. “It’s educational for our

students and requires minimal investment from our resources. Additionally, it demonstrates to other businesses how they can help strengthen our community by collaborating with its largest school district in enlightening ways such as this.”

Behm said OST’s initiative with GRPS may increase in scope in the future, but for this first round, schools on the west side are targeted. This stems from OST’s existing relationships with nearby schools.

He said the $100 million firm also may consider executing similar partnerships with school districts in its other locations (Minneapolis, Ann Arbor and Detroit).

Convergence works The outstanding entrepreneur in Muskegon is a successful business owner — it just took him a while to get there.

The Muskegon Lakeshore Chamber of Commerce recently honored Jason Piasecki, partner in the communications firm Revel, with its top award.

Piasecki opened his first business in 1998 when he founded ImageQuest Design, a marketing firm in Metro Detroit. Upon returning to his hometown of Muskegon in 2003, he and partner Andy Maciejewski opened Qonverge, a marketing communications firm that specialized in web and video.

The idea of Qonverge joining forces with Relevant, a branding and print marketing firm owned

by Don Kalitz, had been talked about for some time, yet neither was in a hurry to merge, so they proceeded cautiously before signing legal documents in May 2010.

In the fall of 2010, they changed the name to Revel and moved into the current offices in downtown Muskegon.

The firm grew sales 20 percent in 2013 and added another three employees, bringing the roster to 18.

Celebrity chef Chances are he will not be appearing on the Food Network anytime soon, but Mayor George Heartwell and his wife, Susan, know their way around a kitchen.

So it’s really no surprise that Grand Rapids’ fearless leader last week became the latest of more than a dozen elected officials to help prepare and deliver meals to area seniors through Senior Meals on Wheels.

This year Senior Meals on Wheels marks its 30th anniversary in the West Michigan community. The annual March For Meals campaign engages elected officials to focus on meal delivery, a critical service that helps seniors live independently in their homes.

More than a dozen West Michigan mayors, representatives, senators and commissioners visited Senior Meals on Wheels over the last six weeks to lend a hand.

Mayor Steven Maas of Grandville was the first volunteer in this year’s campaign, delivering 20 meals throughout his constituency. “Meals on Wheels is a great program that helps people stay in their own homes,” he said. “Nutritious food delivered by caring volunteers provides better health for the seniors and peace of mind for their families.”

President Brewster Hamm said the program prepares and delivers more than 400,000 meals for homebound seniors in Kent County each year and serves more than 100,000 meals at 13 congregate dining sites throughout the county. The organization also operates a food pantry for seniors with limited funds.

“Volunteers like Mayor Heartwell are incredibly important to our mission,” said Hamm. “We want to spend every penny possible on food, so we rely on more than 30,000 hours of volunteer service each year to help prepare and deliver meals to our clients.”

MAY 8th, 2014

Pinnacle Center, Hudsonville, MI Two dynamic best-practice sessions, luncheon and the premier awards gala for employers in West Michigan!

Join us In Toasting the Best & Brightest AS WE HONOR

West Michigan’s Best and Brightest Companies To Work For® For a day of Education, Symposium, Networking and Celebration

SESSION 1

SESSION 2

How to Strategically Align HR With The C-Suite

What West Michigan Organizations are Doing to Attract Top Talent

Multiple organizations will discuss the importance of HR’s role in the operational needs of an organization to achieve it’s strategic priorities.

The importance of measurable results to maintain a viable workforce is critical.

West Michigan companies have targeted local college graduates after they have grown in their respective fields and encouraged them to consider coming back home to work in West Michigan. Tools will be provided to help employers attract employees, address trailing spouses and retain a talented workforce within our market.

Join Celebrity Announcers, long time journalist Suzanne Geha, Steve Kelly of Wood Radio and our keynote speaker Sabrina Keeley, Chief Operating Officer at Business Leaders for Michigan.

TO SPONSOR, EXHIBIT OR ATTEND CALL 866.321.1822 OR VISIT 101BESTANDBRIGHTEST.COM

“This program is pending two (2) recertification credit hours toward PHR®, SPHR® and GPHR® recertification through the HR Certification Institute.” For more information about certification or recertification, please visit the HR Certification Institute website at www.hrci.org.

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Cooley Law School graduates lead in

Jon Cooper NHL Head Coach,Tampa Bay Lightning

Jon Cooper is the head coach of the Tampa Bay Lightning of the National Hockey League, taking over the position in March 2013. Before then, he was hired by the Tampa Bay Lightning organization in 2010 to coach the Norfolk Admirals, the Lightning’s AHL affiliate. During the 2011-12 season, the Admirals won the Calder Cup as the AHL’s champions. Cooper won the 2012 Louis A.R. Pieri Memorial Award as the AHL’s most outstanding head coach. For the 2012-13 season, Cooper became the head coach of the Syracuse Crunch, and led the team to a 39–18–3–5 record, the best in the AHL at the time of his promotion. In his first season as a hockey coach, Cooper was named the 1999 High School Coach of the year by the Lansing State Journal after guiding Lansing Catholic Central High School to its first regional hockey title in 25 years. Cooper closed his law practice in 2003 to focus on his coaching career.

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T xxation Ta Torts To Affffifirmative Action Af Animal Rights An g Arbitration Banking & Mortg t ages tg Bankruptcy & Foreclosure Business Charities & Nonpro r fif t ro Civil Rights Class Actions Communications & Media Contracts Corporate Law a aw Criminal Law a aw Debtor/ r Creditor r/ Discrimination Education Enviro r nment ro

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Cooley stresses legal knowledge, practice skills, and professional ethics, concepts that are now receiving much attention in legal education, but have been in place at Cooley since its founding in 1972.

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