Coppess cops Newsmaker Award. Page 3
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The Business Newspaper of Metro Grand Rapids, Holland , Muskegon & West Michigan February 3, 2014 Vol. 32, No. 5
GR votes May 6 on income tax for street repair
This week
HITTING THE HIGH NOTES
Executive Director Anne Berquist is charting a path for the future of Opera Grand Rapids. Page 10.
Specifics are coming Feb. 11 on how the money would be spent. Pete Daly
Grand Rapids Business Journal
“under discussion,” he did say the hotel, which will feature 100 to 130 rooms, will be about five to seven stories tall and will generally be in line with LEED-certification standards. Kulapat Yantrasast, co-founder and creative director of the Los Angeles-based firm why design, will design the new hotel. Yantrasast also served as designer of the Grand Rapids Art Museum building, Cummings said, and has gone on to become a renowned international designer with a soft
When this brutal winter ends, Grand Rapids city streets may be in a classic state of disrepair, and if the city voters still see reminders of that May 6, it may encourage “yes” votes at the special election that day. The special election approved by the City Council would extend the city income tax increase voters approved in 2010 to a new end date of 2030, and it would also amend the city charter to make the city responsible for sidewalk construction, repair and maintenance, instead of the adjacent property owners. City Manager Greg Sundstrom said a continuation of the income tax increase is estimated to raise almost $10 million a year. He told the Business Journal last week the plan is for it to provide roughly $1.6 million for sidewalks and
Continued on page 58
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The hotel does not yet have a brand but will be between five and seven stories with 100 to 130 rooms. Courtesy CWD
CWD announces major hotel in downtown Grand Rapids ‘How cool is that?’ Name brouhaha
Rockford Brewing companies in Michigan and Illinois head to court over name dispute. Page 3
Brighter future
Smith Haughey COO points to expansion, succession plans as key pieces to longterm puzzle. Page 3
Executive presence
Mike Nichols
Grand Rapids Business Journal
The Grand Rapids skyline will soon have another major hotel defining it. CWD Real Estate, a major Grand Rapids-based real estate firm, announced today plans to build a new hotel designed by an internationally known architect on the parking lot at 50 Monroe Ave. NW in downtown Grand Rapids. Construction is slated for fall of
this year. The project is already in the engineering phase. “This site, which is literally in the center of our city, has been a parking lot for at least 30 years,” said Sam Cummings, CWD comanaging partner. “We are thrilled with the prospect of adding an iconic structure to this important location and we hope to submit plans to the Grand Rapids Planning Department by late spring for construction to begin later this year.” CWD purchased the property in April 2012, Cummings said. Although much of the project is still
Inforum West Michigan’s three-year plan includes emphasis on grooming women for leadership roles.
Michigan’s first Winter Games on tap next week
Page 5
At least 2,000 athletes are expected to arrive in Grand Rapids.
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Construction Workforce Development Alliance aims to get prospective employees educated and working locally. Page 15
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C.D. Barnes Construction enters seventh decade with renewed vigor. Page 17
Pat Evans
Grand Rapids Business Journal
A week after the Winter Olympics begin in Sochi, Russia, more than 2,000 athletes will come to Grand Rapids from across Michigan for the Meijer State Games of Michigan Winter Games. When the West Michigan Sports Commission began thinking about a winter edition to the State Games in 2010, the chance of coinciding with the Winter Olympics wasn’t at the forefront of the planning process, said Eric Engelbarts, executive director of Meijer State Games. Eventually, however, the possibility of launching the event as the Olympics were in progress became real.
“We were going into our second year, so we were thinking about starting the Winter Games in the third year as an addition, but it just didn’t pan out,” Engelbarts said. “We typically work 12 to 18 months out, so looking at last year, we were like, ‘If we’re going to do this, next year is an Olympic year.’ “That was definitely something that went into my mind as we were planning it last year.” The prospect is exciting, Engelbarts said, because there are Olympic athletes from Michigan who have paired with the organization to help promote the event. Specifically, Engelbarts cited several speed skaters who have created videos that will begin to pop up as the Winter Games nears. Although the number of athletes coming to town for the 13 sports is estimated at 2,000, Engelbarts said that number is unscientific because not all registration funnels through the WMSC office. The number hopefully may be
Contents
Inside Track.......... 10
Change-ups.......... 25 Calendar................ 25
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Comment................12 Minimum wage. Matters...................13 Dealing with difficult people.
Vol. 32, No. 5
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more comparable to the first summer event that had 3,500 athletes for 15 sports, he said. “In the summer, hockey was a lot of that. The teams were coming, and when you start putting all those team sports in, the numbers start to climb,” he said. “The Winter Games (have) more individualoriented sports.” Engelbarts said the hockey commission had some trouble finding prime ice time and bidding on it, but the bigger issue comes from teams not qualifying for their playoffs and wanting a tournament to play in. All of the events are self-sufficient; whatever they make in sponsorships and registration fees is what they get to spend. “They have to be able to run on their own,” Engelbarts said. “Worst-case scenario is we break even. But we hope to make a profit to be sustainable.” Still, major sponsors such as Meijer, Subway and Metro Health
Sales Moves..........13 Mirror, mirror on the wall.
Area Economy......26 Retailers get coal. Street Talk............. 27
help make the Winter Games different from other sporting events. “The cost for a participant is almost the same as if you were at a different event,” he said. “The fee is the same, but you get opening ceremonies, you could be on TV, you get a bunch of PR and media … the great medals. “There’s no reason not to come, definitely not because of the cost.” Prior to this year, the games were still a “revenue line” for WMSC, but now they will operate on their own. If there is a budget shortfall, however, the commission will still “help out.” The goal is to be a self-sufficient nonprofit so that the event can continue every year. Hockey will be played in the Winter Games, but many age groups, including high school, are still in league play, so the summer session of hockey also will remain. Other winter sports include Continued on page 9 8
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It Is Never Too Early To Start Planning Your Next Move
Computer, phone scams plague West Michigan, page 6 February 3, 2014 Grand Rapids Business Journal 3
Rockford Brewing embroiled in suit over name
Coppess cops Newsmaker Award 616 Development chief is top winner in Business Journal’s annual awards.
Illinois brewery challenges the use of ‘Rockford.’ Pat Evans
Tim Gortsema
Grand Rapids Business Journal
Grand Rapids Business Journal
It’s been said it takes a village to nurture something through to completion, but in the case of Derek Coppess, it’s more like a tribe. The 616 Development founder and managing director on Wednesday was named the Grand Rapids Business Journal’s 2013 Newsmaker of the Year for his work with developing the Lofts residential projects throughout West Michigan. Coppess often refers to his communities as “tribes” and strives to get tenants involved in the neighborhoods in which they are locating. “Oh, my gosh. There should be 100 people up here with me,” Coppess said upon accepting the award. “This is just amazing and I am so grateful.” Coppess was one of 10 individuals to earn Newsmaker honors in separate industries, with his recognition coming in the Real Estate/ Development/Construction category. Of those 10 winners, Coppess was judged by the Journal’s editorial staff to be the overall 2013 Newsmaker of the Year. The names of the 10 winners, selected from among 30 finalists,
Derek Coppess of 616 Development talks about the passion he has for West Michigan. Also pictured is Business Journal Publisher John Zwarensteyn. Photo by Johnny Quirin
were revealed at the sold-out event at Frederik Meijer Gardens. The winners by category included: •Rick DeVos, ArtPrize, Arts & Entertainment/Sports •David Eisler, Kendall College of Art and Design/Ferris State University, Education •Birgit Klohs, The Right Place Inc., Government •Kent Riddle, Mary Free Bed Rehabilitation Hospital, Health
•Don LeDuc, Thomas M. Cooley Law School, Law •Blake Krueger, Wolverine Worldwide, Manufacturing •Elissa Hillary, Local First, Nonprofits/Philanthropy •Derek Coppess, 616 Development, Real Estate/Development/ Construction •Mike Stevens and Dave Engbers, Founders Brewing Co., Retail •Aaron Schaap, The Factory, Technology
Also honored at the event were Rick DeVos and Start Garden, which picked up the Impact Award for the organization’s longterm economic influence on West Michigan. “I think we really have huge opportunities here in West Michigan, and we’re happy to be a catalyst in that,” DeVos said. “Thank you for this honor, and now on to bigger and better things in West Michigan.”
When Seth Rivard and his partners began thinking about opening a brewery in Rockford, they considered calling the company Rogue River Brewing. But the trio — including Rivard, Jeff Sheehan and Brien Dews — knew that name would create legal issues with Rogue Brewing Co. in Oregon. So they did their due diligence and started the trademark process for Rockford Brewing Co. in 2011. Rivard said the company was incorporated in 2011, and plans were made for such activities as mug clubs. The brewery opened its doors in December 2012. Now, the company has been sued by Rockford Brewing in Rockford, Ill., for use of the name, and the suit is slated for a court date this month. Rivard said he caught wind of the Illinois company’s plan to open in 2013. Before long, the Illinois brewery started aggressively pursuing the trademark rights. The Michigan company soon received indication that the Illinois company would push for the entirety of Continued on page 7 8
Smith Haughey COO notes law firm’s expansion Succession plans are in place and new initiatives taking hold.
Lori Gibson recently celebrated her one-year anniversary with law firm Smith Haughey Rice & Roegge, and she’s already racked up quite a few successes. In the past year Gibson took on the job of developing the firm’s new Muskegon office and streamlining operations between all four Smith Haughey offices, which in addition to the Muskegon location include Grand Rapids, Traverse City and Ann Arbor. “Basically, my role is to oversee the business operations of the firm. … I oversee things like HR, finance, IT and marketing — all the business operations of the firm. I also advise the CEO and the board in terms of strategy and growth plans.” Gibson’s previous legal experi-
ence — she worked as an attorney for 12 years — combined with the seven years she spent at Spectrum Health working in various operational roles, make her a particularly good fit for Smith Haughey. Gibson said she has been focused on two main issues, both of which involve making sure the firm is prepared for the future. “Like many law firms and companies, we are going to be facing a significant number of retirements of very key people in the next five to 10 years,” she said. “We are really focused on making sure that we prepare successors for them, so that when those key people leave we have other people ready to step into their shoes, so that is a huge focus.” She noted one of the ways the firm is staying ahead of retirements is by having annual conversations with attorneys who are approaching retirement age. “If they want to keep working, that’s fine, but if they think they are going to start winding down in the next three years, that is when we will be very intentional about
putting a transition plan in place,” she said. That plan includes making sure an attorney has been identified to fill the role and preparing him or her to make the transition. The attorney on deck, so to speak, will begin meeting with clients and building relationships so the transition will Gibson be comfortable. “We also are looking very strategically overall at the makeup of our work force, and if there are places where we don’t have the people that would have the skills or ability to step in, then we need to go out and find them and plug some holes, so we are working on doing that too,” she said. “Succession — that is a huge issue. The makeup of this firm is going to change so dramatically over the next 10 years, so that really has to be our number one focus.”
Gibson said that the firm is also focused on growth. “We’ve identified strategic growth areas for the firm and we are really trying to build those,” she said. “Areas like corporate law, real estate, intellectual property, employment law — those are some of them where we are really focused on growing.” She said the firm has already begun building those areas by hiring additional attorneys and with the addition of the Muskegon office in 2013. Even & Franks PLLC joined Smith Haughey this past fall. “It was a standalone firm in Muskegon that had four attorneys, and they are a very heavily business-oriented law firm, which is an area that we are trying to grow. “They needed some additional resources,” Gibson said. “They had a lot of work and a lot of good clients, but not enough people to do all of the work, so they wanted to be part of a bigger firm so they had more resources that they could call on. And we didn’t have a presence there so it gave us a nice en-
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Grand Rapids Business Journal
try on the lakeshore and to a really nice group of clients that firm already had, so it was a good fit for both of us. “We’ve really strategically placed ourselves throughout the state in the heart of downtown areas of four key cities, where we think we can really achieve that strategic growth we are looking for,” she added. The firm also grew its Grand Rapids office last year by expanding its office space in the Flat Iron Building into the adjacent building. The firm’s overall growth strategy is focused on attracting small and mid-market business clients, according to Gibson. Smith Haughey is working hard to attract a diverse group of staff and attorneys to serve those clients. On the non-attorney side of the firm, it’s been quite successful. Gibson’s work includes leading a team of administrative directors between Smith Haughey’s four offices, most of them comprised of women. Continued on page 4 8
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Grand Rapids firm blazes drone trail for aerial perspective It’s finding many uses for eye-in-the-sky photography. Heather Hartmann Capital News Service
Imagine pulling on a harness, latching yourself to a wire and ziplining through the treetops while a flying camera captures your wild ride on video. Fun fact: This actually happens. Expertise in Aerial Imaging uses unmanned aerial vehicles — commonly known as drones — to capture video and photo images. The Grand Rapids business, known as EAI, has shot aerial perspectives of events as diverse as off-road street-car racing for Rally America and zip-liners careening through a forest of green for the Nantahala Outdoor Center in North Carolina. Showcasing high-end homes for real estate agents is also in the mix. The company’s clients “want the aerial perspective,” said Eric Snyder, EAI’s business manager and camera operator. “But they don’t want it from so high that people lose appreciation for what the outside of a building looks like or something like that. “We’re able to get those shots for them.” The owner of Go! Media, Steve Secor, has hired Snyder several times to shoot video of events such as extreme winter sports and kayaking. “For certain jobs, aerial gives you a better perspective,” he said. Snyder and his business partner, Tommy Knight, founded the company in August 2012. The idea
came from the X-Games, an event that focuses on extreme sports and is a leader in employing these aircraft in cinematography, said Snyder. The use of drones in video offers a new perspective to films, as well. “As far as what you see on the screen, I think it would allow for more creative and interesting scenes,” said Steve Opsanic, executive director of the Great Lakes International Film Festival based in Pennsylvania. Shots like this would otherwise not be possible, he said. On top of the new angles drones provide, the other reason Knight and Snyder began their business was there was little to no competition in the industry. “As we looked around the West Michigan area, there really wasn’t anybody who was doing it in a full-on, full-out serious fashion,” said Snyder. “So we just kind of said, ‘Well, we think there’s a gap in the market here and let’s give it a shot.’” Their timing was good. A business entering a new market is like riding a wave into shore, said Forrest Carter, Michigan State University faculty director and professor of marketing. “Ideally, if it’s an emerging market, it’s growing, customers are being attracted to it, you don’t have a lot of the issues with a lot of competition, and you primarily only have to focus on expansion and satisfying the needs of the customer,” he said. However, there are drawbacks with being a pioneer, said Carter. “Entrepreneurship is the pursuit and the exploitation of opportunities,” he said. “If clearly no one else is doing
it, then you have the burden — particularly as it comes to raising funds or getting capital — you have the burden of proof that it is in fact an actual market, that people will pay for the product or service,” Carter said.
EAI’s drone captures aerial photography that still offers plenty of detail. Courtesy MSU
Using a small, eight-rotor helicopter that carries up to 15 pounds can be controversial. Snyder said about 80 percent of the attention drones get when used in public is good. The remaining 20 percent is negative and often comes from an older and more skeptical crowd that worries the drones are spying on them for the government. Snyder said he and Knight explain what they are doing when people have questions. “Usually by the time the conversation is over, they are like, ‘Oh, my gosh, that is a really cool idea.’ “It’s going to take a little while for people here in the States to become accustomed to it,” he said. “I think the more exposure they get
to it in a positive light, hopefully that will kind of curb that angst about it.” Ultimately, though, using drones commercially comes down to the question of legality and where the Federal Aviation Administration stands. At the moment, the FAA says authorized users of drones are public entities — as in government-funded researchers, the military and hobbyists. The administration frowns upon commercial drone use, but right now this issue isn’t the government’s primary concern, said Snyder. Since the company began, more drone-based businesses have appeared. “All you’ve got to do is go online and type in a few keywords and they’ll find us all,” said Snyder. “And my feeling is if the government had the time and they were really that worried about it, they could go online and find each and every one of us and send us all letters and say, ‘Stop doing what you’re doing.’ And that hasn’t happened yet.”
Airport says ‘thanks again’ with rewards program Customers can earn miles, points and other perks. Charlsie Dewey
Grand Rapids Business Journal
Congratulations to this year’s winners! 2013 NEWSMAKER: MANUFACTURING Blake Krueger Wolverine Worldwide
2013 NEWSMAKER: LAW Don LeDuc Thomas M. Cooley Law School
2013 NEWSMAKER: GOVERNMENT Birgit Klohs The Right Place Inc.
2013 NEWSMAKER: REAL ESTATE/DEVELOPMENT CONSTRUCTION Derek Coppess 616 Development
2013 NEWSMAKER: TECHNOLOGY Aaron Schaap The Factory
2013 NEWSMAKER: EDUCATION David Eisler Ferris State University
2013 NEWSMAKER: ARTS & ENTERTAINMENT/SPORTS Rick DeVos ArtPrize
2013 NEWSMAKER OF THE YEAR Derek Coppess 616 Development
2013 NEWSMAKER: NONPROFITS/PHILANTHROPY Elissa Hillary Local First
2013 GRBJ IMPACT AWARD Start Garden
2013 NEWSMAKER: RETAIL Dave Engbers & Mike Stevens Founders Brewing Co. 2013 NEWSMAKER: HEALTH CARE Kent Riddle Mary Free Bed Rehabilitation Hospital
Wherever the company shoots footage, it contacts the local police to get the OK to fly, said Snyder. “In this instance, I’d much rather try to ask permission than to plead forgiveness later. I think the only time you’re going to run into an issue doing what we’re doing is if you’re out being reckless.” Go! Media’s Secor said he hires the company because of its concern for safety. “It’s all about being transparent, I think, and letting people know what’s going on,” he said. Overall, MSU’s Carter said, businesses in the emerging drone industry are taking profitable risks. “In general, I think this is an excellent example of people being ready and insightful to exploit opportunities that are arising because of a change in the marketplaces or changes in technology.” Snyder has high aspirations for the business’s future, as well as the future of commercial drones, and said that he hopes using them becomes common. “That would be my goal — my dream for it,” he said.
Travelers at Gerald R. Ford International Airport can now receive frequent flyer miles or hotel points for nearly all of their airport transactions. The airport has partnered with loyalty coalition brand “Thanks Again” to provide customer rewards to travelers when they park, shop and dine at the airport. GFIA is the first airport in Michigan to offer the program to travelers. Once enrolled, travelers can earn the same benefits at more than 160 airports and 20,000 neighborhood businesses across the U.S that are program participants. Airport officials said enrollment in the program is free and easy. Passengers register credit or debit cards at thanksagain.com/ GRR and then use those cards for purchases at participating locations to earn one mile or two hotel points for every dollar spent. Points and miles automatically accrue. New members will receive
100 bonus miles when they enroll with a mobile device by texting FLYGRR to 82257. “We are excited to offer our passengers the ability to earn rewards when they park, shop and dine at our airport,” said Gerald R. Ford International Airport Executive Director Brian Ryks. “It is important we recognize our passengers and thank them for their decision to fly locally. “These are rewards that travelers know and like, and can redeem for tickets, flight upgrades and countless other retail items. “We are happy to be the first in our state to offer such a benefit and demonstrate that we are fully committed to providing an excellent customer experience.” Local merchants also can participate in the program, allowing passengers to earn miles and points at their places of business. “Our best passengers tend to be core customers of many merchants outside of the airport,” Ryks said. “We see an opportunity for the airport to further extend its reach into the community by allowing local merchants to participate in this program and allow these same passengers to earn rewards at their local establishment. This opportunity is seamless, easy to implement and beneficial to everyone.”
Smith Haughey expands 7 Continued from page 3 “The non-attorney leadership of the firm is very heavily occupied by women: our CFO, HR director, marketing director — a number of those positions. In fact, of the eight non-attorney leadership positions, women hold seven of them. “The firm is very committed to diversity, which includes many types of diversity, but promoting the employment and growth of women is a key part of that. The firm has been very diversity-conscious in its hiring, certainly, and in its policies.”
She said part-time schedules and generous maternity leave are just two of the policies that are attractive to women joining the firm. “The fact that we have so many women in the leadership roles is key,” she added. The firm is also focused on promoting its female attorneys, and of its two newest shareholders, Gibson reports one is a woman. “We’ve hired a significant number of women recently so, obviously, we are very focused on that in all areas,” she said.
February 3, 2014 Grand Rapids Business Journal 5
Inforum West Michigan plots next three years One step will be to help women develop their ‘executive presence.’ Charlsie Dewey
Grand Rapids Business Journal
This past fall Inforum Center for Leadership published a discouraging report regarding the progress of women at the executive level of Michigan’s public companies. “A Decade of Women’s Leadership in Michigan Public Companies” revealed that during the past decade, women have made no significant progress in the executive suites and boardrooms. Given that disappointing news, it might be hard to cast an optimistic glance forward, but that is exactly what Inforum and its local arm, Inforum West Michigan, are doing. When the report was first released, Terry Barclay, president and CEO of Inforum and Inforum Center for Leadership, said despite its findings she felt optimistic about the future. “I am more optimistic than I have been in past years,” Barclay said. “I think that these issues are starting to be more visible. We are starting to talk about them more. We are starting to recognize that they are economic issues. It’s not about fairness or being politically correct. I think there is growing recognition in companies that this kind of diversity is an economic issue for the company.” With the turning of the calendar year, Inforum and Inforum West Michigan appear to be rolling up their sleeves and moving forward on that optimism.
Barclay said the organization has just embarked on its new three-year strategic plan, which is focused on deepening its relationship with Michigan corporations. One of the things the organization is most excited about is the upcoming rollout of a new program, Genuine Leadership Presence, which Barclay said was developed at the request of a handful of Michigan’s Fortune 500 corporations. “There was one Fortune 500 company that we work with regularly. … They were noticing that in their talent management meetings they were seeing some patterns where … the Englehart women candidates that were being discussed for promotion had the technical skills — they had that nailed. Nobody in the meeting questioned whether they had those skills or not, but they did tend to question whether, if they were promoted and started dealing at a higher level with the company, they would be heard, and whether they could influence people at that level — other executives, their peers,” Barclay said. Genuine Leadership Presence is a program Inforum created to help women develop their “executive presence” so there will be no question during those talent management discussions of whether or not they can command a room and inspire their teams. “We can see this being a follow-up on our Executive Leadership program, or something that women do in between our Next
Up and Executive Leadership program, but it’s an essential skill that is clearly linked to the whole pipeline issue and the question of whether women advance, whether their careers advance,” Barclay said. In addition to Genuine Leadership Presence, Barclay is excited about the possibility of extending all three of its programs to Michigan companies’ global networks through virtual and modular programming. She said that would also allow smaller companies with fewer employees to take advantage of Inforum’s programs. As the organization embarks on its new strategic plan, it has temporarily hired Jeanne Englehart at Inforum West Michigan to help grow the organization’s relationships in the region. “My job is to be out there, to be their ambassador, to be the person
that people know and recognize as someone they can come to with Inforum issues,” Englehart said. “I also want to work to help increase the visibility with the corporate members that we have and to help introduce Inforum to some new corporate members that haven’t been exposed to Inforum.” She said one of the reasons she decided to take on the role is because she thinks the organization has a proven track record in helping women pull themselves up the rungs of the career ladder. Inforum West Michigan currently is searching for a full-time vice president of corporate engagement, a newly created position. “The person in that position will be responsible on an ongoing basis for maintaining and deepening those relationships with companies and women who work at
those companies to continue the great work that Jeanne is going to be jumpstarting,” Barclay said. West Michigan has grown to include more than 600 members and 13 affinity groups. More than 225 women have graduated from the Executive Leadership program and more than 80 from the Next Up program. Patti Griswold, a West Michigan resident and senior vice president at Comerica Bank, will assume the role of chair on the statewide Inforum board this summer. “Commitment to Grand Rapids is long term and strong and real,” Barclay said. Whether or not women will make their way en masse into the corporate boardrooms and executive suites within the next decade is still to be seen, but Barclay and Englehart seem to be doubling down on the bet that they will.
Hotel coming to downtown Grand Rapids 7 Continued from page 1 spot for the city that gave him his first break. No hotel brand has yet been announced for CWD’s new hotel, but Amway Hotel Corp. is being considered for management, Cummings said. The architect of record in Grand Rapids is Integrated Architecture; Nederveld Inc. will have oversight on construction engineering. The hotel will include options for guests who desire to stay five nights or more, and many rooms
will include a kitchen. The new building, announced as mixed use, also may include restaurants, retail space and even residential housing units. “Place-making is more than just the current buzzword; it’s a real movement with real momentum here,” said Scott Wierda, CWD co-managing partner. “This mixed-use development will further solidify that the core of our city is the place to work, live and be entertained.” The fact that a parking lot occupies the absolute center of downtown has always bothered Cum-
mings. Now he hopes his new hotel — viewed by him as a complementary neighbor to downtown’s hotel roster of the Amway Grand Plaza, JW Marriott, CityFlats and Holiday Inn — will change that, offering the city a more iconic building to fill the Monroe Avenue space. “One of the things that’s very important to us is we want this building to activate the corners of the streets it addresses,” he said. “I am so excited we are building and creating something iconic at the center of the city, something (on top of ) a previous parking lot. How cool is that?”
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6 Grand Rapids Business Journal February 3, 2014
Computer, phone scams plague West Michigan Pat Evans
Grand Rapids Business Journal
Several large-scale scams have recently hit the West Michigan area. Both the “473/767 One-Ring” and “Fix Your Computer” scams have hit homes in the area, according to the Western Michigan Better Business Bureau. “We haven’t had any real victims yet,” BBB President and CEO Phil Catlett said. “But we have had tons of calls and we’re hearing it from lots of bureaus across the country.” The “one-ring” scam comes from area codes in Grenada (473) and Dominica (767), and the call lasts only one ring. Following the missed call, the scammer hopes the recipient will call back and longdistance charges will be rung up. Catlett said these are toll numbers and can cost up to $10 a minute. The scammers’ goal then is to try to keep a caller on the line as long as possible. He said he has heard of calls costing more than $300. “There are any number of different stories as to why they have to talk to you,” Catlett said. “They’re coming out of the Caribbean because there are not very strong regulations — no rules to protect the public.” According to an AARP article by Sid Kirchheimer, there also are Canadian callers that offer fake prizes, called the “Grandparents Scam,” which tells an elderly person their grandchild has been arrested and needs to be wired bail money. The Federal Communications Commission does field complaints and although charges might not be voided, it could help build a case for better regulations against the scams. Catlett said the best strategy is to not call back unknown numbers,
and to look up area codes on the Internet or in phone books. The “Fix Your Computer” scam involves a caller asking for the home’s computer user, saying they have information that the computer is not working correctly. The caller then asks whether there have been any issues with slow speed or Internet connections, and then asks for control of the computer so they can fix the problem. “Scams like this have been going on for years and seem to come in waves,” Catlett said. “It’s much like phishing, clicking bad links. It’s just one of the many ways they can gain access to your information and sell it or use it themselves.” If allowed, the scammer can install various malware and key-loggers on the computer. The hacker can use these programs to learn passwords, as well as gain access to financial and personal information. Catlett said previous scams have been carried out using the Microsoft name, but current calls have been reported as being from “PC Speedy.” However, the names seem to change frequently. “Once people inadvertently allow others on their computer, the scammers can get just about anything they want,” he said.” The callers are generally targeting an elderly demographic who aren’t confident in their computer skills. “One caller was selling lifetime protection of a computer for $264, but because they were senior citizens, they’d do $154,” Catlett said. “They are salespeople without a conscience. Who knows if they have any sort of software protection? They can just do any number of bad things.” Scammers use public information to gain access to contact information and often simply guess at
computer-operating systems. Catlett said Microsoft and other computer companies don’t make phone calls or use personal email notifications for computer problems. When new viruses come out, legitimate companies send out updates for all subscribers. Authentic Microsoft and Mac representatives are available for assistance by phone. Catlett said the best thing to do in the event of these calls is to hang up, because the scam can lead to identity theft and broken computers. Best Buy’s Geek Squad offers a variety of ways to protect computers from scammers on its website, suggesting the following: •When in doubt, hang up the phone and call the company back at its publicly listed telephone number. That contact information usually can be found on the company’s website. •Never provide credit card or banking account information to someone on a cold call — even if they claim to be from a computer support company. •Never give remote access to your computer to any technician unless they can confirm they are a legitimate member of a computer support company with which you have an existing support agreement. For anyone who has ever been victimized by a phone scammer: •Contact your credit card or bank and speak with the fraud prevention team to have the charges reversed and the account protected from future charges. •Change your computer password, along with the password of any online accounts that may have been provided to the cybercriminal. •Update your security software and run a full scan on your computer.
Debate looms over how to divide the state surplus Contextually, the amount in question is pretty small. Becky McKendry
Capital News Service
LANSING —Tax cuts or a tax rebate? Pensions or a bailout for Detroit? While there isn’t a simple way to get lawmakers to agree about what to do with an expected $971 million surplus in state revenue, economists have a simple message: Don’t get too excited. “The amount involved is quite small relative to the whole budget,” said Doug Roberts, director of the Institute for Public Policy and Social Research at Michigan State University. “It won’t have a major impact either way. It’s all psychological.” The makeup of the surplus is also important to consider. More than $600 million of the $971 million is a one-time surplus, said Roberts, who served as state treasurer for 10 years. “When you look at it in context, this isn’t a strong sign of continuing economic recovery,” he said. Charles Ballard, a professor of economics at Michigan State University, agreed. “To call this a surplus after all the budget cuts over the last decade is strange,” he said. “It’s only a surplus against the background of years of very deep cuts.” Consider the surplus in the context of other statewide economic numbers, he said. For example, Detroit’s estimated debt is between $15 billion and
$20 billion. And the total state budget is more than $40 billion, Ballard said. “If you look at the proposed tax cuts many have been talking about, given the average family’s income of between $40,000 and $50,000, it works out to about 34 cents a day of tax reduction,” he said. “(It’s) not enough to transform anyone’s life.” It’s not that the surplus cannot make a difference, Ballard said. If funds were allocated in only one area, such as higher education or road improvements, results could be much more noticeable, he said. But that’s highly unlikely, considering most in the Legislature are preparing to split the surplus. “What you’re most likely going to see is going to be multi-tiered — some money allocated toward infrastructure, some given back to taxpayers,” said Rep. Joe Haveman, R-Holland. Haveman chairs the House Appropriations Committee. It is the best way to compromise, Haveman said. While that may be the best political strategy, Roberts said, it’s bad economics. “Yes, it’s the balanced approach to split it, but the money isn’t enough to divide it all up, so you have to make one decision,” he said. Ballard said that serves as another reason to view the surplus with caution. “From the economic peak in early 2000 to the bottom in 2010, we lost about 860,000 jobs, and we’ve only gained about 260,000 back,” he said. “I don’t think anyone who pays much attention could think that all is well with the Michigan economy.”
Reshma Saujani Keynote Speaker
Author, “Women Who Don’t Wait in Line” Founder, Girls Who Code The first Indian-American woman to run for Congress
GRAND RAPIDS BUSINESS JOURNAL is pleased to announce that Reshma Saujani will be the keynote speaker for the biennial “The 50 Most Influential Women in West Michigan” luncheon event. Reshma is the author of the new book, “Women Who Don’t Wait in Line,” in which she advocates for a new model of female leadership focused on embracing risk and failure, promoting mentorship and sponsorship, and boldly charting your own course, both personally and professionally. She is also the founder of Girls Who Code, a national non-profit organization working to close the gender gap in technology fields and prepare young women for jobs of the future. Please join us on March 4, at the Amway Grand Plaza Hotel’s Ambassador Ballroom, as we celebrate the achievements of “The 50 Most Influential Women in West Michigan.”
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Named one of Forbes’ Most Powerful Women Changing the World, Fast Company’s 100 Most Creative People, Ad Age’s Creativity 50, Business Insider’s 50 Women Who Are Changing the World; Honored as AOL/PBS Next MAKER Has appeared in O, The Oprah Magazine, Fast Company and on The Today Show
March 4, 2014
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FEbruAry 3, 2014 GrAnD rAPiDs Business JournAl 7
Three industrial roofs collapse in West Michigan The snow is piling up, but roofs here are designed to take it. Pete Daly Grand Rapids Business Journal Two industrial facility roofs near the lakeshore and one in Kentwood suffered partial collapse recently as the snow kept piling up, but a structural engineer and an architect, both with many years of experience in large construction projects, say roof collapse is still a fairly rare occurrence. On Jan. 25, a roof at the Haworth plant in Douglas with more than three feet of snow on it collapsed, causing extensive damage and rupturing a natural gas line. No one was in the building at the time, and the building is slated for closing this spring anyway. Then on Monday, Jan. 27, part of the roof at The Stow Co. factory on 3311 Windcrest Drive in Holland collapsed under the weight of snow that had accumulated in one area due to high winds. “It was relatively minor and no one was injured,” said company spokesperson Bobbie Locke. “Operations were only interrupted for a few hours; the plant is fine,” she said. The collapse ruptured fire sprinklers in the ceiling, which soaked part of the office area, according to an Ottawa County dispatcher. Finally, a roof covering a Lacks Enterprises industrial facility in Kentwood partially collapsed Wednesday night. No one was in-
Breweries dispute name 7 Continued from page 3 name usage. So Rivard said he and his partners put their foot down and sent a cease-and-desist letter in November. “They felt they had rights because they had purchased the historic, 100-plus-year-old Rockford Brewing building,” Rivard said. “Although that was a trademark given, it died. They didn’t receive it.” It also gets “sticky,” Rivard said, because laws state that generic names, such as Rockford, can’t be trademarked. Still, the Illinois company filed the lawsuit in January, which could force Rivard to defend the Michigan brewery’s name in court. He said he and his partners hope to settle the issue out of court, and negotiations are ongoing. Rivard said meanwhile there has been a lot of brand confusion, as his company orders supplies and equipment from across the globe. Recently, purchases have been made by both companies in Illinois, leading to address confusion. And furthermore, the Michigan brewery is currently in talks for distribution in Chicago, Rivard said, which could lead to even more brand confusion. Despite the legal issues, Rivard said the brewery is in good position, and a new beer has been doing exceptionally well. Since its release, Paradigm Pale Ale has quickly become its top seller. The brew is an all-Michigan Pale Ale, or MPA, made with 100 percent Michigan hops and malt, and has overtaken Hoplust IPA as the brewery’s top seller, according to Rivard. “We’re really excited about that,” he said. “We are trying to get other Michigan breweries to do MPAs too.”
jured, but work at the assembly and distribution facility was stopped. Lacks officials say snow may be to blame for the damage. A roof collapse is “fairly rare,” said Dan Vos, a vice president, senior structural engineer and head of the structural department at Fishbeck, Thompson, Carr & Huber in Grand Rapids. “It makes news when it happens,” he said, but considering how many large commercial/industrial roofs there are in West Michigan, it is rather uncommon. In Grand Rapids, Vos said, engineers design a roof to hold at least 25 to 35 pounds of snow per square foot, which is based on the average snow depth on the ground here. But the average depth is higher along the Lake Michigan shore north of
Grand Haven, which is reflected in the building code there. In areas of a roof where wind currents may be expected to cause the accumulation of a larger amount of snow, the code requires a stronger design. Vos said what really matters is the density of the snow on a roof. Dry snow may only weigh 10 pounds per cubic foot, but the same volume of wet snow can weigh 20 pounds. When rain is predicted on top of a lot of accumulated snow — as was the case during the recent holidays in West Michigan — some contractors will recommend removal of snow from roofs. The use of a snow rake is recommended because it’s too dangerous to try climbing up on a pitched roof with snow on it.
According to Jim Horman, an architect with Progressive AE, Grand Rapids happens to be in the northern end of ASHRAE Climate Zone 5, which stretches into southern Indiana and is a guide for how much insulation should be used in construction. ASHRAE stands for the American Society of Heating, Refrigerating and Air Conditioning Engineers. Insulation is a key issue in roof design because it has a lot to do with how much snow will accumulate on the roof and how much melting will occur, causing ice build-up on the edges of the roof. Horman said he is seeing fewer ice dams and big icicles hanging off roofs this winter because the intense cold has prevented any heat under the roof from melting the
snow. Horman said sometimes cleats are attached to metal roofs to catch and hold snow that might otherwise avalanche off onto sidewalks or entryways. “We are not doing a very good job of collecting snow and reusing it,” quipped Horman. He said using electric heating cables on edges of roofs are now seen as detracting from the building’s sustainability. “We also complicate our roofs, sometimes, in a positive way,” he said, referring to live roofs that contain plants growing in containers to improve the roof’s R value for cooling in the summer. Those roofs also are designed to prevent Continued on page 9 8
Collaboration and Passion Earn National Recognition for Mercy Health Saint Mary’s Only eight percent of U.S. hospitals achieve Magnet Recognition®, but that’s just what Mercy Health Saint Mary’s accomplished when it received the acknowledgement from the American Nurses Credentialing Center (ANCC).
Magnet Recognition from the ANCC is the most prestigious distinction a health care organization can receive for nursing excellence and high-quality patient care. It is considered the gold standard — fewer than 400 hospitals worldwide earn a spot on this list. “Being a Magnet nurse means seeing the whole picture,” said Amy Groenhout, BSN, RN, CNRN, nurse navigator of Neuro Intervention and Stroke Program coordinator at Mercy Health Saint Mary’s. “Nursing can’t be just a job. It has to be a profession and a passion. Your work has to come from your heart, and you have to feel for the family who’s on the other side of what is going on. It’s a culture here.” Pursuing ANCC Magnet Recognition is a challenging and lengthy process that requires a fundamental culture focus throughout the entire organization, as well as participation and dedication from each team member, including leadership, physicians, technicians, nurses and support staff. “We act like a big family here,” said Yvonne Denoo, BSN, RN. “We collaborate with our team members, our doctors, radiology, respiratory therapists. We love helping one another get the job done.” Mercy Health Saint Mary’s worked toward this goal for nearly a decade and in the process has impacted patient care, improved the culture and work environment, enhanced the voice of nursing and shared leadership, supported nurses in professional
Mercy Health Saint Mary’s is the third Trinity Health hospital and the 13th Michigan hospital to earn the designation.
development, and made significant improvements in outcomes for patients and their families. “This recognition is really the culmination of years of commitment, enthusiasm and hard work from each one of our staff members,” said Liz Murphy, Mercy Health Saint Mary’s vice president and chief nursing officer. “These people spend every single day ensuring that our patients and their families are receiving the best possible care.” Once Magnet Recognition is achieved, hospitals must sustain their standards and demonstrate outcomes of excellence in patient care and clinical practice. According to the program’s vision statement, hospitals with Magnet Recognition are flexible and constantly striving for discovery and innovation, leading the reformation of health care, the discipline of nursing, and care of the patient, family, and community. In addition, Magnet designated hospitals are known to attract and retain high caliber nurses, as well as other superior talent across the health care professional sector. Studies show Magnet hospitals have higher percentages of engaged registered nurses (RNs), lower RN turnover and vacancy, improved clinical outcomes, greater nurse autonomy and improved patient satisfaction. Because Magnet designation is a multiyear commitment, it offers a long-term framework for quality improvement efforts and a means for engaging and motivating staff at all levels.
8 Grand Rapids Business Journal February 3, 2014
City eyes tax increase 7 Continued from page 1 roughly $8.3 million for street reconstruction and repair. On Feb. 11, the City Commission will consider two documents: one is the spending guidelines for those tax revenues and the other is answers to frequently asked questions the city may get if the voters approve the ballot questions May 6. The spending guidelines are “the promises that we make to voters about how we will spend the money, who will make the decisions, how we will report back to citizens how every dollar was spent … That kind of thing,” said Sundstrom. Last year a city task force studying the cost of repairing the streets estimated that in 2014, roughly $3.4 million could be available from the city’s share of the state’s gasoline and diesel tax revenue, and another $3 million might be captured from grants through the state. The Sustainable Streets Task Force estimated $22 million is needed each year to maintain 70 percent of the city’s streets, sidewalks and public rights-of-way in good or fair condition. The group concluded in its report, however, that only 8 percent of the 588 miles of streets are in good condition, and 60 percent are in poor shape — with that number hitting 87 percent by 2019 without any new investment by the city. In his January State of the City address, Grand Rapids Mayor George Heartwell focused on high priority capital spending facing the city — and “the mother of them all,” he said, is funding for the streets and sidewalks in disrepair. Noting that fractured, potholed streets hurt business and
increase the cost of driving in the city due to vehicle damage, Heartwell said the city’s investment has been $3.4 million a year, matched with another $3 million in transportation grants. The Michigan gas tax revenues “have fallen precipitously over the past decade and are now just enough” to generate matching grants for the city, said Heartwell. Because the state legislature does not seem likely to approve an increase in the state gas tax, “we have to take matters into our own hands,” he added. In 2010, voters approved a fiveyear increase of the city income tax rates, to 1.5 percent on corporations and residents and 0.75 percent on non-residents who work in Grand Rapids. The tax rate had been 1.3 percent for residents and corporations, and 0.65 percent for non-residents. Set to expire at the end of June 2015, the increase yields additional funds that are earmarked for staffing on the city police and fire departments. So if the vote is “yes” in May, the tax rates will continue for another 15 years after July 1, 2015, but that revenue would be going to streets and sidewalks. The section of the City Charter that puts the burden on the abutting property owners to build, maintain and repair sidewalks dates back to 1918. The proposed charter change facing voters May 6 would state that if voters approved the continued income tax increase to 2030, the 1918 requirement “shall be of no force or effect.” Holding the special election in May, rather than waiting for the November election, will cost the city an estimated additional $75,000 to $80,000, according to the city clerk’s office.
Health officials gear up for new threats from climate change Danielle Woodward
Capital News Service
LANSING — State health officials are struggling to anticipate new health threats posed by a changing climate. The Michigan Department of Community Health has put together the Michigan Climate and Health Adaptation program to prepare for any health risks the climate change may bring. The program was recently renewed with a grant from the Centers for Disease Control and Prevention. The unusual weather brought on by climate change can have health consequences that range from something as minor as dehydration to as serious as a West Nile virus outbreak, said Angela Minicuci, a public information officer for the state health department. “Our primary goals are that climate change will be recognized as a public issue and integrated into a public health practice,” said Dominic Smith, the state health department community health educator. This program assesses what the public health consequences of a severe climate change would be and works with partners in local health departments to be prepared for changes related to health climates so they are able to respond appropriately, said Minicuci. The program began in 2009 with a grant from Centers for Disease Control and Prevention, which was renewed for another three years in 2013, according to the health department’s website. Grant funding for the 2013-2014 year was $173,000 and is expected to be renewed yearly.
While the health department has been working with counties such as Ingham and Washtenaw, many counties are without a plan. Local health officials of Grand Traverse, Macomb, and Marquette counties said that they did not have particular plans in place to deal with health risks caused by climate change, but would deal with them on a case-by-case basis. All health risks mentioned by the health department are expectations, as health officials have not yet seen any long-term trends directly related to climate change, Minicuci said. But experts say it’s a matter of time. “The major issues around public health for the southern part of Michigan are generally having to do with heat waves and relief from them, as well as different diseases migrating up from the south,” said Daniel Brown, a research associate with the Great Lakes Integrated Sciences and Assessments Center, a center operated by Michigan State University and the University of Michigan that studies climate change adaptation. State health officials measure how residents respond to extreme heat, as well as study how they can travel to cooling centers and what ways residents are informed about the weather, Smith said. In the summer of 2012, extremely dry weather caused a drastic increase in West Nile virus cases in Michigan. The health department recorded 202 cases and 17 deaths that year, as opposed to 2011’s 33 recorded cases and two deaths. If dry summers become a
trend, the state can expect to see a lot more West Nile cases, which would be a concern, Minicuci said. More extreme heat waves also are projected. “We expect to see more threatening hot days with less relief but haven’t seen the trend grow for Michigan yet,” Brown said.
“Our primary goals are that climate change will be recognized as a public issue and integrated into a public health practice.” Dominic Smith “If something like West Nile hit hard because of climate change, we’d want to have tools in place to raise awareness, stop cases from going up, and get out forms of treatment,” Minicuci said. The clearest signs of climate change are increases in extreme precipitation, said Brown. The heaviest storms are getting heavier and becoming more frequent. The average annual precipitation rate for Ann Arbor, for example, has increased by 25 percent. “With more storms and flooding, we would expect to see water contamination and waterborne disease rate increases,” Minicuci said. Warmer temperatures and increased rainfall also can conspire to produce algae blooms, which are toxic, Brown said.
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February 3, 2014 Grand Rapids Business Journal 9
Michigan Winter Games begin next week 7 Continued from page 1 archery, basketball, BMX-indoor, bowling, fat bike, racquetball, rowing-indoor, ski/snowboard, snowball softball, snowshoe/trail running, speed-skating and wrestling. The Michigan Winter Games are the 10th in the nation, with New York’s games ranking as the most prestigious, Engelbarts said. Those games are held at the Lake Placid Olympic Training Center. “It’s pretty top-notch and that’s what we aspire to be,” he said. “But we don’t have that facility. As far as resources are concerned, we use what’s available.” One venue, which has been ranked as one of the top terrain ski parks in the Midwest, is Cannonsburg Ski Area. The opening ceremonies will take place there, followed by the Big Air ski show that will be put on for those coming to the ceremonies, Engelbarts said. “The skiing and snowboarding communities have really embraced the Winter Games,” he said. “They were really looking for something like this.” Running two annual statewide athletic events can turn into a logistical nightmare, Engelbarts found. He said he created a “grand scheme of things timeline” to help with organization and thought he could work on one event at a time. But at some point, he realized he was working on both winter and summer events at the same time. “I thought we could plan Winter Games, get through it, then plan Summer Games, and then we’d concentrate on that wrap up,” he said. “Then I look at the timeline and I’m doing everything at once. “The Summer Games are so big, so demanding you have to start early — and we’re going to be up to 38 sports this summer. So we’re looking at opening up the registration and updated the website like right now, when we should be concentrating on the Winter Games.” Much of the Winter Games stress has come from the creation
of its website, which includes about 50 pages of new material. Engelbarts recently announced the addition of new summer sports, including bocce ball, waterskiing, urban downhill skateboard, horseshoes and cycle cross. Urban downhill skateboarding presents a major logistical challenge as it will run through downtown streets, necessitating the closure of roads around Grand Rapids Community College, Spectrum Health and other area businesses. “It was far-fetched. Not a lot of people could pull it off; it was kind of a personal project,” Engelbarts said. Engelbarts said he had a lot of help on the project, from one of the founders of Bustin Boards, a New York City based longboard company, to Kendall College of Art
and Design, which has seen skateboard design become a “hot topic.” Hosting two events every year will help the organization further its mission, which not only includes bringing money into Kent County, but helping promote participation, sportsmanship and healthy living. Adding mainstream and obscure sports, such as horseshoes, also will accomplish that goal. “We have so many stories about entire families who drive back with a whole bunch of medals and stories about being together,” Engelbarts said. “By adding a second games, it gives people a reason to train all year. “Right now we call it the best kept secret in the country, but we want more people to know and get out and compete.”
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Roofs should handle snow 7 Continued from page 7 rainwater from entering the city storm sewers and treatment plant. Instead, they funnel runoff into cisterns that store the water for irrigation, which is precisely the situation involving the live or “green” roof at Grand Rapids’ new Downtown Market. And as for so-called “flat” roofs: Both Horman and Vos pointed out there is no such thing as a really flat roof. The building codes always require a slight pitch in every roof so that rainwater does not pool on it, which certainly would cause as much strain as the wettest snow. “The vast majority of flat roofs really aren’t flat,” said Vos. Vos has been involved in roof design for Meijer stores, which can cover 200,000 square feet. An engineer would like to design for more pitch to a roof, said Vos, but that adds to the cost. Owners of commercial buildings usually opt for the roof design that meets minimum building code requirements — meaning less pitch to keep costs down.
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Inside Track 10 GrAnD rAPiDs Business JournAl FEbruAry 3, 2014
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FreNCh-BorN Anne Berquist is happy to be back in Grand rapids, where she sees many positive changes since she left. photo by Jim Gebben
Educating and developing future audiences is high on the list for Executive Director Anne Berquist.
Charting a path for the future of Opera Grand Rapids Charlsie Dewey
Grand Rapids Business Journal
A
C E L E B R AT I N G YEARS
nne Berquist joined Opera Grand Rapids in December as executive director following the nonprofit’s national search to replace outgoing executive director Michael Havlicek, who retired in June. Berquist was not only a good choice based on her professional experience, but also because she already has ties to Grand Rapids: She called the community home beginning in 2001 when she moved to the United States from France. “My first residence was in Grand Rapids,” she said. “I was working in Kalamazoo, but I was living in Grand Rapids.” Most recently, Berquist lived in Florida, beginning in 2012 when she began working as executive director of the Atlantic Classical Orchestra. She said she is excited to be back in West Michigan, both because her three daughters still live here and because of how much Grand Rapids has changed since she left. “Since the time that I left Grand Rapids to now, it’s a different
town,” she said. “It’s incredible. I’m so impressed and proud. “I wanted to come back. Michigan became home for me. My girls were here. I found this opportunity with Opera Grand Rapids. “I think Grand Rapids is the place to be,” she added. “It’s on the map, it’s a destination, and I think the opera has humongous opportunities in front of us for how we can develop and go to the next step.” In the year ahead, Berquist will spend a lot of her time connecting with different stakeholders and organizations in the community as she begins to chart the path for Opera Grand Rapids’ future. “I think I can bring a lot to the table and take this organization to a higher level and developing new things,” she said. “It’s too new for me to know what we are going to do, but it’s going to be in discussion.” She did say, however, that education and accessibility would be major focal points of the upcoming discussions. “How can we develop an audience for tomorrow? How can we educate and tell them what the opera is?” Berquist grew up a musician — specifically, a cellist — taking up
ANNE BERQUIST Company/organization: Opera Grand rapids Position: Executive Director Birthplace: France residence: Kalamazoo (looking for a home in Grand rapids) Family: Three daughters, Sixtine, Tatiana and brynn Business/Community involvement: None yet. Biggest Career Break: Her decision to earn an MbA in arts and culture business management, and moving to the u.S.
the instrument at the age of 5. Her father enrolled her in a school that provided intensive musical education alongside traditional academic studies. She won her first chamber music competition when she was 12. In addition to providing a strong arts education for his children, Berquist said her father also instilled the idea of the United States as a place of freedom, so that as she grew older, she was ea-
Inside Track FEbruAry 3, 2014 GrAnD rAPiDs Business JournAl 11
ger to come here and experience it for herself. By chance, while Berquist was living in U.S. briefly in the late ’80s, she met a music professor from Grand Valley State University who, in 2001, would recommend her to Fontana Chamber Arts in Kalamazoo, where she was named artistic and executive director and CEO.
“How do we educate the audience? You can’t just bring people into your hall without educating them to what you do.” “Something that was very interesting to me in that specific job is they were combining the artistic and the administration together,” she said. “It’s a small organization, and they were looking for someone with both talents. Very rarely do you get to do both.” Berquist had recently completed her Master’s in Business Administration in arts and culture business management at the Sorbonne in Paris. She said the job was a perfect fit. She and her three daughters relocated from France, and she worked at Fontana for seven years. “We became one of the anchor organizations recognized by the Michigan Council for Cultural Affairs,” she said of the organization’s development while she was at the helm. Berquist said that one of the skills she picked up from her role at Fontana was fundraising, which was something that wasn’t done in France at that time and still isn’t common practice now. In fact, she noted that it seemed like everything was different in the
United States from what it was in France. One of the toughest things about the move was adjusting to the cultural differences. “Everything I think that is happening here in the states, almost on a daily basis, is very different from the way I was raised,” she said. “I was living at that time in Paris, and arriving in Michigan was a huge cultural change for me. I had to adapt and I’ve really enjoyed it since I became an American, so I am happy with this, but it was an extremely big change for me.” She noted that arts education was one of those differences, mainly because here in the U.S., it wasn’t part of everyday life and it wasn’t accessible to everyone. “I felt when I came here, I was so fortunate to have had this kind of education that I couldn’t even give to my kids because I couldn’t find the schools or teachers, and when I did, finally, I couldn’t afford it. “One hundred percent of the students in France do something (in the arts), and it doesn’t cost money — you don’t need to be part of a certain circle in society or have specific resources, which you need to have here. You need to (be able to) afford it because it costs money here.” Arts education and accessibility have been a motivating factor for Berquist throughout her career. In fact, from 2010 to 2012, she served as president and executive director at the Ann Arbor School for the Performing Arts, and from 1997-1999, she held positions as administrative director and director of studies at Conservatoire National de Région Musique et Danse in France. “Education is extremely important for me, whatever I do,” she said. “How do we educate the audience? You can’t just bring people into your hall without educating
them to what you do. “It probably used to be that way because you had to be in a certain place, you had to be seen. It’s not like this anymore. “So, whatever I do, wherever I am, it has to have an education component.” Berquist thinks Grand Rapids is on the right track, acknowledging several programs that reach out to the community and provide people — especially young people — with the experiences and education they need to become future audiences. Berquist has eagerly jumped into her role with Opera Grand Rapids, so much so that she has yet to have time to hunt for a house. She said it’s because she’d rather be working than looking for a place to live. She currently is overseeing the remainder of the 2013-2014 season, which includes the organization’s first performance at the East Grand Rapids Performing Arts Center. Mozart’s “The Abduction from the Seraglio” will be performed there in March. Berquist said that although she wasn’t involved in the decision to hold the performance there, it is exactly the sort of thing that is likely to occur in Opera Grand Rapids’ future, a move toward building a closer connection between the performers and the audience, including the opportunity to see performances in a more intimate setting. It is a move that other performing arts organizations have begun to try across the country, as well, in an effort to attract a younger and more connected generation — one that is expecting something different from their evening outings. Hopefully, Berquist said, her passion for education and accessibility will help Opera Grand Rapids attract the next generation to its performances, wherever they might be.
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Comment & Opinion 12 Grand Rapids Business Journal February 3, 2014
Editorial
Minimum wage hike is maximum stupidity
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resident Barack Obama’s State of the Union speech last week was little more than rhetorical practice, and the Business Journal might have ignored a speech void of substance, but the resulting debate regarding minimum wage levels demands comment, lest simple minds believe it is a method to boost the economy. Obama made minimum wage increases his 2014 mission and not just a boost to the federal minimum wage but to well more than the rate of inflation — to $10.10 per hour, up from the current federal mandate of $7.25. It is in fact just more political rhetoric. The federal government already pays its contractors more than the minimum wage, and more than a dozen states already have raised minimum wage levels within their boundaries. Those states are desperately recruiting to their labor force. The political popularity gained is short-lived, especially as the consequences of such a move further fractures “the economy” proponents believe they are “assisting.” — Fewer than 5 percent of hourly workers earn minimum wage. Any additional spending to spur
As prices rise, those still employed in minimum wage jobs will see that extra $2.85 an hour mostly absorbed by the price increases.
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GUEST COLUMN
lmost every Michigan hotel or restaurant operator has confronted the daunting process of procuring or transferring a Michigan liquor license. Buyers and sellers of these entertainment venues often enter into multimillion-dollar development or sale transactions, only after complex negotiations and the difficult procurement of commercial financing from lending institutions. In today’s economic climate, more than a few of the transactions involve efforts to rescue prominent convention hotels facing the potential of foreclosure or bankruptcy. Once the financing is in place, the parties attempt to close the sale in an efficient and accurate manner. However, after months of negotiation and work, the issue of transferring the Michigan liquor license will rear its ugly head — sometimes even during the closing. The unknowing buyer and seller may face a process almost as lengthy and daunting as consummating the transaction itself when they tackle the license transfer — until now. New Michigan legislation could make it easier and faster to secure a conditional liquor license that would allow the new owners to continue to serve.
Steven D. Weyhing
Can I get a drink here? New liquor rules make it easier
Conditional licenses on horizon When it comes to liquor laws, Michigan is one of the most difficult states to do business in. Our liquor laws date back to post-Prohibition days when Michigan had a totally different econo-
the economy would have little impact. — Few providers of minimum wage jobs see such employment as a career track. Even those dependent on such jobs are better served by educational resources and a “track” out of minimum wage jobs. The issues attendant to education are well documented and deserve correction. The call for minimum wage improvements can be seen as a clarion call for education funding at all levels, including student loan funds and interest levels. — Such oversight as to “fair” wages and the resulting mandate to business owners comes heaped upon the tremendous burdens and increases businesses are absorbing in the first blows of the Patient Protection and Affordable Care Act. In fact, any forced change to the federal minimum wage at the level suggested will have the reverse effect on those politicians thinking it will draw favor in midterm elections. The Business Journal suggests it would be a political poison pill instead. While the effects could be crippling to the legions of small businesses (fewer than 20 employees), every business would pass along the impact in pricing. As prices
my and an entirely different way of delivering alcohol. Over the past 80-plus years, we have managed to create a labyrinth of special exceptions and confusion that make things difficult for the uninitiated. If the buyer in the above-referenced transaction is not from Michigan, it’s unlikely he will have faced the obstacles in transferring a liquor license that await him. If the buyer and seller wait until closing without a plan or the certainty that the liquor license will be transferred, they face a complex and lengthy process before being able to serve the first cocktail. Under current Michigan law, a hotel or restaurant cannot operate under its liquor license unless the seller remains involved and receives all revenue and profits from the “licensed business,” which includes all revenues related to the business to which the license is attached. Further restrictions prohibit a licensee from operating for the benefit of another entity and require a licensee to have full control of the licensed premises. What’s a new buyer to do? Right now, buyers and sellers often opt for a work-around in the form of an interim management agreement and lease to weather the license investigation timeframe. Despite these paper constructs, there is still a potential that the seller of the hotel will be faced with a violation claim. Although the fine can be minimal, the violation can add months to an already six-month process. A glimmer of hope has arisen
rise, those still employed in minimum wage jobs will see that extra $2.85 an hour mostly absorbed by the price increases. The most impactful issue on wages is supply and demand, as
demonstrated across the country. Already retention and recruitment have spurred states (and the federal government) to boost wages and attract workers. No new mandate is needed.
from Michigan Legislature with the passage of House Bill 4277, co-sponsored by Rep. Ken Yonker of Caledonia. Although it is tiebarred to several other pieces of liquor control legislation and does not become effective until those bills are passed, it does hold out the hope of a new process in Michigan for the issuance of a “conditional license.” While the conditional license is not a guarantee that a permanent license will be issued or transferred, it at least alleviates the cumbersome interim arrangements put in place to comply with the Liquor Control Code while the application process unwinds. To utilize the option of a conditional license, the applicant under the new law must: submit a separate application form requesting a conditional license; pay an additional fee of $300; and attach an acceptable proof of liquor liability responsibility, such as an insurance policy, and a real estate document demonstrating control of the licensed premises. The Liquor Control Commission then has 20 days to approve or deny the conditional license for a single location. If multiple locations are involved, the commission has an additional 10 days.
Although passed into law, the conditional license is not currently available, since it depends on the passage of a number of other liquor control provisions that remain before the Michigan House and Senate. However, if the other provisions pass, the process will provide a more efficient alternative to the interim management agreement and lease structure currently in use. Buyer beware, though: Procurement of a conditional license is not a substitute for the preventive medicine of addressing the liquor license issue as early as possible in a transaction involving the development or purchase of a hotel or restaurant. Identifying the issue early will make for an overall more-efficient process and offer potential protection for the buyer by making the purchase of the facility contingent upon approval of the license from the LCC.
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.
Steve Weyhing is a senior counsel at Warner Norcross & Judd who focuses his practice in state and federal regulations, with a particular emphasis on helping clients work through licensing and compliance disputes. He can be reached at sweyhing@wnj.com.
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February 3, 2014 Grand Rapids Business Journal 13
PEOPLE MATTERS David J. Smith
Learning how to deal (and coexist) with difficult people
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am admittedly more patient than most in weighing some one’s “positives” against their “negatives.” As long as an individual con tributes more good than bad, I will probably appear to be relatively tolerant and encouraging in what they try to do, even if I may be ever frustrated at the pace of their work or the quality of their decisions. I to focus on results rather than tend on — as recognition long as the objective is accomplished, why worry or credit? about receiving praise Some people, however, would think differently, often loudly and becoming we abrasively, what might label as being “rather difficult.” Difficult people like to speak their mind and get their way. They do not like to be told “no,” even if there is a solid, rational reason — and the reason is not their own, theyifwill probably not accept it contributions to the easily. Their whole often minimized generalare by a lack of acceptance. A group not like a cocky know-it-all or does one who never gives recognition to others, regardless of how valuable that may person’s contribution be. Difficult people tend to talk they listen, to act more more than than they refrain, and to cover their own inadequacies by dwelling on the shortcomings of others. They tend to be argumentative, talking over those around them
rather than to them, perfectly willing to wear others down rather than discussing alternatives. Rather than raising their own level of performance, difficult people tend to establish themselves as the “bar” that must be reached, attempting to keep others below this target by diminishing their character and minimizing their ability to contribute by openly negating any suggestions they might advance. Difficult people focus on themselves and their own actions, feelings or ways of doing things, often losing sight of common goals or reaching shared visionary destinations. When dealing with difficult people (and their behavior), many people: • Ignore them (hoping they will go away); • Minimize conflict by listening to them (whether or not they intend to act on what is said); • Avoid interacting with them whenever possible (covertly or overtly); • Resist until beaten down enough that doing things their way is a better alternative than arguing anymore; or • Worry themselves sick about the problem (essentially paralyzing their ability to act independently). Rather than addressing a behavior or issue, people find it much easier to close their eyes, ears and mouths than take exception to an-
other’s behavior or initiate change. By avoiding the obvious and escaping into an internal “safe place” that causes others to suffer with us when we ignore the pain and accept the result, we do not resolve the issue of coexisting with difficult people. To effectively deal with difficult people, we must: • Listen to those speaking to identify their true strengths, abilities and/or talents, particularly those masked by an abrasive personality or an unbending personal resolve. • Identify a common goal, talk about how we are going to get there, discuss what road signs we should see along the way to verify our direction, and define both rewards and consequences should the path less acceptable be taken. • Diffuse the sense of “personal superiority,” replacing it with one of at least passive acceptance of others. • Find and publicly acknowledge the positives people contribute while acknowledging but minimizing the negatives their behavior can create. • Speak more in generalities than specifics. Difficult people love to argue points that demonstrate their superiority. Focus more on concepts than facts — more on outcomes than methods or processes — to diffuse, rather than escalate, a difficult conversation. • Assign ownership to actions
and then establish clearly and concisely who is in charge, who is responsible and what rewards or consequences will result from completion or failure of the task — NOT who will be blamed or who will receive the credit. • Establish only consequences you are willing to administer. Never say you will or will not do something or else — unless you are willing to do whatever “or else” you promised as a consequence to the undesirable action. Making hollow threats and conditions minimizes your credibility, your ability to manage and tarnishes the respect others have for you. We all face situations in which people we work with are more difficult than others. Moving forward together, maximizing the strengths that different people bring to the mix while minimizing the weaknesses that are bound to surface allows us to perpetuate success. Effective personal relationships and fully functioning teams share a common bond: Both must identify a common goal, create a single focus, develop processes or actions that can be monitored and maintained, clearly define expectations that can be measured and acknowledge that someone has the responsibility to monitor actions, provide oversight and address deficiencies. Taking the path of least resistance when dealing with a prob-
Difficult people focus on themselves and their own actions, feelings or ways of doing things, often losing sight of common goals or reaching shared visionary destinations. lem can make our “here and now” a relatively peaceful place, but ignoring the negatives a situation or individual creates through their unresolved bad behavior can make even the most agreeable people in our lives difficult to work with. David Smith is president and CEO of The Employers’ Association in Grand Rapids.
Sales Moves Jeffrey Gitomer
Mirror, mirror, on the wall, are you the best salesperson of all?
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hat makes a “top performer” a top performer? If you hold interviews with the most successful salespeople in the world and ask them, “Why are you successful?” they’ll give you their take on it, but it will not be the right answer. They will give you symptomatic responses like, “I get up early in the morning,” or “I work hard every day,” or “I’m willing to do what other people are not willing to do,” or “I ask a lot of questions,” or “I put my customers first.” All of those answers and characteristics will not help another salesperson to become more successful. I would rather hear something like, “I have coffee with one customer every morning at 7:30,” or “I pre-prepare three questions before every sales meeting — engaging, thought-provoking questions about what I believe are the emotional elements of my customers desires,” or “I take notes when the customer is talking to be certain I capture his needs and my promises.” The differences are subtle. Most successful salespeople have no concept of why they are successful, or perhaps they have no ability to make it clear — or even, never gave it much thought.
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Yes, the salesperson asked a lot of questions, but the secret is to get to the motive of the person wanting to buy. The questions the salesperson asks should draw out emotion and buying motive and, as a result, create a buying atmosphere. So, when I interview a successful salesperson, I want to make sure, if I’m asking him or her why they are successful, that I’m getting to the “what they actually do” behind their perception of why. Yesterday, I interviewed two multi-million dollar producers. I asked them what they did to get to their top position. Here are the net results (what I asked plus what they said plus how I interpreted it plus how they agreed it really was after I restated/reworded it): 1. They persist without being a pest. They follow up professionally and consistently with value messages and firm reasons to buy. The key: Never miss one followup. 2. They build real relationships. It’s more than just a sale; they invest quality time with each customer beyond the sale. 3. They receive a high percent-
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age of repeat orders without a bid, quote or proposal. This is a result of trust and relationship. 4. They pass on the sale if the deal isn’t a good fit or good profit. They are not afraid to lose a sale or pass on a sale if it’s a no-profit one, or one that goes outside their business safety. 5. They make recommendations that favor the customer, not the salesperson’s wallet. They do what is best for the long term, not just to make the sale. 6. They think “customer,” not “sale.” That strategy leads to customer loyalty. 7. They think “ask,” not “tell.” Great salespeople discover needs and motives by asking, not giving a sales pitch. (Secret: They don’t use the slide deck provided by marketing because it didn’t help them make a sale.) 8. They think “friendly,” not “professional.” Their relationships are enhanced by the relaxed
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attitude found in friendships. 9. They think “service,” not “quota.” They found the better they serviced their accounts, the easier it was to get the next order. They never worry about their “sales plan” or quota. 10. They are accessible and available. All of their customers can text when needed. 11. They are trusted by their customers. The trust they have has been earned slowly over time. Customers ask their advice before they buy. 12. They are truthful at all costs. Relationships based on truth end up being relationships based on trust. 13. They are experts about their product and their market. Their customers want to know their salesperson is an expert, not just a nice guy. 13.5 As a result of all the other things they do for their customers, they get referrals, often without asking. Referrals are not just leads, they’re report cards. Now you can say anything you want to about this list. But be careful what you say because this is from salespeople who make big sales and are putting major money in the bank. How major are you?
Most successful salespeople have no concept of why they are successful, or perhaps they have no ability to make it clear — or even, never gave it much thought.
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FOCUS february 3, 2014 Grand rapids Business Journal 15
Industry assembles Construction Workforce Development Alliance Goal is to get prospective employees educated and working in construction locally. MiKe niCHols
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hat do you do when work-force development challenges, a negative image and overall economic peril knock at your industry’s door? You form an alliance. A new major collaborative effort on behalf of West Michigan’s construction industry is dawning. Three industry titans and their partners have joined forces, assembling as a team in an effort to make a radical impact on marketing and educating the area about the construction industry and its growing job opportunities. According to the initiatives of the new alliance, the team’s goal is to “develop and implement a plan to redefine the image of construction and to promote career opportunities within the industry.” The initiative is called the Construction Workforce Development Alliance of West Michigan. Its main three membership groups are the Home Builders Association of Greater Grand Rapids, the American Subcontractor Association of Michigan, and Associated Builders and Contractors of West Michigan. In a roundtable interview with the Grand Rapids Business Journal, Emily Siebert, executive officer at HBAGGR; Linda Vos-Graham, president of Vos Glass; Benjamin Wickstrom, president of Erhardt Construction; Charles Lane, vice president of Iron Works Inc.; Norm Brady, president and CEO of West Michigan’s chapter of Associated Builders and Contractors; and Jacob Maas, executive director of Michigan Works!, sat down to discuss the new venture. “We have the goal of improving the image of our industry and making sure we’re communicating the benefits of a career in our industry,” Brady said. “We’re also making sure scholarship opportunities are available for young folks who would consider this industry as a career path.” Like many West Michigan collaborations of recent years, this one had roots in the Great Recession. Although no industry is recessionproof, the construction industry especially felt it, said Wickstrom. “It was the state of the economy,” Lane said. “Everything got hit heavily. It was the nature of the economy, not the industry.” Now, however, the economy has bounced back. The construction industry has made a comeback too, say the alliance members. There’s a tremendous need right now for skilled laborers, said Vos-Graham. The Bureau of Labor Statistics is
about to release a report stating that projects in the construction industry will add 1,839,000 jobs nationally by 2020, she said. As the jobs are added and as an aging work force leaves the industry, a major employment gap is created. If left unaddressed, this gap will develop into a long-term issue for the construction industry, especially at the local level, Wickstrom said. Members of the CWDA are already beginning to recognize signs of it in their own companies. “All three associations and its members are at the same time feeling a labor crunch in the industry. We all feel that developing and training a skilled work force sufficient to keep up with the growth and demands of our industry is probably one of the most important things facing our industry right now,” Wickstrom said. Part of the problem comes from a lack of marketing by the industry, the alliance said. There’s a perception that construction is low paying and seasonal, neither of which is the case anymore, especially with modern technology, Lane said. “With many schools having dropped shop classes … you don’t see people come out of high school that have had any taste of using power tools, reading tape measures, doing anything construction people do,” he said. “That’s what part of our core curriculum will be: to put that back in the students.” This all comes at a time when the construction industry is evolv-
ing, Wickstrom said, and that’s rare. Historically, the industry has been one of the slowest to improve, innovate and advance in terms of technology and practices, he said. “It’s a slower industry to be adapted because the way it’s been
The first order of business in terms of marketing is to create a website that will serve as a resource for anyone needing an “in” to the industry. If you Google “construction careers in West Michigan,” not much comes up, Siebert
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HELPing To gET the CWdA off the ground are, from left, Charles Lane, norm Brady, Benjamin Wickstrom, Linda Vos-graham, Emily siebert and Jacob Maas. Photo by Mike nichols
done has always worked,” Wickstrom said. “Now there’s a lot of us that are embracing change, embracing technology and doing things in a new way. The perceptions young people probably have of our industry no longer apply.” Based on this context, the CWDA team has two objectives: market and train to employ in West Michigan.
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said. Soon, that won’t be the case. The new website will have job listings, industry statistics and informational resources for parents and students interested in construction education opportunities. The website, funded by the three CWDA members, will cost about $10,000 and is about three months away from completion. The second order of business — and certainly the most ambitious part of the CWDA’s plan — is to develop an educational construction curriculum and certification through ABC and Grand Rapids Community College that could eventually be used in community colleges across West Michigan. This initiative is called the Construction Core Certification. “When we were putting this curriculum together, one of the things that was important to us is that we keep it to an overall duration so that there could be a quick turnaround for employment opportunity for students in the class,” Wickstrom said. A CCC pilot program that includes 17 entry-level employees of the three CWDA members kicked off Jan. 17 at the Michigan Works! M-TECH Service Center, 622 Godfrey Ave. SW, Grand Rapids. A jumpstart CCC program is scheduled to begin in early June. The certification program includes 96 hours of training and 12 modules designed to offer full training in residential and retail
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construction. “The pilot program is in place and goes two nights a week (Monday and Wednesday) for about four months,” Brady said. “Then comes the scholarship program, which is all the same courses, but M-TECH has said (it) can deliver that on a full-time basis and get that 96 hours done in three weeks. … At the end of the three weeks, we guarantee that every student from that scholarship program will have a minimum of two interviews for full-time employment with members of our respective associations.” Anyone interested in signing up for the modules will be able to do so at grcc.edu/grccfoundation. Vos-Graham — who Brady said was the impetus behind the training concept — said she expects the courses to fill quickly. The graduates will not only be certified but also have access to job interviews at the hundreds of organizations represented by CWDA. There are also plans to have a career day. “The three associations have put a group of people together to go through the program, but now we’ve actually taken it the next level to where we are going to have a jumpstart program in the summer with graduating high schools that will be fully funded with the help of Michigan Works! and these trade organizations that will now round out a full scholarship for entry level people,” she said.
Grand Rapids is growing and it’s becoming one of the places in Michigan that’s thriving. EVAN MATHISON, PAGE 16
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Commercial Quarterly 16 Grand rapids Business Journal february 3 2014
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Gideon Sanders
“They set us up with the headto-toe package,” Sanders said. “Now the kids no longer have to focus on finding a spot in the house for warmth; they can focus on learning.” Instead of huddling in the heated basement of the house, the students can work comfortably, even in the cold polar vortices that have settled on the Midwest of late.
— previously Central High School. Other academies at the school include the Academy of Health Science and Technology; the Academy of Business, Leadership & Entrepreneurship; and the Grand Rapids Area Pre-College Engineering Program (GRAPCEP) Engineering & Biomedical School. Continued on page 18 8
Father and son take plunge to form new architectural firm
Real Estate counsel should always be down-to-earth.
Real Estate Law. One of the Mika Meyers practice areas that add value to our clients’ businesses. For more information, visit mmbjlaw.com.
Earlier this winter, Gideon Sanders watched as students loaded into buses wearing sweatshirts, baseball caps and sneakers. The Grand Rapids Public Schools director of innovative strategies didn’t like what he saw. The students were from GRPS Academy of Design & Construction and were heading to a Habitat for Humanity project where they would learn hands-on skills. “I thought about (how) … that could not be safe with the temperatures the way they were,” Sanders said. “Yet, they went merrily to the worksite without any complaints.” Sanders thought about it for a
bit and then pulled an ace from his back pocket. A prior meeting with Carrie Hill, a product developer at Wolverine Worldwide, sparked an idea, and soon the students were outfitted with more than $8,000 worth of gear.
Whatever happens, they will be together for Thanksgiving. Mike Nichols
Grand Rapids Business Journal
When Thomas Mathison was raising his son, Evan, it never occurred to him he might be raising the man that would someday be his business partner. But to his surprise and delight, that’s exactly who Evan has grown up to Thomas be. Mathison “I never really thought that we would end up working together,” Thomas Mathison said. “We had talked about the ‘what ifs?’ But it seemed like a theoretical conversation.” The Mathison men are a fatherson business partnership and the co-founders and principals of
12/21/12 11:00 AM
Mathison|Mathison Architects, a Grand Rapids-based architectural firm they founded in October 2013. Thomas, with more than 30 years of experience in the architecture industry under his belt, focuses on connections and developing the business, while Evan, who had been working in Boston as an associate at Maryann Thompson Architects, focuses on the design work and moving projects forward. Currently, they are running the business out of Thomas’ house in Forest Hills, but they are hoping to open an office in downtown Grand Rapids in October. Mathison|Mathison will not focus on one area so much as it will cut across a number of architectural categories, Evan said, offering clients a range of scalable work in categories that include residential, education, park buildings and civic projects. This type of scaling meets the needs of the generational shift happening in Grand Rapids right now, he said. As the city loses its parochial edge, a diversified architecture firm can better serve the area’s influx of young families and
young professionals, he said. “The trend for housing will be smaller housing that is more efficient and better designed. The new trend will also focus on square footage,” he said. “Grand Rapids is growing and it’s becoming one of the places in Michigan that’s thriving. It’s one of these places where people who have been away are moving back, and people that haven’t lived here before are moving here,” he said. Evan understands that story well. He too is a young professional with a young famEvan ily, who has reMathison turned to work in the city of his childhood. Currently, he and his family live at his dad’s while they wait for their new house to be finished. Although he loved his job and the New England area, Evan said Continued on page 18 8
Commercial Quarterly february 3, 2014 Grand Rapids Business Journal 17
Celebrating 60 years of design innovation!
Todd Oosting keeps C.D. Barnes Construction moving forward with projects like the one the firm completed for Celebration! Cinema. Photo by Michael Buck
C.D. Barnes marks 60 years by staying lean and conservative Promoting from within and staying debt free top list of priorities. Paul R. Kopenkoskey
Special to the Business Journal
C.D. Barnes Construction is celebrating its 60th anniversary by honoring its legacy and keeping an eye on the future. Specifically, that means the Grand Rapids-based general contractor plans to do its level best to stay out of debt, keep its overhead low, cherry pick the projects it will handle locally and nationally, and groom the next generation of leaders. “When things got scary in the
construction business (during the Great Recession), a lot of our competitors were taking jobs just to stay busy but hardly making any money,” said Todd Oosting, the company’s executive vice president. “We decided we’ll get smaller and stay profitable. We have no debt. We own all our own equipment. We prefer to stay lean and conservative.” C.D. Barnes got its start in 1917, a year when President Woodrow Wilson declared war on Germany, the Chicago White Sox beat the New York Giants four games to two in the World Series and, in Grand Rapids, brothers Cleve Dell (C.D.) and Roy Barnes, started a construction business by the name of Barnes Construction. Following the end of World War II, several adult children of
Cleve and Roy had joined the family-owned business. Over time, that involvement also included their grandchildren and great-grandchildren. In 1954, the two brothers split Barnes Construction into two entities. Roy incorporated the business under the original name, Barnes Construction, and Cleve Dell operated his business with the moniker C.D. Barnes Associates Inc. Ownership of C.D. Barnes Associates Inc. remained in the Barnes family until the sudden death of owner Spencer Barnes in 1999. With his death, four C.D. Barnes employees purchased the company: John Drozer became president, Carter Huffman became executive vice president, Todd Oosting took the position of secretary and David
TowerPinkster’s Grand Rapids Office (Former JA Building) - 4 E. Fulton - Pursuing LEED Platinum
Continued on page 18 8
Bill would allow state to purchase more land Local governments want more say in the decisions. Ashley Weigel
Capital News Service
LANSING — A bill that would uncap the amount of land the state owns and manages is being met with some opposition. Sponsored by Rep. Wayne Schmidt, R-Traverse City, the bill would raise the 4.626 million-acre cap on land and allow the Department of Natural Resources to acquire more. The change would be allowed because the department has a new plan for purchasing and selling land. The state cannot own more land than it does today, according to Brad Garmon, director of conservation and emerging issues for the Michigan Environmental Council. He said the cap is inhibiting the department’s abilities to do its job. “We want the DNR to get back
to doing what they do best,” said Garmon — managing the state’s land. According to Steve Sutton, DNR finance and operations manager, with land acquisition on hold, the DNR is unable to add recreation areas and public water access. While there are a few exemptions, such as property donated as a gift and trails, current law requires the department to have its strategic plan approved by the Legislature before the cap will be removed. Action on the bill has come to a standstill, as the DNR and Schmidt meet with the Michigan Townships Association and the Michigan Association of Counties to work out how local governments will be included in decisions concerning buying and selling land. The Michigan Townships Association wants an approval process that involves local officials before this legislation passes, said Judy Allen, its director of government relations. She said that in some townships, most of the land is owned by the state, so local governments
should have a say in what land is bought and sold by the state. The Michigan Association of Counties has similar concerns regarding being part of the decisionmaking process.
“We want the DNR to get back to doing what they do best, managing the state’s land.”
Brad Garmon
Deena Bosworth, director of government affairs, said the association wants to partner with the state, not just let the state do what it wants. She said the association thinks the DNR should have to seek approval from it before doing anything with the land, including how the land is used and developed. The bill is in the House Natural Resources Committee.
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Wolverine helps young builders Continued from page 16 The Academy of Design & Construction now has more than 100 students, the majority being sophomores and freshmen. “This program is building,” said Mark Frost, principal of Innovation Central. “It’s getting bigger and better.” The Innovation Central academies pair with area businesses and colleges, including Spectrum Health and Davenport University, to help students further their education and become career-ready more quickly. Some students graduate with certifications that will help them find better-paying jobs to help pay their way through college. Frost said the Academy of Design & Construction helps students get ready for college, but it also helps them specialize in careers that don’t necessarily need further schooling. “The school allows any student to get into a trade immediately,” he said. “That is what some of our advisors advocate; they advocate they get right into the work force. There’s a need right now as the housing market comes back. “There’s a need to get these kids to fill the jobs, and they have
the skills to do it.” The underclassmen in the program take courses to learn both the design and building portions of construction projects. As they near their junior years, the students are allowed to branch off and specialize in their area of choice. During the morning, students are in traditional classrooms and learn in a setting not all that different from a conventional high school. Specialized courses include blueprint reading, construction drawings, building laws, interior design, building and methods of construction and more. In the afternoon, the students head off to work two hours at a Habitat for Humanity house. The students generally work from lateSeptember to the end of the school year on a project. This year’s house is next to last year’s in the Black Hills neighborhood of Grand Rapids. The current house is a renovation but previous years have seen the students help build a house from the ground up. Throughout the project, the students work with teachers and professionals from construction and architecture firms from the area. Paired with the Design & Con-
struction Academy, among others, are Rockford Construction, Triangle Associates, Progressive AE, The Christman Co., Michigan State University, Ferris State University and Grand Rapids Community College. Each student is assigned a professional mentor at the beginning of his or her freshman year and stays with that mentor throughout high school. “(The mentors) come in and meet monthly,” Frost said. “The kids really value it, and it provides a lot of special education. They bring expertise; they bring the know-how and the realistic view of the workplace.” Frost said the mentorship program has been so successful in its short history that the school system is implementing it throughout its innovation programs. The Design & Construction program brings several outcomes one doesn’t normally see in high schools, said Wolverine’s Hill. “It’s outstanding, a great program. To have something (like constructing a house) come out of it is a whole different thing,” she said. “Wolverine brand is a work boot. It’s a great marriage, and we don’t take it lightly. Community brings harmony.”
Father-son form architectural firm Continued from page 16
EIKENHOU T ROOFING - SIDING - WINDOWS DECKING - DOORS
wanted to return here to use his talents in the place he grew up calling home and raise his family in Grand Rapids, ranked by Forbes as the best city in America in which to raise a family. “I feel like a lot of what I learned (in Boston) — the high value people place in their communities and their built environment — those ideas and approaches we took at Maryann Thompson is something that could contribute to the West Michigan architectural approach.
And it was something I was seeing as a void in the market,” he said. “And I’ve got to get in-state tuition for my girls to go to the (University of Michigan). The public schools here are excellent, as is the cost of living. … I really love the West Michigan community.” The similarities in the men’s lifecycles are striking. Both were born in Traverse City, both studied architecture at U-M, both moved out of Michigan before returning to raise a family in Forest Hills, and now both are co-founders of the company bear-
ing their name. It’s a shared experience that has drawn them closer together as partners and as family, they said. “We’re very close, and also we have a good working relationship, but we were both a little worried that it might not work on a personal level,” Thomas said. “(You have to) find a way to separate the personal and professional, keep them in separate buckets. We always want to be able to have Thanksgiving dinner together, whatever it takes. That’s what’s most important.”
C.D. Barnes marks 60 years Continued from page 17
S
YEAR
120
Serving the building community since 1894 www.eikenhout.com
Smith became treasurer. Though Carter remains a trustee, he sold his shares in the company in 2009, some to the current owner, Todd Oosting, and some to a new partner, Dale Kraker. 2012 brought more changes for C.D. Barnes Associates. As the company pursued markets outside of Michigan, senior management determined the term “associates” led some people to believe they were attorneys or accountants, not commercial construction representatives. That resulted in the firm’s current name: C.D. Barnes Construction. The company’s services include construction management, design/build and general contracting services. It specializes in the construction of theaters, child care facilities, restaurants, retail centers, dental practices, senior living facilities and industrial spaces. West Michigan clients include Celebration! Cinema and Uccello’s Ristorante, as well as Milestones, Lighthouse, Appletree and Goddard child care facilities. Additional clients are Elite Baseball and Softball Training, Robinson Dental, OsborneKlein, Eastown Veterinary Clinic, Notions Marketing, the LaCati Group — and
many others. Nationally, clients include corporations such as Walmart, ALDI, Sears, Art Van, Alltel, Jimmy John’s, Culver’s, Houlihan’s, Coca-Cola, PepsiCo, FedEx, the U.S. Postal Service and Cummins Bridgeway.
see where their talents take them,” he said. Signs that the Great Recession is in the past also are visible, Oosting added. “Our industry is coming back, and people are getting excited about the construction industry,”
“Right now we’re grooming the next generation of leadership. We like to promote within rather than hire a bunch of people from outside.”
Todd Oosting
Oosting said he is not content to look in the rearview mirror of the company’s history. “Right now we’re grooming the next generation of leadership,” he said. “We like to promote within rather than hire a bunch of people from outside. We cross-train all our people, so a carpenter can work their way up to being a site superintendent, then project management and estimating. We’ll bring in guys who’ve been in the field for a long time and bring them into the office and cross-train them in estimating and marketing. We just
Oosting said. “But you’re only as good as your players. We’ve got such a good reputation with our niches that we’ve built for years. We’ll continue to give our clients good service — and that’s you how survive in this business.”
HEEREN COMPANIES
FIRSTCOMPANIES.COM
Your space, our business CONSTRUCTION | REAL ESTATE | MANAGEMENT 4380 BROCKTON DR. SE, SUITE 1 P: 616.698.5000
GRAND RAPIDS, MICHIGAN 49512 F: 616.698.0900
Commercial Quarterly 20 Grand Rapids Business Journal February 3, 2014
Top Area General Contractors
Pioneering GVSU
(Ranked by 2013 West michigan revenue)
Top W. Mich. Executive
2013 2012 W. Mich. Revenue
No. Of W. Mich. Employees
New/ Rehabbed Square Footage In 2013
Type Of Services Offered
Major Building Projects In Progress
Construction management/general contracting, trades, preconstruction, design/build, development, BIM, facility assessments, planning
Meijer Corporate Office; Aquinas College Student Housing and Alksnis Athletic Facility, Amway Grand Plaza Hotel Tower renovation, Ferris Coffee & Nut renovation
1
Rockford Construction 601 First Street NW, Grand Rapids 49504 p (616) 285-6933 f 285-8001 rockfordconstruction.com
Mike VanGessel
$325.90M $197.00M
230
DND DND
2
Pioneer Construction 550 Kirtland St. SW, Grand Rapids 49507 p (616) 247-6966 f 247-0186 pioneerinc.com
Tim Schowalter
$185.00M $120.00M
200
450,000 650,000
3
Wolverine Building Group 4045 Barden St. SE, Grand Rapids 49512 p (616) 949-3360 f 949-6211 wolvgroup.com
Richard VanderZyden Michael Kelly
$165.00M $135.00M
117
DND DND
4
Owen-Ames-Kimball Co. 300 Ionia Ave. NW, Grand Rapids 49503 p (616) 456-1521 f 458-0770 owen-ames-kimball.com
Frank Stanek Bill Schoonveld
$150.00M $150.00M
DND
DND DND
Construction management, general Frederik Meijer Gardens Japanese Gardens, Hope contracting, design/build, general trades, College Jack H. Miller Center for Musical Arts, West facilities planning Michigan Sports Commission Art Van Sports Complex, John Ball Zoo Crawford Amur Tiger Exhibit, Grandville Public Schools
5
The Christman Co. 634 Front Ave. NW, Suite 500, Grand Rapids 49504-5355 p (616) 454-4454 f 454-1795 christmanco.com
Daniel LaMore
$120.00M $101.00M
35
DND DND
Construction management, general Cornerstone University - Chapel and Media Studies contracting, design/build, real estate and Matthews Auditorium Renovation; Mary Free development, facilities planning/analysis Bed Rehabilitation Hospital Expansion; Mercy Health Saint Mary’s - Surgery Renovation; Interurban Transit Partnership - Silver Line Bus Rapid Transit (BRT) System
6
Triangle Associates Inc. 3769 Three Mile Road NW, Grand Rapids 49534 p (616) 453-3950 f 453-5952 triangle-inc.com
Craig Datema Mitchell Watt
$116.50M $95.00M
118
665,147 931,962
Construction management, design/build, Hudsonville Public Schools, Grand Valley State general contracting, facilities planning/ University Robert Kleiner Commons, Walmart analysis, sustainable construction Cascade, Bucktown Retail Center, 40 Pearl renovations
Construction Management, General Creston Plaza Housing Redevelopment, GVSU Contracting, Design-Build, Structural Steel Marketplace, GVSU Biology Labs Erection, Metal Buildings
General contracting, construction management, design/build, sustainable construction, historic renovation
Fifth Third Ballpark Re-Build, 240 Ionia Apartments, 834 Lake Drive Renovations, GVSU James H. Zumberge Expansion and Renovation
7
Dan Vos Construction Co. 6160 E. Fulton St., Ada 49301 p (616) 676-9169 f 676-2435 danvosconstruction.com
Gary Vos Dan Vos Gordon De Young
$90.00M $88.00M
85
723,623 703,992
Design build, general contracting, construction management, steel services, facility maintenance, sustainable construction
8
Elzinga & Volkers Inc. 86 East 6th St., Holland 49423 p (616) 392-2383 f 392-3752 elzinga-volkers.com
Michael Novakoski
$76.00M $55.50M
127
450,000 750,000
Construction management, design-build, Spectrum Health Integrated Care Campus, Hillshire general trades, firestopping, professional Brands Plant Expansion, Mercy Health Saint Mary's services Cafeteria, Holland Hospital Medical Office Building
9
Erhardt Construction 6060 E. Fulton St., Ada 49301 p (616) 676-1222 f 676-1676 erhardtcc.com
Joseph Erhardt Benjamin Wickstrom
$53.00M $26.00M
53
800,000 200,000
General contractor, construction manager Amway Corporation Nutrilite Spaulding Plant, Grand design-build, facility solutions Valley State University AuSable Hall, St. Mary Magdalen Parish, Veterans Affairs Outpatient Clinic, Cascade Fellowship Christian Reformed Church
10
A.J. Veneklasen Inc. 5000 Kendrick St. SE, Grand Rapids 49512 p (616) 957-3731 f 957-4085 ajvinc.com
Alan Veneklasen Chris Veneklasen
$41.00M $25.58M
50
DND DND
11
CSM Group Inc. 600 Monroe Ave. NW, Grand Rapids 49503 p (616) 458-5600 f 458-6099 csmgroup.com
Todd McDonald
$39.93M $64.91M
75
DND DND
12
DeJager Construction Inc. 75 60th St. SW, Wyoming 49548 p (616) 530-0060 f 530-8619 dejagerconstruction.com
Dan DeJager
$24.70M $23.10M
26
45,000 435,000
General contracting specializing in retail DND and commercial work.
13
Beckering Construction Inc. 650 44th St. SE, Grand Rapids 49548 p (616) 532-8191 f 532-8193 beckering.com
David Beckering
$20.49M $31.30M
25
180,000 120,000
Construction management, general Battle Creek VA Building 7 / Building 39, Belding contracting, design-build, general trades Area Schools, Marshall City Hall, Barry County Central Dispatch
14
Lakewood Construction 11253 James St., Holland 49424 p (616) 392-6923 f 392-7747 lakewoodinc.com
James Stroop
$18.50M $18.50M
35
327,960 121,489
Construction management, general contracting, design/building, facility services department
Holland Hospital Joint Venture, Barnabas Ministries, Unity Christian High School, Lake Michigan Financial Corp. - The Bank of Holland: Grand Haven JMS Manufacturing
15
Orion Construction Inc. 32 Market Ave. SW, Suite 200, Grand Rapids 49503 p (616) 464-1740 f 464-1742 orionbuilt.com
Gary Postma John Boonstra John Wheeler Roger Rehkopf
$18.00M $15.21M
30
DND DND
Construction management, general contracting, design/build, development
Arena Place-GR, Grand Villages-Allendale, Grand Rapids Home for Veterans, Orthopaedic Associates of MI, Downtown Grand Rapids Inc.
16
Pinnacle Construction Group Inc. 1000 Front Ave. NW, Grand Rapids 49504 p (616) 451-0500 f 451-0860 askourclients.com
Michael Garrett
$17.80M $13.30M
20
200,000 50,000
Medical, community, & nonprofit
Goodwill, Metro Health, OAM, Hall Street Bakery, Foster Swift
17
Vander Kodde Construction Co. Inc. 441 44th St. SW, Grand Rapids 49548 p (616) 538-7470 f 538-9290 vanderkoddeconstruction.com
Tom Vander Kodde
$5.11M $5.07M
16
DND DND
General contacting, general trades, preengineered buildings
DND
Bazzani Associates 959 Wealthy St. SE, Grand Rapids 49506 p (616) 774-2002 f 774-0606 bazzani.com
Guy Bazzani Suzanne Riley Mark Steenbergen Baird Hawkins Raymond McDaniel
DND DND
4
DND DND
DND
DND
Design-build, general contracting, steel erection, rough & finish carpentry
Perrigo Holland, Puritan Theological Seminary, Gordon Food Service 50th St. Facility, Spirit of Life Lutheran Church, Coloma Frozen Foods, J. Rettenmaier USA LP, Cargill Kitchen Solutions
Pioneer Construction helped complete the construction of two major Grand Valley State University projects: the Pew Library and the L. William Seidman Center.
National O-A-K
Owen-AmesKimball has been around since 1891, and has completed projects in 39 states.
MCOY award
Dan Vos Construction was awarded the 2013-2014 Michigan Contractor of the Year award by the American Subcontractors Association of Michigan in October.
DND
New president Construction management, estimating services, master planning, pre-bond services, design/build
Kalamazoo Valley Community College Health, Focused Campus, Community Mental Health, State of Michigan Mason & Constitution Hall renovation
The Grand Rapids Business Journal list of top area general contractors, ranked by 2013 West Michigan revenue, 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 71 companies; 21 returned surveys and 18 are listed. To be considered for future lists, e-mail pevans@geminipub.com. DND = Did not disclose
In January, Orion Construction named Roger Rehkopf its president as the company seeks aggressive growth.
ListStore @ GRBJ.com
Download this list now at GRBJ.com in Excel or PDF format. The Book of Lists and other lists are also available.
1954-2014
Celebrating 60 Years
of Commercial Construction in Michigan www.cdbarnes.com
Commercial Quarterly 22 Grand Rapids Business Journal February 3, 2014
Top Area Specialty Contractors
Great work
(Ranked by 2013 west michigan revenue)
Top W. Mich. Executive
Year Established In W. Mich.
2013 2012 W. Mich. Revenue
Types Of Contracting Services Provided
No. Of W. Mich. Geographic Areas Employees Served
Major W. Mich. Projects Completed Or In Process In 2013
1
Andy J. Egan Co. Inc. 2001 Waldorf St. NW Grand Rapids 49544 p (616) 791-9952 f 791-1037 andyegan.com
Tom Jasper Andy Jasper
1919
$70.00M Mechanical contracting, fabrication, custom $44.30M sheet metal, engineering & BIM, controls & 24/7 service
309
Midwest for large construction; worldwide for fabrication
Amway Nutrilite, Consumers Energy, Perrigo, Gerber, VA Clinic, 120 Ottawa
2
Feyen Zylstra LLC 210 Front Ave. SW Grand Rapids 49504 p (616) 224-7707 f 224-7799 feyenzylstra.com
Nate Koetje Marlin Feyen Bob Zylstra
1980
$60.00M Electrical construction, electrical service, $45.00M system engineering, robotic engineering, communications, energy management systems, wireless telecommunication
185
Michigan, Southeastern US
Amway Nutrilite Facility, Wyoming VA, Nestle Gerber, 40 Pearl Renovation, Bradford White
3
Buist Electric 8650 Byron Center Ave. SW Byron Center 49315 p (616) 878-3315 f 878-3556 buistelectric.com
Steve Longstreet
1964
$56.00M Electrical construction, 24-hour service, arc $48.00M flash/electrical testing, voice/data, outdoor utility services, design/build, 3-D modeling
277
Michigan
Meijer Knapps Corner Store Remodel, Spectrum Health 5th Floor, Gordon Food Service New Freezer, Lacks Kraft Plater, Meijer Corporate Office Expansion
4
Kent Companies Inc. 130 60th St. SW Grand Rapids 49548 p (616) 534-4909 f 534-4890 kentcompanies.com
5
Quality Air Inc. 3395 Kraft Ave. SE Grand Rapids 49512 p (616) 956-0200 f 956-0955 qualityairinc.com
6
Van Dyken Mechanical, Inc. 4275 Spartan Industrial Drive Grandville 49418 p (616) 224-7030 f 224-7035 vdminc.com
7
9
Jeffrey VanderLaan
1957
$46.74M Concrete construction, lightweight $36.76M underlayments and sound control, concrete and masonry restoration, concrete polishing and staining, foundation systems, facilities services and home services
285
Midwest, Southeast 240 Ionia, SHMG ICCB, Wyoming VA and South Central U.S. Clinic, Baker Lofts, Amtrak Station and Perrigo Expansion
Tim Albers
1968
$44.50M Commercial and industrial HVAC, $52.50M engineering, fabrication and construction; 24/7 emergency service and planned maintenance; energy management services. industrial ventilation, process piping and cooling
220
Michigan
1949
$15.00M HVACR design, fabrication, installation, and $16.00M service, including support for controls, testing, balancing, and commissioning services
75
Michigan and beyond Grand Rapids Christian High School, Rockford Construction Company Corporate Headquarters, St. Mary Magdalen Church, Cornerstone Professional & Graduate Studies Building, Spectrum Health Medical Office Building
Downtown Market, GVSU Seidman Center, Gentex Corp., Mercy Health, Amway Aviation, 35 Oakes
Brigade Fire Protection 5701 Safety Dr. NE Belmont 49306 p (616) 784-1644 f 784-1140 brigadefire.com
Doug Irvine Jr. Douglas Irvine
1984
$12.00M Fire protection, automatic sprinklers $11.00M
85
MI, IN, IL, OH, CO, AL, Downtown Market, Dr. Pepper, Lacks, PA, TN, TX, SC Gordon Food Service, GRCC, Perrigo
Century FloorSpace 719 Century Ave. SW Grand Rapids 49503 p (616) 988-4524 f 235-0310 centuryfloorspace.com
Trent Schutte Eric Boender
2000
$12.00M Commercial and residential flooring sales, $10.00M commercial janitorial services, commercial floor care
210
West Michigan
Steelcase Innovation Center, Lacks Industries Plater Plant, SpectrumBlodgett Hospitality House, Metro Health IT Building, Early Advantage Day Care in Holland
Vos Glass Inc. 902 Scribner Ave. NW Grand Rapids 49504 p (616) 458-1535 f 458-4702 vosglass.com
Linda Vos-Graham
1982
$11.00M Glass, glazing, metal panels $10.00M
60
Michigan
Downtown Market, Spectrum East Beltline, Meijer Corporate Offices, Northview High School, Jenison Fine Arts Center, Mary Freebed Hospital
10
Seaman's Mechanical 2510 Oak Industrial Drive NE Grand Rapids 49505 p (616) 458-1544 f 458-0605 seamansmechanical.com
Randy Seaman
1961
$10.00M HVAC, electrical, refrigeration, plumbing, $5.50M temperature controls, design/build, engineering, industrial ventilation, process piping, service/repair, energy management, planned maintenance
40
Michigan and beyond Lacks Corp., Amway, Steelcase, General Motors, Litehouse, Founders Brewing Co.
11
HighPoint Electric 8113 Belmont Ave. NE Belmont 49306 p (616) 866-0900 f 866-2592 highpointelectric.us
Leslie Cardinal Jerry Cardinal
2005
$9.50M Electrical contracting $7.30M
56
Michigan, Ohio, Indiana, Illinois, Colorado, Texas
DND
12
Consolidated Electrical Contractors 1560 Taylor Ave. N Grand Rapids 49505 p (616) 277-2411 f (517) 484-4421 conelectric.com
David Mollitor James Weiler Dan Pohl James Weiler Brad Harmon
2001
$8.74M Full service electrical contracting; staff of $6.20M specialists in all major construction groups
71
Michigan, North Carolina, Texas, Colorado, Wyoming, Florida, Ohio
South Town Square, Freighters, Grand Village Apartments, Double Tree Inn, Hyatt Hotel
13
Fence Consultants of W. Mich. 615 11th St. NW Grand Rapids 49504 p (616) 454-1911 f 233-0422 fenceconsultants.com
Dan Hickey
1988
$6.80M Ornamental steel and aluminum, polyvinyl, $6.75M specialty, custom wood and chain link fences; wire mesh partitions, guard rail
27
West Michigan
Frederik Meijer Gardens, Meijer Knapps Corner, Amtrak, Allegan County Jail, GR Ford International Airport, Hope College Tennis Courts
14
Target Construction Inc. P.O. Box J Cedar Springs 49319 p (616) 866-7728 f 866-4269
Lewis Hayden
1982
$6.00M Sheet metal fabrication and install, $6.00M mechanical insulation
40
West and northern Michigan
GVSU Zumberge Hall, Spectrum Blodgett Kitchen Renovation, Steelcase Innovation Center, Cornerstone University Dormatory, Herkimer, Byron Center High School Renovations
15
Double O Supply & Craftsmen Inc. 4200 92nd St. SW Byron Center 49315 p (616) 878-3998 f 878-4221 DoubleO-SC.com
Michael Otis
1997
$5.13M Window & door distribution, installation and $2.00M service
32
Michigan
New Village Park, Kalamazoo, Kalamazoo Psychiatric Hospital, Kalamazoo, 205 South Division & 26 Cherry, Grand Rapids, 240 Ionia Ave, Grand Rapids, 834 Lake Drive, Grand Rapids, former Bethel Church, Byron Center Schools, Brown Elementary
16
J & L Roofing Co. 567 11th St. NW Gand Rapids 49504 p (616) 459-0840 f 459-0912 jlroofing.com
Robert Boom John Boom
1957
$5.00M Commercial and industrial roofing $6.00M
35
Western half of Michigan
Holland High School, Meijer Store South Haven, Comstock Park Public Schools, Ferris State University buildings
17
Dependable Fire Protection Inc. 13360 White Creek Ave. NE Cedar Springs 49319 p (616) 696-8000 f 696-8511 dependablefireprotection.com
Dennis Bass
1993
$3.80M Fire protection systems: design, install & $3.30M service
32
MI, IN, OH, IL, PA, WV Brookhaven Medical Care Facility, Muskegon, Meijer Store, Knapp Corners, Grand Rapids, Holland High School, Holland, Western Michigan University, Kalamazoo, Wal-Mart Store, Paw Paw, Wal-Mart Store, Wyoming
Established in 1919, Andy J. Egan Co.’s projects range from $300 to $30 million, and it was named one of the country’s top places to work last year by the National Association for Business Resources.
Available 24/7
Power outages don’t wait for business hours, so Buist Electric offers 24hour emergency service all year with more than 30 technicians.
Home protection
Although fire sprinklers are a must for most businesses, Brigade Fire Protection also offers residential services to help protect people’s homes.
Major projects
Vos Glass completed some major projects that utilize a lot of glass in 2013, including Downtown Market and Meijer Corporate Offices.
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Continued on page 24 8
The Book of Lists and other lists are also available.
PICTURE OF HEALTH MEDICAL MILE
Grand Rapids
This is more than a skyline. This is a human interchange of ideas, dreams and productivity. At Colliers International, our commercial real estate professionals help you make healthy real estate decisions in your local, national and international markets. No matter where you do business, Colliers’ expertise is your gateway to new opportunities. colliers.com Grand Rapids Holland Kalamazoo
+1 616 774 3500 +1 616 394 4500 +1 269 978 0245
Commercial Quarterly 24 Grand rapids Business Journal february 3, 2014
Top Area Specialty Contractors
Helping NASA
(Ranked by 2013 West michigan Revenue) Continued from page 22 Top W. Mich. Executive
Year Established In W. Mich.
2013 2012 W. Mich. Revenue
Types Of Contracting Services Provided
18
Technical Energy Solutions 8535 Byron Comm. Drive SW, Suite A Byron Center 49315 p (616) 583-6000 f 583-6006 techenergysolutions.com
Bart Bale
1989
$3.55M $3.42M
19
Thornapple Excavating Inc. 4190 Thornapple River Drive SE Grand Rapids 49512 p (616) 940-4766 f 940-2974
Jack Hulst
1985
$2.00M Earthwork, underground utilities, $2.50M foundations, drives and parking lots for retirement, manufacturing, medical and distribution facilities and student housing
Armor Shield 1343 Union Ave. NE Grand Rapids 49505 p (616) 245-0757 f 235-3238 armorshield.com
Patrick Kersjes
1995
Bazen Electric Co. 750 Ball Ave. NE Grand Rapids 49503 p (616) 458-7210 f 458-4741 bazenelectric.com
David Bazen
1957
DND DND
Electrical contracting, communications technology, energy management
Burgess Concrete Construction Inc. 1262 Cutting Ind. Drive Moline 49335 p (616) 877-0008 f (616) 877-0073 burgessconcrete.com
John Burgess
1984
DND DND
Doug Lectka Bernard Bouma
1903
Jeff Peerbolt
1946
D.C. Byers Co./Grand Rapids, Inc. 5946 Clay Ave. SW Grand Rapids 49548 p (616) 538-7300 f 538-1970 dcbyers.com Peerbolt's Inc. 400 E. Washington Ave. Zeeland 49464 p (616) 931-0010 f 931-0011 peerbolts.com
Controls, HVAC, air and water balancing, energy reduction, HVAC and electrical commissioning, cleanroom certification, thermal imaging
DND Industrial epoxy/quartz floor systems $750,000 installer specializing in concrete restoration/ repair, SHOTBLAST concrete preparation, production pad/floors and Aisle Epoxy systems
No. Of W. Mich. Geographic Areas Employees Served
Major W. Mich. Projects Completed Or In Process In 2013
25
Michigan, northern Indiana, Ohio, Minnesota
East Lansing HS - Phase 2, GRPS Stocking ES, Downtown Market Place, Bronson Nursing Rehab Center, Pinerest - Mulder Center, Byron Center Schools - HS & Brown ES
15
West Michigan
St. Mary Magdalen, Cascade Fellowship Church, Goodwill Store, Assisted Living Standale
10
2,000 miles
DND
DND
West Michigan
DND
Concrete foundations, floors, and site work; Concrete polishing, concrete pumping, and helical foundation support
65
West Michigan
Gordon Foods Corporate Office Campus, Davenport University Athletic Fields, Downtown Market, Grand Rapids Christian High School Renovations, St. Mary Magdalen Parish, Heeren Brothers Produce
DND DND
Masonry restoration, caulking, waterproofing, epoxy floors, green roof systems, concrete restoration, crack injection
40
West & mid-Michigan, DND northern Indiana and Ohio
DND DND
HVAC - mechanical contractor
16
West Michigan
Armor Shield has provided industrial flooring protections for businesses from kennels and factory floors to the military and NASA warehouses.
Family heat
Peerbolts Inc. has offered three generations of familyowned mechanical and HVAC heating and cooling work for more than 60 years.
DND
The Grand Rapids Business Journal list of top area specialty contractors, ranked by 2013 West Michigan revenue, 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 168 companies; 28 returned surveys and 24 are listed. To be considered for future lists, e-mail pevans@geminipub.com. DND = Did not disclose
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it’s hot out here
> CONGRATULATIONS!
When the temperatures drop, determination fires up. Our hotshots know how to drive
EARL CLEMENTS
your project schedule forward.
member of the
2013 Midwest Commercial Real Estate Hall of Fame
DIVISION:
CONCRETE CONSTRUCTION
CLIENT:
Wolverine Building Group
PROJECT:
The Residences at 200 Albert, East Lansing
SERVICES:
Nine Level Post-Tensioned Concrete Building
“From everyone here at Colliers International | West Michigan, we want to congratulate Earl on this major accomplishment. For over three-decades, Earl has helped close some of the largest retail projects in the Midwest with some of the biggest names in the retail industry. His dedication to his clients and to the industry as a whole is phenomenal. Thank you, Earl, for your hard work and congratulations again!” Duke Suwyn | President & CEO
APPROVED:
WWW.KENTCOMPANIES.COM
JOB:
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MICHIGAN | TEXAS | OHIO | CAROLINAS | Since 1957
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Change-Ups & Calendar february 3, 2014 Grand Rapids Business Journal 25
ARTS
The West Michigan Center for Arts and Technology announced the election of its 2014 board members: John Abodeely, President’s Committee on the Arts and Humanities; Lisa Freiburger, Grand Rapids Community College; and Roger Jansen, Spectrum Health.
ASSOCIATIONS
Associated Builders and Contractors Western Michigan announced the election of its board of directors: chair, Paul Lemley, Van Haren Electric; secretary/treasurer, Anita Rathbun, Triangle Associates; chair-elect, Brian Crissman, The Christman Co.; Curt Mulder, Wolverine Building Group; Ben Wickstrom, Erhardt Construction; John DeBlaay, Dan Vos Construction; and Roger Pedersen, Williams Distributing.
AWARDS
Calvin College communications arts and science professor Bill Romanowski is the recipient of the Religious Communication Association’s 2013 Book of the Year award for his work “Reforming Hollywood.” Kent County’s campaign to improve young students’ reading proficiency has been recognized as a 2013 Community Pacesetter by the Campaign for GradeLevel Reading. Grand Rapids Community College automotive technician student Javon Brown is the recipient of the DHS Achiever Award from the state Department of Human Services for overcoming significant life challenges to achieve selfsufficiency through the Michigan Works! PATH program.
BANKING
Consumers Credit Union announced its Dollars for Scholars Scholarship Program will award 20 scholarships of $1,000 and an iPad to members of the credit union who are graduating high school seniors. Details: ConsumersCU.org/ Information/DollarsForScholars.
BUSINESS SERVICES
Custer has promoted Kristi King to senior project manager.
FEB 3 World Affairs Council of Western Michigan Great Decisions 2014 Lecture Series: Topic: “The Role of the Press and National Security Leaks,” presented by Dina Temple-Raston, NPR. 6 p.m., Aquinas College PAC. Cost: $5/members; $10/nonmembers (at door). Information: worldmichigan.org. FEB 4 Michigan Business Professional Association Women and Leadership in the Workplace annual conference and awards luncheon. 8 a.m.-2 p.m., The Henry, 300 Town Center Drive, Dearborn. Cost: $90/members; $100/nonmembers. Information/registration: (888) 277-6464. FEB 5 Michigan Lawyers Alliance and MI State Council of Junior Leagues STORM (Stop Trafficking of Resident Minors) community forum meeting, with speaker Michigan Attorney General Bill Schuette. 6-7:15 p.m., L. William Seidman Center at GVSU, 50 Front Ave. (parking in Mt. Vernon lot). Refreshments available. Free. FEB 5-6 Varnum Consulting workshop “Speak Up and Be Effective – Advanced.” How to communicate with impact through oral presentation skills. Information/registration: (616) 336-7070. FEB 6 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: growbusiness.org/events.aspx. FEB 6-7 Grand Rapids Area Chamber of Commerce Institute for Healing Racism. Topic: “Facing Racism.” Davenport University, 6191 Kraft Ave. SE. Cost: $200/ nonprofit members; $300/for-profit members; additional $50 charge/nonmembers. Information/registration: (616) 771-0320 or grandrapids.org. FEB 7 Alliance For Health First Friday Forum. Topic: “The Critical Issue of Elder Abuse,” moderated by Nancy Kropiewnicki, Area Agency on Aging of West Michigan. Panelists: Chris Becker, chief assistant Kent County prosecutor; Emily Pierce, Kent County Dept. of
EmploymentGroup announced the winners of its 5 in 5 scholarship program: first place ($3,000), Gretchen Kohsmann, Kellogg Community College; second place ($1,500), Katherine Ingersoll, Grand Rapids Community College; and third place ($500), Joseph Martin, Grand Rapids Community College. IMPact Business Group has relocated its corporate headquarters in the Evergreen Office Suites, 3225 N. North Evergreen Drive NE, Suite 302, Grand Rapids.
CONSTRUCTION
Bruce Zache has joined Owen-AmesKimball Co. as project superintendent for its new downtown Kalamazoo office in the Haymarket Building, 161 E. Michigan Ave. CSM Group announced the additions of Stan Bedard, construction manager; David Dahlquist, project manager; Patti Hilden, project coordinator; Mason Mellema, intern; and John Rabbit, industrial safety manager. Owen-Ames-Kimball Co. has been hired to complete a $2.9 million renovation project at East Kentwood High School this summer. Extensively renovating the West Wing, the project includes upgrades to 12 science rooms, shop rooms, a cafeteria, and kitchen and serving area. Kingscott Associates is providing architectural services.
HEALTH
Access Health has reached its 15th anniversary. Since its launch in 1999, Access Health has provided health coverage to more than 730 businesses and 5,650 employees in Muskegon and Northern Ottawa County. Blue Care Network announced the election of board members Mary Ann Weaver, of Kent County, and Paula Manderfield, of Lansing. Holly Selden, of Oakland County, was elected to Blue Care of Michigan Inc.’s board. Jenison Psychological Services announced its 20th anniversary of providing services in the Jenison area. The
Human Services; and Beth Swagman, elder law attorney. 8:30-10 a.m., Hope Network Education Center, 775 36th St. SE. RSVP (by noon, Feb. 6): jburkett@afh. org. FEB 10 World Affairs Council of Western Michigan Great Decisions 2014 Lecture Series: Topic: “How the Three Geos (Geopolitical, Geo-Economics, Geophysical Changes) Are Rewriting the World Map,” presented by Cleo Paskal, Chatham House, London. 6 p.m., Aquinas College PAC. Cost: $5/members; $10/nonmembers (at door). Information: worldmichigan.org. FEB 11 Grand Rapids Opportunities for Women Marketing Strategies Cluster: marketing 101, Internet marketing, branding and personal selling. 6-9 p.m., GROW, 25 Sheldon Blvd. SE, Suite 210. Cost: $60-$70. Information/registration: www.growbusiness.org. FEB 11 Institute for Supply Management Greater Grand Rapids Affiliate Dinner Meeting. Topic: “The Economy,” presented by Brian Long, Grand Valley State University director of supply management research. 5 p.m., GVSU DeVos Center, 401 W. Fulton St. Cost: $35/nonmembers. RSVP by 4 p.m., Feb 6. Information/registration: ISMGGR@aol. com; credit card, ismggr.org. FEB 11 Michigan West Coast Chamber of Commerce Early Bird Breakfast. 7:308:30 a.m., Haworth Inn & Conference Center, 225 College Ave., Holland. Cost: $15/members; $25/nonmembers. Information/registration: westcoastcham ber.org. FEB 12 APICS Grand Rapids Chapter Dinner & Plant Tour. 5 p.m., Royal Technologies, 3765 Quincy Street, Hudsonville. Cost: $28/members; $35/nonmembers; $15/ students. Information/registration: (616) 490-8608, or admin@apics-gr.org. FEB 12 Grand Rapids Community College Diversity Lecture Series. Topic: “Youth Revolt: The Future of the Middle East,” presented by Reza Aslan, author/ commentator. 7 p.m., Fountain Street Church, 24 Fountain St. NE. Cost: free. Information/registration: (616) 234-3390.
practice has expanded its office by 1,750 square feet, adding an additional waiting area, offices and therapy rooms.
LEGAL
Mika Meyers Beckett & Jones PLC announced the election of its 2014 Management Committee: chair, William A. Horn, and Douglas A. Donnell and Benjamin A. Zainea. Nancy Hillary has joined Ada’s West Michigan Estate Planning Center as of counsel. Smith Haughey announced the addition of Stacy M. Kramer to its Grand Rapids office. She will work with the medical malpractice team.
MANUFACTURING
Kentwood Office Furniture has purchased work surface manufacturer Brys Industries, 4450 36th St. SE, a full-service supplier of engineered wood products and components. Perrigo announced Isaiah Dahlman has been hired as a business development analyst for the consumer healthcare team in Allegan. Dahlman is responsible for discovering areas of future growth for Perrigo’s over-the-counter pipeline.
NONPROFITS
Mike Meyers Beckett & Jones associate Scott A. Hughes has been elected vice president of Camp Blodgett’s board of directors.
REAL ESTATE
Diane Griffin was selected for membership in The Fellowship of Realty Professionals, an Hughes organization of residential real estate sales professionals. Membership is awarded on the basis of a lifetime of highly successful housing sales and recommendations of their peers in the industry. Keller Williams Grand Rapids North
FEB 12 Inforum’s Under the Dome: An Evening with Michigan’s Female Leaders. 3:155:30 p.m., State Capitol Building, 115 W. Allegan, Lansing. Cost: $35/members; $50/nonmembers. Information/registration: inforummichigan.org. FEB 12 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. FEB 13 Grand Rapids Area Chamber of Commerce Business Exchange Luncheon. 11:30 a.m.-1:30 p.m., Crowne Plaza Hotel, 5700 28th St. SE. Cost: $20/ members; $25/members after 5 p.m. Feb. 7; $25/nonmembers. Information/registration: (616) 771-0341 or grandrapids.org/ home. FEB 13 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: growbusiness.org/events.aspx. FEB 13 Michigan West Coast Chamber of Commerce Employer Internship Training Session. 8:30-10:30 a.m., Davenport University, 643 S. Waverly Road, Holland. Free. Information/registration: westcoast chamber.org. FEB 13 NALS of West Michigan Lunch ‘N Learn, with Doug DeVries deputy emergency management director for Ionia County. 12:05-12:55 p.m., University Club, 10th floor, Fifth Third Center, 111 Lyon St. NW. Cost: $16.50 members; $18.50/nonmembers. Information/registration: (616) 752-2272, or ajeltema@wnj.com. FEB 17 Michigan West Coast Chamber of Commerce Government Affairs Breakfast. 7:30-8:30 a.m., Alpenrose Restaurant, 4 E. 8th St., Holland. Cost: $15/members; $25/nonmembers. Registration: westcoastchamber.org. FEB 17 World Affairs Council of Western Michigan Great Decisions 2014: Armchair Discussion with Dawit
Kendall appoints community engagement director Kendall College of Art and Design of Ferris State University has named Katie M. Moore its director of community engagement, a newly created position. Moore will work to identify, facilitate and nurture collaborative community partnerships that create shared value and increase the impact of KCAD in West Michigan and beyond. She’ll also develop a proposal for the creation of a dedicated space on campus that will function as a resource hub for the college’s community partnership efforts. marked its one-year anniversary with the announcement it sold 350 units and had more than $82 million in sales in the first year of operations.
PUBLIC SERVICE
The Grand Rapids Police Department announced Recruit Class 13-01 has successfully completed their in-house training and have taken their Oath of Office. New officers sworn in: Don Allen, Doug Anstey, Eric Gizzi, Katie Laurie, Ryan Manser, Scott Sale, Mike Sowle, Stacey Streeter, Ben Umanos and Chad VanDam. It is the first recruit class in almost five years.
RETAIL
Gazelle Sports has been named for eight years in a row to the 50 Best Running Stores in America list by Competitor magazine and Running Insight.
complement its Ambassador Program. Student ambassadors will be recognized as marketing representatives of the summer and winter games and will promote events in their respective areas. Worldplay Sport in Holland has launched a Buy one – Give One program to schools and nonprofits in need. Black River Public Schools of Holland is one of the first organizations to participate; its purchase was matched with equipment given to the Boys and Girls Club of Greater Holland.
TECHNOLOGY
C/D/H announced the addition of Susan Cotts as partner. She is the company’s first female partner and only the sixth person to be named partner in the history of the 23-year-old technology consulting firm.
SERVICES
Joe Beutler has been named director of ASTI Environmental’s Western Great Lakes office, 660 Cascade West Parkway, Suite 210. He is responsible for directing ASTI’s efforts from Traverse City to Chicago and exceeding the expectations of commercial, industrial and governmental clients.
SPORTS
Meijer State Games of Michigan announced it is introducing a High School Student Ambassador Program to
Giorgis, Foundation for Defense of Democracies, Washington, D.C. Topic: “Out of Africa: How Food Insecurity and Water Shortages There Affect Us Here,” moderated by Dr. Deborah Steketee, Aquinas College. 6 p.m., Aquinas College PAC. Cost: $5/members; $10/nonmembers (at door). Information: worldmichigan.org. FEB 18 FranNet Business Ownership Options. 9 a.m., Michigan Works, 1560 Leonard St. NE. Information/registration: (616) 8911374 or frannet.com/bbetser. FEB 18 Grand Rapids Area Chamber of Commerce Business Matters Series. Topic: “Building a High Performing Team,” presented by Rob Elliott, principal, Pondera Advisors. 7:30-9 a.m., Celebration Cinema North. Cost: $18/ members, early registration; $25/members, late registration, and nonmembers (includes breakfast). Information/registration: (616) 771-0303. FEB 20 The Center for Character Ethics forum. Topic: “Exploring the Interaction of Management and Leadership.” 11 a.m.-1 p.m., GVSU, Jenison Center for Philanthropy. Cost: $595/first participant; $250 additional participants from same company. Information/registration: (616) 234-0568 or lynne@westernmichigan. bbb.org. FEB 21 Partners For A Racism-Free Community Forum 2014. Focus: Economic opportunity and empowerment, presented by Dr. Maggie Anderson and Bing Goei. 8 a.m.-4 p.m., GVSU Eberhard Center, 401 W. Fulton St. Cost: $55.Registration: prfc-gr.org. FEB 21 Van Andel Global Trade Center program. Topic: “Basics of Importing.” 8:30 a.m.-3:30 p.m., Holiday Inn Downtown, 310 Pearl St. NW. Cost: $175/members; $300/nonmembers. Information/registration: gvsu.edu/vagtc/training-events.htm. FEB 24 Grand Rapids Area Chamber of Commerce Breakfast with Legislators. Connect with elected representatives and network with other members. 7:309 a.m., The Rapid, 300 Ellsworth Ave. SW. Cost: $15/members, $20/nonmembers or late registration (after 5 p.m. Feb. 19). Information/registration: (616) 771-0303.
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.
FEB 24 World Affairs Council of Western Michigan Great Decisions 2014: Armchair Discussion with Dr. Yael Aronoff, chair of Israel Studies, James Madison College, MSU. Topic: “U.S.Israeli Relations in a Changing Middle East,” moderated by Dr. Michael DeVivo, GRCC. 6 p.m., Aquinas College PAC. Cost: $5/members; $10/nonmembers (at door). Information: worldmichigan.org. FEB 25 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. FEB 26 Great Lakes Paralegal Association Network Dinner, with Eaton County Circuit Court Judge Janice K. Cunningham. 5:30 p.m., Spartan Hall of Fame, 1601 W. Lake Lansing Road, East Lansing. Cost: $30/members and students; $45/nonmembers. Registration: Elisabeth. mowen@greenstonefcs.com. FEB 26 Performance Partners Consulting workshop. Topic: “Dynamic Business Presentation Skills,” presented by Wayne Klausing. 9 a.m.-noon, 2025 E. Fulton St. Cost: $59. Information/registration: (616) 874-2071. Meetings & Conventions Information: Janet Korn, (616) 2333545 or jkorn@experiencegrandrapids. org. FEB 5-7 Michigan Association of Chiefs of Police 2014 Mid-Winter Training Conference. Amway Grand Plaza Hotel. 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 26 Grand rapids Business Journal february 3, 2014
MICHIGAN RETAIL SALES
William Strauss
Storms, competition wreak havoc on retail sales in Michigan
L
ANSING — Hurt by damaging winter storms and outdated government policies that favor out-of-state, online companies, Michigan’s retail industry suffered a poor holiday shopping season, according to the Michigan Retailers Association. Retailers posted only a 0.1 percent average increase over last holiday season, according to the Michigan Retail Index, a joint project of MRA and the Federal Reserve Bank of Chicago. “Retailers were hit by arctic air, snow and ice storms that knocked out power across the state during the critical final days of the holiday shopping season, when stores should have been full,” said James P. Hallan, Michigan Retailers Association president and CEO. “At the same time, they continued to be hurt by badly out-of-date laws that give out-of-state online merchants a price advantage over our Michigan companies that invest in Michigan, employ Michigan workers, pay taxes in Michigan and support their Michigan
communities. “Lawmakers cannot let another Christmas go by without enacting ‘Main Street Fairness’ legislation to enable Michigan businesses to compete on an equal footing with out-of-state ‘vapor’ retailers and put an end to government picking winners and losers on the retail playing field,” Hallan said. The latest Michigan Retail Index showed 38 percent of retailers increased sales during the holiday season, and 41 percent experienced declines; 21 percent reported flat sales. Retailers went into the already compressed shopping season with cautious optimism, their forecasts averaging a modest 1.3 percent gain over last year. The results, however, were even weaker. December sales were slightly better than November’s. The Michigan Retail Index found that 39 percent of retailers increased sales over the same month last year, while 44 percent recorded declines and 17 percent saw no change. The results create a sea-
MORTGAGES
$284,710 tOdk Ridges LLc, the bank Of holland, cascade twp., 17-6-10, $650,000 JOnicLa hOLdings LLc, the bank Of holland, cascade twp., 17-6-10, $650,000 heeRinga, susan k. et al, Fifth third mortgage, condo-Woods at carlisle crossing, $201,750 eRicksOn, stephen k. et al, Lake michigan credit union, condo-Waterford Woods heights site condominium, $400,000 cOOk, christopher W. et al, macatawa bank, east grand Rapids, 33-7-11, $396,000 asPen-aLPine PROJect LLc, bank Of
Selected mortgages filed with Kent County Register of Deeds vandam, Raymond h. et al, mercantile bank Of michigan, maplevalley gardens, Lot 5, $233,000 FRy, elizabeth et al, evolve bank & trust, condo-Flowers crossing, $357,950 LaW buiLding LLc, First community bank, kent Plat, village Lot 140, $200,000 duttOn miLL viLLage LLc, bank Of america, gaines twp., 2-5-11, $724,383 cLaRk, dennis a. et al, diamond Residential mortgage corp., condo-saddle Ridge,
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Kent County Department of Aeronautics Aviation Activity Report
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 Cargo Activity Mail Enplaned Mail Deplaned Mail Mail Totals Freight Enplaned Freight Deplaned Freight Freight Totals Cargo Totals
12.2013
12.2012
% Change
01.2013 12.2013
01.2012 12.2012
% Change
93,508 91,398 184,906
81,367 81,449 162,816
14.92% 12.22% 13.57%
1,124,969 1,113,010 2,237,979
1,069,795 1,065,161 2,134,956
5.16% 4.49% 4.183%
1,398 1,987 6
1,200 2,247 117
16.50% -11.57% -94.87%
15,661 28,130 727
15,591 28,631 2,349
0.45% -1.75% -69.05%
1,347 384 1,731 5,122
1,876 688 2,564 6,128
-28.20% -44.19% -32.49% -16.42%
24,105 7,375 31,480 75,998
27,509 11,226 38,735 85,306
-12.37% -34.30% -18.73% -10.91%
0 0 0
0 0 0
0.00% 0.00% -100.0%
2,060 2,078 4,138
5,436 5,429 10,865
-62.10% -61.72% -61.91%
3,504,608 3,409,486 6,914,094 6,914,094
3,518,813 3,762,686 7,281,499 7,281,499
-0.40% -9.39% -5.05% -5.05%
42,406,184 37,990,043 80,396,227 80,400,365
Johnson Controls Inc. 12-Month Stock Activity
46 40 34 28
J 13
F 13 M 13 A 13 M 13
J 13
J 13
A 13
$0.19 dividend paid in March, June and September. $0.22 dividend paid in December.
S 13 O 13
N 13 D 13 J 14
4.24% -6.29% -1.02% -1.02%
sonally adjusted performance index of 50.5, up from 46.7 in November. The 100-point index gauges the performance of the state’s overall retail industry, based on monthly surveys conducted by the Michigan Retailers Association and the Federal Reserve.
Index values above 50 generally indicate positive activity; the higher the number, the stronger the activity. Looking forward, 42 percent of retailers expect sales during January through March to increase over the same period last year, while 25 percent project a decrease and 33
percent no change. That puts the seasonally adjusted outlook index at 63.3, up from 58.4 in November.
america, alpine twp., 32-8-12, $724,383 JOhnstOn, Ronald e. et al, united bank mortgage corp., condo-village West at Railside, $235,000 FOsteR, valerie et al, Fifth third mortgage co., condo-Winterbrook, $266,342 stReich, dustin et al, Lake michigan credit union, cannon twp., 22-8-10, $269,000 gRiFFith, thomas F. et al, Ross mortgage corp., condo-cannon hills condominiums, $220,800 PieRce, brett c. et al, huntington national bank, brookshire estates, Lot 12, $201,350 aheaRne, andrew et al, Fifth third mortgagemi, LLc, Providence Lake no. 3, Lot 67, $235,000 cOudRiet, michael et al, Ross mortgage corp., bella vista shores no. 12, Lot 487, $217,979 kaLRa, kaushal et al, Lake michigan credit union, condo-boulder creek site condominiums, $432,250 byma PROPeRty cO. LLc, choiceOne bank, sand Lake, $262,500 cRystaL FLash LP OF michigan, mercantile bank Of michigan, grand Rapids, 13-7-12, $977,500 mckendRick, matthew et al, associated bank, ada twp., 19-7-10, $450,000 WiLLiams, Jason et al, grand River bank, the vineyard, Lot 28, $220,000 Fuchs, Justin et al, Pnc mortgage, goodwood Plat, Lot 30, $210,600 mccLung, debra a. et al, Founders bank & trust, the vineyard, Lot 11, $219,900 bOLuyt, William J. Jr. et al, united states department Of agriculture, tyrone twp., 27-10-12, $300,000 diaZ, amador Jr. et al, Fifth third mortgage, carlisle shores no. 2, Lot 56, $249,897 LamaL investments LLc, the bank Of holland, Rockford industrial Park, Lot 19, $190,000 smith, austin R. et al, united bank mortgage corp., Providence Lake, Lot 38, $380,000 WaRneR, matthew J. et al, Fifth third mortgage, Ottawa hills no. 2, Lot 363, $226,200 cRaWFORd, Richard a. et al, comerica bank,
cannon twp., 10-8-10, $250,000 bLack, craig a. et al, chemical bank, buttrick acres, Lot 15, $268,000 mcWiLLiams, carter et al, Lake michigan credit union, condo-anderson Woods, $416,200 haskins, taylor P. et al, independent bank, condo-Wabasis shores condominiums, $236,400 RObeRtsOn, William et al, choiceOne bank, condo-saddle Ridge, $236,823 bensOn, William iii et al, Lake michigan credit union, condo-River house at bridgewater Place, $360,000 asPen-byROn PROJect LLc, bank Of america, byron twp., 21-5-12, $690,616 vaughan, mark d. et al, bank Of america, horse shoe Plat at murray Lake, Lot 12, $265,800 Lance, Randy et al, grand River bank, condocherry view estates, $388,592 bLOssey, david et al, huron valley Financial, condo-bowen Lake village, $213,750 Luke, Ronald J. Jr. et al, Primelending, Wildflower Ridge no. 4, Lot 117, $202,000 Jenkins, Jason et al, hastings city bank, harrison’s 3rd add., Lot 11, $184,000 WaLchak, margaret e.b. et al, ark-La-tx Financial services, meyering Lake drive est. sub., Lot 55, $380,923 LedOuX, Luke et al, Lake michigan credit union, heritage Park Of Rockford no. 2, Lot 111, $266,000 cOvingtOn, chris a. et al, Fifth third mortgage, condo-thornapple estates, $356,250 cbk deveLOPment LLc, huntington national bank, Planters Row no. 6, Lot 192, $820,000 tuRneR, nicholas et al, mortgage 1, cannon twp., 20-8-10, $201,600 bOveRhOF buiLdeRs inc., chemical bank, Planters Row no. 6, Lot 200, $210,000 bOveRhOF buiLdeRs inc., chemical bank, Planters Row no. 6, Lot 198, $225,000 bOveRhOF buiLdeRs inc., chemical bank, Planters Row no. 6, Lot 203, $213,750 simPsOn, grace g. trust et al, huntington national bank, meyering Lake drive est.
sub., Lot 101, $300,000 custeR, todd et al, huntington national bank, Ravenswood Plat, Lot 307, $280,500 yOdeR, kevin michael et al, chemical bank, cutcheon & underwood add., Lot 141, $300,000 WeaveR, curtis R. by POa et al, chemical bank, ada twp., 27-7-10, $449,000 tuLLy, stephanie L. et al, independent bank, Raymond Park add., Lot 11, $203,000 gaRZa, Jeffrey et al, Founders bank & trust, condo-cielo condominium, $558,000 tatman, michael Robert et al, united Wholesale mortgage, beard Farm no. 3, Lot 46, $337,500 bibbee, nicole et al, Lake michigan credit union, grand valley estates, Lot 10, $375,000 gRaceWiL cOuntRy cLub inc., Wilson, alpine twp., 33-8-12, $976,866 bkL deveLOPment LLc, mercantile bank Of michigan, alpine twp., 13-8-12, $900,000
Featured West Michigan Stock 52
40,680,778 40,540,711 81,221,489 81,232,354
Point Gainers & Losers
% Gainers & Losers
Flagstar Bancorp Inc. ........................ +.55
Flagstar Bancorp Inc. ......................+2.7%
Whirlpool Corp. ..................................-9.35
Spartan Motors Inc. ......................-12.5%
Johnson Controls Inc. .....................-5.25
Johnson Controls Inc. ...................-10.2%
Comerica Inc. .......................................-3.48
Mercantile Bank Corp. ................... -8.8%
Perrigo Co. .............................................-3.39
Huntington Bancshares Inc. ........ -7.0%
Kellogg Co. ........................................... -2.64
Comerica Inc. ......................................-7.0%
William Strauss is senior economist and economic advisor with the Federal Reserve Bank of Chicago. He can be reached at (312) 322-8151.
STATE TAX LIENS
beat gOes On, $32,615.36 intec cO. inc. #84, $39,524.44 baiLeys baits & tackLe inc., $7,874.34 aLPha Omega ventuRes inc., $4,191.45 dRy Run inc., $7,050.57 michLaWn seRvices inc., $2,840.71 keyWORth systems, $4,124.73 cWade investments inc., $9,731
BANKRUPTCY
13-09715 – buRkeRt, Paul J., 5280 ivanrest sW, grandville, vincent e. carlson (ch. 7) 13-09727 – WOmbLe, John t. & Julie c., 23604 kenowa, kent city, vincent e. carlson (ch. 7) 14-00001 – hOye, gary a. & Jeanne e., 2728 Fuller ne, christopher a. hogan (ch. 7) 14-00005 – maRshaLL, melissa a., 12101 Russell Way court ne, michael m. malinowski (ch. 7) 14-00023 – hOtZLandeR, Jason d., 8912 18 mile, cedar springs, Jeremy shephard (ch. 7) 14-00024 – dennaRd, antoine d., 2450 36th sW, Wyoming, nicholas a. Reyna (ch. 7) 14-00026 – mORROW, Patrick & elizabeth, 2208 negaunee se, steven m. bylenga (ch. 7) 14-00029 – OLsOn, Rhonda R., 164 Willowbrook se, kentwood, david c. andersen (ch. 7) 14-00033 – gROOm, angela J., 5041 Red River sW, grandville, Jeremy shephard (ch. 7) 14-00049 – hatFieLd, Paul L. & Pamela J., 1261 north ne, christian g. krupp ii (ch. 7) 14-00055 – baZan, Wayne b. & alice J., 4056 Omaha sW, grandville, martin L. Rogalski (ch. 7) 14-00057 – austin, christopher m., 4058 40th sW, grandville, amy m. szilagyi (ch. 7) 14-00059 – WOOdFiLL, todd m. & holly a., 6641 Woodville court, alto, James a. siver (ch. 7)
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 February 3, 2014 Grand Rapids Business Journal 27
Local bankers won’t comment, but the credit union does Horse power.
B
ankers across the nation were mighty peeved Jan. 22 when the National Retail Federation, responding to data breaches involving credit cards used at Target and Neiman Marcus, told Congress “the financial industry also has a critical role to play in making sure their cards are secure.” The Independent Community Bankers of America responded the same day with a statement expressing “shock and outrage” at the NRF for “hurling false allegations blaming the banking industry.” The NRF said “the safest cards are encrypted with PIN and chip technology, which is widely used in Europe.” Most cards in the U.S. are issued with signature and magnetic strips, making customer information vulnerable, according to the NRF. “Hackers are using 21st century technology to take advantage of 20th century cards.” ICBA honcho Camden R. Fine said, “Retailers and their processors — not banks — are responsible for the systems in their stores that process payment cards. ICBA hopes that the massive retail security breaches … will spur retailers to adopt security solutions going forward.” Community banks have “worked aggressively” to protect customers following the recent security breaches, said the ICBA statement, and they’ve been “informing customers about com-
Business Journal Staff
munity banks’ multiple layers of security protection, monitoring customer accounts for fraudulent activity, reissuing cards to customers as appropriate and educating customers on how to avoid fraud.” Sandy Jelinski, president/CEO of Lake Michigan Credit Union, one of the largest CUs in Michigan, said LMCU is “committed to staying current with the most sophisticated and secure technology available to help protect the financial information of our card holders. As part of this commitment, a conversion from magnetic stripe signature and PIN-based card to a chip-based card utilizing EMV standards has been part of our ongoing security initiative.” According to PCMag.com, EMV is a joint effort by Europay, MasterCard and Visa to enhance security by adding a smart chip to credit cards, requiring the user to enter a PIN. But PCMag noted that according to security firm Easy Solutions, not even EMV would have helped in the Target case because the malware that hit Target stole account information inside pointof-sale devices, where data is not encrypted. “The main problem does not lie with the financial institutions,” said Jelinski. “The vast majority of national and local merchants have not yet converted their hardware systems to ones that are able to process and accommodate the usage of EMV cards.” She agreed with the ICBA that
“the retailers need to be held accountable for the massive retail security breach. This Target breach is costing the credit union industry, at last count, more than $30 million.” LMCU has replaced numerous cards, not because of fraud “but out of our cardholders’ fear,” said Jelinski. “This is not our doing, but we have the expense.” The Business Journal also asked Fifth Third Bank and Huntington Bank for comment on the NRF accusation, but both organizations declined. Hunka hunka burnin’ love Who would have thought that a man whose personal mantra more than 25 years ago was “I love living and I live for loving” would become an award-winning member of the West Michigan advertising community? Certainly not the folks at the American Advertising Federation West Michigan. Yet, when the Silver Medal is handed out at this year’s Addy Awards, none other than Gregg Palazzolo, principal of Palazzolo Design, will be on the receiving end. The Silver Award winner, it seems, is always feted with a short video highlighting his or her career. Buried deep in this year’s winner’s career (February 1987, to be exact) is a listing in sister publication Grand Rapids Magazine of “The Hunks: GR’s Top 10.” Our favorite quote in the story
revolved around Palazzolo’s philosophy regarding what makes a mate complete. “Nobody’s perfect and I think you need somebody to bounce feelings off of. They’re either Teflon or Velcro, and at least, to me, if you just throw (your feelings) out there with nobody to stick them on or let them slip off of (you’re not complete).” Palazzolo just might want to view a personal screening of that video before the public showing. Revved up Dematic, a global manufacturer of material handling and logistics systems for factory, warehouse and distribution centers, will sponsor Helen DeVos Children’s Hospital at the Michigan International Auto Show at DeVos Place. Dematic is a $6,000 Emerald Sponsor for the hospital at the Auto Show Charity Spectacular, made possible by the Grand Rapids New Car Dealers Association. The Charity Spectacular is a preview of the show Feb. 5, while the show itself runs from Feb. 6-9. Dematic’s donation to the children’s hospital will support programs and services for the hospital’s patients and families. “The DeVos Children’s Hospital brings necessary care to Grand Rapids and the country, including many of the places where our employees live and work,” said John Baysore, president/CEO, Dematic North America. “As a father of six, I understand that parents want the best health care for their children and believe this sponsorship advances research and critical care options for families here in Grand Rapids.” Penny thoughts Meijer is offering its younger customers a chance for a co-starring role in an upcoming television commercial — at the cost of one cent. The commercial is scheduled to debut across the Grand Rapids-
based retailer’s five-state footprint in 2014, and will feature images of children riding its iconic penny horse, Sandy, over several generations. Meijer is asking customers to submit photos featuring their children or their younger selves riding Sandy through a “Star With Sandy” contest application on the Meijer Facebook page. Ten winners will receive $100 Meijer gift cards, and all photos have the chance to appear in the commercial, according to Nicole Laughlin, vice president of brand development. “Sandy is unique to Meijer and we’re pleased to have her as part of our shopping experience,” Laughlin said. “We look forward to sharing these special moments in our advertising to help us say hello to new neighbors and bring a smile to seasoned Sandy riders in the communities we’ve served for much longer.” The iconic mechanical horse made its debut with the opening of Thrifty Acres in 1962, when the late Fred Meijer, who had a long history with horses, learned of 10cent pony rides at a supermarket in Nebraska. Fred thought a dime was a lot of money and decided to charge one penny, a price that has since become a symbol of family shopping at reasonable prices. Sandy has been a fixture at the front of all Meijer stores across the Midwest for decades, and is often the last thing a child remembers on the way out of the store. “My dad believed in making things affordable for our customers, and that included Sandy,” Meijer Co-Chairman Doug Meijer said. “Riding Sandy is a memory shared by so many children and parents who shop at our stores. But the real magic happens when those children grow up and bring their own kids back for a ride.” The Star With Sandy contest is open through Feb. 6.
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