Grand Rapids Business Journal - May 18, 2015 by Grand Rapids Business Journal

STEM teaching program enriching Grand Rapids youngsters. Page 7

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

Something new brewing in coffee industry. Page 3

MAY 18, 2015 VOL. 33, NO. 20

THIS WEEK

CAREER FUELED BY CURIOSITY

Long-time chef Steve Stallard is creating and developing food products for his BliS Gourmet company that nobody else has even thought of. Page 10

Downtown directive

DDA proposes $9.7 million budget to improve the core city. PAGE 3

Pyramid scheme

Steelcase and developer are at odds over future of Pyramid building. PAGE 3

Cider maker has room to grow South Bend

ﬁrm acquires 20 parcels

Pat Evans

Grand Rapids Business Journal

Paul Vander Heide sees a big, bright future for Vander Mill Cider. The cider maker is among the largest independent hard cider producers in the country, yet compared to local craft beer makers, Vander Mill isn’t very big. Last year, the Spring Lakebased company produced approximately 225,000 gallons of cider — or, in beer terms, 8,000 barrels. Founders Brewing Co. made more than 190,000 barrels of beer last year, while New Holland Brewing Co. brewed just under 35,000 and Perrin Brewing Co. produced about 14,000 barrels. Hard cider is in its infancy compared to craft beer. Vander Heide compared the industry to where craft beer was in the 1980s: a few large producers and some fledging independent producers. He sees a lot of growth potential and plans to open a production facility and taproom in Grand Rapids later this year. Vander Heide recently purchased the former B&B Distributing facility at 505 Ball Ave. NE for $2 million. An additional $1.3 million will be spent to renovate the facility to make it fit Vander Heide’s vision, including raising 13,000 square feet of roof four feet for production capabilities. Initially, the facility will allow Vander Mill to increase production to 1 million gallons, with the possibility to expand to 6 million gallons. “It’s one thing I thought of,

Mike Nichols

Grand Rapids Business Journal

form the building’s former office area into a restaurant, and the entrance will get a facelift to create a patio. The taproom will employ between 60 and 70 people, according to Vander Heide. The production operation will remain at five employees for the time being, but Vander Heide said he plans to add administrative and sales support. Growth has come quickly for Vander Mill, which originally opened in 2006 with the intention to make mostly sweet apple cider. Then the hard cider side of the business took off, and now the

A 20-asset real estate portfolio in the Grand Rapids area, which includes four retail shopping centers and covers a total of about 270,000 square feet of land, now has a new owner. South Bend-based real estate private equity firm Great Lakes Capital recently announced it finalized on the note sale transaction in January of this year. The 20 properties — comprised mostly of retail properties, vacant parcels of developable land and a storage facility — have been in receivership since Sept. 9, according to Great Lakes, which purchased the properties through its Credit Opportunity Fund I. “We were able to acquire a secured note at a significant discount to the outstanding balance and, through a complex transaction, ultimate fee simple ownership to the underlying collateral,” said Jeff Smoke, Great Lakes Capital director of development. “The properties are a strategic fit for our Credit Opportunity Fund I. They will allow us to significantly expand our retail footprint with exceptional property locations in a very robust Grand

Continued on page 4 8

PAUL VANDER HEIDE, foreground, and Jarrod May check the inventory at Vander Mill Cider. Photo by Johnny Quirin

evaluating the facility: ‘What does it look like when it’s full?’” Vander Heide said. “No matter how crazy it might seem now, how far can we get?” To start with, most of Vander Mill’s Spring Lake production equipment will move to Grand Rapids and four new 350-barrel fermenters will be added. Assuming sales continue to grow, there is space for more than 25 additional fermenters. “We still have a lot of sales growth to fill that initial capacity,” he said. “We have room, but that’s where it gets silly. That’s (200,000) to 300,000 barrels.” Vander Heide plans to trans-

Back to school

Davenport University announces $25 million fundraising campaign. PAGE 5

FINANCE

Home starter

Another $600K comes to Michigan for ﬁrst-time homebuyer grants. Page 15

Angels’ wings

Grand Angels exceeds goals with $2.5M invested in 12 deals. PAGE 16

City moves from survival mode to investment mode Charlsie Dewey

Grand Rapids Business Journal

Six years ago the city of Grand Rapids was on the verge of bankruptcy, but today it has regained its financial footing and city officials see a bright future ahead. “We were literally on the edge of bankruptcy,” said Greg Sundstrom, Grand Rapids city manager. “We had a $33 million operating deficit on about a $110 million general fund budget.” Sundstrom said one of the big reasons the city faced such a grim future was because of its practice of operating with reserves of only 5 percent of its operating budget. He explained that cities and townships with larger reserves were able to weather the economic downturn better and for a longer period. In addition, the city employed nearly 2,100 people and wasn’t delivering its services in the most effective or efficient ways.

Staring at a bleak future, Grand Rapids went into survival mode, shedding a third of its workforce, or approximately 550 positions, and reviewing all of its service delivery models in an effort to cut costs. The city also adopted a fiveyear, three-phase transformation plan to try and dig itself out of the hole into which it had descended, including the creation of a $50 million transformation fund and millages to fund parks improvements and street repairs. In March, the city entered phase three of that transformation plan, and Sundstrom said for the first time in six years he is delivering a budget to the city commission that isn’t focused on survival. The $457.6 million budget includes a general operations budget of just over $125 million. “We don’t have operating deficits and we don’t project any for the next five years,” Sundstrom said.

CONTENTS

Inside Track ......... 10

Change-ups ......... 25

Comment...............12 Prevailing wages

Calendar ............... 25

Matters ..................13 Millennial generation

Vol. 33, No. 20

Respond to this week’s online survey. www.grbj.com

“We have the highest levels of reserves we’ve had in our history.” The city is now operating with reserves of 19.5 percent, with an objective of reaching 25 percent. It is also operating with a budget that has returned to its peak. “If you look at our peak as far as size of budgets, which was in 2002/2003, and compare it at that point to our low point in about 2010 and to our current state, we are now operating on a budget for the first time that is equivalent to about the 2002/2003 state,” Sundstrom said. He noted with a third fewer employees — approximately 1,450 — it means the city is spending significantly less on its workforce. The city has also seen its bond rating recover, and it may rise even further. “For a period around 2010, we had what the rating agencies would call a ‘negative outlook,’” Sundstrom said. “The future looked negative for us accord-

Sales Moves .........13 Attitude actions

Area Economy.....26 Construction rebound Street Talk ............ 27

ing to them, and we were an AA-. They have removed the negative outlook for us. We are currently an AA and we think we might become an AA+.” Sundstrom said it is unlikely the city will ever receive a AAA rating like Kent County. “To get an AAA bond rating, we’d have to have reserves totaling 80 percent,” he said. “I don’t think we have an interest in doing that. We don’t want to hold taxpayer money just for a better bond rating.” With its financial health on the rebound, Sundstrom said the biggest change people are likely to notice about the FY2016 preliminary budget is its focus on neighborhoods and business districts. “We are focused on how do we make this a better community?” he said. “We think our real objective here in local government is not to create economic wealth or job Continued on page 4 8

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City’s budget process to reduce losses remains on track, Page 6 MAY 18, 2015 GRAND RAPIDS BUSINESS JOURNAL 3

Something new brewing in coffee industry DDA proposes It involves nitro brews, Central American farms and a Dirt-to-Dirt program.

fee and Rowster roast the beans. Later, Morton began working with MadCap to grow the company’s direct trade program. It was while working the counter at MadCap that Morton met Watson, a technology industry veteran from Seattle who had recently moved to town with his wife, who works for Wolverine Worldwide. “They walked up to get coffee one morning and I was serving them, and we started chit-chatting and hit it off,” Morton said. “The next day, they came in and we talked some more. He was looking for something to do, and we started talking about coffee and doing something significantly different from what other people do.” In 2009, Direct Trade Coffee Club started as an online, subscription-based program in which Direct Trade would send customers selected roasts of beans that had been purchased directly from Guatemalan farmers. Morton said the company worked with fewer than 10 farmers last year. Now with a roaster of its own — the company roasted approximately 10,000 pounds of coffee last year — Direct Trade has expanded its offerings. A new program is called Dirtto-Dirt, which allows sustainably minded corporations and organizations to be transparent about where the coffee they buy comes from. “I can come in and not only increase the transparency of the coffee portion, but increase the employee satisfaction and customer experience in what is essentially a low-hanging fruit,” Morton said.

$9.7M budget Charlsie Dewey

Grand Rapids Business Journal

After a series of renegotiating meetings and changes, the agreement between Pyramid Education Campus Investors and Steelcase Inc. for the iconic Pyramid building is uncertain. The pending $7.5 million purchase agreement between Steelcase and the Pyramid Campus may no longer be on the table after nearly two years of collaboration and discussion. The Pyramid Campus, an education group that envisions placement of a STEM and arts learning environment in the structure, announced the finalized $7.5 million purchase agreement Nov. 26, 2014, with an anticipated close date in February 2015. The purchase agreement also included a commitment on behalf of Steelcase to collaborate in the research and design planning for the innovative educational hub in the roughly 663,000-square-foot facility, which was built in 1989 at 6100 East Paris Ave. SE, Caledonia.

“Steelcase has been actively searching for the right opportunity to convert the former CDC Pyramid building to a facility that would best serve the local community,” the company indicated in an official statement May 8, 2014. “For several months, we have discussed the development of a multi-use education hub, led by Jerry Zandstra.” Zandstra, co-founder of the Pyramid Campus, said the organizations have been working on a transaction for almost two years, and it is complicated due to the size and complexity of the building and the vision of an educational community. “We have had multiple deals in place. At one point, right at the beginning, Steelcase was just going to donate it, but they were putting some restrictions in there we didn’t like,” said Zandstra. “We went on to another (deal) including the building and area of 181 acres, and we looked at 40 acres they wanted to include and decided it was not land we needed or wanted, so it was reduced to 141 acres. There have been a lot of different versions of this.” Steelcase indicated in its official statement that Pyramid Education Campus Investors LLC requested an extension on the close of the proposed $7.5 million transaction for April 2015, and “based on guid-

ance from ECI, Steelcase granted the extension with the new close date.” The revised deadline was April 6. Zandstra said, based on the pending re-zoning application with Gaines Township and waiting for approval from the state of Michigan’s Department of Licensing and Regulatory Affairs, the organization asked for an additional extension, which was refused by Steelcase. The rezoning request includes changing part of the acreage from I-1 Light Industrial to a Planned Unit Development. The application for zoning approval was submitted by Todd Schaal on behalf of the Pyramid Education Campus Investors and received Dec. 17 by Gaines Charter Township. The rezoning proposal had an objective to provide an avenue for future development to occur on-site and use the existing structure for future phases that included a fine arts/gymnasium building, higher education dormitory buildings, technology and leasable office spaces, restaurants, expanded parking, sidewalks and new entrances. “I told them I needed a couple more weeks. I have to get through Gaines Township and I have to get through the state meeting to ensure we can do what we need to do in there,” said Zandstra.

“They said no, so we sent them a letter and asked for the security deposit back, and that agreement ended. They had a board meeting the next week and they decided to demolish the building. We had more discussions.” However, Steelcase’s official statement indicated after ECI “determined that the closing requirements of the agreement could still not be met by the close date of April 30, and decided to terminate the agreement,” no further agreements were “executed with ECI since that time.” In a Pyramid Campus press statement May 9, Zandstra said the two organizations had agreed to a purchase price of $3 million and a “timely close.” Based on an email exchange between Steelcase and Zandstra April 22 and 24, Zandstra said they believed there was a deal and a discussion for Steelcase to continue operating “in parallel paths” with continued plans for demolishing if ECI failed to close since there was no threat to the timeframe. Upon failing to receive paperwork to continue with a purchase agreement, Zandstra said he learned a new investor made a higher cash offer for the building. Steelcase’s official statement indicated that, since the transaction

As part of the $9.7 million Downtown Development Authority budget proposed last week, Grand Rapidians could see makeovers of at least four underpasses, the conversion of part of Ionia Avenue NW to a bike-friendly street, and more green spaces. Downtown Grand Rapids Inc. presented the Downtown Development Authority board of directors with its proposed budget for fiscal year 2016 on Wednesday. DGRI is a nonprofit organization that provides administrative services for the DDA, Downtown Improvement District and Monroe North TIFA. After a brief discussion, mostly highlighting the merits of the relationship between DGRI and the DDA and the public involvement component the organization has created, the DDA board approved the budget, which includes $4.9 million in discretionary spending and approximately $4.7 million to satisfy ongoing obligations. The proposed budget will now go on to the Grand Rapids City Commission for consideration on Tuesday, May 26. Primary revenue sources included in the budget are a $3.8 million fund balance carried over from 2015, $2.1 million in proceeds from the sale of Parking Area 1, $4.8 million in anticipated revenue from increasing property values and new growth, and $540,000 in estimated proceeds from property rental, sponsorships, interest and revenues from DDA-owned parking lots. Based on the proposed budget, the DDA plans to invest $3.1 million in public realm and infrastructure improvements, $3.3 million in real estate incentives and acquisition, $750,000 for special events, promotions and workforce support initiatives, and $415,000 for downtown beautification, safety and mobility. The proposed DDA budget includes 98 capital projects, programs, events and other investments, with 56 of those stemming from the GRForward planning initiative, which is expected to conclude with a final plan later this summer. DDA president and CEO Kristopher Larson highlighted a number of the projects on tap for the coming year, including: rerouting the Downtown Area Shuttle, also known as DASH, to better serve residents and workers; revamping Lyon Square on the riverfront near the Amway Grand Plaza Hotel; installing festoon lighting over the entertainment district along Ionia Avenue SW; expanding diversity and inclusion initiatives to continue establishing a more welcoming downtown; establishing a running and walking trail that connects the Michigan Street corridor to downtown; planning for a local bike share system; establishing Pearl Street around U.S. 131 as a pedestrian-friendly gateway to downtown; and creating pedestrian-friendly highway underpasses.

Continued on page 9 8

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Grand Rapids Business Journal

Until late 2013, Direct Trade Coffee Club was a nomad. The company was using a variety of coffee roasters, including MadCap Coffee, before shipping its products to customers. Last year, owners Kirby Watson and Chad Morton found a home for the business on the south side of Grand Rapids where they are roasting their own beans and also are working on some innovative coffee projects. The coffee company’s roots go back to a trip Morton took to Guatemala in 2006 to see the devastation resulting from the Central American country’s recent civil war. Morton’s contact there was a coffee farmer, and despite not knowing anything about coffee beans, he brought some back in his suitcase. “I said, ‘Hey, maybe I’ll connect some of the roasters back in Michigan with a farmer here in Guatemala. That’d be good for everyone,’” Morton said. “Essentially, they all laughed at me and said it couldn’t be done.” So he set up a program of using medical missions that were heading to Central America to bring back coffee beans and then had local companies such as Ferris Cof-

CHAD MORTON, left, and Tyler Doornbos of Direct Trade Coffee have a new roaster that allowed them to process nearly 10,000 pounds of beans last year. Photo by Johnny Quirin

“A business can buy 1,000 pounds of coffee from a specific piece of property, and we roast and get it to them.” Direct Trade will even pick up the used coffee grounds and compost them, making up the second “dirt” of Dirt-to-Dirt. Direct Trade’s pilot organizations for the program are ArtPrize and Bartertown Diner, said Tyler Doornbos, the company’s vice president of marketing. Doornbos said the program is unique in the industry, but he hopes more com-

panies will begin offering similar programs. “It connects a company with an individual farm so they know precisely who’s making their coffee (and) the quality of their coffee. It’s perfect supply-chain transparency,” he said. “We have plans to expand it, but it’s not that other companies can’t do it. Frankly, the more the merrier. It’s good for farmers, it’s good for coffee and it’s good for Continued on page 9 8

Pyramid Campus is on tenuous ground Plans for a STEM hub are on hold as sides haggle over real estate. Rachel Weick

Grand Rapids Business Journal

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Vander Mill makes a big move 7 Continued from page 1 cider is distributed across Michigan and into Chicago, Ohio and Indiana. The company completed a $600,000 expansion in 2013 that allowed it to scale up to its capacity and also put its products into cans. Nearing capacity, Vander Heide began looking for a place to expand his production. “We have physical space issues,” he said. “Moving to Grand Rapids is pretty strategic to us. We wanted to be in a space that allowed us to showcase our process, and Grand Rapids has a really captive audience for good food and beverage.” Initially, the search for a new facility included the lakeshore, but once the search was narrowed to Grand Rapids, the former B&B Distributing facility was a quick find and a logical fit to meet Vander Mill’s needs. Located near Michigan Street and Plymouth Avenue, Vander Heide is excited about the potential of becoming a neighborhood restaurant and tourist destination. He said on summer weekends, the Spring Lake taproom’s parking lot is filled with Illinois license plates. “The more I look back on it, I would have chosen this building

again 10 times,” he said. Because of the large space, Vander Heide said jokes among staff have been to add a basketball court and go-cart track. “We’re getting into a building dramatically bigger than our production warrants right now,” he said. “This building gives us the opportunity to continue to grow more organized and controlled. “It’s a very significant investment for the size of our company, and we’re betting on the … industry growing as it has been.” As far as distribution goes, Vander Heide sees plenty of growth in Vander Mill’s current markets and will keep the focus on those before expanding to any new markets. He would rather not enter a new market and pull out because production can’t keep up with demand. “We’re small enough — cider is small enough, as a total — that we have a lot of work to do in Michigan and Chicago, and some … other states are getting their first taste,” he said. “We have to do a good job of educating and marketing.” Often lumped in with beer brewing, cider making is more like wine making, Vander Heide said. Hard cider is fermented fruit juice, and Vander Mill aspires to

allow the apples to showcase their true flavors. He said the company has scaled back on added sugar as consumers begin to appreciate the beverage for what it is. He also said a major cider producer’s claim of there being one to two apples used per pint is fairly accurate. Vander Mill looks to the Fruit Ridge for all of its apples. Last year, Vander Mill processed nearly 3 million pounds of apples. If and when production reaches 1 million gallons, Vander Mill will use approximately 12 million pounds. Typical dessert apples aren’t good for cider making, and Vander Heide — and the Michigan Cider Association — is working with local farms to plant more cider varieties. For a long time, apple growers have preferred growing fruit used for products such as apple sauce and pie fillings. Now, as relationships between cider producers and apple growers strengthen, the opportunity is there for apple growers to diversify. That will help consumers too, Vander Heide said. “The consumer likes to know where food is coming from, and we’re a great example of that,” he said. “You can go for a drive and see the apples that go into our products.”

South Bend ﬁrm acquires 20 properties 7 Continued from page 1 Rapids market.” Smoke said Great Lakes Capital, which has an asset footprint that is expanding in the Midwest region, has a comprehensive strategy to renovate and reposition some of the properties in order to either sell them or hold them long term. Great Lakes Capital is “opportunistic,” he said, adding that, for most of the sites, “we plan on holding them, but we’re open to selling.” “It helps us grow our presence in the retail sector, and especially in Grand Rapids, which is a great market. It gives us exposure to see more opportunities … gives us opportunity to do more ground-up construction in the area,” he said. “As we get them leased up, we’ll see what to do. Grand Rapids is a tight market, so there’s a lot of interest. It’s good for all exit options.” Some of the major purchases in the sale were three retail centers

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on 28th Street, Smoke said. Those centers, from west to east, are: Oakestown Center, 3000 28th St. SW, Grandville; Ridgemoor Center, 2841-2959 28th St. SE, Kentwood; and Cascade Center, 6250 28th St. SE, Grand Rapids. In the Oakestown Center, which is a 32,208-square-foot retail center, Great Lakes Capital is looking to add a couple of restaurants, Smoke said. Restaurants and a possible new fitness center are also under consideration for Ridgemoor Center and for Cascade Center, a 43,096-square-foot retail center in Cascade Township. “Ridgemoor is unique because it also has a lower level. It’s in a prime location (and it works) for a tenant that might need more square footage that isn’t visible,” he said. Great Lakes Capital plans to spend more than $1.5 million renovating those centers, with Grand Rapids-based C.D. Barnes serving as contractor on the project. The work, which will focus on

extensive façade renovation, is expected to start in the next couple of weeks, Smoke said. Great Lakes Capital also purchased and is rebranding the former Evergreen Moving and Storage space at 4000 Alpine Ave. NW in Comstock Park. That building is now being called Alpine Secure, Smoke said, and it is unique because it’s a climate-controlled facility that is all brick, offering very high-quality storage space. Smoke also was excited about the purchase of Yorktown Center, a 29,470-square-foot retail center at 4022 Alpine Ave. NW, Comstock Park. “That one doesn’t need any work. We’re just going to reposition it with new and existing tenants,” he said. “We also have a couple of vacant parcels of land just to the north of it,” he said, referring to approximately 3.5 acres at 4076 Alpine Ave. NW. “We could develop it or sell it. We don’t have set plans right now.”

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From survival mode to investment mode 7 Continued from page 1 creation; our role is to create the environment for those things to happen. “That means creating an environment where entrepreneurs want to start their business, and creating an environment where people want to buy property and homes and live here.” Sundstrom said with the 2016 preliminary budget, he is trying to direct more resources to the things that make Grand Rapids unique. “It’s not the city that creates the economy; it’s these neighborhood business districts,” he said. “We have some that have all of a sudden blossomed to be huge economic drivers, be it Cherry Street or Wealthy Street, and we are

now seeing it on Bridge Street and Plainfield (Avenue). “We need to do more to support those efforts.” He said the city would be doing more to support Corridor Improvement Districts and Business Improvement Districts in the coming years. He also said that, to support the economic development happening throughout the city, more staff is being added to the planning and building inspections departments. “There is a lot of economic activity that businesses are undertaking,” he said. “We added four people into our planning department to ensure we can review plans and move them right along and not be the cause of delay, and we added a couple

of people in our building inspections program so, again, we can do timely inspections during the construction process and keep projects moving along.” New police department hires are expected to add to the safety of downtown. “We are expanding our community policing program, which is about making neighborhoods and neighborhood business districts more safe,” Sundstrom said. Sundstrom said the city is really focused at this point on creating a “sustainable city platform” that will improve the quality of life of its residents and its neighborhoods. “Now we can focus on what is it that this community needs to flourish,” he said.

MAY 18, 2015 GRAND RAPIDS BUSINESS JOURNAL 5

Davenport announces public launch of $25M campaign Part of the funds will be used to construct new college of business. Rachel Weick

Grand Rapids Business Journal

With more than half of its $25 million fundraising campaign secured in less than two years, Davenport University now is turning to the public to secure the remaining funds. Davenport announced during a press conference May 8 at DeVos Place Convention Center the public launch of the comprehensive Investing in the Vision Campaign to secure the remaining $12.3 million needed to transform and provide access to education, and support entrepreneurship. The campaign supports three key initiatives as the university transitions from its strategic vision for 2015 to its vision for 2020 to continue to improve student outcomes and accommodate its enrollment and academic programming growth. The three initiatives are: constructing a roughly $15.5 million, three-story Donald W. Maine College of Business housing a Center for Entrepreneurship; using approximately $5.5 million to develop new programming for the College of Urban Education; and expanding its endowed scholarship fund by nearly $4 million to provide students with financial assistance. The university secured roughly $12.7 million in funding during the roughly two-year silent phase of the campaign from alumni, em-

THE DONALD W. MAINE College of Business housing a Center for Entrepreneurship will be a threestory structure costing approximately $15.5 million. Courtesy Davenport University

ployees, board members and business leaders in the community. Richard Pappas, president at Davenport, said the $25 million campaign is based on identifying how to strengthen the institution’s accomplishments moving forward and investing in its future. “It ends in three more years, in 2018. This is a tremendous start to have more than half of the fundraising done in less than two years,” said Pappas. “To fund some of the achievements we have talked about in Vision 2015 and to really move into Vision 2020, we are creating this pathway, a transformational future for our students to have tremendous careers and,

when they graduate, to be able to compete against anybody at any time, at any place.” Tracy Graham, chairman of Davenport’s board of trustees, cochair of the campaign and managing principal at Graham-Allen Partners, said a new world-class facility for the College of Business, continued investment in the College of Urban Education, and expanding the scholarship endowment will provide students with transformational opportunities. “This is truly an exciting time for Davenport, and the Investing in the Vision campaign is an exciting opportunity for the public to join this university to achieve three

amazing outcomes,” said Graham. The roughly 60,000-squarefoot, three-story Donald W. Maine College of Business building will allow for approximately 17 percent growth with more than 20 classrooms, and will house a business accelerator program within the Center for Entrepreneurship. With a capacity for up to three companies in the entrepreneurship center, the program will guide and advise entrepreneurs in how to expand their successful, highvalue, high-growth companies and ultimately create more jobs. “This is needed. We thought we should do something that would really help the region with an ac-

Lois VanTuinen

celerator. This will add to economic development and add to helping not just create businesses, but expand operations,” said Pappas. “A lot of our board members and other business leaders were saying this was a needed area.” The layout of the new facility incorporates flexibility and collaboration with a central hub for students to study and interact, an open office environment for faculty members and flexible educational environments, according to the Investing in the Vision brochure. The decision to propose a new facility for the College of Business was due to an expanding College of Health and increasing demand for more space for business, which is still Davenport’s largest college, according to Pappas. “We are basing a lot of this on the rapidly growing healthcare programs. It has become a larger section of the largest facility,” said Pappas. “We have already raised more than $7 million for this. We need more space for business.” The second aspect of the campaign will focus on continued development of the College of Urban Education, with roughly $5.5 million allocated to tutoring, mentoring, a potential parent’s academy and additional programming. “There will be other curriculum developed, such as a master’s for principals where we will use our business college to participate, and then some undergraduate programs where there is high demand like special education in elementary schools,” said Pappas. “One of the things we are talking about is having some endowed support for maybe a base salary for somebody Continued on page 6 8

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fear. Lois’ chemotherapy not only shrunk her tumor, but also helped remove lingering cancer cells in her body. Dr. McCahill then performed a whipple procedure—a complex surgery that isolated the tumor and created clear margins in order to avoid recurring tumor growth. Lois is grateful to Dr. McCahill for such good results and is confident about

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6 GRAND RAPIDS BUSINESS JOURNAL MAY 18, 2015

City’s budget process to reduce losses remains on track Charlsie Dewey

Grand Rapids Business Journal

One point about the fiscal year 2016 preliminary budget businesses and residents will probably be happy to hear is there will be no significant changes to service fees. The city is already operating under a full cost recovery policy, which it adopted as part of its transformation plan. “What I’ve tried to do over the last six years is to reduce our losses,” said Greg Sundstrom, city manager of Grand Rapids. For example, Sundstrom explained, in the past the city might charge a child $1 to swim in one of the city’s pools while the actual cost to the city was nearer $20. Under the full cost recovery

model, the city has closed those kinds of gaps in its fees. Sundstrom noted the city is now reviewing its fees every year and making adjustments on an annual basis. The city is only allowed to collect fees up to the cost of delivering the service, however. “There is case law that is very strong and clear that says a local government can charge up to the cost we incur to provide a service,” Sundstrom said. “So we can break even or we can lose money, but we can’t make money.” The new policy of full cost recovery ensures the city is getting the most it can for services. The change doesn’t mean kids will have to pay $20 to get into city pools, however. “The city commission makes

the default position that we charge full cost recovery unless they want to intercede for other reasons,” Sundstrom explained. In another example, he said if the city’s cost for issuing a license to a pedicab was $100 but a nearby city was charging $10, the city commission could decide to charge a fee that does not meet the full recovery cost but is in line with what other cities are charging for that service. “I’m OK with that if the elected body makes the decision and directs us to charge that,” Sundstrom said. “I am not OK with it if city staff says, ‘Hey, we think $10 is a good number.’” In cases like swimming pool entrance fees or pedicab licensing, if the city chooses to charge a

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fee less than full cost recovery, an alternative cost recovery goal will be recommended and a source of subsidy for any unrecovered costs will be identified. In terms of revenue, city service fees make up the largest source of revenue for the city: approximately 39 percent of total expected revenue. That percentage has gone up under the new emphasis on full cost recovery. The majority of revenue from user charges comes from Enterprise Funds, Water Supply System, Sewage Disposal System and Parking System. Other city funds with user fee revenues include the 61st District Court, Refuse Collection and Disposal, Building Inspection, Street, Vehicle Storage and Parks. The other five revenue streams for the city are: city income tax, which accounts for 25 percent; city property tax, which accounts for 11 percent; state revenues and grants, which account for 14 percent; investment income, which accounts for 1 percent; and other revenue sources, which account for 10 percent. Sundstrom said besides city service fees, income tax and property tax are the other main revenue sources for the budget. Income tax is the second-largest revenue source, but in recent years, it’s been less stable. “For the first 40 years of our income tax, it grew every year,” Sundstrom said. “With the downturn in 2008, we started to see declines in income tax revenues for the first time. Now income tax revenues have recovered and, in fact, we are projecting a growth this year of 5.5 percent.” Sundstrom said he expects to see growth of 3 percent for next year and 2.5 percent each year following. He noted those projections are conservative. As part of the city’s focus on its future financial health, Sundstrom

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is recommending the additional revenue gained this year, which will be just above $2 million, be put into the budget stabilization fund. Another important aspect of income tax revenue is that in May 2010 the city’s electorate authorized a temporary increase from 1.3 percent to 1.5 percent for residents and from 0.65 percent to 0.75 percent for non-residents, effective July 1, 2010, through June 30 of this year. In May 2014, voters approved extending the temporary income tax increase another 15 years to fund the Vital Streets budget. While many people might assume that increasing property values would mean a big increase for the city in the form of property taxes, that assumption is wrong, Sundstrom said. He noted there are laws that limit the city’s property tax revenues, which means that even as the economy rebounds and property values rise, the impact on the city’s coffers is minimal. “Property taxes are very limited in their growth due to Proposal A and the Headlee Amendment, typically growing at 3 percent or less, at best,” he said. According to Scott Engerson, city assessor, Proposal A puts a cap on the growth and taxable value at the Consumer Price Index. In the current year that value was 1.6 percent. That percentage applies for residential, commercial and industrial property. Property taxes are a key source of funding for most of the city’s component units, including the Downtown Development Authority, Monroe North Tax Increment Financing Authority, Smart Zone Local Development Financing Authority, Brownfield Redevelopment Authority and the various corridor improvement districts.

Davenport’s $25M campaign 7 Continued from page 5

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to go through some of these programs.” Graham said, fundamentally, it is about meeting students where they are, and the board is 100 percent supportive of the program. “We think the Grand Rapids community will benefit from the curriculum that has been developed — we think the country will benefit from it — and as a result, we want to invest in it and we want the community to join us in doing that,” said Graham. “It’s new — it’s something we are going to work through over time, but the core of it won’t change. It is critical, absolutely critical, that we continue the development and growth of this new college, which is off to a strong start embedded with Innovation Central High School.” Davenport’s Master of Urban Education program is intended to change how educators are prepared to teach students in an urban setting by embedding the graduate students within the classroom and emphasizing practical application. Teresa Weatherall Neal, superintendent of Grand Rapids Public Schools, said the College of Urban Education is exactly the type of development needed. “Teaching and leading schools in an urban environment requires special talent, with enhanced skills, training and relationship building to ensure all children achieve their potential,” she said. The final initiative in the campaign will expand the university’s endowed scholarship fund by $4

million to provide additional assistance to students. Each year the university distributes more than $20 million in financial aid, and more than 90 percent of Davenport students receive some type of financial assistance, according to the press release. Peg Luy, executive vice president for alumni and development, said endowed scholarships represent a true investment in Davenport’s vision, one student at a time. “Gifts to our endowment transform the lives of students and have an impact on their current and future families,” said Luy. “There are few investments that have a greater impact than those made in the education of students who could not otherwise attend college.” The Investing in the Vision Campaign is co-chaired by Wilbur A. Lettinga, member and past chairman of Davenport’s board of trustees; Donald W. Maine, chancellor emeritus of Davenport; and Graham. Members of the campaign cabinet include Franco Bianchi, president and chief executive of Haworth; David Frey, chairman of Frey Foundation; Jim Hackett, retired CEO of Steelcase and interim athletic director for University of Michigan; Mike Jandernoa, retired chairman and CEO of Perrigo; Fred Keller, chairman of Cascade Engineering; Keith Klingenberg, CEO of Hydrogen Leasing and president of Davenport’s Alumni Board; Blake Krueger, chairman, CEO and president of Wolverine Worldwide; and Bruce Los, president of Davenport’s Foundation Board.

MAY 18, 2015 GRAND RAPIDS BUSINESS JOURNAL 7

STEM teaching program enriching Grand Rapids youngsters Sylvan Learning Center unveils classes heavy on science, technology, engineering and math. Mike Nichols

Grand Rapids Business Journal

Legos are a classic toy brand, the focus of a popular children’s movie — and now they also are the creative building blocks being used to teach Grand Rapids youth about robotics technology. Grand Rapids’ Sylvan Learning Center, which is part of the national Sylvan Learning Inc. franchise, is offering a new program called Sylvan EDGE that is designed to enhance its business and education platform by incorporating more science, technology, engineering and math, or STEM, enrichment opportunities. Sylvan Learning, which offers afterschool programs for students in pre-kindergarten through 12th grade and has more than 750 North American locations, launched EDGE in 50 select centers last year, said Hilary Tilton, executive director and owner of the West Michigan Sylvan Learning centers. The program was launched nationally this year. Georgia Paulding, director of Sylvan Learning’s franchise development, called the new program an opportunity to bring science, technology and math courses to students in an affordable way that hopefully will “create a spark in students.” It also offers an advantage with

STUDENTS PARTICIPATING in Sylvan’s EDGE program are using Legos as part of an initiative to enhance their skills in the areas of science, technology, engineering and math. The Legos are used to build working robots. Photo by Sylvan Learning Center

value relevance and allows teachers to engage on a different level, she said. Overall, EDGE helps prepare today’s students for the STEM jobs of tomorrow, she said. “These are 21st century skills, and we have to put kids on paths to STEM careers for tomorrow. If we don’t expose them to the love of STEM now, they might not consider that. It’s exciting to see elementary school kids get excited about math, technology and engineering — and do that as their afterschool program instead of sports,” she said. “We’ve created course levels under this EDGE brand that focuses on (robotics) engineer-

ing, encoding and math wizardry. They’re fun, hands-on. … They really inspire kids to tap into their creativity, and that allows them to learn through play.” Tilton, who runs five brick-andmortar Sylvan centers and two satellite locations, said the program uses unique and exciting ways to teach students in first through eighth grades about robotics, coding and math. The robotics class is for students in grades two through six, coding is for students in grades three through eight, and the math class is for youngsters in first through fifth grades. In the robotics class, students use Legos to build working robots.

“It’s great to see the students light up. Students are familiar with Legos, of course, but when you add in the dynamic of a robotics class, they’re learning the basics of how engineering works and how levers and pulleys work. And seeing all that come together and seeing their faces light up is really cool,” Tilton said. “This is a new math program we can offer to families, and it’s unique because it’s going to help students build up speed, accuracy, independent thinking and problem-solving skills.” The classes were also designed to be affordable for working families, Paulding, said. Nationally, the robotics classes

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are $149-$199 for six to eight sessions, coding classes are $249$299 for six to eight sessions, and math classes are $99-$149 per month and include two one-hour sessions per week, she said. Other Sylvan courses generally cost more, she added. “The kids love it. It’s fun, engaging, and they really enjoy playing with the technology and learning about these fields,” Tilton said. “For a long time we’ve been a supplemental education (program), so these new STEM programs are great. “It’s something new and needed in the community. I think what’s most interesting about it is it’s really for everyone.”

8 GRAND RAPIDS BUSINESS JOURNAL MAY 18, 2015

Kent Dispatch Authority mulling consolidation of operations There is also an issue the legislature must deal with regarding 911 surcharges. Pete Daly

Grand Rapids Business Journal

The Kent County Board of Commissioners has received an update from the Kent County Dispatch Authority that included urging consideration of consolidating all emergency dispatch operations in Kent County under the Authority. Authority Chair Curtis Holt, city manager of Wyoming, also noted the Authority would like the Legislature to address inconsistencies in the monthly amounts in 911 call surcharges it is receiving from the wireless phone companies. Kent County established a surcharge on every call to 911 of 45 cents to help fund emergency dispatching because the technology

costs are particularly high, due to constant improvements that make old technology obsolete. The state of Michigan also levies a surcharge of 19 cents on every 911 call, with those funds shared by dispatch centers around the state. According to Holt, the surcharges are a decreasing source of funding and were down 9 percent last year. The Authority, he noted, has purchased “an enormous amount of technology.” The KCDA was formed in 2007 by the major cities of Kent County in collaboration with Kent County government. Up to then there were nine separate call centers around the county, with a lower rate of efficiency. There were also problems in quickly transferring 911 calls to the right agency, and some departments had emergency radios that could not communicate with departments in other communities. To some extent, there are some remaining problems with communication technologies between the

various public safety departments, according to Holt. Today, under the KCDA, there are two Primary Service Answering Points, or PSAPs, in Kent County: One handles calls to Grand Rapids and Wyoming first responders, and the Sheriff’s Department PSAP takes calls for the rest of the county. In 2014, the Grand Rapids PSAP took 158,195 911 calls; the Sheriff’s PSAP took 109,433. The KCDA annually distributes 911 surcharge funds to the two PSAPs totaling $2.5 million, used just for taking calls. Holt said the total annual budget for both PSAPs is about $10 million. The amount of wireless calls is now more than double the amount of calls still coming in via landline, according to Holt. Holt said enforcement of collection of the 911 call surcharge is “a constant problem for us” because the state law prevents the KCDA or any other dispatch organizations from auditing the phone

companies, and there is no consistency in the monthly revenues. He said it stands to reason that emergency calls should be about the same volume every month. Holt mentioned that accidents on an expressway could generate dozens of 911 calls “because everyone has a cell phone.” One of the reasons given for declining surcharge revenues is that the number of landlines is decreasing, but to Commissioner Stan Stek that seems “counterintuitive” with all the cell phones carried by the public today. “I agree. I’m perplexed, too,” responded Holt. He added it “doesn’t appear there is a lot of passion to deal with this issue in Lansing.” The KCDA is governed by a board including representatives of the largest emergency services and members of the city and township local elected bodies. Now the KCDA has determined that governments throughout the county ought to weigh the merits of turn-

ing over all dispatch operations — not just the incoming 911 calls — to the KCDA. The KCDA “takes the politics out of” emergency dispatching, which naturally requires some degree of collaboration between adjoining municipalities. “It is a change, but we think we have a lot of expertise on our board,” Holt told the Business Journal after the county meeting. He said there would also be an increased economy of scale, increasing efficiency while also increasing effectiveness of dispatching. Commissioner Jim Saalfeld said he supports the idea of a single dispatching authority, noting dispatching has been “evolving toward a more collaborative model.” Saalfeld also said he is “cautious” about consolidation of government services. “You want to be careful with any collaboration — especially consolidation. But this is one example where taking these steps will be beneficial for residents of our county,” said Saalfeld.

Eight Grand Rapids companies on Michigan’s 50 to Watch list Charlsie Dewey

Grand Rapids Business Journal

Mayor George Heartwell last week recognized eight Grand Rapids companies that made this year’s Michigan 50 Companies to Watch list. The eight companies make Grand Rapids the city with the largest representation on the list, which is sponsored by Michigan

Celebrates Small Business. The award honors growth-oriented businesses based on market expansion, job creation, technological innovation and community impact. According to MCSB, the 50 companies represent a wide variety of industries, are privately held and headquartered in Michigan, have between six and 99 employees and generate between

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$750,000 to $50 million in annual revenue, or have working capital from investors or received grants in 2014. The honored companies collectively achieved more than $308 million in total revenue and employed 1,748 people in 2014. They are planning to create 798 new jobs this year. “To think that our city had more winners than any other city

in Michigan, we are so excited about that,” Heartwell said at last Tuesday’s Committee of the Whole meeting. He thanked the company leaders, six of whom were present, for choosing Grand Rapids as their headquarters, and noted each of the companies is contributing to the economic vitality of the city and providing jobs within the community. The Michigan Small Business Development Center, U.S. Small Business Administration, Michigan Economic Development Corp., Edward Lowe Foundation, Small Business Association of Michigan and Chris Holman, Small Business Advocate, launched Michigan Celebrates Small Business in 2005. MiQuest is the managing partner. The mission is to highlight the contributions small businesses make to the state’s economy. The eight Grand Rapids 2015 Michigan 50 Companies to Watch are:

Firstronic Firstronic is a specialty provider of electronics manufacturing services including turnkey electronic assembly and materials management services to OEMs in the electronics industry. Firstronic’s electronic manufacturing services consist primarily of the manufacture of complex printed circuit board assemblies using through-hole and surface mount technology.

Blackford Capital Blackford Capital is a private equity firm that acquires, manages and builds middle-market manufacturing, distribution and service companies. The firm currently has seven portfolio companies operating in 12 states, employing more than 1,100 people and with combined revenues of approximately $350 million. Blackford has 17 employees and 25 operating partners.

NxGen MDx NxGen MDx is a molecular diagnostics company that focuses primarily on the women’s health industry. NxGen provides genetic screening for more than 120 genetically inherited diseases that can cause devastating health problems. The company works directly with doctors across the country to provide pre-screening for women of childbearing age to help educate and prevent genetically inherited disease during family planning.

Boxed Water is Better Starting with the simple idea to create a bottled water brand that is kinder to the environment and gives back, this company found that packaged water should not be bottled at all but boxed instead. Triple-filtered for purity, Boxed Water sets itself apart with packaging that is made from more than 75 percent paper, is recyclable and 100 percent BPA free.

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Creative Studio Promotions Creative Studio Promotions saw a great opportunity to expand and fulfill a need in the e-store, warehousing and fulfillment markets, carving out a niche in the promotional products industry as well as a solution provider. The advertising specialty company provides promotional products, builds ecommerce sites in-house, and provides screen-printing, embroidery and shipping.

Grand River Aseptic Manufacturing Grand River Aseptic Manufacturing is an important component in the growing life sciences industry in Michigan. The company is a contract manufacturing organization supporting new product development and cGMP (current good manufacturing practice). With a state-of-the-art clean room and highly trained staff, Grand River Aseptic provides clinical trial and commercial material in vials or syringes for the life sciences industry.

Sun Title Sun Title works with clients who are buying or selling a new home or building to create or expand a business. Since 2005, the company has grown through the attraction and retention of skilled workers, innovation and a commitment to customers and the community. Varsity News Network Varsity News Network partners with educators to create healthy communities and influence strong character in school sports participants. By creating easy-to-use, time-saving communication channels for athletic departments, VNN is working toward making sure those educators can be a positive influence in their schools, recognize the great things their athletes are doing and bring their community together through sports.

MAY 18, 2015 GRAND RAPIDS BUSINESS JOURNAL 9

Coffee industry using nitrogen brew Campus on tenuous ground 7 Continued from page 3 consumers.” Direct Trade also is placing a new product in the market. Recently, it began sending kegs of nitrogenated cold-brewed coffee to Bartertown Diner. Other bars and restaurants soon will follow, Doornbos said. Morton began thinking about bottling cold-brewed coffee after trips to New York City and Los Angeles revealed the growing trend. At the time, bottling was too big of an investment for the company, so the idea was put on hold, but Morton continued to experiment. To brew the coffee, he uses a 3-to-1 coffee-to-water ratio and al-

lows it steep for approximately 20 hours. After several filtrations, he puts the coffee in a keg and combines it with nitrogen. The process creates a smoother, less acidic and less bitter product than hotbrewed coffee. “It’s much sweeter, and the chocolate flavor is incredible,” Morton said. “The nitro adds the body and smoothness.” A writer from Esquire magazine recently visited Direct Trade and gave the cold-brewed coffee significant praise in his subsequent article: “Direct Trade Coffee Club in Grand Rapids, Michigan, offers the best nitro cold brew I’ve had so far,” he wrote in an article titled “Five New Ways You’re Gonna

Drink Iced Coffee This Summer.” Right now, production is limited, but Doornbos said the company eventually will have the capacity to brew a few hundred gallons a week. Most coffee companies limit cold-brewed coffee to their own shops, Doornbos said. He only knows of one other company — Portland, Oregon’s Stumptown — that offers the coffee to a distribution network. Stumptown also offers its nitro coffee in cans. “We’re one of the first to make it available on a wholesale basis,” Doornbos said. “We’re just in the rolling-out stage. We’re pioneering this idea and we’re playing it safe.”

7 Continued from page 3 was terminated in early April, the company decided to evaluate other sale options. “We fully support ECI’s mission and vision for the education hub and wish them the best as they also evaluate other options,” the company stated. If ECI is not able to secure the Pyramid building, Zandstra said there hasn’t been a whole lot of discussion pertaining to alternate property, despite a number of individuals having emailed him about available sites in West Michigan. “Right now, the Pyramid is the perfect facility for us. It has infrastructure; it is the right size,” said

Zandstra. “There are a hundred things that make this the perfect building for us, so we aren’t even looking at other options.” Zandstra anticipated having a discussion with Steelcase late last week to receive an update on the status of the deal. “It is our single hope Steelcase honors what they said they would do and lets us do what we’ve committed to do. When I say they have been great partners in the past two years, they really have been. They have been phenomenal,” said Zandstra. “My perspective is, this is a glitch. They are examining another possible offer, but from our perspective, we have an agreement.”

DDA proposes $9.7 million budget for downtown improvements 7 Continued from page 3 In addition to the Pearl Street underpass that is slated to receive a $225,000 investment, Larson said the Bridge, Cherry and Monroe street underpasses are also on tap to undergo “humanizing” treatments that will make them more appealing and pedestrian-friendly as part of an effort to reconnect the downtown communities on each side of the underpasses. Actual designs have not been created yet, but Larson shared some images from other cities that have used lighting and interesting visual images to make their underpasses more vibrant and appealing. The GRForward process has revealed residents’ desire for a great-

er connection to the Grand River. In one of the first efforts to provide that enhanced connection, the DDA plans to provide financial support to connect Canal Street Park with Leonard Street. The quarter-mile project runs along the river’s edge in the Monroe North area. Lyon Square is slated for a $200,000 makeover that will provide more river-viewing opportunities and the creation of an events plaza with outdoor dining space. The expected public-private partnership would cover 2,600 square feet of event space and 1,300 square feet of space for tables. Larson said at this point it’s unknown how much of the space

would be open to the public and how much of it would be part of the new Wolfgang Puck concept restaurant going into the Amway Grand Plaza this fall. Ionia Avenue NW, beginning at Crescent Street, will undergo a pilot program that Larson said would turn it into one of the most bicycle-friendly streets in the city. The proposal calls for creating a single lane one-way street with a separate bikeway, which would be protected from traffic by a parking lane. One program expected to see a decrease in DDA funding is the successful Downtown Ambassador program. Larson noted the decrease is a result of the Downtown Improve-

ment District’s plan to provide $150,000 of the funding for that program. The DDA will provide $225,000. In total, the program will receive more money and be able to expand its hours of operation. Larson noted 94 percent of the dollars included in the discretionary spending category would go to projects prioritized by Grand Rapids citizens, who are part of three alliances supporting the DDA’s work. “Downtown is everybody’s neighborhood, and we value the citizen voice in all our decisionmaking,” Larson said. “We intentionally delegate authority to citizens and, in return, we get a stronger democracy, high-

er transparency and accountability for our organizational operations and better projects that respond to the community’s priorities.” More than 60 individuals representing a variety of downtown stakeholders make up the three alliances: Alliance for Vibrancy, Alliance for Investment and Alliance for Livability. “We’re providing a growing number of citizens an active voice in how we invest public dollars and we’re getting results,” Larson said. “This budget is a clear and direct reflection of the goals and aspirations Grand Rapidians have for their downtown.”

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Inside Track 10 GRAND RAPIDS BUSINESS JOURNAL MAY 18, 2015

5:30 – 8:00 p.m. Frederik Meijer Gardens & Sculpture Park 1000 E. Beltline NE Celebrate businesses and individuals who are transforming Grand Rapids into a thriving community at the EPIC Awards.

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Steve Stallard likens the culinary industry to the National Football League: Plenty of people get there, but few actually make it big. The analogy helps explain why Stallard, with more than 20 years of kitchen experience, decided to start a food product manufacturing business rather than a restaurant when he felt the entrepreneurial itch. “I wanted to spread myself out further than just a local or regional restaurant,” Stallard said. “There’s only a few individuals who make it to the top echelon. I wanted to push out a product line that went across the country and possibly the globe.” His company, BLiS Gourmet, is allowing Stallard to do just that. As a company with multimillion dollar annual sales, BLiS Gourmet has experienced at least 30 percent growth every year since it began in 2005. Based in Grand Rapids, BLiS finds much of its success in major metropolitan areas across the country, thanks to a large network of chefs. Stallard’s company’s growth has come without the benefit of advertising or public relations. Even so, BLiS products, carried by

12/21/12 11:01 AM

Meijer, Williams Sonoma, Eataly, Dean & DeLuca and many other food retailers across the country, have ended up on television shows hosted by Anthony Bourdain, Rachel Ray and Oprah, and in print media such as Food & Wine, Wine & Spirits and Saveur. BLiS has launched several new lines this year and saw a 75 percent sales growth in the last quarter, Stallard said. “We’ve got a solid distributor base,” he said. “It keeps growing and expanding, and we keep up. The loyalties have paid huge dividends. That has paid off — finding quality people who know your product and sell it well.” The company’s name stands for “Because Life is Short,” a motto Stallard has stood by since his teenage years. He’s been cooking since he was 14, starting with the game and fish he hunted and caught while growing up in Michigan — including during his college years at Northern Michigan University in Marquette in the Upper Peninsula. His amateur cooking experience led him to work in professional kitchens, including at the Amway Grand Plaza in downtown Grand Rapids where he worked under Master Chef Daniel Huglier. In the late ’80s, Stallard attend-

STEVE STALLARD Company: BLiS Gourmet Position: Founder and Owner Age: 52 Family: Wife, Elizabeth. Hometown: Rochester, Michigan Residence: Grand Rapids Community/Business Involvement: None Biggest Career Break: Starting BLiS Gourmet: “It’s growing and I can’t stop it now.”

ed the Culinary Institute of America in Hyde Park, New York, where he earned certificates in the culinary arts and baking and pastry. “I decided cooking is what I wanted to do,” he said, “so I started cooking for the best chefs I could find.” In his more than two decades of cooking professionally, he spent time at Marshall, Michigan’s Win Schuler’s restaurant, at the fivestar and five-diamond Greenbrier Hotel in West Virginia and at the Michelin 3-star Taillevent of Paris. During his time in France, Stallard fell in love with its food and wine culture, before making his way back to Grand Rapids and becoming executive sous chef at

Inside Track MAY 18, 2015 GRAND RAPIDS BUSINESS JOURNAL 11

Amway Grand Plaza in May 1990. During his second five-year tenure with Amway Hotel Corp., Stallard became executive chef before feeling the need to scratch the entrepreneurial itch. Stallard knew he needed business experience outside of cooking and, in 1995, he went to work for an aquaculture startup in Pennsylvania. There he helped develop a full smokehouse and a fresh fish processing line. He also directed marketing, product development and processing.

“We’re the first company that I know of to put maple syrup, at $3,000 a barrel, into old, leaky bourbon barrels to see what happens.” In 1997, he moved on to the Racquet Club of Memphis, where he was in charge of the 1,200-member private tennis club that had 31 employees. Later that year, Double-A baseball team the Memphis Red Birds was developing a full entertainment district/stadium concept, which would include several fullservice restaurants. Stallard was hired as the general manager and executive chef of the private club and a 200-seat restaurant, along with being in charge of the concessions operation. “To gain credibility, I needed managerial experience,” he said. “But I left to get back into chefing because I missed it.” He became Dow Chemical’s executive chef in 2000 and spent five years in Midland, feeding the company’s executives as they dined and entertained. Still, starting his own business called to him. So in

2005, Stallard finally started his food product business, BLiS Gourmet, with one product: caviar. “We were having a hard time finding fresh, domestic roe that was a species of fish no one else uses,” he said. “So I started with brook trout, a fish native to Michigan that produces a quality roe. “From there, I tried to find (products) unique to use and not done by other people.” He relocated to Grand Rapids because of his time spent working for Amway Hotels. He’s a Michigan man at heart, he says, and loves the feel of living in a city but also having the ability to hunt and fish within a few hours’ drive. Grand Rapids, with its developing food scene, is the place to live in Michigan, Stallard said. He likes to share his knowledge with upand-coming chefs from GRCC’s Secchia Institute for Culinary Education, and also with the customers who use his products, helping them figure out flavors and how they can be used. Following his success with caviar, Stallard began to develop the concept of barrel-aging products in used Kentucky bourbon barrels. He started with maple syrup that spent approximately a year in the barrel. “We’re the first company that I know of to put maple syrup, at $3,000 a barrel, into old, leaky bourbon barrels to see what happens,” he said. “It was risky, but we took some chances and it worked. Now other people are starting to do it.” The bourbon barrels created such a unique and flavorful syrup that Stallard began looking for other products he could age in barrels, including soy sauce, vinegar and fish sauce, all of which are now part of the BLiS line of products. In 2007, when he had some leftover syrup barrels he wasn’t using, Founders Brewing Co. asked to use

them. Founders put the base beer of the renowned Kentucky Breakfast Stout in the barrels and the resulting beer, Canadian Breakfast Stout, has become one of the highest-rated beers in the world. Now a mutually beneficial relationship has built up between the two companies: Founders returns the barrels it has used to Stallard, allowing him to expand his product line even further. Recently, the two companies co-released Blast Hot Pepper Sauce, aged in Kentucky Breakfast Stout barrels. Since the first go-around, barrels have gone back-and-forth several times, leading to new products from both companies. BLiS takes its time when it comes to new products, however. The company has three employees in the production department, all with at least 10 years of cooking experience. All BLiS products are the result of constant tasting and adjustment, Stallard said. BLiS Bourbon/ Maple Barrel Aged Soy Sauce took two years to develop before its release early this year. “Finding the products that work is the real key, for stability and safety,” he said. “We’re creating things nobody has seen before. We’re always tasting and developing and teaching each other nuances of products.” Stallard’s entire career has been fueled by his curiosity, exemplified these days by his creation of new products. Most recently, he’s smoking a batch of the barrel-aged soy sauce, which will allow him to create multiple products reusing the regular and smoked barrels of the soy sauce products. “We continue to produce one product, and two more come off of it,” he said. “If you lose your curiosity, you become stagnant.”

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Comment & Opinion 12 GRAND RAPIDS BUSINESS JOURNAL MAY 18, 2015

Senators back to ‘fixing’ non-existent problems instead of fixing roads

ichigan legislators were roundly chastised in April before the statewide ballot proposal to fund road repairs, construction and transportation was soundly defeated by voters. In all areas of the two peninsulas, voters decried the abdication or dereliction of legislative duty to create a plan to “just fix the roads.” The issue is squarely back in the Capitol awaiting resolution amid increasing constituent anxiety and frustration. Instead, the state Republican Senators hurriedly — within a week — moved and passed legislation to repeal the state’s 50-year-old Prevailing Wage Act, signed into law by Gov. George Romney. Gov. Rick Snyder has repeatedly made clear his position that this Act is not on his agenda and said even last week he would not sign such a bill. The governor is right to maintain his stance. The Associated Press reported the nonpartisan Senate Fiscal Agency indicated in a statement the repeal would have an “indeterminate but likely positive” fiscal impact on state and local governments but added a lack of data makes it difficult to estimate savings with any certainty. Highway construction projects are most often funded with federal funding, which requires prevailing

The Business Journal finds incongruity in such speculation over union and non-union wages at a time when the industry is starved for construction trades employees.

GUEST COLUMN

Lou Kitchenmaster

No-fault auto reform needed for Michigan

f you happen to occasionally observe the innumerable medical and personal-injury ads that litter the sides of our major roads or see them on TV, you can rightly assume that Michigan is very fertile ground for big-money vehicle-related claims and litigation. Every few years, our state Legislature wrestles with cost-cutting reform for our terribly expensive no-fault auto insurance system, and the effort is eventually stopped dead in its tracks It’s become a predictable scenario, with this year being no exception. The majority of our Lansing officials eventually buckle to pressure by legal and medical coalitions — who also tend to be generous campaign contributors. In the meantime, the price of auto insurance keeps sucking our wallets dry, and when medical centers are charging two to five times more than what most health insurers would pay, one doesn’t have to be very bright to know that something is drastically wrong with the system. Our current no-fault system is simply a sickly gravy train for the unethical and greedy, while an insufferable burden for the general

wages. Romney’s law was struck down in 1994 but was reinstated by a federal appeals court in 1997. The intent of the law was to provide equal footing for union and nonunion labor in competing for state construction jobs. The Associated Builders and Contractors of Michigan last week issued press releases in support of the repeal, citing the cost to business under the wage act. The Business Journal finds incongruity in such speculation over union and non-union wages at a time when the industry is starved for construction trades employees. The state education effort led by Snyder specifically provides more funding, education and training for skilled trades workers based on the national industrywide shortage. Such shortages and the increasing wage rates necessitated by demand makes the point moot and serves only to create aggravation between two parties that must get the roads fixed. Republican House Speaker Kevin Cotter has said the bills will be referred to committee and told Associated Press there is no “firm timeline” for consideration. Cotter was among the first to begin discussion of specific plans to fund Michigan’s increasingly expensive road repairs. Cotter should stay that course. Just fix the roads.

MI VIEW WEST Garth Kriewall

motoring public. Uncontained, unlimited medical has long been a recipe for cost excesses and abuse, or what some might call legalized fraud. Consider that the average cost of MRI and ER billings through Medicare are $484 and $125, while the average “no-fault” assessment it is $3,279 and $444, respectively. These are just two of almost endless examples. As expected, these unwarranted costs are passed on to you, the motoring public, via higher insurance rates. Insure.com informs us Michigan now has the highest auto rates in the nation for the second consecutive year, and has been No. 1 or No. 2 the past five years, a direct result of our unsavory unlimited medical benefits in Michigan, pure and simple — still the only state in the nation which has it. With this, it is not surprising one-fifth of Michigan motorists are now uninsured. Effective July 1, Michigan drivers will be assessed a still astronomical Michigan Catastrophic Claims Association “tax-equivalent” fee of $150 annually per vehicle — down from $186, but way up from the initial $3 fee back in 1978. If you have multiple vehicles,

simply hold your breath and do the math — for something from which the tiny minority of us will ever benefit. The Michigan Association of Insurance Agents and auto insurers in Michigan have been actively calling for no-fault reform, along with other reputable organizations like Michigan Farm Bureau and the Michigan Chamber of Commerce, et al. The recently proposed (but stalled) legislation to reform nofault, SB 248, offers some cost containments and is a good first step even though it doesn’t call for an abrupt end of unlimited medical. A few of SB 248’s key components would be a newly reformed MCCA with open meetings, scrutiny of MCCA’s books, and focus on fraudprevention — something that deserves our unwavering support. In conclusion, how many households or businesses among us operate with an unlimited budget, or would even support such for

our schools, local, state or federal governments? More importantly, how much longer will we, the motoring public, tolerate an unlimited-lifetime, “blank-check” funding mechanism for personal auto injury claims? Continuing to do so is simply bad medicine for Michigan drivers. Most of all, it’s a huge financial drain on all of us. While the legal and medical coalitions doggedly oppose any cost containments, fighting to preserve the lucrative status-quo, it is high time for Michiganders to cast a deaf ear to their self-serving and often deceptive pleadings. Along with our elected lawmakers, we, the Michigan motoring public, finally need to draw a line in the sand and demand immediate and meaningful no-fault changes.

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.

Michigan journalist, kriewall@hotmail.com

Maybe the future of West Michigan manufacturing really will be battery-powered.

Lou Kitchenmaster is an independent insurance agency owner in the greater Greenville area.

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MAY 18, 2015 GRAND RAPIDS BUSINESS JOURNAL 13

FAMILY BUSINESS MATTERS Marsh Private Client Services

Getting to know the millennial generation A

ccording to the U.S. Census Bureau, in 2015, the millennial generation or “Gen Y” (those born from 1981 to 1996) is projected to outsize the baby boomer generation as the nation’s largest living generation. There is a projected $30 trillion transfer of wealth from the baby boomers to their millennial heirs. Outlined in this article are some key characteristics that may be helpful to advisors when working with this generation. Millennials are relationship driven. Many advisors who are part of a family office wealth management team may be concerned that their millennial family clients will abandon them when they take over their family businesses. However, according to a recent study by Family Office Exchange, millennial family clients made it known this was not their intent, but they indicated they must be able to relate to their advisors on a personal level before they will trust them in an advisory capacity. Millennials don’t like to be spoken to in a way that makes them feel naïve or childlike. Advisors should focus on getting to know this new generation of clients on a personal level to build collaborative relationships because millennials are natural collaborators who like to give their opinions and re-

ceive immediate feedback. Some actions you may consider to begin a collaborative relationship with millennial family clients include: •Asking about their interests and sharing some of your own. •Asking about their short- and long-term goals and offering advice. •Helping them solve a problem you uncover in your conversations. Millennials crave transparency. The dot-com bubble and the 2008 financial crisis made millennials timid about investing in the capital markets and skeptical of financial advisors. Millennials want transparency, honesty and authenticity. They want to know much more about the people who are managing their affairs and the companies they do business with than earlier generations, and they become skeptical when they are kept in the dark about important decisions and discussions. Like anyone, millennials have access to whatever information is available online, and they are more likely than any other generation to go online first before making any buying or hiring decisions. Make sure the information on your company website truly captures what you offer and how you stand out in a crowded marketplace. Consider adopting some of

the following behaviors that promote transparency: •Share your company history, mission statement and values with them to reinforce what they may already know about you from online research. •Explain what they can expect from you as their advisor and deliver on that promise. •Keep the lines of communication open and touch base with clients regularly. Millennials are technologically savvy. Financial advisors who are early adaptors to new technology show millennials they aren’t complacent and demonstrate a willingness to communicate with them in the way they prefer. Millennials live online and are constantly checking their social media feeds, including Facebook, Twitter, Snapchat and Instagram. Online is their preferred way to get information. Pew Research Center calls millennials history’s first “always connected” generation and refers to their integration of technology and the Internet to every aspect of their lives as “technological exceptionalism.” Social media and blogs build trust, are transparent, help educate your audience, and they can help you connect with clients in a way that’s not just professional but also human.

Consider the following tips to further your engagement with millennials: •Create social media accounts and/or blogs for your company and add relevant content frequently. •Ask younger employees at your firm for their input on what social media channels would be most impactful for your company to explore. •Start conversations that will engage your audience. •Make sure everyone at your firm stays up-to-date with technology. Millennials appreciate education. Millennials are on course to become the most educated generation in American history. This fact explains why millennials would rather be educated than sold. Education is key; it builds trust and can secure multi-generational relationships. Education can come in many forms including webinars, white papers, commentary, or even social media posts. Recommended actions to support your millennial family clients’ eagerness to learn include: •Regularly provide educational materials about the services you offer. •Listen for in-the-moment education opportunities during conversations. •Ask what they are interested in

Millennials may question doing things the way “they’ve always been done”; they are not averse to the status quo, but they want to understand the rationale behind it.

learning more about and find new resources to share. Millennials may question doing things the way “they’ve always been done”; they are not averse to the status quo, but they want to understand the rationale behind it. By understanding millennials and learning how to communicate with them effectively and educate them, you can ensure a successful relationship and continued business with the millennial generation. Marsh PCS helps successful individuals and families protect their personal property and lifestyles by providing insurance counsel and risk management solutions. Contact Christine.M.Schoenwalder@ marsh.com to learn more.

SALES MOVES Jeffrey Gitomer

Want to change your attitude? Take attitude actions

define attitude as “the way you dedicate yourself to the way you think.” Thinking negative or positive is a choice and a process. Negative is (unfortunately) an instinctive process. Positive is a learned self-discipline that must be studied and practiced every day. To achieve a positive attitude, or as I have named it, a “YES! Attitude,” you must take physical, verbal and mental actions. Here are a few attitude “awareness and actions” that will help put you (or keep you) on the positive path. 1. Admit that attitude is no one’s fault but yours. The more you blame others, the less chance you have to think positive thoughts, see a positive solution, or take positive action toward a solution. The opposite of blame is responsibility. Your first responsibility is to control your inner thoughts and thought directions. 2. Understand you always have (had) a choice. Attitude is a choice, and most people select from the negative column. Reason? Negative is more pervasive in society and media. It’s more natural to blame and defend than it is to admit and take responsibility. 3. If you think it’s OK, it is; if you think it’s not OK, it’s not. Your thoughts direct your attitude to a path. If you think, “This is crappy, why does this always hap-

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pen to me?” you have chosen a negative path. If you think, “Wow, this may not be the greatest, but look what I’m learning,” you have chosen a positive path. 4. Invest time, don’t spend it. Ignore the media you cannot control; find a project, or make a plan to sell something, or meet with someone who buys (or teaches) instead. You will become a worldclass expert in five years. The only question is: at what? Spend an hour a day working at or studying anything, and in five years, you will be a world-class expert. Most people will become experts at some kind of local news TV program. Me? I read and write while you watch TV. 5. Study the thoughts and writings of positive people. Read Napoleon Hill’s classic “Think and Grow Rich” — twice. Read “The Power of Positive Thinking.” They are priceless, timeless gems of wisdom you can convert to your own success thoughts. The secret is to read a little each morning. 6. Attend seminars and take courses. The hardest part of taking an attitude course is finding one. Look at any school or university and try to find one course. I’ll

Jeffrey Gitomer is the author of 12 best-selling books. His real-world ideas and content also are available as online courses at GitomerVT. com. For information about training and seminars, visit gitomer.com or gitomercertifiedadvisors.com, or email Jeffrey personally at sales man@gitomer.com.

save you the time. Find a Gitomer Certified Advisor in your city — call my office for recommendations: 704-333-1112 — and take your attitude course today. 7. Check your language. It’s just words, but they are a reflection of how your mind sees things and an indication of how you process thoughts. 8. Avoid confrontational and negative words. The worst ones are “why,” “can’t” and “won’t.” 9. Say why you like things and people, not why you don’t. I like my job because … I love my family because … Say things from the positive side enough and it becomes a habit you will revel in for life. 10. Help others without expectation or measuring. If you think someone “owes you one,” you are counting or measuring. If you give it away freely, you don’t ever have to worry about the measurement. The world will reward you 10 times over. 11. Think about your winning

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and losing words. Be aware of “loser” phrases and expressions. Lose with: “They don’t pay me enough to …” or “That’s not my job.” If you say, “I’m not because he’s not,” who loses? If you say, “Why should I?” who loses? Think “learn,” “lessons,” “experience,” “help” and “solutions” before you make a statement. 12. Think about your mood and your mood swings. How long do you stay in a bad mood? If it’s more than five minutes, something’s wrong. And your attitude (and your relationships, results and success) will suffer. 13. Are you the head of the complaint department and the chief complainer? Many people slip into cynicism day-by-day. They become bitter because of their envy of other people or their own misfortune. List the lessons you can learn from those you have bitterness for and the results will turn your thinking toward your success and away from theirs. 14. Celebrate victory and defeat. In my early days of selling, I would go to a department store and buy myself something every time I made a sale. It made me feel great! When someone told me to celebrate victory and defeat, I started to buy myself something after I lost a sale, too. It felt great! Winning and losing are part of life and apart from attitude.

15. Visit a children’s hospital. Get comfortable with the plight of others and feel good about the minuteness of your problems compared to theirs. 15.5 Count your blessings every day. Make the list as long as you can. Start with health if you are fortunate enough to have it. Add the love of children and family. From there it’s easy to build the list. Oh, and then there are the “Attitude Aha’s.” Many years ago I was listening to a tape by Earl Nightingale, one of the founding fathers of personal development. On tape four of his series “Direct Line,” the topic was enthusiasm. “Enthusiasm,” Earl said, “comes from the Greek “entheos” meaning the God within.” Aha! All of a sudden all the other quotes and advice made sense. The strength of self-belief is within your own spirit, if you hunger for the feeling. And these words are food for yours. In the words of the Jefferson Airplane rock anthem “White Rabbit”: “Feed your head.” Want an instant lesson? Go out and buy a copy of “The Little Engine That Could.” Read it regularly. It’s not just a book for kids; it’s a philosophy for a lifetime. Positive attitude is a self-imposed blessing. It is my greatest hope that you discover that truth and bless yourself forever.

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MAY 18, 2015 GRAND RAPIDS BUSINESS JOURNAL 15

Another $600K to Michigan for first-time homebuyer grants It’s a remainder of the National Mortgage Settlement, and it won’t last long.

he National Mortgage Settlement turned over another $600,000 to the Michigan State Housing Development Authority in April to be used as grants and/or interest-free loans to first-time homebuyers. MSHDA is now trying to alert prospective first-time homebuyers that they may qualify for the assistance, even though many think they don’t. The National Mortgage Settlement also sent $634,180 to MSHDA in the form of Home Affordable Refinance Program funds.

PETE DALY

first-time and repeat homebuyers with down-payment assistance of up to $7,500 at zero percent interest and no repayment until the house is sold in the future. Eric Dusenbury, a business development specialist at MSHDA in Lansing, said there are a lot of misconceptions about home affordability today. One big misconception, he said, has to do with income limits. Many borrowers, plus some real estate agents and mortgage lenders, think the income limit levels will disqualify many who would like

MSHDA maintains a list of Michigan lenders with experience in mortgages involving MSHDA assistance to the buyer. Its top lenders are from Mortgage 1, Lake Michigan Credit Union, Fifth Third Bank, MB Financial Bank, John Adams Mortgage, Ross Mortgage, AmeriFirst Home Mortgage, Wells Fargo and Union Home Mortgage. In 2012, 49 state attorneys general, including Michigan’s, and the federal government announced a historic $50 billion settlement with the country’s five largest mortgage servicers: Ally/GMAC, Bank of America, Citi, JP Morgan Chase and Wells Fargo. The suit was to recover losses triggered by the banks’ actions that led to the mortgage industry near-meltdown at the start of the Great Recession. Michigan received $97.2 million that went into a Homeowner Protection Fund, and a portion of that was appropriated by the Legislature to MSHDA. Of that amount, $15 million was allocated for the Homebuyer Assistance grant program to help first-time homebuyers buy a single-family/ one-unit, owner-occupied principal residence. Funding for the program was exhausted by March 2013, but over time, unused funds have been turned over to MSHDA and are now available for the MI First Home loan program. According to MSHDA, one of the greatest barriers for first-time homebuyers is the down payment, but a study from RealtyTrac and Down Payment Resource indicates more than 80 percent of homes and condos would qualify for down-payment assistance through programs such as MSHDA’s MI First Home and MI Next Home. MSHDA can provide qualifying

to get a MSHDA grant or interestfree loan, said Dusenbury. In reality, according to Dusenbury, upper-income levels can range from $60,000 and up, close to $100,000, so “a lot of people can take advantage of the program.” The purchase price of the home also used to disqualify many deals for MSHDA assistance, but the home price limit has been raised and is now capped at $224,500, said Dusenbury. Dusenbury said about 1,200 people now take advantage of MSHDA down payment assistance in Michigan. Mortgage 1 is an independent mortgage lender that specializes in first-time homebuyers and does more deals involving MSHDA assistance than any other mortgage lender in Michigan, according to Dan Grzywacz, a senior vice president at Mortgage 1. The grant for first-time home buyers from the latest NMC payment is a great program, he said, noting it is limited: “Once the funds are gone, it’s over with.” “This is free money,” he added. “It doesn’t have to be repaid.” Dusenbury said in early May the $600,000 for first-time buyer grants might only last a few weeks. Grzywacz guessed it might last a couple of months. They said an estimated 200 first-time buyers can receive the down payment grants. According to MSHDA, eligible

first-time homebuyers are defined as someone who has not had an ownership interest in his or her principal residence for at least three years. First-time buyers who qualify can receive grants of up to $3,000. However, first-time buyers who are serving in the military or are military veterans are eligible for grants of up to $5,000. Grant funds may be used only with a MSHDA MI First Home loan, with or without MSHDA’s Down Payment Assistance. The $7,500 down payment loan, which MSHDA offers under MI First Home, is for first-time buyers, but in 66 Michigan counties, MSHDA tries to stimulate homebuying by waiving the first-time buyer requirement. Buyers are only required to pay out-of-pocket at least 1 percent of the purchase price. A lien for loans of up to $7,500 is placed on the property, but no interest is charged, and the recipient only repays the loan when the home is ultimately resold. Under MI Next Home, up to 4 percent of the purchase price or $7,500 is available toward the

Angels among us

Giving credit

Finding reverse

Investment group exceeds goals with $2.5M invested in 12 deals.

MSU credit union earns distinction for its human resources practices.

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DAN GRZYWACZ, senior vice president at Mortgage 1, termed the grants “free money,” but warned that the opportunity won’t last long. Photo by Johnny Quirin

An aging population and more debt are spurring inquiries about reverse mortgages.

18 8

down payment. “It’s very beneficial to people who may own a home that is under water, and they are unable to sell it to get the assets from that house to buy another,” said Dusenbury. MSHDA can subsidize interest rates in the so-called Select Cities in Michigan, with Grand Rapids being one of the 18. All are cities where MSHDA has already invested funds in blight elimination, and where the state wants to stimulate home sales. The subsidized mortgage rates can be as low as 3.125 percent. MSHDA maintains a list of Michigan lenders with experience in mortgages involving MSHDA assistance to the buyer. Its top lenders are from Mortgage 1, Lake Michigan Credit Union, Fifth Third Bank, MB Financial Bank, John Adams Mortgage, Ross Mortgage, AmeriFirst Home Mortgage, Wells Fargo and Union Home Mortgage. Grzywacz heads the Grand Rapids area office of Mortgage 1 on East Paris and 32nd Street in Kentwood. The office has a staff of 23, including 14 loan officers.

“

Mortgage 1’s business is about 95 percent home purchases and 5 percent re-financing of mortgages. As home sellers, lenders and the real estate industry in general are very aware: Business is very good in Michigan now. “Yes, houses are selling,” said Grzywacz. “It’s a good market — there is a lack of inventory. If a home is priced right, as soon as it comes on the market, there are buyers lined up.” The Great Recession was very hard on home sales and especially on new home construction, but Mortgage 1 came through pretty well, according to Grzywacz. “We didn’t have tremendous growth, but we were not moving backwards,” he said. “We doubled our size” from 2011 through 2013, he added. Rules for getting a mortgage are “still tight — kind of a maze. You have to work your way through” an application, he said. “We certainly have a lot more regulation today, but the lenders are lending, and people with decent credit and job stability can get a mortgage.”

I was always suing the big money center banks. Sometimes we’d be representing trusts against these banks; other times we’d represent smaller lenders. TALCOTT FRANKLIN, PAGE 19

”

Finance: Banking 16 GRAND RAPIDS BUSINESS JOURNAL MAY 18, 2015

Grand Angels exceeds 2014 goals with $2.5M invested in 12 deals Michigan’s venture capital community outpaced the national landscape during 2009 to 2013. Rachel Weick

Grand Rapids Business Journal

Grand Angels surpassed its projections for 2014. The Holland-based regional investment organization released its 2014 annual report May 6, indicating the angel fund not only exceeded its goal for 2014 by investing roughly $2.5 million into 12 early-stage companies, but also refined its strategic direction for the future by honing its future investments in four market segments. During 2014, the angel fund exceeded its initial goal to invest at least $2.3 million in 10 deals by closing on 12 deals that included four new portfolio company additions and eight follow-on round investments. Of the $2.5 million in funding for 2014, roughly 35 percent was invested in the biotechnology industry and another 35 percent was allocated in the software and IT sector, according to the Grand Angels 2014 Annual Report. The reVanderwel maining 30 percent of Grand Angels investments for 2014 went toward portfolio companies in industries such as semiconductors

and networking, industrial and energy, and health care and medical. Jody Vanderwel, president of Grand Angels, said the significance of exceeding the initial goals for the year reﬂects both the angel fund’s growth and a growing earlystage investment space in the state of Michigan. “We continue to grow, and our investors continue to have confidence in the whole early-stage space — otherwise they wouldn’t keep investing in that, which of course gives us confidence we are going to continue to be active in the space,” said Vanderwel. “For the state of Michigan, it means there continues to be a good deal of ﬂow: There are entrepreneurs here who are coming up with good ideas; we are probably attracting and retaining talent the way the state needs to; and the whole venture capital and angel space is continuing to grow.” The newest additions to Grand Angel’s portfolio include Accio Energy, A2P LLC, Tecat Performance Systems and Zipment. Vanderwel said the due diligence process for selecting businesses includes looking for a company solving a real problem with a strong leadership team and that has a clear line of sight for a potential exit strategy. “We are looking for a company with a really topnotch leadership team and a company we believe brings the opportunity for 35 to 45 percent annual internal rate of return, because given the high risk of these investments, we need the opportunity for a homerun every deal that we make,” said Vanderwel. “We know 10 percent or 20 percent will be successful, but every investment we think has a chance

to be a homerun.” Other companies in Grand Angels’ portfolio as of 2014 are: Ablative Solutions, Advanced Architectural Products, Altus Brands, Ambiq Micro, Armune BioScience, Blue Medora, Conceivex, Creative Byline and QMinr, Grand River Aseptic Manufacturing, Janeeva, Local Orbit, ProNAi Therapeutics, Salamandar Technologies, Tetra Discovery Partners, Tolera Therapeutics, V.I.O., Varsity News Network and Vestaron Corp. As the angel fund looks ahead to goals for 2015 and strategic direction for the next decade, Vanderwel said it is focused on clearly articulating business sectors of interest, consistent and deeper due diligence processes, and interacting with members to gain perspective and feedback on deals. “Those are the key ways in which we want to make some refinements to our process in order to make us successful and sustainable for another 10 years and continue to increase our chances of making smart investments,” said Vanderwel. “I think one of the keys is we celebrated our 10th anniversary and we took the time to think about what would make us successful for the next 10 years.” Grand Angels’ goals for 2015 include investing in 10 deals, with roughly half a dozen syndicate deals, and reaching 45 members with a 75 percent attendance rate and a 60 percent participate rate in the due diligence process. The angel fund board of directors and members also supported a decision to focus 2015 investments in four market segments: life sciences; digital media, software and IT; advanced manufacturing and advanced materials; and advanced

technologies in agriculture and food. “We think our members have expertise in those areas, which means it helps us conduct better diligence — understand the technology and the market better than maybe some other business sectors that we just don’t have as much experience in,” said Vanderwel. “We think they play to the strengths of the state of Michigan, overall, so we have within our state, capability in our areas that is unique and special.”

The newest additions to Grand Angel’s portfolio include Accio Energy, A2P LLC, Tecat Performance Systems and Zipment. Grand Angels launched 2015 by closing on two or three deals, and has made an average of $1.48 million in annual investments during its roughly 10 years of operations. Since Grand Angels began in 2004, it has made a total investment of more than $16.2 million in earlystage companies throughout the state of Michigan. “If I look back to when we started Grand Angels … this whole industry was in its infancy in Michigan. We had no idea whether Grand Angels was going to be able to survive, let alone thrive,” said Vanderwel. “Since the early 2000s, I think this industry in Michigan has grown tremendously over a relatively short period of time — both venture capital and angel.” Grand Angels has provided an

average of roughly $507,000 in funding to each portfolio company from 2004 to 2014, with an average round investment of more than $210,000. Within a decade, Grand Angels closed on an average of 6.4 rounds per year with more than seven investors in each round. “The quality of deals has exceeded what it was before the economy tanked, the number of accomplished entrepreneurs in Michigan has increased, and certainly the amount of available capital has increased,” said Vanderwel. “While Grand Angels is growing and experiencing some success, we would love to have new members, accredited investors who are looking for an opportunity to invest in this space.” The Center for Venture Research at the University of New Hampshire released an Angel Market Analysis Report for the first and second quarters of 2014 indicating the average deal size in entrepreneurial ventures was more than $332,000, which declined slightly from the average investment of more than $337,800 in the same period for 2013. Despite the decrease, approximately 30,270 entrepreneurs received funding during the first and second quarters of 2014, which is a 5.9 percent increase from the prior year, and the number of active investors increased by 6.1 percent during the same period from 2013 to 2014. The Michigan Venture Capital Association, which represents venture capitalists and angel investors, indicated in its 2013 annual report the state’s venture capital community outpaced the national landscape during 2009 to 2013. Continued on page 24 8

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Finance: Banking MAY 18, 2015 GRAND RAPIDS BUSINESS JOURNAL 17

MSU credit union’s commitment to employees shines bright Best of the Best winner finds happy workers continue the cycle of success. Rachel Weick

Grand Rapids Business Journal

Michigan State University Federal Credit Union has grown over the years to a workforce of more than 640, but it remains focused on creating a culture of engaged and dedicated employees. The credit union was recognized this year not only as one of West Michigan’s Best and Brightest Companies to Work For by the Michigan Business and Professional Association, but also was named the Best of the Best Overall winner for the region on May 7 during the annual symposium and awards program. MSU Federal Credit Union was among more than 110 companies recognized by the West Michigan Best and Brightest Companies to Work For 2015 awards competition, which honors nominated companies for their best practices in human resources and commitment to employee enrichment. After nomination, companies are evaluated by the Illinois Institute of Technology, an independent research-based university, on a series of criteria. Categories measured include compensation, benefits and employee solutions; communications and shared vision; recruitment, selection and orientation; strategic company performance; and work-life balance. As the Best of the Best Overall winning company for 2015, MSU Federal Credit Union was recognized for its best practices across all of the categories. April Clobes, president and chief executive officer at MSU Federal Credit Union, said upon hearing the company had received the award, excitement rippled through the company ranks. “We all know we have an outstanding company to work for — I just couldn’t believe we had won. You know you have a great place, but a lot of people have great places,” said Clobes. “We have so many opportunities to engage the employees and for the employees to be engaged, I think it is just phenomenal.” The credit union has a mission to provide excellent service to its more than 197,000 members and also to assist employees “to achieve financial security, their goals, and ultimately, their dreams,” according to the company website. Established in 1937 in the MSU Administration Building, the credit union has grown to 14 branch locations and more than $2.8 billion in assets. So what does it take to be named Best of the Best? Clobes said much of the credit goes to the employee benefits package. Benefits include 100 percent health care coverage for employees; a two-to-one matching 401(k) plan up to 5 percent; vision and dental plans; tuition reimbursement at the MSU undergraduate rate; a wellness committee; and employee recognition events such as an employee picnic and a dinner in January to celebrate the prior year’s success. “What I think we do exceptionally well is, first, we do offer a very robust benefits package, which in today’s world doesn’t happen very often,” she said. “There is no outof-pocket, monthly or weekly fee, no high-deductible: It really is 100 percent covered. You do have to pay office visit, emergency room and prescription co-pays, but there

is no minimum to reach. It is really cost-effective for the employees.” Another practice that differentiates the company involves a training and orientation program for new hires to not only prepare them for a variety of positions but also to foster engagement, according to Clobes. New employees are hired in advance of anticipated turnover or company growth and then spend four weeks in a formal classroom to train with the learning and talent development team. The trainees have the chance to interact with executives from each division of the company, including Clobes, and are rotated to receive on-thejob training in a variety of positions and departments. “They have an opportunity

to learn about the culture,” said Clobes. “I think that creates engagement, helps people feel comfortable with what their roles and responsibilities will be when they are permanently placed in a position.” MSU Federal Credit Union also partners with local organizations and charities, which is one of the reasons people apply to work for the credit union and enjoy working there, according to Clobes. “We have a large group of employees serving as community volunteers,” she said. “They go to a lot of events, work together to volunteer to support the community, and I think that helps everyone connect with each other, support a cause they believe in, and of course it is good for our community.”

Organizations MSU Federal Credit Union supports include American Red Cross Mid-Michigan Chapter, Capital Area United Way, Child and Family Charities Capital Area, Ele’s Place, Greater Lansing Food Bank, Greenlight Business Model Competition, Lansing Symphony Orchestra, Michigan Arbor Day Alliance, Sparrow Hospice Services, MSU Women’s Resource Center and MSU Alumni Association. “Having engaged, happy employees is a better work environment for everyone: It creates productivity, happiness and better wellness,” said Clobes. “For us, we have always had a philosophy of treat the employees well, create a culture of respect and performance, and ask every-

one to take care of our members. When you take great care of our members, they are also very happy, they do more business with us and they refer others to us. It continues the cycle of success.” Headquartered in a LEED Gold-certified facility in East Lansing, MSU Federal Credit Union has brandches in Lansing, Haslett, Okemos, Charlotte, Mason, Auburn Hills and Rochester. Owned and operated by members of the Michigan State and Oakland university communities, the company provides personal, business and account services to its members. Financial products and services include individual retirement and health savings accounts, loans, insurance and financial planning.

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Finance: Banking 18 GRAND RAPIDS BUSINESS JOURNAL MAY 18, 2015

Reverse mortgage market grows with aging population A higher level of debt in retirement is also a driving factor. Pete Daly

Grand Rapids Business Journal

Reverse mortgages — technically known as an HECM or Home Equity Conversion Mortgage — seem to be advertised more frequently these days, and Mike Gruley says there certainly are many more requests for information about them coming in to his company. He says there are a couple of reasons. “We have more of an aging population,” said Gruley, director of

Reverse Mortgage Operations for 1st Financial Reverse Mortgages, based in Plymouth. He’s been selling reverse mortgages for 15 years, and 1st National is one Gruley of the largest HECM lenders in the state. That doesn’t mean HECMs are ﬂooding the financial landscape; he figures about 800,000 to 900,000 have been made since Congress created reverse mortgages in 1989. Compare that to tens of millions of conventional home mortgages. The other reason for the HECM

market growth is a reﬂection of the amount of debt out there. “Statistically, we see that this generation coming into retirement age is less prepared than previous generations. They are statistically carrying more debt into retirement,” said Gruley. Gregg Dimkoff, a professor of finance at Grand Valley State University’s Seidman College of Business and a certified financial planner, said a generation or two ago, the general assumption in America was “when you retired, your debts were paid off.” And if they weren’t, “you didn’t retire.” “Now we are approaching 50 percent of all retirees who still have a mortgage. That’s ludicrous from a financial planning standpoint. That’s crazy,” he added.

According to the National Reverse Mortgage Lenders Association, a reverse mortgage is a type of loan available to homeowners, age 62 or older, that allows them to convert part of the equity in their home into cash. It was seen as a means to help retirees with limited income use the accumulated wealth in their homes to cover basic monthly living expenses and pay for health care. However, there is no restriction on how reverse mortgage proceeds are used. The loan is called a reverse mortgage because instead of making monthly payments to a lender, as with a traditional mortgage, the lender makes payments to the borrower. The borrower is not required to

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pay back the loan until the home is sold or otherwise vacated. As long as the borrower lives in the home, he or she is not required to make any monthly payments toward the loan balance. However, borrowers must remain current on property taxes, homeowners insurance and condominium fees, if applicable. If they don’t, it is a default on the loan, according to Gruley, and the lender has the same legal remedies for recovering the money as does the lender in a standard or “forward” mortgage. “If you’ve been out of the home for more than 12 months, that’s the legal trigger” that makes the reverse mortgage loan come due, said Gruley. But he noted that, under FHA rules, the borrower might be in a rehab facility for months and then return to the home without impacting the reverse mortgage. HECMs are insured by and regulated by the Federal Housing Administration, part of the U.S. Department of Housing and Urban Development. Gruley said there is one aspect to reverse mortgages that forward mortgages don’t have: There is a “no recourse” clause. For example, if housing values plummet and the sale of the house won’t cover the amount of the loan, the lender has no recourse against any other assets the borrower has — only the house. “The rest is forgiven,” he said, the intention by HUD being to prevent a senior from finally leaving the house with debt still owed on it. Meanwhile, FHA collects an insurance premium on every reverse mortgage; the proceeds go into a pool that will help the lender recover losses, as long as all FHA rules were followed. Reverse mortgages are complicated and they are for people 62 or older, which complicates the complication. Some seniors might find them difficult to fully understand, and they may have heirs who could become a factor in the potential borrower’s considerations. Lake Michigan Credit Union is one of the largest home mortgage originators in West Michigan, but like many other banks and credit unions, it does not engage in reverse mortgages. “We just haven’t really seen a large demand for it,” said LMCU spokesperson Eric Burgoon. “It’s a difficult product to explain and to present” to a potential borrower, he added. “If you don’t have to do it, there’s not a reason to.” When asked about major challenges in selling reverse mortgages, Gruley answered, “People don’t understand the product.” The Internet has not necessarily helped. “The quickness of information on the Internet can be an impediment because wrong information travels fast,” he said. “We find more people informed about them, but also more people misinformed about them. It’s almost an unlearning process we have to go through.” Interest rates are about the same as a standard home mortgage, he said. A fixed rate can start at 4.75 or 5 percent; a variable from 2.75 to 3 percent. When is a reverse mortgage not a good idea? “In general, we don’t recommend a reverse mortgage as a short-term fix,” said Gruley. “It’s really considered an aging-inplace tool or a retirement tool — not a complete solution — to enable you to stay in your home.” For example, taking out a reverse mortgage to fix up the house is a bad reason, he said. Continued on page 24 8

Finance: Banking MAY 18, 2015 GRAND RAPIDS BUSINESS JOURNAL 19

Law firm with expertise in financial sector comes to GR Talcott Franklin made a name for itself suing money center banks during financial crisis. Charlsie Dewey

Grand Rapids Business Journal

A Texas law firm with a history of taking on money center banks during the financial crisis has joined the Grand Rapids community by acquiring a firm in the area. Dallas-based Talcott Franklin PC announced the acquisition of The Law Office of Jordan C. Hoyer in Grand Rapids last week. Talcott Franklin specializes in deciphering and explaining complex transactions and has litigated some of the highest profile cases stemming from the financial crisis. Talcott Franklin founded his firm in 2010 at the height of the fallout from the financial crisis as investors were looking for a way to sue money center banks without revealing important information to one another about their businesses. Franklin had already built a strong practice in the area of mortgage-backed securities as a partner with Dallas firm Patton Boggs, where he served as deputy head of litigation. “I was always suing the big money center banks,” he said. “Sometimes we’d be representing trusts against these banks; other times we’d represent smaller lenders.” He noted mortgage-backed securities were a little known area at that time. “Before 2008, nobody knew what a mortgage-backed security

was,” Franklin said. He publish a book in 2008 on mortgage-backed securities litigation, just as the financial crisis was hitting the nation, and he represented a group of investors opposing a 2009 piece of legislation aiming to implement a servicer safe harbor law that would absolve banks of any liability. “It was broad and sneaky by the banks to try and get out of the obligations they had,” Franklin said. “They were going to modify a bunch of loans and then say, ‘All my liability to anyone on the planet is wiped out now because I made these modifications.’” Franklin helped get the safe harbor piece removed from the legislation. He said following that success, the group of investors presented him with their next issue, which was a need to collaborate that was hindered by an equal need for secrecy within their industry. The investors told Franklin, “Our big problem is we can’t really communicate with each other; we are all competitors. We own these different bonds and we need to talk with each other so we can unite against some of these banks and get them to perform on their obligations under these contracts we have with them.” Franklin said he was able to use attorney-client privilege to help competing investors unite against the banks. It was at that point that he left Patton Boggs and formed Talcott Franklin, bringing seasoned attorneys on board with him. The firm became an immediate success, representing small and large institutional investors from around the world such as insurance companies, banks and asset

managers. Today, Talcott Franklin has grown to a 20-member firm. Its attorneys are licensed to practice law in a dozen states and the District of Columbia, and the firm also has offices in North Carolina and West Virginia. Franklin said he became acquainted with the Law Office of Jordan C. Hoyer, a boutique litigation Hoyer firm, through one of its four members, Derek Witte. He met with founder Jordan Hoyer shortly after that. “The development of Jordan’s firm is a great story about tenacity and resilience, about overcoming tough times and re-tooling to reﬂect an economic reality,” Franklin said. Hoyer launched the firm in her parents’ Grand Haven basement in 2011 after completing a law clerkship with the United Nations. She had hoped the U.N. experience would lead to a permanent job, but that didn’t turn out to be the case. So she struck out on her own. Today, Hoyer’s firm is housed in The Trust Building, 40 Pearl St. NW, Suite 922, and includes three more attorneys: Curt Benson, Erika Hunting and Witte. The firm specializes in commercial and financial services litigation. Franklin and Hoyer think the acquisition will combine both firms’ strengths and bring an important asset to Grand Rapids and the state of Michigan. “The attorneys at Talcott Franklin PC are of the highest caliber, typically graduating at the top

tiers of their law school class, serving on law review, and going on to distinguished careers at corporations or in government before joining Talcott Franklin,” Hoyer said. Franklin said up until now Michigan has not had a firm with Talcott Franklin’s expertise in financial services. He said that area of law has been under-represented in the state. He said he can’t think of a single Michigan company that filed a suit against any money centered bank following the financial crisis and he expects that is because the opportunity didn’t exist in the form of legal representation. “Now it exists,” he said. Franklin said he’s committed to being part of Michigan and specifically the Grand Rapids community. He said getting his license to practice in Michigan is representative of that commitment. “We hope to earn the privilege of working with the businesses and people of Grand Rapids,” he said. “We predict Grand Rapids will help lead a renaissance in Michigan, and we want to be a part of that.” Franklin mentioned three big trends he expects will impact the country in the coming years, including West Michigan. First, he said, student debt will have a major impact. “It’s becoming a crushing factor on young people,” he said, adding that even bankruptcy doesn’t absolve someone of student debt. “You’re on the hook for life,” he said. “That’s going to have an impact.” Second, the housing market will have an impact because “everyone has to live somewhere.” He pointed to a similar phenomenon with the housing bubble in the early 2000s, but said instead

of California and Florida, it’s occurring in places like Grand Rapids, Portland, Oregon, and Texas, where home values are rising — possibly too high. “Anecdotally you are hearing a lot more about the sort of things that were going on in California or Florida during the boom: people putting a house on the market and getting three offers that day above the asking price and people selling for more than it was worth.” He said during the previous housing bubble, appraisers were “inﬂating values, and lenders were making loans that were out of whack with reality to people who couldn’t pay them back. “Lending standards have loosened so we are going to see whether we are repeating that,” Franklin said. “I can’t speak to that right now because I don’t know what impact lending standards are having. Obviously, interest rates are incredibly low right now.” He also highlighted what he called a new entrant in the housing market, which he said his firm is keeping a close eye on. He said investors bought up a bunch of foreclosed homes and then securitized them. “It’s a new securitization instrument we are watching closely,” Franklin said. “Basically, you buy a bunch of houses, you fix them up and rent them out and then, to get more money, you bundle them together and you securitize them. You sell interest in that rent pool so it works like any other security. “We don’t know how it’s going to perform and we don’t know what the integrity is with respect to those investments right now. Time will tell.”

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Finance: Banking 20 GRAND RAPIDS BUSINESS JOURNAL MAY 18, 2015

Top Area Banks

(RANKED BY 2014 COMMERCIAL LOAN PORTFOLIO)

New app

Top Executive(s)

Year Established In W. Mich.

No. Of W. Mich. Employees

No. Of W. Mich. Locations

2014 Commercial Loan Portfolio

Commercial Loans As Percentage Of All Loans

Commercial Deposits

Retail Loan Portfolio

Retail Deposits

Tom Welch

1853

1,652

$2.77B

53%

$3.50B

$2.28B

$5.41B

Fifth Third Bank (Western Michigan) 111 Lyon St. NW Grand Rapids 49503 p (616) 653-5029 53.com

Mercantile Bank of Michigan 310 Leonard St. NW Grand Rapids 49504 p (616) 406-3000 f 726-1500 mercbank.com

Michael Price Robert Kaminski

1997

262

$1.72B

82%

DND

$374.00M

DND

Wells Fargo Bank 146 Monroe Center NW Grand Rapids 49503 p (616) 458-6000 f 458-4722 wellsfargo.com

Donald VanDine

1989

DND

$1.48B

100%

$205,000

DND

Chemical Bank 2445 84th St. SW Byron Center 49315 p (616) 588-3800 chemicalbankmi.com

Joel Rahn David Quade Chris Rushton Mark Johnson

1998

450

$1.26B

68%

$610.38M

$579.00M

$406.92M

Macatawa Bank 10753 Macatawa Drive Holland 49424 p (616) 820-1444 f 396-7369 macatawabank.com

Ronald Haan

1997

397

$818.21M

73%

$673.99M

$300.28M

$632.33M

Independent Bank 4200 East Beltline Ave. NE Grand Rapids 49525 p (616) 363-2141 f 363-1207 independentbank.com

William Kessel

1864

179

$709.20M

23%

$635.24M

$2.35B

$1.20B

United Bank 900 East Paris Ave. SE Grand Rapids 49546 p (616) 559-7000 f 559-4631 unitedbankofmichigan.com

Arthur Johnson

1887

152

$323.03M

80%

$118.65M

$81.26M

$260.33M

First National Bank of Michigan 141 Ionia Ave. NW Grand Rapids 49503 p (616) 242-6500 f 242-7708 fnbmichigan.com

Larry Lueth Jefra Groendyk

2006

$237.00M

86%

$261.00M

$37.64M

$92.00M

First Community Bank 60 Monroe Center NW Grand Rapids 49503 p (616) 454-8447 f 454-8678 firstcb.com

Bradley Henion

1996

$215.00M

DND

$180.00M

$30.00M

DND

West Michigan Community Bank 5367 School Ave. Hudsonville 49426 p (616) 669-1280 f 669-7944 wmcb.com

Philip Koning Jeffrey Berens

1976

$165.00M

84%

$140.33M

$31.09M

$78.95M

Community Shores Bank 1030 W. Norton Ave. Muskegon 49441 p (231) 780-1800 f 780-1860 communityshores.com

Heather Brolick John Clark Tracey Welsh

1999

$107.40M

83%

$57.30M

$22.60M

$112.80M

Grand River Bank 4471 Wilson Ave. SW Grandville 49418 p (616) 929-1600 f 929-1610 grandriverbank.com

Mark Martis Marcia Borowka Elizabeth Bracken Patrick Gill David Blossey

2009

$103.46M

91%

$58.47M

$10.69M

$51.95M

*Huntington Bank 50 Monroe Ave. NW Grand Rapids 49503 p (616) 235-8824 f 235-6470 huntington.com

John Irwin

1997

1,106

DND

51%

DND

ChoiceOne Bank 109 E. Division Ave. Sparta 49345 p (616) 887-7366 f 887-7990 choiceone.com

Jim Bosserd

1898

155

DND

Flagstar Bank 3205 28th St. SE Grand Rapids 49512 p (616) 464-2369 flagstar.com

Laura Priest

1997

DND

Richard Haslinger

1918

DND

Bob Jones

2015

DND

JPMorgan Chase 200 Ottawa Ave. NW Grand Rapids 49503 p (616) 771-7215 f 771-4400 jpmorganchase.com Old National Bank 5200 Cascade Road SE Grand Rapids 49546 p (616) 228-6000 oldnational.com

The Grand Rapids Business Journal list of top area banks, ranked by 2014 commercial loan portfolio, 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 27 banks; 17 returned surveys and 17 are listed. *Bank could not provide W. Michigan numbers. To be considered for future lists, e-mail pevans@geminipub.com. DND = Did not disclose

Fifth Third Bank recently launched a new mobile app that promises to allow for quicker banking on the go, including mobile deposits and bill pay, and text banking.

Shred days

Throughout the year, Mercantile Bank of Michigan is offering free shredding services at its branches across the state.

Green building

Wells Fargo was recognized as a â&#x20AC;&#x153;greenâ&#x20AC;? building leader among financial institutions last month by U.S. Green Building Council.

New lenders

This spring, Macatawa Bank added three new mortgage lenders: Linda VanDam, Scott Sharda and Joel Norkus.

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.

Finance: Banking MAY 18, 2015 GRAND RAPIDS BUSINESS JOURNAL 21

Dems propose tax breaks for mid-, low-income families They want the financial burden shifted back to businesses. Brooke Kansier

Capital News Service

LANSING — Michigan is still catching up after the Great Recession crashed the economy — and for most residents, the 2011 rewrite of the state tax code made things worse, Democratic legislators say. Lawmakers recently took aim at tax changes approved by Gov. Rick Snyder they said shifted the burden from businesses to individuals and harmed mid- and lowwage workers. “Most families in our state continue to struggle economically, and the income and equality and disparity between the wealthy and everyone else continues to get ever bigger,” said Democratic House Leader Tim Greimel of Oakland County. “A big part of that is related to the massive tax shift that Republicans in state government orchestrated in 2011.” Under the 2011 rewrite, multiple tax benefits for middle-class and low-income residents were cut or reduced, including significant reductions to a tax credit that helps low-wage workers and their families. A $600 per child tax credit for families also was cut, and a new tax on pensions was added. Democrats say these tax changes hurt an already suffering middle and lower class that has seen serious decreases in median wage since 2000. That’s a drop of nearly $14,000, according to a report by the nonprofit Pew Charitable Trusts. Democrats also cited a 4.3 percent reduction in the middle class this century. To counteract these issues, work toward a healthier middle class and smaller tax disparities among individuals and businesses, Democrats have put forth multiple bills this spring. One initiative, to restore the Michigan Earned Income Tax Credit, was part of the failed Proposal 1 referendum to raise the sales tax primarily to improve road conditions. Had the ballot measure passed, the credit — which helps lowwage workers by allotting them a percentage of their taxed income back — would have returned to 20 percent of the value of their federal credit. Reducing the credit in 2011 was a mistake, said Charles Ballard, professor of economics at Michigan State University and director of a quarterly survey of residents’ views about state issues. It had a small economic impact but was a large loss to many low-wage working Michiganders. “When you’re talking about low-income working families, you’re talking about people with a household income of $25,000, he said. “If their EITC was to be boosted by $500, say, or $700, that’s a lot. It’s enough to get your car fixed. It’s enough to get your children a better coat for the winter.” According to Greimel, business tax cuts by Republicans in 2011 totaled over $1.7 billion, and much of that was shouldered by low- or middle-income working individuals. Ballard said the 2011 shift was intended to improve the economy, but in reality it had a minimal impact on the state’s large-scale economic issues. The value of solutions proposed by Democrats is mixed, he said.

“I think some of the things that are being put forth may or may not have an effect in terms of speeding up the economy,” Ballard said. “But they will help the people who get those tax credits — the individual families.” In addition to restoring earlier provisions, some Democrats have proposed new bills aimed at helping working families. One, introduced by East Lansing Sen. Curtis Hertel Jr., would establish a tax credit to help families cover up to 80 percent of the cost of daycare for their children. “The cost is insane,” Hertel said. “If you have one kid in daycare for a year, the average cost is like $9,000. We think that you should be able to get some of the money you pay (returned).”

Ballard said, however, not all of the new legislation introduced as part of the Democrats’ new budget priorities are necessarily good ones. One he disagrees with is legislation to repeal the 2011 tax on pensions. Retirees still use Michigan roads and parks and should be required to pay taxes, he said. “There were a lot of people that were very upset when a lot of these things happened at the same time,” Ballard said. “But from my perspective, that does not make the pension tax a bad policy. As our population gets older, more and more people were paying no income tax, and that was contributing to our fiscal problems in the state of Michigan.” Greimel, along with many

Democrats, disagreed, saying seniors are on a fixed income and tax cuts for the wealthy and businesses have taken priority over retiree benefits in the state. “We think that’s wrong,” he said. “We should not ask seniors on a fixed income to pay more so the wealthy can pay less.” The pension tax, which raised a reported $200 million per year in 2012 and 2013, has been a controversial and partisan issue since its 2011 introduction. A repeal also was proposed last year, but due to the Republican majority in the House, it never made it into a committee. The current bill is also yet to be sent to a committee, Greimel said. Republicans have criticized much of the legislation Democrats

have introduced, especially increases in deductions and credits. They say Democrats don’t have a realistic way to pay for the bill. Republican Senate Finance Committee members did not respond to requests for comment on this story. Greimel said more tax equality between individuals and corporations could easily balance such a budget. “The Republicans had no problem raising taxes on individuals and families in order to pay for a massive corporate tax cut,” he said. “I think the solution is to restore balance and tax fairness and to make wealthy corporations pay their fair share.”

Banking Center Managers Krista Ressler, Kristine Ayotte, Toni Sherman, and Ace Marasigan join Region President Laurie Beard (center).

Banking on Ethical Business

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For 180 years, Old National has understood the importance of meeting the highest ethical standards. It matters to our company. It matters to our board leadership. It matters to our associates. It matters to you. In March 2015, Old National was named one of the World’s Most Ethical Companies™ by the Ethisphere Institute for the fourth consecutive year, one of only two U.S. financial institutions to receive this honor. We know that our associates’ commitment to acting ethically and with integrity is what allows our company to earn your trust, your business and the opportunity to be your bank for life.

Finance: Banking 22 GRAND RAPIDS BUSINESS JOURNAL MAY 18, 2015

Top Area Credit Unions (RANKED BY 2014 TOTAL ASSETS)

No. Of W. Year Mich. Service Total Assets Chief Executive Officer Established In Locations/ (As Of 12/31/ Chief Elected Officer W. Mich. Employees 2014) 1

Lake Michigan Credit Union 4027 Lake Drive SE Grand Rapids 49512 p (616) 242-9790 lmcu.org

No. Of Members (As Of Associations/ 12/31/2014) Accreditation Memberships

Always closing Member Services

Sandra Jelinski Gretchen Tellman

1933

27 712

$3.54B

304,619

NCUA, CUES, MCUL, CUNA, Savings accounts, checking accounts, mortgages, Chamber of Commerce, insurance, investments, commercial lending, home Economic Club of GR, Local First, equity loans, auto loans, credit cards BBB

Advia Credit Union (formerly First Community FCU) 550 S. Riverview Drive Parchment, Kalamazoo County 49004 p 844.ADVIA.CU f 382-9857 adviacu.org

Cheryl DeBoer Julie Birman

1938

14 250

$1.09B

116,925

NCUA, MCUL, CUNA, CUES, The Savings accounts, checking accounts (personal and Payment Authority, numerous business), business checking, business lending, chambers of commerce mortgages, certificates of deposit, IRA, Advia financial advisors, online and mobile access

Michigan First Credit Union 1815 Breton Road SE Grand Rapids 49506 p (800) 664-3828 f 885-1526 grfamilycu.org

Michael Poulos Linda Height

1926

3 17

$700.00M

100,000

NCUA, MCUL, CUNA, GR Chamber, CUES, GR Hispanic Chamber

Checking, savings, consumer loans, home equity loans, mortgages, CDs, IRAs, Roth IRAs, VISA cards, Internet home banking, online bill pay, MC debit cards

Free checking, mortgages, business banking & loans, mobile & online banking, auto loans, HELOCs, energy loans, over 30,000 free ATMs, investment services, IRAs, money market accounts, Elibrary featuring free financial wellness information

Consumers Credit Union 7040 Stadium Drive Kalamazoo 49009 p (800) 991-2221 f (616) 393-0557 consumerscu.org

Kit Snyder Brad Lawton

1951

16 215

$600.00M

67,000

CUNA, CUES, NCUA, FHLB, MCUL, Chamber of Commerce (Holland, Kalamazoo, Coldwater, South Haven, Grand Rapids, Gaines, Forest Hills , WyomingKentwood)

Option 1 Credit Union P.O. Box 895 Grand Rapids 49518 p (616) 243-0125 f 243-9970 option1cu.org

Steve Bush Dave Ferguson

1936

6 115

$276.04M

28,000

NCUA, MCUL, CUNA, NASCUS, Profit sharing, checking, spare change savings, BBB, CUES, GR Chamber of money markets, CDs, consumer loans, mortgages, Commerce, Local First investment products, business lending, financial consultation

Community West Credit Union 4045 60th St. SE Kentwood 49512 p (616) 261-5657 f 698-0955 communitywestcu.org

Jon Looman Fred Mackraz

1967

5 55

$152.00M

19,400

NCUA, CUES, CUNA, MCUL, Chamber of Commerce, HBA

My Personal Credit Union 1414 Burton St. SW Wyoming 49509 p (616) 452-2161 f 452-1832 mpcu.org

Daniel Baines Roxanne Speck

1951

5 43

$117.01M

12,623

NCUA, MCUL, CUNA, NASCUS, Free checking, free online banking and bill pay, BBB, CUES, Chamber of mobile banking, mobile app, remote check deposit, Commerce 28,000 surcharge-free ATMs, all types of loans, business loans, credit cards, financial planning

Family Financial Credit Union 3575 Henry St. Muskegon 49441 p (231) 733-4600 f 733-1631 ff-cu.org

Draft accounts, money market accounts, share accounts, online banking and bill pay, loans, VISA cards, CDs, ATMs, mortgages, auto loans

Deb Dietz Dave Stamy

1942

3 35

$93.58M

14,964

NCUA, MCUL, CUNA

AAC Credit Union 904 Broadway Ave. NW Grand Rapids 49504 p (616) 459-4429 f 459-5247 aaccreditunion.org

Brian Turmell Thane Barden

1937

5 33

$93.21M

10,762

NCUA, MCUL, CUNA, Chambers Savings, checking, loans, health savings accounts, eof Commerce services, mortgages and youth accounts

First General Credit Union 589 E. Ellis Road Muskegon 49441 p (231) 798-4321 f 798-7181 1stgeneral.com

Connie Taylor Robert Suits

1953

2 30

$63.80M

11,549

NCUA, MCUL, CUNA, Chamber Savings, loans, equity loans, home banking and bill of Commerce pay, mortgages, credit counseling, IRAs, youth clubs, Kids' Club

Meijer Credit Union 2410 Gaynor Ave. NW Grand Rapids 49544 p (616) 784-4822 f 784-3442 meijercreditunion.com

Cathy Ellis Tom Riddle

1958

2 25

$58.19M

11,392

NCUA, MCUL, CUNA, CUES, TEA, Savings, loans (personal and business), mortgages, SHRM, Rockford Chamber of CDs and money market, IRAs, ATMs, checking, Commerce HSAs, home banking, mobile and text banking, bill pay and mobile bill pay, service centers, audio response, e-statements, Apple Pay

Muskegon Co-Op Federal Credit Union 1051 Peck St. Muskegon 49440 p (231) 726-4871 f 722-2628 muskegoncoop.com

John Rupert John Lester

1949

2 27

$51.47M

9,238

NCUA, MCUL, CUNA, Chamber Free checking, savings, loans, money market, debit of Commerce cards, home banking, CDs, IRAs

GR Consumers Credit Union 3975 Clay Ave. SW Wyoming 49548 p (616) 538-2810 f 538-2448 grccu.com

Timothy Kindred Rex Welbon

1941

2 14

$39.09M

3,995

CUNA, NCUA, MCUL, CUES

Port City Federal Credit Union 460 W. Laketon Ave. Muskegon 49441 p (231) 725-4694 f 725-4694 portcityfcu.com

Erin Bedwin Ralph Burr

1944

1 6

$28.04M

3,179

NCUA, MCUL, CUNA, Chamber Savings, checking, share certificates, IRAs, of Commerce consumer and mortgage loans, ATM and debit cards, VISA credit cards, online banking and bill pay

Tradewinds Credit Union 4555 West River Drive NE Comstock Park 49321 p (616) 784-6390 f 784-9223 tradewindscu.com

Mary Sullivan Scott Redner

1956

1 7

$17.64M

DND

NCUA, MCUL, CUNA

Kathy Meekhof Michael Biondo

1959

1 10

DND

NCUA, MCUL, CUNA, Grandville Mortgages, loans, Visa, checking/savings, bill pay, Chamber of Commerce IRAs, mobile banking

Kenowa Federal Credit Union 1905 28th St. SW Wyoming 49519 p (616) 534-3307 f 534-9811 kenowacu.com

Full-service credit union, loans, CDs, checking, visa, mobile banking, bill pay

Lake Michigan Credit Unionâ&#x20AC;&#x2122;s mortgage division closed more than $275 million in loans in March 2015, including more than 1,300 applications.

Name changed

Last year, First Community Federal Credit Union and E & A Credit Union partnered, creating Advia Credit Union, which serves Michigan, Illinois and Wisconsin.

Purple run

The Purple Community 5K in Grand Rapids on May 30 is sponsored by Consumers Credit Union.

Rockford merged

Rockford Community Federal Credit Union members voted to merge into Community West Credit Union, effective Jan. 1, 2015.

Savings, checking, CDs, IRAs, ATMs, online banking, consumer loans, home equity loans, mortgages

Share draft, ATM and debit cards, loans, home equity loans, online banking, credit cards

The Grand Rapids Business Journal list of top area credit unions, ranked by 2014 total assets, 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. To showcase a broader range of credit unions, the Business Journal extended the usual West Michigan area by also surveying credit unions within surrounding counties. The Business Journal surveyed 57 credit unions; 16 responded and 16 are listed. To be considered for future lists, e-mail pevans@geminipub.com. DND = Did not disclose

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.

Finance: Banking 24 GRAND RAPIDS BUSINESS JOURNAL MAY 18, 2015

GR Merrill Lynch team honored Barron’s rated group among Michigan’s top institutional consultants. Pete Daly

Grand Rapids Business Journal

THE GRAND RAPIDS team includes, clockwise from top right, William Mackay, Timothy Long, Scott Bernecker and Jim Veldheer. Courtesy Merrill Lynch

The 16-member Veldheer, Long, Mackay & Bernecker Group in Grand Rapids has been selected by Barron’s magazine as Michigan’s top institutional investment team and the seventh-ranked institutional team in the nation. The group includes partners Jim Veldheer, Timothy Long, William Mackay and Scott Bernecker. The Grand Rapids office, 250 Monroe Ave. NW in downtown, concentrates on advising corporations, foundations, endowments, pensions, defined contribution

plans and high-net-worth families on strategies for managing their assets. This is the first year Barron’s has ranked institutional consulting teams. “This is a team award, and we share the recognition with our clients, our VLMB associates here in Grand Rapids, and the institutional leadership across the firm of Merrill Lynch,” said Veldheer. “We have been committed to providing excellent advisory services to institutions and highnet-worth individuals for over 40 years.” The wealth management firms in the Barron’s ranking were evaluated on a range of criteria, including: institutional investment assets overseen by the team; the number of clients served by the team; and the number of team members and their regulatory records. Also considered were the ad-

vanced professional designations and accomplishments represented on the team. Barron’s published “Ranking the Institutional Financial Advisors” April 18; it was the first time the publication has ranked institutional consultants. Over the previous 12 years, it has ranked the top personal wealth advisors in each state. The finance magazine said it was “venturing into new territory, ranking advisory teams who guide institutions — foundations, endowments, pensions, definedcontribution plans and the like.” It said there is a “pressing need for guidance in this area” because most of the board members of those institutions are there in a part-time capacity — even as the complexity of institutional investing increases along with the level of regulation such as ERISA and emergency fiduciary mandates.

Reverse mortgage market grows Grand Angels exceeds goals  Continued from page 18 Patrick Ervin, who works at Talmer Bank & Trust in Troy, played a key role in the sale of 250 reverse mortgages from 2006 to 2009. He is no longer in that line. “For somebody who wants to access the equity in their home, and stay in their home a long time and not be burdened with payments, and not be concerned about leaving debt beyond the value of their home to their heirs, then it’s the right financial instrument,” said Ervin.

“This product has served a great, great purpose for those seniors over the years. It has changed lives for the positive,” he added. Ervin said the volume of reverse mortgages was “driven down as the regulation (of the mortgage industry) has gone up” in the wake of the financial industry crisis during the Great Recession. “It’s still a good thing for the right senior, but it’s not as good as it used to be,” he said. Dimkoff said he understands that about 10 percent of reverse mortgages are in default because

the borrower took the lump sum rather than a series of loans. “They did something with the whole thing and now they can’t pay the property tax. … They’re really in trouble.” “Reverse mortgages are a last resort for most people,” said Dimkoff. One benefit of the FHA requirement is that anyone interested in getting a reverse mortgage has to talk to an FHA-approved independent counselor who understands reverse mortgages.

Because small business is a big deal. It’s time. macatawabank.com

MEMBER FDIC

 Continued from page 16 Firm numbers in Michigan grew during the five-year period by 44 percent, while there was only a 6 percent growth rate across the nation. In 2013, the national venture capital community invested $29.5 billion across more than 4,000 deals, while Michigan had a $108 million deployment in venture capital for roughly 72 deals. Vanderwel attributes the growth to individuals who work hard to develop investor compa-

nies and entrepreneurial companies, as well as the amount of investment allocated by the state. “It is not a grant; it is an investment bringing a return to the state. It is genuine investment in a growing industry, in a state that is running counter to so much of the industry across the country where there has been some decrease in the amount of venture capital funds and the amount of capital being raised,” said Vanderwel. “Michigan is going the other direction, which is a really good and important thing.”

Change-Ups & Calendar MAY 18, 2015 GRAND RAPIDS BUSINESS JOURNAL 25

ADVERTISING & MARKETING

Allegra Marketing, Print, Mail sales team members Loraine Rebar and Fred Martin were recognized by Alliance Franchise Brands with a Gold Milestone Sales Achievement Award for the fourth consecutive year; Lori Heimburger earned a Silver Milestone Sales Achievement Award for the fourth year. LEAD Marketing Agency announced the additions of Toteff Jordan Brown and Andrea Bennett, media specialists, Maeve MacDonald, account manager, Mary Toteff, digital media specialist, and Elise Goetz, account coordinator.

ARTS

LowellArts! has purchased properties at 221 and 223 W. Main St. to create a new gallery, workshop and performance space. They previously were the retail locations of Cousin’s Hallmark and River Hollow.

AWARDS

Battle Creek Unlimited received the Michigan Works! 2015 Prosperity Award for its work with Battle Creek Essential Skills Demanded by Great Employers.

First National Bank of Michigan has added Andy Jackson, vice president, commercial banker. Northpointe Bank has promoted Brad Rozier, vice president of web development, and Tim Weaver, regional vice president, and has hired Heather Rus, marketing project manager, and Libbey Hess, vice president loan servicing.

BUSINESS SERVICES

Disher Design & Development of Zeeland has hired product development engineers Larry Rhodes, Chad Barnes and Andrew Westrick. Haworth dealer Interphase Interiors announced Julie Ringlever has joined the company as an account executive. Energy Products of Madison Heights, with a facility in Grand Rapids, has been named Master Distributor for Trojan Battery in the Michigan and Ohio regions.

CONSTRUCTION

Bazzani Building Co. has been honored as Best for the World by B Corp. Bazzani earned a B Impact Score that places it in the top 10 percent worldwide. Kent Companies Inc. promoted Lacey Jansma to project manager/assistant safety manager.

Pierce Cedar Creek Institute in Hastings has won first place in the education category of the Michigan U.S. Green Buildings Council’s 2015 Battle of the Buildings.

Educational Community Credit Union in Kalamazoo received the Credit Union National Association Marketing & Business Development Council’s Diamond Award, and, former president and CEO Charles Cornelius was honored with the 2015 James E. Fetterolf Distinguished Service Award.

MAY 19 Grand Rapids Lions Club weekly luncheon meeting. Topic: “Sharia and Shalom: Can They Peacefully Co-Exist?” by Eric Sarwar, Calvin Institute of Christian Worship. Noon, University Club, 111 Lyon St. NW. Information/registration: murphym@jwmessner.com. MAY 19 Product Development and Management Association West Michigan Chapter lunch and panel discussion of the Seamless Coalition and Accelerator collaboration. Noon, Start Garden, 40 Pearl St. NW. Cost: $15/ members, $20/nonmembers. Information/ registration: pdma.org/3/in/eid=348. MAY 19-20 Western Michigan University Grand Rapids Open House. 11 a.m.-2 p.m., May 19; 3-6 p.m., May 20. 200 Ionia Ave. SW. Information/registration: wmich.edu. MAY 20 GVSU Toastmasters Club 4380. Noon1 p.m., Room 176, Lake Ontario Building, Allendale campus. Information/registration: 4380.toastmastersclubs.org. MAY 20 GVSU Van Andel Global Trade Center workshop, “Drop Shipments and Routed Transactions.” 8:30 a.m.-noon, 50 Front Ave. SW. Cost: $100/members; $225/ nonmembers. Information/registration: (616) 331-6811 or vagtc.org. MAY 20 Michigan Environmental Hall of Fame. Guest speaker Bill Rustem, director of strategy for Gov. Rick Snyder. 6:30 p.m., Gerald R. Ford Museum, 303 Pearl St. NW. Information/registration:

rnbrown227@gmail.com. MAY 20 Partners For A Racism-Free Community dialogue, “Let’s Have An Uncomfortable Conversation About Diversity,” by David Luna. 11:30 a.m.1:30 p.m., Celebration Cinema North. Cost: $30, includes lunch. Information/registration: prfc-gr.org. MAY 20 Women In Successful Enterprises program, “Transform Personal Passion into Business Success,” by Cari Draft, EcoTrek Fitness. 4:30-7:30 p.m., Herman Miller Design Yard, Eames Room, 375 W. 48th St., Holland. Cost: $25. Information/ registration: wiseconnections.org. MAY 21 Beene Garter Small Business Series, “Technology for Your Small Business.” 7:45-9 a.m., 56 Grandville Ave. SW. Cost: free. Information/registration: beenegar ter.com/taxtips. MAY 21 Davenport University Institute for Professional Excellence workshop, “Problem Solving, Decision Making and Delegation.” 9 a.m.-5 p.m., 45 Ottawa Ave. NW. Cost: $295. Information/registration: davenport.edu/ipex. MAY 27 NALS of West Michigan/West Michigan Chapter Association for Legal Administrators event. “Concepts of Administrative Teams, the Future of Law Firms and How These Two Are Part of the Same Conversation.” Noon-1:30 p.m., University Club, 111 Lyon St. NW. Information/registration: wil. antonides@gmail.com. MAY 27 Performance Partners Consulting seminar, “Peer to Boss: The New Leader,” by Wayne Klausing. 9 a.m.noon, 2025 E. Fulton St. Cost: $99. Information/registration: (616) 874-2071. MAY 28 Grand Rapids Area Chamber of Commerce ATHENA Leadership Forum, professional development for females. 11:30 a.m.-1 p.m. Cathedral Square, 360 S. Division Ave. Cost: $20-$25, includes lunch. Registration: grandrapids.org. MAY 28 Paul Davis Restoration Kids Burn

to the board of directors of the Migrant Clinicians Network.

nalist Andy Sugden: “Old Friends – New Friends: The Jimmy Lont Story.”

The Pine Rest Research Department awarded its Excellence in Research Award to the Pine Rest Christian Mental Health Services Mother & Baby Program staff and to Lena Brundin, MSU faculty member and researcher at the Van Andel Research Institute, for their work on the “Biological Triggers of Depression in Pregnancy” study.

NONPROFITS

Forty-four Davenport University students qualified to attend the May 6-10 National Leadership Conference for Business Professionals of America. Ron Draayer, senior BPA advisor at Davenport, was honored with the 2015 Hall of Fame Award, and Davenport BPA Advisor Brian Kowalczk received an award for his five years of service to BPA.

Shoreline Vision in Muskegon now offers LenSx laser from Alcon, a computer-controlled, bladeless cataract surgery laser.

FINANCIAL

HUMAN SERVICES

West Michigan business leader Terri Land has joined the board of directors for Legacy Trust and Legacy Trust Holding Co.

NPAworldwide has launched a new website, npaworldwideworks.com, to promote its global recruiting capabilities to an employer audience.

GRANTS

LEGAL

HEALTH

Rhoades McKee announced Kelly A. Petrocelli, labor and employment attorney, has joined the firm as a shareholder.

Temper Inc. of Rockford has been awarded a $100,000 Michigan Accelerating Technology Energy Grant from NextEnergy to develop a more energy-efficient molding process for thermoplastic composites. Evelyn Clingerman, executive director of the Bonnie Wesorick Center for Health Care Transformation at Grand Valley State University, was appointed

Monica Walen, youth specialist at the East Grand Rapids branch of Kent District Library, received the 2015 Golden Apple Award from Kent Reading Council for her efforts and innovation in promoting literacy in Kent County. When not conducting programs and helping patrons, Walen does weekly Harry Potter read-alouds at Wealthy Elementary and book-talking in the elementary schools and middle school, and works on the Kent County Teen Film Festival.

BANKING

MAY 19 Grand Rapids Area Chamber of Commerce Business Matters Series. Speaker: GRPS Superintendent Teresa Weatherall Neal. 7:30-9 a.m., William Seidman Center, 50 Front Ave. SW. Cost: $20/members; $25/nonmembers. Information/registration: grandrapids.org.

EDUCATION

Walen declared Golden Apple recipient

Susan Ford Bales accepted Grand Rapids Community College’s President’s Medallion on behalf of her father, former President Gerald R. Ford.

MAY 19 616 Development Community Conversations. Featured speaker, Elissa Hillary, executive director, Local First of West Michigan. 4 p.m., Osteria Rossa, 16 Monroe Center NE. Information/registration: facebook.com/ events/1448054808820815.

For the 12th consecutive year, Triangle Associates Inc. has been named one of West Michigan’s 101 Best & Brightest Companies to Work For by the Michigan Business & Professional Association.

Camp Golf Outing. 8:30 a.m.-5 p.m., The Meadows at GVSU. Information/registration: locations.pauldavis.com/wmmi/ about-us/golf-outing. JUN 1 Grand Rapids Area Chamber of Commerce Epic Awards. 5:30-8 p.m., Frederik Meijer Gardens & Sculpture Park, 1000 East Beltline NE. Cost: $60/members; $75 nonmembers. Information/registration: grandrapids.org/epic-awards. JUN 1 Walt Gutowski Sr. Golf Outing. Benefits YMCA’s Strong Kids Campaign. Information/registration: bely@grymca.org. JUN 2 MiBio 2015 CEO Leaders’ Club Season, with presenter Joseph Papa, Perrigo. 9-11 a.m., Ladies’ Library Association, 333 S. Park St., Kalamazoo. Registration: (734) 527-9150 or david@michbio.org. JUN 2 SCORE Grand Rapids/FranNet of West Michigan Focus on Franchising Summer Series. Topic: “Business Ownership Options.” Noon-1 p.m., Northwood University, 515 Michigan St. NE, Suite 1000. Cost: free. Registration: grandrapids.score.org/localworkshops. JUN 5 Alliance For Health First Friday Forum, “Latest Development in Health Care” by Great Lakes Health Connect. 8-10 a.m., Hope Network Education Center, 775 36th St. SE. Information/registration: afh.org. JUN 5 Rua Associates panel discussion, “Preparing to Buy or Sell a Business.” 8 a.m.-noon, Fetzer Center, WMU, 1903 W. Michigan Ave., Kalamazoo. Cost: $35. Information/registration: (616) 741-9344 or kalamazooseminar.eventbrite.com. JUN 8 Mel Trotter Ministries Golf Marathon of Hope. 8:30 a.m. and 2 p.m., Railside Golf Club, Byron Center. Registration: mel trotter.webconnex.com/golf2015. JUN 9 Grand Rapids Inventors Network. Topic: “You’re Talking: Is Anyone Listening? Where to Focus Your Marketing Efforts.” 6-8 p.m., GVSU Cook-DeVos Center for Health Sciences, 301 Michigan St. NE, Room 123.

Molly E. McManus, a partner with Warner Norcross & Judd LLP, has been elected to the Grand Rapids Bar Association board of trustees for a three-year term that begins July 1.

Western Michigan University Cooley Law School and the Grand Rapids Bar Association awarded former U.S. Attorney for the Western District of Michigan James Brady with the Marion Hilligan Public Service Award.

MANUFACTURING

StrikoWestofen America in Zeeland announced its product line is now fully supported in Mexico by CASTMET S.A. DE C.V., a service company providing equipment and materials for casting, and the hiring of Antonio Esquivel, regional sales manager for Texas, New Mexico, Arizona, California, Oregon, Washington and Mexico.

MEDIA

WZZM 13 was recognized with a regional Edward R. Murrow Award in the Feature Reporting category for a story by journalist Brent Ashcroft and photojour-

Information/registration: grinventors.org. JUN 11 Grand Rapids Area Chamber of Commerce Chamber Open. Quail Ridge Golf Club, Ada, or Thornapple Pointe, Grand Rapids. Cost: $150; $600/foursome. Information/registration: grandrap ids.org/chamber-open. JUN 11 GVSU Van Andel Global Trade Center workshop, “Customs Compliance in Mexico.” 8:30 a.m.-noon, 310 Pearl St. NW. Cost: $100/members; $225/nonmembers. Information/registration: (616) 331-6811 or vagtc.org. JUN 11 NALS of Wet Michigan Lunch ‘N Learn. “Uber and Airbnb: Who’s Sleeping on Your Couch/Giving You a Lift?” by Tom Sinas. 12:05-12:55 p.m., 10th floor, Fifth Third Center, 111 Lyon St. NW. Information/registration: 752-2494 or lphilp@wnj.com. JUN 16 616 Development Community Conversations. Featured speaker, Tami VandenBerg, owner of The Meanwhile and The Pyramid Scheme, and executive director of Well House. 4 p.m., Osteria Rossa, 16 Monroe Center NE. Information/registration: facebook.com/ events/1448054808820815. JUN 16 Van Andel Trade Center Golf Outing. GVSU’s Meadows Golf Course. Information/registration: (616) 331-6811 or vagtc@gvsu.edu. JUN 17 Urban Land Institute of Michigan Public-Private Partnership Conference. 11:30 a.m.-5 p.m., University Club, 3435 Forest Road, Lansing. Information/registration: michigan.uli.org/event/p3-2015. JUN 17-18 Varnum Consulting workshop “Speak Up and Be Effective – Advanced.” Communicate with impact through oral presentation skills. Information/registration: (616) 336-7089 or varnumconsult ing.com/contact. JUN 18 Beene Garter Small Business Series. “Pros and Cons of Outsourcing Your Accounting.” 7:45-9 a.m., Beene Garter, 56 Grandville Ave. SW. Cost: free.

Hand2Hand of Hudsonville announced the additions of Jodi Joseph, partnership and relationship director, and Christine Hoek, communication and development director. Mika Meyers Beckett & Jones attorney Andrea D. Crumback has Joseph been elected to the board of directors of the Fair Housing Center of West Michigan.

PUBLIC SERVICE

The Grand Rapids Center for Community Leadership recognized 30 alumni leaders working to make the community better, including Kent County Administrator/Controller Daryl Delabbio and Kent County Commissioner Shana Shroll.

TECHNOLOGY

NVINT announced it now offers cloud services and hosting for the IBM AS400 iSeries platform.

UTILITIES

The 2015 CS Week Conference recognized the City of Grand Rapids Water Department and the 311 Customer Service Center with this year’s Expanding Excellence Award for Innovation in Customer Service at the annual gathering in Charlotte, N.C.

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.

Information/registration: beenegarter. com/taxtips. JUN 19 ISM Greater GR/SME/APICS GR Chapter Golf Outing, Swing for Education. Scott Lake Country Club, Comstock Park. Information/registration: wanda.falk@ms.com/SME members; admin@apics-gr.org/APICS members; tcole4133@hotmail.com/ISM members. JUN 24-25 Davenport University’s Institute for Professional Excellence workshop, “Leadership for Performance: Further Your Ability to Lead Others, Gets Things Done and Obtain Results.” 9 a.m.-5 p.m. both days, 45 Ottawa Ave. NW. Cost: $1,595. Information/registration: davenport.edu/ipex. JUN 30 SCORE Grand Rapids/FranNet of West Michigan Focus on Franchising Summer Series: “Doing Your Due Diligence.” Noon-1 p.m., Northwood University, 515 Michigan St. NE, Suite 1000. Cost: free. Information/registration: grandrapids.score.org/localworkshops.

MEETINGS & CONVENTIONS Information: Janet Korn, (616) 2333545 or jkorn@experiencegrandrapids. org. MAY 20-22 Police Officers Association of Michigan 2015 Annual 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 MAY 18, 2015

CONSTRUCTION EMPLOYMENT

Anirban Basu

Nonresidential construction bounces back with broader economy

he U.S. construction industry added 45,000 jobs in April according to the May 8 Bureau of Labor Statistics preliminary estimate. March’s estimate was revised downward from -1,000 to -9,000 net new jobs. Nonresidential construction employment increased by 12,400 jobs in April, with nonresidential specialty trade contractors leading the way with 20,200 new jobs. Nonresidential building employment plummeted for the month, losing 7,800 jobs. The residential sector bounced back in April, adding 23,600 jobs. While the broader jobs report proved better than expected, April was the best month for construction employment since January 2014. Though it may have been expected to see solid job creation performance reﬂected in the re-

port, it is still a relief to obtain a nice piece of data. Economic data regarding retail sales, industrial production and other elements of economic life have largely been disappointing to date, and the March jobs report fell in line with that series of uninspired results. Data regarding unemployment claims strongly suggested employers viewed the recent bout of economic weakness as temporary. The lack of new layoff activity indicates an ongoing demand for labor, and April’s reasonably strong employment gains suggest many employers continue to search for additional staffing. After losing 9,000 jobs in March, the 45,000 jobs gain posted in April exceed all expectations. Construction spending should expand in the coming months as projects that

MORTGAGES

Selected mortgages filed with Kent County Register of Deeds KOZLOWSKI, Patrick Trust et al, Huntington National Bank, Sunset Hills Estates No. 2, Lot 40, $205,000 SAWINSKI, Bruce W. et al, Towne Mortgage Co., The Village, Lot 14, $231,725 3096 NORTHRIDGE LLC, Mercantile Bank Of Michigan, Walker, 4-7-12, $300,000 COLEMAN, Kenneth L. et al, Lake Michigan Credit Union, Condo-Thousand Oaks, $331,494 GUTIERREZ, David M. et al, Founders Bank & Trust, Condo-Ryann Ridge, $308,000 YOUNGS, Gary Lee et al, Macatawa Bank, Grattan Twp., 15-8-9, $256,500 CUPPLES, Jason et al, Founders Bank & Trust, Condo-Carlisle Crossings Site Condominiums, $280,250 POKORZYNSKI, Richard A. et al, Independent Bank, Myers Lake Park, Lot 2, $215,500 JACOBY, Carrie et al, Wells Fargo Bank, Meyering Lake Drive Est Sub., Lot 239, $431,250 JJ-DR PROPERTIES LLC, Fifth Third Bank, Rockford, $235,000 WASELEWSKY, Ryan et al, Grand River Bank, Ada Twp., 21-7-10, $440,000 GIBSON, Robert et al, Macatawa Bank, Condo-Thousand Oaks, $360,000 BENNETT, Amy L. Trust et al, JP Morgan Chase Bank, Condo-Flowers Mills, $250,000 PYPER, Joel T. et al, Mercantile Bank Of Michigan, Walker, 5-7-12, $365,000 CADENA, Casey W. et al, Founders Bank & Trust, Forest Hills Road Plat, Lot 7, $201,875 TOPLIFFE, Elizabeth M. et al, Founders Bank & Trust, Condo-West Village Site Condo, $238,000 SIETSEMA, Josh M. et al, Pacific Union Financial, Condo-Stevens Pointe, $247,435 PLANTINGA, Eric et al, Northpointe Bank, Grand Rapids Twp., 13-7-11, $229,600 OEVERMAN, Randall L. et al, Lake Michigan Credit Union, Byron Twp., 21-5-12, $249,000 900 CHERRY LLC, Huntington National Bank, Barclay & Co.’s Add., Lot 29, $275,000 PRICE, James et al, Lakeview Loan Servicing, Hillside Estates No. 2, Lot 65, $201,038 SCHUT, Ryan C. et al, JP Morgan Chase Bank, Bella Vista Shores No. 2, Lot 52, $288,550 BLOCK, Matt et al, Gold Star Mortgage Financial Group Corp., Planters Row, Lot 2, $238,000 MASIMUKKU, Subramanyeswara et al,

were delayed during winter come to fruition. The national unemployment rate inched down to 5.4 percent in April. While shedding a 10th of a percent is nothing remarkable in its own right, the falling unemployment rate looks significantly better when you consider the labor force added 166,000 new workers in April. The labor force participation rate inched up to 62.8 percent in April. The construction unemployment rate fell to 7.5 percent in April, a 2 percent decrease from March. The falling construction unemployment rate suggests that construction activity may finally be rebounding from the winter lull. The lone underperforming segment in April was mining and logging, which lost 15,000 net jobs. The sector has now lost jobs in

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each of the year’s first four months after gaining jobs in every month of 2014. Mining and logging has lost more jobs during the first quarter of this year (-48,000) than it added in all of 2014 (+42,000), a direct result of the plummeting oil prices. While the loss of mining and logging jobs isn’t necessarily a good thing for the economy, it has likely had a beneficial effect on construction employment. Displaced mining and logging workers are likely finding employment in the construction industry, which has experienced sharp regional labor shortages in the past few years. This may be the cause of the 2 percent decrease in the construction unemployment rate. •Nonresidential building construction employment fell by 7,800 jobs for the month but is up by 16,600 jobs or 2.4 percent since April 2014.

•Residential building construction employment expanded by 2,800 jobs in April and is up by 41,200 jobs or 6.3 percent on an annual basis. •Nonresidential specialty trade contractors added 20,200 jobs for the month and employment in that category is up by 76,400 jobs or 3.5 percent from the same time one year ago. •Residential specialty trade contractors added 20,800 net new jobs in April and have added 102,400 jobs or 6.8 percent since April 2014. •The heavy and civil engineering construction segment added 8,400 jobs in April, and employment is up by 33,100 positions or 3.6 percent on a year-over-year basis. Anirban Basu is chief economist for Associated Builders and Contractors.

Point Gainers & Losers

% Gainers & Losers

Whirlpool Corp. .................................+8.82

Whirlpool Corp. ............................... +4.9%

Perrigo Co. ...........................................+3.92

Flagstar Bancorp Inc .......................+3.8%

JPMorgan Chase Co. ........................+1.60

Huntington Bancshares Inc. ........+2.9%

Universal Forest Products Inc. ..... +1.25

JPMorgan Chase Co. .......................+2.5%

Comerica Inc. .....................................+1.60

Universal Forest Products Inc. ....+2.3%

DTE Energy Co. .................................... -.76

HCB Financial Corp. ........................ -2.1%

Chemical Financial Corp. .................. -.47

Chemical Financial Corp. ............... -1.5%

HCB Financial Corp. ...........................-.45

CMS Energy Corp. ............................ -1.2%

CMS Energy Corp. ...............................-.40

Mercantile Bank Corp. ......................-1.1%

Mercantile Bank Corp. ........................-.22

Independent Bank Corp. .................-1.1%

$0.06 dividend paid in June, September, December and March.

United Wholesale Mortgage, Condo-Ada Moorings, $264,000 CRITTENDEN, Dylan W. et al, Clark Financial Group, Courtland Twp., 17-9-10, $218,405 MANDSAGER, Matthew David et al, Jacques, Gaines Twp., 26-5-11, $360,000 DENYES, Tanya S. et al, Lake Michigan Credit Union, Northdale Estates No. 3, Lot 53, $246,000 O’NEILL, Cameron E. et al, Independent Bank, Grattan Twp., 18-8-9, $228,800 FRY, Stephen C. et al, Evolve Bank & Trust, Condo-Flowers Crossing, $345,800 MULDER, Brian et al, Lake Michigan Credit Union, Condo-Copper Ridge, $450,000 FENNEMA, Chad et al, Gateway Funding Diversified Mortgage Services, Byron Twp., 23-5-12, $215,404 SALTANDLIGHT LLC, The Bank Of Holland, Gaines Twp., 28-5-11, $308,000 POTTER, Theresa K. et al, Lake Michigan Credit Union, Condo-Koinonia Woods, $292,000 ZUKE, Scott B. et al, Founders Bank & Trust, Forest Hills No. 10, Lot 320, $271,800 MCMILLIAN, Ronnie P. et al, Lake Michigan Credit Union, Canaltown Woods II, Lot 69, $240,791 MEINKE, Kenneth James et al, Independent Bank, Condo-Woods Of Evergreen Lake, $264,000 OSTRANDER, Roger G. et al, Talmer Bank &

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Trust, Condo-Woods Of Evergreen Lake, $222,755 BULTEMA, Steven et al, Lake Michigan Credit Union, Cannon Farms, Lot 15, $214,249 SCROGGS TRUST, AmeriFirst Financial Corp., Condo-Wellington Ridge, $245,000 DOUGLAS, James et al, AmeriFirst Financial Corp., Ravenswood Plat, Lot 265, $231,500 VINOD, Sheeba et al, Lake Michigan Credit Union, Condo-Aberdeen Valley, $232,800 BANERJEE, Shreya P. et al, Wells Fargo Bank, Cascade Highlands No. 5, Lot 110, $241,600 LANHAM, Kimberly et al, Macatawa Bank, Condo-43 North, $301,141 JIM TIBBE HOMES LLC, Macatawa Bank, Condo-River Isle, $354,666 MULDER, Stacy et al, Mulder, Condo-River House At Bridgewater Place, $225,000 BANS, Himmat S. et al, Fifth Third Mortgage, Condo-Avalon Pointe Condominiums, $227,050 PRINDIVILLE, Jeffrey et al, Lake Michigan Credit Union, Cascade Twp., 12-6-10, $212,415 MANKOFF, Daniel Mark et al, Founders Bank & Trust, Condo-Cielo Condominium, $810,400 BROWN, Kenneth M. et al, Founders Bank & Trust, Pyne Point, Lot 22, $263,920 WOHLSCHEID, James William et al, American Financial Resources, Cascade Twp., 22-6-10, $213,887 MCCARTHY, Donald et al, Lake Michigan Credit Union, Condo-Hillside Condominiums At Thousand Oaks, $323,831 RAYMAN, Shaun et al, Heartland Home Mortgage, Condo-Arbor Hills Site Condominiums, $305,900 CLARK, Darin B. et al, Huntington National Bank, Byron Lake Estates East No. 2, Lot 49, $417,000 BELL, Meredith et al, Huntington National Bank, Hampshire Park, Lot 42, $225,000 KELLY, John et al, CBC National Bank, DelMar Farm No. 3, Lot 95, $266,000 RYAN, Kenneth L. et al, Quicken Loans, Condo-Olde Rhoades Meadow Condominiums, $265,475 MACDONALD, David D. et al, Huntington National Bank, Raymond Park Add., Lot 8, $237,600 HANNINK, John C. et al, Talmer Bank & Trust, Condo-Snowberry, $304,900 YSASI, Andrew R. et al, AAC Credit Union, Elmridge Estates No. 6, Lot 135, $261,900 KENNEDY, Kamette N. et al, Talmer Bank & Trust, Condo-Cannon Highlands, $360,905 DICKEY, Jeffrey et al, Northern Mortgage Services, Condo-Carlisle Crossings Site Condominiums, $275,100 PEOPLE SPACE LLC, My Personal Credit Union, Lincoln Plat, Lot 10, $294,750 EBELING, Ross O. et al, PNC Mortgage, Condo-Stone Crest Site Condominium, $209,700

BILBREY, Craig et al, Lake Michigan Credit Union, Ravenswood Plat, Lot 96, $340,000 HILGER, Adam R. et al, United Wholesale Mortgage, Cannon Farms No. 3, Lot 57, $213,750 ALLES, Steven E. et al, New Executive Mortgage, Condo-Saddle Ridge, $266,012 GRONDIN, Todd et al, AmeriFirst Financial Corp., Hartman Estates, Lot 28, $206,196 MURPHY, Matthew et al, MMS Mortgage Services, Beyhill Plat No. 2, Lot 53, $272,365 MONSEWICZ, Edward et al, AmeriFirst Financial Corp., Condo-Ridge Water Estates II, $206,196 WHITAKER, Russell P. et al, Independent Bank, Forest Meadows No. 2, Lot 77, $208,000 BOSMA, Sandra et al, Lake Michigan Credit Union, Planters Row No. 2, Lot 77, $215,460 HALE, Stephen et al, Independent Bank, Condo-Storeybook, $380,000 COON, Brian R. et al, Independent Bank, Condo-Waterleaf Site Condominiums, $531,000 THOME, Steven J. et al, ChoiceOne Bank, Alpine Twp., 15-8-12, $810,000 BARIC, Dario et al, Lake Michigan Credit Union, Cascade Twp., 3-6-10, $216,600 BIRCHMEIER, David John et al, PNC Mortgage, The Orchards No. 5, Lot 137, $310,500 BLAZON, Gabriel Lewis et al, MMS Mortgage Services, Plainfield Twp., 19-8-11, $261,504 CROSS, Russell et al, Northpointe Bank, Condo-Summerset Meadows, $309,000 ZUKE, Scott B. et al, Founders Bank & Trust, Condo-Winterwood, $440,000 NOWAK, Lauren et al, Founders Bank & Trust, Condo-Ada Moorings, $307,920 PATTERSON, Michael J. et al, Lake Michigan Credit Union, Caledonia Twp., 9-5-10, $216,500 NEWHOF, Craig T. Trust et al, Huntington National Bank, Gaines Twp., 28-5-11, $403,500 SCHAD, Brandon et al, Founders Bank & Trust, East Grand Rapids, 3-6-11, $322,000 GOHEL, Elizabeth J. et al, Associated Bank, Judd’s Sub., Lot 59, $310,000 MURPHY, William B. et al, Fifth Third Mortgage, Ottawa Hills No. 2, Lot 304, $322,000 JESTVA HOLDINGS LLC, Chemical Bank, Solon Twp., 34-10-11, $500,000 LOWMAN, Katelyn et al, Lake Michigan Credit Union, Planters Row No. 6, Lot 195, $252,800 KRESS, Brandon R. et al, Sunrise Family Credit Union, Northdale Estates No. 3, Lot 54, $259,920 FREEMAN, Joel et al, MB Financial Bank, Condo-Fairbanks Estates Site Condominium, $296,100 WORSFOLD, John et al, Macatawa Bank, Somerville Plat, Lot 6, $225,000 LEEMAN, Todd R. et al, Macatawa Bank,

Condo-43 North, $433,833

BANKRUPTCY

15-01923 – KRUIS, Jack A. & Debra K., 6558 Summer Shores Drive SE, Timothy F. Johnson (Ch. 7) 15-01926 – WEEKS, Aubrey J., 5018 Brookgate, Comstock Park, Jody Jernigan (Ch. 7) 15-01932 – FISH, Kevin T., 11899 Sandy Oak Court, Cedar Springs, Timothy F. Johnson (Ch. 7) 15-01942 – RADEN, Evan R., 1443 Carlton NE, Carol J. Chase (Ch. 7) 15-01950 – SITH, James R., 575 Sheldon SE, Greg J. Ekdahl (Ch. 7) 15-01960 – BUZZITTA, Michael C. & Kacie J., 820 Ariebill, Wyoming, Jeffrey D. Mapes (Ch. 7) 15-01984 – AVERY, Peter M., 15040 Whitbeck, Cedar Springs, John W. Raven (Ch. 7) 15-01991 – JOHNSON, Jennifer K. 150 Majestic SE, Kentwood, pro se (Ch. 7) 15-01992 – SCHNEIDER, John R. II & Madelene L., 1019 Helen NE, pro se (Ch. 13) 15-02005 – BROWN, Eric D., 4266 Turtle Bend, Grandville, Ralph M. Reisinger (Ch. 13) 15-02015 – BUSCHER, Rolland W. Jr., 1139 34th St. SW, Wyoming, James R. Oppenhuizen (Ch. 7) 15-02018 – PIATT, Jeff S. & Luann F., 11659 Berrigan, Cedar Springs, Mary S. Cohn (Ch. 7) 15-02020 – BELKNAP, Valerie J., 544 Bellewood SE, David C.. Andersen (Ch. 7) 15-02021 – JONES, Darrell P., 1816 Linden SE, Eliot A. Sasson (Ch. 7) 15-02024 – REYES, Axel, 3723 Roma Lane NE, Eliot A. Sasson (Ch. 7) 15-02040 – LNENICKA, Brandy, 4543 Buchanan SW, Wyoming, Christian G. Krupp II (Ch. 7) 15-02042 – BUTELA, David W., 805 2nd NW, Nicholas A. Reyna (Ch. 7) 15-02043 – HARDIES, Richard N., 961 Alpine, Nicholas A. Reyna (Ch. 7) 15-02063 – JARRETT, William E., 2751 Woodlake Road, Wyoming, Judith A. Hearn (Ch. 7) 15-02068 – PAIZ, Mary J., 1143 Lee SW, Wyoming, Jeffrey D. Mapes (Ch. 7) 15-02073 – ANGIANO-BADEA, Jessica, 57 National NW, Greg J. Ekdahl (Ch. 7) 15-02081 – FISK, Bethany R., 289 Anderson, Sparta, Jody Jernigan (Ch. 13) 15-02090 – NATHAN, Felicia, 1800 Mason, Kelly G. Lambert III (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 MAY 18, 2015 GRAND RAPIDS BUSINESS JOURNAL 27

Diamonds in the rough Principal feat.

BUSINESS JOURNAL STAFF

intern in our accounting department.” LEAD students employed by companies like Warner Norcross go through specialized pre-employment training facilitated by OCC. This training includes lessons in civic engagement, leadership and employability skills such as résumé and cover letter writing and interview techniques. They also learn about appropriate work attire, stress management and financial literacy. Following the training, Mayor’s 100 businesses interview and hire the students at their discretion. These individuals are then employed for six months or 150 hours. “We have definitely been impressed with the caliber of students, with everything from polished résumés, professionalism during interviews, hard working and willingness to learn,” said Sharon Darby, senior manager at Cascade Engineering. “Each student is a diamond in the rough to us, just waiting to get an opportunity to shine. It is very gratifying to see them grow and gain confidence in their abilities through their employment period.” Businesses and organizations currently signed on for the campaign include the city of Grand Rapids, Terryberry, Grand Rapids Label, Salvation Army Kroc Center, Mercantile Bank, Express Employment Professionals, Denison Financial and SMG/DeVos Place. A major selling point for these organizations is that the city shares the cost of employing the

verybody is looking for that first big break. Now, business owners in West Michigan have an opportunity to provide it. Grand Rapids Mayor George Heartwell is looking for more organizations to join his youth employment initiative, which this year has expanded to include 100 “partners.” The Mayor’s 100 Campaign gives local businesses an opportunity to offer young people who participate in the Leadership and Employment, Achievement and Direction (LEAD) program meaningful, paid employment. The city and Our Community’s Children are seeking additional businesses to join the initiative. Current Mayor’s 100 businesses include Warner Norcross & Judd, Cascade Engineering and SMG/DeVos Place, among others. “Warner Norcross is proud to be associated with the Mayor’s 100 Campaign and to support providing meaningful employment opportunities for young people who may not have had much exposure to a professional work environment,” said Cheryl Coutchie, director of human resources at the law firm. “The training the students receive prior to their work experience is impressive and helps facilitate their transition into the workplace. This summer, we will welcome back a graduate of the Mayor’s 100 program who worked with us during high school and returns this summer as a college

students 50/50. “SMG Entertainment signed on to the Mayor’s 100 Campaign when it was first rolled out five years ago, and it was a win-win proposition in that there is the salary cost-sharing,” said Eddie Tadlock, assistant general manager at SMG/DeVos Place. “But more importantly, the campaign and the LEAD program give young people the opportunity to get engaged in the workplace sooner rather than later so they can find out what the real world is like. And oftentimes, the student employees we get really grow into the positions they are assigned to work — so much so that we have six current LEAD student employees who we hired on to work with us after their initial employment period was finished.” Businesses interested in joining the program can contact Lynn Heemstra at (616) 456-4353. Proven partners One business already on its way to providing meaningful work experiences to high school students is Open Systems Technologies. “Educators and businesses have a unique opportunity to solve a global epidemic — many students lack basic skills such as communication, problem solving and critical thinking,” said Meredith Bronk, CEO and President of OST. “No matter what industry you are in, these three areas are crucial to success. The timing is ripe for an innovative, human-centered approach, but it must be done col-

laboratively in order to find solutions that will lead to successful outcomes for the next generation of students entering the workforce.” That perspective helped the Grand Rapids-based international technology company earn the Employer Partner of the Year award from Kent ISD’s Career Readiness Program. OST will be recognized during an employer appreciation breakfast 8-9 a.m., Tuesday, May 19, at Grand Rapids Downtown Market. Michigan Works! also will receive an award, for Community Partner of the Year. OST has provided mentors and job shadow experiences for students interested in entering the field. The company also has taken part in Kent ISD’s Teachers in Industry series, aimed at connecting with educators and helping them become more aware of trends and labor market needs and industry practices, has hosted school tours and serves on the board of the West Michigan Tech Talent Team, which is focused on building the talent pipeline early. “OST understands how crucial it is to connect businesses and educators early in order to keep our students at the top of employers’ go-to lists,” said Jarrad Grandy, director of career readiness. “When we listen to what employers tell us about the skills they need and we adjust our programs to meet those needs, our students graduate ready to work, and those employers have the talent they require to keep up with the demands of their industries.” The aim of Kent ISD’s Career Readiness Program is to help students be aware of and prepare for careers, particularly in fields that struggle to attract skilled talent. Head of the class As principal at Kent Career Tech Center, John Kraus leads a more

than 100-member staff for more than 20 career-focused programs. He also oversees the education of some 2,400 students on the center’s campus and four satellite sites. In the four years he’s been at the helm of the Tech Center, the Akron, Ohio, native has created a leadership team for students and become known as an educator who is willing to partner with area businesses to meet the need for skilled employees. Kraus has been named the 2015 Career and Technical Education Administrator of the Year by the Michigan Association of Secondary School Principals. He was surprised with the award Friday, May 8, by Colin Ripmaster, associate executive director of MASSP. “John has done so much in his short tenure here,” said Kent ISD Superintendent Kevin Konarska. “He’s connected students and staff, and morale has never been higher. The whole atmosphere at the Tech Center has been transformed. He’s brought in the business community and colleges, and is constantly seeking opportunities for students. His leadership is a real benefit for Kent ISD and the broader community.” Kraus was selected for the award, given annually for more than a decade, because “it was clear to the selection committee that he is not only a visionary, but also someone who’s not afraid to roll up his sleeves and get the job done,” said MASSP Executive Director Wendy Zdeb-Roper. “John’s energy and positive spirit have earned him the overwhelming respect and trust of his staff, students, colleagues and the community; and in today’s educational landscape, this speaks volumes of both his character and ability,” she said. “John is the epitome of what an effective leader should be and is very deserving of this honor.”

ICCF T ha nks O ur Gala 2015 Spo n sor s !

Grand Sponsors

ICCF

Inner City Christian Federation Making places to come home to.

Benefactors Cate & Sid Jansma, Jr.

Mike & Gayle VanGessel

Champions

Patrons Ada Bible Church Baker Book House Jonathan & Grace Bradford Buiten & Associates Insurance Bill & Annette Byl John & Linda Carman Chemical Bank Community Automotive Repair

Friends

ARC Document Solutions Brian Boven, Realtor Bultema Group John & Debra Byl John & Elaine Carrington Jeff & Pam Clark Comerica Bank Costco Wholesale Cottage Home

DK Security Feyen-Zylstra Fifth-Third Bank Genesis Non-Profit Housing Corp. The Green Well Jeff & Karyn Hoeksema Dave & Barb Huyser Duane & Jeannette Kelderman Kennari Consulting

Ted & Debra Cox Custer DeStigter Architecture & Planning Dominican Sisters - Grand Rapids Ellis Parking Fastco Industries Fence Consultants of West Michigan First American Title First National Bank of Michigan

Bill & Phyllis Krombeen Lake Michigan Credit Union George & Susan Larimore Leisure Living Management Macatawa Bank Scott & Betsy Melton Mercantile Bank National Nail Corp. Old National Bank

Arlen-Dean & Sandra Gaddy Grand Valley Wood Products Janet Haynes Jack Hoffman & Rebecca Smith Hoffman Hotel Furniture Outlet, Holland, MI JP Morgan Chase Mike & Sue Jandernoa Kamp Oil, Inc. Kent Companies

Ben & Pam Krombeen Bryan & LaRissa McKissack Bill & Pat Mills Modern Hardware Monsma Marketing Jerry & Cheryl Nienhuis Old World Olive Co. One Moore Click Photography Jim & Marie Preston

Timothy & Erin Orlebeke PNC Bank Sharpe BMW Ed & Joan Stuursma Universal Forest Products Bill & Pat Wanders Anonymous John Preston & Melissa VanderZyden R & R Mechanical Services True Wind Media John VanOene & Stacy Steen Duff & Ruth VanStee Jeff & Karrie VandenBerge Randy & Twyla VanderLugt Wealthy St. Bakery Williams Distributing Anonymous

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