Grand Rapids Business Journal 06.01.20 by Grand Rapids Business Journal

TEEN USES free time during pandemic to grow streetwear business.

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JUNE 1, 2020 VOL. 38, NO. 20

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

THIS WEEK

FORTIER VALUES CONNECTIONS VP of business development for Hylant West Michigan strives to grow inﬂuence through authentic relationships. Page 12

Salons assemble their game plans Owners and stylists brainstorm safety procedures for reopening a high-touch industry. Rachel Watson

Some salons are considering partitions between chairs, mandatory mask-wearing for stylists and mandatory or recommended mask-wearing for clients, appointment-only services (no walk-ins) and a host of other precautions. Photo by iStock

Everyone wants a haircut, but at what cost? When Gov. Gretchen Whitmer on May 7 unveiled her sixphase MI Safe Start plan for reopening the Michigan economy — a timeline with restrictions in place designed to prevent a

second wave of COVID-19 cases — beauty salons didn’t see their industry specifically listed in the plan. Some salons and barber shops were waiting to see how things played out, with a handful of others reporting they would resume

rwatson@grbj.com

Relief lesson Economic developer saw vast need among local businesses during collaboration, but heard expansion plans, too. PAGE 2

Here to stay Metro Health addressing inefficiencies while increasing preparedness for subsequent COVID waves. PAGE 3

UP AND DOWN Refinancing soars as mortgage loans tumble. Page 9

THE LIST

The area’s top intellectual property law ﬁrms. Page 6

business before being given the all-clear, defying state law and risking shutdown and misdemeanor charges. Stylists and owners from a pair of local salons were more circumspect, speaking to the Business Journal about the waiting

game in late May. They still had not heard word from Whitmer or the Michigan Board of Cosmetology about the reopening timeline and what safety rules would be in place. As of May 19, Whitmer had CONTINUED ON PAGE 8

USDA taps food service suppliers Four West Michigan firms will sell a combined $38.6M in products as part of program. Danielle Nelson

dnelson@grbj.com

The U.S. Department of Agriculture has awarded contracts under the Farmers to Families Food Box Program to four West Michigan food suppliers to purchase and distribute produce, dairy and meat products to different

food banks, communities and organizations. Gordon Food Service in Wyoming, Heeren LLC in Comstock Park, Van Eerden Foodservice in Grand Rapids and VanSolkema Produce of GA LLC in Byron Center are among numerous food suppliers around the country that have won USDA bids and will have up to $3 billion of their food items purchased. According to the USDA’s Agricultural Marketing Service, about $2.3 million worth of dairy products and $3.3 million worth of fruits and vegetable will be CONTINUED ON PAGE 8

One of the products Gordon Food Service will be supplying to the USDA is romaine lettuce. Courtesy Gordon Food Service

Inside Track ...... 12 Guest Columns.. 14 Gift of slow times

PANDEMIC can’t stop new cannabis business.

Change-Ups ...... 16 Calendar ........... 16 Public Record .... 17 Street Talk ...... 18

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GRAND RAPIDS BUSINESS JOURNAL

JUNE 1, 2020

Right Place learns from small business relief collaboration Economic developer saw vast need among local businesses, but heard expansion plans, too. Ehren Wynder

ewynder@grbj.com

During a meeting of the Kent County COVID-19 relief subcommittee, The Right Place Inc. presented an overview of the its

Small Business Grant program as well as an update to its own COVID-19 response. According to an earlier Business Journal report, Right Place in late March received $1 million in grant funding from the Michigan Economic Development Corp. to distribute over an 11-county area. The amount came in under Right Place’s requested $1.5 million. The eligible area included Barry, Ionia, Kent, Lake, Mason, Mecosta, Montcalm, Muskegon, Newaygo, Oceana and Osceola

counties. The allocation for Kent County was $615,700, or about 62% of the funding, said Tim Mroz, Right Place senior vice president of strategic initiatives, and added the allocation was made specifically by the MEDC. In terms of a response, Right Place was surprised to receive 3,300 applications in just four days, amounting to over $71 million. “After we separated everything by county, Kent County received about 3,500 emails, which

totaled about 2,600 of those … applications,” Mroz said. “To use the word ’inundated’ would be an understatement.” Every county established its own review committee. The review committee for Kent County consisted of representatives from Right Place, Grand Rapids Chamber, Local First, Downtown Grand Rapids Inc., West Michigan Hispanic Chamber, Grand Rapids Area Black Businesses and other local interest groups. “Each one of them graded at least 278 applications individu-

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ally,” Mroz said. “To eliminate bias, each application was graded multiple times by multiple people, and then those scores were averaged.” Ultimately, 62 grants of up to $10,000 were awarded to Kent County companies, totaling about $615,000. “These were not to stabilize the business at all,” Mroz said. “This was an emergency short-term injection of up to $10,000 per business, just to get them through the next couple of months.” The application from the MEDC did not indicate a checkbox for applicants to declare whether they were minority- or women-owned. Mroz said Right Place was warned to be careful with earmarking public funds for such designations. Nonetheless, Mroz was proud to say 35% of the 62 grants were awarded to either minority- or women-owned businesses. Mroz said Right Place conservatively estimated it put in just over 650 hours, or $72,000 worth of work into the program for the 30 days it was active, with an internal team of 11 people. Commissioner Jim Talen asked Right Place if it would run the program again if it had a new pot of money with money for additional administrative costs. Right Place President and CEO Birgit Klohs bluntly said no, arguing the task was outside of the organization’s core competency. “We were honored to do this because the governor asked, the MEDC asked, but giving grants to a small beauty parlor in Newaygo is really not where we are good,” Klohs said. “Would it have been something we’d have taken on without the MEDC? Probably not.” Klohs said the Grand Rapids Chamber is the go-to small business organization, and it already has raised $1.3 million privately. “Our core competency is making sure the manufacturers, IT companies, food processors stay in business so they can provide the jobs that eventually feed into the fact that you can go shop at the Cheese Lady on Fuller,” Klohs said. She added, however, Right Place collaborated extremely well with the chamber through the grant process. With regard to the $70 million in grant requests Right Place could not serve because of limited funds, the organization made sure there was a pipeline through which businesses that missed out on the MEDC grant could receive assistance from the chamber. “The state had $10 million for all 10 regions, and if you think about that we had $71 million of requests, there’s still a great need out there,” Klohs said. To kick off her update to Right Place’s COVID response, Klohs gave the dire figure that the unemployment rate in Michigan was 22.5% at press time, but Klohs also revealed Kent County still is seeing expansions and inquiries for expansions. The organization recently announced medical device packaging engineering firm Packaging CONTINUED ON PAGE 17

GRAND RAPIDS BUSINESS JOURNAL

JUNE 1, 2020

Teen uses free time during pandemic to grow streetwear business Eion Jackson expanded JCKS Apparel after losing his job, school and baseball season due to COVID-19. Rachel Watson

rwatson@grbj.com

A local youth began pouring his passion into his e-commerce clothing business when COVID-19 put life on pause in March. Eion Jackson, 17, is founder and owner of JCKS Apparel. He began making clothing for himself and his friends about two years ago, and in August 2019, he launched a retail website, jcksap parel.com. When the pandemic hit Michigan, like other teenagers, he lost all of the activities that were keeping him occupied. Jackson last month completed via distance learning his junior year at Hudsonville High School. A sports aficionado, he had been playing baseball for much of his life with a dream of joining the school’s varsity team. On March 13, the last day of baseball tryouts, his dream came true, but the excitement was short-lived. That same day, the school announced its closure due to COVID-19, canceling the spring sports season. Soon after, he lost his part-time job at Rebounderz, a trampoline park in Jenison, due to the shutdown order. Rather than sulk about his sit-

uation, Jackson found a way to capitalize on his time at home. He has long been a passionate adventurer and lover of travel, which is part of why he launched his apparel brand with funding support from his parents. His products include T-shirts, sweatshirts, hoodies, swimwear, hats and accessories such as lanyards, stickers and fanny packs — all of which have a theme of exploration and travel. “I’ve always been really creative, and I recently have been getting more into fashion, so I thought, ‘Why not make a brand?’ Me and my family travel lot, and it really inspired me to try to make more people want to travel and explore,” he said. “I feel like too many people stay home, and they miss out on a lot in the world. I want more people to see what’s out there,” he added, noting the clothing can help people express their dreams, even if they are on hold right now during COVID. Some of the highlights of his life so far have included experiencing the different cultures and pace of life in European countries such as France, Belgium and the Netherlands, he said. Jackson — who is self-taught — makes all of the designs that are featured on his apparel using software on his phone and computer, and he hired a contract manufacturer with locations in Los Angeles, North Carolina, Mexico and Europe to produce the clothing. Missy Jackson, Eion Jackson’s mother, is a managing partner at The Vantage Group, a business consulting firm in Grand Rapids. While she said she has assisted

her son “here and there,” he has “a natural talent” for running a business. “There’s a popular business model called The Five Ps, which focuses on a company’s top five priorities (purpose, people, pace, perception and profit). With little knowledge of this model, he’s successfully executing all five of these priorities,” Missy Jackson said. “Some of the greatest business minds have a hard time following these steps, and a 17-yearold, when he took time to focus, implemented them and is thriving.” She added one of the main reasons he has been successful is that he didn’t start with a focus on profits; he instead focused on creating brand recognition and continuing his passion. Jackson began pouring time into social media marketing and growing his fan base on Instagram and Facebook as soon as school and sports were canceled. And business quickly started to boom. Before the pandemic hit, he had sold products in three states. As of late May, he had seen a 100% increase in revenue and sold items in 17 states and counting, as well as Puerto Rico. Jackson’s target demographic for the streetwear brand is teenagers to age 30, but he said he would love to see sales in any age group. The average price point for a T-shirt at jcksapparel.com is about $30, and hoodies sell for about $55 on average. Jackson also added PPE face masks to his online store, which have proved to be a popular item.

Jackson makes all of the designs that are featured on his apparel using software on his phone and computer, and he hired a contract manufacturer with locations in Los Angeles, North Carolina, Mexico and Europe to produce the clothing. Courtesy Eion Jackson

Pandemic can’t stop new cannabis business Metro Health doctor: PharmHouse Wellness COVID not going away shifts to delivery and curbside service four days after opening. Danielle Nelson

dnelson@grbj.com

While most locally owned businesses have an established presence in Grand Rapids and are

known among residents, Casey Kornoelje has not been so fortunate. Kornoelje had to both introduce his new business, PharmHouse Wellness, to the community and quickly adapt to the new normal just days before Gov. Gretchen Whitmer instituted the executive stay-at-home order. “It was a long journey to get the doors open, four days before the state lockdown,” he said. “We were not anticipating doing curb-

The store offers different types of marijuana flowers, vape cartridges, topicals, tinctures and edibles like gummies, cookies, mints and chocolate. Courtesy Roberta King

side (pick-up), we were not anticipating doing deliveries to your home, like a pizza delivery service, but right now the business is exclusively those two forms of service. Both of those were not a part of our business plan and now we can’t have consumers into the store for face-to-face transactions, so we have to adapt our business model and shift to these other avenues to delivering medication cannabis to patients.” PharmHouse Wellness, 831 Wealthy St. SW, in Grand Rapids, has seven employees and Kornoelje is in the process of hiring two or three more. Since the store has been open, Kornoelje said they average about 50 to 100 customers per day. His mother, Patti Kornoelje, spearheads the delivery schedule and provides delivery services, making five to 10 deliveries to patients’ homes per day. “It has been a learning experience,” Patti Kornoelje said. “I wasn’t all that excited when Casey told me he was going into the marijuana business. But I could see that it ignited him, and he deserves my support. I’ve learned a lot working for him and met so many good people.” Kornoelje has been a medi-

CONTINUED ON PAGE 17

System is addressing inefficiencies while increasing preparedness for subsequent waves. Ehren Wynder

ewynder@grbj.com

Metro Health delivered on a tall order after COVID-19 laid bare inefficiencies in the state and national health care systems, but with Gov. Gretchen Whitmer’s executive order set to lift June 12, the local health care system warns Michigan is not out of the woods yet. Dr. Raki Pai, cardiologist, chief population health officer and president of the medical group at Metro Health – University of Michigan Health, said when COVID-19 came to the U.S., it was a harsh wakeup call for health care systems’ regular operations. “I think we thought, and the President (Donald Trump) for a while thought, COVID won’t hit

us here,” Pai said. “This may have been the thinking in January, and we found out that wasn’t true.” The main impact on Metro Health, Pai said, was COVID preparedness, including gathering PPE, ventilators, hospital beds, sedatives and any other necessary equipment for a potential resurgence of the virus. “All of that COVID planning was an unanticipated cost,” Pai said. “It definitely impacted health system economics. Also, Gov. Whitmer — who I absolutely respect with regard to the shelter-in-place order — but that made the month of April the worst for us.” After Whitmer’s shelter-inplace order, which took effect mid-March and required all designated nonessential businesses to close while essential businesses could operate with restrictions, Metro Health was forced to close several clinics and accelerate its digital health care strategy. “It really was taking a pretty good, well-working machine CONTINUED ON PAGE 13

GRAND RAPIDS BUSINESS JOURNAL LAUNCHES FULL SUITE OF NEW DIGITAL INITIATIVES

Dear Friends of Grand Rapids Business Journal, As we near the 37th Anniversary of the Grand Rapids Business Journal, and as we begin to turn the page on this chapter of self-quarantine, we are excited to share with you the launch of a significant new digital initiative. Starting June 1, Grand Rapids Business Journal will introduce “The Grand Rapids Business Journal Digital Studio” — a full-service suite of digital services including Google Display and Programmatic Advertising, Paid Social Media Advertising, Search Engine Optimization (SEO), Search Engine Marketing (SEM), Website Remarketing, Video and OTT Advertising, Digital Radio Advertising, Custom Email Marketing and Digital Consultation. This full suite of digital initiatives will serve as the perfect complement to our already fast-growing digital audience via grbj.com and the proprietary digital offerings we’ve been providing such as digital sponsored content, sponsored social media, custom email blasts and a suite of digital newsletters. GRBJ’s digital audience has far exceeded our expectations and is growing rapidly by the day. These digital offerings will address all types of businesses and industry segments including home, travel, health care, retail, education, business-to-business, financial, services, arts, nonprofit, food and beverage, dining and much more. Our sales, marketing and digital teams are eager to begin discussions with you on your current digital marketing objectives and stand ready to consult with you and customize a digital-first strategy that will improve ROI and deliver specific, measurable results for your business. While the Grand Rapids Business Journal and our entire family of publications remain committed to telling stories in our print editions, we know how important your digital strategy is to your overall business success and we are excited to come alongside you and partner on these new initiatives. Reach out to us if you would like to know more. We will be happy to provide a complimentary needs assessment to you in the coming weeks. Email me at jennm@geminipub.com for more information and we will discuss how to get started on your new digital journey. Sincerely,

Jenn Maksimowski Advertising Director Grand Rapids Business Journal | Gemini Media

GRAND RAPIDS BUSINESS JOURNAL

LAUNCHES NEW DIGITAL ADVERTISING SERVICES

Grand Rapids Business Journal has some exciting news!

On June 1, we’ll launch “The Grand Rapids Business Journal” – a full-service suite of digital services including: • Google Display and Programmatic Advertising • Paid Social Media Advertising • Search Engine Optimization (SEO) • Search Engine Marketing (SEM) • Website Remarketing • Video and OTT Advertising • Digital Radio Advertising • Custom Email Marketing • Digital Consultation

These new initiatives will serve as the perfect complement to the digital advertising options currently available on grbj.com and branded social channels reaching our fast growing digital audience. Our team stands ready to consult with you to customize a digital strategy that will • Stand Out • Improve ROI • Deliver Speciﬁc Measurable Results Reach out to us today for a complimentary needs assessment and we’ll discuss how to get you started on your new digital marketing journey

Contact Jenn Maksimowski, Advertising Director at jennm@geminipub.com or 616.459.3210

GRAND RAPIDS BUSINESS JOURNAL

JUNE 1, 2020

THE LIST

Top Area Intellectual Property Law Firms (RANKED BY NUMBER OF INTELLECTUAL PROPERTY LAWYERS IN WEST MICHIGAN) Practice group leader

No. of W. Mich. intellectual property attorneys

Major intellectual property clients

Areas of expertise

Warner Norcross + Judd LLP 1500 Warner Building 150 Ottawa Ave, NW Grand Rapids 49503 p (616) 752-2000 f 752-2500 wnj.com

Chad Kleinheksel

Alticor, Cascade Engineering, Dow, Gentex Corp., Patents, trademarks, copyrights, technology and IP licensing; internet, social Haworth Inc., Ranir LLC, SpartanNash Co., media, privacy and information security; rights of publicity; joint development Spectrum Health, Stryker Corp., Van Andel and nondisclosure agreements; IP due diligence; IP litigation and enforcement Institute, Warrior Sports, Wolverine Worldwide

Price Heneveld LLP 695 Kenmoor Ave. SE Grand Rapids 49546 p (616) 949-9610 f 957-8196 priceheneveld.com

Brian Cheslek

Ford Global Technologies LLC, Whirlpool Patent and trademark prosecution and litigation, trade dress, trade secrets Corporation, Gentex Corporation, Steelcase Inc., and unfair competition Corning Incorporated, NIBCO Inc

Gardner, Linn, Burkhart & Ondersma LLP 2900 Charlevoix Drive SE, Suite 300 Grand Rapids 49546 p (616) 975-5500 f 975-5505 gardner-linn.com

Terence Linn Frederick Burkhart Karl Ondersma Matthew Kendall

Burke Porter Group, Dematic Corp., Byrne Patents, trademarks, copyright, and related issues and litigation Electrical Specialists Inc., Magna Electronics, Sun Bum LLC

Brett A. Krueger

Beaumont Health, Google LLC, Herman Miller Inc., Magna Electronics Inc., Magna Mirrors of America Inc., Neogen, Shape Corp.

Patent, trademark, copyright, trade secrets, IP litigation

McGarry Bair 45 Ottawa Ave. SW, Suite 700 Grand Rapids 49503 p (616) 742-3500 f 742-1010 mcgarrybair.com

DND

Patents, trademarks, copyrights, litigation

Varnum LLP 333 Bridge St. NW Grand Rapids 49504 p (616) 336-6000 f 336-7000 varnumlaw.com

Matt Zimmerman Matt Eugster Charlie Gray Erin Klug

DND

Patent prosecution, U.S. and foreign patent protection, trademarks and copyrights, tech transfers, trade secrets and licensing, joint venture agreements, litigation

Honigman LLP 300 Ottawa Ave. NW, Suite 400 Grand Rapids 49503 p (616) 649-1900 f honigman.com

Barnes & Thornburg LLP 171 Monroe Ave. NW, Suite 1000 Grand Rapids 49503 p (616) 742-3930 f 742-3999 btlaw.com

Julia Gard

DND

Patent, trademark and copyright prosecution; litigation, post-grant review and inter partes review; trademark oppositions and cancellations; and trade secrets

McShane & Bowie PLC 99 Monroe Ave. NW, Suite 1100 Grand Rapids 49503 p (616) 732-5000 f 732-5099 msblaw.com

Michelle Anthes

DND

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

Jennifer A. Puplava

DND

Trademark and copyright protection, registration, licensing and enforcement; counseling regarding trade secrets, data privacy, data protection and security; negotiation, drafting and enforcement of related contracts, policies, terms and conditions and other documents; intellectual property litigation and proceedings in front of the Trademark Trial and Appeals Board

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

Phillip Rettig Leslee Lewis

DND

Kreis, Enderle, Hudgins & Borsos PC 40 Pearl St. NW Grand Rapids 49503 p (616) 254-8400 kreisenderle.com

Elliott Church

Serving clients in the areas of software, Trademarks, copyrights, patents, trade secrets, technology transactions, information systems, manufacturing, insurance, licensing, privacy, software-as-a-service, infrastructure-as-a-service, cloud health care, publishing, retail and more services, unmanned aerial vehicles and related business-formation issues, dispute resolution and litigation

A. Michael Palizzi

Trico Products Corp., Fram Auto, Meritor Inc., Patent prosecution and litigation; trademark counseling, prosecution and FCA, Kiss, Magna Seating Inc., Linamar Corp., infringement litigation; trade secret protection and litigation; copyright Rivian, Ziebart, MacDon Industries Ltd., SkyJack procurement and litigation Inc.

Todd Van Eck

N/A

Miller, Canfield, Paddock & Stone PLC 99 Monroe Ave. NW, Suite 1200 Grand Rapids 49503 p (616) 454-8656 f 776-6322 millercanfield.com 13

Kotz Sangster 40 Pearl St. NW, Suite 400 Grand Rapids 49503 p (616) 552-6400 f 734-6125 kotzsangster.com

Intellectual property, copyrights, patents, trademarks, business technology, ITC section 337 enforcement proceedings, intellectual property litigation, trade secrets

Fortiﬁed privacy Dickinson Wright PLLC earned an ISO/ IEC 27701:2019 certification, becoming the first law firm headquartered in Michigan, and one of the first in the world, to earn the distinction.

National recognition Warner Norcross + Judd LLP and Honigman were recognized by BTI Consulting Group as a “Midsize Heavyweight.”

New shareholders Kreis Enderle’s Bobbi Hines and Nicholas Spigiel were admitted as shareholders. Hines is a member of the firm’s Estate Planning and Elder Law Practice Group. Spigiel is a litigation attorney.

Global group Miller Canfield’s Q. Scott Kaye joined the global law firm’s Financial Services Group. He specializes in bankruptcy, restructuring, corporate, and transactions, mergers and acquisitions, among other things.

Commercial litigation, corporate law, financial services, real estate, family law, trusts and estates, construction law, environmental, labor and employment law

The Grand Rapids Business Journal list of top area intellectual property law firms, ranked by number of intellectual property lawyers in West Michigan, is the most comprehensive available. The Business Journal defines "West Michigan" as Allegan, Kent, Ottawa and Muskegon counties. The Business Journal surveyed 159 law firms; 13 responded and 13 are listed. To be considered for future lists, email dnelson@grbj.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.

GRAND RAPIDS BUSINESS JOURNAL

JUNE 1, 2020

Pandemic prompts plenty of new trademark requests But attorney says most will be rejected due to commonplace usage, not brand strength. Danielle Nelson

dnelson@grbj.com

Although the coronavirus has wreaked havoc on the U.S. economy, some people are looking to capitalize on it. As of May 21, there have been 785 trademark applications submitted to the United States Patent and Trademark Office (USPTO) related to the virus since the pandemic started, per Gerben Law Firm LLC. Some of the coronavirus-related trademark filings made with the USPTO are: Corona Baby; I am a COVID-19 Survivor; Quarant If You Can Read This; You Are Too Close; COVID-19 American Heroes; United We Stand Apart; Class of ’20 > COVID-19; Shelter In Paradise; and Bye Bye Corona, among others. Most of these trademark submissions will not be registered because they are commonplace terms, according to legal experts. Kevin McLauglin, intellectual property attorney and founder of Grand Rapids-based Crafted Law, said a name, logo, phrase, slogan, sound or color name can be trademarked. 11011 GRBJ Ads 101 Best.pdf Most terms on T-shirts, how-

ever, cannot. “Terms like ‘Happy Camper,’ for example. That is big and is designed on the shirt but is normally not considered trademark use because it is what they call ornamental,” he said. “What counts on clothing, in terms of trademarks, is actually what is on the tag or on the label. So, on the inside label, if it says Nike or Under Armour or whatever the name of the company is, that shows where it is from. That is what trademarks are all about — a source identification, where is it coming from. The stuff that is on the front of the shirt doesn’t normally count, unless it is like the little, tiny Polo Ralph Lauren logo, for example, that is on the front or on the sleeve of the shirt. That normally would qualify, but if it was like a giant polo man on the front of the T-shirt, that probably would not.” While most of the coronavirus-related terms might be rejected, McLauglin said since many companies are doing a lot of virtual things, if they are starting to offer different virtual services and they are using a particular name, brand or logo to promote that service, then there could be new filings. At the foundation of every brand such as Apple, Google, Amazon or Disney, McLauglin said, are trademarks. It legally protects a brand. Once a name, logo or sound is trademarked, a brand is 3 5/11/20 based 10:21 on AM the services developed

Kevin McLauglin, founder of Grand Rapids-based IP ﬁrm Crafted Law, said trademarks often are more directed toward names, logos, phrases, slogans, sounds or colors. Courtesy Laura House, House Photography

the company has to offer and later marketed and advertised. According to the 2020 Edelman Trust Barometer Brands and the Coronavirus Pandemic special report, 12,000 respondents completed an online survey in 12 countries: Brazil, Canada, China, France, Germany, India, Italy, Japan, South Africa, South Korea, the United Kingdom and the

United States. There were 1,000 submissions per market. The results show that 81% of respondents said they must be able to trust the brand to do the right thing. They said it is a deal-breaker or the deciding factor in their brand buying. Eighty-nine percent of the respondents wanted brands to shift to producing products that help

people meet the challenges of the pandemic, with 44% saying brands must do this to earn or keep their trust and 45% saying they hope brands will do this, but there is no obligation. Ninety percent of respondents said they wanted brands to partner with the government and relief agencies to address the crisis, 50% saying they must do this to earn or keep their trust and 40% saying they hope brands will do this, but there is no obligation. Eighty-six percent of respondents wanted brands to be a safety net, stepping in where they are needed and able, to fill gaps in the government’s response to the virus. Of that number, 41% said they must do this to earn or keep their trust and 45% said they hope brands will do this, but there is no obligation. “If a company were to sell their business to someone else, the value of their trademarks would be a large portion of the sale price, like their IP assets,” McLauglin said. “For example, if Nike were to go out and say, ‘We are going to (allegedly) use sweatshops again and we are not going to wear masks because we don’t think they look good,’ then the value of their company would fall, presumably a lot. So, you have to do the legwork at first by putting the legal protection in place but then maximize its use. Having a trademark registration does you no good unless you are going to use it and profit from it.”

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JUNE 1, 2020

GRAND RAPIDS BUSINESS JOURNAL

Salons assemble their game plans while waiting CONTINUED FROM PAGE 1

“There are several things that signaled to the press that it was we’re doing just to have things “very unlikely” salons would be ready to go once we’re given the allowed to start making appoint- green light. But a lot of it is just a ments within the early phases of waiting game and deciding what the economy reopening because is necessary and what’s not,” Anof contact risks that need careful derson said. mitigation. Baird said it has been “frusThat ambiguity wasn’t stop- trating” as business owners, ping local stylists from preparing needing to front the money to while they waited for the OK to buy all of these extra supplies reopen. while no revenue is coming in. “It’s like when you’re getting “Especially without getting married and you are planning a a grant or a loan, every penny wedding. You do everything you counts,” she said. possibly can do, and then you Anderson said it’s looking like have to wait until the very last stylists will have to work harder minute to hurry up and do every- to follow all of the restrictions thing else,” said Amanda Baird, but will make less money beco-owner and stylist at Salon Re:, cause they won’t be able to have 940 E. Fulton St. in Grand Rapids. as many appointments per day. Baird and her co-owner, Joy Kelly Buist has been a Anderson, were eying guidelines chair-rental/independent confrom other states — including tractor stylist at Salon Re: since it a document from the Georgia opened over a decade ago. Board of Cosmetology published She said she has been brainahead of salons reopening in that storming an “abbreviated service state on April 24 — to help them menu” that could include offerunderstand what similar restric- ings such as dry cuts; clients with tions Michigan might put in place thicker hair coming with wet hair so they could be ready. and leaving after their cut with The duo speculated the safe- wet hair; roots-only color applity restrictions for salons could cation where the client would go include mandatory mask-wear- home to shampoo and dry their ing for stylists and mandatory or hair; dropping blow-outs from recommended mask-wearing for the menu; not offering perms clients; spacing of stations 6 feet (which some older clients still apart; appointment-only services get); doing basic maintenance (no walk-ins); limited capacity like trims instead of big style of clients, which means no dou- changes; and possibly forgoing ble-booking of clients (e.g., one bang trims, since they require client getting a haircut while closer face-to-face contact. another client has color process“I know all of my clients’ hair ing); requirement of single-use well enough that I could probably capes for clients; wearing of help them navigate what would full-protection smocks by stylists; be best for them,” she said. “Part extra disinfecting of each station of it is just having people spend between clients; sneeze guards/ less time in the chair.” partitions between stations and Buist said she began planning shampoo bowls; more frequent the abbreviated service menu handwashing, etc. after reading coverage from the Anderson said the salon al- New York Times as well as a ready has orwhite paper tidered more capes tled “The Risks “It’s like when you’re so every client - Know Them getting married and can have their - Avoid Them” own, and the from Erin Broyou are planning a washer probably mage, a biolowedding. You do will need to run gy professor at several times a the University everything you day to cycle them of Massachupossibly can do, and setts Dartmouth, back into the then you have to wait about the risk of rotation after a thorough cleantransmission in until the very last ing. various types of minute to hurry up and This is a public spaces. change from the “Airflow has do everything else.” previous practice a lot to do with of each stylist it, and how close Amanda Baird having their own you are to a persupply of capes son, but also how and usually only swapping them long you are in a space,” she said. out every two or three haircuts “I don’t know if all of my cli(unless they get dirty sooner) ents will be concerned about while using fresh neck strips for those things or know about them, each client. but that’s part of my thinking, is She said Baird and another offering people the possibility of stylist were working on building just being in there for less time.” and putting up sneeze guards Buist said she also would between the shampoo bowls, like to see the salon add a more and both co-owners have been sheltered station in the back for talking with a group of salon clients in high-risk categories to owners around the state to learn get their hair done away from the where to get sanitizers, gloves, rest of the customers. masks and other personal protecShe said she plans to adjust tive equipment (PPE) in light of prices to account for the abbrethe current shortages. viated services, and she believes They purchased a contact-less the amount of catchup she will thermometer they plan to use have to do when the salon refor screenings at the entrance, opens might be able make up for as well as sterilization ovens to the lower prices — initially. clean hair tools in between cliBut the higher overhead costs ents. in supplies and reduction of cli-

ents per day will likely mean an income drop for her over the long term as the pandemic continues, she said. “That’s another level of concern of mine, too,” Buist said. Kara Cole Turner is a chair-rental stylist at Philip Anthony Salon, 3655 Lake Eastbrook Blvd. SE in Grand Rapids. She said the stylists at her workplace already have committed to wearing face Cole Turner shields and single-use smocks, and the salon already has more than 6 feet of space between stations. It will be further minimizing person-to-person contact by closing the waiting area and requiring clients to wait in their cars before their appointments, texting them when it’s time to come in. Clients will not be allowed to bring anyone else with them to their appointment — “no chil-

dren, no spouses, no friends. It will just be themselves and the service provider,” she said. Cole Turner said she has 15 years of experience as a dry cut stylist, so that service won’t need adjusting. The salon plans to continue following state board sanitation requirements, but at an enhanced level, she said. “We’ll have sanitation products, Barbicide at every station in a spray bottle, as well as a tub for everything that the client touches,” she said. “If it doesn’t fit in the tub, it gets sprayed down after. Everything will go straight from the client into the container and then from the container to the washer and dryer. We’ll probably be slotting at least 15 to 20 minutes for cleaning between each client, as well,” she said. She said whatever implements can’t be sanitized will have to be disposable. Cole Turner said she currently only double-books clients who know each other. Still, she anticipates that will mean about two fewer paying clients per day, which will cut into her revenue — and she won’t be able to work

longer hours because she is a mom of five children and has to go home at a certain time. Even so, she said the most important thing is the clients’ safety. “We want them to know that we are taking every precaution we can to make them feel safe, and that there’s definitely no obligation. If they’re still feeling uncertain or feeling not sure, we definitely support them staying home. We’re not trying to rope anybody in to coming to get their hair done just because we’re having a hard time with our financial situation,” she said. “We want our clients to know we love them and support them and that we’re going to do our very best.” Cole Turner said she believes many of the changes brought on by the pandemic will be incorporated into continuing practice. “I think we’re going to see a huge change in the industry as a whole, for good. Change is always a difficult adjustment, but we’re an industry that is just very loving and caring, and we love to be around people and see people, and we’ll find a way to come through this on the other side.”

USDA taps food service suppliers CONTINUED FROM PAGE 1

purchased from Gordon Food Service. “We were pleased to participate in the USDA’s program, which provides nutritional food to a growing number of people facing food insecurity as a result of the pandemic, while also creating much needed revenue for farmers and processors who are challenged to get their product to market during these crisis conditions,” said Mark Schurman, manager and corporate communications for Gordon Food Service. “Because of our experience, including establishing complex supply chains, our existing distribution infrastructure, and familiarity with government procurement, we were able to assemble a winning bid for the first phase of the program, May 15-June 30. We’re excited to support a worthy program and glad to be able to bring that work to our own teams and our supplier partners.” A little over $28 million worth of fruits and vegetables will be purchased by the USDA from Heeren. The USDA will purchase approximately $3.2 million worth of fruits and vegetables, $1.7 million worth of dairy products and $19,500 worth of pre-cooked meals that include pork and chicken from Van Eerden Foodservice. VanSolkema Produce of GA will have $150,000 worth of its fruits and vegetables purchased by the USDA. “COVID-19 has had a significant impact on the foodservice industry with the closing of restaurant dining rooms and other public venues,” Schurman said. “While many restaurants

have continued to offer delivery and curbside, for most the pandemic has had a dramatic negative impact on their revenues. Because restaurateurs are a major customer segment of Gordon Food Service, the crisis has had a proportionate impact on us since mid-March. In response, the company eliminated nonessential program spending, postponed capital projects and generally reduced expenses wherever practical. Unfortunately, despite these and other efforts, we were compelled to furlough a significant number of people to align our workforce with business demands.” Prior to the pandemic, Schurman said Gordon had about 20,000 employees working throughout the United States and Canada in different aspects of the company, including warehousing and transportation. Although restaurants and schools have closed, halting those food outlets, Schurman said Gordon has seen growth in the demand for food products in the health care industry. There also is increasing demand in the company’s 170 consumer stores. The company works with farmers, packers and manufacturers for processed food items, among others. One of the businesses Gordon Food Service partners with is Bolthouse Brothers Growers near Marne in Ottawa County. Bolthouse Brothers Growers farms on 800 acres of land, growing corn, cabbage, green peppers, collard greens, kale, and six varieties of fall squash and cantaloupe. Another farm Gordon Food Service partners with is Bolt-

house Farms, which is a vegetable supplier, primarily of carrots. Bolthouse Farms was originally headquartered in Grant, but it has since moved to California. The business supplies fruit and vegetable juices, beverages, protein milk, salad dressing and carrots.

“We were pleased to participate in the USDA’s program, which provides nutritional food to a growing number of people facing food insecurity as a result of the pandemic, while also creating much needed revenue for farmers and processors who are challenged to get their product to market during these crisis conditions.” MARK SCHURMAN

“The USDA vegetable box program allows Bolthouse Farms to find a home for the carrots that would normally go to our food service business,” said Kevin Fix, VP of sales and customer management for Bolthouse Farms. “Our food service business has seen a 50% decrease in volume over the past two months, leaving us long in the fields on baby peeled carrots. This program couldn’t have come at a better time and we’re committed to servicing as much volume as possible to feed families across the U.S.”

GRAND RAPIDS BUSINESS JOURNAL

JUNE 1, 2020

HOME REFINANCING UP, BUT MORTGAGE LOANS ARE DOWN Local lenders say record-low interest rates and the COVID-19 recession are driving the trend. Rachel Watson

rwatson@grbj.com

If there is a bright spot in the COVID-19 crisis, it’s that historically low interest rates have made now a good time to refinance a home to save money, according to local experts. A trio of local mortgage lenders spoke to the Business Journal in late May about the state of the current mortgage business, which they say is booming, but not because of new mortgage purchases. Rather, the lower-than-ever interest rates — slashed by The Federal Reserve to stimulate growth during the current pandemic-related recession — are incentivizing existing homeowners to seek out a refinance. Refinancing is when an individual (or business) works with their lender to revise the terms of an existing loan agreement, usually when the interest rate environment has changed significantly, leading to potential savings on debt repayment going forward. People can choose to refinance into a shorter-term or a longer-term loan. The former involves long-term savings on interest but a higher monthly payment. The latter lowers monthly payments but may increase what people owe in interest in the long term. It’s an option many debtors whose household income is affected right now, or who are worried about it being affected, Grzywacz are electing in order to keep paying their bills, according to Dan Grzywacz, senior vice president of West Michigan operations at Mortgage 1 in Kentwood. “I’m seeing people who are interested in going back to a 30year and having a lower payment in case they run into some financial difficulties in the future,” Grzywacz said. “Some people are taking advantage of the 15-year, low fixed rates, but some people are like, ‘I want the security of a low payment, so bring me back to a full 30-year,’ going from a four-and-a-quarter, four-and-ahalf (percent), to, let’s say, threeand-a-quarter percent and saving $150 a month.” Grzywacz said his team members’ phones started ringing off the hook about refinancing starting when the pandemic hit. Although he was pleasantly surprised with the number of mortgage purchase applications his office processed in April and May, he said the numbers are down compared to last year. “People want to buy houses, but in some instances, it’s the sellers who are

not wanting to show houses; they are kind of uneasy about this,” he said. “There’s still activity out there, but it’s down from this time last year. I suspect it’s going to open back up and bounce back after this virus situation is over.” Grzywacz said loan purchase applications also are down because the lower supply of homes on the market means there is less choice, and the prices are higher because low supply tends to cause bidding wars. He added the number of closings is down because many

people applied for pre-approval before losing their jobs, and lenders won’t approve mortgages for people who are on unemployment (unless the household has another steady earner) beSetlock cause their situation is fluid and they are a poor risk. It’s currently important that

borrowers’ credit scores are higher than 670 if they expect to secure a home loan, too, Grzywacz said. When the pandemic hit, many lenders took programs for lower-credit score buyers off the table due to the risk factor. Even after the government came in and “helped stabilize the industry” through the CARES Act and Federal Reserve actions, some of those programs have not yet come back, he said. Scott Setlock is senior vice president, mortgage and consumer loan department head at

Mercantile Bank of Michigan. He said the bank experienced an increase in refinance applications at the start of the pandemic in March, when interest rates “decreased meaningfully.” Applications are still higher than usual but not as high as in March. Setlock said Mercantile experienced “record months” in March and April, and a vast majority of closings during that period were refinance transactions. CONTINUED ON PAGE 17

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JUNE 1, 2020

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INSIDE TRACK

Fortier builds career on being a ‘connector’ VP of business development for Hylant West Michigan strives to grow influence through authentic relationships. Rachel Watson

rwatson@grbj.com

en Fortier said being connected and knowing people is the true joy of his life, and he strives to apply it toward helping others. Fortier in February was appointed vice president of business development for Hylant’s West Michigan office based in downtown Grand Rapids, a job he was recruited for through his friendship with Jeff Lumpp, president of the firm’s West Michigan operations, whom he met through their service together on the Davenport University Alumni board. One month into Fortier’s new role, the COVID-19 pandemic hit Michigan, spurring myriad questions about the future of the Toledo-based insurance brokerage and business services firm across its eight-state footprint. While no one had definitive answers to the challenges at hand, Fortier said the move to working from home (for everyone who could) became an opportunity rather than a roadblock. He saw clients and community members were full of questions and longing for guidance, so he helped Hylant start one-hour, video-based business peer groups, where, up to three times a week, he brings in lawyers, accountants and other experts to help answer people’s questions in small groups on Zoom. The resource is completely free — he stressed it’s not meant to be a tool for marketing insurance products or generating leads — and the main goal always has been to connect people, to make them feel they aren’t alone, and to

offer a safe and confidential space to discuss business challenges and ideate solutions. Fortier is uniquely positioned to be able to offer this resource, he said, based on about a decade of experience as founder, owner and coach at NetPlus Connections, a business leader training program he ramped up in 2012 after publishing his book, “NetPlus Connections: Be the One Who Makes Everyone’s World Bigger and Better.” The book instructs business professionals how to become valuable “net-plus assets” in other people’s networks by strengthening relationship skills through better and deeper networking. The connections training program is based on the principles of the book, and Fortier said he has coached “hundreds” of participants in small-group settings over the years on how to connect meaningfully. He was working full time at the firm when he was recruited for the role at Hylant, and he still does some informal mentoring on the side. “I don’t think I’ll ever stop being in NetPlus Connections, because it’s just me,” he said. “The idea of taking those skills of helping people connect in an authentic way and developing stronger relationships — those skills are applicable in what I’m doing today and what I have been doing since 2012.” Fortier said he was raised to follow his parents’ example of being hardworking, generous people. His family was part of the St. Alphonsus Parish community in Grand Rapids, and he and his brother and two sisters attend-

KEN FORTIER Organization: Hylant Position: Vice president of business development for West Michigan Age: 52 Birthplace: Tampa, Florida Residence: Ada Family: Wife, Diana Kauffman; twin 8-year-olds, Eliana and Asher Community/Business Involvement: Co-chair of the Davenport University Alumni board, member of the Kids’ Food Basket Fund Development Committee and co-chair of KFB’s largest outside annual fundraiser, the Driving Out Hunger Golf Classic Biggest Career Break: Publishing the book “NetPlus Connections” in 2012 and going full time with his business leader training program of the same name. “I had over 400 people go through the small-group training about how important it is to make connections. … We’d talk about some skills that we should be working on, then we’d go out and practice the skills and then come back. It’s really helped me in my career, to develop a much stronger network and really great friends. And it’s helping me in my career at Hylant … (develop) the ability to take authenticity and bring it into business.”

His parents’ lessons in selflessness inspired Ken Fortier to discover how people make genuine connections with each other. Courtesy Dusty Brown Photography

ed Catholic Central High School, where they were given a good education and taught to help others, Fortier said. His father worked sometimes three jobs to pay the bills, while his mom stayed at home, cooking dinner for the family every night. “It was always about taking care of others,” he said. “I remember my dad, when I was really young, probably about 10 or 11 years old — we didn’t go out to dinner very often, so when we went out, it was kind of a big deal — he took us to this restaurant called Oyster Haven at Michigan and Fuller, a really nice little seafood place with lobsters in a fish tank. “There was this table next to us. These ladies were being really loud and laughing and having a good time, and my dad called over the waitress, whispered in her ear, and something happened, and we rushed out of the restaurant. I was like, ‘Mom, what did Dad do?’ And she says, ‘He paid for their dinner and took care of their drinks.’ I said, ‘Why?’ and she said, ‘Your dad thinks it’s important to add to other people’s lives, to do something more than just take care of the family. We need to take care of others, too.’” Fortier said his parents are “the most selfless people you’ll ever meet,” and he learned from them “how to be a contributor to the community” and “how to donate our time, talent and treasure.” Though one of the quiet kids in high school, Fortier said he started to come into his own during his first year at Grand Rapids Junior College (now Grand Rapids Community College) in 1986, where he

found himself becoming someone who could find out what was happening socially and connect others through that talent. Fortier went on to study business at Davenport University after many years working in retail following GRJC. “I had this feeling that I wanted to build something, that I wanted to contribute in a different way than just working in the grocery store business,” he said. “With business, I knew I had unlimited potential and could do anything I wanted.” After Davenport, he entered the telecommunications field, sticking with it from the 1990s through 2013, following in the footsteps of his father’s lifelong career. First, Fortier was a technician for GRCC. He worked with the Donnelly Corporation from 1996 to 2000, then started his own business, Quantum Leap Communications, in 2003. He sold the business in 2013 and transitioned to his NetPlus Connector work on the side while also holding jobs in sales, marketing and investor relations at firms such as REV Business Solutions, DEKSIA and IMMY Inc. When Lumpp called him to invite him to join the team at Hylant this year, Fortier said he laughed and said, “I don’t know anything about insurance!” Lumpp responded, “I don’t need you to know anything about insurance. I just need you to know about people.” In addition to his business development work and role as a connector and facilitator for the Zoom peer roundtables at Hylant,

Fortier runs the company’s GR Stories campaign, in which the firm highlights three nonprofit organizations per quarter to help them build more awareness and connection with the community. GR Stories was a program Fortier developed while working at DEKSIA, then Lumpp hired him to run it in-house. “We’re taking the money that we used to just blindly donate to golf outings and tables and all these things, and we’re taking that budget and applying it right to these nonprofits,” Fortier said. “You can nominate your favorite nonprofits, and we go through and pick three of the nominations. We show a video for each of them, and we promote them on billboard, radio and digital, which is fantastic, because a lot of times, these organizations don’t have the budgets to do that. So we pay for all that.” The next three nonprofits will be featured in July. Hylant’s West Michigan office has 38 full-time employees, and Fortier said prior to COVID-19, they sat on a total of about 40 community boards — a fact he believes illustrates Hylant is a force for good in the communities it serves. “We have a very strong commitment to helping in the community, and that stretches across the whole business,” he said. “Our organization is here to help. We want our clients and our prospects to think of us as more than just an insurance company. … We want to be known more as the company that will help you connect to solutions that help your business.”

GRAND RAPIDS BUSINESS JOURNAL

JUNE 1, 2020

Metro Health doctor: COVID not going away CONTINUED FROM PAGE 3

and knocked it off the tracks,” Pai said. “That was a tall order for the team, but we delivered on that.” Pai said Metro Health has patient patterns separated into four categories. First are the urgent care patients, those suffering from heart attacks, strokes, automobile accidents or similar scenarios. Pai said those people still are coming in regardless of COVID. The second category is the hesitant group, or people who are afraid to leave home and seek care unless it is absolutely necessary. “My parents are like that,” Pai said. “We have to really restore confidence with these patients.” While the development of a vaccine is going to reduce the fear of COVID, Pai said the medical community still has a major hurdle to clear. Currently, there are more than 100 vaccine compounds in the process of being tested, but there still is the logistical probability of producing enough for the U.S. The next category is the very reluctant patient. Pai said these people may have intense fear or even PTSD because of COVID and are choosing to wait it out instead of going to the hospital. “We have seen an uptick in our ER visits, not particularly for COVID, but because patients who are delaying care are now showing up in the emergency room,” Pai said. The last category involves patients who have involuntarily exited the health care system. This usually involves patients who had employer health insurance but were let go from their jobs in the wake of COVID and subsequently lost coverage, Pai said. Previous Business Journal reports noted health care experts hinting at a possible second wave of COVID infections in the near future. Pai said it is still reasonable to expect that, although some of the models in West Michigan predicted a surge of COVID patients in April, which did not happen. “We’re only a 208-bed hospital, and that would have been an

Armageddon situation,” Pai said in mid-May. “At this point in time our ICU is full, and about 30% of the beds there are COVID-positive patients.” This does not rule out the possibility of added waves or ripples in the rate of infected persons will happen in the future. Pai said Whitmer’s order has been successful in flattening the curve, but worried when the economy is “reopened” there could be the risk of cluster outbreaks on a community basis. “The smaller communities could be potentially less impacted,” Pai said. “But no doubt it would create — and some countries have observed this — a situation where you could have to quarantine whole blocks and neighborhoods.” Pai said the availability of COVID testing has gone up relative to even three weeks ago, although testing still is limited. In diagnosing the lack of available PPE, Pai argued too much of the U.S. supply chain was concentrated in China. Understandably, when COVID spread across China, the country chose to nationalize all of its PPE, including masks and hand sanitizer, leading to a shortage here. “I think one of the things we’re going to learn from this is for mission-critical equipment, we got to make a lot more of that stuff here,” he said. “This isn’t the last pandemic.” The current pandemic isn’t going away for a while either, Pai said. He predicted Michigan — and the U.S. — will have to continue to find ways to deal with it for the next few years, at least. According to figures from the Kent County Health Department in mid-May, there were 52,350 total COVID cases and just over 5,000 resultant deaths in the state of Michigan. In Kent County alone, there have been almost 3,000 cases and 58 deaths. Pai also was candid about how COVID has affected operations at Metro Health. Recently, the health system rolled out temporary salary cuts. Pai cited declining revenue as the reason for this decision and the cuts will likely be in effect for six months.

We have seen an uptick in our ER visits, not particularly for COVID, but because patients who are delaying care are now showing up in the emergency room. DR. RAKI PAI

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JUNE 1, 2020

COMMENT & OPINION

GUEST COLUMN Dave Kahle

Sales forces should utilize the gift of slow times I n an earlier article, I suggested some business strategies for effectively handling the changes wrought by the pandemic. My recommendation was to instill a set of practices that would keep you, personally, at the top of your game. In the second article of this series, I suggested some specific steps that chief sales oﬃcers could take in response to the changes brought by the pandemic. With that in place, the next question has to do with your broader responsibilities. What about your business or organization? Are there some things you should be doing to prepare your business for life on the other side of social distancing? One of the things that I have learned over my 35-plus years in business is this: Slow times are a gift. Let me explain. As I struggled through the ebbs and flows of my business, it seemed that ebbs occurred pretty regularly, regardless of what I did. And, in that period of forced inactivity, I discovered the space to clean up the messes, to tighten up the systems, to address issues that hadn’t been addressed for a while. I found the space and the inclination to plan for the next thing and to lay the groundwork for the next climb up the sales curve. After a while, I became thankful for the slow times, as they provided me space and time to get ready for the next onslaught of activity. The slow times, brought on by national calamities or just turns in my own specific markets, were a gift. I believe the same is true for most of us. For most of our time, we find ourselves striving to build the business, acquire the right people, build effective systems, increase our margins and expand our bottom lines. It has been a frenzy of activity focused on a single issue: Build the business.

GUEST COLUMN Rachel Foster and Alexandra Chitwood

Relaxation of real estate evaluation and appraisal requirements

Now, however, for a lot of people, building the business, at least in the short term, is no longer a realistic goal. We just want to survive. That sudden lull in frenetic activity presents us with an opportunity. Now, we have the emotional space, time and energy to think about things we haven’t thought about for a while, to imagine a future we haven’t dreamt about for a while, and to envision the specifics of a more fulfilling tomorrow. With that perspective, I have two suggestions for business strategies right now. Use the gift of slow time to do it better and prepare to do it differently.

While this list is specific to sales organizations, your list could be just as detailed for your area of responsibility. For chief sales oﬃcers, now is the time to look at, and make adjustments to: •The arrangement of sales territories and accounts. •Creating a company-wide process for identifying and prioritizing high-potential accounts. •The sales compensation formula. •Making the changes in the CRM system that have been accumulating.

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It is likely that some aspects of your business have gotten sloppy. Now is the time to look at all those bits and pieces that have been overlooked because they didn’t rise to the top of the “to do” list. •Is all the software updated? •Is everyone trained on the new features? •Are there processes and procedures that have been around for a few years and become ingrained to the point that no one questions them? Now is the time to dust them off and reconfigure them. Are there people who have been marginal performers, but you never had the luxury of time to address that issue? Now is the time to make those personnel changes you’ve been thinking about. As a sales consultant, I have accumulated a whole list of very specific “systems issues” that should be looked at afresh, with an eye to putting in place the right systems, processes, tools and people — not based on the past, but focused on the future.

s a result of COVID-19 and the subsequent stay-athome orders issued in many states requiring certain social distancing measures, a collection of federal agencies has issued guidance that provides flexibility for property evaluations and appraisals for certain real estate transactions. These relaxed standards were issued given the diﬃculty for lenders, in the midst of this global pandemic, to conduct physical inspections of property and generate appraisals typically required by existing federal standards. Under normal circumstances, evaluations and appraisals must be conducted in accordance with the Uniform Standards Professional Appraisal Practice, which generally provides for both an interior and exterior inspection of a property. Additionally, appraisals underwritten to Fannie Mae and Freddie Mac standards rely on both interior and exterior inspection to determine the appropriate value of an appraisal for a loan. RELAXED STANDARDS UNDER AGENCIES’ GUIDANCE The guidance expands the ability of lenders with loans purchased

•Taking a critical look at your marketing collateral — hard copy and electronic and bringing it up to standards. •Looking critically at the productivity of each salesperson and making adjustments along the way. (We have a free tool you can use to objectively measure the productivity of a salesperson, a sales team, and the company as a whole. Download “Kahle’s Kalculation of Sales Productivity.” •Critically looking at the educaCONTINUED ON PAGE 15

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by Fannie Mae and Freddie Mac to appraise a property based on exterior-only and desktop appraisals. This means appraisers can determine the relevant characteristics of a property through an exterior inspection, as well as photographs, property sketches and other recorded media that exist for the property, skipping the interior inspection. All lenders also may defer evaluations and appraisals for 120 days following the date of closing of a transaction. However, lenders should still ensure they are conducting a thorough review and appropriately adhering to their internal underwriting standards in assessing a borrower’s ability to repay a loan. Lenders also are expected to develop a risk mitigation strategy in the event a deferred appraisal or evaluation results in a large disparity in the actual and expected market value of a property, which

is an important risk lenders must consider. While these temporary deferrals of evaluations and appraisals apply to both residential and commercial real estate-related financial transactions, they do not apply to transactions involving the acquisition, development and construction of real estate, as these transactions and loans involve risks above and beyond those related to financing existing real estate. Lenders and businesses should keep in mind these relaxed requirements for evaluations and appraisals expire on Dec. 31.

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, 401 Hall St. SW, Suite 331, Grand Rapids, MI 49503 or email bjletters@grbj.com.

EXISTING EXCEPTIONS PROVIDED FOR LENDERS In addition to the relaxation of evaluation and appraisal requirements, there are a number of existing exceptions — not issued as a result of CONTINUED ON PAGE 15

Grand Rapids Business Journal (ISSN 10454055) is published biweekly, with an extra issue in December, by Gemini Media, 401 Hall St. SW, Suite 331, Grand Rapids, MI 49503. Telephone (616) 459-4545; Fax 459-4800. General e-mail: bjinfo@grbj.com. Periodical postage paid at Grand Rapids, Michigan. POSTMASTER: Send address changes to Grand Rapids Business Journal, 401 Hall St. SW, Suite 331, Grand Rapids, MI 49503. Copyright ©2020 by Gemini Media. All rights reserved. Grand Rapids Business Journal is mailed biweekly to executives, managers and professionals throughout Metro Grand Rapids and West Michigan. The subscription rates in continental U.S. are: $59 per year; $79 - 2 years; $99 - 3 years. Rates for Canada and U.S. possessions are $84 per year. Subscription rates include the annual Book of Lists and additional special publications. Please inquire for overseas rates. Subscriptions are not retroactive; single issue and newsstand $2, by mail $3; back issues $4 when available, by mail $5. Advertising rates and specifications at www.grbj.com or by request. Grand Rapids Business Journal does not accept unsolicited contributions.

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GRAND RAPIDS BUSINESS JOURNAL

JUNE 1, 2020

GUEST COLUMN Jeff Doolittle

Today’s new essential leadership relationship: executive coach A n executive coaching relationship should no longer be viewed as an optional relationship for senior leaders. Back in 2005, Thomas Friedman wrote a book on how the world is flat. Today, the pressures of globalization for executives are immense. We have seen the COVID-19 pandemic create challenges for leaders that no one has ever faced. Helping executives to stay focused on personal development, so it does not get lost in the tsunami of urgent details and day to day activities, is an essential benefit of executive coaching. The essence of the power and effectiveness of executive coach-

ing lies in the coach-leader relationship. This robust relationship fosters a leader’s growth through purposeful direction, reflection, feedback and accountability. Today’s reality for a senior leader is that the marketplace is changing rapidly, and you are either ripe and rotting or green and growing. So, how is an executive to effectively stay green and growing in such a fast-paced environment? Modern peer-reviewed qualitative and quantitative research provides support for the effectiveness of the executive coach-leader relationship. In an extensive quantitative study by Stanley Black & Decker, the Sasha Corporation

found that executives receiving coaching increased goal performance by 15% as compared to executives not receiving coaching. Also, some of the most admired companies in the Fortune 100 contribute to the $1 billion executive coaching industry. The coaching sector is the second-fastest-growing sector in the world at a 6.7% average yearly growth rate projected through 2022, according to marketresearch.com. DIRECTION AND REFLECTION Without an executive coach, a leader can lack perspective and miss the benefit of assistance with set-

Relaxation of real estate evaluation and appraisal requirements CONTINUED FROM PAGE 14

COVID-19 — that lenders may rely on to avoid the requirements of an appraisal by a certified or licensed appraiser. Lenders will want to consider whether a real estate-related financial transaction falls into one of these categories: •A residential real estate transaction with a transaction value of $400,000 or less •A commercial real estate transaction with a transaction value of $500,000 or less •A business loan with a transaction value of $1 million or less where the loan does not depend on the sale of, or rental income derived from, real estate as the primary source of repayment •The transaction involves an exist-

ing extension of credit at the lending institution with two provisions. First, there has been no obvious and material change in market conditions or physical aspects of the property that threatens the adequacy of the lender’s real estate collateral protection after the transaction. Second, there is no advancement of new monies, other than funds necessary to cover reasonable closing costs •The transaction is wholly or partially insured or guaranteed by a U.S. government agency or U.S. government-sponsored agency •The transaction either qualifies for sale to a U.S. government agency or government-sponsored agency or involves a residential real estate transaction where the appraisal conforms to the Fannie Mae or

Freddie Mac appraisal standards The measures associated with mitigating COVID-19 have substantially affected the area of real estate, but guidance from the agencies seeks to mitigate the effect of these measures on financial institutions engaged in real estate-related financial transactions and their customers. During this time, lenders and businesses should take advantage of both the existing exceptions and newly issued standards that apply to evaluations and appraisals for real estate loans.

ting direction. Any road will get you where you want to go if you don’t know where you are going. Setting direction is vital to growth as a leader. Executive coaching starts with an assessment and setting direction. A coach ensures development goals are purposeful and brings perspective to the best focus area. Also, guided reflection is another critical benefit. Often leaders pressed for time move from one urgent task to another and miss the advantage of pausing to reflect. The executive coach partners with the leader to ask questions that explore learning and maximize the value of the coaching. Peer-review research on the topic of reflection has found slowing down and providing time for intentional reflection improves an individual’s performance. FEEDBACK AND ACCOUNTABILITY The reality is that leaders are busy, and without accountability, miss the opportunities for learning and growth. In the executive coaching relationship, external accountability is a crucial benefit. Typically, toward the end of the current year and beginning of the new year, we all start thinking about self-development and annual goals. Then all too soon after, a week passes, work happens and we barely remember the goal. A coach can prioritize topics most critical to advancing executive development.

Executive leaders receive feedback continuously from a wide range of sources on potential areas of development, but also can struggle to make sense of the feedback. Proximity to a problem sometimes impacts the leader’s clarity on importance. Also, general feedback often is not presented in effective or constructive ways. During a recent press briefing, President Donald Trump lit into a reporter for a line of questioning and stated he was a terrible reporter. The non-verbal response of the reporter indicated he was crushed and felt attacked. The reporter received feedback, but it was not specific or constructive. Having a coach can help executives take input from different groups of people that may be emotional to the leader. A coach also can assist the leader with filtering through various points of feedback to return focus on the essential constructive aspects. Now more than ever, due to the complexity placed on senior leadership roles, executives need coaches that can support their continuous development. The coach-leader relationship is an essential tool to foster a leader’s growth through purposeful direction, reflection, feedback and accountability. Jeff Doolittle is founder of Organizational Talent Consulting in Grand Rapids. He can be reached at info@ organizationaltalent.com or by calling (616) 803-9020.

Rachel Foster and Alexandra Chitwood are attorneys with the law firm of Warner Norcross + Judd LLP who concentrate their practices on real estate. They can be reached at rfoster@ wnj.com and achitwood@wnj.com.

Sales forces should utilize the gift of slow times CONTINUED FROM PAGE 14

tion and development of the sales force. Now is the time to invest in providing them with the skills and strategies they will need in the post-pandemic world. You’ll find the sales team is more amenable to making changes and accepting training now than they may have been for years. All these efforts are based on the premise that the business will survive and, after accounting for some minor changes, be pretty much the same, doing business in much the same way next year as you did last year. The focus, then, was to prepare to do it better. But, what if the gift of slow times also brought an opportunity to challenge the limitations of business as usual? Then, you could spend some intellectual and emotional capital on the next business strategy. PREPARE TO DO IT DIFFERENTLY Your business came into existence when you, or your predecessors, saw a need that you thought you could fill. That could have been generations ago, or it may have been last month. Regardless, the

world has changed dramatically since then, and the fundamental premise upon which your business is based may be shifting. What if you could use this gift of downtime to re-imagine your business? There is the possibility, at least with a few of you, that you could emerge from the pandemic malaise with a transformed business. If you think that may be you, here are a few ideas on how I would go about it. 1. Ask this question, and brainstorm some solutions: “What urgent problems and/or pain do our customers have (or will they have) that we can help with?” 2. Then, I’d prioritize the answers to the brainstorming session by asking these questions: •“Which of these can we address the quickest?” •“With which of these can we make the greatest impact?” •“Which of these are we most passionate about?” 3. And if your work uncovered a likely suspect, then I’d ask and answer these questions: •“If we wipe the slate clean and started fresh, what solutions could we provide?” •“Exactly what would that look

like?” •“How could we deliver it?” •“How much would we charge?” •“How would we promote and sell it?” •“What would we need to pull this off?” •“What would we need to do to pull this off?” •“Who needs to do what, by when?” And at the end of this hard work of brainstorming, prioritizing and planning, I’d have a plan to transform the business, and maybe the industry. Slow times are a gift. Use the gift well. You may not have another opportunity like this for a long time. Grand Rapids-based Dave Kahle is one of the world’s leading sales authorities. He’s written 12 books, presented in 47 states and 11 countries, and has helped enrich tens of thousands of salespeople and transform hundreds of sales organizations. His book, “How to Sell Anything to Anyone Anytime,” has been recognized by three international entities as “one of the five best English language business books.” Check out his latest book, “The Good Book on Business.” This article originally appeared at davekahle.com

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GRAND RAPIDS BUSINESS JOURNAL

JUNE 1, 2020

KCCU newest branch receives LEED certification Kellogg Community Credit Union’s newest branch at 2270 Gezon Pkwy. in Wyoming is LEED-Certified. LEED (Leadership in Energy and Environmental Design), developed by the U.S. Green Building Council, is the most widely used green building rating system. Design, construction and operations practices improve environmental and human health, and LEED-certified buildings help make the world more sustainable. KCCU’s Gezon Parkway branch opened in October 2019 and is in the Metro Health Village. KCCU partnered with Grand Rapids-based Integrated Architecture and Rockford Construction for the design and build of its new branch.

ADVERTISING & MARKETING

Blue Flame Thinking turned 55 years old this year.

ARTS

as its new chairman, after serving as a trustee for eight years. The Indianapolis attorney and retired corporate executive will lead the 27-person board.

Grand Rapids Ballet has two virtual program performances online, one of which will include a world premiere piece from choreographer-in-residence Penny Saunders. An Evening with Penny Saunders will premiere online June 12 and will showcase the works of the Princess Grace Award winner and GRB’s resident choreographer. Classic & Contemporary premiered online May 15.

ENVIRONMENTAL

BANKING

GOVERNMENT

Sparta-based ChoiceOne Bank announced Angie Hanks joined the Coopersville branch office as branch manager.

BUSINESS SERVICES

Alexa Kramer, director of government affairs at the Grand Rapids Chamber of Commerce, has graduated from the Association of Chamber of Commerce Executives (ACCE) Education & Talent Development Fellowship.

EDUCATION

Midland-based Northwood University’s Richard DeVos Graduate School of Management has added a Doctor of Business Administration degree. The board of trustees of Albion College has elected Michael J. Harrington, ’85,

Editor’s note: The coronavirus response has affected many public gatherings. Please check organizations’ websites for the latest event information. JUN 3 Wyoming-Kentwood Area Chamber of Commerce Business Networking and Beers. 5-8 p.m., Hilton Garden Inn, 2321 East Beltline Ave. SE. Information/registration: southkent.org. JUN 4 Jennifer Maxson & Associates Workshop, “Speak Up and Be Effective.” Craft messages that are clear, concise and focused. Cost: $680/person, $600/ person for two people, same program and date. Registration: (616) 883-6458 or info@jennifermaxsonassociates.com. JUN 4 Rotary Club of Grand Rapids Club 77 Via Zoom. 4-5:30 p.m. Information/registration: https://grrotary.org/ JUN 4, 11, 18, 25 Hudsonville Chamber of Commerce Annual Concerts On The Green Series. 7-8:30 p.m., Veteran’s Park, Hudsonville. Cost: free. June 4, Hooray for the USA with Brena Band; June 11, Western Night with Alan Turner; June 18, College Sports Night with Trixy Tang Band; June 25, Tropical Night with DB and the Dinos. Information/ registration: (616) 669-0200 ext. 1421 or ewalters@hudsonville.org. JUN 5-6 Festival of the Arts Virtual Arts Festival. The virtual event highlights Grand Rapids-area talent, including performing, visual and culinary arts, along with

Holland-based Boxed Water Is Better planted 1 million trees in partnership with the National Forest Foundation as a part of its ongoing commitment to support the planet and sustainability efforts.

FINANCIAL SERVICES

Midwest Capital Advisors hired Steve Witte as client services manager. Ottawa County installed a drop box outside its Fillmore Administration Building at 12220 Fillmore St., West Olive, for customers unable to complete payments and business online. The box is located on the lower level of the building near the entrance of the treasurer’s office.

GRANTS

Network180 is the recipient of a $2 million grant with the possibility of being renewed a second year at an additional $2 million from SAMHSA for the Certified Community Behavioral Health Clinic project. The CCBHC project will allow Network180 to expand its services to individuals of all ages in Kent County struggling with a mental illness, substance use disorder, or co-occurring disorder, including veterans and those

CHANGE-UPS & CALENDAR

survey, go to keepmihealthy.org/ and click “Get Started!” Upon completion, residents can optionally provide their mobile phone number to receive a daily text reminder to take the survey.

INSURANCE

Michigan Millers Insurance named the Dan Charles Agency one of its Preferred Agency partners for 2020. The independent agency represents the top 10% in terms of production, profitability and professionalism with the company.

LEGAL

Clark Hill PLC announced the addition of John T. Klees as senior counsel in its Grand Rapids office in the tax and estate planning practice group.

whose symptoms are considered mild to moderate in severity. The Porter Hills Foundation has received a $20,000 grant from the Heart of West Michigan United Way Coronavirus Response Fund, which will support Porter Hills Foundation’s COVID-19 Emergency Fund for frontline caregivers, a special support fund for team members caring for older adults served at Porter Hills, with headquarters in Grand Rapids.

HEALTH

Ferris State University’s Plastics and Rubber Laboratory staff and students have collaborated with Big Rapids Towing to quickly expatiate the production of face shields for health care use. Big Rapids Towing put the mold needed to make the face shields on a truck and hauled it to the shop in Lapeer. Product design engineering assistant professor Luke Hedman has been using a 3D printer to produce headbands. Muskegon-based Mercy Health Hackley Campus has received an “A” ranking on its spring 2020 scorecard from Leapfrog Hospital Safety Grades, which assigns A, B, C, D and F letter grades to hospitals nationally for patient safety.

Warner Norcross + Judd LLP has been recognized as one of the leading law firms in Michigan by Chambers USA 2020, for the 18th consecutive year, in the areas of banking and finance, corporate, general commercial litigation and employee benefits and executive compensation. Six attorneys were awarded for their work in the aforementioned areas: Douglas A. Dozeman, general commercial litigation; Anthony J. Kolenic, employee benefits and executive compensation; Mary Jo Larson, employee benefits and executive compensation; Justin W. Stemple, employee benefits and executive compensation; Stephen C. Waterbury, corporate/M&A; and Lisa B. Zimmer, employee benefits and executive compensation.

LEISURE & RECREATION

The Mackinac State Historic Parks announced its “Explore at Home” collection of online resources. Included are online exhibits and demonstrations, movies detailing the histories of Fort Mackinac, Colonial Michilimackinac, Historic Mill Creek Discovery Park and Old Mackinac Point Lighthouse and activities for kids. Go to mackinacparks. com/exploreathome.

MANUFACTURING

RESTAURANTS

Essence Restaurant Group managing partner James Berg announced Grove has been rebranded into Jimmy Berger’s Chicken Shack as a pop-up takeout concept.

SERVICES

Electronics company Bekins, with showrooms in Grand Haven and Grand Rapids, has been ranked No. 57 in the nation for custom electronics installation, and the highest ranked custom electronics installer in the state of Michigan in the May issue of CE Pro magazine.

SPORTS

Grand Rapids Public Schools announced coach Don Fellows will lead the Union High School football program. The Grand Rapids Griffins, West Michigan Whitecaps, Grand Rapids Drive and West Michigan Sports Commission launched “One Team For West Michigan,” a 30-second PSA video released to local TV stations and shared on the four organizations’ websites and social media platforms to communicate a positive message of hope voiced by Ginger Zee, a West Michigan native and chief meteorologist for ABC News.

TRANSPORTATION

The Gerald R. Ford International Airport Authority announced the appointment of Peter Beukema to the Gerald R. Ford International Airport Board representing Ottawa County.

WEBSITES

Downtown Holland has launched two new websites, (www.shopdowntownholland.com) and (www.dinedowntownholland.com), to make it easier for customers to shop online and order take-out from downtown Holland businesses.

The Keep MI Healthy online screening tool is now available in Spanish to help health officials track potential COVID-19 hotspots. To complete the

Aspen Surgical Products Inc. in Caledonia announced the acquisition of Precept Medical Products, which designs, manufactures and markets nonwoven, single-use disposable protective medical apparel that addresses infection control challenges faced by health care professionals, with a strong emphasis on the U.S. market.

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, 401 Hall St. SW, Suite 331, Grand Rapids, MI 49503 or email bjchangeups@grbj.com.

performances from the Grand Rapids Symphony, Ebony Road Players, Grand Rapids Ballet, Opera Grand Rapids, the Grand Rapids Public Museum’s Mighty Wurlitzer Organ and more. June 5: 10 a.m.-9 p.m., WOODTV.com streams live; June 6: encore showing.

JUN 9 Grand Rapids Chamber of Commerce ATHENA Leadership Forum: Navigating Professional Relationships. 11:15 a.m.-1 p.m., The Lit, 61 Sheldon Blvd. SE. Information/registration: bit. ly/2019healthcaresummit.

JUN 16 Hudsonville Chamber of Commerce Golf Outing For Young Entrepreneurs. 7 a.m.-1 p.m., Sunnybrook Country Club, 624 Port Sheldon St. SW, Grandville. Cost: $110/person, $400/foursome. Registration: bit.ly/HudsonvilleYoungGolfers.

JUN 6 Mel Trotter Ministries casting call for movie “One Life At A Time.” Local actors and extras are needed. 11 a.m.3 p.m., ResLife Church, 5100 Ivanrest Ave. SW, Grandville. Information/registration: meltrotter.org/mtmmovie.

JUN 11 Division Avenue Business Association Meeting. 8-9 a.m., Brann’s Steakhouse & Grille, 4157 S. Division Ave. Information/ registration: tombrann@branns.com.

JUN 16 Wyoming-Kentwood Area Chamber of Commerce Golf Outing. 7 a.m. registration. Cost: $110/person (you will be paired up), $400/foursome (give us your foursome), $18/lunch only, Sunnybrook Country Club, 624 Port Sheldon St. SW, Grandville. Registration: michelle@southkent.org.

Annual Charity Golf Classic. Set tee time for foursome with Egypt Valley Country Club to play a scramble or standard round. Cost: $200/person, and includes 18 holes, cart, boxed meal, snacks, gift bag, contest, division prizes, door prizes. Register by June 15 at wedg wood.org/golf.

JUN 8 Small Business Development Center Michigan Webinar. Topic: Forming Your LLC Or DBA: Do It Now. 2-4 p.m. Cost: Free. Information/registration: bit.ly/ FormingLLCORDBA. JUN 8 Wyoming-Kentwood Area Chamber of Commerce Government Matters @ City Hall With Elected Officials. 8-9 a.m., Kentwood City Hall, 4900 Breton Road SE. Information/registration: (616) 531-5990 or michelle@southkent.org. JUN 9,10 Jennifer Maxson & Associates Workshop, “Speak Up and Be Effective - Momentum.” Engage customers, clients, teams, peers and leaders by crafting messages that communicate clear value and key initiatives to organizational vision. Cost: $2,300/person, $2,100/ person for two people, same program and date. Information/registration: (616) 8836458 or info@jennifermaxsonassociates. com.

JUN 11 Grand Rapids Chamber of Commerce Virtual Business Exchange. 10:30 a.m.noon. Information/registration: grand rapids.org. JUN 11 Grand Rapids Young Professionals Trivia Night. 5:30-7:30 p.m., Rezervoir Lounge, 1418 Plainfield Ave. NE. Information/registration: gryp.org/. JUN 11 Rotary Club of Grand Rapids Convos On The Couch Via Zoom. Noon-1:15 p.m. Information/registration: https://grrotary. org/ JUN 12 GVSU Seidman School of Business Webinar. Topic: Addressing Employee Challenges. 1-2 p.m. Information/registration: gvsu.edu/seidman/webinars. JUN 14 Start Garden Happy Hour. 5:30-7 p.m., Lambert Edwards, 47 Commerce Ave. Information/registration: bit.ly/ JuneStartGardenHappyHour.

JUN 17 Massey Insurance Auto Reform Community Discussions. 5:45-7:15 p.m., Massey Insurance, 5384 S. Division Ave., Kentwood, snacks/beverages provided. Information/registration: (616) 532-6071. JUN 17-18 Acton Institute University Online. Speakers include Rev. Robert Sirico, Sam Gregg, Michael Miller, Anne Rathbone Bradley, Ryan Anderson, Stephanie Slade David Bahnsen and more. Registration: university.acton.org. JUN 18 Grand Haven/Spring Lake/Ferrysburg Chamber of Commerce June Bash. An evening of networking, appetizers and cool beverages. 5-7 p.m., Freedom Boat Club & Keenan Marine, 516 Pine St., Spring Lake. Information/registration: web.grand havenchamber.org/events. JUN 22 Wedgwood Christian Services 35th

JUN 26 GVSU Seidman School of Business Webinar. Topic: Hispanic Business Community (in Spanish). 1-2 p.m. Registration: gvsu.edu/seidman/webinars. JUN 30 Wyoming Business Leaders Meeting. 8-9 a.m., Marge’s Donut Den, 1751 28th St. SW, Wyoming. Registration: (616) 2614500 or d.kuba@instantcashmi.com. MEETINGS & CONVENTIONS Information: Stephanie Bradley, (616) 233-3577 or sbradley@experiencegr. com. CALENDAR POLICY: The Business Journal welcomes submissions to the calendar section. Send items to Calendar Editor, Grand Rapids Business Journal, 401 Hall St. SW, Suite 331, Grand Rapids, MI 49503 or email bjcal endar@grbj.com. Submissions must be received at least three weeks prior to the event. The Business Journal calendar posted on the publication’s website (grbj.com) includes listings for events extended beyond those printed in the weekly publication that are limited by space restrictions.

GRAND RAPIDS BUSINESS JOURNAL

PUBLIC RECORD

Home refinancing up, mortgage loans down CONTINUED FROM PAGE 9

“Most clients are driven to refinance by the prospect of improving their financial position, whether it be via lower monthly payments or reducing the number of years remaining on their mortgage,” he said. “In either case, the refinance can reduce financial stress, which can be very helpful in the midst of a pandemic.” Purchase applications at Mercantile dropped in April as a result of the stay-at-home order and inability for real estate agents to show homes, Setlock said. “The pace of purchase applications has increased since May 7, when Realtors were able to resume operations. As a result, we are on pace for a similar number of purchase applications in May 2020 compared to May 2019,” he said. “While some prospective homebuyers will put themselves on the sidelines due to a lost job, lower income or simply lower confidence, we are encouraged by the early activity in the purchase market.” Setlock said he believes refinances have provided a bright spot for clients “in an otherwise uncertain world.” “Refinances can act as a stimulus for the economy, as homeowners have more discretionary funds to spend on entertainment, vacations, etc.,” he said.

He added there are still some “terrific” down payment assistance programs available for clients who qualify. “These programs can assist with up to $8,000 in down payment support,” he said. Andrew Clarkson, vice president of regional mortgage production for Lake Michigan Credit Union, echoed what the others said about the volume of refinancing during this crisis. Clarkson “When the pandemic hit, we were experiencing that week the start of a refinance boom. We had applications pouring in at crazy rates, unlike anything we’ve ever seen,” he said. Clarkson said interest rates have decreased every year since he started working at LMCU in 2012, and this is the all-time lowest point. “It’s kind of like a broken record (when I tell my clients), but I’m saying it because it’s true,” he said. Clarkson said mortgage purchases at LMCU during the time when real estate offices were shut down dropped by about 50%, and

although his department is still doing transactions, he is hearing a lot of apprehension from about 10% of borrowers about whether they’ll be able to return to work or be laid off permanently as the pandemic drags on. For prospective homebuyers who feel they can still afford to take on a mortgage, Clarkson recommends they shop around to make sure they are working with a lender whose qualification standards they meet. He said there are three broad categories of mortgage lenders: big banks that are accountable to investors and hesitant to take on more risk; independent mortgage brokers with a revenue stream concentrated in mortgages, which are potentially being disproportionally affected by the current CARES Act requirements on mortgage payment deferrals and foreclosure forbearance; and portfolio lenders such as small banks, community banks and credit unions, which are offering the same products they always have in addition to having portfolios they don’t sell to investors, which allows them to follow baseline mortgage qualification regulations without additional “overlays.” “There are still great products out there, but it’s not a one-sizefits-all (scenario),” he said.

MORTGAGE TRENDS AT LOCAL LENDERS The following data is on mortgage purchase applications, purchase closings and refinances at three local lending institutions:

> LAKE MICHIGAN CREDIT UNION Purchase closings Jan. 1-May 15, 2019: 2,518 units for $506.8 million in revenue Purchase applications Jan. 1-May 15, 2019: 4,554 units for $1.05 billion Total applications (purchase and refinance), Jan. 1-May 15, 2019: 5,925 units for $1.35 billion* Purchase closings Jan. 1-May 15, 2020: 2,300 units for $523.9 million in revenue Purchase applications Jan. 1-May 15, 2020: 3,917 units for $1.05 billion Total applications (purchase, refinance) Jan. 1-May 15, 2020: 12,362 for $3.1 billion* *Part of the reason for the much higher 2020 revenue numbers — in addition to the number of refinances — is that home values again increased year-over-year.

> MORTGAGE 1 February 2020 purchase and refinance revenue for the month before the pandemic: $105 million April 2020 purchase and refinance revenue: $203 million Total mortgage purchases YTD through April: 1,365 for $240 million in revenue Purchase business: Down 40% YTD over last year, with 1,365 purchase closings in April 2020 compared to 2,150 as of April 2019

> MERCANTILE BANK OF MICHIGAN Purchase applications in April 2020 were about 50% lower than what they were in April 2019, with a “noticeable improvement” after May 7 when real estate agents were able to resume operations. The bank is on pace for a similar number of purchase applications in May 2020 compared to May 2019. Sources: LMCU, Mortgage 1, Mercantile Bank

BANKRUPTCY

20-00934 – YOUNGBLOOD, Taron M. & Edina J., 7150 Lake Vista SW, Byron Center, Eliot A. Sasson (Ch. 7) 20-00936 – CAIN, Jeremy D., 5047 Wabash Court NE, Jacob T. Tighe (Ch. 7) 20-00942 – JONES, Rosie L. & Adolph, 1057 Franklin SE, Jeffrey D. Mapes (Ch. 13) 20-00951 – SCHIPPER, Susan L., 328 Burt SE, Jeremy Shephard (Ch. 13)

MORTGAGES

Selected mortgages filed with Kent County Register of Deeds CEDAR SPRINGS MI PROPERTY HOLDINGS LLC, CTR Partnership LP, Parcel: 410331133018, $32,400,000 NEDD, Kahn J. et al, Old National Bank, Parcel: 411423251003, $654,000 LANE, Madelaine, Lake Michigan Credit Union, Parcel: 411434303012, $337,200 POPP, Joshua et al, United Bank, Parcel: 411428279018, $409,500 GRAY, Adam N. et al, USAA Federal Savings Bank, Parcel: 411136100026, $492,100 LEONARDIS, Lindsey J. et al, Lake Michigan Credit Union, Parcel: 411026299006, $284,000 LEESTMA MANAGEMENT LLC, Chemical Bank, Parcel: 411336383043, $4,700,000 4920 PLAINFIELD LLC, Grand River Bank, Parcel: 411027253001, $399,000 RITTER, Steven S. et al, Lake Michigan Credit Union, Parcel: 411320103022, $287,000 SIDDIQUI, Fazeel, Lake Michigan Credit Union, Parcel: 411324453092, $682,000 JAD DEVELOPMENT LLC, Team One Credit Union, Parcel: 411012479010, $1,500,000 DERENGOWSKI, Timothy D. et al, Lake Michigan Credit Union, Parcel: 412332152011, $310,000 ALLCHIN, Jeffrey et al, JTB Homes LLC, Parcel: 412110479025, $361,505 HEISS, Lindy, Lake Michigan Credit Union, Parcel: 410215100031, $335,000 MOSS, Michael et al, JTB Homes LLC, Parcel: 412106209009, $289,974 WELCH, Thomas J. et al, Fifth Third Bank, Parcel: 411921228022, $1,950,000 SELF-STORAGE PORTFOLIO X DST, Key Bank, Parcel: 411416352024,

JUNE 1, 2020

$66,625,000 LEESTMA MANAGEMENT LLC, Chemical Bank, Wyoming, $2,600,000 BUSSELL, Paul E. et al, TCF National Bank, Parcel: 411129226002, $283,000 LUGO, Rosalba, Broker Solutions, Parcel: 412114177039, $320,336 HARCOURT, Paul D., Huntington National Bank, Parcel: 411916276003, $302,100 CAMPBELL, Kenneth J. et al, Lake Michigan Credit Union, Parcel: 411907177039, $327,750 ZIEGER, Andrew J. et al, Mercantile Bank, Parcel: 411424400079, $368,000 NAGROSEN, Anthony M. & Heather A. Trust, Neighborhood Loans, Parcel: 412106225015, $304,210 BROWN, Christopher et al, BNC National Bank, Parcel: 411433477010, $312,000 BREHM, Christopher, Mercantile Bank, Parcel: 411926300070, $395,250 TOOLEY, Eric M. et al, Old National Bank, Parcel: 411904426029, $536,665 TYKOCKI, Nicholas M. et al, Lake Michigan Credit Union, Parcel: 410828376004, $475,000 VIS, Dan J. et al, TCF National Bank, Parcel: 412215300016, $763,000 AVDIC, Emir et al, Consumers Credit Union, Parcel: 411934201031, $483,000 NIMPHIE, Benjamin et al, TCF National Bank, Parcel: 411433453003, $306,000 IGOE, Sean, Primelending, Parcel: 411733330027, $348,650 TINGLEFF, Stephen et al, Quicken Loans, Parcel: 411113400029, $285,200 VANEK, Kenneth R. et al, Northpointe Bank, Parcel: 412132400038, $332,500 GILLETTE, Nathan et al, Lake Michigan Credit Union, Parcel: 410728276012, $276,000 NELSON, Eric W., Private Mortgage Wholesale Inc., Parcel: 411530476002, $484,500

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.

Pandemic can’t stop new cannabis business CONTINUED FROM PAGE 3

cal marijuana caregiver for over 10 years. He assists patients with debilitating and chronic illnesses such as rheumatoid arthritis, Crohn’s disease and cancer. Some of the items that are sold in his 750-square-foot store include different types of marijuana flowers, vape cartridges, topicals, tinctures and edibles like gummies, cookies, mints and chocolate. The marijuana plants are purchased from growers within the state, he said. Coping as a new business in Grand Rapids during the pandemic is only the newest hurdle Kornoelje has had to overcome. He said he had to deal with numerous state and city regulatory hurdles, including the city zoning ordinances, lottery and construction process, to open the only locally owned marijuana dispensary in Grand Rapids. Kornoelje said Lynee Wells,

founder and CEO of Aligned Planning in Grand Rapids, was able to show him the zoning and regulatory path to establishing his business and assist with his planning commission presentation. “We are located in a mixed-use industrial zone called the transitioning city center,” he said. “It is a zone that is permitted by the city of Grand Rapids for medical marijuana because it is industrial in use, but my property is unique because it was historically used for residential purposes, but it lies in a commercial industrial zone. It is a bit of a unique property, so we converted the residential home into commercial retail, which is what we operate today. “I have a deep passion for cannabis, cannabis production and the plant itself. I have always believed in the plant itself on a medicinal level so when the opportunity came to pursue it commercially, in a regulated marketplace, I took the leap.”

Right Place learns from small business relief collaboration CONTINUED FROM PAGE 2

Compliance Labs LLC will be expanding its current operations in Kentwood. In addition to a capital investment of $2.57 million, the company will bring 27 new jobs to the area. The Right Place also has had eight or nine inquiries of companies that want to expand in the

area in the next 12 to 18 months, Klohs said. The Right Place has been a key player in diverting manufacturing capabilities to producing necessary PPE, as previous Business Journal reports highlighted. When Spectrum Health was short on nasal swabs for COVID test kits, Eric Icard, senior busi-

ness development manager for Right Place, connected with Keystone Solutions in Kalamazoo to produce 100,000 swabs. Klohs added Icard also tapped Hex Armor, a provider of worksite PPE in Grand Rapids, to deliver 4,500 safety goggles to the Kent County Health Department.

Right Place also referred Hex Armor to three different agencies to find 100 workers to make face shields, Klohs said. “We’ve had over 1,500 connections we’ve made through this business collaboration,” Klohs said. “It’s been an amazing experience … if I had to go through a crisis like this, I’d just as soon do

it in this community.” Mroz added Right Place has had over 1,700 individual company assists since March 18. Comparatively, the organization averages 100 to 250 in just a month. “What we saw was four times what we’d do in a normal month,” Mroz said. “That’s the type of demand in the market right now.”

GRAND RAPIDS BUSINESS JOURNAL

JUNE 1, 2020

Restarting common sense Ready to go? BUSINESS JOURNAL STAFF Restart proposal calls attention to the importance of keeping talent top-of-mind and stresses the significance of the Going Pro Talent Fund, addressing child care deficits and the great need for employers to re-skill after COVID-19 as employment options shift. Locally, the chamber is exploring partnerships with Kent County and other stakeholders to provide small business owners with a “PPE kit” to ensure best practices and guidance for a successful and safe return to work. Lastly, the Smart Restart pointed out that capacity limits and consumer confidence will make it difficult for restaurants and bars to serve enough patrons to earn a profit. With summer approaching, the chamber is exploring working with local government to designate “social districts” to allow businesses to extend their liquor license to outdoor public spaces, such as a converted park, parking lot or street. This would permit the service of customers while allowing social distancing and safe practices to continue. “Being forced to close has put the John Ball Zoo in an unprecedented time in terms of revenue losses averaging $1 million per month in both April and May,” said Peter D’Arienzo, CEO of John

Ball Zoo. “Should we remain closed, those numbers double to $2 million of lost revenue per month in June, July and August. The John Ball Zoo family of employees and the broader community is at the center of what we do. We are ready and prepared to welcome the community back safely once we are allowed to do so. Our team has worked hard and is excited to demonstrate the additional measures we have put into place to ensure the safety of our guests, employees and the nearly 2,000 animals who call John Ball Zoo home.” Survey says A recent poll finds Michiganders plan to ease back into social activities like going out to eat and attending concerts or sporting events as restrictions are lifted or loosened in Michigan. The poll was conducted April 20-24 by Warrior Market Insight. It was commissioned by Great Lakes Wine & Spirits (GLWAS), a statewide distributor of wine and spirits, after the distributor was contacted by several restaurants seeking to gauge consumer sentiment on returning to some normal activities. “The poll drew from a panel

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he Grand Rapids Chamber of Commerce is angling for a “smart restart” to the Michigan economy. The chamber announced at John Ball Zoo during a May 19 press conference formation of a Smart Restart agenda approved by the chamber’s board of directors in support of “a responsible reopening” of the local small business community amid COVID-19. In April, the Grand Rapids Chamber presented a phased restart plan to policymakers with a framework based on geographicand activity-based risk to create pathways for regions to responsibly reopen as quickly and safely as possible. Building upon this, the priorities highlighted in the Smart Restart announcement included policies that the chamber believes impacted business will need to move forward: property tax deferment, employer liability protections, regulatory flexibility and common-sense compliance. “Recovery is critical, because as the engines of our economy, our businesses create the value, service and activity that generate the resources that make our communities run and thrive,” said Rick Baker, Grand Rapids Chamber president and CEO. The chamber said the Smart

of consumers and a social media campaign” said Mark Barron of Warrior Market Insight. “In total, over 1,000 Michigan residents responded to the survey from 64 of the state’s 83 counties.” “This poll shows strong support for the state’s efforts to slow the spread of COVID-19 and flatten the curve in Michigan. It’s clear those efforts are paying off as regions of the state are beginning to open,” said Lew Cooper III, co-CEO of Great Lakes Wine & Spirits. “The poll also paints a sobering picture of how reluctant Michiganders are to return to some normal activities before a COVID-19 vaccine or antibody tests are available.” When asked about Gov. Gretchen Whitmer’s “Stay Home, Stay Safe” Executive Order, issued on April 9, nearly 49% of respondents were neutral on the restrictions to slow the spread of COVID-19, while 17% felt it didn’t go far enough. Meanwhile, 12% of those surveyed felt the order went too far. More than 70% of respondents approved of plans to reopen the economy in phases. The poll also gauged Michiganders’ comfort with returning to normal activities, like going out to eat at a restaurant, catching a movie or attending a sporting event. When asked how likely they would be to resume these activities within the first week the stay at home order is lifted, respondents said: •77% would be unlikely to see a sporting event, while 11% would attend one •76% would be unlikely to go to a bar or nightclub, while 14% would

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STREET TALK likely go •74% would be unlikely to go see a movie, while 15% would be to likely to see one •62% would be unlikely to visit a restaurant, while 32% would be likely to visit one Respondents grew slightly more comfortable resuming those activities within the first month the stay-at-home order is lifted. The largest change in activity after the first week was respondents’ willingness to go back out to restaurants. •70% would be unlikely to see a sporting event, while 17% would attend one •67% would be unlikely to go to a bar or nightclub, while 21% would likely go •63% would be unlikely to go see a movie, while 25% would likely see one •38% would be unlikely to visit a restaurant, while 51% would likely visit one Those surveyed approve of bars and restaurants providing hand sanitizer (80%), installing physical barriers (74%), requiring social distancing between groups (70%), requiring servers to wear masks (67%) and taking customers’ temperatures at the door (46%). However, it likely won’t be until a vaccine or coronavirus antibody tests are available before respondents said they would feel more comfortable returning to large gatherings, like sporting events (65%) or concerts (67%). “This poll shows Michigan’s restaurant and entertainment industry will be slow to rebound from the economic impact of this pandemic, but it will rebound,” Cooper said.

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GRAND RAPIDS BUSINESS JOURNAL supports our medical community, grocery industry, non-profits, retail and restaurant workers, truck drivers, mail carriers, and teachers. To all of our neighbors on the front lines, YOU ARE OUR HEROES! With gratitude, we THANK YOU!