BUSINESS MONTHLY G R E AT ER LANS ING
JUNE 2016
THE WORLD OF WHARTON MIKE BRAND, EXECUTIVE DIRECTOR OF THE WHARTON CENTER IN EAST LANSING In this issue •
LANSING AIRPORT ADDS DIRECT FLIGHTS TO WASHINGTON D.C.
•
SIN STUDIOS BRINGS VIDEO GAME DEVELOPMENT TO LANSING
•
MICHIGAN’S WINE INDUSTRY CONTINUES TO GROW
2016 -2017 SEASON
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G R E AT E R
L A N S I N G
BUSINESS MONTHLY
JUNE 2016 ON THE COVER Lansing Capital Region International Airport Adds Direct Flights to Washington D.C. ...........................................................6 Michigan’s Wine Industry Continues to Grow....................12 SIN Studios Brings Video Game Development to Lansing................................................................................................14 The World of Wharton: East Lansing’s Broadway Adds Value to Local Economy...................................................................24
NEWS Understanding the Presidential Primaries.............................8 Panama Papers Offer Insights into Wealth and Deception .................................................................................10
BUSINESS MONTHLY GREATER L AN SING
JUNE 2016
24 FEATURE
Commentary.................................................................................................................................................. 4 American Fifth Spirits: Creating a New Downtown Atmosphere.................................... 16 Greater Lansing at a Glance ............................................................................................................... 18 Behind the Scenes.................................................................................................................................... 22 Visual Breakdown..................................................................................................................................... 28 Economy ...................................................................................................................................................... 30
THE WORLD OF WHARTON
Regional Roundup: St. Johns............................................................................................................... 32 Business Calendar ................................................................................................................................... 34
MIKE BRAND, EXECUTIVE DIRECTOR OF THE WHARTON CENTER IN EAST LANSING
Man on the Street ................................................................................................................................... 35 In this issue •
LANSING AIRPORT ADDS DIRECT FLIGHTS TO WASHINGTON D.C.
•
SIN STUDIOS BRINGS VIDEO GAME DEVELOPMENT TO LANSING
•
MICHIGAN’S WINE INDUSTRY CONTINUES TO GROW
Cover photography by Erika Hodges
Notable News ............................................................................................................................................ 36
CORRECTION In the May issue of Greater Lansing Business Monthly, credit for the graphic showing new developments in the Lansing area was inadvertently omitted. The information in the graphic was provided by CBRE|Martin.
Greater Lansing Business Monthly | Volume 29, Issue 6
group
Greater Lansing Business Monthly is published monthly by M3 Group at 614 Seymour Street, Lansing, MI 48933. Periodicals postage paid at Lansing, Michigan USPO. USPS number 020w807.
Subscriptions: Subscriptions are available at $22 per year for postage and handling or $38 for two years. Call (517) 203-0123 or visit lansingbusinessnews.com to subscribe. Postmaster: Send address changes to The Greater Lansing Business Monthly, 614 Seymour Ave., Lansing, MI 48933. Send additional subscription requests and address changes to The Greater Lansing Business Monthly, Inc., 614 Seymour Street, Lansing, MI 48933. Copyright © 2016 The Greater Lansing Business Monthly, Inc. All rights reserved. Editorial Office: 614 Seymour Street, Lansing, MI 48933 lansingbusinessnews.com 2
G R E AT E R L A N S I N G B U S I N E S S M O N T H LY
JUNE 2016
Keep Your Business Moving Forward Get the advice that will help your company succeed. As Jennifer’s business continues to grow, so does her need for advice from the local merchant service experts at FirstMerit Bank. By knowing and understanding Jennifer’s needs, they were able to better assist her with fraud and chargeback mitigation, as well as help her business stay PCI compliant. And with access to a 24-hour support desk and online credit card transaction information, Jennifer’s business can now enjoy many more years of forward momentum.
TO L E A R N MOR E, C O N T A C T :
Michael Debri, Community President, at 517-337-4159 or michael.debri@firstmerit.com.
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Follow the latest market trends @firstmerit_mkt
Member FDIC
Jennifer reflects a composite of clients with whom we’ve worked; she does not represent any one person.
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COMMENTARY
G R E AT E R
L A N S I N G
BUSINESS MONTHLY
Publisher: Tiffany Dowling tiffany@m3group.biz Sales Manager: Jennifer Hodges jhodges@m3group.biz Media Specialist: Jill Bailey Account Managers: Manny Garcia Megan Fleming Derek Drumm Production Director: Kelly Mazurkiewicz Art Director: Mark Warner Communications Director: Ami Iceman-Haueter Graphic Designers: Nikki Nicolaou Kerry Hidlay Photographer: Erika Hodges Editor: Alicia Pilmore Web Manager: Skylar Kohagen
LANSING’S BEST KEPT SECRET
E
veryone’s idea of entertainment differs. The definition, at its core, is amusement or distraction. And, it has long been associated with hospitality and making people happy. One’s personal definition of entertainment may vary wildly from another’s, but the fact is that there are many options to keep someone as distracted as they want to be – even in the greater Lansing region. If you think about the definition of entertainment, you could really throw some interesting items on the list. If we had to admit to one of the biggest distractions we have, at the top of the list would have to be social media. Whether you’re using Facebook or Twitter to update customers, it’s important to remember that your customers are using it for entertainment. Hopefully, that helps you craft messages that get read. I get frustrated when I hear people say that there is nothing to do in the Lansing region. It just isn’t true. Any of us could be at an event, party, activity or fundraiser any evening or weekend. There are many opportunities to be entertained or distracted from life at any time. Entertainment is big business. We’re lucky to have very visible options including MSU’s Wharton Center, BIG 10 sports activities and Lugnuts baseball. But, those are just the tip of the iceberg. Every day there are new options launching that will give you a reason to get up and leave the comfort of your home. Businesses are popping up to take advantage of the multi-million dollar industry. Here are a few newer options that you may not know exist: 1. You can rent kayaks to traverse the Grand River 2. Attend a Lansing United soccer game or Capital City Stealth Football game 3. Visit amazing art galleries in Downtown and Old Town Lansing 4. Attend Lansing’s Comic Con 5. Solve puzzles to figure out how to escape an inescapable room at Escape 20/20
Event Calendar Manager: Jaime Hardesty
There are a couple of businesses just launched or are planned activities including:
GLBM Editorial Board:
JoyRide Pedal Tours that will give you an opportunity to couple exercise and a party atmosphere (Other companies are following this model too.)
April Clobes — President and CEO, MSU Federal Credit Union Trish Foster — Senior Managing Director & COO, CBRE|Martin Lisa Parker — Director of Alumni Career and Business Services, Michigan State University Alumni Association Deb Muchmore — Partner, Kandler Reed Khoury & Muchmore
There is a proposed plan to develop a zip line over the Grand River in Downtown Lansing (fun!) The most important piece of the entertainment puzzle in our community is that people need to support the local business owners. These men and women are taking a risk and need you to spread the word or visit for yourself. It’s difficult to listen to people complain that there are not entertainment options when they are not showing up around town and utilizing the assets we have at our disposal. See you around town,
Tom Ruis — Vice President, Fifth Third Bank Doug Klein — Executive Director, Mason Area Chamber of Commerce Mark Hooper — Partner, Andrews Hopper Pavlik Diontrae Hayes — Legislative Director for State Senator Coleman Young, II
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G R E AT E R L A N S I N G B U S I N E S S M O N T H LY
Tiffany Dowling | Publisher
JUNE 2016
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NEWS
NEW LANSING TO D.C. FLIGHTS PROMISE ECONOMIC GROWTH IN MICHIGAN BY SARAH SPOHN
Michigan’s Capital City will soon be flying higher than ever. Starting July 5, American Airlines will provide direct service from the Lansing Region International Airport to Washington D.C.’s Ronald Reagan National Airport. Approval from the U.S. Department of Transportation for the Federal Aviation Administration to bring back a round-trip flight between Lansing and D.C. was announced at a press conference on Monday, April 18. Chris Holman, Chairman of the Board of the Capital Region International Airport, spoke on the new route’s necessity. “This community has long needed the service from Lansing to Ronald Reagan National Airport restored,” Holman said. “We support the flight, we have supported it in the past and we will support it in the future.”
... THE AIRPORT IS EXPECTED TO GENERATE $16 MILLION IN ECONOMIC IMPACT ANNUALLY — SOLELY FROM THE NEW D.C. ROUTE. arrangements included an overnight stay in the nation’s capital. The new American Airlines option will depart around 6:30 a.m.; get travelers on the ground in D.C. around 8 a.m.; and depart after the typical nine to five work day, getting them back to Lansing around 7 p.m.
The service, directed toward business travelers, will connect many businessmen and women from the local area to our nation’s capital far more conveniently and efficiently than previous routes.
Trillion Aviation Inc. studies projected a $1.3 million deficit for 2017, had the American Airlines route not been added to the Lansing-based airport. The same research also showed that the airport is expected to generate $16 million in economic impact annually – solely from the new D.C. route. The route was highly coveted and many other airports throughout the country put in bids to airlines proposing the new route to D.C.
Sun Country Airlines provided a Lansing to D.C. flight until October 2015, but travel
After 1,200 letters of support were collected showing a relevant need and benefit for the
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greater Lansing area and mid-Michigan, the Capital Region International Airport received the good news. David Gregory, a partner at Kelley Cawthorne, a lobbying firm headquartered in Lansing, spoke about the area’s support for the highly-demanded service. “It’s great grassroots lobbying,” Gregory said. “The demand is here and it needs to be served. I think it’s vital,” he said. “We all have a lot of business in our nation’s capital and I think it’s essential to be a world-class capital.” Linking the state capital to the nation’s capital will prove an asset to local trade associations, government, lobbyists, Michigan State University students, staff and the leisurely traveler.
NEWS
travelers, the new service will also benefit tourism within the state. Greater Lansing Convention and Visitor’s Bureau President Jack Schripsema spoke about the local impact. “The new service from our nation’s capital makes our region more accessible to visitors,” said Schripsema. “And will strengthen our efforts to grow leisure and grow demand for the greater Lansing area.” Holman spoke on the forecasted success of the route.
(From left) Nicole Noll-Williams, Director of Regional Marketing at Lansing Airport; Robert Selig, Manager of Capital Region International Airport; Mark Tochman, Corporate Sales Manager of American Airlines; Chris Holman, CEO Michigan Business Network; and Congressman Mike Bishop pose at the Capitol Region International Airport press release announcing daily direct flights from Lansing to Washington D.C.
“State capitols are often criticized for being backwaters,” Gregory said, referring to the areas as being isolated.
city - but to try to match the Columbuses and Madisons of the world, we really need this connection.”
“We’re not a Denver, or Atlanta (the largest cities in the state) we are a medium size
Aside from obvious conveniences and efficiencies the route will provide to outbound
“It is an economic boom for not only the general flyer, but certainly for the business community and the political community of mid-Michigan,” he said. “This flight won’t have any choice but to be successful.” Sarah Spohn received her degree in Journalism from Lansing Community College. She’s a concert junkie; living and breathing in both the local and national music scene. She is proud to call Lansing her home, finding a new reason every day to be smitten with the mitten.
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NEWS
UNDERSTANDING THE PRESIDENTIAL PRIMARIES BY ALICIA PILMORE
With only a handful of states left to vote in the Presidential Primaries and Caucuses, the path to the nomination at both conventions is in sight. In June, seven states will hold primaries to vote on their preferred Democratic candidate and five states will vote on the Republican side. As each party’s national convention comes closer, the race to the Oval office is just starting to heat up. Those who don’t follow the election process closely might ask about the importance of the primaries and how they work. As the primaries wrap up in the first few weeks of the month, understanding what the results of each party’s primary will mean for the nomination process is important to understand as we head into the 2016 election. THE HISTORY The question of how to decide who each party’s nominee would be has been posed by politicians for hundreds of years; people have been trying to figure out the best way to pick a nominee since George Washington left office. For many years, when the country was still new, members of Congress nominated their respective parties’ candidates for president. But by 1832, national conventions were put in place to nominate the presidential candidates for each party. By 1840, conventions were the standard. As the United States continued to grow, many of the states wanted more of a say in who was chosen to represent their party at the national convention. In the early 20th Century, lawmakers began putting laws into place that allowed citizens to vote for their preferred candidate before each party’s national convention. By 1916, at least 25 states had passed laws regarding primaries for each party. And after many years of trial and error, the current systems that each party uses were set in place. THE BREAKDOWN Although the primary processes for each party are different, there are many similarities in how they operate within each state. There are two main types of primaries, closed and open, and each state decides which type it will use. In a 8
closed primary, registered voters can only vote for candidates in the party that they are affiliated with. In an open primary, registered voters can vote in either primary, regardless of their party affiliation. For example, Michigan, which held its primaries at the beginning of March, uses an open primary system and voters are not required to affiliate themselves with either major party. From here, the processes begin to vary. On the Democratic side, each candidate gets a percentage of the delegates allotted by each state based on their performance in that particular state. For example, in Michigan 147 delegates represent the state at the national convention and vote for who will be the party’s nominee. Of those 147 delegates, 17 of them are not pledged to any candidate and can vote freely at the convention. These are called superdelegates, and while the candidate they vote for is often speculated, their votes are not cast until July. The other 130 are divided up between the candidates based on the number of votes they receive. In this election, because Senator Bernie Sanders won 49.8 percent of the Democratic vote in Michigan, 67 pledged delegates from the state will vote for him at the convention in July and the remaining 63 pledged delegates go to former Secretary of State, Hillary Clinton. In states that vote between March 1 and March 14, the Republican primaries work the same way; however, according to the Republican National Committee’s rules on the nomination process, states that vote after March 14 have the option to award delegates to a candidate on a “winner-takeall” basis, meaning that the candidate with the highest percentage of votes is awarded all of that state’s delegates. Only a handful of states choose to run their primaries in this way. Unlike the Democratic side of the race, the Republican Party does not use superdelegates. Because of this, all delegates are pledged to a specific candidate going into the national convention. THE MAGIC NUMBERS On both sides of the race, a specific number of delegates are needed to win the party’s nomination: 2,383 delegate votes are needed
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at the Democratic Convention and 1,237 votes are needed at the Republican Convention. Because superdelegates don’t vote on a candidate until the convention and one can only speculate about whom they will vote for, it can be more difficult to decipher who the nominee will be. Currently, Clinton leads with 1,716 pledged delegates, while Sanders trails her with 1,433 pledged delegates. If the 524 superdelegates, who many assume will vote for Clinton, are added, her lead is far more substantial. But as previously stated, the final results won’t be known until voting is cast at the convention in July. Because superdelegates are not used by the Republican Party, who the nominee will be is much more clear, especially in this year’s race. With 1,134 pledged delegates and all other candidates having suspended their campaigns, billionaire and real estate mogul Donald Trump is the likely nominee for the Republican Party. Even though he is the only remaining candidate in the race, the last five states to hold Republican primaries will still have the opportunity to vote. The primaries are an important part of the election process, and understanding how they affect who is nominated for each party is a crucial step in understanding how leaders are chosen in the United States. For more election coverage and information about the upcoming national conventions, visit lansingbusinessnews.com. Alicia Pilmore is a Communications Specialist at M3 Group and Editor for Greater Lansing Business Monthly. She loves writing, wine tasting and spoiling her cat, Pishi.
NEWS
BUSINESS F R I E N D LY Whether you have a single person LLC or you’re running a mid-size corporation, you need a financial institution that has the products and services you need for day-to-day operations and future growth. MSUFCU is that financial institution. • Term loans • Lines of credit • Low-rate Visa Credit Card • Merchant processing • Payroll services There are many ways to join. Contact us today. www.msufcu.org/business 517-664-4848
Federally insured by NCUA.
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NEWS
PANAMA PAPERS OFFER INSIGHT INTO WEALTH AND DECEPTION BY ALLISON SPOONER
It’s not a surprise to learn that the ultra-rich have been hiding their wealth. But with the recent leak of the Panama Papers, we are beginning to see just how far the rich from across the globe are willing to go to hide, share and grow their wealth. The Panama Papers are a group of 11.5 million leaked files from the database of the world’s fourth biggest offshore law firm, Mossack Fonseca. While what they reveal may not be a new concept to the world, the enormity of what they reveal is shocking. The papers show the extreme depths of deceptions not just the rich, but world leaders, politicians and even their families, are using to exploit secret, offshore tax regimes. In short, some of the people using Mossack Fonseca have avoided ever having to pay taxes in certain countries. They accomplish this by using the firm, and others like it, to set up front companies in tax havens like Panama or the British Virgin Islands. They invest their money there and avoid the taxes they would have to pay in their home countries. This leak reveals that they have had help from big banks and law firms from around the globe to set up shadow companies to hold that money. While the banks and firms may not be breaking any laws, the papers suggest that they may be looking the other way when it comes to making sure their clients aren’t breaking the law. The investigation has already revealed offenders, such as the British prime minister, pointed to Vladimir Putin and led to the resignation of Iceland’s prime minister. In total, it has revealed the offshore holdings of 140 politicians and public officials around the world – and that’s just the tip of the iceberg. It’s an unprecedented leak that may lead to unprecedented consequences. Taxes aren’t new, and tax evasion isn’t new. The rich have been hiding their money for centuries, even when that money was made in lawful ways, for many reasons. And while the United States has two major laws in place meant to stop tax evasion and secrecy, according to an article in The Globalist, the laws do not have enforcement 10
THE PAPERS REVEAL THE EXTREME DEPTHS OF DECEPTIONS NOT JUST THE RICH, BUT WORLD LEADERS, POLITICIANS AND EVEN THEIR FAMILIES, ARE USING TO EXPLOIT SECRET, OFFSHORE TAX REGIMES. provisions attached to them and therefore have been ineffective. Even before this reveal, given the fact that financial losses from evasion activity have been steadily growing, the Organization for Economic Co-operation and Development (OECD) has tried to sponsor new regulations that would create transparency. Ninety-seven other countries have signed on to these new regulations. The Obama Administration has endorsed them, but the U.S. is holding up the entire process as Congressional Republicans have refused to sign on. But now that the problem is so obviously out in the open, there is no avoiding the consequences. When money earned by those in one country doesn’t stay in the country it is meant to support, those that end up losing are the residents and infrastructure of that country. According to numbers reported by Global Financial Integrity and reported in The New York Times, developing economies recently lost $7.8 trillion in cash due to evasion maneuvers. And, according to a quote by Peter Atwater in the same article, it isn’t just the fact that the rich can move wherever they want using these means of evasion; it’s that the rest of the world, the 99 percent, (deserted cities like Detroit and empty, leaking chemical plants like in West Virginia) are left with the aftermath. Facing the consequences of the leak could mean more pushing from those already behind new guidelines and could make those who were unsure stand up and take notice. And that means a reevaluation of what works and what doesn’t work in regard to our market system. There
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could be more scrutiny on banks, as they were facilitators of the accounts, and more regulation/ taxation across the board. According to Frida Ghitis of CNN, it could be the end of secrets. She predicts that, if all of the claims turn out to be true, they will help change behavior. While being named in these papers doesn’t mean you are guilty of wrongdoing, in many cases it points to leaders who are stealing from their countries and their people. The leak will be an arguing point for those that were already pushing for more bank regulations and higher taxation of the wealthy. And, if new regulations are enforced, this could mean a new revenue stream for the U.S. Treasury, as those who were evading taxes are forced to pay them. The repercussions of this leak will continue to be seen and felt across the world as more and more information is revealed. While the specific effects remain to be seen, unmasking the deception that is taking place among the world’s wealthy and powerful is simply the first step toward punishing and preventing additional corrupt and deceptive practices. Allison Spooner is a freelance, content wizard. She writes content that helps businesses in Lansing and beyond tell their stories, educate their customers, and promote their brands. She is the Content Manager at StartupLansing, an online publication about startup activity in Lansing, regularly contributes to Capital Gains and loves helping businesses bring their words and ideas to life. To follow her writing journey and see a list of her professional content services, visit her website at theresistantwriter. com or find her on twitter at @allyspoon.
SPONSORED
NEW DEVELOPMENTS IN LANSING ADD VALUE TO THE AREA BY NICK EYDE
The new word around my house these days is, “gru," the Italian word for crane. My three and a half year old son’s first language is Italian, and he loves anything having to do with construction. Therefore, he is fascinated by the sight of large cranes throughout the metro area, particularly along the Michigan Avenue corridor and on Michigan State’s campus. I can’t think of the last time that I have seen so many “gru” in the Lansing area! It is truly an exciting time, with multiple developments underway along the Michigan Avenue corridor, Old Town and Washington Square. New restaurants and housing developments are popping in many spots in and around the City Center. There is no shortage of demand for interesting downtown living, entertainment and dining options. Another new word to the area, and downtown in particular, is the word “Sarnie.” Sarnie is the English (as in British English) word for sandwich. The Sarnie Deli will be opening its doors for business on the first floor of the Knapp’s Centre this summer. The Deli uses Boarshead
deli meat and freshly baked, high quality bread. The shop’s owner hails from England and has crafted a very interesting sandwich shoppe that includes many homemade sauces, breakfast options, smoothies, salads and of course, sardines. Across the street from Knapp’s and The Sarnie Deli, sits the historic 228 and 232 S. Washington Square buildings. The two classic brick structures with large retail storefront windows were built in the 1920s and 30s. The two buildings have been redeveloped and are now new homes to the Patrick O’Keefe Law Firm and Domino’s Pizza downtown. There is still 3,000 square feet on the first floor of 228 S. Washington Square building available, with excellent frontage on Washington Square. The space has stunning exposed brickwork and expansive high ceilings. If you haven’t ventured into this “new” territory yet, we invite you to come and rediscover Downtown Lansing this summer!
E Y D E C O M PA N Y 517-351-2480 COMMERCIAL RETAIL APARTMENTS View all of our available properties at eyde.com or call us at 517-351-2480.
eyde.com
University Commerce Park
Capitol Commerce Center
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FEATURE
MICHIGAN WINE INDUSTRY SLOWLY GROWS, BRINGS CAPITAL AND TOURISM TO THE STATE BY MICKEY HIRTEN
As a wine producing state, Michigan is both a powerhouse and a pigmy. With nearly 3,000 acres devoted to wine grapes, Michigan ranks fifth in the nation, trailing California, Washington, Oregon and New York. But in an industry dominated by West Coast wineries, the state produces just 0.3 percent of the nation’s wine. In 2015, Michigan’s wine industry – farming, manufacturing and tourism – contributed more than $300 million to the state’s economy. Until upended by two frigid winters, production of grape wines had been increasing each year, as has the number of wineries, according to the Michigan Grape and Wine Industry Council. The quality of Michigan wines, most notably its Rieslings and sparkling wines, is gaining notoriety in a very competitive marketplace. There are more than 120 wineries in the state, most of them located within 25 miles of Lake Michigan in four federally approved viticulture areas: Lake Michigan Shores and Fennville, both located in the southwest corner of the state;
WITH NEARLY 3,000 ACRES DEVOTED TO WINE GRAPES, MICHIGAN RANKS FIFTH IN THE NATION ... Old Mission Peninsula in Grand Traverse Bay; and the Leelanau Peninsula. Most produce wines from vinifera grapes, the traditional European stock. But wines are also made from native grapes like Concord and Niagara, as well as from hybrids developed from vinifera and native varieties. In the next few years, consumers are likely to see more wines from these hybrid grapes, which are better adapted to Michigan’s often harsh climate. The bitterly cold winters of 2014 and 2015 severely damaged vines, in turn reducing wine grape output from 7,600 tons in 2013 to 2,600 tons in 2014, according to the U.S. Department of Agriculture. The shortage forced many wineries to import grape juice, often from the state of Washington. Yet despite its climate, the state has a long history of wine making. Authors Sharon
Kegerreis and Lorri Hathaway found references to wine making by French explorers in 1679. Grapes grew wildly along the Detroit River, and by the early 1700s a vineyard was established at Fort Ponchartrain du Détroit. Kegerreis and Hathaway noted that a Michigan wine industry succeeded in and around Monroe County until Prohibition. It started up again after repeal of the amendment. Today, Michigan ranks 10th among all states in wine production at 2.5 million gallons. It is up 65 percent in the last five years, according to the Industry Council. Executive Director, Karel Bush, says growers and producers are optimistic, seeing recovery from past winters’ damage. “Vines are budding as they should. But quality and quantity all depend on the growing season,” said Bush.
THREE TYPES OF WINE GRAPES GROWN IN MICHIGAN
These are the classic European varieties such as Chardonnay, Riesling (the most widely planted white), Pinot Noir (the most widely planted red), Pinot Grigio/Gris and Cabernet Franc; about 70 percent of Michigan’s wine grapes are vinifera. Since 1997, 90 percent of the new plantings in Michigan have been vinifera varieties.
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(Sometimes called French/American hybrids). These are botanical crosses between vinifera varieties and grapes native to North America. Typical names are Vidal, Chambourcin, Marechal Foch and Vignoles; about 27 percent of Michigan’s wine grapes are hybrids.
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Actually close relatives of true native varieties. Typical names are Concord and Niagara; about 3 percent of Michigan’s wine is made from these varieties.
Source: Michigan Grape and Wine Industry Council
FEATURE
Success for Michigan wineries requires a balance between production and promotion. Because most Michigan wineries are small, they lack the economies of scale available to large well-established producers, said Dan McCole, an associate professor in Michigan State University’s Department of Community Sustainability.
that 90 percent of wineries in those states sold half of their wine in their tasting rooms. Their success is based on service, the price and quality of wines and the overall setting.
While the per bottle cost for a large winery is about $4, the cost per bottle for small wineries is closer to $12, he said. He added that despite higher costs, small wineries that populate Michigan could be quite successful and profitable.
Burgdorf’s produces 3,500 to 4,000 12-bottle cases of wine annually – dry whites and rosés, semi-sweet and sweet whites, dry reds, semisweet and sweet reds, blushes and fruit wines, many of them award winning.
“There is definitely a market for people who want to visit wineries, and local is better. These wineries sell all of the wine that they can produce out of their tasting rooms,” McCole said.
All of the wine is made from Michigan grapes, most of them grown, pruned and harvested to Burgdorf’s specifications in vineyards in the state’s southwest wine region. Burgdorf wines are sold throughout the state and hand-delivered to retailers by Dave Burgdorf. Like other small wine makers, the Burgdorfs are hands-on owner-operators, pressing grapes, fermenting the juice, bottling, distributing and promoting their products.
He and his colleagues in the MSU Department of Community Sustainability specialize in marketing, branding and tasting room studies with cold hardy wines especially suited to the Michigan climate. Their survey of wine tasting visitors in Michigan, Wisconsin and Minnesota found
The 50:50 ratio holds true for Burgdorf's Winery in Haslett, said Dave Burgdorf, who has operated the business since 2005 with his wife Deb.
Burgdorf’s tasting room in Haslett draws a wide spectrum of visitors and has become a destination tourist attraction in mid-Michigan.
“We’re not in a tourist zone or along a tourist track like along the lake or in Frankenmuth. We don’t get walk-ins,” Burgdorf said. But they do get repeat visitors. “When people find us they come back all the time.” Burgdorf said Michigan wines have unique characteristics and can occupy a unique niche. The industry’s embrace of cold hardy wine grapes will accentuate these Michigan characteristics. “We will have a big wall to climb,” Burgdorf said. “But it will be good to have some new flavors of wine. If you want a wine to be like one from France or California, I tell people to go buy that."
Mickey Hirten is an award winning writer and editor. He has been executive editor of the Lansing State Journal, the Burlington Free Press in Vermont, and was the financial editor and a columnist for the Baltimore Evening Sun. He is the current president of the Michigan Press Association. His wife, Maureen Hirten, is director of the Capital Area District Library.
Sparrow Health Classic Exceptional Golf to Support
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Wednesday, June 15, 12:30 shotgun start at Hawk Hollow & Eagle Eye Golf Courses The Sparrow Health Classic offers an unforgettable day of golf. All proceeds benefit the health and care of our community. Join us.
» Serious golfers will love the challenges offered by some of the toughest holes in the region.
» Recreational golfers will enjoy the scramble format, the beautifully manicured greens and the fun gifts for every golfer.
» Not a golfer? Sign up for the 18-hole real-grass putting course at Little Hawk, then join the golfers for dinner following play. No matter how you choose to participate, you’re helping us continue to provide the best, most advanced healthcare services available to the men, women and children who come to Sparrow for care each day. Generously presented by
For more information, visit SparrowFoundation.org. Questions? Call 517.364.3620.
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FEATURE
SIN STUDIOS BRINGS THE VIDEO GAME INDUSTRY TO LANSING BY ALLISON SPOONER
When Scott Reschke, founder of Strength in Numbers (SIN) Studios, wanted to start a video game company, he was urged to leave Lansing to do it. “I was told to go where the money was,” he said. “Austin, Silicon Valley, San Francisco, anywhere but here.” But, with roots planted in the area and a stubborn mindset, Reschke made the decision to tough it out. “For me, it was a personal battle. I am a small, single person but saw my opportunity to make my stand here,” he added. Reschke had already run a business in East Lansing for eight years, and spent that time watching everyone graduate and then go away; he didn’t want to do that. He knew that alone he wasn’t that strong, but was confident success would come if he could build a talented team. And thus, Strength in Numbers Studios was born. Now celebrating one year in business, a talented team of developers, designers and coders (and an almost complete game ready to launch in August) SIN Studios has definitely had to prove to Lansing that this type of company belongs here. The almost complete game, Tuebor, reflects the attitude that brought it to fruition. Borrowed from the State of Michigan Seal, the name translates as, “I will defend.” And Reschke has been defending his idea since the beginning. A cooperative, multi-player, third person, choose your own adventure style game, Tuebor appeals to a wide range of gamers. The blended genre style is not something that is typically done, said Reschke, but that’s partly why he designed it that way. During his time
SCOTT RESCHKE, FOUNDER OF STRENGTH IN NUMBERS (SIN) STUDIOS
running a virtual cafe in East Lansing, he observed the video game habits of the gaming community, took notes and realized he had the blueprint for a game. “I would see people spend hours playing World of Warcraft and then switch to a strategy or firstperson shooter to cleanse their palate,” he said. Why not design a game that, instead of making them leave, had their favorite things right in the game? “I wanted everyone who had ever played a video game to be able to find something they liked,” Reschke continued. Combining his notes and observations, his love of science fiction and books full of story ideas and character outlines, he began designing Tuebor. However, the idea for the game came together easier than the
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G R E AT E R L A N S I N G B U S I N E S S M O N T H LY
JUNE 2016
funding to start production. As Reschke began seeking investments he began to notice echoes of the sentiments that had urged him to move elsewhere. While friends and family helped him get started, his next step was to approach venture capitalists, Angel investment groups and other potential investors. But, each time he put out a request, he got a similar response: “You have a really great business plan, but we don’t invest in video games.” While he understood the reluctance to invest in an industry they knew nothing about, he also recognized the long-term benefits of investing in the video game industry. “This is a $110 billion industry,” he said. “Some of the other sectors getting the investments were only $3 million [industries]. We have a low break even cost and low customer acquisition costs.” But, it didn’t matter. In an area hyper-focused on industries such as energy, automotive and health, things didn’t
FEATURE
look promising. But, Reschke had done the work and continued to put himself out there. “I had the business plan, the marketing plan; I had done the due diligence ... ,” he said. And in March of 2015, his persistence paid off and an investor he had been pursuing finally decided to move forward. Now, as SIN Studios celebrates one year in business, consists of a team of 27 and has a game ready to launch in August, Reschke not only has high hopes for the game and his studio, but also for the video game industry in Lansing.
“GAME DEVELOPMENT IS A BIG, SEXY INDUSTRY. IT’S AN INDUSTRY THAT OFFERS SIGNIFICANT GROWTH OPPORTUNITIES" -SCOTT RESCHKE, FOUNDER OF SIN STUDIOS going from Lansing. It could have a huge impact if we do it right.”
few titles under their belt, and hopefully build something without leaving the state.”
That growth includes 200 to 400 jobs at SIN alone if the game takes off, including jobs with significant wages.
And doing it right, according to Reschke, means keeping the talented people who want to design games or open studios in Lansing. To do this, Reschke would like to eventually turn SIN Studios into an incubator for the gaming industry. He wants to be a place for the folks coming out of Michigan State University or Ferris State University who have the talent and ambition but not the polish or experience.
But, that’s a long-term goal. The immediate future for Reschke and the SIN Studios team includes further testing of the game, incorporating feedback and putting the final touches on Tuebor. For those looking for the game, they will be able to find it available on their PC in August. SIN Studios is also in talks with Microsoft and hopes to see the game hit the PlayStation 4 market.
“We aren’t talking minimum wage jobs here,” said Reshke. “They mean 401K’s, savings and significant growth in a non-existent sector. It pushes back against the blight caused by industries and talent constantly coming and
“The people coming to us out of college are always shocked when the job isn’t just sitting and designing pretty things all day,” he said. “Here, they can learn about deadlines and expectations from those with experience, get a
As they move toward their goal, Reschke will continue to seek out talent and defend his place in Lansing. “We need people to take risks and make changes,” he said. “And that’s what I’m trying to do.”
“Game development is a big, sexy industry,” he said. “It’s an industry that offers significant growth opportunities.”
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AMERICAN FIFTH SPIRITS: CREATING A NEW DOWNTOWN ATMOSPHERE BY MEGAN MARTIN
One thing Millennials want is a unique, local destination with atmosphere, character and good booze. American Fifth Spirits is the newest place in downtown Lansing that fits that bill, and Millennials are flocking to it – and did we mention its downtown? In the past, downtown Lansing has not been a destination for young people. Instead,
20-somethings tend to stick to East Lansing because of its college-town feel. The main strip, chalked with bars, restaurants and shops are close, creating a walkable destination for people of all ages to stroll, sip, munch and shop.
“The more the environment is bursting at the seams with a diversity of attractions and destinations that these people crave, the more acceleration in population growth we expect to see,” said Lambert.
That “town center” feel – a central location for members of the community to gather, eat, drink and spend money – is an aspect that community developers and planners feel is lacking in downtown Lansing. Many feel that it would create an attractive place for visitors, fun things to do for locals and a reason for Millennials to want to live, work and play in downtown Lansing.
Aside from American Fifth Spirits, Lambert mentioned that other businesses like Lansing Brewing Company, Sleepwalker Spirits & Ales and River Town Adventures all are attractive businesses that draw young people to the area.
Rick Wyble (right), president and head distiller at American Fifth Spirits and chairman Nick Garyet. 16
G R E AT E R L A N S I N G B U S I N E S S M O N T H LY
Keith Lambert from the Lansing Economic Area Partnership (LEAP) said that they have seen a major shift in the number of people wanting an urban living environment in the Lansing area, and placemaking has a lot to do with the shift. JUNE 2016
“People create the market, and in the entrepreneurial business community we are working to cultivate responses for the demands,” said Lambert. The idea of “placemaking” isn’t new; the Project for Public Spaces began coining the term in the mid-1990s, but the thinking behind the idea began to gain traction in the 60s – potentially sooner in other circles. Recently the concept has been the basis of many urban dwellers’ demands for the area, their argument being that no one would live downtown Chicago, New York, Grand Rapids or Austin without unique businesses, bars, restaurants and shops.
FEATURE
As a result, entrepreneurs in Lansing have stepped up to the plate, giving the people what they’re asking for. One of those business owners is Rick Wyble, president and head distiller at American Fifth Spirits. Wyble said that he had heard the term from professionals who have come to the distillery. “I started hearing this term, ‘placemaking,’ and after thinking about it, it makes sense,” said Wyble.
“Art deco was the same time period (1920s), and this building was also built in the 1920s. We feel like art deco brings a more refined look, and that’s what we were going for.” Wyble wants American Fifth Spirits to be a place where people talk about the weather, the cocktails, politics, anything. The music is never outrageously loud, encouraging conversation and a space for people to simply interact with each other.
“I think that can be a foreign concept for people these days,” said Wyble. “But bigger cities have bars like this, so why can’t Lansing?” American Fifth Spirits is the perfect place to relax and enjoy a cocktail with friends, join in on a Cards Against Humanity tournament or even have an after work get together. But mainly, it’s a unique, local gathering place, contributing to a walkable, fun downtown Lansing – finally, something we’ve all been waiting for.
It was a concept that he and his business partner, Nick Garyet, had in mind the entire time when making decisions about their business. “We wanted this location for the city, we wanted to be downtown to help contribute to that ‘placemaking’ idea,” added Wyble. American Fifth Spirits’ intentional location paired with the uniqueness of the business combined to create a destination; an image Lansing has had a hard time developing.
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The distillery, located at 112 N. Larch St., creates handcrafted cocktails from house made gin, whiskey and vodka. American Fifth opened in April 2015, and outside of the storefront, the distillery participates in many festivals such as Beerfest at the Ballpark, Festival of the Sun and more. Its location, across the street from the Lugnuts stadium on one side and within walking distance to other bars like the Beer Grotto, the Nuthouse Sports Grill and the Tin Can on the other, makes it a perfect addition to the strip, creating what Wyble and other Lansing residents want: A walkable destination for a night out. Another reason Wyble was drawn to opening a distillery and cocktail bar is because it’s unique. “Grand Rapids wants to be beer city U.S.A., and that’s fine,” said Wyble. “There are a few other distilleries in Lansing already and the more the merrier. I would love to see Lansing define itself as having a ‘cocktail culture.’” The art deco-influenced bar offers a different type of bar experience that the area didn’t have before. Walking in to American Fifth Spirits, you won’t find a bar with a row of TVs broadcasting sports. Instead, your eye is immediately drawn to the whitewashed, wooden, sun-shaped structure above the arch shaped bar. Brick walls and industrial accents give the lounge a classic yet modern feel. “Many distilleries focus their décor on prohibition era motifs, which makes total sense,” Wyble said.
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LANSING AT A GLANCE
GREATER LANSING AT A GLANCE Each month, the Greater Lansing Business Monthly compiles statistics showing the growth of the greater Lansing area month to month. This information is not comprehensive, but rather, a snapshot of the area’s growth throughout the year. The following is a look at the advances some of Lansing’s biggest businesses have made in the past two months.
MICHIGAN RETAILERS ASSN. INDEX
BUREAU OF LABOR STATISTICS: LABOR FORCE DATA
A monthly gauge of key retail activity in the state; values above 50 generally indicate an increase in activity.
The regular report from the Bureau of Labor Statistics tracking the region's job performance.
April ‘16
March ‘16
Feb. ‘16
Jan. ‘16
April '15
66
53.3
58.7
47.1
57.6
Inventory
61.1
61.5
51.4
53.5
55.2
Prices
51.2
49.1
46.6
46.7
Marketing/Promotion
63.1
59.9
56.5
61
Sales
Hiring Plans
57.6
53.2
56.6
46.4
March. ‘16
Feb. ‘16
Jan. ‘16
Dec. ‘15
March '15
Civilian Labor Force (1)
(P) 248.2
249.4
245.7
(P) 242.4
243.6
54.8
Employment (1)
(P) 238.8
240.1
235.7
(P) 234.7
232.1
63.6
Unemployment (1)
(P) 9.4
9.2
10.1
(P) 7.7
11.4
51.3
Unemployment Rate (2)
(P) 3.8
3.7
4.1
(P) 3.2
4.7
Values above 50 generally indicate an increase in activity
BUREAU OF LABOR STATISTICS: WAGE & SALARY
KEY STOCKS — MONTH-END CLOSE
The regular report from the Bureau of Labor Statistics tracking the region's job performance.
A report on price changes for key local stocks and others that reflect the health of the region's economy.
Total Nonfarm (3) 12-month % change
March. ‘16
Feb. ‘16
Jan. ‘16
Dec. ‘15
March '15
(P) 228.6
228.2
224.7
229.2
223.9
(P) 2.1
1.7
1.8
1.5
0.9
Mining, Logging & Construction (3)
(P) 6.3
6.1
6.2
6.6
6.1
12-month % change
(P) 3.3
1.7
1.6
0
3.4
Manufacturing (3)
(P) 20.6
20.3
19.5
20.3
19.2
12-month % change
(P) 7.3
5.7
6
5.2
3.2
Trade, Transportation & Utilities (3)
(P) 35.1
34.9
35.1
36.2
34.3
12-month % change
(P) 2.3
1.7
2.3
0.6
0.9
Information (3)
(P) 3.0
3
3
3
3
12-month % change
(P) 0.0
0
0
3.4
0
Financial Activities (3)
(P) 15.6
15.6
15.5
15.7
15.3
12-month % change
(P) 2.0
2
1.3
1.9
1.3
Professional & Business Services (3)
(P) 22.6
22.6
22.1
21.6
21.8
March ‘16
Feb. ‘16
Jan. ‘16
April '15
4.86
3.95
3.59
2.9
4.71
General Motors
31.8
31.43
29.44
29.64
35.06
Emergent BioSolutions
38.52
36.35
33.83
36.6
29.69
Neogen
47.24
50.53
49.25
52.18
44.54
Gannett (Lansing State Journal)
16.85
15.14
15.26
14.84
n.a.
Gray Broadcasting (WILX)
12.85
11.72
11.54
13.15
13.26
Media General (WLNS)
17.33
16.31
16.62
16.24
16.89
Bank of America
14.56
13.52
12.52
14.14
15.93
UPS
105.07
105.47
96.55
93.2
100.53
Home Depot
133.89
133.43
124.12
125.76
106.98
Kroger*
35.39
38.25
39.91
38.81
34.46
Macy's Inc.
39.59
44.09
43.21
40.41
64.63
Wal-Mart Stores
66.87
68.49
66.34
66.36
78.05
Spartan Motors
*Adjusted for stock split
12-month % change
(P) 3.7
2.7
0.9
-1.4
2.8
Education & Health Services (3)
(P) 30.8
30.7
30.4
30.9
30.8
12-month % change
(P) 0.0
0
-0.3
0.3
-2.5
Leisure & Hospitality (3)
(P) 18.7
18.4
18.6
19.4
18.5
12-month % change
(P) 1.1
0.5
3.3
4.9
1.1
Other Services (3)
(P) 10.0
10
9.9
10.1
9.8
12-month % change
(P) 2.0
2
1
1
-4.9
Government
(P) 65.9
66.6
64.4
65.4
65.1
12-month % change
(P) 1.2
1.4
1.6
1.4
1.9
(1) Number of persons, in thousands, not seasonally adjusted. (2) In percent, not seasonally adjusted. (3) Number of jobs, in thousands, not seasonally adjusted. See About the data. (P) Preliminary
18
April ‘16
G R E AT E R L A N S I N G B U S I N E S S M O N T H LY
JUNE 2016
CONSUMER ENERGY SERVICE STARTS An indicator of the the Greater Lansing region’s business and housing growth.
BUSINESS April ‘16
March ‘16
Feb. '16
April ‘15
YOY Change
Clinton
4,057
4,060
4,061
4,113
-1.36%
Eaton
5,104
5,104
5,119
5,090
0.28%
Ingham
11,430
11,458
11,470
11,284
1.29%
TOTAL
20,591
20,622
20,650
20,487
0.51%
April ‘16
March ‘16
Feb. '16
April ‘15
YOY Change
Clinton
29,178
29,165
29,151
28,822
1.24%
Eaton
41,412
41,425
41,416
41,202
0.51%
Ingham
97,569
97,692
97,738
96,905
0.69%
TOTAL
168,159
168,282
168,305
166,929
0.74%
GRAND TOTAL
188,750
188,904
188,955
187,416
0.71%
RESIDENTIAL
LANSING AT A GLANCE
GREATER LANSING ASSOCIATION OF REALTORS HOUSING REPORT A look each month at significant real estate pricing and listing trends.
April ‘16
March ‘16
Feb. ‘16
Jan. ‘16
April '15
Active Listing Count
1,613
1,816
1,837
1,873
2,549
Active Listing Volume*
$292.6
$312.8
$296.6
$303.8
$405.6
766
744
584
579
924
New Listing Volume*
$136.2
$130
$95.9
$93.1
$147.2
Average Listing Price
$181K
$172K
$164K
$162K
$159K
Average Listing / sq. ft.
$110
$107
$106
$105
$103
Days in RPR
91
99
109
108
98
Months of Inventory
4
6
5
4
7
Pending Sales Count
1,032
634
544
478
410
Monthly Sales Volume*
$59.7
$65.9
$44.7
$49.0
$64.7
Percentage of Listing Price
97.49
97.57
96.45
97
96.62
New Listing Count
*In millions
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BEHIND THE SCENES
JUDY PUTNAM
BY MICKEY HIRTEN | PHOTO BY ERIKA HODGES
NEWS COLUMNIST FOR THE LANSING STATE JOURNAL
Judy Putnam, 60, is the news columnist for the Lansing State Journal. She is a Michigan native who spent a dozen years working for newspapers in Mississippi and Texas, including a stint as a reporter at the Fort Worth Star-Telegram before returning to her home state. There she covered the capitol as a reporter for a chain of Newhouse papers now known as MLive. YOU FOLLOW A LONG LIST OF OPINION SETTERS AT THE LANSING STATE JOURNAL – JIM HOWE AND JOHN SCHNEIDER. IS THERE A SENSE OF THAT LEGACY FOR YOU? They are very big shoes to fill. I’ve talked with Jim a few times and he’s just a great storyteller. And Schneider just could cut right to the chase and to the quick very fast. Those guys were just tremendous. I’m not even trying to do what they did because I’m not that person. I’ve got to be my own person. I’m still here a year later. I hear from someone every day who appreciates my column. So that sort of keeps me going. HOW MANY COLUMNS DO YOU WRITE A WEEK? I’m averaging about three. They’re not making me write every day, which I appreciate. I’m not that fast. John Schneider in contrast had a presence every day. So I take a little time with them. If there’s another side I try to hear that before the column. I’m not under pressure every day to get a full column out. 22
WHAT IS YOUR JOURNALISTIC VOICE? I’ve been at this a year and it was very openended when I came into it. I thought after a year I would really be able to answer that in a short sentence. I’ll give you a long sentence: I just try to tell interesting stories that appeal to me and that I think will appeal to readers. I try to spot injustices that I can weigh in on. I try to connect readers to resources. A lot of times people call me who don’t speak English very well. It isn’t their first language or they don’t use a computer. Or they just don’t know where to turn. Sometimes if I can just connect them to somebody, I will. It may not rise to a column. I get a lot of calls from people who don’t know how to Google. So I Google for them. WHAT ARE THE INGREDIENTS OF A COMPELLING COLUMN? HOW DO YOU FASHION IT? I can use my long experience as a reporter or as an advocate – I worked for the Michigan League for Public Policy in the Kids Count Project – to help somebody who is being battered by the
G R E AT E R L A N S I N G B U S I N E S S M O N T H LY
JUNE 2016
system or doesn’t understand the system. To me, that’s a satisfying role that the newspaper can play to help people in our community. YOU WORK IN A PROFESSION INCREASINGLY SHAPED BY METRICS. WHAT DOES THAT MEAN? It’s been really interesting because I started out with typewriters and glue pots. When you wanted to edit a story you cut it apart and glued it together. I really try to be quiet about that. I don’t want to date myself, but it’s where I started. I had an electric typewriter, a really advanced piece of equipment. What I see in the metrics does affect me. If there’s a story that gets a lot of hits and people are reading it, I think, yes, that’s what I should be writing about. But then, there are stories where I get very few online hits and columns that don’t resonate with the mobile readers, but I get letters about them. So how do you balance those who read me on their cell phone with the reader who takes time to send me an email or calls or stops me, or comments on a column that resonates with them? I struggle with that.
BEHIND THE SCENES
WHEN YOU TALK ABOUT METRICS, WHAT DO YOU MEAN? It’s not only the number of readers who click on the story, but how long they stay on it. I think we’ve been told that 30 seconds is good reader engagement. It doesn’t sound like a long time, but my columns often get a minute, which is good. You’ve got to balance that with the number of clicks. SO WHAT DO YOU DO?
YOU NOTE THAT YOU’VE BEEN A REPORTER, BUT YOU ARE A COLUMNIST NOW. WHAT’S THE DIFFERENCE? Well, some things are just hard and fast rules. You have to be honest with people, your readers. I do think I have way more latitude to suggest solutions and to criticize. And to prod and pull and praise and to use that for results. I think that’s what my job is.
IS IT MORE LIBERATING? It’s more liberating, definitely, but it doesn’t always work. You don’t always get the results for people and I don’t like that. I get a lot of stories that are hard to do and I don’t get a lot of the easy ones. This conversation with Judy Putnam has been edited for space and clarity.
I don’t have an answer to that yet. But I do track responses. Try to be modern about it. If I get feedback from a reader I put it in a spreadsheet. I try to balance the metrics that we are constantly being bombarded with and some old fashioned ways of getting reader interaction. And just remember that some of those people not reading us online are buying the paper. I think their voice is important too. My gut, which I’ve always trusted, sometimes conflicts with metrics. AREN’T THERE JUST SOME IMPORTANT STORIES THAT HAVE TO BE DONE AND THEY MAY NOT HAVE A TREMENDOUS AUDIENCE? I steal this from long-time LSJ columnist John Schneider: “You have to give some vegetables to your readers before you offer the dessert.” I’ve got to be mindful that if I want to keep doing this I’ve got to hit some stories, big time. SO WHO IS YOUR AUDIENCE? I think my audience changes depending on the subject. I hit different audiences, and I think that’s O.K. I do have some folks who give me regular feedback. GOOD FEEDBACK? Yeah, I get good feedback; but not all of it. That’s important. There are a handful of people I hear from again and again and again. I would say they are older, a mix of education levels, people who appreciate having a face at the newspaper that they see. IS BEING A COLUMNIST WHAT YOU THOUGHT IT WOULD BE? I thought I would be getting a lot more consumer complaints. I’m not and maybe it’s because I haven’t done a lot of them. Maybe it’s a selffulfilling prophesy. I’ve gotten a lot of, 'how do I deal with government,' questions. I don’t know if it’s a sign of changing times, but I get a lot of calls funneled to my desk from people who are just in sheer misery. They just don’t know what to do or where to turn. It’s people just hitting the bottom.
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WHARTON C
MID-MICHI BY MICKEY HIRTEN
N
o one will ever confuse East Lansing with Midtown Manhattan. That is, until they visit the Wharton Center for the Performing Arts. Inside, season after season, it’s Broadway; or sometimes it’s Carnegie Hall. This year on stage featured “The Sound
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CENTER DRIVES
IGAN’S ECONOMY of Music,” “Motown,” renowned pianist Lang Lang and singer/actress Kristin Chenoweth. Next season features “Wicked,” Tony Award winner “Fun Home,” Sutton Foster and the Prague Philharmonia. The Wharton Center, which opened in 1982, defines live entertainment in the greater Lansing area, for mid-Michigan and sometimes the state. A quarter of all tickets are sold outside of the tri-county region, boosting the regional economy by more than $44 million a year, according to Michael Brand, the Center’s executive director since 2003. Brand has muscled the Wharton Center into the upper ranks of Broadway venues. He said it is the “number one” performance center owned by a university and ranks in the top 50 among all venues with fewer than 2,500 seats (The “Great Hall” seats 2,420). With a staff of 35 full-time employees and, depending on the show, as many as 320 part-time support and production workers, the Wharton Center budgeted $13.5 million to stage its 2015-16 season. Personnel and fringe benefit costs account for $3.1 million. It will spend $185,000 on in-house management services, $900,000 for stage management crews and $210,000 for capital improvements. It’s essentially a break-even business. Revenue from ticket sales, fees, rentals and the gift shop will total about $10.8 million this season. Another $1.6 million in support will come from contributions, $520,000 from the Center’s endowment and $640,000 from Michigan State University.
A QUARTER OF ALL TICKETS ARE SOLD OUTSIDE OF THE TRI-COUNTY REGION, BOOSTING THE REGIONAL ECONOMY BY MORE THAN $44 MILLION A YEAR, ACCORDING TO MICHAEL BRAND, THE CENTER’S EXECUTIVE DIRECTOR SINCE 2003. businesses and organizations are corporate sponsors or participate on the Wharton Center’s advisory council.
make six-figure contributions annually. The Lansing area lacks those kinds of businesses and relies on a broad array of corporate donors.
“The corporate community is critical to the success of the Wharton Center,” said Development Director Doug Miller. I think they take a great deal of pride that they have a worldclass performing arts center in this community.”
The Wharton Center has a $15 million endowment, which has grown from $2 million during Brand’s time with the Center. It is projecting that it will grow by $520,000 in 2016 and expects the endowment to reach $23 million by 2020, yielding about $1 million a year to defray expenses.
“We have 45 to 55 corporate partners that not only sponsor us with private support but also purchase blocks of tickets to entertain clients or reward employees,” said Miller. “They understand the value of the Wharton Center, what it means to their business and what their business means to our business.”
“It will stabilize our operation. We won’t have to rely on single tickets,” Brand said.
Miller also said that the business-support model for the Wharton Center differs from other larger metro markets, where a handful of large BY MICKEY HIRTEN donors
Private contributions are roughly split between individuals and businesses. Most of the region’s prominent L
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For big Broadway productions like “The Book of Mormon,” on its 108-foot stage this June, the Wharton Center’s total revenue from all sources, though primarily ticket sales,
is between $800,000 and $1.1 million. Most shows are sold at a standard price. What venues like the Wharton Center negotiate are items like commissions and inside rents. But there are no guarantees of success. While there are regular season subscribers, not every show sells out. And there is competition — for audience members as well as shows. The Wharton Center operates from a low population zone between Chicago and
Cleveland, which are both big markets. Then there is Detroit, a drivable distance to the east. “We have to make sure we stay on the national circuit and get the big shows, the new stuff as soon as we can. When shows come out we are in the first round,” Brand said. Its success in providing first tier entertainment makes the Wharton Center one of the region’s important economic drivers. Relying on information provided by the Broadway League, it estimates its economic impact in mid-Michigan at $20.9 million for its $13.5 million expense budget and another $24.4 million tied to $8.4 million in patron ticket expenses. “All of this is money would be elsewhere,”
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said Jack Schripsema, president and CEO of the Lansing Visitors and Convention Bureau. “There is a lot of competition for that type of entertainment. We are glad to have it in our community.”
“Memphis,” the Wharton Center regained its momentum with revenues of $13.5 million and expenses of $13.1 million. As Brand puts it: “We came back blazing.”
integrated into the region’s cultural life. It supports four unique stages: The Cobb Great Hall, Pasant Theatre, MSU Concert Auditorium and Fairchild Theatre.
The Wharton Center also serves as a potent economic development tool for the Lansing Economic Area Partnership.
Success, Brand said, means finding new audiences. The shows succeeding on Broadway in New York are diverse, reflecting the increasingly changing population of the country.
For the 2015-16 season, it presented 121 performances, 47 of them unique engagements. This includes seasonal events, Live At Wharton and Act One School Series performances. The Center has extensive education programs involving MSU and area K-12 schools. It will provide about 3,500 tickets for performances to under-served children and their families. The Wharton Center staged 11 Lansing Symphony Orchestra concerts as well as performances by MSU’s College of Music and Department of Theatre. It also hosts numerous private functions: commencements, receptions and academic events.
“It symbolizes that we are a progressive, cosmopolitan, global environment ready for big business and big talent,” said LEAP’s President and CEO Bob Trezise. It is a venue that helps attract new talent and keep talent in the region, Trezise said. LEAP has introduced a new brochure to promote the region and the Wharton Center is prominently featured. “Dazzled by Broadway’s lights? Us too. You don’t need to go to New York or Chicago to find them. Michigan State University’s campus hosts the Wharton Center for Performing Arts, one of the Midwest’s premiere theatres, where Broadway shows and the world’s top performers come first. Entertainment doesn’t stop there,” reads the brochure. “The number one job of this new piece of literature is to surprise people with a great first impression of Lansing, Mich.” Trezise said. In fact, because the Lansing region is a small market, it has some surprising advantages. National road companies like the East Lansing atmosphere because it's an affordable stop on the road tour, with good restaurants and accommodations where company members can cook their own meals and have complementary memberships at health clubs. “They love being here just like the young people love living here,” said Brand. Many arts organizations suffered during the Great Recession and others – large symphony orchestras and opera companies – struggle to complement their aging Baby Boomer audiences. “We went down during the height of the downturn,” Brand said, adding that it happened later in other markets. The 2009 season, with mega-hits like “Jersey Boys” and “Phantom of the Opera,” was spectacular, with revenues of $17.6 million and a profit of $328, 951. But in 2010, sales tumbled. Revenues were $11 million with expenses of $11.8 million, resulting in a $776,518 deficit; the largest in the last 12 years. The following year, with the economy staggering, revenue declined to $9.2 million. Expenses were $9.7 million – another large deficit. By the 2012 season with “Les Miserables,” “Rock of Ages,” “Addams Family” and
Producers are taking greater risks with shows like “Allegiance,” a musical about the internment of Japanese Americans during World War II and “On Your Feet,” a musical about the lives of Latin American immigrants. Casts are more diverse. The hip-hop infused smash hit “Hamilton” features black, Hispanic and AsianAmerican actors. A multi-ethnic cast carries the hit musical “School of Rock.” Brand said performance centers like the Wharton Center succeed by connecting with entirely new audiences, attracting younger generations. “You have to connect to the demographics of your community.” Overall, support for the Wharton Center and its diverse activities are broad and tightly
According to officials, the Wharton Center serves more than 30,000 children and adults each year through the MSU Federal Credit Union’s Institute for Arts and Creativity. The program allows the artists who perform at the Wharton Center to work with students in master’s classes, Broadway summer camps, through high school musical competitions and in the classrooms.
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VISUAL BREAKDOWN
ENTERTAINMENT IN DO REASONS FOR VISITING DOWNTOWN
TOP REQUESTS FOR CHANGES TO DOWNTOWN LANSING Better/free parking Longer retail/shop/dining business hours (evenings after 5, weekends)
More diverse retail, grocery & convenience stores
72% visit to dine
58% visit for work
Entertainment venue/community events/nightlife
TOP REQUESTS FOR ADDED BUSINESSES/SERVICES DOWNTOWN More art/cultural attractions
Bookstore Casino Full or moderate size grocery store
visit local attractions (City Market, Impression 5, the Riverwalk Theatre, etc.)
18%
visit downtown to shop
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Performance theater
36%
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Clothing stores
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VISUAL BREAKDOWN
OPL E P
visit daily
20% less than
once a week
12%
SIN G LAN
24%
visit several times a week
44%
DOWNTOWN LANSING ACTIVITIES
E TRAV EL TO
H O W OF T EN
DOWNTOWN LANSING 89%
of respondents participated in Silver Bells in the City
69%
of respondents participated in Common Ground
visit at least once a week
67%
of respondents travel to other cities for entertainment not offered in Downtown Lansing (Entertainment includes: art/music festivals and venues, movie theaters, sporting events)
55%
of respondents participated in Be a Tourist in Your Own Town
49%
27%
of respondents participated in Taste of Downtown
of respondents participated in Jazz on the Grand
STATISTICS BASED ON THE DOWNTOWN LANSING VISIONING SURVEY CONDUCTED BY RENEE MORGAN FREEMAN, LANSING MAYOR’S OFFICE MANAGER. L
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ECONOMY
NON-TARIFF BARRIERS TO TRADE BY: MORDECHAI E. KREININ, UNIVERSITY DISTINGUISHED PROFESSOR (EMERITUS), MSU
Other restrictions that limit trade are either imposed by the government or practiced by the private sector but sanctioned by the government. Potentially more restrictive than tariffs are import quotas. Such a quota is a maximum amount of a commodity that may be imported into the country during the course of a year. While very common in the past, today it is used mainly in the field of agriculture. The quota is set below the level of free-trade imports — otherwise there is no reason for the restriction. Because it limits the amount of imports, a quota raises the domestic price of the commodity, providing protection to local producers. In doing so, its effects are similar to those of a tariff: higher domestic price; protection to the local industry so that domestic producers capture a greater share of the market; higher price of products that are produced out of the protected commodity, and cost spread over 330 million consumers, each paying a small and almost unnoticeable amount. A good
"BOTH THE U.S. AND THE E.U. EMPLOY A VARIETY OF TRADE RESTRICTIONS ON FOREIGN FARM PRODUCTS, MAKING AGRICULTURE THE MOST DISTORTED FIELD IN THE GLOBAL ECONOMY.” example is the sugar import quota in the United States, which provided protection to the domestic industry and raised the prices of sugar and candy. Import quotas are more harmful than a tariff. First, a tariff is a tax on imports, but once it is paid there is no limit to the quantity that can be imported, while a quota imposes an absolute limit on that quantity. Second, a tariff is a uniform tax levied on all sources of supply, while in imposing a quota, the government can discriminate between sources, thereby introducing harmful distortions into the global economy. Both the U.S. and the E.U. employ a variety of trade restrictions on foreign farm products,
making agriculture the most distorted field in the global economy. Consumers pay and domestic producers charge prices that exceed considerably those that would prevail under free trade. Next, international commodity agreements govern trade in certain specific commodities where the main producing and consuming countries of each commodity agree on the amount traded, usually below the free trade level. Until year 2005, the biggest such agreement was world trade in textile and clothing. Under it, each importing country limited the quantity of textiles it imported from each exporting country. Although it was phased out, along with many quantitative restrictions, some textile quotas still exist.
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International cartels are agreements between producing countries (or companies domiciled in different countries) to raise the price of the commodities, mainly by output restrictions. Availability of substitute products usually limits the effectiveness of such arrangements. Perhaps the most effective and best known was the oil cartel, under which the Organization of Petroleum Exporting Countries (OPEC) limited output and raised the price of crude oil. It was successful for many years primarily because oil had no good substitute in the short run. The case of other commodities was only partly successful. An example is cocoa, in which Ghana holds a large share of world output, and its price increase boosted the price of chocolate. A final type of restriction is dumping and anti-dumping duties. Dumping occurs when exporters charge foreign buyers an export price either below the cost of production or below the price they charge at home. Although foreign consumers benefit from such a practice by paying a lower price, foreign producers complain of being undercut. And it is those producer groups that govern policy. As a result, the “dumped country” is allowed by international law to impose anti-dumping duties, to be calculated as the difference between the “home price” in the
exporting country or the production cost on the one hand, and the export price charged in the foreign country on the other.
Often, even the threat by a company to take dumping action against a foreign competitor can prove very restrictive to trade.
A special and important type of dumping occurs under government export subsidy. This happens when the government of the exporting country subsidizes the export of a certain commodity enabling the producer(s) to charge a lower price abroad than at home. In the case of the U.S., this is often done through the Export-Import Bank that offers cheap loans to foreign companies buying U.S. goods; other countries have similar arrangements. In such cases, the importing country is allowed to impose anti-dumping duty, except that in these cases it is called a counterveiling duty. The best known case that lasted for years is a dispute between the Boeing Corporation of the U.S. and Airbus Company of a few European countries, the main manufacturers of commercial jet aircrafts in the world. Each one claims that its main competitor is being subsidized by its respective government(s). After years of study, an international tribunal found that both companies were subsidized to the tune of billions of dollars.
Beyond all of that, countries employ a variety of administrative restrictions on trade in goods and services.
The determination in dumping cases is a complex process that is said to be arbitrary and capricious.
Mordechai Kreinin is a University Distinguished Professor of Economics, emeritus at Michigan State University and past President of the International Trade and Finance Association. He is the author of about 200 articles and books about economics, including the widely used text, International Economics. He can be reached at kreinin@msu.edu or by cell phone at (517) 488-4837
NS QUESTIO DERS FROM REA
Questions from readers are welcomed. Q : What is Econometrics? Econometrics is the application of mathematical and statistical techniques to economics.
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LIVE, WORK AND PLAY IN ST. JOHNS BY DENNIS LAFOREST
St. Johns became the Clinton County Seat when the Detroit and Milwaukee Railroad came through in 1857, and it was incorporated as a city in 1904. St. Johns is named after John Swegles, a Baptist minister added “Saint� to the name. Clinton County is a rich and varied agricultural area with about 90 percent of the farmland classified as prime growing soil. Growing peppermint and spearmint is unique to the area. The county ranks first in Michigan for mint production, with about 5,000 acres of mint farmed. Each year during the second week in August, mint farming heritage
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REGIONAL ROUNDUP
is celebrated at the St. Johns Mint Festival, a community event that is one of the state’s largest with an average 60,000 attending each year. There are many events and activities that take place that Friday, Saturday and Sunday, so mark it on your calendar as a must-see. The “Hub of Michigan” is located at the intersection of two major highways: U.S. 127 BR and M-21. The U.S. 127 bypass has made travel faster and more convenient. The business routes and the bypass give residents and travelers quick and easy access to Lansing, Grand Rapids and Flint. The short distance to the Lansing area allows residents to keep in touch with state government, as well as with the research and development capacities of Michigan State University. The City of St. Johns features many different types of residential living, from new subdivisions to historic older homes. There are a number of apartment and condominium developments offering a variety of amenities. There are also a variety of businesses to take care of your shopping, eating and service needs.
The City of St. Johns’ “Michigan Certified Industrial Park” contains 221 acres with approximately 100 acres available for development. The very cooperative city management offers all industrial utilities/infrastructure as well as tax abatements to qualified businesses. Sparrow Clinton Hospital, a division of the Sparrow Health System in Lansing, is a 28-bed complete primary care facility. Sparrow Clinton Pharmacy is open 365 days a year; Sparrow Clinton Hospital also has a Rehabilitation and Wellness Center and Home Care and Hospice. The City of St. Johns park system consists of more than 137 acres of land on six different sites (one main park and five pocket parks). The parks are overseen by a nine-member advisory board, which is appointed by the city commission. The main city park has numerous amenities including tennis courts, softball fields, band shell, sand volleyball court, rental and non-rental pavilions, sledding hill, ice rink, public restrooms and more. The main park is
open from 7 a.m. to 10:30 p.m. The pocket parks, which are located throughout the city, include children’s play toys and are open from dawn until dusk. In 2014, the Fred Meijer Clinton-Ionia-Shiawassee Rail Trail opened for recreational use for non-motorized activities. For more information, visit cistrail.org. St. Johns has an exceptional school system with dedicated students, a highly effective teaching, support and administrative staff as well as a board of education and community committed to providing an excellent educational program. In May 2010, voters approved the sale of $64 million in bonds to fund renovations to the high school, make investments in technology, complete renovations to the elementary and middle school buildings and purchase fuelefficient buses. The public school system consists of five elementary schools, one middle school and one high school along with adult alternative education. For more information about the city, visit cityofstjohnsmi.com. Dennis LaForest has served as the city manager for the City of St. Johns since 2003.
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WHAT THE HECK IS A CAP RATE? BY LOGAN MCANALLEN, CCIM
Whether you’re an aspiring real estate investor, or would consider yourself a real estate mogul, knowing how to evaluate the financial performance of a property is essential to your success. An effective method of measuring performance allows an investor the ability to quickly determine if an investment meets their criteria. It also provides an effective decision making tool for comparing one commercial property to another. A combination of several methods is wise, but let’s take a quick look at the one that seems to catch the most buzz: the Capitalization Rate. Before one can utilize the capitalization rate (cap rate) in the decision making process, it is important we understand what it will tell us. A cap rate is a measure of the relationship between the Net Operating Income (NOI) and the sale price of the property. The NOI is calculated by subtracting the total operating expenses from the gross income for a given year. The cap rate is then calculated by dividing the NOI by the
sale price. For example, a property offered at a sale price of $100,000 with an NOI of $10,000 produces a cap rate of 10 percent.
CAP RATE = NOI ÷ SALE PRICE Perhaps a simpler way to conceptualize the cap rate is to refer to it as the rate of return assuming an investor paid all cash for the property. As with most investments, the greater the risk involved, the higher the return/cap rate an investor will expect. Generally when considering a purchase, investors seek to achieve the highest cap rate possible based on the risk they are willing to tolerate. The quantification of risk and its relationship to capitalization rates is a rather in-depth analysis, one that I don’t nearly have enough space on this page to cover. The cap rate offers a snap shot measurement of an income property’s performance. It takes
into account the meat and potatoes, allowing you to quickly gauge the financials and compare investment alternatives. However, it is important to understand its limitations. The cap rate doesn’t incorporate future cash flows, income taxes, and most importantly, financial leverage. Go or no go decisions shouldn’t be based solely on the capitalizations rate, as an investor will find it most useful when used in conjunction with other methods. Of course, I would be happy to offer further discussion and advisement as you seek to maximize your commercial real estate portfolio. Logan McAnallen, CCIM is an Investment Property Specialist at NAI Mid-Michigan/TMN Commercial. Logan has earned the Certified Commercial Investment Member (CCIM) designation, commercial real estate’s global standard for professional achievement. L
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BUSINESS CALENDAR
JUNE 2016 BUSINESS EVENTS JUNE 2 BEHIND THE SCENES WITH PURE MICHIGAN, LANSING Join the Central Michigan Public Relations Society of American (CMPRSA) and David Lorenze, vice president of Travel Michigan, to learn about the popular Pure Michigan campaign. This talk will take place at the University Club from 11:45 a.m. to 1 p.m. Tickets are available at cmprsa.com/NewsEvents.aspx.
JUNE 7 ONBOARDING: ENGAGING HOURLY & PART-TIME EMPLOYEES Engaging your part-time employees can be difficult at times, but this 60-minute webinar
will discuss changes that will help your company engage and retain those valuable employees to your company. This event runs from 10 a.m. to 11 a.m. The cost is $75 for Chamber members and $95 for future members. Visit michamber.com to register for this event.
JUNE 9-7 ANNUAL DAPPER DADS CHALLENGE & FASHION SHOW, LANSING The Dapper Dads Challenge and Fashion Show is back again and even more dapper than before. The “Dapper Dads Fashion Show” at Kositchek’s in downtown Lansing is where this year’s top Dapper Dad will be chosen. Each vote costs $5 and is 100 percent tax-deductible. All proceeds support the mission of women’s health. A VIP reception
and reserved fashion show seating will begin at 5:30 p.m. and costs $60 per ticket. General admission tickets to the fashion show following at 6:30 p.m. are $30. Both include wine and hors d’oeuvres and are included in the ticket price. To buy tickets, cast ballots and find the complete list of this year’s models visit: SparrowFoundation.org/DapperDads.
JUNE 14 PECKHAM COMMUNITY PARTNERSHIP FOUNDATION 22ND ANNUAL GOLF OUTING Help support the mission of The Peckham Foundation. The foundation collaborates with Michigan State University’s Residential College in the Arts and Humanities and the MSU College of Engineering to create dynamic public arts projects. Please join one of the most popular and meaningful golf outings in Michigan. Ensure your place on the green today by contacting Chris English at cenglish@peckham.org.
JUNE 23 SBAM ANNUAL MEETING AND NETWORKING LUNCHEON Don’t miss the 2016 Small Business Association of Michigan Meeting and Networking Luncheon. Join business owners in one location to promote and sell your product. Located at the Lansing Center at 333 East Michigan Ave., this is a luncheon a young entrepreneur can’t miss! For more information visit michiganbusinessnetwork.com.
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JUNE 28 GRAND RIVER CONNECTION NETWORKING EVENT, LANSING Join the Grand River Connection from 6 to 8 p.m. for the Fourth Tuesday Networking Event at the Lansing City Market, located at 325 City Market Drive in Lansing. The event is free and complimentary appetizers, sponsored by Change Media Group, will be provided by Red’s Smokehouse and Hill’s Cheese. The Waterfront Bar & Grill will provide a cash bar. For more information, visit grandriverconnection.com.
MAN ON THE STREET
MAN ON THE STREET WHAT FORM OF ENTERTAINMENT DO YOU SPEND THE MOST MONEY ON EACH MONTH?
I like to go out to the movies, that’s pretty expensive with the price of popcorn. -DANIELLE DAVIS
I like to read a lot and I’ll watch a good amount of TV so I guess that’s what I spend most of my money on. -JOE CLARK
I’d say that I spend most of my money on streaming services like Netflix and Hulu. I don’t watch much actual TV unless something good is on.
I guess I spend a lot of money on Netflix, since I pay for it monthly and I’ve had it forever. -MIKE HAMUR
-JORDAN ARTUSO
I buy way too many books, to the point that I will probably never make it through my list. -REBECCA HARRIS
I spend a lot of money on keeping my television running, it gets more expensive all the time. -RICK MURDOCK
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GREATER LANSING CVB WELCOMES NEW MARKETING STAFF – AWARDS NEW TITLES TO TWO OTHERS The Greater Lansing Convention and Visitors Bureau (GLCVB) is pleased to announce it has hired Valeri VanDeVusse as the manager of graphic design. VanDeVusse comes to the CVB most recently from Gladstone Printing, where she served as graphic design and prepress specialist. Previously, VanDeVusse worked as a graphic artist for the East Lansing Food Cooperative. VanDeVusse has a bachelor’s degree from Michigan State University in Art History and Visual Culture as well as an associate’s degree from Lansing Community College in Graphic Communications. In addition to the hire of VanDeVusse as Manager of Graphic Design, the GLCVB has re-assigned titles to two other employees in the Marketing Communications department. Lori Lanspeary was named manager, social Media and Leisure Marketing. Emily Miller was promoted from a coordinator position to
manager, Social Media and Content Marketing. The change in titles was made to better reflect the individuals’ roles in the GLCVB’s growing social media and digital marketing efforts. For more information about the GLCVB, visit www.lansing.org or call 517-487-0077.
OLIVET COLLEGE RECOGNIZES CALVIN JONES, ROBERT AND SARAH LAWRENCE AND JIM ROBINSON DURING 20TH ANNUAL LEADERSHIP AWARDS
Jones also volunteers his time with multiple organizations in the Lansing area, including the Delta-Waverly Rotary Club, the Lansing Ecnominc Development Corporation and the McLaren Greater Lansing Healthcare Foundation Board of Trustees, among many others. Jones was chosen for this honor by Olivet University for his leadership and dedication to the community.
On May 11, Olivet College recognized some of Michigan’s finest leaders as part of its 20th annual Leadership for Individual and Social Responsibility Awards Dinner, hosted at the Country Club of Lansing. Among the leaders recognized by Olivet College was Calvin Jones. Jones is the director of governmental affairs for the Lansing Board of Water and Light, and serves as a critical link between the utility, city government and the citizens of Lansing. He also oversees the coordination of the annual BWL Chili Cook-Off and Silver Bells in the City.
CALVIN JONES, DIRECTOR OF GOVERNMENTAL AFFAIRS AT BWL AND SHERI JONES, NEWS ANCHOR AT WLNS TV 6 AT THE OLIVET COLLEGE LEADERSHIP AWARDS DINNER
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FRASER TREBILCOCK ANNOUNCES ADDITION OF TWO ATTORNEYS TO FIRM Fraser Trebilcock is pleased to announce the addition of R. Paul Vance and Shaina R. Reed as associate attorneys. Vance focuses his practice in the areas of commercial litigation, business and tax and insurance defense. He has been honored as a Super Lawyers “Rising Star” each year since 2012. Reed focuses her practice in the areas of labor, employment and civil rights, insurance defense and commercial litigation. She has been honored as a Super Lawyers “Rising Star” in Civil Litigation, Employment and Labor and Civil Rights since 2014 and was named to Hour Detroit “Top Attorneys in Michigan Rising Stars” in 2015.
LEAP ANNOUNCES STARTUP INNOVATION MANAGER The Lansing Economic Area Partnership (LEAP) is pleased to announce the addition of Joe Carr as the region’s new Startup Innovation manager. Carr will work in LEAP’s New Economy Division, working closely with its Director, Tony Willis. Carr replaces the position recently vacated by Quin Stinchfield. Carr was recently the technology specialist at the East Lansing Pubic Library, a manufacturing consultant as well as co-founder of Maizena, the winning company of the 2014 StartUp Weekend competition. Carr will assist the many business startups working with LEAP, help lead and coordinate the over three dozen entrepreneurial events throughout the year with over 3,000 attendees, help build LEAP’s new Equity Investment Fund called Lansing PROTO, as well as manage the City of Lansing’s fashion incubator, The Runway. “LEAP’s New Economy Division had its biggest year of new business formation in 2015, helping 31 business startups across the three county area create 62 jobs and over $1 million in private investment. LEAP continues to play a critical role with so many partners, like Spartan Innovations and NeoCenter, building a vibrant, startup culture that our companies and our global talent like young people and students, require and expect.” Tony Willis, LEAP New Economy Division director.
MAHP EXECUTIVE DIRECTOR AND HEALTH PLAN MEMBERS RECOGNIZED FOR SUPPORT AND INNOVATION IN HEALTH CARE
Rick Murdock, executive director of the Michigan Association of Health Plans (MAHP) was awarded the M. David Campbell Leadership Award from the National Kidney Foundation of Michigan during their Champion of Hope Tribute Dinner last Tuesday, April 26. The tribute dinner recognizes the men and women whose outstanding contributions in the fields of health care and public policy help provide hope and healing to the citizens of Michigan. Murdock has worked behind the scenes to increase state support for actions to reduce and treat kidney disease, with a goal of reducing overall health costs in the state and improving health outcomes. Murdock spent nearly 25 years in state government with principal assignments in developing health policy and then in the State Budget Office working on the mental health and Medicaid budget. He finished his career in state government with six years in Medicaid as the
FUND THE FUTURE Your scholarship gift helps ensure that Lansing area students have access to the higher education that leads to career opportunities. The LCC Foundation is dedicated to removing financial obstacles for all those working towards a brighter future.
RICK MURDOCK EXECUTIVE DIRECTOR OF THE MICHIGAN ASSOCIATION OF HEALTH PLANS (MAHP)
director of managed care programs. He then joined MAHP as the deputy director and now in his current role as executive director. The National Kidney Association of Michigan also recognized two MAHP members for 2016 Innovations in Healthcare Awards. Priority Health was recognized for its Priority Health Diabetes Prevention Initiative and Henry Ford
Jim Lammers Trustee, Dart Foundation “The Dart Foundation is proud to partner with Lansing Community College Foundation to provide students with the training needed to pursue a career in the skilled trades.”
Get Involved. Fund the Future. To give, visit lcc.edu/fundthefuture L
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Medical Group for its Measure Up Measure Down campaign to help improve member blood pressure control.
API HIRES PETER LANGLEY TO DIRECT API-MICHIGAN The American Petroleum Institute announced Peter Langley as the new executive
director of the Associated Petroleum Industries of Michigan (API-Michigan). “Langley will focus on energy priorities in the state, including generating more opportunities for economic benefits and creating jobs in Michigan,” said API Senior Director of State Government Relations Rolf Hanson. “He has been dedicated to developing key policy issues on behalf of Michigan voters over the past half-
decade and understands the benefits that energy development and investment in infrastructure can bring to the state for decades to come.” A Michigan native and graduate of Northern Michigan University, Langley most recently served as deputy chief of staff and legislative director for Senate Majority Leader Arlan Meekhof. Previously, he served in the Senate Majority Policy Office, overseeing staff to prepare legislative analyses for the Senate Majority Caucus and working with Caucus members, the State Departments and stakeholders in developing legislation as it was negotiated through final passage. Langley earned his Juris Doctor in 2007 from Thomas M. Cooley Law School and is a member of the State Bar of Michigan. API-Michigan is a division of API, which represents all segments of America’s oil and natural gas industry. Its more than 650 members produce, process and distribute most of the nation’s energy. The industry also supports 9.8 million U.S. jobs and 8 percent of the U.S. economy.
DEWPOINT WELCOMES NEW EMPLOYEES TO LANSING Dewpoint, a leading provider of technology consulting and implementation solutions, is pleased to welcome several new employees to Lansing: • Kim Cordes – Senior Business Analyst • Hajnalka Mayer – Senior Business Analyst • Robert Bruce – Business Analyst • Jason Rodgers – Senior Program Manager • Kevin Walker – Senior Program Manager • Nathan Lawton – Senior Project Manager
See where we can take you. p: 517.333.0713
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Founded in 1996, Dewpoint experts have a long, successful record of helping to develop short- or long-term strategic technology plans to maximize current resources and better position your organization for the future. Our professional services focus on strategic assessments; portfolio, program and project management; managed services; infrastructure optimization; and applications development and maintenance. As data center experts, we also architect and support our clients’ strategic initiatives such as data backup and recovery, data storage, virtualized environments, database
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services, performance improvement and overall architectural design and implementation. We partner with leading technology providers such as Oracle, Symantec, Pure Storage, Cisco, NetApp, Brocade, Veritas, VMware, Hitachi Data Systems and others to incorporate the latest hardware and software solutions available. Dewpoint collaborates with enterprise clients across numerous industries, including state and local government, health care, financial services, biotechnology, manufacturing, insurance and more. The company is headquartered in Lansing, Mich. While many of the company’s clients are located in the Midwest, Dewpoint also supports organizations across the country. Additional information is available at www.dewpoint.com.
MSU HEAD COACH, SUZY MERCHANT, AND THE MSU ELI BROAD COLLEGE OF BUSINESS HOSTED SUCCESSFUL FIRST EMPOWHER RETREAT
Suzy Merchant, head coach of the Michigan State Women’s Basketball team, and the MSU Eli Broad College of Business hosted its first ever Spring 2016 EmpowHER Retreat on April 29 and 30, 2016. This sold out event attracted 150 mid-Michigan girls in grades 5 through 9 and was held at the Breslin Student Events Center in East Lansing, Mich. The EmpowHER keynote speaker was Elizabeth McCormick, a former U.S. Army Black Hawk pilot and an authority on leadership. Attendees were on the edge of their seats as she shared her adventures flying command and control, air assault, rappelling, top-secret intelligence missions and transporting high-level government VIPs, including the Secretary of Defense. The young girls also attended inspiring workshops focused on social media, self-care and dealing with unfriendly friends, classmates
and bullies, followed by a relaxing yoga session. Workshop sessions were taught by Stacey Fenton, business consultant and motivational speaker; Kimber Bishop-Yanke, founder of Girls and Boys Empowered; Kathleen Livingston, contemporary circus performer with Violet & Fortuna; Tashmica Torok, executive director of the Firecracker Foundation and Toni Thomas, certified yoga instructor. EmpowHER was created to provide girls from various backgrounds with the tools to find
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confidence, passion and purpose. The retreat works to build self-confidence in girls by providing interactive workshops concentrated on the importance of self-empowerment, confidence, health and wellness and relationship building. The Spring 2016 EmpowHER Retreat was the first in the mid-Michigan area. Visit empowherretreat.com to learn more and to find out about future events.
“We are delighted to congratulate Haley Willet on winning the inaugural “Launching” business idea competition,” shared Michael Oyster, founder of the Global Center for Entrepreneurial Leadership and chairman of the Business and Economics Division of Olivet College. “Haley is a true entrepreneur; she has done the job, researched the market, tested and gotten feedback. Next step is launching the business and success!”
SPIKED BEAN EXCHANGE TAKES HOME $1,000 AT THE LAUNCHING
The Launching partners included The Lamplighter, LEAP, Loomis, Ewert, Parksley, Davis & Gotting P.C., NEO Center and Super Web Pros. Olivet College and LEAP plan to continue to hold other Launching competitions in the future. For more information on The Hatching, please visit thehatching.org.
Created by Olivet College student Haley Willet, the Spiked Bean Exchange took home the top prize at The Launching on April 19, 2016. The Launching is similar to The Hatching event, and offers the opportunity for Olivet College students to pitch their startup business ideas to a panel of investors and fellow entrepreneurs for a $1,000 prize. The Spiked Bean Exchange is a coffee bar that offers artisan drinks and the ability to add liquor to a cup of coffee.
• Vitek Family Dentistry - Contributing to our Community • Human Performance Institute (HPI) Benefiting the Community • Monticello’s Market - Food Systems • Northside Towing - Entrepreneurial Spirit • Capital Area Humane Society Community Excellence This award program is in partnership with the City of Dewitt, DeWitt Township, Bath Township and Watertown Township. The event is made possible by the support of Mercantile Bank of Michigan. The ceremony took place at Hawk Hollow on May 5, and honored business leaders who contribute to their communities in a number of ways.
LOCAL BUSINESS OWNERS RECOGNIZED IN AWARD CEREMONY Congratulations to all of the 2016 Creating Entrepreneurial Communities Business Award winners. This years award winners are:
THE 2016 CREATING ENTREPRENEURIAL COMMUNITIES BUSINESS AWARD WINNERS
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