GLBM March 2015 by M3 Group Publications

BUSINESS MONTHLY GR E ATE R LANS ING

MARCH 2015

FRONT COVER

Biotech Companies Encourage Economic Growth in Lansing

In this issue •

DOWNTOWN LANSING EXPANDS HOUSING MARKET

•

ENTREPRENEURIAL AWARD JUDGES INTRODUCED

•

2016 BUDGET PROPOSAL FOCUSES ON JOB CREATION IN MICHIGAN L

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MARCH 2015

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BUSINESS MONTHLY

BUSINESS MONTHLY G RE ATER L A N S I N G

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News Housing Market Expands in Downtown Lansing ....................................................................... 6 Michigan Senate to Relocate to Boji Building ........................................................................... 10 Lower Diesel Fuel Costs Help Expand Transportation Industry ..................................... 12

Features Biotech Companies Encourage Economic Growth in Lansing

Biotech Companies Encourage Economic Growth in Lansing ......................................... 14 Volunteers of America ......................................................................................................................... 18

In this issue •

DOWNTOWN LANSING EXPANDS HOUSING MARKET

•

ENTREPRENEURIAL AWARD JUDGES INTRODUCED

•

2016 BUDGET PROPOSAL FOCUSES ON JOB CREATION IN MICHIGAN

2015 Entrepreneurial Awards Judges .......................................................................................... 20 The Facts About Biotechnology........................................................................................................ 28 Governor’s Proposed Budget Focused on Education and Job Creation ..................... 30

The Greater Lansing Business Monthly (Volume 28, Issue 3)

Departments

The 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.

Commentary ................................................................................................................................................. 4

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 © 2015 The Greater Lansing Business Monthly, Inc. All rights reserved.

GLBM List.................................................................................................................................................... 32 Regional Roundup ................................................................................................................................... 34 Real Estate .................................................................................................................................................. 36 Business Calender .................................................................................................................................. 38 Notable News ............................................................................................................................................ 40

Editorial Office: 614 Seymour Street, Lansing, MI 48933 lansingbusinessnews.com

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MARCH 2015

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BUSINESS MONTHLY Publisher: Tiffany Dowling tiffany@m3group.biz Sales Manager: Jennifer Hodges jhodges@m3group.biz Media Specialist: Jill Bailey Account Managers: Megan Fleming

The Science of Change

y eighth grade science teacher, Mr. Kanarsky, probably suspected even then that I didn’t have a future in science. He was one of my favorite instructors and I really did well in his class, but science types tend to have a certain amount of patience and well, that wasn’t me. At that time, I didn’t understand how pervasive science, biotechnology and a whole host of other significant disciplines are to the world. Science is helpful in improving quality and standard of life; it has applications and implications in health, agriculture, medicine, the pharmaceutical and food science industries.

Manny Garcia Elaina Gonzales Production Director: Kelly Ritter Art Director: Brooke Erwin Brand Manager: Ami Iceman Creative Manager: Mark Warner Editor: Alicia Pilmore Graphic Artist: Mike France Web Manager: Skylar Kohagen Event Calendar Manager: Jaime Hardesty

GLBM Editorial Board: April Clobes — Executive Vice President, 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 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 Corrections: The List of insurance agencies in the February issue of GLBM misprinted the leadership of Regency Group as Kagen Cooksley and Kevin Koelemeyer. The president of Regency Group is Tim Hanna.

When I got out of college, I was a reporter for a daily newspaper and found it really important to try and understand as much about a topic as possible so that the information I passed on was correct. I was certainly tested right away when I had to cover a hazardous waste spill on the road and some issues with an environmental quality company. I’m happy to say that I still have the letter I received from the Fire Chief that commended my detail and accuracy. He admitted that he was nervous because I was young and he had never had anyone get it right before. I definitely understand why — it’s tough. There is a lot going on in the science field and frankly, it is usually quite complicated. The opportunity to be a writer for Neogen Corporation brought me to Lansing many years ago. Neogen develops, manufactures and markets a diverse line of products dedicated to food and animal safety. It was nerve-racking and exciting and also a little terrifying to learn how much of the world was unknown to me. It was also surprising to learn the important work that Neogen was doing. They were creating tests for food safety. Seems like an important product line, right? The average person has no idea how most foods move through the pipeline. There is some security in knowing that at some point, some foods are tested to make sure they are safe for consumption. Yes, from grains to meat, Neogen is providing tests to market to help keep people safe — and it’s happening right here. Although not all of us need to understand how science works and are thankful that others do, it is going to be interesting to watch the transformation of our Greater Lansing region as the sciences continue to grow as a sector. It’s pretty exciting to know that discoveries through science can and will change the world. If you’re changing the world or just have some news to share, the GLBM team has updated functionality to the lansingbusinessnews.com website. We have added a way for you to submit your press releases to the site so that those interested in business news can see it right away. Then, we will go through the uploaded news and select timely information and reverse publish the content in the magazine. This is just one of many new features we have planned for 2015. I will keep you posted on any new rollouts as they happen. Be dynamic in all you do,

Jeffrey F. Harrold’s name was misspelled in the February cover story of GLBM. We apologize for any confusion. 4

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Tiffany Dowling | Publisher MARCH 2015

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Housing Market Expands in Downtown Lansing BY MICKEY HIRTEN

owntown Lansing is experiencing a residential housing surge that will reshape the city’s core if it continues. To attract and retain young professionals, Lansing needs a vibrant center city, and modern housing is considered an essential element for success. “I’d say we’re sort of reaching the tipping point. This is a very positive thing,” Lansing Mayor Virg Bernero said of the housing trend. “The key to revitalization of cities and downtowns is getting people to live there. We are pleased and fortunate to have entrepreneurs investing in downtown housing.” Their actions, said Bernero, are based on solid business fundamentals: Apartments, when available, fill up quickly. “That sends a message. You’ve got empirical evidence for authentic downtown living.” The city estimates that recently completed and proposed housing projects will add as many as 580 residents to the downtown neighborhood. The housing renaissance started with the construction

of apartments in the shell of the former Arbaugh department store on Washington Ave., followed by the Stadium District apartments on Michigan Ave. and most recently, Knapp’s Center apartments, also on Washington Ave. Two new housing projects on opposite ends of the central business district are expected to break ground this summer. The Michigan Association of Broadcasters, working with developer David Ferguson, plans a $12 million mixed-use development on a 5.5 acre parcel bounded by Ottawa, Butler, Sycamore and Ionia Streets. In addition to the association’s new headquarters, the project will have 72 residential units, a mix of town homes, town home lofts and studio lofts. Lawton Group Development, owner of the long-closed YMCA Building on Lenawee St., plans to build 156 luxury apartments with parking on the site. The $23 million development is titled Metro Place Apartments. They will complement two downtown housing projects by developer Pat Gillespie: Marketplace, with 80 units,

adjacent to the Grand River just north of Michigan Ave., and The Outfield, also with 80 residential units, directly north of the Cooley Law School Stadium. Marketplace opened in late 2014; the Stadium District is under construction and set to open before the start of the 2016 baseball season. The momentum for housing is unlikely to abate, according to city officials and developers. “We’ve done demand analysis and feasibility studies, and both show a huge demand for this type of project in downtown Lansing,” said Dan Essa, principal partner in the Metro Place Apartments project. He cited a report in Multifamily Executive Magazine that puts Lansing’s multi-family occupancy rate at 97 percent, second only to Naples, Florida, at 97.5 percent. “Simply put, you cannot move to downtown Lansing right now — the apartment market is that tight, and mixed-use buildings are that underbuilt. Lansing is hot, once again, and places once more on a national stage,” said Lansing Economic Area Partnership president and CEO Bob Trezise when the magazine housing analysis was released.

REN DERIN GS PROVID ED

What for LEAP signals a strengthening economy, is for developers like Essa, opportunity. His company believes there is a need for 1,000 housing units in Lansing and he references a study by Terzo & Bolognia Inc., a real estate appraisal company that said annual demand could be as high as 500 units. It explains his enthusiasm for the 99,337 square foot, four-story Metro Place Apartments mixed-use project. Rendering of the MAB Building. 6

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Rendering of the Metro Place Apartments.

“We expect to break ground this summer and are shooting for completion by September 2016,” Essa said. He describes the apartments as “very cool.” “SIMPLY PUT, YOU CANNOT MOVE TO DOWNTOWN LANSING RIGHT NOW — THE APARTMENT MARKET IS THAT TIGHT, AND MIXED-USE BUILDINGS ARE THAT UNDERBUILT. LANSING IS HOT, ONCE AGAIN, AND PLACES ONCE MORE ON A NATIONAL STAGE.” — BOB TREZISE “Every one of them will have a vaulted or extended height ceiling. There will be real wood floors, ceramic tiles, high-end appliances, a washer and dryer. They will have an open floor plan. All of them will have a balcony — a real balcony,” Essa said. Before settling on a development plan, Essa said his company surveyed every project in downtown. “People talked about what they liked and didn’t like. The two most numerous

complaints were that there is no parking and that you could hear your neighbors through the walls. So we’ve added extra insulation and soundproofing,” Essa said, adding that there will be parking for each unit. Metro Place Apartments will feature 55 studio apartments renting for $650 a month; 67 one bedroom, one bath apartments, at $850; 17 two bedroom, one bath apartments, at $1,100: and 17 two bedroom, two bathroom apartments, at $1,250. Plans call for retailing or office space on the first floor of the building. Essa said a coffee shop or fitness center would complement the housing. The abandoned YMCA building that will be demolished for Metro Place Apartments was built in 1951, and wasn’t salvageable. Essa said his company had two engineering firms look at saving the building, but the issues with load bearing walls and asbestos were too daunting. He expects demolition to take about 30 days; there are two small basements that must be filled and the asbestos must be abated. Essa said Lansing’s Weiland Davco Corp. is the project’s general contractor. The architect is The Peabody Group, also of Lansing.

The project will be financed with a mix of private and government funds and credits, including a $13 million low-interest loan guaranteed by the U.S. Department of Housing and Urban Development. The use of federal funds requires that workers on the project receive the prevailing wage. “It raises our cost by 20 percent,” Essa said. But he added that government help is essential. “To do a building like this in an urban setting, you have to have incentives or it won’t make financial sense.” The Michigan Association of Broadcasters project will be largely privately funded, although it is eligible for government assistance, notably brownfield and housing tax credits. Like Essa, Ferguson sees an unmet demand for residential living in the heart of Lansing. “There’s a shortage of new housing for families and professionals that want to be close to downtown where they work.” Teaming up with MAB, he said, addresses the needs of the broadcasters’ association, those seeking “urban lifestyle” housing and the concerns of residents in the neighborhood. “We wanted to fit in with the community,” said MAB president and CEO Karole White. “So we hired a consultant. The very first thing we did was visit every one of (the neighbors) to see if they could L

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understand the vision for the project, so that what we build there fits into the community.” White believes that reaching out to neighbors softened resistance to building on the property, which MAB purchased for about $160,000 in 2013. Previous development proposals were controversial, mired in city politics and Genesee neighborhood objections. The MAB project, as yet unnamed, will include three buildings, said Ferguson: two residential/commercial structures and a separate headquarters for the broadcasters. When completed, MAB will offload the residential units and retain ownership of its headquarters. Ferguson has not yet named his architect or general contractor for the project, which he hopes to complete in early 2016.

Rendering of the MAB Building courtyard.

The mix of residential units — one and two story dwellings — will range between 750 and 1,500 square feet. Homes will be priced in the $175,000-to-$200,000 range, Ferguson said. Rental apartments will cost from $900 to $2,000 per month. “These are going to be very contemporary and modern, meant to attract professionals, singles and couples,” he said.

RIGHT ON TARGET

“Nonprofit and community groups will be invited to use our technology for distance learning,” she said. MAB plans to initiate a $500,000-to-$600,000 capital campaign to raise funds for the digital center.

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The cornerstone of the project is the MAB Media Center. The broadcast trade association will move from its home for the last 27 years on North Washington Ave. to a 10,000 square foot headquarters with a 1,000 square foot state-of-the-art digital communications center. “We want to show off how high-tech broadcasting really is. It’s so much more than the screen in front of you,” White said. The facility will support sophisticated digital transmissions for conferencing and broadcasting. And it will be available to the community.”

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The first floor of the residential buildings will feature commercial space that Ferguson believes will attract “law firms, lobbyists and accounting firms that want to be near downtown, but want a location near the historical museum, that want to be part of the community.”

124 W. Allegan St., Ste. 700 Lansing, Michigan 48933

(517) 482‐2400

MARCH 2015

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.

NEWS

Michiganâ&#x20AC;&#x2122;s capital area is a vibrant and dynamic business community. Taking on a proactive role, local companies are investing in the future of greater Lansing. Michigan State University Federal Credit Union and Capital Area Michigan Works! are working together to grow the regionâ&#x20AC;&#x2122;s talent base and help our community thrive. Together, Capital Area Michigan Works! and MSUFCU are committed to creating a world-class workforce.

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Michigan Senate to Relocate to Boji Building BY MICKEY HIRTEN

ichigan’s Senate is buying itself a new space; prime real estate, great view. It’s all about location, location, location.

of mine said ‘Ron, you can make one of two choices in owning this building: you can stay in the basement and manage it or you can take this landmark and grow with it.’”

In the waning days of the last legislative session, termlimited Senate Majority Leader Randy Richardville closed the deal to relocate Senate offices from the aging Farnum Building on West Allegan Street to the newer Capitol View Building on Townsend Street, directly south of the Capitol.

And grow it has. In addition to Boji Tower, which is listed on the National Register of Historic Places, the company has developed the new Davenport University campus building on South Grand Ave., the Hollister Building on South Washington St., and has plans for what it is calling the Grand Development, a $65 million, six-story, 225,000 square foot mixed-use development at the corner of Kalamazoo St. and Grand Ave.

The Michigan Strategic Fund will float up to $70 million in bonds for the project, and will own the basement and first seven floors of the nine-story structure, which was built by the Boji Group in 2005. The Fund, in turn, will lease the office space to the Senate. At the end of the lease term, the Senate may purchase the property for $1.

The Boji Group acquired the former Davenport University property between Grand Ave. and River St. when the school relocated to its new site in the former Fifth/Third Bank building on the corner of Grand Ave. and Allegan St., which had been owned by Boji.

Boji, which was awarded the contract, will continue to own the eighth and ninth floors, which it leases to the Dykema Gossett law firm. “The purchase price for the Senate condo unit is $41 million,” said Ron Boji, who along with his father, Louie, owns the company. He added that configuring the space for Senate will require an additional $10 million. But he expects it to happen smoothly.

The proposed Grand Development, which has no start date, figured into the proposal for the new Senate office building. The Boji Group offered to reduce the state’s rent by $4.3 million and provide an $875,000 moving allowance if it agreed to relocate in the planned mixed use development.

The Department of Community Health now occupies what will become the new Senate offices. “There’s not really that much difference between what the Senate needs and what the DCH has today,” Boji said. His company will handle the renovations. The interior has office suites, conference rooms and workspace for cubicles. Notable changes to the building will be the construction of a two-story atrium and a different exterior facade. “It’s not a very long construction project,” Boji said. In addition to the reprogramming of the building, there will be significant renovations for safety, security and accessibility, and to allow the public to more fully participate in the political process, Boji added. The Capitol View sale and renovation is the latest high-profile project for the Boji Group, which edged its way into Lansing’s commercial real estate market in 1998 with the purchase of the former Olds Tower on Allegan, now known as Boji Tower. This is the building that defines Lansing’s skyline: Art Deco styling, engraved panels in the portals, 23 stories and 297 feet tall. “It changed the status of our entire family and the sense of our business,” Boji said of the purchase. “At the time, a lobbyist friend 10

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The state rejected this sweetener. It announced in midJanuary that the Michigan State Police headquarters would relocate to the secondary complex in Dimondale and the displaced Department of Community Health would move into the specially designed MSP building at Grand Ave. and Kalamazoo St. It is one in a series of state office moves affecting about 2,000 workers that will unfold in the next 18 to 20 months. Rejection of Grand Development project aside, the Boji Group does well in the public arena and says on its website that 30 percent of its portfolio is with state and local government. Ron Boji and his family are well connected in Republican circles and according to reporting by the Detroit Free Press, since 2005 have given $61,000 to the Senate Republican Campaign Committee, $70,000 to the Michigan Republican Party, $32,700 to Gov. Rick Snyder, $28,000 to the House Republican Campaign Committee, $1,000 to Richardville’s leadership PAC, $27,102 to Mike Bishop and his PAC and more. The newspaper noted that he has also contributed to Democrats. Boji asserts that his political connections had no bearing on the contract for the new Senate office building. “Capitol View ... represented the lowest, most responsive bid and contained

NEWS

additional incentives to reduce costs to the State of Michigan and create significant investment in Michigan’s capital city,” the company stated in an overview document detailing the transaction.

Boji in Lansing BOJI TOWER: A 248,000 square foot, class-A, office building located across the street from the State Capitol.

The Boji Group said that a non-partisan committee reviewed responses and made recommendations to Richardville for the new Senate offices, adding that proposals to relocate from the Farnum Building first surfaced during the Engler Administration. The state has not yet determined what will happen with the 11-story Farnum Building, which it purchased in 1978 for $3 million. A bill authorizing the sale was stalled during the lame-duck legislative session.

CAPITOL VIEW: A 160,293 square foot class-A office building also located across the street from the State Capitol. DAVENPORT UNIVERSITY: Its new downtown Lansing campus was a $10 million-plus renovation project of the 68,641 square foot, 9-story, former Fifth/Third Bank building.

Boji said his company is interested in acquiring the property, which is across the street from its tower. “A lot of people don’t know this, but there is a tunnel underneath the street that connects the two buildings.”

THE HOLLISTER BUILDING: A 90,000 square foot renovation of this historical building provides office and retail space in downtown Lansing.

OTHER PROJECTS: The 40,734 square foot Department of Human Services office building in Flint; 40,500 square foot Inkster, Michigan Justice Center; The United Center, a 195,000 square foot, mixed-use shopping center in Southfield; the 30,000 square foot Michigan Department of Human Services office in Hamtramck; and the 12,500 square foot Inkster Starfish and YWCA building.

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Lower Diesel Fuel Costs Help Expand Transportation Industry BY MICKEY HIRTEN

hile the cost of diesel fuel is still higher than gasoline — a historical anomaly attributed to overseas’ demand, environmental regulations and taxes — those in the transportation industry nonetheless are celebrating prices at a five year low. Diesel fuel, which last March averaged $3.98 per gallon, sold in the $2.84 per gallon range in February 2015, according to the U.S. Energy Administration. And that’s along the highway. Longer term contracts for diesel fuel are significantly lower, which for truckers comes as the economy is improving and drivers are in short supply. “Trucking is in a sweet spot,” said Walter G. Heinritzi, For Kellie Dean, whose Dean executive director of the Michigan Trucking Association. Transportation enterprise operates Any reduction in the cost of fuel is obviously beneficial 1,500 yellow school buses and to carriers.” His organization, with 500 members, more than 30 over-the-road represents Michigan’s trucking fleet industry. coaches, falling diesel prices allow AS THE TRANSPORT him to trim prices. “We’ve been able BUSINESS EXPANDS, THE The lower cost of diesel fuel has come as a to lower our cost to our customers. pleasant budgetary surprise to the Capital Area That’s always a good thing, particularly COST OF DIESEL FUEL IS Transportation Authority (CATA) which had for school districts. If the price of projected higher prices. fuel is down, it actually reduces our EXPECTED TO RISE, BUT overall costs.” “What the board had budgeted for this fiscal MODESTLY, ACCORDING TO year was $3.35 a gallon,” said Sandy Draggoo, As with the trucking industry, Dean CATA chief executive officer/executive Transportation services come with a PROJECTION, MORE GOOD director. In January, she said, the price CATA fuel adjustment clause. paid for diesel ranged from $1.51 to $1.71 NEWS IS ON THE WAY FOR a gallon. “If it goes up, we might have to charge THE INDUSTRY. a half a cent or a penny more,” Dean To lock in lower prices, CATA has signed a onesaid. “We educate our customers that fuel year contract to purchase fuel for $2.20 per gallon, costs are volatile and they are pretty good at not an insignificant hedge for an organization that uses understanding that.” one million gallons of fuel per year. “The price could go higher, so we have locked it in,” Draggoo said. It means about $1 million in Dean said a benefit of lower fuel cost is its effect on his company’s savings for the transpiration authority, money that will be added workers. “We have 2,000 employees at 30 locations across the to reserves. state. It impacts of out-of-pocket savings for them buying fuel just to get to work.” CATA is also reducing fuel costs by only purchasing hybrid buses, which average between 5.4 and 5.6 miles per gallon, compared Dean Transportation buys about 2.2 million gallons of diesel with standard diesel buses that get 3.5 to 4 miles per gallon, fuel per year using both the spot and future markets. It uses two Draggoo said. But these acquisitions are costly; about $675,000 suppliers — Lansing Ice and Fuel and the Van Manen Petroleum for a 40-foot bus and about $875,000 for a 60-foot articulating Group, based in Grand Rapids. Buying is handled through the bus, she said. company’s fleet management department, which arranges for delivery at various locations throughout the state. Dean said 12

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where his company picks up fuel matters. “A lot of savings is in the delivery costs. We monitor this online.” “Fuel is the second highest cost component in trucking, right behind labor,” Heinritzi said. But he cautioned that lower prices don’t automatically translate into higher profits. “Whenever the price of fuel increases, carriers have the option of leveling a fuel surcharge for what they haul,” Heinritzi said. And when prices fall, so can the surcharge. “You have to negotiate with the shippers. For them, it’s how bad do they need the service. Because the demand for trucking is outpacing the supply, (truckers) are able to raise prices and keep where they are.” While there are opportunities to improve profitability, Heinritzi cautioned that there are no guarantees. “It depends on how they manage their business. In theory, things are better and the industry is in good shape.” Shippers and others in the transport industry can expect lower fuel prices to continue for at least the coming year. The Energy Administration projects prices in the 2.83 range through 2015, rising to $3.24 in 2016. It has a similar outlook for gasoline: $2.33 in 2015 increasing to $2.73 next year.

Business

“This is kind of expected. Most estimates have diesel crawling back up slowly,” said Rod Suarez, an economic analyst for the American Trucking Association. He said the trucking industry is recovering from the recession, especially the “big 18-wheelers.” “That was the sector that was performing poorly. With the last half of the year, they really started to grow again and it’s continued so far,” Suarez said. The agency projects that freight transporters with cargo in excess of 10,000 pounds, the big rigs, will log 232 billion miles annually by 2020. This compares with 271 billion miles in 2014. As the transport business expands, the cost of diesel fuel is expected to rise, but modestly, according to projection, more good news is on the way for the industry. 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.

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BIOTECH COMPANIES Encourage Economic Growth in Lansing B Y MI C KE Y H I RT E N | I LLU S TR ATI O N S B Y B RO O K E ER W I N

n so many ways, Lansing’s future is linked to a burgeoning biotechnology economy. Michigan State University, a research juggernaut, is home to strong and successful life sciences and biomedical companies, and more are coming. Organizations like Prima Civitas, the Lansing Economic Area Partnership and Business Leaders for Michigan have identified biotech’s unique growth sectors and are marshaling resources and support. The real question is how far can the region can advance. The answer seems to be, quite far. The impact of MSU in accelerating mid Michigan’s biotech economy can’t be overstated. Last year, it was ranked 46th among the world’s universities for life sciences by Thomson Reuters, which considered in its analysis teaching, research, knowledge transfer and international outlook. The accolade reflects the university’s “World Grant” mission. “MSU’s research operations alone exceed $500 million,” said Doug Gage, the university’s assistant vice president for research and graduates studies. “Our mission is new knowledge and new innovation.” It aligns the university with the state’s other major research institutions: University of Michigan and Wayne State University. In 1999, all three established a “Life Sciences Corridor” to leverage their expertise in 14

science, technology, math and engineering, skills that are the foundation of a biotech economy. “We have dramatically improved our technology transfer organization over the last few years, actively mining things that come out of our faculty research labs,” Gage said. “We want to see our innovations benefit the region.” Ties between the university and industry are evident throughout the region’s biotech firms. For example, the senior management team of Orchid Orthopedic Solutions, one of the region’s largest life-science companies, is stacked with MSU alumni. They include Mike Miller, chief executive officer; Mark Burba, executive vice president — machining; and Joe Zuzula, vice president of sales and marketing — corporate. The company, based in Holt and with a work force of 1,700, is a world-wide manufacturer of medical devices. In short, connections matter. “There are lots of regions across the country and the world that compete for skilled workers. But it’s a competition we can compete in,” said Arnold Weinfeld, chairman and CEO of Prima Civitas, a Lansing-based nonprofit economic and community development organization that supports Michigan growth initiatives. Some of the Lansing competitive benefits are prosaic, but important. “You might be surprised to know that we can actually

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bring in people from California and the East Coast. Part of it is lifestyle. You don’t have an hour commute. Housing is quite reasonable, the schools are good,” Gage said. “Part of our success is a work ethic and culture. It’s the same reason General Motors decided to build two auto plants in Lansing,” said Weinfeld. And as Lansing’s reputation as a biotech center grows, so does interest in the region. MSU and the University of Wisconsin are partners in the Great Lakes Bioenergy Research Center, one of three centers funded by the U.S. Department of Energy to perform the basic research that generates technology to convert cellulose biomass to ethanol and other biofuels. According to Gage, the venture has produced more than 100 patents and more than 700 research papers. It’s a project with national and international reach and broad business support. Collaborators included Arthur Daniels Midland Co., Cargill, Dupont, Exxon Mobil and General Motors, large businesses that recognize the commercial applications of university research. MSU’s involvement, its connections with businesses as well as its academic output all burnish the university’s brand. “You never know what the next innovation will be that leads to a breakthrough,” Gage said, adding that the goal of the university is to pursue commercial opportunities where it finds them.

“There has to be a market pull. It doesn’t make sense to patent innovations that have no commercial potential. We shepherd our resources very carefully,” he said. With MSU and its dozens of biotech-related programs, its faculty, graduate students and grants, innovation happens along many lines. Stephen Rapundalo is chairman and CEO of MichBio, an association that provides the biosciences industry information, advocacy and resources. His organization has categorized a broad mix of Lansingregion businesses and institutions engaged in biosciences: agriculture-foodnutrition, medical devices and equipment, pharmaceuticals and diagnosticsresearch and testing. These complement universities, smart zones, hospitals and clinics for the local share of a statewide industry that employed 42,000 in 2012. Altogether, MichBio identifies more

than 100 businesses in a three-county region that in some way engage in or support biotechnology. Among the firms that had international success from a base in Lansing is Emergent BioSolutions Inc. The company, which is headquartered in Rockville, MD, but retains an outsized presence locally, is a specialty pharmaceutical company that defines its mission as “protecting and enhancing lives.” It’s not just a flowery phrase from a mission statement. Emergent, through its United States government contracts, produces BioThrax, a vaccine that protects against deadly anthrax infections, at its Lansing laboratories. It is the foundation of the company’s biodefense line of business,

which has expanded significantly since 2011, with new lines of post-exposure drugs. These products address infectious disease and CBRNE threats, that is, chemical, biological, radiological, nuclear and explosive. Complementing the biodefense products is Emergent’s bioscience division with hospital and clinic products targeted at treatments in the hematology, oncology, infectious disease, autoimmunity, transplantation markets. It’s the broader line of products — some developed by the company and other through corporate acquisitions — that have pushed annual revenues past $500 million. The company forecasts revenues between $510 million and $540 million in 2015, up 17 percent from 2014. It projects net income of between $50 and L

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$60 million, a 49 percent increase. The performance follows significant year-overyear gains in 2014, with revenue up 43 percent and income higher by 19 percent, according to preliminary reports. “In 2011 we had one product. Now we have nine,” said Adam Havey, Emergent’s executive vice president and president of its biodefense division. Since the company’s founding in 1998, it has expanded from a single facility in Lansing to 10 sites scattered across the United States and in Europe.

But growth aside, Emergent is largely a company built on the success of its Lansing operation. It employs about 410 at its campus on north Martin Luther King Blvd., in laboratories that until 1998 were owned and operated by the state of Michigan as BioPort. “IT’S A HUGE ASSET, OF THE LANSING CAMPUS. WE’VE INVESTED $200 MILLION INTO THE FACILITY OVER THE

Employment has grown from 170 to about 1,300. In 1998 there were no new products in the company’s pipeline; now there are six clinical candidates and multiple preclinical candidates. The company’s recent success derives in part from its mergers and acquisition strategy, said Havey, citing the purchase of Cangene Corp. and its successful integration into Emergent. The Cangene products that have broadened the company’s offerings and Emergent expect to continue purchasing compatible and complementary businesses.

LAST FIVE TO 10 YEARS. 70 PERCENT OF OUR REVENUE COMES FROM LANSING.” — ADAM HAVEY “It’s a huge asset,” said Havey of the Lansing campus. “We’ve invested $200 million into the facility over the last five to 10 years. 70 percent of our revenue comes from Lansing.”

Emergent is proceeding with a major enhancement to its Lansing manufacturing operation, building a new laboratory designed to boost vaccine production from 20 million to 25 million units a year compared with current capacity of 7 to 9 million units. The company announced in February that it had completed a nonclinical study demonstrating that BioThrax manufactured at large scale in the new facility it calls Building 55 was compatible with the BioThrax from its approved facility, Building 12. This is a key step in the approval process required by the U.S. Food and Drug Administration allowing for expanded production. In 2010, the company signed a $107 million contract with the Office of the Biomedical Advanced Research and Development Authority of the Department of Health and Human Services to develop and obtain regulatory approval for large-scale manufacturing of BioThrax in Building 55. “Unlike the Building 12 production facility, which is limited to a single product, the Building 55 laboratory can manufacture multiple products,” said Havey. “It can bring new products to the area.”

The Economies of Biotech While the success of biotech companies is largely attributed to their business model, there is a role for government. MichBio, which represents the interests of industry and academic enterprises, has a state competitiveness agenda to aid established companies, start-ups and business recruiting. The agenda, aimed at policy makers, elected officials and industry includes:

• Assistance for SBIR applications

• Re-establish angel investor tax incentives

• Adopt domestic manufacturing incentive

• Allow state funds as match for angel investment

• Tax incentive to offset portion of federal medical device excise tax

• State-assisted bank financing or lending products • Tax benefits for equipment purchase/facilities purchase or improvements

• Ensure R&D tax incentive • Tax incentive to offset portion of federal FDA user fees • Expand exemption from Michigan sales and use Tax • Tax incentive for sponsored clinical trials • Increase matching of small business innovation research/ small business technology transfer funds

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• Talent and workforce development incentive

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Emergent’s commitment to Lansing runs deeper than its founding roots. “There are two things that set us apart: our people and our core values. We operate as a team,” Havey said. He cited the company’s relationship with MSU, the city of Lansing and the state and economic development agencies as contributors to the company growth and success. As Emergent has grown, so has its need for skilled workers in many fields. “There are some years where finding talent and retaining talent has been easier, and other years where it’s been more difficult. Now we are really focused on talent development, taking kids from MSU and growing them,” Havey said. Emergent looks for graduates with biology, bio-chemistry or engineering degrees, also legal and finance degrees. Another large company with a diverse portfolio is Neogen Corp., which specializes in worldwide food security. In 2014, the company, which is headquartered at Lesher Place in Lansing, has more than 1,000 employees and reported revenues for the fiscal year ended May 31 of $247.4 million, a $40 million increase from the previous year. Net income was $28.2 million compared with $27.2 million in 2013. Neogen was founded in 1982 and operates globally, developing and manufacturing products to ensure food and animal safety.

“Management’s vision is for Neogen to become a world leader in the development and marketing of products dedicated to food and animal safety,” the company said in its SEC filing. Attaining this goal requires increasing sales of existing products, new products and product lines, expanded international sales and business acquisitions and strategic alliances. “THERE IS ABSOLUTELY SYNERGY. IT’S ATTRACTIVE FOR COMPANIES WHEN THERE IS A TALENT BASE. WE WISH WE WERE BOSTON OR SAN

Beams (the FRIB) now under construction at MSU — that will bring even more talent and opportunity to this economic sector. “If you look at the FRIB, it’s not a biotech project, but there is an in excess of 450 new hires that it’s brought into the region. Those are salaried researchers working on the project. And with every grant that is funded, there are technicians, graduate students and post-docs,” Gage said. “There is absolutely synergy. It’s attractive for companies when there is a talent base. We wish we were Boston or San Diego, where they have a high level of biotech status.” Gage said. “But that’s the direction we are moving in. There is quality here.”

DIEGO, WHERE THEY HAVE A HIGH LEVEL OF BIOTECH STATUS. BUT THAT’S THE DIRECTION WE ARE MOVING IN. THERE IS QUALITY HERE.” — DOUG GAGE

With its diverse array of life science business, the region is well positioned for future growth. And there is a project in the offing — the Facility for Rare Isotope

In its 10-K filings with the U.S. Securities and Exchange Commission, the company described its Lansing-based food safety division which it said “develops and markets dehydrated culture media, and rapid diagnostic test kits to detect food borne bacteria, spoilage organisms, mycotoxins, food allergens, genetic modifications, drug residues, plant diseases and sanitation concerns.” It has an animal safety division based in Lexington, Kentucky that focuses on “diagnostics, veterinary instruments, veterinary pharmaceuticals, nutritional supplements, disinfectants and rodenticides,” according to the company.

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Volunteers of America Homeless No More Reception P HOTO S BY MARK WA R N E R

Volunteers of America hosted the “Homeless No More” reception on Wednesday Feb. 11 at the Kellogg Hotel and Conference Center in East Lansing. This is the fourth year that Volunteers of America has hosted the event, which has become the organization’s biggest fundraiser of the year. The “Homeless No More” reception raises awareness for homelessness in Michigan and fundraises to provide homeless citizens with food and shelter.

4 1 . J o e l Fe r g u s o n , M e l a n i e Fo s t e r a n d Pa t G i l l e s p i e 2. Rochelle Rein, Danielle and Ryan Robinson 3. Color Guard 4 . Pa t r i c k Pa t t e r s o n a n d D av i d J o r d a n 5 . Pa t r i c k a n d N e a l A n d e r s o n 6 . J e s s i c a a n d Fra n k A s h 7 . Kev i n M c G ra w a n d Tr i c i a Fo s t e r 8 . To ny Wo o d s

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Save the Date! GALA EVENT Thursday, May 7, Lansing Center Join 1,000 others to celebrate outstanding Michigan small businesses at the 11th annual Michigan Celebrates Small Business gala event. www.MichiganCelebrates.biz

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2015 Entrepreneurial Awards Judges regarding education entities, peer reviews and CPA advisory services. Entrepreneurship has always been a passion for Dunn. Before his professional career began, Dunn was confident that accounting would be the ideal fit because of the opportunity to work closely with people and to potentially become a business owner. He attributes his professional success to his parents, who instilled in him a quality work ethic and a philosophy of personal responsibility and accountability.

B RUC E J. D U NN, C PA , AU D I T PRINCIPAL , DIRE C TO R OF M ARKE TING , M A N E R COSTE RIS AN

Bruce J. Dunn is the audit principal (shareholder) and director of marketing for Maner Costerisan, a full-service public accounting and business advisory firm that has served the Lansing community since 1906. The firm received the Lansing Regional Chamber of Commerce Legacy Award in 2012 in recognition of being a long-standing Chamber member, and was the recipient of long-term commitment to growth in the Greater Lansing region.

“I enjoy owning a business, and I enjoy helping other people be successful owning a business,” said Dunn. Dunn has been a member of the judges panel for more than a decade. Maner Costerisan is one of the original sponsors of the Entrepreneurial Awards.

personal — and business-related financial services to Michigan State University and Oakland University faculty, staff, students, alumni association members and their families worldwide, in addition to a variety of select employee groups. Jackson’s primary role is to provide financial solutions for business members in order to meet their lending and cash management needs. He is also responsible for payments to help all members conveniently access and move money. Jackson loves the Greater Lansing region and has spent most of his life here. He attended East Lansing Public Schools, as do his three children, Justin, 17, Josh, 16, and Logan, 14. Jackson met his wife, Lori, at Ernst and Young in public accounting, and she has taught accounting and auditing at Michigan State University for the last 15 years. Jackson has been with MSUFCU for 17 years and loves that he has been able to serve the community for that entire time. Jackson is excited to be a part of MSUFCU and the Greater Lansing region and intends to finish his career there. “THE ENTREPRENEURIAL AWARDS JUDGES PANEL IS A GREAT OPPORTUNITY TO

Dunn joined Maner Costerisan in 1979 and serves as director of Maner Costerisan’s Education Practice Group and CPA Firm Practice Group. Bruce has served many roles at the firm, including Director of Audit Services, Director of Quality Control, Vice President, Treasurer, and Immediate Past President. With more than 30 years in the accounting and consulting field, Dunn works closely with a diverse group of clients, including school districts, colleges, government entities, trade associations, nonprofit organizations, CPA firms and businesses. He is considered the “go to” expert for matters 20

SUPPORT THE COMMUNITY AND TO POTENTIALLY HELP ENTREPRENEURS REALIZE J E F F JACK S O N , S E N I OR VI CE P R ES I D E N T OF B U S I N E S S L E N DI N G & OPE R ATI ON S , M S U F ED ER AL CR E D I T U N I ON

Jeff Jackson is the senior vice president of Business Lending and Operations for MSU Federal Credit Union. Based in East Lansing, MSUFCU is the world’s largest university — based credit union and offers a full range of

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THEIR DREAMS.” — JEFF JACKSON MSUFCU has a core mission of supporting their members and communities. Supporting entrepreneurship is a simple extension of that core mission. MSUFCU has participated on the Entrepreneurial Awards judges panel for many years. This is Jackson’s first year on the panel.

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“We love working with people who are passionate and helping them attain their dreams,” said Jackson. “The Entrepreneurial Awards judges panel is a great opportunity to support the community and to potentially help entrepreneurs realize their dreams.”

Besides being a member of the Judges panel for the 2015 Entrepreneurial Awards, Hindmon is also the president elect for the Haslett-Okemos Rotary Club. She’ll take over as president in July 2015.

When asked why he continues to remain on the panel, Nugent says he desires “to continue our support of both those that have been successful in the Lansing area, and those that are in need of our support to grow.”

Being on the Judges panel was a natural fit for Hindmon. She’s been quite active in the start-up area. She joined the panel because she wanted to see the companies out there and what they are doing. “People who have started a business are so motivated. They are fun to work with and very excited about their business. Our goal is to educate and help them to get off the ground floor.”

C A RRI E HI ND M ON , C PA , C SE P, PA RT NE R , ANDR E W S H O O P ER PAV LIK P LC

Carrie Hindmon has been a partner with Andrews Hooper Pavlik PLC (AHP) for 11 years. She works in tax practice, tax compliance and consulting. AHP was founded in 1993 and is a full service audit, tax and accounting firm with seven Michigan locations. Hindmon has 16 years of experience in public accounting. What she appreciates about AHP is that they place a high value on maintaining balance in three areas — professional, home and community service — and encourage their employees to do the same. AHP prides itself on supporting entrepreneurship. It works with start-up businesses and has offered their support to local organizations such as Lansing Economic Area Partnership, The NEO Center and Spartan Innovations. Hindmon says her firm believes that “if the community is thriving, then we are thriving. We feel that for businesses to continue to be successful, we need to continue to build up new businesses. Our role is to support them in their accounting needs.”

CH RIS G. TH E L E N , PUBLIC AF FAI R S AR E A M AN AGER, CON S U M E R S E N E RGY

CH RI S N U GE N T, PR E S I D E N T, H O R I ZON B AN K — L AN S I N G R EG I O N

Chris Nugent is president of Horizon Bank — Lansing region. Horizon is a community bank serving Northern and Central Indiana and Southern Michigan. It offers banking, investment and trust services and provides mortgage banking services throughout the Midwest, including two Lansing area locations. Nugent brings his 25 years of community banking in Lansing to the Entrepreneurial Awards judges panel. He believes that to have a thriving regional economy, midMichigan entrepreneurs need financial partners. This will be Nugent’s third year on the panel.

Chris G. Thelen is the public affairs area manager at Consumers Energy. He manages community relations for Consumers Energy in five counties in the Lansing area (Clinton, Eaton, Ingham, Ionia and Shiawassee County). Consumers Energy is one of the nation’s largest combination utilities, providing electric and natural gas service to nearly 6.6 million of Michigan’s 10 million residents, in all 68 Lower Peninsula counties. Thelen joined Consumers Energy 22 years ago as a writer in Corporate Communications, supporting their marketing and employee communications. Prior to joining the company, Thelen worked as a copywriter for advertising agencies in Midland, Detroit and Cleveland. He graduated from Michigan State University with a B.A. in Journalism and started his career writing advertisements for John Deere in Moline, Ill. Consumers Energy has been a long-time supporter of economic development L

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and is the reason why Thelen actively participates in economic development in the Lansing area. “Entrepreneurship is the life blood of our economy and a critical component of economic development,” said Thelen. “Having a business climate where new ideas flourish and grow helps both new and mature businesses to succeed and prosper.” This is Thelen’s first year on the Entrepreneurial Awards judges panel. He knows how important it is to recognize the people who have the courage to start a business and grow it from the ground up. “This is one way to play a role in encouraging the entrepreneurs in the Lansing area. It is my hope that the stories behind these awards will inspire others to take that first step to bring their idea to the marketplace,” said Thelen.

Prior to joining Sparrow, Shaski was a legislative advisor and chief of staff in the Michigan Senate and Michigan House of Representatives for nearly eight years. Coming from the Upper Peninsula, supporting local businesses has always been important to Shaski. He believes successful entrepreneurs and businesses add to creating a strong economy, which is important to any region. This is Shaski’s first year on the Entrepreneurial Award judges panel. “I’m looking forward to learning about how local entrepreneurs continue to evolve with the times and adjust their businesses accordingly,” said Shaski. “Investment and philanthropy in the community is something that is of great interest to me, so I am also looking forward to learning how our local entrepreneurs contribute to the community.”

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Petersmark grew up in East Lansing and worked in her family business, HoldenReid Clothiers, through grade school and high school. After graduating from Indiana University, she returned home and spent the next 10 years at the Sparrow Foundation. She started in special event planning, and then as the manager of the Children’s Miracle Network (CMN), raising funds to support the Sparrow Children’s Center. Through the CMN partnership with WILX, Petersmark grew to like the broadcasting and advertising business, and transitioned to WILX in 2000 as an account executive. “I LEARNED THAT IT TAKES RISK, HARD WORK, BIG DREAMS AND GREAT CUSTOMER SERVICE TO GROW YOUR BUSINESS AND MAKE IT SUCCESSFUL ENOUGH TO HAND DOWN TO THE NEXT GENERATION.” — DEBBIE PETERSMARK Petersmark learned the value of entrepreneurship through working in her family’s business.

J O HN S HA S KI , G OV E R N M E N T REL ATIO NS OF F IC E R , S PA RRO W HE ALT H SY ST EM

John Shaski is the government relations officer at Sparrow Health System. He oversees the federal, state and local government affairs and community relations for the Health System. Sparrow has grown to become the Lansing region’s largest health system, and its diverse range of facilities offer residents some of the most advanced medical technology available in the world. 22

D E B BIE PE TE RS MA RK , G EN E R AL S AL E S M AN AGE R , W I L X M E D I A & LOCAL X M A R KE TI N G

Debbie Petersmark is the general sales manager for WILX Media and Local X Marketing. WILX Media Sales helps local businesses grow their market share through the use of effective advertising. Petersmark works with local companies to identify their niches, develop creative strategies, write and produce compelling advertising and deliver their message to the right audience. WILX is

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“When people ask where I grew up, sometimes I say “Frandor,” because even as a kid, our whole family worked for the family business!” said Petersmark. “I learned that it takes risk, hard work, big dreams and great customer service to grow your business and make it successful enough to hand down to the next generation.” Petersmark has many close friends who are entrepreneurs, and through WILX, she has come to know and respect so many local business owners. “I think the most important thing we do at WILX is helping them as they grow their dreams into successful profitable businesses.” This is Petersmark’s first year on the Entrepreneurial Awards Judges panel.

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“I know so many of the past recipients of this prestigious award, and I’m honored to be part of the process of recognizing the contributions these businesses and their owners make to our community.”

Event Speaker

a coach in the Detroit-based Honeybaked Hockey program and as an administrator. He had been one of two NCAA representatives on USA Hockey’s board of directors and was a long-time member of its International Council and Junior Council, which oversaw the activities of the organization’s international programs and US junior hockey. Recognized by The Hockey News in five of the past eight years on the list of the 100 most influential and powerful people in the sport (most recently No. 46 in 2011), Anastos has an unrivaled passion for the game and savvy blend of administrative, business and communication skills, a Who’s Who list of connections and has provided a progressive vision and dynamic leadership for college hockey. Anastos, who was honored as MSU’s “Distinguished Spartan” by the hockey program in 2004, both played and coached

TO M A NA S TOS , H E A D C OAC H OF M ICHIG AN S TAT E H O C K E Y PRO G R AM & E NT R EP R EN E U R

Prior to his appointment at MSU, Anastos was very active in amateur hockey, both as 24

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In the fall of 1990, Anastos returned to his alma mater as an assistant coach under Ron Mason for two years. Those two teams went a combined 43-28-13, and in 1991-92, advanced to the Frozen Four. Anastos’ commitment to growing the sport has resulted in an annual statewide celebration known as “Hockey Day in Michigan.” The grassroots initiative, which includes the live broadcast of two CCHA games on FOX Sports Detroit, has been successfully imitated by USA Hockey to encourage fans, players, coaches and officials to unite in their passion for their sport and help introduce others to the game.

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Tom Anastos, a Michigan State alumnus who has excelled in the sport of hockey as a player, coach, administrator and visionary, was appointed to the position of head coach of the Michigan State Hockey program on March 23, 2011. Anastos, who previously served as the commissioner of the Central Collegiate Hockey Association for 13 seasons, became just the sixth Michigan State hockey coach in program history and the fourth in the modern era. 2014-15 will mark Anastos’ fourth season behind the Spartan bench. Despite his move from commissioner to head coach of a collegiate program, Anastos has continued his leadership within the sport as he was appointed as the Big Ten’s representative to the NCAA Hockey Rules committee during his first season at the helm. In June 2012, he was selected as the group’s chair.

at his alma mater before stepping into an administrative role. He was a four-year letter winner at Michigan State (1981-85) for former coach Ron Mason, and received his bachelor’s degree in construction management in 1987.

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80’S

Reserve your table today For the raddest party of the year! ‘80s idol contest, food, drinks, video games and STARFARM live. Saturday, May 9, 2015 7 p.m. - midnight Henry Center at The University Club 3435 Forest Rd., Lansing Reserve your corporate table today! Receive eight tickets and two complimentary bottles of wine at your table for just $500. Don’t miss out, call today (517) 203-0123. 27 L B N . Proudly Supporting the Girl Scouts Heart of Michigan. a n s i n g

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The Facts About Biotechnology BY A LICIA PIL MORE

Biotechnology is defined by the Merriam-Webster dictionary as “the manipulation of living organisms or their components to produce useful, usually commercial products such as pest resistant crops, new bacterial strains or novel pharmaceuticals.” Though the word “biotechnology” wasn’t used until 1919, people have been using biotech for thousands of years to modify food and fight diseases. Below are some facts about biotechnology and its uses.

Biotech has been used to preserve food and make products such as bread, cheese and yogurt for more than 6,000 years.

Agricultural biotech dates as far back as 250 B.C.E., to when the Greeks practiced crop rotation for maximum soil fertility.

Fermentation, a form of biotech, has been used to produce beer and wine since 7000 B.C.E.

Farmers have crossbred their crops and animals for hundreds of years in attempts to obtain specific beneficial traits and avoid undesirable ones.

Agricultural biotech helps small farms, especially in developing countries produce more crops

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Agricultural biotech is more environmentally friendly — certain foods are designed to be resistant to pests and diseases, which allows farmers to use fewer chemicals while still maintaining healthy crops.

17 million farmers in 28 countries planted 170 million hectares of biotech crops

MARCH 2015

F E AT U R E

In 2012, developing countries grew more biotech crops than industrial countries for the first time.

Major biotech crops include corn, soybeans, cotton and canola.

More than 325 million patients have benefited from approved medicines produced through biotech and gene technology to treat or prevent heart attacks, stroke, multiple sclerosis, breast cancer, cystic fibrosis, leukemia, hepatitis, diabetes and other diseases.

Today, there are more than 100 antibiotics that help fight off hundreds of different infections.

1796

The first vaccine was developed in 1796 by Edward Jenner, who successfully protected eight-year-old James Phillips from smallpox by using materials from a cowpox sore. Smallpox has since been eradicated.

The first antibiotic (penicillin) was developed in 1928 by Alexander Fleming.

This year, 418 new biotech medicines and vaccines are being tested for more than 100 diseases including: â&#x20AC;˘ 210 to treat cancer â&#x20AC;˘ 50 to treat infectious diseases â&#x20AC;˘ 44 to treat autoimmune diseases

In 2012 Zac Vawter successfully used a nervous system-controlled bionic leg to climb the Chicago Willis Tower.

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F E AT U R E

Governor’s Proposed Budget Focused on Education and Job Creation BY A LICIA PIL MORE

egotiations for the 2016 fiscal year budget are well underway after Governor Rick Snyder presented his budget plan to the Legislature in mid-February. The proposed $54 billion budget focuses on strengthening Michigan’s economy by investing in skilled trades, K-12 education and healthcare.

to the Legislature. Once the budget is finalized at the beginning of June, a separate commission will be formed to oversee the approved program put in place by the work group. “Michigan needs to do a little better than what we’re doing,” stated Weiss. “(Reading proficiency) is such an indicator for future success, and that’s why the governor was really focused on this particular issue.”

One of the key elements of the governor has emphasized in the proposed budget is investing in skilled trades, job creation and business attraction as a means to further advance Michigan’s economic growth. Overall, $83 million has been recommended to improve skilled trade training programs. “What he’s really trying to do there is bridge the talent gap,” said Kurt Weiss, spokesperson for the State Budget Office. “We’ve found that some of those skilled trades that are needed by employers across the state are not there — we don’t have enough trained people in that area — and so he’s put a lot of money into getting those people trained.”

The governor has also chosen to focus on healthcare, dedicating 46 percent of the proposed budget to health and human services in Michigan. From that 46 percent (approximately $24.8 billion), nearly $22 million will go toward the governor’s Healthy Kids dental program. The program, which provides underprivileged children from ages 0 to 18 with access to dental care, is currently available in 80 of Michigan’s 83 counties, and will be expanded to the remaining three counties in 2016. “We don’t have enough money to take it up to kids 0 to 18 in those counties, but we do have enough to fund ages 0 to 8,” said Weiss. “Dental health is really an indicator of overall health … A healthy mouth and healthy oral care lead to overall health, so the governor is really excited about (expanding this program).”

The governor has also recommended an investment of approximately $129 million for the Michigan Economic Development Corporation (MEDC). This total includes $111 million for ongoing business attraction and community revitalization efforts and approximately $18 million for onetime general funds to advance business and community development projects throughout the state. The importance of education for Michigan students is another component of the 2016 budget that the governor has put a large emphasis on — specifically in third grade reading proficiency. “This was really of interest to the governor this year” said Weiss. “In some of the nationwide testing that’s been done, we have not been doing as well in third grade reading as we need to.” $25 million has been set aside for the development of a program to help increase reading proficiency at the third grade level. According to Weiss, a workgroup consisting of legislators, educators, philanthropic organizations and business owners will work together to develop the new program and present it 30

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MARCH 2015

The money allocated to health and human services will also go toward increased access to dental care for adult Medicare recipients, funding for the Mental Health Commission and funding to the five state universities with autism programs to increase the number of autism service providers in the state, among other things. The 2016 budget proposal aims to make Michigan stronger mentally, physically and financially. Weiss said that the governor and the State Budget Office are looking forward to working with the Legislature, and that they are excited about the future success of Michigan. Alicia Pilmore is a communications specialist at M3 Group in Downtown Lansing. She enjoys writing, volunteering and everything related to social media.

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GLBM LIST

Michigan Biotech Companies

Company Name

Address

City

Phone

3D Biomatrix

1600 Huron Parkway

Ann Arbor

(734) 272-4688

Asterand

440 Burroughs Street

Detroit

(313) 263-0960

Autocam Medical

4162 East Paris Avenue Southeast

Kentwood

(616) 541-8080

Becker Orthopedic

635 Executive Drive

Troy

(800) 521-2192

BioPro Implants

2929 Lapeer Road

Port Huron

(810) 982-7777

Cyprotex

4717 Campus Drive

Kalamazoo

(269) 353-5555

Diapin Therapeutics

1600 Huron Parkway, B520 Second Floor

Ann Arbor

(734) 764-9123

Emergent BioSolutions

3500 N. Martin Luther King Jr. Blvd

Lansing

(517) 327-1500

Esperion Therapeutics

3891 Ranchero Drive, STE 150

Ann Arbor

(212) 257-6724

Everist Health

709 West Ellsworth Road

Ann Arbor

(734) 929-9475

Ferndale Pharma Group

780 Eight Mile Road

Ferndale

(248) 548-0900

Grand River Aseptic Manufacturing

140 Front Avenue Southwest #3

Grand Rapids

(616) 331-6980

Impact Analytical

1940 North Stark Road

Midland

(855) 427-6583

Lancaster Laboratories

6859 Quality Way

Portage

(269) 323-3366

Lumigen (Beckman Coulter)

22900 W. 8 Mile Road

Southfield

(248) 351-5600

MBI

3815 Technology Boulevard

Lansing

(517) 337-3181

Neogen

620 Lesher Place

Lansing

(517) 372-9200

Oxford Biomedical Research

2165 Avon Industrial Drive

Rochester Hills

(248) 852-8815

Perrigo

515 Eastern Avenue

Allegan

(269) 673-8451

ProNAi

46701 Commerce Center Drive

Plymouth

(734) 233-3966

RetroSense Therapeutics

2725 South Industrial Highway

Ann Arbor

(734) 369-9333

RTI Surgical

375 River Park Circle

Marquette

(906) 226-9909

Stryker

2825 Airview Boulevard

Portage

(269) 385-2600

Sub Terra (Pairie Plant Systems)

104 Wilcox Road

White Pine

(906) 885 â&#x20AC;&#x201D; 5953

Symmetry medical

5212 Aurelius Road

Lansing Charter Township

(517) 882-4312

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

MARCH 2015

GLBM LIST

Each month, the Greater Lansing Business Monthly compiles a list relevant to the publicationâ&#x20AC;&#x2122;s theme. The lists are not comprehensive, but rather, a snapshot look at what is publicly available on various industries and organizations. The following is a list of biotech companies in Michigan.

Biotech Type

Website

Year Established

Leadership

3D Cell Culture Products

3dbiomatrix.com

2010

Laura Schrader, CEO

Human tissue and fluid banking

asterandbio.com

2000

John Canepa, CFO

Precision-Machined Medical Device Implants

autocam-medical.com

2008

John Kennedy, President & CEO

Joints and Implants

beckerorthopedic.com

1933

Rudolf Becker, President & CEO

Joint Replacement, Implants, Surgical Devices

bioproimplants.com

1987

Patrick Pringle, CEO

Toxicity Screening

cyprotex.com

1999

Anthony Baxter, Ph.D., CEO

Peptide for diabetes treatment

www.diapin.com

2011

Bruce Markham, President, CEO & CSO

Biologic Vaccines

emergentbiosolutions.com

1998

Daniel Abdun-Nabi, CEO

Cholesterol Regulation Therapies

esperion.com

2008

Tim Mayleben, CEO

Personalized diagnostics, prognostics and therapeutic selection technologies

biopharguy.com

2002

T. Stephen Everist, Director & CEO

Small molecules, contract manufacturing

ferndalepharmagroup.com

1897

Michael Burns, Ph.D., President & CEO

Contract Aseptic Manufacturing

grandriverasepticmfg.com

2010

Jerry Arthur, Chairman & CEO

Analytical Services

impactanalytical.com

1964

Eric Hill, President

Ocular Drug Services

lancasterlabs.com

1961

J. Wilson Hershey, Ph.D., Chairman

Chemilluminescence

lumigen.com

1987

A. Paul Schaap, Founder, President & CEO

Biotechnology Development

mbi.org

1981

Bobby Bringi, President & CEO

Animal Diagnostic, ELISA kits

neogen.com

1982

James Herbert, Chairman & CEO

Assays

oxfordbiomed.com

1984

Dennis Callewaert, President

Small Molecule Generics, Consumer Healthcare

perrigo.com

1887

Joseph Papa, Chairman & CEO

DNAi

pronai.com

2004

Nick Glover, Ph.D., President & CEO

Gene Therapy

retro-sense.com

2009

Sean Ainsworth

Medical Devices

rtix.com

1998

Brian Hutchinson, President & CEO

Medical Devices

stryker.com

1941

Kevin Lobo, Chairman, President & CEO

Underground API-Bearing Plants

subterrallc.com

1988

Brent Zettl, President & CEO

Contract Implants, Instruments, etc,

symmetrymedical.com

1976

Thomas Sullivan, CEO

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REGIONAL ROUNDUP

Welcome to DeWitt BY DA NIEL COS S

ust a stone’s throw away from the State Capitol Building (8.91 miles to be exact), DeWitt has so much to offer it’s visitors. From its rich history to its charming downtown businesses, there’s something for everyone in this lively city.

DeWitt played an important role in the development of the Lansing area and Clinton County, served as the Clinton County Seat from 1839 to 1857 and was an important stop along the Interurban Railroad in the early 1900s. By this time, DeWitt had a bustling downtown DOWNTOWN DEWITT CONTINUES with hotels, doctors’ offices and many commercial businesses. TO BE A BUSTLING AREA OF

The strong relationship that the City of DeWitt and DeWitt Township Like many other traditional downtowns share has produced the DeWitt Area ECONOMIC GROWTH WITH A LOW in Michigan, tragedy struck on Oct. Recreation Authority (DARA) that 21, 1930 when the “great fire” broke provides recreational opportunities for VACANCY RATE AND MANY ICONIC out and destroyed several downtown residents from ages 3 to 83. DeWitt has businesses. Rebuilding the downtown an extensive park system that offers BUSINESSES THAT DRAW PEOPLE was difficult, as the country was in amenities of all types; public access to the midst of The Great Depression, the Looking Glass River in Riverside FROM NEAR AND FAR. but a few local bankers took a risk and Park with a universally accessible canoe/ loaned DeWitt $50,000 to help with kayak launch and a nearly 2-mile “water the rebuilding effort. If those risk-takers were present today, trail” that connects to the Looking Glass River Park in DeWitt they would not be disappointed in their investment; DeWitt has Township, also served by a universally accessible launch; sports flourished ever since. fields, playscapes, including universally accessible equipment at The All Kids Playground and much more. Downtown DeWitt continues to be a bustling area of economic growth with a low vacancy rate and many iconic businesses that The residents of DeWitt take pride in their community — and for draw people from near and far. As a destination for people with good reason. DeWitt is a community that offers big city services, a sweet tooth, there is no better place to stop than Sweetielicious but maintains its small town charm. If you are ever on I-69 and Bakery. Are you in need of some locally made wool mittens or some want to see all that DeWitt has to offer, take Exit 85 and head flowers for that special someone? Twiggies in downtown DeWitt north a short distance to the beautiful City of DeWitt. has just what you need! From flowers to sweets and everything in between, you’re sure to find it in DeWitt. Daniel Coss was appointed City Administrator on February 28, 2011. DeWitt is a bedroom community with mostly residential housing, He is originally from the mid-Michigan area, but came to the City of and most of the residents commute outside the city for work, but DeWitt after having worked for the City of Marysville, MI for over 11 this is something DeWitt takes pride in. With a strong school years. Daniel is a graduate of Michigan State University with a Bachelor’s system and recreational opportunities abound, DeWitt is an of Science in Forestry. In 2004 he earned a Master’s of Science Degree in extraordinary place for someone with a family to call home. Administration from Central Michigan University. Daniel is married to Nicole, and has and two daughters named Skylar and Avery. 34

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MARCH 2015

P H OTO P ROV ID ED

DeWitt officially became a city on June 7, 1965 when the electorate approved a new city charter. Even though our status as a city is fairly new, DeWitt is steeped in history, dating back to 1833 when Captain David Scott founded “DeWitt.”

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Increases in Demand for Manufacturing and Development in Lansing Projected in 2015 BY TRICIA FOS TER

he U.S., Michigan, and Lansing industrial markets will continue to grow in 2015, although still not at pre-recession levels. With demand again projected to outpace supply, the market is poised for another strong year in 2015.

SUPPLY

DEMAND

While supply levels are increasing across the United States, secondary and tertiary markets, such as Detroit and Lansing, remain conservative on industrial development. Rising construction costs coupled with strong demand for modern climate controlled distribution space is a balancing act for developers and occupiers alike, who are both risk adverse given the last few years of uncertainty. It is clear that U.S. Manufacturing is on the rise due primarily to efficiency enhancements brought about through technology and automation. U.S. factories today are five times more efficient than in 1960 and the cost of labor in China is not as much of an advantage as it was in 2010. DISCIPLINE IN THE DEVELOPMENT MARKET HAS HELPED SUSTAIN THE RECOVERY TO DATE, BUT BASED UPON THE SIMPLE LAW OF ECONOMICS, WE WILL SEE LAND SALES CONVERTING AT A GREATER VELOCITY WITH DEVELOPERS AND OCCUPIERS EITHER BUILDING NEW FACILITIES OR HOLDING FOR A SPECIFIC PROJECT. Biotech firms that were resistant to spending research and development dollars from 2008 to 2012 are now growing and improving their thinner lines of products. New venture funds, IPOs and confidence in new technologies are all positive signs in 2015. This increase in outputs has a stimulative effect on demand in supply chain markets in the mid-west and west, with high tech manufacturing in Seattle and San Francisco Bay the clear winners. Biotech is also globalizing in the area of research and development with Asia getting connected with the U.S. and Europe. Favorable healthcare policies, demographics and new product authorizations will continue to bolster 2015 activity in biotech. 36

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MARCH 2015

Since the GDP is growing at a decent clip of five percent, according to the latest U.S. Government data. This favorable statistic may lead the Federal Reserve to raise interest rates in 2015. This move could eliminate the ability to fund inexpensively, which has significantly bolstered biotech firms in 2014. In addition, the competition for new drugs and speed to market will tend to support larger firms in the quest to remain strong through the long haul versus on the short term. Supply and demand and the ability to sustain are all key factors influencing how biotech will perform in 2015 and beyond. Parlaying the national statistics to our local market, Lansing supports light industrial facilities typically less than 200,000 square feet. Given the commitment by the auto manufacturers to Lansing and Detroit, finding 200,000 square feet of dry, climate controlled industrial space has been in 2014 and is a challenge in 2015. There is automated and intricate pharmaceutical demand in Michigan that may support additional land plays on the east and west sides of the state. Discipline in the development market has helped sustain the recovery to date, but based upon the simple law of economics, we will see land sales converting at a greater velocity with developers and occupiers either building new facilities or holding for a specific project. We believe that by the end of 2015, supply and demand will be closer to equilibrium. Tricia Foster, CPM速, ACoM速 is Senior Managing Director and Chief Operating Officer at CBRE|Martin.

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BUSINESS CALENDAR

March 2015 PHOTO B Y MA R K WA R NER

BUSINESS EVENTS

3/10

CBRE LANSING VIEWPOINT — TRENDS IN COMMERCIAL REAL ESTATE, EAST LANSING. Join CBRE at the Kellogg Hotel and Conference Center, located at 219 South Harrison Road, from 11:30 a.m. to 1 p.m. and learn the Lansing viewpoint and trends in commercial real estate. For more information, email trichardson@lansingchamber.org or call (517) 853-6463.

Stephen Serkaian and Tonia Olson attending the State of the City Preview.

3/10

HUMAN RESOURCE RECORD KEEPING: LEGAL REQUIREMENTS, LANSING. Join the Michigan Chamber of Commerce for this informative session, Human Resource Record Keeping: Legal Requirements. Learn how to create, maintain and utilize vital documents; what goes in and what stays out of an employee file, documenting FMLA and more. This session will be held at the Michigan Chamber of Commerce, located at 600 South Walnut, from 9 a.m. to 3 p.m. The cost to attend is $270/members and $295/non-members. Participants will receive six credits toward the Basic of Advanced Human Resource Certification Programs. Visit michamber.com.

crucial steps to eliminate staff members’ resistance to change, how to delegate and the key ingredient to influencing others. This session will be held at the Best Western Plus Lansing Hotel from 9 a.m. to 4 p.m. Registration begins at 8:30 a.m. The cost to attend is $149/ person. Visit careertrack.com/onsite or call (800) 944-8503.

3/25

3/12

BUSINESS AND BAGELS, EAST LANSING. Join Michigan State University for Business and Bagels: Leveraging Analytics to Increase Organizational Value with Dr. Cheri Speier-Pero, Professor of Information Systems, Broad College of Business, Michigan State University. Enjoy bagels from 7:30 to 8 a.m., business from 8 to 9 a.m. and a question and answer session from 9 to 9:15 a.m. Business and Bagels will be held at The James B. Henry Center for Executive Development, located at 3535 Forest Road. The cost to attend is $30/person. For more information, call (517) 353-8711.

3/20

MSU MUSEUM’S WINE TASTING BENEFIT, EAST LANSING. Spend an evening with your friends from the MSU Museum for their Wine Tasting Benefit. The evening will include more than 100 Michigan, national and international wines; hors d’oeuvres; a silent auction and door prizes. Vendors will be on hand to answer questions. Proceeds from the event will benefit MSU Museum programs. This fun-filled evening will take place at the Kellogg Hotel & Conference Center from 7 to 9:30 p.m. The cost to attend is $45/person. Visit museum.msu.edu or call (517) 355-1855.

3/2 4

FIRST-TIME MANAGER/SUPERVISOR, LANSING. Learn all of the essential information you will need to be an effective Manger or Supervisor. Topics covered will include: seven guidelines to gaining respect immediately, four 38

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MARCH 2015

PAYING EMPLOYEES: OVERTIME & WAGE COMPENSATION, LANSING. Join the Michigan Chamber of Commerce for a class is Paying Employees: Overtime & Wage Compensation. The Fair Labor Standards Act (FLSA) has become a hot issue for litigation recently. This informative one-day session will help you decide whether or not your employee pay practices are in order and how to protect your company from overtime and wage compensation lawsuits. This seminar qualifies as six credits toward the Basic or Advanced Human Resource Compliance and Tax Policy and Finance Compliance Certification Programs. This session will be held at the Michigan Chamber of Commerce, located at 600 South Walnut, from 9 a.m. to 3 p.m. The cost to attend is $270/members and $295/non-members. Visit michamber.com.

4/14

BUSINESS AND BAGELS, EAST LANSING. Join Michigan State University for Business and Bagels: Leading and Motivating Managers with Dr. Tina Riley, Director HR Executive Education, School of Human Resource and Labor Relations, Michigan State University. Enjoy bagels from 7:30 to 8 a.m., business from 8 to 9 a.m. and a question and answer session from 9 to 9:15 a.m. Business and Bagels will be held at The James B. Henry Center for Executive Development, located at 3535 Forest Road. The cost to attend is $30/person. For more information, call (517) 353-8711.

4/18

GREATER LANSING AREA CLUB 33RD ANNUAL FOUNDERS’ DAY AWARDS BRUNCH, LANSING. Join the Greater Lansing Area Club for their 33rd Annual Founders’ Day Awards Brunch: Women on a Journey to

Impact the Community. This yearâ&#x20AC;&#x2122;s awards luncheon will be held at the Crowne Plaza Lansing West Hotel from 10 a.m. to 1:30 p.m. The cost to attend is $30/person. Support the Women in Suits campaign at the luncheon by bringing in donations of suits and apparel for disadvantaged women who are going on job interviews, returning to and/or entering the workforce. For tickets and information, email glacnbpwc@gmail.com or call (517) 323-7823.

4 /2 3 -4 /2 4 HOW TO COMMUNICATE WITH TACT AND PROFESSIONALISM, LANSING. Do you need help in the world of communication? This two-day session will give you the proper training through interactive exercises to instill the skills needed to be a better communicator. This session will be held at the Crowne Plaza, located at 925 South Creyts Road, from 9 a.m. to 4 p.m. Registration begins at 8:30 a.m. The cost to attend is $299/person. To register, visit careertrack.com/onsite or call (800) 944-8503.

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YMCA OF LANSING RECEIVES $30,000 GRANT FROM CONSUMERS ENERGY FOUNDATION FOR CAPITAL IMPROVEMENTS

P HOTO PROV IDED

The YMCA of Lansing has received a $30,000 grant from the Consumers Energy Foundation to fund Capital Campaign facility improvements at its Oak Park and Parkwood branches. The grant will allow the YMCA of Lansing to better serve the Greater Lansing community and expand its services that focus on health and wellness, including programming that meets the special needs of children, teens and older adults. The support from the Consumers Energy Foundation will fund renovations to the childcare center and kids’ gym at Oak Park, as well as create a recreational outdoor sports park on the branch’s back grounds. At the Parkwood branch, the funds will be used for extensive renovations to the wellness center and improvements of the indoor track.

“All of these changes will enhance the experience of everyone who comes through our doors. We’re grateful for the generous support from the Consumers Energy Foundation, which will allow us to serve a growing number of people within our community,” said Jeff Scheibel, president and chief operating officer of the YMCA of Lansing.

SIENA WEALTH ADVISORS APPOINTED TO AREA BOARDS

are hospitalized or receiving treatment at Lansing area hospitals and clinics.

Siena Advisors, Stephen Hicks and W. Joseph Irish have been elected to regional charitable boards.

Siena Wealth Advisors is a fee-only registered investment advisory firm providing institutional investment advisory services and financial planning in a fiduciary capacity to high net worth individuals, businesses, and not-forprofits. Siena is headquartered in Grand Ledge, Mich.

Hicks has been elected to the Board of Directors of the McLaren Greater Lansing Healthcare Foundation. The foundation’s mission is to develop friends, raise Hicks funds and awareness for projects and services that provide quality patient care at McLaren Greater Lansing. Irish has been elected to the Board of Directors of the Ronald McDonald House Mid-Michigan where he will serve as the Treasurer and Finance Chair. The Ronald Irish McDonald House of MidMichigan is a home-away-from-home for the families of seriously ill children who 40

THE LANSING REGIONAL CHAMBER OF COMMERCE ANNOUNCES WINNERS OF PRESTIGIOUS COMMUNITY SERVICE, OUTSTANDING SMALL BUSINESS AND CHAMBER LEGACY AWARDS

The Lansing Regional Chamber of Commerce (LRCC) has announced the winners of three major annual awards, all

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

MARCH 2015

of which were presented at LRCC’s 103rd Annual Dinner on Feb. 10. The 2014 award winners include: Pat McPharlin, MSU Federal Credit Union and Tim Staudt, WILX-TV as recipients of the Community Service Award. Friedland Industries, Outstanding Small Business Award, and Lumber Town Holt with the Chamber Legacy Award. SAMUEL, MS JOINS WOLVERINE DEVELOPMENT CORPORATION Stanley Samuel, MS has joined Wolverine Development Corporation as Director of Construction. Samuel is a civil engineer with a M.S. Construction Management from Michigan State University School of Planning, Design and Construction. Wolverine Development (Wolverine Development.com) is a provider of prime business properties throughout Michigan since 1924.

N O TA B L E N E W S

VOGL & MEDER ACCOUNTING FIRM ADDS PARTNER, EXPANDS INTO GREATER LANSING MARKET Vogl & Meder, PLLC, an Owosso-based CPA firm, is opening a new office in Okemos, allowing it to expand its services to the greater Lansing market. The firm is also pleased to welcome new partner, Robert Dorcey, CPA, who recently joined the organization.

promoted to Assistant Vice President in 2011. Susan has 17 years of management experience in Mortgage Loan Operations and Servicing. Susan has been involved in and supported many organizations over the years such as Chamber of Commerce, March of Dimes and Meals on Wheels, and is currently the President of the St. Johns Athletic Boosters, Operations and Servicing. She holds a degree in Business Management

Dorcey was previously a shareholder at Demis & Wenzlick PC, which was recently acquired by another accounting practice. He managed Demis’ Okemos office, which now operates as Vogl, Meder and Dorcey, PLLC. The practice is located at 2162 Commons Parkway.

The Michigan Economic Development Corporation executive committee appointed MEDC Executive Vice President and Chief

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Dorcey has a Bachelor of Science degree from Northern Michigan University and an MBA from the University of Michigan-Flint. Vogl, Meder & Dorcey is a full-service accounting firm specializing in individual and business tax preparation, business accounting and consulting, business audits and reviews, as well as retirement and estate planning. For more information, visit voglmedercpa.com.

Lavengood is a life-long Grand Ledge resident. He has been working in the banking and mortgage industries since 1994, and came to Dart Bank in 2006 as the Grand Ledge Office Manager. He currently serves as a Commercial/Agricultural Lender. He is a graduate of Alma College with a degree in Business Administration, a graduate of the Perry School of Banking, and a graduate of the Kansas/Nebraska Schools of Lending-Agricultural Lending School.

from Davenport University, and will be graduating from Perry School of Banking this spring.

capital-imaging.com We’re kicking off our 20 year anniversary celebration in style with a new website. Let us know what you think!

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LOCAL CHARITIES COMPETE TO WIN THE UNIVERSITY CLUB’S BIG BANG-QUET CHALLENGE

reception at the University Club, to place final votes and witness the final outcome.

Twenty-one local charities are competing in the University Club of MSU’s Big Bangquet Community Charity Challenge, sponsored by the Michigan State University Federal Credit Union and the Capital Region Community Foundation. All charities are posted on the University Club’s website at universityclubofmsu.org/theclubwithaheart, and the public is invited to visit the site and “vote” for their favorites. A “vote” is a $5 tax-deductible donation to the Capital Region Community Foundation. Online voting will close on Tuesday, March 24. On Wednesday, March 25, at 5:30 p.m., the public is invited to a

Operating Officer Steve Arwood as MEDC CEO, effective immediately. He replaces Michael A. Finney, who was named Gov. Rick Snyder’s Senior Advisor for Economic Growth in December. Following Arwood’s appointment as MEDC CEO, Snyder named Arwood President and Chairman of the Michigan Strategic Fund. “Steve Arwood, in leadership positions in my administration, has demonstrated a real feel for what it takes to grow our economy and his appointment to chair MSF is important to our continuing reinvention of Michigan,” Snyder said. “We are committed to bringing our state workforce capabilities to new levels of excellence. Steve’s service will be vital to our success.” As CEO, Arwood is charged with implementing and executing MEDC’s core mission of business development and attraction, community development, providing access to capital and improving Michigan’s image and brand. His responsibilities will include administering all programs, funds, personnel, contracts and all other administrative functions of MEDC.

Every organization will receive a check for 85 percent of the funds raised through voting. In addition, the two organizations that raise the most votes will receive a $10,000 or $5,000 credit toward a fundraising event at the University Club. In addition, the organization with the most individual donors will win a $5,000 credit toward a fundraising event at the University Club! So … everyone is a winner, and one organization is a BIG winner! The University Club of Michigan State University has an 86-year tradition as a year-round center for business, dining, fitness, recreation, and golf at Forest Akers Golf courses. The Club offers a service-rich tradition of fabulous dining and entertainment, flawlessly executed meetings and events, leisurely tennis, swimming and golf, and a world-class fitness center and spa. Memberships in this award-winning private facility are available to anyone in the community.

Arwood has also been named director of the newly-created Talent and Economic Development Department, announced by Snyder in December. The new department was created to ensure that the state can efficiently and effectively develop, administer and coordinate Michigan’s economic, housing, and talent development initiatives and programs. Prior to joining MEDC last August, Arwood served as chief regulatory officer and director of Licensing and Regulatory Affairs, where he led reforms of the state’s regulatory and licensing environment. Under his leadership, more than 1,500 unnecessary and duplicative regulations were eliminated across state government. He previously served as LARA deputy director overseeing the Unemployment Insurance Agency and Employment Security and Workplace Safety, which includes MIOSHA, Employment Relations and Workers’ Compensation. He joined LARA in 2011 from Windlab Developments, USA, LTD, where he served as U.S. regional director. He has worked in wind energy development, conservation, and business development since 1999. He previously served as deputy director and other executive management positions

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at the Michigan Jobs Commission under Governor John Engler. He has also served as director for the House of Representatives Programs and Policy, and the National Federation for Independent Business-Michigan. For more on the MEDC and its initiatives, visit michiganbusiness.org. LANSING REGIONAL CHAMBER PROMOTES ARNOLD A. KEYES TO CHIEF OPERATING OFFICER

Keyes

The Lansing Regional Chamber of Commerce (LRCC) is proud to announce the promotion of Arnold A. Keyes to the position of chief operating officer.

“Arnie has demonstrated outstanding leadership qualities during his time at the Chamber,” said Tim Daman, president and CEO of the Lansing Regional Chamber of Commerce. “We are extremely excited for him to help guide our team and assist in determining the future of our organization.” Keyes joined the LRCC in August 2012

as the director of finance and operations. He has more than 30 years of accounting experience in the fields of restaurant and hospitality, retail, distribution and manufacturing. Prior to his career with the LRCC, Keyes worked for a variety of companies including ERSCO Corporation and LA-Z-BOY Showcase Shoppes; owned and operated Kids’ Quarters furniture and served as the chief financial officer for six Damon’s Grill and two Moe’s Southwest Grill restaurants. Keyes also owned Keyes-Pirbhai, LLC which provided accounting services to restaurant clientele. He holds a bachelor’s degree in accounting from Ferris State University and a master’s degree in management from Aquinas College. The mission of the Lansing Regional Chamber of Commerce (LRCC) is to be the preeminent business advocacy organization in the Greater Lansing region by collaborating for economic growth, creating new opportunities for our members and

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upholding pro-business ideals through the advancement of sound public policy. More information about LRCC and its programs and services can be found on any of its social media platforms, including lansingchamber. org, Facebook, Twitter (@Lansing Chamber), Linked In and YouTube. FORMER MICHIGAN ADMINISTRATIVE LAW JUDGE THERESA STALEY JOINS MILLER CANFIELD The law firm of Miller Canfield announces that Theresa A.G. Staley has joined the firm as a senior attorney in the Energy, Environmental and Regulatory Group in the Staley Lansing office. She brings more than 17 years of experience and knowledge with public utility, energy and telecommunications matters.

Staley spent the past four years as an administrative law judge for the State of Michigan, conducting hearings involving contested cases before the Michigan Public Service Commission and Michigan Department of Environmental Quality. She specialized in administrative, energy, environmental, public utility and telecommunications law. She also mediated disputes between utilities and customers. Prior to becoming a judge, she represented clients in private practice in a wide range of litigation matters, including in the area of oil and gas. “We are delighted to bring Theresa’s unique insight and experience to our public utility, energy and telecommunications clients,” said Ronald E. Baylor, leader of Miller Canfield’s Energy, Environmental and Regulatory Group. Staley received her J.D. from Detroit College of Law and her B.A. from Aquinas College.

KANDLER, REED, KHOURY & MUCHMORE NAME ASSOCIATE

Vale

Kandler, Reed, Khoury & Muchmore is pleased to announce the appointment of Riordan ‘Rio’ Vale as associate as part of KRKM’s strategy to further strengthen the firm’s lobbying capacity and continued growth.

Vale has made a significant contribution to the KRKM team and its clients since joining the firm as an intern early last year, with involvement in a number of critical issues before the legislature. Additionally, Vale is COO of Team TelCom, KRKM’s affiliate robo call and automated voice contact system used to support public office candidates and public issue management campaigns. He also oversees KRKM’s grassroots mobilization program that provides clients with campaign style

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912 West St. Joseph, Lansing, MI 48915

Vote Early, Vote Often... N O TA B L E N E W S

BIG BANG-QUET

Help Your Favorite Charity Win BIG!

COMMUNITY CHARITY CHALLENGE

VOTE FOR YOUR FAVORITE CHARITY

Participating Organizations

Twenty-one Local charities are competing for your votes... and the chance to win great prizes. Vote as often as you want...a vote costs just $5, and every charity will keep the money from their votes.* In addition, the top two charities with the most votes will receive a $10,000 or $5,000 credit toward a fund-raising event at the University Club. Of the remaining charities, the one with the most individual online voters will receive a $5,000 credit.

Online voting ends Tuesday, March 24

Children’s Ballet Theatre of Michigan East Lansing Rotary Foundation, in support of the “Weekend Survival Kits” program Ele’s Place EVE, Inc. (End Violent Encounters) Fenner Nature Center The Firecracker Foundation

Hannah’s House Helping Hands Respite Care

REVEAL RECEPTION Wednesday, March 25 5:30-7:30 p.m. University Club of MSU

Hospice of Lansing Impression 5 Science Center ITEC (Information Technology Empowerment Center) Lansing Promise Lansing RIF (Reading is Fundamental)

$10 per person (includes two $5 vote tickets)

MSU Community Music School

Complimentary hors d’oeuvres and cash bar. Cast your final votes in person and be there when the winners are announced!

Vote ! Here

Child & Family Charities

Greater Lansing Food Bank

Join us at the

Call 353-5111 for more information 3435 Forest Road, Lansing MI 48910

Carefree Medical & Dental

Girl Scouts Heart of Michigan

* The Capital Region Community Foundation will receive a small percentage of the donations to cover processing costs.

Membership is open to all!

(The Big Bang-quet, that is!)

Origami Brain Injury Rehabilitation Center REACH Studio Art Center Women’s Center of Greater Lansing

Co-sponsored by:

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tools that reinforce their government relations and public affairs initiatives. Prior to joining KRKM, Vale completed an internship with respected accounting firm Deloitte & Touche in Houston, where he focused on auditing. He is a 2014 graduate of Michigan State University’s Eli Broad College of Business, where he earned an accounting degree. Vale is a native of west Michigan. About Kandler Reed Khoury & Muchmore KRKM is a Michigan based government relations and public affairs firm that serves a diverse group of clients and industries. The firm is comprised of highly experienced partners with expertise including family and public law, health care, energy, natural resources, IT, insurance, environmental and land use, entertainment, tax, appropriations and gaming. KRKM also provides a full array of professional association management services, as well as campaign style grassroots mobilizations. Partners include Bill Kandler, Gary

Reed, Ron Khoury and Deb Muchmore. KKRM.com.

Koffler is a member of the National Association of Bond Lawyers and the Kentucky Bar Association.

LAWYER IAN KOFFLER JOINS MILLER CANFIELD

He received his J.D. and Masters of Public Administration from the University of Kentucky and his B.A. from the University of Richmond.

The law firm of Miller Canfield announces that Ian F. Koffler has joined the firm as a principal in the Public Law Group in the Lansing, Michigan, office. He brings ten years of experience as a bond attorney representing a variety of governmental issuers of municipal debt obligations. In addition, he routinely represents underwriters, banks, leasing companies and other institutions purchasing municipal debt obligations. He also has experience assisting Koffler private sector clients in pursing tax-exempt conduit financings issued by local government.

About Miller Canfield: With 240 lawyers practicing in all major areas of law and 16 offices in five countries, Miller Canfield is among the 200 largest law firms in the U.S. Miller Canfield lawyers are recognized by the most prestigious legal referral guides and organizations around the world, including Chambers USA and the 2015 edition of “Best Law Firms” published by U.S. News & World Report, in which Miller Canfield received national first-tier rankings in Public Finance Law, Labor & Employment Litigation and Labor Law-Management. Miller Canfield was also named by corporate counsel as a “Standout in Complex Labor Litigation” in the BTI Litigation Outlook 2015

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ENTREPRENEURS UNITE

GREATER LANSING BUSINESS MONTHLY PRESENTS THE 2015 ENTREPRENEURIAL AWARDS

TICKETS ON SALE NOW Support local entrepreneurship by being a part of the 21st Annual GLBM Entrepreneurial Awards.

DATE Thursday, March 12, 2015

Purchase a ticket or corporate table. For more information, go to lansingbusinessnews.com/

SOCIAL HOUR 6 to 7 p.m. AWARDS PROGRAM BEGINS

entrepreneurial-awards

7:15 p.m. To get involved contact Virginia at (517) 203-0123 or virginia@m3group.biz. Good luck to all of the 2015 nominees!

ADDRESS The University Club 3435 Forest Road, Lansing

lansingbusinessnews.com/entrepreneurial-awards

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report, the second consecutive year. Visit millercanfield.com. HANNAH PLAZA WELCOMES NEW SPECIALTY GROCER CBRE|Martin (CBRE) is pleased to announce that Hannah Market opened within the Hannah Plaza shopping center on Hagadorn Road, directly

across from the campus of Michigan State University. A convenience store specializing in Chinese, Japanese and Korean foods, Hannah Market also offers fresh produce, meats and frozen foods, along with madeto-order smoothies and bubble tea. Hannah Market occupies the 2,950-sq.-ft. suite between Sultan’s and GNC.

CBRE provides professional leasing and property management at Hannah Plaza, with Vice President Shawn H. O’Brien, CCIM providing landlord representation services in the transaction. BWL RECOGNIZES CUSTOMERS INDUCTED INTO MILLION KILOWATT HOUR CLUB The Lansing Board of Water & Light announced that eight organizations have received recognition for their successful energy saving efforts through the BWL Hometown Energy Savers program. These groups worked with the BWL to implement energy efficiency projects in their Lansing area facilities. Since the program’s inception in 2009, each organization was able to realize savings totaling over one million kilowatt hours.

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The organizations include: General Motors, Ashley Capital, State of Michigan, Lansing School District, Ryder, Quality Dairy, Peckham Inc. and Demmer Properties. “The ability to leverage these large scale energy saving projects in Lansing is a great achievement. Encouraging energy efficiency is good for our customers and the BWL,” said Interim General Manager Dick Peffley. When a customer achieves savings over one million kilowatt hours, they are inducted into the Million Kilowatt Hour Club to honor the achievement. The amount of energy saved by these customers is enough energy to power over 3,000 homes annually. Examples of energy saving projects include: installing high efficiency lighting and motors, and upgrading heating and cooling systems. The Hometown Energy Savers program was created by the BWL to help their residential and business customers save energy, lower their energy costs, and earn valuable cash incentives just for being more energy efficient. The BWL was Michigan’s first utility to undertake a comprehensive energy efficiency program and has recently partnered with the American Council for an Energy Efficient

Economy (ACEEE) to study energy efficiency program best practices in public power utilities. EXTEND YOUR REACH EXECUTIVE VICE PRESIDENT PROMOTED TO PRESIDENT Amer Gerzic, of Byron Center, has been promoted to president of Extend Your Reach. Gerzic was promoted from executive vice president, a post he held since April 2013. His career with Extend Your Reach began in 1999 when he was hired as a machine operator and quickly moved to positions of increased responsibility. Gerzic holds a bachelor’s degree and a Master of Science degree in Computer Science from Grand Valley State University. He brings deep technical and operational knowledge to his new position. “Amer has already proven his value as an executive leader of the company,” said Jay

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Gillotte, CEO and founder of Extend Your Reach, “I look forward to seeing the great things he will accomplish as president.”

as President of the Michigan Chapter of the American Association of AttorneysCertified Public Accountants.

Extend Your Reach, formerly Presort Services, Inc., has been partnering with businesses for the past 30 years to provide quality direct-mail pieces and low-cost mailing services. Today, the company offers complete integrated marketing services, graphic design, print services and data management. With facilities in Grand Rapids and Lansing, Extend Your Reach serves customers throughout Michigan and nationwide. To learn more, visit extendyourreach.com.

Mr. Kellogg has devoted his 28 years of practice to the needs of family — and closely-held businesses and enterprises, and estate and business succession planning. He Kellogg currently chairs Fraser Trebilcock’s Business and Tax Law Practice, and is a member of the Board of Directors for the International Association of Attorneys for Family-Held Enterprises (AFHE). Mr. Kellogg also serves on the Section Councils for the Probate and Estate Planning Section, Business Law Section and the Agricultural Law Section of the Michigan Bar Association, as well as a member of the international Family Firm Institute.

FRASER TREBILCOCK ATTORNEY RE-ELECTED AS DEWITT SCHOOL BOARD PRESIDENT Fraser Trebilcock attorney Mark E. Kellogg has been re-elected as President of the DeWitt Public Schools Board of Education, where he has served as President since 2010. Mr. Kellogg was also recently re-elected

Mr. Kellogg has been actively involved in the Lansing area and surrounding communities throughout his professional career. Currently, he serves on the Board of

Directors of Highfields, Inc., a member of the Lansing Community College Foundation Finance Committee, and as a Member and Chairman of the Fr. Albers Trust Fund Committee for the Catholic Diocese of Lansing. Fraser Trebilcock is one of Michigan’s longest-established full-service law firms. Since 1883 Fraser Trebilcock has been providing preeminent legal services and representation to small and large businesses, individuals, governmental entities, and associations. With offices in Lansing, Detroit, and Grand Rapids, and through its association with SCG Legal, Fraser Trebilcock has access to a global network of independent law firms. Member firms of SCG Legal practice independently and not in a relationship for the joint practice of law. More information is available at fraserlawfirm.com| statecapitalgroup.org. NICOLE HUGHES JOINS ALANE & CHARTIER, P.L.C. Alane & Chartier, P.L.C., is pleased to announce that attorney Nicole Hughes has joined the law firm.

Thursday, March 12, 2015 Full Day HR Development Session Morning Session

Afternoon Session

8:30 a.m. - 12:00 p.m. Legislative Seminar

1:00 p.m. - 4:30 p.m. Developing Skills for Difficult Discussions about Differences

This informative session will cover complex and trending issues affecting the human resource profession and the businesses and organizations that you represent. Presenter will be available for Q&A. * Approved for HRCI credit

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Nicole graduated summa cum laude from Thomas M. Cooley Law School. While working towards her law degree, she won numerous honors awards including the Shane Joseph Johnson Memorial Award for highest achievement in her first year, the Leadership Achievement Award, the Great Deeds Award, the Distinguished Student Award, and the Earl Dayton Award for significant contributions to the law school. As a student, she worked for the Washtenaw County Public Defender’s office. After law school, Nicole worked as a judicial law clerk for Honorable John G. McBain of the Jackson County Circuit Court. She has now followed her passion for helping others, and specializes in family law. Alane & Chartier, P.L.C., is a womenowned law firm that was founded in 2007 by attorneys Natalie Alane and Mary Chartier. The firm specializes in litigation and appellate work, as well as family law and criminal defense.

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TOM COULSON BECOMES NEW OWNER OF LIBERTY COIN SERVICE At the beginning of 2015, Tom Coulson, a 29year veteran who rose to be a manager and senior numismatist, has become the new owner of Liberty Coin Service in Lansing, Michigan. Patrick A. Heller, who became an owner of the company in 1981 and sole owner in 1995, will continue to work for

Liberty for five years as communications officer and owner emeritus. “When I started doing casual tasks at Liberty in 1983 while I was still in junior high school, it never occurred to me that this would become my career,” said Coulson. “I left in 1996 to become a certified public accountant, but found that I really enjoyed serving collector and precious metals customers even more. So I came back to

Liberty three years later. This emphasis on serving our customers with fast, friendly, expert service and competitive buy and sell prices have driven the company’s growth. It is also what attracted me to becoming Pat’s successor.” LANSING NAMED ONE OF LIVABILITY.COM’S BEST AFFORDABLE PLACES TO LIVE, 2015 Livability.com has named Lansing a Best Affordable Place to Live, 2015. Lansing is less expensive than most, yet it offers an extremely high quality of life, allowing families to save money on many cost-ofliving expenses. Livability.com’s editors looked at cost of living across a number of categories such as health care, food, housing, and transportation using data from C2ER and the U.S. Department of Housing and Urban Development. They also examined the tax climate in each state and even looked at how much things like eggs, pizza and haircuts cost in each city.

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Top Five Best Affordable Places to Live, 2015: 1. 2. 3. 4. 5.

Round Rock, TX Dayton, OH Lawton, OK Lansing, MI Appleton, WI

Livability.com explores what makes small to mid-sized cities great places to live, work and visit.

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Lansing offers a cost of living eight percent below the national average, lower than average housing prices and a flat-rate income tax. Residents also enjoy low transportation costs, typically spending less than 18 percent of their monthly salaries on car payments and gas. Saving money on living expenses allows residents to enjoy the wealth of entertainment options the city offers, including Lansing City Market. With many restaurants, bars and music venues catering to the University of Michigan crowd, residents can easily find great deals.

MARCH 2015

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IT’S NOT JUST WHAT YOU KNOW. IT’S WHAT YOU DO WITH THE INFORMATION. When you’re the industry’s leading provider of commercial real estate services, you can see the big picture. CBRE leverages that comprehensive perspective and couples it with local market insight to anticipate what’s next and what it means for our clients’ real estate assets and bottom line.

CBRE

Applying our market knowledge to help our clients make informed real estate decisions is what we do best; sharing that information is what we’re doing next. Join CBRE|Martin and the Lansing Regional Chamber of Commerce at our annual market forecast event: Tuesday, March 10th 11:30 am – 1 pm Kellogg Hotel and Convention Center

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Part of the CBRE affiliate network

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Part of the CBRE afﬁliate network

Part of the CBRE affiliate network

1111 Michigan Avenue, Suite 201 East Lansing, MI 48823 +1 517 351 2200

MARCH 2015

Part of the CBRE affiliate network